Aetna Variable Annuity Life Insurance Company
Home Office: LITTLE ROCK, ARKANSAS
Executive Office: HARTFORD, CONNECTICUT 06115
Herein called Aetna
Agrees to pay benefits as provided herein with respect to any person entitled
thereto as a participant in the Plan named below.
This contract is issued to the Contract Owner in consideration of the
application therefor and of the payment by the Contract Owner of contributions
as provided herein.
Provisions contained in subsequent pages hereof form a part of this contract as
fully as if recited in their entirety over the signatures hereto affixed.
IN WITNESS WHEREOF, Aetna has caused this contract to be executed at its
Executive Office on the Execution Date.
/s/ Xxxxx X. Xxxxxxxxxx /s/ Xxxxxx X. Xxxxxxx
Secretary President
GROUP RETIREMENT ANNUITY CONTRACT
ACTIVE LIFE FUND IN SEPARATE ACCOUNT
AND GENERAL ACCOUNT INDIVIDUAL ALLOCATIONS
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT,
WHEN BASED ON INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT,
ARE VARIABLE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT.
One of the Aetna Life & Casualty Companies
SPECIFICATIONS
(HEREIN CALLED THE PLAN)
THIS CONTRACT IS ISSUED TO
(XXXXXX CALLED THE CONTRACT OWNER)
GROUP ANNUITY CONTRACT NO.
CONTRACT EFFECTIVE DATE
EXECUTION DATE
THIS CONTRACT IS DELIVERED IN
AND IS SUBJECT TO THE LAWS OF THAT JURISDICTION
Item 1 Normal Annuity Form, Section 2.01 - Option
Item 2 Investment Rate, Section 2.05: Table I -
Table II -
Item 3 Margin deduction for each day of a Valuation Period,
Section 3.05 -
Item 4 Investment Rate Factor, Section 3.07 -
Item 5 Interest Rate, Section 4.12 Variable Annuities -
Fixed Annuities -
TABLE OF CONTENTS
Section Page
ARTICLE I
Definition of Certain Terms
ARTICLE II
Retirement Annuity Provisions.................................... 5
2.01 Notice to Effect an Annuity...................................... 5
2.02 Optional Annuity Forms, Election of Option....................... 5
2.03 Allocation of Annuity............................................ 6
A. Variable Annuity........................................... 6
B. Fixed Dollar Annuity....................................... 7
2.04 Frequency of Payments............................................ 7
2.05 Description of Tables............................................ 7
Table I.......................................................... 9
Table II......................................................... 11
ARTICLE III
Contributions, Valuation, and Discontinuance
Contributions
3.01 Contributions.................................................... 13
3.02 Application of Contributions..................................... 13
3.03 Participant's Individual Account................................. 13
3.04 Active Life Fund................................................. 14
Valuation
3.05 Net Investment Rate and Net Investment Factor.................... 14
3.06 Accumulation Unit Value.......................................... 14
3.07 Annuity Unit Value............................................... 14
3.08 Experience Rating................................................ 15
Discontinuance of Contributions
3.09 Suspension....................................................... 15
3.10 Change to a Paid-Up Contract..................................... 15
3.11 Transfer of Active Life Fund..................................... 16
ARTICLE IV
General Provisions
4.01 Change of Contract by Aetna...................................... 17
4.02 Change of Contract by Mutual Agreement - Retroactive Changes..... 17
4.03 Contract......................................................... 18
4.04 Individual Certificates.......................................... 18
3
4.05 Conversion to Individual Contract................................ 18
4.06 Death Benefit.................................................... 18
4.07 Designation of Beneficiary....................................... 19
4.08 Facility of Payment.............................................. 19
4.09 Evidence of Survival............................................. 19
4.10 Misstatements and Adjustments.................................... 19
4.11 Assignments...................................................... 20
4.12 Basis of Reserves................................................ 20
4.13 Termination of Contract.......................................... 20
4.14 Data to be furnished to Aetna.................................... 20
4.15 Relation of this Contract to the Separate Account................ 21
4
Article I
DEFINITION OF CERTAIN TERMS
1. CONTRACT YEAR - the period of 12 months commencing with either the Effective
Date or any anniversary thereof.
2. PARTICIPANT - a person who participates in the Plan.
3. ANNUITANT - a participant on whose life a Retirement Xxxxxxx has been
effected.
4. RETIREMENT ANNUITY - a series of payments provided under this Contract with
respect to a Participant.
5. ANNUITY COMMENCEMENT DATE - the date on which Retirement Annuity payments
commence with respect to a Participant under the terms of the Plan.
6. SEPARATE ACCOUNT - those assets of Aetna in the separate account
established by Aetna pursuant to the Arkansas Insurance Code, for this
class of contracts which provide variable benefits.
7. GENERAL ACCOUNT - all assets of Aetna other than those in separate accounts.
8. VALUATION DATE - each date as of which the Accumulation Unit Value or
Annuity Unit Value is determined pursuant to applicable regulatory
provisions or company procedures.
9. VALUATION PERIOD - the period from one Valuation Date to the next.
Article II
RETIREMENT ANNUITY PROVISIONS
SECTION 2.01 - Notice to Effect an Annuity
When a Participant is eligible for a Retirement Annuity in accordance with the
Plan, the Contract Owner shall notify Aetna to effect an annuity for such
Participant. On the Participant's Annuity Commencement Date Aetna shall apply
such portion of the value of the Participant's Individual Account as designated
by the Contract Owner to provide a Retirement Annuity on the applicable Optional
Annuity Form. In the absence of an election of an Optional Annuity Form in
accordance with Section 2.02, the Retirement Annuity will be on the Normal
Annuity Form as set forth in Item 1 of the Specifications.
SECTION 2.02 - Optional Annuity Forms, Election of Option
OPTION A - Life Annuity - An annuity payable monthly during the lifetime of an
Annuitant, ceasing with the last payment due prior to the Annuitant's death.
OPTION B - Life Annuity with 60, 120 or 180 Monthly Payments Guaranteed - an
annuity payable monthly during the lifetime of an Annuitant, with a guarantee
that if, at the death of the Annuitant, payments have been made for less than
60, 120 or 180 months as
5
selected, payments will be continued thereafter to the Annuitant's beneficiary
during the remainder of said period. If a beneficiary dies while receiving
annuity payments, the then present value of the current dollar amount of the
remaining guaranteed number of annuity payments commuted on the basis of the
investment rate or rates on which the accumulation units were applied to
provide a Retirement Annuity, shall be paid in a lump sum to the estate of the
beneficiary.
OPTION C - Unit Refund Life Annuity - An annuity payable monthly during the
lifetime of an Annuitant, ceasing with the last payment due prior to the death
of the Annuitant, provided that, at the death of the Annuitant, the beneficiary
will receive an additional payment of the then dollar value of the number of
annuity units equal to the excess, if any, of (a) over (b) where (a) is the
total amount applied under the option divided by the annuity unit value at the
Annuity Commencement Date and (b) is the number of annuity units represented by
each payment multiplied by the number of payments made.
OPTION D - Joint and Last Survivor Annuity - An annuity payable monthly during
the lifetime of an Annuitant and thereafter during any remaining lifetime of a
designated second person.
The amount of the first payment under any of these options will be determined in
accordance with Section 2.05. No payments will be made under any of these
options prior to receipt by Aetna of satisfactory evidence of the date of birth
of the Annuitant and any joint Annuitant.
Election of Option - If provided by the Plan, in lieu of the Normal Annuity Form
Specified in Section 2.01 the Participant may elect any one of the Optional
Annuity Forms, but such election may be made only on a form acceptable to Aetna
and filed at its Home Office at least 30 days prior to the Annuity Commencement
Date.
SECTION 2.03 - Allocation of Annuity, Variable and Xxxxx Xxxxxxxxx
Unless provided otherwise by the Plan, the Participant's Individual Account may
be applied to provide a variable annuity, a fixed annuity, or a combination of
both, as elected by the Participant provided such election is made on a form
acceptable to Aetna and filed at its Home Office at least 30 days prior to the
Annuity Commencement Date.
In the absence of such an election, when a Retirement Annuity is effected for a
Participant, General Account accumulation units in the Participant's Individual
Account will be used to provide a fixed dollar annuity and Separate Account
accumulation units will be used to provide a variable annuity.
A. Variable Annuity - A variable annuity is an annuity with payments
varying in amount in accordance with the net investment results of the
Separate Account as described in the Valuation provisions of Article
III. After the first monthly payment for a variable annuity has been
determined in accordance with the
6
provisions of the Contract, a number of Separate Account annuity units
is determined by dividing the first monthly payment by the Separate
Account annuity unit value on the Annuity Commencement Date. Once
variable annuity payments have begun, the number of annuity units
remains fixed.
The dollar amount of the second and subsequent variable annuity
payments is not predetermined and may change from month to month. The
actual amount of each variable annuity payments is not predetermined
and may change from month to month. The actual amount of each variable
annuity payment after the first is determined by multiplying the number
of Separate Account annuity units by the Separate Account annuity unit
value as described in the Valuation provisions of Article III for the
Valuation Period in which the payment is due.
Aetna guarantees that the dollar amount of variable annuity payments
shall not be affected by variation in the actual mortality experience
of payees from the mortality assumption, including any age adjustments,
as used in determining the first monthly payment.
B. Fixed Dollar Annuity - A fixed dollar annuity is an annuity with
payments which remain fixed as to dollar amount throughout the payment
period. As in the case of the variable annuity, a number of annuity
units is determined when payments commence. Since the General Account
annuity unit value is always $10.00, payments after the first will
never be less than the first monthly payment.
Aetna may, from time to time, by action of its Board of Directors,
increase the number of General Account annuity units to the extent that
such units are applicable to a guaranteed period of benefits, and the
value of such additional units will be payable only during the
guaranteed period.
SECTION 2.04 - Frequency of Payments
Annuity payments under this Contract will be made monthly, except that, if such
payments would amount to less than $25 each, Aetna reserves the right to make
payments at less frequent intervals; provided, however, that if at any time the
annual rate of payment to any payee is less than $100, Aetna may make such other
settlement as may be equitable to the payee.
TABLES
SECTION 2.05 - Description of Tables
The Tables contained herein show the dollar value of accumulation units required
to effect a variable annuity and a fixed annuity with a first monthly payment of
$1.00 under each of the Optional Annuity Forms. The dollar value of the
accumulation units applied will be calculated on the basis of the accumulation
unit value as of the last day of the tenth
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Valuation Period preceding the Annuity Commencement Date. The amount of each
monthly payment will depend upon the sex and adjusted age of the person with
respect to whom the Retirement Annuity is effected at the Annuity Commencement
Date. Adjusted age is determined as follows:
Calendar Year of Birth Before 1901 1901-1915 1916 - 1935 1936 - 1955 1956 - 1975
Adjusted Age is Actual Age plus 1 minus 1 minus 2 minus 3
Actual age, as used above, shall mean age nearest birthday at the Annuity
Commencement Date.
The amounts shown in Tables I and II are based on the Progressive Annuity Table,
assuming year of birth 1900, and the investment rate set forth in Item 2 of the
Specifications.
If it would produce greater benefits, Aetna agrees that the first monthly
payment to the Annuitant will be determined on the same mortality and interest
basis used in determining rates for immediate annuities then being issued for
this class of Annuitant.
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Table I - VARIABLE ANNUITIES
DOLLAR VALUE REQUIRED TO PURCHASE AN ANNUITY
WITH A FIRST MONTHLY PAYMENT OF $1.00
If so provided in the preceding paragraph of this Section 2.05, the following
amounts must be increased by the premium taxes payable at the time benefits are
purchased.
Options A, B and C - Single Life Annuities
Monthly Payments Guaranteed
-------------------------------------------------------------
Adjusted Age
Male Female None 60 120 180 Unit Refund
-------------------------- ------- ------- ------- ------- -----------
50 54 $210.85 $211.36 $213.06 $216.23 $220.90
51 55 206.73 207.30 209.18 212.68 217.38
52 56 202.54 203.17 205.26 209.12 213.91
53 57 198.27 198.97 201.28 205.55 210.30
54 58 193.93 194.70 197.26 201.96 206.62
55 59 189.51 190.37 193.20 198.39 202.99
56 60 185.03 185.98 189.11 194.82 199.23
57 61 180.48 181.54 185.00 191.28 195.40
58 62 175.87 177.04 180.87 187.77 191.64
59 63 171.21 172.50 176.73 184.31 187.75
60 64 166.49 167.93 172.59 180.91 183.78
61 65 161.73 163.32 168.47 177.58 179.90
62 66 156.93 158.69 164.37 174.34 175.90
63 67 152.09 154.05 160.30 171.19 171.81
64 68 147.23 149.40 156.28 168.16 167.86
65 69 142.35 144.75 152.31 165.25 163.76
66 70 137.46 140.11 148.42 162.48 159.58
67 71 132.57 135.50 144.62 159.86 155.59
68 72 127.67 130.91 140.92 157.40 151.42
69 73 122.79 126.37 137.32 155.12 147.16
70 74 117.93 121.89 133.86 153.01 143.19
71 75 113.11 117.47 130.54 151.09 138.97
72 76 108.32 113.13 127.37 149.36 134.66
73 77 103.57 108.88 124.37 147.82 130.74
74 78 98.89 104.73 121.55 146.46 126.52
75 79 94.27 100.69 118.92 145.29 122.18
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Option D - Joint and Survivor Life Annuity
Adjusted Age of
Second Annuitant Adjusted Age of Annuitant
------------------------------------------------------------------------------------------
M-51 M-56 M-58 M-61 M-63 M-66 M-71
Male Female F-55 F-60 F-62 F-65 F-67 F-70 F-75
---- ------ ---- ---- ---- ---- ---- ---- ----
50 54 $237.79 $229.86 $227.15 $223.59 $221.57 $218.92 $215.73
55 59 229.05 218.34 214.55 209.38 206.35 202.42 197.39
57 61 225.97 214.14 209.85 204.01 200.50 195.93 190.01
60 64 221.91 208.43 203.38 196.39 192.18 186.50 179.02
62 66 219.55 204.99 199.50 191.72 186.96 180.56 171.88
65 69 216.52 200.49 194.31 185.42 179.85 172.21 161.64
70 74 212.71 194.65 187.42 176.84 170.06 160.43 146.43
The dollar value required for any combination of ages not shown will be quoted
upon request.
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Table II - FIXED ANNUITIES
DOLLAR VALUE REQUIRED TO PURCHASE AN ANNUITY
WITH A FIRST MONTHLY PAYMENT OF $1.00
If so provided in the preceding paragraph of this Section 2.05, the following
amounts must be increased by the premium taxes payable at the time benefits are
purchased.
Options A, B and C - Single Life Annuities
Adjusted Age Monthly Payments Guaranteed
Male Female None 60 120 180 Unit Refund
---- ------ ---- -- --- --- -----------
50 54 $210.85 $211.36 $213.06 $216.23 $220.90
51 55 206.73 207.30 209.18 212.68 217.38
52 56 202.54 203.17 205.26 209.12 213.91
53 57 198.27 198.97 201.28 205.55 210.30
54 58 193.93 194.70 197.26 201.96 206.62
55 59 189.51 190.37 193.20 198.39 202.99
56 60 185.03 185.98 189.11 194.82 199.23
57 61 180.48 181.54 185.00 191.28 195.40
58 62 175.87 177.04 180.87 187.77 191.64
59 63 171.21 172.50 176.73 184.31 187.75
60 64 166.49 167.93 172.59 180.91 183.78
61 65 161.73 163.32 168.47 177.58 179.90
62 66 156.93 158.69 164.37 174.34 175.90
63 67 152.09 154.05 160.30 171.19 171.81
64 68 147.23 149.40 156.28 168.16 167.86
65 69 142.35 144.75 152.31 165.25 163.76
66 70 137.46 140.11 148.42 162.48 159.58
67 71 132.57 135.50 144.62 159.86 155.59
68 72 127.67 130.91 140.92 157.40 151.42
69 73 122.79 126.37 137.32 155.12 147.16
70 74 117.93 121.89 133.86 153.01 143.19
71 75 113.11 117.47 130.54 151.09 138.97
72 76 108.32 113.13 127.37 149.36 134.66
73 77 103.57 108.88 124.37 147.82 130.74
74 78 98.89 104.73 121.55 146.46 126.52
75 79 94.27 100.69 118.92 145.29 122.18
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Option D - Joint and Survivor Life Annuity
Adjusted Age of Second
Annuitant Adjusted Age of Annuitant
--------------------------------------------------------------------------------------
M-51 M-56 M-58 M-61 M-63 M-66 M-71
Male Female F-55 F-60 F-62 F-65 F-67 F-70 F-75
---- ------ ---- ---- ---- ---- ---- ---- ----
50 54 $237.79 $229.86 $227.15 $223.59 $221.57 $218.92 $215.73
55 59 229.05 218.34 214.55 209.38 206.35 202.42 197.39
57 61 225.97 214.14 209.85 204.01 200.50 195.93 190.01
60 64 221.91 208.43 203.38 196.39 192.18 186.50 179.02
62 66 219.55 204.99 199.50 191.72 186.96 180.56 171.88
65 69 216.52 200.49 194.31 185.42 179.85 172.21 161.64
70 74 212.71 194.65 187.42 176.84 170.06 160.43 146.43
The dollar value required for any combination of ages not shown will be quoted
upon request.
12
Article III
CONTRIBUTIONS, VALUATION, AND DISCONTINUANCE
CONTRIBUTIONS
SECTION 3.01 - Contributions
Aetna shall receive such contributions from the Contract Owner as are made in
accordance with the requirements of the Plan. Such contributions will be applied
by Aetna to provide accumulation units in accordance with Section 3.02.
SECTION 3.02 - Application of Contributions
The net contribution shall be equal to the total contribution less 8% and the
percentages for premium taxes payable at the time contributions are made.
The net contribution shall be applied as of the last day of the Valuation Period
in which the contribution is received by Aetna, to provide accumulation units on
the basis of the then current value of such units, such application being made
separately for net contributions allocated to the General Account and the
Separate Account in accordance with the instructions of the Contract Owner.
The number of accumulation units provided in each Account and credited to a
Participant's Individual Account, by any such application shall be determined by
dividing the net contribution for that Account applicable to that Participant by
the dollar value of one accumulation unit in that Account. The number of
accumulation units so determined will not be affected by any subsequent changes
in the dollar value of accumulation units.
SECTION 3.03 - Participant's Individual Account
A Participant's Individual Account under this Contract shall, at any time,
consist of a number of accumulation units equal to the number provided by the
application of the net contributions described in Section 3.02 in accordance
with the Plan, plus any additional units credited in accordance with Section
3.08. Benefits will be purchased or provided only in such amounts and under such
conditions as called for by the Plan. No Participant shall have any specific
rights to such Individual Account. The amount payable to, or applied to provide
benefits for, a Participant or beneficiary, shall be limited to the value of the
Participant's Individual Account.
When a Participant or beneficiary becomes entitled to a benefit in accordance
with the Plan the Contract Owner will notify Aetna as to the manner of payment
of any benefit and the disposition to be made of such Individual Account.
13
SECTION 3.04 - Active Life Fund
The Active Life Fund under this Contract shall, at any time consist of the sum
of all Participant's Individual Accounts. At least once in each Contract Year
after the first, Aetna shall inform the Contract Owner of the then dollar value
of an accumulation unit, and the number of such units in each Individual
Account.
VALUATION
SECTION 3.05 - Net Investment Rate and Net Investment Factor
(a) The net investment rate for the General Account is a guaranteed rate as
below, compounded annually:
Contract Years 10 Thereafter
Guaranteed Rate 4% 3 1/2%
In addition, by action of its Board of Directors, Aetna may increase the net
investment rate at such time and for such period as the Directors may determine.
(b) The net investment rate for any Valuation Period for the Separate Account
is equal to the gross investment rate for that Account for the Valuation
Period less a margin deduction for each day of the Valuation Period as set
forth in Item 3 of the Specifications. Such gross investment rate is equal
to (i) the investment income and capital gains and losses, both realized
and unrealized, on the assets of the Separate Account, divided by (ii) the
amount of such assets at the beginning of the Valuation Period. Such gross
investment rate may be either positive or negative.
(c) The net investment factor for each Account is the sum of 1.0000000 and the
net investment rate for the Account.
SECTION 3.06 - Accumulation Unit Value
The value of an accumulation unit on May 3, 1996 was fixed at $10.00. The value
of an accumulation unit in each Account on the last day of any Valuation Period
thereafter is determined by multiplying such value on the last day of the
immediately preceding Valuation Period by the net investment factor for that
Account for the current Valuation Period.
SECTION 3.07 - Annuity Unit Value
The value of a General Account annuity unit is fixed at $10.00. The value of a
Separate Account annuity unit for the Valuation Period ending May 17, 1966 was
fixed at $10.00. For any period thereafter the value of a Separate Account
annuity unit is determined by
14
multiplying the value of the Separate Account annuity unit for the preceding
Valuation Period by the product of (a) 1.0000000 decreased by the product of
the investment rate factor set forth in Item 4 of the Specifications and the
number of days in the Valuation Period and (b) the net investment factor of the
Separate Account for the tenth Valuation Period preceding the period for which
the value is being calculated.
SECTION 3.08 - Experience Rating
Aetna may apply an experience credit to this Contract at the end of any Contract
Year. Any such credit shall be applied in such manner as may be specified by the
Contract Owner and agreed to be Aetna.
DISCONTINUANCE OF CONTRIBUTIONS
SECTION 3.09 - Suspension
This Contract shall be suspended automatically on any anniversary of the
Effective Date if:
(a) The Contract Owner gives prior written notice to Aetna to transfer the
Active Life Fund in accordance with Section 3.11.
(b) If the Contract Owner fails to assent to any modification of this
Contract initiated by Aetna as provided in Section 4.01, which
modification would have been effective on such anniversary.
(c) Aetna has given written notice 90 days in advance of such anniversary
to the Contract Owner of suspension because the total number of active
Participants at any time is less than 25.
The Contract may also be suspended, or terminated as to new Participants, upon
written notice by the Contract Owner given Aetna at its Home Office 90 days in
advance of the effective date of such suspension.
Effective with such suspension, no new Participants may enter the Plan but
further contributions will be accepted by Aetna under the Contract as they are
applicable to Participants in the Plan prior to such suspension, subject to (c)
above. However, if the Contract Owner elects to transfer the Active Life Fund in
accordance with Section 3.11, no further contributions of any kind shall be
accepted by Aetna.
SECTION 3.10 - Change to a Paid-Up Contract
If the Contract Owner gives written notice to Aetna in advance of any
anniversary of the Effective Date to change to a paid-up Contract, subsequent to
such anniversary, no further contributions will be accepted by Aetna and no new
Participants will become eligible to receive benefits under this Contract. On
the date on which this Contract becomes paid-up,
15
if Aetna has received written notification by the Contract Owner that the Plan
is being continued, all benefits earned under the terms of the Plan on that
date will be treated by Aetna in accordance with the provisions of the Plan.
If such written notification has not been received by Aetna on the date on
which this Contract becomes paid-up, or if on or after such date the Plan is
terminated, each Participant in the Plan will received a 100% vested interest
in all benefits earned under the terms of the Plan to the extent of the
adequacy of the Active Life Fund.
SECTION 3.11 - Transfer of Active Life Fund
If before this Contract is suspended under Section 3.09, the Contract Owner
files a written certification with Aetna stating
(a) in the case of a Plan qualified under Section 401 of the
Internal Revenue Code that
(i) all benefits under the Plan other than those being
provided in connection with previously effected
Retirement Annuities are to be provided through
another funding agency, and that
(ii) the Plan will, in the opinion of the Contract Owner,
continue to retain its qualified status under
Section 401 of the Internal Revenue Code
or
(b) in the case of a non-qualified Plan of deferred compensation
that
(i) the Contract Owner desires to liquidate this
Contract and receive the value thereof
then Aetna, being entitled to rely conclusively upon such certification will pay
to the specified funding agency (in the event (a) above is applicable) or to the
Contract Owner (in the event (b) above is applicable) the value of the number of
accumulation units in the Active Life Fund as of the date of such transfer,
provided, however that such value will be reduced by the excess of any sales and
administrative costs applicable to the Contract over amounts previously deducted
as provided in Section 3.02, such reduction not to exceed a percentage of the
value of the Active Life Fund as determined by entering the following table with
the number of Contract Years for which contributions were received:
Number of Contract Years 1 2 3 4 5 6 or more
Percentage 5% 4% 3% 2% 1% 0%
16
The date of the transfer will be the date specified by the Contract Owner,
provided that Aetna reserves the right to change the date of transfer to a date
not later than 30 days after Aetna's receipt of the Contract Owner's request. If
the value of the accumulative units to be transferred exceeds $1,000,000, Aetna
reserves the right to transfer the excess over $1,000,000 in monthly
installments over a period not to exceed 12 months; each such installment shall
be the value of a number of General Account and Separate Account accumulation
units determined by dividing (i) the total number of such units subject to
periodic transfer by (ii) the number of installments. The dollar amount
transferred each month will be determined in accordance with the terms of the
Contract.
Article IV
GENERAL PROVISIONS
SECTION 4.01 - Change of Contract by Aetna
On the first anniversary of the Effective Date and the first day of any Contract
Year thereafter, Aetna, upon written notice given 90 days in advance to the
Contract Owner, may from time to time, change any of the terms of this Contract,
provided that (a) any such change will not affect in any way the amount or terms
of any Retirement Annuity effected prior to the effective date of such change
and (b) any such change shall not affect Sections 2.05 Annuity Tables, 3.02
Application of Contributions, 3.05 Net Investment Rate and Net Investment
Factor, 3.06 Accumulation Unit Value, 3.07 Annuity Unit Value, and 3.08
Experience Rating as they apply to accumulation units provided by contributions
made on behalf of Participants who were in the Plan prior to the effective date
of such change to the extent that such contributions in any year are not in
excess of twice the first annual contribution made on behalf of such
Participant.
SECTION 4.02 - Change of Contract by Mutual Agreement - Retroactive Changes
A. By agreement in writing, the Contract Owner and Aetna may change, from
time to time, any or all of the terms of this Contract provided that
any such change will not in any way affect the amount or terms of any
Retirement Annuity already effected prior to the effective date of such
change.
B. Notwithstanding any of the terms of this Contract, the Contract Owner
and Aetna, by an agreement in writing on any date agreed upon by the
Contract Owner and Aetna may change, from time to time, any terms of
this Contract if it is deemed necessary or appropriate to do so in
order to enable the Plan or Contract to comply with the requirements of
Section 401 of the Internal Revenue Code which change may be made
retroactive to the Effective Date or any date thereafter.
C. Consent of any Participant or beneficiary shall not be requisite to
any change in this Contract.
17
SECTION 4.03 - Contract
This Contract and the application of the Contract Owner, a copy of which is
attached hereto and made a part hereof, will constitute the entire Contract. All
statements made by the Contract Owner will be deemed representations and not
warranties, and no statement will void any payment under this Contract or be
used in defense of a claim unless it is contained in the application of the
Contract Owner. Only the President, a Vice President, the Secretary or an
Assistant Secretary has the power on behalf of Aetna to make or modify this
Contract.
SECTION 4.04 - Individual Certificates
Aetna shall issue a certificate to the Contract Owner for delivery to each
Participant. Each such certificate shall set forth in substance the benefits to
which such Participant is entitled under this Contract. Certificates described
in this section shall not constitute a part of this Contract.
SECTION 4.05 - Conversion to Individual Contract
Upon termination of participation in the Plan, the Participant who is entitled
to a benefit in accordance with the terms of the Plan may elect, if the Plan so
permits or the Contract Owner so requests, to convert to an individual annuity
contract. The individual annuity contract will be of the form then currently
issued for this class of Annuitant, at a duration equivalent to the lesser of
the number of full years (a) such Participant has been in the Plan or (b) this
Contract has been in force. If the method set forth in the individual annuity
contract for determining the value of an accumulation unit is the same method as
set forth in Valuation Provisions of Article III, a number of accumulation units
designated by the Contract Owner may be transferred from the Contract to the
individual annuity contract. Any accumulation units not so transferred will
remain in force under this Contract.
SECTION 4.06 - Death Benefit
Upon receipt of proof satisfactory to the Company of the death of a Participant
before the Annuity Commencement Date, the Company will determine, as of the date
of receipt of such proof, the greater of (a) the accumulated value of the
Participant's individual Account, or (b) the sum of all contributions made on
behalf of the Participant. Payment of the greater of (a) or (b) will be made to
the Beneficiary of the Participant within seven days of the date of
determination. The death benefit may be taken in one lump sum or under any of
the settlement options available in Aetna's individual annuities then being
issued.
SECTION 4.07 - Designation of Beneficiary
Each Participant shall have the sole right to designate the beneficiary to which
any death benefit hereunder will be payable and, from time to time, without the
consent of such
18
beneficiary, change the beneficiary designated by filing written notice of such
change with Aetna on a written form satisfactory to Aetna. After such notice
is so filed the change will relate back to and take effect as of the date the
Participant signed such written notice, whether or not the Participant is
living on the date such notice is received by Aetna, but without prejudice to
Aetna on account of any payment made by it before such notice. If at the death
of a Participant there is more than one beneficiary designated and in such
designation the Participant has failed to specify their respective interests,
the beneficiaries will share equally. If any designated beneficiary predeceases
the Participant, the rights and interests of such beneficiary will thereupon
terminate.
In the event the designated beneficiary predeceases the Participant or if no
beneficiary has been named, the amount of any death benefit will be paid to the
executors or administrators of the Participant's estate except that Aetna may in
such case, at its option, pay such amount to the wife or the husband, if living;
if not living, in equal shares to the then living children of the Participant;
if none, to either parent of the Participant, or to both equally, if both are
living; if neither parent is living, equal shares to the then living brothers
and sisters of such Participant.
SECTION 4.08 - Facility of Payment
If any payee under this Contract is, in the opinion of Aetna, physically or
mentally incapable of giving valid receipt and discharge for any payment due
under this Contract, then Aetna may, at its option, make payment thereof in
installments of not more than $50 per month to the person or persons who, in its
opinion, are caring for and supporting such payee until claim is made by a duly
appointed guardian or other legal representative of such payee. Payment to such
person or persons will constitute a complete discharge of the liability of Aetna
to the extent of such payments and it will assume no responsibility for the
proper application of the money paid.
SECTION 4.09 - Evidence of Survival
Aetna will have the right to require of any person entitled to a payment under
this Contract, satisfactory evidence that such person is living on the date on
which such payment is due.
SECTION 4.10 - Misstatements and Adjustments
If the age, sex, or any relevant fact relating to any person is found to be
misstated, the amounts of the payments under a Retirement Annuity shall be those
which are provided by the value of the accumulation units allocated to effect
such Retirement Annuity on the basis of the correct information, without
changing the date such Retirement Annuity was effected unless another adjustment
satisfactory to the Contract Owner and Aetna is made. Any adjustment made in
accordance with this Section shall be conclusive upon any person affected
thereby. The dollar amount of any underpayment made by Aetna shall be added to
the next payment due, and the dollar amount of any overpayment made by Aetna
shall
19
be deducted from the next payment or payments due until recovered by Aetna.
If there are no further payments due, or if the total of such payments is
less than the overpayments, any remainder of such overpayments shall be charged
against the value of any forfeitures becoming available thereafter.
SECTION 4.11 - Assignments
Except insofar as may be contrary to any applicable laws, all payments under
this Contract of benefits arising under the Plan are not assignable or subject
to any claims of any creditor.
No assignment of this Contract will be binding on Aetna unless and until such
assignment is accepted by Aetna at its Home Office.
SECTION 4.12 - Basis of Reserves
The reserve held under this Contract as of any date will be at least equal to
100% of the dollar value as of such date of the accumulation units held in the
Active Life Fund, plus the reserve for such Retirement Annuities as have been
effected under this Contract. The dollar amount of the reserve held for the
Active Life Fund shall be the dollar value, as of such date, of the accumulation
units then constituting the Active Life Fund plus the reserve required for any
guaranteed minimum death benefit.
Reserves for annuities involving life contingencies shall be computed on the
basis of the Progressive Annuity Table, assuming births in the year 1900 and
interest per annum at the rate set forth in Item 5 of the Specifications, using
the sex and adjusted age of the payee as determined under Section 2.05.
SECTION 4.13 - Termination of Contract
This Contract will terminated at the close of the first day upon which the
performance and fulfillment by Aetna of all its duties and obligations arising
hereunder have been completed.
SECTION 4.14 - Data to be furnished to Aetna
The Contract Owner shall furnish all information which Aetna may reasonably
require for the administration of this Contract. If the Contract Owner cannot
furnish any required item of information. Aetna may request the person concerned
to furnish such information. Aetna shall not be liable for the fulfillment of
any obligations in any way dependent on such information until it receives such
information in form satisfactory to it.
Information furnished to Aetna may be corrected for demonstrated errors therein
unless Aetna has already acted to its prejudice by relying on such information.
Any records
20
prepared by Aetna from information furnished to Aetna as described above shall
constitute prima facie evidence as to the truth of the information recorded
thereon.
SECTION 4.15 - Relation of this Contract to the Separate Account
Aetna shall have exclusive and absolute ownership and control of the assets of
both its General Account and its Separate Account. Neither the Contract Owner
nor any Participant shall have any individual or equitable ownership of any
investments or other assets of either of said Accounts and the records and
accounts kept by Aetna in connection with this Contract shall not be deemed to
constitute any recognition of any ownership by the Contract Owner or any
Participant of any portion of any said Accounts. All funds attributable to this
Contract and becoming part of either Account shall be invested or reinvested by
Aetna in such class or classes of investments, and in such extent as Aetna at
its sole discretion may determine. The method of determination by Aetna of the
value of an accumulation unit will be conclusive upon the Contract Owner and any
Participant.
21
Aetna Life Insurance and Annuity Company
ENDORSEMENT
The Contract is hereby endorsed as follows:
The following Section under GENERAL PROVISIONS is amended as follows:
The following paragraph is added to the end of Control of Contract and
Individual Accounts or Data to be furnished Aetna, as applicable:
Any payment(s) made under this Contract to other than the Contract Owner must be
in compliance with the provisions of the Retirement Equity Act of 1984 (REA). At
the time payment is requested or an Annuity Option is elected by the Contract
Owner, Aetna will require the Contract Owner to certify the payment option is
elected in compliance with REA. In the absence of such certification, payment
will be made to the Contract Owner. For Designation of Beneficiary the current
provision is deleted and replaced with the following: The beneficiary shall be
the Contract Owner.
The following condition is added to the RETIREMENT ANNUITY PROVISIONS or the
ANNUITY PROVISIONS of the Contract as follows:
The Contract Owner may tell Aetna, on behalf of a Participant, to pay all or any
portion of the Participant's value in the Contract (minus any premium tax) as a
premium for an Annuity Option.
Required Distribution to Participant: Distribution to the Participant must begin
in the form of periodic payments no later than the April 1 following the
calendar year in which the Participant attains age 70 1/2, or such later age as
may be allowed under federal law or regulations. In lieu of an Annuity election,
the Contract Owner may direct Aetna to make a lump sum payment. In no event may
any Annuity Option extend beyond:
a) The life of the Annuitant;
b) The lives of the Annuitant and the Annuitant's beneficiary under the Plan;
c) Any certain period greater than the Annuitant's life expectancy as
determined according to regulations under Code Section 401(a)(9); or
d) Any certain period greater than the life expectancy of the Annuitant and
the Annuitant's beneficiary under the Plan, as determined according to
regulations under Code Section 401(a)(9).
In no event may payments to the Participant's beneficiary under the Plan under
an Annuity Option extend beyond:
1
a) The life of the Participant's beneficiary determined as of the date
payments are to commence; or
b) Any certain period greater than the Participant's beneficiary's life
expectancy as determined by regulations under Code Section 401(a)(9).
RETIREMENT ANNUITY PROVISIONS or ANNUITY PROVISIONS: Add to the Joint and Last
Survivor Annuity or Life Income for Two Payees Option a new subsection as
follows:
100% of the payment to continue to the survivor if the survivor is the
Annuitant and 50% of the payment to continue to the survivor if the
survivor is the second Annuitant.
2
LIFE INCOME FOR TWO PAYEES
JOINT AND 1/2 CONTINGENT LIFE INCOME ANNUITY
NO MINIMUM PERIOD
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Age of Second Annuitant
Age of
Annuitant 45 50 55 60 65 70 75 80 85
--------- -- -- -- -- -- -- -- -- --
45 $3.86 $3.89 $3.93 $3.94 $3.96 $3.97 $3.98 $3.98 $3.98
50 4.02 4.10 4.15 4.18 4.21 4.23 4.24 4.25 4.26
55 4.22 4.31 4.42 4.48 4.53 5.57 4.59 4.61 4.61
60 4.43 4.56 4.70 4.84 4.93 4.99 5.04 5.07 5.09
65 4.69 4.84 5.02 5.22 5.42 5.54 5.63 5.69 5.73
70 4.99 5.17 5.39 5.65 5.93 6.23 6.40 6.52 6.60
75 5.33 5.54 5.82 6.14 6.52 6.95 7.40 7.64 7.81
80 5.70 5.96 6.29 6.69 7.17 7.75 8.41 9.08 9.45
85 6.07 6.38 6.75 7.24 7.84 8.59 9.49 10.51 11.50
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Age of Second Annuitant
Age of
Annuitant 45 50 55 60 65 70 75 80 85
--------- -- -- -- -- -- -- -- -- --
45 $4.80 $4.83 $4.86 $4.88 $4.89 $4.90 $4.91 $4.92 $4.92
50 4.95 5.02 5.06 5.10 5.13 5.15 5.16 5.17 5.18
55 5.14 5.23 5.32 5.38 5.43 5.46 5.49 5.51 5.52
60 5.36 5.47 5.59 5.72 5.80 5.86 5.91 5.95 5.97
65 5.63 5.77 5.93 6.10 6.29 6.41 6.50 6.56 6.60
70 5.96 6.12 6.31 6.54 6.81 7.08 7.25 7.37 7.46
75 6.35 6.54 6.77 7.06 7.42 7.81 8.25 8.49 8.66
80 6.79 7.01 7.30 7.66 8.11 8.65 9.28 9.93 10.29
85 7.26 7.53 7.86 8.29 8.85 9.55 10.41 11.39 12.37
3
These Annuity rates are based on mortality from 1983 Table a.
Endorsed and made a part of the Contract on the effective date of the Contract.
/s/ Xxx Xxxxxxx
President
Aetna Life Insurance and Annuity Company
4
AETNA VARIABLE ANNUITY LIFE INSURANCE COMPANY
ENDORSEMENT
-----------
In lieu of the language now appearing in the attached contract, Section 3.01 is
hereby endorsed to read as follows:
"Aetna shall receive such contributions from the Contract Owner as are made
pursuant to the Plan. The total contribution will be subject to a percentage
deduction in an amount necessary to cover state premium taxes, if any, payable
by Aetna on such contribution. The total contribution will also be allocated to
each Participant and subject to a further deduction of 1% of the allocated share
for each Participant having a Guaranteed Death Benefit Rider. The amount
resulting from these deductions will be the Basic Contribution. The Net
Contribution shall be equal to the Basic Contribution minus 6% of such Basic
Contribution.
"Such Net Contribution will be applied to provide accumulation units for
Participants in accord with Section 3.02 below and the instructions of the
Contract Owner."
In lieu of the language now appearing in the attached contract, Section 3.02 is
hereby endorsed to read as follows:
"The Net Contribution for each Participant shall be applied as of the last day
of the Valuation Period in which the Contribution is received by Aetna to
provide accumulation units on the basis of the then current value of such units,
such application being made separately for Net Contributions allocated to (i)
the General Account, (ii) the Separate Account and invested in Fund shares, and
(iii) the Separate Account and invested in Encore Fund Shares, in accord with
instructions of the Contract Owner.
"The number of accumulation units provided in each funding medium, and credited
to a Participant's Individual Account, by any such application shall be
determined by dividing the Net Contribution for the applicable funding medium
for each Participant by the dollar value of one accumulation unit in that
funding medium. The number of accumulation units so determined will not be
affected by any subsequent changes in the dollar value of accumulation units."
In lieu of the language now appearing in the attached contract, Section 3.05(b)
is hereby endorsed to read as follows:
"The Net Investment Rate for any Valuation Period of the Separate Account is
equal to the gross investment rate of the Fund(s) underlying that Account for
the Period less a margin deduction for each day of the Valuation Period (at an
effective annual rate of 1.25%) plus or minus an adjustment for any taxes or a
reserve for any such taxes attributable to the operations of the Separate
Account. Such gross investment rate is
1
equal to (i) the investment income and capital gains and losses, both realized
and unrealized of the Fund(s), minus an investment advisory fee accrued by the
Fund(s) for each day of the Valuation Period, divided by (ii) the amount of net
assets of the Fund(s) at the beginning of the Valuation Period. Such gross
investment rate may be either positive or negative. The margin deduction from
the gross investment rate and the percentage deduction for the investment
advisory fee may not exceed in the aggregate an effective annual rate of 1.5%."
In lieu of the language now appearing in the attached contract, Section 3.11 is
hereby endorsed to read as follows:
"The Contract Owner may file a written request with Aetna electing to liquidate
this Contract and receive its accumulated value, minus 2% of such accumulated
value if such election is received during the first five contract years. Such
accumulated value will be the value of the accumulation units in the Active Life
Fund determined in accord with the Contract provisions as of the end of the
Valuation Period in which the written request is received by Aetna."
In lieu of the language now appearing in the attached contract, Section 4.06 is
hereby endorsed to read as follows:
"Upon receipt of proof of the death of a Participant prior to the Annuity
Commencement Date, Aetna agrees to pay to the Beneficiary the accumulated value
of the Participant's Individual Account determined as of the Valuation Period in
which such proof is received, unless a larger amount shall be due under the
provisions of a Guaranteed Death Benefit Rider.
"The Contract Owner may designate on individual statements of Participant being
submitted whether a Guaranteed Death Benefit Rider is desired for any individual
Participant. If so designated, any death benefit payable with respect to such
Participant will be in accord with the provisions of this Contract and such
rider. Any death benefit payable may be taken in a lump sum or under any
settlement options available in individual annuities then being issued by
Aetna."
Endorsed and made a part of this contract on the Contract Effective Date.
/s/ X. X. Xxxxxx
President
2
AETNA VARIABLE ANNUITY LIFE INSURANCE COMPANY
ENDORSEMENT
The VALUATION PROVISIONS of this contract are hereby endorsed to add the
following provisions:
NET STIPU- After a three calendar month period subsequent to the Date of
LATED Issue or to a prior change in allocation, the Owner may elect
PAYMENT during the accumulation period to change the allocation
ALLOCATIONS percentages for future Annuity Stipulated Payments to any
allocation then allowed by Aetna. Any such allocation change will
be allowed only if any allocated portion of the mode Annuity
Stipulated Payment meets the then minimum amount required by
Aetna. A request for such change must be made in writing in a form
satisfactory to Aetna and will not take effect until received at
the Executive Office of Aetna.
TRANSFER The Owner may elect during the accumulation period that
OF ACCUM- accumulation unitscredited to this contract in the Separate
ULATION Account may be transferred to the General Account. Such transfer
UNITS may be elected after a three calendar month period subsequent to
the Date of Issue or to a prior transfer. The value of
accumulation units requested to be transferred must be $500, or
greater. If the requested amount to be transferred would result in
a remaining value of accumulation units of less than $500. Aetna
shall have the right to transfer the total number of accumulation
units. Accumulation units in the General Account may not be
transferred to the Separate Account.
Any request for transfer must be in a form satisfactory to Aetna
and will be effective on the last day of the Valuation Period in
which the acceptable written request is received at the Executive
Office of Aetna. All such transfers will be made without deduction
of premium taxes and without application of the deduction from the
Basic Stipulated Payment stated in the Valuation Provisions of
this contract.
The contract is hereby endorsed to allow the Owner prior to the commencement of
Annuity payments, if the contract contains seven (7) annuity options rather than
four (4) optional annuity forms, to elect that annuity proceeds be applied under
any one of the first six (6) annuity options rather than any one of the first
four (4) annuity options.
The contract is hereby endorsed to void and remove from the contract any
provision, if such a provision is presently applicable, relating to Aetna
applying an experience credit to the contract.
1
The contract is hereby endorsed to allow the Owner prior to the commencement of
annuity payments to select that the first monthly payment of a variable annuity
be determined on the basis of 5% assumed investment rate rather than 3 1/2%
assumed investment rate. All relevant provisions and subsequent actions under
the contract shall operate on the basis of such selection of 5% assumed
investment rate on a variable annuity in the same manner as would apply to 3
1/2% assumed investment rate.
Endorsed and made a part of this contract on the later of April 28, 1975 or the
Date of Issue of this contract.
/s/ Xxxxxxx X. Xxxxxx
President
2
AETNA VARIABLE ANNUITY LIFE INSURANCE COMPANY
ENDORSEMENT
This contract is hereby endorsed to revise or add, as appropriate, the second
sentence to the Separate Account provision of the definitions provisions as
follows:
"Reserves for any variable benefits shall be maintained in the Separate Account
and invested in shares of the Fund and Encore Fund."
This contract is hereby endorsed to add the following provisions, if such
provisions are not presently in this contract, to the definitions provisions of
this contract:
"Fund: Aetna Variable Fund, Inc., an open-end diversified investment
company registered under the Investment Company Act of 1940."
"Encore Fund: Aetna Variable Encore Fund, Inc., an open-end diversified
investment company registered under the Investment Company Act
of 1940."
This contract is hereby endorsed so that the Allocation of Annuity Stipulated
Payments section, if there be such a section in this contract, of the
Specifications page shall be changed to read as follows:
"Allocation percentages of the General Account and Separate Account-Fund Shares
and Separate Account-Encore Fund Shares shall be as shown on the application or
as subsequently changed, and such change shall be effective when it is received
by the Company."
This contract, if this be a deferred annuity contract, is hereby endorsed to
revise or add, as appropriate, the Transfer of Accumulation Units provision of,
or to, the Valuation Provisions of this contract, or as previously endorsed, to
read as follows:
"The Owner may elect during the accumulation period to transfer accumulation
units credited to this contract in the Separate Account. Any units held in the
Separate Account invested in Fund shares may be transferred to be invested in
Encore Fund shares in the Separate Account or may be transferred to the General
Account. Any units held in the Separate Account invested in Encore Fund shares
may be transferred to be invested in Fund shares in the Separate Account or may
be transferred to the General Account. At the commencement of annuity payments,
any accumulation units held in the Separate Account invested in Encore Fund
shares will be transferred to Fund shares held in the Separate Account, unless
requested to be transferred to the General Account. Accumulations units credited
to the contract in the General Account may be transferred from the General
Account only in accord with the Allocation of Annuity provision of the
Settlement Provisions. Any transfer may be elected after a three (3) calendar
month period subsequent to the Date of Issue or to a prior transfer. The value
of accumulation
1
units to be transferred must be $500, or greater. If the transferred amount
would result in the balance remaining of less than $500, Aetna shall have the
right to transfer such remaining balance. All such transfers will be made
without any expense or premium tax deductions being made at the time of
transfer. All such transfers will be effective on the last day of the Valuation
Period in which written request for transfer is received at the Executive
Office of Aetna."
This contract is hereby endorsed to revise the second and third paragraphs of
the Loan Values provision, if there be such a provision in this contract, of the
Stipulated Payments and Non-Forfeiture Provisions of this contract to read as
follows:
"In the event the Owner obtains a loan pursuant to this provision, unless
requested otherwise, such loan will be allocated to contract loan accounts
maintained with respect to the General Account, the Fund and the Encore Fund in
the same relation that the net termination value for each such funding medium
has to the sum of the Net Termination Value at the end of the Valuation Period
in which the loan is made and the amount of such loan. There will be allocated
to each contract loan account such number of accumulation units as are equal to
the value of that portion of the loan allocated to such account (or the due date
of such unpaid loan interest).
If at any time the indebtedness, including unpaid interest thereon, with respect
to any funding medium exceeds the net termination value for such medium, the
excess will be considered a loan with respect to the other funding media in the
same relation that the net termination value for each such funding medium has to
the sum of their net termination values."
Endorsed and made a part of this contract on the later of September 1, 1975 or
the Date of Issue of this Contract.
/s/ Xxxxxx X. Xxxxxxx
President
2
AETNA VARIABLE ANNUITY LIFE INSURANCE COMPANY
ENDORSEMENT
This contract is hereby endorsed as follows:
All references on the face page of the contract to "Home Office - Little Rock,
Arkansas" is hereby void.
All references on the face page of the contract to "Executive Office - Hartford,
Connecticut" is hereby changed to read "Home Office - Hartford, Connecticut".
All references in the contract to actions taken, or items to be received, at the
Executive Office shall hereby be changed to read at the Home Office. If there be
any reference in the contract definition of Separate Account to "the laws of
Arkansas", it shall be changed to read as "the laws of Connecticut".
Endorsed and made a part of this contract on the later of January 1, 1977 or the
Date of Issue of this contract.
/s/ X. X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This contract is hereby endorsed to add the Section ANNUITY PAYMENT GUARANTEE to
the SETTLEMENT PROVISIONS to read as follows:
"ANNUITY The Annuity Payment Guarantee may be elected at the time election
PAYMENT of the first, second, or fourth option is made. Such election may
GUARANTEE only be made if election is made for a variable annuity based on
an assumed annual net investment rate of 3.5%. If said Annuity
Payment Guarantee is elected, the first monthly payment for the
variable annuity will be calculated in accord with the contract
provisions but the payee will only receive a first payment of 87%
of the calculated first monthly payment. Aetna further guarantees
that any future payment due after the first monthly payment will
be the greater of (a) or (b) where (a) is 87% of the first monthly
payment calculated in accord with the contract provisions, and (b)
is the payment due after the first calculated in accord with
contract provisions but calculated on the basis of the first
payment being only 87% of the first monthly payment."
Endorsed and made a part of this contract on the later of January
1, 1980 or the Date of Issue of this contract.
/s/ Xxxxxxx X. Xxxxxx
President
AETNA VARIABLE ANNUITY LIFE INSURANCE COMPANY
ENDORSEMENT
Article III, Section 3.02, "Application of Contributions" is xxxxxx
endorsed and revised to read as follows:
"SECTION 3.02 - Application of Contributions
The net contribution shall be equal to the total contribution less 7%
and a percentage of the total contribution sufficient to cover premium
taxes, if any, payable by Aetna because of the receipt of such
contribution.
The net contribution for each Participant shall be applied as of the
last day of the Valuation Period in which the contribution is received
by Aetna to provide accumulation units on the basis of the then current
value of such units, such application being made separately for net
contributions allocated to (i) the General Account, (ii) the Separate
Account and invested in Fund shares, and (iii) the Separate Account and
invested in Encore Fund shares, in accord with instructions of the
Contract Owner.
The number of accumulation units provided in each funding medium, and
credited to a Participant' s Individual Account, by any such
application shall be determined by dividing the net contribution for
the applicable funding medium for each Participant by the dollar value
of one accumulation unit in that funding medium. The number of
accumulation units so determined will not be affected by any subsequent
changes in the dollar value of accumulation units."
Article III, Section 305(b) Is hereby endorsed and revised to read as
follows:
"The Net Investment Rate for any Valuation Period of the Separate
Account is equal to the gross investment rate of the Fund(s) underlying that
Account for the Period less a margin deduction for each day of the Valuation
Period (at an effective annual rate of 1.25%) plus or minus an adjustment for
any taxes or a reserve for any such taxes attributable to the operations of the
Separate Account. Such gross investment rate is equal to (i) the investment
income and capital gains and losses, both realized and unrealized of the
Fund(s), minus an investment advisory fee accrued by the Fund(s) for each day of
the Valuation Period, divided by (ii) the amount of net assets of the Fund(s) at
the be of the Valuation Period. Such gross investment rate may be either
positive or negative. The margin deduction from the gross investment rate and
the percentage
1
deduction for the investment advisory fee may not exceed in the aggregate an
effective annual rate of 1.5%."
Endorsed and made a part of this contract on the later of January 1,
1979 or the Date of Issue of this contract.
/s/ Xxxxxxx X. Xxxxxx
President
2
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is endorsed to provide the following:
On the tenth anniversary of the effective date of this Contract any
termination or surrender fee which may apply shall be 0%.
Endorsed and made a part of this Contract on July 1, 1985.
/s/ Xxxxxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed to include the following new provisions:
During any calendar year, Aetna may be told to change the investment mix
twelve times. Should Aetna allow additional changes, each may be subject
to a fee of up to $10.
Twelve transfers of Current Value (excluding transfers from the GA
Account at the end of a Guaranteed Term) can be made during a calendar
year period. Should Aetna allow additional transfers, each may be subject
to a fee of up to $10.
Endorsed and made a part of this Contract effective May 1, 1989.
/s/ Xxxx X. Xxxxxx
President
Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed as follows:
The definition of Separate Account under the Definition of Certain Terms or
General Definitions section of the contract is hereby amended to read as
follows:
Separate Account: An account which buys and holds shares of the Fund(s).
Income, gains or losses, realized or unrealized are credited or charged
to this account without regard to other income, gains or losses of Aetna.
Aetna owns the assets held in a separate account and is not a trustee as
to such amounts. These accounts generally are not guaranteed and are held
at market value. The assets of such accounts, to the extent of reserves
and other contract liabilities of the account, shall not be charged with
other Aetna liabilities.
Endorsed and made a part of the Contract.
/s/ Xxxxxx X. Xxxxx
President
Aetna Life Insurance and Annuity
Aetna Life Insurance and Annuity Company
ENDORSEMENT
The Contract is hereby endorsed.
The term Valuation Period under Definitions is amended to read as follows:
The period of time for which a Fund determines its net asset value,
usually from 4:15 p.m. Eastern time each day the New York Stock Exchange
is open until 4:15 p.m. the next such day, or such other day that one or
more of the Funds determines its net asset value.
Endorsed and made a part of the Contract.
/s/ X. X. Xxxxxxx
President
Aetna Life Insurance and Annuity Company
