(12-10-04)
GROUP FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT
GROUP ANNUITY CONTRACT NO. [12345]
ISSUE DATE:
CONTRACT HOLDER: [EMPLOYER OR TRUSTEE]
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This Group Annuity Contract is issued in consideration of payment of the
Contributions.
The terms of this Group Annuity Contract, which consists of the following pages,
including the Application are agreed to by the Contract Holder and AXA Equitable
Life Insurance Company ("AXA Equitable").
In this Contract "we", "our" and "us" mean AXA Equitable.
AXA EQUITABLE LIFE INSURANCE COMPANY
[GRAPHIC OMITTED] [GRAPHIC OMITTED]
Xxxxxxxxxxx X. Xxxxxxx Xxxxxxx Xxxxxxx
President, Chairman and Senior Vice President, Secretary and
Chief Executive Officer Associate General Counsel
GROUP FLEXIBLE PREMIUM COMBINATION FIXED AND VARIABLE DEFERRED ANNUITY CONTRACT.
THE PORTION OF THE ANNUITY ACCOUNT VALUE HELD IN THE VARIABLE SEPARATE ACCOUNT
MAY INCREASE OR DECREASE IN VALUE.
THE INTEREST RATE IS GUARANTEED WITH RESPECT TO THE PORTION OF THE ANNUITY
ACOUNT VALUE HELD IN THE GUARANTEED INTEREST OPTION.
THIS GROUP ANNUITY CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA THAT MAY
RESULT IN A POSITIVE OR NEGATIVE ADJUSTMENT IN BENEFITS. THE MARKET VALUE
ADJUSTMENT WILL NOT APPLY UPON TRANSFER TO A NEW FIXED MATURITY OPTION OR TO
ANOTHER INVESTMENT OPTION ON THE FIXED MATURITY OPTION EXPIRATION DATE AS
DESCRIBED IN THE SECTION "FIXED MATURITY OPTIONS." (THE PRECEDING SENTENCE IN
ITALICS IS A NY REQUIREMENT ON THE FRONT COVER) FIXED MATURITY OPTIONS ARE ONLY
AVAILABLE IF THE RATE TO MATURITY IS MORE THAN 3%.
FIXED ANNUITY BENEFITS- NON-PARTICIPATING
[This Group Annuity Contract provides for an annuity benefit with Variable
Investment Options. If elected, this benefit will fluctuate with the investment
results of the Variable Investment Options selected under the benefit. It will
increase when the average annual rate of net investment return is more than 5%
and decrease if it is less than 5%. The combined maximum annual Variable
Separate Account charges applicable to this annuity benefit will be 1.50%;
therefore, the smallest annual rate of investment return, required to ensure
that the dollar amount of variable annuity payouts will not decrease is 6.5%.]
[THIS PARAGRAPH WILL ONLY APPEAR IN THE NY CONTRACT].
2004TSAGAC
TABLE OF CONTENTS PAGE
PART I - DEFINITIONS 3
PART II - INVESTMENT OPTIONS 7
SECTION 2.01 AVAILABILITY AND TYPES OF INVESTMENT OPTIONS
SECTION 2.02 GUARANTEED INTEREST OPTION-CONDITIONS
SECTION 2.03 SEPARATE ACCOUNT
SECTION 2.04 VARIABLE INVESTMENT OPTIONS/ACCUMULATION
UNITS AND UNIT VALUES
SECTION 2.05 CHANGES WITH RESPECT TO VARIABLE SEPARATE
ACCOUNTS
SECTION 2.06 FIXED MATURITY OPTION
PART III - CONTRIBUTIONS, DISCONTINUANCE AND ALLOCATIONS 13
SECTION 3.01 CONTRIBUTIONS
SECTION 3.02 ALLOCATIONS
SECTION 3.03 DISCONTINUANCE OF CONTRIBUTIONS
PART IV - TRANSFERS AMONG INVESTMENT OPTIONS 15
SECTION 4.01 TRANSFER REQUESTS
SECTION 4.02 TRANSFER RULES
PART V - DISTRIBUTIONS AND DEATH BENEFITS 17
SECTION 5.01 RESTRICTIONS ON DISTRIBUTIONS
SECTION 5.02 GENERAL WITHDRAWALS
SECTION 5,03 DIRECT ROLLOVER WITHDRAWALS
SECTION 5.04 DEATH BENEFIT
SECTION 5.05 BENEFICIARY CONTINUATION OPTION
PART VI - PLAN LOANS 22
SECTION 6.01 LOANS
2004TSAGAC 1
TABLE OF CONTENTS (CONTINUED)
PART VII - ANNUITY BENEFITS AND REQUIRED MINIMUM DISTRIBUTIONS 25
SECTION 7.01 FORMS OF DISTRIBUTION
SECTION 7.02 ELECTION/REPORT FOR ANNUITY BENEFIT
SECTION 7.03 ANNUITY BENEFIT FORMS
SECTION 7.04 AMOUNT OF ANNUITY BENEFITS
SECTION 7.05 ANNUITY BENEFIT
SECTION 7.06 REQUIRED MINIMUM DISTRIBUTIONS
SECTION 7.07 COMMENCEMENT OF ANNUITY BENEFITS
SECTION 7.08 CHANGES
SECTION 7.09 SPOUSAL AND ANNUITY CONSENT RULES
SECTION 7.10 CONDITIONS
PART VIII - PARTICIPANT ACCOUNTS; FORFEITURE ACCOUNT 31
SECTION 8.01 PARTICIPANT ACCOUNTS
SECTION 8.02 FORFEITURES/FORFEITURE ACCOUNT
PART IX - CHARGES 32
SECTION 9.01 WITHDRAWAL CHARGES
SECTION 9.02 EARLY WITHDRAWAL CHARGE
SECTION 9.03 THIRD PARTY TRANSFERS
SECTION 9.04 EMPLOYER EXPENSE DEDUCTION
SECTION 9.05 CHARGES DEDUCTED FROM ANNUITY ACCOUNT VALUE
SECTION 9.06 TRANSFER AND LOAN CHARGES
SECTION 9.07 VARIABLE SEPARATE ACCOUNT CHARGE
SECTION 9.08 PLAN RECORD-KEEPING SERVICE CHARGES
SECTION 9.09 APPLICABLE TAX CHARGES
SECTION 9.10 CHANGES
PART X UNALLOCATED ACCOUNT 34
PART XI - GENERAL PROVISIONS 35
SECTION 11.01 CONTRACT
SECTION 11.02 STATUTORY COMPLIANCE
SECTION 11.03 DEFERMENT
SECTION 11.04 ASSIGNMENTS, NONTRANSFERABILITY,
NONFORFEITABILITY
SECTION 11.05 OWNERSHIP RIGHTS
SECTION 11.06 EMPLOYER'S RESPONSIBILITY
SECTION 11.07 PLAN STATUS
SECTION 11.08 TERMINATION OF THE CONTRACT
SECTION 11.09 DISQUALIFICATION OF PLAN OR CONTRACT
SECTION 11.10 MANNER OF PAYMENT
SECTION 11.11 REPORTS AND NOTICES
SECTION 11.12 CONTRACT HOLDER'S
RESPONSIBILITY
2004TSAGAC 2
PART I - DEFINITIONS
SECTION 1.01-ACCUMULATION UNIT
"Accumulation Unit" means a unit of measure used to calculate the variable
Annuity Account Value during the accumulation period.
SECTION 1.02-ACCUMULATION UNIT VALUE
"Accumulation Unit Value" means the dollar value of each Accumulation Unit in a
Variable Separate Account on a given date.
SECTION 1.03-ANNUITY ACCOUNT VALUE
"Annuity Account Value" means with respect to each Participant the sum of the
amounts held for the benefit of the Participant in the Investment Options,
including any amount in the Loan Reserve Account. The Annuity Account Value at
any time may be reduced by the amount of any forfeiture, if applicable, as
described in the section "Forfeitures/Forfeiture Account".
SECTION 1.04-ANNUITY BENEFIT
"Annuity Benefit" means a benefit payable by us pursuant to Part VII of this
Contract.
SECTION 1.05-ANNUITY COMMENCEMENT DATE
"Annuity Commencement Date" means the date on which annuity payments to the
Participant are to commence as reported to us by the Employer.
SECTION 1.06-ANNUITY UNIT
"Annuity Unit" means a unit of measure used after the Annuity Commencement Date
to calculate the amount of variable annuity payout.
SECTION 1.07-APPLICATION
"Application" means the Application for the Group Annuity Contract or
participation in this Group Annuity Contract by the Employer and accepted by us.
SECTION 1.08-BENEFICIARY
"Beneficiary" means the person designated by the Participant under the Plan to
receive the death benefit.
SECTION 1.09-BUSINESS DAY
"Business Day" means any day on which the New York Stock Exchange is open for
trading and generally ends at 4:00 P.M., Eastern Time, or such other time as we
state in writing to the Participant.
SECTION 1.10-CASH VALUE
"Cash Value" means an amount equal to the Annuity Account Value held for the
Participant, less any charge that applies and less the amount of the entire
unpaid balance of any loan, including interest due but not paid.
2004TSAGAC 3
SECTION 1.11-CERTIFICATE
"Certificate" means the document issued to each Participant as evidence of the
Participant's enrollment under this Contract.
SECTION 1.12-CODE
"Code" means the Internal Revenue Code of 1986, as now or hereafter amended, or
any corresponding provisions of prior or subsequent United States revenue laws,
and includes applicable tax regulations.
SECTION 1.13-CONTRACT
"Contract" means the Group Annuity Contract and Application between the Contract
Holder, Employer and us providing a variable annuity to fund the Plan. The terms
of the Contract are agreed to by the Employer and us.
SECTION 1.14-CONTRACT DATE
"Contract Date" means the date following our acceptance of an Application with
respect to a Plan.
SECTION 1.15-CONTRACT HOLDER
"Contract Holder" means the person or entity as set forth on the cover page of
this Contract.
SECTION 1.16-CONTRACT YEAR
"Contract Year" with respect to a Plan means the twelve-month period starting on
(i) the Contract Date and (ii) each anniversary of the Contract Date, unless we
agree to another period.
SECTION 1.17-CONTRIBUTION
"Contribution" means a payment remitted to us under the section "Contributions".
SECTION 1.18-EMPLOYER
"Employer" means either of the following:
(a) An organization described in Section 501(c)(3), which is exempt from
federal income tax under Section 501 (a) of the Code; or
(b) A State, a political subdivision of a State or an agency or instrumentality
of any of the foregoing, with respect to employees who perform services for
any educational organization, as described in Section 170(b)(1)(A)(ii) of
the Code.
SECTION 1.19-ERISA
"ERISA" means Employee Retirement Income Security Act of 1974, as amended.
SECTION 1.20- EXPIRATION DATE
"Expiration Date" means the date that a Fixed Maturity Option matures.
SECTION 1.21-FIXED MATURITY AMOUNT
"Fixed Maturity Amount" means the amount held with respect to a given Fixed
Maturity Option. The Fixed Maturity Amount reflects Contributions and transfers
made to a Fixed Maturity Option, plus interest at the Rate to Maturity, minus
any withdrawals, transfers and charges, if any, deducted from a Fixed Maturity
Option.
2004TSAGAC 4
SECTION 1.22-FIXED MATURITY OPTION
"Fixed Maturity Option" means the Investment Option that specifies a period of
time during which the Rate to Maturity is guaranteed to remain the same for
amounts allocated to and held for such period until its expiration.
SECTION 1.23-GUARANTEED INTEREST OPTION
"Guaranteed Interest Option" means the Investment Option that pays interest at
Guaranteed Interest Rates set by us from time to time.
SECTION 1.24-GUARANTEED INTEREST RATE
"Guaranteed Interest Rate" means the effective annual rate at which interest
accrues on amounts allocated to the Guaranteed Interest Option.
SECTION 1.25-INVESTMENT OPTION
"Investment Option" means a Variable Investment Option, Fixed Maturity Option,
or Guaranteed Interest Option.
SECTION 1.26-PARTICIPANT
"Participant" means an individual covered under the Plan who has been enrolled
under this Contract and for whom we maintain an Annuity Account Value.
SECTION 1.27-PARTICIPATION DATE
"Participation Date" means the earlier of (a) the Business Day on which we issue
a Certificate to the Participant under this Contract and (b) the Business Day on
which the first Contribution for the Participant is received at the Processing
Office.
The original Participation Date is the Business Day on which the Participant was
enrolled under a Prior Contract/Certificate if applicable.
SECTION 1.28-PARTICIPATION YEAR
"Participation Year" means, with respect to the Participant, the twelve-month
period starting on (i) the Participation Date and (ii) each anniversary of the
Participation Date, unless we agree to another period.
SECTION 1.29-PLAN
"Plan" means the plan, arrangement or program maintained or adopted by the
Employer that is intended to meet the requirements of Section 403(b) of the Code
including an annuity contract under Section 403(b)(1) or a custodial account
under Section 403(b)(7) of the Code and which is named in the Application.
SECTION 1.30-PORTFOLIO
"Portfolio" means a separate class (or series) of shares of a specified trust or
investment company, where each class (or series) represents a separate portfolio
in the specified trust or investment company.
SECTION 1.31-PRIOR CONTRACT
"Prior Contract" means a contract or certificate issued by us and from which the
Employer and we, with the Participant's consent, if required, and if such
contract or certificate is owned by the Participant, have agreed to transfer
certain assets or liabilities associated with the Plan, if applicable, to this
Contract.
2004TSAGAC 5
SECTION 1.32-PROCESSING OFFICE
"Processing Office" means our administrative office or such other location as we
may designate upon written notice to the Employer.
SECTION 1.33-PROCESSING DATE
"Processing Date," means the day(s) we deduct charges from the Annuity Account
Value.
SECTION 1.34-RATE TO MATURITY
"Rate to Maturity" means a specified interest rate that we credit to amounts
allocated to a Fixed Maturity Option. Different Fixed Maturity Options have
different Rates to Maturity.
SECTION 1.35-SEPARATE ACCOUNT
"Separate Account," means Separate Account [48] (which contains the Fixed
Maturity Options) and the Variable Separate Account(s).
SECTION 1.36-TRANSACTION DATE
"Transaction Date" means the Business Day we receive a Contribution or a
transaction request at the appropriate Processing Office. Transaction requests
must be in a form acceptable to us.
SECTION 1.37-VARIABLE INVESTMENT OPTION
"Variable Investment Option" means either a subaccount of a Variable Separate
Account, or a Variable Separate Account that has not been divided into
subaccounts. A Variable Investment Option may invest its assets in a Portfolio.
SECTION 1.38 VARIABLE SEPARATE ACCOUNT
"Variable Separate Account(s) refers to our Separate Account A and any Separate
Accounts added to this Contract as described in Part II except Separate Account
[48]. Variable Separate Accounts may be divided into subaccounts.
2004TSAGAC 6
PART II - INVESTMENT OPTIONS
SECTION 2.01-AVAILABILITY AND TYPES OF INVESTMENT OPTIONS
The Application sets forth the Investment Options available under this Contract
as of the issue date.
The availability of Investment Options may be subject to the terms of the Plan,
as reported to us by the Employer.
We reserve the right to change, limit or amend the number of Investment Options
that an Employer may elect.
The Investment Options may consist of Investment Options that are classified as
"Type A" or "Type B", or any other type that may be specified in the
Application, as we designate in our discretion for purposes of the transfer
rules described in the section "Transfer Rules". The Application indicates the
classification as of the issue date of this Contract. Announcements of new
Investment Options will include the new Option type.
SECTION 2.02-GUARANTEED INTEREST OPTION-CONDITIONS
(A) GUARANTEED INTEREST OPTION
Any amount held for the Participant in the Guaranteed Interest Option
becomes part of our general assets, which support the guarantees of this
Contract as well as other policies and contracts that we offer.
The amount held for each Participant in such Guaranteed Interest Option at
any time with respect to this Contract is equal to the sum of:
o all amounts that have been allocated or transferred to such Guaranteed
Interest Option, plus
o the amount of any interest credited, less
o all amounts that have been withdrawn (including charges) or transferred
from such Option.
We will credit the amount held in the Guaranteed Interest Option with
interest at effective annual rates that we set. We will also set a minimum
Guaranteed Interest Rate that will remain in effect throughout a stated
twelve-month period or a calendar year. We credit interest daily to amounts
in the Guaranteed Interest Option.
We guarantee that any rate so determined will never be less than the
minimum Guaranteed Interest Rate specified in the Application.
(B) CONDITIONS
The Employer agrees:
(i) With respect to the investment option of the Plan that is funded
under the Guaranteed Interest Option and to the extent that the
Plan provides for allocations to, and transfers to and from such
option are to be made solely at the discretion of the individuals
covered by the Plan, such allocations and transfers are to be made
in accordance with instructions by the Employer or Participant
covered by the Plan. We are to be given at least 60 days advance
written notice by the Employer of any noncompliance with this
condition.
(ii) The Employer is to provide us with any amendment to the Plan or
its investment policy, any ommunication to the Participants
covered by the Plan concerning the Guaranteed Interest Option or
the investment option of the Plan to which it relates, or any
change in the manner in which the Plan is administered. Any such
document is to be provided to us at least 60 days before its
effective date.
2004TSACGAC 7
We may also request, and the Employer will thereupon provide, any
other information that we reasonably determine would bear upon the flow
of funds to and from the Guaranteed Interest Option.
If the conditions stated in (i) and (ii) above are not complied with or, if
the Employer fails to remit Contributions in accordance with Part III on
"Contributions, Discontinuance and Allocations" or if we determine and so
notify the Employer by written notice that an amendment to the Plan, its
investment policy, or any change in the manner in which the Plan is
administered would materially and adversely affect the flow of funds to or
from the Guaranteed Interest Option, then we will have the right to:
1. decline further requests for transfers to or from the Guaranteed
Interest Option; and/or
2. deem that a discontinuance of Contributions has occurred under the
section, "Discontinuance of Contributions".
SECTION 2.03-SEPARATE ACCOUNT
We have established the Separate Account(s) and maintain the Separate Account(s)
in accordance with the laws of New York State. Xxxxxx, realized and unrealized
gains and losses from the assets of a Separate Account are credited to or
charged against it without regard to our other income, gains or losses. Assets
are placed in the Separate Account(s) to support the Contract and other annuity
contracts and certificates. Assets may be placed in the Separate Account(s) for
other purposes, but not to support contracts or policies other than variable
annuities and variable life insurance.
The assets of a Separate Account are our property. The portion of such assets
equal to the reserves and other contract liabilities with respect to the
Separate Account will not be chargeable with liabilities that arise out of any
other business we conduct. We may transfer assets of a Separate Account in
excess of the reserves and other Contract liabilities with respect to such
Separate Account, to another Separate Account, or to our general account.
We may, in our discretion, invest Separate Account assets in any investment
permitted by applicable law. We may rely conclusively on the opinion of counsel
(including counsel in our employ) as to the type of investments that the
Separate Account is permitted by law to make.
SECTION 2.04-VARIABLE INVESTMENT OPTIONS/ACCUMULATION UNITS AND UNIT VALUES
The amount in a Variable Separate Account at any time is equal to the number of
Accumulation Units in that Account multiplied by the Accumulation Unit Value
that applies at that time. If the Contract has Variable Investment Options, then
the terms of this section apply separately to each Variable Investment Option,
unless otherwise stated.
Amounts allocated or transferred to a Variable Investment Option are used to
purchase Accumulation Units of that Option. Accumulation Units are redeemed when
amounts are deducted, transferred or withdrawn. The number of Accumulation Units
in a Variable Investment Option at any time is equal to the number of
Accumulation Units purchased minus the number of Accumulation Units redeemed in
that Variable Investment Option up to that time. The number of Accumulation
Units purchased or redeemed in a transaction is equal to the dollar amount of
the transaction divided by the Variable Investment Option Accumulation Unit
Value for that Transaction Date.
We determine Accumulation Unit Values for each Variable Investment Option for
each Valuation Period. A "Valuation Period" is each Business Day together with
any consecutive preceding non-business days. For example, for each Monday that
is a Business Day, the preceding Saturday and Sunday will be included to equal a
three-day Valuation Period.
2004TSAGAC 8
The Accumulation Unit Value of a Variable Investment Option for any Valuation
Period is equal to the Accumulation Unit Value for that Variable Investment
Option on the immediately preceding Valuation Period multiplied by the Net
Investment Factor for that Variable Investment Option for the current Valuation
Period. The Net Investment Factor for a Valuation Period is (a) divided by (b)
minus (c), where:
(a) is the value of the Portfolio shares held by the Variable Investment
Option at the end of the Valuation Period (before taking into account
any amounts allocated to, or withdrawn from, the Variable Investment
Option for the Valuation Period, and after deduction of fees, charges
and expenses of the Portfolio; for this purpose, we use the share value
reported to us for the Portfolio plus the applicable dividend and
capital gain rates on the ex-dividend date);
(b) is the value of the Portfolio shares held by the Variable Investment
Option at the end of the preceding Valuation Period (taking into
account any amounts allocated or withdrawn for that Valuation Period);
(c) is the daily Variable Separate Account charges for the expenses and
risks of the Contract, times the number of calendar days in the
Valuation Period, plus any charge for taxes or amounts set aside as a
reserve for taxes.
SECTION 2.05-CHANGES WITH RESPECT TO VARIABLE SEPARATE ACCOUNTS
In addition to the right reserved pursuant to the section "Availability and
Types of Investment Options", we reserve the right, subject to compliance with
applicable law, including approval of the Employer, if required:
(a) to add Variable Investment Options to, or to remove Variable
Investment Options from, the Variable Separate Account(s), or to
add other Separate Accounts;
(b) to combine any two or more Variable Investment Options or
sub-funds thereof;
(c) to transfer the assets we determine to be the share of the class
of contracts to which this Contract belongs from a Variable
Investment Option to another Variable Investment Option;
(d) to operate any Variable Separate Account or any Variable
Investment Option as a management investment company under the
Investment Company Act of 1940; in which case charges and
expenses that otherwise would be assessed against an underlying
trust or investment company would be assessed against the
Variable Separate Account.
(e) to operate any Separate Account or any Variable Investment Option
as a unit investment trust under the Investment Company Act of
1940.
(f) to deregister the Variable Separate Account under the Investment
Company Act of 1940;
(g) to restrict or eliminate any voting rights as to the Variable
Separate Account;
(h) to cause one or more Variable Investment Options to invest some
or all of their assets in one or more other Portfolios.
(i) to close an Investment Option to transfers and Contributions.
We reserve the right to add a Variable Investment Option in which (i) there are
periods during which Contributions are restricted, (ii) amounts therein may be
automatically liquidated pursuant to the investment policy of the Variable
Investment Option, and (iii) investments therein may mature. We will have the
right to reallocate amounts arising from liquidation or maturity according to
the Participant's allocation instructions then in effect. If no such allocation
instructions have been made, the reallocation will be made to a designated
Investment Option, or to the next established Variable Investment Option of the
same type as described in this paragraph.
2004TSAGAC 9
A Portfolio of a Variable Investment Option might, in our judgment, become
unsuitable for investment by a Separate Account or a Variable Investment Option
because of legal, regulatory, or federal income tax restrictions. In such event,
shares of another series or shares of another unit investment trust may be
substituted for shares already purchased with respect to the Separate Account or
as the security to be purchased in the future, provided that such substitution
meets applicable federal income tax guidelines and, to the extent required by
law, has been approved by the Securities and Exchange Commission and such other
regulatory authorities as may be necessary.
If the exercise of these rights results in a material change in the underlying
investments of a Variable Separate Account or Variable Investment Option, the
Employer will be notified of such exercise, as required by law.
SECTION 2.06-FIXED MATURITY OPTION
Amounts allocated to the Fixed Maturity Options are held in our Separate Account
No. [48].
We have the right, subject to compliance with applicable law, to: (a) add new
Separate Accounts to be used for the same purpose as Separate Account [48], (b)
divide Separate Account [48] into two or more Separate Accounts to be used for
the same purpose, and (c) combine Separate Account [48] with any other Separate
Account that is used for the same purpose as Separate Account [48].
Each Fixed Maturity Option is subject to a market value adjustment formula that
may result in adjustments, positive or negative, in benefits. Such market value
adjustment will not apply upon transfer to a new Fixed Maturity Option or to
another Investment Option on the Fixed Maturity Option's Expiration Date. The
amount in a Fixed Maturity Option before application of a market value
adjustment is called the Fixed Maturity Amount. Before the Expiration Date, the
Annuity Account Value in a Fixed Maturity Option on any day will reflect the
market value adjustment that we would make if the entire amount in the Fixed
Maturity Option were withdrawn.
1. FIXED MATURITY OPTIONS
We may offer one or more Fixed Maturity Options. For each such Fixed
Maturity Option, we guarantee to credit interest at the Rate to Maturity.
Interest will be credited daily to amounts in the Fixed Maturity Options.
The duration of each Fixed Maturity Option offered under the Participant's
account under this Contract and the Rate to Maturity, which applies to each
Fixed Maturity Option, will be furnished by us upon request. The Fixed
Maturity Option duration(s) and the Rate to Maturity for each Fixed
Maturity Option elected by the Participant upon issuance of the
Participant's Certificate will be shown in the Certificate.
Contributions and transfers to a Fixed Maturity Option as described in Part
III "Contributions, Discontinuance and Allocations" will be allocated
according to the Participant's election. Contributions or transfers into a
Fixed Maturity Option will receive the Rate to Maturity applicable to the
elected Fixed Maturity Option on the Transaction Date. The Fixed Maturity
Amount of a Fixed Maturity Option is equal to the amount allocated to that
Fixed Maturity Option, plus interest at the Rate to Maturity, minus
withdrawals, transfers and charges, if any, deducted from the Fixed
Maturity Option and adjusted for any market value adjustment previously
applied.
The last day of a Fixed Maturity Option is the Expiration Date. We will
notify the Participant at least 15 days but not more than 45 days before
the Expiration Date of each Fixed Maturity Option. One of the following
three options may be elected at the Expiration Date, none of which will
result in a market value adjustment:
(a) transfer the amount in the Fixed Maturity Option into another
Fixed Maturity Option of any available duration that we then
offer;
(b) transfer the amount in the Fixed Maturity Option to another
Investment Option;
(c) make a withdrawal from the amount in the Fixed Maturity Option
(subject to any withdrawal charges and applicable restrictions
which may apply pursuant to the section "Restrictions on
Distributions" and the section "Withdrawal Charges").
2004TSAGAC 10
If no election is made with respect to amounts in a Fixed Maturity Option
as of the Expiration Date, such amounts will be transferred into a Fixed
Maturity Option with the earliest available Expiration Date that occurs
after the then current calendar year. If we are not offering new Fixed
Maturity Options then such amounts will be transferred into the Money
Market Variable Investment Option. During the 30 days following the
Expiration Date, the amount in the Fixed Maturity Option (less any
withdrawals or transfers made or charges deducted during such 30 day
period) may be transferred into a new Fixed Maturity Option or other
Investment Option. A market value adjustment will not apply. In no event
may the Participant elect a Fixed Maturity Option that extends beyond the
Annuity Commencement Date.
2. TRANSFERS, WITHDRAWALS, DEATH AND ANNUITY BENEFITS
If a request is made, other than as described in item 1 above, for a
transfer to an Investment Option as described in the section "Transfer
Requests" or a withdrawal as described in the section "General Withdrawals"
or any transaction described in the section "Discontinuance of
Contributions", any such transfer or withdrawal from a Fixed Maturity
Option, will be subject to a market value adjustment described below. The
market value adjustment will be in addition to any charges that apply as
described in the section "Withdrawal Charges".
Amounts applied from a Fixed Maturity Option to provide a death benefit as
described in the section "Death Benefit", an annuity as described in Part
VII "Annuity Benefits" or any other annuity form that we offer will be
subject to a market value adjustment. A negative market value adjustment
will not be imposed on a death benefit.
No transfers are permitted to a Fixed Maturity Option from any Investment
Option after the initial Contribution or transfer into such Fixed Maturity
Option.
3. MARKET VALUE ADJUSTMENT
The market value adjustment upon transfer or withdrawal from a Fixed
Maturity Option is determined as follows:
(a) We determine the Fixed Maturity Amount that would be payable on
the Expiration Date, of the Participant's Fixed Maturity Option
using the Rate to Maturity for such Fixed Maturity Option.
(b) We determine the period remaining in the Participant's Fixed
Maturity Option (on the Transaction Date of the Participant's
transfer or withdrawal) and convert it to fractional years based
on a 365-day year. For example, three years and 12 days becomes
3.0329.
(c) We determine the current Rate to Maturity that would apply on the
Transaction Date to new allocations to the same Fixed Maturity
Option, and add a current rate percentage that we determine up to
a maximum of [0.50%].
(d) We determine the present value of the Fixed Maturity Amount
payable at the Expiration Date, using the period determined in (b)
and the rate determined in item (c).
(e) We determine the Fixed Maturity Amount as of the Transaction Date.
(f) We subtract (d) from the result in (e). The result is the market
value adjustment (which may be positive or negative) applicable to
such Fixed Maturity Option.
The market value adjustment (positive or negative) resulting from a withdrawal
or transfer of a portion of the amount in a Fixed Maturity Option will be a
percentage of the market value adjustment that would apply if the Participant
were to withdraw the entire amount in that Fixed Maturity Option. The percentage
is determined by dividing (i) the amount of the withdrawal or transfer from the
Fixed Maturity Option by (ii) the Fixed Maturity Amount in such Fixed Maturity
Option prior to the withdrawal or transfer.
The market value adjustment will be in addition to any charges which otherwise
apply as described in Part IX "Charges".
2004TSAGAC 11
If we are not offering a Fixed Maturity Option to which the current " Rate to
Maturity" would apply, we will use the rate at the closest Expiration Date. If
we are no longer offering new Fixed Maturity Options, we will use the "Moody's
rate" which will be a rate based on the most recent Moody's Corporate Bond Yield
Average - Monthly Average Corporates, for the duration required, as published by
Xxxxx'x Investor Services, Inc. The rate for the numerator will be the Moody's
rate for the initial duration of the Fixed Maturity Option on the date the
allocation or transfer was made to such Fixed Maturity Option and the rate for
the denominator will be the Moody's rate for the remaining duration on the date
the withdrawal or transfer out is made. If such Moody's rate is not available, a
rate based on a substantially similar average will be used.
2004TSAGAC 12
PART III - CONTRIBUTIONS, DISCONTINUANCE AND ALLOCATIONS
SECTION 3.01-CONTRIBUTIONS
The Employer makes Contributions from time to time pursuant to the terms of the
Plan.
We reserve the right to reject any Contributions of less than [$20.00] for any
one Participant unless a different amount is specified by the Code. We have the
right to require a minimum aggregate amount of Contributions on an annual basis;
the Application will specify if a minimum applies. If any such minimum amount
requirement is not met, we have the right to deem that a termination of Plan
participation has occurred and apply the terms of the section "Participant
Accounts".
If the Plan contains a vesting schedule, whereby amounts must be forfeited upon
failure to satisfy the vesting schedule, the Employer must identify, which
Contributions, if any, are subject to the vesting schedule, unless otherwise
agreed upon between the Employer and us. The Employer must report any forfeiture
to us as described in the section on "Forfeitures/Forfeiture Account".
The Employer or Participant may, with our agreement, transfer to the Contract
any amount held under a contract or account for the Participant of the Plan that
meets the requirements of Section 403(b) of the Code ("Transferred Funds"). If a
Contribution includes Transferred Funds, the Employer or Participant must tell
us the portion, if any, of the Transferred Funds that are (a) exempt from the
payment restrictions described in the section "Restrictions on Distributions";
(b) subject to forfeiture under the Plan and (c) eligible for delayed
distribution under the section "Required Minimum Distributions". If the Employer
or Participant does not tell us, then we will treat all such amounts as
nonforfeitable and subject to applicable distribution and /or tax restrictions.
Any Transferred Funds from a contract not issued by us will be reduced by the
amount of any applicable tax charge as determined by us. See the section
"Applicable Tax Charges".
Subject to the concurrence of the Employer and with our agreement, the
Participant may roll over any amount distributed from another eligible plan as
described in Section 403(b)(8) of the Code ("Rollover Amount") to the Contract.
The Employer or Participant must identify to us the Rollover Amount. Such
Rollover Amount will (a) not be subject to the forfeiture under the Plan; (b) be
exempt from the payment restriction described in the section "Restrictions on
Distributions"; and (c) not be eligible for delayed distribution under the
section "Required Minimum Distribution". If the Employer or Participant does not
identify or tell us the Rollover Amount, we will treat all such amounts as
nonforfeitable and subject to applicable distribution and/ or tax restrictions.
Contributions are limited to the amounts specified in Sections 403(b), 402(g)
and 415(c) of the Code. Salary Reduction Contributions cannot exceed the
elective deferral limitation under Section 402(g) of the Code. If Salary
Reduction Contributions under this Contract for a plan year exceed the limit
specified in Section 402(g) of the Code, the excess amount must be distributed
no later than April 15 of the following calendar year, as described in Treasury
Regulation Section 1.402(g)1(c).
Each contribution received by us on the Participant's behalf will, before its
allocation under this contract, be reduced by the amount of any applicable tax
charge as described in Part IX "Charges".
If we are notified that any Contributions would cause this Contract not to
qualify under Section 403(b) of the Code, we reserve the right to either (i)
refuse to accept any such Contributions or (ii) apply such Contributions to a
nonqualified deferred annuity contract for the exclusive benefit of the
Participant and any Beneficiary.
SECTION 3.02-ALLOCATIONS
Each Contribution (less any applicable tax charge in accordance with the section
"Applicable Tax Charges") is allocated among Investment Options in accordance
with the instructions submitted in a form acceptable to us by the Employer or
Participant.
2004TSAGAC 13
SECTION 3.03-DISCONTINUANCE OF CONTRIBUTIONS
Contributions under this Contract can be discontinued either by the Employer or
by us.
If Contributions have been discontinued, withdrawals from the Contract will be
made in accordance with the section "Withdrawals".
If the Contract terminates or Contributions are discontinued no additional
Contributions can be made and we shall rely on the instructions provided by the
Employer, or the Participant, if the Participant has separated from employment.
All other rights described in this Contract will remain in effect. Amounts
maintained in this Contract will continue to be subject to withdrawal charges,
if any, based on the Participant's Participation Date.
If the Participant has separated from employment, his/her participation under
this Contract will terminate if, the Participant elects to continue the coverage
by converting the Certificate into one of our individual 403(b) contracts, or
elects to make a withdrawal.
2004TSAGAC 14
PART IV - TRANSFERS AMONG INVESTMENT OPTIONS
SECTION 4.01-TRANSFER REQUESTS
Unless we are otherwise instructed by the Employer, the Participant may submit a
request to transfer all or part of the amount held in an Investment Option to
one or more of the other Investment Options. Transfer requests are subject to a
minimum amount of [$300]. The request must specify the source(s) of
Contributions, if applicable, to which the transfer applies. All transfers will
be made on the Transaction Date and will be subject to the terms in the section
"Transfer Rules" and to our rules in effect at the time of transfer. With
respect to a Variable Separate Account, the transfers will be made at the
Accumulation Unit Value next computed for that Transaction Date.
SECTION 4.02-TRANSFER RULES
Transfer requests must be in writing and delivered by U.S. mail to our
Processing Office unless we accept an alternative form of communication (such as
internet or automated telephone). The use of alternative forms of communication
is subject to our rules then in effect for each such service. We may provide
information about our rules and the use of communication services in the product
prospectus, prospectus supplements or other notifications, as mailed to the
Employer's last known address in our records from time to time. Any alternative
form of communication that we make available may be changed or discontinued at
any time. Communication services may be restricted or denied if we determine
that the Participant used such services for market timing or other trading
strategies that may disrupt operation of a Variable Investment Option or have a
detrimental effect on the Accumulation Unit Value of any Variable Investment
Option.
If the Employer has elected to have any Type B Investment Option available to
the Participant, as described in the section "Types of Investment Options",
whether or not the Participant has amounts in any such Investment Options, then
the following applies unless otherwise specified in the Application:
The maximum amount that the Participant may transfer from the Guaranteed
Interest Option to a Variable Investment Option or to a Fixed Maturity Option in
any Participation Year is as follows:
(a) A percentage, as stated in the Application, of the amount in the
Guaranteed Interest Option on the last day of the prior
Participation Year, or if greater,
(b) The total of all amounts transferred at the Participant's request
from the Guaranteed Interest Option to a Variable Investment
Option or a Fixed Maturity Option in the prior Participation Year.
The percentage referred to in subsection (a) above may not be less than 5% or
more than 25%.
If an amount was allocated to the Guaranteed Interest Option as a result of a
total transfer of Plan funds (that is, a transfer initiated by the Employer on
the Participant's behalf) from another funding vehicle, the maximum amount which
may be transferred from the Guaranteed Interest Option for the transfer period
in which such allocation occurred will be an amount equal to the percentage
determined in (a) above, but applied to the amount initially allocated to the
Guaranteed Interest Option on the Participant's behalf.
2004TSAGAC 15
We reserve the right to:
(1) limit transfers among or to the Variable Investment Options to no
more than once every 30 days;
(2) require a minimum time period between each transfer into or out of
one or more specified Variable Investment Options;
(3) reject transfer requests from a person acting on behalf of
multiple Participants pursuant to a trading authorization
agreement that we have accepted;
(4) impose conditions or limitations on transfer rights, restrict
transfers or refuse any particular transfer if we are concerned
that market timing, excessive trading or other trading strategies
may disrupt operation of a Variable Investment Option or may have
a detrimental effect on the Accumulation Unit Value of any
Variable Investment Option or determine that the Participant has
engaged in any such strategy;
(5) defer transfers for up to six months, as described in the section
"Deferment";
(6) revise our transfer rules; and
(7) charge for any transfer made by the Participant between Investment
Options, in any Participation Year, if the number of transactions
exceed [12].
Any action taken pursuant to subsection (1) through (7) above will be made by us
upon advance notice to the Employer.
2004TSAGAC 16
PART V - DISTRIBUTIONS AND DEATH BENEFITS
SECTION 5.01-RESTRICTIONS ON DISTRIBUTIONS:
Payments of Cash Value pursuant to the section on "General Withdrawals", or Part
VII "Annuity Benefits" are subject to the restrictions described in this
section. Any distributions or payments under any of those sections in this
Contract are also subject to any restrictions of the Employer's Plan.
(a) Salary Reduction Contributions (Section 403(b)(11) of the Code).
Amounts attributable to Salary Reduction Contributions made after
December 31, 1988 and any earnings credited after December 31, 1988 on
Salary Reduction Contributions whenever made, less any "grandfather
amounts" described in the next sentence, are collectively "Restricted
Amounts". A "grandfather amount" is the Participant's 403(b)
arrangement account balance as of December 31, 1988 invested in an
annuity contract described in Section 403(b)(1) of the Code, less any
such amount of account balance which was invested at any time under a
custodial account described in Section 403(b)(7) of the Code, plus any
other amount not restricted under Section 403(b)(11) of the Code.
(b) Contributions from Custodial Accounts under Section 403(b)(7) of the
Code.
All amounts attributable to Contributions directly transferred from a
custodial account under Section 403(b)(7) of the Code (including
Contributions directly transferred from a Section 403(b)(7) custodial
account into any other Section 403(b)(1) annuity contract which are
subsequently directly transferred are "Restricted Amounts".
(c) Restrictions on Distributions under the Code.
Distributions of Restricted Amounts described above in sub-sections
5.01(a) and 5.01(b) may not be made before the Participant attains age
59 1/2, separates from service with the Employer, dies, or becomes
disabled (within the meaning of Section 72(m)(7) of the Code).
Distributions of the amount of Salary Reduction Contributions made
after December 31, 1988 may also be made in the case of financial
hardship (within the meaning of Sections 403(b)(7) and 403(b)(11) of
the Code) and applicable Treasury Regulations. Any earnings credited
after December 31, 1988 attributable to Salary Reduction Contributions
made before or after December 31, 1988 are not eligible for hardship
distributions. If a request for payment of Restricted Amounts, on the
grounds of disability or hardship is made, we must be furnished with
proof of such disability or hardship as may be required by the Plan,
the Code, and applicable Treasury Regulations in a form satisfactory to
us.
(d) Other Restrictions on Distributions
We reserve the right to limit transfers of Cash Value, up to the amount
of any Loan Reserve Account under this Contract, to another 403(b)
arrangement while the Participant has an outstanding loan as described
in Part VI "Plan Loans". If the Employer reports to us that the Plan is
subject to ERISA, the Spousal Annuity and Consent Rules will also
apply.
Unless the Employer provides documentation that amounts directly transferred
from other 403(b) arrangements are not subject to the distribution restrictions
described in paragraph (c) above, we will treat such directly transferred
Contributions as Restricted Amounts.
2004TSAGAC 17
SECTION 5.02-GENERAL XXXXXXXXXXX
All withdrawal requests will require the Employer's written authorization in a
form acceptable to us, unless otherwise instructed by the Employer, specifying
the portion of the Participant's Annuity Account Value that is available for
distribution, the amount to be withdrawn and the Investment Option(s) from which
the withdrawal is to be made. Withdrawals are subject to the restrictions in the
section "Restrictions on Distributions".
Following receipt of the Participant's written notice, we will pay to the
Participant or if requested, transfer or directly rollover to another contract
or custodial arrangement that meets the requirements of Section 403(b)(1),
Section 403(b)(7), or such eligible qualified plan or arrangement as permitted
by applicable law, the lesser of the Cash Value, less any funds restricted in
accordance with the section "Restrictions on Distributions". This amount paid,
transferred or directly rolled over, plus any applicable withdrawal charge in
accordance with Part IX "Withdrawal Charges" will be withdrawn from the
Investment Options. Unless instructed otherwise, the amount withdrawn (including
any withdrawal charge) will be deducted from the Investment Options in
proportion to the amounts in such Investment Options.
We may decline to accept a request for a withdrawal of less than [$300], or
where the withdrawal would violate the provisions of this section or the section
"Spousal Annuity and Consent Rules". If a withdrawal made under this section
would result in an Annuity Account Value of less than [$500], we will inform the
Participant and we reserve the right to terminate participation under this
Contract in accordance with the section "Participant Accounts".
Prior to making any payment, we may request from the Employer such information
which may include a certification as we may reasonably require to determine if
the withdrawal, alone or together with any previous withdrawal by the
Participant is necessary and proper under the terms of the Plan.
We will pay any amount payable under this subsection as the Employer directs in
writing and such payment will fully discharge us from all liability with respect
to the amount paid.
If this Contract is terminated or Contributions are discontinued and the
Participant elects to maintain the Certificate, we may rely solely on the
instructions provided by the Participant.
SECTION 5.03-DIRECT ROLLOVER WITHDRAWALS
Unless otherwise instructed by the Employer on the Application, any withdrawal
request for a direct rollover to or from the Participant's account by the
Participant must be made through the Employer.
The Participant (or a Beneficiary who is the Participant's surviving spouse as
described in the section "Beneficiary") may elect to have all or any portion of
the Cash Value or the Death Benefit described in this Contract, as applicable,
paid directly to another "eligible retirement plan" in a "direct rollover
transaction" as these terms are defined in Sections 403(b) and 402(c) of the
Code.
In order to elect this option all of the following requirements must be met:
(A) The recipient of the distribution must be an eligible retirement plan
maintained for the benefit of the Participant (or for the Participant's
spousal Beneficiary).
2004TSAGAC 18
(B) The distribution may include after-tax Contributions if the direct rollover
is made to a funding vehicle under a specified eligible retirement plan
which agrees to separately account for the funds rolled over, or to a
traditional individual retirement arrangement, as indicated by the
Participant or Employer.
(C) The direct rollover option is not available to the extent that a minimum
distribution is required under Section 401(a)(9) of the Code. We reserve
the right to determine the amount of the required minimum distribution. If
the Participant has elected a payment option that is either paying
substantially equal periodic payments for a period of ten years or more or
a life annuity, the direct rollover option does not apply to those amounts.
(D) The direct rollover option is not available for a hardship distribution
within the meaning of Section 402(c)(4)(C) of the Code.
SECTION 5.04-DEATH BENEFIT
Upon our receipt of due proof of the Participant's death and any required
instructions, information and forms necessary to effect the payment (the
Transaction Date), we will pay to the Participant's Beneficiary the amount of
the death benefit. We will pay the death benefit in the form elected by the
Beneficiary and reported by the Employer. Subject to the rules and laws then in
effect the Beneficiary may elect:
(a) to receive the death benefit in a single sum;
(b) to apply the death benefit to purchase an Annuity Benefit in a form that
we currently offer;
(c) to apply the death benefit to provide any other form of benefit that we
offer.
If the Participant so elects in writing any amount that would otherwise be
payable to a Beneficiary in a single sum will be applied to provide an Annuity
Benefit. Subject to our rules then in effect, such election may be changed
during the Participant's lifetime. Any such change must be made in writing in a
form acceptable to us. The Participant's election cannot be changed by the
Beneficiary. If at the Participant's death there is no election in effect, the
Beneficiary may make such an election. In the absence of any election by either
the Participant or the Beneficiary, we will pay the death benefit in a single
sum.
The amount of the death benefit is equal to the greater of (i) the Annuity
Account Value (without any negative market value adjustment that would otherwise
apply) as of the Transaction Date less any unpaid loan balance including
interest due but not paid, and (ii) the minimum death benefit. The minimum death
benefit is the sum of all Contributions less any withdrawals, withdrawal charges
(if applicable), and less any unpaid loan balance including interest due but not
paid. Withdrawals will reduce the minimum death benefit on a pro rata basis.
Reduction on a pro rata basis means that we calculate the percentage of the
Participant's current Annuity Account Value that is being withdrawn and we
reduce the Participant's current minimum death benefit by that same percentage.
The amount of any death benefit payable will be reduced by the amount of any
forfeiture that applies as reported by the Employer as described in the section
"Forfeitures/Forfeiture Account".
The payment of the death benefit is subject to the requirements of ERISA as
described in the section "Plan Status", if applicable.
ENHANCED DEATH BENEFIT
If the Participant elects the Enhanced Death Benefit the following will apply to
the amount of the death benefit instead of the amount of the death benefit
described above. The amount of the death benefit will be equal to the greater of
(i) the Annuity Account Value (without any negative market value adjustment that
would otherwise apply) as of the Transaction Date less any outstanding loan and
accrued loan interest, and (ii) the Enhanced Death Benefit as of the date of the
Participant's death.
2004TSAGAC 19
On the Participation Date, the Enhanced Death Benefit is equal to the initial
Contribution. Thereafter, the Enhanced Death Benefit will be reset every [three]
years on the Participation Date anniversary to the Annuity Account Value if
greater than the previously established Enhanced Death Benefit (adjusted for
Contributions and withdrawals), up to the date the Participant attains age [85].
Contributions will increase the Enhanced Death Benefit on a dollar-for-dollar
basis. Withdrawals will reduce the Enhanced Death Benefit on a pro rata basis,
in the same manner as for the minimum death benefit described above.
Once elected at the time of enrollment the Participant may not terminate the
Enhanced Death Benefit. The charge for the Enhanced Death Benefit will be a
percentage of the Annuity Account Value on the Participation Date anniversary,
see the section "Charges Deducted From Annuity Account Value".
BENEFICIARY
Subject to the terms of the Plan, the Participant may name one or more persons
to be primary Beneficiary and one or more persons to be successor Beneficiary if
the primary Beneficiary dies before the Participant. If the Participant has
named two or more persons as Beneficiary, the Beneficiary will be the named
person or persons who survive the Participant and payments will be made to such
persons in equal shares or to the survivor. Unless the Participant specifically
elects in writing otherwise, we will treat each Beneficiary's share of the death
benefit payable as a separate account for the benefit of each Beneficiary as
described in Treasury Regulation Section 1.401(a)(9)-8 Q&A A-2(a)(2) or any
successor Regulation. The Participant's selection of a Beneficiary is subject to
the requirements of ERISA, if applicable.
The Participant may change the Beneficiary during the Participant's lifetime and
while coverage of the Participant under this Contract is in force. Any such
change must be made in writing in a form acceptable to us. A change will take
effect as of the date the written form is executed, whether or not the
Participant is living on the date of receipt at the Processing Office. We will
not be liable as to any payments made or actions taken before receipt of any
such change at the Processing Office.
Any part of a death benefit payable as described in the section "Beneficiary"
for which there is no named Beneficiary living at the Participant's death will
be payable in a single sum to the Participant's spouse, if any, or if there is
no spouse, then to the Participant's children who survive the Participant, in
equal shares, or, if there are no surviving children, then to the Participant's
estate.
SECTION 5.05-BENEFICIARY CONTINUATION OPTION
This section will apply only if the Participant dies before the Annuity
Commencement Date, and the Beneficiary named under the "Beneficiary" section of
this Contract is an individual. With the exception of the following paragraph,
this section does not apply to any Beneficiary that is not an individual and the
non-individual Beneficiary's portion of the death benefit is payable to such
non-individual Beneficiary.
This Section applies to a non-individual Beneficiary only if it is a "see
through trust". A see through trust is an irrevocable trust, valid under state
law, the only beneficiaries of which are individuals, and which trust has met
applicable documentation requirements under applicable Regulations as we may
determine. If such a "see-through trust" described in Treasury Regulation
Section 1.40(a)(9)-4 Q&A, or any successor Regulation, is the Beneficiary named
pursuant to the "Beneficiary" section of the Contract, the successor Participant
is the oldest Beneficiary of such trust.
2004EDCGAC 20
If this Section applies and there is more than one Beneficiary, the
Participant's entire interest in the Participant's account under this Contract
will be apportioned among the Participant's Beneficiaries as the Participant
designates pursuant to the "Beneficiary" section of this Contract.
If the Beneficiary qualifies to continue the Participant's account under this
Contract, and we receive that Beneficiary's completed election no later than
September 30 of the calendar year following the calendar year of the
Participant's death and before any contrary election is made, that Beneficiary
may continue the Participant's account under this Contract pursuant to this
Section under the terms set forth in (a) through (i) below. Each such
Beneficiary electing to continue his or her portion of the interest under the
Participant's account under this Contract is a " Continuation Beneficiary".
For any Beneficiary who does not timely elect to continue his or her portion of
the interest under the Participant's account under this Contract, we will pay
that Beneficiary's share of the death benefit pursuant to the "Death Benefit"
section of this Contract, in a lump sum. The terms of the Beneficiary
Continuation Option are as follows:
a. If the Beneficiary Continuation Option is elected, then as of
the date we receive due proof of the Participant's death, and
any required instructions, information and forms necessary to
effect the Beneficiary Continuation Option feature, we will
increase the Annuity Account Value to equal the applicable
death benefit if such death benefit is greater than such
Annuity Account Value.
b. Each Continuation Beneficiary will automatically become the
Participant as defined in the Contract with respect to that
Continuation Beneficiary's portion of the interest in the
Participant's account under the Contract. If the Participant has
specifically elected under the "Beneficiary" section of the
Contract that we not separately account for each Beneficiary's
portion of the interest in the Participant's account under the
Contract, the oldest Continuation Beneficiary will be the
Participant for purposes of calculating the Required Minimum
Distribution payments.
c. Each Continuation Beneficiary will have the right to transfer
amounts among the Investment Options with respect to that
Continuation Beneficiary's portion of the interest in the
Participant's account under this Contract.
d. Any death benefit provision (including the minimum death benefit
provision) will no longer be in effect.
e. A Continuation Beneficiary cannot make any additional
Contributions.
f. Distributions to the Continuation Beneficiary with respect to
that Continuation Beneficiary's portion of the interest in the
Participant's account under this Contract will be made in
accordance with requirements of the Code.
g. A Continuation Beneficiary may withdraw the Annuity Account
Value apportioned to such Continuation Beneficiary at any
time; withdrawals made after we have received a Continuation
Beneficiary's election to continue the Participant's account
under this Contract are not subject to a withdrawal charge.
h. Upon a Continuation Beneficiary's death, we will make a lump
sum payment to the person designated by the deceased
Continuation Beneficiary to receive that deceased Continuation
Beneficiary's portion of the Annuity Account Value, if any
remains. In the alternative, the deceased Continuation
Beneficiary's designated Beneficiary may elect to continue the
payment method originally elected by the deceased Continuation
Beneficiary in accordance with the Code rules (Required
Minimum Distribution Rules-Required Payments After Death).
i. The Participant's account under this Contract cannot be
assigned and must continue in the Participant's name for the
benefit of the Participant's Continuation Beneficiary.
2004TSAGAC 21
PART VI - PLAN LOANS
SECTION 6.01-LOANS
Prior to the Participant's Annuity Commencement Date, the Participant may make a
request for a loan subject to the terms of the Plan and the Code by completing a
Loan Request Form.
A Plan loan will be available only from the vested portion of the Participant's
account under the Contract as reported to us by the Employer.
We reserve the right not to permit a new loan if the Participant has previously
defaulted on a loan and has not repaid the outstanding amount due.
The Loan Request Form together with the loan confirmation notice will be the
loan agreement and will contain all of the terms of the loan which apply,
including the amount of the loan, interest rate and the payment due dates.
A loan is effective on the date we specify and after we approve the Loan Request
Form.
Only [one] outstanding loan is permitted at a time for each Participant.
A. LOAN AMOUNT:
As a condition for granting a loan, we will require the Participant's
representation that the loan amount requested, when aggregated with loans
(principal plus interest) from all qualified plans of the Employer, does
not exceed the maximum loan amount permitted under the Plan and Section
72(p) of the Code. If the Participant is also a participant in other 403(b)
plans or qualified plans, the maximum loan amount is limited to the maximum
amount aggregated for all plan loans which the Participant has outstanding
under those plans, as required by Section 72(p) of the Code. We reserve the
right to also require that the Participant elect not to have income tax
withholding apply with respect to any interest and/or
The minimum loan amount will be stated on the Loan Request Form. In no
event will the minimum loan amount be less than [$1,000].
The maximum loan amount for a Participant permitted under the Code may not
be more than the lesser of (A) or (B) below:
(A) $50,000, less the highest outstanding balance of loans under any 403(b)
plan or any other qualified plan that the Participant has with the Employer
during the one-year period ending on the day before the effective date of
the loan, over the outstanding balance of loans under any 403(b) Plan or
other qualified Employer Plan on the effective date of the loan.
(B) the greater of (1) one half the present value of the Participant's
nonforfeitable accrued benefit under all of the 403(b) plans or other
qualified Employer plans or (2) $10,000.
B. LOAN TERM:
The loan term will be for a maximum of five years. If the Loan Request Form
indicates that the purpose of the loan is to purchase a principal
residence, the loan term will be for a maximum of ten years. Repayment of
the loan may be accelerated and full repayment of any unpaid principal and
interest will be required upon the earliest of (1) the election and
commencement of Annuity Benefits under the section "Commencement of Annuity
Benefits", (2) the date of termination pursuant to the section
"Discontinuance of Contributions" "Participant Accounts" and "Termination
of the Contract" or, (3) the date we pay a death benefit pursuant to the
section "Death Benefit".
2004TSAGAC 22
C. LOAN RESERVE ACCOUNT:
On the date the loan is effective, we will transfer to a "Loan Reserve
Account" an amount equal to the sum of (1) the loan amount, which will earn
interest at the "Loan Reserve Account Rate" during the loan term and (2)
10% of the loan amount, which will earn interest at the Guaranteed Interest
Rate. The Participant may not make any partial withdrawals or transfers
among Variable Investment Options or to another 403(b) funding arrangement
or qualified employer plan from the Loan Reserve Account until after
repayment of the principal amount then due. The Participant may specify on
the Loan Request Form from which Investment Option(s) the Loan Reserve
Account will be funded.
The "Loan Reserve Account Rate" will equal the loan interest rate (see
subsection D below) minus 2%, or such other percentage determined by us in
accordance with our then current procedures. Such rate shall not be greater
than permitted under any current applicable state or federal law.
D. LOAN INTEREST RATE:
(1) Under a 403(b) Plan not subject to ERISA, we will from time to time set
the effective annual rate at which interest on a loan will accrue daily
(the "loan interest rate"). Such rate will not be greater than any
maximum rate required under any current applicable state or federal
law.
(2) Under a 403(b) Plan subject to ERISA, the applicable provisions of the
Plan or the Employer will determine the applicable interest rate at
which interest on the loan will accrue daily, subject to any
limitations imposed by law. The rate so determined will be a reasonable
rate set in accordance with Department of Labor Regulations
2550.408b-1(e), and will be based on prevailing rates available at the
date of determination on loans charged by persons in the business of
lending money for loans which would be made under similar
circumstances.
E. REPAYMENTS:
The loan must be repaid according to the repayment schedule, which will
require that substantially level amortization payments of principal and
interest be made no less frequently than quarterly, unless otherwise
required or permitted by law. The loan may be repaid in full at any time,
including interest due. We will first apply any payment to interest due,
with the balance applied towards repayment of the loan principal. After any
repayment is made, including full repayment of the loan, the principal
amount repaid will be transferred from the Loan Reserve Account to the
Guaranteed Interest Option.
F. DEFAULT:
By each due date (or specified date thereafter according to our then
current procedures) if the amount of the loan payment is less than the
amount due or the loan payment is not received at our Processing Office, we
will treat the amount of the unpaid balance of the loan at that time,
including interest due but not paid, as a deemed distribution for federal
income tax purposes.
If the amount in the Loan Reserve Account is not subject to the
restrictions described in the section "Restrictions on Distributions", on
default we reserve the right to deduct from the Loan Reserve Account an
amount equal to the interest and principal payments due at the time of the
default. We also reserve the right to deduct any withdrawal charges that
apply and any required tax withholding.
If the amount in the Loan Reserve Account is subject to the restrictions
described in the section "Restrictions on Distributions", on default we
will designate in the Loan Reserve Account an amount equal to the unpaid
loan balance (interest and principal payments due) at the time of default.
When the Contract is no longer subject to the withdrawal restrictions of
the section "Restrictions on Distributions" we will have the right to
foreclose on this amount, and deduct any withdrawal charges that would have
applied at the time of the default, plus any interest due, and any required
tax withholding. This will be no later than the date the Participant
reaches age 70 1/2 or we are notified in writing that another event has
occurred which would
2004TSAGAC 23
permit amounts subject to restrictions on distribution to be paid. (Such
an event includes but is not limited to severance from employment.)
G. CHANGES:
We have the right to change the loan terms, as long as any such change is
made to maintain compliance with the terms of any applicable law or
regulations that apply to this Contract.
2004TSAGAC 24
PART VII ANNUITY BENEFITS AND REQUIRED MINIMUM DISTRIBUTIONS
SECTION 7.01-FORMS OF DISTRIBUTION
The Participant may elect (i) a single sum distribution, (ii) an Annuity
Benefit, or (iii) any other form of payment of the Cash Value offered by us,
subject to the terms of the Plan and the approval of the Employer.
SECTION 7.02-ELECTION/REPORT FOR ANNUITY BENEFIT
An election to have the Cash Value paid in the form of an Annuity Benefit can
only be made if the Cash Value is at least $2,000. The Employer will report to
us each Participant or other person with respect to whom an Annuity Benefit is
to be provided under this Contract and whether all or a portion of the Cash
Value is to be used for such Annuity Benefit. The report must be made before the
first payment under such Annuity Benefit and must be in the form prescribed by
us and will include all pertinent facts and determinations requested by us. We
will rely on the reports and other information furnished by the Employer and
will not inquire as to the accuracy or completeness thereof.
SECTION 7.03-ANNUITY BENEFIT FORMS
The "Normal Form" of Annuity Benefit is an Annuity Benefit payable on the
Life-10 Year Period Certain Annuity Form described below, unless another form
may apply pursuant to the terms of the Plan, the requirements of ERISA or any
other law that applies. We may offer other annuity forms available from us or
from one of our affiliated or subsidiary life insurance companies. Such form may
include the Joint and Survivor Life Annuity Form which provides monthly payments
while either of the two persons upon whose lives such payments depend is living.
The monthly amount to be continued when only one of the persons is living will
be equal to a percentage, as elected, of the monthly amount that was paid while
both were living.
The Life Period Certain Annuity Form is an annuity payable during the lifetime
of the person on whose life the payments depend, but with 10 years of payments
guaranteed (10 years certain period). That is, if the Participant dies before
the 10-year certain period has ended, payments will continue to the Beneficiary
named to receive such payments for the balance of the certain period. In no
event will the certain period exceed the life expectancy of the person on whose
life the annuity payments depend in accordance with the Code. The Life 10 Year
Period Certain Annuity Form is payable on a unisex basis.
SECTION 7.04-AMOUNT OF ANNUITY BENEFITS
If an Annuity Benefit payment is elected in lieu of the Cash Value, the amount
applied to provide the Annuity Benefit will, unless otherwise specified by the
Employer or required by applicable laws and regulations, be (1) the Annuity
Account Value, if the annuity form elected provides payments for a person's
remaining lifetime or (2) the Cash Value, if the annuity form elected does not
provide such lifetime payments.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any taxes, as described under the section "Applicable Tax Charges", that apply
on annuity purchase payments. If we have previously deducted charges for
applicable taxes from Contributions, we will not again deduct charges for the
same taxes before an Annuity Benefit is provided. The balance will be used to
purchase the Annuity Benefit on the basis of either (1) the Tables of Guaranteed
Annuity Payments or (2) our then current individual annuity rates, whichever
rates would provide a larger benefit with respect to the payee, or (3) any of
our single consideration immediate annuity contracts offered at the time to the
same class of Participants.
2004TSAGAC 25
SECTION 7.05-ANNUITY BENEFIT
Payments under an Annuity Benefit will be made monthly. An election may be made
by the Employer on behalf of the Participant, or if the Plan is subject to ERISA
then by the Participant, to have the Annuity Benefit paid at other intervals,
such as every three months, six months, or twelve months, instead of monthly,
subject to our rules at the time of election. This election may be made at the
time the Annuity Benefit form as described in the section "Annuity Benefit
Forms" is elected. In that event, all references in this Contract to monthly
payments will be deemed to mean payments at the frequency elected.
SECTION 7.06-REQUIRED MINIMUM DISTRIBUTIONS
Notwithstanding anything in this Contract to the contrary, this Contract is
subject to the "Required Minimum Distribution" rules of Sections 403(b) and
401(a)(9) of the Code, including the Treasury Regulations which apply. To the
extent that any distribution options available to the Participant under this
Contract conflict with the Code, the Code requirements prevail.
Item A below, describes the Required Minimum Distribution payments to be made
during the Participant's lifetime. Item B below, describes the Required Minimum
Distribution payments to be made after the Participant's death, if the
Participant dies before the Participant's entire interest under the Contract is
distributed to the Participant.
The Required Minimum Distribution rules may be satisfied by either taking an
Annuity Benefit or by taking withdrawals at least annually from or with respect
to the Participant's entire interest under the Contract, all as subject to these
rules.
If the Participant chooses annual withdrawals, the Participant's annual Required
Minimum Distribution payments calculated for the Participant's account may be
made from the Participant's account or from another 403(b) arrangement that the
Participant maintains, pursuant to Treasury Regulations. If the Participant does
not take Required Minimum Distribution payments from their account, we will
assume that the Participant is taking them from another 403(b) arrangement that
the Participant maintains.
A. REQUIRED MINIMUM DISTRIBUTION RULES - PAYMENTS DURING THE PARTICIPANT'S LIFE
Except as otherwise noted in this Item A, the Participant's entire interest
under the Contract will be distributed, or begin to be distributed, no later
than the Participant's Required Beginning Date. For purposes of this Item A the
Participant's Required Beginning Date is April 1 of the calendar year following
the later of these two choices: (a) the calendar year the Participant reaches
age 70 1/2 or (b) the calendar year the Participant retires from employment with
the Employer.
If the Participant's account was purchased with a direct transfer of funds from
another 403(b) arrangement and the Participant has informed us at the time of
purchase of the amount, then payments of the amount of the Participant's
December 31, 1986 account balance transferred to this Contract must begin by age
75.
The Participant's Required Minimum Distribution payment may be computed under
any of the methods permitted under Section 401(a)(9) of the Code, including
payments over the Participant's life, or the lives of the Participant and the
Participant's named Beneficiary, or a period certain not extending beyond the
Participant's life expectancy, or the joint and last survivor expectancy of the
Participant and the Participant's named Beneficiary. Payments must be made as
required by the Required Minimum Distribution rules, including "incidental death
benefit" rules described in the Treasury Regulations.
2004EDCGAC 26
MANNER OF PAYMENT
The Participant may satisfy the Required Minimum Distribution rules by applying
any portion of the Participant's entire interest under the Contract to an
Annuity Benefit which satisfies Temporary Treasury Regulation Section
1.401(a)(9)-6T, or any successor Regulation. The distribution periods described
in the preceding paragraph cannot exceed the periods specified in Section
1.401(a)(9)-6T of the Temporary Treasury Regulations or any successor
Regulation. If such an Annuity Benefit is elected after the Participant's
Required Beginning Date, the first payment interval must begin on or before the
date amounts are applied to the Annuity Benefit and the payment required for one
payment interval must be made no later than the end of such payment interval.
These "lifetime" Required Minimum Distribution payments must be made in periodic
payments at intervals of no longer than 1 year and must be either non-increasing
or they may increase only as provided in [Q&As-1 and -4 of Section
1.401(a)(9)-6T] of the Temporary Treasury Regulations or any successor
Regulation. In addition, any distribution must satisfy the incidental benefit
requirements specified in [Q&A-2 of ss.1.401(a)(9)-6T] or any successor
Regulation.
To the extent that distributions have not begun in the form of an annuity on an
irrevocable basis (except for acceleration) lifetime distributions of the
Participant's interest under the Contract must be made as follows:
The lifetime Required Minimum Distribution amount to be distributed for each
calendar year for which a distribution is required is the lesser of:
(a) the quotient obtained by dividing the Participant's interest under the
Contract (determined in accordance with Treasury Regulations) by the
distribution period in the Uniform Lifetime Table set forth in Treasury
Regulation Section 1.401(a)(9)-9 or any successor Regulation, using the
Participant's attained age as of the Participant's birthday in the calendar year
for which the distribution is required; or
(b) if the Participant's sole designated Beneficiary for the calendar year for
which the distribution is required is the Participant's spouse, the quotient
obtained by dividing the Participant's interest under the Contract (determined
in accordance with Treasury Regulations) by the number in the Joint and Last
Survivor Table set forth in Treasury Regulation Section 1.401(a)(9)-9 or any
successor Regulation, using the Participant's respective attained ages as of the
Participant's respective birthdays in the calendar year for which a distribution
is required.
For purposes of these Required Minimum Distribution rules, prior to commencement
of annuity payments under the Participant's account on an irrevocable basis, the
Participant's entire interest under the Contract as of any valuation date
includes the dollar amount credited under the Participant's account plus the
actuarial value of any other benefits (such as minimum survivor benefits) that
will be provided under the Participant's account.
B. REQUIRED MINIMUM DISTRIBUTION RULES - PAYMENTS AFTER THE PARTICIPANT'S DEATH
(a) Death On or After Lifetime Required Minimum Distribution Payments
Begin. If the Participant dies on or after lifetime Required Minimum
Distribution payments begin, the remaining portion of the Participant's
interest under the Contract will continue to be distributed at least as
rapidly as under the Annuity Benefit or other option chosen under the
Participant's account.
(b) Death Before Lifetime Required Minimum Distribution Payments Begin.
If the Participant dies before lifetime Required Minimum Distribution
payments begin, the Participant's entire interest will be distributed
at least as rapidly as follows:
(1) If the Participant's Beneficiary is an individual other than
the Participant's surviving spouse as described in the immediately
following paragraph, the Participant's entire interest under the
Contract will be distributed, starting by the end of the calendar
year following the calendar year of the Participant's death, over
the remaining life expectancy of the designated Beneficiary, with
such life expectancy determined using the age of the Beneficiary
as of his or her birthday in the year following
2004EDCGAC 27
the year of the Participant's death. In the alternative, the
Beneficiary may elect to take distribution of the Participant's
entire interest under the Contract in accordance with this Item B,
paragraph (b)(3) below.
(2) If the Participant's sole Beneficiary is the Participant's
surviving spouse, the Participant's entire interest under the
Contract will be distributed, starting by the end of the calendar
year following the calendar year of the Participant's death (or by
the end of the calendar year in which the Participant would have
attained age 70 1/2 if later), over such surviving spouse's life.
In the alternative, the Participant's surviving spouse may elect
to take distribution of the Participant's entire interest under
the Contract in accordance with this Item B, paragraph (b)(3)
below. If the Participant's surviving spouse dies before these
required distributions commence to him or her, the Participant's
remaining interest under the Contract will be distributed,
starting by the end of the calendar year following the calendar
year of the Participant's surviving spouse's death, over the
Participant's spouse's designated Beneficiary's remaining life
expectancy determined using such Beneficiary's age as of his or
her birthday in the year following the death of the Participant's
spouse. In the alternative, that Beneficiary may elect to take
distribution of the Participant's entire interest under the
Contract in accordance with this Item B, paragraph (b)(3) below.
If the Participant's surviving spouse dies after these required
distributions commence to him or her, any remaining interest will
continue to be distributed under the Annuity Benefit or other
option chosen under the Participant's account.
(3) If there is no individual designated as Beneficiary, or if the
applicable Beneficiary chooses this alternative, the entire
interest will be distributed by the end of the calendar year
containing the fifth anniversary of the Participant's death (or of
the Participant's surviving spouse's death in the case of the
surviving spouse's death before distributions are required to
begin under this Item B, paragraph (b)(2) above).
(4) Life expectancy is determined using the Single Life Table in
[Q&A-1 of Treasury Regulation Section 1.401(a)(9)-9] or any
successor Regulation. If distributions are being made to a
surviving spouse as the sole designated Beneficiary, such spouse's
remaining life expectancy for a year is the number in the Single
Life Table corresponding to such spouse's age in the year. For
calendar years for which a distribution is required after the year
of the surviving spouse's death, the remaining life expectancy of
the surviving spouse is calculated using the age of the surviving
spouse as of the spouse's birthday in the calendar year of the
spouse's death, reduced by one for each subsequent calendar year.
In all other cases, remaining life expectancy for a year is the
number in the Single Life Table corresponding to the Beneficiary's
age in the year specified in paragraph (b)(1) or (b)(2) of this
Item B and reduced by 1 for each subsequent year.
(c) For purposes of paragraphs (a) and (b) of this Item B above,
Required Minimum Distributions are considered to commence on the
Participant's Required Beginning Date defined above in Item A of this
section or, if applicable, on the date distributions are required to
begin to the surviving spouse under paragraph (b)(2) above. However, if
distributions start prior to the applicable date in the preceding
sentence, on an irrevocable basis (except for acceleration) under an
annuity contract meeting the requirements of Temporary Treasury
Regulation Section [1.401(a)(9)-6T] or any successor Regulation, then
required distributions are considered to commence on the annuity
starting date.
To the extent that distributions have not begun in the form of an annuity on an
irrevocable basis (except for acceleration) distributions of the Participant's
interest under the Contract after the Participant's death must be made in
accordance with the following sentences. The Required Minimum Distribution for
each calendar year for which a distribution is required after the year of the
Participant's death is the quotient obtained by dividing the Participant's
interest under the Contract (determined under Treasury Regulations) by the
remaining life expectancy of the applicable Beneficiary, determined as provided
above. The rules applicable to the determination of the Participant's entire
interest under the Contract in Item A also apply. That is, for purposes of these
Required Minimum Distribution rules, prior to commencement of annuity payments
under the Contract on an irrevocable basis, the Participant's entire interest
under the Contract as of any valuation date includes the
2004TSAGAC 28
dollar amount credited under the Contract plus the actuarial value of any other
benefits (such as minimum survivor benefits) that will be provided under the
Contract.
SECTION 7.07-COMMENCEMENT OF ANNUITY BENEFITS
At or prior to the Annuity Commencement Date or age 70 1/2we will notify the
Participant of the payout options available under this Contract.
If an Annuity Commencement Date elected is later than age 70 1/2 a required
minimum distribution must be made to the Participant commencing by April 1st of
the year following the year the Participant attains age 70 1/2 in accordance
with the Code and required regulations, unless the Employer informs us that a
required minimum distribution is being satisfied through other 403(b)
arrangements.
Before the Annuity Commencement Date, the Participant may elect to change such
date. The changed Annuity Commencement Date may be any date after the election
is filed (other than the 29th, 30th, or 31st day of any month). Any election for
such change must be made in writing by the Participant and will not take effect
until received and accepted by us at our Processing Office.
No Annuity Commencement Date will, however, be later than the first day of the
month that follows the date the Participant attains the "maximum maturity age"
or, if later, the tenth anniversary of the Participation Date. The current
maximum maturity age will be specified in the Participant's Certificate. We may
change this age in conformance with applicable law.
SECTION 7.08-CHANGES
We reserve the right, upon advance written notice to the Employer, to change at
any time on and after the fifth anniversary of the Contract Date, at intervals
of not less than five years, the actuarial basis used in the Tables of
Guaranteed Annuity Payments; however, no such change will apply to (A) any
Annuity Benefit provided before the change or (B) Contributions made before such
change which are applied to provide an Annuity Benefit.
SECTION 7.09-SPOUSAL ANNUITY AND CONSENT RULES
This section applies if the Plan is subject to ERISA.
If the Participant is married, payments will be made in the form of a qualified
Joint and Survivor Annuity as defined in Section 417(b) of the Code. If the
Participant is not married, payments will be made in the "Normal Form" of
Annuity (as described in Part VII of this Contract), unless the Participant
elects otherwise as described in this section. If the Participant is married and
dies before payments have begun, payments will be made to the Participant's
surviving spouse in the form of a Life Annuity unless at the time of the
Participant's death there was a contrary election made pursuant to this section.
However, the Participant's surviving spouse may elect, before payment is to
commence, to have payment made in any form permitted under the terms of this
Contract and the Plan.
The Participant may elect pursuant to the Plan and ERISA not to have payments
made in the form of a qualified Joint or Survivor annuity or Life Annuity as the
case may be. In that case it will be paid in any other form elected under the
terms of this Contract and the Plan. If payments are to be made to the
Participant's spouse upon the Participant's death, the Participant's spouse may
elect in accordance with the Plan and ERISA for a Beneficiary other than the
spouse to receive payments.
If the Participant does not attain age 35 by the end of the current Plan year,
the Participant may make a special election to name a Beneficiary other than the
spouse to receive payment of the value of the Participant's interest. Such
election will be effective for the period beginning on the date of such election
and ending on the first day of the Plan year in which the Participant attains
age 35. The elections will cease to be effective as of the first day of the Plan
year in which the Participant attains age 35 unless a new election naming a
Beneficiary other than the spouse is made pursuant to the terms of this section.
2004TSAGAC 29
Any such election must be consented to by the Participant's spouse, if
applicable, in writing before a notary or a representative of the Plan and must
be limited to a benefit for a specific alternate Beneficiary. However, no
spousal consent will be required if the Participant can prove to the
satisfaction of the Employer and us, that the Participant does not have a spouse
or that the Participant cannot locate their spouse. Also, if the Participant has
become legally separated from their spouse or has been abandoned (within the
meaning of local law) and has a court order to such effect, spousal consent is
not required unless a qualified domestic relations order provides otherwise.
Each election to designate a Beneficiary other than the Participant's spouse
must be consented to by the Participant's spouse and any election made under
this paragraph to waive the spouse's benefits may be revoked without the consent
of the spouse at any time prior to the date as of which payments commence. Any
consent to waive the spouse's benefits will be valid only with regard to the
spouse who signs it. Any new waiver or change of Beneficiary will require new
spousal consent.
The provisions requiring spousal consent in this section will also apply with
regard to the Participant's election to take any in-service withdrawal under the
terms of the Plan and will also apply to withdrawals for loans as described in
the section on "Loans". A spouse's written consent, witnessed by a
representative of the Plan or a notary, must be given on a form acceptable to
the Employer and us, in accordance with the Plan and ERISA, prior to any such
withdrawal or loan, unless the Participant can show that there is no spouse or
that the spouse cannot be located.
If the Annuity Account Value applied to provide the spousal benefits on the date
payment is to commence is in the aggregate less than $5,000, the Participant may
choose to make payment in a single sum rather than in the form of a qualified
Joint and Survivor Annuity or the "Normal Form" of Annuity as described in Part
VII of this Contract. Upon any payment made pursuant to this section, we will be
released from any and all liability for payment with respect to the Annuity
Account Value.
SECTION 7.10-CONDITIONS
We may require proof acceptable to it that the person on whose life a benefit
payment is based is alive when each payment is due. We will require proof of the
age of any person on whose life an Xxxxxxx Xxxxxxx is based.
If a benefit was based on information that is later found not to be correct,
such benefit would be adjusted on the basis of the correct information. The
adjustment will be made in the number or amount of the benefit payments, or any
amount used to provide the benefit, or any combination. Overpayments by us will
be charged against future payments. Underpayments will be added to future
payments. Our liability is limited to the correct information and the actual
amounts used to provide the benefits.
If the age (or sex, if applicable as stated in the Tables of Guaranteed Annuity
Payments) of any person upon whose life an Annuity Benefit depends has been
misstated, the benefits payable will be based on the benefit amount applicable
to those that would have been purchased at the correct age (or sex). Any
overpayments or underpayments made by us will be charged or credited with
interest of [6%] or the then current Guaranteed Interest Rate; we will determine
which rate will apply, on a uniform and nondiscriminatory manner, for similar
contracts. Such interest will be deducted from or added to future payments.
If we receive proof satisfactory to us that (1) a payee entitled to receive any
payment under the terms of this Contract is physically or mentally incompetent
to receive such payment or is a minor, (2) another person or an institution is
then maintaining or has custody of such payee, and (3) no guardian, committee or
other representative of the estate of such payee has been appointed, we may make
the payments to such other person or institution. In the case of a minor, the
payments will not exceed $200. We will have no further liability with respect to
the payments so made.
If the amount to be applied hereunder is less than $2,000 or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected.
2004TSAGAC 30
PART VIII - PARTICIPANT ACCOUNTS; FORFEITURE ACCOUNT
SECTION 8.01 PARTICIPANT ACCOUNTS
The Employer will specify each Participant for whom an account is to be
maintained under this Contract. The Employer will also specify by Participant
each Contribution being remitted, the source, if applicable, to which each
Contribution relates, and the allocation by source of such Contribution among
the Investment Options. The terms of the section "Guaranteed Interest
Option-Conditions", the section "Variable Investment Options /Accumulation Units
and Unit Values" and the section "Fixed Maturity Options" apply separately with
respect to each Participant's account under this Contract.
Subject to the terms of the Plan and the restrictions on distributions stated in
the section "Restrictions on Distributions", we will at the Employer's request
terminate a Participant's participation under this Contract by paying the
Annuity Account Value to the Participant. This right will be exercised only if
(i) no initial Contributions have been received on the Participant's behalf
within 120 days of the Participation Date under the Certificate, (ii) there have
been no on-going Contributions received on behalf of the Participant during the
last three completed Participation Years, and the Annuity Account Value is less
than [$500], or (iii) a partial withdrawal is made that would result in the
Annuity Account Value of the Participant's account falling below [$500].
The designations or maintenance of any account under this Contract shall not
give any Participant, or Beneficiary of the Participant, or any other person any
right or interest specific to the assets invested in the Investment Options of
the Contract unless so specifically provided by the provisions of this Contract.
SECTION 8.02-FORFEITURES/FORFEITURE ACCOUNT
All or a portion of amounts attributable to Employer Contributions, which are
non-vested may be subject to forfeiture under the Plan.
The Employer will inform us if the Annuity Account Value of a Participant's
account is to be reduced as a result of a forfeiture pursuant to the terms of
the Plan.
The amount of such reduction will be withdrawn from the Participant's account,
without a withdrawal charge, and held in the forfeiture account, however, if the
Employer transfers such amount to another provider, the withdrawal will be
subject to the applicable withdrawal charge as specified in the Application. We
also reserve the right to impose a transfer charge for any such transfer.
The forfeiture account will be an unallocated account under this Contract and
maintained in the Guaranteed Interest Option. Amounts in the forfeiture account
will be reallocated on an annual basis to the remaining Participants as reported
in writing to us by the Employer. We will reallocate these amounts in accordance
with the Participant's investment allocations on record. Unless otherwise
directed by the Employer, such reallocation will be made as soon as practicable
after our receipt of directions from the Employer.
2004TSAGAC 31
PART IX - CHARGES
SECTION 9.01-WITHDRAWAL CHARGES
Payment made under Part V "Distributions and Death Benefits" may be subject to a
withdrawal charge as specified in the Application. Withdrawals from any
forfeiture account are also subject to such withdrawal charge if not reallocated
to the Participants.
The years of participation under the Prior Contract or Certificate, if
applicable, may be included for purposes of determining the withdrawal charge.
The withdrawal charge will be reduced to the extent required to comply with any
applicable state law.
We reserve the right to reduce or waive the withdrawal charge upon such events
specified in the Application.
If the Plan is subject to a withdrawal charge then, a "Free Withdrawal Amount"
will apply as follows:
"Free Withdrawal Amount," means an amount equal to 10% of the Annuity Account
Value minus the total of all prior withdrawals (and associated withdrawal
charges) in the current Participation Year minus any amount in the Loan Reserve
Account without incurring a withdrawal charge. The free withdrawal amount when
applicable may be changed but it will always be a percentage between 0% and 30%.
SECTION 9.02-EARLY WITHDRAWAL CHARGE
If requested by the Employer after the completion of a period agreed upon by the
Employer and us not to exceed five Contract Years from the date as of which an
agreement is entered into between the Employer and us and after the completion
of each successive period any assets of the Plan that are currently held in
Participant accounts under the Contract will be transferred as soon as
administratively practicable to a successor funding agency designated by the
Employer unless, not later than 7 days before the date on which a transfer would
otherwise occur, the Employer notifies us to renew that agreement. Such funds
will be transferred in a single sum and no withdrawal charges will be applied in
connection with such a transfer. However, upon termination of participation or a
partial withdrawal prior to the end of the agreed upon period, a withdrawal
charge may apply as described in the section entitled "Withdrawal Charges"
above. We will not be responsible for the validity of any instructions by the
Employer.
SECTION 9.03-THIRD PARTY TRANSFERS
We have the right to deduct a charge for each occurrence for a direct transfer
to another annuity contract or custodian account that meets the requirements of
section 403(b) of the Code. This charge, if any, will be specified in the
Application and will not be less than $25 or greater than $65.
SECTION 9.04-EMPLOYER EXPENSE DEDUCTION
If the Employer so requests and we agree, we will deduct amounts from the
Annuity Account Value requested by the Employer in accordance with the terms of
the Plan to pay Plan operating expenses to a party designated by the Employer.
SECTION 9.05-CHARGES DEDUCTED FROM ANNUITY ACCOUNT VALUE
[OPTIONAL FEATURES]
ENHANCED DEATH BENEFIT CHARGE
If the Participant elects the Enhanced Death Benefit the charge will be a
percentage of the Annuity Account Value not to exceed [.15%]. This charge will
be deducted on each Participation Date anniversary pro rata from the Guaranteed
Interest Option and Variable Investment Options. If there are not sufficient
amounts in those Investment Options, we will make up the required amounts from
the Fixed Maturity Options in order of the earliest Expiration Date(s) first.
2004TSAGAC 32
ADMINISTRATIVE CHARGE
As of each Processing Date, we will deduct administrative charges related to the
administration and/or distribution of the Certificate from the Annuity Account
Value. Such Charges, if any, are shown in the Application. The amount of any
such Charge may be increased to a maximum of $65 in accordance with the section
"Changes".
The Administrative Charge, if applicable, will be deducted prorata from the
Guaranteed Interest Option and Variable Investment Options. If there are not
sufficient amounts in those Investment Options, we will make up the required
amounts from the Fixed Maturity Options in order of the earliest Expiration
Date(s) first. Also, the charge will be prorated for the Participation Year or
portion thereof in which the Participation Date occurs or in which the Annuity
Account Value is withdrawn or applied to provide an Annuity Benefit or death
benefit.
We have the right to change the amount of the charges with respect to future
Contributions. We will give the Employer and the Participant advance notice of
any such change.
SECTION 9.06-TRANSFER AND LOAN CHARGES
We reserve the right to impose a charge with respect to any of the following
1.) establishing and administration of a loan
2.) any transfer among Variable Investment Options (after the number of
such transfers indicated in the section "Transfer Rules")
The amount of the charge, if any, will be set forth in the Application.
SECTION 9.07-VARIABLE SEPARATE ACCOUNT CHARGE
Assets of the Variable Separate Account will be subject to a daily asset charge
as specified in the Application. The annual charge is 1.49% of the assets of the
Variable Separate Accounts.
SECTION 9.08-PLAN RECORDKEEPING SERVICE CHARGES
If the Employer requests that we provide Plan recordkeeping services and we
agree, the Employer will pay such charge directly to us or in the alternative
the Employer may direct us to deduct such charge from Participant accounts. Such
charges will be mutually agreed upon by the Employer and us.
SECTION 9.09-APPLICABLE TAX CHARGES
We reserve the right to deduct a charge that we determine to approximate certain
taxes that may be imposed on us, including but not limited to premium taxes,
that may apply in the Participant's state of residence. The tax charge will be
deducted from amounts applied to an Annuity Benefit in accordance with Part VII
"Annuity Benefits". If the tax is imposed at a time other than when amounts are
applied to an Annuity Benefit, we reserve the right to deduct the charge from
Contributions in the section "Contributions, Discontinuance and Allocations" or
withdrawals in the section "General Withdrawals".
SECTION 9.10-CHANGES
In addition to our right to reduce or waive charges as described in this Part IX
of this Contract, we reserve the right, upon advance notice to the Employer, to
increase the amount of any charge with respect to each Participant, subject to
(a) any maximum amount provided in this Part IX and (b) with respect to
withdrawal and administrative charges deducted from the Annuity Account Value.
The application of any increase is to be made on a prospective basis. We also
reserve the right, upon advance written notice to the Employer, to increase the
maximum amount of any charge provided in this Part IX or the Application, only
with respect to Participants whose Participation Date occurs after the effective
date of the increase, but not to exceed the maximum amount then permitted by any
law that applies.
2004TSAGAC 33
PART X - UNALLOCATED ACCOUNT:
SECTION 10.01 UNALLOCATED ACCOUNT
Subject to the conditions set forth in this section, we will accept transfers of
cash into this Contract; we do not accept in-kind asset transfers from a prior
funding vehicle. When we receive cash transferred from a prior funding vehicle,
the transferred amount will be credited as one lump sum to the Plan's
Unallocated Account. Any amount held in the Plan Unallocated Account becomes
part of our Guaranteed Interest Option and will be credited with interest at the
rate applicable to amounts held in the Guaranteed Interest Option. The
transferred amount will remain in the Plan Unallocated Account until we have
received all the information we require, including properly completed forms, to
effect a transfer from the Plan Unallocated Account to a Participant's account.
With respect to each Participant, we will allocate amounts to each Participant's
account only after the Employer provides instructions that are acceptable and
necessary in order to complete the allocation process. We reserve the right to
limit the period during which such instructions may be received to no more than
10 days from the initial transfer into the Plan Unallocated Account and to
return funds to the Employer for which transfer information has not been timely
received in good order. Under no circumstances will we be required to transfer
to Participant accounts an amount in aggregate greater than the amount deposited
by the Employer plus such interest as we credited to the Unallocated Account,
unless otherwise expressly agreed upon between the Employer and us.
The Employer is solely responsible for effectuating the asset transfer in
accordance with all applicable laws and regulations.
For purposes of this Part X of the Contract, we will not accept any rollover
amounts described in section 403(b)(8) of the code from the employee to be
deposited into the Unallocated Account. Once the employee becomes a Participant
such amount can be rolled over directly into the Participant's investments
options.
2004TSAGAC 34
PART XI - GENERAL PROVISIONS
SECTION 11.01-CONTRACT
This Contract and the Application constitute the entire contract between the
parties and will govern with respect to our rights and obligations.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and signed by one of our authorized officers. In
addition to the rights of change reserved by us as provided in this Contract,
the Contract may be changed by amendment or replacement without the consent of
any other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
under the Contract with respect to Contributions made hereunder prior to the
effective date of such change may be adversely affected by an amendment to the
Contract without the consent of the Employer.
We are under no obligation or by reason of issuance of this Contract either (a)
to determine whether any payment, distribution or transfer under this Contract
complies with the provisions, terms and conditions of the Plan or with
applicable law or (b) to administer the Plan, including without limitation, any
provisions required by any applicable law.
Subject to our approval, the Employer may designate another person to exercise
rights under the Contract.
SECTION 11.02-STATUTORY COMPLIANCE
We reserve the right to amend this Contract without the consent of any other
person in order to comply with applicable laws and regulations. Such right will
include, but not be limited to, the right to conform the Contract to reflect
changes in the Code, in Treasury regulations or published rulings of the
Internal Revenue Service.
No amendment to this Contract may vest in any Employer any interest or control
over any assets of the Plan invested in this Contract or cause any such assets
to be used for or diverted to, purposes other than the exclusive benefit of Plan
participants or their Beneficiaries.
The benefits and values available under this Contract will not be less than the
minimum benefits required by any applicable federal and /or state law.
SECTION 11.03-DEFERMENT
Application of proceeds to provide a payment of a death benefit under Part V and
payment of any portion of the Annuity Account Value (less any applicable
withdrawal charge) will be made within seven days after the Transaction Date.
Payments or applications of proceeds from a Separate Account may be deferred for
any period during which (1) the New York Stock Exchange is closed or trading is
restricted, (2) sales of securities or determination of the fair value of the
Separate Account's assets is not reasonably practicable because of an emergency,
or (3) the Securities and Exchange Commission, by order, permits us to defer
payment in order to protect persons with interests in the Variable Separate
Account. We may defer payment or transfer of any portion of the Annuity Account
Value in the Guaranteed Interest Option and the Fixed Maturity Options for up to
six months while the Participant is living.
SECTION 11.04-ASSIGNMENTS, NONTRANSFERABILITY, NONFORFEITABILITY
The Participant's entire interest under the Contract is nonforfeitable except as
otherwise provided in the section "Forfeitures/Forfeiture Account". This
Contract is nontransferable except by surrender to us.
Any interest under the terms of this Contract may be sold, assigned, discounted,
or pledged as collateral for a loan or as security for the performance of an
obligation or for any other purpose to any person other than us.
2004TSAGAC 35
No amount to be paid under this Contract may be assigned, commuted, or
encumbered by the payee. To the extent permitted by law, no such amount will in
any way be subject to any legal process to subject the same to the payment of
any claim against such payee.
Subject to the requirements of applicable law, no amount payable to the
Participant or the Participant's Beneficiary under this Certificate may be
assigned, commuted or encumbered by the payee and no such amount will in any way
be subject to any claim against such payee. Such prohibition will not apply to
any assignment, transfer or attachment pursuant to a qualified domestic
relations order, as defined in Section 414(p) of the Code if such qualified
domestic relations order is applicable as determined by the Employer, or the
person (such as the plan administrator) designated, if any, in the Plan to make
such determination. Any interest under the terms of this Certificate may not be
sold, assigned, discounted, or pledged as collateral for a loan or as security
for performance of an obligation or for any other purpose to any person other
than us.
This Contract is not transferable within the meaning of Section 401(g) of the
Code except by surrender to us.
It is impossible, prior to the satisfaction of all liabilities with respect to
you and your Beneficiaries under the Plan, for any part of the assets and income
of the Contract to be used for, or diverted to, purposes other than for the
exclusive benefit of you and your Beneficiaries under the Plan.
SECTION 11.05 OWNERSHIP RIGHTS
The Employer will hold all the assets of the Plan invested in this Contract
including all Annuity Account Values and Cash Values of all Plan Participants in
trust for the exclusive benefit of the Participants and the Participants'
Beneficiaries under the Plan. This Contract is not subject to the claims of the
general creditors of the Employer.
It is impossible, prior to the satisfaction of all liabilities with respect to
the Participants and the Participant's Beneficiaries under the Plan, for any
part of the assets and income of the Contract to be used for, or diverted to,
purposes other than for the exclusive benefit of the Participants and their
Beneficiaries under the Plan.
SECTION 11.06 EMPLOYER'S RESPONSIBILITY
The Employer will have responsibility for the administration of the Plan,
Contributions, authorization of payments and other distributions hereunder. We
will deal with the Employer in accordance with the terms and conditions of this
Contract. We shall make no payment without written consent from the Employer,
and we will be fully discharged of any liability therefore to the extent such
payments are made pursuant to such direction from the Employer or Participant.
SECTION 11.07-PLAN STATUS
If the Plan is subject to ERISA, all requests for third party transfers or
rollovers, ownership changes, elections, changes of Annuity Commencement Date,
withdrawals, loans, Participant terminations or death benefit payments must be
made or approved by the Employer on behalf of the affected Participant.
If the Plan is not subject to ERISA, unless otherwise provided in this Contract,
all requests described in the preceding paragraph may be made by the Participant
unless the Employer instructs otherwise.
The Employer reports to us on the Application if the Plan is subject to ERISA
and we will rely on such report.
The Employer will notify us in writing of any changes in the ERISA Plan status.
We will effect such changes as soon as practicable.
2004TSAGAC 36
SECTION 11.08-TERMINATION OF THE CONTRACT
The Employer may terminate the Contract at any time by written notice in a form
acceptable to us. The Contract will also terminate when Contributions are
discontinued and the Annuity Account Value with respect to each Participant is
zero.
SECTION 11.09-DISQUALIFICATION OF PLAN OR CONTRACT
In the event that the Plan fails to qualify under Section 403(b) of the Code and
applicable Treasury Regulations, we reserve the right, upon receiving notice of
such fact, to transfer the Annuity Account Value under this Contract to another
annuity contract issued by us or one of our affiliated or subsidiary life
insurance companies on the life of the Participant, or to terminate this
Contract and pay to the Participant the Annuity Account Value less a deduction
for applicable taxes, solely at our option.
In the event that this Contract fails to qualify as an Annuity, we will have the
right, upon receiving notice of such fact, to terminate this Contract and pay to
the Participant the Annuity Account Value.
SECTION 11.10-MANNER OF PAYMENT
Unless the Employer and we agree, all amounts paid to or from this Contract are
payable by check in United States dollars.
SECTION 11.11-REPORTS AND NOTICES
With respect to each Participant, at least once each year until the Annuity
Commencement Date, we will furnish the Participant with a report showing for
each Investment Option the Annuity Account Value, the number of Accumulation
Units for each Variable Investment Option and for the Fixed Maturity Options,
the Fixed Maturity Amount, market value adjustment and Annuity Account Value.
The terms of this Contract which require us to send a report or any written
notice will be satisfied by our mailing any such report or notice to the
Employer or Participant's last known address as shown in our records.
Notifications of rules in effect and other matters of general applicability to
this contract may be included in the product prospectus and prospectus
supplements as mailed to such address from time to time. The notices and reports
may also be delivered by electronic means as agreed upon between us and the
Employer or Participant.
All written notices sent to us will not be effective until received in good
order during a Business Day at the Processing Office.
SECTION 11.12-CONTRACT HOLDER'S RESPONSIBILITY
If the Contract Holder is the trustee of a trust established pursuant to a trust
agreement between us and said trustee and adopted by the Employer, such trustee
will have no responsibility for Contributions or any payments or other
distributions under the Plan or Contract or for the administration of the Plan
or Contract. In addition, we will deal with such trustee in accordance with the
terms and conditions of the trust agreement pursuant to which the trustee agreed
to act as such and in such manner as the trustee and we agree, without the
consent of any other person.
2004TSAGAC 37
