EX 99-B.4.2
FORM OF VARIABLE ANNUITY CONTRACT
ING LIFE INSURANCE AND ANNUITY COMPANY
HOME OFFICE: 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
(000) 000-0000
ING Life Insurance and Annuity Company, herein called the
Company, we, us, our, agrees to pay the benefits stated in this
Contract.
SPECIFICATIONS
Plan
SPECIMEN
Type of Plan
INDIVIDUAL RETIREMENT ANNUITY (IRA)
Annuitant
SPECIMEN
Contract Holder
SPECIMEN
Contract No.
SPECIMEN
Effective Date
SPECIMEN
This Contract is Delivered in NEW YORK and is Subject to the Laws of that
Jurisdiction.
THE VARIABLE FEATURES OF THIS CONTRACT ARE DESCRIBED IN PARTS III AND IV.
RIGHT TO CANCEL
The Contract Holder may cancel this Contract within 10 days of receiving it, by
sending a written notice to the Company at the above address or to the agent
from whom it was purchased. The Company will return all payments made for this
Contract within 7 days after it receives the notice of cancellation and this
Contract.
This page, the following pages, and the application make up the entire Contract.
Signed at the Home Office on the Effective Date.
President Secretary
Individual Variable, Fixed, or Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA.
APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN INCREASE OR
DECREASE IN THE SURRENDER VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT
APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
SPECIFICATIONS
(CONTINUED)
GUARANTEED There are guaranteed interest rates of 3% for amounts held
INTEREST RATE in the Fixed Account and the Guaranteed Accumulation
Account (GAA). (See 3.02 and 3.03(d).)
MAINTENANCE FEE This Contract may be subject to an annual Maintenance Fee.
(See Contract Schedule and 3.04.)
SURRENDER FEE There will be a charge deducted for early surrender.
(See Contract Schedule and 3.14.)
DEDUCTIONS FROM There will be deductions for mortality and expense risks
THE SEPARATE and administrative fees. (See 3.06.)
ACCOUNT
DEDUCTION FROM Purchase Payments(s) are subject to a deduction for
PURCHASE premium taxes, if any. (See 3.01.)
PAYMENT(S)
This Contract is a legal contract and constitutes the entire legal relationship
between the Company and the Contract Holder.
READ THIS CONTRACT CAREFULLY. THIS CONTRACT SETS FORTH, IN DETAIL, ALL OF THE
RIGHTS AND OBLIGATIONS OF BOTH YOU AND THE COMPANY. IT IS, THEREFORE, IMPORTANT
THAT YOU READ THIS CONTRACT CAREFULLY.
CONTRACT SCHEDULE
INDIVIDUAL RETIREMENT ANNUITY (IRA) AND SIMPLIFIED EMPLOYEE PENSION (SEP) PLAN
MAINTENANCE FEE:
The annual Maintenance Fee is $25. If the Contract's Current Value is
$10,000 or greater on the date the Maintenance Fee is to be deducted,
the Maintenance Fee will be $0.
SURRENDER FEE:
For each partial or full surrender, the Surrender Fee will be
determined according to the number of completed Contract Years between
the date the first Net Purchase Payment is applied to the Contract and
the date of surrender. The Surrender Fee will be determined as
follows:
COMPLETED CONTRACT YEARS SURRENDER FEE
Less than 2 years 6%
2 or more but less than 3 5%
3 or more but less than 4 4%
4 or more but less than 5 3%
5 or more but less than 6 2%
6 or more but less than 7 1%
7 or more years 0%
No Surrender Fee is deducted from any portion of the Current Value
that is paid:
(a) At the death of the Annuitant before Annuity payments start;
(b) As a premium for an Annuity under this Contract;
(c) For a full surrender where the Current Value is equal to $2,500
or less and no surrenders have been taken from the Contract
within the prior 12 months;
(d) Due to an election of a Systematic Distribution Option; or
(e) In an amount equal to or less than 10% of the Current Value, as
part of the first partial surrender request in a calendar year to
a Contract Holder who is at least age 59 1/2. The Current Value
is calculated as of the date the partial surrender request is
received in Good Order at the Company's Home Office. When a
Systematic Distribution Option is elected, this provision
includes any amounts paid under that election. This provision
does not apply to full surrender requests.
CHARGES TO SEPARATE ACCOUNT:
A daily charge is deducted from any portion of the Current Value
allocated to the Separate Account. The deduction is the daily
equivalent of an annual percentage that will not exceed 1.50%. Current
Separate Account charges are 1.25% for the Annuity mortality risk, the
expense risk and the administrative charge. Charges are subject to
change annually, except for amounts that have been used to purchase an
Annuity. The daily charge does not include investment advisory fees
and other expenses charged by a Fund investment manager. These fees
are disclosed in the applicable Fund Prospectus.
The Company will notify the Contract Holder of any change on Separate
Account charges.
The Company will reduce the Separate Account charge by:
(a) 0.10% if ten years have elapsed since the initial Purchase
Payment has been made to this Contract and an Annuity Option has
not been elected; or
(b) 0.10% if the Current Value in the Contract is greater than
$250,000 on the day of the initial Purchase Payment or on each
subsequent anniversary.
TABLE OF MINIMUM VALUES - FIXED ACCOUNT:
The values in the below Table only apply to annual Purchase Payments
of exactly $1,000 credited to the Fixed Account. Values would be
different for other Purchase Payment amounts, if partial surrenders
are made, or if the Company adds interest at a rate greater than the
Guaranteed Interest Rate - Fixed Account (see 3.02).
The Surrender Value assumes that a Purchase Payment of exactly $1,000
is credited to the Fixed Account at the 3% Guaranteed Interest Rate at
the beginning of each Contract Year. The Maintenance Fee and
applicable Surrender Fee are deducted.
TABLE OF MINIMUM FIXED ACCOUNT VALUES
PER $1,000 OF NET PURCHASE PAYMENTS
ALLOCATED TO THE FIXED ACCOUNT
END MINIMUM MINIMUM
OF CURRENT SURRENDER
YEAR VALUE VALUE
----------------------------------------
1 $ 1,005 $ 945
2 2,040 1,938
3 3,106 2,982
4 4,205 4,078
5 5,336 5,229
6 6,501 6,436
7 7,701 7,701
8 8,937 8,937
9 10,235 10,235
10 11,572 11,572
11 12,949 12,949
12 14,368 14,368
13 15,829 15,829
14 17,333 17,333
15 18,883 18,883
16 $ 20,480 $ 20,480
17 22,124 22,124
18 23,818 23,818
19 25,563 25,563
20 27,360 27,360
25 37,186 37,186
30 48,577 48,577
35 61,782 61,782
40 77,091 77,091
45 94,838 94,838
50 115,411 115,411
CONTRACT SCHEDULE
INDIVIDUAL RETIREMENT ANNUITY PLAN (IRA) AND SIMPLIFIED EMPLOYEE PENSION (SEP)
PLAN
MAINTENANCE FEE:
The annual Maintenance Fee is $25. If the Contract's Current Value is
$10,000 or greater on the date the Maintenance Fee is to be deducted,
the Maintenance Fee will be $0.
SURRENDER FEE:
For each partial or full surrender within the first Contract Year, the
Surrender Fee will be 1% (one percent) of the amount being withdrawn.
For all subsequent years, the Surrender Fee will be 0% (zero percent).
No Surrender Fee is deducted from any portion of the Current Value
that is paid:
(a) At the death of the Annuitant before Annuity payments start;
(b) As a premium for an Annuity under this Contract;
(c) For a full surrender where the Current Value is equal to $2,500
or less and no surrenders have been taken from the Contract
within the prior 12 months;
(d) Due to an election of a Systematic Distribution Option; or
(e) In an amount equal to or less than 10% of the Current Value, as
part of the first partial surrender request in a calendar year to
a Contract Holder who is at least age 59 1/2. The Current Value
is calculated as of the date the partial surrender request is
received in Good Order at the Company's Home Office. When a
Systematic Distribution Option is elected, this provision
includes any amounts paid under that election. This provision
does not apply to full surrender requests.
CHARGES TO SEPARATE ACCOUNT:
A daily charge is deducted from any portion of the Current Value
allocated to the Separate Account. The deduction is the daily
equivalent of an annual percentage that will not exceed 1.50%. Current
Separate Account charges are 1.25% for the Annuity mortality risk, the
expense risk and the administrative charge. Charges are subject to
change annually, except for amounts that have been used to purchase an
Annuity. The daily charge does not include investment advisory fees
and other expenses charged by a Fund investment manager. These fees
are disclosed in the applicable Fund Prospectus.
The Company will notify the Contract Holder of any change on Separate
Account charges.
The Company will reduce the Separate Account charge by:
(a) 0.10% if ten years have elapsed since the initial Purchase
Payment has been made to this Contract and an Annuity Option has
not been elected; or
(b) 0.10% if the Current Value in the Contract is greater than
$250,000 on the day of the initial Purchase Payment or on each
subsequent anniversary.
INTROLL - N/REG - SCHED A
TABLE OF MINIMUM VALUES - FIXED ACCOUNT:
The values in the below Table only apply to annual Purchase Payments
of exactly $1,000 credited to the Fixed Account. Values would be
different for other Purchase Payment amounts, if partial surrenders
are made, or if the Company adds interest at a rate greater than the
Guaranteed Interest Rate - Fixed Account (see 3.02).
The Surrender Value assumes that a Purchase Payment of exactly $1,000
is credited to the Fixed Account at the 3% Guaranteed Interest Rate at
the beginning of each Contract Year. The Maintenance Fee and
applicable Surrender Fee are deducted.
TABLE OF MINIMUM FIXED ACCOUNT VALUES
PER $1,000 OF NET PURCHASE PAYMENTS
ALLOCATED TO THE FIXED ACCOUNT
END MINIMUM MINIMUM
OF CURRENT SURRENDER
YEAR VALUE VALUE
----------------------------------------
1 $ 1,005 $ 995
2 2,040 2,040
3 3,106 3,106
4 4,205 4,205
5 5,336 5,336
6 6,501 6,501
7 7,701 7,701
8 8,937 8,937
9 10,235 10,235
10 11,572 11,572
11 12,949 12,949
12 14,368 14,368
13 15,829 15,829
14 17,333 17,333
15 18,883 18,883
16 $ 20,480 $ 20,480
17 22,124 22,124
18 23,818 23,818
19 25,563 25,563
20 27,360 27,360
25 37,186 37,186
30 48,577 48,577
35 61,782 61,782
40 77,091 77,091
45 94,838 94,838
50 115,411 115,411
INTROLL - N/REG - SCHED A
CONTRACT SCHEDULE
INDIVIDUAL RETIREMENT ANNUITY (IRA) AND SIMPLIFIED EMPLOYEE PENSION (SEP) PLAN
MAINTENANCE FEE:
The annual Maintenance Fee is $25. If the Contract's Current Value is
$10,000 or greater on the date the Maintenance Fee is to be deducted,
the Maintenance Fee will be $0.
SURRENDER FEE:
For each partial or full surrender, the Surrender Fee will be
determined according to the number of completed Contract Years between
the date the first Net Purchase Payment is applied to the Company
predecessor contract and the date of surrender. The Surrender Fee will
be determined as follows:
COMPLETED CONTRACT YEARS SURRENDER FEE
Less than 2 years 6%
2 or more but less than 3 5%
3 or more but less than 4 4%
4 or more but less than 5 3%
5 or more but less than 6 2%
6 or more but less than 7 1%
7 or more years 0%
No Surrender Fee is deducted from any portion of the Current Value
that is paid:
(a) At the death of the Annuitant before Annuity payments start;
(b) As a premium for an Annuity under this Contract;
(c) For a full surrender where the Current Value is equal to $2,500
or less and no surrenders have been taken from the Contract
within the prior 12 months;
(d) Due to an election of a Systematic Distribution Option; or
(e) In an amount equal to or less than 10% of the Current Value, as
part of the first partial surrender request in a calendar year to
a Contract Holder who is at least age 59 1/2. The Current Value
is calculated as of the date the partial surrender request is
received in Good Order at the Company's Home Office. When a
Systematic Distribution Option is elected, this provision
includes any amounts paid under that election. This provision
does not apply to full surrender requests.
CHARGES TO SEPARATE ACCOUNT:
A daily charge is deducted from any portion of the Current Value
allocated to the Separate Account. The deduction is the daily
equivalent of an annual percentage that will not exceed 1.50%. Current
Separate Account charges are 1.25% for the Annuity mortality risk, the
expense risk and the administrative charge. Charges are subject to
change annually, except for amounts that have been used to purchase an
Annuity. The daily charge does not include investment advisory fees
and other expenses charged by a Fund investment manager. These fees
are disclosed in the applicable Fund Prospectus.
The Company will notify the Contract Holder of any change on Separate
Account charges.
The Company will reduce the Separate Account charge by:
(a) 0.10% if ten years have elapsed since the initial Purchase
Payment has been made to this Contract and an Annuity Option has
not been elected; or
(b) 0.10% if the Current Value in the Contract is greater than
$250,000 on the day of the initial Purchase Payment or on each
subsequent anniversary.
INTROLL - REG - SCHED C
TABLE OF MINIMUM VALUES - FIXED ACCOUNT:
The values in the below Table only apply to annual Purchase Payments
of exactly $1,000 credited to the Fixed Account. Values would be
different for other Purchase Payment amounts, if partial surrenders
are made, or if the Company adds interest at a rate greater than the
Guaranteed Interest Rate - Fixed Account (see 3.02).
The Surrender Value assumes that a Purchase Payment of exactly $1,000
is credited to the Fixed Account at the 3% Guaranteed Interest Rate at
the beginning of each Contract Year. The Maintenance Fee and
applicable Surrender Fee are deducted.
TABLE OF MINIMUM FIXED ACCOUNT VALUES
PER $1,000 OF NET PURCHASE PAYMENTS
ALLOCATED TO THE FIXED ACCOUNT
END MINIMUM MINIMUM
OF CURRENT SURRENDER
YEAR VALUE VALUE
----------------------------------------
1 $ 1,005 $ 945
2 2,040 1,938
3 3,106 2,982
4 4,205 4,078
5 5,336 5,229
6 6,501 6,436
7 7,701 7,701
8 8,937 8,937
9 10,235 10,235
10 11,572 11,572
11 12,949 12,949
12 14,368 14,368
13 15,829 15,829
14 17,333 17,333
15 18,883 18,883
16 $ 20,480 $ 20,480
17 22,124 22,124
18 23,818 23,818
19 25,563 25,563
20 27,360 27,360
25 37,186 37,186
30 48,577 48,577
35 61,782 61,782
40 77,091 77,091
45 94,838 94,838
50 115,411 115,411
INTROLL - REG - SCHED C
TABLE OF CONTENTS
PAGE
I. GENERAL DEFINITIONS
1.01 Annuitant 4
1.02 Annuity 4
1.03 Beneficiary 4
1.04 Code 4
1.05 Contract Holder 4
1.06 Contract Year 4
1.07 Fixed Account 4
1.08 Fixed Annuity 4
1.09 Fund(s) 4
1.10 General Account 4
1.11 Good Order 4
1.12 Guaranteed Accumulation Account (GAA) 4
1.13 ING GET Fund (GET Fund) 5
1.14 Maturity Date 5
1.15 Nonunitized Separate Account 5
1.16 Plan 5
1.17 Purchase Payment(s) 5
1.18 Separate Account 5
1.19 Valuation Period 5
1.20 Variable Annuity 6
II. GENERAL PROVISIONS
2.01 Change of Contract 6
2.02 Change of Fund(s) 6
2.03 Nonparticipating Contract 6
2.04 Payments 6
2.05 State Laws 6
2.06 Control of Contract 7
2.07 Designation of Beneficiary 7
2.08 Misstatements and Adjustments 7
2.09 Incontestability 7
2.10 Grace Period 7
2.11 Nonwaiver 7
2.12 Termination of Contract 7
2
PAGE
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
3.01 Net Purchase Payment(s) 7
3.02 Guaranteed Interest Rate - Fixed Account 8
3.03 Guaranteed Accumulation Account (GAA) 8
3.04 Maintenance Fee 9
3.05 Fund(s) Record Units - Separate Account 9
3.06 Net Return Factor(s) - Separate Account 10
3.07 Fund(s) Record Unit Value - Separate Account 10
3.08 Current Value 10
3.09 Transfer of Current Value from the Funds or GAA 10
3.10 Transfer of Current Value from the Fixed Account 11
3.11 Systematic Allocation 11
3.12 Notice to the Contract Holder 11
3.13 Sum Payable at Death (Before Annuity Payments Start) 11
3.14 Surrender Value 12
3.15 Payment of Surrender Value 12
3.16 Payment of Fixed Account Surrender Value 13
3.17 Payment of GAA Surrender Value 13
3.18 Reinstatement 14
3.19 Required Distribution to Contract Holder 14
3.20 Systematic Distribution Options 15
IV. ANNUITY PROVISIONS
4.01 Choices to be Made 16
4.02 Annuity Payments to Annuitant 16
4.03 Annuity Payments to Annuitant's Beneficiary 16
4.04 Terms of Annuity Options 16
4.05 Death of Annuitant/Beneficiary 17
4.06 Fund(s) Annuity Units - Separate Account 17
4.07 Fund(s) Annuity Unit Value - Separate Account 18
4.08 Annuity Options 18
3
I. GENERAL DEFINITIONS
1.01 ANNUITANT:
A person who receives a series of payments for life or a definite
period under this Contract. This term may also apply to the Contract
Xxxxxx's Beneficiary who elected an Annuity Option after the Contract
Xxxxxx's death before payments begin. The Annuitant cannot be changed.
1.02 ANNUITY:
Payment of an income:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.03 BENEFICIARY:
The individual or estate entitled to receive any payment upon the
death of the Contract Holder or Annuitant.
1.04 CODE:
The Internal Revenue Code of 1986, as it may be amended from time to
time.
1.05 CONTRACT HOLDER:
The person to whom this Contract is delivered.
1.06 CONTRACT YEAR:
The period of 12 months measured from the date the first Net Purchase
Payment is applied to this Contract or from any anniversary of such
date.
1.07 FIXED ACCOUNT:
An accumulation phase option with a guaranteed minimum interest rate
and guaranteed 12-month credited interest rate (see 3.02). The Fixed
Account is an obligation of our General Account.
1.08 FIXED ANNUITY:
An Annuity with payments which do not vary in amount.
1.09 FUND(S):
The open-end, registered, management investment companies (mutual
funds) made available by us under this Contract.
1.10 GENERAL ACCOUNT:
The account holding the assets of the Company, other than those assets
held in a Separate Account or a Nonunitized Separate Account.
1.11 GOOD ORDER:
A Contract Holder instruction to us is in Good Order when it utilizes
such medium as we may require and when it is given with such clarity
and completeness that we are not required to exercise any discretion
in carrying it out.
1.12 GUARANTEED ACCUMULATION ACCOUNT (GAA):
An accumulation phase option which guarantees a stipulated rate of
interest for a specified period of time.
4
1.13 ING GET FUND (GET FUND):
The ING GET Fund is a Fund option that may be available during the
accumulation phase. The GET Fund operates as a series offering. Each
series is a separate Fund. A GET Fund endorsement is incorporated as
part of this Contract.
1.14 MATURITY DATE:
The last day of a GAA guaranteed term or the last day of the guarantee
period of an ING GET Fund series.
1.15 NONUNITIZED SEPARATE ACCOUNT:
An account set up by the Company under Section 38a-433 of the
Connecticut General Statutes, that holds assets allocated to GAA.
There are no discrete units for this account. The Contract Holder 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
the Company. The assets of the Nonunitized Separate Account, to the
extent of reserves and other contract liabilities, may not be charged
with other Company liabilities.
1.16 PLAN:
The Simplified Employee Pension Plan named on the Contract cover, if
applicable. The Plan is not a part of the Contract. The Company is not
bound by the terms of the Plan.
1.17 PURCHASE PAYMENTS(S):
Payment(s) made to the Company. Purchase Payment(s) must be in cash
and the total of such contributions, other than rollover or employer
contributions made to a Code Section 408(k) Simplified Employee
Pension Plan, may not exceed such dollar amount as permitted under
Code Section 219(b)(5)(A) or any higher limit allowed by law for any
taxable year. We will maintain an asset source account for crediting
IRA contributions as described in Code Section 408(b). For a Xxxx XXX,
refer to the Xxxx XXX Contract endorsement.
Exceptions to the dollar maximum are:
(a) A Contract Holder aged 50 or older may make catch-up
contributions to the Contract over and above the maximum
contribution amount otherwise permitted each year to the extent
permitted under Code Section 219(b)(5)(B); and
(b) The Contract shall except rollover contributions of amounts that
are considered rollover eligible amounts in accordance with Code
Section 402(c)(4) from an eligible retirement plan described in
Code Section 402(c)(8)(B). Such rollover contributions may
include amounts that are not includible in income (pre-tax
contributions) or amounts that are not includible in income
(post-tax contributions), or both. The Contract shall not account
for pre-tax and post-tax contributions separately.
Contributions that exceed limitations may either be refunded to the
Contract Holder or applied to the following calendar year's
contribution, as permitted by the Code. The Company assumes no
responsibility for tax consequences that may result from excess
contributions that are not refunded to the Contract Holder.
1.18 SEPARATE ACCOUNT:
An account set up by the Company under Title 38a, Section 38a-433, of
the Connecticut General Statutes 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 the Company. We own the assets held in such an account and
are not a trustee as to such amounts held. These accounts generally
are not guaranteed and assets therein 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 Company
liabilities.
1.19 VALUATION PERIOD:
The date and time at which accumulation 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.
5
1.20 VARIABLE ANNUITY:
An Annuity with payments that vary with the net investment results of
one or more Funds under the Separate Account.
II. GENERAL PROVISIONS
2.01 CHANGE OF CONTRACT:
Except as provided below, only an authorized officer of the Company
may change the terms of this Contract. We will notify the Contract
Holder in writing at least 30 days before the effective date of any
change. Any change will not affect the amount or terms of any Annuity
which begins before the change. The following provisions of this
Contract will not be changed:
(a) Net Purchase Payment(s)
(b) Guaranteed Accumulation Account (GAA) Interest Rate
(c) Guaranteed Interest Rate - Fixed Account
(d) Net Return Factor(s) - Separate Account
(e) Current Value
(f) Surrender Value
(g) Fund(s) Annuity Unit Value - Separate Account
(h) Annuity Options
(i) Fixed Annuity minimum interest rate
(j) Maximum transfer, maintenance, or surrender fees.
This Contract may also be changed as required by federal or state law.
Any such change is subject to the prior approval of the New York
Insurance Department.
2.02 CHANGE OF FUND(S):
The Company, or the Separate Account may:
(a) Change the Fund(s) which may be invested in by the Separate
Account; and
(b) Replace the shares of any Fund(s) held in the Separate Account
with shares of any other Fund(s).
The assets of the Separate Account are separated by Fund. If the
shares of any Fund are no longer available for investment by the
Separate Account or if in our judgment further investment in such
shares should become inappropriate for the purpose of the Contract, we
may cease to make such Fund shares available for investment under the
Contract prospectively or substitute shares of another Fund for shares
already acquired. We may also, from time to time, add additional
funds. Any elimination, substitution or addition of Funds will be done
in accordance with applicable state and federal securities laws. We
reserve the right to substitute shares of another Fund for shares
already acquired without a proxy vote.
Such changes are subject to the approval of the New York Insurance
Department and we will notify the Contract Holder of any change.
2.03 NONPARTICIPATING CONTRACT:
The Contract Holder, Annuitant, or Beneficiaries will not have a right
to share in the earnings of the Company.
2.04 PAYMENTS:
We will make Annuity payments as and when due. We will make other
payments within 7 days of receipt at our Home Office of a written
claim for payment which is in Good Order, except as provided in
Section 3.16.
2.05 STATE LAWS:
This Contract complies with the laws of New York where it is
delivered. Any cash, death or Annuity payments are equal to or greater
than the minimum required by such laws. Annuity tables for legal
reserve valuation shall be as required by state law. Such tables may
be different from Annuity tables used to determine Annuity payments.
6
2.06 CONTROL OF CONTRACT:
The Contract is established for the exclusive benefit of the
individual Contract Holder or his or her Beneficiaries. All
nonforfeitable rights in this Contract rest with the Contract Holder,
who is entitled to all amounts held under this Contract. The Contract
Holder may make any choices allowed by this Contract. Choices made
under this Contract must be in writing or in a form satisfactory to
us. Until receipt of such choices at our Home Office, we may rely on
any previous choices made. This Contract is nontransferable and
nonassignable, except to the Company, or pursuant to a valid court
order, provided we are notified and served with respect to such order
pursuant to applicable law.
2.07 DESIGNATION OF BENEFICIARY:
The Contract Holder shall name the Beneficiary. The Beneficiary may be
changed at any time. Until receipt of a written request to change the
Beneficiary, we may rely upon the last named Beneficiary.
2.08 MISSTATEMENTS AND ADJUSTMENTS:
If the Company finds the age (or gender, if applicable) of any payee
to be misstated, the amount payable under the Annuity shall be
adjusted to reflect what the payments to us would have purchased
according to the correct age or gender. We reserve the right to
correct any informational or administrative errors and will credit or
charge interest using the current rates applicable during the
adjustment period. In no event would the interest rate exceed 6% per
annum.
2.09 INCONTESTABILITY:
The Company cannot cancel this Contract because of any error of fact
on the application. Statements made on the application are considered
representations and not warranties.
2.10 GRACE PERIOD:
This Contract will remain in effect even if Purchase Payments are not
continued, unless canceled by us pursuant to Section 2.12.
2.11 NONWAIVER:
The Company may, in its sole discretion, elect not to exercise a right
or reservation specified in this Contract. Such election shall not
constitute a waiver of the right to exercise such right or reservation
at any subsequent time.
2.12 TERMINATION OF CONTRACT:
Following the completion of three full Contract Years in which no
Purchase Payments have been made, the Company reserves the right to
pay the full Surrender Value to the Contract Holder if the Current
Value is less than $2,000. We will provide 90 days written notice and
such Surrender Value paid may not be reinstated.
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
3.01 NET PURCHASE PAYMENT(S):
The actual Purchase Payment(s) less any premium tax, where applicable.
Generally, the Company will deduct the premium tax when Annuity
benefits are purchased (see 4.01). If we determine that a premium tax
is due when Purchase Payment(s) are received, or at any other time, we
will deduct the tax at that time.
The Net Purchase Payment(s) may be credited among no more than 10 of
the following:
(a) The Fixed Account;
(b) The GAA; and
(c) The Fund(s) in which the Separate Account invests.
We must be told the percentage of the Net Purchase Payment(s) to be
applied to each investment above. Allocations to more than 10 such
investment options are not permitted under this Contract.
7
The investment allocation may be changed up to 12 times during any
calendar year. More than 12 such changes in any calendar year, if
permitted by us, may be subject to an additional fee of up to $10 for
each subsequent occurrence.
3.02 GUARANTEED INTEREST RATE - FIXED ACCOUNT:
The Company will add interest daily to all amounts held in the Fixed
Account. For each calendar year, we will set a minimum guaranteed
annual interest rate which will apply to amounts held in the Fixed
Account during the calendar year. This rate will never be less than an
annual rate of 3%. This one-year minimum guaranteed interest rate will
be established prior to each calendar year and will be made available
to the Contract Holder in advance of the calendar year. The Company,
in its discretion, may credit interest at a rate greater than this
one-year rate. We will make available to the Contract Holder the rate
currently being credited to amounts held in the Fixed Account.
3.03 GUARANTEED ACCUMULATION ACCOUNT (GAA):
GAA guarantees stipulated rates of interest for stated periods of time
(see (a) and (c) below). Amounts withdrawn before the end of a
Guaranteed Term may be subject to a Market Value Adjustment (MVA) (see
3.17(b)).
(a) DEPOSIT PERIOD - A calendar month, a calendar quarter, or any
other period of time up to one calendar year specified by us
during which Net Purchase Payment(s) and transfers are accepted
into GAA for one or more Guaranteed Terms.
(b) GUARANTEED TERM (TERM) - The period of time for interest rates
are guaranteed on Net Purchase Payment(s) and on transfers
allocated into a Deposit Period of GAA. Terms are offered at our
discretion for various lengths of time ranging up to and
including ten years.
(c) GUARANTEED TERM CLASSIFICATIONS - The grouping of Terms according
to their time to maturity. The following are the Classifications:
(1) Short Term: Terms of at least one month up to and including
3 years; or
(2) Long Term: Terms of greater than 3 years and up to and
including 10 years.
During a Deposit Period, we may make available one or more Terms
within a Classification. A toll-free telephone number will
provide information on current credited interest rates for new
Deposit Period terms. The Contract Holder has the option to
allocate Net Purchase Payment(s) and transfers into any or all of
the available Deposit Period Terms. If no specific direction is
given, Net Purchase Payment(s) and transfers will go into
available Terms on a pro rata basis within the Classification(s)
previously chosen by the Contract Holder. If there are no Terms
available in the Long Term Classification previously chosen, such
amounts will be allocated to the Term within the Short Term
Classification with the longest period.
(d) GUARANTEED GAA INTEREST RATES (GUARANTEED RATES) - We will
declare all interest rate(s) applicable to a specific Term prior
to the start of the Deposit Period for that Term. The rate(s) are
guaranteed by us for that Deposit Period and the ensuing Term and
are not based on the actual investment experience of the
underlying assets in GAA. The Guaranteed Rates are annual
effective yields. The interest is credited at a rate that will
produce the guaranteed annual effective yield over the period of
a year. No annual rate will be less than 3%.
(e) WITHDRAWALS - Amounts in GAA may be transferred to other
investment options at any time subject to certain limits (see
3.09). Amounts transferred prior to the Maturity Date of a Term
are subject to an MVA (see 3.17(b)). Amounts will be removed from
the elected Classification starting with the oldest Term still in
effect.
During the Deposit Period and the 90 days following the close of
the Deposit Period, any amounts applied to the GAA during that
Deposit Period may not be withdrawn unless due to:
(1) A full or partial surrender;
(2) A payment of a premium for an Annuity Option; or
(3) The Sum Payable at Death provision (see 3.13).
8
(f) MATURED TERM VALUE / REINVESTMENT - At least 18 calendar days
before a Term's Maturity Date, the Contract Holder will be mailed
a notice. This notice will contain the current Deposit Period's
Guaranteed Rate(s), Term(s) and a projected Matured Term Value.
The Matured Term Value may be surrendered or transferred on the
Term's Maturity Date without an MVA. If no specific direction is
given by the Contract Holder prior to the Maturity Date, each
Matured Term Value will be reinvested in a Term of the same
duration. In the event that a Term of the same duration is
unavailable, each Matured Term Value will automatically be
reinvested in the next shortest Term available in the same
Classification during the then current Deposit Period. If,
however, only one Term is available within the Classification,
then the Matured Term Value will automatically be reinvested in
that Term. If there are no Terms available in the Long Term
Classification previously chosen, the Matured Term Value will be
allocated to the Term within the Short Term Classification with
the longest period. Following the Maturity Date, the Contract
Holder will be mailed a confirmation statement. This statement
will state the Terms and Guaranteed Rates that will apply to the
reinvested Matured Term Value.
During the calendar month following the Term's Maturity Date, one
exception is allowed to the 90-day transfer restriction and MVA
under sub-paragraph (e) and Section 3.17(b). This exception is
applicable to each Matured Term Value plus any interest accrued
thereon, provided no part of the Matured Term Value was
transferred on the Maturity Date.
The Contract Holder may request that we transfer or surrender all
or part of the Matured Term Value plus any interest accrued
thereon from the GAA without an MVA. This provision only applies
to the first such request received during this period for any
Matured Term Value. The Matured Term Value plus any interest
accrued thereon may be transferred upon such request without an
MVA:
(1) To any other Terms of the GAA available in the current
Deposit Period;
(2) To the Fixed Account; or
(3) To any other allowable Fund(s).
If no such notification is given, the Matured Term Value will
remain subject to the terms and conditions of the new Term. All
Surrender and transfer requests will be processed as of the date
they are received in Good Order at our Home Office.
(g) CHANGES - The Company may change this Section 3.03, including
eliminating the GAA entirely, with 30 days advance written notice
to the Contract Holder. Any such change shall become effective
for Purchase Payments, transfers or reinvestments applied to any
new Term.
3.04 MAINTENANCE FEE:
The annual Maintenance Fee, if any (see Contract Schedule), will be
deducted from the Current Value on the "due date" which is the last
day of each Contract Year. If we maintain more than one asset source
account under the Contract, only one annual Maintenance Fee will be
deducted on the due date from the asset source account first
established, unless otherwise instructed by the Contract Holder.
At the option of the Contract Holder and the Company, all or part of
the Maintenance Fee may be paid to us separately. If this option is
requested in writing, a notice will be mailed to the Contract Holder
on or before the due date. If the Fee payment is not received by us by
the 30th calendar day following the due date, it will be deducted from
the Current Value. Unless the Contract Holder requests a reinstatement
of the annual notice, Maintenance Fees will continue to be deducted
for all subsequent Contract Years, where applicable.
3.05 FUND(S) RECORD UNITS - SEPARATE ACCOUNT:
The portion of the Net Purchase Payment(s) applied to a Separate
Account will determine the number of Fund(s) Record Units. This number
is equal to the Net Purchase Payment(s) applied to the Fund divided by
the Fund(s) Record Unit Value (see 3.07) for the Valuation Period in
which the Purchase Payment is received in Good Order.
9
3.06 NET RETURN FACTOR(S) - SEPARATE ACCOUNT:
The Net Return Factor(s) are used to compute all Separate Account
Record Units for any Fund(s).
The Net Return Factor for each Fund is equal to 1.0000000 plus the Net
Return Rate.
The Net Return Rate is equal to:
(a) The value of the shares of the Fund held by the Separate Account
at the end of a Valuation Period; minus
(b) The value of the shares of such Fund held by the Separate Account
at the start of the Valuation Period; plus or minus
(c) Taxes (or reserves for taxes) on the Separate Account (if any).
The results of steps (a) - (c) will then be divided by
(d) The total value of such Fund's Record Units and such Fund's
Annuity Units of the Separate Account (see 3.07 and 4.07) at the
start of the Valuation Period. The results of steps (a) - (d)
will then be reduced by
(e) A daily Separate Account charge at an annual rate as shown on the
Contract Schedule for Annuity mortality and expense risks, and a
daily administrative charge.
A Net Return Rate may be more or less than 0. The value of a share of
any Fund is equal to the net assets of the Fund divided by the number
of shares outstanding.
3.07 FUND(S) RECORD UNIT VALUE - SEPARATE ACCOUNT:
A Fund(s) Record Unit Value is computed by multiplying the Net Return
Factors for the current Valuation Period by the Fund(s) Record Unit
Value for the previous Period. The dollar value of a Fund(s) Record
Unit, Separate Account assets, and Variable Annuity payments may go up
or down due to investment gain or loss.
3.08 CURRENT VALUE:
The Current Value of this Contract is equal to:
(a) Any amounts in the Fixed Account, including Fixed Account
interest added by us; plus
(b) Any amounts in GAA, including GAA interest added by us; plus
(c) The value of all Separate Account Record Units.
Current Value does not include amounts used to purchase an Annuity
Option.
3.09 TRANSFER OF CURRENT VALUE FROM THE FUNDS OR GAA:
Before an Annuity Option is elected, all or any portion of the Current
Value held in a Fund or GAA may be transferred:
(a) To any other allowable Fund;
(b) To the Fixed Account; or
(c) To Terms of GAA available in the current Deposit Period.
Amounts in a specific GAA Term cannot be transferred to the Deposit
Period of another Term within the same Classification except at the
Term's maturity (see 3.03(f)). Amounts applied to Classifications of
GAA may not be transferred during the Deposit Period or for 90 days
after the close of the Deposit Period (see 3.03(e)). Transfers from
Terms of GAA are subject to the Withdrawal and MVA provisions (see
3.17).
Twelve transfers (excluding transfers from the GAA at the end of a
Guaranteed Term) can be made during a calendar year period. However,
only the Contract Holder may tell us to make such transfers. The
Company, in its sole discretion, may refuse to make such transfers at
the direction of any other person, even if such other person has been
authorized by the Contract Holder to make such transfers. More than 12
such transfers in any calendar year, if permitted by us, may be
subject to an additional fee in accordance with our existing
administrative practice.
10
3.10 TRANSFER OF CURRENT VALUE FROM THE FIXED ACCOUNT:
10% of that portion of the Current Value held in the Fixed Account as
of January 1 of a calendar year may be transferred to any of the other
Fund(s) or to GAA Term(s) available during the current Deposit Period.
Such transfer will be:
(a) Without charge;
(b) Allowed once per calendar year; and
(c) Not allowed under an Annuity Option.
We may, on a temporary basis, allow any larger percent to be
transferred.
Any remaining balance in the Fixed Account under the Contract may be
transferred by the Contract Holder in its entirety to any of the other
Fund(s), or to the GAA Term(s) available during the current Deposit
Period if:
(a) The Current Value in the Fixed Account under the Contract is
$2,000 or less; or
(b) The maximum percentage allowed was transferred from the Fixed
Account in each of the four consecutive prior calendar years and
no additional Net Purchase Payment(s) to the Contract have been
allocated to the Fixed Account during the same four consecutive
prior calendar year periods.
The Current Value of the Fixed Account, as used above, is the value
when the request is received at our Home Office in Good Order.
3.11 SYSTEMATIC ALLOCATION:
Systematic Allocation provides a dollar-cost-averaging option on Fund
transfers. Dollar-cost-averaging involves allocating amounts to one
Fund and having it reallocated to other Funds in substantially equal
monthly installments. The amount applied to a Systematic Allocation
must be no less than $100 per month over a period of at least 12
months. Systematic Allocations for a period longer than 24 months must
be consented to by the Company.
Systematic Allocations may not be made from, or to, the Fixed Account
or GAA. We reserve the right to limit the Funds that can be used to
pay out or receive Systematic Allocations.
Transfers made by reason of a Systematic Allocation will not reduce
the number of investment transfers that can be made pursuant to
Section 3.09. Unless otherwise consented to by the Company, no more
than one Systematic Allocation may be in effect. The Contract Holder
may revoke a Systematic Allocation at any time.
3.12 NOTICE TO THE CONTRACT HOLDER:
Before an Annuity Option is elected, we will notify the Contract
Holder each year of:
(a) The value of any amounts held in:
(1) The Fixed Account;
(2) The GAA; and
(3) The Fund(s) for the Separate Account.
(b) The number of any Fund(s) Record Units; and
(c) The Fund(s) Record Unit Value.
Such number or values will be as of a date no more than 60 calendar
days before the date of the notice.
The Company, as issuer of this Simplified Employee Pension or
Individual Retirement Annuity Contract, will make any reports required
by federal law.
3.13 SUM PAYABLE AT DEATH (BEFORE ANNUITY PAYMENTS START):
The Company will pay the Current Value to the Beneficiary when:
(a) The Contract Holder dies before Annuity payments start; and
(b) The notice of death is received in Good Order at our Home Office.
11
The sum payable will be the Current Value on the date when the notice
is received in Good Order at our Home Office. The amount paid from the
Fixed Account will not be less than the Net Purchase Payment(s)
allocated to the Fixed Account plus interest (less any prior
transfers, (see 3.10), surrenders, Maintenance Fees, or amounts used
to purchase Annuity Options). The Beneficiary may choose to apply any
sum under an Annuity Option (see 4.08), subject to any other terms and
conditions of this Contract, or to receive a lump sum payment.
Prior to any election, or until amounts must otherwise be distributed,
the Beneficiary assumes all nonforfeitable rights under this Contract.
If the Beneficiary is the Contract Xxxxxx's surviving spouse, the
first Annuity payment or the lump sum payment may be deferred to a
date not later than December 31 of the year in which the Contract
Holder would have attained age 70 1/2 or such later date as may be
allowed under federal law or regulations. The spouse may choose to
treat this Contract as his or her own.
If the Beneficiary is not the Contract Xxxxxx's surviving spouse, all
of the Current Value must either be applied to an Annuity Option by
December 31st of the year following the year of the Contract Xxxxxx's
death or be paid to the Beneficiary by December 31st of the year
containing the fifth anniversary of the Contract Xxxxxx's date of
death.
In no event may payments to any Beneficiary under an Annuity Option
extend beyond the life of the Beneficiary or any period certain
greater than the Beneficiary's life expectancy. If no Beneficiary
exists, the payment will be made to the estate of the Contract Holder.
3.14 SURRENDER VALUE:
The Company will reduce the amount payable upon surrender of any
portion of the Current Value by a Surrender Fee. The Surrender Fee
will be in accordance with the Surrender Fee table in the Contract
Schedule.
The Fee on a total surrender of the Contract will not exceed 8.5% of
the actual Purchase Payment(s) made to the Contract.
We are required by law to report any surrender to the Internal Revenue
Service. Surrenders are reported as fully taxable to the Contract
Holder. Determination of cost basis from nondeductible IRA
contributions as permitted by the Code shall be the responsibility of
the Contract Holder.
If a lump sum payment is elected in lieu of a Systematic Distribution
Option or an Annuity Option, it must be paid no later than the April 1
of the calendar year following the year in which the Contract Holder
turns age 70 1/2 or such later date as may be allowed under federal
law or regulations. For a Xxxx XXX, refer to the Xxxx XXX Contract
endorsement.
The Contract Holder or Beneficiary must notify us in writing when a
lump sum payment, Systematic Distribution Option payments or Annuity
payments are to commence.
If the Contract Holder or Beneficiary does not request commencement of
benefits as described above, we will not be responsible for compliance
with the Code Section 401(a)(9) minimum distribution requirements and
for any adverse tax consequences that may result.
3.15 PAYMENT OF SURRENDER VALUE:
The Contract Holder may surrender this Contract for its Current Value.
At the time of a Contract Holder full or partial surrender request,
the Current Value will be adjusted by the following items in the order
presented:
(a) the GAA MVA, as applicable (see 3.17(b));
(b) the Maintenance Fee, as applicable (see 3.04); and
(c) the Surrender Fee, as applicable (see 3.14).
Full and partial surrenders are satisfied by withdrawing amounts from
each of the Fund(s), the Fixed Account, the GAA Short Term
Classification and the GAA Long Term Classification on a pro rata
basis. However, the Contract Holder may specify a particular order in
which investment options will be liquidated in order to satisfy a
partial surrender request.
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3.16 PAYMENT OF FIXED ACCOUNT SURRENDER VALUE:
Under certain emergency conditions, we may defer payment from the
Fixed Account or General Account.
(a) For a period of up to 6 months (unless not allowed by state law);
or
(b) As provided by federal securities law or other federal law
applicable in such circumstances.
3.17 PAYMENT OF GAA SURRENDER VALUE:
Amounts withdrawn prior to the Maturity Date of a Term may be subject
to an MVA (see (b) below).
(a) For purposes of withdrawals, Terms within the GAA Short Term and
Long Term Classifications are considered as two separate
investment options. Also, amounts will be removed within a GAA
Classification starting with the oldest Term still in effect.
(b) Market Value Adjustment (MVA) - There will be an MVA for a
withdrawal from the GAA before the end of a Term except for
withdrawals made pursuant to the election of a Systematic
Distribution Option (see 3.20) where the Contract Holder is age
70 1/2 or any later age when minimum distributions are required
by the Code. The amount of the withdrawal will be adjusted to a
market value amount as described below.
The MVA reflects the changes in market interest rates since the
beginning of the Deposit Period. The market value adjustment amount
(the dollar amount of the MVA) can be positive or negative. The total
of all market value adjustment amounts from every Guaranteed Term
affected by the withdrawal is called the aggregate market value
adjustment amount (aggregate MVA amount). This aggregate MVA amount
may be a positive or negative figure, and therefore, may increase or
decrease the actual amount withdrawn from the GAA to satisfy a
withdrawal.
The market value adjusted amount will be equal to the amount withdrawn
multiplied by the following ratio:
(1 + I) X/365
--------
(1 + j) x/365
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.
Each business day, THE WALL STREET JOURNAL publishes the prices of all
outstanding U.S. Treasury issues. In this display, Treasury Notes are
identified by the interest rate at which they were issued and the
month and year in which they mature. The final figure shown for a
given Treasury issue is its yield to maturity as of the preceding
business day. These yields determine the Current Yield and the Deposit
Period Yield in the market value adjustment calculation.
The Deposit Period Yield will be determined as follows:
- At the close of the last business day of each week of the Deposit
Period, a yield will be computed as the average of the yields on
that day of U.S. Treasury Notes which mature in the last three
months of the Guaranteed Term. (The average yield is calculated
by summing the yields of the U.S. Treasury Notes selected and
dividing that sum by the number of U.S. Treasury Notes selected.)
- The Deposit Period Yield is the average of those yields for the
Deposit Period. If withdrawal is made prior to the close of the
Deposit Period, it is the average of those yields on each week
preceding withdrawal. (The average is calculated by summing the
week by week yields included and dividing that sum by the number
of week by week yields included.)
The Current Yield is the average of the yields on the last business
day of the week preceding withdrawal on the same U.S. Treasury Notes
included in the Deposit Period Yield. (The average yield is calculated
by summing the yields of the U.S. Treasury Notes selected and dividing
that sum by the number of U.S. Treasury Notes selected.)
In the event that no U.S. Treasury Notes which mature in the last
three months of the Guaranteed Term exist, the Company reserves the
right to use the U.S. Treasury Notes that mature in a following
quarter.
13
In the event the Treasury Note index is no longer available, a
suitable replacement index will be utilized, subject to the approval
of the New York Superintendent of Insurance.
Surrenders and transfers made in connection with the Sum Payable at
Death provision (see 3.13), or in connection with Disability as
defined below, within six months of the date of the Contract Holder's
death or termination of employment due to disability, will be the
greater of:
- The aggregate MVA amount which is the sum of all market value
adjusted amounts calculated due to a withdrawal of amounts (for
surrender or transfer) from Terms prior to the end of those
Terms. The aggregate MVA may be either positive or negative; or
- The applicable portion of the Current Value in the GAA.
After the six month period, the surrender or transfer will be the
aggregate MVA amount (i.e., including all MVAs).
"Disability", for purposes of this Section 3.17, means the inability
to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be
expected to result in death or to be of long-continued and indefinite
duration and can be expected to be for life.
The greater of the aggregate MVA amount or the applicable portion of
the Current Value in the GAA is applied to amounts withdrawn from the
GAA for payment of a premium under Annuity Options 3 or 4 (see 4.08).
3.18 REINSTATEMENT:
All or a portion of the proceeds of a full surrender of this Contract
may be reinvested within 30 days after the surrender if allowed by
law. Any Surrender Fee charged at the time of surrender on the amount
being reinvested will be included in the reinstatement. Any GAA Market
Value Adjustment deducted from a surrender will not be included in the
reinstatement. Amounts will be reinstated among the Fixed Account, the
Separate Account Fund(s) and the GAA in the same proportion as they
were at the time of surrender. The number of Record Units reinstated
will be based on the Record Unit Value(s) next computed after receipt
at our Home Office of the reinstatement request and the amount to be
reinvested. Amounts will be reinstated to the GAA current Deposit
Period, as applicable.
Any Maintenance Fee which falls due after the surrender and before the
reinstatement will be deducted from the amount reinstated.
Reinstatement is permitted only once.
3.19 REQUIRED DISTRIBUTION TO CONTRACT HOLDER:
(a) General Requirement: Notwithstanding any provision of this
Contract to the contrary, the distribution of the Contract
Holder's Current Value shall be made in accordance with the
minimum distribution requirements of Code Section 401(a)(9) as
amended, and any applicable regulation thereunder including
Section 408(a)(6) or Section 408(b)(3) and also including the
incidental death benefit provisions of Section 1.401(a)(9)-2 of
the proposed. For a Xxxx XXX, refer to the Xxxx XXX Contract
endorsement.
(b) Minimum Payments to Contract Holder: The Contract Holder's entire
Current Value in the Contract must be distributed, or begin to be
distributed, by the Contract Holder's required beginning date,
which is the April 1 following the calendar year in which the
Contract Holder turns age 70 1/2. For each succeeding year, a
distribution must be made on or before December 31. By the
required beginning date, the Contract Holder may elect to have
the balance under the Contract distributed in one of the
following forms according to the terms of the Contract:
(1) a lump sum payment;
(2) equal or substantially equal payments over the life of the
Contract Holder;
(3) equal or substantially equal payments over the lives of the
Contract Xxxxxx and his or her designated Beneficiary;
(4) equal or substantially equal payments over a specified
period that may not be longer than the Contract Holder's
life expectancy;
14
(5) equal or substantially equal payments over a specified
period that may not be longer than the joint life and last
survivor expectancy of the Contract Xxxxxx and his or her
designated Beneficiary.
(c) Minimum Death Benefits: If the Contract Holder dies before his or
her entire Current Value is distributed, the entire remaining
balance will be distributed as follows:
(1) If the Contract Holder dies on or after the date
distributions have begun under paragraph (b) above, the
entire remaining balance must be distributed at least as
rapidly as provided under paragraph (b).
(2) If the Contract Holder dies before distributions have begun
under paragraph (b) above, the entire remaining balance must
be distributed as elected by the Contract Holder or, if the
Contract Holder has not so elected, as elected by the
Beneficiary or Beneficiaries, as follows:
(i) by December 31st of the year containing the fifth
anniversary of the Contract Xxxxxx's death; or
(ii) in equal or substantially equal payments over the
life or life expectancy of the designated
Beneficiary or Beneficiaries starting by December
31st of the year following the year of the Contract
Xxxxxx's death. If, however, the Beneficiary is the
Contract Xxxxxx's surviving spouse, then this
distribution is not required to begin before
December 31st of the year in which the Contract
Holder would have turned 70 1/2.
(d) Life Expectancies: Unless an Annuity Option has been elected by
the Contract Holder prior to the commencement of distributions in
accordance with paragraph (b) above (or, if applicable, by the
surviving spouse where the Contract Holder dies before
distributions have commenced), or unless a Systematic
Distribution Option has been elected by the Contract Holder (see
3.20), life expectancies of the Contract Holder or spouse
Beneficiary shall be recalculated annually for purposes of
distributions under paragraphs (b) and (c) above. An election not
to recalculate shall be irrevocable and shall apply to all
subsequent years. The life expectancy of a non-spouse Beneficiary
shall not be recalculated.
Life expectancy is computed by use of the expected return multiples in
Tables V and VI of Section 1.72-9 of the Income Tax Regulations.
(e) Multiple IRAs: An individual may satisfy the minimum distribution
requirements under Sections 408(a)(6) and 408(b)(3) of the Code
by receiving a distribution from one IRA that is equal to the
amount required to satisfy the minimum distribution requirements
for two or more IRAs. For this purpose, the Contract Holder of
two or more IRAs may use the "alternative method" described in
Notice 88-38, 1988-1 C.B. 524, to satisfy the minimum
distribution requirements described above.
3.20 SYSTEMATIC DISTRIBUTION OPTIONS:
Without further amendment of this Contract, the Company may, from time
to time, establish and make available for election by the Contract
Holder, one or more Systematic Distribution Options (SDO). When an SDO
election is in effect as to any Contract, automatic withdrawals will
be made from the Contract. No Surrender Fees apply to such automatic
withdrawals made under an SDO, however a GAA market value adjustment
may apply (see 3.17(b).
(a) Any SDO established by the Company will be made available among
similarly situated contracts uniformly and on the basis of
objective criteria cocsistently applied.
(b) The availability of any SDO may be limited by terms and
conditions applicable to the election of such SDO; and
(c) We may discontinue the availability of an SDO at any time. Except
to the extent required in order to comply with applicable law,
any such discontinuance shall not apply to any contracts as to
which an election under such SDO is in effect at the time of such
SDO's discontinuance.
15
IV. ANNUITY PROVISIONS
4.01 CHOICES TO BE MADE:
The Contract Holder may tell the Company to apply any portion of the
Current Value (minus any premium tax) for an Annuity under Option 2,
3, or 4 (see 4.08). This election must be made in a form acceptable to
us within the 90 day period ending on the date payments are to begin.
A Contract Holder may revoke an election at any time prior to the date
the payments start. In lieu of the election of an Annuity, the
Contract Holder may tell us to make a lump sum payment.
When an Annuity Option is chosen, we must also be told if payments are
to be made other than monthly and whether to pay:
(a) A Fixed Annuity using the General Account;
(b) A Variable Annuity using any of the Fund(s) made available by us
for Annuity purposes; or
(c) A combination of (a) and (b).
If a Fixed Annuity is chosen, we will add interest daily at an annual
rate no less than 3%. We may add interest daily at any higher rate.
If a Variable Annuity is chosen, an Assumed Annual Net Return Rate of
5% may be elected. If not elected, we will use an Assumed Annual Net
Return Rate of 3.5%.
4.02 ANNUITY PAYMENTS TO ANNUITANT:
In no event may any payments to the Annuitant under any Annuity Option
extend beyond:
(a) The life of the Annuitant;
(b) The lives of the Annuitant and the Beneficiary;
(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 Beneficiary as determined according to
regulations under Code Section 401(a)(9). Notwithstanding any
other distribution option elected under this Contract, Annuity
payments shall commence at the Contract Xxxxxx's 85th birthday.
4.03 ANNUITY PAYMENTS TO ANNUITANT'S BENEFICIARY:
In no event may payments to the Beneficiary under any Annuity Option
extend beyond:
(a) The life of the Beneficiary; or
(b) Any certain period greater than the Beneficiary's life expectancy
as determined by regulations under Code Section 401(a)(9).
4.04 TERMS OF ANNUITY OPTIONS:
(a) When payments start, the age of the Annuitant plus the number of
years, if any, for which payments are guaranteed must not exceed
95.
(b) An Annuity Option may not be elected if the first payment would
be less than $50 per month or if the total payments in a year
would be less than $250 (less if required by state law). We
reserve the right to increase the minimum first Annuity payment
amount and the annual minimum Annuity payment amount based upon
increases reflected in the Consumer Price Index-Urban, (CPI-U)
since July 1, 1993.
(c) If a Fixed Annuity under Option 2, 3 or 4 is chosen, we will use
the applicable current settlement rate to pay the Annuity
benefit. The Annuity benefit at the time of commencement will not
be less than would be provided by the application of an amount to
purchase any single consideration immediate contract offered by
the Company, at that time, to the same class of annuitants. Such
amount shall be the present value of the paid-up Annuity benefit
under this Contract.
16
(d) For purposes of calculating the guaranteed first payment of a
Variable Annuity or the payments for a Fixed Annuity, the
Annuitant's and second Annuitant's adjusted age will be used. The
Annuitant's and second Xxxxxxxxx's adjusted age is his or her age
as of the birthday closest to the Annuity commencement date
reduced by two years for Annuity commencement dates occurring
during the period of time from January 1, 2000 through December
31, 2009. The Annuitant's and second Annuitant's age will be
reduced by one additional year for Annuity commencement dates
occurring in each succeeding decade.
(e) Assumed Annual Net Return Rate is the interest rate used to
determine the amount of the first Annuity payment under a
Variable Annuity. The Separate Account must earn this rate plus
enough to cover the mortality and expense risk charges and, if
applicable, any administrative charge if future Variable Annuity
payments are to remain level.
(f) Once elected, Annuity payments cannot be commuted to a lump sum
except for Variable Annuity payments under Option 2 (see 4.08).
The life expectancy of the Annuitant or the Annuitant and second
Annuitant shall be irrevocable upon the election of an Annuity
Option.
(g) The Annuity purchase rates for Options 3 and 4 are based on
mortality from 1983 Table a. The rates differ by gender for an
IRA plan. The rates do not differ by gender for a SEP Plan. Rates
for ages not shown will be provided on request and will be
computed on a basis consistent with the rates shown.
4.05 DEATH OF ANNUITANT/BENEFICIARY:
(a) When the Annuitant dies under Options 2 or 3, or both the
Annuitant and second Annuitant die under Option 4(d), the present
value of any remaining guaranteed payments will be paid in one
sum to the Beneficiary, or upon election by the Beneficiary, any
remaining payments will continue to the Beneficiary.
If Option 4 has been elected and the Annuitant dies, the
remaining payments will continue to the second Annuitant as
successor xxxxx. The second Annuitant does not have the right to
change the Beneficiary upon the Contract Xxxxxx's death.
(b) If there is no Beneficiary under Option 2, 3 or 4, the present
value of any remaining payments will be paid in one sum to the
estate of the Annuitant.
(c) If the Beneficiary designated under Option 1 dies, the amount
held plus accrued interest will be paid in one sum to a successor
Beneficiary, if any, named by the designated Beneficiary. If
there is no successor Beneficiary, the lump sum will be paid to
the designated Beneficiary's estate.
(d) If the Beneficiary dies while receiving Annuity payments, the
present value of any remaining guaranteed payments will be paid
in one sum to the successor Beneficiary, or upon election by the
successor Beneficiary, any remaining payments will continue to
the successor Beneficiary. If no successor Beneficiary has been
designated, the present value of any remaining guaranteed
payments will be paid in one sum to the Beneficiary's estate.
(e) The present value will be determined as of the Valuation Period
in which proof of death acceptable to us and a request for
payment is received in Good Order at our Home Office. The
interest rate used to determine the first payment will be used to
calculate the present value.
4.06 FUND(S) ANNUITY UNITS - SEPARATE ACCOUNT:
The number of each Fund's Annuity Units is based on the amount of the
first Variable Annuity payment which is equal to:
(a) The portion of the Current Value (minus any premium tax) applied
to pay a Variable Annuity; divided by
(b) 1,000; multiplied by
(c) The payment rate for the Option chosen.
17
Such amount, or portion, of the variable payment will be divided by
the appropriate Fund(s) Annuity Unit Value (see 4.07) on the tenth
Valuation Period before the due date of the first payment to determine
the number of each Fund(s) Annuity Units. The number of each Fund(s)
Annuity Units remains fixed. 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(s) Annuity Unit Value on the
tenth Valuation Period prior to the due date of the payment is used.
4.07 FUND(S) ANNUITY UNIT VALUE - SEPARATE ACCOUNT:
For any Valuation Period, a Fund(s) Annuity Unit Value is equal to:
(a) The Value for the previous Period; multiplied by
(b) The Net Return Factor(s) (see 3.06) for the Period; multiplied by
(c) A factor to reflect the Assumed Annual Net Return Rate.
The daily factor for 3.5% per year is .9999058; for 5% per year it is
.9998663.
The dollar value of a Fund's Annuity Unit Values and payments may go
up or down due to investment gain or loss.
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:
- 4.75% on an annual basis plus an annual return of up to 0.25%
needed to offset the administrative charge set at the time
Annuity payments commence if an Assumed Annual Net Return Rate of
3.5% is chosen; or
- 6.25% on an annual basis plus an annual return of up to 0.25%
needed to offset the administrative charge set at the time
Annuity payments commence if an Assumed Annual Net Return Rate of
5% is chosen.
Payments shall not be changed due to changes in the mortality or
expense results or administrative charges.
4.08 ANNUITY OPTIONS:
OPTION 1 - PAYMENT OF INTEREST ON SUM LEFT WITH THE COMPANY - This
Option may be used only by the Beneficiary when the Annuitant dies
before we have started paying an Annuity. A portion or all of the Sum
Payable at Death (see 3.13) may be held under this Option and will be
held in the General Account of the Company, at interest (see 4.01).
The Beneficiary may later tell us to:
(a) Pay all or any portion of the sum held by us as a lump sum
payment; or
(b) Apply all or any portion of the sum held by us to any Annuity
Option below.
If the Beneficiary is not the Contract Xxxxxx's surviving spouse and
elects that some or all of the full Sum Payable at Death is to be held
under this Option, the Beneficiary must tell us to pay the full sum
held under this Option by December 31st of the year containing the
fifth anniversary of the Contract Xxxxxx's death.
OPTION 2 - PAYMENTS FOR A STATED PERIOD OF TIME - An Annuity will be
paid for the number of years chosen. The number of years must be at
least 5 and not more than 30. If payments for this Option are made
under a Variable Annuity, the present value of any remaining payments
may be withdrawn at any time. If a withdrawal is requested within 5
years after the start of payments, the withdrawal may be reduced by a
Surrender Fee (see 3.14).
OPTION 3 - LIFE INCOME FOR ONE PAYEE - An Annuity with payments for
the life of the Annuitant. If this option is elected, a choice must be
made of:
(a) Payments cease at the death of the Annuitant; or
(b) Payments are guaranteed for a period of 60, 120, 180 or 240
months.
18
OPTION 4 - LIFE INCOME FOR TWO PAYEES - An Annuity with payments for
the life of the Annuitant and a second Annuitant, one of whom is
designated as the primary Annuitant. Payments continue until both
Xxxxxxxxxx have died. If this Option is elected, a choice must be made
of:
(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 for a minimum of 120 months; or
(e) 100% of the payment amount to continue at the death of the
designated second Annuitant and 50% of the payment amount to
continue at the death of the primary Annuitant.
Other Options - The Company may make other options available to the
Contract Holder or Beneficiary as allowed by the laws of New York
where this Contract is delivered. The Contract Holder or Beneficiary
may elect to have the Current Value applied to a separate Company
Single Premium Immediate Annuity (SPIA) contract.
19
OPTION 2
PAYMENTS FOR A STATED PERIOD OF TIME
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 3.0%
GUARANTEED MONTHLY QUATERLY SEMI-ANNUAL ANNUAL
YEARS RATE PAYMENT PAYMNET PAYMNET PAYMENT
---------------------------------------------------------------------------------------------
5 3.00% $ 17.91 $ 53.59 $ 106.78 $ 211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
20
OPTION 3
LIFE INCOME
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 3.0%
PAYMENTS GUARANTEED FOR A STATED PERIOD OF MONTHS
ADJUSTED NONE 60 120 180 240
AGE OF --------------------------------------------------------------------------------------------------------
ANNUITANT MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
--------------------------------------------------------------------------------------------------------------------------
50 $ 4.27 $ 3.90 $ 4.26 $ 3.90 $ 4.22 $ 3.89 $ 4.17 $ 3.86 $ 4.08 $ 3.82
51 4.34 3.97 4.33 3.96 4.30 3.95 4.23 3.92 4.14 3.88
52 4.43 4.03 4.41 4.03 4.37 4.01 4.30 3.98 4.20 3.93
53 4.51 4.10 4.50 4.10 4.45 4.08 4.37 4.04 4.26 3.99
54 4.60 4.18 4.59 4.17 4.54 4.15 4.45 4.11 4.32 4.04
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.39 4.11
56 4.80 4.34 4.78 4.33 4.72 4.30 4.61 4.25 4.45 4.17
57 4.91 4.42 4.89 4.41 4.82 4.38 4.69 4.32 4.51 4.23
58 5.03 4.52 5.00 4.51 4.92 4.47 4.78 4.40 4.58 4.30
59 5.15 4.61 5.12 4.60 5.03 4.56 4.87 4.48 4.65 4.37
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.71 4.44
61 5.43 4.83 5.39 4.81 5.27 4.76 5.06 4.66 4.78 4.51
62 5.58 4.95 5.53 4.93 5.39 4.87 5.16 4.75 4.84 4.58
63 5.74 5.08 5.69 5.05 5.53 4.99 5.26 4.85 4.90 4.65
64 5.91 5.21 5.85 5.18 5.66 5.10 5.36 4.95 4.96 4.72
65 6.10 5.36 6.03 5.32 5.81 5.22 5.46 5.05 5.02 4.79
66 6.30 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.08 4.86
67 6.51 5.67 6.41 5.63 6.12 5.50 5.66 5.26 5.13 4.93
68 6.73 5.85 6.62 5.80 6.28 5.65 5.77 5.37 5.18 5.00
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 5.23 5.06
70 7.23 6.25 7.07 6.18 6.61 5.97 5.96 5.60 5.27 5.12
71 7.51 6.47 7.32 6.39 6.79 6.14 6.05 5.71 5.31 5.18
72 7.80 6.71 7.58 6.62 6.96 6.32 6.14 5.83 5.34 5.23
73 8.12 6.98 7.85 6.86 7.14 6.50 6.23 5.94 5.37 5.28
74 8.46 7.26 8.14 7.12 7.32 6.69 6.31 6.04 5.40 5.32
75 8.82 7.57 8.45 7.40 7.50 6.89 6.38 6.14 5.42 5.35
RATES ARE BASED ON MORTALITY FROM 1983 TABLE a.
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.
21
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS MALE AND SECOND ANNUITANT IS FEMALE)
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
ADJUSTED AGES
----------------------
SECOND
ANNUITANT ANNUITANT OPTION 4a OPTION 4b OPTION 4c OPTION 4d OPTION 4e
---------------------------------------------------------------------------------------
55 50 $ 3.69 $ 4.05 $ 4.27 $ 3.69 $ 4.13
55 55 3.88 4.25 4.47 3.87 4.25
55 60 3.06 4.47 4.71 4.06 4.36
60 55 3.99 4.44 4.71 3.98 4.55
60 60 4.24 4.71 4.99 4.23 4.70
60 65 4.49 5.01 5.32 4.48 4.85
65 60 4.38 4.97 5.32 4.38 5.10
65 65 4.72 5.33 5.70 4.71 5.32
65 70 5.07 5.75 6.17 5.05 5.54
70 65 4.93 5.68 6.15 4.91 5.86
70 70 5.40 6.21 6.70 5.36 6.18
70 75 5.89 6.82 7.40 5.81 6.49
75 70 5.69 6.68 7.32 5.62 6.92
75 75 6.37 7.45 8.15 6.23 7.40
75 80 7.07 8.34 9.16 6.78 7.85
RATES ARE BASED ON MORTALITY FROM 1983 TABLE a.
THE RATES ASSUME THE ANNUITANT IS MALE AND THE SECOND ANNUITANT IS FEMALE.
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.
22
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS FEMALE AND SECOND ANNUITANT IS MALE)
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
ADJUSTED AGES
----------------------
SECOND
ANNUITANT ANNUITANT OPTION 4a OPTION 4b OPTION 4c OPTION 4d OPTION 4e
---------------------------------------------------------------------------------------
55 50 $ 3.75 $ 4.07 $ 4.26 $ 3.75 $ 3.98
55 55 3.88 4.25 4.47 3.87 4.06
55 60 3.99 4.44 4.71 3.98 4.12
60 55 4.06 4.47 4.71 4.06 4.37
60 60 4.24 4.71 4.99 4.23 4.47
60 65 4.38 4.97 5.32 4.38 4.54
65 60 4.49 5.01 5.32 4.48 4.89
65 65 4.72 5.33 5.70 4.71 5.02
65 70 4.93 5.68 6.15 4.91 5.14
70 65 5.07 5.75 6.17 5.05 5.60
70 70 5.40 6.21 6.70 5.36 5.79
70 75 5.69 6.68 7.32 5.62 5.96
75 70 5.89 6.83 7.40 5.81 6.63
75 75 6.37 7.45 8.15 6.23 6.92
75 80 6.78 8.11 8.99 6.54 7.15
RATES ARE BASED ON MORTALITY FROM 1983 TABLE a.
THE RATES ASSUME THE ANNUITANT IS FEMALE AND THE SECOND ANNUITANT IS MALE.
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 2
PAYMENTS FOR A STATED PERIOD OF TIME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
GUARANTEED MONTHLY QUATERLY SEMI-ANNUAL ANNUAL
YEARS RATE PAYMENT PAYMNET PAYMNET PAYMENT
---------------------------------------------------------------------------------------------
5 3.50% $ 18.12 $ 54.19 $ 107.92 $ 213.99
6 3.50% 15.35 45.92 91.44 181.32
7 3.50% 13.38 40.01 79.69 158.01
8 3.50% 11.90 35.59 70.88 140.56
9 3.50% 10.75 32.16 64.05 127.00
10 3.50% 9.83 29.42 58.59 116.18
11 3.50% 9.09 27.18 54.13 107.34
12 3.50% 8.46 25.32 50.42 99.98
13 3.50% 7.94 23.75 47.29 93.78
14 3.50% 7.49 22.40 44.62 88.47
15 3.50% 7.10 21.24 42.31 83.89
16 3.50% 6.76 20.23 40.29 79.89
17 3.50% 6.47 19.34 38.51 76.37
18 3.50% 6.20 18.55 36.94 73.25
19 3.50% 5.97 17.85 35.54 70.47
20 3.50% 5.75 17.22 34.28 67.98
21 3.50% 5.56 16.65 33.15 65.74
22 3.50% 5.39 16.13 32.13 63.70
23 3.50% 5.24 15.66 31.19 61.85
24 3.50% 5.09 15.24 30.34 60.17
25 3.50% 4.96 14.85 29.56 58.62
26 3.50% 4.84 14.49 28.85 57.20
27 3.50% 4.73 14.15 28.19 55.90
28 3.50% 4.63 13.85 27.58 54.69
29 3.50% 4.53 13.57 27.02 53.57
30 3.50% 4.45 13.30 26.49 52.53
24
OPTION 2
PAYMENTS FOR A STATED PERIOD OF TIME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
GUARANTEED MONTHLY QUATERLY SEMI-ANNUAL ANNUAL
YEARS RATE PAYMENT PAYMNET PAYMNET PAYMENT
---------------------------------------------------------------------------------------------
5 5.00% $ 18.74 $ 56.00 $ 111.33 $ 219.98
6 5.00% 15.99 47.77 94.96 187.64
7 5.00% 14.02 41.90 83.30 164.59
8 5.00% 12.56 37.52 74.58 147.35
9 5.00% 11.42 34.11 67.81 133.99
10 5.00% 10.51 31.40 62.42 123.34
11 5.00% 9.77 29.19 58.03 114.66
12 5.00% 9.16 27.36 54.38 107.45
13 5.00% 8.64 25.81 51.31 101.39
14 5.00% 8.20 24.50 48.69 96.21
15 5.00% 7.82 23.36 46.44 91.75
16 5.00% 7.49 22.37 44.47 87.88
17 5.00% 7.20 21.51 42.75 84.48
18 5.00% 6.94 20.74 41.23 81.47
19 5.00% 6.71 20.06 39.88 78.80
20 5.00% 6.51 19.46 38.68 76.42
21 5.00% 6.33 18.91 37.59 74.28
22 5.00% 6.17 18.42 36.62 72.35
23 5.00% 6.02 17.98 35.73 70.61
24 5.00% 5.88 17.57 34.93 69.02
25 5.00% 5.76 17.20 34.20 67.57
26 5.00% 5.65 16.87 33.53 66.25
27 5.00% 5.54 16.56 32.92 65.04
28 5.00% 5.45 16.28 32.35 63.93
29 5.00% 5.36 16.01 31.83 62.90
30 5.00% 5.28 15.77 31.35 61.95
25
OPTION 3
LIFE INCOME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
PAYMENTS GUARANTEED FOR A STATED PERIOD OF MONTHS
ADJUSTED NONE 60 120 180 240
AGE OF --------------------------------------------------------------------------------------------------------
ANNUITANT MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
--------------------------------------------------------------------------------------------------------------------------
50 $ 4.56 $ 4.20 $ 4.55 $ 4.19 $ 4.51 $ 4.18 $ 4.45 $ 4.15 $ 4.36 $ 4.11
51 4.64 4.26 4.62 4.25 4.58 4.24 4.51 4.21 4.42 4.16
52 4.72 4.32 4.70 4.32 4.66 4.30 4.58 4.26 4.48 4.21
53 4.80 4.39 4.79 4.38 4.74 4.36 4.65 4.32 4.53 4.27
54 4.89 4.46 4.87 4.46 4.82 4.43 4.73 4.39 4.59 4.32
55 4.99 4.54 4.97 4.53 4.91 4.50 4.80 4.46 4.65 4.38
56 5.09 4.62 5.07 4.61 5.00 4.58 4.88 4.53 4.72 4.44
57 5.20 4.71 5.17 4.70 5.10 4.66 4.96 4.60 4.78 4.50
58 5.32 4.80 5.29 4.79 5.20 4.75 5.05 4.68 4.84 4.57
59 5.44 4.90 5.41 4.88 5.31 4.84 5.14 4.76 4.91 4.63
60 5.57 5.00 5.53 4.99 5.42 4.93 5.23 4.84 4.97 4.70
61 5.71 5.11 5.67 5.09 5.54 5.03 5.32 4.93 5.03 4.77
62 5.86 5.23 5.81 5.21 5.66 5.14 5.42 5.02 5.09 4.84
63 6.02 5.36 5.97 5.33 5.79 5.25 5.51 5.11 5.16 4.91
64 6.20 5.49 6.13 5.46 5.93 5.37 5.61 5.21 5.21 4.98
65 6.38 5.64 6.31 5.60 6.07 5.49 5.71 5.31 5.27 5.05
66 6.58 5.79 6.49 5.75 6.22 5.63 5.81 5.41 5.32 5.12
67 6.79 5.95 6.69 5.91 6.38 5.76 5.91 5.52 5.38 5.18
68 7.02 6.13 6.89 6.08 6.53 5.91 6.01 5.63 5.42 5.25
69 7.26 6.32 7.11 6.26 6.70 6.06 6.11 5.74 5.47 5.31
70 7.52 6.53 7.35 6.45 6.86 6.23 6.20 5.85 5.51 5.37
71 7.80 6.75 7.59 6.66 7.03 6.39 6.29 5.96 5.54 5.42
72 8.09 6.99 7.85 6.89 7.21 6.57 6.38 6.07 5.57 5.47
73 8.41 7.26 8.12 7.13 7.38 6.75 6.46 6.17 5.60 5.51
74 8.75 7.54 8.41 7.39 7.55 6.94 6.53 6.28 5.63 5.55
75 9.12 7.85 8.71 7.66 7.73 7.13 6.61 6.38 5.65 5.59
RATES ARE BASED ON MORTALITY FROM 1983 TABLE a.
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.
26
OPTION 3
LIFE INCOME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
PAYMENTS GUARANTEED FOR A STATED PERIOD OF MONTHS
ADJUSTED NONE 60 120 180 240
AGE OF --------------------------------------------------------------------------------------------------------
ANNUITANT MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
--------------------------------------------------------------------------------------------------------------------------
50 $ 5.48 $ 5.12 $ 5.46 $ 5.11 $ 5.41 $ 5.09 $ 5.34 $ 5.06 $ 5.24 $ 5.01
51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.29 5.05
52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.34 5.10
53 5.71 5.30 5.69 5.29 5.62 5.26 5.53 5.22 5.40 5.15
54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.27 5.45 5.20
55 5.89 5.44 5.86 5.43 5.79 5.39 5.67 5.34 5.51 5.25
56 5.99 5.52 5.96 5.51 5.87 5.47 5.74 5.40 5.56 5.31
57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.62 5.37
58 6.21 5.69 6.17 5.67 6.06 5.62 5.90 5.54 5.68 5.42
59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.61 5.74 5.48
60 6.46 5.89 6.41 5.87 6.28 5.80 6.06 5.69 5.79 5.55
61 6.60 6.00 6.55 6.97 6.39 5.90 6.15 5.77 5.85 5.61
62 6.75 6.11 6.69 6.08 6.51 6.00 6.24 5.86 5.91 5.67
63 6.91 6.23 6.84 6.20 6.64 6.10 6.33 5.95 5.96 5.73
64 7.09 6.37 7.00 6.33 6.77 6.22 6.42 6.04 6.02 5.80
65 7.27 6.51 7.18 6.46 6.91 6.34 6.52 6.13 6.07 5.86
66 7.47 6.66 7.36 6.61 7.05 6.46 6.61 6.23 6.12 5.92
67 7.68 6.82 7.55 6.76 7.20 6.60 6.70 6.33 6.16 5.99
68 7.91 7.00 7.76 6.93 7.35 6.74 6.80 6.43 6.21 6.04
69 8.15 7.19 7.98 7.11 7.51 6.89 6.89 6.54 6.25 6.10
70 8.41 7.39 8.21 7.30 7.67 7.04 6.97 6.64 6.28 6.15
71 8.69 7.62 8.45 7.51 7.83 7.21 7.06 6.74 6.32 6.20
72 8.99 7.86 8.70 7.73 8.00 7.38 7.14 6.85 6.35 6.25
73 9.31 8.12 8.97 7.97 8.16 7.55 7.21 6.95 6.37 6.29
74 9.65 8.41 9.26 8.23 8.33 7.73 7.29 7.04 6.39 6.33
75 10.02 8.72 9.55 8.50 8.50 7.92 7.35 7.14 6.41 6.36
RATES ARE BASED ON MORTALITY FROM 1983 TABLE a.
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.
27
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS MALE AND SECOND ANNUITANT IS FEMALE)
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
ADJUSTED AGES
----------------------
SECOND
ANNUITANT ANNUITANT OPTION 4a OPTION 4b OPTION 4c OPTION 4d OPTION 4e
---------------------------------------------------------------------------------------
55 50 $ 3.97 $ 4.35 $ 4.56 $ 3.97 $ 4.42
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.34 4.76 5.00 4.34 4.64
60 55 4.27 4.73 5.00 4.26 4.83
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.76 5.29 5.60 4.75 5.13
65 60 4.66 5.25 5.61 4.65 5.39
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.34 6.03 6.46 5.31 5.81
70 65 5.19 5.97 6.44 5.17 6.14
70 70 5.67 6.49 6.99 5.62 6.47
70 75 6.16 7.10 7.68 6.07 6.77
75 70 5.95 6.96 7.61 5.87 7.20
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.33 8.62 9.45 7.02 8.13
RATES ARE BASED ON MORTALITY FROM 1983 TABLE a.
THE RATES ASSUME THE ANNUITANT ISMALE AND THE SECOND ANNUITANT IS FEMALE.
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.
28
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS FEMALE AND SECOND ANNUITANT IS MALE)
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
ADJUSTED AGES
----------------------
SECOND
ANNUITANT ANNUITANT OPTION 4a OPTION 4b OPTION 4c OPTION 4d OPTION 4e
---------------------------------------------------------------------------------------
55 50 $ 4.03 $ 4.36 $ 4.55 $ 4.03 $ 4.41
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.27 4.73 5.00 4.26 4.83
60 55 4.34 4.76 5.00 4.34 4.64
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.66 5.25 5.61 4.65 5.39
65 60 4.76 5.29 5.60 4.75 5.13
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.19 5.97 6.44 5.17 6.14
70 65 5.34 6.03 6.46 5.31 5.81
70 70 5.67 6.49 6.99 5.62 6.47
70 75 5.95 6.96 7.61 5.87 7.20
75 70 6.16 7.10 7.68 6.07 6.77
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.04 8.39 9.29 6.79 8.70
RATES ARE BASED ON MORTALITY FROM 1983 TABLE a.
THE RATES ASSUME THE ANNUITANT IS FEMALE AND THE SECOND ANNUITANT IS MALE.
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.
29
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS MALE AND SECOND ANNUITANT IS FEMALE)
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
ADJUSTED AGES
----------------------
SECOND
ANNUITANT ANNUITANT OPTION 4a OPTION 4b OPTION 4c OPTION 4d OPTION 4e
---------------------------------------------------------------------------------------
55 50 $ 4.88 $ 5.26 $ 5.48 $ 4.88 $ 5.34
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.21 5.65 5.89 5.21 5.53
60 55 5.15 5.63 5.91 5.14 5.73
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.61 6.16 6.49 5.60 6.01
65 60 5.52 6.14 6.51 5.51 6.28
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.17 6.90 7.33 6.13 6.67
70 65 6.04 6.84 7.34 6.00 7.03
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.97 7.96 8.56 6.87 7.62
75 70 6.77 7.84 8.51 6.68 8.08
75 75 7.45 8.60 9.33 7.27 8.55
75 80 8.14 9.49 10.35 7.80 8.98
RATES ARE BASED ON MORTALITY FROM 1983 TABLE a.
THE RATES ASSUME THE ANNUITANT IS MALE AND THE SECOND ANNUITANT IS FEMALE.
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.
30
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS FEMALE AND SECOND ANNUITANT IS MALE)
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
ADJUSTED AGES
----------------------
SECOND
ANNUITANT ANNUITANT OPTION 4a OPTION 4b OPTION 4c OPTION 4d OPTION 4e
---------------------------------------------------------------------------------------
55 50 $ 4.93 $ 5.27 $ 5.46 $ 4.93 $ 5.19
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.15 5.63 5.91 5.14 5.73
60 55 5.21 5.65 5.89 5.21 5.53
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.52 6.14 6.51 5.51 6.28
65 60 5.61 6.16 6.49 5.60 6.01
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.04 6.84 7.34 6.00 7.03
70 65 6.17 6.90 7.33 6.13 6.67
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.77 7.84 8.51 6.68 8.08
75 70 6.97 7.96 8.56 6.87 7.62
75 75 7.45 8.60 9.33 7.27 8.55
75 80 7.86 9.28 10.20 7.57 9.59
RATES ARE BASED ON MORTALITY FROM 1983 TABLE a.
THE RATES ASSUME THE ANNUITANT IS FEMALE AND THE SECOND ANNUITANT IS MALE.
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.
31
ING LIFE INSURANCE AND ANNUITY COMPANY
HOME OFFICE: 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
(000) 000-0000
INDIVIDUAL VARIABLE, FIXED, OR COMBINATION ANNUITY CONTRACT
NONPARTICIPATING
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA.
APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN INCREASE OR
DECREASE IN THE SURRENDER VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT
APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
