----------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
X.X. Xxx 00000
Xxxxxxxx, Xxxxxxxxxxx 00000-0000
(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.
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Certificate of Group To the Certificate Holder:
Annuity Coverage
Aetna certifies that coverage is in force for you
under the stated Group Annuity Contract and Account
numbers. All data shown here is taken from Aetna
records and is based upon information furnished by
you.
This Certificate is a summary of the Group Annuity
Contract provisions. It replaces any and all prior
certificates or endorsements issued to you under the
stated Contract and Account numbers. This
Certificate is for information only and is not part
of the Contract. The Schedule - Accumulation Period
reflects the Option Package you elected and its
effective date.
The variable features of the Group Contract are
described in parts III, IV and V.
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Right to Cancel You may cancel your Account 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 this Certificate at
its home office, Aetna will return the amount of
Purchase Payment(s) received, plus any increase, or
minus any decrease, on the amount, if any, of
Purchase Payment(s) allocated to the Separate
Account Subaccount(s).
President Secretary
------------------------------------------------------------------- ----------------------------------------------------------------
Contract Holder Group Annuity Contract No.
SPECIMEN SPECIMEN
------------------------------------------------------------------- ----------------------------------------------------------------
Certificate Holder Account No.
SPECIMEN SPECIMEN
SPECIMEN Account Effective Date
SPECIMEN
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Annuitant Name Type of Plan
SPECIMEN SPECIMEN
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 AMOUNTS ALLOCATED TO THE GUARANTEED ACCOUNT, IF WITHDRAWN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.
GMC-VA-98
Specifications
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Guaranteed There is a minimum guaranteed rate for Purchase Payment(s) held in the Guaranteed Account. (See Schedule -
Rate Accumulation Period.)
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Deductions from the There will be deductions for mortality and expense risk as well as administrative charges. (See Schedule -
Separate Account Accumulation Period and Schedule - Annuity Period.)
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Deduction from Purchase Purchase Payment(s) may be subject to a deduction for premium taxes. (See Section III - Purchase Payment.)
Payment(s)
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Deferred Sales Charge There may be a charge deducted upon withdrawal. (See Schedule - Accumulation Period.)
This Contract is a legal contract and constitutes the entire legal relationship
between Aetna and the Contract Holder.
READ THIS CONTRACT CAREFULLY. This Contract sets forth, in detail, all of the
rights and obligations of both you and Aetna. THEREFORE, IT IS IMPORTANT THAT
YOU READ THIS CONTRACT CAREFULLY.
Schedule - Accumulation Period
Option Package
--------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period may apply
to each Account depending upon the Option Package selected. (See Section IV -
OPTION PACKAGES.)
Option Package I was selected.
Schedule Effective Date
June 1, 1998
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 0.80%
-----
Total Separate Account Charges 0.95%
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.
GMC-VA-98 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%
More than 2 but less than 4 years 6%
More than 4 but less than 5 years 5%
More than 5 but less than 6 years 4%
More than 6 but less than 7 years 3%
7 years or more 0%
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
--------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of l.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 a variable Annuity Payment is 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 a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
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Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 5
Schedule - Accumulation Period
Option Package
--------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period may apply
to each Account depending upon the Option Package selected. (See Section IV -
OPTION PACKAGES.)
Option Package I was selected.
Schedule Effective Date
June 1, 1998
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 0.80%
-----
Total Separate Account Charges 0.95%
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.
GMC-VA-98 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 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
--------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of l.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 a variable Annuity Payment is 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 a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
--------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 5
Schedule- Accumulation Period
Option Package
--------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period may apply
to each Account depending upon the Option Package selected. (See Section IV -
OPTION PACKAGES.)
Option Package I was selected.
Schedule Effective Date
June 1, 1998
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 0.80%
-----
Total Separate Account Charges 0.95%
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.
GMC-VA-98 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 Account Effective Date (as percentage of
Purchase Payment)
-------------------------------------------------------------------------
Less than 1 year 5%
1 year but less than 2 years 4%
2 years but less than 3 years 3%
3 years but less than 4 years 2%
4 years but less than 5 years 1%
5 years or more 0%
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
--------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of l.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 a variable Annuity Payment is 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 a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
--------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 5
Schedule - Accumulation Period
Option Package
--------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period may apply
to each Account depending upon the Option Package selected. (See Section IV -
OPTION PACKAGES.)
Option Package II was selected.
Schedule Effective Date
June 1, 1998
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 1.10%
-----
Total Separate Account Charges 1.25%
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.
GMC-VA-98 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%
More than 2 but less than 4 years 6%
More than 4 but less than 5 years 5%
More than 5 but less than 6 years 4%
More than 6 but less than 7 years 3%
7 years or more 0%
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
--------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of l.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 a variable Annuity Payment is 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 a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
--------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 5
Schedule - Accumulation Period
Option Package
--------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period may apply
to each Account depending upon the Option Package selected. (See Section IV -
OPTION PACKAGES.)
Option Package II was selected.
Schedule Effective Date
June 1, 1998
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 1.10%
-----
Total Separate Account Charges 1.25%
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.
GMC-VA-98 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 Charg
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
------------------------------------------------------------------
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
--------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of l.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 a variable Annuity Payment is 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 a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
--------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 5
Schedule- Accumulation Period
Option Package
--------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period may apply
to each Account depending upon the Option Package selected. (See Section IV -
OPTION PACKAGES.)
Option Package II was selected.
Schedule Effective Date
June 1, 1998
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 1.10%
-----
Total Separate Account Charges 1.25%
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.
GMC-VA-98 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 Account Effective Date (as percentage of
Purchase Payment)
------------------------------------------------------------------
Less than 1 year 5%
1 year but less than 2 years 4%
2 years but less than 3 years 3%
3 years but less than 4 years 2%
4 years but less than 5 years 1%
5 years or more 0%
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
--------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of l.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 a variable Annuity Payment is 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 a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
--------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 5
Schedule - Accumulation Period
Option Package
--------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period may apply
to each Account depending upon the Option Package selected. (See Section IV -
OPTION PACKAGES.)
Option Package III was selected.
Schedule Effective Date
June 1, 1998
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 1.25%
-----
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.
GMC-VA-98 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%
More than 2 but less than 4 years 6%
More than 4 but less than 5 years 5%
More than 5 but less than 6 years 4%
More than 6 but less than 7 years 3%
7 years or more 0%
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
--------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of l.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 a variable Annuity Payment is 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 a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
--------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 5
Schedule - Accumulation Period
Option Package
--------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period may apply
to each Account depending upon the Option Package selected. (See Section IV -
OPTION PACKAGES.)
Option Package III was selected.
Schedule Effective Date
June 1, 1998
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 1.25%
-----
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.
GMC-VA-98 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 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
--------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of l.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 a variable Annuity Payment is 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 a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
--------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 5
Schedule - Accumulation Period
Option Package
--------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period may apply
to each Account depending upon the Option Package selected. (See Section IV -
OPTION PACKAGES.)
Option Package III was selected.
Schedule Effective Date
June 1, 1998
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 1.25%
-----
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.
GMC-VA-98 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 Account Effective Date (as percentage of
Purchase Payment)
---------------------------------------------------------------------------
Less than 1 year 5%
1 year but less than 2 years 4%
2 years but less than 3 years 3%
3 years but less than 4 years 2%
4 years but less than 5 years 1%
5 years or more 0%
See Section I - DEFINITIONS for explanations.
GMC-VA-98 Page 4
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
--------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of l.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 a variable Annuity Payment is 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 a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
--------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98 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 Payment................................................. 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 Value Transfer......................................... 11
1.30 Maturity Date................................................... 11
1.31 Option Package.................................................. 11
1.32 Purchase Payment(s) ............................................ 11
1.33 Reinvestment.................................................... 11
1.34 Schedule Effective Date......................................... 11
1.35 Separate Account ............................................... 11
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
GMC-VA-98 Page 6
III. PURCHASE PAYMENT, ACCOUNT VALUE, AND WITHDRAWAL PROVISIONS
3.01 Purchase Payment ....................................................................................... 14
3.02 Certificate Holder's Account............................................................................ 14
3.03 Accumulation Units -- Separate Account ................................................................. 15
3.04 Net Investment Factor(s) -- Separate Account ........................................................... 15
3.05 Accumulation Unit Value -- Separate Account ............................................................ 15
3.06 Market Value Adjustment (MVA)........................................................................... 15
3.07 Transfer of Account Value from the Subaccount(s) or Guaranteed Account During the Accumulation Period... 16
3.08 Notice to the Certificate Holder ....................................................................... 17
3.09 Loans .................................................................................................. 17
3.10 Systematic Distribution Options......................................................................... 17
3.11 Death Benefit Amount.................................................................................... 17
3.12 Death Benefit Options Available to Beneficiary ......................................................... 18
3.13 Liquidation of Withdrawal Value ........................................................................ 19
3.14 Deferred Sales Charge .................................................................................. 19
3.15 Payment of Withdrawal Value ............................................................................ 19
3.16 Payment of Adjusted Account Value ...................................................................... 19
3.17 Reinstatement........................................................................................... 19
IV. OPTION PACKAGES
4.01 Election of Option Packages............................................................................ 20
4.02 Description of Option Package I........................................................................ 20
4.03 Description of Option Package II....................................................................... 21
4.04 Description of Option Package III ..................................................................... 23
V. ANNUITY PAYOUT PROVISIONS
5.01 Annuity Payout Options ................................................................................ 25
5.02 Annuity Payment Choices................................................................................ 26
5.03 Terms of Annuity Payout Options........................................................................ 27
5.04 Death of Annuitant/Beneficiary ........................................................................ 27
5.05 Annuity Units -- Separate Account ..................................................................... 28
5.06 Annuity Unit Value -- Separate Account ................................................................ 28
5.07 Annuity Net Return Factor(s) - Separate Account ....................................................... 28
GMC-VA-98 Page 7
I. DEFINITIONS
--------------------------------------------------------------------------------
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 or minus the investment experience for the amount, if
any, allocated to one or more of the Subaccounts;
(b) Plus interest added to the amount, if any, allocated to the
Guaranteed Account;
(c) Plus any additional amount deposited to the Account (see
Section IV - OPTION PACKAGES);
(d) Less the amount of any Maintenance Fee deducted;
(e) Less any additional fee(s) deducted;
(f) Less any amount(s) withdrawn; and
(g) Less any 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) 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:
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.
GMC-VA-98 Page 8
1.11 Beneficiary:
The individual(s) or entity 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 this 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:
This 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.
GMC-VA-98 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 separate account, established by Aetna Life Insurance and
Annuity Company (herein Aetna) under Section 38a-433 of the
Connecticut General Statutes, 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 this 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.
GMC-VA-98 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 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.
1.30 Maturity Date:
The last day of a Guaranteed Account Guaranteed Term.
1.31 Option Package:
The version of the Contract selected which defines, among other
things, the amount of the mortality and expense risk charge, the
calculation of the death benefit, and the availability of certain
withdrawals without imposition of a Deferred Sales Charge.
1.32 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.
1.33 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.
1.34 Schedule Effective Date:
The date that an Option Package becomes effective. This date is
indicated on the Schedule - Accumulation Period. At initial
purchase, this date is the same as the Account Effective Date.
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.
GMC-VA-98 Page 11
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
an Account.
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 this
Contract. Aetna will notify the Contract Holder in writing at
least 30 days before the effective date of any change. Any change
will not affect the amount or terms of any Annuity 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 this Contract
will not apply to Accounts in existence before the effective date
of the change:
The following will not be changed:
(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 (see Section V)
(h) Annuity Unit Value -- Separate Account (see Section V)
(i) Annuity Payout Options (see Section V).
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.
GMC-VA-98 Page 12
2.01 Change of Contract (Cont'd):
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 V - 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 7 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:
This is a Contract between the Contract Holder and Aetna. The
Contract Holder has title to the Contract. Contract Holder rights
are limited to accepting 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
this Contract for his or her Account. Choices made under this
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.
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.
GMC-VA-98 Page 13
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. Changes to a Beneficiary
must be submitted to Aetna's home office in writing and will not
be effective until accepted by Aetna. 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:
Aetna may cancel the Contract if, upon discovery of erroneous
information, the Contract would not have been issued.
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. 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.
3.02 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.
GMC-VA-98 Page 14
3.03 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.
3.04 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;
(d) divided by the total value of the Subaccount's accumulation
and annuity units on the preceding Valuation Date;
(e) minus a daily charge at the annual effective rate for
mortality and expense risks as stated in the Schedule -
Accumulation Period and Schedule - Annuity Period, and an
administrative charge of 0.15% (unless reduced or
eliminated) during the Accumulation Period and up to 0.25%
during the Annuity Period (currently 0% during the Annuity
Period).
The net investment rate may be either positive or negative.
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 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 Term Value Transfer;
(b) A full or partial withdrawal (including a free withdrawal,
see Section III - Deferred Sales Charge), except for a
payment made:
(1) under a Systematic Distribution Option, 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.
GMC-VA-98 Page 15
3.06 Market Value Adjustment (MVA) (Cont'd):
Market value adjusted amounts will be equal to the amount
withdrawn multiplied by the following ratio:
x
---
365
(1 + i)
----------
x
---
365
(1 + j)
Where:
i is the Deposit Period yield
j is the current yield
x is the number of days remaining 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.
3.07 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.
GMC-VA-98 Page 16
3.07 Transfer of Account Value from the Subaccount(s) or Guaranteed Account
During the Accumulation Period (Cont'd):
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 do not
count against the annual Transfer limit.
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.
3.08 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.
3.09 Loans:
Loans are not available under this Contract.
3.10 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. No
Deferred Sales Charge or MVA will apply to the automatic payments
made under a Systematic Distribution Option.
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;
(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.
3.11 Death Benefit Amount:
The amount of the death benefit is described in Section IV -
OPTION PACKAGES.
GMC-VA-98 Page 17
3.12 Death Benefit 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.
(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.
GMC-VA-98 Page 18
3.13 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.
3.14 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,
amounts applied to an Annuity Payout Option and deductions
made prior to the Annuitant's date of death;
(b) For an Annuity Payout Option (see Section V);
(c) As a distribution under a Systematic Distribution Option;
(d) 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;
(e) By Aetna under Section III - Payment of Adjusted Account
Value;
(f) Under a qualified Contract when the amount withdrawn is
equal to the minimum distribution required by the Code for
the Account, calculated using a method permitted under the
Code and agreed to by Aetna;
(g) As a free withdrawal as described in Section IV - OPTION
PACKAGES; or
(h) Under the Nursing Home Waiver, if available, and as
described in Section IV - OPTION PACKAGES.
3.15 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.
3.16 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.
3.17 Reinstatement:
The Certificate Holder may reinstate the proceeds of a full
withdrawal, subject to terms and conditions established by Aetna.
GMC-VA-98 Page 19
IV. OPTION PACKAGES
--------------------------------------------------------------------------------
The Contract offers three Option Packages regarding calculation of the death
benefit and the ability to withdraw money free of Deferred Sales Charge. The
Option Package selected is reflected in the Schedule-Accumulation Period
attached to the Certificate. At initial purchase, the Schedule Effective Date is
the same as the Account Effective Date. If, at a later date, the (Contract)
Holder wishes to replace the current Option Package with another available
Option Package, the (Contract) Holder may do so upon any anniversary of the
Account Effective Date.
A different Schedule-Accumulation Period may apply to each Certificate Holder
depending upon the Option Package selected.
Below is a description of the ability to elect other Option Packages and the
contractual provisions of each Option Package.
4.01 Election of Option Packages:
Any (Contract) Holder, who meets the applicable minimum Account
Value required by Aetna, may elect to replace the Option Package
in effect with one of the other available Option Packages. The
eligible (Contract) Holder may make the election during the sixty
day period prior to and including any anniversary of the Account
Effective Date. Such election must be made in writing and received
in good order at Aetna's home office during the election period.
The effective date of the newly elected Option Package is the
anniversary of the Account Effective Date at the end of the 60 day
election period. Aetna will issue another Schedule reflecting the
new Option Package chosen. The new Schedule will reflect the
revisions to the (Contract) Holder's benefits during the
Accumulation Period, namely:
(bullet) The new Schedule Effective Date,
(bullet) The revised Charges to Separate Account,
(bullet) The calculation of the death benefit, and
(bullet) The revised ability to withdraw money free of Deferred
Sales Charge.
All other Contract features remain in effect from the Account
Effective Date.
4.02 Description of Option Package I:
Deferred Sales Charge:
In addition to the events described in Section III - Deferred
Sales Charge, the total amount that may be withdrawn each Account
Year without a Deferred Sales Charge cannot exceed 10% of the
Account Value less:
(1) Any amount(s) withdrawn and/or requested for withdrawal
under a Systematic Distribution Option, or
(2) Any amount(s) taken as a minimum required distribution as
described in Section III - Deferred Sales Charge.
Death Benefit Calculation During the Accumulation Period:
If the (Contract) 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 (Contract) Holder to die.
The amount of the death benefit is determined as follows:
(a) Death of the Annuitant.
The death benefit 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 as of the Claim Date; or
(2) The Account Value on the Claim Date.
GMC-VA-98 Page 20
4.02 Description of Option Package I (Cont'd):
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.
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 III
Death Benefit Options Available to Beneficiary.
(b) Death of the (Contract) Holder if the (Contract) Holder is
not the Annuitant.
On the Claim Date, the amount of the death benefit equals
the Account Value.
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 III - Death Benefit Options Available to
Beneficiary.
(c) Death of a spouse who is the Beneficiary of a (Contract)
Holder/Annuitant and who becomes a successor (Contract)
Holder/ Annuitant.
The amount of the death benefit paid to the Beneficiary
at the death of a successor (Contract) 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 (Contract) Holder's death is
treated as the initial Purchase Payment.
Charges to Separate Account:
See Schedule-Accumulation Period.
4.03 Description of Option Package II:
Deferred Sales Charge:
In addition to the events described in Section III - Deferred
Sales Charge, the total amount that may be withdrawn each Account
Year without a Deferred Sales Charge cannot exceed 10% of the
Account Value less:
(1) Any amount(s) withdrawn and/or requested for withdrawal
under a Systematic Distribution Option, or
(2) Any amount(s) taken as a minimum required distribution as
described in Section III - Deferred Sales Charge.
No Deferred Sales Charge is deducted from any portion of the
Purchase Payment(s) which is withdrawn:
If the Annuitant has spent at least 45 consecutive days in
a licensed nursing care facility and each of the following
conditions are met:
(1) More than one Account Year has elapsed since the
Schedule Effective Date; and
(2) The withdrawal is requested within three years of
admission to a licensed nursing care facility.
This waiver does not apply if the Annuitant was in a
licensed nursing care facility for at least one day during
the two week period immediately preceding or following the
Schedule Effective Date.
GMC-VA-98 Page 21
4.03 Description of Option Package II (Cont'd):
Death Benefit Calculation During the Accumulation Period:
If the (Contract) 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 (Contract) Holder to die.
The amount of the death benefit is determined as follows:
(a) Death of the Annuitant.
The death benefit 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 as of the Claim Date; or
(2) The Account Value on the Claim Date; or
(3) The "Step-up Value" on the Claim Date.
On the Schedule Effective Date, the Step-up Value is the
greater of:
(1) The Account Value; or
(2) The Step-up Value, if any, calculated on the
anniversary prior to the Schedule Effective Date,
adjusted for Purchase Payments(s) made and
amount(s) withdrawn or applied to an Annuity
Payout Option during the prior Account Year.
Thereafter, on each anniversary of the Schedule
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 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 Schedule Effective Date.
On the Claim Date, the Step-up Value
shall equal the Step-up Value calculated
prior to death. It is adjusted for
Purchase Payment(s) made and amount(s)
withdrawn or applied to an Annuity Payout
Option since the anniversary on which the
Step-up Value was calculated.
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.
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 III - Death Benefit Options
Available to the Beneficiary.
(b) Death of the (Contract) Holder if the (Contract) Holder is
not the Annuitant.
On the Claim Date, the amount of the death benefit equals
the Account Value.
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 III - Death Benefit Options Available to the
Beneficiary.
GMC-VA-98 Page 22
4.03 Description of Option Package II (Cont'd):
(c) Death of a spouse who is the Beneficiary of a (Contract)
Holder/Annuitant and who becomes a successor (Contract)
Holder/ Annuitant.
The amount of the death benefit paid to the Beneficiary at
the death of a successor (Contract) Holder/Annuitant is
the greater of the values as described in (a) above except
that:
(1) In calculating (a)(1), the Account Value on the
Claim Date for the prior (Contract) Holder's death
is treated as the initial Purchase Payment; and
(2) In calculating (a)(3), the Step-up Value on the
Claim Date for the prior (Contract) Holder's death
is the initial Step-up Value.
Charges to Separate Account:
See Schedule-Accumulation Period.
4.04 Description of Option Package III:
Deferred Sales Charge:
In addition to the events described in Section III - Deferred
Sales Charge, the total amount that may be withdrawn each Account
Year without a Deferred Sales Charge cannot exceed 10% of the
Account Value less:
(1) Any amount(s) withdrawn and/or requested for withdrawal
under a Systematic Distribution Option, or
(2) Any amount(s) taken as a minimum required distribution
as described in Section III - Deferred Sales Charge.
If the entire 10% of Account Value free of Deferred Sales Charge
is not taken in any Account Year, the (Contract) Holder may
accumulate in successive Account Years the percentage not taken.
The amount eligible each Account Year for withdrawal without a
Deferred Sales Charge cannot exceed 30% of the Account Value less
any amount(s) withdrawn and/or requested for withdrawal under a
Systematic Distribution Option, or taken as a minimum required
distribution as described in Section III - Deferred Sales Charge,
during the Account Year.
No Deferred Sales Charge is deducted from any portion of the
Purchase Payment(s) which is withdrawn:
If the Annuitant has spent at least 45 consecutive days in
a licensed nursing care facility and each of the following
conditions are met:
(1) More than one Account Year has elapsed since the
Schedule Effective Date; and
(2) The withdrawal is requested within three years of
admission to a licensed nursing care facility.
This waiver does not apply if the Annuitant was in a
licensed nursing care facility for at least one day during
the two week period immediately preceding or following the
Schedule Effective Date.
GMC-VA-98 Page 23
4.04 Description of Option Package III (Cont'd):
Death Benefit Calculation During the Accumulation Period:
If the (Contract) 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 (Contract) Holder to die.
The amount of the death benefit is determined as follows:
(a) Death of the Annuitant.
The death benefit 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 as of the Claim Date; or
(2) The Account Value on the Claim Date; or
(3) The Step-up Value on the Claim Date; or
(4) The "Roll-up Value" on the Claim Date.
On the Schedule Effective Date, the Step-up Value is the greater
of:
(1) The Account Value; or
(2) The Step-up Value, if any, calculated on the anniversary
prior to the Schedule Effective Date, adjusted for
Purchase Payments(s) made and amount(s) withdrawn or
applied to an Annuity Payout Option during the prior
Account Year.
Thereafter, on each anniversary of the Schedule 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 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 Schedule
Effective Date.
On the Claim Date, the Step-up Value shall equal the Step-up Value
calculated prior to death. It is adjusted for Purchase Payment(s)
made and amount(s) withdrawn or applied to an Annuity Payout
Option since the anniversary on which the Step-up Value was
calculated.
On the Schedule Effective Date, the Roll-up Value is equal to the
Account Value.
Thereafter, on each anniversary of the Schedule Effective Date
until the anniversary immediately preceding the Annuitant's 76th
birthday or death, whichever is earlier, the Roll-up Value is
equal to the Roll-up Value most recently calculated, multiplied by
a factor of 1.05, adjusted for Purchase Payment(s) made, and
amount(s) withdrawn or applied to an Annuity Payout Option during
the prior Account Year. The Roll-up Value may not exceed 200% of
the Account Value on the Schedule Effective Date, adjusted for
additional Purchase Payments made, and amount(s) withdrawn or
applied to an Annuity Payout Option.
On the Claim Date, the Roll-up Value shall equal the Roll-up Value
calculated prior to death. It is adjusted for additional Purchase
Payment(s) made and amount(s) withdrawn or applied to an Annuity
Payout Option since the anniversary on which the Roll-up Value was
calculated.
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.
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 III - Death Benefit Options
Available to the Beneficiary.
GMC-VA-98 Page 24
4.04 Description of Option Package III (Cont'd):
(b) Death of the (Contract) Holder if the (Contract) Holder is
not the Annuitant.
On the Claim Date, the amount of the death benefit equals
the Account Value.
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 III - Death Benefit Options Available to the
Beneficiary.
(c) Death of a spouse who is the Beneficiary of a (Contract)
Holder/Annuitant and who becomes a successor (Contract)
Holder/ Annuitant.
The amount of the death benefit paid to the Beneficiary at
the death of a successor (Contract) Holder/Annuitant is
the greater of the values as described in (a) above except
that:
(1) In calculating (a)(1), the Account Value on the
Claim Date for the prior (Contract) Holder's death
is treated as the initial Purchase Payment; and
(2) In calculating (a)(3), the Step-up Value on the
Claim Date for the prior (Contract) Holder's death
is the initial Step-up Value; and
(3) In calculating (a)(4), the Roll-up Value on the
Claim Date for the prior (Contract) Holder's death
is the initial Roll-Up Value.
Charges to Separate Account:
See Schedule-Accumulation Period.
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 five 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 Payment.
GMC-VA-98 Page 25
5.01 Annuity Payout Options (Cont'd):
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 a fixed Annuity Payment.
If a fixed Annuity Payment is 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 any portion of 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) A fixed Annuity Payment using the General Account;
(b) A variable Annuity Payment using any of the Subaccount(s)
available under this Contract for the Annuity Period; or
(c) A combination of (a) and (b).
If a fixed Annuity Payment is 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 a variable Annuity Payment is 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 without charge 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.
GMC-VA-98 Page 26
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 a fixed Annuity Payment is chosen Aetna will use the
applicable current rate if it will provide higher fixed
Annuity Payments.
(d) For purposes of calculating the guaranteed first payment
of a variable or fixed Annuity Payment, 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 Payment 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 Annuity Payment under a
variable Annuity Payment 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) and administrative charges 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.
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.
GMC-VA-98 Page 27
5.04 Death of Annuitant/Beneficiary (Cont'd):
(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.
(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
variable Annuity Payment which is equal to:
(a) The portion of the Account Value applied to pay a variable
Annuity Payment (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 Payment 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 Annuity Payment amount 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
GMC-VA-98 Page 28
5.07 Net Return Factor(s) - Separate Account (Cont'd):
(e) A daily charge for mortality and expense risks, which may
include profit, and a daily administrative charge at the
annual rate as shown on Schedule - Annuity Period.
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.
GMC-VA-98 Page 29
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 18 $5.96
6 15.14 19 5.73
7 13.16 20 5.51
8 11.68 21 5.32
9 10.53 22 5.15
10 9.61 23 4.99
11 8.86 24 4.84
12 8.24 25 4.71
13 7.71 26 4.59
14 7.26 27 4.47
15 6.87 28 4.37
16 6.53 29 4.27
17 6.23 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 18 $6.20
6 15.35 19 5.97
7 13.38 20 5.75
8 11.90 21 5.56
9 10.75 22 5.39
10 9.83 23 5.24
11 9.09 24 5.09
12 8.46 25 4.96
13 7.94 26 4.84
14 7.49 27 4.73
15 7.10 28 4.63
16 6.76 29 4.53
17 6.47 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 18 $6.94
6 15.99 19 6.71
7 14.02 20 6.51
8 12.56 21 6.33
9 11.42 22 6.17
10 10.51 23 6.02
11 9.77 24 5.88
12 9.16 25 5.76
13 8.64 26 5.65
14 8.20 27 5.54
15 7.82 28 5.45
16 7.49 29 5.36
17 7.20 30 5.28
----------------------------------------------------------------------------------
* Net of any applicable premium tax deduction
GMC-VA-98 Page 30
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(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
--------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- -------
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
GMC-VA-98 Page 31
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(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
------------------- ------------------- ------------------- ------------------- -------------------
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
GMC-VA-98 Page 32
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(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
------------------- ------------------- ------------------- ------------------- -------------------
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
GMC-VA-98 Page 33
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
GMC-VA-98 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 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
GMC-VA-98 Page 35
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
GMC-VA-98 Page 36
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
GMC-VA-98 Page 37
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
GMC-VA-98 Page 38
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
GMC-VA-98 Page 39
--------------------------------------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
X.X. Xxx 00000
Xxxxxxxx, Xxxxxxxxxxx 00000-0000
(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.
GMC-VA-98
