Common use of Benefit Base Clause in Contracts

Benefit Base. Each Covered Fund has its own Benefit Base. Depending on the Covered Fund, the Benefit Base will be initially set at the Covered Fund Value on either the Business Day the GLWB is “triggered,” or upon the first Contribution allocated to the Covered Fund. For Covered Funds that are Great-West SecureFoundation Lifetime Funds, the “Trigger Date” is the first Business Day of the year 10 years before the “target date” of the Covered Fund (e.g., the Trigger Date for the Great‑West SecureFoundation Lifetime 2030 Fund is the first Business Day of January 2020). For all other Covered Funds, the Benefit Base initially is determined upon the first Contribution allocated to the Covered Fund, and will equal that amount. Because the GLWB is effective upon the initial Contribution to such other Covered Funds, there is no Trigger Date for such other Covered Funds. The Benefit Base cannot exceed the “Benefit Base Cap” listed on the Contract Data Page. Any value over the “Benefit Base Cap” listed on the Contract Data Page will be considered excess Covered Fund Value and will not be used to calculate GAWs or the Guarantee Benefit Fee (described in Section 13.01). The ▇▇▇ Owner may access any excess Covered Fund Value on a dollar for dollar basis without reducing the Benefit Base. However, if the Covered Fund Value falls below the “Benefit Base Cap” listed on the Contract Data Page based on Excess Withdrawals, the Benefit Base will adjust pursuant to the terms of the Contract.

Benefit Base. Each Covered Fund has its own Benefit Base. Depending on the Covered Fund, the Benefit Base will be initially set at the Covered Fund Value on either the Business Day the GLWB is “triggered,” or upon the first Contribution allocated to the Covered Fund. For Covered Funds that are Great-West SecureFoundation Lifetime Funds, the “Trigger Date” is the first Business Day of the year 10 years before the “target date” of the Covered Fund (e.g., the Trigger Date for the Great‑West SecureFoundation Lifetime 2030 Fund is the first Business Day of January 2020). For all other Covered Funds, the Benefit Base initially is determined upon the first Contribution allocated to the Covered Fund, and will equal that amount. Because the GLWB is effective upon the initial Contribution to such other Covered Funds, there is no Trigger Date for such other Covered Funds. The Benefit Base cannot exceed the “Benefit Base Cap” listed on the Contract Data Page. Any value over the “Benefit Base Cap” listed on the Contract Data Page will be considered excess Covered Fund Value and will not be used to calculate GAWs or the Guarantee Benefit Fee (described in Section 13.01). The ▇▇▇ IRA Owner may access any excess Covered Fund Value on a dollar for dollar basis without reducing the Benefit Base. However, if the Covered Fund Value falls below the “Benefit Base Cap” listed on the Contract Data Page based on Excess Withdrawals, the Benefit Base will adjust pursuant to the terms of the Contract.