SMALL ANNUITIES AND ACCOUNTS Clause Samples
The "Small Annuities and Accounts" clause defines how the plan or contract handles situations where the value of an annuity or account falls below a specified minimum threshold. Typically, this clause allows the provider to pay out the remaining balance in a lump sum or take other specified actions if the account is too small to justify ongoing administration. Its core function is to streamline the management of low-value accounts, reducing administrative costs and complexity for both the provider and the account holder.
SMALL ANNUITIES AND ACCOUNTS. If the total monthly amount of annuity which would otherwise be purchased on behalf of any person under this contract and the companion contracts is less than $50, Prudential may, in lieu of an annuity under this contract, make payment in a single sum. The single sum will be equal to the amount that would otherwise be applied to purchase an annuity as described in section 4.1. If no contributions have been made under this contract or any companion contract for a Participant for a period of 24 months and the dollar value of his Accounts under all the contracts is $1,000 or less, Prudential may cancel his Account under this contract. If the Account is cancelled, its dollar value will be paid to the Participant unless he directs payment to a named financial institution. The Annual Account Charge will be made only if no Account remains for him under a companion contract.
SMALL ANNUITIES AND ACCOUNTS. If the total monthly amount of annuity which would otherwise be purchased on behalf of any person under this contract and the companion contracts is less than $50, Prudential may, in lieu of an annuity under this contract, make payment in a single sum. The single sum will be equal to the amount that would otherwise be applied to purchase an annuity as described in section 4.3. GVA-1010 (as modified by Group Annuity Amendment Form GAA-7792) Serial 400 4.1-4.2 If no contributions have been made under this contract or any companion contract for a Participant for a period of 24 months and the dollar value of his Accounts under all the contracts is $1,000 or less, Prudential may cancel his Account under this contract. If the Account is cancelled, its dollar value will be paid to the Contract-Holder. The Annual Account Charge will be made only if no Account remains for him under a companion contract.