GROUP FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY
GROUP ANNUITY CONTRACT NO. [2003-TSAGAC 403(B)]
ISSUE DATE: [AUGUST 1, 2003]
CONTRACT HOLDER: [EMPLOYER OR TRUST]
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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 includes the following pages,
are agreed to by the Contract Holder and The Equitable Life Assurance Society of
the United States ("Equitable").
This Group Annuity Contract provides for a Variable Annuity Payout Benefit
Option. If elected, this Benefit will fluctuate with the investment results of
the 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 separate account charges applicable
to the Variable Annuity Payout Benefit will be [1.55%]; therefore, the smallest
annual rate of investment return, required to ensure that the dollar amount of
Variable Annuity Payouts illustrated in the Certificate will not decrease is
[6.55%].
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
[0000 XXXXXX XX XXX XXXXXXXX
NEW YORK, NEW YORK 10104]
/s/ Xxxxxxxxxxx X. Xxxxxxx /s/ Xxxxxxx Xxxxxxx
------------------------------------- -----------------------------------
Xxxxxxxxxxx X. Xxxxxxx Xxxxxxx Xxxxxxx
President and Chief Executive Officer Senior Vice President, Secretary
and Associate General Counsel
GROUP FLEXIBLE PREMIUM COMBINATION FIXED AND VARIABLE DEFERRED ANNUITY CONTRACT.
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE VARIABLE SEPARATE ACCOUNT MAY
INCREASE OR DECREASE IN VALUE.
INTEREST RATE IS GUARANTEED WITH RESPECT TO THE PORTION OF THE ANNUITY ACCOUNT
VALUE HELD IN THE GUARANTEED INTEREST OPTION.
FIXED ANNUITY BENEFITS- NON-PARTICIPATING
THIS GROUP ANNUITY CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT ("MVA") FORMULA
WHICH MAY RESULT IN A POSITIVE OR NEGATIVE ADJUSTMENT IN BENEFITS. AN MVA WILL
NOT APPLY (1) UPON TRANSFER TO A NEW FIXED MATURITY OPTION (OR WITHIN 30 DAYS
THEREAFTER), OR (2) UPON WITHDRAWAL OF THE AMOUNT ALLOCATED TO A FIXED MATURITY
OPTION ON THE EXPIRATION DATE OF SUCH FIXED MATURITY OPTION (WITHDRAWAL CHARGES
MAY ALSO APPLY)
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TABLE OF CONTENTS
PAGE
PART I - DEFINITIONS 4
PART II - INVESTMENT OPTIONS 9
SECTION 2.01 TYPES OF INVESTMENT OPTIONS
SECTION 2.02 AVAILABILITY OF INVESTMENT OPTIONS
SECTION 2.03 GUARANTEED INTEREST OPTION-CONDITIONS
SECTION 2.04 SEPARATE ACCOUNT
SECTION 2.05 VARIABLE INVESTMENT OPTIONS/ACCUMULATION
UNITS AND UNIT VALUES
SECTION 2.06 CHANGES WITH RESPECT TO VARIABLE
SEPARATE ACCOUNTS
SECTION 2.07 FIXED MATURITY OPTION (FMO)
PART III - CONTRIBUTIONS AND ALLOCATIONS 16
SECTION 3.01 CONTRIBUTIONS
SECTION 3.02 ALLOCATIONS
PART IV - TRANSFERS AMONG INVESTMENT OPTIONS 17
SECTION 4.01 TRANSFER REQUESTS
SECTION 4.02 TRANSFER RULES
PART V - WITHDRAWALS, DISTRIBUTIONS, DEATH BENEFITS AND TERMINATION 19
SECTION 5.01 RESTRICTIONS ON WITHDRAWALS, DISTRIBUTIONS AND
ANNUITY BENEFITS
SECTION 5.01A WITHDRAWALS
SECTION 5.01B DIRECT ROLLOVER OPTION
SECTION 5.01C REQUIRED MINIMUM DISTRIBUTIONS
SECTION 5.02 DEATH BENEFIT
SECTION 5.02A BENEFICIARY CONTINUATION OPTION
SECTION 5.03 BENEFICIARY
SECTION 5.04 DISCONTINUANCE OF CONTRIBUTIONS
PART VI - PLAN LOANS 28
SECTION 6.01 LOANS
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TABLE OF CONTENTS (CONTINUED)
PART VII - ANNUITY BENEFITS 31
SECTION 7.01A FORMS OF DISTRIBUTION
SECTION 7.01B ELECTION/REPORT FOR ANNUITY BENEFIT
SECTION 7.02 ANNUITY BENEFIT FORMS
SECTION 7.03 AMOUNT OF ANNUITY BENEFITS
SECTION 7.04 ANNUITY BENEFIT
SECTION 7.05 COMMENCEMENT OF ANNUITY BENEFITS
SECTION 7.06 CONDITIONS
SECTION 7.07 CHANGES
PART VIII - ALLOCATED ACCOUNTS; FORFEITURE ACCOUNT 35
SECTION 8.01 PARTICIPANT ACCOUNTS
SECTION 8.02 FORFEITURES/FORFEITURE ACCOUNT
PART IX - CHARGES 36
SECTION 9.01 WITHDRAWAL CHARGES
SECTION 9.02 THIRD PARTY TRANSFERS
SECTION 9.03 ADMINISTRATIVE AND OTHER
CHARGES DEDUCTED FROM ANNUITY ACCOUNT
VALUE
SECTION 9.04 TRANSFER AND LOAN CHARGES
SECTION 9.05 VARIABLE SEPARATE ACCOUNT CHARGE
SECTION 9.06 PLAN RECORDKEEPING SERVICE CHARGES
SECTION 9.07 ONGOING OPERATIONS CHARGE
SECTION 9.08 APPLICABLE TAX CHARGES
SECTION 9.09 CHANGES
PART X - GENERAL PROVISIONS 39
SECTION 10.01 CONTRACT
SECTION 10.02 STATUTORY COMPLIANCE
SECTION 10.03 DEFERMENT
SECTION 10.04 ASSIGNMENTS, TRANSFERABILITY
SECTION 10.05 EMPLOYER'S RESPONSIBILITY
SECTION 10.06 PLAN STATUS
SECTION 10.07 MANNER OF PAYMENT
SECTION 10.08 REPORTS AND NOTICES
SECTION 10.09 CONTRACT HOLDER'S RESPONSIBILITY
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TABLE OF GUARANTEED ANNUITY PAYMENTS 42
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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
Separate Account on a given date.
SECTION 1.03-ANNUITY ACCOUNT VALUE
"Annuity Account Value" means the sum of the amounts held for the benefit of a
Participant in the Investment Options, including any amount in the Loan Reserve
Account.
SECTION 1.04-ANNUITY BENEFIT
"Annuity Benefit" means a benefit payable by Equitable pursuant to Part VII of
this Contract.
SECTION 1.05-ANNUITY COMMENCEMENT DATE
"Annuity Commencement Date" means the date on which annuity payments to a
Participant are to commence as reported to Equitable 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 this Group Annuity Contract or
participation in this Group Annuity Contract by the Employer and accepted by
Equitable.
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" is 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 you.
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SECTION 1.10-CASH VALUE
"Cash Value" means an amount equal to the Annuity Account Value held for a
Participant, less any charge that applies as described in Part IX, "Charges".
The Cash Value at any time will be reduced by any outstanding loan plus accrued
interest and the amount of any forfeiture as described in Section 8.02
"Forfeitures/Forfeiture Account".
SECTION 1.11-CERTIFICATE
"Certificate" means the information provided to a Participant in certificate
form which describes the Participant's rights under the 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 this Group Annuity Contract and Application between the
Contract Holder, Employer and Equitable providing a variable annuity to fund the
Plan. The terms of the Contract, are agreed to by the Employer and Equitable.
SECTION 1.14-CONTRACT DATE
"Contract Date" means the date following Equitable's acceptance of an
application on which the first Participant is enrolled under the Contract, with
respect to a Plan.
SECTION 1.14A-CONTRACTHOLDER
The person or entity as set forth on the cover page of this Contract.
SECTION 1.15-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
Equitable agrees to another period.
SECTION 1.16-CONTRIBUTION
"Contribution" means a payment remitted to Equitable under Section 3.01
"Contributions".
SECTION 1.17-EMPLOYER
"Employer" means 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 1.18-EXPIRATION DATE
"Expiration Date" means the date that a Fixed Maturity Option matures.
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SECTION 1.19-FIXED MATURITY AMOUNT
"Fixed Maturity Amount" (FMA) 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 Fixed Maturity
Option Rate to Maturity, minus any withdrawals, transfers and charges, if any,
deducted from an Fixed Maturity Option.
SECTION 1.20-FIXED MATURITY OPTION
"Fixed Maturity Option" (FMO) means the Investment Option that specifies a
period of time during which an interest rate is guaranteed to remain the same
for amounts allocated to and held for such period until its expiration.
SECTION 1.21-GUARANTEED INTEREST OPTION
"Guaranteed Interest Option" (GIO) means the Investment Option that pays
interest at guaranteed rates set by Equitable from time to time.
SECTION 1.22-GUARANTEED INTEREST RATE
"Guaranteed Interest Rate" means the effective annual rate at which interest
accrues on amounts allocated to the Guaranteed Interest Option.
SECTION 1.23-INVESTMENT OPTION
"Investment Option" means a Variable Investment Option, Fixed Maturity Option,
or Guaranteed Interest Option.
SECTION 1.24-PARTICIPANT
"Participant" means an individual covered under the Plan who has been enrolled
under this Contract and for whom Equitable maintains an Annuity Account Value.
SECTION 1.25-PARTICIPATION DATE
"Participation Date" means the earliest of (a) the Business Day on which the
Participant has been enrolled under this Contract (b) the Business Day on which
the Participant was enrolled under the Prior Contract, if applicable, and (c)
the Business Day on which the first Contribution for the Participant is received
at the Processing Office.
SECTION 1.26-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 Xxxxxxxxx agrees to another period.
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SECTION 1.27-PLAN
"Plan" means the plan, arrangement or program maintained or adopted by the
Employer and named in the Application that is intended to meet the requirements
for qualification under Section 403(b) of the Code. Equitable is not a party to
the Plan.
SECTION 1.28-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 1.29-PRIOR CONTRACT
"Prior Contract" means a contract issued by Equitable and from which the
Employer and Equitable have agreed to transfer certain liabilities associated
with the Plan under such prior Contract, if applicable, to this contract.
SECTION 1.30-PROCESSING OFFICE
"Processing Office" means Equitable's administrative office or such other
location as Equitable may designate upon written notice to the Employer.
Equitable may establish more than one Processing Office. For example, the
Employer may be asked to send Contributions to one location and other
transaction requests to a different location. Contributions and other
transaction requests are only considered received by Equitable when they arrive
at the appropriate Processing Office in a form we accept.
SECTION 1.31-PROCESSING DATE
"Processing Date" means the day(s) Equitable deducts charges from the Annuity
Account Value.
SECTION 1.32-RATE TO MATURITY
"Rate to Maturity" means a specified interest rate that Equitable credits to
amounts allocated to a Fixed Maturity Option. Different Fixed Maturity Options
have different Rates to Maturity. Also, Contributions and transfers made at
different times to the same Fixed Maturity Option may have different Rates to
Maturity.
SECTION 1.33-SEPARATE ACCOUNT
"Separate Account" means Separate Account 48 and the Variable Separate
Account(s).
SECTION 1.34-SOURCES OF CONTRIBUTIONS
"Sources of Contributions" means any of the following that may apply:
[(a) Employer Contributions: Contributions made by the Employer under the
Plan, other than those described in the items below.
(b) Employer Matching Contributions: Employer Contributions matching
Salary Reduction Contributions under the terms of the Plan.
(c) Qualified Non-Elective and Qualified Matching Contributions:
Contributions made by the Employer to meet the requirements of the
nondiscrimination tests set forth in the Code.
(d) Salary Reduction Contributions (Elective Deferral Contributions):
Contributions under a salary reduction agreement that an employee
enters into with the Employer under the Plan.
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(e) Rollover Contributions: Contributions of eligible rollover
distributions directly or indirectly from another 403(b) arrangement
or other eligible retirement plan under the Code.
(f) After Tax Contributions: Amounts reported by the Employer as having
after-tax consequences under the Code.
(g) Direct Transfer Contributions: Amounts directly transferred from one
403(b) arrangement to another pursuant to Revenue Ruling 90-24.]
SECTION 1.35-TRANSACTION DATE
"Transaction Date" means the Business Day Equitable receives a Contribution or a
processing request at the appropriate Processing Office. Transaction requests
must be in a form acceptable to Equitable.
SECTION 1.36-VARIABLE INVESTMENT OPTION
"Variable Investment Option" means either a sub-account of a Variable Separate
Account, or a Variable Separate Account that has not been divided into
sub-accounts. A Variable Investment Option may invest its assets in a Portfolio.
SECTION 1.37-VARIABLE SEPARATE ACCOUNT
"Variable Separate Account(s) refers to Equitable's Separate Account [A] and any
Separate Accounts added to this Contract as described in Part II. Variable
Separate Accounts may be divided into subaccounts.
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PART II - INVESTMENT OPTIONS
SECTION 2.01-TYPES OF INVESTMENT OPTIONS
The Investment Options are specified in the Application as Equitable designates
in its discretion for purposes of the transfer rules described in Section 4.02
"Transfer Rules". The Application will identify the specific Investment Options
available pursuant to the terms of Section 2.02 "Availability of Investment
Options".
SECTION 2.02-AVAILABILITY OF INVESTMENT OPTIONS
The Application sets forth the Investment Options available under this Contract.
Part III of this Contract titled "Contributions and Allocations" describes the
allocation of Contributions among Investment Options pursuant to the Employer's
election on the Application. Such election is subject to the following:
(a) The availability of Investment Options may be subject to the terms of such
Plan, as reported to Equitable by the Employer.
(b) Equitable reserves the right to change, limit or amend the number of
Investment Options that a Employer may elect.
SECTION 2.03-GUARANTEED INTEREST OPTION-CONDITIONS
(A) GUARANTEED INTEREST OPTION
Any amount held in the Guaranteed Interest Option ("GIO") becomes part of
Equitable's general assets, which support the guarantees of this Contract
as well as other policies and contracts that Equitable offers.
The amount in such GIO at any time with respect to the Contract is equal to
the sum of:
o all amounts that have been allocated or transferred to such GIO, plus
o the amount of any interest credited, less
o all amounts that have been withdrawn (including charges) or transferred
from such Option.
Equitable will credit the amount held in the GIO with interest at effective
annual rates that Equitable sets. Equitable will also set a minimum
Guaranteed Interest Rate that will remain in effect throughout a stated
twelve-month period or a calendar year. Equitable credits interest daily to
amounts in the GIO.
For each Participant, Equitable guarantees that any rate so determined will
never be less than [1.5%/3%].
(B) CONDITIONS
The Employer agrees:
(i) With respect to the investment option of the Plan that is funded
under the GIO 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 Participants covered by the Plan. Such allocations and
transfers will be made without any direction from the Employer.
Equitable is to be given at least 60 days advance written notice by the
Employer of any noncompliance with this condition.
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(ii) The Employer is to provide Equitable with any amendment to the Plan
or its investment policy, any communication to the Participants covered
by the Plan concerning the GIO 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 Equitable at least
60 days before its effective date. Equitable may also request, and the
Employer will thereupon provide, any other information that Equitable
reasonably determines would bear upon the flow of funds to and from the
GIO.
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 and Allocations" or if Equitable determines and so notifies
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 GIO, then Equitable will have the right to:
1. decline further requests for transfers to or from the GIO; and/or
2. deem that a discontinuance of contributions has occurred under
Section 5.04, "Discontinuance of Contributions".
(C) WITHDRAWAL AND TRANSFER RULES
The cumulative total that may be withdrawn or transferred from the GIO,
hereinafter referred to as the "GIO Cumulative Total" is reflected on the
Application.
Transfers (as described in Part IV) and Withdrawals (other than those described
in Section 9.01) in the aggregate from the GIO may not exceed the GIO Cumulative
Total in a Participation Year, as determined by the greatest of the following:
(a) a percentage of the amount in the Guaranteed Interest Option on the
last day of the prior Participation Year, or,
(b) the total of all amounts transferred at the Participant's request from
the Guaranteed Interest Option to a Variable Investment Option or FMO
in the prior Participation Year and the total of all amounts withdrawn
at the Participant's request from the Guaranteed Interest Option (other
than those described in Section 9.01) in the prior Participation Year;
or
(c) a percentage of the total of all amounts transferred into or allocated
to the Guaranteed Interest Option during that Participation Year.
The percentage referred to in subsection (a) and (c) above is stated in the
Application.
SECTION 2.04-SEPARATE ACCOUNT
For purposes of this Section 2.04, "Separate Account" includes Equitable
Separate Account No. [48]. and the Variable Account.
Equitable has established the Separate Account(s) and maintains such 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 Equitable's 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 Equitable's 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 Equitable conducts. Equitable 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 Equitable's general
account.
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Equitable may, in its discretion, invest Separate Account assets in any
investment permitted by applicable law. In making its investments, Equitable may
rely conclusively on the opinion of counsel (including counsel in its employ).
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SECTION 2.05-VARIABLE INVESTMENT OPTIONS/ACCUMULATION UNITS AND UNIT VALUES
The amount in a Variable Investment Option at any time is equal to the number of
Accumulation Units in that Option multiplied by the Accumulation Unit Value that
applies at that time. If Variable Investment Options apply as described in
Section 2.04, "Separate Account", 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.
Equitable determines 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.
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, Equitable uses the share value reported to
Equitable by the Portfolio plus the applicable dividend and capital gain
rates on 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 2.06-CHANGES WITH RESPECT TO VARIABLE SEPARATE ACCOUNTS
In addition to the right reserved pursuant to the Section 2.02 "Availability of
Investment Options", Equitable reserves 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 Equitable determines to be the share of the
class of contracts to which this Contract belongs from 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
2003-GAC 403(B)
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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.
Equitable reserves 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. Equitable
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.
A Portfolio of a Variable Investment Option might, in Equitable's 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 Separate Account or Variable Investment Option, the Employer
will be notified of such exercise, as required by law.
SECTION 2.07-FIXED MATURITY OPTION (FMO)
Amounts allocated to the FMO are held in Equitable's Separate Account No. [48]
The FMO is subject to a Market Value Adjustment ("MVA") formula that may result
in adjustments, positive or negative, in benefits. An MVA will not apply upon
transfer to a new FMO or to another Investment Option on the Expiration Date of
the FMO from which the Participant's Annuity Account Value is to be transferred.
The amount in a FMO before application of a MVA is called the Fixed Maturity
Amount.
1. FIXED MATURITY OPTIONS
Equitable will specify one or more FMOs. For each such FMO, Equitable
guarantees to credit an interest rate (called the FMO Rate to Maturity).
Interest will be credited daily to amounts in the FMO. The duration of each
FMO offered under the Contract and the FMO Rate to Maturity that applies to
each FMO will be furnished by Equitable upon request. One or more FMO(s) may
be elected according to Xxxxxxxxx's rules in effect.
Transfers to an FMO as described in Part III "Contributions and Allocations"
will be allocated to the FMO(s) selected. Transfers into the FMO will receive
the FMO Rate to Maturity applicable to the elected FMO as of the Business Day
Equitable receives a transfer request at Equitable's Processing Office.
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The last day of an FMO is the Expiration Date. Equitable will send notice to
the Participant at least 15 days but not more than 45 days before the
Expiration Date of each FMO. One of the following three options may be
elected at the Expiration Date, none of which will result in a MVA:
(a) transfer an FMO into another FMO of any duration that Equitable then
offers;
(b) transfer an FMO to another Investment Option;
(c) make a withdrawal from the Fixed Maturity Amount.
If no election is made with respect to amounts in an FMO as of the Expiration
Date, such amounts will be transferred into an FMO with the earliest
Expiration Date that occurs after the then current calendar year. If
Equitable is not offering new FMOs then such amounts will be transferred into
the Money Market Option . During the 30 days following the Expiration Date,
the full Fixed Maturity Amount (less any withdrawals or transfers made or
charges deducted during such 30 day period) may be transferred into a new FMO
or a Variable Investment Option. In no event may the Participant elect an FMO
that extends beyond the Annuity Commencement Date.
Equitable has 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 [48].
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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 Section 4.01 "Transfer Requests" or a
withdrawal as described in Section 5.01A "Withdrawals" or any transaction
described in Section 5.03 "Discontinuance of Contributions", any such
transfer or withdrawal from an FMO, will be subject to a market value
adjustment described below. For this purpose, the Annuity Account Value in
the Fixed Maturity Option will be after the market value adjustment. The
market value adjustment will be in addition to any charges that apply as
described in Section 9.01 "Withdrawal Charges".
In addition, amounts applied from an FMO to provide a death benefit as
described in Section 5.02 "Death Benefit", an annuity as described in Part
VII "Annuity Benefits" or any other annuity form offered by Equitable, will
be subject to a MVA. The death benefit will be the larger of (a) the Annuity
Account Value in Separate Account No. [48] and (b) the Fixed Maturity Amount.
That is, a negative MVA will not apply.
No transfers are permitted to an FMO from any Investment Option after the
initial Contribution or transfer into such FMO.
The minimum amount that may be transferred from an FMO after the initial
allocation is [$300] or the Fixed Maturity Amount, if less.
3. MARKET VALUE ADJUSTMENT
The market value adjustment applicable upon withdrawal of the Fixed Maturity
Amount from an FMO that applies to the Participant is determined as follows:
(a) Equitable determines the Fixed Maturity Amount that will be payable
on the Expiration Date, using the Guaranteed Rate for such FMO.
(b) Equitable determines the period remaining in the FMO (based on the
Business Day Equitable receives the Participant's transaction
request at Equitable's Processing Office or effective date for such
determination) and converts it to fractional years based on a 365
day year. For example, three years and 12 days becomes 3.0329.
(c) Equitable determines the current Guaranteed Rate that applies to
new Contributions, for the same class of Certificates as the
Participants, under an FMO with the same Expiration Date as the
Participant's FMO plus a current rate percentage determined by
Equitable up to a maximum of 0.50%.
(d) Equitable determines the present value of the Fixed Maturity Amount
payable at the Expiration Date, using the period determined in item
(b) and the rate determined in item (c).
(e) Equitable subtracts the current Fixed Maturity Amount from the
result in (d). The result is the Market Value Adjustment, which may
be positive or negative, applicable to such FMO.
The market value adjustment (positive or negative) resulting from a
withdrawal or transfer of a portion of the Fixed Maturity Amount in a Fixed
Maturity Option will be a percentage of the market value adjustment that
would be applicable upon a withdrawal of the entire Fixed Maturity Amount
from a 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.
2003-GAC 403(B)
15
If Equitable is not offering an FMO to which the current "Guaranteed Rate"
would apply, Equitable will use the rate at the closest Expiration Date. If
Equitable is no longer offering new FMOs, Equitable 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 FMO on the date the
Contribution was made to such FMO and the rate for the denominator will be
the Moody's rate for the remaining duration on the date the withdrawal is
made. If such Moody's rate is not available, a rate based on a substantially
similar average will be used.
Equitable will report the values of the FMO in the reports sent out as
described in Section 10.08 "Reports and Notices". Such report will include
the Fixed Maturity Amount, MVA and Annuity Account Value in the FMO.
2003-GAC 403(B)
16
PART III - CONTRIBUTIONS AND ALLOCATIONS
SECTION 3.01-CONTRIBUTIONS
The Employer will remit all Contributions with respect to the Plan, unless
Xxxxxxxxx agrees otherwise in writing or unless such remittance is to cease
pursuant to the terms of this Contract. Equitable has the right to require a
minimum aggregate amount of Contributions on an annual basis as specified in the
Application.
Equitable reserves the right to limit Contributions to the Guaranteed Interest
Option to a percentage of each Contribution we accept as indicated in the
Application.
The Employer must tell Equitable the Source of each Contribution. If the
Employer fails to do so, Equitable reserves the right to hold the unidentified
funds in a suspense account pending Employer instructions.
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 Equitable and the Employer. The Employer must report any
forfeiture to Equitable as described in Section 8.02 on "Forfeitures/Forfeiture
Account".
The Employer or Participant may, with Equitable's agreement, transfer to the
Contract any amount held under a contract or account 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 Equitable the portion,
if any, of the Transferred Funds that are (a) exempt from the payment
restrictions described in Section 5.01 "Restrictions on Withdrawals,
Distributions, and Annuity Benefits"; (b) subject to forfeiture under the Plan
and (c) eligible for delayed distribution under Section 5.01C "Required Minimum
Distributions". If the Employer or Participant does not tell Equitable, then
Equitable 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 Equitable will be reduced by the amount of any applicable
tax charge as determined by Equitable. See Section 9.08 "Applicable Tax
Charges".
Contributions to the Contract for each Participant are limited to the Sources of
Contributions defined in Section 1.34 of this Contract. These 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
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).
If Equitable is notified that any Contributions would cause this Contract not to
qualify under Section 403(b) of the Code, Equitable reserves 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 the Participant's Beneficiaries.
SECTION 3.02-ALLOCATIONS
Each Contribution (less any applicable tax charge in accordance with Section
9.08 on "Applicable Tax Charges") is allocated among Investment Options in
accordance with the instructions submitted in a form acceptable to Equitable by
the Employer or Participant.
2003-GAC 403(B)
17
PART IV - TRANSFERS AMONG INVESTMENT OPTIONS
SECTION 4.01-TRANSFER REQUESTS
The Participant unless otherwise instructed by the Employer may upon written
request transfer a minimum amount of [$300], pursuant to the terms of the Plan,
all or part of the amount held in an Investment Option to one or more of the
other Investment Options. Transfer requests must be in writing, in a form
Equitable accepts, and delivered by U.S. mail to Equitable's Processing Office
unless Xxxxxxxxx agrees to receive transfer requests in another manner. The
request will specify the Source(s) of Contributions, if applicable, as described
in Section 1.34 on "Sources of Contributions" to which the transfer applies. All
transfers will be made on the Transaction Date and will be subject to the terms
in Section 4.02 "Transfer Rules" and to Equitable's rules in effect at the time
of transfer. With respect to a Separate Account, the transfers will be made at
the Accumulation Unit Value next computed for that Transaction Date.
Equitable and the Employer may agree to permit transfers to other funding
vehicles outside of the Contract. The Employer may thereupon request Equitable
to withdraw amounts from the Annuity Account Value to enable Participants to
make such transfers. Such transfers are subject to Equitable's consent and will
not be treated as a withdrawal.
SECTION 4.02-TRANSFER RULES
The maximum amount that the Participant may transfer from the Guaranteed
Interest Option to a Variable Investment Option or to a FMO in any Participation
Year is subject to Section 2.30 (c).
Transfers and Withdrawals (other than those described in Section 9.01) in the
aggregate from the GIO may not exceed the GIO Cumulative Total in a
Participation Year, as described in Section 2.03 (c).
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 for
its employees) 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 stated in the
Application, but applied to the amount initially allocated to the Guaranteed
Interest Option on each Participant's behalf.
Equitable reserves the right to:
(a) not permit transfers into the Guaranteed Interest Option in the first
Participation Year,
(b) thereafter, not permit transfers to the Guaranteed Interest Option if the
requested transfer would result in a total amount in the Guaranteed
Interest Option that is more than a percentage of the amount in the Annuity
Account Value as of the preceding Business Day. The percentage referred to
in this subsection (b) is stated in the Application.
Equitable also reserves the right to:
(a) defer transfers for up to six months, as described in Section 10.03
"Deferment",
(b) revise its transfer rules
(c) charge for any transfer after the first four such transfers are made on
behalf of a Participant in any Participation Year.
2003-GAC 403(B)
18
Any action taken pursuant to subsection (b) or (c) above will be made by
Equitable upon advance notice to the Employer.
The transfer rules described in this Section will apply separately with respect
to each Participant. That is, the maximum percentage that may be transferred
from the Guaranteed Interest Option applies to the amount held in such
Guaranteed Interest Option with respect to the Participant.
Transfer requests must be in writing and delivered by U.S. mail to Equitable's
Processing Office unless Equitable accepts an alternative form of communication
(such as internet or automated telephone). The use of alternative forms of
communication is subject to Equitable's rules then in effect for each such
service. Equitable may provide information about Equitable's rules and the use
of communication services in the contract prospectus, prospectus supplements or
other notifications, as mailed to your last known address in Equitable's records
from time to time. Any alternative form of communication that Equitable makes
available may be changed or discontinued at any time. Communication services may
be restricted or denied if Equitable determines that you used such services for
market timing or other trading strategies that may disrupt operation of an
Investment Option or have a detrimental effect on the unit value of any
Investment Option.
Equitable reserves the right to:
(1) limit transfers among or to the 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 Investment Options;
(3) reject transfer requests from a person acting on behalf of multiple
certificate owners pursuant to a trading authorization agreement that
Equitable has accepted; and
(4) impose conditions or limitations on transfer rights, restrict
transfers or refuse any particular transfer if Equitable is concerned
that market timing, excessive trading or other trading strategies may
disrupt operation of an Investment Option or may have a detrimental
effect on the unit value of any Investment Option or determine that
you have engaged in any such strategy.
2003-GAC 403(B)
19
PART V - WITHDRAWALS, DISTRIBUTIONS, DEATH BENEFITS, AND DISCONTINUANCE
SECTION 5.01-RESTRICTIONS ON WITHDRAWALS, DISTRIBUTIONS AND ANNUITY BENEFITS:
Payments of Cash Value pursuant to Section 5.01A "Withdrawals", or Section 5.04
"Discontinuance of Contributions Under this Contract", as well as Part VII
"Annuity Benefits" are subject to the "Restrictions on Distributions under the
Code" described in this Section. Any distributions or payments under 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 sourced 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, has a severance from employment 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, Equitable
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 Equitable.
(d) Other Restrictions on Distributions
Equitable reserves the right to limit transfers of Cash Value, up to
the amount of any Loan Reserve Account, to another 403(b) arrangement
while the Participant has an outstanding loan as described in Part VI
"Plan Loans".
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 , Equitable will treat such directly
transferred Contributions as Restricted Amounts.
2003-GAC 403(B)
20
SECTION 5.01A-WITHDRAWALS
All withdrawal requests will require the Employer's written authorization in a
form acceptable to Equitable, 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 Section 5.01.
Following receipt of the Participant's written notice, Equitable will pay to the
Participant or if requested, transfer to another contract or custodial
arrangement that meets the requirements of Section 403(b)(1) or Section
403(b)(7) of the Code or directly rollover to another eligible retirement plan
or arrangement as permitted by applicable law, by any of the following sections
of the Code: 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403(b)(10), 408(d)(3) and
457(e)(16), the lesser of the Cash Value, less any funds restricted in
accordance with Section 5.01. This amount paid, transferred or directly rolled
over, plus any applicable withdrawal charge in accordance with Part IX Section
9.01 "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.
Equitable may decline to accept a request for a withdrawal of less than [$300],
or where the withdrawal would violate the provisions of this section. If a
withdrawal made under this section would result in an Annuity Account Value of
less than [$500], Equitable will inform the Participant and reserves the right
to terminate participation under this Contract in accordance with Section 5.04.
Prior to making any payment, Equitable may request from the Employer such
information which may include a certification as Equitable 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 and is not being made in order to avoid the effect of Section 5.04
"Discontinuance of Contributions". If Equitable determines that the pattern of
certain withdrawals previously made has the effect of a full or partial
termination or discontinuance of Contributions under this Contract, then
Equitable has the right to deem that a discontinuance of Contributions has
occurred and apply the terms of Section 5.04 "Discontinuance of Contributions".
Equitable will pay any amount payable under this subsection as the Employer
directs in writing and such payment will fully discharge Equitable from all
liability with respect to the amount paid.
If the Contract is terminated or Contributions are discontinued and the
Participant elects to maintain the Certificate, Equitable may rely solely on the
instructions provided by the Participant.
2003-GAC 403(B)
21
SECTION 5.01B-DIRECT ROLLOVER OPTION
Unless otherwise instructed by the Employer on the Application, any request for
a direct rollover by the Participant must be made through the Employer.
The Participant or Beneficiary (or a Beneficiary who is the Participant's
surviving spouse as described in Section 5.03 "Beneficiary") may elect to have
all or any portion of the Cash Value (or the Death Benefit) 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 direct rollover is permitted by any of the following sections of the
Code: 402(c), 402(e)(6), 403(a)(4), 403(b)(8), 403 (b)(10), 408(d)(3) and
457(e)(16).
(b) The recipient of the distribution must be an eligible retirement plan
maintained for the Participant's benefit (or for the Participant's spousal
Beneficiary).
(c) Effective January 1, 2002, 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.
(d) The direct rollover option is not available to the extent that a minimum
distribution is required under Section 401(a)(9) of the Code. Equitable
reserves 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.
(e) The direct rollover option is not available for a hardship distribution
within the meaning of Section 402(c)(4)(C) of the Code.
SECTION 5.01C-REQUIRED MINIMUM DISTRIBUTIONS
Notwithstanding anything in the 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 under this Contract conflict with
the Code, the Code requirements prevail.
Section 5.01C. A describes the Required Minimum Distribution payments to be made
during the Participant's lifetime. Section 5.01C. B. describes the Required
Minimum Distribution payments to be made after the Participant's death, if the
Participant dies before the entire interest in this 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 entire interest in this Contract, all as subject to these rules.
If the Participant chooses annual withdrawals, the annual Required Minimum
Distribution payments calculated for this Contract may be made from this
Contract 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 this Contract, we will assume that the
Participant is taking them from another 403(b) arrangement.
A. REQUIRED MINIMUM DISTRIBUTION RULES
1. PAYMENTS DURING THE PARTICIPANT'S LIFE
2003-GAC 403(B)
22
Except as otherwise noted in Section 5.01C the Participant's entire interest in
this Contract will be distributed, or begin to be distributed, no later than the
Participant's Required Beginning Date. For purposes of this Section 5.01C the
Participant's Required Beginning Date is April 1 of the calendar year following
the later of : (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 this Contract was purchased with a direct transfer of funds from another
403(b) arrangement and the Participant informs us at purchase as provided in
Section 3.01 of this fact and the amount, if any of the amounts transferred were
accrued as of December 31, 1986, payments of the amount of the Participant's
December 31, 1986 account balance transferred to this Contract must begin by age
75.
The 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 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
named beneficiary. Payments must be made as required by the Required Minimum
Distribution rules, including "incidental death benefit" rules.
2. MANNER OF PAYMENT
The Participant may satisfy the Required Minimum Distribution rules by applying
any portion of the Participant's entire interest under this 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 in this 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 in 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 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 in 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 respective attained
ages of the Participant and spouse of the respective birthdays of the
Participant and spouse 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 Contract on an irrevocable basis, the
Participant's entire interest under the Contract as of any valuation date
includes the 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.
2003-GAC 403(B)
23
B. REQUIRED MINIMUM DISTRIBUTION RULES - PAYMENTS AFTER 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 will
continue to be distributed at least as rapidly as under the Annuity Benefit
or other option chosen under the Contract.
(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 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 the year of the
Participant's death. In the alternative, the beneficiary may
elect to take distribution of the Participant's entire interest
in accordance with paragraph (b)(3) below.
(2) If the Participant's sole Beneficiary is the Participant's
surviving spouse, the Participant's entire interest 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 in accordance
with 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 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 entire interest in accordance with 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 Contract.
(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 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 Subsection B reduced by 1 for
each subsequent year.
(c) For purposes of paragraphs (a) and (b) of this Subsection B above, Required
Minimum Distributions are considered to commence on the Participant's
Required Beginning Date defined above in Subsection A or, if applicable, on
the date distributions are required to begin to the surviving spouse
2003-GAC 403(B)
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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 in this 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 in 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
Subsection 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 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 5.02-DEATH BENEFIT
Upon receipt by Equitable of due proof of death of the Participant, and any
instructions and required forms to effect the payment, Equitable will pay to the
Beneficiary the amount of the death benefit. The death benefit is equal to the
greater of (i) the Annuity Account Value less any outstanding loan 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
outstanding loan balance. Any withdrawal will reduce the minimum death benefit
(as adjusted by any previous withdrawal) by an amount that is in the same
proportion to such minimum death benefit as the amount that was withdrawn is to
the Annuity Account Value. 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 Section 8.02 "Forfeitures/Forfeiture Account".
Equitable will pay the death benefit elected by the Beneficiary and reported by
the Employer subject to the rules then in effect and the requirements of law:
(a) to receive the death benefit in a single sum;
(b) to apply the death benefit to the purchase of an Annuity Benefit in a form
then offered by Equitable;
(c) to apply the death benefit to provide any other form of benefit then
offered by Equitable.
2003-GAC 403(B)
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SECTION 5.02A-BENEFICIARY CONTINUATION OPTION
The Death Benefit under Section 5.02 of the Contract ends upon the election of
the Beneficiary Continuation Option.
Except as otherwise provided in this section, this section will apply only if
the Participant dies before the Annuity Commencement Date, and the beneficiary
named in Section 5.03 of this Contract is an individual.
If there is more than one beneficiary, and any beneficiary is not an individual,
then this section does not apply to that beneficiary and the non-individual
beneficiary's share of the Death Benefit described in Section 5.02 of the
Contract is payable to the non-individual beneficiary.
If this section applies and there is more than one beneficiary, the Annuity
Account Value will be apportioned among the Participant's beneficiaries as the
Participant designates pursuant to Section 5.03 of this Contract.
One or more individual beneficiaries may continue the Participant's Certificate.
In order to continue the Certificate under the terms set forth under (a) through
(h) below, Equitable must receive that beneficiary's election within 9 months
after the Participant's death and before the beneficiary's share of the Death
Benefit is paid out in any manner inconsistent with that beneficiary's election
to continue the Certificate.
Each individual beneficiary electing to continue the Certificate will be a
"Continuation Beneficiary" described in item c. below with respect to that
beneficiary's portion of the Annuity Account Value. For any beneficiary who does
not timely elect to be a Continuation Beneficiary, Equitable will pay that
beneficiary's share of the Death Benefit pursuant to Section 5.02 of the
Certificate in a lump sum.
The terms of the Beneficiary Continuation Option are as follows:
a. The Certificate cannot be assigned and must continue in the
Participant's name for benefit of the Participant's Continuation
Beneficiary.
b. As of the date Equitable receives satisfactory proof of the
Participant's death along with all the written documentation necessary
to make a claim under the Certificate, Equitable will then compare the
Annuity Account Value and the death benefit pursuant to sections 5.02
of this Contract as of this date (the reset date). If the Annuity
Account Value is less than the applicable death benefit, Equitable will
reset the Annuity Account Value to equal such death benefit.
c. If there are multiple beneficiaries the reset date will be the date on
which Equitable receives the documentation as described in subparagraph
(b). Any beneficiary subsequently electing a Death Benefit will receive
the applicable payment amount. The Death Benefit provision ends upon
the election of the Beneficiary Continuation Option.
d. The Continuation Beneficiary may transfer amounts among the Investment
Options.
e. No additional Contributions may be made to the Certificate.
f. Distributions to the Continuation Beneficiary will be made in
accordance with requirements for payments after the Participant's death
in accordance with the required minimum distribution rules of the Code.
If there is more than one Continuation Beneficiary, payments to each
will be based on the individual life expectancy of each Continuation
Beneficiary.
g. The Continuation Beneficiary may withdraw the Annuity Account Value
apportioned to such Continuation Beneficiary at any time; withdrawals
made after Equitable has received
2003-GAC 403(B)
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a Continuation Beneficiary's election to continue the Certificate are
not subject to a withdrawal charge.
h. Upon the Continuation Beneficiary's death, Equitable will make a lump
sum payment of any remaining Annuity Account Value apportioned to that
Continuation Beneficiary to the person designated by the deceased
Continuation Beneficiary to receive any such payment, unless the person
designated by the deceased Continuation Beneficiary elects to continue
the payment method originally elected by the Continuation Beneficiary.
A trust with only individual beneficiaries may continue the Certificate after
the Participant's death if:
1. the trust is the sole beneficiary;
2. all of the beneficiaries of the trust are individuals;
3. the trust qualifies as a designated beneficiary for purposes of the
required minimum distribution rules of the Code; and
4. the trust provides Equitable the documentation that it requires within
the required time period.
In the event that such a qualifying trust elects to continue the Certificate,
the oldest trust beneficiary is the Continuation Beneficiary and the individual
whose life expectancy is used to measure payments required after the
Participant's death.
SECTION 5.03-BENEFICIARY
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.
The Participant may change the Beneficiary from time to time during the
Participant's lifetime and while coverage under this Contract is in force. Any
such change must be made in writing in a form acceptable to Equitable. 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. Equitable
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 Section 5.02 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 Participant's children who survive the Participant, in equal shares, or, if
there are no surviving children, then to the Participant's estate.
If the Participant so elects in writing, any amount that would otherwise be
payable to a Beneficiary in a single sum may be applied to provide an Annuity
Benefit. Subject to Equitable's rules then in effect such election may be
changed during the Participant's lifetime and while this Contract is in force.
Any such change must be made in writing in a form acceptable to Equitable. 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, Xxxxxxxxx will pay the death
benefit in a single sum.
SECTION 5.04-DISCONTINUANCE OF CONTRIBUTIONS
Contributions under the Contract will continue with respect to the Plan subject
to an election made by either the Employer to discontinue Contributions or
Equitable not to accept contributions (which in either case will constitute a
"Discontinuance of Contributions").
If Contributions have been discontinued, payments will be made in accordance
with Section 5.01A.
If the Employer terminates this Contract or Contributions are discontinued under
the Contract, the Participant may elect to maintain the Certificate as a "frozen
Certificate" which means that no additional Contributions can be made and
Equitable shall rely on the instructions provided by the Participant without
regard to the direction of the Employer. All other rights described in the
Certificate will remain
2003-GAC 403(B)
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in effect. Xxxxxxx maintained in a "frozen Certificate" will continue to be
subject to withdrawal charges, if applicable, based on the Employer's original
Contract Date or the Participant's Participation Date.
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If the Participant has severed from employment, his/her participation under this
Contract will terminate if,
(1) The Employer, subject to the approval of the Participant and the
requirements of Section 5.01A, directs Equitable to pay out the
Participant's Cash Value under the Certificate; or
(2) The Participant elects to continue the coverage by converting the
Certificate into an Equitable individual 403(b) contract.
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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. If the Plan contains a vesting schedule for Employer
Contributions any Participant loan request will require the Employer's approval.
A Plan loan will be available only from the vested portion of the Participant's
Annuity Account Value as reported to Equitable by the Employer.
Equitable reserves 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 Equitable specifies and after the Loan Request
Form is approved by Equitable.
Only [one] outstanding loan is permitted at a time for each Participant.
A. LOAN AMOUNT:
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].
As a condition for making a loan, Equitable will require the Participant to
state that the loan amount requested 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.
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.
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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 Section 7.05 "Commencement of Annuity Benefits", (2)
the date of termination pursuant to Section 5.04 "Discontinuance of
Contributions" or, (3) the date Equitable pays a death benefit pursuant to
Section 5.02.
C. LOAN RESERVE ACCOUNT:
On the date the loan is effective, Equitable 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
Equitable in accordance with its then current procedures. Such rate shall
not be greater than permitted under any current applicable state or federal
law.
D. LOAN INTEREST RATE:
Equitable will from time to time set the effective annual rate at which
interest on a loan will accrue daily (the "loan interest rate");however, if
a different rate is requested by the Employer, Equitable will substitute the
rate subject to any limitations imposed by law. Such rate will not be
greater than any maximum rate required under any current applicable state or
federal law.
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. Any payments will first be applied by Equitable 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 and may be withdrawn (if otherwise
permitted), transferred to another Variable Investment Option, or applied to
an annuity as described in Part VII "Annuity Benefits".
F. DEFAULT:
By each due date (or a specified date thereafter in accordance with
Equitable's then current procedures) if the amount of the loan payment is
less than the amount due or the loan payment is not received at Equitable's
Processing Office, Equitable will treat the loan as being in default.
Equitable reserves the right, however, to change its procedures at any time
(subject to the terms of the Code and applicable regulations). Equitable
also reserves the right to deduct any Withdrawal Charges that may apply and
any required tax withholding.
2003-GAC 403(B)
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If the amount in the Loan Reserve Account is subject to the restrictions
described in Section 5.01 "Restrictions on Withdrawals, Distributions and
Annuity Benefits", on default Equitable will designate in the Loan Reserve
Account an amount equal to the total unpaid loan balance (interest and
principal payments due) at the time of the default until such time the
amount is not subject to the restrictions of Section 5.01. If the amount in
the Loan Reserve Account is not subject to Section 5.01 "Restrictions on
Withdrawals, Distributions and Annuity Benefits, Equitable will have the
right to foreclose on this amount, and deduct any Withdrawal Charges that
may apply 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 attains age 59 1/2 or Equitable is notified in writing that
another event has occurred which would permit Restricted Amounts to be paid.
(Such an event includes severance from employment, disability or death.)
G. CHANGES:
Equitable has the right to change the loan terms, as long as any such change
is made to maintain compliance with the terms of any law or applicable
regulations that apply to this Contract.
2003-GAC 403(B)
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PART VII ANNUITY BENEFITS
SECTION 7.01A-FORMS OF DISTRIBUTION
An Employer may elect on behalf of a Participant or the Participant may elect,
as applicable, (i) a single sum distribution, (ii) an Annuity Benefit, or (iii)
any other form of payment of the Cash Value offered by Equitable, subject to the
terms of the Plan.
SECTION 7.01B-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 [$5,000]. If the Annuity Benefit
election is made by the Employer on behalf of the Participant then the Employer
will report to Equitable 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 Equitable and will include all pertinent facts and
determinations requested by Equitable. Equitable will rely on the reports and
other information furnished by the Employer and will not inquire as to the
accuracy or completeness thereof.
SECTION 7.02-ANNUITY BENEFIT FORMS
The "Normal Form" of Annuity Benefit is an Annuity Benefit payable on the
Life-Period Certain Annuity Form described below, unless another form is to
apply pursuant to the terms of the Plan or any other law that applies. Equitable
may offer other annuity forms available from Equitable or from one of
Equitable's 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.
SECTION 7.03-AMOUNT OF ANNUITY BENEFITS
If the Employer or Participant elects to have an Annuity Benefit paid 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 Section 9.08 "Applicable Tax Charges", that apply
on annuity purchase payments. If Equitable has previously deducted charges for
applicable taxes from Contributions, Equitable 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) Equitable's then current individual annuity
rates, whichever rates would provide a larger benefit with respect to the payee,
or (3) any Equitable single consideration immediate annuity contract offered at
the time to the same class of Participants.
SECTION 7.04-ANNUITY BENEFIT
Payments under an Annuity Benefit will be made monthly. An election may be made
by the Participant pursuant to the requirements, if any, of the Plan and the
concurrence of the Employer to have the Annuity Benefit paid at other intervals,
such as every three months, six months, or twelve months,
2003-GAC 403(B)
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instead of monthly, subject to Equitable's rules at the time of election. This
election may be made at the time the Annuity Benefit form as described in
Section 7.02 "Annuity Benefit Forms" is elected. In that event, all references
in this Contract to monthly payments will, with respect to the Annuity Benefit
of such a Participant to whom the election applies be deemed to mean payments at
the frequency elected.
ANNUITY UNIT - is a unit used in determining amounts payable from an Investment
Fund of a separate account under a Variable Annuity Benefit.
ANNUITY UNIT VALUE - The Annuity Unit Value for the Certificates is fixed at
$1.00 on each Investment Fund's respective effective date for Certificates with
"Assumed Base Rates of Net Investment Return" of 5% a year. For each Valuation
Period (see Section 2.05) after that date, it is the Annuity Unit Value for the
immediately preceding Valuation Period multiplied by the "Adjusted Net
Investment Factor" under the Certificate. The Adjusted Net Investment Factor for
a Valuation Period is the Net Investment Factor for such period reduced for each
calendar day in such subsequent Valuation Period by the Net Investment Factor
times .00013366 for the Assumed Base Rate of Net Investment Return is 5% a year.
AVERAGE ANNUITY UNIT VALUE - for a calendar month, it is equal to the average of
the Annuity Unit Values for all Valuation Periods ending in such month.
FIXED ANNUITY BENEFIT - is an Annuity Benefit under which the monthly payments
are payable in a specified dollar amount. The amount of each monthly payment
provided under the terms of this Contract is the amount provided pursuant to
Section 7.03.
2003-GAC 403(B)
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VARIABLE ANNUITY BENEFIT - is an Annuity Benefit under which the dollar amount
of the monthly payments may increase or decrease depending on the investment
experience of an Investment Fund of the Separate Account or other separate
accounts that we offer. Variable Annuity Benefits may not be available in all
annuity forms that we offer.
SECTION 7.05-COMMENCEMENT OF ANNUITY BENEFITS
At or prior to the Annuity Commencement Date or age 70 1/2 the Equitable 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 as described in Section
5.01C unless the Employer informs Equitable 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 Equitable at its Processing Office.
No Annuity Commencement Date will, however, be later than the first day of the
month which 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 is specified in the Certificate. This age may be changed by
Equitable in conformance with applicable law.
SECTION 7.06-CONDITIONS
Equitable may require proof acceptable to it that the person on whose life a
benefit payment is based is alive when each payment is due. Equitable 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 will 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
Equitable will be charged against future payments. Underpayments will be added
to future payments. Equitable's 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 Equitable will be charged or credited with
interest at (a) the rate shown in the Application or (b) the then current
Guaranteed Interest Rate; Equitable 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 Equitable receives proof satisfactory to it 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, Equitable may make the payments to such other person or
institution. In the case of a minor, the payments will not exceed [$200].
Equitable will have no further liability with respect to the payments so made.
If the amount to be applied hereunder is less than [$5,000] or would result in
an initial payment of less than [$20], Equitable may pay the amount to the payee
in a single sum instead of applying it under the annuity form elected.
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SECTION 7.07-CHANGES
Equitable reserves 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.
2003-GAC 403(B)
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PART VIII - ALLOCATED ACCOUNTS; FORFEITURE ACCOUNT
SECTION 8.01-PARTICIPANT ACCOUNTS
Under this Contract Equitable will maintain Participant level accounts as
described in Section 3.02 "Allocations". The Employer will specify the
Participant with respect to whom each Contribution is being remitted, the Source
of Contribution and the allocation by Source of Contribution among the
Investment Options. In addition, the Employer will specify the amount subject to
forfeiture. The terms in Section 2.03 "Guaranteed Interest Option-Conditions",
Section 2.05 "Variable Separate Account/Accumulation Units and Unit Values" and
Section 2.07 "Fixed Maturity Option" will apply separately with respect to each
Participant's Annuity Account Value. An Employer's request to withdraw the
vested portion of the Annuity Account Value from a Participant's account is
subject to Equitable's receipt of the Participant's written consent.
Subject to the terms of the Plan and the restrictions on distributions stated in
Section 5.01, Equitable reserves the right to 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 this Contract, (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
Participant's Annuity Account Value falling below [$500].
SECTION 8.02-FORFEITURES/FORFEITURE ACCOUNT
Amounts in this Contract that are attributable to the Sources of Contributions
described in Section 1.34(b )-(f) are nonforfeitable. All or a portion of
amounts attributable to Employer Contributions in Section 1.34(a) or Direct
transfer for Contributions in Section 1.34(g) may be subject to forfeiture under
the Plan.
The Employer will inform Equitable if a Participant's Annuity Account Value is
to be reduced as a result of a forfeiture pursuant to the terms of the Plan.
Equitable will then reduce the Annuity Account Value by the amount so reported.
The amount of such reduction will be withdrawn, without a Withdrawal Charge
which might otherwise apply as described in Section 9.01 "Withdrawal Charges",
and held in the forfeiture account. Such amount may be withdrawn and paid
directly to the Employer or Contractholder. Notwithstanding the preceding
sentence, if the Employer makes a withdrawal to transfer funds to another
provider, the withdrawal will be subject to a Withdrawal Charge, if applicable.
Equitable also reserves 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 GIO. Amounts in the forfeiture account will be reallocated on
an annual basis to the remaining Participants as reported in writing to
Equitable by the Employer. Equitable will reallocate these amounts in accordance
to the Participant's investment allocations on record. Unless otherwise directed
by the Employer, such reallocation will be made as soon as practicable after
receipt by Equitable of directions from the Employer.
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PART IX - CHARGES
SECTION 9.01-WITHDRAWAL CHARGES
Payment made under Part V "Withdrawals, Distributions, Death Benefits and
Termination" may be subject to a Withdrawal Charge as specified in the
Application.
The GIO Cumulative Total as described in Section 2.03 (c) does not apply to the
following distributable events:
(1) [the Participant xxxxxx from service;
(2) the Participant reaches age 55 and retires;
(3) the withdrawal is made to satisfy minimum distribution requirements;
(4) the Participant elects a withdrawal that qualifies as a hardship withdrawal
under the Code;
(5) the Participant dies and a death benefit is payable to the Beneficiary;
(6) the withdrawal is made to provide an annuity requested by the Employer;
(7) the Participant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration or the Participant is
totally disabled. Total disability is the incapacity of the Participant,
resulting from injury or disease, to engage in any occupation for
remuneration or profit. Such total disability must be certified as having
been continuous for a period of at least six months prior to notice of claim
and the Participant must continue to be deemed totally disabled.
Written notice of claim must be given to Equitable during the lifetime of
the Participant and during the period of total disability prior to each
withdrawal. Along with the notice of claim, the Participant must submit
acceptable proof of disability. Such proof of disability must be either (a)
evidence of Social Security disability determination or (b) a statement from
an independent U.S. licensed physician stating that the Participant meets
the definition of total disability as stated above. Such certification must
be resubmitted every 12 months. Failure to furnish proof of disability
within the required time will not reduce any claim if it was not reasonably
possible to give proof within such time. Provided such proof is furnished as
soon as reasonably possible and in no event, except in the absence of legal
capacity, later than one year from the time proof is otherwise required.
(8) Equitable receives proof satisfactory to us that the Participant's life
expectancy is six months or less (such proof must include, but is not
limited to, certification by a licensed physician);
(9) the Participant has been confined to a nursing home for more than 90 days
(or such other period, as required in your state) as verified by a licensed
physician. A nursing home for this purpose means one that is (a) approved by
Medicare as a provider of skilled nursing care service, or (b) licensed as a
skilled nursing home by the state or territory in which it is located (it
must be within the United States, Puerto Rico, U.S. Virgin Islands, or Guam)
and meets all of the following:
- its main function is to provide skilled, intermediate, or custodial
nursing care;
- it provides continuous room and board to three or more persons;
- it is supervised by a registered nurse or licensed practical nurse;
- it keeps daily medical records of each patient;
- it controls and records all medications dispensed; and its primary
service is other than to provide housing for residents].
The withdrawal charge will apply if the condition as described above in
items 7 through 9 above existed at the time the Certificate was issued or
if the condition began within the 12 month period following the issuance
of the Certificate.
Equitable reserves the right to reduce or waive the Withdrawal Charge.
2003-GAC 403(B)
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SECTION 9.02-THIRD PARTY TRANSFERS
Equitable has the right to deduct a charge, as stated on the application, 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. Equitable
reserves the right to change the amount of this charge up to a maximum of $65.
Any such Third Party Transfer charge is subject to the limitations specified in
section 2.03 (c).
SECTION 9.03-CHARGES DEDUCTED FROM ANNUITY ACCOUNT VALUE
If the Participant has elected any optional benefits that may be available a
charge may be assessed.
SECTION 9.04-TRANSFER AND LOAN CHARGES
Equitable reserves 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 Section 4.02 "Transfer Rules" )
The amount of the charge will be set forth in the Application.
SECTION 9.05-VARIABLE SEPARATE ACCOUNT CHARGE
Assets of the Variable Separate Account will be subject to a daily asset charge
as specified in the Application. The maximum annual charge will not exceed
[2.00%] of the assets of the Separate Accounts.
SECTION 9.06-PLAN RECORDKEEPING SERVICE CHARGES
If the Employer requests Equitable to provide Plan recordkeeping services and
Equitable agrees, the Employer will pay such charge directly to Equitable or in
the alternative the Employer may direct Equitable to deduct such charge from
Participant accounts. Such charges will be mutually agreed upon by the Equitable
and the Employer.
SECTION 9.07-ONGOING OPERATIONS CHARGE
Subject to Equitable's approval, the Employer may request Equitable to deduct
amounts from the Annuity Account Value to pay Plan operating expenses to a party
designated by the Employer in accordance with the terms of the Plan.
SECTION 9.08-APPLICABLE TAX CHARGES
Equitable reserves the right to deduct a charge that Equitable determines to
approximate certain taxes that may be imposed on Equitable, including but not
limited to premium taxes which may apply in the Participant's state of domicile.
The tax charge will be deducted from amounts applied to an Annuity Benefit in
accordance with Part VII Section 7.03 "Amount of Annuity Benefits". If the tax
is imposed at a time other than when amounts are applied to an Annuity Benefit,
Equitable reserves the right to deduct the charge from Contributions in Part III
"Contributions, and Allocations" or withdrawals in Section 5.01A "Withdrawals"
and Section 5.04 "Discontinuance of Contributions".
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SECTION 9.09-CHANGES
In addition to the right of Equitable to reduce or waive Charges as described in
this Part IX of the Contract, Equitable reserves 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 charges, if applicable and administrative or other
charges deducted from the Annuity Account Value. The application of any increase
is to be made on a prospective basis.
Equitable also reserves 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.
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PART X - GENERAL PROVISIONS
SECTION 10.01-CONTRACT
This Contract constitutes the entire contract between the parties and will
govern with respect to the rights and obligations of Equitable.
This Contract may not be modified, nor may any of Equitable's rights or
requirements be waived, except in writing and signed by an authorized officer of
Equitable. In addition to the rights of change reserved by Equitable 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.
Equitable is under no obligation under 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 the Retirement Equity Act of 1984.
Subject to Equitable's approval, the Employer may designate another person to
exercise rights under the Contract.
SECTION 10.02-STATUTORY COMPLIANCE
Equitable reserves 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 and Department of Labor regulations.
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 10.03-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 Equitable to
defer payment in order to protect persons with interests in the Separate
Account. Equitable may defer payment or transfer of any portion of the Annuity
Account Value in the Guaranteed Interest Option for up to six months while the
Participant is living.
SECTION 10.04-ASSIGNMENTS, TRANSFERABILITY
Neither Equitable nor the Employer may assign this Contract without the other
party's prior written consent, except that Equitable may assign the Contract to
an affiliate under common control with Equitable, provided that Equitable
remains liable for the failure of the assignee to perform all obligations under
the Contract.
Subject to the requirements of applicable law, no amount payable to a
Participant or Beneficiary under the Contract may be assigned, commuted or
encumbered by the payee and no such amount will in any
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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 Contract 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 Equitable.
The entire interest under the Contract is non-forfeitable except as otherwise
provided in Section 8.02 "Forfeitures/Forfeiture Account".
This Contract is not transferable within the meaning of Section 401 (g) of the
Code except by surrender to Equitable.
It is impossible, prior to the satisfaction of all liabilities with respect to
the Participants and 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 Beneficiaries.
SECTION 10.05-EMPLOYER'S RESPONSIBILITY
The Employer will have responsibility for the administration of the Plan,
Contributions, authorization of payments and other distributions hereunder.
Equitable will deal with the Employer in accordance with the terms and
conditions of this Contract. Equitable shall make no payment without written
consent from the Employer, and Equitable shall be fully discharged of any
liability therefore to the extent such payments are made pursuant to such
direction from the Employer or Participant.
SECTION 10.06-PLAN STATUS
All requests for third party transfers, ownership changes, elections, changes of
Xxxxxxx Commencement Date, withdrawals, loans, surrenders, Participant
terminations or death benefit payments may be made by the Participant unless the
Employer instructs otherwise.
SECTION 10.07-MANNER OF PAYMENT
Equitable will pay all amounts payable under this Contract by check (in United
States dollars) or, any other method agreed to by the Employer and Equitable.
All amounts payable by the Employer will be paid by check payable to Equitable
(in United States dollars) or by any other method acceptable to Equitable.
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SECTION 10.08-REPORTS AND NOTICES
With respect to each Participant, at least once each year until the Annuity
Commencement Date, Equitable 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 Option, the
Fixed Maturity Amount and Annuity Account Value.
The terms of this Contract which require Equitable to send a report or any
written notice will be satisfied by Equitable mailing any such report or notice
to the Employer or Participant's last known address as shown in Equitable's
records. Notifications of rules in effect and other matters of general
applicability to this contract may be included in the contract 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
Equitable and the Employer or Participant.
All written notices sent to Equitable will not be effective until received in
good order during a Business Day at the Processing Office.
SECTION 10.09-CONTRACT HOLDER'S RESPONSIBILITY
If the Contract Holder is the trustee of a trust established pursuant to a trust
agreement between Equitable and the said trustee and adopted by the Employer,
that the 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, Equitable 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
Equitable agree, without the consent of any other person.
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TABLE OF GUARANTEED ANNUITY PAYMENTS
Table of Rates Per Thousand on Life & Certain Annuities (Certain Period of
10 Years not to Exceed Life Expectancy)
RETIREMENT AGE UNISEX Certain Period
[65 4.15 10
66 4.24 10
67 4.33 10
68 4.42 10
69 4.53 10
70 4.63 10
71 4.74 10
72 4.86 10
73 4.98 10
74 5.11 10
75 5.24 10
76 5.37 10
77 5.52 10
78 5.66 10
79 5.81 10
80 6.04 9
81 6.21 9
82 6.49 8
83 6.68 8
84 7.00 7
85 7.23 7
86 7.45 7
87 7.86 6
88 8.12 6
89 8.59 5
90 8.88 5
91 9.17 5
92 9.46 5
93 10.06 4
94 10.38 4
95 10.72 4]
The amount of income provided under an Annuity Benefit payable on the Life
Annuity form with Ten Years Certain is based on 2.5% interest and the 1983
Individual Annuity Mortality Table "a" projected with modified Scale "G", where
the mortality improvements are adjusted to be not less than 1% for males and
1.25% for females and projected for (age minus 25) years.
Amounts required for ages or for annuity forms not shown in the above Table or
for other annuity forms will be calculated by us on the same actuarial basis.
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