Transamerica Life Insurance and Annuity Company Home Office: 000 X. Xxxxx Xxxxxx
Xxxxxxxxx, XX 00000 A Stock Company
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About your certificate
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This certificate is a legal contract between you, the "owner", and Transamerica
Life Insurance and Annuity Company (referred to as "we", "us", and "our" in this
certificate). Please read it carefully.
This certifies that the owner of this certificate is participating under a group
annuity contract. As such, the owner will be entitled to certain benefits
provided under this certificate, subject to its provisions. This certificate
describes the owner's rights under the group annuity contract.
Right to Cancel The owner may cancel this certificate by returning it to: (a)
the agent or (b) Transamerica Life Insurance and Annuity Company, Annuity
Service Center, P.O. Box 31848, Charlotte, North Carolina 28231-1848, before
midnight of the tenth day after receipt of the certificate. The return of the
certificate will be effective as of the date the notice is received. We will
refund an amount equal to the sum of: (i) all purchase payments allocated to the
general account options less any withdrawals; and (ii) the variable accumulated
value of the certificate.
PAYMENTS AND VALUES PROVIDED UNDER THIS CERTIFICATE WHEN BASED ON THE INVESTMENT
PERFORMANCE OF THE VARIABLE ACCOUNT ARE VARIABLE AND ARE NOT GUARANTEED AS TO
DOLLAR AMOUNT. REFER TO PAGE 7 FOR ADDITIONAL INFORMATION ON THE VARIABLE
ACCOUNT.
TRANSAMERICA LIFE INSURANCE AND ANNUITY COMPANY
Xxxxxxxxx Xxxxxxx Xxxxx X. Xxxxxxx
PRESIDENT GENERAL COUNSEL AND SECRETARY
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Certificate of participation
issued in connection with
Group flexible premium deferred annuity contract form no. TGP-711-197
Variable and fixed dollar settlement options
Separate Account Investments
Non-participating - No annual dividends
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Information page
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Certificate Information Beneficiary Information
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Certificate Number: 7833432 Beneficiary: Xxxxxx X. Xxxxxxxx
Certificate Effective Date March 30, 1999 Date of Birth: October 5, 1939
Income Tax Status: Non-Qualified Beneficiary: N/A
Group Annuity Contract Number: 582331 Date of Birth: N/A
Initial Purchase Payment: $2,000.00 Additional Beneficiary(ies) On File: N
Annuity Date: November 17, 2036
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Owner Information Annuitant Information
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Owner: Xxxxxx X. Xxxxxxxx Annuitant: Xxxxxx X. Xxxxxxxx
Date of Birth: November 17, 1951 Date of Birth: November 17, 1951
Tax ID Number: ###-##-#### Tax ID Number: ###-##-####
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Joint Owner Information Joint Annuitant Information
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Joint Owner: None. Joint Annuitant: None.
Date of Birth: N/A Date of Birth: N/A
Tax ID Number: N/A Tax ID Number: N/A
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Allocation of Initial Purchase Payment
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General Account Options
Fixed Account 100.00%
Initial Interest Rate: 8.00% Total Allocation: 100%
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The data above reflects the information you provided us to issue this
certificate. If you wish to change/correct any information on this page or for
inquiries regarding coverage or customer service please call us immediately at
our service center.
SERVICE CENTER: Transamerica Life Insurance and Annuity Company
Annuity Service Center
P.O. Box 31848
Charlotte, North Carolina 28231-1848
0-000 000-0000
Information page (continued)
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ANNUAL CHARGES AND FEES
Charges and fees at the time we issued this
certificate are shown below.
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Mortality and Expense Risk Charge [1.20% of the assets in each variable sub-account]
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Administrative Expense Charge [0.15% of the assets in each variable sub-account]
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Transfer Fee $10 for each transfer over [twelve] in each certificate year
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-------------------------------------------------------------- [Currently None]
Systematic Withdrawal Fee
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[($30 or 2% of the account value if less)]
Account Fee (before the annuity date) [(We will waive if account value is over $50,000)]
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-------------------------------------------------------------- [$30]
Annuity Fee (after the annuity date)
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Living Benefits Rider Fee [If elected, 0.05% of the account value ]
[This fee will be deducted monthly]
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Additional Death Benefit Percentage [If elected, a maximum of 40% of the account value ]
Death Benefit Rider Charge [$850]
Rider Expiry Date [85 Years]
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CONTINGENT DEFERRED SALES LOAD
Number of Complete Years Contingent Deferred Sales Load
From Receipt of Purchase Payment as a Percentage of Purchase Payment
Less than 1 year................................................6%
1 year but less than 2 years....................................6%
2 years but less than 3 years...................................5%
3 years but less than 4 years...................................5%
4 years but less than 5 years...................................4%
5 years but less than 6 years...................................4%
6 years but less than 7 years...................................2%
7 or more years.................................................0%
Additional Information
Minimum Initial Purchase Payment: [$5,000]
[$2,000 for IRA's]
Additional Purchase Payment Minimum: [$1,000]
Maximum Total Purchase Payment(s): [$1,000,000]
Minimum Initial Variable Sub-account Allocation or Transfer: [$1,000]
Minimum Initial Fixed Account Allocation or Transfer: [$1,000]
Minimum for Each Guarantee Period Allocation or Transfer: [$1,000]
Maximum Transfer Percentage
from the Fixed Account: [10%]
Minimum Account Value: [$2,000]
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Table of Contents
PAGE
INFORMATION PAGE...............................................................2 & 2A
DEFINITIONS....
......................................................................................................
5
OWNER, ANNUITANT, BENEFICIARY...............................................................6
ESTABLISHING THIS CERTIFICATE...................................................................6
THE VARIABLE
ACCOUNT................................................................................... 7
THE GENERAL
ACCOUNT.....................................................................................8
TRANSFER
PROVISIONS.....................................................................................10
WITHDRAWAL PROVISIONS..............................................................................10
SETTLEMENT OPTION PROVISIONS ...............................................................12
SETTLEMENT OPTION PAYMENTS...................................................................13
DEATH BENEFIT PROVISIONS ...........................................................................14
CHARGES, FEES AND SERVICES .................................. ...................................15
GENERAL PROVISIONS
.......................................................................................16
APPENDIX - ANNUITY RATE TABLES..............................................................18
Definitions
TCG-311-197 Page 25 Account Value The sum of the variable accumulated value
and the general account options accumulated value.
Annuity Date
The date the annuitization phase of this certificate begins. The annuity date is
shown on the Information Page.
Cash Surrender Value
The amount we will pay to the owner if the certificate is surrendered on or
before the annuity date. The cash surrender value is equal to the account value;
less the account fee, if any; less any applicable interest adjustment,
contingent deferred sales load, or premium tax charges.
Certificate
This certificate describes your coverage and participation under the group
annuity contract.
Certificate Anniversary
The anniversary each year of the certificate effective date as shown on the
Information Page.
Certificate Year
The 12-month period starting on the certificate effective date and ending with
the day before the certificate anniversary, and each 12-month period thereafter.
Code
The Internal Revenue Code of 1986, as amended, and the rules and regulations
issued under it.
Fixed Account
An account which credits a rate of interest for a period of at least twelve
months for each allocation or transfer.
General Account
The assets of the Company that are not allocated to a separate account.
General Account Options Accumulated Value
The total dollar value of all amounts the owner allocates or transfers to any
general account option; plus interest credited; less any amounts withdrawn,
applicable fees and premium tax charges, and/or transfers out to the variable
account prior to the annuity date.
General Account Options
The fixed account and the guarantee period account offered by us in the general
account. The general account options selected by the owner are shown on the
Information Page.
Guarantee Period Account
An account which credits a guaranteed rate of interest for specified guarantee
period(s). There may be several guarantee period(s) offered under the guarantee
period account.
Guarantee Period
The number of years that a guaranteed rate of interest may be credited to a
guarantee period account.
Guaranteed Interest Rate
The annual effective rate of interest after daily compounding credited to a
guarantee period.
Portfolio
The investment portfolio underlying each variable sub-account in which we will
invest any amounts the owner allocates to that variable sub-account.
Status (Qualified and Non-Qualified)
The status shown on the Information Page. This certificate has a qualified
status if it is issued in connection with a retirement plan or program.
Valuation Day
Any day the New York Stock Exchange is open. To determine the value of an asset
on a day that is not a valuation day, we will use the value of that asset as of
the end of the next valuation day.
Valuation Period
The time interval between the closing (generally 4:00 p.m. Eastern Time) of the
New York Stock Exchange on consecutive valuation days.
Variable Account
The variable account (separate account VA-6) is a separate account established
and maintained by us for the investment of a portion of our assets.
Variable Accumulated Value
The total dollar value of all variable accumulation units under this certificate
prior to the annuity date.
Variable Accumulation Unit
A unit of measure used to determine the variable accumulated value before the
annuity date. The value of a variable accumulation unit varies with each
variable sub-account.
Variable Sub-accounts
One or more divisions of the variable account each of which invests solely in
shares of one of the portfolios. The variable sub-accounts selected by the owner
are shown on the Information Page.
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Owner, Annuitant, Beneficiary
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Owner (Joint Owners)
The person(s) named on the Information Page who, while living, controls all
rights and benefits under this certificate. If the owner is a trust that allows
a person(s) other than the trustee to exercise the ownership rights under this
certificate, such person(s) must be named annuitant(s) and will be treated as
the owner.
If joint owners are named, the joint owners share ownership in this certificate
equally with the right of survivorship. The right of survivorship means that if
a joint owner dies, his or her interest in the certificate will pass to the
surviving joint owner subject to the death benefit provisions.
The owner(s) is entitled to designate the annuitant, beneficiary or other payee,
settlement option, and annuity date. The owner must notify us at our service
center to make changes to these designations in a form and manner acceptable to
us.
Annuitant (Joint Annuitant)
The person(s) named on the Information Page whose age and sex is used to
determine the amount of settlement option payments on the annuity date. If a
joint annuitant is named, that joint annuitant must be the annuitant's spouse.
The joint annuitant will become the annuitant if the annuitant dies. If there is
no joint annuitant and the annuitant dies, an individual owner will become the
new annuitant until the owner names another annuitant.
If the owner is an individual, the annuitant(s) may be changed by the owner at
any time before the annuity date. Any such change will be subject to the then
current underwriting requirements. We reserve the right to reject any change of
the annuitant(s) which has been made without our prior written consent.
If the owner is not an individual, the annuitant(s) may not be changed.
Beneficiary
The person(s) named on the Information Page who is designated to receive the
amounts payable under this certificate if:
The owner dies before the annuity date and there is no joint owner; or
The owner dies after the annuity date and settlement option payments have
begun under a selected settlement option that guarantees payments for a
certain period of time.
The interest of any beneficiary who dies before the owner will terminate at time
of death of such beneficiary.
A beneficiary may be named or changed at any time. Any change made to an
irrevocable beneficiary must also include the written consent of the
beneficiary, except as otherwise required by law.
If more than one beneficiary is named, each named beneficiary will share equally
in any benefits or rights granted by this certificate unless the owner gives us
other instructions at the time the beneficiaries are named.
Establishing this Certificate
This certificate was established on the certificate effective date
shown on the Information Page.
Any time before the annuity date the owner may make additional purchase payments
to this certificate. We reserve the right to not accept additional purchase
payments beyond certain attained ages of the owner or annuitant.
The owner may allocate purchase payments to one or more of the variable
sub-accounts or general account options we offer at the time we receive a
purchase payment. We reserve the right to limit the total number of investment
options that may be chosen over the lifetime of the certificate.
All purchase payments are subject to the conditions listed below.
Purchase Payment Provisions
Payment and Acceptance of Purchase Payments
Purchase payments are payments the owner makes to us for the benefits under this
certificate. All purchase payments must be made to either an agent designated by
us or our service center.
The initial purchase payment, as shown on the Information Page, will be credited
to the variable sub-accounts and/or general account options according to the
owner's instructions within two business days of the date our service center
receives both the initial purchase payment and sufficient information, in a form
and manner acceptable to us, to issue this certificate.
Additional purchase payments will be credited on the date we receive them at our
service center and are subject to the conditions listed below. Purchase payments
must:
Meet the additional payment minimum shown on the Information Page.
Not exceed any federal or state limitations during any taxable year; and
Not exceed the maximum total purchase payment amount, as shown on the
Information Page, without our prior approval.
We may return to the owner any purchase payments that do not meet the conditions
described in this section.
Allocating Each Purchase Payment
Allocations the owner makes to the variable sub-accounts and general account
options are subject to the following conditions. The owner must allocate:
In whole number percentages;
A minimum of 10% of each purchase payment to any variable sub-account or
general account option.
Not less than the variable sub-account minimum, as shown on the
Information Page, to variable sub-accounts with a zero balance.
Not less than the fixed account and guaranteed period account minimum, as
shown on the Information Page.
The owner may change allocation elections for future purchase payments any time
before the annuity date by notifying us at our service center.
Continuation of this Certificate
If the owner stops making additional purchase payments to this certificate, the
provisions of the certificate will continue in force until all values have been
distributed. The owner may exercise all ownership rights under this certificate
during that time, including making withdrawals and applying the annuity amount,
as defined in the settlement option provisions section, to provide payments
under a settlement option described in this certificate.
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The Variable Account
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The variable account is a separate investment account established and maintained
by the Company for the investment of a portion of our assets pursuant to North
Carolina Insurance Law. We will use the assets of the variable account to buy
shares in the various portfolios. Purchase payments allocated or transfers made
to one or more variable sub-accounts will become a part of the variable account.
The assets of the variable account are owned by us. The assets in the variable
account are not chargeable with liabilities arising out of any other business we
conduct, except to the extent that they exceed the reserves and other
liabilities of the variable account. The assets of the variable account
maintained under this certificate will be kept separate from the assets held in
our general account.
Variable Sub-accounts
The variable account is composed of a number of variable sub-accounts. The
investment performance of each variable sub-account is linked directly to the
investment performance of the underlying portfolio.
We cannot and do not guarantee that any of the variable sub-accounts will always
be available for investment. We reserve the right, subject to compliance with
applicable federal or state law, rules or regulations, to add, delete, or
substitute the variable sub-accounts or the portfolio shares held by a variable
sub-account, if we believe that further investment in the shares is no longer
appropriate or shares in a portfolio become no longer available for investment.
We will send written notification to the owner of such changes.
Variable Accumulation Unit
A variable accumulation unit is a unit of measure we use to determine the
variable accumulated value each day before the annuity date. The variable
accumulated value is the total dollar value of all variable accumulation units
for each variable sub-account. The value of a variable accumulation unit varies
with each variable sub-account. Purchase payments allocated or transfers made to
a variable sub-account are credited to the variable accumulated value in the
form of variable accumulation units. Transfers, withdrawals, or fees made from a
variable sub-account will result in the cancellation of variable accumulation
units.
Each time a purchase payment is allocated or a transfer is made to a variable
sub-account, the number of variable accumulation units credited will be
determined. We will determine the number of variable accumulation units by
dividing the total amount allocated by the value of that variable sub-account's
variable accumulation unit for the valuation day on which either we received the
purchase payment allocation or transfer request at our service center.
The value of a variable accumulation unit for each variable sub-account is
determined by multiplying the value of that unit at the end of the prior
valuation period by the net investment factor of the variable sub-account for
the valuation period. The value of a variable accumulation unit may increase or
decrease.
Net Investment Factor
The net investment factor is the formula that measures the investment
performance of a variable sub-account from one valuation period to the next. For
any variable sub-account, the net investment factor for a valuation period is
determined by dividing (A) by (B), then subtracting (C) where;
(A) is The net asset value per share held in the variable sub-account, as
of the end of the valuation period; plus (minus)
The per-share amount of any dividend or capital gain distributions if the
"ex-dividend" date occurs in the valuation period; plus (minus)
A per-share charge or credit as of the end of the valuation period for tax
reserves for realized and unrealized capital gains, if any.
(B) is
The net asset value per share held in the variable sub-account as of the end of
the prior valuation period.
(C) is
The daily mortality and expense risk charge multiplied by the number of calendar
days in the current valuation period; plus
The daily administrative expense charge multiplied by the number of calendar
days in the current valuation period.
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The General Account
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The Company's general account includes all assets not allocated to one of the
Company's separate accounts. The general account options under this certificate
include a fixed account and a guarantee period account to which the owner may
allocate purchase payments and transfers.
Fixed Account
Crediting of Interest
We will establish effective annual rates of interest for any amounts allocated
or transferred to this fixed account from time to time. Any purchase payment
allocation or transfer to the fixed account will be credited interest at the
rate applicable for its class. We guarantee that the rate of interest in effect
for any amounts allocated or transferred will remain in effect for at least
twelve months from the date such allocation or transfer is made. At any time
after the end of the twelve month period for a particular allocation, we may
change the annual rate of interest without prior notice. We guarantee that any
subsequent change in the annual rate of interest will remain in effect for a
minimum of twelve months from the effective date of change.
Interest will be credited on a daily basis at a daily rate which is equivalent
to the effective annual interest rate for that allocation. The effective annual
interest rate applicable to an allocation will never be less than 3% annually.
Transfer Limitations
Transfers from and to the fixed account are subject to the following conditions:
The owner may make four transfers from the fixed account to the variable
account each certificate year. The total amount transferred may not exceed
the maximum amount allowed for any certificate year. We reserve the right
to waive this limitation.
The maximum amount that may be transferred each certificate year is a
percentage of the value of the fixed account as of the last certificate
anniversary less any prior transfers made that certificate year. The
percentage rate, which will be declared by the Company from time to time,
will not be less than 10 percent. The percentage rate on the certificate
effective date for the maximum transfer amount is shown on the Information
Page.
Amounts from the fixed account may not be transferred to any guarantee
period or variable sub-account as identified by us whose underlying
portfolio's assets consist of more than 50% investment in income producing
securities, such as the money market accounts, certificates of deposit,
U.S. Treasury or other U.S. Government securities, bonds or any other fixed
income investment.
Each time an amount is transferred from the fixed account into the
variable account, the owner may not transfer any amounts back to the fixed
account for six months following the date of the original transfer.
Guarantee Period Account
Guarantee Periods
Each purchase payment allocation or transfer to the guarantee period account
will establish a new guarantee period. Each guarantee period offers a specified
duration with a corresponding guaranteed interest rate. The owner may not select
a guarantee period whose duration will extend beyond the annuity date, as
described in the settlement option provision section. We will never offer a
guarantee period with a duration of less than a year.
Crediting of Interest
We will establish a guaranteed interest rate for each guarantee period. This
rate will remain in effect for the specified duration of the guarantee period.
Interest will be credited on a daily basis at a daily rate which is equivalent
to the effective annual guaranteed interest rate for that guarantee period. The
guaranteed interest rate applicable to a guarantee period will never be less
than 3% annually.
Interest Adjustment
We will deduct an interest adjustment from amounts withdrawn or transferred from
a guarantee period before the end of the guarantee period. We will not make an
interest adjustment upon the death of the owner or within the 30-day period
before the end of the guarantee period. We may waive the interest adjustment in
connection with certain options offered with this certificate.
Any applicable interest rate adjustment will be calculated by multiplying the
amount withdrawn, transferred or annuitized before the reduction for any
contingent deferred sales load by the formula described below:
[(1 + I)/(1 + J + .005)]n/12 - 1
I = The guaranteed interest rate credited to the current guarantee period.
J = The current interest rate offered for a guar-xxxxx period equal to the
number of years remaining in the current guarantee period (fractional years
are rounded up to the next full year). If no guarantee period equal to the
number of years remaining in the current guarantee period is available, the
rate will be established by linear interpolation.
N = The number of full months remaining to the end of the current guarantee
period.
The interest adjustment will be made if the current interest rate plus .005 is
greater than the guaranteed interest rate.
The interest adjustment will never reduce the amount under a guarantee period to
less than the purchase payment allocation or transfer amount which initiated the
guarantee period; less any prior withdrawals or transfers; plus daily interest
accumulated at a 3% annual rate. There will be no upward adjustments.
Guarantee Period Expiration
At least 45 days, but not more than 60 days, prior to the expiration date of a
guarantee period, we will notify the owner as to the options available when a
guarantee period expires. The owner may elect to transfer the amount held in
that guarantee period to another general account option or to a variable
sub-account being offered by us at that time. The transfer request must be
received no later than the day immediately following the end of the expiring
guarantee period.
If no election is made, we will establish a new guarantee period of the same
duration as the expiring guarantee period, if offered, with a new guaranteed
interest rate declared by us for that guarantee period. If we are not currently
offering guarantee periods with the same duration as the expiring guarantee
period, the new guarantee period will be the next higher duration. If the
guarantee period extends beyond the annuity date, we will then select the
longest period that will not extend the guarantee period beyond such date.
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Transfer Provisions
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The owner may transfer all or a portion of the account value between and among
the variable sub-accounts and general account options subject to the limitations
as described in this section and the general account section of this
certificate.
All transfer requests must specify (a) the amount of the transfer; (b) the
variable sub-account or general account option from which the transfer is to be
made; and (c) the variable sub-account or general account option which is to
receive the transfer. All transfers will be made as of the valuation day we
receive the request at our service center.
Before the annuity date, transfers in excess of the maximum per certificate
year, as shown on the Information Page, will be subject to a transfer fee, as
described in the charges, fees and services section of this certificate. We
reserve the right to waive the transfer fee.
After the annuity date, transfers are only permitted if a variable payment
option is elected. Such transfers among the variable sub-accounts are limited to
four per certificate year. We reserve the right to change the number of
transfers available after the annuity date.
The minimum amount that may be transferred from a variable sub-account, the
fixed account or any guarantee period under the guarantee period account is the
lesser of $1,000 or the entire value of the variable sub-account, fixed account
or guarantee period from which the transfer is being made. The minimum amount
that may be initially allocated or transferred into a variable sub-account or
the fixed account is shown on the Information Page. The minimum amount that must
always be transferred into any guarantee period is shown on the Information
Page. We reserve the right to waive the minimum(s) in connection with certain
options offered with this certificate.
Withdrawal Provisions
Before the annuity date and subject to the conditions below the owner may:
Withdraw a portion of the account value for cash subject to any applicable
interest adjustment; contingent deferred sales load, and premium tax
charges; or
Automatically withdraw a portion of the account value by electing the
systematic withdrawal option; or
Withdraw the cash surrender value and terminate this certificate.
Any amount withdrawn that exceeds the allowed amount, as described below, may be
subject to a contingent deferred sales load. All withdrawals will be made from
purchase payments on a first in, first out basis and then from earnings.
Partial Withdrawal Provisions
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Partial withdrawals taken from the variable sub-accounts or general account
options are subject to a minimum withdrawal amount equal to the lesser of $1,000
or the entire value of the variable sub-account, fixed account or guarantee
period from which the withdrawal is being made. We reserve the right to limit
the number of partial withdrawals that may be taken from the general account
options in any certificate year. We reserve the right not to process any
withdrawal if the resulting account value is below the minimum, as shown on the
Information Page.
Systematic Withdrawal Option
The owner may elect to automatically receive a series of partial withdrawals
under the systematic withdrawal option subject to the following conditions:
Systematic withdrawals may be subject to a fee as described in the
charges, fees and services section of this certificate.
Systematic withdrawals may only be taken from variable sub-accounts and
general account options as designated by us from time to time. We reserve
the right to prospectively change such designations.
The owner may terminate systematic withdrawals at any time by notifying us at
our service center. Once the option has been terminated, it may not be elected
again for a twelve month period. Systematic withdrawals will automatically
terminate if the certificate is annuitized, surrendered or otherwise distributed
as a result of the owner's death.
Surrender of this Certificate
The owner may surrender this certificate to us for its cash surrender value on
or before the annuity date. Surrender of the certificate will be subject to any
withdrawal limitations imposed under applicable federal or state law, rules or
regulations.
Payment of the cash surrender value to the owner will be in full settlement of
our liability under the certificate.
Withdrawal of Funds Without Charges
At the end of the free look period or 30 days after the certificate effective
date, whichever is later, the owner may make withdrawals up to the allowed
amount each certificate year before the annuity date without incurring a
contingent deferred sales load.
The allowed amount is equal to 15% of purchase payments less than seven years
old as of the last certificate anniversary, less any previous withdrawals taken
in that certificate year. For the first certificate year, the allowed amount is
equal to 15% of purchase payments as of the time of the first withdrawal, less
any previous withdrawals taken that certificate year. Previous withdrawals
include partial withdrawals and certain scheduled withdrawals, such as
systematic withdrawals. Any amounts that exceed the allowed amount will be
subject to a contingent deferred sales load. Purchase payments that are older
than seven years old will not be subject to a contingent deferred sales load.
Amounts withdrawn from any guarantee period account may be subject to an
interest adjustment as described in the general account section of this
certificate.
Contingent Deferred Sales Load
A contingent deferred sales load may apply when a withdrawal from, or surrender
of, this certificate occurs. For purposes of determining the contingent deferred
sales load, all withdrawals are made first from purchase payments on a first-in,
first-out basis and then from earnings.
We calculate the contingent deferred sales load separately for each purchase
payment received by us. The contingent deferred sales load is a percentage of
the withdrawn purchase payment.
The applicable contingent deferred sales load percentages, as shown on the
Information Page, are based on the number of complete years from the receipt of
the purchase payment(s) to the date of withdrawal.
Waiver of Contingent Deferred Sales Load We will waive the contingent deferred
sales load:
On the allowed amount.
Upon annuitization on or after the first certificate anniversary, if the
selected settlement option involves life contingencies.
Upon the owner's death before the annuity date.
Settlement Option Provisions
On the annuity date, we will apply the annuity amount, as defined below,
to provide payments under the settlement option selected by the owner. The
first settlement option payment will be made 30 days after the annuity
date.
Settlement option payments may be made in monthly, quarterly, semi-annual
or annual installments as selected by the owner.
The owner may change the annuity date and settlement and payment option by
notifying our service center at least 30 days in advance of the annuity date.
The annuity date must be on or before the later of (A) and (B) where:
(A) is the first day of the calendar month immediately preceding the month of
the annuitant's or joint annuitant's 85th birthday, whichever is earlier, and;
(B) is the first day of the month immediately following the tenth certificate
anniversary.
The annuity date may not be earlier than the first day of the calendar month
coinciding with the first certificate anniversary and may in no event be later
than the earlier of the annuitant's or joint annuitant's 97th birthday.
After the annuity date, we will not allow the owner to make:
Any changes to either the settlement or payment option;
Additional purchase payments; or
Any further withdrawals.
Annuity Amount
The annuity amount we will apply to provide payments is equal to the account
value, less any interest adjustment, less any contingent deferred sales load,
and less any premium tax charges.
Minimum Requirements
We reserve the right to offer a less frequent mode of payment than the mode
selected by the owner or make a cash payment to the owner equal to the cash
surrender value if:
The annuity amount is less than $5,000; or
The amount of the first fixed payment is less than $150; or
The amount of the first variable payment is less than $150 or if a variable
payment from a variable sub-account is less than $75.
If we make such a cash payment it will be in full settlement of our liability
under this certificate.
Settlement Options
The settlement options the owner may choose from are listed below. For any
settlement option involving life contingencies, it is possible that no
settlement option payments will be made from this certificate if, after the
annuity date but before the first settlement option payment is made, the
annuitant and joint annuitant or contingent annuitant, as applicable, dies.
Life Annuity
Provides payments to the owner for as long as the annuitant lives. Payments will
end with the payment due just before the annuitant's death and there is no
provision for a death benefit payable to a beneficiary.
Life Annuity with Period Certain Provides payments to the owner for the
longer of: a) the annuitant's life; or (b) the period certain. The period
certain may be 120, 180 or 240 months. If the annuitant dies during the period
certain, payments will continue until the end of the period certain.
Life and Contingent Annuity
Provides payments to the owner for as long as the annuitant lives. If the
annuitant dies, payments will continue for as long as the contingent annuitant
lives in an amount equal to 50%, 66 2/3% or 100% of the original payment, as
selected. Payments will then end with the payment due just before the contingent
annuitant's death.
Joint and Survivor Annuity
Provides payments to the owner for as long as the survivor of the annuitant or
joint annuitant lives. After the first annuitant dies, payments will continue
for as long as the survivor lives in an amount equal to 50%, 66 2/3% or 100% of
the original payment, as selected. Payments will then end with the payment due
just before the death of the survivor.
Other Forms of Payment
Payments can be provided under other settlement options not described in this
section. Contact our service center for more information.
Settlement Option Payments
Settlement option payments may be fixed or variable or a combination of
both.
The fixed payment option provides for settlement option payments that
remain constant and are not affected by the investment performance of the
variable sub-accounts.
The variable payment option provides for settlement option payments that
vary based on the investment performance of the variable sub-account(s)
selected by the owner. These payments may increase, decrease or remain the
same.
Fixed Payment Option
Amount of Fixed Payment
The owner may elect to have all or a portion of the annuity amount applied to
provide fixed payments. On the annuity date, we will determine the dollar amount
of the fixed payments by applying the portion of the annuity amount allocated to
provide fixed payments as a single payment based on the settlement option chosen
and the age and sex of the annuitant(s), using the appropriate guaranteed
annuity rate tables. If required by law, we will use the appropriate unisex
guaranteed annuity rate tables. The monthly annuity rate tables are contained in
the appendix.
Variable Payment Option
Amount of First Variable Payment
The owner may elect to have all or a portion of the annuity amount applied to
provide settlement option payments that vary based on the investment performance
of selected variable sub-accounts. The amount of the first variable
payment will be equal to the benefit that could be purchased by applying the
portion of the annuity amount allocated to provide the variable payments as a
single payment based on the settlement option chosen and age and sex of the
annuitant(s) using the appropriate guaranteed annuity rate tables. If required
by law, we will use the appropriate unisex guaranteed annuity rate tables. The
monthly annuity rate tables are contained in the appendix.
Amount of Subsequent Variable Payments
We determine the dollar amount of the second and subsequent variable payments by
first identifying the number and value of the variable annuity units for each
variable sub-account. Variable annuity units are the unit of measure used to
determine such payments. For each payment we multiply the number of variable
annuity units by the value of the variable annuity units for each variable
sub-account.
The number of variable annuity units for each variable sub-account will remain
the same for the second and subsequent variable payments (unless amounts are
transferred to or from a variable sub-account) and the value of the variable
annuity units in each variable sub-account will vary. As a result of the
variation in the value of variable annuity units for each variable sub-account
between payments, the dollar amount of each variable payment after the first may
increase, decrease or remain the same.
Number of Variable Annuity Units
The number of variable annuity units for each variable sub-account is determined
by dividing the first variable payment by the value of the variable annuity
units of each variable sub-account on the annuity date.
Value of Variable Annuity Units
The variable annuity unit values depend on the net investment factor and the
assumed interest rate. The value of a variable annuity unit for each variable
sub-account for any valuation day is equal to (A) times (B) times (C), where:
(A) is the variable annuity unit value on the immediately preceding valuation
day;
(B) is the net investment factor (determined in accordance with the net
investment factor provision on Page 7), for the valuation period just ended; and
(C) is the investment result adjustment factor (.99989255)n, which recognizes an
assumed interest rate of 4% per year. The Company reserves the right to offer
other assumed interest rates with appropriate investment result adjustment
factors. The "n" in the investment result adjustment factor is the number of
days since the preceding valuation day.
Once settlement option payments begin, we guarantee the amount of each variable
payment will not be affected by variations in expenses or mortality experience.
Death Benefit Provisions
We must distribute death benefits or continue making settlement option payments
under this certificate according to the requirements of Code Section 72(s) as
long as this certificate is in force or benefits remain to be paid.
We will not accept any additional purchase payments after the death of the owner
or joint owner.
If any ownership change is made, the death benefit
under this certificate may be reduced in accordance with our then current
underwriting rules. Such reduction will never decrease the death benefit below
the account value.
We must receive proof of death before any benefits are distributed from this
certificate. Proof of death acceptable to us includes:
A certified copy of a death certificate
A certified copy of a court decree stating the cause of death A written
statement by a medical doctor who attended the deceased Any other proof or
documents we may require
Amount of Death Benefit
If the owner or joint owner dies before the annuity date and neither the
deceased owner nor the joint owner had attained the age of 85, the guaranteed
minimum death benefit is equal to the greatest of (A), (B) or (C) where:
(A) is the account value.
(B) is 100% of purchase payments, less the sum of all withdrawals and any
applicable premium tax charges.
(C) is the highest account value on any certificate anniversary, increased by
the sum of all purchase payments received since that certificate anniversary,
less the sum of all withdrawals and any applicable premium tax charges since
that anniversary.
The guaranteed minimum death benefit will be determined as of the end of the
valuation period during which our service center receives both proof of death of
the owner or joint owner and the written notice of the form of benefit elected
by the person to whom the death benefit is payable.
Amount of Death Benefit after the Owner or Joint Owner attains age 85
If the owner or joint owner dies before the annuity date and either the deceased
owner or surviving owner had attained the age of 85, the death benefit is equal
to the account value. For purposes of calculating such death benefit, the
account value is determined as of the date the death benefit is paid.
Death of Owner or Joint Owner before the Annuity Date
If the owner or joint owner dies before the annuity date, we will pay the death
benefit as specified in this section. The entire death benefit must be
distributed within five years after the owner's death. If the owner is not an
individual, an annuitant's death will be treated as the death of the owner as
provided in Code Section 72(s)(6). For example, this certificate will remain in
force with the annuitant's surviving spouse as the new annuitant if:
This certificate is owned by a trust; and
The beneficiary shown on the Information Page is either the annuitant's
surviving spouse, or a trust holding the certificate solely for the benefit
of such spouse.
The manner in which we will pay the death benefit depends on the status of the
person(s) involved in this certificate. The death benefit will be payable to the
first person from the applicable list below:
If the owner is the annuitant:
The joint owner, if any
The beneficiary, if any
If the owner is not the annuitant:
The joint owner, if any
The beneficiary, if any
The annuitant;
The joint annuitant; if any
If the death benefit is payable to the owner's surviving spouse, (or to a trust
for the sole benefit of such surviving spouse), we will continue this
certificate with the owner's spouse as the new annuitant (if the owner was the
annuitant) and the new owner (if applicable), unless such spouse selects another
option as provided below.
If the death benefit is payable to someone other that the owner's surviving
spouse, we will pay the death benefit in a lump sum payment to, or for the
benefit of, such person within five years after the owner's death, unless such
person(s) selects another option as provided below.
In lieu of the automatic form of death benefit specified above, the person(s) to
whom the death benefit is payable may elect to receive it:
In a lump sum; or
As settlement option payments, provided the person making the election is
an individual. Such payments must begin within one year after the owner's
death and must be in equal amounts over a period of time not extending
beyond the individual's life or life expectancy.
Election of either option must be made no later than 60 days prior to the one
year anniversary of the owner's death. Otherwise, the death benefit will be
settled under the appropriate automatic form of benefit specified above.
If the person to whom the death benefit is payable dies before the entire death
benefit is paid, we will pay the remaining death benefit in a lump sum to the
payee named by such person or, if no payee was named, to such person's estate.
If the death benefit is payable to a non-individual (subject to the special rule
for a trust for the sole benefit of a surviving spouse), we will pay the death
benefit in a lump sum within one year after the owner's death.
If the Annuitant Dies Before the Annuity Date
If an owner and an annuitant are not the same individual and the annuitant (or
the last of joint annuitants) dies before the annuity date, the owner will
become the annuitant until a new annuitant is selected.
Death after the Annuity Date
If an owner or an annuitant dies after the annuity date, any amounts payable
will continue to be distributed at least as rapidly as under the settlement and
payment option then in effect on the date of death.
Upon the owner's death after the annuity date, any remaining ownership rights
granted under this certificate will pass to the person to whom the death benefit
would have been paid if the owner had died before the annuity date, as specified
above.
Survival Provision
The interest of any person to whom the death benefit is payable who dies at the
time of, or within 30 days after, the death of the owner will also terminate if
no benefits have been paid to such beneficiary, unless the owner had given us
written notice of some other arrangement.
-----------------------------------------
Charges, Fees and Services
-----------------------------------------
Premium Tax Charge
Some jurisdictions impose on us a premium tax on annuities. If a premium tax is
imposed, we reserve the right to deduct this amount from purchase payments or
account value, as appropriate. For purposes of this certificate, premium tax
charges include retaliatory taxes or other similar taxes.
Mortality and Expense Risk Charge
The amount of the annual mortality and expense risk charge is shown on the
Information Page. The mortality and expense risk charge will be deducted on a
daily basis from the assets in each variable sub-account as part of the
calculation of the variable accumulation unit.
Administrative Expense Charge
The amount of the annual administrative expense charge on the certificate
effective date is shown on the Information Page. The administrative expense
charge will be deducted on a daily basis from the assets in each variable
sub-account as part of the calculation of the variable accumulation unit.
We may change this charge upon 30 days advance written notice to the owner. Any
increase in the administrative expense charge will apply prospectively to
administrative expense charges deducted after the effective date of change. The
administrative expense charge will not exceed an annual charge of 0.35%.
Transfer Fee
We reserve the right to impose a transfer fee for each transfer in excess of the
number shown on the Information Page made during a single certificate year. The
amount of the transfer fee on the certificate effective date is shown on the
Information Page. This fee will not increase. The transfer fee will be deducted
from the amount of the transfer prior to its reallocation. We reserve the right
to waive the transfer fee.
Systematic Withdrawal Fee
We reserve the right to impose an annual processing fee for the systematic
withdrawal option. The amount of the systematic withdrawal fee on the
certificate effective date is shown on the Information Page. Any fee imposed
will not exceed $25 per certificate year.
Account Fee
Before the annuity date, an annual account fee will be deducted from the account
value on the last business day of each certificate year and if different, the
date the certificate is surrendered. The amount of the annual account fee on the
certificate effective date is shown on the Information Page. The account fee
will be deducted on a pro rata basis from the account value. There will be no
interest adjustment on any deductions from the guarantee period account for this
fee.
We may change this fee prospectively upon 30 days advance written notice to the
owner. Any increase will not result in the account fee exceeding a maximum
annual account fee equal to the lesser of 2% of the account value or $60.
Annuity Fee
After the annuity date, an annual fee equal to the amount shown on the
Information Page will be deducted in equal amounts from distributions made under
the variable payment option. We reserve the right to waive this fee.
Statements of Account
At least once during each certificate year, we will send the owner a statement
of account reflecting the account value of the certificate. Statements of
account will cease to be provided to the owner after the annuity date.
-------------------------------
General Provisions
-------------------------------
Entire Contract
This certificate, the group certificate contract and any attached endorsements
and riders are the entire contract.
Misstatement of Age and Sex
If the age or sex of the annuitant(s) and/or of any other measuring life has
been misstated, the settlement option payments payable under this certificate
will be whatever the annuity amount would provide for the correct age or sex of
the annuitant(s) and/or of any other measuring life on the annuity date. Any
underpayment by us, as a result of such misstatement, will be paid in a lump sum
on the next settlement option payment made by us, and any overpayment will be
deducted from the current or succeeding payments.
Proof of Existence and Age
Before making any payment under this certificate, we may require proof of the
existence and age of the owner, the annuitant and/or any other measuring life.
We may also require any other information as we may need in order to provide
benefits under the certificate.
Changes
No provision of this certificate may be changed or waived unless done in writing
and signed by two of our authorized officers. We will not make any change that
reduces the amounts payable under this certificate unless the change is required
by law. We will provide the owner a copy of any changes we make to this
certificate.
Income Tax Qualification
This certificate is intended to qualify as an annuity contract for federal
income tax purposes. All provisions in this certificate will be interpreted to
maintain such tax qualification. We may make changes in order to maintain this
qualification or to conform this certificate to any applicable changes made in
the tax qualification requirements. We will provide the owner with a copy of any
changes we make to this certificate.
Incontestability
This certificate is incontestable from the certificate effective date.
Assignment of this Certificate
To make ownership changes or assign rights to another person, the owner must
notify us at our service center. An assignment or ownership change is not
binding on us until we receive the necessary documentation and acknowledge the
request. We are not responsible for the validity or effect - tax or otherwise -
of any assignment or ownership change. If an ownership change is made, the death
benefit under this certificate may be reduced in accordance with our then
current underwriting rules.
Such reduction will never decrease the death benefit below the account value.
Payments by/to the Company
All purchase payments paid to us or amounts paid by us from this certificate
will be made in the legal currency of the United States of America.
Delay of Payment or Transfer
Except as provided below, we will pay amounts due from this certificate within
seven days of the date our service center receives both the request for such
amount and all the necessary requirements in a form and manner acceptable to us.
We reserve the right to delay the payment of any benefits payable, amounts
withdrawn or transfers requested from the variable account due to: (a) the
closure of the New York Stock Exchange for reasons other than usual weekends,
holidays or if trading on such Exchange is restricted; (b) the existence of an
emergency as defined by the Securities and Exchange Commission of the United
States Government or restrictions of trading by the Commission; or (c) delays
permitted by the Securities and Exchange Commission for the protection of
security holders.
We further reserve the right to delay payment of any withdrawal from the general
account options for up to six months after we receive the request for
withdrawal. If we delay payment for more than 30 days, we will pay interest as
provided in this certificate on the withdrawal amount up to the date of payment.
Minimum Benefits
Any settlement option payments, cash surrender value or death benefits that may
be available under this certificate will not be less than the minimum benefits
required by any statute of the jurisdiction in which this certificate was
issued.
Protection of Benefits/Proceeds
To the extent permitted by law, no payment of benefits or interest will be
subject to the claim(s) of any creditor of any owner, annuitant or beneficiary
or to any claim or process of law against any owner, annuitant or beneficiary.
Non-Participating
This certificate is classified as a non-participating certificate. It does not
participate in our profits or surplus, and therefore no dividends are payable.
APPENDIX
ANNUITY RATE TABLES
Applicability of Rates - The guaranteed annuity rates contained in Tables I, II
and III will be used to provide a minimum guaranteed monthly annuity under the
fixed annuity payment option. The annuity rates contained in Tables IV, V and VI
will be used to determine the first monthly annuity payment under the variable
annuity payment option.
The rates contained in this certificate are for each $1,000 applied under the
applicable settlement option and do not include any applicable premium tax
charges. Any applicable premium tax charges will be withdrawn as described in
the premium tax charge provision of the certificate.
Tables I and II under the fixed annuity payment option and Tables IV and V under
the variable annuity payment option, as applicable, will be used for all
settlement options, subject to any limitations imposed under: (a) a retirement
plan or program under which this certificate is issued; or (b) applicable
federal or state law, rules or regulations which restrict the use of such rates.
If any federal or state law, rules or regulations prohibits the use of the rates
provided under these Tables, then the annuity rates provided under Tables III
and VI, as applicable, will be used.
Rates Not Shown - Any rates not shown in the Tables contained in this
certificate will be provided by us upon request.
APPENDIX (continued)
TABLES OF GUARANTEED ANNUITY RATES UNDER
FIXED ANNUITY PAYMENT OPTION
TABLE I - MALE RATES
LIFE LIFE ANNUITY WITH PERIOD CERTAIN
Age ANNUITY 120 Months 180 Months 240 Months
--------------------------------------------------------------------------------------------------------------
40 3.76 3.76 3.75 3.73
41 3.80 3.79 3.78 3.76
42 3.84 3.83 3.82 3.80
43 3.88 3.87 3.86 3.83
44 3.93 3.92 3.90 3.87
45 3.97 3.96 3.94 3.91
46 4.02 4.01 3.98 3.95
47 4.07 4.06 4.03 3.99
48 4.13 4.11 4.08 4.03
49 4.18 4.16 4.13 4.08
50 4.24 4.21 4.18 4.13
51 4.30 4.27 4.23 4.17
52 4.37 4.33 4.29 4.22
53 4.43 4.40 4.34 4.28
54 4.51 4.46 4.41 4.33
55 4.58 4.53 4.47 4.38
56 4.66 4.60 4.54 4.44
57 4.74 4.68 4.60 4.50
58 4.83 4.76 4.67 4.56
59 4.92 4.84 4.75 4.61
60 5.02 4.93 4.83 4.68
61 5.12 5.02 4.90 4.74
62 5.23 5.12 4.99 4.80
63 5.34 5.22 5.07 4.87
64 5.47 5.33 5.16 4.93
65 5.60 5.45 5.25 5.00
66 5.74 5.57 5.35 5.06
67 5.90 5.69 5.45 5.12
68 6.06 5.83 5.55 5.18
69 6.24 5.97 5.64 5.24
70 6.43 6.11 5.74 5.30
71 6.63 6.26 5.84 5.35
72 6.84 6.42 5.95 5.41
73 7.07 6.58 6.05 5.45
74 7.32 6.74 6.14 5.50
75 7.58 6.91 6.24 5.54
76 7.86 7.08 6.33 5.57
77 8.16 7.26 6.42 5.61
78 8.48 7.43 6.50 5.63
79 8.83 7.61 6.58 5.66
80 9.20 7.79 6.65 5.68
--------------------------------------------------------------------------------------------------------------
Basis of Computation - The actuarial basis for the annuity rates contained in
this Table I, is the 1983a Annuity Mortality Table for males, without
projection, set back 5 years, with an interest rate of 3.5% per annum.
APPENDIX (continued)
TABLES OF GUARANTEED ANNUITY RATES UNDER
FIXED ANNUITY PAYMENT OPTION
TABLE II - FEMALE RATES
LIFE LIFE ANNUITY WITH PERIOD CERTAIN
Age ANNUITY 120 Months 180 Months 240 Months
--------------------------------------------------------------------------------------------------------------
40 3.58 3.58 3.57 3.56
41 3.61 3.60 3.60 3.59
42 3.64 3.64 3.63 3.62
43 3.67 3.67 3.66 3.65
44 3.71 3.70 3.69 3.68
45 3.74 3.74 3.73 3.71
46 3.78 3.77 3.76 3.75
47 3.82 3.81 3.80 3.78
48 3.86 3.85 3.84 3.82
49 3.90 3.89 3.88 3.86
50 3.95 3.94 3.92 3.90
51 4.00 3.98 3.97 3.94
52 4.05 4.03 4.01 3.98
53 4.10 4.08 4.06 4.03
54 4.15 4.14 4.11 4.08
55 4.21 4.19 4.17 4.13
56 4.28 4.25 4.22 4.18
57 4.34 4.32 4.28 4.23
58 4.41 4.38 4.34 4.28
59 4.48 4.45 4.41 4.34
60 4.56 4.52 4.47 4.40
61 4.64 4.60 4.55 4.46
62 4.73 4.68 4.62 4.52
63 4.82 4.77 4.70 4.59
64 4.92 4.86 4.78 4.66
65 5.03 4.96 4.86 4.72
66 5.14 5.06 4.95 4.79
67 5.26 5.17 5.04 4.86
68 5.39 5.28 5.14 4.93
69 5.52 5.40 5.24 5.01
70 5.67 5.52 5.34 5.07
71 5.82 5.66 5.44 5.14
72 5.99 5.80 5.55 5.21
73 6.17 5.95 5.66 5.27
74 6.36 6.10 5.77 5.34
75 6.57 6.27 5.88 5.40
76 6.80 6.44 6.00 5.45
77 7.04 6.61 6.11 5.50
78 7.31 6.80 6.21 5.54
79 7.60 6.99 6.32 5.58
80 7.91 7.18 6.42 5.62
--------------------------------------------------------------------------------------------------------------
Basis of Computation - The actuarial basis for the annuity rates contained in
this Table II, is the 1983a Annuity Mortality Table for females, without
projection, set back 5 years, with an interest rate of 3.5% per annum.
APPENDIX (continued)
TABLES OF GUARANTEED ANNUITY RATES UNDER
FIXED ANNUITY PAYMENT OPTION
TABLE III - UNISEX RATES
LIFE LIFE ANNUITY WITH PERIOD CERTAIN
Age ANNUITY 120 Months 180 Months 240 Months
--------------------------------------------------------------------------------------------------------------
40 3.69 3.69 3.68 3.66
41 3.73 3.72 3.71 3.70
42 3.76 3.76 3.75 3.73
43 3.80 3.79 3.78 3.76
44 3.84 3.83 3.82 3.80
45 3.88 3.87 3.86 3.83
46 3.93 3.92 3.90 3.87
47 3.97 3.96 3.94 3.91
48 4.02 4.01 3.98 3.95
49 4.07 4.06 4.03 4.00
50 4.13 4.11 4.08 4.04
51 4.18 4.16 4.13 4.08
52 4.24 4.22 4.18 4.13
53 4.30 4.27 4.24 4.18
54 4.37 4.33 4.29 4.23
55 4.44 4.40 4.35 4.28
56 4.51 4.47 4.42 4.34
57 4.59 4.54 4.48 4.40
58 4.66 4.61 4.55 4.45
59 4.75 4.69 4.62 4.51
60 4.84 4.77 4.69 4.57
61 4.93 4.86 4.77 4.64
62 5.03 4.95 4.85 4.70
63 5.14 5.05 4.93 4.76
64 5.25 5.15 5.02 4.83
65 5.37 5.26 5.11 4.89
66 5.50 5.37 5.20 4.96
67 5.64 5.49 5.29 5.03
68 5.79 5.61 5.39 5.09
69 5.95 5.75 5.49 5.15
70 6.12 5.88 5.59 5.22
71 6.31 6.03 5.69 5.28
72 6.50 6.18 5.80 5.34
73 6.71 6.33 5.90 5.39
74 6.93 6.49 6.01 5.44
75 7.17 6.66 6.11 5.49
76 7.43 6.84 6.21 5.53
77 7.71 7.01 6.31 5.57
78 8.01 7.19 6.40 5.61
79 8.33 7.37 6.49 5.63
80 8.67 7.56 6.57 5.66
--------------------------------------------------------------------------------------------------------------
Basis of Computation - The actuarial basis for the annuity rates contained in
this Table III, is the 1983a Annuity Mortality Table, without projection,
blended 60% males and 40% females, set back 5 years, with an interest rate of
3.5% per annum.
APPENDIX (continued)
TABLES OF ANNUITY RATES UNDER
VARIABLE ANNUITY PAYMENT OPTION
TABLE IV - MALE RATES
LIFE LIFE ANNUITY WITH PERIOD CERTAIN
Age ANNUITY 120 Months 180 Months 240 Months
--------------------------------------------------------------------------------------------------------------
40 4.08 4.07 4.06 4.04
41 4.12 4.11 4.09 4.07
42 4.16 4.15 4.13 4.11
43 4.20 4.18 4.17 4.14
44 4.24 4.23 4.21 4.18
45 4.29 4.27 4.25 4.21
46 4.33 4.32 4.29 4.25
47 4.38 4.36 4.33 4.29
48 4.44 4.41 4.38 4.33
49 4.49 4.46 4.43 4.38
50 4.55 4.52 4.48 4.42
51 4.61 4.57 4.53 4.47
52 4.67 4.63 4.59 4.52
53 4.74 4.69 4.64 4.57
54 4.81 4.76 4.70 4.62
55 4.88 4.83 4.76 4.67
56 4.96 4.90 4.83 4.73
57 5.04 4.97 4.89 4.78
58 5.13 5.05 4.96 4.84
59 5.22 5.13 5.04 4.90
60 5.31 5.22 5.11 4.96
61 5.42 5.31 5.19 5.02
62 5.52 5.41 5.27 5.08
63 5.64 5.51 5.36 5.14
64 5.76 5.62 5.44 5.20
65 5.90 5.73 5.53 5.27
66 6.04 5.85 5.62 5.33
67 6.19 5.98 5.72 5.39
68 6.36 6.11 5.82 5.45
69 6.53 6.25 5.91 5.51
70 6.72 6.39 6.01 5.56
71 6.92 6.54 6.11 5.61
72 7.14 6.69 6.21 5.67
73 7.37 6.85 6.31 5.71
74 7.62 7.01 6.40 5.75
75 7.88 7.18 6.49 5.79
76 8.16 7.35 6.58 5.83
77 8.46 7.52 6.67 5.86
78 8.79 7.70 6.75 5.89
79 9.13 7.87 6.83 5.91
80 9.51 8.05 6.90 5.93
--------------------------------------------------------------------------------------------------------------
Basis of Computation - The actuarial basis for the annuity rates contained in
this Table IV, is the 1983a Annuity Mortality Table for males, without
projection, set back 5 years, with an assumed interest rate of 4% per annum.
APPENDIX (continued)
TABLES OF ANNUITY RATES UNDER
VARIABLE ANNUITY PAYMENT OPTION
TABLE V - FEMALE RATES
LIFE LIFE ANNUITY WITH PERIOD CERTAIN
Age ANNUITY 120 Months 180 Months 240 Months
--------------------------------------------------------------------------------------------------------------
40 3.90 3.90 3.89 3.88
41 3.93 3.92 3.92 3.91
42 3.96 3.95 3.95 3.94
43 3.99 3.98 3.97 3.96
44 4.02 4.01 4.01 3.99
45 4.06 4.05 4.04 4.02
46 4.09 4.08 4.07 4.06
47 4.13 4.12 4.11 4.09
48 4.17 4.16 4.15 4.13
49 4.21 4.20 4.19 4.16
50 4.26 4.24 4.23 4.20
51 4.30 4.29 4.27 4.24
52 4.35 4.34 4.32 4.28
53 4.40 4.39 4.36 4.33
54 4.46 4.44 4.41 4.37
55 4.52 4.49 4.46 4.42
56 4.58 4.55 4.52 4.47
57 4.64 4.61 4.58 4.52
58 4.71 4.68 4.64 4.57
59 4.78 4.75 4.70 4.63
60 4.86 4.82 4.77 4.69
61 4.94 4.89 4.84 4.75
62 5.03 4.98 4.91 4.81
63 5.12 5.06 4.98 4.87
64 5.22 5.15 5.06 4.94
65 5.32 5.24 5.14 5.00
66 5.43 5.34 5.23 5.07
67 5.55 5.45 5.32 5.14
68 5.68 5.56 5.41 5.21
69 5.81 5.68 5.51 5.27
70 5.96 5.80 5.61 5.34
71 6.11 5.93 5.71 5.41
72 6.28 6.08 5.82 5.48
73 6.46 6.22 5.93 5.54
74 6.65 6.37 6.04 5.60
75 6.86 6.54 6.15 5.66
76 7.09 6.71 6.25 5.71
77 7.33 6.88 6.37 5.76
78 7.60 7.07 6.47 5.80
79 7.89 7.25 6.57 5.84
80 8.20 7.45 6.67 5.88
--------------------------------------------------------------------------------------------------------------
Basis of Computation - The actuarial basis for the annuity rates contained in
this Table V, is the 1983a Annuity Mortality Table for females, without
projection, set back 5 years, with an assumed interest rate of 4% per annum.
APPENDIX (continued)
TABLES OF ANNUITY RATES UNDER
VARIABLE ANNUITY PAYMENT OPTION
TABLE VI - UNISEX RATES
LIFE LIFE ANNUITY WITH PERIOD CERTAIN
Age ANNUITY 120 Months 180 Months 240 Months
--------------------------------------------------------------------------------------------------------------
40 4.01 4.00 4.00 3.98
41 4.05 4.04 4.03 4.01
42 4.08 4.07 4.06 4.04
43 4.12 4.11 4.09 4.07
44 4.16 4.14 4.13 4.11
45 4.20 4.18 4.17 4.14
46 4.24 4.22 4.21 4.18
47 4.28 4.27 4.25 4.22
48 4.33 4.31 4.29 4.26
49 4.38 4.36 4.33 4.30
50 4.43 4.41 4.38 4.34
51 4.49 4.46 4.43 4.38
52 4.55 4.52 4.48 4.43
53 4.61 4.57 4.54 4.48
54 4.67 4.64 4.59 4.53
55 4.74 4.70 4.65 4.58
56 4.81 4.76 4.71 4.63
57 4.89 4.83 4.77 4.68
58 4.96 4.91 4.84 4.74
59 5.05 4.99 4.91 4.80
60 5.14 5.07 4.98 4.86
61 5.23 5.15 5.05 4.92
62 5.33 5.24 5.13 4.98
63 5.43 5.34 5.21 5.04
64 5.55 5.44 5.30 5.10
65 5.67 5.54 5.39 5.17
66 5.80 5.66 5.48 5.23
67 5.94 5.77 5.57 5.30
68 6.09 5.90 5.67 5.36
69 6.25 6.03 5.76 5.42
70 6.42 6.16 5.86 5.48
71 6.60 6.31 5.96 5.54
72 6.79 6.46 6.06 5.60
73 7.00 6.61 6.17 5.65
74 7.23 6.77 6.27 5.70
75 7.47 6.93 6.37 5.75
76 7.73 7.10 6.46 5.79
77 8.01 7.28 6.56 5.82
78 8.31 7.46 6.65 5.86
79 8.63 7.64 6.73 5.89
80 8.98 7.82 6.82 5.91
--------------------------------------------------------------------------------------------------------------
Basis of Computation - The actuarial basis for the annuity rates contained in
this Table VI, is the 1983a Annuity Mortality Table, without projection, blended
60% males and 40% females, set back 5 years, with an assumed interest rate of 4%
per annum.
Certificate of participation
issued in connection with
Group flexible premium deferred annuity contract form no. TGP-711-197
Variable and fixed dollar settlement options
Separate Account Investments
Non-participating - No annual dividends
[GRAPHIC OMITTED]
