[GRAPHIC]
AETNA LIFE INSURANCE AND ANNUITY COMPANY
000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
000-000-0000
If you have questions about the Contract, call the toll-free number shown above.
GROUP COMBINATION DEFERRED ANNUITY CONTRACT (NONPARTICIPATING)
Aetna Life Insurance and Annuity Company (ALIAC), a stock company, will pay
benefits according to the terms and conditions set forth in this Contract. This
Contract is delivered in New York and is subject to the laws of that
jurisdiction.
Please read this Contract carefully. It states ALIAC's contractual rights and
obligations as well as the rights and obligations of the Contract Holder and
Participants.
SPECIFICATIONS
Plan
SPECIMEN
Type of Plan
SPECIMEN
Contract Holder
SPECIMEN
Group Annuity Contract Number
SPECIMEN
Contract Effective Date
SPECIMEN
RIGHT TO CANCEL
The Contract Holder may cancel this Contract within 10 calendar days of
receiving it by returning it to ALIAC at the address shown above, or to the
agent from whom it was purchased. Within seven calendar days of receiving the
cancellation request at its Home Office, ALIAC will return any Contributions
received, plus any increase, or minus any decrease in value, on the amount, if
any, allocated to the Separate Account. Contributions to the Guaranteed
Accumulation Account will be returned, subject to a Market Value Adjustment,
which may be positive or negative.
Signed at the Home Office on the Effective Date.
/s/ Xxxxxx X. XxXxxxxxx /s/ Xxxxx Xxxxxxx Xxxxxxx
President Secretary
THE VARIABLE FEATURES OF THIS CONTRACT ARE DESCRIBED IN SECTIONS 3 AND 11.
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON THE
INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT. AMOUNTS ALLOCATED TO THE GUARANTEED
ACCUMULATION ACCOUNT, IF WITHDRAWN BEFORE A GUARANTEED TERM MATURITY DATE, MAY
BE SUBJECT TO A MARKET VALUE ADJUSTMENT. THE MARKET VALUE ADJUSTMENT MAY RESULT
IN AN INCREASE, OR A DECREASE, IN THE INDIVIDUAL ACCOUNT VALUE. AMOUNTS
ALLOCATED TO THE FIXED PLUS ACCOUNT ARE NOT AVAILABLE AS A LUMP SUM WITHDRAWAL,
OTHER THAN DUE TO DEATH, SEPARATION FROM SERVICE, OR RETIREMENT, OR AS OTHERWISE
ALLOWED BY THE CONTRACT.
VARIABLE ANNUITY ASSUMED ANNUAL NET RETURN RATE - ANNUITY PHASE
If a Variable Annuity is chosen, an assumed annual net return rate of 5.0% may
be elected. If 5.0% is not elected, we will use an assumed annual net return
rate of 3.5%.
The daily net return rate factor for an assumed annual net return rate of 3.5%
per year is 0.9999058. The daily net return rate factor for an assumed annual
net return rate 5.0% per year is 0.9998663.
If the portion of a Variable Annuity payment for any Fund is not to decrease,
the Annuity return factor under the Separate Account for that Fund must be:
a) 4.75% on an annual basis plus an annual return in the amount of the
administration fee set at the time Annuity payments commence if an assumed
annual net return rate of 3.5% is chosen; or
b) 6.25% on an annual basis plus an annual return in the amount of the
administration fee set at the time Annuity payments commence, if an assumed
annual net return rate of 5% is chosen.
TABLE OF CONTENTS
PAGE
CONTRACT SCHEDULE I. ACCUMULATION PHASE SI-1
CONTRACT SCHEDULE II. ANNUITY PHASE SII-1
DEFINITIONS 1
SECTION 1. GENERAL CONTRACT PROVISIONS 3
1.01 Entire Contract 3
1.02 Nonparticipating Contract 3
1.03 Control of Contract 3
1.04 Certificate 3
1.05 Incontestability 3
1.06 Grace Period 3
1.07 Change of Contract 3
1.08 Payments 4
1.09 Deferral of Payment 4
1.10 Proof of Age 4
1.11 Evidence of Survival 4
1.12 Misstatements and Adjustments 5
1.13 Reports 5
1.14 State Laws 5
1.15 Claims of Creditors 5
1.16 Maintenance Fee 5
1.17 Charges for Additional Services 5
1.18 Charges Subject to Change 5
PART I. ACCUMULATION PHASE 6
SECTION 2. CONTRIBUTIONS AND INDIVIDUAL ACCOUNT VALUE 6
2.01 Contributions 6
2.02 Premium Tax 6
2.03 Individual Account 6
2.04 Experience Credit 6
2.05 Individual Account Value 6
SECTION 3. SEPARATE ACCOUNT 7
3.01 General 7
3.02 Funds Available 7
3.03 Change or Substitution of Funds 7
3.04 Accumulation Units 7
3.05 Accumulation Unit Value 7
3.06 Net Investment Factor 7
3.07 Charges to the Separate Account 8
3.08 Fund Transfers 8
3.09 Withdrawals from the Separate Account 8
i
PAGE
SECTION 4. AETNA GET FUND 8
4.01 GET Fund Guarantee Period 8
4.02 GET Fund Offering Period 8
4.03 GET Fund Guarantee 9
4.04 GET Fund Maturity Date 9
4.05 Transfers or Withdrawals from the GET Fund 9
SECTION 5. FIXED ACCOUNT 9
5.01 Fixed Account Minimum Guaranteed Interest Rate 9
5.02 Transfers from the Fixed Account 10
5.03 Withdrawals from the Fixed Account 10
SECTION 6. FIXED PLUS ACCOUNT 10
6.01 Fixed Plus Account Minimum Guaranteed Interest Rate 10
6.02 Transfers from the Fixed Plus Account 10
6.03 Partial Withdrawals from the Fixed Plus Account 11
6.04 Full Withdrawal of the Total Amount in the Fixed Plus Account 11
6.05 Waiver of Fixed Plus Account Full Withdrawal Provision 11
SECTION 7. GUARANTEED ACCUMULATION ACCOUNT (GAA) 11
7.01 Nonunitized Separate Account 11
7.02 GAA Minimum Guaranteed Interest Rate 12
7.03 Deposit Period 12
7.04 Guaranteed Term 12
7.05 Guaranteed Term Groups 12
7.06 Maturity Date, Maturity Value and Reinvestment 12
7.07 Transfers and Withdrawals from the GAA 12
7.08 Application of the Market Value Adjustment 13
7.09 Market Value Adjustment (MVA) 13
SECTION 8. TRANSFERS, WITHDRAWALS AND DISTRIBUTIONS 14
8.01 Transfers 14
8.02 Withdrawals 14
8.03 Withdrawal Restrictions Under the Code 14
8.04 Withdrawal Charge 15
8.05 Waiver of Withdrawal Charge 15
8.06 Reinstatement 15
8.07 Required Distributions 15
8.08 Systematic Distribution Options (SDOs) 16
8.09 Individual Account Termination 16
SECTION 9. LOANS 16
9.01 Loan Availability 16
SECTION 10. DEATH BENEFIT DURING THE ACCUMULATION PHASE 16
10.01 Death Benefit 16
10.02 Contract Beneficiary 16
10.03 Distribution of Death Benefit 17
ii
PAGE
PART II. ANNUITY PHASE 17
SECTION 11. GENERAL PROVISIONS 17
11.01 Election 17
11.02 Change of Annuity Provisions 17
11.03 Annuity Options 17
11.04 Mortality Table 18
11.05 Payments 18
11.06 Investment Options 19
11.07 Fixed Annuity Minimum Guaranteed Interest Rate 19
11.08 Variable Annuity Assumed Annual Net Return Rate Election 19
11.09 Variable Annuity Transfers 19
11.10 Fund Annuity Units 19
11.11 Fund Annuity Unit Value 20
11.12 Fund Annuity Net Return Factor 20
11.13 Death Benefit During the Annuity Phase 20
11.14 Charges to the Separate Account 21
ANNUITY TABLES 22
iii
CONTRACT SCHEDULE I
ACCUMULATION PHASE
CONTROL OF CONTRACT (see 1.03)
[The Contract Holder controls this Contract.
By notifying us in writing, the Contract Holder may allow Participants
to choose Investment Options for an Individual Account. The Contract
Holder may, however, retain the right to choose Investment Options for
employer Contributions. Unless otherwise provided by the Plan, we will
make payments only at the written direction of the Contract Holder and
a Participant. Unless otherwise specified by the Plan, we will make an
in-service transfer under Internal Revenue Service Revenue Ruling
90-24 only at the written direction of the Contract Holder and a
Participant and will make checks payable to the acquiring investment
provider(s).
The Contract and Individual Accounts are nontransferable and
nonassignable except to us in the event of a loan (if allowed under
the Contract) or in the event of a qualified domestic relations order
as allowed under the Retirement Equity Act of 1984 (REA).
Participants have a nonforfeitable right to the value of employer
Contributions made to their Individual Accounts subject to any Plan
vesting limits as determined by the Contract Holder. Participants have
a nonforfeitable right to the value of employee Contributions made to
their Individual Accounts as provided by Code Section 403(b) and
subject to the terms of the Plan.
The Contract Holder must notify us in writing if the Plan is, or
becomes, subject to the Employee Retirement Income Security Act of
1974 (ERISA) and/or related law or regulations including REA. We will
rely on the Contract Holder's determination and representation of the
applicability of such laws. If the Plan is subject to ERISA, before we
will make a distribution from an Individual Account, the Contract
Holder must certify in writing that all applicable REA requirements
have been met and that the distribution complies with the Plan.]
MAINTENANCE FEE (see 1.16)
The maintenance fee for each Individual Account is [$XX] as of the
Effective Date of the Contract and is subject to change (see 1.18).
The fee will never exceed [$30].
CONTRIBUTION LIMITS (see 2.01)
[Each year, Contributions to the Contract are limited to the lesser
of:
(a) The maximum exclusion allowance (MEA) limit under Code Section
403(b); or
(b) The amount set forth in Code Section 415, generally, 25% of
compensation up to $30,000.
In addition, salary reduction Contributions as defined in Code Section
402(g) may not exceed $10,000, or such larger amount as adjusted by
the Secretary of the Treasury during any calendar year, unless the
alternative limitation under Code Section 402(g)(8) applies.]
SEPARATE ACCOUNT (see 3.01)
Variable Annuity Account [C]
DAILY CHARGES TO THE SEPARATE ACCOUNT (see 3.07)
Charges to the Separate Account are subject to change (see 1.18). The
charges as of the Effective Date of the Contract are as follows:
Mortality and Expense Risk Charge: [X.XX%] (annual basis)
This charge will never exceed [1.50%] (annual basis).
Administrative Charge: [X.XX%] (annual basis)
This charge will never exceed [0.25%] (annual basis).
Aetna GET Fund Guarantee Charge: If applicable, the charge will be
provided to the Contract Holder and will never exceed 0.75% (annual
basis).
SI-1
FIXED INTEREST OPTIONS AVAILABLE (see Section 5, Section 6, and Section 7)
[Fixed Account
Fixed Account for transferred amounts only (no ongoing Contributions)
Fixed Plus Account
Guaranteed Accumulation Account (GAA)]
FIXED ACCOUNT MINIMUM GUARANTEED INTEREST RATE (see 5.01)
The interest rate will never be less than 3% (annual basis).
FIXED ACCOUNT ANNUAL TRANSFER LIMIT (see 5.02)
[10%]
FIXED PLUS ACCOUNT MINIMUM GUARANTEED INTEREST RATE (see 6.01)
The interest rate will never be less than 3% (annual basis).
FIXED PLUS ACCOUNT ANNUAL TRANSFER AND PARTIAL WITHDRAWAL LIMIT (see 6.02 and
6.03)
[20%]
WAIVER OF FIXED PLUS ACCOUNT TRANSFER LIMIT (see 6.02)
[$2,000]
WAIVER OF FIXED PLUS ACCOUNT FULL WITHDRAWAL PROVISION (see 6.05)
When a full withdrawal is requested, payment from the Fixed Plus
Account is not limited as described in 6.04 when the withdrawal is
made:
[(a) When the amount in the Fixed Plus Account is [$2,000] or less
(or, if applicable, as otherwise allowed by the Plan for a
lump-sum cash-out without Participant consent) and during the
previous [12 months] no amounts have been withdrawn, transferred,
taken as a loan (if allowed under the Contract), or used to
purchase Annuity payments;
(b) Due to a Participant's death before Annuity payments begin and
paid within six months of the Participant's death;
(c) As provided in Section 8.09;
(d) To purchase Annuity payments on a life-contingent basis or
payments for a stated period on a fixed-only basis.
(e) When a Participant is separated from service, and when:
(1) Separation from service is documented in a form acceptable
to us; and
(2) The amount is paid directly to the Participant.
(f) Due to financial hardship as defined in the Code, and when:
(1) If applicable, certified by the employer; and
(2) The amount is paid directly to the Participant.
(g) Due to disability as defined in the Code, and when:
(1) Certified by the employer, or the diSability is otherwise
documented in a form acceptable to us; and
(2) The amount is paid directly to the Participant.
GUARANTEED ACCUMULATION ACCOUNT MINIMUM GUARANTEED INTEREST RATE (see 7.02)
The interest rate will never be less than 3% (annual basis).
SI-2
WITHDRAWAL RESTRICTIONS UNDER THE CODE (see 8.03)
[Limitations apply to partial and full withdrawals of the "restricted
amount" from this Contract as required by Code Section 403(b)(11). The
restricted amount is the sum of:
(1) Contributions attributable to a Participant's salary reduction
Contributions made on and after January 1, 1989; plus
(2) The net increase, if any, in the Individual Account value after
December 31, 1988, attributable to investment gains and losses
and credited interest ("earnings").
The restricted amount may be partially or fully withdrawn only if one
or more of the following conditions are met. The Participant has:
(a) Experienced a separation from service when certified by the
employer;
(b) Attained age 59 1/2;
(c) Died;
(d) Become disabled, as defined by the Code;
(e) Experienced financial hardship as defined by the Code. The amount
available for financial hardship is limited to the lesser of the
amount necessary to satisfy the need or Contributions
attributable to salary reduction Contributions made on or after
January 1, 1989; or
(f) Met other circumstances as otherwise allowed by federal law,
regulations or rulings.
No limitations apply to salary reduction Contributions made to a Code
Section 403(b)(1) annuity contract and earnings credited to such
Contributions made on or before December 31, 1988. The above
limitations also apply to all Contributions attributable to a
Participant's salary reduction Contributions (before or after January
1, 1989) which represent amounts transferred under Internal Revenue
Service Revenue Ruling 90-24 from a Code Section 403(b)(7) custodial
account, except that earnings on such Contributions made on or before
December 31, 1988 to a Code Section 403(b)(7) custodial account are
also available for financial hardship.
In addition to the limitations described above, Contributions
attributable to employer Contributions which represent amounts
transferred under Internal Revenue Service Revenue Ruling 90-24 from a
Code Section 403(b)(7) custodial account may be partially or fully
withdrawn only if one or more of the following conditions are met. The
Participant has:
(a) Experienced a separation from service when certified by the
employer;
(b) Attained age 59 1/2;
(c) Died;
(d) Become disabled, as defined by the Code;
(e) Experienced financial hardship as defined by the Code. The amount
available for financial hardship is limited to the lesser of the
amount necessary to satisfy the need or Contributions
attributable to employer Contributions made on or after January
1, 1989 and earnings thereon; or
(f) Met other circumstances as otherwise allowed by federal law,
regulations or rulings.]
WITHDRAWAL CHARGE (see 8.04)
[For each withdrawal from an Individual Account, we may deduct a
withdrawal charge. This charge is a percentage of the amount
withdrawn, determined as follows:
[NUMBER OF YEARS SINCE INDIVIDUAL
ACCOUNT ESTABLISHED] WITHDRAWAL CHARGE
-------------------- -----------------
[Fewer than 3 5%
3 or more, but fewer than 4 4%
4 or more, but fewer than 5 3%
5 or more, but fewer than 6 2%
6 or more, but fewer than 7 1%
7 or more 0%]
The withdrawal charge will never exceed 8.5% of total Contributions,
or the maximum permitted by National Association of Securities
Dealers, Inc. (NASD) rules.]
SI-3
WAIVER OF WITHDRAWAL CHARGE (see 8.05)
[The withdrawal charge does not apply when the withdrawal is:
(a) Used to purchase Annuity payments;
(b) Used to purchase a single premium immediate Annuity or individual
retirement Annuity issued by ALIAC or one of its affiliates,
provided that the right to cancel under the new Contract is not
exercised. We will treat exercise of the right to cancel as a
reinstatement and any subsequent withdrawal may then be subject
to the withdrawal charge applicable on the date of the
withdrawal;
(c) Under a systematic distribution option (see 8.08);
(d) When we terminate an Individual Account as provided in 8.09;
(e) When the Individual Account value is [$3,500] or less (or, if
applicable, as otherwise allowed by the Plan for lump-sum
cash-out without Participant consent) and during the previous [12
months] no amounts have been withdrawn, transferred, taken as a
loan (if allowed under the Contract), or used to purchase Annuity
payments;
(f) Made by a Participant who has attained age 59 1/2 and, if
applicable, has completed nine Contribution periods;
(g) Due to a Participant's death before Annuity payments begin;
(h) In an amount equal to or less than [10%] of the Individual
Account value when the withdrawal is the first withdrawal in a
calendar year and is made to a Participant who has attained age
59 1/2 and not older than age 70 1/2 (not available when a
systematic distribution option is in effect). Any outstanding
loans are not included in the Individual Account value when
determining the [10%] amount. This waiver does not apply to full
withdrawals or to a withdrawal due to a loan default;
(i) To a Participant who is separated from service when certified by
the employer;
(j) Due to financial hardship as defined in the Code;
(k) Due to the transfer of the Individual Account value to another
contract issued by ALIAC for the Plan, subject to various
conditions agreed to by the Contract Xxxxxx and ALIAC; or
(l) For a transfer as provided under Internal Revenue Service Revenue
Ruling 90-24 to an ALIAC Code Section 403(b)(7) custodial
account.]
REQUIRED DISTRIBUTIONS (see 8.07)
[Generally, for Contributions made and earnings credited after
December 31, 1986, distribution must begin by April 1 of the calendar
year following the later of the calendar year in which a Participant
(1) attains age 70 1/2 or (2) retires. For Individual Account values
as of December 31, 1986, distribution must begin by the last day of
the year in which a Participant attains age 75 or retires, whichever
is later.]
The entire Individual Account value must be distributed, or begin to
be distributed, over the life or life expectancy of a Participant, or
joint lives or joint life expectancies of a Participant and a
beneficiary.
INDIVIDUAL ACCOUNT TERMINATION AMOUNT (see 8.09)
$1,999, or the paid-up Annuity benefit is less than $20 monthly
LOANS (see 9.01)
[Loans are available under this Contract.]
CONTRACT BENEFICIARY (see 10.02)
[The Contract Holder is the Contract beneficiary. A Participant may
designate a beneficiary under the Plan (Plan beneficiary).]
SI-4
CONTRACT SCHEDULE II
ANNUITY PHASE
PAYMENT PERIOD (see 11.03)
The period for which we will guarantee Annuity payments must be at
least [five] years and no more than [30] years.
MORTALITY TABLE (see 11.04)
Society of Actuaries' 1983 Table a
MAXIMUM NUMBER OF FUNDS (see 11.06)
The maximum number of Funds is [four].
FIXED ANNUITY MINIMUM GUARANTEED INTEREST RATE (see 11.07)
3% (annual basis)
NUMBER OF ANNUAL TRANSFERS AMONG FUNDS (see 11.09)
Each calendar year, we allow [five] transfers among funds.
DAILY CHARGES TO THE SEPARATE ACCOUNT (see 11.14)
Charges to the Separate Account will never be more than the following:
Mortality and Expense Risk Charge: [1.25%] (annual basis)
Administrative Charge: [0.25%] (annual basis)
SII-1
DEFINITIONS
ACCUMULATION PHASE
The time between an Individual Account Effective Date and the date on which the
entire Individual Account value is used to purchase Annuity payments, or
otherwise distributed.
AETNA GET FUND (GET FUND)
The Aetna GET Fund is an Investment Option which may be available during the
Accumulation Phase. The GET Fund operates as a series offering. Each series is a
separate Fund.
AETNA LIFE INSURANCE AND ANNUITY COMPANY (ALIAC)
Aetna Life Insurance and Annuity Company ("we," and "our," and "us" refer to
ALIAC).
ANNUITANT
The person whose life expectancy determines the amount and/or duration of the
payments under a life-contingent Annuity option.
ANNUITY
Payment of an income:
(a) For a stated period;
(b) For the life of one or two people; or
(c) Some combination of (a) and (b).
A fixed Annuity is one in which the payment amount does not vary. A variable
Annuity is one in which the payment amount may vary based on the net investment
results of the Funds.
ANNUITY PHASE
The time during which we make Annuity payments.
BUSINESS DAY
Each day our Home Office is open for business.
CODE
The Internal Revenue Code of 1986, as it is amended from time to time.
CONTRACT
This agreement between ALIAC and the Contract Holder.
CONTRACT HOLDER
The entity, or person, named in the specifications section on the face page, to
which the Contract is issued.
CONTRIBUTION
The payment made to us during the Accumulation Phase. The Contribution may be
reduced by any applicable premium tax due.
EFFECTIVE DATE
The date, shown in the specifications section on the face page, on which we
issue the Contract or establish an Individual Account.
FIXED ACCOUNT
A Fixed Interest Option. The Fixed Account is an obligation of our General
Account.
FIXED INTEREST OPTIONS
Investment options, including the Fixed Account, the Fixed Plus Account and the
Guaranteed Accumulation Account that credit interest. The Fixed Interest Options
available during the Accumulation Phase are shown on Contract Schedule I under
Fixed Interest Options Available.
FIXED PLUS ACCOUNT
A Fixed Interest Option. Limitations apply to withdrawals from the Fixed Plus
Account. The Fixed Plus Account is an obligation of our General Account.
1
FUND
A variable Investment Option available under this Contract. The Funds are
open-end registered investment management companies (mutual funds) in which the
Separate Account invests.
GENERAL ACCOUNT
The account that holds our assets other than those held in the Separate Account
or Nonunitized Separate Account.
GUARANTEED ACCUMULATION ACCOUNT (GAA)
A Fixed Interest Option that may be available during the Accumulation Phase.
Under this option, we guarantee specified rates of interest for specified
periods of time. Amounts allocated to the Guaranteed Accumulation Account are
held in the Nonunitized Separate Account.
GOOD ORDER
Instructions that are complete and clear enough to allow us to act without
exercising discretion.
HOME OFFICE
Our main office located at 000 Xxxxxxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxxxx 00000.
INDIVIDUAL ACCOUNT
An account, or accounts (including, if applicable, employer and employee
accounts) established for each Participant to maintain a record of transactions
and the value of Contributions as invested.
INVESTMENT OPTIONS
The Funds and Fixed Interest Options available under this Contract.
MATURITY DATE
The last day of a GAA guaranteed term or the last day of the guarantee period of
an Aetna GET Fund series.
NONUNITIZED SEPARATE ACCOUNT
A separate account that holds assets allocated to the Guaranteed Accumulation
Account.
PARTICIPANT
A person who is covered under the retirement Plan or program for which this
Contract is issued and who has an interest in this Contract.
PLAN
The retirement plan or program for which this Contract is issued.
PREMIUM TAX
Any tax assessed by any governmental entity on Contributions or amounts used to
purchase Annuity payments.
SEPARATE ACCOUNT
An account that buys and holds shares of the Funds through its subaccounts.
VALUATION DATE
The date and time at which accumulation unit values and Annuity unit values are
calculated. Currently, this calculation is made after the close of business of
the New York Stock Exchange on any normal business day, Monday through Friday,
that the New York Stock Exchange is open.
2
SECTION 1. GENERAL CONTRACT PROVISIONS
1.01 ENTIRE CONTRACT
The entire Contract consists of this document, any attachments and any
endorsements incorporated.
The Plan, if applicable, is not part of the Contract and ALIAC is not
bound by its terms.
1.02 NONPARTICIPATING CONTRACT
This Contract is nonparticipating. The Contract Holder, a Participant
or a Contract beneficiary have no right to share in our earnings.
1.03 CONTROL OF CONTRACT
Control of the Contract is as shown on Contract Schedule I under
Control of Contract.
1.04 CERTIFICATE
Any certificate provided to a Participant summarizes Contract
provisions; it is for information only and is not part of the
Contract, except for Contracts funded solely by employee
contributions, in which case the terms of the Certificate shall
control. We will provide certificates as required by state law in the
state where the Contract is delivered and as allowed under the Plan.
Certificates issued to New York residents pursuant to Contracts funded
solely by employee contributions shall be delivered in the state of
New York. Nothing in this Contract invalidates or impairs any right
granted under New York Insurance Law Section 3219, including, but not
limited to, any rights granted pursuant to New York Insurance Law
Section 3219(a)(4).
1.05 INCONTESTABILITY
We will not cancel this Contract because of any error of fact.
1.06 GRACE PERIOD
Except as provided in 8.09, this Contract and all Individual Accounts
will remain in effect even if Contributions are not continued.
1.07 CHANGE OF CONTRACT
Only an ALIAC officer at the level of Vice President or higher, or an
officer with written delegation of authority from a Vice President or
higher officer, may change the terms of this Contract. No other ALIAC
officer, employee, agent or representative can change this Contract.
Except as noted below, this Contract may be changed at any time by
written mutual agreement between the Contract Holder and ALIAC (or for
Contracts funded solely by employee Contributions, the Participant).
For changes we initiate requiring Contract Holder or Participant
consent, we notify the Contract Holder 60 calendar days in advance of
the change and consider that the Contract Holder or Participant has
agreed to the change unless we receive written notice that the
Contract Holder or Participant does not agree to the change at least
30 calendar days before the date the change becomes effective.
If we propose a change requiring Contract Holder or Participant
consent and the Contract Holder or Participant does not agree to the
change, we have the right to not establish new Individual Accounts and
to stop accepting Contributions to existing Individual Accounts.
We will not reduce the minimum guaranteed interest rate for the Fixed
Account and the Fixed Plus Account.
We have the right to change the following without Contract Holder or
Participant consent:
(a) Net Investment Factor (see 3.06)
We may change the net investment factor by notifying the Contract
Holder or Participant in writing at least 30 calendar days before
the change becomes effective. If we do this, the change will
apply only to Individual Accounts established, and Contributions
received, after the date the change becomes effective.
3
(b) Guaranteed Accumulation Account (GAA) market value adjustment
(see 7.09)
We may change the GAA market value adjustment by notifying the
Contract Holder or Participant in writing at least 90 calendar
days before the change becomes effective. If we do this, the
change will apply only to guaranteed terms offered in deposit
periods after the date the change becomes effective.
(c) Systematic Distribution Options (see 8.08)
We may change systematic distribution options by notifying the
Contract Holder or Participant in writing at least 30 calendar
days before the change becomes effective. If we do this, the
change will not apply to Participants or beneficiaries receiving
payments under an option before the date the change becomes
effective.
(d) Annuity Options (see 11.03)
We may change Annuity options by notifying the Contract Holder or
Participant in writing at least 30 calendar days before the date
the change becomes effective. If we do this, the change will not
take effect until at least 12 months after the Effective Date of
the Contract, or until at least 12 months after any previous
change. Any change will not apply to Participants or
beneficiaries receiving Annuity payments before the date the
change becomes effective.
(e) Mortality Table (see 11.04)
We may change the mortality table by notifying the Contract
Holder or Participant in writing at least 30 calendar days before
the date the change becomes effective. If we do this, the new
table will not apply to Individual Accounts established before
the date the change becomes effective.
In addition, we may change this Contract as required to comply with
state and federal law without Contract Holder or Participant consent
by notifying the Contract Holder or Participant at least 30 calendar
days before the date the change becomes effective.
Any unilateral change will not apply to Individual Accounts
established before the date the change becomes effective, but will
apply to Individual Accounts established on or after the date the
change becomes effective. If we make a unilateral change, the Contract
Holder or Participants, as applicable, are permitted to terminate
participation in the Contract before the date the change becomes
effective under the terms of the Contract in effect prior to the date
the change becomes effective.
As required by law, we will make any change of Contract by
endorsement, which may be subject to regulatory approval in the state
where the Contract is delivered.
1.08 PAYMENTS
We make payments as directed by the Contract Holder or a Participant,
as applicable. Payment requests must be in writing or as we otherwise
allow in our administrative practice. We determine the amount of any
payment based on the Individual Account value as of the next Valuation
Date following our receipt of a payment request in Good Order at our
Home Office. Generally, we make payments within seven calendar days.
1.09 DEFERRAL OF PAYMENT
We may defer payment up to a period of six months or as otherwise
provided by state and/or federal law.
1.10 PROOF OF AGE
If a life-contingent Annuity option is elected, we may require proof
of the age of an Annuitant.
1.11 EVIDENCE OF SURVIVAL
We may require proof that any Annuitant under a life-contingent
Annuity option is living.
4
1.12 MISSTATEMENTS AND ADJUSTMENTS
If we learn that the age of any Annuitant or second Annuitant is
misstated, we will use the correct age to adjust payments. We reserve
the right to obtain reimbursement, or to adjust future payments for
any amount we overpaid. We will pay the amount of any underpayment.
1.13 REPORTS
Each calendar year we provide the Contract Holder or a Participant, as
applicable, with a report of the Individual Account value. We also
provide an annual report for the Separate Account.
1.14 STATE LAWS
This Contract complies with the laws of the state in which it is
delivered. Any cash, death or Annuity payments are equal to or greater
than the minimum required. To determine legal reserve valuation, we
use Annuity tables as required by law; such tables may be different
from those we use to determine Annuity payments.
1.15 CLAIMS OF CREDITORS
Individual Accounts are not subject to the claim of any creditor of
the Contract Holder, a Participant or a beneficiary, except to the
extent permitted by law.
1.16 MAINTENANCE FEE
We may deduct an annual maintenance fee during the Accumulation Phase.
The amount of the maintenance fee, if any, for this Contract is shown
on Contract Schedule I under Maintenance Fee.
The fee, if any, is deducted proportionately from each Investment
Option in which the Individual Account is invested on the anniversary
of the Individual Account Effective Date. The fee is also deducted if
the entire Individual Account value is withdrawn.
If a Participant has more than one Individual Account, we may deduct
the fee proportionately from all Individual Accounts. We may eliminate
the fee for an Individual Account established with one lump-sum
Contribution.
1.17 CHARGES FOR ADDITIONAL SERVICES
At the request of the Contract Holder, we, or our authorized
representatives, may provide administrative services to the Plan. We
reserve the right to charge for such services.
1.18 CHARGES SUBJECT TO CHANGE
The maintenance fee (see 1.16) and charges to the Separate Account
during the Accumulation Phase (see 3.07) may vary (increase, decrease,
or be eliminated) based on the total assets held in all Individual
Accounts under the Contract. In determining total assets, we may
aggregate Individual Accounts established under different ALIAC
Contracts. The aggregate amount is equal to the sum of assets in all
Individual Accounts under this Contract, plus the value of Individual
Accounts under other ALIAC Contracts of the same class issued to the
Contract Holder. We may determine the amount of the maintenance fee
and/or charges to the Separate Account based on total assets on an
annual basis. We will determine initial charges based on our estimate
of the amount that will be allocated to the Contract during a period
mutually agreed upon by the Contract Holder and us.
5
PART I. ACCUMULATION PHASE
SECTION 2. CONTRIBUTIONS AND INDIVIDUAL ACCOUNT VALUE
2.01 CONTRIBUTIONS
We allocate Contributions in whole percentages among the Investment
Options available as directed by the Contract Holder or a Participant,
as applicable. Changes in future Contribution allocation may be made
at any time without charge. The Contract Holder or a Participant, as
applicable, may also establish an Individual Account with one lump-sum
Contribution.
We reserve the right to establish minimum Contribution amounts and to
refuse to accept any Contribution.
Contributions to Individual Accounts may be limited as provided in the
Code. The limits, if any, are shown on Contract Schedule I under
Contribution Limits.
2.02 PREMIUM TAX
We pay any applicable premium tax when it is due. We will deduct the
amount of any applicable premium tax from the Individual Account value
no earlier than when there is a tax liability. We reserve the right to
deduct any premium tax due before a Contribution is allocated to an
Individual Account.
2.03 INDIVIDUAL ACCOUNT
We will establish an Individual Account for each Participant.
If required, we will provide accounts that distinguish between
employer and employee Contributions for each Participant.
2.04 EXPERIENCE CREDIT
We may apply experience credits (investment, administrative, mortality
or other) under this Contract and may apply such credits as:
(a) A reduction in the maintenance fee;
(b) A reduction in the mortality and expense risk charge to the
Separate Account;
(c) A reduction in the administrative charge to the Separate Account;
and
(d) An increase in a Fixed Interest Option interest rate.
We will apply experience credits at our sole discretion as we deem
appropriate for the class of contracts to which the Contract is
issued.
2.05 INDIVIDUAL ACCOUNT VALUE
As of the most recent Valuation Date, the Individual Account value is
equal to the total of all Contributions:
(a) Plus any interest added on the amount, if any, allocated to a
Fixed Interest Option(s);
(b) Plus or minus the investment experience on the amount, if any,
held in the Separate Account;
(c) Minus any applicable maintenance fees, any amounts withdrawn, or
used to purchase Annuity payments, or any applicable premium tax;
and
(d) Minus any applicable fees or charges deducted.
6
SECTION 3. SEPARATE ACCOUNT
3.01 GENERAL
The Separate Account, established under Title 38a, Section 38a-433 of
the Connecticut General Statutes, buys and holds shares of the Funds
available under this Contract. The Separate Account is registered as a
unit investment trust under the Investment Company Act of 1940.
We own the assets held in the Separate Account; we are not a trustee
of those assets. Income, gains or losses, realized or unrealized, are
credited to or charged against the Separate Account without regard to
our other income, gains or losses. Separate Account assets, to the
extent of reserves and other Contract liabilities, cannot be charged
with liabilities arising out of any other business we conduct.
3.02 FUNDS AVAILABLE
We reserve the right to limit the number of Funds in which an
Individual Account may be invested, at one time or cumulatively,
during the Accumulation Phase and/or Annuity Phase.
3.03 CHANGE OR SUBSTITUTION OF FUNDS
We reserve the right to stop offering any Fund or to add Funds. We may
substitute shares of a Fund for shares of another Fund. We will
provide the Contract Holder with reasonable advance notice of any
elimination, addition or substitution of a Fund. If the Plan is
subject to ERISA, we will seek Contract Holder consent in advance of
any Fund substitution. Consent will be deemed given unless, following
notice of substitution and within a prescribed time period, the
Contract Holder notifies us in writing that it does not consent and
provides us with alternative investment instructions for the shares
that would otherwise be affected by the substitution.
3.04 ACCUMULATION UNITS
Each Contribution allocated to one or more of the Funds is credited to
an Individual Account as accumulation units. The number of
accumulation units is calculated by dividing the amount of the
Contribution allocated to the Fund by the accumulation unit value (see
3.05) as of the next Valuation Date following our receipt of the
Contribution in Good Order at our Home Office.
3.05 ACCUMULATION UNIT VALUE
The value of each accumulation unit for any Fund for each Valuation
Date is computed by multiplying the net investment factor (see 3.06)
by the accumulation unit value for such Valuation Date.
Accumulation unit values may increase or decrease from Valuation Date
to Valuation Date.
3.06 NET INVESTMENT FACTOR
The net investment factor is used to compute the accumulation unit
value for any Fund.
For each Valuation Date, for each Fund, the net investment factor is
equal to 1.0000000, plus the net return rate.
The net return rate equals:
[a - b - c]
------------- - e - f
d
Where:
a is the value of the shares of the Fund held by the Separate
Account on the current Valuation Date;
b is the value of the shares of the Fund held by the Separate
Account on the prior Valuation Date;
c is taxes or provisions for taxes, if any, on the Separate Account
(with any federal income tax liability offset by foreign tax
credits to the extent allowed);
7
d is the total value of the accumulation units and Annuity units of
the Separate Account on the prior Valuation Date;
e is Separate Account daily charges for mortality and expense risk
and a daily administrative charge as shown on Contract Schedule
I under Daily Charges to the Separate Account; and
f is if applicable, a charge for the GET Fund guarantee, which is
deducted daily during the guarantee period. The charge, which
is determined before the beginning of each offering period
(see 4.02), is shown on Contract Schedule I under Daily Charges
to the Separate Account.
The net return rate may be greater or less than zero percent.
3.07 CHARGES TO THE SEPARATE ACCOUNT
During the Accumulation Phase, we may deduct a mortality and expense
risk charge from the Individual Account value invested in the Separate
Account. In addition, we reserve the right to impose an administrative
charge.
The charges to the Separate Account are shown on Contract Schedule I
under Daily Charges to the Separate Account and are deducted daily.
3.08 FUND TRANSFERS
During the Accumulation Phase, any portion or all of the Individual
Account value held in a Fund may be transferred to any other Fund or
any available Fixed Interest Option. The Individual Account value will
be based on the Fund's accumulation unit value next determined after
we receive a transfer request in Good Order.
3.09 WITHDRAWALS FROM THE SEPARATE ACCOUNT
If the Contract Holder or a Participant, as applicable, requests a
partial or full withdrawal (see 8.02) from the Funds, a withdrawal
charge may apply (see 8.04).
SECTION 4. AETNA GET FUND (GET FUND)
The following provisions apply if the GET Fund is available.
4.01 GET FUND GUARANTEE PERIOD
For each GET Fund series, the period for which the GET Fund guarantee
applies. The guarantee period ends on the Maturity Date.
4.02 GET FUND OFFERING PERIOD
The period, usually from one to three months, during which the
Contract Holder or a Participant, as applicable, may transfer or
allocate amounts to a GET Fund series. Each GET Fund series has a
specific offering period. Amounts transferred or allocated prior to
the date on which the guarantee period begins are invested in money
market instruments.
We will specify a minimum total asset amount required at the end of an
offering period to offer a GET Fund series. If the minimum is not
achieved, we reserve the right not to begin the guarantee period. If a
GET Fund series is not begun, we will mail a notice to all Contract
Holders or Participants, as applicable, who have made allocations to
that GET Fund series no less than 15 calendar days after the end of
the offering period. The Contract Holder or a Participant, as
applicable, then has 45 calendar days from the end of the offering
period to reallocate the amount allocated to the GET Fund to any other
available Investment Options. During this time, GET Fund assets are
invested in money market instruments. If the Contract Holder or a
Participant, as applicable, makes no election by the end of the 45-day
period, at the next Valuation Date, we will allocate the amount in the
terminated GET Fund series to the money market fund available under
the Contract.
8
We reserve the right to specify a maximum total asset amount for a GET
Fund series. If the maximum is achieved, we reserve the right to set a
date on which we will stop accepting allocations for that GET Fund
series. We will announce the date on which we will stop accepting
transfers and allocations 10 calendar days prior to that date.
4.03 GET FUND GUARANTEE
On the Maturity Date of each GET Fund series, the GET Fund
accumulation unit value for that series will not be less than the GET
Fund accumulation unit value determined at the close of business on
the last day of the offering period. If necessary to offset any
shortfall in the GET Fund accumulation unit value, we will transfer
funds from our General Account to the Separate Account. The GET Fund
guarantee does not apply to transfers or withdrawals made before the
Maturity Date.
If GET Fund accumulation units are adjusted at any time during the
guarantee period, the GET Fund guarantee will be restated. We
calculate the restated guarantee so that it is equivalent to the
original guarantee for that GET Fund series.
A daily charge is assessed on the amount, if any, allocated to the GET
Fund. This charge for the GET Fund guarantee is shown on Contract
Schedule I under Daily Charges to the Separate Account.
4.04 GET FUND MATURITY DATE
The GET Fund Maturity Date is the date on which the guarantee period
ends and GET Fund accumulation units are liquidated.
Prior to the Maturity Date for each series, we send a written notice
of the date to each Contract Holder or Participant, as applicable, who
has an Individual Account value in that series. In response, the
Contract Holder or Participant, as applicable, must tell us to which
available Investment Options to transfer the amount in the GET Fund on
the Maturity Date. If we do not receive instructions, on the Maturity
Date we transfer the portion of the Individual Account value held in
the GET Fund to another GET Fund series, if available. If no GET Fund
series is available, we transfer the amount to the Fund or Funds we
designate in the written notice.
4.05 TRANSFERS OR WITHDRAWALS FROM THE GET FUND
Transfers or withdrawals from the GET Fund before the Maturity Date
are based on the GET Fund unit value for the next Valuation Date
following our receipt of the request in Good Order (see 8.01 and
8.02).
SECTION 5. FIXED ACCOUNT
The following provisions apply if the Fixed Account is available as shown on
Contract Schedule I under Fixed Interest Options Available.
5.01 FIXED ACCOUNT MINIMUM GUARANTEED INTEREST RATE
The Fixed Account minimum guaranteed interest rate is shown on
Contract Schedule I under Fixed Account Minimum Guaranteed Interest
Rate.
Each calendar year, we will set an annual minimum guaranteed interest
rate which will apply to all amounts held in the Fixed Account during
the calendar year. The one year minimum guaranteed interest rate will
be established prior to each calendar year and will be made available
to the Contract Holder or Participants, as applicable, in advance of
the calendar year. We, at our discretion, may credit a higher interest
rate, which is not guaranteed; we will make the current rate, and the
period for which it will be credited, available to the Contract Holder
or Participants, as applicable.
9
5.02 TRANSFERS FROM THE FIXED ACCOUNT
Each calendar year, the percentage shown on Contract Schedule I under
Fixed Account Annual Transfer Limit of the amount in the Fixed Account
may be transferred to any available Investment Options. The amount
available for transfer will be based on the Individual Account value
in the Fixed Account as of the date we receive the transfer request in
Good Order at our Home Office. We may, on a temporary basis, allow
transfer of a larger percentage. There is no limit on the amount that
may be transferred to the Fixed Plus Account.
5.03 WITHDRAWALS FROM THE FIXED ACCOUNT
If the Contract Holder or a Participant, as applicable, requests a
partial or full withdrawal (see 8.02) from the Fixed Account, a
withdrawal charge may apply (see 8.04).
SECTION 6. FIXED PLUS ACCOUNT
The following provisions apply if the Fixed Plus Account is available as shown
on Contract Schedule I under Fixed Interest Options Available.
6.01 FIXED PLUS ACCOUNT MINIMUM GUARANTEED INTEREST RATE
The Fixed Plus Account minimum guaranteed interest rate is shown on
Contract Schedule I under Fixed Plus Account Minimum Guaranteed
Interest Rate.
Each calendar year, we will set an annual minimum guaranteed interest
rate which will apply to all amounts held in the Fixed Plus Account
during the calendar year. The one year minimum guaranteed interest
rate will be established prior to each calendar year and will be made
available to the Contract Holder or Participants, as applicable, in
advance of the calendar year. We, at our discretion, may credit a
higher interest rate, which is not guaranteed; we will make the
current rate, and the period for which it will be credited, available
to the Contract Holder or Participants, as applicable.
6.02 TRANSFERS FROM THE FIXED PLUS ACCOUNT
During each rolling 12-month period, the percentage shown on Contract
Schedule I under Fixed Plus Account Annual Transfer and Partial
Withdrawal Limit of the amount in the Fixed Plus Account may be
transferred to any available Investment Option.
The amount available for transfer is based on the Individual Account
value in the Fixed Plus Account on the date we receive the transfer
request in Good Order at our Home Office, reduced by any amount
withdrawn, transferred, taken as a loan (if allowed under the
Contract) or used to purchase Annuity payments during the 12 months
prior to the transfer request. In addition, we reserve the right to
reduce the amount available for transfer by amounts withdrawn under a
systematic distribution option.
Twenty percent of the amount in the Fixed Plus Account may be
transferred in each of four consecutive 12 months and the balance
transferred in the fifth year subject to the following conditions:
(a) During the five-year period, no Contributions are allocated to or
transferred from the Fixed Plus Account;
(b) We will include any amount transferred, taken as a loan (if
allowed under the Contract) or used to purchase Annuity payments
during the prior 12-month period when calculating the amount
which equals 20%; and
(c) We reserve the right to include amounts paid under a systematic
distribution option when calculating the amount which equals 20%.
In addition, we reserve the right to waive the transfer limit when the
amount in the Fixed Plus Account is less than or equal to the amount
shown on Contract Schedule I under Waiver of Fixed Plus Account
Transfer Limit.
10
6.03 PARTIAL WITHDRAWALS FROM THE FIXED PLUS ACCOUNT
During each rolling 12-month period, the percentage shown on Contract
Schedule I under Fixed Plus Account Annual Transfer and Partial
Withdrawal Limit may be withdrawn from the Fixed Plus Account.
The amount available for withdrawal is based on the Individual Account
value in the Fixed Plus Account on the date we receive the withdrawal
request in Good Order at our Home Office, reduced by any amount
withdrawn, transferred, taken as a loan (if allowed under the
Contract), or used to purchase Annuity payments during the 12 months
prior to the request. In addition, we reserve the right to reduce the
amount available by deducting any amount withdrawn under a systematic
distribution option.
The withdrawal limit does not apply when the partial withdrawal is:
(a) Due to a Participant's death during the Accumulation Phase and is
made within six months of the date of death (this exception
applies to only one partial withdrawal);
(b) Used to purchase Annuity payments; or
(c) Due to other conditions that we may apply without unfairly
discriminating against Contract Holders of the same class.
6.04 FULL WITHDRAWAL OF THE TOTAL AMOUNT IN THE FIXED PLUS ACCOUNT
The Contract Holder, or a Participant, as applicable, may withdraw the
full amount held in the Fixed Plus Account. When we receive a request
for a full withdrawal, no additional transfers, partial withdrawals or
loans (if allowed under the Contract) are allowed. The withdrawal will
be made as follows:
(a) One-fifth of the Individual Account value in the Fixed Plus
Account as of the date we receive the withdrawal request in Good
Order at our Home Office reduced by the amount, if any,
transferred, withdrawn, taken as a loan (if allowed under the
contract) or used to purchase Annuity payments during the prior
12 months; then
(b) One-fourth of the remaining amount 12 months later; then
(c) One-third of the remaining amount 12 months later; then
(d) One-half of the remaining amount 12 months later; then
(e) The balance of the Individual Account value in the Fixed Plus
Account 12 months later.
No withdrawal charge applies to amounts withdrawn.
The Contract Holder or Participant, as applicable, may cancel a full
withdrawal request from the Fixed Plus Account at any time.
6.05 WAIVER OF FIXED PLUS ACCOUNT FULL WITHDRAWAL PROVISION
When a full withdrawal is requested, payment from the Fixed Plus
Account is not limited as described in 6.04 when the withdrawal is as
noted on Contract Schedule I under Waiver of Fixed Plus Full
Withdrawal Provision.
SECTION 7. GUARANTEED ACCUMULATION ACCOUNT (GAA)
The following provisions apply if the Guaranteed Accumulation Account is
available as shown on Contract Schedule I under Fixed Interest Options
Available.
7.01 NONUNITIZED SEPARATE ACCOUNT
The Nonunitized Separate Account is established under Title 38a,
Section 38a-433 of the Connecticut General Statutes and is subject to
New York insurance law. There are no discrete units for this account.
We own the assets held in the Nonunitized Separate Account; we are not
a trustee of those assets. The Contract Holder or Participant does not
participate in the investment gain or loss from assets held in the
Nonunitized Separate Account. Such gain or loss is borne entirely by
us. Income, gains or losses, realized or unrealized, are credited to
or charged against the Nonunitized Separate Account without regard to
our other income, gains or losses. Nonunitized Separate Account
assets, to the extent of reserves and other Contract liabilities,
cannot be charged with liabilities arising out of any other business
we conduct.
11
7.02 GAA MINIMUM GUARANTEED INTEREST RATE
All Contributions allocated to a GAA guaranteed term (see 7.04) earn a
rate of interest which we determine and which is guaranteed when the
Contribution remains in the guaranteed term until the Maturity Date.
We will declare the interest rate applicable to a specific guaranteed
term at the start of the deposit period for that guaranteed term. The
rate credited will never be less than the minimum interest rate shown
on Contract Schedule I under Guaranteed Accumulation Account Minimum
Guaranteed Interest Rate.
7.03 DEPOSIT PERIOD
A deposit period is the period of time we determine during which we
accept allocations (Contributions, transfers, or reinvestments) to one
or more guaranteed terms. We reserve the right to extend the deposit
period.
7.04 GUARANTEED TERM
A guaranteed term is the period of time for which we guarantee the
declared interest rate for allocations (Contributions, transfers, or
reinvestments) to GAA guaranteed terms. We may offer guaranteed terms
ranging in duration from one to ten years. During each deposit period,
we may offer more than one guaranteed term of varying lengths. The
guaranteed term begins the day after the deposit period ends and ends
on the Maturity Date. The Contract Holder or a Participant, as
applicable, may allocate Contributions or transfers to any or all
guaranteed terms available in the current deposit period.
7.05 GUARANTEED TERM GROUPS
A guaranteed term group is comprised of all GAA guaranteed terms of
the same duration.
7.06 MATURITY DATE, MATURITY VALUE AND REINVESTMENT
The Maturity Date is the last day of a guaranteed term. The maturity
value is the amount we pay at the end of a guaranteed term. At least
18 calendar days before any guaranteed term Maturity Date, we notify
the Contract Holder or a Participant, as applicable, of the projected
maturity value and the guaranteed terms (and the guaranteed interest
rates for each) available during the then-current deposit period. The
Contract Holder, or a Participant, as applicable, may then tell us how
to allocate the maturity value.
If the Contract Holder or a Participant, as applicable, does not tell
us how to reinvest the maturity value, we reinvest it in a guaranteed
term of the same duration if one is available. If no guaranteed term
of the same duration is available, we reinvest the maturity value in
the guaranteed term with the next shortest duration. If no shorter
guaranteed term is available, we reinvest the maturity value in the
next longest term. We mail a confirmation of reinvestment. The
confirmation includes the guaranteed term in which we have reinvested
the maturity value and the guaranteed interest rate for that term.
If we have reinvested the maturity value, during the month following
the Maturity Date, the Contract Holder or a Participant, as
applicable, may transfer or withdraw the reinvested amount, with
interest earned (as of the date we receive the request) without
incurring a market value adjustment (see 7.08).
7.07 TRANSFERS AND WITHDRAWALS FROM THE GAA
Except as noted below, the Contract Holder or a Participant, as
applicable, may transfer any portion or all of the amount held in the
GAA. Transfers or withdrawals before the Maturity Date may be subject
to a market value adjustment (see 7.08). Amounts invested in a
guaranteed term may not be transferred during the deposit period or
for a period of 90 calendar days after the close of the deposit
period.
12
Unless directed otherwise, when the Contract Holder or a Participant,
as applicable, requests a transfer or withdrawal from the GAA, we
withdraw amounts proportionately from each guaranteed term in which
the Individual Account is invested. Within a guaranteed term group
(see 7.05), we withdraw first from the oldest deposit period and then
from the next oldest and so on until the amount requested is
withdrawn.
7.08 APPLICATION OF THE MARKET VALUE ADJUSTMENT
Transfers or withdrawals from the GAA before the Maturity Date are
subject to a market value adjustment, except for:
(a) A one-month period following the Maturity Date on which we have
automatically reinvested the value on the Maturity Date;
(b) Distributions under certain systematic distribution options; and
(c) When the withdrawal is equal to the minimum distribution amount
required under the Code, using a method permitted by the Code and
which we offer.
For withdrawals and transfers from the GAA made (1) within six months
of a Participant's death or (2) to purchase Annuity payments under a
life-contingent Annuity option, the amount withdrawn from the GAA is
the greater of:
(a) The aggregate market value adjustment amount which is the sum of
all market value adjusted amounts calculated due to a withdrawal
before the Maturity Date (which may be positive or negative); or
(b) The amount in the GAA.
For withdrawals made after the six month period following death, the
withdrawal or transfer amount is the aggregate MVA amount.
A MVA applies to amounts withdrawn to purchase Annuity payment under a
period certain Annuity option.
We may change the GAA market value adjustment by notifying the
Contract Holder in writing at least 90 calendar days before the change
becomes effective. Any such change will apply only to guaranteed terms
offered in deposit periods after the date the change becomes effective
and will apply to existing and new Individual Accounts.
7.09 MARKET VALUE ADJUSTMENT (MVA)
The market value adjustment reflects any change in yields on U.S.
Treasury Notes from the time an amount is allocated to a GAA
guaranteed term to the time of a transfer or withdrawal prior to the
Maturity Date. When the market value adjustment is applied, the amount
transferred or withdrawn from the GAA is multiplied by a factor which
is calculated as follows:
x
-----
365
(1 + i)
-----------------
x
-----
365
(1 + j)
Where:
i is the deposit period yield
j is the current yield
x is the number of days remaining (computed from Wednesday
of the week of withdrawal) in the guaranteed term.
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The deposit period yield and the current yield are determined as
follows:
DEPOSIT PERIOD YIELD
At the close of the last business day of each week of a deposit
period, we compute a yield that is the average of the yields on
U.S. Treasury Notes which mature in the last three months of the
guaranteed term. The deposit period yield is the average of those
yields for the deposit period. If a withdrawal is made prior to
the close of the deposit period, the deposit period yield is the
average of the yields of U.S. Treasury Notes for each week
preceding the withdrawal. In the event that no U.S. Treasury
Notes will mature in the last three months of the guaranteed
term, we reserve the right to use the U.S. Treasury Notes that
mature in a following quarter.
CURRENT YIELD
The Current Yield is the average of the yields of the same U.S.
Treasury Notes used to calculate the deposit period yield on the
last business day of the week preceding withdrawal.
If U.S. Treasury Notes are no longer available, we will
substitute a suitable replacement index, subject to approval of
the Superintendent of the New York Insurance Department.
A detailed description of the MVA has been filed with the
Superintendent of the New York Insurance Department.
SECTION 8. TRANSFERS, WITHDRAWALS AND DISTRIBUTIONS
8.01 TRANSFERS
During the Accumulation Phase, the Contract Holder or a Participant,
as applicable, may transfer all or any portion of the Individual
Account value among the available Investment Options. The Individual
Account value on any amount transferred from a Fund will be based on
the Fund's accumulation unit value next determined after we receive
the transfer request in Good Order at our Home Office.
The Contract Holder or a Participant, as applicable, may request a
transfer by properly completing a transfer request form and sending it
to our Home Office, or by otherwise complying with our administrative
procedures. We reserve the right to establish a minimum transfer
amount.
8.02 WITHDRAWALS
As allowed by the Plan, if applicable, and subject to provisions of
the Code (see 8.03), during the Accumulation Phase, the Contract
Holder or a Participant, as applicable, may withdraw any portion or
all of the Individual Account value. For Code Section 403(b) Plans,
the Contract Holder or a Participant, as applicable, may transfer the
amount withdrawn to another investment provider under the Plan or roll
over such amount that qualifies as an eligible rollover distribution
in accordance with Code Sections 403(b)(8), 401(a)(31) and 402(c) and
applicable regulations. The Individual Account value of any amount
withdrawn from a Fund will be based on the Fund's accumulation unit
value next determined after we receive the transfer request in Good
Order.
The Contract Holder or a Participant, as applicable, may request a
withdrawal by properly completing a withdrawal request form and
forwarding it to our Home Office, or by otherwise complying with our
administrative procedures. Unless the Contract Holder or a
Participant, as applicable, requests otherwise, the withdrawal will be
made proportionately from the Investment Options in which the
Individual Account is invested.
A withdrawal charge may apply to amounts withdrawn (see 8.04). In
addition, a market value adjustment may apply to amounts withdrawn
from the GAA (see 7.08 and 7.09) and limitations may apply to
withdrawals from the Fixed Plus Account (see 6.04).
8.03 WITHDRAWAL RESTRICTIONS UNDER THE CODE
The Code may impose restrictions on the amount and timing of
withdrawals. The restrictions applicable to this Contract are shown on
Contract Schedule I under Withdrawal Restrictions Under the Code.
Withdrawals that do not comply with the Code may be subject to tax
penalties.
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8.04 WITHDRAWAL CHARGE
During the Accumulation Phase, we may deduct a withdrawal charge from
the Individual Account value withdrawn. The charge, if any, is a
percentage of the amount withdrawn from the Funds and/or Fixed
Interest Options (except, if applicable, the Fixed Plus Account). The
withdrawal charge will never exceed 8.5% of the total amount of
Contributions, or the maximum permitted by National Association of
Securities Dealers, Inc. (NASD) rules.
The withdrawal charge, if any, is shown on Contract Schedule I under
Withdrawal Charge.
8.05 WAIVER OF WITHDRAWAL CHARGE
The withdrawal charge (see 8.04) does not apply in any of the
circumstances shown on Contract Schedule I under Waiver of Withdrawal
Charge.
In addition, we reserve the right to reduce, waive or eliminate the
withdrawal charge.
8.06 REINSTATEMENT
Within 30 calendar days after a withdrawal, the Contract Holder or a
Participant, as applicable may elect to reinstate all or a portion of
the proceeds of a full withdrawal if allowed by applicable law. We
must receive the reinstated amount within 60 calendar days of the
withdrawal.
Any maintenance fee and withdrawal charge imposed at the time of the
withdrawal is included in the reinstatement. If only a portion of the
amount withdrawn is reinstated, the amount of any maintenance fee and
withdrawal charge deducted will be restored proportionally. The amount
of any market value adjustment deducted from any amount withdrawn from
the GAA is not included in the amount reinstated.
Any amount reinstated to the GAA will be credited to guaranteed terms
available in the current deposit period. We will reinvest it in a
guaranteed term of the same duration if one is available. If no
guaranteed term of the same duration is available, we reinvest the
maturity value in the guaranteed term with the next shortest duration.
If no shorter guaranteed term is available, we reinvest the maturity
value in the next longest term.
Amounts withdrawn from a GET Fund series are reinstated to the current
offering period if one is available. If no GET Fund offering period is
available, any amount withdrawn from the GET Fund is reinstated
equally among all other Investment Options in which the Individual
Account is invested.
Amounts are reinstated among the Investment Options in the same
proportion as they were held at the time of withdrawal, except, as
noted above, for amounts from the GET Fund. Any maintenance fee which
falls due after the withdrawal and before the reinstatement is
deducted from the amount reinstated.
The number of accumulation units reinstated to any Fund is based on
the accumulation unit values next computed after we receive the
reinstatement request in Good Order at our Home Office.
Reinstatement is permitted only once.
8.07 REQUIRED DISTRIBUTIONS
While an Individual Account remains in the Accumulation Phase, the
Code may require distribution of all or a portion of the Individual
Account value. The Contract Holder, a Participant or Contract
beneficiary, as applicable, must tell us when to begin distributions.
We have no responsibility for adverse tax consequences as the result
of the Contract Holder, Participant or Contract beneficiary, as
applicable, not complying with minimum distribution requirements.
The distribution requirements, if any, are shown on Contract Schedule
I under Required Distributions.
Generally, to meet distribution requirements, the Contract Holder, a
Participant or Contract beneficiary, as applicable, may request
partial withdrawals, a systematic distribution option (see 8.08) or an
Annuity option.
15
8.08 SYSTEMATIC DISTRIBUTION OPTIONS (SDOS)
During the Accumulation Phase, we offer one or more distribution
options. Under these options we make regularly-scheduled, automatic,
partial distributions of the Individual Account value.
Withdrawals from the Individual Account value for an SDO are made
proportionately from each investment option in which the account is
invested. No withdrawal charge applies to amounts distributed under a
systematic distribution option. A MVA may apply, however, to amounts
withdrawn from the GAA.
If applicable, all payments comply with the incidental death benefit
test of Code Section 401(a)(9). Any single or joint life expectancy
factor(s) used in the calculation of a systematic distribution option
will comply with Code Section 401(a)(9) and related regulations and
are generally based on the tables associated with that section of the
Code.
To request an SDO, the Contract Holder, a Participant, or Contract
beneficiary, as applicable, must complete an election form and forward
it to our Home Office. We may require a minimum Individual Account
value to elect an SDO. Generally, an SDO may be elected only once and
if revoked, may not be reinstated.
The availability of any specific option will be subject to terms and
conditions applicable to that option. Availability is also determined
by the Plan. We reserve the right to discontinue the availability of
an SDO option for future election. Payments will, however, continue to
Participants who elected the option before the date it is no longer
available.
8.09 INDIVIDUAL ACCOUNT TERMINATION
If the Individual Account value is an amount equal to or less than the
amount shown on Contract Schedule I under Individual Account
Termination Amount and we have received no Contributions for 36
months, we reserve the right to terminate an Individual Account.
Before we do this, we notify the Contract Holder or Participant, as
applicable, 90 calendar days in advance. When we terminate an
Individual Account, we do not deduct a withdrawal charge. We do not
exercise this right when the Individual Account value is equal to or
less than the amount shown on Contract Schedule I under Individual
Account Termination Amount due to investment performance.
SECTION 9. LOANS
9.01 LOAN AVAILABILITY
Contract Schedule I indicates whether loans are available under this
Contract. If available, a loan endorsement is included as part of this
Contract.
SECTION 10. DEATH BENEFIT DURING THE ACCUMULATION PHASE
10.01 DEATH BENEFIT
If a Participant dies during the Accumulation Phase, we pay a death
benefit. The amount of the death benefit is the Individual Account
value as of the next Valuation Date following our receipt of
acceptable proof of death at our Home Office (see 7.08 for amounts in
the GAA).
10.02 CONTRACT BENEFICIARY
The Contract beneficiary is shown on Contract Schedule I under
Contract beneficiary. Generally, the Participant may name a
beneficiary under the Plan (the Plan beneficiary). If allowed by the
Plan, when designating the beneficiary, the Contract Holder or a
Participant, as applicable, may specify, the form of payment as
permitted by the Code. The Contract beneficiary and the form of
payment, if applicable, may be designated or changed in writing or as
we may otherwise allow in our administrative procedures.
16
10.03 DISTRIBUTION OF DEATH BENEFIT
Generally, if the Plan beneficiary is the Participant's surviving
spouse, distribution of the death benefit must begin no later than the
year the Participant would have attained age 70 1/2 or any other date
allowed under federal law or regulations.
If the Plan beneficiary is not the Participant's surviving spouse,
generally, the death benefit must be used to purchase Annuity payments
within one year of the year of the Participant's death or otherwise
paid within five years of the year of the Participant's death.
Annuity payments to a Plan beneficiary may not extend beyond the
period specified in the Code.
PART II. ANNUITY PHASE
SECTION 11. GENERAL PROVISIONS
11.01 ELECTION
The Contract Holder, a Participant, or Contract or Plan beneficiary,
as applicable, may elect an Annuity option by properly completing an
election form and forwarding it to our Home Office no later than 30
calendar days before the desired first Annuity payment date. All
Annuity option elections must comply with any Plan requirements and
regulatory requirements including the Code minimum distribution
requirements.
All or any portion of the Individual Account value (after the
deduction of any applicable premium tax) may be used to purchase
Annuity payments (for amounts from the GAA, see 7.08).
The Contract Holder, a Participant, or Contract or Plan beneficiary,
as applicable, must also select an Annuity option (see 11.03) and the
Investment Options (see 11.06).
Once payments begin, an Annuity option may not be revoked, nor may any
amount be withdrawn except as noted below.
11.02 CHANGE OF ANNUITY PROVISIONS
We reserve the right to change or eliminate Annuity options (see
11.03) and to change the mortality table (see 11.04) we use to
calculate payment rates for life-contingent Annuity payments. If we do
this, any change will not take effect until at least 12 months after
the Contract Effective Date, or until at least 12 months after any
previous change. A change to Annuity options or the mortality table
used to calculate payment rates will not apply to Individual Accounts
established before the date the change becomes effective.
11.03 ANNUITY OPTIONS
The Contract Holder, a Participant, or Contract or Plan beneficiary,
as applicable, must elect one of the following:
OPTION 1: PAYMENTS FOR A STATED PERIOD
This option provides payments for a stated period. The number of years
in the stated period must fall within the range shown on Contract
Schedule II under Payment Period.
If payments for this option are under a Variable Annuity, the present
value of any remaining payments may be withdrawn at any time. If a
withdrawal is requested within five years of the first payment, the
lump-sum payment is treated as a withdrawal during the Accumulation
Phase and any applicable withdrawal charge applies (see 8.04).
If the payments are fixed-only, an annual increase of one, two or
three percent (compounded annually) may be elected at the time the
Annuity option is chosen (if permitted by the Code).
17
OPTION 2: LIFE INCOME FOR ONE ANNUITANT
This option provides payments for the life of the Annuitant. If this
option is elected, the Contract Holder, a Participant, or Contract or
Plan beneficiary, as applicable, must also choose one of the
following:
(a) Payments cease at the death of the Annuitant; or
(b) Payments are guaranteed for a period within the range shown on
Contract Schedule II under Payment Period; or
(c) Fixed-only cash refund: at the death of the Annuitant, the
beneficiary receives a lump-sum payment in an amount equal to the
amount applied to the Annuity (minus any applicable premium tax),
minus the amount of payments made to the Annuitant.
Under (a) or (b), if the payments are fixed-only, an annual increase
of one, two or three percent (compounded annually) may be elected at
the time the Annuity option is chosen (if permitted by the Code).
OPTION 3: LIFE INCOME FOR TWO ANNUITANTS
This option provides payments for the lives of the Annuitant and a
second Annuitant. Payments continue until both Xxxxxxxxxx have died.
If this option is elected, the Contract Holder, a Participant, or
Contract or Plan beneficiary as applicable, must also choose one of
the following:
(a) 100% of the payment amount to continue after the first death; or
(b) 66 2/3% of the payment amount to continue after the first death;
or
(c) 50% of the payment amount to continue after the first death; or
(d) 100% of the payment amount to continue after the first death with
payments guaranteed to the beneficiary after the second death for
a period within the range shown on Contract Schedule II under
Payment Period; or
(e) 100% of the payment amount to continue at the death of the
specified second Annuitant and 50% of the payment amount to
continue at the death of the specified Annuitant; or
(f) 100% of the fixed-only payment amount to continue after the first
death with a cash refund to the Contract beneficiary after the
second death. The amount of the cash refund is equal to the
amount applied to the Annuity (minus any applicable premium tax),
minus the amount of payments made.
Under (a) or (d), if the payments are fixed-only, an annual increase
of one, two or three percent (compounded annually) may be elected at
the time the Annuity option is chosen (if permitted by the Code).
OTHER OPTIONS
As allowed under applicable state law, we reserve the right to make
other options available.
11.04 MORTALITY TABLE
The mortality table for this Contract is shown on Contract Schedule II
under Mortality Table.
11.05 PAYMENTS
The first payment amount must be at least $50 per month or $250 per
year. We reserve the right to increase the minimum first payment
amount, if allowed by state law, based on increases reflected in the
Consumer Price Index-Urban (CPI-U) since July 1, 1993.
To calculate the first payment of a variable Annuity or the guaranteed
payments for a fixed Annuity, we will use the Annuitant's adjusted age
and, if applicable, the second Annuitant's adjusted age. The
Annuitant's adjusted age and, if applicable, the second Annuitant's
adjusted age is the person's age as of the birthday closest to the day
Annuity payments begin, reduced as follows:
(a) Reduced by one year for payments before January 1, 2000;
(b) Reduced by two years for payments beginning during the period
from January 1, 2000 through December 31, 2009;
18
(c) Starting on January 1, 2010, reduced by one additional year for
payments beginning in each succeeding decade.
If a fixed Annuity is elected, we will use the applicable current
settlement option rates if they will provide higher fixed Annuity
payments.
11.06 INVESTMENT OPTIONS
When an Annuity option is elected, the Contract Holder, a Participant,
or Contract or Plan beneficiary, as applicable, must elect:
(a) A fixed Annuity for which the underlying investment is our
General Account;
(b) A variable Annuity for which the underlying investment is one or
more of the available Funds; or
(c) A combination of (a) and (b).
For a variable Annuity, the maximum number of Funds available during
the Annuity Phase is shown on Contract Schedule II under Maximum
Number of Funds. The Funds available during the Annuity Phase might
not be the same as those available during the Accumulation Phase.
11.07 FIXED ANNUITY MINIMUM GUARANTEED INTEREST RATE
For a fixed Annuity, the interest rate will never be less than the
minimum guaranteed rate shown on Contract Schedule II under Fixed
Annuity Minimum Guaranteed Interest Rate.
11.08 VARIABLE ANNUITY ASSUMED ANNUAL NET RETURN RATE ELECTION
If a variable Annuity is elected, the Contract Holder, or Participant,
as applicable must also elect an assumed annual net return rate of
3.5% or 5%. The initial Annuity payment for the option elected will
reflect the assumed annual net return rate. If subsequent Annuity
payments are to remain level, the Separate Account must earn this
rate, plus enough to cover the mortality and expense risk charge shown
on Contract Schedule II under Daily Charges to the Separate Account
plus any applicable administrative charge.
11.09 VARIABLE ANNUITY TRANSFERS
If a variable Annuity is elected, the Contract Holder, a Participant,
or Contract or Plan beneficiary, as applicable, may request that we
transfer all or a portion of the amount allocated to a Fund to any
other available Fund. Transfer requests must be expressed as a
percentage of the allocation among the Funds on which the variable
payment is based. The number of transfers allowed each calendar year
is shown on Contract Schedule II under Number of Annual Transfers
Among Funds. We reserve the right to allow additional transfers.
Transfers are effective as of the next Valuation Date following our
receipt of a transfer request in Good Order at our Home Office.
11.10 FUND ANNUITY UNITS
The number of Fund Annuity units is based on the amount of the first
variable Annuity payment which is equal to:
(a) The portion of the Individual Account value (minus any applicable
premium tax) used to purchase a variable Annuity; divided by
(b) One thousand; multiplied by
(c) The payment rate for the option chosen.
Such amount, or portion of the variable payment will be divided by the
appropriate Fund's, or Funds', Annuity unit value (see 11.11) on the
tenth Valuation Date before the due date of the first payment to
determine the number of Fund Annuity units. The number of each Fund's
Annuity units remains fixed unless changed by a subsequent Fund
transfer or if the Annuity option provides for a change in units
(i.e., under life income for two annuitants option after the first
death). Each future payment is equal to the sum of the products of
each Fund's Annuity unit value multiplied by the appropriate number of
units. The Fund Annuity unit value on the tenth Valuation Date before
the payment due date is used.
19
11.11 FUND ANNUITY UNIT VALUE
For any Valuation Date, a Fund's Annuity unit value is equal to:
(a) The Annuity unit value for the prior Valuation Date; multiplied
by
(b) The Annuity unit net return factor (see 11.12) for the current
Valuation Date; multiplied by
(c) A factor to reflect the assumed annual net return rate. The
factor for an assumed annual net return rate of 5% is 0.9998663;
for 3.5% it is 0.9999058.
The dollar value of a Fund Annuity unit and the amount of a variable
Annuity payment may increase or decrease due to investment gain or
loss. We will not change the payment amount due to changes in
mortality, expense results, or the administrative charge.
11.12 FUND ANNUITY NET RETURN FACTOR
The Annuity net return factor(s) are used to compute all variable
Annuity payments for any Fund.
The net return factor(s) for each Fund is equal to 1.0000000 plus the
net return rate.
The net return rate equals:
[a - b - c]
------------- - e
d
Where:
a is the value of the shares of the Fund held by the Separate
Account on the current Valuation Date;
b is the value of the shares of the Fund held by the Separate
Account on the prior Valuation Date;
c is taxes or provisions for taxes, if any, on the Separate Account
(with any federal income tax liability offset by foreign tax
credits to the extent allowed);
d is the total value of the accumulation units and Annuity units of
the Separate Account on the prior Valuation Date;
e is Separate Account daily charges for mortality and expense risk
and a daily administrative charge as shown on Contract Schedule
II under Daily Charges to the Separate Account.
A net return rate may be more or less than 0%. The value of a share of
a Fund is equal to the net assets of the Fund divided by the number of
shares outstanding.
11.13 DEATH BENEFIT DURING THE ANNUITY PHASE
The Contract Holder or a Participant, as applicable, must name a
beneficiary for the Annuity Phase. Unless not allowed by the Plan, or
restricted by the Contract Holder, or a Participant, as applicable,
the beneficiary may name a beneficiary.
If an Annuitant(s) dies, any remaining guaranteed payments continue to
the beneficiary. Payments are made at least as rapidly as provided by
the option in effect at the death of the Annuitant. Annuity payments
to a beneficiary may not extend beyond (1) the life of the
beneficiary, or (2) any period certain greater than the beneficiary's
life expectancy as determined by the Code.
The beneficiary may also elect a lump-sum payment equal to the present
value of any remaining payments.
The interest rate used to determine the first Annuity payment is used
to calculate the present value. The present value is determined as of
the next Valuation Date following our receipt of acceptable proof of
death and a written claim for the death benefit.
Unless not allowed by the Plan or restricted by the Contract Holder,
or a Participant, as applicable, if the beneficiary dies while
receiving payments, the present value of any remaining guaranteed
payments is paid in a lump-sum to the beneficiary's beneficiary or to
the beneficiary's estate.
20
11.14 CHARGES TO THE SEPARATE ACCOUNT
During the Annuity Phase, we may deduct a mortality and expense risk
charge from the Individual Account value invested in the Separate
Account. In addition, we reserve the right to impose an administrative
charge.
The maximum charges to the Separate Account are shown on Contract
Schedule II under Daily Charges to the Separate Account. If
applicable, the charges are deducted daily.
21
OPTION 1: PAYMENTS FOR A STATED PERIOD
MONTHLY AMOUNT FOR EACH $1,000*
RATES FOR A FIXED ANNUITY WITH A 3% GUARANTEED INTEREST RATE
-----------------------------------------------------------------------------------------
YEARS PAYMENT YEARS PAYMENT
----------------------- --------------------- --------------------- ---------------------
5 $17.91 20 $5.51
10 9.61 25 4.71
15 6.87 30 4.18
FIRST MONTHLY AMOUNT FOR EACH $1,000*
RATES FOR A VARIABLE ANNUITY WITH A 3.5% ASSUMED INTEREST RATE (AIR)
-----------------------------------------------------------------------------------------
YEARS PAYMENT YEARS PAYMENT
----------------------- --------------------- --------------------- ---------------------
5 $18.12 20 $5.75
10 9.83 25 4.96
15 7.10 30 4.45
FIRST MONTHLY AMOUNT FOR EACH $1,000*
RATES FOR A VARIABLE ANNUITY WITH A 5% ASSUMED INTEREST RATE (AIR)
-----------------------------------------------------------------------------------------
YEARS PAYMENT YEARS PAYMENT
----------------------- --------------------- --------------------- ---------------------
5 $18.74 20 $6.51
10 10.51 25 5.76
15 7.82 30 5.28
* Net of any applicable premium tax deduction
22
OPTION 2: LIFE INCOME FOR ONE ANNUITANT
MONTHLY PAYMENT AMOUNT FOR EACH $1,000*
RATES FOR A FIXED ANNUITY PAYMENT WITH 3% GUARANTEED INTEREST RATE
------------------- ------------------ ------------------ ------------------ ------------------ ------------------ ----------------
OPTION 2(a): OPTION 2(b): OPTION 2(b): OPTION 2(b): OPTION 2(b): OPTION 2(c):
ADJUSTED PAYMENTS FOR PAYMENTS PAYMENTS PAYMENTS PAYMENTS CASH REFUND
AGE OF LIFE GUARANTEED GUARANTEED GUARANTEED GUARANTEED
ANNUITANT 5 YEARS 10 YEARS 15 YEARS 20 YEARS
------------------- ------------------ ------------------ ------------------ ------------------ ------------------ ----------------
55 $4.44 $4.42 $4.39 $4.32 $4.22 $4.19
60 4.95 4.93 4.86 4.73 4.55 4.57
65 5.65 5.61 5.47 5.22 4.89 5.06
66 5.82 5.77 5.61 5.33 4.96 5.18
70 6.64 6.54 6.23 5.76 5.19 5.70
75 8.06 7.82 7.14 6.25 5.38 6.51
FIRST MONTHLY PAYMENT AMOUNT FOR EACH $1,000*
RATES FOR A VARIABLE ANNUITY PAYMENT WITH 3.5% ASSUMED INTEREST RATE
---------------------------------------------------------------------------------------------------------------------
OPTION 2(a): OPTION 2(b): OPTION 2(b): OPTION 2(b): OPTION 2(b):
ADJUSTED PAYMENTS FOR PAYMENTS PAYMENTS PAYMENTS PAYMENTS
AGE OF LIFE GUARANTEED GUARANTEED GUARANTEED GUARANTEED
ANNUITANT 5 YEARS 10 YEARS 15 YEARS 20 YEARS
--------------------- ------------------ ------------------ ------------------- ------------------ ------------------
55 $4.72 $4.71 $4.67 $4.60 $4.50
60 5.23 5.21 5.13 5.00 4.82
65 5.94 5.89 5.73 5.48 5.15
70 6.92 6.81 6.49 6.00 5.43
75 8.35 8.08 7.38 6.48 5.62
FIRST MONTHLY PAYMENT AMOUNT FOR EACH $1,000*
RATES FOR A VARIABLE ANNUITY PAYMENT WITH 5% ASSUMED INTEREST RATE
---------------------------------------------------------------------------------------------------------------------
OPTION 2(a): OPTION 2(b): OPTION 2(b): OPTION 2(b): OPTION 2(b):
ADJUSTED PAYMENTS FOR PAYMENTS PAYMENTS PAYMENTS PAYMENTS
AGE OF LIFE GUARANTEED GUARANTEED GUARANTEED GUARANTEED
ANNUITANT 5 YEARS 10 YEARS 15 YEARS 20 YEARS
--------------------- ------------------ ------------------ ------------------- ------------------ ------------------
55 $5.63 $5.61 $5.56 $5.47 $5.36
60 6.12 6.09 6.00 5.85 5.65
65 6.82 6.75 6.57 6.30 5.95
70 7.80 7.67 7.30 6.78 6.21
75 9.23 8.93 8.16 7.23 6.38
* Net of any applicable premium tax deduction
RATES ARE BASED ON MORTALITY FROM 1983 TABLE a. THE RATES DO NOT DIFFER BY SEX.
RATES FOR AGES NOT SHOWN WILL BE PROVIDED ON REQUEST AND WILL BE COMPUTED
ON A BASIS CONSISTENT WITH THE RATES IN THE ABOVE TABLES.
23
OPTION 3: LIFE INCOME FOR TWO ANNUITANTS
MONTHLY PAYMENT AMOUNT FOR EACH $1,000*
RATES FOR A FIXED ANNUITY PAYMENT WITH 3.0% GUARANTEED INTEREST RATE
-----------------------------------------------------------------------------------------------------------------------------------
ADJUSTED AGES PAYMENTS
----------------------------- GUARANTEED
PRIMARY SECONDARY 10 YEARS
ANNUITANT ANNUITANT OPTION 3(a) OPTION 3(b) OPTION 3(c) OPTION 3(d) OPTION 3(e) OPTION 3(f)
--------------- ------------- --------------- ---------------- ----------------- ---------------- ----------------- ---------------
55 50 $3.69 $4.05 $4.27 $3.69 $4.03 $3.67
55 60 3.99 4.44 4.71 3.98 4.20 3.94
65 60 4.38 4.97 5.32 4.38 4.93 4.29
65 70 4.93 5.68 6.15 4.91 5.27 4.74
75 70 5.69 6.68 7.32 5.62 6.67 5.29
75 80 6.78 8.11 8.99 6.54 7.36 5.93
FIRST MONTHLY PAYMENT AMOUNT FOR EACH $1,000*
RATES FOR A VARIABLE ANNUITY PAYMENT WITH 3.5% ASSUMED INTEREST RATE
----------------------------------------------------------------------------------------------------------------------------
ADJUSTED AGES PAYMENTS
------------------------------------- GUARANTEED
PRIMARY SECONDARY 10 YEARS
ANNUITANT ANNUITANT OPTION 3(a) OPTION 3(b) OPTION 3(c) OPTION 3(d) OPTION 3(e)
------------------- ----------------- ---------------- ----------------- ---------------- ----------------- ----------------
55 50 $3.97 $4.35 $4.56 $3.97 $4.31
55 60 4.27 4.73 5.00 4.26 4.48
65 60 4.66 5.25 5.61 4.65 5.22
65 70 5.19 5.97 6.44 5.17 5.54
75 70 5.95 6.96 7.61 5.87 6.95
75 80 7.04 8.39 9.29 6.79 7.64
FIRST MONTHLY PAYMENT AMOUNT FOR EACH $1,000*
RATES FOR A VARIABLE ANNUITY PAYMENT WITH 5% ASSUMED INTEREST RATE
----------------------------------------------------------------------------------------------------------------------------
ADJUSTED AGES PAYMENTS
------------------------------------- GUARANTEED
PRIMARY SECONDARY 10 YEARS
ANNUITANT ANNUITANT OPTION 3(a) OPTION 3(b) OPTION 3(c) OPTION 3(d) OPTION 3(e)
------------------- ----------------- ---------------- ----------------- ---------------- ----------------- ----------------
55 50 $4.88 $5.26 $5.48 $4.88 $5.23
55 60 5.15 5.63 5.91 5.14 5.38
65 60 5.52 6.14 6.51 5.51 6.10
65 70 6.04 6.84 7.34 6.00 6.41
75 70 6.77 7.84 8.51 6.68 7.81
75 80 7.86 9.28 10.20 7.57 8.49
* Net of any applicable premium tax deduction
RATES ARE BASED ON MORTALITY FROM 1983 TABLE a. THE RATES DO NOT DIFFER BY SEX.
RATES FOR AGES NOT SHOWN WILL BE PROVIDED ON REQUEST AND WILL BE COMPUTED
ON A BASIS CONSISTENT WITH THE RATES IN THE ABOVE TABLES.
24
[GRAPHIC]
AETNA LIFE INSURANCE AND ANNUITY COMPANY
Home Office: 000 Xxxxxxxxxx Xxxxxx
Hartford, Connecticut 06156
000-000-0000
GROUP COMBINATION DEFERRED ANNUITY CONTRACT
(NONPARTICIPATING)
