Exhibit 99-B.4.3
1
[Aetna Logo] Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxx
Xxxxxxxx, XX 00000
(000) 000-0000
You may call the toll-free number shown above to get
answers to questions or help to resolve a complaint.
Group Combination Annuity Contract (Nonparticipating)
This contract sets forth all the rights and obligations of Aetna Life
Insurance and Annuity Company (Aetna) and the Contract Holder(s) (you) named
on the cover. This contract constitutes the entire contract.
Specifications
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Plan
SPECIMEN
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Type of Plan
SPECIMEN
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Contract Holder
SPECIMEN1
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Contract No.
SPECIMEN
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Effective Date
SPECIMEN
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This contract is Delivered in YOUR STATE and is Subject to the Laws of that
Jurisdiction
Please read this contract carefully. It sets forth, in detail, your rights
and obligations and also those of Aetna Life Insurance and Annuity Company.
Right to Cancel
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The Contract Holder may cancel this Contract within 10 days of receiving it by
returning this Contract along with a written notice to Aetna at the above
address or to the agent from whom it was purchased. Within 7 days after it
receives the notice of cancellation and this Contract at its Home Office,
Aetna will return the entire consideration paid plus any increase or minus any
decrease in the current value of any funds allocated to the Separate Account.
Signed at the Home Office on the Effective Date.
2 2
/s/ /s/
President Secretary
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT
FORMULA DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
Specifications
______________________________________________________________________________
Guaranteed Interest There is a guaranteed interest rate for
Contributions(s)
Rate held in the Fixed Plus Account and the GA Account (see
Contract Schedule I).
______________________________________________________________________________
Deductions from the There will be deductions for mortality and expense
risks
Separate Account and administrative fees (see 3.07 and 5.07).
______________________________________________________________________________
Deductions from Contribution(s) are subject to a deduction for premium
Contribution(s) taxes, if any (see 3.02).
______________________________________________________________________________
Withdrawal Fee There may be a charge deducted upon withdrawal (see
Contract Schedule I).
This Contract is a legal contract. This Contract and any attached document and
subsequent endorsements constitutes the entire legal relationship between
Aetna and the Contract Holder.
READ THIS CONTRACT CAREFULLY. This Contract sets forth, in detail, all of the
rights and obligations of both you and Aetna. IT IS THEREFORE IMPORTANT THAT
YOU READ THIS CONTRACT CAREFULLY.
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Table of Contents
Separate Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Separate Account: . . . . . . . . . . . . . . . . . . . . . . . . . 7
Charges to Separate Account: . . . . . . . . . . . . . . . . . . . 7
Fixed Plus Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Minimum Guaranteed Interest Rate: . . . . . . . . . . . . . . . . . . 7
Partial Withdrawal: . . . . . . . . . . . . . . . . . . . . . . . . . 7
Full Withdrawal: . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Guaranteed Accumulation Account (GA Account) . . . . . . . . . . . . . . . 8
Minimum Guaranteed Interest Rate: . . . . . . . . . . . . . . . . . . 8
Separate Account and GA Account . . . . . . . . . . . . . . . . . . . . . . 8
Withdrawal Fee: . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Separate Account, GA Account and Fixed Plus Account . . . . . . . . . . 9
Transfers: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Maintenance Fee: . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Systematic Withdrawal Option (SWO): . . . . . . . . . . . . . . . . . 9
Loan Interest Rate: . . . . . . . . . . . . . . . . . . . . . . . . . 9
Separate Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Charges to Separate Account: . . . . . . . . . . . . . . . . . . . . 11
Variable Annuity Assumed Annual Net Return Rate: . . . . . . . . . . 11
Annuity Option 2: . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Fixed Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Minimum Guaranteed Interest Rate: . . . . . . . . . . . . . . . . . . 11
DEFINITIONS 13
1.01 Accumulation Period: . . . . . . . . . . . . . . . . . . . . . . 13
1.02 Adjusted Current Value: . . . . . . . . . . . . . . . . . . . . 13
1.03 Annuitant: . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.04 Annuity: . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.05 Beneficiary: . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.06 Code: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.07 Contract Holder: . . . . . . . . . . . . . . . . . . . . . . . . 13
1.08 Contribution: . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.09 Current Value: . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.10 Deposit Period: . . . . . . . . . . . . . . . . . . . . . . . . 14
1.11 Fixed Plus Account: . . . . . . . . . . . . . . . . . . . . . . 14
1.12 Fixed Plus Account Guaranteed Interest Rate: . . . . . . . . . . 14
4 4
1.13 Fixed Annuity: . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.14 Fund(s): . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.15 General Account: . . . . . . . . . . . . . . . . . . . . . . . . 14
1.16 Guaranteed Accumulation Account (GA Account): . . . . . . . . . 14
1.17 GA Account Guaranteed Interest Rate: . . . . . . . . . . . . . . 14
1.18 Guaranteed Term (Term): . . . . . . . . . . . . . . . . . . . . 15
1.19 Individual Account(s): . . . . . . . . . . . . . . . . . . . . . 15
1.20 Loan Account: . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.21 Loan Effective Date: . . . . . . . . . . . . . . . . . . . . . . 15
1.22 Loan Interest Rate: . . . . . . . . . . . . . . . . . . . . . . 15
1.23 Maintenance Fee: . . . . . . . . . . . . . . . . . . . . . . . . 15
1.24 Market Value Adjustment (MVA): . . . . . . . . . . . . . . . . . 15
1.25 Matured Term Value: . . . . . . . . . . . . . . . . . . . . . . 15
1.26 Matured Term Value Transfer: . . . . . . . . . . . . . . . . . . 16
1.27 Maturity Date: . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.28 Monthly Average Corporates: . . . . . . . . . . . . . . . . . . 16
1.29 Net Contribution: . . . . . . . . . . . . . . . . . . . . . . . 16
1.30 Nonunitized Separate Account: . . . . . . . . . . . . . . . . . 16
1.31 Participant: . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.32 Plan: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.33 Reinvestment: . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.34 Separate Account: . . . . . . . . . . . . . . . . . . . . . . . 17
1.35 Transfer: . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
1.36 Transferred Assets: . . . . . . . . . . . . . . . . . . . . . . 17
1.37 Valuation Period: . . . . . . . . . . . . . . . . . . . . . . . 17
1.38 Variable Annuity: . . . . . . . . . . . . . . . . . . . . . . . 17
1.39 Withdrawal Fee: . . . . . . . . . . . . . . . . . . . . . . . . 17
II. GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.01 Change of Contract: . . . . . . . . . . . . . . . . . . . . . . 17
2.02 Change of Fund: . . . . . . . . . . . . . . . . . . . . . . . . 18
2.03 Nonparticipating Contract: . . . . . . . . . . . . . . . . . . . 18
2.04 Payments: . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.05 State Laws: . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.06 Control of Contract: . . . . . . . . . . . . . . . . . . . . . . 18
2.07 Designation of Beneficiary: . . . . . . . . . . . . . . . . . . 19
2.08 Misstatements and Adjustments: . . . . . . . . . . . . . . . . . 19
2.09 Incontestability: . . . . . . . . . . . . . . . . . . . . . . . 19
2.10 Grace Period: . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.11 Individual Certificates: . . . . . . . . . . . . . . . . . . . . 20
2.12 Aggregation of Contracts: . . . . . . . . . . . . . . . . . . . 20
5 5
III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS . . . . . . . 20
3.01 Individual Account(s): . . . . . . . . . . . . . . . . . . . . . 20
3.02 Net Contribution(s): . . . . . . . . . . . . . . . . . . . . . . 20
3.03 Limitation on Contributions: . . . . . . . . . . . . . . . . . . 20
3.04 Experience Credits: . . . . . . . . . . . . . . . . . . . . . . 21
3.05 Fund Record Units: . . . . . . . . . . . . . . . . . . . . . . . 21
3.06 Fund Record Unit Value: . . . . . . . . . . . . . . . . . . . . 21
3.07 Fund Net Return Factors: . . . . . . . . . . . . . . . . . . . . 21
3.08 Market Value Adjustment (MVA): . . . . . . . . . . . . . . . . . 21
3.09 Transfer(s): . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.10 Notice to the Participant: . . . . . . . . . . . . . . . . . . . 23
3.11 Loans: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.12 Xxxxxx and Timing of Distributions: . . . . . . . . . . . . . . 25
3.13 Withdrawal: . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3.14 Withdrawal Value: . . . . . . . . . . . . . . . . . . . . . . . 26
3.15 Withdrawal Restrictions: . . . . . . . . . . . . . . . . . . . . 26
3.16 Withdrawals from the GA Account: . . . . . . . . . . . . . . . . 27
3.17 Withdrawal Fee Applicable to Funds and GA Account: . . . . . . . 27
3.18 Payment of Fixed Plus Account Full Withdrawal: . . . . . . . . . 27
3.19 Reinstatement: . . . . . . . . . . . . . . . . . . . . . . . . . 28
3.20 Payment of Minimum Current Value: . . . . . . . . . . . . . . . 28
3.21 Amount Payable at Death (Before Annuity Payments Start): . . . . 28
IV. NON-ANNUITY DISTRIBUTION OPTIONS . . . . . . . . . . . . . . . . . . . 28
4.01 Distribution Options: . . . . . . . . . . . . . . . . . . . . . 28
4.02 Estate Conservation Option: . . . . . . . . . . . . . . . . . . 28
4.03 Systematic Withdrawal Option: . . . . . . . . . . . . . . . . . 30
V. ANNUITY PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
5.01 Choices: . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
5.02 Terms of Annuity Options: . . . . . . . . . . . . . . . . . . . 32
5.03 Annuity Payments to Participant: . . . . . . . . . . . . . . . . 33
5.04 Death Provision: . . . . . . . . . . . . . . . . . . . . . . . . 33
5.05 Fund Annuity Units: . . . . . . . . . . . . . . . . . . . . . . 33
5.06 Fund Annuity Unit Value: . . . . . . . . . . . . . . . . . . . . 33
5.07 Fund Annuity Net Return Factor: . . . . . . . . . . . . . . . . 34
5.08 Annuity Options: . . . . . . . . . . . . . . . . . . . . . . . . 34
VI. QUALIFIED JOINT AND SURVIVOR AND PRERETIREMENT SURVIVOR ANNUITIES . . 35
6.01 ERISA Requirements: . . . . . . . . . . . . . . . . . . . . . . 35
6.02 Waiver and Spousal Consent: . . . . . . . . . . . . . . . . . . 35
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Contract Schedule I
Level [A]
Accumulation Period
Separate Account:
______________________________________________________________________________
Variable Annuity Account C
Charges to Separate Account:
A daily charge is deducted from any portion of the Current Value
allocated to the Separate Account. The charge is determined by the
value of total assets held by Aetna under this Contract and other
Aetna contracts of the same class, on each anniversary date of
this Contract. The daily charge for Annuity mortality and expense
risk and profit (M & E) will be adjusted (up or down) no less
often than annually to reflect changes in the Current Value of all
Plan accounts. The charge will include a daily administrative
charge which will not exceed [0.25%] on an annual basis.
Total Assets M & E Administrative Charge
(annual effective rate)(annual effective rate)
__________________________________________________________________
Less than $500,000 1.25% 0.25%
500,000 - 1,000,000 1.25% 0.25%
1,000,001 - 5,000,000 1.25% 0.25%
5,000,001 - 15,000,000 1.25% 0.25%
Greater than 15,000,000 1.25% 0.25%
Initial Charges will be based on Aetna's estabed year end asset
level for the Contract Holder
Fixed Plus Account
______________________________________________________________________________
_
Minimum Guaranteed Interest Rate:
[3%] (effective annual rate of return).
Beginning on the [tenth] anniversary of the effective date
of an Individual Account, Aetna will credit amounts with an
interest rate that is at least [0.25%] higher than the then
declared interest rate for Individual Accounts before the
[tenth] anniversary.
Partial Withdrawal:
The [20%] annual limit applicable to a partial withdrawal
from the Fixed Plus Account will be waived when the
withdrawal is:
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a) Due to the Participant's death (within [six (6)]
months of the Participant's date of death), before
Annuity benefit payments begin; or
b) Used to purchase Annuity benefits.
Full Withdrawal:
The Payment of Fixed Plus Account Full Withdrawal provision
will be waived when the withdrawal is:
a) Due to the Participant's death before Annuity payments
begin and request for payment is received within six
(6) months after the Participant's date of death;
b) Used to purchase Annuity benefits; or
c) When the amount in the Fixed Plus Account is $3,500 or
less and no amount has been surrendered, transferred,
taken as a loan or used to purchase Annuity benefits
during the prior 12 months.
Guaranteed Accumulation Account (GA Account)
______________________________________________________________________________
Minimum Guaranteed Interest Rate:
[3%] (effective annual rate of return).
Separate Account and GA Account
______________________________________________________________________________
Withdrawal Fee:
Length of Time from Individual
Account(s) Effective Date (Years) Withdrawal Fee
Fewer than 5 5%
5 or more, but fewer than 7 5%
7 or more, but fewer than 9 5%
9 or more, but fewer than 10 5%
10 or more 5%
The Withdrawal Fee will not be deducted from any portion of
the Individual Account(s) Current Value which is paid:
- Due to the Participant's death before Annuity payments
begin;
- Used to purchase Annuity benefits;
- Due to the election of the Estate Conservation Option
(ECO) or the Systematic Withdrawal Option (SWO) (see
Section IV);
9 9
- In an amount equal to or less than [10%] of the
Individual Account(s) Current Value, as part of the
first partial withdrawal request in a calendar year to
a Participant who is at least age 59 1/2 and less than
70 1/2. The Individual Account(s)Current Value is
calculated as of the date the partial withdrawal
request is received in good order at Aetna's Home
Office. Any outstanding loans from the Individual
Account(s) are excluded when calculating the
Individual Account(s) Current Value. This provision
does not apply to partial withdrawal due to loan
defaults made from the Individual Account(s) and does
not apply to full withdrawal requests. This provision
may not be exercised if SWO is elected;
- When the Individual Account(s) Current Value is
[$3,500] or less and no amount has been withdrawn,
taken as a loan or used to purchase Annuity benefits
during the prior [12] months;
- To relieve a Participant's "financial hardship," as
may be allowed for annuity contracts under Section
403(b) of the Code or other applicable Internal
Revenue Service rules or regulations; or
- On account of a Participant's separation from service.
The Participant must submit documentation satisfactory
to Aetna to confirm that the he/she is no longer
providing services to the employer.
- The withdrawal fee will never exceed 8.5% of the total
Contributions made to the Individual Account(s).
Separate Account, GA Account and Fixed Plus Account
______________________________________________________________________________
Transfers:
An unlimited number of Transfers may be made during the
Accumulation Period.
Maintenance Fee:
An annual Maintenance Fee may be charged, as determined by
the value of total assets held by Aetna under this
Contract and other Aetna contracts of the same class, on
each anniversary date of this Contract. The Maintenance Fee
may go up or down each year. Where applicable, the
Maintenance Fee will be charged for each Participant in the
Contract.
10 10
Total Assets Maintenance Fee
______________________________________________________________________________
Less than $500,000 $25.00
500,000 - 1,000,000 $25.00
1,000,001 - 5,000,000 $25.00
5,000,001 - 15,000,000 $25.00
Greater than 15,000,000 $25.00
Initial charges will be based on Aetna's estimated year end asset
level for the Contract Holder
Systematic Withdrawal Option (SWO):
The Specified Payment or Specified Percentage may not be
greater than [20%] of the Individual Account's Current Value
at the time of election. The Specified Period may not be
less than [5 ]years.
Loan Interest Rate:
a) Plans subject to Title I of the Employee Retirement
Income Security Act of 1974 (ERISA): A Loan Interest
Rate is set on the first business day of each month.
For each loan, the initial Loan Interest Rate is equal
to the Monthly Average Corporates for the calendar
month beginning two months before the calendar month
in which the Loan Effective Date occurs. The initial
Loan Interest Rate is effective for a period of not
less than three months and not more than one year.
The period is specified in the loan agreement. For
each period, the Loan Interest Rate is adjusted if the
new rate is at least [0.5%] higher or lower than the
previous rate. The Participant will receive reasonable
notification of any change to the Loan Interest Rate.
b) Plans not subject to ERISA: [6%] on an annual basis.
See Section I. - DEFINITIONS for explanations.
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Contract Schedule II
Annuity Period
Separate Account
______________________________________________________________________________
Charges to Separate Account:
A daily charge at an annual effective rate of 1.25% for
mortality and expense risk and profit (M & E) is deducted
from any portion of the Current Value allocated to a
Variable Annuity. The administrative charge is established
upon election of an Annuity option. This charge will not
exceed an annual effective rate of [0.25%].
Variable Annuity Assumed Annual Net Return Rate:
If a Variable Annuity is chosen, an assumed annual net
return rate of [5.0%] may be elected. If [5.0%] is not
elected, Aetna will use an assumed annual net return rate of
[3.5%].
The daily net return rate factor for an assumed annual net
return rate [3.5%] per year is [0.9999058].
The daily net return rate factor for an assumed annual net
return rate [5.0%] per year is [0.9998663].
If the portion of a Variable Annuity payment for any Fund is
not to decrease, the Annuity return factor under the
Separate Account for that Fund must be:
a) [4.75%] on an annual basis plus an annual return of up
to [0.25%] to offset the administrative charge set at
the time Annuity payments commence if an assumed
annual net return rate of [3.5%] is chosen; or
b) [6.25%] on an annual basis plus an annual return of up
to [0.25%] to offset the administrative charge set at
the time Annuity payments commence, if an assumed
annual net return rate of [5%] is chosen.
Annuity Option 2:
For amounts invested in the GA Account or one or more of the
Fund(s), the number of years must be at least [five (5)] and
not more than [thirty (30)] and the Annuity may be a Fixed
or Variable Annuity.
For amounts invested in the Fixed Plus Account, the number
of years must be at least [five (5)] and not more than
[thirty (30)] and the Annuity must be a Fixed Annuity.
12 12
Fixed Annuity
______________________________________________________________________________
Minimum Guaranteed Interest Rate:
[3.0%] (effective annual rate of return).
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DEFINITIONS
______________________________________________________________________________
1.01 Accumulation Period:
The period during which Net Contribution(s) are applied to
an Individual Account(s).
1.02 Adjusted Current Value:
The Current Value of an Individual Account (See 3.01) plus
or minus any aggregate GA Account Market Value Adjustment,
if applicable (See 3.08).
1.03 Annuitant:
A person on whose life an Annuity payment is based under
this Contract.
1.04 Annuity:
Payment of an income under the Annuity Provisions of Section
V:
a) For the life of one or two persons;
b) For a stated period; or
c) For some combination of (a) and (b).
Upon receipt of certification from the Participant of his or
her total disability, acceptance of retirement or
termination of employment, the Participant has the right to
elect an Annuity option. Aetna will pay Annuity benefits
directly to the Participant and as payor, Aetna will be
responsible for withholding any applicable federal or state
taxes and reporting such sums and filing any related forms
with the Internal Revenue Service and/or to any applicable
state taxing authorities. In the event of the death of the
Participant, Aetna will distribute the accumulated balance
of the deceased Participant's Individual Account(s), without
a Withdrawal Fee, as previously directed by the electing
Participant, or in the absence of such directions, as
directed by the Participant's Beneficiary.
1.05 Beneficiary:
The person named to receive any benefits which remain under
the Contract after the Participant's death. Participants
designate a Beneficiary for their Individual Account(s) (See
2.07).
1.06 Code:
The Internal Revenue Code of 1986, as amended.
1.07 Contract Holder:
The entity, named on the cover of this Contract, to which
the Contract is issued.
15 15
1.08 Contribution:
A payment received at Aetna's Home Office and allocated to
this Contract.
1.09 Current Value:
For an Individual Account, the Current Value is the total
of:
a) The amount, if any, in the Fixed Plus Account, with
interest earned to date;
b) The amount, if any, in the GA Account, with interest
earned to date; and
c) The value of all Fund record units (See 3.05), if any,
as of the most recent Valuation Period; plus
d) Any amount due to experience credits; less
e) Any Maintenance Fee(s) due.
1.10 Deposit Period:
A calendar month, a calendar quarter, or any other period of
time specified by Aetna during which Net Contribution(s),
Transfers and Reinvestments are accepted into the GA Account
for one or more Terms.
1.11 Fixed Plus Account:
An accumulation option with a guaranteed minimum interest
rate. Aetna may credit a higher rate which is not
guaranteed. No Withdrawal Fee applies. However, the portion
that may be withdrawn or transferred in a 12 month period is
restricted (See 3.09, 3.18 and 3.19).
1.12 Fixed Plus Account Guaranteed Interest Rate:
Aetna will add interest daily at an annual rate no less than
that shown on Contract Schedule I on any Net
Contribution(s) to the Fixed Plus Account. Aetna may add
interest daily at a higher rate determined by its Board of
Directors.
1.13 Fixed Annuity:
An Annuity with payments that do not vary in amount.
1.14 Fund(s):
The open-end registered management investment companies
(mutual funds) in which the Separate Account invests.
1.15 General Account:
The account holding the assets of Aetna, other than those
assets held in Aetna's Separate Account(s) and Nonunitized
Separate Account(s).
16 16
1.16 Guaranteed Accumulation Account (GA Account):
An accumulation option where Aetna guarantees stipulated
rate(s) of interest for a specified period of time. All
assets of Aetna, including amounts in the Nonunitized
Separate Account, are available to meet the guarantees for
the GA Account.
1.17 GA Account Guaranteed Interest Rate:
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 that Deposit Period and the ensuing Guaranteed
Term. The Guaranteed Interest Rates are annual effective
yields. That is, interest is credited daily at a rate that
will produce the Guaranteed Interest Rate over the period of
a year. No Guaranteed Interest Rate will ever be less than
the Minimum Guaranteed Interest Rate shown on Contract
Schedule I.
For Guaranteed Terms of one year or less, one Guaranteed
Interest Rate is credited for the full Guaranteed Term. For
longer Guaranteed Terms, an initial Guaranteed Interest Rate
is credited from the date of deposit to the end of a
specified period within the Guaranteed Term. There may be
different Guaranteed Interest Rate(s) declared for
subsequent specified time intervals throughout the
Guaranteed Term.
1.18 Guaranteed Term (Term):
The period of time for which GA Account Guaranteed Rates are
guaranteed on Net Contributions, Transfers and Reinvestments
made into a current Deposit Period for the GA Account. Such
period begins on the day following the close of the Deposit
Period and ends on the designated Maturity Date. Guaranteed
Terms are offered at Aetna's discretion for various lengths
of time ranging up to and including ten years and are
classified as follows:
Short Term: Three (3) or fewer years. Amounts allocated to a
short Term are held in the General Account.
Long Term: More than three (3) years, but not more than ten
(10). Amounts allocated to a long Term are held in the
Nonunitized Separate Account.
During a Deposit Period, Aetna may make available any number
of Guaranteed Terms. The Participant may allocate Net
Contributions and Transfers into any or all of the available
Guaranteed Terms.
1.19 Individual Account(s):
17 17
The account(s) established for each Participant to keep a
record of Current Value and transactions (See 3.01).
1.20 Loan Account:
For each loan taken by a Participant, the loan amount
transferred from the investment options is credited to the
Loan Account.
1.21 Loan Effective Date:
The date on which Aetna receives a loan agreement in good
order at its Home Office.
1.22 Loan Interest Rate:
The interest rate Aetna charges on a loan (see Contract
Schedule I).
1.23 Maintenance Fee:
The Maintenance Fee will be deducted during the Accumulation
Period from the sum of the Current Value of Participant's
Individual Account(s) and upon full surrender of the
Participant's Individual Account(s), unless otherwise
directed by the Contract Holder. The Maintenance Fee for
Individual Account(s) will be as established for the
Contract on Contract Schedule I. The Maintenance Fee is
deducted on a pro rata basis from all investment options
used under a Participant's Individual Account(s). However,
the Maintenance Fee does not apply to each separate
Individual Account established for purposes of a lump sum
Contribution.
1.24 Market Value Adjustment (MVA):
An adjustment to the amount prematurely withdrawn or
Transferred from a GA Account Guaranteed Term prior to the
end of that Guaranteed Term. The adjustment reflects the
change in the value of the investment due to changes in
interest rates since the date of deposit and is computed
using the formula given in 3.08. The adjustment is expressed
as a percentage of each dollar being withdrawn.
1.25 Matured Term Value:
The amount payable on a GA Account Guaranteed Term's
Maturity Date.
1.26 Matured Term Value Transfer:
During the calendar month following a GA Account Maturity
Date, the Participant may notify Aetna's Home Office in
writing to Transfer or withdraw all or part of the Matured
Term Value, plus interest at the new Guaranteed Interest
18 18
Rate accrued thereon, from the GA Account without an MVA.
This provision only applies to the first such written
request received from the Participant during this period for
any Matured Term Value.
1.27 Maturity Date:
The last day of a GA Account Guaranteed Term.
1.28 Monthly Average Corporates:
Moody's Corporate Bond Yield Average-Monthly Average
Corporates published by Xxxxx'x Investors Service, or its
successor, or a substantially similar average as may be
allowed by law or regulation.
1.29 Net Contribution:
A Contribution less any applicable premium taxes.
1.30 Nonunitized Separate Account:
An account established by Aetna under Section 38a-433 of the
Connecticut General Statutes that holds assets for GA
Account Terms greater than three years. The Contract Holder
and/or Participant does not participate in the investment
gain or loss from the assets held in the Nonunitized
Separate Account. Such gain or loss is borne entirely by
Aetna. Assets in this account may be charged with
liabilities arising out of any other Aetna business.
1.31 Participant:
A person who participates in the Plan of the Contract Holder
named on the cover of this Contract.
1.32 Plan:
The Plan, named on the cover of this Contract, established
under Code Section 403(b). The Plan is not a part of the
Contract and Aetna is not bound by its terms.
1.33 Reinvestment:
Aetna will mail a notice to the Participant at least 18
calendar days before a Guaranteed Term's Maturity Date. This
notice will contain the Terms available during the current
Deposit Periods with their Guaranteed Interest Rate(s) and
projected Matured Term Value. If no specific direction is
given by the Participant, 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
19 19
current Deposit Period for the next shortest Guaranteed Term
available in the same classification. If no shorter
Guaranteed Term is available, the next longer Guaranteed
Term will be used. Aetna will mail a confirmation statement
to the Participant, the next business day after the Maturity
Date. This notice will state the Guaranteed Term and
Guaranteed Interest Rate(s) which will apply to the
reinvested Matured Term Value.
1.34 Separate Account:
An account, established by Aetna under Section 38a-433 of
the Connecticut General Statutes, that buys and holds shares
of the Fund(s) available under this Contract. 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 of such amounts.
Amounts in the Separate Account are not generally guaranteed
and are held at market value. The assets of the Separate
Account, to the extent of reserves and other contract
liabilities of the Account, cannot be charged with other
Aetna liabilities arising out of any other Aetna business.
1.35 Transfer:
The movement of invested amounts among the available
Fund(s), the Fixed Plus Account and the GA Account during
the Accumulation Period.
1.36 Transferred Assets:
Transferred Assets are the value of prior contributions with
another carrier into an existing Plan which are deposited
into this Contract as of the date the amount is received in
good order by Aetna. Transferred Assets, less any premium
tax, will be allocated to Participant Individual Account(s).
1.37 Valuation Period:
The period of time commencing at the end of one valuation
date and ending at the end of the next valuation date. A
valuation date is each day on which the New York Stock
Exchange is expected to be open for business.
1.38 Variable Annuity:
An Annuity with payments that vary with the net investment
results of the Funds available during the Annuity period.
1.39 Withdrawal Fee:
If all or any portion of an Individual Account(s) Value is
withdrawn during the Accumulation Period, a percentage of
20 20
the amount withdrawn may be deducted so that the Aetna may
recover sales and administrative related expenses.
II. GENERAL PROVISIONS
______________________________________________________________________________
2.01 Change of Contract:
Only an authorized officer of Aetna may change the terms of
this Contract. Aetna reserves the right to modify this
Contract to meet the requirements of applicable state and
federal laws or regulations. Aetna will notify the Contract
Holder and Participant in writing of any changes.
Aetna may change the tables for determining the amount of
Annuity benefit payments without Contract Holder or
Participant consent. Such a change will not become effective
earlier than twelve months after (1) the effective date of
the Contract, or (2) the effective date of a previous
change. Aetna will notify the Contract Holder and
Participant in writing at least thirty (30) days before the
effective date of the change. The change will apply to all
current and future Individual Accounts.
2.02 Change of Fund:
Aetna, or the Separate Account may:
a) Change the Fund(s) in which the Separate Account
invests; and/or
b) Replace the shares of any Fund(s) held in the Separate
Account with shares of any other Fund(s).
Replacements must be:
a) Approved by a majority vote in the Separate Account
with respect to the Fund(s) whose shares are to be
replaced; or
b) Deemed necessary by Aetna under the Investment Company
Act of 1940; or
c) Deemed necessary by Aetna to accomplish the purpose of
the Separate Account.
Aetna will notify the Contract Holder and Participant of any
such change.
2.03 Nonparticipating Contract:
The Contract Holder, Participants, or Beneficiaries will not
have a right to share in the earnings of Aetna.
2.04 Payments:
a) Aetna will make distributions as directed by the
Participant. Aetna will determine the amount of
payments based on the Individual Account(s) Current
Value as of the date on which a request is received in
good order at Aetna's Home Office subject to the
restrictions in Section 3.15. Payments will be made
21 21
within seven (7) calendar days of receipt of a written
request in good order at Aetna's Home Office.
For Plans subject to ERISA, see Section VI.
b) Aetna may defer payments:
1) For a period of up to six (6) months
(unless not allowed by state law); and
2) As allowed by federal law.
2.05 State Laws:
This Contract complies with the laws of the state in which
it is delivered. Any cash, death or Annuity payments are
equal to or greater than the minimum required 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
only to satisfy the "purchase" requirements of Section
403(b)(1) of the Internal Revenue Code of 1986, as amended.
The Contract Holder has no right, title or interest in the
amounts held under the Contract either by reason of
remitting Contributions or applying for this Contract.
Each Participant shall own all amounts held in his or her
Individual Account(s). The Participant may make any choices
allowed under this Contract with respect to Individual
Accounts. Any choices made under this Contract must be in
writing. Until receipt of any such written choice at its
Home Office, Aetna may rely on any prior choices made.
Neither the Contract nor any Individual Account is subject
to the claims of Participants' creditors, except to the
extent permitted by law.
Distributions will be made from the Individual Account(s)
upon the Participant's written direction to Aetna, subject
to the restrictions in Section 3.15 and Section VI. The
Participant may direct Aetna to make an in-service transfer
pursuant to IRS Revenue Ruling 90-24. Checks for in-service
transfers will be made payable only to the acquiring
investment provider.
a) Nontransferable and Nonassignable:
This Contract and any Individual Account(s) are
nontransferable and nonassignable, except to Aetna in
the event of a loan or pursuant to a "qualified
domestic relations order" as set forth under the
Retirement Equity Act of 1984 (REA). In the event a
loan is requested, the Current Value of the Individual
Account(s) necessary to cover the loan amount plus
interest must be assigned to Aetna.
b) ERISA/REA Requirements:
22 22
The Contract Holder shall notify Aetna in writing of
the applicability of ERISA, as amended by subsequent
law including REA, to the Plan. Aetna shall rely on
the Contract Holder's determination and representation
of applicability. For Plans subject to ERISA, see
Section VI.
c) Participant Rights:
The Participant has a nonforfeitable right to the
value of his or her Individual Account(s) pursuant to
Code Section 403(b).
2.07 Designation of Beneficiary:
Each Participant shall name a Beneficiary.
An unmarried Participant may designate a Beneficiary of his
or her entire Individual Account(s) Current Value if it is
accompanied by a consent form which certifies that he or she
is unmarried.
In accordance with Section 6.01(b), for a married
Participant, the spouse must be the Beneficiary of 50% of
the Individual Account(s) Current Value. Provided, however,
if the Participant has attained age 35, he or she may
designate an alternate Beneficiary for such amount if the
appropriate waiver/spousal consent form, completed in a
manner consistent with Section 6.02, is submitted to Aetna.
For the balance of the Individual Account(s) Current Value,
a married Participant may name any Beneficiary without
obtaining spousal consent.
Upon the death of a married Participant, Aetna will
disregard the designated Beneficiary and treat the current
spouse as the Beneficiary, subject to the terms of any
applicable qualified domestic relations order, if the
current spouse did not consent to the designation of an
alternate Beneficiary.
2.08 Misstatements and Adjustments:
If Aetna finds the age of any payee to be misstated, the
correct facts will be used to adjust payments.
2.09 Incontestability:
Aetna cannot cancel this Contract because of any error of
fact on the application.
2.10 Grace Period:
This Contract will remain in effect even if Contributions
are not continued except as provided in Section 3.21.
2.11 Individual Certificates:
23 23
Aetna shall issue certificates to the Contract Holder or
Participants as required by the state in which this Contract
is delivered. The certificate will summarize certain
provisions of the Contract. Certificates are for information
only and are not a part of the Contract.
2.12 Aggregation of Contracts:
The charges to the Separate Account and Maintenance Fee
described in Contract Schedule I vary by the Current Value
of Individual Account(s). In determining such Current Value,
Individual Account(s) of the following contracts will be
aggregated:
a) This Contract, and
b) Aetna contracts of the same class as this Contract
covering employees of the employer maintaining the
Plan.
For purposes of determining the daily asset charge and
Maintenance Fee under this Contract, where such other
contract comes into existence after the Effective Date, the
aggregation will commence no later than the first day of
the next succeeding anniversary date. Where such other
contract is in existence prior to, or on the Effective Date,
the aggregation will commence on the Effective Date.
III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS
______________________________________________________________________________
3.01 Individual Account(s):
Aetna will maintain Individual Account(s) for Participants.
The Individual Account(s) will be credited with employee
Contributions. Ongoing employer Contributions will not be
accepted.
Aetna reserves the right not to accept any Contribution.
3.02 Net Contribution(s):
The Net Contribution equals the actual Contribution less any
applicable premium tax. Generally, Aetna will deduct the
premium tax when Annuity benefits are purchased (See Section
V). If Aetna determines that under applicable state law, it
must pay a premium tax when the Contribution is received, or
at any other time, it may deduct the tax at that time. The
Net Contribution(s) may be allocated among the following
investment options:
a) The Fixed Plus Account; and
b) The current Deposit Period(s) for Guaranteed Terms
under the GA Account; and
c) The Fund(s) in which the Separate Account invests.
The Participant must tell Aetna the percentage of all Net
Contributions to allocate to one or more of the investment
options. The Participant may change the allocation of future
Net Contributions at any time, without charge. Aetna
24 24
reserves the right to require a minimum Contribution amount
per Individual Account.
3.03 Limitation on Contributions:
The Contribution(s) made to a Participant's Individual
Account(s) in any year cannot exceed the lesser of the
amount determined under the exclusion allowance of Code
Section 403(b)(2) or the annual additions limitation of Code
Section 415(c)(1).
In addition, in no event may the Contribution(s)
attributable to elective deferrals as defined in Code
Section 402(g) exceed $9,500 (or, such larger amount as
adjusted by the Secretary of the Treasury) during any
calendar year, unless the alternate limitation of Code
Section 402(g)(8) applies.
3.04 Experience Credits:
Aetna may apply experience credits under this Contract. Any
such credits will be computed as decided by Aetna.
3.05 Fund Record Units:
The portion of the Net Contribution(s) applied to each Fund
under the Separate Account will determine the number of Fund
record units credited to the Individual Account(s) for that
Fund. This number is equal to the Net Contribution applied
to the Fund divided by the Fund record unit value (See 3.06)
for the Valuation Period in which the Contribution is
received in good order.
3.06 Fund Record Unit Value:
A Fund record unit value is computed by multiplying the net
return factor (See 3.07) for the current Valuation Period by
the Fund record unit value for the previous period. The
dollar value of a Fund record unit, Separate Account assets,
and Variable Annuity payments may go up or down due to
investment gain or loss.
3.07 Fund Net Return Factors:
The net return factor(s) are used to compute all Separate
Account record units for any Fund. The net return factor for
each Fund is equal to 1.0000000 plus the net return rate.
The net return rate is equal to:
a) The value of the shares of the Fund held by the
Separate Account at the end of a Valuation Period;
minus
25 25
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);
d) Divided by the total value of the Fund record units
and Fund Annuity units of the Separate Account at the
start of the Valuation Period;
e) Minus a Separate Account charge at an annual effective
rate as shown on Contract Schedule I for Annuity
mortality and expense risks and profit and a daily
administrative charge which will not exceed the amount
shown on Contract Schedule I on an annual basis. The
administrative charge may be changed annually except
for amounts which have been used to purchase an
Annuity.
A net return rate may be more or less than 0%.
The value of a share of the Fund is equal to the net assets
of the Fund divided by the number of shares outstanding.
3.08 Market Value Adjustment (MVA):
a) An MVA will be applied to any withdrawal from a GA
Account Term before the Maturity Date due to:
1) A Transfer;
2) A full or partial withdrawal;
3) A payment of a premium for Annuity Option 2.
The amount of the withdrawal will be adjusted to a market
value amount as described in b):
b) 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, (computed from Wednesday
of the week of withdrawal) in the Term.
c) The Deposit Period Yield and Current Yield will be
determined as follows:
26 26
1) 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 Term.
2) The Deposit Period Yield is the average of those
yields for the Deposit Period. If withdrawal is
made prior to the close of the Deposit Period,
it is the average of those yields on each week
preceding withdrawal.
3) 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.
4) In the event that no U.S. Treasury Notes which
mature in the last three months of the Term
exist, Aetna reserves the right to use the U.S.
Treasury Notes that mature in a following
quarter.
d) Full and partial withdrawals as well as Transfers made
1) within six (6) months after the Participant's
date of death under the Amount Payable at Death
provision (See 3.22) will be the greater of:
(a) The aggregate MVA amount which is the sum
of all market value adjusted amounts
calculated due to a withdrawal of amounts
(for withdrawal or Transfer) from Terms
prior to the end of those Terms. The
aggregate MVA may be either positive or
negative; or
(b) The applicable portion of the Current
Value in the GA Account.
2) After the six month period following death, the
withdrawal or Transfer will be the aggregate MVA
amount (i.e., including all MVAs).
e) The greater of the aggregate MVA amount or the
applicable portion of the Current Value in the GA
Account is applied to amounts withdrawn from the GA
Account for payment of a premium under Annuity options
3 or 4.
3.09 Transfer(s):
Before an Annuity option is elected, all or any portion of
the Adjusted Current Value of the Individual Account(s) may
be transferred from any Fund, the Fixed Plus Account or the
GA Account:
a) To any other allowable Fund; or
b) To the Fixed Plus Account; or
27 27
c) To any Guaranteed Term of the GA Account with a
different classification available in the current
Deposit Period.
Transfer requests can be submitted as a percentage or as a
dollar amount. Aetna may establish a minimum transfer
amount. Within a Guaranteed Term classification, the amount
transferred will be withdrawn from the oldest Deposit
Period, then from the next oldest, and so on until the
amount requested is satisfied.
Amounts applied to Guaranteed Terms of the GA Account may
not be transferred to the Funds, the Fixed Plus Account or
to another Guaranteed Term during the Deposit Period or 90
days after the close of the Deposit Period except for
Matured Term Value(s) during the calendar month following
the Term's Maturity Date.
Transfers from Guaranteed Terms of the GA Account are
subject to the MVA provisions of 3.08.
During each rolling twelve (12) month period, up to 20% of
the Current Value held in the Fixed Plus Account may be
transferred to one or more of the Fund(s), and/or the GA
Account's then-current Deposit Period. The 20% limit is
reduced by any partial withdrawals, loans or amounts used to
purchase an Annuity during the twelve (12) month period.
Aetna reserves the right to include amounts paid under ECO
and SWO provisions for purposes of applying this 20% limit.
This limit is waived when the balance in the Fixed Plus
Account is $1,000 or less on the date the Transfer request
is received in good order at Aetna's Home Office.
The Participant may make an unlimited number of Transfers
during the Accumulation Period.
3.10 Notice to the Participant:
Each year, Aetna will notify the Participant of:
a) The value of any amounts held in:
1) The Fixed Plus Account,
2) The GA Account,
3) The Fund(s) for the Separate Account;
b) The number of any Fund record units;
c) The Fund record unit value(s);
d) The Loan Account balance; and
e) The amount available for withdrawal.
This information will be as of a date no more than sixty
(60) days before the date of the notice.
3.11 Loans:
28 28
During the Accumulation Period, loans are granted (1) as
permitted under applicable law; (2) subject to the terms and
conditions of the loan agreement; and, (3) in accordance
with the following provisions.
a) Amount available for loan: The amount available for
loan is limited to the Participant's Individual
Account(s) Current Value. Amounts available from some
investment options may be subject to limitations
specified in the loan agreement. To obtain the loan
amount requested, these limitations may require the
Participant to transfer funds. A Market Value
Adjustment may apply to amounts transferred.
The minimum loan amount is $1,000. The maximum loan amount
is the lesser of:
1) Fifty percent (50%) of the Individual Account(s)
Current Value, including any Loan Account,
reduced by the amount of any outstanding loan
balance on the Loan Effective Date; or
2) Fifty thousand dollars ($50,000) reduced by the
highest outstanding loan balance for the
preceding 12 months.
The amount of all outstanding loans cannot exceed
$50,000.
b) Loan Interest Rate: A Loan Interest Rate is set on the
first business day of each month. For each loan, the
initial Loan Interest Rate is the rate for the
calendar month in which the Loan Effective Date
occurs. The initial Loan Interest Rate is effective
for a period of not less than three months and not
more than one year. The period is specified in the
loan agreement. For each period, the Loan Interest
Rate is adjusted if the new rate is at least 0.5%
higher or lower than the previous rate. The
Participant will receive reasonable notification of
any change to the Loan Interest Rate. As applicable,
the Loan Interest Rate is:
1) Plans subject to ERISA: equal to the Monthly
Average Corporates for the calendar month
beginning two months before the Loan Interest
Rate is effective.
2) Plans not subject to ERISA: not greater than 8%
on an annual basis.
c) Earned interest: The Loan Account is credited with
interest at a rate which is not less than the Loan
Interest Rate, less 3%, on an annual basis. Interest
credited to the Loan Account will never be less than
3%.
29 29
d) Loan repayment: Repayment is as set forth in the loan
agreement, or a Participant may repay a loan in full
at any time.
e) Surrenders while a loan is outstanding: If the
Participant requests a surrender from the Individual
Account(s) Current Value while a loan is outstanding,
one of the following occurs:
1) If the amount of the Individual Account(s)
Current Value available for distribution is
sufficient to repay (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, and (c) any Withdrawal
Fee due on the outstanding loan balance, that
amount, minus the Loan Account balance, is
deducted from the Individual Account(s) Current
Value and the loan is cancelled.
2) If the amount of the Individual Account(s)
Current Value available for distribution is not
sufficient to repay the (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, and (c) any Withdrawal
Fee due on the outstanding loan balance, the
surrender amount cannot exceed the Individual
Account(s) Current Value, including the Loan
Account, reduced by 125% of the outstanding loan
balance.
f) Electing an Annuity option while a loan is
outstanding: Before all or any portion of the
Individual Account(s) Current Value is applied to an
Annuity option, the Participant may repay any
outstanding loan balance, or the Individual Account(s)
Current Value is adjusted as described in (e).
g) Death of the Participant while a loan is outstanding:
If a death benefit claim is submitted for an
Individual Account(s) with an outstanding loan, the
Individual Account(s) Current Value, including the
amount of the Loan Account, is reduced by the amount
of the outstanding loan balance before the death
benefit amount is determined.
h) Loan default: If Aetna does not receive a loan
payment when due, the outstanding loan balance becomes
due. If applicable, a 5% default charge may apply to
the portion in excess of 20%, if any, of the amount
transferred from the Fixed Plus Account. The
defaulted loan is treated as follows:
1) If the amount of the Individual Account(s)
Current Value available for distribution is
sufficient to repay (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, and (c) any Withdrawal
30 30
Fee due on the outstanding loan balance, that
amount, minus the Loan Account balance, is
deducted from the Individual Account(s) Current
Value and the loan is cancelled.
2) If the amount of the Individual Account(s)
Current Value available for distribution is not
sufficient to repay (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, and (c) any Withdrawal
Fee due on the outstanding loan balance, until
such time that the amount due can be
distributed, the Loan Account continues to earn
interest, and interest is charged on the
outstanding loan balance. At that time, the
amount described in (h)(1) is surrendered from
the Individual Account(s) Current Value and the
loan is cancelled.
i) For Plans subject to ERISA, see Section VI.
3.12 Xxxxxx and Timing of Distributions:
a) A distribution to a Participant may be made in a lump
sum, as one of the distribution options described in
Section IV, or as one of the Annuity options in
Section V.
b) Generally, the distribution of benefits accrued after
December 31, 1986, must begin by April 1 of the
calendar year following the calendar year in which the
Participant attains age 70 1/2. However, for a
Participant who attained age 70 1/2 before January 1,
1988, the distribution of such benefits must be made
or must begin not later than the April 1 of the
calendar year following the calendar year in which the
Participant retires.
The above does not apply if the Contract Holder is a
governmental entity or a church. For Participants of
such an employer, the distribution of benefits accrued
after December 31, 1986, must be made or must begin
not later than April 1 of the calender year following
the calendar year in which the Participant attains age
70 1/2 or retires, whichever occurs later.
c) The required distribution must be made over the life
of the Participant (or the joint lives of the
Participant and the Beneficiary) or over a period not
exceeding the life expectancy of the Participant (or
the joint life expectancies of the Participant and the
Beneficiary).
d) If the Participant does not request commencement of
benefits as described above, Aetna will not be
responsible for compliance with the Code Section
401(a)(9) minimum distribution requirements or for any
adverse tax or other consequences that may result.
e) For Plans subject to ERISA, see Section VI.
31 31
3.13 Withdrawal:
a) The Participant may withdraw any portion or all of an
Individual Account(s) Current Value by submitting a
written request to Aetna. For Plans subject to ERISA,
see Section VI.
b) Except as described in Section 3.19, unless the
Participant specifies otherwise, partial withdrawals
are satisfied by withdrawing amounts on a pro rata
basis from each of the investment options in which the
Individual Account(s) is invested.
c) When amounts are withdrawn from the GA Account,
amounts in short Term and long Term classifications
are treated as separate investment options and amounts
are taken on a pro rata basis. Within a
classification, amounts will be withdrawn starting
with the term still in effect with the oldest Deposit
Period.
3.14 Withdrawal Value:
After deduction of the Maintenance Fee (if any), the amount
payable by Aetna upon the withdrawal of any portion of an
Individual Account(s) from the Fund(s) or the GA Account
shall be reduced by a Withdrawal Fee, if applicable. The
Withdrawal Fee will be in accordance with the Withdrawal Fee
table in Contract Schedule I.
No Withdrawal Fee is deducted from any portion of the
Current Value which is paid from the Fixed Plus Account.
For a partial or full withdrawal from any Individual
Account, Aetna must receive written direction from the
Participant on a form acceptable to Aetna. Aetna may defer
payment of the withdrawal value until appropriate
certification is received.
3.15 Withdrawal Restrictions:
Limitations apply to full and partial withdrawals of the
"restricted amount" from this Contract, as required by Code
Section 403(b)(11). The restricted amount is the sum of:
a) Net Contributions attributable to a Participant's
salary reduction contributions made on and after
January 1, 1989; plus
b) The net increase, if any, in the Current Value of the
Individual Account after December 31, 1988
attributable to investment gains and losses and
credited interest.
The restricted amount may be fully or partially withdrawn
only if one or more of the following conditions are met.
a) The Participant has reached age 59 1/2;
b) The Participant has separated from service;
c) The Participant has died;
d) The Participant has become disabled, within the
meaning of Code Section 72(m)(7); or
e) The withdrawal is otherwise allowed by federal law,
regulations or rulings.
32 32
A full or partial withdrawal is also allowed if the
Participant incurs a "hardship" as that term is defined in
the Code or regulations under Code Section 403(b). However,
the amount available for hardship is limited to the lesser
of the amount necessary to satisfy the need or the Net
Contributions attributable to the Participant's salary
reduction contributions made on or after January 1, 1989.
The Participant must certify that one of these conditions
has been met before a withdrawal request will be considered
to be in good order. The Participant must notify Aetna in
writing when a lump sum payment is to be made or Annuity
payments are to commence.
If, pursuant to Revenue Ruling 90-24, Aetna agrees to accept
under this Contract amounts transferred from a Code Section
403(b)(7) custodial account, such amounts will be subject to
the withdrawal restrictions set forth in Code Section
403(b)(7)(A)(ii).
3.16 Withdrawals from the GA Account:
Full or partial withdrawals may be requested at any time
from the GA Account. However, amounts withdrawn prior to the
Maturity Date of a Term may be subject to a Market Value
Adjustment (See 3.08).
Full and partial withdrawals are satisfied by withdrawing
amounts from each of the investment options in which the
Individual Account(s) is invested (the Funds, the Fixed Plus
Account, the GA Account short Term classification and the GA
Account long Term classification) on a pro rata basis.
However, the Participant may specify a particular order in
which investment options will be liquidated in order to
satisfy a partial surrender request.
3.17 Withdrawal Fee Applicable to Funds and GA Account:
A Withdrawal Fee may apply to withdrawals from the GA
Account and/or Funds. The fee will vary according to the
length of time elapsed from the effective date of an
Individual Account to the date when the withdrawal request
is received. For each withdrawal, the Withdrawal Fee will be
determined as shown on Contract Schedule I.
During each rolling 12-month period, up to 20% of the
Current Value in the Fixed Plus Account may be withdrawn as
a partial surrender. This 20% limit is reduced by any
amount(s) transferred, taken as a loan or used to purchase
an Annuity during the 12 month period. The 20% limit
applicable to partial surrenders from the Fixed Plus Account
will be waived when the partial surrender is due to one of
the conditions set forth in Contract Schedule I. The waiver
will apply provided the partial surrender is taken pro-rata
33 33
from the Fixed Plus Account, the GA Account, and the
Fund(s). Aetna reserves the right to include amounts paid
under the ECO and SWO provisions for purposes of applying
the 20% limit. However, the SWO provision is not available
if the Participant requested a Fixed Plus Account Transfer
or surrender within the current 12 month period.
3.18 Payment of Fixed Plus Account Full Withdrawal:
No Withdrawal Fee is deducted from any portion of the
Current Value which is paid from the Fixed Plus Account.
When Aetna receives a full withdrawal request, no additional
partial withdrawals or Transfers from the Fixed Plus Account
are permitted during the payout period. If a full withdrawal
is requested, Aetna will pay any Current Value, including
accrued interest, from the Fixed Plus Account in five
payments as follows:
a) One-fifth of the Current Value on the day the request is
received in good order at Aetna's Home Office, reduced by
any amount from the Fixed Plus Account that was
transferred, withdrawn or used for a loan or to purchase
Annuity benefits during the prior twelve months;
b) One-fourth of the then remaining Current Value twelve
months later;
c) One-third of the then remaining Current Value twelve
months later;
d) One-half of the then remaining Current Value twelve
months later; and
e) The balance of the then Current Value twelve months
later.
The Fixed Plus Account full withdrawal payment provision may
also be waived under certain conditions (See Contract
Schedule I).
Any full withdrawal from the Fixed Plus Account may be
cancelled at any time before the end of the payment period.
For Plans subject to ERISA, see Section VI.
3.19 Reinstatement:
All or a portion of the proceeds of a full withdrawal of
this Contract may be reinvested within 30 days after the
withdrawal if allowed by law. Any Maintenance Fee and
Withdrawal Fee charged at the time of the withdrawal on the
amount being reinvested will be included in the
reinstatement. Any Market Value Adjustment deducted from GA
Account withdrawals will not be included in the
reinstatement. Amounts will be reinstated among the Fixed
Plus Account, the GA Account, and/or the Fund(s) for the
Separate Account in the same proportion as they were at the
time of withdrawal. Any amounts reinstated to the GA Account
will be credited to Terms available during the then-current
34 34
Deposit Period. The number of record units reinstated will
be based on the record unit value(s) next computed after
receipt in good order at Aetna's Home Office of the
reinstatement request and the amount to be reinvested.
Any Maintenance Fee which falls due after the withdrawal and
before the reinstatement will be deducted from the amount
reinstated.
Reinstatement is permitted only once for an Individual
Account.
3.20 Payment of Minimum Current Value:
If the sum of the Individual Account(s) Current Value(s) is
less than $3,500, and no Contributions have been received
for three (3) years, Aetna may close the account(s) and pay
the Current Value(s) to the Participant in one lump sum.
3.21 Amount Payable at Death (Before Annuity Payments Start):
Aetna will pay the Individual Account(s) Current Value to
the Beneficiary when:
a) The Participant dies before Annuity payments start; and
b) A certified copy of the death certificate is received.
Amounts in the GA Account will be payable as described in
Section 3.08(d).
IV. NON-ANNUITY DISTRIBUTION OPTIONS
______________________________________________________________________________
4.01 Distribution Options:
Subject to Section VI, the Participant or a surviving spouse
may elect one of the two following distribution options. A
surviving spouse is eligible to elect one of the options
provided the spouse is the designated Beneficiary and the
Participant had died before electing an Annuity option and
before the date for required minimum distributions.
4.02 Estate Conservation Option:
a) With the Estate Conservation Option (ECO) a portion of
the Individual Account(s) Current Value is automatically
surrendered and distributed each year without incurring a
Withdrawal Fee. Each payment will be withdrawn from the
Individual Account(s) in the same proportion as assets
are held in the Funds, the GA Account, and the Fixed Plus
Account on the date the payment is made.
b) Payments under XXX will comply with the incidental death
benefit test set forth in Code Section 401(a)(9).
c) Distribution Amount: Each year that ECO is in effect,
Aetna will calculate and distribute an amount equal to
the minimum distribution required under the Code. The
annual distribution will be determined by dividing the
Individual Account(s) Current Value as of December 31 of
the year prior to the payment year, by a single or joint
life expectancy factor. If joint life expectancy is
elected, the Beneficiary under ECO must be the same as
35 35
the Beneficiary of any death benefits under the
Individual Account(s).
An exception will be made if Aetna maintains a separate
record of a Participant's Individual Account(s) value as
of December 31, 1986. In this instance, payments made in
or after the year in which the Participant attains age 70
1/2, but before the year in which the Participant attains
age 75, will be calculated only on amounts contributed
after December 31, 1986 and any earnings after that date.
If age 70 1/2 was attained prior to 1988, the Participant
must be retired in order to qualify for this exception.
The method under this rule is elected by the Participant
and will not apply if the Participant has received any
distribution from his or her Individual Account(s), other
than distribution amounts required under Code minimum
distribution rules.
Aetna will maintain separate records if the Participant
has not requested any withdrawals from the Participant's
Individual Account(s) since December 31, 1986.
d) Life Expectancy Factor: For the Participant, the life
expectancy factor is either single life or joint life
expectancy as elected by the Participant, based on tables
in Code Section 401(a)(9) or related regulations. For a
spouse Beneficiary, only a single life expectancy is
available. Life expectancy factors will be recalculated
each year, unless prohibited by the Code or regulations.
The joint life expectancy factor will be based on the
joint life expectancy of the Participant and his or her
Beneficiary provided such individual is the Beneficiary
of any death benefits under the Contract while ECO is in
effect. Any change in the Beneficiary designation under
this Contract by the Participant, must be immediately
communicated to Aetna so that subsequent distributions
can be calculated as required by IRS regulations.
If joint life expectancy is elected and the Participant
or spouse dies, payments will be based on the survivor's
life expectancy. If the Beneficiary is not the spouse and
the Beneficiary dies first, the joint life expectancy
continues to be used to determine payments.
If a single life expectancy is elected, at the death of
the Participant (or the spouse who is the designated
Beneficiary electing ECO after the Participant's death),
the entire value must be distributed no later than the
December 31 of the year following the year of the
Participant's (or spouse's) death. If a joint life
expectancy is elected, and both the Participant and
spouse have died, any remaining Current Value must be
distributed no later than the December 31 of the year
36 36
following the year of the second death. If a joint life
expectancy is elected and both the Participant and
non-spouse Beneficiary have died, any remaining Current
Value will be distributed to a successor Beneficiary, if
one has been named, then to the estate of the last to
die.
These calculations may be changed as necessary to comply
with Code minimum distribution rules. Any mode of payment
elected upon the Participant's death must provide
payments to be made at least as rapidly as those made
prior to the Participant's death.
e) Minimum Current Value: At its discretion, Aetna may
require a minimum initial Current Value for election of
this option. If after election of this option the Current
Value is insufficient to make a scheduled ECO payment,
Aetna will distribute the entire balance of the
Individual Account(s).
f) Distribution Date: The Participant shall specify an
annual distribution date. The earliest date is the first
day of the calendar year in which he or she attains age
70 1/2. For a spouse Beneficiary electing ECO after the
Participant's death, the earliest date is the date of the
Participant's death. The first distribution date may be
the 15th of any month, or such other date as Aetna may
designate or allow. Subsequent distributions will be made
on the anniversary of that date. At its option, Aetna may
allow payments to be made more frequently than annually.
g) Election and Revocation: The Participant may elect ECO by
submitting a completed and signed election form to
Aetna's Home Office. Once ECO is elected, the Participant
may revoke it by submitting a written request to Aetna at
its Home Office. Any revocation will apply only to
amounts not yet paid. ECO may be elected only once per
Individual Account. For Plans subject to ERISA, see
Section VI.
4.03 Systematic Withdrawal Option:
a) With the Systematic Withdrawal Option (SWO) a portion of
the Individual Account(s) Current Value is automatically
distributed each year without incurring a Withdrawal Fee.
A SWO payment will be calculated on the Individual
Account(s) Current Value. Each payment will be withdrawn
from the Individual Account(s) in the same proportion as
assets are held in the Funds, the GA Account, and the
Fixed Plus Account on the date the payment is made. SWO
payments may not be elected if a loan is outstanding
under an Individual Account.
b) Payments under SWO will comply with the incidental death
benefit test set forth in Code Section 401(a)(9).
37 37
c) Distribution Amounts: The Participant may elect one of
the three payment methods described below. These
calculations may be changed as necessary to comply with
the Code minimum distribution rules. If joint life
expectancy is elected, the Beneficiary under SWO must be
the same as the Beneficiary of any death benefits.
1) Specified Payment: Payments of a designated annual
dollar amount. The annual amount may not be greater
than the percentage of the Current Value at time of
election as shown on Contract Schedule I. This amount
will remain constant unless a higher amount is
required under Code minimum distribution rules. Each
year that the specified payment is in effect, Aetna
will calculate the minimum required distribution by
dividing the Individual Account(s) Current Value as of
December 31 of the year prior to the payment year by a
life expectancy factor, and distribute this amount if
it is larger than the specified payment.
2) Specified Period: Payments are made over a period of
time. The number of years selected may not be less
than the number of years shown on Contract Schedule I,
unless otherwise required by Code minimum distribution
rules. The maximum specified period will be limited by
the life expectancy factor. The amount paid each year
is calculated by dividing the Individual Account(s)
Current Value as of December 31 of the prior year by
the number of payment years remaining.
3) Specified Percentage: Payments made as a specified
percentage of the Individual Account. The specified
percentage chosen cannot be greater than as shown on
Contract Schedule I. The Participant may change the
specified percentage elected every six months. Each
annual distribution is determined by multiplying the
Individual Account Current Value by the percentage
chosen. The value to be used in this calculation is
the value on the December 31st prior to the year for
which the payment is being made. For payments made
more often than annually, the annual payment result
(calculated above) is divided by the number of
payments due each year. Payments will be made each
year until the year the Participant attains age 70
1/2.
d) Life Expectancy Factor: For the Participant, the life
expectancy factor for the initial distribution year is
either single life or joint life expectancy as elected by
38 38
the Participant, based on tables in Section 401(a)(9) of
the Code or related regulations. For a spouse
Beneficiary, only a single life expectancy is available.
With each subsequent year, the life expectancy factor
will be the life expectancy factor for the initial
distribution year, reduced by one. These calculations may
be changed as necessary to comply with the Code minimum
distribution rules. If the joint life expectancy is
selected and the Participant or the Beneficiary dies on
or after the required beginning date for minimum
distributions to the Participant, the joint life
expectancy factor will continue to be reduced by one for
each distribution year. Payments will continue unless the
survivor elects an alternate payment mode. Any payment
mode elected by the Beneficiary must provide payments to
be made at least as rapidly as those made prior to the
Participant's death.
If the Participant dies before the required beginning
date for minimum distributions, SWO payments will cease
and the Beneficiary may claim the death benefit in
accordance with the terms of this Contract. If the
Beneficiary is not the Participant's spouse, the entire
death benefit must be either applied to an Annuity option
within one (1) year of the Participant's death, or be
paid within five (5) years of the Participant's death. If
the Beneficiary is the Participant's spouse, the
distribution is not required to begin earlier than when
the Participant would have attained age 70 1/2.
If joint life expectancy is elected and the Beneficiary
dies before the required beginning date for minimum
distributions to the Participant, payments to the
Participant will continue to be based on joint life
expectancy reduced by one for each distribution year.
e) Minimum Current Value: At its discretion, Aetna may
require a minimum initial Current Value for election of
this option. If after election of this option, the
Current Value is insufficient to make a scheduled SWO
payment, Aetna will distribute the entire balance of the
Individual Account.
f) Distribution Date: The Participant or spouse Beneficiary,
shall specify the initial distribution date. The earliest
date is the first day of the calendar year in which the
Participant attains age 59 1/2, or age 55, if separated
from service with the Contract Holder at or after age 55.
SWO payments will be made monthly, quarterly,
semi-annually or annually on the 15th of any month, or
such other date as Aetna may designate or allow. If
payments are made more frequently than annually, the
annual amount payable each year is divided by the number
39 39
of payments due per year. At its discretion Aetna may
require a minimum initial payment amount.
g) Election and Revocation: The Participant may elect SWO by
submitting a completed and signed election form to
Aetna's Home Office. Once SWO is elected, the Participant
may revoke it by submitting a written request to Aetna's
Home Office. Any revocation will apply only to amounts
not yet paid. Generally, SWO may be elected only once,
however, if XXX is elected and then revoked before the
date distributions were required to begin under Code
Section 401(a)(9), SWO may be elected on behalf of a
spouse Beneficiary after the death of the Participant.
For Plans subject to ERISA, see Section VI.
40 40
V. ANNUITY PROVISIONS
______________________________________________________________________________
5.01 Choices:
a) The Participant may elect an Annuity option by telling
Aetna to pay all or any portion of the Individual
Account(s) Current Value (minus any applicable premium
tax if not previously deducted) as a premium for an
Annuity under option 2, 3, or 4 (See 5.08). Any election
of an Annuity option must comply with the minimum
distribution requirements of Code Section 401(a)(9),
including the incidental death benefit rule, and the
regulations thereunder. This restriction does not apply
if option 4 is chosen and the second Annuitant is the
spouse of the Participant. Payments may be made only to
the Participant, or if the Participant has died, to the
Beneficiary. For Plans subject to ERISA, see Section VI.
b) Generally, the first Annuity payment must be made by
April 1 of the calendar year following the year in which
the Participant turns age 70 1/2 or such later date as
may be allowed under federal law or regulations (see
3.12). For distributions taken in a lump sum, see
Withdrawal Value (3.14).
When an Annuity option is chosen the Participant must
designate whether the Annuity will be fixed or variable
and whether the underlying investment will be:
1) The General Account;
2) One or more of the available Fund(s); or
3) A combination of (1) and (2).
If a Fixed Annuity is chosen, the Annuity purchase rate
for the option chosen reflects at least the minimum
guaranteed interest rate (See Contract Schedule II), but
may reflect a higher interest rate.
If a Variable Annuity is chosen, the initial Annuity
payment for the option chosen reflects the assumed annual
net return rate elected (See Contract Schedule II).
c) Payments will be made on a monthly basis unless the
Participant requests otherwise.
d) Once elected, an Annuity option may not be revoked,
except for option 2 when elected on a variable basis.
5.02 Terms of Annuity Options:
a) No choice of any Annuity option may be made if the first
payment would be less than $20 or if the total payments
in a year would be less than $100.
b) For purposes of calculating the guaranteed first payment
of a Variable Annuity or the payments for a Fixed
Annuity, the Annuitant's and second Annuitant's adjusted
age will be used. The Annuitant's and second Xxxxxxxxx's
adjusted age is his or her age as of the birthday closest
to the Annuity commencement date reduced by one year for
Annuity commencement dates occurring during the period of
time from July 1, 1992 through December 31, 1999. The
Annuitant's and second Xxxxxxxxx's age will be reduced by
41 41
two years for Annuity commencement dates occurring during
the period of time from January 1, 2000 through December
31, 2009. The Annuitant's and second Annuitant's age will
be reduced by one additional year for Annuity
commencement dates occurring in each succeeding decade.
The Annuity rates for options 3 and 4 are based on
mortality from 1983 Table a.
c) Assumed annual net return rate is the interest rate used
to determine the amount of the first Annuity payment
under a Variable Annuity. 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.
42 42
5.03 Annuity Payments to Participant:
In no event may any payments to the Participant under any
Annuity option extend beyond:
a) The life of the Participant;
b) The lives of the Participant and the Beneficiary;
c) A period certain greater than the Participant's life
expectancy according to regulations under Code Section
401(a)(9), determined as of the date payments are to
commence; or
d) A period certain greater than the life expectancies of
the Participant and the Beneficiary according to
regulations under Code Section 401(a)(9) determined as
of the date payments are to begin.
5.04 Death Provision:
When an Annuitant dies under options 3 and 4, the present
value of any remaining guaranteed payments will be paid in
one sum to the Beneficiary or upon election of the
Beneficiary, any remaining payments will continue to the
Beneficiary. If a Beneficiary dies while receiving Annuity
payments, the present value of any remaining payments will
be paid in one lump sum to the Beneficiary's estate. The
interest rate used to determine the present value for a lump
sum payment will be the rate used to determine the first
Annuity payment.
In no event may any payments to the Beneficiary under an
Annuity option extend beyond:
a) The life of the Beneficiary determined as of the date
payments are to commence; or
b) Any certain period greater than the Beneficiary's life
expectancy as determined by regulations under Code
Section 401(a)(9) as of the date payments are to
begin.
However, if a Beneficiary dies while under option 1 or while
receiving Annuity payments, the present value of any
remaining payments will be paid in one lump sum to the
estate of the Beneficiary. The interest rate used to
determine the first payment will be used to calculate the
present value.
5.05 Fund Annuity Units:
The number of Fund(s) Annuity units is based on the amount
of the first Variable Annuity payment which is equal to:
a) The portion of the Current Value including any
applicable MVA (see 3.08) or premium tax, applied to
pay a Variable Annuity; divided by
b) 1,000; multiplied by
c) The payment rate for the option chosen.
Such amount, or portion, of the variable payment will be
divided by the appropriate Fund(s) Annuity unit value (See
5.06) on the tenth Valuation Period before the due date of
the first payment to determine the number of each Fund
Annuity units. The number of each Fund Annuity units remains
43 43
fixed. Each future payment is equal to the sum of the
products of each Fund Annuity unit value multiplied by the
appropriate number of units. The Fund Annuity unit value on
the tenth Valuation Period prior to the due date of the
payment is used.
5.06 Fund Annuity Unit Value:
For any Valuation Period, a Fund(s) Annuity unit value is
equal to:
a) The value for the previous Period; multiplied by
b) The Annuity net return factor(s) (See 5.07) for the
Period; multiplied by
c) A factor to reflect the assumed annual net return rate
(See Contract Schedule II).
The dollar value of a Fund Annuity unit and Annuity payments
may go up or down due to investment gain or loss.
Payments shall not be changed due to changes in the
mortality or expense results or administrative charges.
5.07 Fund Annuity Net Return Factor:
The Annuity net return factor(s) is used to compute all
Separate Account Annuity payments for any Fund.
The Annuity net return factor(s) for each Fund is equal to
1.0000000 plus the net return Rate.
The net return rate is equal to:
a) The value of the shares of the Fund held by the
Separate Account at the end of a Valuation Period;
minus
b) The value of the shares of the Fund held by the
Separate Account at the start of the Valuation Period;
plus or minus
c) Taxes (or reserves for taxes) on the Separate Account
(if any);
d) Divided by the total value of the Fund(s) record units
and Fund(s) Annuity units of the Separate Account at
the start of the Valuation Period; minus
e) Minus a daily charge for Annuity mortality and expense
risks, which may include profit, and a daily
administrative charge (at the annual rate as shown on
Contract Schedule II).
A net return rate may be more or less than 0%.
The value of a share of the Fund is equal to the net assets
of the Fund divided by the number of shares outstanding.
5.08 Annuity Options:
The Participant may direct Aetna to make payments according
to one of the following options, subject to Section VI.
Option 1 -- Payments of Interest on Sum Left with Aetna --
This option may be used only by the Beneficiary when the
Participant dies before Aetna has started paying an Annuity.
A portion or all of the sum paid upon death may be held
44 44
under this option and will be held in the General Account of
Aetna at interest. The Beneficiary, may later tell Aetna to:
a) Pay a portion or all of the sum held by Aetna; or
b) Apply a portion or all of the sum held by Aetna to any
Annuity option below.
If the Beneficiary is the Participant's surviving spouse,
the lump-sum payment may be deferred to a date not later
than when the Participant would have attained age 70 1/2.
If the Beneficiary is not a spouse, the Beneficiary must
tell Aetna to pay the full sum within 5 years after the
death of the Participant.
Option 2 -- Payments for a Stated Period of Time -- An
Annuity will be paid for the number of years chosen (See
Contract Schedule II).
If payments for this option are made under a Variable
Annuity, the present value of any remaining payments may be
withdrawn at any time. If a withdrawal is requested prior to
the minimum number of years specified on Contract Schedule
II, it will be subject to any Withdrawal Fee, if applicable
(See Contract Schedule I).
Option 3 -- Life Income -- An Annuity will be paid for the
life of the Annuitant. Aetna may also guarantee payments for
60, 120, 180, or 240 months if so directed by the
Participant.
Option 4 -- Life Income Based Upon the Lives of Two
Annuitants -- An Annuity will be paid during the lives of
the Annuitant and a second Annuitant. Payments will continue
until both Annuitants have died. When this option is chosen,
a choice of the following must be made:
a) 100% of the payment to continue after the first death;
b) 66 2/3% of the payment to continue after the first
death;
c) 50% of the payment to continue after the first death;
d) Payments for a minimum of 120 months, with 100% of the
payment to continue after the first death; or
e) 100% of the payment to continue at the death of the
second Annuitant and 50% of the payment to continue at
the death of the Annuitant.
Other Options -- Aetna may make other options available as
allowed by the laws of the state in which this Contract is
delivered.
VI. QUALIFIED JOINT AND SURVIVOR AND PRERETIREMENT SURVIVOR ANNUITIES
______________________________________________________________________________
45 45
6.01 ERISA Requirements:
Notwithstanding any other provision of the Plan or this
Contract, if the Plan is subject to ERISA:
a) The Individual Account(s) Adjusted Current Value
available for distribution shall be payable to a
married Participant in the form of a "Qualified Joint
and Survivor Annuity," in accordance with Section 205
of ERISA, if the Participant does not die before the
commencement of retirement benefit payments. A
Qualified Joint and Survivor Annuity is an Annuity
payable for the joint lives of the Participant and
spouse with 50% of the payment to continue to the
surviving spouse after the Participant's death.
b) The Individual Account(s) Adjusted Current Value shall
be payable to the surviving spouse of a married
Participant in the form of a "Qualified Preretirement
Survivor Annuity," in accordance with Section 205 of
ERISA, if the Participant dies before the commencement
of retirement benefit payments. A Qualified
Preretirement Survivor Annuity is an Annuity payable
for the life of the surviving spouse which can be
purchased by 50% of the Participant's Individual
Account(s) Adjusted Current Value.
6.02 Waiver and Spousal Consent:
a) The Participant may waive the Qualified Joint and
Survivor Annuity and/or the Qualified Preretirement
Survivor Annuity, in accordance with Section 205 of
ERISA, and have benefits paid in some other form
permitted by the Contract subject, however, to written
spousal consent, made in accordance with Section 205
of ERISA.
b) Pursuant to Section 205 of ERISA, for married
Participants, the spouse must give written consent to
the use of the Individual Account(s) Current Value
available for distribution as security for a loan
under the Contract.
46 46
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47 47
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Years Guaranteed Monthly Quarterly Semi-Annual
Rate Payment Payment AnnualPayment
Payment
5 3.00% $17.91 $53.59 $106.78$211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
48 48
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Years Monthly Quarterly Semi- Annual
Payment Payment Annual Payment
Payment
5 $18.12 $54.19 $107.92 $213.99
6 15.35 45.92 91.44 181.32
7 13.38 40.01 79.69 158.01
8 11.90 35.59 70.88 140.56
9 10.75 32.16 64.05 127.00
10 9.83 29.42 58.59 116.18
11 9.09 27.18 54.13 107.34
12 8.46 25.32 50.42 99.98
13 7.94 23.75 47.29 93.78
14 7.49 22.40 44.62 88.47
15 7.10 21.24 42.31 83.89
16 6.76 20.23 40.29 79.89
17 6.47 19.34 38.51 76.37
18 6.20 18.55 36.94 73.25
19 5.97 17.85 35.54 70.47
20 5.75 17.22 34.28 67.98
21 5.56 16.65 33.15 65.74
22 5.39 16.13 32.13 63.70
23 5.24 15.66 31.19 61.85
24 5.09 15.24 30.34 60.17
25 4.96 14.85 29.56 58.62
26 4.84 14.49 28.85 57.20
27 4.73 14.15 28.19 55.90
28 4.63 13.85 27.58 54.69
29 4.53 13.57 27.02 53.57
30 4.45 13.30 26.49 52.53
49 49
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate Rate of 5.0%
Years Monthly Quarterly Semi- Annual
Payment Payment Annual Payment
Payment
5 $18.74 $56.00 $111.33 $219.98
6 15.99 47.77 94.96 187.64
7 14.02 41.90 83.30 164.59
8 12.56 37.52 74.58 147.35
9 11.42 34.11 67.81 133.99
10 10.51 31.40 62.42 123.34
11 9.77 29.19 58.03 114.66
12 9.16 27.36 54.38 107.45
13 8.64 25.81 51.31 101.39
14 8.20 24.50 48.69 96.21
15 7.82 23.36 46.44 91.75
16 7.49 22.37 44.47 87.88
17 7.20 21.51 42.75 84.48
18 6.94 20.74 41.23 81.47
19 6.71 20.06 39.88 78.80
20 6.51 19.46 38.68 76.42
21 6.33 18.91 37.59 74.28
22 6.17 18.42 36.62 72.35
23 6.02 17.98 35.73 70.61
24 5.88 17.57 34.93 69.02
25 5.76 17.20 34.20 67.57
26 5.65 16.87 33.53 66.25
27 5.54 16.56 32.92 65.04
28 5.45 16.28 32.35 63.93
29 5.36 16.01 31.83 62.90
30 5.28 15.77 31.35 61.95
50 50
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
Adjusted None 60 120 180240
Age of
Annuitant
50 $4.05 $4.05 $4.03 $3.99$3.93
51 4.12 4.11 4.09 4.05 3.99
52 4.19 4.19 4.16 4.11 4.04
53 4.27 4.26 4.23 4.18 4.10
54 4.35 4.34 4.31 4.25 4.16
55 4.44 4.42 4.39 4.32 4.22
56 4.53 4.51 4.47 4.40 4.29
57 4.62 4.61 4.56 4.48 4.35
58 4.72 4.71 4.65 4.56 4.42
59 4.83 4.81 4.75 4.64 4.49
60 4.95 4.93 4.86 4.73 4.55
61 5.07 5.05 5.97 4.83 4.62
62 5.20 5.17 5.08 4.92 4.69
63 5.34 5.31 5.20 5.02 4.76
64 5.49 5.45 5.33 5.12 4.83
65 5.65 5.61 5.47 5.22 4.89
66 5.82 5.77 5.61 5.33 4.96
67 6.01 5.94 5.75 5.44 5.02
68 6.20 6.13 5.91 5.54 5.08
69 6.41 6.33 6.07 5.65 5.14
70 6.64 6.54 6.23 5.76 5.19
71 6.88 6.76 6.41 5.86 5.24
72 7.14 7.00 6.59 5.97 5.28
73 7.43 7.26 6.77 6.06 5.32
74 7.73 7.53 6.96 6.16 5.35
75 8.06 7.82 7.14 6.25 5.38
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
51 51
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Months
Adjusted None 60 120 180240
Age of
Annuitant
50 $4.34 $4.34 $4.31 $4.27$4.22
51 4.41 4.40 4.38 4.33 4.27
52 4.48 4.47 4.45 4.40 4.32
53 4.56 4.55 4.52 4.46 4.38
54 4.64 4.63 4.59 4.53 4.44
55 4.72 4.71 4.67 4.60 4.50
56 4.81 4.80 4.75 4.67 4.56
57 4.91 4.89 4.84 4.75 4.62
58 5.01 4.99 4.93 4.83 4.69
59 5.12 5.10 5.03 4.92 4.75
60 5.23 5.21 5.13 5.00 4.82
61 5.36 5.33 5.24 5.09 4.88
62 5.49 5.45 5.35 5.19 4.95
63 5.63 5.59 5.47 5.28 5.02
64 5.78 5.73 5.60 5.38 5.08
65 5.94 5.89 5.73 5.48 5.15
66 6.11 6.05 5.87 5.58 5.21
67 6.29 6.22 6.02 5.69 5.27
68 6.49 6.41 6.17 5.79 5.33
69 6.70 6.60 6.33 5.90 5.38
70 6.92 6.81 6.49 6.00 5.43
71 7.17 7.04 6.66 6.10 5.48
72 7.43 7.27 6.84 6.20 5.52
73 7.71 7.53 7.02 6.30 5.55
74 8.02 7.80 7.20 6.39 5.59
75 8.35 8.08 7.38 6.48 5.62
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
52 52
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Payments Guaranteed for a Stated Period of Months
Adjusted None 60 120 180240
Age of
Annuitant
50 $5.26 $5.25 $5.22 $5.17$5.11
51 5.33 5.32 5.28 5.23 5.15
52 5.40 5.38 5.34 5.29 5.20
53 5.47 5.45 5.41 5.35 5.26
54 5.54 5.53 5.48 5.41 5.31
55 5.63 5.61 5.56 5.47 5.36
56 5.71 5.69 5.63 5.54 5.42
57 5.80 5.78 5.72 5.61 5.47
58 5.90 5.88 5.81 5.69 5.53
59 6.01 5.98 5.90 5.77 5.59
60 6.12 6.09 6.00 5.85 5.65
61 6.24 6.21 6.10 6.93 5.71
62 6.37 6.33 6.21 6.02 5.77
63 6.51 6.46 6.33 6.11 5.83
64 6.66 6.60 6.45 6.20 5.89
65 6.82 6.75 6.57 6.30 5.95
66 6.99 6.91 6.71 6.39 6.01
67 7.17 7.08 6.85 6.49 6.06
68 7.36 7.27 6.99 6.59 6.12
69 7.57 7.46 7.15 6.69 6.17
70 7.80 7.67 7.30 6.78 6.21
71 8.05 7.89 7.47 6.88 6.25
72 8.31 8.13 7.64 6.97 6.29
73 8.59 8.38 7.81 7.06 6.33
74 8.90 8.64 7.99 7.15 6.36
75 9.23 8.93 8.16 7.23 6.38
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
53 53
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d 4e
55 50 $3.69 $4.05 $4.27 $3.69 $4.03
55 55 3.88 4.25 4.47 3.87 4.14
55 60 4.06 4.47 4.71 4.06 4.20
60 55 3.99 4.44 4.71 3.98 4.42
60 60 4.24 4.71 4.99 4.23 4.57
60 65 4.49 5.01 5.32 4.48 4.64
65 60 4.38 4.97 5.32 4.38 4.93
65 65 4.72 5.33 5.70 4.71 5.14
65 70 5.07 5.75 6.17 5.05 5.26
70 65 4.93 5.68 6.15 4.91 5.66
70 70 5.40 6.21 6.70 5.36 5.96
70 75 5.89 6.82 7.40 5.81 6.12
75 70 5.69 6.68 7.32 5.62 6.67
75 75 6.37 7.45 8.15 6.23 7.12
75 80 7.07 8.34 9.16 6.78 7.36
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
54 54
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d 4e
55 50 $3.97 $4.35 $4.56 $3.97 $4.31
55 55 4.16 4.54 4.76 4.15 4.42
55 60 4.27 4.73 5.00 4.26 4.48
60 55 4.27 4.73 5.00 4.26 4.70
60 60 4.51 4.99 5.27 4.50 4.84
60 65 4.66 5.25 5.61 4.65 4.93
65 60 4.66 5.25 5.61 4.65 5.22
65 65 4.99 5.61 5.99 4.98 5.42
65 70 5.19 5.97 6.44 5.17 5.54
70 65 5.19 5.97 6.44 5.17 5.93
70 70 5.67 6.49 6.99 5.62 6.23
70 75 5.95 6.96 7.61 5.87 6.40
75 70 5.95 6.96 7.61 5.87 6.95
75 75 6.64 7.73 8.43 6.48 7.40
75 80 7.04 8.39 9.29 6.79 7.64
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
55 55
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d 4e
55 50 $4.88 $5.26 $5.48 $4.88 $5.23
55 55 5.04 5.44 5.66 5.04 5.32
55 60 5.15 5.63 5.91 5.14 5.38
60 55 5.15 5.63 5.91 5.14 5.59
60 60 5.37 5.87 6.16 5.37 5.72
60 65 5.52 6.14 6.51 5.51 5.80
65 60 5.52 6.14 6.51 5.51 6.10
65 65 5.83 6.49 6.87 5.82 6.29
65 70 6.04 6.84 7.34 6.00 6.41
70 65 6.04 6.84 7.34 6.00 6.81
70 70 6.49 7.35 7.87 6.44 7.08
70 75 6.77 7.84 8.51 6.68 7.25
75 70 6.77 7.84 8.51 6.68 7.81
75 75 7.45 8.60 9.33 7.27 8.25
75 80 7.86 9.28 10.20 7.57 8.49
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
56 56
57 57
Aetna Life Insurance and Annuity Company
TRANSFER CREDIT ENDORSEMENT
The Contract is hereby endorsed as follows:
Add the following statement to the end of Section 3.02 entitled Net
Contribution(s):
Transferred Assets are the value of prior contributions into an existing Plan
which are deposited into this Contract as of the date the amount is received
in good order by Aetna. Transferred Assets, less any premium tax, will be
allocated to Participant Individual Accounts in amounts authorized by the
Participant.
Where Aetna is the exclusive 403(b) Plan provider, Aetna will apply a Transfer
Credit equal to [2%] of Transferred Assets deposited into the Contract and
allocated to Individual Accounts. The Transfer Credit amount is calculated as
of the one year anniversary of a Participant's first Net Contribution to the
Contract. The calculation for any Transfer Credit amount will be based on the
total amount of Transferred Assets remaining in Individual Accounts as of the
calculation date.
The Transfer Credit amount will be allocated to the Fixed Plus Account. The
amount will include the Transfer Credit plus any interest that would have
accrued had the Transfer Credit actually been deposited into the Fixed Plus
Account on the first business day of the calendar month following it's
calculation.
Transfer Credit will not be applied to assets transferred into the Contract
from existing Aetna Contracts. Only Net Contributions not previously held by
Aetna Life Insurance and Annuity Company are eligible for Transfer Credit.
Endorsed and made a part of the Contract on the effective date of the
Contract.
58 58
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60 60
[Aetna Logo]
Aetna Life Insurance and Annuity Company
Home Office: 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
(000) 000-0000
Group Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT
FORMULA DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
61 61
