Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed as follows:
1. The following sections a), b), and c) will apply to all Participants
under this Contract.
a) Add to the Deposit, Reserve and Surrender Provisions the
following:
Reinstatement: All or a portion of the proceeds of a full
surrender of this Contract may be reinvested within 30 days
after the surrender if allowed by law. Any annual maintenance
charge and Surrender Fee imposed at the time of surrender on
the amount being reinvested will be included in the
reinstatement. Any Market Value Adjustment deducted from GA
Account surrenders will not be included in the reinstatement.
Amounts will be reinstated among the Fixed Account, GA
Account, and Separate Account in the same proportion as they
were at the time of surrender. Any amounts reinstated to the
GA Account will be credited to the current Deposit Period. The
number of Record Units reinstated will be based on the Record
Unit Value(s) next computed after receipt at Aetna's Home
Office of the reinstatement request and the amount to be
reinvested.
Any annual maintenance charge which falls due after the
surrender and before the reinstatement will be deducted from
the amount reinstated.
Reinstatement is permitted only once.
b) Delete the last paragraph under sections 3.02 and 3.03 and
add the following:
On the basis of information supplied by the Owner, Aetna will
credit the Net Deposit(s) among:
(a) the General Account;
(b) the Guaranteed Accumulation Account;
(c) the Fund(s) in which the Separate Account invests.
The percentage of the Net Deposit(s) to be applied to each
investment above must be chosen by the Owner.
During any calendar year, Aetna may be told to change the
investment mix four times. If additional changes are allowed,
each may be subject to a fee of up to $10.
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c) Delete the paragraph under the section titled Transfer of
Contract Reserves and add the following:
Before an annuity option is elected, the Owner may transfer
any portion of the contract Reserves from any Fund to any
other Fund, to the General Account or to the GA, Account's
current Deposit Period. Any portion of the Contract Reserve in
the GA, Account may be transferred to any Fund or to the
General Account. Transfers from the GA Account are subject to
the Withdrawal and Market Value Adjustment provisions.
Four transfers of Contract Reserves (excluding transfers from
the GA Account at the end of a Guaranteed Term) can be made
during a calendar year period. If additional transfers are
allowed, each may be subject to a fee of up to $10.
2. The following changes will not apply to Participants covered under the
Contract before the effective date of this endorsement.
(a) Delete the paragraph titled Deductions from The Separate
Account And The Funds on the Specifications page and add the
following:
Deductions from the Separate Account - There will be
deductions for mortality and expense risks and administrative
fees. If the dollar amount of Variable Annuity payments are
not to decrease, Aetna must earn a gross return on the assets
of the Separate Account of:
(bullet) 4.75% on an annual basis, plus an annual return of up
to .25% needed to offset the administrative charge
set at the time annuity payments commenced, if an
Assumed Annual Net Return Rate of 3.5% is chosen; or,
(bullet) 6.25% on an annual basis plus an annual return of up
to .25% needed to offset the administrative charge
set at the time annuity payments commenced, if an
Assumed Annual Net Return Rate of 5% is chosen.
(b) Delete the paragraph under the section titled Investment
Increment Factors - Separate Account and insert the following:
Investment Increment Factors are those items used to
determine a Fund's Net Return Factor for each
valuation period. The Net Return Factors are used to
compute all Separate Account values and payments for
any Fund. The Net Return Factor for each Fund is
equal to 1.0000000 plus the Net Return Rate.
The Net Return Rate is equal to:
(a) The value of the shares of the Fund held by
the Separate Account at the end of a
Valuation Period; minus
2
(b) the value of the shares of the Fund held by
the Separate Account at the start of the
Valuation Period; plus or minus
(c) taxes (or reserves for taxes on the Separate
Account (if any); divided by
(d) the total value of the Fund Record Units and
Fund Annuity Units of the Separate Account
at the start of the Valuation Period; minus
(e) a daily actuarial charge at an annual rate
of 1.25% for annuity mortality and expense
risks and profit; and a daily administrative
charge which will not exceed .25% on an
annual basis.
A Net Return Rate may be more or less than 0.
The value of a share of the Fund is equal to the net
assets of the Fund divided by the number of shares
outstanding.
The administrative charge may be changed annually
except for amounts which have been used to purchase
an annuity. This charge will not exceed .25%.
(c) Under the section titled Fund(s) Annuity Unit Value - Separate
Account, delete the last paragraph and add the following:
Payments shall not be changed due to changes in the mortality
or expense results or administrative charges.
(d) Under the section titled Contract Reserve, add the following
final paragraph:
Any charge specified in (e) above will also be charged upon
surrender of the entire Individual Plan Account if such
surrender takes place on a date other than an anniversary of
the Contract effective date.
(e) Under the section titled Annuity Options, add the following
sentence to Option 2:
This option may only be elected as a Xxxxx Xxxxxxx.
(f) Add as a final paragraph to the section titled Annuity
Options, the following:
Other Options - Aetna may make other options available as
allowed by the laws of the state in which this Contract is
delivered.
Endorsed and made a part of this Contract effective May 1, 1984.
/s/ Xxxxxxx X. Xxxxxx
President
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