EXHIBIT 99-B.4.1
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Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
(000) 000-0000
You may call the toll free number shown above to request
information about this Contract.
Aetna Life Insurance and Annuity Company, a stock company, herein called Aetna,
agrees to pay the benefits stated in this Contract.
Specifications
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Plan
SPECIMEN
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Type of Plan
SPECIMEN
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Contract Holder
SPECIMEN
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Contract No.
SPECIMEN
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Contract Effective Date
SPECIMEN
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This Contract is delivered in [STATE] and is subject to the laws of that
jurisdiction.
The variable features of the Group Contract are described in parts III, IV and
V.
Right to Cancel
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The Contract Holder may cancel this Contract within 10 days by returning it to
the agent from whom it was purchased, or to Aetna at the address shown above.
Within seven days of receiving the Contract at its home office, Aetna will
return the amount of Certificate Holder Purchase Payment(s) received, plus any
increase, or minus any decrease, on the amount, if any, allocated to the
Separate Account Subaccount(s).
This page and the pages that follow constitute the entire Contract.
Signed at the home office on the Contract Effective Date.
/s/ Xxxxxx X. XxXxxxxxx /s/ Xxxx X. Xxxxxxx
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. AMOUNTS ALLOCATED TO THE GUARANTEED ACCOUNT, IF WITHDRAWN
BEFORE THE GUARANTEED TERM MATURITY DATE, MAY BE SUBJECT TO A MARKET VALUE
ADJUSTMENT. THE MARKET VALUE ADJUSTMENT MAY RESULT IN AN INCREASE OR A DECREASE
IN THE ACCOUNT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT APPLY TO A
GUARANTEED TERM AT THE TIME OF ITS MATURITY.
GM-VA-99(PB)
Specifications
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Guaranteed There is a minimum guaranteed rate for Purchase Payment(s) held
Rate in the Guaranteed Account. (See Schedule - Accumulation
Period.)
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Deductions from There will be deductions for mortality and expense risk,
the Separate administrative and if applicable other fees.
Account
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Deduction from Purchase Payment(s) may be subject to a deduction for premium
Purchase taxes. (See Section III - Purchase Payment.)
Payment(s)
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Deferred Sales There may be a charge deducted upon withdrawal. (See Schedule -
Charge Accumulation Period.)
The Contract is a legal contract and constitutes the entire legal relationship
between Aetna and the Contract Holder.
READ THIS CONTRACT CAREFULLY. THE CONTRACT SETS FORTH, IN DETAIL, ALL OF THE
RIGHTS AND OBLIGATIONS OF BOTH YOU AND AETNA UNDER THE CONTRACT. THEREFORE, IT
IS IMPORTANT THAT YOU READ THIS CONTRACT CAREFULLY.
Page 2
Schedule - Accumulation Period
Death Benefit Option
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Death Benefit Option I selected. (See Section IV - Death Benefit Options.)
Separate Account
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Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.25%
-----
Total Separate Account Charges 1.40%
Guaranteed Account
================================================================================
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
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Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year. Aetna
reserves the right to charge $10 for each subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the Maintenance
Fee is $0.
Page 3
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
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Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
------------------------------------------------------------------
Less than 3 years 8%
3 or more but less than 4 years 7%
4 or more but less than 5 years 6%
5 or more but less than 6 years 5%
6 or more but less than 7 years 4%
7 or more but less than 8 3%
8 years or more 0%
Premium Bonus
Net Premium
Cumulative Purchase Payments Bonus Percentage
------------------------------------------------------------------
$1,500 to $14,999 2.00%
$15,000 to $2,499,999 4.00%
$2,500,000 or more 5.00%
See Section I Definitions - "Premium Bonus" for determining
eligibility to receive a Premium Bonus after the initial Purchase
Payment.
Initial Purchase Payment Required
$15,000 ($1,500 qualified plan). Aetna reserves the right to lower
that amount.
Maximum Issue Age of Owner and Annuitant
85
See Section I - DEFINITIONS for explanations.
Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payments
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Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks. The administrative charge is
established upon election of an Annuity Payout Option. This charge
will not exceed 0.25%.
Assumed Interest Rate (AIR)
If variable Annuity Payments are chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
The AIR factor for 3.5% per year is 0.9999058.
The AIR factor for 5.0% per year is 0.9998663.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR 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 AIR of 5% is chosen.
Transfers
When variable Annuity Payments have been elected, 12 Transfers are
allowed each Account Year among the Subaccounts available during the
Annuity Period. Aetna reserves the right to allow more than 12
Transfers in an Account Year.
General Account - Fixed Annuity Payments
================================================================================
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
Page 5
Schedule - Accumulation Period
Death Benefit Option
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Death Benefit Option I selected. (See Section IV - Death Benefit
Options.)
Separate Account
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Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.25%
-----
Total Separate Account Charges 1.40%
Guaranteed Account
================================================================================
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
================================================================================
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Page 3
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
================================================================================
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
--------------------------------------------------------------------
Less than 2 years 7%
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 years or more 0%
Premium Bonus
Net Premium
Cumulative Purchase Payments Bonus Percentage
--------------------------------------------------------------------
$1,500 to $14,999 2.00%
$15,000 to $2,499,999 4.00%
$2,500,000 or more 5.00%
See Section I - Definitions - "Premium Bonus" to determine
eligibility to receive a Premium Bonus after the initial Purchase
Payment.
Initial Purchase Payment Required
$15,000 ($1,500 qualified plan). Aetna reserves the right to lower
that amount.
Maximum Issue Age of Owner and Annuitant
85
See Section I - DEFINITIONS for explanations.
Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payments
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Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks. The administrative charge is
established upon election of an Annuity Payout Option. This charge
will not exceed 0.25%.
Assumed Interest Rate (AIR)
If variable Annuity Payments are chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
The AIR factor for 3.5% per year is 0.9999058.
The AIR factor for 5.0% per year is 0.9998663.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR 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 AIR of 5% is chosen.
Transfers
When variable Annuity Payments have been elected, 12 Transfers are
allowed each Account Year among the Subaccounts available during the
Annuity Period. Aetna reserves the right to allow more than 12
Transfers in an Account Year.
General Account - Fixed Annuity Payments
================================================================================
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
Page 5
Schedule - Accumulation Period
Death Benefit Option
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Death Benefit Option II selected. (See Section IV - Death Benefit
Options.)
Separate Account
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Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.45%
-----
Total Separate Account Charges 1.60%
Guaranteed Account
================================================================================
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
================================================================================
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year. Aetna
reserves the right to charge $10 for each subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Page 3
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
================================================================================
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
--------------------------------------------------------------------
Less than 3 years 8%
3 or more but less than 4 years 7%
4 or more but less than 5 years 6%
5 or more but less than 6 years 5%
6 or more but less than 7 years 4%
7 or more but less than 8 3%
8 years or more 0%
Premium Bonus
Net Premium
Cumulative Purchase Payments Bonus Percentage
--------------------------------------------------------------------
$1,500 to $14,999 2.00%
$15,000 to $2,499,999 4.00%
$2,500,000 or more 5.00%
See Section I - Definitions - "Premium Bonus" to determine
eligibility to receive a Premium Bonus after the initial Purchase
Payment.
Initial Purchase Payment Required
$15,000 ($1,500 qualified plan). Aetna reserves the right to lower
that amount.
Maximum Issue Age of Owner and Annuitant
75
See Section I - DEFINITIONS for explanations.
Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payments
================================================================================
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks. The administrative charge is
established upon election of an Annuity Payout Option. This charge
will not exceed 0.25%.
Assumed Interest Rate (AIR)
If variable Annuity Payments are chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
The AIR factor for 3.5% per year is 0.9999058.
The AIR factor for 5.0% per year is 0.9998663.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR 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 AIR of 5% is chosen.
Transfers
When variable Annuity Payments have been elected, 12 Transfers are
allowed each Account Year among the Subaccounts available during the
Annuity Period. Aetna reserves the right to allow more than 12
Transfers in an Account Year.
General Account - Fixed Annuity Payments
================================================================================
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
Page 5
Schedule - Accumulation Period
Death Benefit Option
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Death Benefit Option II selected. (See Section IV - Death Benefit
Options.)
Separate Account
================================================================================
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.45%
-----
Total Separate Account Charges 1.60%
Guaranteed Account
================================================================================
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
================================================================================
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Page 3
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
================================================================================
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
--------------------------------------------------------------------
Less than 2 years 7%
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 years or more 0%
Premium Bonus
Net Premium
Cumulative Purchase Payments Bonus Percentage
--------------------------------------------------------------------
$1,500 to $14,999 2.00%
$15,000 to $2,499,999 4.00%
$2,500,000 or more 5.00%
See Section I - Definitions - "Premium Bonus" to determine
eligibility to receive a Premium Bonus after the initial Purchase
Payment.
Initial Purchase Payment Required
$15,000 ($1,500 qualified plan). Aetna reserves the right to lower
that amount.
Maximum Issue Age of Owner and Annuitant
75
See Section I - DEFINITIONS for explanations.
Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payments
================================================================================
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks. The administrative charge is
established upon election of an Annuity Payout Option. This charge
will not exceed 0.25%.
Assumed Interest Rate (AIR)
If variable Annuity Payments are chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
The AIR factor for 3.5% per year is 0.9999058.
The AIR factor for 5.0% per year is 0.9998663.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR 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 AIR of 5% is chosen.
Transfers
When variable Annuity Payments have been elected, 12 Transfers are
allowed each Account Year among the Subaccounts available during the
Annuity Period. Aetna reserves the right to allow more than 12
Transfers in an Account Year.
General Account - Fixed Annuity Payments
================================================================================
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
Page 5
Table of Contents
I. DEFINITIONS PAGE
1.01 Account ............................................ 8
1.02 Account Effective Date ............................. 8
1.03 Account Value ...................................... 8
1.04 Account Year ....................................... 8
1.05 Accumulation Period ................................ 8
1.06 Adjusted Account Value ............................. 8
1.07 Annuitant .......................................... 8
1.08 Annuity Payments ................................... 8
1.09 Annuity Payout Options ............................. 8
1.10 Annuity Period ..................................... 8
1.11 Beneficiary ........................................ 9
1.12 Certificate Holder ................................. 9
1.13 Claim Date ......................................... 9
1.14 Code ............................................... 9
1.15 Contract ........................................... 9
1.16 Contract Holder .................................... 9
1.17 Deferred Sales Charge .............................. 9
1.18 Deposit Period ..................................... 9
1.19 Dollar Cost Averaging .............................. 9
1.20 Fund(s) ............................................ 10
1.21 General Account .................................... 10
1.22 Guaranteed Account ................................. 10
1.23 Guaranteed Rates - Guaranteed Account .............. 10
1.24 Guaranteed Term .................................... 10
1.25 Guaranteed Term(s) Groups .......................... 10
1.26 Maintenance Fee .................................... 10
1.27 Market Value Adjustment (MVA) ...................... 11
1.28 Matured Term Value ................................. 11
1.29 Maturity Date ...................................... 11
1.30 Maturity Value Transfer ............................ 11
1.31 Net Cumulative Purchase Payment .................... 11
1.32 Premium Bonus ...................................... 11
1.33 Purchase Payment(s) ................................ 11
1.34 Reinvestment ....................................... 11
1.35 Separate Account ................................... 12
1.36 Subaccount(s) ...................................... 12
1.37 Systematic Distribution Option ..................... 12
1.38 Transfers .......................................... 12
1.39 Withdrawal Value ................................... 12
1.40 Valuation Date ..................................... 12
II. GENERAL PROVISIONS
2.01 Change of Contract ................................. 12
2.02 Change of Fund(s) .................................. 13
2.03 Nonparticipating Contract .......................... 13
2.04 Payments and Elections ............................. 13
2.05 State Laws ......................................... 13
2.06 Control of Contract ................................ 13
2.07 Designation of Beneficiary ......................... 14
2.08 Misstatements and Adjustments ...................... 14
2.09 Incontestability ................................... 14
2.10 Grace Period ....................................... 14
2.11 Individual Certificates ............................ 14
Page 6
III. PURCHASE PAYMENT, ACCOUNT VALUE, AND WITHDRAWAL PROVISIONS PAGE
3.01 Purchase Payment ........................................ 14
3.02 Premium Bonus ........................................... 15
3.03 Certificate Holder's Account ............................ 15
3.04 Accumulation Units - Separate Account ................... 15
3.05 Accumulation Unit Value - Separate Account .............. 15
3.06 Net Investment Factor(s) - Separate Account ............. 15
3.07 Market Value Adjustment (MVA) ........................... 16
3.08 Transfer of Account Value from the Subaccount(s) or
Guaranteed Account During the Accumulation Period ....... 17
3.09 Notice to the Certificate Holder ........................ 17
3.10 Loans ................................................... 17
3.11 Systematic Distribution Options ......................... 17
3.12 Liquidation of Withdrawal Value ......................... 18
3.13 Deferred Sales Charge ................................... 18
3.14 Payment of Withdrawal Value ............................. 18
3.15 Payment of Adjusted Account Value ....................... 19
3.16 Reinstatement ........................................... 19
IV DEATH BENEFIT
4.01 Death Benefit Options ................................... 19
4.02 Death Benefit Option I .................................. 19
4.03 Death Benefit Option II ................................. 20
4.04 Options Available to Beneficiary ........................ 21
V. ANNUITY PAYOUT PROVISIONS
5.01 Annuity Payout Options .................................. 22
5.02 Annuity Payment Choices ................................. 23
5.03 Terms of Annuity Payout Options ......................... 23
5.04 Death of Annuitant/Beneficiary .......................... 24
5.05 Annuity Units - Separate Account ........................ 25
5.06 Annuity Unit Value - Separate Account ................... 25
5.07 Annuity Net Return Factor(s) - Separate Account ......... 25
Page 7
I. DEFINITIONS
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1.01 Account:
A record that identifies contract values accumulated on each
Certificate Holder's behalf.
1.02 Account Effective Date:
The date on which an Account is established on a Certificate
Holder's behalf.
1.03 Account Value:
As of the most recent Valuation Date, the Account Value is equal to
the total of the Purchase Payment(s) made to the Account;
(a) Plus any Premium Bonus amount;
(b) Plus or minus the investment experience for the amount, if
any, allocated to one or more of the Subaccounts;
(c) Plus interest added to the amount, if any, allocated to the
Guaranteed Account;
(d) Plus any additional amount deposited to the Account (see
Section IV - Death Benefit);
(e) Less the amount of any Maintenance Fee deducted;
(f) Less any additional fee(s), charges, or taxes, if applicable,
deducted;
(g) Less any amount(s) withdrawn; and
(h) Less amount(s) applied to an Annuity Payout Option.
1.04 Account Year:
A period of twelve months measured from the Account Effective Date
or an anniversary of such Account Effective Date.
1.05 Accumulation Period:
The period during which the Purchase Payment(s) and Premium Bonus
are applied to an Account to provide future Annuity Payment(s).
1.06 Adjusted Account Value:
The Account Value plus or minus the aggregate Market Value
Adjustment (MVA), if applicable, for the amount(s) allocated to the
Guaranteed Account (see Section III - Market Value Adjustment).
1.07 Annuitant:
The person on whose death, during the Accumulation Period, a death
benefit becomes payable and on whose life or life expectancy the
Annuity Payments are based under the Contract.
1.08 Annuity Payment(s):
A series of payments for life, a definite period or a combination of
the two. The Annuity Payments may be variable or fixed in amount or
a combination of both.
1.09 Annuity Payout Options:
The Certificate Holder may choose to receive Annuity Payments under
one of the following options:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.10 Annuity Period:
The period during which Annuity Payments are made.
Page 8
1.11 Beneficiary:
The individual(s) or entity(ies) entitled to receive any death
benefit due under the Contract. Any designated Beneficiary has the
right to name another Beneficiary. If the Account is owned by joint
Certificate Holders, the survivor will be deemed the designated
Beneficiary and any other Beneficiary on record will then be treated
as the primary or contingent Beneficiary, as originally designated,
unless and until changed by the new designated Beneficiary.
1.12 Certificate Holder:
A person who purchases an interest in the Contract as evidenced by a
certificate. Aetna reserves the right to limit ownership to natural
persons. If more than one Certificate Holder owns an Account, each
Certificate Holder will be a joint Certificate Holder. Joint
Certificate Holders have joint ownership rights and both must
authorize exercising any ownership rights unless Aetna allows
otherwise.
1.13 Claim Date:
The date when proof of death and the Beneficiary's entitlement to
the death benefit are received in good order at Aetna's home office.
This is also the date that the excess of the death benefit over the
Account Value, if any, is allocated to the money market fund
available through the Separate Account.
1.14 Code:
The Internal Revenue Code of 1986, as it may be amended from time to
time.
1.15 Contract:
The agreement between Aetna and the Contract Holder.
1.16 Contract Holder:
The entity to which the Contract is issued.
1.17 Deferred Sales Charge:
The charge that is applied to a Purchase Payment(s)upon withdrawal.
This charge may be waived under certain circumstances or after a
certain length of time (see Section III - Deferred Sales Charge).
1.18 Deposit Period:
A day, a calendar week, a calendar month, a calendar quarter, or any
other period of time specified by Aetna during which a Purchase
Payment(s), Transfer(s) and/or Reinvestment(s) may be allocated to
one or more Guaranteed Account Guaranteed Terms. Aetna reserves the
right to shorten or to extend the Deposit Period.
During a Deposit Period, Aetna may offer any number of Guaranteed
Terms and more than one Guaranteed Term of the same duration may be
offered.
1.19 Dollar Cost Averaging:
A program that permits the Certificate Holder to systematically
transfer amounts from one of the available Subaccounts, or an
available Guaranteed Account Guaranteed Term, to one or more of the
Subaccounts. If the Certificate Holder elects a Guaranteed Account
Guaranteed Term available for Dollar Cost Averaging, no MVA applies
to amounts transferred under Dollar Cost Averaging. If Dollar Cost
Averaging from a Guaranteed Account Guaranteed Term is discontinued
before the end of the Dollar Cost Averaging period elected, Aetna
will automatically transfer the balance to a Guaranteed Term of the
same duration and an MVA will apply. The Certificate Holder may
initiate a Transfer to another investment option and an MVA will
apply. If a Guaranteed Term of the same duration is not available,
Aetna will transfer the amount to the Guaranteed Term with the next
shortest duration. If no shorter Guaranteed Term is available, the
next longer Guaranteed Term will be used. Aetna reserves the right
to establish and change terms and conditions governing Dollar Cost
Averaging.
Page 9
1.20 Fund(s):
The open-end registered management investment companies whose shares
are purchased by the Separate Account to fund the benefits provided
by the Contract.
The Funds, and the number of Funds, available during the
Accumulation Period may be different from those available during the
Annuity Period. Aetna reserves the right to limit the number of
Funds available at any one time and to limit the number of
investment options the Certificate Holder may select during the
Accumulation Period and/or during the Annuity Period.
1.21 General Account:
The account holding the assets of Aetna, other than those assets
held in Aetna's separate accounts.
1.22 Guaranteed Account:
A nonunitized separate account, established by Aetna under
Connecticut Law that holds assets for Guaranteed Terms. There are no
discrete units for this account. The Certificate Holder does not
participate in any gain or loss resulting from the performance of
the investments held in the account. Income, gains or losses
realized or unrealized, are gains or losses of Aetna. Aetna
liabilities, except for liabilities under the contract and reserves
required by federal and state law, may not be charged against the
nonunitized separate account.
1.23 Guaranteed Rates - Guaranteed Account:
Aetna will declare the interest rate(s) applicable to a specific
Guaranteed Term at the start of the Deposit Period for that
Guaranteed Term. The rate(s) are guaranteed by Aetna for the period
beginning with the first day of the Deposit Period and ending on the
Maturity Date. Guaranteed Rates are credited beginning with the date
of allocation. The Guaranteed Rates are annual effective yields.
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 the Schedule
- Accumulation Period.
For Guaranteed Terms of one year or less, one Guaranteed Rate is
credited for the full Guaranteed Term. For longer Guaranteed Terms,
an initial Guaranteed Rate is credited from the date of deposit to
the end of a specified period within the Guaranteed Term. There may
be different Guaranteed Rate(s) declared for subsequent specified
time intervals throughout the Guaranteed Term.
Aetna may offer more than one Guaranteed Term of the same duration
and credit one with a higher rate contingent upon use only with
Dollar Cost Averaging.
1.24 Guaranteed Term:
The period of time specified by Aetna for which a specific
Guaranteed Rate(s) is offered on amounts invested during a specific
Deposit Period. Guaranteed Terms are made available subject to
Aetna's terms and conditions, including, but not limited to, Aetna's
right to restrict allocations to new Purchase Payments (such as by
prohibiting Transfers into a particular Guaranteed Term from any
other Guaranteed Term or from any of the Subaccounts, or by
prohibiting Reinvestment of a Matured Term Value to a particular
Guaranteed Term). More than one Guaranteed Term of the same duration
may be offered within the Contract.
1.25 Guaranteed Term(s) Groups:
All Guaranteed Account Guaranteed Term(s) of the same duration (from
the close of the Deposit Period until the designated Maturity Date).
1.26 Maintenance Fee:
The Maintenance Fee (see Schedule - Accumulation Period) will be
deducted during the Accumulation Period from the Account Value on
each anniversary of the Account Effective Date and upon withdrawal
of the entire Account Value.
Page 10
1.27 Market Value Adjustment (MVA):
An adjustment that may apply to an amount withdrawn or transferred
from a Guaranteed 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. The adjustment is
expressed as a percentage of each dollar being withdrawn (see
Section III- Market Value Adjustment).
1.28 Matured Term Value:
The amount due on a Guaranteed Account Guaranteed Term's Maturity
Date.
1.29 Maturity Date:
The last day of a Guaranteed Account Guaranteed Term.
1.30 Maturity Value Transfer:
During the calendar month following a Guaranteed Account Maturity
Date, the Certificate Holder may notify Aetna's home office in
writing to Transfer or withdraw all or part of the Matured Term
Value, plus accrued interest at the new Guaranteed Rate, from the
Guaranteed 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.
1.31 Net Cumulative Purchase Payment:
The sum of the Purchase Payments minus any amounts withdrawn.
1.32 Premium Bonus:
A percentage of an applicable Purchase Payment (as shown on the
Schedule-Accumulation Period) that is credited to a Certificate
Holder's Account by Aetna. This amount is in addition to the
Purchase Payment.
The amount of Purchase Payment eligible for such Premium Bonus is
equal to the Net Cumulative Purchase Payment amount minus the sum of
Purchase Payments upon which a Premium Bonus has previously been
paid.
1.33 Purchase Payment(s):
The Purchase Payment(s) less premium taxes, if applicable, accepted
by Aetna at its home office. 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.
1.34 Reinvestment:
Aetna will mail a notice to the Certificate Holder at least 18
calendar days before a Guaranteed Term's Maturity Date. This notice
will contain the Terms available during current Deposit Periods with
their Guaranteed Rate(s), 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 state the Guaranteed Term and Guaranteed Rate(s)
which will apply to the reinvested Matured Term Value.
Page 11
1.35 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. The 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 Separate Account, shall not be charged
with other Aetna liabilities.
1.36 Subaccount(s):
The portion of the assets of the Separate Account that is allocated
to a particular Fund. Each Subaccount invests in the shares of only
one corresponding Fund.
1.37 Systematic Distribution Option:
An option elected by the Certificate Holder during the Accumulation
Period which establishes a schedule of withdrawals to be made
automatically from the Certificate Holder's Account.
1.38 Transfers:
The movement of invested amounts among the available Subaccount(s)
and/or any Guaranteed Account Guaranteed Term made available,
subject to terms and conditions established by Aetna, during the
Accumulation Period or the Annuity Period.
1.39 Withdrawal Value:
The amount payable by Aetna upon the withdrawal of any portion of
the Account Value.
1.40 Valuation Date:
The date and time for which a Subaccount calculates its net asset
value, usually from 4:00 p.m. Eastern time each day the New York
Stock Exchange is open, to 4:00 p.m. the next such business day.
II. GENERAL PROVISIONS
================================================================================
2.01 Change of Contract:
Only an authorized officer of Aetna may change the terms of the
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 Payout Option which begins
before the change.
Aetna may make any change that affects the Market Value Adjustment
(see Section III- Market Value Adjustment) 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
Guaranteed Term and will apply to all present and future Accounts.
Any change that affects any of the following under the Contract will
not apply to Accounts in existence before the effective date of the
change:
(a) Account Value
(b) Guaranteed Rates - Guaranteed Account
(c) Purchase Payment
(d) Withdrawal Value
(e) Transfers
(f) Net Investment Factor(s) - Separate Account (see Section III)
(g) Minimum Guaranteed Interest Rates
(h) Annuity Unit Value - Separate Account (see Section V)
(i) Annuity Payout Options (see Section V).
Page 12
Any change that affects the Annuity Payout Options and the tables
for the Annuity Payout Options may be made:
(a) No earlier than 12 months after the Account Effective Date;
and
(b) No earlier than 12 months after the effective date of any
prior change.
Any Account established on or after the effective date of any change
will be subject to the change. If the Contract Holder does not agree
to any change under this provision, no new Accounts may be
established under the Contract. The Contract may also be changed as
deemed necessary by Aetna to comply with federal or state law.
2.02 Change of Fund(s):
The assets of the Separate Account are segregated by Fund. If the
shares of any Fund are no longer available for investment by the
Separate Account or if, in our judgment, further investment in such
shares should become inappropriate in view of the purpose of the
Contract, Aetna may cease to make such Fund shares available for
investment under the Contract prospectively, or Aetna may substitute
shares of another Fund for shares already acquired. Aetna may also,
from time to time, add additional Funds. Any elimination,
substitution or addition of Funds will be done in accordance with
applicable state and federal securities laws. Aetna reserves the
right to substitute shares of another Fund for shares already
acquired without a proxy vote.
2.03 Nonparticipating Contract:
The Contract Holder, Certificate Holders or Beneficiaries will not
have a right to share in the earnings of Aetna.
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, or at the death of the first Certificate
Holder if the Account is owned jointly, any Annuity Payments
required to be made will be paid in accordance with Section III -
Death of Annuitant/Beneficiary. Aetna will determine other payments
and/or elections as of the end of the Valuation Date in which the
request is received at its home office. Such payments will be made
within seven calendar days of receipt at its home office of a
written claim for payment which is in good order, except as provided
in Section III - Payment of Withdrawal Value.
2.05 State Laws:
The Contract and Certificate comply with the laws of the state in
which they are delivered. Any withdrawal, death benefit amount, 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:
The Contract is between the Contract Holder and Aetna. The Contract
Holder has title to the Contract. Contract Holder rights are limited
to accepting or rejecting Contract modifications. The Certificate
Holder has all other rights to amounts held in his or her Account.
Each Certificate Holder shall own all amounts held in his or her
Account. Each Certificate Holder may make any choices allowed by the
Contract for his or her Account. Choices made under the Contract
must be in writing. If the Account is owned jointly, both joint
Certificate Holders must authorize any Certificate Holder change 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.
Page 13
The Certificate Holder may assign or transfer his or her rights
under the Contract. Aetna reserves the right not to accept
assignment or transfer to a nonnatural person. Any assignment or
transfer made under the Contract must be submitted to Aetna's home
office in writing and will not be effective until accepted by Aetna.
2.07 Designation of Beneficiary:
Each Certificate Holder shall name his or her Beneficiary and when
designating the Beneficiary may elect to specify in writing the form
of payment to the Beneficiary. Aetna will honor the specified form
of payment to the extent permitted under section 72(s) of the Code.
If the Account is owned jointly, both joint Certificate Holders must
agree in writing to the Beneficiary designated. The Beneficiary may
be changed at any time unless an irrevocable Beneficiary is
designated. Changes to a Beneficiary must be submitted to Aetna's
home office in writing and will not be effective until accepted by
Aetna. We will accept a change of Beneficiary designation after the
date of death and treat such Beneficiary designation as in effect as
of the date of death provided no portion of the death benefit has
been paid. If the Account is owned jointly, at the death of one
joint Certificate Holder, the survivor will be deemed the designated
Beneficiary; any other Beneficiary on record will then be treated as
a primary or a contingent Beneficiary, as originally designated
unless and until changed by the new designated Beneficiary. If a
designated Beneficiary defers taking payment of a death benefit, the
designated Beneficiary has the right to name another Beneficiary.
2.08 Misstatements and Adjustments:
If Aetna finds the age of any Annuitant to be misstated, the correct
facts will be used to adjust payments.
2.09 Incontestability:
After two years, the Contract will be incontestable.
2.10 Grace Period:
The Contract will remain in effect even if Purchase Payments are not
continued except as provided in the Payment of Adjusted Account
Value provision (see Section III - Payment of Adjusted Account
Value).
2.11 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, ACCOUNT VALUE, AND WITHDRAWAL PROVISIONS
================================================================================
3.01 Purchase Payment:
This amount is the actual Purchase Payment, less any premium taxes.
Aetna reserves the right to pay premium taxes when due and deduct
the amount from the Account Value when we pay the tax or at a later
date.
Each Purchase Payment will be allocated, as directed by the
Certificate Holder, among:
(a) Guaranteed Account Guaranteed Terms made available, subject to
terms and conditions established by Aetna; and/or
(b) The Subaccount(s) offered through the Separate Account.
For each Purchase Payment, the Certificate Holder shall tell Aetna
the percentage of each Purchase Payment to allocate to any available
Guaranteed Account Guaranteed Term and/or each Subaccount. Unless
different allocation instructions are received for any additional
Purchase Payment, the allocation will be the same as for the initial
Purchase Payment. If the same Guaranteed Term is no longer
available, the Purchase Payment will be allocated to the next
shortest Guaranteed Term available in the current Deposit Period. If
no shorter Guaranteed Term is available, the next longer Guaranteed
Term will be used.
Page 14
3.02 Premium Bonus:
A Premium Bonus of a certain percentage based on Net Cumulative
Purchase Payment(s) will be allocated to the Account. The applicable
percentage is shown on the Schedule - Accumulation Period. The
eligibility for a Premium Bonus is determined in accordance with
Section I - Definitions "Premium Bonus".
The Premium Bonus will not be included in the Account Value and will
be forfeited under the following circumstances:
(a) If the Certificate Holder exercises the right to cancel; or
(b) If the Certificate Holder applies the Adjusted Account Value
(minus any premium tax, if applicable) to any Annuity Payout
Option to the extent that a Premium Bonus has been allocated
within 24 months; or
(c) If the Certificate Holder dies, to the extent that a Premium
Bonus has been allocated after or within 12 months of the date
of death.
The Premium Bonus will be applied pro-rata to each Fund or
Guaranteed Term in the same ratio as the Purchase Payment is
allocated unless otherwise specified.
3.03 Certificate Holder's Account:
Aetna will maintain an Account for each Certificate Holder.
Aetna will declare from time to time the acceptability and the
minimum amount for initial and additional Purchase Payments.
3.04 Accumulation Units - Separate Account:
The portion of the Purchase Payment(s) applied to each Subaccount
under the Separate Account will determine the number of accumulation
units for that Subaccount. This number is equal to the portion of
the Purchase Payment(s) applied to each Subaccount divided by the
accumulation unit value (see Section III - Accumulation Unit Value
Separate Account) for the Valuation Date in which the Purchase
Payment is received in good order at Aetna's home office.
3.05 Accumulation Unit Value - Separate Account:
An accumulation unit value is computed by multiplying the net
investment factor for the current Valuation Date by the accumulation
unit value for the previous Valuation Date. The dollar value of
accumulation units, Separate Account assets, and variable Annuity
Payments may go up or down due to investment gain or loss.
3.06 Net Investment Factor(s) - Separate Account:
The net investment factor is used to measure the investment
performance of a Subaccount from one Valuation Date to the next. The
net investment factor for a Subaccount for any Valuation Date is
equal to the sum of 1.0000 plus the net investment rate. The net
investment rate equals:
(a) The net assets of the Subaccount on the current Valuation
Date; minus
(b) The net assets of the Subaccount on the preceding Valuation
Date; plus or minus
(c) Taxes or provisions for taxes, if any, attributable to the
operation of the Subaccount; divided by
(d) The total value of the Subaccount's accumulation and annuity
units on the preceding Valuation Date; minus
(e) A daily charge for mortality and expense risks, administrative
charges and any other fees deducted from investments in the
Separate Account.
The net investment rate may be either positive or negative.
Page 15
3.07 Market Value Adjustment (MVA):
An MVA will apply to any withdrawal from the Guaranteed Account
before the end of a Guaranteed Term when the withdrawal is:
(a) A Transfer (including a Transfer from a Guaranteed Account
Guaranteed Term if Dollar Cost Averaging is discontinued);
except for Transfers under Dollar Cost Averaging, or as
specified in Section I - Maturity Value Transfer;
(b) A full or partial withdrawal (excluding a free withdrawal, see
Section III - Deferred Sales Charge), except for a payment
made:
(1) Under a Systematic Distribution Option to the extent
that it does not exceed 10% of the Account Value in an
Account Year (an MVA will apply to any amount that
exceeds 10% unless such amount is required to meet the
minimum distribution requirements); or
(2) Under a qualified Contract, when the amount withdrawn is
equal to the required minimum distribution for the
Account calculated using a method permitted under the
Code and agreed to by Aetna; or
(c) Due to an election of Annuity Payout Option 1. Only a positive
MVA will apply upon election of Annuity Payout Option 2 or 3
(see Section V - Annuity Payout Options).
Full and partial withdrawals 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 resulting from a withdrawal(s). This total
may be greater or less than the Account Value of those
amounts; or
(b) The applicable portion of the Account Value in the Guaranteed
Account.
After the six-month period, the withdrawal or Transfer will be the
aggregate MVA amount, which may be greater or less than the Account
Value of those amounts.
Market value adjusted amounts will be equal to the amount withdrawn
multiplied by the following ratio:
(1 + i)^(x/365)
-------
(1 + j)^(x/365)
Where:
i is the Deposit Period yield
j is the current yield
x is the number of days remaining in the Guaranteed Term,
computed from Wednesday of the week of withdrawal.
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.
Page 16
3.08 Transfer of Account Value from the Subaccount(s) or Guaranteed Account
During the Accumulation Period:
Before an Annuity Payout Option is elected, all or any portion of
the Adjusted Account Value of the Certificate Holder's Account may
be transferred from any Subaccount or Guaranteed Term of the
Guaranteed Account:
(a) To any other Subaccount; or
(b) To any Guaranteed Term of the Guaranteed Account made
available in the current Deposit Period, subject to terms and
conditions specified by Aetna.
Transfer requests can be submitted as a percentage or as a dollar
amount. Aetna may establish a minimum transfer amount. Within a
Guaranteed Term Group, the amount to be withdrawn 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.
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 the Schedule - Accumulation Period. Additional
Transfers may be subject to a Transfer fee as shown on the Schedule
- Accumulation Period.
Amounts transferred from the Guaranteed Account under the Dollar
Cost Averaging program, or amounts transferred as a Matured Term
Value on or within one calendar month of a Maturity Date are not
subject to any Transfer fee and do not count against the annual
number of free Transfers.
Amounts allocated to Guaranteed Account Guaranteed Terms may not be
transferred to the Subaccounts or to another Guaranteed Term during
a Deposit Period or for 90 days after the close of a Deposit Period
except for:
(a) Matured Term Value(s) during the calendar month following the
Maturity Date;
(b) Amounts applied to an Annuity Payout Option;
(c) Amounts transferred under the Dollar Cost Averaging program;
(d) Amounts distributed under a Systematic Distribution Option;
and
(e) Amounts transferred by Aetna if Dollar Cost Averaging is
discontinued.
3.09 Notice to the Certificate Holder:
The Certificate Holder will receive quarterly statements from Aetna
of:
(a) The value of any amounts held in:
(1) The Guaranteed Account; and
(2) The Subaccount(s) under the Separate Account;
(b) The number of any accumulation units; and
(c) The accumulation 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 the Contract.
3.11 Systematic Distribution Options:
Aetna may, from time to time, make one or more Systematic
Distribution Options available during the Accumulation Period. When
a Systematic Distribution Option is elected, Aetna will make
automatic payments from the Certificate Holder's Account.
Any Systematic Distribution Option will be subject to the following
criteria:
(a) Any Systematic Distribution Option will be made available on
the basis of objective criteria consistently applied;
Page 17
(b) The availability of any Systematic Distribution Option may be
limited by terms and conditions applicable to the election of
such Systematic Distribution Option; and
(c) Aetna may discontinue the availability of a Systematic
Distribution Option at any time. Except to the extent required
to comply with applicable law, discontinuance of a Systematic
Distribution Option will apply only to future elections and
will not affect Systematic Distribution Options in effect at
the time an option is discontinued.
3.12 Liquidation of Withdrawal Value:
All or any portion of the Account Value may be withdrawn at any
time. Withdrawal requests may be submitted as a percentage of the
Account Value or as a specific dollar amount. Purchase Payment
amounts are withdrawn first, and then the excess value, if any.
Partial withdrawal amounts are withdrawn on a pro rata basis from
the Subaccount(s) and/or the Guaranteed Term(s) Groups of the
Guaranteed Account in which the Account Value is invested. Within a
Guaranteed Term Group, the amount to be withdrawn 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 withdrawn
amount shall be reduced by a Deferred Sales Charge, if applicable.
An MVA may apply to amounts withdrawn from the Guaranteed Account.
3.13 Deferred Sales Charge:
The Deferred Sales Charge only applies to the Purchase Payment(s)
portion withdrawn and varies according to the elapsed time since
deposit (see Schedule - Accumulation Period). Purchase Payment
amounts are withdrawn in the same order they were applied.
No Deferred Sales Charge is deducted from any portion of the
Purchase Payment which is paid:
(a) To a Beneficiary due to the Annuitant's death before Annuity
Payments start, up to a maximum of the aggregate Purchase
Payment(s) minus the total of all partial surrenders and
deductions made prior to the Annuitant's date of death;
(b) For an Annuity Payout Option (see Section V - Annuity Payout
Provisions);
(c) For a full withdrawal of the Account where the Account Value
is $2,500 or less and no withdrawals have been taken from the
Account within the prior 12 months;
(d) By Aetna under Section III - Payment of Adjusted Account
Value;
(e) Under a qualified Contract when the amount withdrawn is equal
to the minimum distribution required by the Code for the
Account, either paid under a Systematic Distribution Option or
calculated by the Certificate Holder using a method permitted
under the Code and agreed to by Aetna;
(f) As a withdrawal of up to 10% of the Account Value on the
Account anniversary in any Account Year less any amounts taken
as a Systematic Distribution Option or as a required minimum
distribution as described in (e) above. Aetna reserves the
right to increase the percentage of the free withdrawal
amount. The free withdrawal amount includes any Premium Bonus
amount applied.
3.14 Payment of Withdrawal Value:
Under certain emergency conditions, Aetna may defer payment:
(a) For a period of up to six months (unless not allowed by state
law); or
(b) As provided by federal law.
Page 18
3.15 Payment of Adjusted Account Value:
Upon 90 days written notice to the Certificate Holder, Aetna will
terminate any Account if the Account Value becomes less than $2,500
immediately following any partial withdrawal. Aetna does not intend
to exercise this right in cases where an Account is reduced to
$2,500 or less solely due to investment performance. A Deferred
Sales Charge will not be deducted from the Adjusted Account Value,
however, any Premium Bonus applied within 12 months of the
termination will be deducted from the Account Value.
3.16 Reinstatement:
The Certificate Holder may reinstate the proceeds of a full
withdrawal, subject to terms and conditions established by Aetna.
IV. DEATH BENEFIT
================================================================================
4.01 Death Benefit Options:
If the Certificate Holder or Annuitant dies before an Annuity Payout
Option starts, the Beneficiary is entitled to a death benefit. If
the Account is owned jointly, the death benefit applies at the death
of the first joint Certificate Holder to die (see Section IV -
Options Available to Beneficiary). The death benefit option selected
is reflected on the Schedule-Accumulation Period.
4.02 Death Benefit Option I:
The amount of the death benefit is determined as follows:
(a) Death of the Annuitant.
The death benefit calculated as of the Claim Date is the
greater of:
(1) The sum of all Purchase Payment(s) made, adjusted for
amount(s) withdrawn or applied to an Annuity Payout
Option; or
(2) The Account Value on the Claim Date, less any Premium
Bonus allocated to the Account after or within 12 months
of the date of death.
On the Claim Date, if the amount of the death benefit is
greater than the Account Value, the amount by which the
death benefit exceeds the Account Value will be
deposited and allocated to the money market fund
available through the Separate Account.This increases
the Account Value available to the Beneficiary to an
amount equal to the death benefit.
The amount paid to the Beneficiary will equal the
Adjusted Account Value on the date the payment request
is processed. This amount may be greater or less than
the amount of the death benefit on the Claim Date. The
Beneficiary may elect a death benefit payment option as
permitted in Section IV - Options Available to
Beneficiary.
(b) Death of the Certificate Holder if the Certificate Holder is
not the Annuitant.
On the Claim Date, the amount of the death benefit equals the
Account Value less any Premium Bonus allocated to the Account
after or within 12 months of the date of death.
The amount paid to the Beneficiary will equal the Adjusted
Account Value on the date the payment request is processed. A
Deferred Sales Charge may apply to any full or partial payment
of the death benefit. The Beneficiary may elect a death
benefit payment option as permitted in Section IV - Options
Available to Beneficiary.
Page 19
(c) Death of a spouse who becomes a successor Certificate
Holder/Annuitant.
The amount of the death benefit paid to the Beneficiary at the
death of a successor Certificate Holder/Annuitant is the
greater of the values as described in (a) above except that in
calculating (a)(1), the Account Value on the Claim Date for
the prior Certificate Holder's death is treated as the initial
Purchase Payment.
4.03 Death Benefit Option II:
The amount of the death benefit is determined as follows:
(a) Death of the Annuitant.
The death benefit calculated as of the Claim Date is the
greatest of:
(1) The sum of all Purchase Payment(s) made, adjusted for
amount(s) withdrawn or applied to an Annuity Payout
Option; or
(2) The Account Value on the Claim Date, less any Premium
Bonus allocated to the Account after or within 12 months
of the date of death; or
(3) The "Step-up Value" on the Claim Date less any Premium
Bonus allocated to the Account after or within 12 months
of the date of death.
On the Account Effective Date, the Step-up Value is
equal to the Account Value. Thereafter, on each
anniversary of the Account Effective Date until the
anniversary immediately preceding the Annuitant's 85th
birthday or death, whichever is earlier, the Step-up
Value is equal to the greater of:
(a) The Step-up Value most recently calculated,
adjusted for Purchase Payment(s) made, any Premium
Bonus allocated and amount(s) withdrawn or applied
to an Annuity Payout Option during the prior
Account Year; or
(b) The Account Value on that anniversary of the
Account Effective Date.
On each anniversary of the Account Effective Date after
the Annuitant's 85th birthday, the Step-up Value shall
equal the Step-up Value on the anniversary immediately
preceding the Annuitant's 85th birthday, adjusted for
Purchase Payment(s) made, Premium Bonus allocated and
amounts withdrawn or applied to an Annuity Payout Option
since that anniversary.
On the Claim Date, the Step-up Value shall equal the
Step-up Value on the anniversary of the Account
Effective Date immediately preceding the date of death,
adjusted for Purchase Payment(s) made and amount(s)
withdrawn or applied to an Annuity Payout Option since
that anniversary, less any Premium Bonus allocated to
the Account after or within 12 months of the date of
death.
On the Claim Date, if the amount of the death benefit is greater
than the Account Value, the amount by which the death benefit
exceeds the Account Value will be deposited and allocated to the
money market fund available through the Separate Account. This
increases the Account Value available to the Beneficiary to an
amount equal to the death benefit.
The amount paid to the Beneficiary will equal the Adjusted Account
Value on the date the payment request is processed. This amount may
be greater or less than the amount of the death benefit on the Claim
Date. The Beneficiary may elect a death benefit payment option as
permitted in Section IV - Options Available to the Beneficiary.
(b) Death of the Certificate Holder if the Certificate Holder is
not the Annuitant.
On the Claim Date, the amount of the death benefit equals the
Account Value less any Premium Bonus allocated to the Account
after or within 12 months of the date of death.
Page 20
The amount paid to the Beneficiary will equal the Adjusted
Account Value on the date the payment request is processed. A
Deferred Sales Charge may apply to any full or partial payment
of the death benefit. The Beneficiary may elect a death
benefit payment option as permitted in Section IV - Options
Available to the Beneficiary.
(c) Death of a spouse who becomes a successor Certificate Holder/
Annuitant.
The amount of the death benefit paid to the Beneficiary at the
death of a successor Certificate Holder/Annuitant is the
greater of the values as described in (a) above except that in
calculating (a)(1), the Account Value on the Claim Date for
the prior Certificate Holder's death is treated as the initial
Purchase Payment.
4.04 Options Available to Beneficiary:
Prior to any election, or until amounts must be otherwise
distributed under this section, the Account Value will be retained
in the Account. The Beneficiary has the right to allocate or
reallocate any amount to any of the available investment options
(subject to an MVA, if applicable). If the Certificate Holder has
specified the form of payment to the Beneficiary, the death benefit
will be paid as elected by the Certificate Holder in the Beneficiary
designation, to the extent permitted by section 72(s) of the Code.
If the Certificate Holder has not specified a form of payment, the
Beneficiary may elect one of the following options.
(a) When the Certificate Holder is the Annuitant or when the
Certificate Holder is a nonnatural person, and the Annuitant
dies:
(1) If the Beneficiary is the surviving spouse, the spousal
Beneficiary will be the successor Certificate Holder and
may exercise all Certificate Holder rights under the
Contract and continue in the Accumulation Period, or may
elect (i) or (ii) below. Under the Code, distributions
from the Account are not required until the spousal
Beneficiary's death. The spousal Beneficiary may elect
to:
(i) Apply some or all of the Adjusted Account Value to
an Annuity Payout Option (see Section V); or
(ii) Receive, at any time, a lump sum payment equal to
the Adjusted Account Value.
(2) If the Beneficiary is other than the surviving spouse,
then options (i) or (ii) above apply. Any portion of the
Adjusted Account Value not applied to an Annuity Payout
Option within one year of the death must be distributed
within five years of the date of death.
(3) If no Beneficiary exists, a lump sum payment equal to
the Adjusted Account Value must be made to the
Annuitant's estate within five years of the date of
death.
(4) If the Beneficiary is an entity, a lump sum payment
equal to the Adjusted Account Value must be made within
five years of the date of death, unless otherwise
permitted by IRS regulation or ruling.
(b) When the Certificate Holder is not the Annuitant and the
Certificate Holder dies:
(1) If the Beneficiary is the Certificate Holder's surviving
spouse, the spousal Beneficiary will be the successor
Certificate Holder and may exercise all Certificate
Holder rights under the Contract and continue in the
Accumulation Period, or may elect (i) or (ii) below.
Under the Code, distributions from the Account are not
required until the spousal Beneficiary's death. The
spousal Beneficiary may elect to:
(i) Apply some or all of the Adjusted Account Value to
an Annuity Payout Option (see Section V); or
(ii) Receive, at any time, a lump sum payment equal to
the Withdrawal Value.
(2) If the Beneficiary is other than the Certificate
Holder's surviving spouse, then options (i) or (ii)
under (1) above apply. Any portion of the death benefit
not applied to an Annuity Payout Option within one year
of the Certificate Holder's death must be distributed
within five years of the date of death.
Page 21
(3) If no Beneficiary exists, a lump sum payment equal to
the Withdrawal Value must be made to the Certificate
Holder's estate within five years of the date of death.
(4) If the Beneficiary is an entity, a lump sum payment
equal to the Withdrawal Value must be made within five
years of the date of death, unless otherwise permitted
by IRS regulation or ruling.
(c) When the Certificate Holder is a natural person and not the
Annuitant and the Annuitant dies, the Beneficiary (or the
Certificate Holder if no Beneficiary exists) may elect to:
(1) Apply all or some of the Adjusted Account Value to an
Annuity Payout Option within 60 days of the date of
death; or
(2) Receive a lump sum payment equal to the Adjusted Account
Value.
V. Annuity Payout Provisions
================================================================================
5.01 Annuity Payout Options:
Annuity Payout Option 1 - Payments for a specified period:
Payments are made for the number of years specified by the
Certificate Holder. The number of years must be at least ten and not
more than 30.
Annuity Payout Option 2 - Life income based on the life of one Annuitant:
When this option is elected, the Certificate Holder must choose one
of the following:
(a) Payments cease at the death of the Annuitant;
(b) Payments are guaranteed for a specified period from five to 30
years;
(c) Cash refund: when the Annuitant dies, the Beneficiary will
receive a lump sum payment equal to the amount applied to the
Annuity Payout Option (less any premium tax, if applicable)
less the total amount of Annuity Payments made prior to such
death. This cash refund feature is only available if the total
amount applied to the Annuity Payout Option is allocated to a
fixed Annuity Payments.
Annuity Payout Option 3 - Life income based on the lives of two
Annuitants:
Payments are made for the lives of two Annuitants, one of whom is
designated the primary Annuitant and the other the secondary
Annuitant, and cease when both Annuitants have died. When this
option is elected, the Certificate Holder must also choose one of
the following:
(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) 100% of the payment to continue after the first death and
payments are guaranteed for a period of five to 30 years;
(e) 100% of the payment to continue at the death of the secondary
Annuitant and 50% of the payment to continue at the death of
the primary Annuitant; or
(f) 100% of the payment continues after the first death with a
cash refund feature. When the primary Annuitant and secondary
Annuitant die, the Beneficiary will receive a lump sum payment
equal to the amount applied to the Annuity Payout Option (less
any premium tax) less the total amount of Annuity Payments
paid prior to such death. This cash refund feature is only
available if the total amount applied to the Annuity Payout
Option is allocated to fixed Annuity Payments.
Page 22
If fixed Annuity Payments are chosen under Annuity Payout Option 1,
2 (a) or (b), or 3 (a) or (d), the Certificate Holder may elect, at
the time the Annuity Payout Option is selected, an annual increase
of one, two or three percent compounded annually.
As allowed under applicable state law, Aetna reserves the right to
offer additional Annuity Payout Options.
5.02 Annuity Payment Choices:
The Certificate Holder may tell Aetna to apply the Adjusted Account
Value (minus any premium tax, if applicable,) to any Annuity Payout
Option The first Annuity Payment may not be earlier than one
calendar year after the initial Purchase Payment nor later than the
later of:
(a) The first day of the month following the Annuitant's 85th
birthday; or
(b) The tenth anniversary of the last Purchase Payment. In lieu of
the election of an Annuity Payout Option, the Certificate
Holder may tell Aetna to make a lump sum payment.
When an Annuity Payout Option is chosen, Aetna must also be told if
payments are to be made other than monthly and whether to pay:
(a) Fixed Annuity Payments using the General Account;
(b) Variable Annuity Payments using any of the Subaccount(s)
available under the contract for the Annuity Period; or
(c) A combination of (a) and (b).
If fixed Annuity Payments are chosen, the payment rate for the
option chosen, shown on the tables immediately following, reflects
at least the minimum guaranteed interest rate (see Schedule -
Annuity Period), but may reflect a higher interest rate.
If variable Annuity Payments are chosen, the initial Annuity Payment
for the option elected reflects the Assumed Interest Rate (AIR)
elected (see Schedule - Annuity Period). The Certificate Holder must
allocate specified amounts among the Subaccounts available during
the Annuity Period. Aetna reserves the right to limit the number of
Subaccounts available at one time and to limit the number of
Subaccounts the Certificate Holder may select during the Annuity
Period. Subject to terms and conditions established by Aetna, the
Certificate Holder may transfer all or any portion of the amount
allocated to a Subaccount to another Subaccount. The number of
Transfers allowed each year is shown on Schedule - Annuity Period.
Transfer requests must be submitted as a percentage of the
allocation among the Subaccounts. Aetna reserves the right to
establish a minimum transfer amount. Transfers will be effective as
of the Valuation Date in which Aetna receives a transfer request in
good order at its home office.
5.03 Terms of Annuity Payout Options:
(a) When payments start, the age of the Annuitant plus the number
of years for which payments are guaranteed must not exceed 95.
(b) An Annuity Payout 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 minimum annual Annuity Payment amount
based upon increases reflected in the Consumer Price
Index-Urban, (CPI-U) since July 1, 1993.
(c) If fixed Annuity Payments are chosen Aetna will use the
applicable current rate, based upon actual ages if it will
provide higher fixed Annuity Payments.
Page 23
(d) For purposes of calculating the first payment of variable or
guaranteed fixed Annuity Payments based on guaranteed rates,
the primary Annuitant's and secondary Annuitant's adjusted age
will be used. The primary Annuitant's and secondary
Annuitant's adjusted age is his or her age as of the birthday
closest to the Annuity Payments commencement date reduced by
one year for commencement dates occurring during the period of
time from July 1, 1993 through December 31, 1999. The primary
Annuitant's and secondary Annuitant's age will be reduced by
two years for commencement dates occurring during the period
of time from January 1, 2000 through December 31, 2009. The
primary Annuitant's and secondary Annuitant's age will be
reduced by one additional year for Annuity commencement dates
occurring in each succeeding decade.
The attached payment rates for Annuity Payout Options 2 and 3
are based on mortality from 1983 Table a.
(e) Assumed Interest Rate (AIR) is the interest rate used to
determine the amount of the first payment under variable
Annuity Payments as shown on Schedule - Annuity Period. The
Separate Account must earn this rate plus enough to cover the
mortality and expense risks charges (which may include
profit), administrative charges and any other Separate Account
fees if future variable Annuity Payments are to remain level,
(see Schedule - Annuity Period).
(f) Once elected, Annuity Payments cannot be commuted to a lump
sum except for variable Annuity Payments under Annuity Payout
Option 1. If such a lump sum is requested after the start of
payments, it will be treated as a withdrawal and will be
subject to any applicable Deferred Sales Charge (see Section I
- Deferred Sales Charge).
5.04 Death of Annuitant/Beneficiary:
(a) Certificate Holder is the Annuitant: When the Certificate
Holder is the Annuitant and the Annuitant dies under Annuity
Payout Option 1 or 2(b), or both the primary Annuitant and the
secondary Annuitant die under Annuity Payout Option 3(d), any
remaining payments will continue to the Beneficiary, or if
elected by the Beneficiary and not prohibited by the
Certificate Holder in the Beneficiary designation, the present
value of any remaining payments will be paid in one sum to the
Beneficiary. If Annuity Payout Option 3 has been elected and
the Certificate Holder dies, the remaining payments will
continue to the successor payee. If no successor payee has
been designated, the Beneficiary will be treated as the
successor payee. If the Account has joint Certificate Holders,
the surviving joint Certificate Holder will be deemed the
successor payee.
(b) Certificate Holder is not the Annuitant: When the Certificate
Holder is not the Annuitant and the Certificate Holder dies,
any remaining payments will continue to the successor payee.
If no successor payee has been designated, the Beneficiary
will be treated as the successor payee. If the Account has
joint Certificate Holders, the surviving joint Certificate
Holder will be deemed the successor payee.
If the Annuitant dies under Annuity Payout Option 1 or 2(b),
or both the primary Annuitant and secondary Annuitant die
under Annuity Payout Option 3(d), any remaining payments will
continue to the Beneficiary, or if elected by the Beneficiary
and not prohibited by the Certificate Holder in the
Beneficiary designation, the present value of any remaining
payments will be paid in one sum to the Beneficiary. If
Annuity Payout Option 3 has been elected and the Annuitant
dies, the remaining payments will continue to the Certificate
Holder.
(c) No Beneficiary Named/Surviving: If there is no Beneficiary,
the present value of any remaining payments will be paid in
one sum to the Certificate Holder, or if the Certificate
Holder is not living, then to the Certificate Holder's estate.
(d) If the Beneficiary or the successor payee dies while receiving
Annuity Payments, any remaining payments will continue to the
successor Beneficiary/payee or upon election by the successor
Beneficiary/payee, the present value of any remaining payments
will be paid in one sum to the successor Beneficiary/payee. If
no successor Beneficiary/payee has been designated, the
present value of any remaining payments will be paid in one
sum to the Beneficiary's/payee's estate.
Page 24
(e) The present value will be determined as of the Valuation Date
in which proof of death acceptable to Aetna and a request for
payment is received at Aetna's home office.
5.05 Annuity Units - Separate Account:
The number of annuity units is based on the amount of the first of
the variable Annuity Payments which is equal to:
(a) The portion of the Account Value applied to pay a variable
Annuity Payments (minus any applicable premium tax); divided
by
(b) 1,000; multiplied by
(c) The payment rate on the tables immediately following, for the
option chosen.
Such amount, or portion, of the variable Annuity Payments will be
divided by the appropriate annuity unit value (see Section V -
Annuity Unit Value - Separate Account) on the tenth Valuation Date
before the due date of the first payment to determine the number of
annuity units. The number of annuity units remains fixed. Each
future payment is equal to the sum of the products of each annuity
unit value multiplied by the appropriate number of annuity units.
The annuity unit value on the tenth Valuation Date prior to the due
date of the payment is used.
5.06 Annuity Unit Value - Separate Account:
For any Valuation Date, an annuity unit value is equal to:
(a) The value for the previous Valuation Date; multiplied by
(b) The annuity net return factor(s) (see Section V - Net Return
Factor(s) - Separate Account) for the Valuation Date;
multiplied by
(c) A factor to reflect the AIR (see Schedule - Annuity Period).
The annuity unit value and the amount of Annuity Payments may go up
or down due to investment gain or loss.
5.07 Net Return Factor(s) - Separate Account:
The net return factor(s) are used to compute all variable Annuity
Payments for any Subaccount.
The net return factor for each Subaccount 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 Subaccount at the end of a
Valuation Date; minus
(b) The value of the shares of the Subaccount at the start of the
Valuation Date; plus or minus
(c) Taxes (or reserves for taxes) on the Separate Account (if
any); divided by
(d) The total value of the annuity units at the start of the
Valuation Date; minus
(e) A daily charge for mortality and expense risks, which may
include profit, a daily administrative charge and any other
fees deducted from investments in the Separate Account.
A net return rate may be more or less than 0%.
The value of a share of the Subaccount is equal to the net assets of
the Subaccount divided by the number of shares outstanding.
Annuity Payments shall not be changed due to changes in the
mortality or expense results or administrative charges.
Page 25
OPTION 1: Payments for a Specified Period
--------------------------------------------------------------------------------
Monthly Amount for Each $1,000*
Rates for a Fixed Annuity with a 3% Guaranteed Interest Rate
--------------------------------------------------------------------------------
Years Payment Years Payment
--------------------------------------------------------------------------------
10 $9.61 21 $5.32
11 8.86 22 5.15
12 8.24 23 4.99
13 7.71 24 4.84
14 7.26 25 4.71
15 6.87 26 4.59
16 6.53 27 4.47
17 6.23 28 4.37
18 5.96 29 4.27
19 5.73 30 4.18
20 5.51
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
First Monthly Amount for Each $1,000*
Rates for a Variable Annuity with a 3.5% AIR
--------------------------------------------------------------------------------
Years Payment Years Payment
--------------------------------------------------------------------------------
10 $9.83 21 $5.56
11 9.09 22 5.24
12 8.46 23 5.24
13 7.94 24 5.09
14 7.49 25 4.96
15 7.10 26 4.84
16 6.76 27 4.73
17 6.47 28 4.63
18 6.20 29 4.53
19 5.97 30 4.45
20 5.75
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
First Monthly Amount for Each $1,000*
Rates for a Variable Annuity with a 5% AIR
--------------------------------------------------------------------------------
Years Payment Years Payment
--------------------------------------------------------------------------------
10 $10.51 21 $6.33
11 9.77 22 6.17
12 9.16 23 6.02
13 8.64 24 5.88
14 8.20 25 5.76
15 7.82 26 5.65
16 7.49 27 5.54
17 7.20 28 5.45
18 6.94 29 5.36
19 6.71 30 5.28
20 6.51
--------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
Page 26
Option 2: Life Income Based on the Life of One Annuitant
------------------------------------------------------------------------------------------------------------------------------------
Monthly Payment Amount for Each $1,000*
Rates for a Fixed Annuity with 3% Guaranteed Interest Rate
Option 2(b): Option 2(b): Option 2(b): Option 2(b):
Adjusted Option 2(a): payments payments payments payments
Age of payments for guaranteed guaranteed guaranteed guaranteed Option 2(c):
Annuitant life 5 years 10 years 15 years 20 years Cash Refund
Male Female 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 $4.04 $3.78
51 4.34 3.97 4.33 3.96 4.30 3.95 4.23 3.92 4.14 3.88 4.10 3.84
52 4.43 4.03 4.41 4.03 4.37 4.01 4.30 3.98 4.20 3.93 4.16 3.89
53 4.51 4.10 4.50 4.10 4.45 4.08 4.37 4.04 4.26 3.99 4.23 3.95
54 4.60 4.18 4.59 4.17 4.54 4.15 4.45 4.11 4.32 4.04 4.29 4.01
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.39 4.11 4.37 4.07
56 4.80 4.34 4.78 4.33 4.72 4.30 4.61 4.25 4.45 4.17 4.44 4.13
57 4.91 4.42 4.89 4.41 4.82 4.38 4.69 4.32 4.51 4.23 4.52 4.20
58 5.03 4.52 5.00 4.51 4.92 4.47 4.78 4.40 4.58 4.30 4.61 4.28
59 5.15 4.61 5.12 4.60 5.03 4.56 4.87 4.48 4.65 4.37 4.69 4.35
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.71 4.44 4.78 4.43
61 5.43 4.83 5.39 4.81 5.27 4.76 5.06 4.66 4.78 4.51 4.88 4.52
62 5.58 4.95 5.53 4.93 5.39 4.87 5.16 4.75 4.84 4.58 4.98 4.60
63 5.74 5.08 5.69 5.05 5.53 4.98 5.26 4.85 4.90 4.65 5.09 4.70
64 5.91 5.21 5.85 5.18 5.66 5.10 5.36 4.95 4.96 4.72 5.20 4.80
65 6.10 5.36 6.03 5.32 5.81 5.22 5.46 5.05 5.02 4.79 5.31 4.90
66 6.30 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.08 4.86 5.44 5.01
67 6.51 5.67 6.41 5.63 6.12 5.50 5.66 5.26 5.13 4.93 5.56 5.12
68 6.73 5.85 6.62 5.80 6.28 5.65 5.77 5.37 5.18 5.00 5.70 5.24
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 5.23 5.06 5.84 5.37
70 7.23 6.25 7.07 6.18 6.61 5.97 5.96 5.60 5.27 5.12 5.98 5.51
71 7.51 6.47 7.32 6.39 6.79 6.14 6.05 5.71 5.31 5.18 6.14 5.65
72 7.80 6.71 7.58 6.62 6.96 6.32 6.14 5.83 5.34 5.23 6.30 5.80
73 8.12 6.98 7.85 6.86 7.14 6.50 6.23 5.94 5.37 5.28 6.47 5.96
74 8.46 7.26 8.14 7.12 7.32 6.69 6.31 6.04 5.40 5.32 6.65 6.13
75 8.82 7.57 8.45 7.40 7.50 6.89 6.38 6.14 5.42 5.35 6.83 6.31
------------------------------------------------------------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
Page 27
Option 2: Life Income Based on the Life of One Annuitant
-------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 3.5% AIR
-------------------------------------------------------------------------------------------------------------------
Option 2(b): Option 2(b): Option 2(b): Option 2(b):
Adjusted Option 2(a): payments payments payments payments
Age of payments for guaranteed guaranteed guaranteed guaranteed
Annuitant life 5 years 10 years 15 years 20 years
---------------------------------------------------------------------------------------------------
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
-------------------------------------------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
Page 28
Option 2: Life Income Based on the Life of One Annuitant
-------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 5% AIR
-------------------------------------------------------------------------------------------------------------------
Option 2(b): Option 2(b): Option 2(b): Option 2(b):
Adjusted Option 2(a): payments payments payments payments
Age of payments for guaranteed guaranteed guaranteed guaranteed
Annuitant life 5 years 10 years 15 years 20 years
---------------------------------------------------------------------------------------------------
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 5.97 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
-------------------------------------------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
Page 29
Option 3: Life Income Based on the Lives of Two Annuitants
------------------------------------------------------------------------------------------------------------------------------------
Monthly Payment Amount for Each $1,000*
Rates for a Fixed Annuity with 3% Guaranteed Interest Rate
Primary Annuitant is Female and Secondary Annuitant is Male
------------------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
----------------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e) Option 3(f)
------------------------------------------------------------------------------------------------------------------------------------
55 50 $3.75 $4.07 $4.26 $3.75 $3.98 $3.72
55 55 3.88 4.25 4.47 3.87 4.06 3.85
55 60 3.99 4.44 4.71 3.98 4.12 3.94
60 55 4.06 4.47 4.71 4.06 4.37 4.02
60 60 4.24 4.71 4.99 4.23 4.47 4.17
60 65 4.38 4.97 5.32 4.38 4.54 4.29
65 60 4.49 5.01 5.32 4.48 4.89 4.39
65 65 4.72 5.33 5.70 4.71 5.02 4.59
65 70 4.93 5.68 6.15 4.91 5.14 4.74
70 65 5.07 5.75 6.17 5.05 5.60 4.87
70 70 5.40 6.21 6.70 5.36 5.79 5.13
70 75 5.69 6.68 7.32 5.62 5.96 5.29
75 70 5.89 6.82 7.40 5.81 6.63 5.48
75 75 6.37 7.45 8.15 6.23 6.92 5.78
75 80 6.78 8.11 8.99 6.54 7.15 5.93
------------------------------------------------------------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
Page 30
Option 3: Life Income Based on the Lives of Two Annuitants
-------------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 3.5% AIR
Primary Annuitant Is Female and Secondary Annuitant Is Male
-------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
----------------------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e)
-------------------------------------------------------------------------------------------------------------------------
55 50 $4.03 $4.36 $4.55 $4.03 $4.27
55 55 4.16 4.54 4.76 4.15 4.34
55 60 4.27 4.73 5.00 4.26 4.40
60 55 4.34 4.76 5.00 4.34 4.65
60 60 4.51 4.99 5.27 4.50 4.74
60 65 4.66 5.25 5.61 4.65 4.82
65 60 4.76 5.29 5.60 4.75 5.16
65 65 4.99 5.61 5.99 4.98 5.30
65 70 5.19 5.97 6.44 5.17 5.41
70 65 5.34 6.03 6.46 5.31 5.88
70 70 5.67 6.49 6.99 5.62 6.07
70 75 5.95 6.96 7.61 5.87 6.23
75 70 6.16 7.10 7.68 6.07 6.90
75 75 6.64 7.73 8.43 6.48 7.19
75 80 7.04 8.39 9.29 6.79 7.42
-------------------------------------------------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
Page 31
Option 3: Life Income Based on the Lives of Two Annuitants
-------------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 5% AIR
Primary Annuitant is Female and Secondary Annuitant is Male
-------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
----------------------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e)
-------------------------------------------------------------------------------------------------------------------------
55 50 $4.93 $5.27 $5.46 $4.93 $5.17
55 55 5.04 5.44 5.66 5.04 5.23
55 60 5.15 5.63 5.91 5.14 5.29
60 55 5.21 5.65 5.89 5.21 5.53
60 60 5.37 5.87 6.16 5.37 5.62
60 65 5.52 6.14 6.51 5.51 5.70
65 60 5.61 6.16 6.49 5.60 6.03
65 65 5.83 6.49 6.87 5.82 6.15
65 70 6.04 6.84 7.34 6.00 6.27
70 65 6.17 6.90 7.33 6.13 6.73
70 70 6.49 7.35 7.87 6.44 6.91
70 75 6.77 7.84 8.51 6.68 7.07
75 70 6.97 7.96 8.56 6.87 7.75
75 75 7.45 8.60 9.33 7.27 8.04
75 80 7.86 9.28 10.20 7.57 8.27
-------------------------------------------------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
Page 32
Option 3: Life Income Based on the Lives of Two Annuitants
------------------------------------------------------------------------------------------------------------------------------------
Monthly Payment Amount for Each $1,000*
Rates for a Fixed Annuity with 3% Guaranteed Interest Rate
Primary Annuitant is Male and Secondary Annuitant is Female
------------------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
----------------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e) Option 3(f)
------------------------------------------------------------------------------------------------------------------------------------
55 50 $3.69 $4.05 $4.27 $3.69 $4.13 $3.67
55 55 3.88 4.25 4.47 3.87 4.25 3.85
55 60 4.06 4.47 4.71 4.06 4.36 4.02
60 55 3.99 4.44 4.71 3.98 4.55 3.94
60 60 4.24 4.71 4.99 4.23 4.70 4.17
60 65 4.49 5.01 5.32 4.48 4.85 4.39
65 60 4.38 4.97 5.32 4.38 5.10 4.29
65 65 4.72 5.33 5.70 4.71 5.32 4.59
65 70 5.07 5.75 6.17 5.05 5.54 4.87
70 65 4.93 5.68 6.15 4.91 5.86 4.74
70 70 5.40 6.21 6.70 5.36 6.18 5.13
70 75 5.89 6.82 7.40 5.81 6.49 5.48
75 70 5.69 6.68 7.32 5.62 6.92 5.29
75 75 6.37 7.45 8.15 6.23 7.40 5.78
75 80 7.07 8.34 9.16 6.78 7.85 6.17
------------------------------------------------------------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
Page 33
Option 3: Life Income Based on the Lives of Two Annuitants
-------------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 3.5% AIR
Primary Annuitant is Male and Secondary Annuitant is Female
-------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
----------------------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e)
-------------------------------------------------------------------------------------------------------------------------
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
-------------------------------------------------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
Page 34
Option 3: Life Income Based on the Lives of Two Annuitants
-------------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 5% AIR
Primary Annuitant Is Male and Secondary Annuitant is Female
-------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
----------------------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e)
-------------------------------------------------------------------------------------------------------------------------
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
-------------------------------------------------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
Page 35
================================================================================
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. AMOUNTS ALLOCATED TO THE GUARANTEED ACCOUNT, IF WITHDRAWN
BEFORE THE GUARANTEED TERM MATURITY DATE, MAY BE SUBJECT TO A MARKET VALUE
ADJUSTMENT. THE MARKET VALUE ADJUSTMENT MAY RESULT IN AN INCREASE OR A DECREASE
IN THE ACCOUNT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT APPLY TO A
GUARANTEED TERM AT THE TIME OF ITS MATURITY.
GM-VA-99(PB)
