THE PRUDENTIAL [Logo] 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: Plan:
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Effective Date: Group Annuity Contract No.:
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Eligible Classification:
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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/ Xxxxxx X. Xxxxxx
Date: Secretary /s/ Xxxxxxxx X. Xxxxxxxx
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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-120-87 (24) 19081-A
TABLE OF CONTENTS
PROVISION Serial Page
I. CONTRIBUTIONS - ACCOUNTS - CHARGES
1.1 Contributions. . . . . . . . . . . . . . . . . . 100
1.2 Participant's Accounts . . . . . . . . . . . . . 100
1.3 Annual Account Charge. . . . . . . . . . . . . . 110
1.4 Reports. . . . . . . . . . . . . . . . . . . . . 110
II. INVESTMENT ACCOUNT - INVESTMENT MANAGEMENT FEES--
UNIT VALUES - SUBACCOUNTS INCLUDED
2.1 The Prudential Variable Contract
Account-24 (VCA-24). . . . . . . . . . . . . . 200
2.2 Investment Management Fees . . . . . . . . . . . 200
2.3 Unit Values. . . . . . . . . . . . . . . . . . . 210
2.4 Subaccounts Included . . . . . . . . . . . . . . 210
III. WITHDRAWALS AND TRANSFERS - DEATH PAYMENTS
3.1 Participant's Withdrawals. . . . . . . . . . . . 300
3.2 Death Payments . . . . . . . . . . . . . . . . . 300
3.3 Transfers between Related Contracts. . . . . . . 310
3.4 Transfers to Another Financial Institution . . . 320
3.5 Transfers Involving a Similar Contract
of Another Employer. . . . . . . . . . . . . . 330
IV. ANNUITIES
4.1 Annuity Elections. . . . . . . . . . . . . . . . 400
4.2 Annuity - Single Sum Payment Combination . . . . 400
4.3 Small Annuities and Accounts . . . . . . . . . . 400
4.4 Terms of Payment of Annuities. . . . . . . . . . 400
4.5 Payees . . . . . . . . . . . . . . . . . . . . . 410
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-120-87 (24)
TC-100
TABLE OF CONTENTS
(Continued)
Provision Serial Page
7.7 Plan Changes . . . . . . . . . . . . . . . . . . 720
7.8 Divisible Surplus. . . . . . . . . . . . . . . . 720
7.9 Limit on Assignment. . . . . . . . . . . . . . . 720
7.10 Certificates . . . . . . . . . . . . . . . . . . 730
7.11 Entire Contract - Construction . . . . . . . . . 730
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-120-87 (24)
TC-100
Provision I. CONTRIBUTIONS - ACCOUNTS - CHARGES:
1.1 CONTRIBUTIONS:
(a) Regular Contributions:
The contributions which are payable under this contract for a
Participant are the payments made for him by his employer pursuant to a
Salary-Annuity Agreement and any amounts contributed for him under the
Plan, if any, and directed by the Participant for payment hereunder.
For each Participant, total contributions (including those made pursuant
to a Salary Annuity Agreement) to this contract and any companion
contract must be made at the rate of at least $200 during each
twelve-month period. Contributions will be transmitted by the
Contract-Holder or the employer.
A Participant is a person for whom contributions have been paid under
this contract and whose Participant's Accounts (see section 1.2) have
not been cancelled.
A Salary-Annuity Agreement is an agreement between an employee in an
Eligible Classification and his employer. It is also an agreement
between a Participant who has ceased to be an employee in an
Eligible Classification and his new employer. Under the Agreement,
the employer agrees to pay amounts to purchase an annuity for the
employee meeting the conditions of Section 403(b) of the Federal
Internal Revenue Code.
(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:
Contributions paid under this contract for a Participant may be invested in
any one or more of the Subaccounts described in section 2.4. as directed by
the Participant. Prudential will establish a separate "Participant's
Account" with respect to each Subaccount in which contributions are invested
on behalf of a Participant. Each Account is expressed in Units of the
applicable Subaccount.
The number of Units added to a Participant's Account as a result of adding a
contribution to a Subaccount is determined by dividing the dollar amount of
the contribution by the appropriate Unit Value for the day the contribution
is added. (See section 2.3 for a description of each Unit Value.) A number
of Units will be subtracted from a
GVA-120-87 (24)
Serial 100 1.1-1.2
Participant's Account on each day on which a withdrawal is made from the
Account. The number of Units is equal to the number requested for withdrawal
or, if applicable, the number determined by dividing the dollar amount to be
withdrawn by the appropriate Unit Value for the day of withdrawal.
Each Account maintained for a Participant is the sum of the Units added to
it, less the sum of the Units subtracted from it. The dollar value of each
Account as of any day is the product of the number of Units in the Account
at the close of business on that day and the appropriate Unit Value for that
day.
A Participant has a non-forfeitable interest in any Account established for
him. All Accounts are subject to charges described later.
1.3 ANNUAL ACCOUNT CHARGE:
On the last business day (see section 2.3) of each calendar year an
amount will be withdrawn from the Accounts of each Participant which,
in aggregate, will be equal to the Annual Account Charge. Also, on
any other day on which all of a Participant's Accounts are cancelled,
an amount will be withdrawn from them which, in aggregate, will be
equal to the Annual Account Charge. However, no Charge will be
withdrawn if the Participant's Accounts are being cancelled on a
January l to purchase an annuity for him under this contract.
The Annual Account Charge is $20.
A Participant may have other Accounts for Salary-Annuity Agreement
payments or Plan payments, if applicable, under other group annuity
contracts issued to the Contract-Holder by Prudential (each one is
called a "companion contract"). If so, the total Annual Account
Charge that applies to all his Accounts will not exceed the amount
shown above. This charge will be shared among all such Accounts as
Prudential determines. Also, no charge will be withdrawn from a
Participant's Accounts under this contract when they are cancelled
unless no amounts remain in an Account for him under any 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 this report.
GVA-120-87 (24)
Serial 110 1.3-1.4
Provision II. INVESTMENT ACCOUNT - INVESTMENT MANAGEMENT FEES - UNIT VALUES -
SUBACCOUNTS INCLUDED:
2.1 THE PRUDENTIAL VARIABLE CONTRACT ACCOUNT - 24 (VCA-24):
VCA-24 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-24 are intended to be composed primarily
of shares of The Prudential Series Fund, Inc. ("PSF"), an open-end
diversified, management investment company registered under the
Investment Company Act of 1940. VCA-24 is divided into Subaccounts,
each of which is invested only in a corresponding Portfolio of PSF.
The Portfolios of PSF in which the Subaccounts are invested are set
forth in section 2.4. Prudential will invest and reinvest the assets
held in each Subaccount in accordance with the investment objectives
and policies established for it.
The value of the assets of a Subaccount is determined daily by
multiplying the number of PSF shares held by that Subaccount by the "Net
Asset Value" of each share and adding the value of dividends declared
by PSF for the corresponding Portfolio but not yet paid.
The "Net Asset Value" per share of each Portfolio is computed by
adding the sum of the value of the securities held by that Portfolio
plus any cash or other assets it holds, subtracting all its
liabilities, and dividing the result by the total number of shares
outstanding of that Portfolio at such time. Liabilities of the
Portfolio include the costs of portfolio transactions, legal and
accounting expenses, custodial and transfer agency fees, and the
Investment Management Fees applicable to that Portfolio. (See section
2.2.)
The total value of the assets of all Subaccounts comprising VCA-24 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 the VCA-24 Subaccounts.
Assets held in the VCA-24 Subaccounts equal in value to the reserve
liability will be held for the sole benefit of all contracts which
participate in VCA-24. The amount, if any, by which the total value
of the assets of all Subaccounts exceeds the total reserve liability
will be subject to the exclusive control of Prudential. Thus,
Prudential may, from time to time make transfers between the VCA-24
Subaccounts 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 INVESTMENT MANAGEMENT FEES:
On each Business Day, the assets of each PSF Portfolio are reduced by an
Investment Management Fee. The amount of the Fee for each Portfolio on
GVA-120-87 (24)
Serial 200 2.1-2.2
any Business Day is equal to the product of (a) and (b) where:
(a) is the rate of the Investment Management Fee applicable to the
Portfolio and
(b) is the average daily assets of the Portfolio.
The rate of the Investment Management Fee currently applicable to each
Portfolio is shown in section 2.4. The Investment Management Fee for a
Portfolio may be changed from time to time pursuant to a change in the
investment advisory agreement for that Portfolio. Prudential will notify the
Contract-Holder of any such change.
2.3 UNIT VALUES:
A Participant's participation in one or more Subaccounts of VCA-24 will be
reflected in Units of each such Subaccount.
The following applies to each Subaccount described in section 2.4.
The Unit Value for any Business Day is the dollar value of one Unit for that
Business Day. ("Business Day" means a day the New York Stock Exchange is
open for trading.) The initial Unit Value was $1.00. The Unit Value for any
subsequent Business Day is determined as of the end of that Business Day by
multiplying the Unit Change Factor for that Business Day by the Unit Value
for the immediately preceding Business Day. The Unit Value for any day
which is not a Business Day is equal to the Unit Value for the next
Business Day. The Unit Value will go up or down in accordance with the
Unit Change Factor described below.
The Unit Change Factor for a Subaccount of VCA-24 for any Business Day is
(i) divided by (ii), less (iii) where:
(i) is the value of the assets of the Subaccount as of the end of the
Business Day, but before taking into account any contributions,
withdrawals or transfers made on such Day, and
(ii) is the value of the assets of the Subaccount as of the end of the
preceding Business Day, and
(iii) is the daily equivalent of 0.75% (the Administrative Expense
Charge).
This section may be changed as provided in section 5.1.
2.4 SUBACCOUNTS INCLUDED:
This section contains a description of the Subaccounts included in this
contract. It describes the investment portfolio and other features of each
Subaccount.
GVA-120-87 (24) (as modified by GAA-7654)
Serial 210 2.3-2.4
VCA-24-B
Subaccount: Bond Subaccount invested in the
Bond Portfolio of PSF (VCA-24-B).
Investments: Primarily medium and long-term
debt securities.
Unit name: VCA-24-B Unit.
Frequency of Unit Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective
from the assets of the Portfolio: annual rate of .40%.
GVA-120-87 (24)
Serial 220-B 2.4
VCA-24-S
Subaccount: Common Stock Subaccount invested
in the Common Stock Portfolio of
PSF (VCA-24-S).
Investments: Primarily common stocks.
Unit name: VCA-24-S Unit.
Frequency of Unit Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective
from the assets of the Portfolio: annual rate of .45%.
GVA-120-87 (24)
Serial 220-S 2.4
VCA-24-AM
Subaccount: Aggressively Managed Flexible
Subaccount invested in the
Aggressively Managed Flexible
Portfolio of PSF. (VCA-24-AM).
Investments: Aggressively managed mix of money
market instruments, long-term
bonds and common stocks.
Unit name: VCA-24-AM Unit.
Frequency of Unit Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective
from the assets of the Portfolio: annual rate of .60%.
GVA-120-87 (24)
Serial 220-AM 2.4
VCA-24-CM
Subaccount: Conservatively Managed Flexible
Subaccount invested in the
Conservatively Managed Flexible
Portfolio of PSF (VCA-24-CM).
Investments: Conservatively managed mix of
money market instruments,
intermediate-term notes and bonds,
and common stocks of established
companies.
Unit name: VCA-24-CM Unit.
Frequency of Unit Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective
from the assets of the Portfolio: annual rate of .55%.
GVA-120-87 (24)
Serial 220 - CM 2.4
VCA-24-SI
Subaccount: Stock Index Subaccount invested in
the Stock Index Portfolio of PSF
(VCA-24-SI).
Investments: Primarily common stocks, invested
in such a manner as to attempt to
duplicate the investment results
of the Standard & Poor's 500
Composite Stock Price Index.
Frequency of Unit
Value calculation: Every Business Day.
Investment Management Fee deducted Daily equivalent of effective
from the assets of the Portfolio: annual rate of 0.35%.
GVA-120-87 (24) (as modified by GAA-7654)
Serial 220-SI 2.4
Provision III. WITHDRAWALS AND TRANSFERS - DEATH PAYMENTS:
3.1 PARTICIPANT'S WITHDRAWAL:
A Participant may make withdrawals from his Participant's Accounts but only
under the conditions permitted by the Plan, if any. The minimum withdrawal
from any single Account is $500, or the dollar value of that 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 first Account of a Withdrawal Charge per $1.00
Participant was established hereunder* being withdrawn.**
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First 24 months $0.07
Next 36 months 0.06
Next 60 months 0.04
Next 60 months 0.03
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. In addition, no charge is made if the withdrawal is
made for reasons of Financial Hardship or Disability Retirement pursuant to
the terms of the Plan, if any.
As of the first day no amounts remain in a Participant's Account under this
contract or in an Account for him under a companion contract, all of his
Accounts hereunder are cancelled.
This section may be changed as provided in section 5.1.
3.2 DEATH PAYMENTS:
If a Participant dies before his Participant's Accounts have been cancelled,
the dollar value will be paid to his Beneficiary (see section 7.6). If the
Beneficiary is other than the Participant's spouse, the payment will be made
in one sum within 5 years of the Participant's death unless the Participant
has directed Prudential to purchase an annuity for
GVA-120-87 (24)
Serial 300 3.1-3.2
the Beneficiary. If the Participant's spouse is the Beneficiary, the payment
will be made in one sum no later than the latest date on which the spouse is
permitted to defer the distribution under law, unless the Participant has
directed Prudential to purchase an annuity for the spouse. Instead of a one
sum payment, the Beneficiary may elect to have all or a portion of the
dollar value of the Participant's Accounts applied to purchase an
annuity. Proof of the Participant's death must be received by Prudential
before any payment will be made. Any payment made pursuant to this section
must be consistent with the terms of the Plan, if any.
The Beneficiary's annuity election must be made before the Participant's
Account is distributed. The annuity form may be any of those described in
section 4.4. If annuity payments are to start at a future date, all or an
appropriate portion of the Participant's Accounts will be maintained in
accordance with the Beneficiary's election in the same manner as for the
Participant. The date for payments to start must be on or before the
latest date on which the Beneficiary is permitted to defer the distribution
under law. No contributions may be made to an Account hereunder after the
Participant's death.
If a one 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.
Any annuity payments to a Beneficiary will be subject to the following:
(a) If an annuity is payable to the Participant's spouse, it must provide
for payment to be made over the life of the spouse (or over a period
not exceeding the life expectancy of the spouse), and
(b) If an annuity is payable to a Beneficiary who is other than the
Participant's spouse, it must provide for payment to be made over the
life of the Beneficiary (or over a period not exceeding the life
expectancy of the Beneficiary).
As of the first day no amounts remain in any of the Participant's Accounts
hereunder or in an Account with respect to the Participant under a companion
contract, the Participant's Accounts are cancelled. Section 3.1 does not
apply.
3.3 TRANSFERS BETWEEN RELATED CONTRACTS:
A Participant may transfer an amount from one or more of his Participant's
Accounts to another Account maintained for him under this contract or to an
Account maintained for him under a companion contract but only under the
conditions permitted by the Plan, if any. The minimum withdrawal to provide
a transfer is $500 from any single Account, or the dollar value of the
Account if smaller. The transfer will normally be made within seven days of
Prudential's 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 Account from
which the transfer is made.
GVA-120-87 (24)
Serial 310 3.3
Amounts may be transferred to this contract from a companion contract and
will be added to one or more Subaccounts as directed by the Participant. 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.
3.4 TRANSFERS TO ANOTHER FINANCIAL INSTITUTION:
(a) At the Request of a Participant:
The Withdrawal Value of any of the Participant's Accounts may be
transferred to another financial institution but only under the
conditions permitted by the Plan, if any. 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 a full settlement of Prudential's liability for the
Participant's Account from which the transfer is made.
(b) At the Contract-Xxxxxx's Request:
The Contract-Holder may request Prudential to make transfer payments on
behalf of all Participants to another financial institution 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 Accounts have 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 one or
more of his Accounts cancelled and included in the transfer payment to be
made but only under the conditions permitted by the Plan, if any. Each
person who does not make an election to transfer will have his Account or
Accounts retained under this contract pursuant to its terms.
The Account or Accounts of Participants and Beneficiaries who make the
election will be cancelled as of the Transfer Date and an amount equal to
the sum of the Withdrawal Values, expressed in Units of the cancelled
Accounts, times the appropriate Subaccount Unit Value for the day of
withdrawal will be transferred within seven days thereafter.
GVA-120-87 (24)
Serial 320 3.4
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.
3.5 TRANSFERS INVOLVING A SIMILAR CONTRACT OF ANOTHER EMPLOYER:
A Participant may cease to be employed by an employer who pays contributions
under this contract. 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 but only under the conditions permitted by the Plan, if any. The
transfer will normally be made within seven days of receipt of the request.
The dollar value of all of the Participant's Accounts will be the amount
transferred. The Accounts 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 an employer
who pays contributions under this contract. The transferred amount will be
treated as a contribution paid for that Participant and will be added to one
or more Subaccounts, as directed by the Participant. 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-120-87 (24)
Serial 330 3.5
Provision IV. ANNUITIES:
4.1 ANNUITY ELECTIONS:
A Participant may, upon notice to Prudential, elect to have his
Participant's Accounts applied to purchase an annuity for him but only
under the conditions permitted by the Plan, if any. The dollar value of the
Accounts will be applied.
The schedule of annuity purchase rates that applies is determined from
Schedule A. The monthly amount of any annuity is determined from the
schedule of purchase rate for that annuity.
As of the first day no amounts remain in any of the Participant's Accounts
under this contract or in an Account for him under a companion contract, his
Accounts hereunder are cancelled.
If the Participant's Accounts have not been cancelled before the month in
which he reaches the latest age at which he is permitted to defer his
distribution under law, a 120 monthly Payment Certain annuity will be
purchased for him at the beginning of that month (see section 4.4).
4.2 ANNUITY - SINGLE SUM PAYMENT COMBINATION:
A Participant may elect that only a portion of one or more of his
Participant's Accounts be applied to purchase an annuity with the balance
being paid in a single sum. The portion used to purchase an annuity will be
subject to section 4.1 and the balance to section 3.1.
4.3 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
4.1.
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 Accounts under this contract. If the Accounts are cancelled, the
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 any companion contract.
4.4 TERMS OF PAYMENT OF ANNUITIES:
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.
GVA-120-87 (24)
Serial 400 4.1-4.4
(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
the month following the month in which the Annuitant's death occurs.
Monthly Contingent Annuity payments are payable on the first day of
each month thereafter throughout their 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.
(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.
No form of annuity will be purchased which provides for payments:
(i) to a Beneficiary or a Contingent Annuitant who is not the Annuitant's
spouse if a present value calculation shows that the Annuitant's
expected payments will not be more than 50% of all the expected annuity
payments, or
(ii) to a Contingent Annuitant which are greater in monthly amount than the
payments to the Annuitant.
4.5 PAYEES:
Each annuity payment will be made to the Annuitant, Contingent Annuitant or
Beneficiary entitled to receive it.
GVA-120-87 (24)
Serial 410 4.5
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 and the
terms and amounts (excluding the withdrawal charge table) of
withdrawals and transfers pursuant to Provision III may he 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 AGREEMENTS:
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.
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-120-87 (24)
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) when the Plan, if any, terminates,
(c) as of a date at least 90 days after notice to the Contract-Holder by
Prudential that no further contributions will be accepted hereunder, or
(d) as of the effective date of any Plan change to which Prudential is
unable or unwilling to give its consent (see section 7.7)
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 Accounts remain uncancelled; and
(c) no further annuity or transfer payments are payable from this contract.
GVA-120-87 (24)
Serial 600 6.1-6.3
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., 00 Xxxxxxx Xxxx, Xxxxxxx Xxxx, Xxx Xxxxxx 00000, 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-120-87 (24)
Serial 700 7.l-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 purchase the 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 a Beneficiary 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-120-87 (24)
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, brothers 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 PLAN CHANGES:
If the employer maintains a written Plan of benefits, the name of such Plan
is shown on the first page of this contract. This contract applies to the
terms of the Plan in effect on the Effective Date and to each Plan change if
Prudential consents. The Contract-Holder will furnish Prudential with a copy
of the Plan. While this contract is active, the Contract-Holder will also
furnish a copy of each Plan change.
7.8 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.
7.9 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.
GVA-120-87 (24)
Serial 720 7.7-7.11
7.10 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.
7.11 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-120-87 (24)
Serial 730 7.10-7.11
SCHEDULE A
FORMS OF ANNUITY WHICH MAY BE PURCHASED
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-120-87 (24)
Serial A-100 Schedule A
1/88
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 1988 1990 1995 2000
--- ---- ---- ---- ----
60 $52.94 $41.56 $40.58 $39.85
65 58.01 46.81 45.60 44.68
70 64.46 53.48 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 1988 1990 1995 2000
--- ---- ---- ---- ----
If specified percentage to Contingent Annuitant is 100%:
60 $47.28 $36.06 $35.31 $34.78
65 51.11 40.07 39.10 38.39
70 56.56 45.62 44.32 43.32
If specified percentage to Contingent Annuitant is 50%:
60 $50.36 $38.89 $38.00 $37.34
65 55.18 43.77 42.61 41.75
70 61.91 50.47 48.92 47.71
SCHEDULE D - Payment Certain Annuity
Monthly Amount
--------------
Number of If date the annuity is purchased is in:
Payments Certain 1988 1990 1995 2000
---------------- ---- ---- ---- ----
60 $173.76 $165.62 $164.73 $164.73
120 97.43 88.93 88.45 88.45
180 72.47 63.55 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-120-87 (24)
Serial S-100 Schedules B-D
