THE PRUDENTIAL THE PRUDENTIAL
INSURANCE COMPANY
OF AMERICA
agrees to pay the benefits provided under this contract in accordance with and
subject to its terms.
Contract-Holder:
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Effective Date: Group Annuity Contract Number:
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Provisions and Schedules Jurisdiction:
attached:
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THE PRUDENTIAL INSURANCE COMPANY
OF AMERICA
By:
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Title: President /s/
Date: Secretary /s/
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Attest
-----------------------
Date:
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Group Annuity Contract providing for contributions on account of Participants.
Annual determination of participation in divisible surplus. All subject to the
provisions of this contract.
NOTICE - ALL CONTRACTUAL VALUES OR PAYMENTS PROVIDED BY THIS CONTRACT, WHEN
BASED ON THE INVESTMENT RESULTS OF A PRUDENTIAL SEPARATE ACCOUNT DESCRIBED IN
THIS CONTRACT, ARE VARIABLE, SUBJECT TO CHANGE BOTH UP AND DOWN, AND ARE NOT
GUARANTEED AS TO DOLLAR AMOUNT.
GVA-1000 19081
TABLE OF CONTENTS
Provision Serial Page
I. CONTRIBUTIONS - ACCOUNTS - CHARGES
1.1 Contributions. . . . . . . . . . . . . . . . . . . . . . 100
1.2 Participant's Account. . . . . . . . . . . . . . . . . . 100
1.3 Annual Account Charge. . . . . . . . . . . . . . . . . . 110
1.4 Reports. . . . . . . . . . . . . . . . . . . . . . . . . 110
II. INVESTMENT ACCOUNT - UNIT VALUES - COMMITTEE
2.1 The Prudential Variable Contract
Account-10 (VCA-10). . . . . . . . . . . . . . . . . . . 200
2.2 VCA-10 Unit Value. . . . . . . . . . . . . . . . . . . . 200
2.3 VCA-10 Committee . . . . . . . . . . . . . . . . . . . . 210
III. WITHDRAWALS AND TRANSFERS - DEATH PAYMENTS
3.1 Participant's Withdrawal . . . . . . . . . . . . . . . . 300
3.2 Death Payments . . . . . . . . . . . . . . . . . . . . . 300
3.3 Transfers Between Related Contracts. . . . . . . . . . . 320
3.4 Transfers to Another Funding Agent . . . . . . . . . . . 330
3.5 Transfers Involving a Similar Contract
of Another Employer. . . . . . . . . . . . . . . . . . . 340
IV. DISTRIBUTIONS
4.1 Distributions. . . . . . . . . . . . . . . . . . . . . . 400
4.2 Required Distribution Date . . . . . . . . . . . . . . . 400
4.3 Minimum Required Distributions . . . . . . . . . . . . . 400
4.4 Annuities. . . . . . . . . . . . . . . . . . . . . . . . 410
4.5 Small Annuities and Accounts . . . . . . . . . . . . . . 420
4.6 Payees . . . . . . . . . . . . . . . . . . . . . . . . . 420
V. CHANGES
5.1 Changes by Prudential. . . . . . . . . . . . . . . . . . 500
5.2 Changes by Agreement . . . . . . . . . . . . . . . . . . 500
5.3 Changes to Conform to Law. . . . . . . . . . . . . . . . 500
5.4 Persons Empowered to Act for Prudential. . . . . . . . . 500
VI. DISCONTINUANCE - TERMINATION OF CONTRACT
6.1 Discontinuance of Establishing Participants'
Accounts . . . . . . . . . . . . . . . . . . . . . . . . 600
6.2 Discontinuance of Contributions under
this Contract. . . . . . . . . . . . . . . . . . . . . . 600
6.3 Termination of Contract. . . . . . . . . . . . . . . . . 600
VII. GENERAL TERMS
7.1 Contract-Holder. . . . . . . . . . . . . . . . . . . . . 700
7.2 Communications . . . . . . . . . . . . . . . . . . . . . 700
7.3 Place of Payment -- Currency . . . . . . . . . . . . . . 700
7.4 Information -- Records . . . . . . . . . . . . . . . . . 710
7.5 Misstatements. . . . . . . . . . . . . . . . . . . . . . 710
7.6 Beneficiary. . . . . . . . . . . . . . . . . . . . . . . 710
GVA-1000 (as modified by Group Annuity Amendment Form GAA-7793)
TC-100 (10)
TABLE OF CONTENTS
(Continued)
Provision Serial Page
7.7 Divisible Surplus. . . . . . . . . . . . . . . . . . . . 720
7.8 Limit on Assignment. . . . . . . . . . . . . . . . . . . 720
7.9 Certificates . . . . . . . . . . . . . . . . . . . . . . 720
7.10 Entire Contract - Construction . . . . . . . . . . . . . 720
SCHEDULES
Schedule A Forms of Annuity which May be Purchased. . . . . . A-100
Schedule B Life - Payment Certain Annuity . . . . . . . . . . S-100
Schedule C Life - Contingent Annuity. . . . . . . . . . . . . S-100
Schedule D Payment Certain Annuity. . . . . . . . . . . . . . S-100
GVA/GAA-1000/7327
TC-110
Provision I. CONTRIBUTIONS - ACCOUNTS - CHARGES:
1.1 CONTRIBUTIONS:
(a) Regular Contributions:
The contributions which are payable under this contract for a
Participant are the Qualified Retirement Contributions described in
Section 219(e) of the Federal Internal Revenue Code of 1986, as amended
(the "Code"), which the Participant has directed for payment hereunder.
Contributions will be transmitted by the Contract-Holder. A
Participant is a person for whom contributions have been paid under
this contract and whose Participant's Account (see section 1.2) has
not been cancelled.
No contribution may be made for a Participant in or after his tax year
in which he reaches age 70 1/2. Tax year means the one for Federal
Income Tax purposes.
Any contribution for a Participant made on other than a periodic basis
may not be less than $500.
The contributions made for a Participant for any of his tax years are
subject to certain limits. They may not exceed the amounts specified
in Code Section 219(b)(1) for any tax year. If made after the end of a
tax year, they are made in the next year before the filing date for
his tax return in that year. (For most Participants, tax years and
calendar years are the same.)
A contribution may be made for a non-working spouse of a Participant.
However, the sum of the contribution made for the working and
non-working spouses may not exceed the amounts specified in Code
Section 219(c)(2) for any tax year. (A non-working spouse for whom a
contribution is made is a Participant.)
The contribution limits described in the two preceding paragraphs may
be reduced for certain Participants as provided in Code Section
219(g).
(To save words, male pronouns are used in this contract to refer to
both men and women.)
(b) Rollover Contributions:
An amount which qualifies as a rollover contribution pursuant to the
Federal Internal Revenue Code may be transferred to and paid under
this contract as a contribution for a Participant. Prudential may
require proof that the amount paid so qualifies.
1.2 PARTICIPANT'S ACCOUNT:
Prudential will establish a "Participant's Account" for each person for
whom a contribution is paid under this contract. This Account is expressed
in Units of the separate investment account described in section 2.1.
GVA-1000 (as modified by Group Annuity Amendment Form GAA-7793)
Serial 100 1.1-1.2
A number of Units will be added to the Participant's Account on each day a
contribution is received by Prudential for the Participant. This number is
determined by dividing the dollar amount of the contribution by the Unit
Value for the day the contribution is received (see section 2.2 for a
description of the Unit Value). A number of Units will be subtracted from
the Participant's Account on each day on which a withdrawal is made from
his Account. This number is equal to the number requested for withdrawal
or, if applicable, the number determined by dividing the dollar amount to
be withdrawn by the Unit Value for the day of withdrawal.
A Participant's Account is the sum of the Units added to it, less the sum
of the Units subtracted from it. The dollar value of a Participant's
Account as of any day is the product of the number of Units in his Account
at the close of business on that day and the Unit Value for that day.
A Participant has a non-forfeitable interest in his Account. The Account is
subject to charges described later.
1.3 ANNUAL ACCOUNT CHARGE:
On the last business day (see section 2.2) of each calendar year an amount
will be withdrawn from each Participant's Account equal to the Annual
Account Charge. Similarly, on any other day on which a Participant's
Account is cancelled, an amount will be withdrawn from his Account equal to
the Annual Account Charge. However, no Charge will be withdrawn if the
Participant's Account is being cancelled on a January 1 to purchase an
annuity for him under this contract.
The Annual Account Charge is $20.
A Participant may have an Account for Qualified Retirement Contributions
under another group annuity contract issued to the Contract-Holder by
Prudential (a "companion contract"). If so, the total Annual Account Charge
that applies to all his Accounts will not exceed $20. This charge will be
shared among his Accounts as Prudential determines. Also, no charge will be
withdrawn from his Account under this contract when it is cancelled unless
no amounts remain in an Account for him under a companion contract.
In addition, to the Annual Account Charge, a charge may be made upon a
Participant's withdrawal (see section 3.1).
The Charge may be changed as provided in section 5.1.
1.4 REPORTS:
Prudential will periodically furnish a report with respect to each
Participant's Account which has not been cancelled. The report will show
the status of each Account as of the date of the report.
GVA-1000 (as modified by Group Annuity Amendment Form GAA-7793)
Serial 110 1.2-1.4
Provision II. INVESTMENT ACCOUNT - UNIT VALUES - COMMITTEE:
2.1 THE PRUDENTIAL VARIABLE CONTRACT ACCOUNT - 10 (VCA-10):
VCA-10 is a separate investment account of Prudential established pursuant
to a resolution adopted by its Board of Directors. The resolution provides
that this account is to be used for contracts which state that certain
payments and values under them will vary to reflect the investment results
of this account.
The investments held in VCA-10 are intended to be composed primarily of
common stocks. Prudential will invest and reinvest the assets held in
VCA-10 in accordance with the investment objectives and policies
established for it.
The total market value of the assets held in VCA-10 at all times will be at
least equal to the total reserve liability required by law for all payments
or values which vary in dollar amount to reflect the investment results of
VCA-10. Assets held in VCA-10 equal in market value to that reserve
liability will be held for the sole benefit of all contracts which
participate in VCA-10. The amount, if any, by which the total market value
exceeds the total reserve liability will be subject to the exclusive
control of Prudential. Thus, Prudential may from time to time make
transfers between VCA-10 and its other investment accounts as, in its
judgment, experience warrants. A transfer will not affect Prudential's
contractual liabilities under this contract.
2.2 VCA-10 UNIT VALUE:
The VCA-10 Unit Value for any Business Day is the dollar value of one
VCA-10 Unit for that Business Day. ("Business Day" means a day the New York
Stock Exchange is open for trading.) The initial VCA-10 Unit Value was
$1.00. The VCA-10 Unit Value for any subsequent Business Day is determined
as of the end of that Business Day by multiplying the VCA-10 Unit Change
Factor for that Business Day by the VCA-10 Unit Value for the immediately
preceding Business Day. The VCA-10 Unit Value for any day which is not a
Business Day is equal to the VCA-10 Unit Value for the next Business Day.
The VCA-10 Unit Value will go up or down in accordance with the VCA-10 Unit
Change Factor described below.
To determine the VCA-10 Unit Change Factor for any Business Day, Prudential
will proceed as follows:
(a) Increase $1.00 by the rate of investment results of VCA-10 for that
Business Day, taking into account investment income and market value
changes after provision for any taxes applicable to contracts of this
class arising from the operation of VCA-10.
(b) Subtract from the result found in (a) the VCA-10 Investment Management
Fee per $1.00 at the effective annual rate of 0.25% for the number of
calendar days in the period from the end of the prior Business Day to
the end of the current Business Day. The aggregate amount by which
VCA-10 is reduced in each year by the Investment Management Fee will
be deducted from investment income to the extent possible; any balance
will be deducted from principal.
GVA-1000 (10)
Serial 200 2.1-2.2
(c) Provide for the Administrative Expense Charge at the effective annual
rate of 0.75%, against the assets of VCA-10. To do so, the result
found in (b) is divided by $1.00 increased at the effective annual
rate of 0.75% for the number of calendar days from the end of the
prior Business Day to the end of the current Business Day.
In addition, the result found in (c) is the VCA-10 Unit Change Factor for
that Business Day.
The Investment Management Fee specified in item (b) above may be changed
from time to time pursuant to a change in the investment management
agreement between Prudential and the VCA-10 Account. Prudential will notify
the Contract-Holder of any such change.
In addition, this section may be changed as provided in section 5.1.
2.3 VCA-10 COMMITTEE:
The operation of VCA-10 will be supervised by The Prudential VCA-10
Committee (the "Committee"). The initial Committee members will be
appointed by Prudential. Thereafter, members will be elected by the
Participants.
GVA-1000 (10) (as modified by GAA-7663)
Serial 210 2.2-2 3
Provision II. INVESTMENT ACCOUNT - UNIT VALUES - COMMITTEE:
2.1 THE PRUDENTIAL VARIABLE CONTRACT ACCOUNT - 11 (VCA-11):
VCA-11 is a separate investment account of Prudential established pursuant
to a resolution adopted by its Board of Directors. The resolution provides
that this account is to be used for contracts which state that certain
payments and values under them will vary to reflect the investment results
of this account.
The investments held in VCA-11 are intended to be composed of high-grade
money market instruments. Prudential will invest and reinvest the assets
held in VCA-11 in accordance with the investment objectives and policies
established for it.
The total value of the assets held in VCA-11 at all times will be at least
equal to the total reserve liability required by law for all payments or
values which vary in dollar amount to reflect the investment results of
VCA-11. Assets held in VCA-11 equal in value to that reserve liability will
be held for the sole benefit of all contracts which participate in VCA-11.
The amount, if any, by which the total value exceeds the total reserve
liability will be subject to the exclusive control of Prudential. Thus,
Prudential may from time to time make transfers between VCA-11 and its
other investment accounts as, in its judgment, experience warrants. A
transfer will not affect Prudential's contractual liabilities under this
contract.
2.2 VCA-11 UNIT VALUE:
The VCA-11 Unit Value for any Business Day is the dollar value of one
VCA-11 Unit for that Business Day. ("Business Day" means a day the New York
Stock Exchange is open for trading.) The initial VCA-11 Unit Value was
$1.00. The VCA-11 Unit Value for any subsequent Business Day is determined
as of the end of that Business Day by multiplying the VCA-11 Unit Change
Factor for that Business Day by the VCA-11 Unit Value for the immediately
preceding Business Day. The VCA-11 Unit Value for any day which is not a
Business Day is equal to the VCA-11 Unit Value for the next Business Day.
The VCA-11 Unit Value will go up or down in accordance with the VCA-11 Unit
Change Factor described below.
To determine the VCA-11 Unit Change Factor for any Business Day, Prudential
will proceed as follows:
(a) Increase $1.00 by the rate of investment results of VCA-11 for that
Business Day, taking into account investment income and changes in the
value of investments after provision for any taxes applicable to
contracts of this class arising from the operation of VCA-11.
(b) Subtract from the result found in (a) the VCA-11 Investment Management
Fee per $1.00 at the effective annual rate of 0.25% for the number of
calendar days in the period from the end of the prior Business Day to
the end of the current Business Day. The aggregate amount by which
VCA-11 is reduced in each year by the Investment Management Fee will
be deducted from investment income to the extent possible; any balance
will be deducted from principal.
GVA-1000 (11)
Serial 200 2.1-2.2
(c) Provide for the Administrative Expense Charge at the effective annual
rate of 0.75%, against the assets of VCA-11. To do so, the result
found in (b) is divided by $1.00 increased at the effective annual
rate of 0.75% for the number of calendar days in the period from the
end of the prior Business Day to the end of the current Business Day.
The result found in (c) is the VCA-11 Unit Change Factor for that Business
Day.
Prudential may, upon notice to the Contract-Holder and Participants, change
the basis for determining the Unit Value. The changed basis would be one
designed to maintain a constant Unit Value, with investment results being
reflected through the number of Units in Participants' Accounts.
The Investment Management Fee specified in item (b) above may be changed
from time to time pursuant to a change in the investment management
agreement between Prudential and the VCA-11 Account. Prudential will notify
the Contract-Holder of any such change.
This section may also be changed as provided in section 5.1.
2.3 VCA-11 COMMITTEE:
The operation of VCA-11 will be supervised by The Prudential VCA-11
Committee (the "Committee"). The initial Committee members will be
appointed by Prudential. Thereafter, members will be elected by the
Participants.
GVA-1000 (11) (as modified by GAA-7663)
Serial 210 2.2-2.3
Provision III. WITHDRAWALS AND TRANSFERS - DEATH PAYMENTS:
3.1 PARTICIPANT'S WITHDRAWAL:
A Participant may make withdrawals from his Participant's Account. The
minimum withdrawal is $500, or the dollar value of his Account if smaller.
Payment to the Participant will normally be made within seven days of
Prudential's receipt of a duly completed request for it. However, it may be
paid at a later day if permitted under the Investment Company Act of 1940.
The amount paid to the Participant will be the dollar amount withdrawn less
the withdrawal charge determined from the following table and the Annual
Account Charge if it applies. The amount payable is also referred to as the
"Withdrawal Value".
TABLE
Withdrawals made in the months
indicated, counting from the day
the Participant's Account was Withdrawal Charge per $1.00
established* being withdrawn.**
-------------------------------- ---------------------------
First 24 months $0.06
Next 36 months 0.05
Next 60 months 0.03
Next 60 months 0.02
Thereafter 0.00
*Or, if earlier, the day an Account was established for him under a companion
contract (or under a similar contract if section 3.5 applies).
**No charge is made after the amount withdrawn equals the contributions made
for the Participant.
As of the first day no amounts remain in a Participant's Account or in an
Account for him under a companion contract, his Account is cancelled.
This section may be changed as provided in section 5.1.
3.2 DEATH PAYMENTS:
If a Participant dies before his Participant's Account has been cancelled,
the dollar value will be paid to his Beneficiary (see section 7.6).
However, proof of the Participant's death must be received by Prudential
before any payment will be made. Death benefits payable under the contract
to a Participant's Beneficiary prior to the date (i) on which an annuity
has been purchased for the Participant or (ii) on which minimum
distributions have commenced to the Participant pursuant to Code Section
401(a)(9) will be paid as set forth in this section 3.2. Death benefits
payable under the contract to a Participant's Beneficiary on or
GVA-1000 (as modified by Group Annuity Amendment Form GAA-7793)
Serial 300 3.1-3.2
after the date on which an annuity has been purchased for the
Participant or on which minimum distributions have commenced to the
Participant pursuant to Code Section 401(a)(9) will be paid as set
forth in section 4.1 of the contract.
The Beneficiary may elect payment in any of the following forms,
unless the Participant has directed otherwise:
(a) a lump sum;
(b) an annuity form described in section 4.4, other than one which
provides for payment after the death of the Annuitant to a
Contingent Annuitant;
(c) any other settlement method to which Prudential consents; or
(d) a combination of all or any two of (a), (b and (c) above.
Any lump sum payment to a Beneficiary will be subject to the
following:
- If the lump sum is payable to the Participant's spouse, payment
of such lump sum will be made no later than the later of (i) the
December 31 of the calendar year following the one in which the
Participant's death occurred or (ii) the December 31 of the
calendar year in which the Participant would have attained age 70
1/2.
- If the lump sum is payable to a Beneficiary who is other than the
Participant's Spouse, payment of such lump sum will be made no
later than the December 31 of the calendar year in which the
fifth anniversary of the Participant's death occurs.
- If a lump sum payment is made to the Beneficiary within one year
of the Participant's death, it will be at least equal to the
contributions made for him under this contract less any
withdrawals and transfers.
If payments are to be made to a Beneficiary in a form other than a
lump sum, such payments will be subject to the following:
- If the Beneficiary is the Participant's spouse, payments must
commence no later than the later of (i) the December 31 of the
calendar year following the one in which the Participant's death
occurred or (ii) the December 31 of the calendar year in which
the Participant would have attained age 70 1/2. Such payments
must be paid over the life of the spouse or over a period not
exceeding the life expectancy of the spouse.
- If the Beneficiary is other than the Participant's spouse,
payments must commence no later than the December 31 of the
calendar year following the one in which the death of the
Participant occurred. Such payments must be paid over the life of
the Beneficiary or over a period not exceeding the life
expectancy of the Beneficiary.
GVA-1000 (as modified by Group Annuity Amendment Form GAA-7793)
Serial 310 3.2
If:
(1) the Beneficiary does not elect a method of distribution and
(2) the Participant has not directed that a specific method of
distribution be provided for his Beneficiary,
then any death benefits becoming payable under the contract shall be paid
in a lump sum commencing no later than the December 31 of the calendar year
in which the fifth anniversary of the Participant's death occurs.
All death benefits pursuant to this section 3.2 shall be made at the time
and in the manner prescribed in Code Section 401(a)(9) and the Regulations
issued thereunder.
If annuity payments are to start at a future date, the Participant's
Account will be maintained for the Beneficiary in the same manner as for
the Participant. No contributions may be made to the Account after the
Participant's death.
As of the first day no amounts remain in the Participant's Account or in an
Account for the Beneficiary under a companion contract, the Participant's
Account is cancelled. Section 3.1 does not apply.
3.3 TRANSFERS BETWEEN RELATED CONTRACTS:
A Participant may transfer an amount from his Participant's Account to an
Account maintained for him under a companion contract. The minimum
withdrawal to provide a transfer is $500, or the dollar value of his
Account if smaller. The transfer will normally be made within seven days of
receipt of a duly completed request for it. Section 3.1 does not apply to a
withdrawal for this purpose. Transfers are deemed to be made first from the
contributions paid for the Participant. Investment income is transferred
when there are no longer any contributions in the Participant's Account.
Amounts may be transferred to this contract from a companion contract. An
amount transferred to this contract for a Participant will be treated as
though it were a contribution made for him (see section 1.2). However, in
determining any withdrawal charge, any part of the amount transferred which
is investment income will not be considered as a contribution.
Prudential may, upon notice to the Contract-Holder and Participants, limit
the frequency of transfers. This action will take effect on the date of the
notice.
This section may be changed as provided in section 5.1.
GVA-1000 (as modified by Group Annuity Amendment Form GAA-7793)
Serial 320 3.2-3.3
3.4 TRANSFERS TO ANOTHER FUNDING AGENT:
(a) At the Request of a Participant:
The Withdrawal Value of a Participant's Account may be transferred to
an individual retirement account or individual retirement annuity
contract provided by another financial institution. The transfer may
be made directly to that institution or by a payment (or payments) to
the Participant who then makes payment to the institution. The
transfer will normally be made within seven days after Prudential's
receipt of a duly completed transfer request.
The transfer will be in full settlement of Prudential's liability for
the Participant's Account.
(b) At the Contract-Holder's Request:
The Contract-Holder may request Prudential to make transfer payments
to a funding agent named in the request. The transfer payment will be
made on the Transfer Date. The Transfer Date is the later of the day
specified in the request and the 90th day after its receipt by
Prudential.
Prudential will promptly notify each Participant, and each Beneficiary
of a deceased Participant whose Account has not been cancelled, that
the request has been received. Each notified person may elect, within
30 days following his receipt of the notice from Prudential, to have
his Account cancelled and included in the transfer payment to be made.
Each person who does not make this election will have his Account
retained under this contract pursuant to its terms.
All Accounts of Participants and Beneficiaries who make the election
will be cancelled as of the Transfer Date. A single liquidation
account will be established equal to the sum of the Withdrawal Values
expressed in Units of the cancelled Accounts.
On the Transfer Date Prudential will withdraw the Units from the
liquidation account. The product of the number of Units withdrawn and
the Unit Value for the day of withdrawal will be transferred within
seven days thereafter.
Instead of making the transfer payment in cash, Prudential may make
all or a part of it in the form of securities representing a uniform
percentage of each holding of the separate investment account
described in section 2.1.
The Contract-Holder may notify Prudential that this section 3.4(b) is
to be inoperative.
This section may be changed as provided in section 5.1.
GVA-1000 (as modified by Group Annuity Amendment Form GAA-7793)
Serial 330 3.4
3.5 TRANSFERS INVOLVING A SIMILAR CONTRACT OF ANOTHER EMPLOYER:
A Participant may cease to be employed by the Contract-Holder. He may
become employed by an employer to whom Prudential has issued a contract
similar to this contract. If so, that Participant may request a transfer to
that similar contract from this contract. The transfer will normally be
made within seven days of receipt of a duly completed request. The dollar
value of the Participant's Account will be the amount transferred. The
Account will be cancelled.
Also, this contract will accept a transfer from a contract similar to this
contract for a person covered thereunder who becomes employed by the
Contract-Holder. The transferred amount will be treated as a contribution
paid for that person. However, in determining any withdrawal charge, any
part of the transferred amount which is investment income will not be
considered a contribution.
This section may be changed as provided in section 5.1.
GVA-1000 (as modified by Group Annuity Amendment Form GAA-7793)
Serial 340 3.5
Provision IV. DISTRIBUTIONS:
4.1 ANNUITY ELECTIONS:
A Participant may elect to receive a distribution of his Account under the
contract in any of the following forms:
(a) a lump sum;
(b) an annuity form described in section 4.4;
(c) any other settlement method to which Prudential consents; or
(d) a combination of all or any two of (a), (b) and (c) above.
Any portion of a Participant's Account which is paid to him as a lump sum
will be subject to section 3.1 relating to withdrawal charges.
Any payments becoming due to the Beneficiary of a Participant who began
receiving a distribution pursuant to paragraph (c) may, unless the
Participant has directed otherwise, be paid in any of the forms described
in this section 4.1, as elected by the Beneficiary, except for an annuity
which provides for payment after the death of the Annuitant to a Contingent
Annuitant.
Any payments becoming due to the Beneficiary of a Participant who began
receiving an annuity pursuant to paragraph (b) will, unless the Participant
has directed otherwise, be paid as provided in section 4.4.
Anything in the contract to the contrary notwithstanding, any payments made
to a Beneficiary in accordance with the two preceding paragraphs will meet
the requirements of Code Section 401(a)(9) and the Regulations issued
thereunder.
As of the first day no amounts remain in a Participant's Account or in an
Account for him under a companion contract, his Account is cancelled.
4.2 REQUIRED DISTRIBUTION DATE:
Distributions are required to commence to the Participant as of his
Required Distribution Date. A Participant's Required Distribution Date is
the April 1 of the calendar following the one in which the Participant
attains age 70 1/2.
4.3 MINIMUM REQUIRED DISTRIBUTIONS:
Prudential will notify a Participant, prior to such Participant's Required
Distribution Date, as determined from the records of Prudential on the
basis of information furnished to Prudential, that he may be required to
receive a minimum distribution from his Account under the contract in
accordance with Code Section 401(a)(9) and the Regulations issued
thereunder. Such notice will include information so as to assist the
Participant in computing the amount of his required minimum distribution.
Following such notice, a Participant may request that the required minimum
distribution be paid to him from the contract by his Required Distribution
Date.
GVA-1000 (as modified by Group Annuity Amendment Form GAA-7793)
Serial 400 4.1-4.3
If the Participant does not request a distribution of any portion of his
Account under the contract pursuant to this section 4.3, Prudential shall
be under no obligation to make such distribution.
4.4 TERMS OF PAYMENT OF ANNUITIES:
If a Participant elects an Annuity pursuant to paragraph (b) of section
4.1, all or a portion of the dollar value of the Participant's Account, as
specified by the Participant, will be applied to purchase an annuity in
accordance with Schedule A. The monthly amount of annuity is determined
from the schedule of purchase rates for that annuity.
Life annuities and Payment Certain annuities are available under this
contract. A life form of annuity is one payable at least during the
lifetime of the person (referred to as the "Annuitant") for whom it was
purchased. Depending upon the existence and nature of any payment payable
after the death of the Annuitant, a Life annuity will be one of the
following forms: Life - Payment Certain, Life - Contingent, or Life -
Payment Certain Contingent annuity. A Payment Certain form of annuity may
be payable for a period less than the lifetime of the person for whom the
annuity was purchased. The terms of payment of each form of annuity are
described below.
(a) Life Form of Annuity
The first monthly payment of a Life - Payment Certain annuity is
payable on the date the annuity is purchased. Monthly payments are
payable on the first day of each month thereafter throughout the
annuitant's remaining lifetime. If the Annuitant dies before the
number of annuity payments made equals the number of Payments Certain
applicable to him, monthly annuity payments will be continued until
the total number of payments is so equal. These continued annuity
payments will each be in the same amount as was payable to the
Annuitant. The number of Payments Certain is established when the
annuity is purchased and may be 60, 120, 180, 240, or any other number
accepted by Prudential.
The first monthly payment of a Life-Contingent annuity is payable on
the date the annuity is purchased. Monthly payments are payable on the
first day of each month thereafter throughout the Annuitant's
remaining lifetime. If the Annuitant dies before the death of his
Contingent Annuitant, monthly Contingent Annuity payments will become
payable. The first payment of Contingent Annuity will be payable on
the first day of each month thereafter throughout the Contingent
Annuitant's remaining lifetime. The last monthly payment is payable
for the month in which his death occurs. The amount of each monthly
Contingent Annuity payment will be a percentage of the monthly annuity
payment payable before the Annuitant's death. The percentage is
established when the annuity is purchased and may be 33 1/3%, 50%, 66
2/3% or 100%, or any other percentage accepted by Prudential. Under a
Life - Payment Certain Contingent annuity, a percentage payment will
not take effect until the end of the selected Payment Certain period.
GVA-1000 (as modified by Group Annuity Amendment Form GAA-7793)
Serial 410 4.3-4.4
(b) Payment Certain Annuity:
The first monthly payment of a Payment Certain annuity is payable on
the date the annuity is purchased. Monthly payments are payable on the
first day of each month thereafter until the total number of Payments
Certain specified when the annuity was purchased has been paid. The
number of Payments Certain may be 60, 120, 180, 240, or any other
number accepted by Prudential.
Other forms of annuity payments may be provided with the consent of
Prudential.
All annuities purchased under this contract will meet the requirements of
Code Section 401(a)(9) and the Regulations issued thereunder.
4.5 SMALL ANNUITIES AND ACCOUNTS:
If the total monthly amount of annuity which would otherwise be purchased
on behalf of any person under this contract and the companion contracts is
less than $50, Prudential may, in lieu of an annuity under this contract,
make payment in a single sum. The single sum will be equal to the amount
that would otherwise be applied to purchase an annuity as described in
section 4.4.
If no contributions have been made under this contract or any companion
contract for a Participant for a period of 24 months and the dollar value
of his Accounts under all the contracts is $1,000 or less, Prudential may
cancel his Account under this contract. If the Account is cancelled, its
dollar value will be paid to the Participant unless he directs payment to a
named financial institution. The Annual Account Charge will be made only if
no Account remains for him under a companion contract.
4.6 PAYEES:
Each annuity payment will be made to the Annuitant, Contingent Annuitant or
Beneficiary entitled to receive it.
GVA/GAA-1000/7327 (as modified by Group Annuity Amendment Form GAA-7793)
Serial 410 4.4-4.6
Provision V CHANGES:
5.1 CHANGES BY PRUDENTIAL:
Prudential may make changes in this contract as follows:
(a) The Annual Account Charge and the table of withdrawal charges may be
changed periodically on and after the second anniversary of the
Effective Date.
(b) The effective annual rate of the Administrative Expense Charge,
the minimum dollar contribution made on other than a periodic basis,
and
the terms and amounts, (excluding the withdrawal charge table) of
withdrawals and transfers pursuant to Provision III
may be changed periodically on and after the fifth anniversary of the
Effective Date.
(c) The schedules of annuity purchase rates may be changed periodically on
and after the tenth anniversary of the Effective Date.
Any change in the table of withdrawal charges and in Schedule D will apply
only to amounts added to Participants' Accounts on and after the date the
change takes effect. Any other change will apply to amounts in
Participants' Accounts whether added before or on and after the date the
change takes effect. Any change in the schedules of annuity purchase rates
will remain in effect for at least ten years.
Any change in accordance with this section will be made by giving notice to
the Contract-Holder at least 90 days before the date on which the change is
to take effect. Notice of changes, other than in the schedules of purchase
rates, will also be given to Participants.
5.2 CHANGES BY AGREEMENT:
This contract may also be changed in any respect at any time or times by
agreement between the Contract-Holder and Prudential.
5.3 CHANGES TO CONFORM TO LAW:
Prudential may change this contract as, in its discretion, it deems
appropriate to satisfy the requirements of any law or regulation
administered by a governmental agency regulating Qualified Retirement
Contributions funding arrangements.
5.4 PERSONS EMPOWERED TO ACT FOR PRUDENTIAL:
No agent or other person except one of the following officers of Prudential
may change this contract or bind Prudential.
Chairman and Chief Executive Officer Associate Actuary
President Secretary
Vice President Assistant Secretary
Actuary
GVA-1000 (as modified by Form GAA-7472A)
Serial 500 5.1-5.4
Provision VI. DISCONTINUANCE - TERMINATION OF CONTRACT:
6.1 DISCONTINUANCE OF ESTABLISHING PARTICIPANTS' ACCOUNTS:
Prudential may notify the Contract-Holder that on and after a specified
date no new Participants' Accounts will be established under this contract.
The specified date may not be earlier than 90 days after the date of the
notice. Thereafter, only contributions for persons who are Participants on
the specified date will be accepted hereunder. In all other respects this
contract will continue to operate in accordance with its terms.
6.2 DISCONTINUANCE OF CONTRIBUTIONS UNDER THIS CONTRACT:
Contributions under this contract will be discontinued with respect to all
Participants:
(a) at any time after receipt by Prudential of notice thereof from the
Contract-Holder,
(b) as of a date at least 90 days after notice to the Contract-Holder by
Prudential that no further contributions will be accepted hereunder.
After discontinuance the contract will continue to operate in accordance
with its terms with respect to Participants' Accounts.
6.3 TERMINATION OF CONTRACT:
This contract will terminate when all the following have occurred:
(a) no further contributions may be paid under this contract;
(b) no Participant's Account remains uncancelled; and
(c) no further annuity payments are payable from this contract.
GVA/GAA-1000/7327
Serial 600 6.1-6.3
11/89
Provision VII. GENERAL TERMS
7.1 CONTRACT-HOLDER:
Prudential will normally deal only with the Contract-Holder. However,
Prudential and the Contract-Holder may agree to do otherwise. Also, in some
cases the contract calls for dealing with another. Prudential will be
entitled to rely on any action taken or omitted by the Contract-Holder
pursuant to the terms of this contract.
The Contract-Holder may, from time to time, delegate to an agency certain
administrative powers and responsibilities which this contract assigns to
the Contract-Holder. Prudential is not bound to recognize any delegation
until it has received notice of it. The notice must specify those powers
and responsibilities and include evidence of acceptance by the agency. On
and after the date of receipt of the notice, Prudential will deal with the
agency with respect to those powers and responsibilities and will be
entitled to rely on any action taken or omitted by the agency with respect
thereto in the same manner as if dealing with the Contract-Holder. If any
agency fails or refuses to act with respect thereto, then the delegation
will be void for the purposes of this contract. Thereafter, Prudential will
deal only with the Contract-Holder. The Contract-Holder may give notice to
Prudential of delegation to another agency of specified powers and
responsibilities.
7.2 COMMUNICATIONS:
All communications to the Contract-Holder or to Prudential will be in
writing. They will be addressed to the Contract-Holder at its principal
office, or at such other address as it may communicate to Prudential. They
will be addressed to Prudential, c/o The Prudential Asset Management
Company, Inc., Defined Contribution Programs, X.X. Xxxxxxxx Office Park, 30
X.X. Xxxxxx Drive, Moosic, Pennsylvania 18507-1796, or at such other
address as it may communicate to the Contract-Holder. All communications to
any other person or organization dealing with Prudential will be addressed
to that person or organization at the last address of record.
7.3 PLACE OF PAYMENT - CURRENCY:
All payments to Prudential under this contract will be payable at its
office described above or at an address or to a representative as may be
specified by Prudential by notice to the Contract-Holder.
All payments under this contract, whether to or by Prudential, will be in
lawful money of the United States of America. Dollars and cents, as
specified in this contract, means lawful dollars and cents of United States
currency.
GVA/GAA-1000/7327 (as modified by Forms GAA-7472A/7472)
Serial 700 7.1-7.3
7.4 INFORMATION -- RECORDS:
The Contract-Holder will furnish all information which Prudential may
reasonably require for the administration of this contract. If the
Contract-Holder cannot furnish any required item of information, Prudential
may request the person concerned to furnish the information. Prudential
will not be liable for the fulfillment of any obligations in any way
dependent upon information unless and until it receives the information in
a form satisfactory to it.
Information furnished to Prudential may be corrected for demonstrated
errors in it unless Prudential has already acted to its prejudice by
relying on the information. Except for the corrections, information
furnished to Prudential will be regarded as conclusive. Prudential will
maintain the records necessary for its administration of this contract.
These records will be prepared from the information furnished to Prudential
and will constitute evidence as to the truth of the information in the
records.
7.5 MISSTATEMENTS:
If any relevant fact relating to any person is found to have been
misstated, the following will apply:
(a) The amount of annuity payable by Prudential will be that which would
be provided by the amount allocated to effect such annuity on the
basis of the correct information, without changing the date of first
payment of the annuity.
Any adjustment by Prudential of the amount or terms of payment made in
accordance with this section will be conclusive upon any other person
affected by it.
(b) The amount of any underpayment by Prudential will be paid in full with
the next payment due. The amount of any overpayment by Prudential will
be deducted to the extent possible from amounts payable thereafter.
7.6 BENEFICIARY:
If, as to any person, this contract provides for the payment of an amount
or amounts after the person dies to other than the person's Contingent
Annuitant, payment will be made to the Beneficiary the person named. A
person for whom an Account is held or an annuity is being paid under this
contract may name a Beneficiary to replace one previously named. However,
the Participant may instruct Prudential that his Contingent Annuitant or
Beneficiary is not to have this right to name a Beneficiary.
A Beneficiary may be named by filing a request with Prudential on a form
acceptable to it. It will become effective when entered on Prudential's
records. It will apply to any amounts payable after the request was
received by Prudential, except any withdrawals and payments made before the
request was entered on Prudential's records. Prudential will
acknowledge the naming of a Beneficiary.
GVA/GAA-1000/7327 (as modified by Forms GAA-7472A/7472)
Serial 710 7.4-7.6
The interest of any Beneficiary who dies before the Participant ceases upon
that Beneficiary's death. If there is no named Beneficiary when an amount
is payable to one, payment will be made to the estate of the last to die of
the Participant or Annuitant, his Contingent Annuitant, and his
Beneficiary. If a payment would be made to the estate of a Participant or
Annuitant, Prudential may make the payment to any one or jointly to any
number of his surviving relatives: spouse, children, parents, brother or
sisters.
Prudential, in determining whether a person is a relative of a Participant
or Annuitant or is a Beneficiary entitled to payment, may rely solely on
any evidence it deems acceptable. Each payment Prudential makes in reliance
thereon will be a valid discharge of its obligation under this contract as
to that payment.
If a series of payments becomes payable to a Beneficiary and the first
payment is less than $50, Prudential may choose to make payment in one sum.
Also, if the payee is not a natural person and a series of payments is
payable, Prudential may choose to make a payment in one sum. The one sum
payment will be equal to the value of the series of payments discounted at
interest from each payment due date to the date of the one sum payment. The
discount interest rate will be the interest rate in the schedule of annuity
purchase rates used to establish the series of payments.
7.7 DIVISIBLE SURPLUS:
The portion, if any, of the divisible surplus of Prudential accruing upon
this contract will be determined annually by the Board of Directors of
Prudential and credited to Participants' Accounts as determined by the
Board. (It is unlikely any divisible surplus will accrue upon this
contract.)
No annuity under this contract will be taken into account in the
determination of any divisible surplus to be credited to this contract.
7.8 LIMIT ON ASSIGNMENT:
To the extent applicable law requires, the interests in and payments from
this contract are not assignable or subject to the claims of any creditor.
7.9 CERTIFICATES:
Prudential will issue a certificate for each annuity which is effected
under this contract. If any law requires, Prudential will issue a
certificate to a Participant for whom an annuity has not yet been effected.
A certificate will be descriptive of the Participant's or Annuitant's
rights and duties under the contract.
7.10 ENTIRE CONTRACT -- CONSTRUCTION:
This document constitutes the entire contract.
This contract will be construed according to the laws of the jurisdiction
set forth on the first page.
GVA/GAA-1000/7327
Serial 720 7.6-7.10
9/84
SCHEDULE A
FORMS OF ANNUITY WHICH MAY BE PURCHASES
Form of Payment Payable Applicable Schedule
1. Life - Payment Certain Annuity. 1. Use Schedule B for allocation.
2. Life - Contingent Annuity. 2. Use Schedule C for allocation.
3. Payment Certain Annuity. 3. Use Schedule D for allocation.
Prudential may provide monthly amounts of annuity larger than those shown in the
following schedules for annuities purchased during any period specified by
Prudential. Annuity purchase rates for other forms of annuity consented to by
Prudential will be furnished on request. The following schedules may be changed
as provided in section 5.1.
GVA/GAA-1000/7327 (as modified by Forms GAA-7472A/7472)
Serial A-100 Schedule A
1/90
SCHEDULES
Monthly amount of annuity purchased per $10,000 of a Participant's Account,
after deduction from it of any taxes on annuity considerations that apply.
SCHEDULE B - Life-Payment Certain Annuity (120 Payments Certain)
Monthly Amount
--------------
If date the annuity is purchased is in:
Age 1990 1991 1995 2000
--- ---- ---- ------ ------
60 $52.53 $41.36 $40.58 $39.85
65 57.51 46.57 45.60 44.68
70 63.85 53.19 51.98 50.82
SCHEDULE C - Life-Contingent Annuity
Monthly Amount
--------------
If Annuitant and Contingent Annuitant have same date of birth.
If the date the annuity is purchased is in
--------------------------------------------------------------
Age 1990 1991 1995 2000
--- ---- ---- ---- ----
If specified percentage to Contingent Annuitant is 100%:
60 $46.96 $35.91 $35.31 $34.78
65 50.70 39.88 39.10 38.39
70 56.00 45.36 44.32 43.32
If specified percentage to Contingent Annuitant is 50%:
60 $49.99 $38.71 $38.00 $37.34
65 54.69 43.53 42.61 41.75
70 61.25 50.15 48.92 47.71
SCHEDULE D - Payment Certain Annuity
Monthly Amount
--------------
Number of If date the annuity is purchased is in:
Payments Certain 1990 1991 1995 2000
---------------- ---- ---- ---- ----
60 $173.38 $165.62 $164.73 $164.73
120 97.22 88.83 88.45 88.45
180 72.32 63.48 63.20 63.20
* * * *
The rates in these Schedules are to be used without adjustment only when the
facts that apply to the Participant and his annuity are as shown. Rates for
other facts will be furnished upon request.
GVA/GAA-1000/7327
Serial S-100 Schedules B-D
THE PRUDENTIAL [Logo] December 31, 1989
AMENDMENT TO BE ATTACHED TO AND MADE A PART OF
GROUP ANNUITY CONTRACTS
(the "Contracts")
ISSUED TO THE CONTRACT-HOLDER
BY
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
(the "Prudential")
The Group Annuity Contracts provide that the Contracts may be amended by
Prudential to satisfy the requirements of any law or regulation administered by
a governmental agency. Therefore, as a result of changes made to the Federal
Internal Revenue Code by the Tax Reform Act of 1986, the Contracts are hereby
amended in the following respects:
1. REGULAR CONTRIBUTIONS: Effective January 1, 1987, the contributions which
are payable under this contract for a Participant are the Qualified
Retirement Contributions described in Section 219(e) of the Federal
Internal Revenue Code of 1986, as amended (the "Code"), which the
Participant has directed for payment hereunder.
The contributions made for a Participant for any of his tax years are
subject to certain limits. They may not exceed the amounts specified in
Code Section 219(b)(1) for any tax year of the Participant.
A contribution may be made for a non-working spouse of a Participant.
However, the sum of the contributions made for the working and non-working
spouses may not exceed the amounts specified in Code Section 219(c)(2) for
any tax year of the Participant.
The contribution limits described in the two preceding paragraphs may be
reduced for certain Participants as provided in Code Section 219(g).
2. DEATH PAYMENTS: Effective January 1, 1987, death benefits payable under
the Contracts to a Participant's Beneficiary prior to the date (i) on which
an annuity has been purchased for the Participant or (ii) on which minimum
distributions have commenced to the Participant pursuant to Code Section
401(a)(9) will be paid as set forth in this item 2. Death benefits payable
under the Contracts to a Participant's Beneficiary on or after the date on
which an annuity has been purchased for the Participant or on which minimum
distributions have commenced to the Participant pursuant to Code Section
401(a)(9) will be paid as set forth in item 3. below.
GAA - 7793 19080
The Beneficiary may elect payment in any of the following forms, unless the
Participant has directed otherwise:
(a) a lump sum;
(b) an annuity form described in the Contracts, other than one which
provides for payment after the death of the Annuitant to a Contingent
Annuitant;
(c) any other settlement method to which Prudential consents; or
(d) a combination of all or any two of (a), (b) and (c) above.
Any lump sum payment to a Beneficiary will be subject to the following:
- If the lump sum is payable to the Participant's spouse, payment of
such lump sum will be made no later than the later of (i) the December
31 of the calendar year following the one in which the Participant's
death occurred or (ii) the December 31 of the calendar year in which
the Participant would have attained age 70 1/2.
- If the lump sum is payable to a Beneficiary who is other than the
Participant's Spouse, payment of such lump sum will be made no later
than the December 31 of the calendar year in which the fifth
anniversary of the Participant's death occurs.
If payments are to be made to a Beneficiary in a form other than a lump
sum, such payments will be subject to the following:
- If the Beneficiary is the Participant's spouse, payments must commence
no later than the later of (i) the December 31 of the calendar year
following the one in which the Participant's death occurred or (ii)
the December 31 of the calendar year in which the Participant would
have attained age 70 1/2. Such payments must be paid over the life of
the spouse or over a period not exceeding the life expectancy of the
spouse.
- If the Beneficiary is other than the Participant's spouse, payments
must commence no later than the December 31 of the calendar year
following the one in which the death of the Participant occurred. Such
payments must be paid over the life of the Beneficiary or over a
period not exceeding the life expectancy of the Beneficiary.
If:
(1) the Beneficiary does not elect a method of distribution and
(2) the Participant has not directed that a specific method of
distribution be provided for his Beneficiary,
then any death benefits becoming payable under the Contracts shall be paid
in a lump sum commencing no later than the December 31 of the calendar year
in which the fifth anniversary of the Participant's death occurs.
GAA-7793 -2-
All death benefits pursuant to this item 2. shall be made at the time and
in the manner prescribed in Code Section 401(a)(9) and the Regulations
issued thereunder.
3. DISTRIBUTIONS: Effective January 1, 1987, a Participant may elect to
receive a distribution of his Account(s) under the Contracts in any of the
following forms:
(a) a lump sum;
(b) any annuity form described in the Contracts;
(c) any other settlement method to which Prudential consents;
(d) a combination of all or any two of (a), (b) and (c) above.
Any portion of a Participant's Account(s) which is paid to him as a lump
sum will be subject to the withdrawal provisions under the Contracts.
Any payments becoming due to the Beneficiary of a Participant who began
receiving a distribution pursuant to paragraph (c) may, unless the
Participant has directed otherwise, be paid in any of the forms described
in this item 3., as elected by the Beneficiary, except for an annuity which
provides for payment after the death of the Annuitant to a Contingent
Annuitant.
Any payments becoming due to the Beneficiary of a Participant who began
receiving an annuity pursuant to paragraph (b) will, unless the Participant
has directed otherwise, be paid as provided under the terms of the annuity
as described in the Contracts.
Anything in the Contracts to the contrary notwithstanding, any payments
made to a Beneficiary in accordance with the two preceding paragraphs will
meet the requirements of Code Section 401(a)(9) and the Regulations issued
thereunder.
4. REQUIRED DISTRIBUTION DATE: Effective January 1, 1987, distributions are
required to commence to the Participant as of his Required Distribution
Date. A Participant's Required Distribution Date is the April 1 of the
calendar following the one in which the Participant attains age 70 1/2.
5. MINIMUM REQUIRED DISTRIBUTION: Effective January 1, 1987, Prudential will
notify a Participant, prior to such Participant's Required Distribution
Date, as determined from the records of Prudential on the basis of
information furnished to Prudential, that he may be required to receive a
minimum distribution from his Account(s) under the Contracts in accordance
with Code Section 401(a)(9) and the Regulations issued thereunder. Such
notice will include information so as to assist the Participant in
computing the amount of his required minimum distribution. Following such
notice, a Participant may request that the required minimum distribution be
paid to him from the Contracts by his Required Distribution Date.
GAA-7793 -3-
If the Participant does not request a distribution of any portion of his
Account(s) under the Contracts pursuant to this item 5., Prudential shall
be under no obligation to make such distribution.
6. ANNUITIES: Effective January 1, 1987, all annuities purchased under the
Contracts will meet the requirements of Code Section 401(a)(9) and the
Regulations issued thereunder.
THE PRUDENTIAL INSURANCE COMPANY
OF AMERICA
VICE PRESIDENT, CONTRACTS
GAA-7793 -4-
