CONTRACT Group Annuity Contract No. AC 6688
CONTRACT HOLDER United States 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 July 1, 1992
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 THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE AS DESCRIBED IN THIS CONTRACT.
The provisions of this Contract, which include the following pages, are agreed
to by the Contract Xxxxxx and Equitable.
FOR THE CONTRACT HOLDER FOR THE EQUITABLE
By______________________________ By______________________________
Chairman of the Board and
Chief Executive Officer
Title____________________________ By______________________________
Vice President and Secretary
Dated__________________________ By______________________________
Assistant Registrar
At New York, New York Date of Issue______________________
(Head Office)
INTEREST RATE GUARANTEE - FIXED AND VARIABLE
ANNUITY BENEFITS - NON-PARTICIPATING
TABLE OF CONTENTS
PART I - DEFINITIONS
Section 1.01 - Accumulation Unit
Section 1.02 - Accumulation Unit Value
Section 1.03 - Active Loan
Section 1.04 - Annuity Benefit
Section 1.05 - Annuity Commencement Date
Section 1.06 - Annuity Unit
Section 1.07 - Annuity Unit Value
Section 1.09 - Business Day
Section 1.10 - Cash Value
Section 1.11 - Class of Employers
Section 1.12 - Code
Section 1.13 - Contribution
Section 1.14 - Divisions
Section 1.15 - Employer
Section 1.16 - Employer Plan
Section 1.17 - Employer Plan Trustee
Section 1.18 - Forfeiture Account
Section 1.19 - Free Corridor Amount
Section 1.20 - Funding Effective Date
Section 1.21 - Guaranteed Interest Rate
Section 1.22 - Investment Divisions
Section 1.23 - Master Trust
Section 1.24 - Minimum Guaranteed Rate
Section 1.25 - Net Investment Factor
Section 1.26 - Old Plan Takeover Loan
Section 1.27 - Participant
Section 1.28 - Participation Date
Section 1.29 - Participation Year
Section 1.30 - Plan
Section 1.31 - Pooled Trust
Section 1.32 - Predecessor Contract
Section 1.33 - Predecessor Contract Takeover Loan
Section 1.34 - Processing Office
Section 1.35 - Restricted Withdrawal Amount
Section 1.36 - Retirement Account Value
Section 1.37 - Separate Account
Section 1.38 - Source
Section 1.39 - Transaction Date
Section 1.40 - Transferred Participant
Section 1.41 - Trusteed Plan
Section 1.42 - Valuation Period
PART II - RETIREMENT ACCOUNT VALUE
Section 2.01 - Contribution
Section 2.02 - Transfers of Unallocated Amounts
Section 2.03 - Transfers from Predecessor Contract
Section 2.04 - Separate Account
Section 2.05 - Guaranteed Interest Division
Section 2.06 - Allocation of Contributions to Divisions
Section 2.07 - Transfers Among Divisions
Section 2.08 - Partial Withdrawal and Termination
Section 2.09 - Death Benefits
Section 2.10 - Loans
Section 2.11 - Fees and Charges
Section 2.12 - Forfeitures
PART III - ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit
Section 3.02 - Variable Annuity Benefit
Section 3.03 - Form of Annuity Benefit
Section 3.04 - Report for Annuity Benefit
Section 3.05 - Application to Provide Annuity Benefit
Section 3.06 - Payment of Annuity Benefit
PART IV - GENERAL PROVISIONS
Section 4.01 - Contract
Section 4.02 - Statutory Compliance
Section 4.03 - Assignments and Non-transferability
Section 4.04 - Manner of Payment
Section 4.05 - Right to Change
Section 4.06 - Beneficiary
Section 4.07 - Deferment
Section 4.08 - Contract Holder's Responsibility
Section 4.09 - Employer's and Employer Plan
Trustee's Responsibility
Section 4.10 - Plan Qualification
APPENDIX A - Tables of Guaranteed Annuity Payments
PART I - DEFINITIONS
SECTION 1.01 ACCUMULATION UNIT. The term "Accumulation Unit" means a measure
used by Equitable in determining the amount held with respect to a Participant
in an Investment Division of the Separate Account.
SECTION 1.02 ACCUMULATION UNIT VALUE. The term "Accumulation Unit Value"
means, for a given Valuation Period, 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 2.10, any Old Plan Takeover
Loan or any Predecessor Contract Takeover Loan, which, in any case, is neither
fully repaid nor deemed distributed under Section 72(p) of the Code.
SECTION 1.04 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 ANNUITY UNIT. The term "Annuity Unit" means a measure used by
Equitable in determining amounts payable from the Stock Division of the
Separate Account under a Variable Annuity Benefit.
SECTION 1.07 ANNUITY UNIT VALUE. The term "Annuity Unit Value" means, with
respect to a Variable Annuity for a given Valuation Period, the Annuity Unit
Value for the immediately preceding Valuation Period multiplied by the Adjusted
Net Investment Factor for the given Valuation Period. The Adjusted Net
Investment Factor for a given Valuation Period is the Net Investment Factor for
such Period reduced for each calendar day in such Period by the Net Investment
Factor times (a) .00013366, if the Assumed Base Rate of Net Investment Return
is 5.00%, and (b) .00009425, if the Assumed Base Rate of Net Investment Return
is 3.50%. The Assumed Base Rate of Net Investment Return will be 5.00% except
in states where that rate is not permitted by law.
SECTION 1.08 AVERAGE ANNUITY UNIT VALUE. The term "Average Annuity Unit Value"
means, with respect to a Variable Annuity for a calendar month, the average of
the Annuity Unit Values for all Valuation Periods ending in such month.
SECTION 1.09 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.
SECTION 1.10 CASH VALUE. The term "Cash Value" means:
(a) An amount equal to the Retirement Account Value with respect to a
Participant (i) for whom Xxxxxxxxx has received due proof of the Participant's
total and permanent disability, as defined in Section 72(m)(7) of the Code, or
due proof of the Participant's death, or (ii) who has attained age 59 1/2 and
who either (A) has at least five Participation Years, or (B) has provided due
proof of such Participant's separation from service with the Employer.
(b) An amount, with respect to any other Participant, equal to the greater
of (i) or (ii):
(i) The Retirement Account Value (recognizing any reduction on
account of a forfeiture as described in Section 2.12) minus an amount equal to
the sum of
(A) 6% of the Contributions made during the then-current
and five immediately preceding Participation Years on behalf of a Participant
to all Sources in which forfeitures (as described in Section 2.12) had not
occurred with respect to the Participant, and which had not previously been
withdrawn pursuant to Section 2.08; and
(B) the product of (I) 6% of the Contributions made during
the then-current and five immediately preceding Participation Years on behalf
of that Participant to all Sources in which such forfeitures had occurred with
respect to the Participant, and which had not previously been withdrawn
pursuant to Section 2.08, and (II) a percentage representing the vested portion
of those Sources.
(ii) The sum of
(A) The Free Corridor Amount; and
(B) The amount equal to
(I) 94% of the result obtained by taking the total
of the Retirement Account Value (recognizing any reduction on account of a
forfeiture as described in Section 2.12) and any Active Loan and subtracting
from such total the Free Corridor Amount; minus
(II) Any Active Loan with respect to the
Participant.
For purposes of this definition, the term "Active Loan" excludes Old Plan
Takeover Loans.
SECTION 1.11 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. All Employer Plans whose Funding Effective Dates occur
within a given calendar year will belong to the same
2
Class of Employers, except that (a) all Employer Plans which were funded under
the Predecessor Contract will be deemed to be in one Class of Employers, and
(b) Equitable may at any time (i) close a Class of Employers (including the
Class of Employers to which Employer Plans which were funded under the
Predecessor Contract belong) and begin a new Class of Employers, or (ii)
combine two or more Classes of Employers.
SECTION 1.12 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 1.13 CONTRIBUTION. The term "Contribution" means, subject to Section
2.03, any amount remitted by the Employer or the Employer Plan Trustee pursuant
to Section 2.01 with respect to a Participant.
SECTION 1.14 DIVISIONS. The terms "Division" or "Divisions" mean one or more
of the following investment options described in this Contract:
(a) the Guaranteed Interest Division, and
(b) the Investment Divisions of the Separate Account.
SECTION 1.15 EMPLOYER. The term "Employer" means an employer who has adopted
an Employer Plan.
SECTION 1.16 EMPLOYER PLAN. The term "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 1.17 EMPLOYER PLAN TRUSTEE. The term "Employer Plan Trustee" means
the person or persons named as trustee under a Trustee Plan, and such trustee's
successors.
SECTION 1.18 FORFEITURE ACCOUNT. The term "Forfeiture Account" means an
unallocated account maintained by Equitable under this Contract in the
Guaranteed Interest Division and in conjunction with the operation of Section
2.12. Amounts arising from reductions in Retirement Account Value pursuant to
Section 2.12 will be allocated to the Forfeiture Account, pending disposition
of such amounts (and interest thereon) as determined by the Employer or the
Employer Plan Trustee.
SECTION 1.19 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means, with
respect to a Participant, an amount equal to the excess, if any, of (a) 10% of
the sum of the Retirement Account Value and any Active Loan, over (b) the sum
of (i) cumulative prior withdrawals made with respect to the Participant
pursuant to Section 2.08 in the current Participation Year, (ii) the unpaid
principal of any loan defaulted with respect to the Participant pursuant to
Section 2. 10 in the current Participation Year, other than an Old Plan
Takeover
3
Loan, (iii) any reduction in the Retirement Account Value as a result of a
forfeiture with respect to the Participant pursuant to Section 2.12 in the
current Participation Year and (iv) any deduction with respect to the
Participant, pursuant to Section 2.11, Paragraph (6) in the current
Participation Year, as a result of a loan default.
SECTION 1.20 FUNDING EFFECTIVE DATE. The term "Funding Effective Date" means
the date that coincides with the earliest Participation Date with respect to
the Employer Plan.
SECTION 1.21 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate"
means, with respect to the Guaranteed Interest Division, the effective annual
rate of interest determined by Equitable for a Class of Employers for a
calendar year, provided such rate is not less than the Minimum Guaranteed Rate.
The Guaranteed Interest Rate applicable to a Class of Employers for the
calendar year in which the Funding Effective Date for such Class occurs will be
the rate determined by Equitable for an Employer Plan in that Class as of the
Funding Effective Date. The Guaranteed Interest Rate applicable to a Class of
Employers for any subsequent calendar year will be determined by Equitable at
least 30 days before the beginning of that year. Equitable reserves the right
to increase the Guaranteed Interest Rate during any given calendar year and to
declare additional interest for shorter periods.
SECTION 1.22 INVESTMENT DIVISIONS. The terms "Investment Division" or
"Investment Divisions" mean, as appropriate, one or more of the following
Divisions of the Separate Account:
(a) the Stock Division;
(b) the Money Market Division;
(c) the Balanced Division; and
(d) the Aggressive Stock Division.
SECTION 1.23 MASTER TRUST. The term "Master Trust" means the Members
Retirement Trust of The Equitable Life Assurance Society of the United States.
SECTION 1.24 GUARANTEED RATE. The term "Minimum Guaranteed Rate" means, with
respect to the Guaranteed Interest Division, an effective annual minimum rate
of interest equal to (a) 4% for an Employer Plan covered under the Predecessor
Contract, and (b) 3% for any other Employer Plan.
SECTION 1.25 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:
4
(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 2.11, 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 1.26 OLD PLAN TAKEOVER LOAN. The term "Old Plan Takeover Loan" means a
loan which was established under the Employer Plan before the Funding Effective
Date, which has been transferred to this Contract as an Active Loan, but which
is not a Predecessor Contract Takeover Loan.
SECTION 1.27 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 with respect to whom a certificate has been issued
pursuant to Section 4.01.
SECTION 1.28 PARTICIPATION DATE. The term "Participation Date" with respect to
a Participant means, subject to Section 2.02, the earlier of (a) the Business
Day as of which Equitable has enrolled such Participant under this Contract or
(b) the Business Day as of which Equitable's Processing Office has received the
first Contribution pursuant to Section 2.01 for such Participant. A
Transferred Participant will have the same Participation Date as applicable to
such person under the Predecessor Contract, except that if a Transferred
Participant had two or more Participation Dates under the Predecessor Contract
immediately before becoming a Transferred Participant, the Participation Date
hereunder will be the date that coincides with the first of such prior
Participation Dates.
SECTION 1.29 PARTICIPATION YEAR. The term "Participation Year" with respect to
a Participant means the twelve-month period beginning on (a) the Participation
Date and (b) each anniversary thereof, unless otherwise agreed to in writing by
Equitable.
SECTION 1.30 PLAN. The term "Plan" means the Members Retirement Plan of The
Equitable Life Assurance Society of the United States.
5
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 PREDECESSOR CONTRACT. The term "Predecessor Contract" means
Equitable's Group Annuity Contract 00000 from which the Employer or the
Employer Plan Trustee and Equitable have agreed to transfer certain assets or
certain liabilities associated with the Employer Plan to this Contract.
SECTION 1.33 PREDECESSOR CONTRACT TAKEOVER LOAN. The term "Predecessor
Contract Takeover Loan" means a loan -that was established under the
Predecessor Contract and which has been transferred to this Contract as an
Active Loan.
SECTION 1.34 PROCESSING OFFICE. The term 'Processing Office" means
__________________________, or such other location as Equitable shall designate
by at least 90 days' advance written notice to the Employer or the Employer
Plan Trustee.
SECTION 1.35 RESTRICTED WITHDRAWAL AMOUNT. The term "Restricted Withdrawal
Amount" means an amount equal to 10% of an Active Loan other than an Old Plan
Takeover Loan.
SECTION 1.36 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 1.37 SEPARATE ACCOUNT. The term "Separate Account" means pooled
Separate Account A, as described in Section 2.04, 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 1.38 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: Employer Contributions allocated to a
Participant's account under the Employer Plan by reason of the Participant's
Post-Tax Contributions or Elective 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.
6
(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: Employer
Contributions made 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.
SECTION 1.39 TRANSACTION DATE. The term "Transaction Date" means (a) the
Business Day on which Equitable receives a Contribution or an acceptable
written or telephone request for a transaction at its Processing Office, or (b)
the Business Day coinciding with or next following the date specified in the
request, if later; provided, 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 1.40 TRANSFERRED PARTICIPANT. The term "Transferred Participant" means
a Participant with respect to whom a transfer is received under this Contract
pursuant to Section 2.03.
SECTION 1.41 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 1.42 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.
7
PART II - RETIREMENT ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. Each Employer or Employer Plan Trustee will remit
Contributions from time to time on such dates and in such amounts as it will
determine in accordance with the Employer Plan.
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.
SECTION 2.02 TRANSFERS OF UNALLOCATED AMOUNTS. Anything in this Contract to
the contrary notwithstanding, with respect to an Employer Plan for which assets
are being transferred on or after the Funding Effective 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 assets may be remitted as Contributions
hereunder on an unallocated basis to a suspense account; provided that, while
such assets remain unallocated, Equitable will (a) treat the amounts in such
suspense account as one Retirement Account Value, except as provided below,
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 assets 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, Equitable shall have the right to pay to
the Employer or the Employer Plan Trustee the amounts in the suspense account,
on the basis described in Clause (b) of Section 1.10, except that the Free
Corridor Amount will be zero. If the Employer or Employer Plan Trustee
requests to terminate participation of the Employer Plan under this Contract,
or requests a partial withdrawal from the suspense account prior to Equitable's
receipt of the required Participant-level information, the Free Corridor Amount
will also be zero.
SECTION 2.03 TRANSFERS FROM PREDECESSOR CONTRACT. Any amount transferred from
a Division under the Predecessor Contract to this Contract with respect to a
Transferred Participant will be allocated as of the date of transfer to the
corresponding Division under this Contract with respect to such Participant.
On and after such transfer, all contributions made under the Predecessor
Contract with respect to such Transferred Participant and not previously
withdrawn or applied will be considered as Contributions made under Section
2.01 of this Contract with respect to the Participant on the respective dates
on which such contributions were made under the Predecessor Contract.
8
With respect to a Transferred Participant, any allocation instructions on file
under the Predecessor Contract immediately before the date of transfer will
apply under this Contract unless and until changed in accordance with the terms
of this Contract.
SECTION 2.04 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
Division 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. The Investment
Divisions available on the Register Date of this Contract are the Stock
Division, the Money Market Division, the Balanced Division and the Aggressive
Stock Division.
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 2.05 GUARANTEED INTEREST DIVISION. Any amount allocated 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 to the
Guaranteed Interest Division with
9
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, is allocated
to the Guaranteed Interest Division daily and is credited for each day on the
amount in the Guaranteed Interest Division at the beginning of that day.
SECTION 2.06 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. With respect to each Source 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 the 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 (a) to have Participants provide such instructions
directly to Equitable, and (b) to have such instructions communicated, as the
Participant elects, either in writing or by telephone, subject to Equitable's
requirements for telephone transactions.
If an initial Contribution with respect to a Participant is received in the
Processing Office and allocation instructions are neither on file nor
accompanying the Contribution, Equitable will, pending receipt of such
instructions, allocate the entire Contribution to the Guaranteed Interest
Division for up to five Business Days. If at the end of such period no
allocation instruction is on file with respect to the Participant, Equitable
will return the Contribution to the Employer or Employer Plan Trustee, unless
Equitable has received the written consent of the Participant to continue to
hold Contributions in the Guaranteed Interest Division pending receipt of other
allocation instructions.
SECTION 2.07 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, all or part of the amount held for the
Participant in a Division to one or more of the other Divisions as follows: (a)
amounts in the Guaranteed Interest Division, Stock Division, Balanced Division
and Aggressive Stock Division may be transferred among such Divisions; (b)
amounts in the Money Market Division may be transferred to the other Divisions.
Such transfers will be made as of the applicable Transaction Date, and will be
subject to
10
Equitable's rules in effect at the time of transfer. No transfers are
permitted to the Money Market Division from the other Divisions. Such request
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 (a) to have Participants make such transfer requests
directly to Equitable and (b) to have such requests communicated, as the
Participant elects, either in writing or by telephone, subject to Equitable's
requirements for telephone transactions.
SECTION 2.08 PARTIAL WITHDRAWAL AND TERMINATION
(1) If the Employer or Employer Plan Trustee requests with respect to a
Participant who has elected to make a partial withdrawal from the Divisions,
Equitable will, as of the applicable Transaction Date, pay the lesser of (a)
the Cash Value minus the Restricted Withdrawal Amount, or (b) the amount of
partial withdrawal requested. The amount to be paid plus any withdrawal charge
applicable pursuant to Section 2.11 will be withdrawn from the amounts held
with respect to the Participant in the Divisions. Upon such payment, Equitable
will be released from any and all liability for payments with respect to the
Contributions from which the amounts so withdrawn arose.
(2) If the Employer or Employer Plan Trustee requests with respect to a
Participant who has elected to terminate participation under this Contract,
Equitable will withdraw the amount held in the Divisions with respect to the
Participant and pay an amount equal to the Cash Value as of the applicable
Transaction Date. Upon such payment, the Retirement Account Value and the
amount with respect to the Participant in the Divisions will be zero.
Equitable will thereupon be released from any and all liability for payments
with respect to the Retirement Account Value.
(3) If (a) the Employer or Employer Plan Trustee terminates the Employer
Plan's participation under this Contract, or (b) 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
aggregate of all Cash Values with respect to such Employer Plan. Upon such
payment, the Retirement Account Values with respect to the Employer Plan will
be zero. Equitable will thereupon be released from any and all liability for
payments with respect to the Retirement Account Values.
(4) 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.
SECTION 2.09 DEATH BENEFITS. Upon Xxxxxxxxx's receipt of due proof 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 greater of:
(a) The Retirement Account Value; or
11
(b) A minimum death benefit equal to (i) the sum of all Contributions made
with respect to the Participant pursuant to Section 2.01, minus (ii) the sum of
all prior withdrawals of Contributions with respect to the Participant in
conjunction with the following transactions: (A) any withdrawals pursuant to
Section 2.08, (B) any Active Loan other than an Old Plan Takeover Loan, and (C)
any reduction on account of a forfeiture pursuant to Section 2.12. In no event
will such minimum death benefit be less than zero. Repayment of Old Plan
Takeover Loans will not be considered Contributions for this purpose.
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 the Investment Divisions
will be transferred to the Guaranteed Interest Division and the entire
Retirement Account Value will be held therein pending disposition of the death
benefit in accordance with the immediately preceding paragraph.
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 Contributions from which the Retirement Account
Value arose.
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;
12
(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 minimum death benefit will be determined with respect to the account as
though such beneficiary were a Participant and the initial value of such
account will be deemed a Contribution for this purpose;
(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; and
(e) Such beneficiary's account will be subject to all fees and charges
other than withdrawal charges applicable to Retirement Account Values under
this Contract.
SECTION 2.10 LOANS. The Employer or Employer Plan Trustee may permit 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
establish a loan under this Contract with respect to a Participant in
accordance with the following criteria:
(a) A 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 in accordance with the Plan;
(b) Before the Transaction Date on which a loan is to become effective
("Loan Effective Date") the Employer or Employer Plan Trustee is to provide
Equitable with a signed loan agreement, in a form satisfactory to Equitable,
setting forth all applicable terms and conditions of the loan. Such agreement
is to be signed by the Employer or Employer Plan Trustee and the Participant;
(c) No more than one Active Loan is permitted for a given Participant at
one time, except for multiple takeover loans transferred to this Contract with
respect to a given Participant;
(d) The minimum amount of each loan will be $1,000;
(e) The maximum amount of each loan will be the lesser of (i) $50,000
reduced by the excess, if any, of (A) the highest outstanding balance of loans
with respect to the Participant under the Employer's Plan during the twelve-
month period ending on the day immediately before the date on which such loan
is made, over (B) the outstanding balance of loans with respect to the
Participant under the Employer's Plan on the date on which such loan is made,
or (ii) one-half of the vested portion of the Retirement Account Value;
(f) As of any date on which there is an Active Loan hereunder with respect
to a Participant, any withdrawal pursuant to Section 2.08, Paragraph (1) will
be permitted only against the excess, if any, of the Cash Value over the
Restricted Withdrawal Amount;
13
(g) The rate of interest applicable to each loan will be 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;
(h) A one-time loan origination fee and a periodic loan maintenance fee
will be applicable to each loan in accordance with Section 2.11, Paragraph (5
);
(i) The amount of a loan will be withdrawn from the amount held in the
Divisions with respect to the Participant in accordance with the instructions
submitted for purposes of such loan by the Employer or Employer Plan Trustee;
(j) The loan must be repaid within a term as specified in the Code with
respect to such loans;
(k) The "Loan Repayment Date" will be each of a series of dates to be
designated in a loan amortization schedule included in the loan agreement
referred to in Clause (b) above;
(1) Payments must be remitted to Equitable by the Employer or Employer Plan
Trustee as of each Loan Repayment Date of an Active Loan, with each such
payment at least equal to the amount required, as specified in the amortization
schedule as of the Loan Effective Date;
(m) Additional loan repayments may be made at any time. The loan,
including the full amount of interest due thereon, may be repaid in full at any
time;
(n) Loan repayments with respect to a Participant will be allocated by
Equitable either (A) to the Divisions on the basis of the instructions
submitted for withdrawal of such loan pursuant to Clause (i) of this Section,
or (B) if the Participant so elects, entirely to the Guaranteed Interest
Division; and
(o) A loan will be in default if (i) the full amount of any loan repayment
is not received by Equitable within 90 days of the applicable Loan Repayment
Date, (ii) the Participant's or Employer Plan's participation under this
Contract is terminated pursuant to Section 2.08, or (iii) the Participant dies.
When an Active Loan, other than an Old Plan Takeover Loan, goes into default
Equitable will treat the loan principal as a withdrawal pursuant to Section
2.08, Paragraph (1), subject to any applicable withdrawal charge pursuant to
Section 2.11, Paragraph (6).
As of the Transaction Date of each loan made pursuant to this Section,
excluding takeover loans as defined in Sections 1.26 and 1.33, Equitable will
(a) withdraw from the amount held in the Divisions with respect to the
Participant the amount of such loan, and (b) issue a check for the amount of
such loan.
14
SECTION 2. 11 FEES AND CHARGES
(1) As of the last Business Day of each calendar quarter as of which the
sum of the Retirement Account Value and any Active Loan with respect to a
Participant is less than $25,000, an administrative fee of $7.50 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 fee will correspondingly reduce such deduction.
(2) As of the last Business Day of each calendar year with respect to each
Employer Plan, other than one for which amounts were transferred to this
Contract from the Predecessor Contract pursuant to Section 2.03, a per-plan
recordkeeping fee of $300 will be applicable. The Employer or Employer Plan
Trustee shall pay such fee to Equitable. To the extent that the Employer or
Employer Plan Trustee does not pay such fee directly, it will be deemed to have
instructed Equitable to deduct such fee from the amounts held in the Divisions
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 financial accounting, death
benefits, mortality risk, expenses and expenses risk. Such charge will be
applied after any deductions to provide for taxes and will be at a rate not to
exceed (a) 1.49% per year for each of the Stock, Money Market and Balanced
Divisions, and (b) 1.34% per year for the Aggressive Stock Division. The
charge will be made in accordance with Clause (c) of the definition of Net
Investment Factor in Section 1.25. The relative proportion of these charges may
be modified. The sum of such daily asset charge and the investment advisory
fee charges and direct operating expense charges of the designated trust or
investment company with respect to the Separate Account will not exceed a total
annual rate of 1.75% of the value of the Investment Divisions attributable to
this Contract.
(4) The portion of a partial withdrawal made pursuant to Section 2.08,
Paragraph (1) that is in excess of the Free Corridor Amount will, except as
provided in the following provisions of this Paragraph (4), be subject to a
withdrawal charge not greater than the sum of
(a) 6% of any amount included in such excess portion that represents
Contributions made during the then-current and five immediately preceding
Participation Years on behalf of the Participant to Sources in which the
Employer or Employer Plan Trustee has determined that the Participant is fully
vested pursuant to the Employer Plan; and
(b) the product of (A) 6% of any amount included in such excess portion
that represents Contributions made during the then-current and five immediately
preceding Participation Years on behalf of the Participant to Sources in which
the Employer or Employer Plan Trustee has determined that the Participant is
not fully vested pursuant to the Employer Plan, and (B) a percentage
representing the vested portion of such Sources with respect to the
Participant.
15
For purposes of determining such withdrawal charges (a) any withdrawal of an
amount up to the Free Corridor Amount will not be considered a withdrawal of
Contributions, and (b) Contributions will be considered withdrawn in the order
received.
There will be no withdrawal charge in connection with the following:
(a) Amounts withdrawn with respect to a Participant for whom Xxxxxxxxx has
received due proof of the Participant's total and permanent disability, as
defined in Section 72(m)(7) of the Code, or due proof of the Participant's
death;
(b) Amounts withdrawn with respect to a Participant who has attained age 59
1/2 if either (i) the Participant has at least five Participation Years, or
(ii) the partial withdrawal has been requested on or after the Participant's
separation from service with the Employer, provided that such separation from
service is verified by the Employer or Employer Plan Trustee in a signed
statement accompanying the withdrawal request;
(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;
(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 repayment; 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 twelve (12) months after the
disallowance of the deduction has occurred and no earnings attributable to such
contributions are included in such repayment.
16
Amounts described in the immediately preceding Clauses (c) through (g) will not
count as prior withdrawals in calculation of a Participant's Free Corridor
Amount, except for amounts withdrawn that represent the income referred to in
Clauses (c), (d), or (e). The amounts described in said Clauses (c) through
(g) will be as determined by the Employer or Employer Plan Trustee and reported
to Equitable.
(5) A loan origination fee of $50 is applicable as of the Loan Effective
Date of each Active Loan, except for takeover loans as defined in Sections 1.26
and 1.33, and a loan maintenance 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.
(6) As of the date on which a loan other than an Old Plan Takeover Loan
defaults, Equitable will deduct from the amount held in the Divisions with
respect to the Participant the amount of any withdrawal charge, determined
pursuant to Paragraph (4) of this Section as if the unpaid principal of such
loan were a partial withdrawal.
(7) If the Employer or the Employer Plan Trustee requests that the amount
representing a forfeiture and the interest thereon be withdrawn 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
withdrawal charge and the Free Corridor Amount with respect thereto will be
zero. The withdrawal charge, which will be deducted by Equitable at the time
of such withdrawal, will be equal to 6% of the portion of such withdrawal that
consists of amounts which represented, as of the date of the forfeiture,
Contributions remitted with respect to a Participant during the then-current
and five immediately preceding Participation Years.
(8) Any charge for taxes which Equitable pays in conjunction with a
withdrawal pursuant to Section 2.08 will be deducted as of the applicable
Transaction Date from the amounts held in 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
2.06, 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 2.12 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
invested portion of the Participant's Employer Plan benefit.
17
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 or the Employer Plan Trustee.
18
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.05.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit"
means an Annuity Benefit under which the dollar amount of the monthly payments
with respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 5.00% or
3.50% annually, after the deduction for investment advisory fees, direct
operating expenses of the designated trust or investment company and daily
asset charge, and will decrease if it is equivalent to less than 5.00% or 3.50%
annually after such deduction, depending on whether the applicable Assumed Base
Rate of Net Investment Return referred to in Section 1.07 is 5.00% or 3.50%,
respectively. The Assumed Base Rate of Net Investment Return will be 5.00%
except in states where that rate is not permitted by law.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to a payee pursuant to Section 3.05. The amount of
the fourth and each subsequent payment under a Variable Annuity Benefit will be
equal to the number of Annuity Units with respect to such benefit, multiplied
by the Average Annuity Unit Value for the second calendar month immediately
preceding the due date of the payment. The fourth and subsequent annuity
payments under a Variable Annuity Benefit will not be increased or decreased in
amount because of mortality or expense experience. The number of Annuity Units
with respect to a benefit is the number determined by dividing the amount of
the first monthly payment under such benefit by the Annuity Unit Value for the
Valuation Period which includes the due date of the first monthly payment.
SECTION 3.03 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.
19
SECTION 3.04 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 3.05 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 following, less any applicable tax on annuity
considerations: (a) the Retirement Account Value, if payments under the
applicable annuity form are contingent upon the survival of a person, or (b)
the Cash Value, if payments under the applicable annuity form are not
contingent upon the survival of a person; provided that the Employer or
Employer Plan Trustee may report, in accordance with Section 3.04, 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 2.06, 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 Tables 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 larger 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 3.06 PAYMENT OF ANNUITY BENEFITS. 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.
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 under a Fixed Annuity Benefit, the number of
Annuity Units under a Variable Annuity Benefit, or 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.
20
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 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.
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
21
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 (a) with respect to each Participant an individual certificate
setting forth a statement in substance of the benefits to which the Participant
is entitled under this Contract, and (b) 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 and any certificate 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 statute of the
state in which a certificate is delivered.
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
22
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 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 change any fee
described in Section 2.11, Paragraphs (1), (2) and (5) at any time to reflect
any increase in Equitable's expenses related to the administrative functions
covered by such fees.
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 3.04, (b) the administrative charge described in Section 3.05, and
(c) the actuarial basis used in the Tables of Guaranteed Annuity Payments
appearing in Appendix A.
Equitable may elect to make any change pursuant to the preceding 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 Xxxxxxx Xxxxxxx provided 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 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;
(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
23
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. Payments by Equitable from the Guaranteed Interest
Division pursuant to the provisions of Sections 2.08 and 2.09 may be deferred
for up to six months after receipt of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant, respectively.
Interest at the then-current Guaranteed Interest Rate for amounts held in the
Guaranteed Interest Division with respect to such Participant will be allowed
on any such payment.
24
Except as provided in this Section, payments by Equitable from the amounts held
with respect to the Participant in the investment Divisions pursuant to the
provisions of Sections 2.08 and 2.09, will be made within seven days after the
applicable Transaction Date.
During any period when (a) the sale of securities or the determination of the
Accumulation Unit Value or the Average Annuity Unit 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, Equitable reserves the right to defer:
(i) determination of Cash Value or Retirement Account Value and payment of
Cash Value and Retirement Account Value, arising from an Investment Division;
(ii) payment of any portion of the death benefit arising from an Investment
Division;
(iii) the payment of any Variable Annuity Benefit under the Contract or the
application of any such benefit to provide for any other payment called for
under the Contract; or
(iv) application, in the event of (i) above, of such amounts to provide any
Annuity Benefit under the Contract.
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 4.09 EMPLOYER OR EMPLOYER PLAN TRUSTEE'S RESPONSIBILITY. Equitable
shall make no payment hereunder without written instructions from the Employer
or
25
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 QUALIFICATION. 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 within (a) 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:
(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 Section 2.08, Paragraph (3).
26
APPENDIX A
TABLES OF GUARANTEED ANNUITY PAYMENTS
Part 1: Amount of Fixed 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 a Fixed 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.
Part II: Amount of Variable Annuity Benefit payable on the Life Annuity
from provided initially by an application of $1,000.
Initial Amount if Assumed
Base Rate of Net Investment Return is
Age 3.50% 5.00%
. --- ----- -----
55 $4.18 $5.11
60 4.49 5.41
65 4.91 5.81
70 5.47 6.37
The amount of income initially provided under a Variable Annuity
Benefit payable on the Life Annuity form is based on 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,
subject to a modified two-year age setback, and with an Assumed Base Rate of
Net Investment Income Return of 3.50% or 5.00%, whichever applies pursuant to
Section 1.07.
Amounts required for ages not shown in the Tables or for other annuity forms
will be calculated by Equitable on the same actuarial basis.
27
Attached to and made part of Group Annuity Contract No. AC 6688
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES 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
For Employers and Employer Plan Trustees participating in the Contract prior to
June 1, 1994, the following shall be effective upon receipt by Equitable of an
election form signed by the Employer or Employer Plan Trustee. For all other
Employers or Employer Plan Trustees, IT IS HEREBY AGREED that said contract is
amended, effective June 1,1994, as follows:
1. Items (a) through (d) of Section 1.22 INVESTMENT DIVISIONS, is replaced
by the following items (a) through (l):
(a) the Stock Division;
(b) the Money Market Division;
(c) the Balanced Division;
(d) the Aggressive Stock Division;
(e) the Equity Index Division;
(f) the Global Division;
(g) the Growth Investors Division;
(h) the Growth and Income Division;
(i) the Conservative Investors Division;
(j) the High Yield Division;
(k) the Intermediate Government Securities Division; and
(l) the Quality Bond Division.
2. The last sentence of the third paragraph of Section 2.04 is replaced by
the following:
The Investment Divisions may consist of "Type A" Investment Divisions
or "Type B" Investment Divisions, or any other type which the Equitable
designates in its discretion. As of June 1, 1994, the following applies:
"Type A" Investment Divisions:
the Stock Division;
the Balanced Division;
the Aggressive Stock Division;
the Equity Index Division;
the Global Division;
the Growth Investors Division;
the Growth and Income Division;
"Type B" Investment Divisions:
the Conservative Investors Division;
the High Yield Division;
the Intermediate Government Securities Division;
the Money Market Division;
the Quality Bond Division
3. For Employers and Employer Plan Trustees participating in the Contract
prior to June 1, 1994, who do not elect this Rider, the existing
Section 2.07 TRANSFERS AMONG DIVISIONS, will apply.
For all other Employers and Employer Plan Trustees, the following new
Section 2.07A TRANSFERS AMONG DIVISIONS, will apply in lieu of Section 2.07.
Section 2.07A 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 Clause (b), 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 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;
Interest transferred from the Guaranteed Interest Division under any
automatic transfer option available from 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 2.07A.
Page 2
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.
Page 3
4. Item (3) of Section 2.11, FEES AND CHARGES, is replaced with the
following:
(3) The assets of the Investment Divisions attributable to this
Contract will be subject to a daily asset charge for financial accounting,
death benefits, 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) 1.49% per year for each of the Stock, Money Market and Balanced
Divisions, and (b) 1.34% per year for each of the Aggressive Stock, Equity
Index, Global, Growth Investors, Growth and Income, Conservative Investors,
High Yield, Intermediate Government Securities, and Quality Bond Divisions.
The charge will be made in accordance with Clause (c) of the definition of Net
Investment Factor in Section 1.25. The relative proportion of these charges
may be modified. With respect to the Stock, Money Market, Balanced and
Aggressive Stock Division only, the sum of such daily asset charge and the
investment advisory fee charges and direct operating expense charges of the
designated trust or investment company will not exceed a total annual rate of
1.75% of the value of such Investment Divisions. The 1.75% maximum does not
apply to any Investment Division other than the Stock, Money Market, Balanced,
and Aggressive Stock Divisions and will not apply to any Investment Divisions
added in the future.
NEW YORK, NEW YORK,
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Chairman and Chief Executive Officer President and Chief Operating Officer
Vice President and Secretary
By
----------------------------------
Assistant Registrar
UNITED STATES 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
Agreed to by:
By
-----------------------------------
Title
---------------------------------
Date
----------------------------------
Page 4
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
GROUP PENSION NOTICE
MEMBER:
MEMBER NUMBER:
MEMBER STARTING DATE:
PLAN SPONSOR:
EQUITABLE warrants that you, the Member, are covered under our Group Pension
Contract No. AC6688 ("Contract") with respect to the Plan Sponsor's Plan.
The Contract and the formal request therefor are the entire contract between
the Plan Sponsor or the Trustee and us. The Contract shall govern all payments
and our rights and duties with respect thereto.
No amount to be paid under the Contract as described in this Notice may be
assigned by the payee and, as far as allowed by law, no such amount shall in
any way be subject to any legal process to subject the same to the payment of
any claim against such payee. This constraint shall not apply to any payment
or part of it assigned, transferred, or attached by a court order that applies
to divorce or child support of the type defined in Section 414(p) of the
Internal Revenue Code of 1986, as now or later changed.
Amounts received under the Contract may be placed in one or more Divisions of
the Separate Account based on the Plan Sponsor's or Trustee's advice to us in
keeping with the Plan Sponsor's Plan. Such amounts may increase or decrease in
value as described in the Contract.
THE CONTRACT IN BRIEF
TERMS DEFINED
Divisions: The options which can be used to invest amounts held under the
Contract: the Guaranteed Interest Division, which is funded through our
General Account; and the Stock, Money Market, Balanced, and Aggressive Stock
Divisions, which are funded through our Separate Account A, a pooled, market
valued account maintained as described in the Contract. We may add other
options in future.
Equitable: The insurer whose full name appears at the head of this Notice.
The terms "we," "our" and "us" as used herein mean Equitable.
Member's Account Value: The sum of the amounts held with respect to you under
the Contract.
Participation Year: The twelve months' term that begins on the Member Starting
Date and each such twelve months' term after that.
Plan Sponsor's Plan: A pension or profit sharing plan of the Plan Sponsor
which is funded under the Contract.
Trustee: The person or persons, if any, named as trustee of the Plan Sponsor's
Plan, and any person or persons who succeeds such person or persons in such
role.
AMOUNTS RECEIVED
The Plan Sponsor or Trustee is to send amounts to us from time to time on
behalf of the Member and other persons covered by the Plan Sponsor's Plan, on
the basis set forth in the Plan Sponsor's Plan.
AMOUNTS INVESTED
We will invest such amounts and transfer any balance held for you amount the
Divisions as the Plan Sponsor or Trustee instructs, as set forth in the Plan
Sponsor's Plan. Many plans permit members to tell us how to invest such
amounts. Transfers are not allowed into Money Market from the other Divisions.
PAYMENTS TO YOU
Amounts held under the Contract for you will be used, subject to the terms of
the Contract, to provide payments for you, either through purchase of an
insured monthly pension or in some other way, as the Plan Sponsor or Trustee
directs in keeping with the Plan Sponsor's Plan.
If an insured pension is purchased under the Contract for you, such pension
will be paid on the Life form described below or, as the Plan Sponsor or
Trustee reports, on any other form we offer, subject to law and to our rules.
Many plans require that pensions be paid with respect to married persons on the
payee and joint payee form with the spouse as the joint payee, unless the payee
and the spouse elect some other form or mode of payment in keeping with the law
and the given plan.
2
The Life form provides monthly payments to you starting as of a date reported
in advance by the Plan Sponsor or Trustee and ending with the last monthly
payment due before your death.
You should consult the Plan Sponsor as to other forms or modes of payment
allowed under the Plan Sponsor's Plan.
If any data on which a payment made under the Contract is based has been in
error, we will adjust any later payments, in keeping with the Contract, on the
basis of the correct data.
Our insured pension contract setting forth the amount and terms of payment of
any insured monthly pension will be furnished to replace this Notice for each
person for whom such a pension is purchased under the Contract.
IF YOU WITHDRAW
If the Plan Sponsor or Trustee requests on your behalf when, subject to the
Plan Sponsor's Plan, you elect to withdraw some or all of the amount held under
the Contract for you, we will pay such amount subject to all terms of the
Contract that apply to such event, which may include the charge described
below.
If the amount you withdraw is in excess of the Free Corridor Amount (as defined
below), such excess is subject to a charge equal to 6% of the amounts received
from the Plan Sponsor or Trustee under the Contract on your behalf during the
current and just prior five Participation Years, to the extent such amounts
were not withdrawn before.
The "Free Corridor Amount" is, subject to the terms of the Contract, 10% of the
sum of the Members' Account Value and the balance of any active loan, less the
sum of any amount withdrawn before, any vesting loss, and any active loan that
went into default in the same Participation Year.
DEATH PAYMENT
Upon our receipt of due proof of your death, a death payment will be due to the
person named to receive such payment in keeping with Contract. Such death
payment will be equal to the greater of:
(a) The Member's Account Value; or
3
(b) An amount, subject to the terms of the Contract, that is equal to all
amounts we received from the Plan Sponsor or Trustee under the Contract on your
behalf, less the sum, with respect to you, of all such amounts withdrawn before
then, any prior vesting loss, and any active loan that went into default.
Subject to the terms of the Contract, the person due to receive the death
payment may elect to receive it in a single sum, to apply it to the purchase of
an insured monthly pension, to apply it to provide any other form of payment
then offered by us, or to credit it to an account under the Contract on a basis
described therein.
Upon request by a person due to receive such death payment, we will provide
such person with further advice as to other methods of payment.
DEATH PAYMENT PAYEE
You may name (with the right to change such name from time to time) a payee or
payees to receive any payment or payments that might become due to a payee
under the Contract with respect to you. The plan Sponsor's Plan may require,
if you are married, that your spouse be named as such payee unless your spouse
consents to the naming of some other payee, in keeping with the law and the
Plan Sponsor's Plan. Any such naming or change therein will be by written
notice filed with the Plan Sponsor or Trustee.
FEES
Certain fees charged by us under the Contract will be withdrawn from the
amounts held for you unless the Plan Sponsor or Trustee has made a direct
payment of such fees.
CONTRACT CHANGES
The Contract may be changed by rider or replaced if we and the trustee which
serves as contract holder so agree, without the consent of any other person
referred to in the Contract, but no such change will reduce any benefit, death
payment, or amount withdrawn that arose from amounts received by us before such
change, or any other payment to which we may commit under the Contract before
such change.
4
PLAN SPONSOR OR TRUSTEE OPTION
The Plan Sponsor or the Trustee may, subject to the Contract, elect to withdraw
the amount held for you, less any charges that apply, and transfer such amount
to some other contract or account which holds assets of the Plan Sponsor's
Plan. If such transfer occurs we will not be obliged under the Contract to
make any further payments with respect to you.
OUR DUTY TO MAKE PAYMENTS
At any given time we are bound under the Contract with respect to you only to
make such payment or payments as we can provide under the terms of the
Contract, using those assets which arise from amounts received on your behalf
and not paid out before such time.
5
FOLLOWING ARE THREE ALTERNATIVE PAGES (COVER, PAGE 3, PAGE 29)
CONTRACT Group Annuity Contract No. AC 6688
CONTRACT HOLDER United states 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 July 1, 1992
The 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 THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT AND THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE AS DESCRIBED IN THIS CONTRACT.
The provisions of this Contract, which include the following pages, are agreed
to by the Contract Xxxxxx and Equitable.
FOR THE CONTRACT HOLDER FOR THE EQUITABLE
By ________________________ By: _____________________________
Chairman of the Board and
Chief Executive Officer
Title: ______________________ By: _____________________________
Vice President and Secretary
Dated: _____________________ By: _____________________________
Assistant Registrar
At: New York, New York______ Date of Issue: _____________________
(Head Office)
INTEREST RATE GUARANTEE - FIXED AND VARIABLE ANNUITY BENEFITS - NON-
PARTICIPATION
TABLE OF CONTENTS - CONT'D
PART II - RETIREMENT ACCOUNT VALUE
Section 2.01 - Contribution 11
Section 2.02 - Transfers of Unallocated Amounts 11
Section 2.03 - Transfers from Predecessor Contract 11
Section 2.04 - Separate Account 12
Section 2.05 - Guaranteed Interest Division 12
Section 2.06 - Allocation of Contributions to Divisions 13
Section 2.07 - Transfers among Division s 13
Section 2.08 - Partial Withdrawal and Termination 14
Section 2.09 - Death Benefits 15
Section 2.10 - Loans 16
Section 2.11 - Fees and Charges 18
Section 2.12 - Forfeitures 20
PART III - ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit 22
Section 3.02 - Variable Annuity Benefit 22
Section 3.03 - Form of Annuity Benefit 22
Section 3.04 - Report for Annuity Benefit 23
Section 3.05 - Application to Provide Annuity Benefit 23
Section 3.06 - Payment of Annuity Benefit 23
PART IV - GENERAL PROVISIONS
Section 4.01 - Contract 25
Section 4.02 - Statutory Compliance 25
Section 4.03 - Assignments and Non transferability 25
Section 4.04 - Manner of Payment 26
Section 4.05 - Right to Change 26
Section 4.06 - Beneficiary 27
Section 4.07 - Deferment 27
Section 4.08 - Contract Holder's Responsibility 28
Section 4.09 - Employer's and Employer Plan
Trustee's Responsibility 29
Section 4.10 - Plan Qualification 29
Section 4.11 - Participation in Surplus 29
APPENDIX A - Tables of Guaranteed Annuity Payments 30
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 QUALIFICATION. 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 within (a) 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:
(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 Section 2.08,
Paragraph (3).
