[Aetna Logo] -----------------------------------------------------------------
Aetna Life Insurance and Annuity Company
000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
000-000-0000
If you have questions about the Contract, call the toll-free
number shown.
Group Combination Deferred Annuity Contract (Nonparticipating)
Aetna Life Insurance and Annuity Company (ALIAC), a stock company, will pay
benefits according to the terms and conditions set forth in this Contract. This
Contract is delivered in [YOUR STATE] and is subject to the laws of that
jurisdiction.
Please read this Contract carefully. It states ALIAC's contractual rights and
obligations as well as the rights and obligations of the Contract Holder and
Participants.
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
Right to Cancel
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The Contract Holder may cancel this Contract within 10 days of receiving it by
returning it to ALIAC at the address shown above, or to the agent from whom it
was purchased. Within seven days of receiving the cancellation request at its
Home Office, ALIAC will return any Contributions received, plus any increase, or
minus any decrease in value, on the amount, if any, allocated to the Separate
Account.
Signed at the Home Office on the Effective Date.
[signature of Xxxx X. Xxxxxxx]
/s/ Xxxxxx X. XxXxxxxxx
/s/ Xxxx X. Xxxxxxx
President Secretary
All payments and values provided by the group Contract, when based on the
investment experience of a Separate Account, are variable and the fixed dollar
amount is not guaranteed. Amounts allocated to the Guaranteed Accumulation
Account, if withdrawn before a guaranteed term maturity date, may be subject to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 Individual Account value.
G-CDA(99)
Table of Contents
Page
Contract Schedule I. Accumulation Phase
Contract Schedule II. Annuity Phase
Definitions
Section 1. General Contract Provisions
1.01 Entire Contract .................................................
1.02 Nonparticipating Contract
1.03 Control of Contract .............................................
1.04 Certificate ....................................................
1.05 Incontestability ................................................
1.06 Grace Period ....................................................
1.07 Change of Contract ..............................................
1.08 Payments ........................................................
1.09 Deferral of Payment .............................................
1.10 Proof of Age ....................................................
1.11 Evidence of Survival ............................................
1.12 Misstatements and Adjustments ...................................
1.13 Reports .........................................................
1.14 State Laws.......................................................
1.15 Claims of Creditors .............................................
1.16 Maintenance Fee .................................................
1.17 Charges for Additional Services .................................
1.18 Charges Subject to Change.......................................
Part I. Accumulation Phase
Section 2. Contributions and Individual Account Value
2.01 Contributions ...................................................
2.02 Premium Tax .....................................................
2.03 Individual Account ..............................................
2.04 Experience Credit................................................
2.05 Individual Account Value ........................................
Section 3. Separate Account
3.01 General .........................................................
3.02 Funds Available .................................................
3.03 Change or Substitution of Funds .................................
3.04 Accumulation Units
3.05 Accumulation Unit Value
3.06 Net Investment Factor
3.07 Charges to the Separate Account .................................
3.08 Separate Account Transfers.......................................
3.09 Withdrawals from the Separate Account............................
Section 4. Aetna GET Fund
4.01 GET Fund Guarantee Period .......................................
4.02 GET Fund Offering Period ........................................
4.03 GET Fund Guarantee ..............................................
4.04 GET Fund Maturity Date ..........................................
4.05 Transfers or Withdrawals from the GET Fund ......................
Section 5. Fixed Account
5.01 Fixed Account Minimum Guaranteed Interest Rate ..................
5.02 Transfers from the Fixed Account
5.03 Withdrawals from the Fixed Account
Section 6. Fixed Plus Account
6.01 Fixed Plus Account Minimum Guaranteed Interest Rate .............
6.02 Transfers from the Fixed Plus Account
6.03 Partial Withdrawals from the Fixed Plus Account .................
6.04 Full Withdrawal of the Total Amount in the Fixed Plus Account ...
6.05 Waiver of Fixed Plus Account Full Withdrawal Provision ..........
Section 7. Guaranteed Accumulation Account (GAA)
7.01 Nonunitized Separate Account ....................................
7.02 GAA Minimum Guaranteed Interest Rate ............................
7.03 Deposit Period ..................................................
7.04 Guaranteed Term .................................................
7.05 Guaranteed Term Groups ..........................................
7.06 Maturity Date, Maturity Value and Reinvestment ..................
7.07 Transfers and Withdrawals from the GAA ..........................
7.08 Application of the Market Value Adjustment ......................
7.09 Market Value Adjustment (MVA) ...................................
Section 8. Transfers, Withdrawals and Distributions
8.01 Transfers .......................................................
8.02 Withdrawals .....................................................
8.03 Withdrawal Restrictions Under the Code ..........................
8.04 Withdrawal Charge ...............................................
8.05 Waiver of Withdrawal Charge .....................................
8.06 Reinstatement ...................................................
8.07 Required Distributions ..........................................
8.08 Systematic Distribution Options (SDOs) ..........................
8.09 Individual Account Termination ..................................
Section 9. Loans
9.01 Loan Availability ...............................................
Section 10. Death Benefit During the Accumulation Phase
10.01 Death Benefit .................................................
10.02 Contract Beneficiary ..........................................
10.03 Distribution of Death Benefit
Part II. Annuity Phase
Section 11. General Provisions
11.01 Election ......................................................
11.02 Change of Annuity Provisions ..................................
11.03 Annuity Options ...............................................
11.04 Mortality Table ...............................................
11.05 Minimum Payment Amount ........................................
11.06 Investment Options ............................................
11.07 Fixed Annuity Minimum Guaranteed Interest Rate ................
11.08 Fixed Annuity Payment Amount ..................................
11.09 Variable Annuity Funds ........................................
11.10 Variable Annuity Transfers ....................................
11.11 Variable Annuity Payment Amount ...............................
11.12 Death Benefit During the Annuity Phase ........................
Annuity Tables
Contract Schedule I. Accumulation Phase
Control of Contract (see 1.03) [The Contract Holder controls this Contract.
By notifying us in writing, the Contract Holder may allow Participants to choose
Investment Options for an Individual Account. The Contract Holder may, however,
retain the right to choose Investment Options for employer contributions. Unless
otherwise provided by the Plan, we will make payments only at the written
direction of the Contract Holder and Participant. Unless otherwise specified by
the Plan, we will make an inservice transfer under Internal Revenue Service
Revenue Ruling 90-24 only at the written direction of the Contract Holder and
Participant and will make checks payable to the acquiring investment
provider(s).
The Contract and Individual Accounts are nontransferable and nonassignable
except to us in the event of a loan (if allowed under the Contract) or in the
event of a qualified domestic relations order as allowed under the Retirement
Equity Act of 1984.
Participants have a nonforfeitable right to the value of employer Contributions
made to their Individual Accounts subject to any Plan vesting limits as
determined by the Contract Holder. Participants have a nonforfeitable right to
the value of employee Contributions made to their Individual Accounts as
provided by Code Section 403(b) and subject to the terms of the Plan.
The Contract Holder must notify us in writing if the Plan is, or becomes,
subject to the Employee Retirement Income Security Act of 1974 (ERISA) and/or
related law or regulations including the Retirement Equity Act of 1984 (REA). We
will rely on the Contract Holder's determination and representation of the
applicability of such laws. If the Plan is subject to ERISA, before we will make
a distribution from an Individual Account, the Contract Holder must certify in
writing that all applicable REA requirements have been met and that the
distribution complies with the Plan.]
Maximum Maintenance Fee (see 1.16)
The maintenance fee for each Individual Account will never be more than [$30]
Contribution Limits (see 2.01)
[Each year, Contributions to the Contract are limited to the lesser of:
(a) The maximum exclusion allowance (MEA) limit under Code Section 403(b);
or
(b) The amount set forth in Code Section 415, generally, 25% of
compensation up to $30,000.
In addition, salary reduction contributions as defined in Code Section 402(g)
may not exceed $10,000, or such larger amount as adjusted by the Secretary of
the Treasury unless the alternative limitation under Code Section 402(g)(8)
applies.]
Maximum Daily Charges to the Separate Account (see 3.07) Charges to the Separate
Account will never be more than the following:
Mortality and Expense Risks Charge: [1.25%] (annual basis)
Administrative Charge: [0.25%] (annual basis)
Aetna GET Fund Availability (see Section 4)
[The GET Fund is available.]
Fixed Interest Options Available (see Section 5, Section 6, and Section 7)
[Fixed Account
Fixed Account is available for transferred amounts only (no ongoing
Contributions).
Fixed Plus Account
Guaranteed Accumulation Account]
Fixed Account Minimum Guaranteed Interest Rate (see 5.01)
The interest rate will never be less than [3%] (effective annual yield)
Fixed Account Annual Transfer Limit (see 5.02)
[10%]
Fixed Plus Account Minimum Guaranteed Interest Rate (see 6.01)
The interest rate will never be less than [3%] (effective annual yield)
Fixed Plus Account Transfer and Partial Withdrawal Limit (see 6.02 and 6.03)
[20%]
Full Withdrawal from the Fixed Plus Account (see 6.04)
When a full withdrawal from the Fixed Plus Account is requested, the Individual
Account value in the Fixed Plus Account may be withdrawn as follows:
[(a) Twenty percent of the Individual Account value in the Fixed Plus Account as
of the January 1 preceding the withdrawal request. The 20% is reduced by
the amount, if any, transferred, withdrawn, taken as a loan (if allowed
under the Contract) or used to purchase Annuity payments during the prior
12 months; then,
(b) Twenty-five percent of the remaining Individual Account value 12 months
later;
(c) Thirty-three and one-third percent of the remaining Individual Account
value 12 months later; then,
(d) One-half of the remaining Individual Account value 12 months later; and
then,
(e) The balance of the Individual Account value in the Fixed Plus Account 12
months later.]
Waiver of Fixed Plus Account Full Withdrawal Provision (see 6.05)
[When a full withdrawal is requested, payment from the Fixed Plus Account is not
limited as described in 6.04 when the withdrawal is made:
[(a) To a Participant who has attained age 59 1/2 and, if applicable, has
completed nine Contribution periods;
(b) When a Participant is separated from service, and when:
(1) Separation from service is certified by the employer;
(2) The amount is paid directly to the Participant; and
(3) When the amount paid for all withdrawals due to separation from service
during the previous 12-month period does not exceed 20% of the average
value of all Individual Accounts under the Contract during that period.
(c) Due to financial hardship, or hardship due to an unforeseeable emergency,
as defined in the Code, and when:
(1) The financial hardship or unforeseeable emergency is certified by the
employer;
(2) The amount is paid directly to the Participant; and
(3) When the amount paid for all withdrawals due to financial hardship or
unforeseeable
emergency during the previous 12-month period does not exceed 20%
of the average value of all Individual Accounts under the Contract
during that period.
(d) When the amount in the Fixed Plus Account is [$2,000] or less and during
the previous [12] months no amounts have been withdrawn, transferred, taken
as a loan (if allowed under the Contract), or used to purchase Annuity
payments;
(e) Due to a Participant's death before Annuity payments begin and paid with
six months of the Participant's death;
(f) As provided in Section 8.09; or
(g) To purchase Annuity payments on a life-contingent basis or payments for a
stated period on a fixed-only basis.]
Guaranteed Accumulation Account Minimum Guaranteed Interest Rate (see 7.02) The
interest rate will never be less than [3%] (effective annual yield)
Withdrawal Restrictions Under the Code (see 8.03)
[Withdrawals are limited to the "restricted amount" which is the sum of:
(1) Contributions attributable to a Participant's salary reduction
contributions made on and after January 1, 1989; plus
(2) The net increase, if any, in the Individual Account value after
December 31, 1988 attributable to investment gains and losses and
credited interest.
Generally, withdrawals of the "restricted amount" are permitted only when a
Participant has:
(a) Separated from service when certified by the employer;
(b) Attained age 59 1/2;
(c) Died;
(d) Become disabled, as defined by the Code;
(e) Experienced financial hardship, as defined by the Code and as the
amount is limited by the Code(in this situation the amount
available is; or
(f) Met other circumstances as otherwise allowed by federal law,
regulations or rulings.
No limitations apply to salary reduction Contributions made and earnings
credited to such Contributions made on or before December 31, 1988.
In addition, any portion of an Individual Account representing amounts
transferred from a Code Section 403(b)(7) custodial account will be subject to
the restrictions set forth in the Code.]
Withdrawal Charge (see 8.04)
For each withdrawal from an Individual Account, we may deduct a withdrawal
charge. This charge is a percentage of the amount withdrawn. The withdrawal
charge is as follows.
[Number of Years Since Individual Account
Established] Withdrawal Charge
[Fewer than 5 5%
5 or more, but fewer than 7 4%
7 or more, but fewer than 9 3%
9 or more, but fewer than 10 2%
10 or more 0%]
The withdrawal charge will never exceed [8 1/2%] of total Contributions, or the
maximum permitted by National Association of Securities Dealers, Inc. (NASD)
rules.
Waiver of Withdrawal Charge (see 8.05)
The withdrawal charge does not apply when the withdrawal is:
[(a) Used to purchase Annuity Payments;
(b) Used to purchase a single premium immediate annuity or individual
retirement annuity issued by ALIAC or one of its affiliates, provided that
the right to cancel under the new Contract is not exercised. We will treat
exercise of the right to cancel as a reinstatement and any subsequent
withdrawal may then be subject to the withdrawal charge applicable on the
date of the withdrawal;
(c) Under a systematic distribution option (see 8.08);
(d) In an amount equal to [10%] of the Individual Account value when the
withdrawal is the first partial withdrawal in a calendar year and is made
to a Participant who is at least age 59 1/2 and not older than age 70 1/2
(not available when a systematic distribution option is in effect);
(e) When we terminate an Individual Account as provided in 8.09;
(f) When the Individual Account value is [$3,500] or less and during the
previous 12 months no amounts have been withdrawn, transferred, taken as a
loan (if allowed under the Contract), or used to purchase Annuity payments;
(g) Made by a Participant who has attained age 59 1/2 and, if applicable, has
completed nine Contribution periods;
(h) Made to a Participant who is separated from service when certified by the
employer;
(i) Due to financial hardship, or hardship due to an unforeseeable
emergency, as defined in the Code; or
(j) Due to a Participant's death before Annuity payments begin.]
Required Distributions (see 8.07)
[Generally, for Contributions made and earnings credited after December 31,
1986, distribution must begin by April 1 of the calendar year following the
later of (1) the calendar year in which a Participant attains age 70 1/2, or (2)
retires. For Individual Account values as of December 31, 1986, distribution
must begin by the last day of the year in which a Participant attains age 75 or
retires, whichever is later.
Distribution of benefits to a Participant who is a five percent owner must begin
by the April 1
following the calendar year in which the Participant attains age 70 1/2.
If the Contract Holder is a governmental entity or church, distribution of
Contributions and earnings credited to such Contributions must be made or begin
to be made no later than April 1 of the calendar year in which the Participant
attains age 70 1/2 or retires, whichever is later.
In addition, any portion of an Individual Account representing amounts
transferred from a Code Section 403(b)(7) custodial account will be subject to
the restrictions set forth in the Code.
The entire Individual Account value must be distributed, or begin to be
distributed, over the life or life expectancy of a Participant or a Participant
and a Beneficiary.]
Contract Beneficiary (see 10.02)
[The Contract Holder is the Contract beneficiary. A Participant may designate a
beneficiary under the Plan (the Plan beneficiary.]
Contract Schedule II. Annuity Phase
Guaranteed Payment Period (see 11.03)
The period for which we will guarantee Annuity payments must be at [least five
years and no more than 30 years].
Mortality Table (see 11.04)
[Society of Actuaries' 1983 Table a]
Maximum Number of Funds (see 11.07)
The maximum number of Funds is [five].
Fixed Annuity Minimum Guaranteed Interest Rate (see 11.08)
[3%] (annual basis)
Number of Annual Transfers Among Funds (see 11.11)
Each calendar year, we allow [five] transfers among funds.
Maximum Daily Charges to the Separate Account (see 11.12)
Charges to the Separate Account will never be more than the following:
Mortality and Expense Risks Charge: [1.25%] (annual basis)
Administrative Charge: [0.25%] (annual basis)
Definitions
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Accumulation Phase
The time between an Individual Account Effective Date and the date on which the
entire Individual Account value is used to purchase Annuity payments, or
otherwise distributed.
Aetna GET Fund (GET Fund)
The Aetna GET Fund is an Investment Option which may be available during the
Accumulation Phase. The GET Fund operates as a series offering. Each series is a
separate Fund.
Aetna Life Insurance and Annuity Company (ALIAC)
Aetna Life Insurance and Annuity Company, ("we," and "our," and "us" refer to
ALIAC).
Annuitant
The person whose life expectancy determines the amount and/or duration of the
payments under a life-contingent Annuity option.
Annuity
Payment of an income:
(a) For a stated period;
(b) For the life of one or two people; or
(c) Some combination of (a) and (b).
A fixed Annuity is one in which the payment amount does not vary. A variable
Annuity is one in which the payment amount may vary based on the net investment
results of the Funds.
Annuity Phase
The time during which we make Annuity payments.
Business Day
Each day our Home Office is open for business.
Code
The Internal Revenue Code of 1986, as it is amended from time to time.
Contract
This agreement between ALIAC and the Contract Holder.
Contract Holder
The entity or person named on the specifications page, to which the Contract is
issued.
Contribution
The payment, less any applicable premium tax, made to us during the Accumulation
Phase.
Effective Date
The date, shown on the specifications page, on which we issue the Contract or
establish an Individual Account.
Fixed Account
A Fixed Interest Option. The Fixed Account is an obligation of our General
Account.
Fixed Interest Options
Investment options, including the Fixed Account, the Fixed Plus Account and the
Guaranteed Accumulation Account that credit interest. The Fixed Interest Options
available during the Accumulation Phase are shown on Contract Schedule I under
Fixed Interest Options Available.
Fixed Plus Account
A Fixed Interest Option. Limitations apply to withdrawals from the Fixed Plus
Account. The Fixed Plus Account is an obligation of our General Account.
Fund
One of the variable Investment Options available under this Contract. The Funds
are open-end, registered investment management companies (mutual funds) in which
the Separate Account invests.
General Account
The account that holds our assets other than those held in the Separate Account
or Nonunitized Separate Account.
Guaranteed Accumulation Account (GAA)
A Fixed Interest Option that may be available during the Accumulation Phase.
Under this option, we guarantee specified rates of interest for specified
periods of time. We hold amounts allocated to the Guaranteed Accumulation
Account in the Nonunitized Separate Account.
Good Order
Instructions that are complete and clear enough to allow us to act without
exercising discretion.
Home Office
Our main office located at 000 Xxxxxxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxxxx.
Individual Account
An account, or accounts (including, if applicable, employer and employee
accounts) established for each Participant to maintain a record of transactions
and the value of Contributions as invested.
Investment Options
The Funds and Fixed Interest Options available under this Contract.
Maturity Date
The last day of a GAA guaranteed term. The last day of the guarantee period of
an Aetna GET Fund series.
Nonunitized Separate Account
A separate account that holds assets allocated to the Guaranteed Accumulation
Account.
Participant
A person who is covered under the retirement Plan or program for which this
Contract is issued and who has an interest in this Contract.
Plan
The retirement plan or program for which this Contract is issued.
Premium Tax
Any tax assessed by any governmental entity on Contributions or amounts used to
purchase Annuity payments.
Separate Account
An account that, through its subaccounts, buys and holds shares of the Funds.
Valuation Date
The date and time at which accumulation unit values and annuity unit values are
calculated. Currently, this calculation is made after the close of business of
the New York Stock Exchange on any the New York Stock Exchange is open.
Section 1. General Contract Provisions
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1.01 Entire Contract
The entire Contract consists of this document and any endorsements
incorporated.
The Plan, if applicable, is not part of the Contract and ALIAC is not
bound by its terms.
1.02 Nonparticipating Contract
This Contract is nonparticipating. The Contract Holder, a Participant
or a Contract beneficiary have no right to share in our earnings.
1.03 Control of Contract
This Contract is issued to fund a plan or program which provides
retirement income. Control of the Contract is as shown on Contract
Schedule I under Control of Contract.
1.04 Certificate
Any certificate provided to a Participant summarizes Contract
provisions; it is for information only and is not part of the
Contract. We will provide certificates as required by state in the
state where the Contract is delivered.
1.05 Incontestability
We will not cancel this Contract because of any error of fact.
1.06 Grace Period
Except as provided in 8.09, this Contract and all Individual Accounts
will remain in effect even if Contributions are not continued.
1.07 Change of Contract
Only an ALIAC officer at the level of Vice President or higher, or an
officer with written authorization from a Vice President or higher
officer, may change the terms of this Contract. No other ALIAC
employee, agent or representative can change this Contract.
Except as noted below, this contract may be changed at any time by
written mutual agreement between the Contract Xxxxxx and ALIAC. For
changes we initiate requiring Contract Holder consent, we notify the
Contract Holder 60 days in advance of the change and consider that the
Contract Holder has agreed to the change unless we receive written
notice that the Contract Holder does not agree to the change at least
30 days before the effective date of the change.
If we propose a change requiring Contract Holder consent and the
Contract Holder does not agree to the change, we have the right to not
establish new Individual Accounts and to stop accepting Contributions
to existing Individual Accounts.
We will not change the guaranteed minimum interest rate for the Fixed
Account and Fixed Plus Account.
We have the right to change the following without Contract Holder
consent:
(a) Net Investment Factor (see 3.06)
We may change the Net Investment Factor by notifying the
Contract Holder in writing at least 30 days before the change
becomes effective. If we do this, the change will apply only to
Individual Accounts established, and Contributions received,
after the effective date of the change
(b) Guaranteed Accumulation Account A Market Value Adjustment (see
7.10)
We may change the GAA Market Value Adjustment (see 7.10) by
notifying the Contract Holder in writing at least 90 days
before the change becomes effective. If we do this, the change
will apply only to guaranteed terms offered in deposit periods
after the effective date of the change.
(c) Systematic Distribution Options (see 8.08)
We may change the systematic distribution options by notifying
the Contract Holder in writing at least 30 days before the
change becomes effective. If we do this, the change will not
apply to Participants or beneficiaries receiving payments under
the option before the effective date of the change.
(d) Annuity Options (see 11.02)
We may change Annuity Options by notifying the Contract Holder
in writing at least 30 days before the effective date of the
change. If we do this, the change will not take effect until at
least 12 months after the Effective Date of the Contract, or
until at least 12 months after any previous change. Any change
will not apply to Participants or beneficiaries receiving
Annuity payments before the effective date of the change.
(e) Mortality Table (see 11.04)
We may change the mortality table by notifying the Contract
Holder in writing at least 30 days before the effective date of
the change. If we do this, the new table will not apply to
Individual Accounts established before the Effective Date of
the change.
In addition, we may change this Contract as required to comply with
state and federal law without Contract Holder consent by notifying the
Contract Holder at least 30 days before the effective date of the
change.
Any unilateral change will not apply to Individual Accounts
established before the effective date of the change, but will apply to
Individual Accounts established on or after the change becomes
effective. If we make a unilateral change, the Contract Holder or
Participants, as applicable, are permitted to terminate participation
in the Contract before the effective date of the change under the
terms of the Contract in effect prior to the effective date of the
change.
We will make any change of Contract by endorsement, which may be
subject to regulatory approval in the state where the Contract is
issued.
1.08 Payments
We make payments as directed by the Contract Holder or a Participant,
as applicable. Payment requests must be in writing or as we otherwise
allow in our administrative practice. We determine the amount of any
payment based on the Individual Account value as of the Valuation Date
following our receipt of a payment request in Good Order at our Home
Office. Generally, we make payments within seven calendar days.
1.09 Deferral of Payment
We may defer payment up to a period of six months or as otherwise
provided by state and/or federal law.
1.10 Proof of Age
If a life-contingent Annuity option is elected, we may require proof
of the age of an Annuitant.
1.11 Evidence of Survival
We may require proof that any Annuitant under a life-contingent
Annuity option is living.
1.12 Misstatements and Adjustments
If we learn that the age of any Annuitant or second Annuitant is
misstated, we will use the correct age to adjust payments. We reserve
the right to obtain reimbursement, or to adjust future payments for
any amount we overpaid. We will pay the amount of any underpayment.
1.13 Reports
Each calendar year we provide the Contract Holder or a Participant, as
applicable, with a report of the Individual Account value. We also
provide an annual report for the Separate Account.
1.14 State Laws
This Contract complies with the laws of the state in which it is
delivered. Any cash, death or Annuity payments are equal to or greater
than the minimum required. To determine legal reserve valuation, we
use Annuity tables required by law; such tables may be different from
those we use to determine Annuity payments.
1.15 Claims of Creditors
Individual Accounts are not subject to the claim of any creditor of
the Contract Holder, a Participant or Beneficiary, except to the
extent permitted by law.
1.16 Maintenance Fee
We may deduct an annual maintenance fee during the Accumulation Phase.
The amount of the maintenance fee, if any, for this Contract will
never be more than the amount shown on Contract Schedule I under
Maximum Maintenance Fee.
The fee, if any, is deducted proportionately from each Investment
Option in which the Individual Account is invested on the anniversary
of the Individual Account Effective Date. The fee is also deducted if
the entire Individual Account value is withdrawn. No fee is deducted,
however, when a full withdrawal occurs within 90 calendar days of the
date on which the fee was last deducted.
If a Participant has more than one Individual Account, we may deduct
the fee proportionately from all Individual Accounts. We may eliminate
the fee for an Individual Account established with one Contribution.
1.17 Charges for Additional Services
At the request of the Contract Holder, we, or our authorized
representatives, may provide administrative services to the Plan. We
reserve the right to charge for such services.
1.18 Charges Subject to Change
The maintenance fee (see 1.15) and charges to the Separate Account
(see 3.07) may vary (increase, decrease, or be eliminated) based on
the total assets held in all Individual Accounts under the Contract.
In determining total assets, we may aggregate Individual Accounts
established under different ALIAC contracts. The aggregate amount is
equal to the sum of assets in all Individual Accounts under this
Contract, plus the value of Individual Accounts under other ALIAC
contracts of the same class issued to the Contract Holder. We may
determine the amount of the maintenance fee and/or charges to the
Separate Account based on total assets on an annual basis. We will
determine initial charges based on our estimate of the amount that
will be allocated to the Contract during the first two years.
Part I. Accumulation Phase
Section 2. Contributions and Individual Account Value
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2.01 Contributions
We allocate Contributions in whole percentages among the Investment
Options available as directed by the Contract Holder or a Participant,
as applicable. Changes in future Contribution allocation may be made
at any time, without charge. The Contract Holder or a Participant, as
applicable, may also establish an Individual Account with a lump-sum
Contribution.
We reserve the right to establish minimum Contribution amounts and to
refuse to accept any Contribution.
Contributions to Individual Accounts may be limited as provided in the
Code. The limits, if any, are shown on Contract Schedule I under
Contribution Limits.
2.02 Premium Tax
We pay any applicable premium tax when it is due. We will deduct the
amount of any applicable premium tax from the Individual Account value
no earlier than when there is a tax liability.
2.03 Individual Account
We will establish an Individual Account for each Participant.
If required, we will provide accounts that distinguish between
employer and employee Contributions for each Participant.
2.04 Experience Credit
We may apply experience credits (investment, administrative, mortality
or other) under this Contract and may apply such credits as:
(a) A reduction in the maintenance fee;
(b) A reduction in the mortality and expense risks charge to the
Separate Account;
(c) A reduction in the administrative charge to the Separate
Account; and
(d) An increase in a Fixed Interest Option interest rate.
We will apply experience credits at our sole discretion as we deem
appropriate for the class of contracts to which the Contract is
issued.
2.05 Individual Account Value
As of the most recent Valuation Date, the Individual Account value is
equal to the total of all Contributions:
(a) Plus any interest added on the amount, if any, allocated to a
Fixed Interest Option(s),
(b) Plus or minus the investment experience on the amount, if any,
held in the Separate Account;
(c) Minus any applicable maintenance fees, any amounts withdrawn,
or used to purchase Annuity payments, or any applicable premium
tax; and
(d) Minus any applicable fees or charges deducted.
Section 3. Separate Account
-------------------------------------------------------------------------------
3.01 General
The Separate Account, established under Title 38a, Section 38a-433 of
the Connecticut General Statutes, buys and holds shares of the Funds
available. The Separate Account is registered as a unit investment
trust under the Investment Company Act of 1940.
We own the assets held in the Separate Account; we are not a trustee
of those assets. Income, gains or losses, realized or unrealized, are
credited to or charged against the Separate Account without regard to
our
other income, gains or losses. Except to the extent of reserves and
other Contract liabilities, Separate Account assets cannot be charged
with liabilities arising out of any other business we conduct.
3.02 Funds Available
We reserve the right to limit the number of Funds in which an
Individual Account may be invested, at one time or cumulatively,
during the Accumulation Phase and/or Annuity Phase.
3.03 Change or Substitution of Funds
We reserve the right to stop offering any Fund or to add Funds. We may
substitute shares of a Fund for shares of another Fund. We will
provide the Contract Holder with reasonable advance notice of any
elimination, addition or substitution of a Fund. If the Plan is
subject to ERISA, we will seek Contract Holder consent in advance of
any Fund substitution. Consent will be deemed given unless, following
notice of substitution and within a prescribed time period, the
Contract Holder notifies us in writing that it does not consent and
provides us with alternative investment instructions for the shares
that would otherwise be affected by the substitution.
3.04 Accumulation Units
Each Contribution allocated to one or more of the Funds is credited to
an Individual Account as accumulation units. The number of
accumulation units is calculated by dividing the amount of the
Contribution allocated to the Fund by the accumulation unit value (see
3.05) as of the next Valuation Date after the Contribution is received
at our Home Office in Good Order.
3.05 Accumulation Unit Value
The value of each accumulation unit for any Fund for each Valuation
Date is computed by multiplying the net investment factor (see 3.06)
by the accumulation unit value for such Valuation Date.
Accumulation unit values may increase or decrease from Valuation Date
to Valuation Date.
3.06 Net Investment Factor
The net investment factor is used to compute the accumulation unit
value for any Fund.
For each Valuation Date, for each Fund, the net investment factor is
equal to 1.0000000, plus the net return rate.
The net return rate equals:
[a - b - c]
----------------------- - e - f, where:
d
a is the value of the shares of the Fund held by the Separate
Account at the end of a Valuation Period;
b is the value of the shares of the Fund held by the Separate
Account at the start of the Valuation Period;
c is taxes or provisions for taxes, if any, on the Separate Account
(with any federal income tax liability offset by foreign tax
credits to the extent allowed);
d is the total value of the accumulation units and annuity units
of the Separate Account at the start of the Valuation Period;
e is Separate Account daily charges for mortality and expense
risks and a daily administrative charge as shown on Contract
Schedules I and II under Daily Charges to the Separate
Account; and
f is if applicable, a fee for the GET Fund Guarantee, which is
deducted daily during the Guarantee Period. The fee, which
is determined before the beginning of each offering period,
is shown on Contract Schedule I under GET Fund Guarantee Fee.
The net return rate may be greater or less than zero percent.
3.07 Charges to the Separate Account
During the Accumulation Phase, we may deduct a mortality and expense
risks charge from the Individual Account value invested in the
Separate Account. In addition, we reserve the right to impose an
administrative charge.
The charges to the Separate Account are shown on Contracts Schedules I
under Maximum Daily Charges to the Separate Account and are deducted
daily.
3.08 Separate Account Transfers
During the Accumulation Phase, any portion or all of the Individual
Account value held in a Fund may be transferred to any other Fund or
any available Fixed Interest Option. The Individual Account value will
be based on the Fund's accumulation unit value next determined after
we receive a transfer request in Good Order.
3.09 Withdrawals from the Separate Account
If the Contract Holder or a Participant, as applicable, requests a
partial or full withdrawal (see 8.02) from the Funds, a withdrawal
charge may apply (see 8.04).
Section 4. Aetna GET Fund (GET Fund)
-------------------------------------------------------------------------------
The following provisions apply if the GET Fund is available as shown on Contract
Schedule I under Aetna GET Fund Availability.
4.01 GET Fund Guarantee Period
For each GET Fund series, the period for which the GET Fund Guarantee
applies. The Guarantee Period ends on the Maturity Date.
4.02 GET Fund Offering Period
The period, usually from one to three months, during which the
Contract Holder or a Participant, as applicable, may allocate
(transfer or deposit) amounts to a GET Fund series. Each GET Fund
series has a specific offering period.
We will specify a minimum total asset amount required at the end of an
offering period to offer a GET Fund series. If the minimum is not
achieved, we reserve the right to not start the Guaranteed Period. If
a GET Fund series is terminated, we will send written notification to
all Contract Holders or Participants, as applicable, who have made
allocations to that GET Fund series. We inform Contract Holder or
Participant, as applicable, no later than 15 days after the end of the
offering period. The Contract Holder or a Participant, as applicable,
then has 45 days from the end of the offering period to reallocate the
amount allocated to the GET Fund to any other available Investment
Options. During this time, GET Fund assets are invested in money
market instruments. If Contract Holder or a Participant, as
applicable, makes no election by the end of the 45-day period, at the
next Valuation Date, we will allocate the amount in the terminated GET
Fund series to the money market fund.
We reserve the right to specify a maximum total asset amount for a GET
Fund series. If the maximum is achieved, we reserve the right to set a
date on which we will stop accepting allocations for that GET Fund
series. We will announce the date on which we will stop accepting
transfer and allocations 10 days prior to that date.
4.03 GET Fund Guarantee
On the Maturity Date of each GET Fund series, the GET Fund
accumulation unit value for that series will not be less than the Fund
accumulation unit value determined at the close of business on the
last day of the offering period. If necessary to offset any shortfall
in the GET Fund accumulation unit value, we will transfer funds from
our General Account to the GET Fund. The GET Fund guarantee does not
apply to transfers or withdrawals made before the Maturity Date.
If GET Fund accumulation units are adjusted at any time during the
guaranteed period, the GET Fund guarantee will be restated. We
calculate the restated guarantee so that it is equivalent to the
original guarantee for that GET Fund series.
A daily charge is assessed on the amount, if any, allocated to the GET
Fund. This charge for the GET Fund guarantee will range between 0.25%
and 1.25% on an annual basis (the prospectus for each GET Fund series
offering provides the charge applicable to that offering).
4.04 GET Fund Maturity Date
The GET Fund Maturity Date is the date on which the guarantee period
ends and GET Fund accumulation units are liquidated.
Prior to the Maturity Date for each series, we send a written notice
to each Contract Holder or Participant, as applicable, who has an
Individual Account value in that series. In response, the Contract
Holder or Participant, as applicable, must tell us to which available
Investment Option to transfer the amount in the GET Fund on the
Maturity Date. If we do not receive instructions, on the Maturity Date
we transfer the portion of the Individual Account value held in the
GET Fund to another GET Fund series, if available. If no GET Fund
series is available, we transfer the amount to the Fund or Funds we
designate.
4.05 Transfers or Withdrawals from the GET Fund
Transfers or withdrawals from the GET Fund before the Maturity Date
are based on the GET Fund Unit value for the Valuation Date next
following the date on which we receive the request in Good Order (see
8.01 and 8.02).
Section 5. Fixed Account
-------------------------------------------------------------------------------
The following provisions apply if the Fixed Account is available as shown on
Contact Schedule I under Fixed Interest Options Available.
5.01 Fixed Account Minimum Guaranteed Interest Rate
The Fixed Account minimum guaranteed interest rate is shown on
Contract Schedule I under Fixed Account Minimum Guaranteed Interest
Rate.
Each calendar year, we will set an annual minimum guaranteed interest
rate which will apply to all amounts held in the Fixed Account during
the calendar year. The one year minimum guaranteed interest rate will
be established prior to each calendar year and will be made available
to the Contract Holder or Participants, as applicable, in advance of
the calendar year. We, at our discretion, may credit a higher interest
rate, which is not guaranteed; we will make the current rate, and the
period for which it will be credited, available to the Contract Holder
or Participants, as applicable.
5.02 Transfers from the Fixed Account
During each rolling 12-month period, the percentage shown on Contract
Schedule I under Fixed Account Annual Transfer Limit of the amount in
the Fixed Account may be transferred to any available Investment
Option. The amount available for transfer will be based on the
Individual Account value in the Fixed Account as of the January 1
preceding the transfer request. There is no limit on the amount that
may be transferred to the Fixed Plus Account. We may, on a temporary
basis, allow transfer of a larger percentage.
5.03 Withdrawals from the Fixed Account
If the Contract Holder or a Participant, as applicable, requests a
partial or full withdrawal (see 8.02) from the Fixed Account, a
withdrawal charge may apply (see 8.04).
Section 6. Fixed Plus Account
-------------------------------------------------------------------------------
The following provisions apply if the Fixed Plus Account is available as shown
on Contract Schedule I under Fixed Interest Options Available.
6.01 Fixed Plus Account Minimum Guaranteed Interest Rate
The Fixed Plus Account minimum guaranteed interest rate is shown on
Contract Schedule I under Fixed Plus Account Minimum Guaranteed
Interest Rate.
Each calendar year, we will set an annual minimum guaranteed interest
rate which will apply to all amounts held in the Fixed Plus Account
during the calendar year. The one year minimum guaranteed interest
rate will be established prior to each calendar year and will be made
available to the Contract Holder or Participants, as applicable, in
advance of the calendar year. We, at our discretion, may credit a
higher interest rate, which is not guaranteed; we will make the
current rate, and the period for which it will be credited, available
to the Contract Holder or Participants, as applicable.
6.02 Transfers from the Fixed Plus Account
During each rolling 12-month period, the percentage shown on Contract
Schedule I under Fixed Plus Account Annual Transfer and Withdrawal
Limit of the amount in the Fixed Plus Account may be transferred to
any available Investment Option.
The amount available for transfer is based on the Individual Account
value in the Fixed Plus Account on the January 1 preceding the
transfer request reduced by any amount withdrawn, transferred, taken
as a loan (if allowed under the Contract) or used to purchase Annuity
payments during the previous 12 months. In addition, we reserve the
right to reduce the amount available for transfer by amounts withdrawn
under a systematic distribution option.
We reserve the right to waive the transfer limit when the amount in
the Fixed Plus Account is $2,000 or less. In addition, 20% of the
amount in the Fixed Plus Account may be transferred in each of four
consecutive 12-month periods with the balance transferred in the
succeeding 12-month period subject to the following conditions:
(a) During the five-year period, no additional amounts are
allocated to or transferred from the Fixed Plus Account;
(b) We will include any amount transferred, taken as a loan (if
allowed under the Contract) or used to purchase Annuity
payments during the prior 12-month period when calculating the
amount which equals 20%; and
(c) We reserve the right to include amounts paid under a systematic
distribution option when calculating the amount which equals
20%.
6.03 Partial Withdrawals from the Fixed Plus Account
During each rolling 12-month period, the percentage shown on Contract
Schedule I under Fixed Plus Account Transfer and Withdrawal Limit may
be withdrawn from the Fixed Plus Account.
The amount available for withdrawal is based on the amount of the
Individual Account value in the Fixed Plus Account on the January 1
preceding the withdrawal request reduced by any amount withdrawn,
transferred, taken as a loan (if allowed under the Contract), or used
to purchase Annuity payments during the preceding 12-month period. In
addition, we reserve the right to reduce the amount available by
deducting any amount withdrawn under a systematic distribution option.
The withdrawal limit does not apply when the partial withdrawal is:
(a) Due to a Participant's death during the Accumulation Phase and
is made within six months of the date
of death (this exception applies to only one partial
withdrawal);
(b) Used to purchase Annuity payments; or
(c) Due to other conditions as we may allow without discrimination.
6.04 Full Withdrawal of the Total Amount in the Fixed Plus Account
The Contract Holder, or a Participant, as applicable, may withdraw the
full amount held in the Fixed Plus Account. When we receive a request
for a full withdrawal, no additional transfers, partial withdrawals or
loans (if allowed under the Contract) are allowed.
The Individual Account value held in the Fixed Plus Account may be
withdrawn as shown on Contract Schedule I under Full Withdrawal from
the Fixed Plus Account.
No withdrawal charge applies to amounts withdrawn.
The Contract Holder or Participant, as applicable, may cancel a full
withdrawal request from the Fixed Plus Account at any time.
6.05 Waiver of Fixed Plus Account Full Withdrawal Provision
The restriction on payment of a full withdrawal from the Fixed Plus
Account (see x.xx) does not apply to any of the circumstances shown on
Contract Schedule I under Waiver of Fixed Plus Account Full Withdrawal
Provision.
Section 7. Guaranteed Accumulation Account (GAA)
--------------------------------------------------------------------------------
7.01 Nonunitized Separate Account
The Nonunitized Separate Account is established under Title 38a,
Section 38a-433 of the Connecticut General Statutes. There are no
discrete units for this account. We own the assets held in the
Nonunitized Separate Account; we are not a trustee of those assets.
Income, gains or losses, realized or unrealized, are credited to or
charged against the Nonunitized Separate Account without regard to our
other income, gains or losses. Except to the extent of reserves and
other Contract liabilities, Nonunitized Separate Account assets cannot
be charged with liabilities arising out of any other business we
conduct.
7.02 GAA Minimum Guaranteed Interest Rate
All Contributions allocated to a GAA guaranteed term (see 7.04) earn a
rate of interest which we determine and which is guaranteed when the
Contribution remains in the guaranteed term until the Maturity Date.
The rate credited will never be less than the minimum interest rate
shown on Contract Schedule I under Guaranteed Accumulation Account
Minimum Guaranteed Interest Rate.
For guaranteed terms of one year or less, one guaranteed rate is
credited for the full guaranteed term. For longer guaranteed terms, we
may credit an initial guaranteed interest rate from the date of
deposit to the end of a specified period within the guaranteed term.
We may credit different interest rates for subsequent specified
periods throughout the guaranteed term.
7.03 Deposit Period
A deposit period is the period of time we determine during which we
accept allocations (Contributions, transfers, or reinvestments) to one
or more guaranteed terms. We reserve the right to extend the deposit
period.
7.04 Guaranteed Term
A guaranteed term is the period of time for which we guarantee the
declared interest rate for allocations (Contributions, transfers, or
reinvestments) to GAA guaranteed terms. We may offer guaranteed terms
ranging in duration from one to ten years. During each deposit period,
we may offer more than one guaranteed term of varying lengths. The
guaranteed term begins the day after the deposit period ends. The
Contract Holder or a Participant, as applicable, may allocate new
Contributions or transfers to any or all guaranteed terms available in
the current deposit period.
7.05 Guaranteed Term Groups
A guaranteed term group is comprised of all GAA guaranteed terms of
the same duration.
7.06 Maturity Date, Maturity Value and Reinvestment
The Maturity Date is the last day of a guaranteed term. The maturity
value is the amount we pay at the end of a guaranteed term. At least
18 days before any guaranteed term Maturity Date, we notify the
Contract Holder or a Participant, as applicable, of the projected
maturity value and the guaranteed terms (and the guaranteed interest
rates for each) available during the then-current deposit period. The
Contract Holder, or a Participant, as applicable, may then tell us how
to allocate the maturity value.
If the Contract Holder or a Participant, as applicable, does not tell
us how to reinvest the maturity value, we reinvest it in a guaranteed
term of the same duration if one is available. If no guaranteed term
of the same duration is available, we reinvest the maturity value in
the guaranteed term with the next shortest duration. If no shorter
guaranteed term is available, we reinvest the maturity value in the
next longest term. We mail a confirmation of reinvestment. The
confirmation includes the guaranteed term in which we have reinvested
the maturity value and the guaranteed interest rate for that term.
If we have reinvested the maturity value, during the month following
the Maturity Date, the Contract Holder or a Participant, as
applicable, may transfer or withdraw the reinvested amount, with
interest earned (as of the date we receive the request) without
incurring a Market Value Adjustment.
7.07 Transfers and Withdrawals from the GAA
Except as noted below, the Contract Holder or a Participant, as
applicable, may transfer any portion or all of the amount held in the
GAA. Transfers or withdrawals before the Maturity date may be subject
to a Market Value Adjustment (see 7.10). Amounts invested in a
guaranteed term may not be transferred during the deposit period or
for a period of 90 days after the close of the deposit period.
Unless directed otherwise, when the Contract Holder or a Participant,
as applicable, requests a transfer or withdrawal from the GAA, we
withdraw amounts proportionately from each guaranteed term in which
the Individual Account is invested. Within a guaranteed term group, we
withdraw first from the oldest deposit period and then from the next
oldest and so on until the amount requested is withdrawn.
7.08 Application of the Market Value Adjustment
Transfers or withdrawals from the GAA before the Maturity date are
subject to a Market Value Adjustment, except for:
(a) A one-month period following the Maturity Date on which we have
automatically reinvested the value on the Maturity Date;
(b) Distributions under certain systematic distribution options;
and
(c) When the withdrawal is equal to the minimum distribution amount
required under the Code, using a method permitted by the Code
and which we offer.
If the amount withdrawn is used to purchase life-contingent Annuity
payments, the Market Value Adjustment applies only if it is positive.
For withdrawals and transfers from the GAA made (1) within six months
of a Participant's death; or (2) to purchase Annuity payments under a
life-contingent Annuity option, the amount withdrawn from the GAA is
the greater of:
(a) The aggregate MVA amount which is the sum of all market value
adjusted amounts calculated due to a
withdrawal before the Maturity Date (which may be positive or
negative); or
(b) The amount in the GAA.
For withdrawals made after the six month period following death, the
withdrawal or transfer amount is the aggregate MVA amount.
An MVA applies to amounts withdrawn to purchase Annuity payment under
a period certain Annuity option.
We may change the GAA Market Value Adjustment by notifying the
Contract Holder in writing at least 90 days before the change becomes
effective. Any such change will apply only to guaranteed terms offered
in deposit periods after the effective date of the change and will
apply to existing and new Individual Accounts.
7.09 Market Value Adjustment (MVA)
The Market Value Adjustment reflects any change in yields on U.S.
Treasury Notes from the time an amount is allocated to a GAA
guaranteed term to the time of a transfer or withdrawal prior to the
Maturity Date. When the Market Value Adjustment is applied, the amount
transferred or withdrawn from the GAA is multiplied by a factor which
is calculated as follows:
x
-------
365
(1 + i)
-----------------------
x
-------
365
(1 + j)
Where:
i is the deposit period yield
j is the current yield
x is the number of days remaining (computed from
Wednesday of the week of withdrawal) in the
guaranteed term.
The deposit period yield and the current yield are determined as
follows:
Deposit Period Yield
--------------------
At the close of the last business day of each week of a deposit
period, we compute a yield that is the average of the yields on U.S.
Treasury Notes which mature in the last three months of the guaranteed
term. The deposit period yield is the average of those yields for the
deposit period. If a withdrawal is made prior to the close of the
deposit period, the deposit period yield is the average of the yields
of U.S. Treasury Notes for each week preceding the withdrawal. In the
event that no U.S. Treasury Notes will mature in the last three months
of the guaranteed term, we reserve the right to use the U.S. Treasury
Notes that mature in a following quarter.
Current Yield
-------------
The Current Yield is the average of the yields of the same U.S.
Treasury Notes used to calculate the deposit period yield on the last
business day of the week preceding withdrawal.
Section 8. Transfers, Withdrawals and Distributions
--------------------------------------------------------------------------------
8.01 Transfers
During the Accumulation Phase, the Contract Holder or a Participant,
as applicable, may transfer all or any portion of the Individual
Account value among the available Investment Options. The Individual
Account value on any amount transferred from a Fund will be based on
the Fund's accumulation unit value next determined after we receive
the transfer request In Good Order.
The Contract Holder or a Participant, as applicable, may request a
transfer by properly completing a transfer request form and sending it
to our Home Office, or by otherwise complying with our administrative
procedures. We reserve the right to establish a minimum transfer
amount.
8.02 Withdrawals
As allowed by the Plan, if applicable, and subject to provisions of
the Code (see 8.03), during the Accumulation Phase, the Contract
Holder or a Participant, as applicable, may withdraw any portion or
all of the Individual Account value. The Individual Account value of
any amount withdrawn from a Fund will be based on the Fund's
accumulation unit value next determined after we receive the transfer
request In Good Order.
The Contract Holder or a Participant, as applicable, may request a
withdrawal by properly completing a withdrawal request form and
forwarding it to our Home Office, or by otherwise complying with our
administrative procedures. Unless the Contract Holder or Participant,
as applicable, requests otherwise, the withdrawal will be made pro
rata from the Investment Options in which the Individual Account is
invested.
A withdrawal charge may apply to amounts withdrawn (see 8.04). In
addition, a market value adjustment may apply to amounts withdrawn
from the GAA (see 7.08 and 7.09) and limitations may apply to
withdrawals from the Fixed Plus Account (see 6.04).
8.03 Withdrawal Restrictions Under the Code
The Code may impose restrictions on the amount and timing of
withdrawals. The restrictions, if any, applicable to this Contract are
shown on Contract Schedule I under Withdrawal Restrictions Under the
Code. Withdrawals that do not comply with the Code may be subject to
tax penalties.
8.04 Withdrawal Charge
During the Accumulation Phase, we may deduct a withdrawal charge from
the Individual Account value withdrawn. The charge, if any, is a
percentage of the amount withdrawn from the Funds and/or Fixed
Interest Options (except, if applicable, the Fixed Plus Account). The
withdrawal charge will never exceed 8.5% of the total amount of
Contributions.
The withdrawal charge, if any, is shown on Contract Schedule I under
Withdrawal Charge.
8.05 Waiver of Withdrawal Charge
The withdrawal charge (see 8.04) does not apply in any of the
circumstances shown on Contract Schedule I under Waiver of Withdrawal
Charge.
In addition, we reserve the right to reduce, waive or eliminate the
withdrawal charge.
8.06 Reinstatement
Within 30 days after a withdrawal, the Contract Holder or a
Participant, as applicable may elect to reinstate all or a portion of
the proceeds of a full withdrawal if allowed by applicable law. We
must receive the reinstated amount within 60 days of the withdrawal.
Any maintenance fee and withdrawal charge imposed at the time of the
withdrawal is included in the reinstatement. If only a portion of the
amount withdrawn is reinstated, the amount of any maintenance fee and
withdrawal charge deducted will be restored proportionally. The amount
of any market value adjustment deducted from any amount withdrawn from
GAA is not included in the amount reinstated.
Any amount reinstated to the GA Account will be credited to guaranteed
terms available in the current deposit period. We will reinvest it in
a guaranteed term of the same duration if one is available. If no
guaranteed
term of the same duration is available, we reinvest the maturity value
in the guaranteed term with the next shortest duration. If no shorter
guaranteed term is available, we reinvest the maturity value in the
next longest term.
Amounts withdrawn from a GET Fund series are reinstated to the current
offering period if one is available. If no GET Fund offering period is
available, any amount withdrawn from the GET Fund is reinstated
equally among all other Investment Options in which the Individual
Account is invested.
Amounts are reinstated among the Investment Options in the same
proportion as they were held at the time of withdrawal, except, as
noted above, for amounts from the GET Fund. Any maintenance fee which
falls due after the withdrawal and before the reinstatement is
deducted from the amount reinstated.
The number of accumulation units reinstated to any Fund is based on
the accumulation unit value(s) next computed after we receive the
reinstatement request in Good Order at our Home Office.
Reinstatement is permitted only once.
8.07 Required Distributions
While an Individual Account remains in the Accumulation Phase, the
Code may require distribution of all or a portion of the Individual
Account value. The Contract Holder, a Participant or Contract
beneficiary, as applicable, must tell us when to begin distributions.
We have no responsibility for adverse tax consequences as the result
of the Contract Holder, Participant or Contract beneficiary, as
applicable, not complying with minimum distribution requirements.
The distribution requirements, if any, are shown on Contract Schedule
I under Required Distributions.
Generally, to meet distribution requirements, the Contract Holder, a
Participant or Contract beneficiary, as applicable, may request
partial withdrawals, a systematic distribution option (see 8.08) or an
annuity option.
8.08 Systematic Distribution Options (SDOs)
During the Accumulation Phase, we may offer one or more distribution
options under which we make regularly scheduled automatic partial
distributions of the Individual Account value. To request an SDO, the
Contract Holder, a Participant or Contract beneficiary, as applicable,
must complete an SDO election form and forward it to our Home Office.
Each option is available without discrimination to any class of
Contracts. The availability of any specific option may be subject to
terms and conditions applicable to that option. We may discontinue the
availability of an SDO option for future election; payments will,
however, continue to Participants who elected the option before the
date it is no longer available.
8.09 Individual Account Termination
If the Individual Account value is $3,500 or less, and we have
received no Contributions for 12 months, we reserve the right to
terminate an Individual Account. Before we do this, we notify the
Contract Holder or Participant, as applicable, 90 days in advance.
When we terminate an Individual Account, we do not deduct a withdrawal
charge. We do not exercise this right when the Individual Account
value is $3,500 or less due to investment performance.
Section 9. Loans
-------------------------------------------------------------------------------
9.01 Loan Availability
If loans are available under the Contract, a loan endorsement is
attached.
Section 10. Death Benefit During the Accumulation Phase
-------------------------------------------------------------------------------
10.01 Death Benefit
If a Participant dies during the Accumulation Phase, we pay a death
benefit. The amount of the death benefit is the Individual Account
value as of the Valuation Date following the date we receive
acceptable proof of death at our Home Office (see 7.10 for amounts in
the GAA).
10.02 Contract Beneficiary
The Contract beneficiary is shown on Contract Schedule I under
Contract beneficiary. Generally, the Participant may name a
beneficiary under the Plan (the Plan beneficiary). If allowed by the
Plan, when designating the Beneficiary, the Contract Holder or a
Participant, as applicable, may specify, the form of payment as
permitted by the Code. The Contract beneficiary and the form of
payment, if applicable, may be designated or changed in writing or as
we may otherwise allow in our administrative procedures.
10.03 Distribution of Death Benefit
Generally, if the Plan beneficiary is the Participant's surviving
spouse, distribution of the death benefit must begin no later than the
year the Participant would have attained age 70 1/2 or any other date
allowed under federal law or regulations.
If the Plan beneficiary is not the Participant's surviving spouse,
generally, the death benefit must be used to purchase Annuity payments
within one year of the year of the Participant's death or otherwise
paid within five years of the year of the Participant's death.
Annuity payments to a Plan beneficiary may not extend beyond the
period specified in the Code.
Part II. Annuity Phase
Section 11. General Provisions
-------------------------------------------------------------------------------
11.01 Election
The Contract Holder, a Participant , Contract or Plan beneficiary, as
applicable, may elect an Annuity option by properly completing an
election form and forwarding it to our Home Office no later than 30
days before the desired first Annuity payment date. All elections of
an Annuity option must comply with the minimum distribution
requirements of Code Section and any applicable laws and regulations.
All or any portion of the Individual Account value (after the
deduction of any applicable premium tax) may be used to purchase
Annuity payments (for amounts from the GAA, see 7.08).
The Contract Holder, a Participant, Contract or Plan beneficiary, as
applicable, must also select an Annuity option (see 11.03) and the
Investment Option(s) (see 11.06).
Once payments begin, an Annuity option may not be changed.
11.02 Change of Annuity Provisions
We reserve the right to change Annuity options (see 11.03) and the
mortality table (see 11.04) we use to calculate payment rates for
life-contingent Annuity payments. If we do this, the change will not
take effect until at least 12 months after the Contract Effective
Date, or until at least 12 months after any previous change. A change
to Annuity options or the mortality table used to calculate payment
rates will not apply to Individual Accounts established before the
effective date of the change.
11.03 Annuity Options
The Contract Holder, a Participant, Contract or Plan beneficiary, as
applicable, must elect one of the following:
Payments for a Stated Period
----------------------------
This option provides payments for a stated period. The number of years
in the stated period must fall within the range shown on Contract
Schedule II under Guaranteed Payment Period.
If payments for this option are under a Variable Annuity, the present
value of any remaining payments may be withdrawn at any time. If a
withdrawal is requested within five years of the first payment, the
lump sum payment is treated as a withdrawal during the Accumulation
Phase and any applicable withdrawal charge applies (see 8.04).
If the payments are fixed-only, an annual increase of one, two or
three percent (compounded annually) may be elected at the time the
Annuity option is chosen (if permitted by the Code).
Life Income for One Annuitant
-----------------------------
This option provides payments for the life of the Annuitant. If this
option is elected, the Contract Holder, a Participant or Contract
beneficiary, as applicable, must also choose one of the following:
(a) Payments cease at the death of the Annuitant; or
(b) Payments are guaranteed for a period within the range shown on
Contract Schedule II under Guaranteed Payment Period; or
(c) Fixed-only cash refund: at the death of the Annuitant, the
Beneficiary receives a lump sum payment in an amount equal to
the amount applied to the Annuity, less the amount of payments
made to the Annuitant.
Under (a) or (b), if the payments are fixed-only, an annual increase
of one, two or three percent (compounded annually) may be elected at
the time the Annuity option is chosen (if permitted by the Code).
Life Income for Two Annuitants
------------------------------
This option provides payments for the lives of the Annuitant and a
second Annuitant. Payments continue until both Xxxxxxxxxx have died.
If this option is elected, the Contract Holder or a Participant, as
applicable, must also choose one of the following:
(a) 100% of the payment amount to continue after the first death;
or
(b) 66 2/3% of the payment amount to continue after the first
death; or
(c) 50% of the payment amount to continue after the first death; or
(d) 100% of the payment amount to continue after the first death
with payments guaranteed to the Beneficiary after the second
death for a period within the range shown on Contract Schedule
II under Guaranteed Payment Period; or
(e) 100% of the payment amount to continue at the death of the
specified second Annuitant and 50% of the payment amount to
continue at the death of the specified Annuitant; or
(f) 100% of the fixed-only payment amount to continue after the
first death with a cash refund to the Contract beneficiary
after the second death. The amount of the cash refund is equal
to the amount applied to the Annuity, less the amount of
payments made.
Under (a) or (d), if the payments are fixed-only, an annual increase
of one, two or three percent (compounded annually may be elected at
the time the Annuity option is chosen (if permitted by the Code).
Other Options
-------------
We may make other options available.
11.04 Mortality Table
The mortality table used for calculating Annuity payments for life is
shown on Contract Schedule II under Mortality Table.
To calculate the payments for a fixed Annuity, or a variable Annuity
guaranteed first payment, we use the Annuitant's and, if applicable,
the second Annuitant's, adjusted age. The adjusted age is the person's
age as of his or her nearest birthday closest to the day Annuity
payments begin, reduced as follows:
(a) Reduced by one year for payments before January 31, 1999;
(b) Reduced by two years for payments beginning during the period
from January 1, 2000 through December 31, 2009;
(c) Starting on January 1, 2010, reduced by one additional year for
payments beginning in each succeeding decade.
11.05 Minimum First Payment Amount
The minimum first payment amount is shown on Contract Schedule II
under Minimum Payment Amount. We reserve the right to increase the
minimum first payment amount, if allowed by state law, based on
increases reflected in the Consumer Price Index-Urban (CPI-U) since
July 1, 1993.
11.06 Investment Options
When an Annuity option is elected, the Contract Holder, a Participant,
Contract or Plan beneficiary, as applicable, must also select:
(a) A fixed Annuity;
(b) A variable Annuity for which the underlying investment is one
or more of the available Funds; or
(c) A combination of (a) and (b).
For a variable Annuity, the maximum number of Funds available during
the Annuity Phase is shown on Contract Schedule II under Maximum
Number of Funds. The Contract Holder, a Participant or Contract
beneficiary, as applicable, may transfer amounts allocated to Funds
during the Annuity Phase.
If a fixed Annuity is elected, we will use the applicable current
settlement option rates if these will provide high fixed Annuity
payments.
11.07 Fixed Annuity Minimum Guaranteed Interest Rate
For a Fixed Annuity, the interest rate is never less than the minimum
guaranteed rate shown on Contract Schedule II under Fixed Annuity
minimum Guaranteed Interest Rate.
11.08 Fixed Annuity Payment Amount
The amount of Fixed Annuity payments is a function of the Annuity
option elected, the adjusted age of the Annuitant(s) for
life-contingent options, the rates in effect at the time payments
begin and payment frequency. Sample rates are shown on the charts
beginning on page XX.
11.09 Variable Annuity Funds
The Funds available during the Annuity Phase may not be the same as
those available during the Accumulation Phase.
11.10 Variable Annuity Transfers
If a variable Annuity is elected, the Contract Holder, a Participant,
Contract or Plan beneficary, as applicable, may request that we
transfer all or a portion of the amount allocated to a Fund to any
other available Fund. Transfer requests must be expressed as a
percentage of the allocation among the Funds on which the variable
payment is based. The number of transfers allowed each calendar year
is shown on Contract Schedule II under Number of Annual Transfers
Among Funds. We reserve the right to allow additional transfers.
Transfers are effective as of the next Valuation Date after we receive
a transfer request in Good Order at our Home Office.
11.11 Variable Annuity Payment Amount
The first variable Annuity payment is calculated by multiplying the
Individual Account value (minus any applicable premium tax), by an
Annuity rate per $1,000. The Annuity rate is calculated based on:
(a) The Annuity option elected;
(b) Payment frequency;
(c) The assumed investment rate (AIR); and
(d) The adjusted age of the Annuitant(s).
The Contact Holder, a Participant or Contract beneficiary, as
applicable, must elect an AIR of 3.5% or 5.0%. Sample rates for each
AIR are shown on the charts beginning on page xx.
After the first payment, payment amounts are determined by comparing
the performance of the net investment rate (NIR) of the Fund(s) to the
AIR. For the amount of the payment to stay the same, or increase, the
NIR of the Fund(s) must be equal to or greater than the AIR after the
deduction of the daily mortality and expense risks charge and any
applicable administrative charge. The amount of the daily mortality
and expense risks charge and the administrative charge are shown on
Contract Schedule II under Separate Account Daily Mortality and
Expense Risks Charge and Separate Account Daily Administrative Charge.
If the NIR is less than the AIR, the payment amount decreases.
The assumed investment rate for 3.5% is 0.9999058; for 5.0% is
0.9998663.
The net investment factor(s) for each Fund is equal to 1.0000000 plus
the net return rate.
The net return rate equals:
[a - b + c]
----------------------- - e - f, where
d
a is the value of the shares of the Fund held by the Separate
Account at the end of a Valuation Period;
b is the value of the shares of the Fund held by the Separate
Account at the start of the Valuation Period;
c is taxes or provisions for taxes, if any, on the Separate Account
(with any federal income tax liability offset by foreign tax
credits to the extent allowed);
d is the total value of the accumulation units and annuity units of
the Separate Account at the start of the Valuation Period;
e is Separate Account daily charges for mortality and expense risks
and a daily administrative charge as shown on Contract
Schedules I and II under Daily Charges to the Separate Account;
and
A net return rate may be more or less than 0%.
11.12 Death Benefit During the Annuity Phase
The Contract Holder or Participant, as applicable, must name a
beneficiary for the Annuity Phase.
If an Annuitant(s) dies, any remaining guaranteed payments continue to
the beneficiary. Payments are made at least as rapidly as provided by
the option in effect at the death of the Annuitant. Annuity payments
to an beneficiary may not extend beyond (1) the life of the
beneficiary, or (2) any period certain greater than the beneficiary's
life expectancy as determined by the Code.
The beneficiary may also elect a lump sum payment equal to the present
value of any remaining payments.
The interest rate used to determine the first Annuity payment is used
to calculate the present value. The present value is determined as of
the Valuation Date in which we receive acceptable proof of death and a
written claim for the death benefit.
If the beneficiary dies while receiving payments, the present value of
any remaining guaranteed payments is paid in a lump sum to the
Contract beneficiary's estate.
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
---------------------------------------------------------------------------------------
5 $17.91 20 $5.51
10 9.61 25 4.71
15 6.87 30 4.18
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
First Monthly Amount for Each $1,000*
Rates for a Variable Annuity with a 3.5% AIR
---------------------------------------------------------------------------------------
Years Payment Years Payment
---------------------------------------------------------------------------------------
5 $18.12 20 $5.75
10 9.83 25 4.96
15 7.10 30 4.45
---------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------
First Monthly Amount for Each $1,000*
Rates for a Variable Annuity with a 5% AIR
---------------------------------------------------------------------------------------
Years Payment Years Payment
---------------------------------------------------------------------------------------
5 $18.74 20 $6.51
10 10.51 25 5.76
15 7.82 30 5.28
---------------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
G-CDA(99) Page
Option 2: Life Income Based on the Life of One Annuitant
-----------------------------------------------------------------------------------------------------------------------------------
Monthly Payment Amount for Each $1,000*
Rates for a Fixed Annuity Payment with 3% Guaranteed Interest Rate
-----------------------------------------------------------------------------------------------------------------------------------
Option 2(a): Option 2(b): Option 2(b): Option 2(b): Option 2(b): Option 2(c):
Adjusted payments for payments payments payments payments Cash Refund
Age of life guaranteed guaranteed guaranteed guaranteed
Annuitant 5 years 10 years 15 years 20 years
-----------------------------------------------------------------------------------------------------------------------------------
55 4.44 4.42 4.39 4.32 4.22 4.19
60 4.95 4.93 4.86 4.73 4.55 4.57
65 5.65 5.61 5.47 5.22 4.89 5.06
66 5.82 5.77 5.61 5.33 4.96 5.18
70 6.64 6.54 6.23 5.76 5.19 5.70
75 8.06 7.82 7.14 6.25 5.38 6.51
-----------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity Payment with 3.5% Assumed Interest Rate
-------------------------------------------------------------------------------------------------------------------
Option 2(a): Option 2(b): Option 2(b): Option 2(b): Option 2(b):
Adjusted payments for payments payments payments payments
Age of life guaranteed guaranteed guaranteed guaranteed
Annuitant 5 years 10 years 15 years 20 years
-------------------------------------------------------------------------------------------------------------------
55 4.72 4.71 4.67 4.60 4.50
60 5.23 5.21 5.13 5.00 4.82
65 5.94 5.89 5.73 5.48 5.15
70 6.92 6.81 6.49 6.00 5.43
75 8.35 8.08 7.38 6.48 5.62
-------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity Payment with 5% Assumed Interest Rate
--------------------------------------------------------------------------------------------------------------------
Option 2(a): Option 2(b): Option 2(b): Option 2(b): Option 2(b):
Adjusted payments for payments payments payments payments
Age of life guaranteed guaranteed guaranteed guaranteed
Annuitant 5 years 10 years 15 years 20 years
-------------------------------------------------------------------------------------------------------------------
55 5.63 5.61 5.56 5.47 5.36
60 6.12 6.09 6.00 5.85 5.65
65 6.82 6.75 6.57 6.30 5.95
70 7.80 7.67 7.30 6.78 6.21
75 9.23 8.93 8.16 7.23 6.38
-------------------------------------------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
G-CDA(99) Page
Option 3: Life Income Based on the Lives of Two Annuitants
-----------------------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Fixed Annuity Payment with 3.0% Guaranteed Interest Rate
-----------------------------------------------------------------------------------------------------------------------------------
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 $4.03 $3.67
55 60 3.99 4.44 4.71 3.98 4.20 3.94
65 60 4.38 4.97 5.32 4.38 4.93 4.29
65 70 4.93 5.68 6.15 4.91 5.27 4.74
75 70 5.69 6.68 7.32 5.62 6.67 5.29
75 80 6.78 8.11 8.99 6.54 7.36 5.93
-----------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity Payment with 3.5% Assumed Interest Rate
--------------------------------------------------------------------------------------------------------------------------
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 $4.31
55 60 4.27 4.73 5.00 4.26 4.48
65 60 4.66 5.25 5.61 4.65 5.22
65 70 5.19 5.97 6.44 5.17 5.54
75 70 5.95 6.96 7.61 5.87 6.95
75 80 7.04 8.39 9.29 6.79 7.64
--------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity Payment with 5% Assumed Interest Rate
--------------------------------------------------------------------------------------------------------------------------
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 $5.23
55 60 5.15 5.63 5.91 5.14 5.38
65 60 5.52 6.14 6.51 5.51 6.10
65 70 6.04 6.84 7.34 6.00 6.41
75 70 6.77 7.84 8.51 6.68 7.81
75 80 7.86 9.28 10.20 7.57 8.49
--------------------------------------------------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
G-CDA(99) Page
--------------------------------------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
Hartford, Connecticut 06150
(000) 000-0000
Group Combination, Deferred Annuity Contract
(Nonparticipating)
--------------------------------------------------------------------------------
G-CDA(99)
