Exhibit 99.B.4(C)
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[LOGO OF AETNA APPEARS HERE] AETNA LIFE INSURANCE AND ANNUITY COMPANY
Home Office: 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
(000) 000-0000
Aetna Life Insurance and Annuity Company, herein
called Aetna, agrees to pay the benefits stated
in this Contract.
SPECIFICATIONS
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Plan
MARATHON PLUS
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Type of Plan
INDIVIDUAL RETIREMENT ANNUITY ROLLOVER ACCOUNT
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Contract Holder
SPECIMEN
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Annuitant
SPECIMEN
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Contract No.
SPECIMEN
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Effective Date
MAY 1, 1995
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This Contract is Delivered in NEW YORK and is Subject to the Laws of that
Jurisdiction
THE VARIABLE FEATURES OF THE CONTRACT ARE DESCRIBED IN PARTS III AND IV.
RIGHT TO CANCEL
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The Contract Holder may cancel this Contract within 10 days of receiving it by
returning this Contract along with a written notice to Aetna at the above
address or to the agent from whom it was purchased. Within 7 days after it
receives the notice of cancellation and this Contract at its Home Office, Aetna
will return the entire consideration paid plus any increase or minus any
decrease in the current value of any funds allocated to the Separate Account.
This page, the following pages, and the application make up the entire
Contract.
Signed at the Home Office on the Effective Date.
Xxx Xxxxxxx Xxxxxxx X. Xxxxxxxxx
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President Secretary
Group Variable, Fixed, or Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON
INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE
ADJUSTMENT FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN
EITHER AN INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE
ADJUSTMENT FORMULA DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS
MATURITY.
1
SPECIFICATIONS
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GUARANTEED There is a guaranteed interest rate for Purchase Payment(s) held in the ALIAC Guaranteed Account (see Contract
INTEREST RATE Schedule I).
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DEDUCTIONS FROM There will be deductions for mortality and expense risks and administrative fees (see Contract Schedule I and
THE SEPARATE II).
ACCOUNT
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DEDUCTION FROM Purchase Payment(s) are subject to a deduction for premium taxes, if any (see 3.01).
PURCHASE
PAYMENT(S)
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SURRENDER There will be a charge deducted upon surrender (see Contract Schedule I).
FEE
This Contract is a legal contract and constitutes the entire legal relationship
between Aetna and the Contract Holder.
READ THIS CONTRACT CAREFULLY. This contract sets forth, in detail, all of the
rights and obligations of both you and Aetna. IT IS THEREFORE IMPORTANT THAT
YOU READ THIS CONTRACT CAREFULLY.
2
CONTRACT SCHEDULE I
ACCUMULATION PERIOD
SEPARATE ACCOUNT
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SEPARATE ACCOUNT: Variable Annuity Account B
CHARGES TO SEPARATE A daily charge is deducted from any portion of the Current Value allocated to the Separate Account.
ACCOUNT: The deduction is the daily equivalent of the annual effective percentage shown in the following
chart.
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
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Total Separate Account
Charges 1.40%
SEPARATE ACCOUNT FUNDS: During the Accumulation Period the Funds available with this Contract are:
Aetna Variable Fund
Aetna Income Shares
Aetna Variable Encore Fund
Aetna Investment Advisers Fund, Inc.
Aetna Ascent Variable Portfolio
Aetna Crossroads Variable Portfolio
Aetna Legacy Variable Portfolio
The Xxxxx American Fund - Xxxxx American Balanced Portfolio
The Xxxxx American Fund - Xxxxx American Income and Growth Portfolio
The Xxxxx American Fund - Xxxxx American Growth Portfolio
The Xxxxx American Fund - Xxxxx American Midcap Growth Portfolio
The Xxxxx American Fund - Xxxxx American Leveraged Allcap Portfolio
The Xxxxx American Fund - Xxxxx American Small Capitalization Portfolio
Fidelity Investments Variable Insurance Products Fund - High Income Portfolio
Fidelity Investments Variable Insurance Products Fund - Equity-Income Portfolio
Fidelity Investments Variable Insurance Products Fund - Growth Portfolio
Fidelity Investments Variable Insurance Products Fund - Overseas Portfolio
Fidelity Investments Variable Insurance Products Fund II - Investment Grade Bond Portfolio
Fidelity Investments Variable Insurance Products Fund II - Asset Manager Portfolio
Fidelity Investments Variable Insurance Products Fund II - Index 500 Portfolio
Fidelity Investments Variable Insurance Products Fund II - Contrafund Portfolio
3
Insurance Management Series - Corporate Bond Fund
4
CONTRACT SCHEDULE I (CONT'D)
ACCUMULATION PERIOD
SEPARATE ACCOUNT (CONT'D)
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SEPARATE ACCOUNT FUNDS Insurance Management Series - Equity Growth and Income Fund
(CONT'D): Insurance Management Series - International Stock Fund
Insurance Management Series - U.S. Government Bond Fund
Insurance Management Series - Utility Fund
Janus Aspen Series - Aggressive Growth Portfolio
Janus Aspen Series - Balanced Portfolio
Janus Aspen Series - Flexible Income Portfolio
Janus Aspen Series - Growth Portfolio
Janus Aspen Series - Short-Term Bond Portfolio
Janus Aspen Series - Worldwide Growth Portfolio
Lexington Emerging Markets Fund
Lexington Natural Resources Trust
TCI Portfolios, Inc. - TCI International
TCI Portfolios, Inc. - TCI Growth
TCI Portfolios, Inc. - TCI Balanced
ALIAC GUARANTEED ACCOUNT (AG ACCOUNT)
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MINIMUM GUARANTEED 3.0%.
INTEREST RATE (effective
annual rate of return):
SEPARATE ACCOUNT AND AG ACCOUNT
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MINIMUM INITIAL PURCHASE $5,000
PAYMENT:
MAXIMUM INITIAL PURCHASE $500,000
PAYMENT WITHOUT HOME
OFFICE APPROVAL:
TRANSFERS: An unlimited number of Transfers may be made during the Accumulation Period. Aetna allows 12 free
Transfers in any calendar year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
MINIMUM TRANSFER $500
AMOUNT:
MAINTENANCE FEE: The annual Maintenance Fee is $30. If the Current Value is $50,000 or more on the date the
Maintenance Fee is to be deducted, the Maintenance Fee is $0.
5
CONTRACT SCHEDULE I (CONT'D)
ACCUMULATION PERIOD
SEPARATE ACCOUNT AND AG ACCOUNT (CONT'D)
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SURRENDER FEE: For each surrender, the Surrender Fee will be determined as follows:
Surrender Fee
Length of Time from Deposit of Net (as percentage of
Purchase Payment (Years) Net Purchase Payment)
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
SYSTEMATIC WITHDRAWAL The specified payment or specified percentage may not be greater than 10% of the Current Value at
OPTION (SWO) time of election.
PERCENTAGE:
SWO MINIMUM INITIAL $25,000
CURRENT VALUE:
SWO MINIMUM PAYMENT $500
AMOUNT:
ESTATE CONSERVATION $25,000
OPTION (ECO) MINIMUM
INITIAL CURRENT VALUE:
See 1. GENERAL DEFINITIONS for explanations.
6
CONTRACT SCHEDULE I
ACCUMULATION PERIOD
SEPARATE ACCOUNT
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SEPARATE ACCOUNT: Variable Annuity Account B
CHARGES TO SEPARATE A daily charge is deducted from any portion of the Current Value allocated to the Separate Account.
ACCOUNT: The deduction is the daily equivalent of the annual effective percentage shown in the following
chart.
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
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Total Separate Account
Charges 1.40%
SEPARATE ACCOUNT FUNDS: During the Accumulation Period the Funds available with this Contract are:
Aetna Variable Fund
Aetna Income Shares
Aetna Variable Encore Fund
Aetna Investment Advisers Fund, Inc.
Aetna Ascent Variable Portfolio
Aetna Crossroads Variable Portfolio
Aetna Legacy Variable Portfolio
Janus Aspen Series - Aggressive Growth Portfolio
Janus Aspen Series - Flexible Income Portfolio
Janus Aspen Series - Growth Portfolio
Lexington Emerging Markets Fund
Lexington Natural Resources Trust
TCI Portfolios, Inc. - TCI International
TCI Portfolios, Inc. - TCI Growth
TCI Portfolios, Inc. - TCI Balanced
ALIAC GUARANTEED ACCOUNT (AG ACCOUNT)
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MINIMUM GUARANTEED 3.0%.
INTEREST RATE (effective
annual rate of return):
7
CONTRACT SCHEDULE I (CONT'D)
ACCUMULATION PERIOD
SEPARATE ACCOUNT AND AG ACCOUNT
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MINIMUM INITIAL PURCHASE $5,000
PAYMENT:
MAXIMUM INITIAL PURCHASE $500,000
PAYMENT WITHOUT HOME
OFFICE APPROVAL:
TRANSFERS: An unlimited number of Transfers may be made during the Accumulation Period. Aetna allows 12 free
Transfers in any calendar year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
MINIMUM TRANSFER $500
AMOUNT:
MAINTENANCE FEE: The annual Maintenance Fee is $30. If the Current Value is $50,000 or more on the date the
Maintenance Fee is to be deducted, the Maintenance Fee is $0.
SURRENDER FEE: For each surrender, the Surrender Fee will be determined as follows:
Surrender Fee
Length of Time from Deposit of Net (as percentage of
Purchase Payment (Years) Net Purchase Payment)
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
SYSTEMATIC WITHDRAWAL The specified payment or specified percentage may not be greater than 10% of the Current Value at
OPTION (SWO) time ofelection.
PERCENTAGE:
SWO MINIMUM INITIAL $25,000
CURRENT VALUE:
8
CONTRACT SCHEDULE I (CONT'D)
ACCUMULATION PERIOD
SEPARATE ACCOUNT AND AG ACCOUNT (CONT'D)
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SWO MINIMUM PAYMENT $500
AMOUNT:
ESTATE CONSERVATION $25,000
OPTION (ECO) MINIMUM
INITIAL CURRENT VALUE:
See 1. GENERAL DEFINITIONS for explanations.
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CONTRACT SCHEDULE I
ACCUMULATION PERIOD
SEPARATE ACCOUNT
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SEPARATE ACCOUNT: Variable Annuity Account B
CHARGES TO SEPARATE A daily charge is deducted from any portion of the Current Value allocated to the Separate Account.
ACCOUNT: The deduction is the daily equivalent of the annual effective percentage shown in the following
chart.
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
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Total Separate Account
Charges 1.40%
SEPARATE ACCOUNT FUNDS: During the Accumulation Period the Funds available with this Contract are:
Insurance Management Series - Equity Growth and Income Fund
Insurance Management Series - Utility Fund
Insurance Management Series - Prime Money Fund
Insurance Management Series - U.S. Government Bond Fund
Insurance Management Series - Corporate Bond Fund
Insurance Management Series - International Stock Fund
ALIAC GUARANTEED ACCOUNT (AG ACCOUNT)
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MINIMUM GUARANTEED 3.0%.
INTEREST RATE (effective
annual rate of return):
10
CONTRACT SCHEDULE I (CONT'D)
ACCUMULATION PERIOD
SEPARATE ACCOUNT AND AG ACCOUNT
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MINIMUM INITIAL PURCHASE $5,000
PAYMENT:
MAXIMUM INITIAL PURCHASE $500,000
PAYMENT WITHOUT HOME
OFFICE APPROVAL:
TRANSFERS: An unlimited number of Transfers may be made during the Accumulation Period. Aetna allows 12 free
Transfers in any calendar year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
MINIMUM TRANSFER $500
AMOUNT:
MAINTENANCE FEE: The annual Maintenance Fee is $30. If the Current Value is $50,000 or more on the date the
Maintenance Fee is to be deducted, the Maintenance Fee is $0.
SURRENDER FEE: For each surrender, the Surrender Fee will be determined as follows:
Surrender Fee
Length of Time from Deposit of Net (as percentage of
Purchase Payment (Years) Net Purchase Payment)
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
SYSTEMATIC WITHDRAWAL The specified payment or specified percentage may not be greater than 10% of the Current Value at
OPTION (SWO) time of election.
PERCENTAGE:
SWO MINIMUM INITIAL $25,000
CURRENT VALUE:
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CONTRACT SCHEDULE I (CONT'D)
ACCUMULATION PERIOD
SEPARATE ACCOUNT AND AG ACCOUNT (CONT'D)
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SWO MINIMUM PAYMENT $500
AMOUNT:
ESTATE CONSERVATION $25,000
OPTION (ECO) MINIMUM
INITIAL CURRENT VALUE:
See 1. GENERAL DEFINITIONS for explanations.
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CONTRACT SCHEDULE II
ANNUITY PERIOD
SEPARATE ACCOUNT
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CHARGES TO SEPARATE A daily charge at an annual effective rate of 1.25% for Annuity mortality and expense risks. The
ACCOUNT: administrative charge is established upon election of an Annuity option. This charge will not exceed
0.25%.
VARIABLE ANNUITY ASSUMED If a Variable Annuity is chosen, an assumed annual net return rate of 5.0% may be elected. If 5.0%
ANNUAL NET RETURN RATE: is not elected, Aetna will use an assumed annual net return rate of 3.5%.
The assumed annual net return rate factor for 3.5% per year is 0.9999058.
The assumed annual net return rate factor for 5.0% per year is 0.9998663.
If the portion of a Variable Annuity payment for any Fund is not to decrease, the Annuity return
factor under the Separate Account for that Fund must be:
(a) 4.75% on an annual basis plus an annual return of up to 0.25% to offset the administrative
charge set at the time Annuity payments commence if an assumed annual net return rate of 3.5% is
chosen; or
(b) 6.25% on an annual basis plus an annual return of up to 0.25% to offset the administrative
charge set at the time Annuity payments commence, if an assumed annual net return rate of 5% is
chosen.
FIXED ANNUITY
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MINIMUM GUARANTEED 3.0%
INTEREST RATE (effective
annual rate of return):
See 1. GENERAL DEFINITIONS for explanations.
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TABLE OF CONTENTS
I. GENERAL DEFINITIONS
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PAGE
1.01 Account.......................................................................10
1.02 Accumulation Period...........................................................10
1.03 Adjusted Current Value........................................................10
1.04 ALIAC Guaranteed Account (AG Account).........................................10
1.05 Annuitant.....................................................................10
1.06 Annuity.......................................................................10
1.07 Beneficiary...................................................................10
1.08 Certificate Holder............................................................10
1.09 Code..........................................................................10
1.10 Contract......................................................................10
1.11 Contract Holder...............................................................10
1.12 Current Value.................................................................10
1.13 Deposit Period................................................................11
1.14 Dollar Cost Averaging.........................................................11
1.15 Fixed Annuity.................................................................11
1.16 Fund(s).......................................................................11
1.17 General Account...............................................................11
1.18 Guaranteed Rate - AG Account..................................................11
1.19 Guaranteed Term...............................................................11
1.20 Guaranteed Term(s) Groups.....................................................11
1.21 Maintenance Fee...............................................................11
1.22 Market Value Adjustment (MVA).................................................12
1.23 Matured Term Value............................................................12
1.24 Matured Term Value Transfer...................................................12
1.25 Maturity Date.................................................................12
1.26 Net Purchase Payment..........................................................12
1.27 Nonunitized Separate Account..................................................12
1.28 Purchase Payment..............................................................12
1.29 Reinvestment..................................................................13
1.30 Separate Account..............................................................13
1.31 Surrender Value...............................................................13
1.32 Transfers.....................................................................13
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PAGE
1.33 Valuation Period (Period).....................................................13
1.34 Variable Annuity..............................................................13
II. GENERAL PROVISIONS
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2.01 Change of Contract............................................................13
2.02 Change of Fund(s).............................................................14
2.03 Nonparticipating Contract.....................................................14
2.04 Payments and Elections........................................................15
2.05 State Laws....................................................................15
2.06 Control of Contract...........................................................15
2.07 Designation of Beneficiary....................................................15
2.08 Misstatements and Adjustments.................................................15
2.09 Incontestability..............................................................15
2.10 Individual Certificates.......................................................16
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
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3.01 Net Purchase Payment..........................................................16
3.02 Certificate Holder's Account..................................................16
3.03 Fund(s) Record Units -- Separate Account......................................16
3.04 Net Return Factor(s) -- Separate Account......................................16
3.05 Fund Record Unit Value -- Separate Account....................................17
3.06 Market Value Adjustment.......................................................17
3.07 Transfer of Current Value from the Funds or AG Account........................18
3.08 Reports.......................................................................19
3.09 Notice to the Certificate Holder..............................................19
3.10 Loans.........................................................................19
3.11 Distribution Options..........................................................19
3.12 Death Benefit Amount..........................................................23
3.13 Death Benefit Options Available to Beneficiary................................24
3.14 Required Distribution to Certificate Holder/Beneficiary.......................25
3.15 Liquidation of Surrender Value................................................26
3.16 Surrender Fee.................................................................26
3.17 Payment of Surrender Value....................................................27
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IV. ANNUITY PROVISIONS
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PAGE
4.01 Choices to be Made............................................................27
4.02 Annuity Payments to Certificate Holder........................................27
4.03 Annuity Payments to Beneficiary...............................................28
4.04 Terms of Annuity Options......................................................28
4.05 Death of Annuitant/Beneficiary................................................29
4.06 Fund(s) Annuity Units -- Separate Account.....................................30
4.07 Fund Annuity Unit Value -- Separate Account...................................30
4.08 Annuity Net Return Factor(s) -- Separate Account..............................30
4.09 Annuity Options...............................................................31
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I. GENERAL DEFINITIONS
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1.01 ACCOUNT: A record established for each Certificate Holder to maintain the value of
the Net Purchase Payment held on his/her behalf during the Accumulation
Period.
1.02 ACCUMULATION PERIOD: The period during which the Net Purchase Payment is applied to the Contract
to provide future Annuity payment(s).
1.03 ADJUSTED CURRENT VALUE: The Current Value of a Contract plus or minus any aggregate AG Account MVA,
if applicable. (See 1.21)
1.04 ALIAC GUARANTEED An accumulation option where Aetna guarantees stipulated rate(s) of
ACCOUNT interest for specified periods of time. All assets of Aetna, including
(AG ACCOUNT): amounts in the Nonunitized Separate Account, are available to meet the
guarantees under the AG Account.
1.05 ANNUITANT: The person whose life is measured for purposes of the guaranteed death
benefit and the duration of Annuity payments under this Contract. The
Contract Holder and Annuitant must be the same person under this Contract.
1.06 ANNUITY: Payment of an income:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.07 BENEFICIARY: The individual or estate entitled to receive any payment from the Contract
upon the death of the Annuitant.
1.08 CERTIFICATE HOLDER: A person who purchases an interest in this Contract as evidenced by a
certificate.
1.09 CODE: The Internal Revenue Code of 1986, as it may be amended from time to time.
1.10 CONTRACT: This agreement between Aetna and the Contract Holder to provide an annuity
which qualifies as an Individual Retirement Annuity under Code Section
408(b) for the exclusive benefit of the Contract Holder or his or her
Beneficiary(ies).
1.11 CONTRACT HOLDER: The entity to which a group Contract is issued.
1.12 CURRENT VALUE: As of the most recent Valuation Period, the Net Purchase Payment and any
additional amount deposited pursuant to 3.12 plus any interest added to the
portion allocated to the AG Account; and plus or minus the investment
experience of the portion allocated to the Funds since deposit; less all
Maintenance Fees deducted, any amounts surrendered and any amounts applied
to an Annuity.
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1.13 DEPOSIT PERIOD: A calendar week, a calendar month, a calendar quarter, or any other period
of time specified by Aetna during which the Net Purchase Payment, Transfers
or Reinvestments are accepted into the AG Account for one or more
Guaranteed Terms. Aetna reserves the right to extend the Deposit Period.
1.14 DOLLAR COST AVERAGING: A program that permits the Certificate Holder to systematically transfer
amounts from any of the Funds and the one-year AG Account Guaranteed Term
to any of the Funds by completing the appropriate section of the enrollment
form or a Dollar Cost Averaging election form.
1.15 FIXED ANNUITY: An Annuity with payments that do not vary in amount.
1.16 FUND(S): The open-end management investment companies (mutual funds) in which the
Separate Account invests (see Contract Schedule I for the specific fund
options).
1.17 GENERAL ACCOUNT: The account holding the assets of Aetna, other than those assets held in
Aetna's separate accounts.
1.18 GUARANTEED RATE -- Aetna will declare the interest rate applicable to a specific Guaranteed
AG ACCOUNT: Term at the start of the Deposit Period for that Guaranteed Term. The rate
is guaranteed by Aetna for that Deposit Period and the ensuing Guaranteed
Term. The Guaranteed Rate is an annual effective yield. That is, interest
is credited daily at a rate that will produce the Guaranteed Rate over the
period of a year. No Guaranteed Rate will ever be less than the Minimum
Guaranteed Rate shown on Contract Schedule I.
1.19 GUARANTEED TERM: The period of time for which the AG Account Guaranteed Rate is guaranteed
on the Net Purchase Payment, Transfers and Reinvestments made into a
current Deposit Period for the AG Account. Such period begins on the day
following the close of the Deposit Period and ends on the designated
Maturity Date. Guaranteed Terms are offered at Aetna's discretion for
various lengths of time ranging up to and including ten years.
During a Deposit Period, Aetna may make available any number of Guaranteed
Terms. The Contract Holder may allocate the Net Purchase Payment and
Transfers into any or all of the available Guaranteed Terms.
1.20 GUARANTEED TERM(S) All AG Account Guaranteed Term(s) with the same length of time from the
GROUPS: close of the Deposit Period until the designated Maturity Date.
1.21 MAINTENANCE FEE: The Maintenance Fee (see Contract Schedule I) will be deducted during the
Accumulation Period from the Current Value on each anniversary of the date
the Contract is established and upon the surrender of the entire Contract.
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1.22 MARKET VALUE ADJUSTMENT An adjustment that may apply to an amount withdrawn or transferred from an
(MVA): AG Account Guaranteed Term prior to the end of that Guaranteed Term. The
adjustment reflects the change in the value of the investment due to
changes in interest rates since the date of deposit and is computed using
the formula given in 3.06. The adjustment is expressed as a percentage of
each dollar being withdrawn.
1.23 MATURED TERM VALUE: The amount payable on an AG Account Guaranteed Term's Maturity Date.
1.24 MATURED TERM VALUE During the calendar month following an AG Account Maturity Date, the
TRANSFER: Certificate Holder may notify Aetna's Home Office in writing to Transfer or
surrender all or part of the Matured Term Value, plus interest at the new
Guaranteed Rate accrued thereon, from the AG Account without an MVA. This
provision only applies to the first such written request received from the
Certificate Holder during this period for any Matured Term Value.
1.25 MATURITY DATE: The last day of an AG Account Guaranteed Term.
1.26 NET PURCHASE PAYMENT: The Purchase Payment less premium taxes, as applicable.
1.27 NONUNITIZED SEPARATE A separate account set up by Aetna under Title 38, Section 38a-433, of the
ACCOUNT: Connecticut General Statutes, that holds assets for AG Account Terms. There
are no discrete units for this Account. The Certificate Holder does not
participate in the investment gain or loss from the assets held in the
Nonunitized Separate Account. Such gain or loss is borne entirely by Aetna.
These assets may be chargeable with liabilities arising out of any other
business of Aetna.
1.28 PURCHASE PAYMENT: The cash payment accepted by Aetna at its Home Office which is a rollover
amount under Code Section 402(c), 403(a)(4), 403(b)(8), or 408(d)(3). Aetna
may require verification that a rollover amount qualifies as such under the
Code. Payments to Simplified Employee Pension plans and annual deductible
and nondeductible contributions to Individual Retirement Annuities are not
accepted under this Contract.
Aetna reserves the right to refuse to accept any Purchase Payment at any
time for any reason. No advance notice will be given to the Contract Holder
or Certificate Holder.
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1.29 REINVESTMENT: Aetna will mail a notice to the Contract Holder at least 18 calendar days
and not more than 45 days before a Guaranteed Term's Maturity Date. This
notice will contain the Terms available during current Deposit Periods with
their Guaranteed Rate, and projected Matured Term Value. If no specific
direction is given by the Certificate Holder prior to the Maturity Date,
each Matured Term Value will be reinvested in the current Deposit Period
for a Guaranteed Term of the same duration. If a Guaranteed Term of the
same duration is unavailable, each Matured Term Value will automatically be
reinvested in the current Deposit Period for the next shortest Guaranteed
Term available. If no shorter Guaranteed Term is available, the next longer
Guaranteed Term will be used. Aetna will mail a confirmation statement to
the Certificate Holder the next business day after the Maturity Date. This
notice will sate the Guaranteed Term and Guaranteed Rate which will apply
to the reinvested Matured Term Value.
1.30 SEPARATE ACCOUNT: A separate account that buys and holds shares of the Fund(s). Income, gains
or losses, realized or unrealized, are credited or charged to the Separate
Account without regard to other income, gains or losses of Aetna. Aetna
owns the assets held in the Separate Account and is not a trustee as to
such amounts. This Separate Account generally is not guaranteed and is held
at market value. The assets of the Separate Account, to the extent of
reserves and other contract liabilities of the Account, shall not be
charged with other Aetna liabilities.
1.31 SURRENDER VALUE: The amount payable by Aetna upon the surrender of any portion of an
Account.
1.32 TRANSFERS: The movement of invested amounts among the available Fund(s) and the AG
Account under this Contract during the Accumulation Period.
1.33 VALUATION PERIOD (PERIOD): The period of time for which a Fund determines its net asset value, usually
from 4:15 p.m. Eastern time each day the New York Stock Exchange is open
until 4:15 p.m. the next such day, or such other day that one or more of
the Funds determines its net asset value.
1.34 VARIABLE ANNUITY: An Annuity with payments that vary with the net investment results of one
or more Funds held under the Separate Account.
II. GENERAL PROVISIONS
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2.01 CHANGE OF CONTRACT: Only an authorized officer of Aetna may change the terms of this Contract.
Aetna will notify the Contract Holder in writing at least 30 days before
the effective date of any change. Any change will not affect the amount or
terms of any Annuity which begins before the change.
20
2.01 CHANGE OF CONTRACT Aetna may make any change that affects the AG Account Market Value
(CONT'D): Adjustment (3.06) with at least 30 days advance written notice to the
Contract Holder and the Certificate Holder. Any such change shall become
effective for any new Term and will be applicable only if it is more
favorable to the Contract Holder and/or the Certificate Holder.
Any change that affects any of the following under this Contract will not
apply to Accounts in existence before the effective date of the change:
(a) Net Purchase Payment (1.26)
(b) AG Account Guaranteed Rate (1.04)
(c) Net Return Factor(s) -- Separate Account (3.04)
(d) Current Value (1.12)
(e) Surrender Value (1.31)
(f) Fund(s) Annuity Unit Value -- Separate Account (4.07 )
(g) Annuity Options (4.09)
(h) Fixed Annuity Guaranteed Interest Rates (4.01)
(i) Transfers (1.32)
This Contract may be changed as deemed necessary by Aetna to comply with
federal or state law. Any such change is subject to the prior approval of
the New York Insurance Department.
2.02 CHANGE OF FUND(S): Aetna, or the Separate Account, may:
(a) Change the Fund(s) which may be invested in by the Separate Account;
and
(b) Replace the shares of any Fund(s) held in the Separate Account with
shares of any other Fund(s).
Changes must be:
(a) Approved by a majority vote of the shares in the Separate Account with
respect to the Fund(s) whose shares are to be replaced; or
(b) Deemed necessary by Aetna under the Investment Company Act of 1940; or
(c) Deemed necessary by Aetna to accomplish the purpose of the Separate
Account.
Such changes are subject to the approval of the Superintendent of the New
York Insurance Department and Aetna will notify the Contract Holder of such
change.
2.03 NONPARTICIPATING CONTRACT: The Contract Holder, Certificate Holders or Beneficiaries will not have a
right to share in the earnings of Aetna.
21
2.04 PAYMENTS AND ELECTIONS: While the Certificate Holder is living, Aetna will pay the Certificate
Holder any Annuity payments as and when due. After the Certificate Holder's
death, any Annuity payments required to be made will be paid in accordance
with 4.05. Aetna will determine other payments and/or elections as of the
end of the Valuation Period in which the request is received at its Home
Office. Such payments will be made within 7 calendar days of receipt at its
Home Office of a written claim for payment which is in good order, except
as provided in 3.17.
2.05 STATE LAWS: The Contract and the Certificates comply with the laws of the state in
which they are delivered. Any surrender, death, or Annuity payments are
equal to or greater than the minimum required by such laws. Annuity tables
for legal reserve valuation shall be as required by state law. Such tables
may be different from Annuity tables used to determine Annuity payments.
2.06 CONTROL OF CONTRACT: This is a Contract between the Contract Holder and Aetna. The Contract
Holder has title to the Contract. Contract Holder rights are limited to
accepting and rejecting Contract modifications.
Each Certificate Holder has a nonforfeitable right to all amounts held in
his or her Account. Each Certificate Holder may make any choices allowed by
this contract for his or her Account. Choices made under this Contract must
be in writing. Until receipt of such choices at Aetna's Home Office, Aetna
may rely on any previous choices made.
The Contract is not subject to the claims of any creditors of the Contract
Holder or the Certificate Holder except to the extent permitted by law.
The Account may not be attached, alienated, or subject to the claims of
creditors of the Certificate Holder except to the extent permitted by law.
This Account is nontransferable by the Certificate Holder. The Certificate
Holder may not assign, transfer, pledge or use as collateral his or her
rights under the Contract.
2.07 DESIGNATION OF Each Certificate Holder shall name his or her Beneficiary. The Beneficiary
BENEFICIARY: may be changed at any time. Changes to a Beneficiary must be submitted to
Aetna's Home Office in writing and will not be effective until accepted by
Aetna.
2.08 MISSTATEMENTS AND If Aetna finds the age or sex of any Annuitant to be misstated, the amount
ADJUSTMENTS: payable under the Contract shall be adjusted for the correct age or sex;
the amount of any underpayment or overpayment, with interest at six per
cent per year, shall be credited to, or changed against, the current or
next succeeding payment or payments to be made by Aetna under the Contract.
2.09 INCONTESTABILITY: Aetna cannot cancel the Contract because of any error of fact on the
application. Aetna cannot cancel an account because of any error of fact on
the enrollment form.
22
2.10 INDIVIDUAL CERTIFICATES: Aetna shall issue a certificate to each Certificate Holder. The certificate
will summarize certain provisions of the contract. Certificates are for
information only and are not a part of the Contract.
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
-------------------------------------------------------------------------------------------------------------
3.01 NET PURCHASE PAYMENT: This amount is the actual Purchase Payment less any premium tax. Aetna will
generally deduct the premium tax when Annuity benefits are elected (see
Part IV). If Aetna determines that under applicable state law, it must pay
a premium tax when the Purchase Payment is received or at any other time,
it will deduct the tax at that time.
The Net Purchase Payment will be credited among:
(a) The current Deposit Period(s) for Guaranteed Terms under the AG
Account; and
(b) The Fund(s) in which the Separate Account invests.
The Certificate Holder shall tell Aetna the allocation percentage to be
applied to the current Deposit Period for each of the available Guaranteed
Terms in the AG Account and/or each Fund.
3.02 CERTIFICATE HOLDER'S Aetna will maintain an Account for each Certificate Holder.
ACCOUNT:
Aetna will declare from time to time the acceptability and the minimum
amount for additional Purchase Payments. Each Account will be subject to
the Terms and conditions of the Contract in effect at the time the first
Purchase Payment for such account is applied to the Contract except for
changes made to comply with federal or state law.
3.03 FUND(S) RECORD UNITS -- The portion of the Net Purchase Payment applied to each Fund under the
SEPARATE ACCOUNT: Separate Account will determine the number of Fund record units for that
Fund. This number is equal to the portion of the Net Purchase Payment
applied to each Fund divided by the Fund record unit value (see 3.05) for
the Valuation Period in which the Purchase Payment is received in good
order at Aetna's Home Office.
3.04 NET RETURN FACTOR(S) -- The net return factor(s) are used to compute all Separate account record
SEPARATE ACCOUNT: units for any Fund.
The net return factor for each Fund is equal to 1.0000000 plus the net
return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by the Separate Account at
the end of the Valuation Period; minus
(b) The value of the shares of the Fund held by the Separate Account at
the start of the Valuation Period; plus or minus
23
3.04 NET RETURN FACTOR(S) -- (c) Taxes (or reserves for taxes) on the Separate Account (if any); divided by
SEPARATE ACCOUNT (d) The total value of the Fund(s) record units and Fund(s) Annuity units of the Separate
(CONT'D): Account at the start of the Valuation Period; minus
(e) A daily Separate Account charge at an annual rate as shown on Contract Schedule I for
mortality and expense risks, which may include profit; and a daily administrative charge.
A net return rate may be more or less than 0%. The value of a share of the Fund is equal to the
net assets of the Fund divided by the number of shares outstanding.
3.05 FUND RECORD UNIT A Fund record unit value is computed by multiplying the net return factors for the current
VALUE -- SEPARATE ACCOUNT: Valuation Period by the Fund record unit value for the previous Period. The dollar value of Fund
record units, Separate Account assets, and Variable Annuity payments may go up or down due to
investment gain or loss.
3.06 MARKET VALUE ADJUSTMENT: Except as noted below, there will be an MVA for a withdrawal from the AG Account before the end
of a Guaranteed Term when the withdrawal is due to:
(a) A Transfer; except for transfers from the one-year AG Account Guaranteed Term under the
Dollar Cost Averaging program or, as specified in 1.24, AG Account Matured Term Value
Transfer;
(b) A full or partial surrender (including a 15% free withdrawal under 3.16), except for a
partial withdrawal under the Systematic Withdrawal Option (see 3.11); or
(c) An election of Annuity option 2 (see 4.09).
Full and partial surrenders and Transfers made within six months after the date of the
Annuitant's death will be the greater of:
(a) The aggregate MVA amount which is the sum of all market value adjusted amounts calculated
due to a withdrawal of amounts. This total may be greater or less than the Current Value of
those amounts; or
(b) The applicable portion of the Current Value in the AG Account.
After the six-month period, the surrender or Transfer will be the aggregate MVA amount, which may
be greater or less than the Current Value of those amounts.
The greater of the aggregate MVA amount or the applicable portion of the Current Value applies to
amounts withdrawn from the AG Account on account of an election of Annuity options 3 or 4 (see
4.09).
24
3.06 MARKET VALUE ADJUSTMENT Market value adjusted amounts will be equal to the amount withdrawn
(CONT'D): multiplied by the following ratio:
x
---
365
(1 + i)
-----------
x
---
365
---
(1 + j)
Where:
i is the Deposit Period Yield
j is the Current Yield
x is the number of days remaining, (computed from Wednesday of
the week of withdrawal) in the Guaranteed Term.
The Deposit Period Yield will be determined as follows:
(a) At the close of the last business day of each week of the Deposit
Period, a yield will be computed as the average of the yields on that
day of U.S. Treasury Notes which mature in the last three months of
the Guaranteed Term.
(b) The Deposit Period Yield is the average of those yields for the
Deposit Period. If withdrawal is made before the close of the Deposit
Period, it is the average of those yields on each week preceding
withdrawal.
The Current Yield is the average of the yields on the last business day of
the week preceding withdrawal on the same U.S. Treasury Notes included in
the Deposit Period Yield.
In the event that no U.S. Treasury Notes which mature in the last three
months of the Guaranteed Term exist, Aetna reserves the right to use the
U.S. Treasury Notes that mature in the following quarter.
If. U.S. Treasury Notes are no longer available, a suitable replacement
index, subject to approval of the Superintendent of the New York Insurance
Department, would then be utilized.
A detailed description of the MVA has been filed with the Superintendent of
the New York Insurance Department.
3.07 TRANSFER OF CURRENT VALUE Before an Annuity option is elected, all or any portion of the Adjusted
FROM THE FUNDS OR Current Value of the Contract may be transferred from any Fund or
AG ACCOUNT: Guaranteed Term of the AG Account:
(a) To any other Fund; or
(b) To any Guaranteed Term of the AG Account available in the current
Deposit Period.
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3.07 TRANSFER OF CURRENT VALUE Transfer requests can be submitted as a percentage or as a dollar amount.
FROM THE FUNDS OR The minimum transfer amount is shown on Contract Schedule I. Within a
AG ACCOUNT: Guaranteed Term Group, the amount to be surrendered or transferred will be
(CONT'D): withdrawn first from the oldest Deposit Period, then from the next oldest,
and so on until the amount requested is satisfied.
The Certificate Holder may make an unlimited number of Transfers during the
Accumulation Period. The number of free Transfers allowed by Aetna is shown
on Contract Schedule I. Additional Transfers may be subject to a Transfer
fee as shown on Contract Schedule I.
Amounts transferred from the AG Account under the Dollar Cost Averaging
program, or amounts transferred as a Matured Term Value on or within the
calendar month of the Term's Maturity Date, do not count against the annual
Transfer limit.
Amounts applied to Guaranteed Terms of the AG Account may not be
transferred to the Funds or to another Guaranteed Term during the Deposit
Period or for 90 days after the close of the Deposit Period except for (1)
a Matured Term Value(s) during the calendar month following the Term's
Maturity Date and (2) amounts transferred from the one-year AG Account
Guaranteed Term under the Dollar Cost Averaging program.
3.08 REPORTS: Aetna, as issuer of the Contract, will make any reports required of it by
federal or state law. Aetna will furnish annual calendar year reports
concerning the status of the annuity.
3.09 NOTICE TO THE CONTRACT The Contract Holder will receive quarterly statements from
HOLDER: Aetna of:
(a) The value of any amounts held in:
(1) The AG Account; and
(2) The Fund(s) under the Separate Account.
(b) The number of any Fund(s) record units; and
(c) The Fund(s) record unit value.
Such number or values will be as of a specific date no more than 60 days
before the date of the notice.
3.10 LOANS: Loans are not available under this Contract.
3.11 DISTRIBUTION OPTIONS: The following distribution options may be elected by the Certificate Holder
during the Accumulation Period.
(A) ESTATE CONSERVATION OPTION (ECO) - A distribution option under which a
portion of the Current Value will automatically be surrendered and
distributed each year. ECO payments will be calculated based on the
Account's full Current Value. The distributed amount will be withdrawn
pro rata from each investment option used under the Account. A
Surrender Fee will not be deducted from any portion of the Current
Value which is paid as a distribution under ECO. Certificate Holders
should consult their tax advisers prior to requesting this
distribution option. Aetna will not be responsible for any adverse tax
consequences due to receiving ECO payments.
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3.11 DISTRIBUTION OPTIONS (1) Amount of Distribution: Each year that ECO is in effect, Aetna
(CONT'D): will calculate and distribute an amount equal to the minimum
required distribution under the Code. The annual distribution
will be determined by dividing the Current Value as of December
31 of the year prior to the payment year, by a life expectancy
factor.
The Certificate Holder, or spouse Beneficiary if ECO is elected
after the Certificate Holder's death, shall elect either single
life expectancy or joint life expectancy.
Life expectancy is computed by use of the expected return
multiples in Tables V and VI of section 1.72-9 of the Income Tax
Regulations.
Joint life expectancy can only be elected based on the joint life
expectancy of the Certificate Holder and his or her Beneficiary.
If the Certificate Holder makes any changes in the Beneficiary
designation under the Certificate, ECO distributions after the
change will be recalculated as required by IRS regulations.
Life expectancies shall be recalculated annually. If the joint
life expectancy is elected with a non-spouse Beneficiary, the
life expectancy of the non-spouse Beneficiary must not be
recalculated. Instead, the life expectancy will be calculated
using the attained age of the Beneficiary during the calendar
year in which the Certificate Holder attains age 70 1/2, and
payments for subsequent years shall be recalculated based on such
life expectancy reduced by one for each calendar year which has
elapsed since the calendar year life expectancy was first
calculated.
If joint life expectancy is elected with a spouse Beneficiary, at
the death of either, the payments can continue and will be
calculated based solely on the survivor's life expectancy. If
joint life expectancy is elected with a non-spouse Beneficiary
and the non-spouse Beneficiary dies first, payments will continue
based on the joint life expectancy.
If a single life expectancy is elected and the Certificate Holder
dies, or if a joint life expectancy is elected and the survivor
dies, the death benefits determined under Section 3.12 will be
paid to the Beneficiary in a lump sum not later than December 31
following the year of death.
(2) Minimum Initial Current Value: The ECO Minimum Initial Account
Current Value is shown on Contract Schedule I. If after election
of this option, the Current Value is
27
insufficient to make a scheduled ECO payment, Aetna will
distribute the entire Account balance.
28
3.11 DISTRIBUTION OPTIONS (3) Date of Distribution: Distribution will be made annually on the 15th of any month or
(CONT'D) such other date as Aetna may designate or allow. The latest allowable payment date is
the month of the Certificate Holder's 85th birthday. The Certificate Holder shall
specify an initial distribution month, not earlier than the calendar year in which the
Certificate Holder attains age 70 1/2, or such later time when distributions must
commence as specified under the Code, whichever is appropriate. For a spouse
Beneficiary, the earliest date is the date of the Certificate Holder's death.
(4) Election and Revocation: ECO may be elected by the Certificate
Holder by submitting a written request to Aetna at its Home
Office.
Once elected, this option may be revoked by the Certificate
Holder, or spouse Beneficiary if elected after the Contract
Holder's death, by submitting a written request to Aetna at its
Home Office. Any revocation will apply only to amounts not yet
paid. The Certificate Holder assumes responsibility for
compliance with minimum distribution rules under the Code. ECO
may be elected only once by the Certificate Holder or by a spouse
Beneficiary.
(B) SYSTEMATIC WITHDRAWAL OPTION (SWO): A distribution option under which
a portion of the Account's Current Value will automatically be
surrendered and distributed each year. SWO payments will be calculated
based on the Account's full Current Value. The distributed amount will
be withdrawn pro rata from each investment option used under the
Account. A Surrender Fee will not be deducted from any portion of the
Current Value which is paid as a distribution under SWO. Certificate
Holders should consult their tax advisers prior to requesting this
distribution option. Aetna will not be responsible for any adverse tax
consequences due to receiving SWO payments.
(1) Amount of Distribution: The Certificate Holder may elect one of
the three payment methods described below.
(i) Specified Payment: Payments of a designated dollar amount.
The annual amount may not be greater than the percentage of
the Account's Current Value at time of election as shown on
Contract Schedule I. This annual dollar amount will remain
constant. The minimum SWO payment amount is shown on
Contract Schedule I; or
29
3.11 DISTRIBUTION OPTIONS (ii) Specified Period: Payments made over a period of time of at
(CONT'D) least 10 years. The maximum specified period shall be
determined under the Code minimum distribution rules. The
annual amount is calculated by dividing the Current Value
as of December 31 of the year prior to the payment year by
the number of payment years remaining; or
(iii) Specified Percentage: Payments of a designated percentage
which cannot be greater than the percentage of the Current
Value at the time of election as shown on Contract Schedule
I. The percentage may be changed by written request. Aetna
reserves the right to limit the number of times the
percentage may be changed. The annual amount is calculated
by multiplying the Current Value as of December 31 of the
year prior to the payment year by the designated
percentage. Payments will be made until the year the
Certificate Holder attains age 70 1/2 or, if elected by the
spouse Beneficiary, the year the Certificate Holder would
have attained age 70 1/2.
Under both the Specified Payment and Specified Period payment
methods, a higher amount shall be paid in any year if required
under the Code minimum distribution rules. For purposes of this
determination, life expectancy for the initial distribution year
shall be calculated based on single life expectancy Table V of
section 1.72-9 of the Income Tax Regulations. With each
subsequent year, the life expectancy will be the life expectancy
for the previous year reduced by one.
Payments upon the Certificate Holder's death will be made to the
Beneficiary in the manner described in 3.13.
(2) Minimum Initial Current Value: The Minimum Initial Current Value
required to begin SWO is shown on Contract Schedule I. If after
election of this option the Current Value is insufficient to make
a schedule SWO payment, Aetna will distribute the entire balance.
(3) Date of Distribution: The Certificate Holder shall specify the
initial distribution date. The earliest date for distribution is
the first date on which the Certificate Holder attains age 59
1/2. The latest allowable SWO payment date is the month of the
Certificate Holder's 85th birthday. As elected by the Certificate
Holder, SWO payments will be made on a monthly, quarterly, semi-
annual or annual basis. If SWO payments are made more frequently
than annually, the designated annual amount is divided by the
number of payments due each year.
30
3.11 DISTRIBUTION OPTIONS Subsequent distributions will be made on the 15th of any month or
(CONT'D): such other date as Aetna may designate or allow.
(4) Election and Revocation: SWO may be elected by the Certificate
Holder or spouse Beneficiary if elected after the Certificate
Holder's death by submitting a completed and signed election form
to Aetna's Home Office.
Once elected, this option may be revoked by the Certificate
Holder, or spouse Beneficiary if elected after the Certificate
Holder's death, by submitting a written request to Aetna at its
Home Office. Any revocation will apply only to amounts not yet
paid. SWO may be elected only once by the Certificate Holder or
by the spouse Beneficiary.
3.12 DEATH BENEFIT AMOUNT: If the Certificate Holder/Annuitant dies before Annuity payments
start, the Beneficiary is entitled to a death benefit under the
Account. The claim date is the date when proof of death and the
Beneficiary's claim are received in good order at Aetna's Home Office.
The amount of the death benefit is determined as follows:
(a) Death of Certificate Holder/Annuitant less than 85 years of age:
The guaranteed death benefit is the greatest of:
(1) The sum of all Net Purchase Payment(s) made to the Account
(as of the date of death) minus the sum of all amounts
surrendered, applied to an Annuity, or deducted from the
Account;
(2) The highest step-up value as of the date of death. A step-up
value is determined on each anniversary of the Effective
Date. Each step-up value is calculated as the Account's
Current Value on the Effective Date anniversary, increased
by the amount of any Purchase Payment(s) made, and decreased
by the sum of all amounts surrendered, deducted, and/or
applied to an Annuity option since the Effective Date
anniversary.
(3) The Account's Current Value as of the date of death.
The excess, if any, of the guaranteed death benefit value over
the Account's Current Value is determined as of the date of
death. Any excess amount will be deposited to the Account and
allocated to Aetna Variable Encore Fund as of the claim date. The
Current Value on the claim date plus any excess amount deposited
becomes the Account's Current Value.
(b) Death of Certificate Holder/Annuitant age 85 or greater: The
death benefit is the greatest of:
31
3.12 DEATH BENEFIT AMOUNT (1) The sum of all Net Purchase Payment(s) made to the account (as of
(CONT'D): the date of death) minus the sum of all amounts surrendered,
applied to an Annuity, or deducted from the Account;
(2) The highest step-up value prior to the Certificate Holder's 85th
birthday. A step-up value is determined on each anniversary of
the Effective Date. Each step-up value is calculated as the
Account's Current Value on the Effective Date anniversary,
increased by the amount of any Purchase Payment(s) made, and
decreased by the sum of all amounts surrendered, deducted, and/or
applied to an Annuity option since the Effective Date
anniversary.
(3) The Certificate Holder's Account Value as of the date of death.
The excess, if any, of the guaranteed death benefit value over the
Account's Current Value is determined as of the date of death. Any
excess amount will be deposited in the Account and allocated to the
Aetna Variable Encore Fund as of the claim date. The Current Value on
the claim date, plus any excess amount deposited, becomes the
Account's Current Value.
(c) At the death of a surviving spouse Beneficiary who continued the
Account in his or her own name, the death benefit amount is equal to
the Account's Current Value less any applicable Surrender Fee on the
amount of any Purchase Payment(s) made since the death of the
Certificate Holder.
3.13 DEATH BENEFIT OPTIONS Prior to any election, or until amounts must be otherwise distributed under
AVAILABLE TO BENEFICIARY: this section, the Current Value of the Account will be retained in the
Account. The Beneficiary has the right under the Contract to allocate or
reallocate any amount to any of the available investment options (subject
to an MVA, as applicable). The following options are available to the
Beneficiary:
(a) If the Beneficiary is the Certificate Holder's surviving spouse, the
surviving spouse may exercise all rights under the Contract and
continue in the Accumulation Period, or may elect (1), (2), or (3)
below. Under the Code, distributions from the Account are not required
until December 31st of the year in which the original Certificate
Holder would have attained age 70 1/2. The Beneficiary may elect to:
(1) Apply some or all of the Adjusted Current Value of the Account to
Annuity option 2, 3 or 4 (see 4.09);
(2) Apply some or all of the Adjusted Current Value to Annuity option
1 (see 4.09); or
32
(3) Receive, at any time, a lump sum payment equal to the Adjusted
Current Value of the Account.
33
3.13 DEATH BENEFIT OPTIONS If ECO is in effect on the Certificate Holder's date of death, the
AVAILABLE TO BENEFICIARY surviving spouse can elect to continue receiving ECO payments if a
(CONT'D): joint life expectancy was chosen. Otherwise, the surviving spouse must
receive a lump sum payment equal to the Adjusted Current Value of the
Account.
If SWO is in effect and the Certificate Holder dies before the
required beginning date for minimum distributions (see 3.13), SWO
payments will cease and the surviving spouse may claim the death
benefit in accordance with the terms of this section.
If SWO is in effect and the Certificate Holder dies after the required
beginning date for minimum distributions, the surviving spouse can
elect to continue to receive the SWO payments. Otherwise, the
surviving spouse must elect to receive a lump sum payment equal to the
Adjusted Current Value.
(b) If the Beneficiary is other than the Certificate Holder's surviving
spouse, then options (1), (2), or (3) under (a) above apply. Any
portion of the Adjusted Current Value that is not applied to Annuity
option 2, 3 or 4 by December 31st of the year following the year of
the Certificate Holder's death must be distributed by December 31st of
the year containing the fifth anniversary of the Certificate Holder's
date of death.
If ECO or SWO is in effect on the Certificate Holder's date of death,
the Beneficiary must receive an automatic and immediate lump sum
payment equal to the Adjusted Current Value.
(c) If no Beneficiary exists, a lump sum payment equal to the Adjusted
Current Value will be made to the Certificate Holder's estate.
3.14 REQUIRED DISTRIBUTION (a) Certificate Holder: The entire interest of the Certificate Holder will
TO CONTRACT HOLDER/ be distributed or begin to be distributed no later than April 1
BENEFICIARY: following the calendar year in which the Certificate Holder attains
age 70 1/2 (required beginning date), over (a) the life of the
Contract Holder, or the lives of the Contract Holder and his or her
designated Beneficiary, or (b) a period certain not extending beyond
the life expectancy of the Contract Holder, or the joint and last
survivor expectancy of the Contract Holder and his or her designated
Beneficiary. Payments must be made in periodic payments at intervals
no longer than one year. In addition, payments must be either
nonincreasing or they may increase only as provided in Q&A F-3 of
section 1.401(a)(9)-1 of the Proposed Income Tax Regulations.
All distributions made hereunder shall be made in accordance with the
requirements of section 401(a)(9) of the Code, and the regulations
thereunder, including the minimum distribution incidental benefit
requirement of section 1.401(a)(9)-2 of the Proposed Income Tax
Regulations.
34
3.14 REQUIRED DISTRIBUTION Distribution may be an Annuity as set forth in Sections 4.01 through
TO CONTRACT HOLDER/ 4.04, payments under ECO or SWO as defined in Section 3.11 or a lump
BENEFICIARY sum payment.
(CONT'D):
(b) Beneficiary: If the Certificate Holder dies after distribution of his
or her interest has begun, the remaining portion of such interest will
continue to be distributed at least as rapidly as under the method of
distribution being used prior to the Certificate Holder's death.
Distributions are considered to have begun if distributions are made
on account of the Certificate Holder's reaching his or her required
beginning date or if prior to the required beginning date
distributions irrevocably commence to the Certificate Holder over a
period permitted and in an Annuity form acceptable under section
1.401(a)(9) of the Income Tax Regulations.
3.15 LIQUIDATION OF All or any portion of the Account's Current Value may be surrendered
SURRENDER VALUE: at any time. Surrender requests can be submitted as a percentage of
the Account Current Value or as a specific dollar amount. The Net
Purchase Payment amount is withdrawn first, and then the excess value,
if any. For any partial surrender amounts are withdrawn on a pro rata
basis from the Fund(s) and/or the Guaranteed Term(s) Groups of the AG
Account in which the Current Value is invested. Within a Guaranteed
Term Group, the amount to be surrendered or transferred will be
withdrawn first from the oldest Deposit Period, then from the next
oldest, and so on until the amount requested is satisfied.
After deduction of the Maintenance Fee, if applicable, the surrendered
amounts shall be reduced by a Surrender Fee, if applicable. An MVA may
apply to amounts surrendered from the AG Account.
3.16 SURRENDER FEE: The Surrender Fee only applies to the Net Purchase Payment portion
surrendered and varies according to the elapsed time since deposit
(see Contract Schedule I).
No Surrender Fee is deducted from any portion of the Current Value
which is paid:
(a) To a Beneficiary due to the Certificate Holder's death before
Annuity payments start;
(b) As a premium for an Annuity option 2, 3 or 4 under this Contract
(see 4.09);
(c) As a distribution under the ECO or SWO provision (see 3.11);
35
3.16 SURRENDER FEE: (CONT'D) (d) At least 12 months after the date of the Purchase Payment to the
Account, in an amount equal to or less than 15% of the Current
Value. This applies to the first surrender request, partial or
full, in a calendar year. The Current Value is calculated as of
the date the surrender request is received in good order at
Aetna's Home Office. This waiver is not available to the Contract
Holder while SWO is in effect; or
(e) For a full surrender of the Account where the Current Value of
the Account is $2,500 or less and no surrenders have been taken
from the Contract within the prior 12 months.
3.17 PAYMENT OF Under certain emergency conditions, Aetna may defer payment:
SURRENDER VALUE:
(a) For a period of up to 6 months (unless not allowed by state law);
or
(b) As provided by federal law under the Investment Company Act of
1940.
IV. ANNUITY PROVISIONS
-------------------------------------------------------------------------------------------------------------
4.01 CHOICES TO BE MADE: The Certificate Holder may tell Aetna to apply any portion of the
Adjusted Current Value (minus any premium tax) for an Annuity under
option 2, 3, or 4 (see 4.09). The first Annuity payment may not be
earlier than one calendar year after the Purchase Payment nor later
than the first day of the month following the Annuitant's 85th
birthday.
When an Annuity Option is chosen, Aetna must also be told if payments
are to be made other than monthly and whether to pay:
(a) A Fixed Annuity using the AG Account;
(b) A Variable Annuity using any of the Fund(s) available under this
Contract for Annuity purposes; or
(c) A combination of (a) and (b).
If a Fixed Annuity is chosen, the Annuity purchase rate for the option
chosen reflects at least the Minimum Guaranteed Interest Rate (see
Contract Schedule II), but may reflect a higher interest rate. If a
Variable Annuity is chosen, the initial Annuity payment for the option
chosen reflects the assumed annual return rate elected. (see Contract
Schedule II).
4.02 ANNUITY PAYMENTS TO In no event may any payments to the Annuitant under an Annuity Option
CONTRACT HOLDER: extend beyond:
(a) The life of the Certificate Holder;
(b) The lives of the Certificate Holder and Beneficiary;
36
(c) Any certain period greater than the Certificate Holder's life
expectancy according to regulations under Code Section 401(a)(9),
determined as of the date payments are to begin; or
37
4.02 ANNUITY PAYMENTS TO (d) A period greater than the joint and last expectancies of the
CONTRACT HOLDER Certificate Holder and the Certificate Holder's Beneficiary
(CONT'D): according to regulations under Code Section 401(a)(9), determined
as of the date payments are to begin.
4.03 ANNUITY PAYMENTS TO In no event may payments to the Beneficiary under an Annuity option
BENEFICIARY: extend beyond:
(a) The life of the Beneficiary; or
(b) Any certain period greater than the Beneficiary's life expectancy
as determined by regulations under Code Section 401(a)(9).
4.04 TERMS OF ANNUITY (a) When payments start, the age of the Annuitant plus the number of
OPTIONS: years for which payments are guaranteed must not exceed 95.
(b) An Annuity option may not be elected if the first payment would
be less than $50 or if the total payments in a year would be less
than $250 (less if required by state law). Aetna reserves the
right to increase the minimum first Annuity payment amount and
the annual minimum annual Annuity payment amount based upon
increases reflected in the Consumer Price Index-Urban, (CPI-U)
since July 1, 1993.
(c) If a Fixed Annuity under option 2, 3 or 4 is chosen and a larger
payment would result from applying the Surrender Value or, if
greater, 95% of what the surrender would be if there were no
surrender fee, to a current Aetna single premium immediate
Annuity, Aetna will make the larger payment.
(d) For purposes of calculating the guaranteed first payment of a
Variable Annuity or the payments for a Fixed Annuity, the
Annuitant's and second Annuitant's adjusted age will be used. The
Annuitant's and second Annuitant's adjusted age is his or her age
as of the birthday closest to the Annuity commencement date
reduced by one year for Annuity commencement dates occurring
during the period of time from July 1, 1993 through December 31,
1999. The Annuitant's and second Annuitant's age will be reduced
by two years for Annuity commencement dates occurring during the
period of time from January 1, 2000 through December 31, 2009.
The Annuitant's and second Annuitant's age will be reduced by one
additional year for Annuity commencement dates occurring in each
succeeding decade.
The Annuity purchase rates for options 3 and 4 are based on
mortality from 1983 Table a.
38
4.04 TERMS OF ANNUITY (e) Assumed Annual Net Return Rate is the interest rate used to
OPTIONS (CONT'D): determine the amount of the first Annuity payment under a
Variable Annuity as shown on Contract Schedule II. The Separate
Account must earn this rate plus enough to cover the mortality
and expense risk charges (which may include profit) and
administrative charges if future Variable Annuity Payments are to
remain level, (see Annuity return factor under Variable Annuity
Assumed Annual Net Return Rate on Contract Schedule II).
(f) Once elected, Annuity payments cannot be commuted to a lump sum
except for Variable Annuity payments under option 2 (see 4.09).
The life expectancy of the Certificate Holder or Certificate
Holder and second Annuitant shall be irrevocable upon the
election of an Annuity option.
4.05 DEATH OF ANNUITANT/ (a) When an Annuitant dies under option 2 or 3, or both the Annuitant
BENEFICIARY: and the second Annuitant die under option 4(d), the present value
of any remaining guaranteed payments will be paid in one sum to
the Beneficiary, or upon election by the Beneficiary, any
remaining payments will continue to the Beneficiary. If option 4
has been elected and the Annuitant dies, the remaining payments
will continue to the second Annuitant as successor payee.
(b) If there is no Beneficiary under option 2, 3 or 4, the present
value of any remaining payments will be paid in one sum to the
Certificate Holder's estate.
(c) If the Beneficiary designated under option 1 dies, the amount
held plus accrued interest will be paid in one sum to a successor
Beneficiary, if any, named by the designated Beneficiary. If
there is no successor Beneficiary, the lump sum will be paid to
the designated Beneficiary's estate.
(d) If the Beneficiary dies while receiving Annuity payments, the
present value of any remaining guaranteed payments will be paid
in one sum to the successor Beneficiary, or upon election by the
successor Beneficiary, any remaining payments will continue to
the successor Beneficiary. If no successor Beneficiary has been
designated, the present value of any remaining guaranteed
payments will be paid in one sum to the Beneficiary's estate.
(e) The present value will be determined as of the Valuation Period
in which proof of death acceptable to Aetna and a request for
payment is received at Aetna's Home Office. The interest rate
used to determine the first payment will be used to calculate the
present value.
39
4.06 FUND(S) ANNUITY UNITS -- The number of each Fund's Annuity units is based on the amount of the
SEPARATE ACCOUNT: first Variable Annuity payment which is equal to:
(a) The portion of the Current Value applied to pay a Variable
Annuity (minus any premium tax); divided by
(b) 1,000; multiplied by
(c) The payment rate for the option chosen.
Such amount, or portion, of the variable payment will be divided by
the appropriate Fund Annuity unit value (see 4.07) on the tenth
Valuation Period before the due date of the first payment to determine
the number of each Fund Annuity units. The number of each Fund Annuity
units remains fixed. Each future payment is equal to the sum of the
products of each Fund Annuity unit value multiplied by the appropriate
number of units. The Fund Annuity unit value on the tenth Valuation
Period prior to the due date of the payment is used.
4.07 FUND(S) ANNUITY UNIT For any Valuation Period, a Fund Annuity unit value is equal to:
VALUE -- SEPARATE ACCOUNT:
(a) The Value for the previous Period; multiplied by
(b) The Annuity net return factor(s) (see 4.08 below) for the Period;
multiplied by
(c) A factor to reflect the assumed annual net return rate (see
Contract Schedule II).
The dollar value of a Fund Annuity unit value and Annuity payments may
go up or down due to investment gain or loss.
4.08 ANNUITY NET RETURN The Annuity net return factor(s) are used to compute Annuity payments
FACTOR(S) -- SEPARATE for any Fund.
ACCOUNT:
The Annuity net return factor(s) for each Fund is equal to 1.0000000
plus the net return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by the Separate Account at
the end of a Valuation Period; minus
(b) The value of the shares of the Fund held by the Separate Account at
the start of the Valuation Period; plus or minus
(c) Taxes (or reserves for taxes) on the Separate Account (if any);
divided by
(d) The total value of the Fund record units and the Fund Annuity units of
the Separate Account at the start of the Valuation Period; minus
(e) A daily charge for Annuity mortality and expense risks, which may
include profit, and a daily administrative charge (at the annual rate
as shown on Contract Schedule II).
A net return rate may be more or less than 0%.
40
The value of a share of the Fund is equal to the net assets of the Fund
divided by the number of shares outstanding.
41
4.08 ANNUITY NET RETURN Payments shall not be changed due to changes in the mortality or expense
FACTOR(S) -- SEPARATE results or administrative charges.
ACCOUNT: (CONT'D)
4.09 ANNUITY OPTIONS: Option 1 -- Payment of Interest on Sum Left with Aetna -- This option may
be used only by the Beneficiary when the Certificate Holder dies before
Aetna has started paying an Annuity. A portion or all of the sum paid upon
death may be held under this option and will be held in the General Account
of Aetna at interest (see 3.13 and 4.01). The Beneficiary may later tell
Aetna to:
(a) Pay a portion or all of the sum held by Aetna; or
(b) Apply a portion or all of the sum held by Aetna to any Annuity option
below.
If a nonspouse Beneficiary elects that some or all of the Current Value is
to be held under this option, the Beneficiary must tell Aetna to pay the
full sum held under this option by December 31st of the year containing the
fifth anniversary of the Contract Holder's date of death.
Option 2 -- Payments for a Stated Period of Time -- An Annuity will be paid
for the number of years chosen. The number of years must be at least 5 and
not more than 30.
If payments for this option are made under a Variable Annuity, the present
value of any remaining payments may be withdrawn at any time. If a
withdrawal is requested within 3 years after the start of payments, it will
be treated as a surrender and any applicable Surrender Fee will be applied
(see 3.16).
Option 3 -- Life Income -- An Annuity will be paid for the life of the
Annuitant. If also chosen, Aetna will guarantee payments for 60, 120, 180,
or 240 months.
Option 4 -- Life Income Based upon the Lives of Two Annuitants -- An
Annuity will be paid during the lives of the Annuitant and a second
Annuitant. Payments will continue until both Annuitants have died. When
this option is chosen, a choice must be made of:
(a) 100% of the payment to continue after the first death;
(b) 66 2/3% of the payment to continue after the first death;
(c) 50% of the payment to continue after the first death;
(d) Payments for a minimum of 120 months with 100% of the payment to
continue after the first death; or
(e) 100% of the payment to continue at the death of the second Annuitant
and 50% of the payment to continue at the death of the Annuitant.
Other Options -- Aetna may make other options available as allowed by the
laws of the state in which this Contract and the Certificate is delivered.
42
OPTION 2
PAYMENTS FOR A STATED PERIOD OF TIME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
-----------------------------------------------------------------------------------------------
YEARS GUARANTEED MONTHLY QUARTERLY SEMI-ANNUAL ANNUAL
RATE PAYMENT PAYMENT PAYMENT PAYMENT
-----------------------------------------------------------------------------------------------
5 3.00% 17.91 53.59 106.78 211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
-----------------------------------------------------------------------------------------------
43
OPTION 3
LIFE INCOME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
PAYMENTS GUARANTEED FOR A STATED PERIOD OF MONTHS
-------------------------------------------------
----------------------------------------------------------------------------------------------
ADJUSTED AGE OF NONE 60 120 180 240
-----------------------------------------------------------------------------
ANNUITANT MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
----------------------------------------------------------------------------------------------
50 $4.27 $3.90 $4.26 $3.90 $4.22 $3.89 $4.17 $3.86 $4.08 $3.82
51 4.34 3.97 4.33 3.96 4.30 3.95 4.23 3.92 4.14 3.88
52 4.43 4.03 4.41 4.03 4.37 4.01 4.30 3.98 4.20 3.93
53 4.51 4.10 4.50 4.10 4.45 4.08 4.37 4.04 4.26 3.99
54 4.60 4.18 4.59 4.17 4.54 4.15 4.45 4.11 4.32 4.04
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.39 4.11
56 4.80 4.34 4.78 4.33 4.72 4.30 4.61 4.25 4.45 4.17
57 4.91 4.42 4.89 4.41 4.82 4.38 4.69 4.32 4.51 4.23
58 5.03 4.52 5.00 4.51 4.92 4.47 4.78 4.40 4.58 4.30
59 5.15 4.61 5.12 4.60 5.03 4.56 4.87 4.48 4.65 4.37
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.71 4.44
61 5.43 4.83 5.39 4.81 5.27 4.76 5.06 4.66 4.78 4.51
62 5.58 4.95 5.53 4.93 5.39 4.87 5.16 4.75 4.84 4.58
63 5.74 5.08 5.69 5.05 5.53 4.99 5.26 4.85 4.90 4.65
64 5.91 5.21 5.85 5.18 5.66 5.10 5.36 4.95 4.96 4.72
65 6.10 5.36 6.03 5.32 5.81 5.22 5.46 5.05 5.02 4.79
66 6.30 5.51 6.21 5.47 5.93 5.36 5.56 5.16 5.08 4.86
67 6.51 5.67 6.41 5.63 6.12 5.50 5.66 5.26 5.13 4.93
68 6.73 5.85 6.62 5.80 6.28 5.65 5.77 5.37 5.18 5.00
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 5.23 5.06
70 7.23 6.25 7.07 6.18 6.61 5.97 5.96 5.60 5.27 5.12
71 7.51 6.47 7.32 6.39 6.79 6.14 6.05 5.71 5.31 5.18
72 7.80 6.71 7.58 6.62 6.96 6.32 6.14 5.83 5.34 5.23
73 8.12 6.98 7.85 6.86 7.14 6.50 6.23 5.94 5.37 5.28
74 8.46 7.26 8.14 7.12 7.32 6.69 6.31 6.04 5.40 5.32
75 8.82 7.57 8.45 7.40 7.50 6.89 6.38 6.14 5.42 5.35
----------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
44
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS MALE AND SECOND ANNUITANT IS FEMALE)
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
----------------------------------------------------------------------------------
ADJUSTED AGES
---------------------------
SECOND
ANNUITANT ANNUITANT OPTION 4A OPTION 4B OPTION 4C OPTION 4D OPTION 4E
----------------------------------------------------------------------------------
55 50 $3.69 $4.05 $4.27 $3.69 $4.13
55 55 3.88 4.25 4.47 3.87 4.25
55 60 3.06 4.47 4.71 4.06 4.36
60 55 3.99 4.44 4.71 3.98 4.55
60 60 4.24 4.71 4.99 4.23 4.70
60 65 4.49 5.01 5.32 4.48 4.85
65 60 4.38 4.97 5.32 4.38 5.10
65 65 4.72 5.33 5.70 4.71 5.32
65 70 5.07 5.75 6.17 5.05 5.54
70 65 4.93 5.68 6.15 4.91 5.86
70 70 5.40 6.21 6.70 5.36 6.18
70 75 5.89 6.82 7.40 5.81 6.49
75 70 5.69 6.68 7.32 5.62 6.92
75 75 6.37 7.45 8.15 6.23 7.40
75 80 7.07 8.34 9.16 6.78 7.85
------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Male and the Second Annuitant is Female.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
45
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS FEMALE AND SECOND ANNUITANT IS MALE)
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
--------------------------------------------------------------------------------
ADJUSTED AGES
------------------------
SECOND
ANNUITANT ANNUITANT OPTION 4A OPTION 4B OPTION 4C OPTION 4D OPTION 4E
--------------------------------------------------------------------------------
55 50 $3.75 $4.07 $4.26 $3.75 $3.98
55 55 3.88 4.25 4.47 3.87 4.06
55 60 3.99 4.44 4.71 3.98 4.12
60 55 4.06 4.47 4.71 4.06 4.37
60 60 4.24 4.71 4.99 4.23 4.47
60 65 4.38 4.97 5.32 4.38 4.54
65 60 4.49 5.01 5.32 4.48 4.89
65 65 4.72 5.33 5.70 4.71 5.02
65 70 4.93 5.68 6.15 4.91 5.14
70 65 5.07 5.75 6.17 5.05 5.60
70 70 5.40 6.21 6.70 5.36 5.79
70 75 5.69 6.68 7.32 5.62 5.96
75 70 5.89 6.83 7.40 5.81 6.63
75 75 6.37 7.45 8.15 6.23 6.92
75 80 6.78 8.11 8.99 6.54 7.15
--------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Female and the Second Annuitant is Male.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
46
OPTION 2
PAYMENTS FOR A STATED PERIOD OF TIME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
---------------------------------------------------------------------------------------------------
YEARS GUARANTEED MONTHLY QUARTERLY SEMI-ANNUAL ANNUAL
RATE PAYMENT PAYMENT PAYMENT PAYMENT
---------------------------------------------------------------------------------------------------
5 3.50% 18.12 54.19 107.92 213.99
6 3.50% 15.35 45.92 91.44 181.32
7 3.50% 13.38 40.01 79.69 158.01
8 3.50% 11.90 35.59 70.88 140.56
9 3.50% 10.75 32.16 64.05 127.00
10 3.50% 9.83 29.42 58.59 116.18
11 3.50% 9.09 27.18 54.13 107.34
12 3.50% 8.46 25.32 50.42 99.98
13 3.50% 7.94 23.75 47.29 93.78
14 3.50% 7.49 22.40 44.62 88.47
15 3.50% 7.10 21.24 42.31 83.89
16 3.50% 6.76 20.23 40.29 79.89
17 3.50% 6.47 19.34 38.51 76.37
18 3.50% 6.20 18.55 36.94 73.25
19 3.50% 5.97 17.85 35.54 70.47
20 3.50% 5.75 17.22 34.28 67.98
21 3.50% 5.56 16.65 33.15 65.74
22 3.50% 5.39 16.13 32.13 63.70
23 3.50% 5.24 15.66 31.19 61.85
24 3.50% 5.09 15.24 30.34 60.17
25 3.50% 4.96 14.85 29.56 58.62
26 3.50% 4.84 14.49 28.95 57.20
27 3.50% 4.73 14.15 28.19 55.90
28 3.50% 4.63 13.85 27.58 54.69
29 3.50% 4.53 13.57 27.02 53.57
30 3.50% 4.45 13.30 26.49 52.53
--------------------------------------------------------------------------------------------------
47
OPTION 2
PAYMENTS FOR A STATED PERIOD OF TIME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
---------------------------------------------------------------------------------------------------
YEARS GUARANTEED MONTHLY QUARTERLY SEMI-ANNUAL ANNUAL
RATE PAYMENT PAYMENT PAYMENT PAYMENT
---------------------------------------------------------------------------------------------------
5 5.00% 18.74 56.00 111.33 219.98
6 5.00% 15.99 47.77 94.96 187.64
7 5.00% 14.02 41.90 83.30 164.59
8 5.00% 12.56 37.52 74.58 147.35
9 5.00% 11.42 34.11 67.81 133.99
10 5.00% 10.51 31.40 62.42 123.34
11 5.00% 9.77 29.19 58.03 114.66
12 5.00% 9.16 27.36 54.38 107.45
13 5.00% 8.64 25.81 51.31 101.39
14 5.00% 8.20 24.50 48.69 96.21
15 5.00% 7.82 23.36 46.44 91.75
16 5.00% 7.49 22.37 44.47 87.88
17 5.00% 7.20 21.51 42.75 84.48
18 5.00% 6.94 20.74 41.23 81.47
19 5.00% 6.71 20.06 39.88 78.80
20 5.00% 6.51 19.46 38.68 76.42
21 5.00% 6.33 18.91 37.59 74.28
22 5.00% 6.17 18.42 36.62 72.35
23 5.00% 6.02 17.98 35.73 70.61
24 5.00% 5.88 17.57 34.93 69.02
25 5.00% 5.76 17.20 34.20 67.57
26 5.00% 5.65 16.87 33.53 66.25
27 5.00% 5.54 16.56 32.92 65.04
28 5.00% 5.45 16.28 32.35 63.93
29 5.00% 5.36 16.01 31.83 62.90
30 5.00% 5.28 15.77 31.35 61.95
--------------------------------------------------------------------------------------------------
48
OPTION 3
LIFE INCOME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
PAYMENTS GUARANTEED FOR A STATED PERIOD OF MONTHS
-------------------------------------------------
----------------------------------------------------------------------------------------------
ADJUSTED NONE 60 120 180 240
AGE OF ----------------------------------------------------------------------------------
ANNUITANT MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
----------------------------------------------------------------------------------------------
50 $4.56 $4.20 $4.55 $4.19 $4.51 $4.18 $4.45 $4.15 $4.36 $4.11
51 4.64 4.26 4.62 4.25 4.58 4.24 4.51 4.21 4.42 4.16
52 4.72 4.32 4.70 4.32 4.66 4.30 4.58 4.26 4.48 4.21
53 4.80 4.39 4.79 4.38 4.74 4.36 4.65 4.32 4.53 4.27
54 4.89 4.46 4.87 4.46 4.82 4.43 4.73 4.39 4.59 4.32
55 4.99 4.54 4.97 4.53 4.91 4.50 4.80 4.46 4.65 4.38
56 5.09 4.62 5.07 4.61 5.00 4.58 4.88 4.53 4.72 4.44
57 5.20 4.71 5.17 4.70 5.10 4.66 4.96 4.60 4.78 4.50
58 5.32 4.80 5.29 4.79 5.20 4.75 5.05 4.68 4.84 4.57
59 5.44 4.90 5.41 4.88 5.31 4.84 5.14 4.76 4.91 4.63
60 5.57 5.00 5.53 4.99 5.42 4.93 5.23 4.84 4.97 4.70
61 5.71 5.11 5.67 5.09 5.54 5.03 5.32 4.93 5.03 4.77
62 5.86 5.23 5.81 5.21 5.66 5.14 5.42 5.02 5.09 4.84
63 6.02 5.36 5.97 5.33 5.79 5.25 5.51 5.11 5.16 4.91
64 6.20 5.49 6.13 5.46 5.93 5.37 5.61 5.21 5.21 4.98
65 6.38 5.64 6.31 5.60 6.07 5.49 5.71 5.31 5.27 5.05
66 6.58 5.79 6.49 5.75 6.22 5.63 5.81 5.41 5.32 5.12
67 6.79 5.95 6.69 5.91 6.38 5.76 5.91 5.52 5.38 5.18
68 7.02 6.13 6.89 6.08 6.53 5.91 6.01 5.63 5.42 5.25
69 7.26 6.32 7.11 6.26 6.70 6.06 6.11 5.74 5.47 5.31
70 7.52 6.53 7.35 6.45 6.86 6.23 6.20 5.85 5.51 5.37
71 7.80 6.75 7.59 6.66 7.03 6.39 6.29 5.96 5.54 5.42
72 8.09 6.99 7.85 6.89 7.21 6.57 6.38 6.07 5.57 5.47
73 8.41 7.26 8.12 7.13 7.38 6.75 6.46 6.17 5.60 5.51
74 8.75 7.54 8.41 7.39 7.55 6.94 6.53 6.28 5.63 5.55
75 9.12 7.85 8.71 7.66 7.73 7.13 6.61 6.38 5.65 5.59
--------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
49
OPTION 3
LIFE INCOME
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
PAYMENTS GUARANTEED FOR A STATED PERIOD OF MONTHS
-------------------------------------------------
-----------------------------------------------------------------------------------------------
ADJUSTED NONE 60 120 180 240
AGE OF --------------------------------------------------------------------------------
ANNUITANT MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
----------------------------------------------------------------------------------------------
50 $ 5.48 $5.12 $5.46 $5.11 $5.41 $5.09 $5.34 $5.06 $5.24 $5.01
51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.29 5.05
52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.34 5.10
53 5.71 5.30 5.69 5.29 5.62 5.26 5.53 5.22 5.40 5.15
54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.27 5.45 5.20
55 5.89 5.44 5.86 5.43 5.79 5.39 5.67 5.34 5.51 5.25
56 5.99 5.52 5.96 5.51 5.87 5.47 5.74 5.40 5.56 5.31
57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.62 5.37
58 6.21 5.69 6.17 5.67 6.06 5.62 5.90 5.54 5.68 5.42
59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.61 5.74 5.48
60 6.46 5.89 6.41 5.87 6.28 5.80 6.06 5.69 5.79 5.55
61 6.60 6.00 6.55 6.07 6.39 5.90 6.15 5.77 5.85 5.61
62 6.75 6.11 6.69 6.08 6.51 6.00 6.24 5.86 5.91 5.67
63 6.91 6.23 6.84 6.20 6.64 6.10 6.33 5.95 5.96 5.73
64 7.09 6.37 7.00 6.33 6.77 6.22 6.42 6.04 6.02 5.80
65 7.27 6.51 7.18 6.46 6.91 6.34 6.52 6.13 6.07 5.86
66 7.47 6.66 7.36 6.61 7.05 6.46 6.61 6.23 6.12 5.92
67 7.68 6.82 7.55 6.76 7.20 6.60 6.70 6.33 6.16 5.99
68 7.91 7.00 7.76 6.93 7.35 6.74 6.80 6.43 6.21 6.04
69 8.15 7.19 7.98 7.11 7.51 6.89 6.89 6.54 6.25 6.10
70 8.41 7.39 8.21 7.30 7.67 7.04 6.97 6.64 6.28 6.15
71 8.69 7.62 8.45 7.51 7.83 7.21 7.06 6.74 6.32 6.20
72 8.99 7.86 8.70 7.73 8.00 7.38 7.14 6.85 6.35 6.25
73 9.31 8.12 8.97 7.97 8.16 7.55 7.21 6.95 6.37 6.29
74 9.65 8.41 9.26 8.23 8.33 7.73 7.29 7.04 6.39 6.33
75 10.02 8.72 9.55 8.50 8.50 7.92 7.35 7.14 6.41 6.36
----------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
50
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS MALE AND SECOND ANNUITANT IS FEMALE)
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
-------------------------------------------------------------------------------
ADJUSTED AGES
-----------------------
SECOND
ANNUITANT ANNUITANT OPTION 4A OPTION 4B OPTION 4C OPTION 4D OPTION 4E
-------------------------------------------------------------------------------
55 50 $3.97 $4.35 $4.56 $3.97 $4.42
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.34 4.76 5.00 4.34 4.64
60 55 4.27 4.73 5.00 4.26 4.83
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.76 5.29 5.60 4.75 5.13
65 60 4.66 5.25 5.61 4.65 5.39
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.34 6.03 6.46 5.31 5.81
70 65 5.19 5.97 6.44 5.17 6.14
70 70 5.67 6.49 6.99 5.62 6.47
70 75 6.16 7.10 7.68 6.07 6.77
75 70 5.95 6.96 7.61 5.87 7.20
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.33 8.62 9.45 7.02 8.13
-------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Male and the Second Annuitant is Female.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
51
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS FEMALE AND SECOND ANNUITANT IS MALE)
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
-------------------------------------------------------------------------------
ADJUSTED AGES
------------------------
SECOND
ANNUITANT ANNUITANT OPTION 4A OPTION 4B OPTION 4C OPTION 4D OPTION 4E
-------------------------------------------------------------------------------
55 50 $4.03 $4.36 $4.55 $4.03 $4.41
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.27 4.73 5.00 4.26 4.83
60 55 4.34 4.76 5.00 4.34 4.64
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.66 5.25 5.61 4.65 5.39
65 60 4.76 5.29 5.60 4.75 5.13
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.19 5.97 6.44 5.17 6.14
70 65 5.34 6.03 6.46 5.31 5.81
70 70 5.67 6.49 6.99 5.62 6.47
70 75 5.95 6.96 7.61 5.87 7.20
75 70 6.16 7.10 7.68 6.07 6.77
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.04 8.39 9.29 6.79 8.70
-------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Female and the Second Annuitant is Male.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
52
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS MALE AND SECOND ANNUITANT IS FEMALE)
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
--------------------------------------------------------------------------------
ADJUSTED AGES
------------------------
SECOND
ANNUITANT ANNUITANT OPTION 4A OPTION 4B OPTION 4C OPTION 4D OPTION 4E
--------------------------------------------------------------------------------
55 50 $4.88 $5.26 $5.48 $4.88 $5.34
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.21 5.65 5.89 5.21 5.53
60 55 5.15 5.63 5.91 5.14 5.73
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.61 6.16 6.49 5.60 6.01
65 60 5.52 6.14 6.51 5.51 6.28
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.17 6.90 7.33 6.13 6.67
70 65 6.04 6.84 7.34 6.00 7.03
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.97 7.96 8.56 6.87 7.62
75 70 6.77 7.84 8.51 6.68 8.08
75 75 7.45 8.60 9.33 7.27 8.55
75 80 8.14 9.49 10.35 7.80 8.98
--------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Male and the Second Annuitant is Female.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
53
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS FEMALE AND SECOND ANNUITANT IS MALE)
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
-------------------------------------------------------------------------------------
ADJUSTED AGES
------------------------
SECOND
ANNUITANT ANNUITANT OPTION 4A OPTION 4B OPTION 4C OPTION 4D OPTION 4E
-------------------------------------------------------------------------------------
55 50 $4.93 $5.27 $ 5.46 $4.93 $5.19
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.15 5.63 5.91 5.14 5.73
60 55 5.21 5.65 5.89 5.21 5.53
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.52 6.14 6.51 5.51 6.28
65 60 5.61 6.16 6.49 5.60 6.01
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.04 6.84 7.34 6.00 7.03
70 65 6.17 6.90 7.33 6.13 6.67
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.77 7.84 8.51 6.68 8.08
75 70 6.97 7.96 8.56 6.87 7.62
75 75 7.45 8.60 9.33 7.27 8.55
75 80 7.86 9.28 10.20 7.57 9.59
------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Female and the Second Annuitant is Male.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
54
--------------------------------------------------------------------------------
[LOGO OF AETNA APPEARS HERE]
AETNA LIFE INSURANCE AND ANNUITY COMPANY
Home Office: 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
(000) 000-0000
Group Variable, Fixed, or Combination Annuity Contract
Nonparticipating
--------------------------------------------------------------------------------
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA.
APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN INCREASE OR
DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT
APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
55
