Specimen Copy] RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK Minimum Guaranteed Withdrawal Benefit Rider With Reset Option A Stock Company (HEREINAFTER CALLED WE, US AND OUR)
| Exhibit 99-B.4.22 |
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| [Specimen Copy] | ||
| RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK |
Minimum Guaranteed Withdrawal Benefit Rider With Reset Option | |
| A Stock Company | ||
| (HEREINAFTER CALLED WE, US AND OUR) |
The Contract to which this Minimum Guaranteed Withdrawal Benefit Rider (this “Rider”) is attached is
hereby modified by the provisions of this Rider. The Rider's provisions shall control when there is a
conflict between this Rider and the Contract. Any capitalized terms not defined in this Rider shall have
the meaning given to them in the Contract.
This Rider permits withdrawals up to a specified amount annually that are guaranteed until the death of
the last Active Spouse (as defined below) and may provide for guaranteed payments in the event the
Contract’s Accumulation Value is reduced to zero, subject to the Rider’s terms, conditions and limitations.
Benefits provided and charges made under the terms and conditions of this Rider are described below.
This Rider will remain in effect until terminated under the conditions described below.
IMPORTANT TERMS
An Active Spouse is the person/people upon whose life and age Rider benefits are determined. On the
Rider Date, there must be two Active Spouses who are married to each other and are either joint Owners
or one Active Spouse is an Owner and the other is the sole primary Beneficiary. In order for an Active
Spouse to maintain status as an Active Spouse, all of the following conditions must be met:
(1) The person must be alive;
(2) The person must be either an Owner or the sole primary Beneficiary on the Rider Date;
(3) If the person is an Owner, and is removed from being an Owner, the person must immediately
become the sole primary Beneficiary; and
(4) If the person is the sole primary Beneficiary and is removed from such designation, the person
must immediately be named as an Owner.
Once a person loses status as an Active Spouse, the person may not regain status as an Active Spouse.
No person can become an Active Spouse after the Rider Date. The Owner, in the case of single
ownership, may request that an Active Spouse no longer be deemed an Active Spouse by providing us
notice at our Customer Service Center in a form satisfactory to us. In the case of custodial ownership, the
custodial beneficiary will be deemed to be the sole primary Beneficiary for purposes of this Rider. As
used in this definition, “married” has the meaning given to it under federal law.
The Contract means the Contract to which this Rider is attached.
The term Credit is defined in the Contract or its Riders and Endorsements. If not defined in the Contract
or its Riders and Endorsements, the Credit shall be zero.
An Excess Withdrawal is an amount equal to the excess of the total Partial Withdrawals in a Contract
Year over the then current MAW.
The Growth Phase is the period of time beginning on the Rider Date and ending on the last Business Day
immediately preceding the beginning of the Withdrawal Phase.
The Reset Waiting Period is the minimum period of time required between each election of the MGWB
Reset Option. The Reset Waiting Period is shown in the Contract Schedule.
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The Withdrawal Phase begins as of the date of the first Partial Withdrawal under the Contract, other
than withdrawals requested by the Owner for the payment of advisory fees to a registered investment
advisor for advice provided on the selection and ongoing management of the funds underlying the
Contract, or the Annuity Commencement Date, whichever occurs first. No additional Premium Payments
are allowed under the Contract during the Withdrawal Phase. We may, however, at our sole discretion,
waive this limitation. Any such waiver will apply to all issues of this Rider on a nondiscriminatory basis.
The Maximum Annual Withdrawal or MAW is the maximum Accumulation Value that can be withdrawn
from the Contract in any Contract Year without reducing the Rider benefit guarantees in future Contract
Years.
The Rider Date is the date this Rider becomes effective. The Rider Date is the same as the Contract Date
unless a different Rider Date is shown in the Contract Schedule.
INVESTMENT OPTION CLASSIFICATIONS
Accepted Funds, applicable to this Rider and existing on the Rider Date, are defined in the Contract
Schedule. We may classify newly available investment options as Accepted Funds. We may reclassify an
existing investment option as an Accepted Fund or remove such designation upon 30 days notice to you.
Such reclassification will apply to amounts transferred or otherwise added to such investment option(s)
after the date of change.
Non-Accepted Funds, applicable to this Rider and existing on the Rider Date, are all investment options
designated as Fixed Allocation Funds or Other Funds.
Fixed Allocation Funds, applicable to this Rider and existing on the Rider Date, are defined in the
Contract Schedule. We may classify newly available investment options as Fixed Allocation Funds. We
may reclassify an existing investment option as a Fixed Allocation Fund or remove such designation upon
30 days notice to you. Such reclassification will apply to amounts transferred or otherwise added to such
investment option(s) after the date of change.
Other Funds, applicable to this Rider and existing on the Rider Date, are any investment options not
designated as Accepted Funds or Fixed Allocation Funds. We may classify newly available investment
options as Other Funds. We may reclassify an existing investment option as an Other Fund or remove
such designation upon 30 days notice to you. Such reclassification will apply to amounts transferred or
otherwise added to such investment option(s) after the date of change. As discussed below in the “MGWB
Rebalancing” section, Other Funds are subject to restrictions as to amounts which may be invested or
transferred into such divisions.
GUARANTEED WITHDRAWAL STATUS
On the Rider Date, this Rider is placed in Guaranteed Withdrawal Status. During Guaranteed
Withdrawal Status, the Rider may be in the Growth Phase or the Withdrawal Phase. While in
Guaranteed Withdrawal Status, the benefits provided under the Contract continue and the Rider
guarantees that an amount equal to the MAW (as calculated below) will be available for withdrawal each
Contract Year, subject to certain conditions. Guaranteed Withdrawal Status will be maintained while all
of the following conditions exist:
(1) The Contract’s Accumulation Value is greater than zero;
(2) The Annuity Commencement Date under the Contract has not been reached;
(3) The Contract has not been surrendered or otherwise terminated; and
(4) There is at least one Active Spouse.
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MGWB Base Definition
The MGWB Base is calculated only during the Growth Phase for the purpose of determining the initial
MAW. Thereafter, the MGWB Base has no value. If this Rider is effective as of the Contract Date, the
initial MGWB Base is the Initial Premium Payment plus any Credits, if applicable. If this Rider is added
to the Contract after the Contract Date, the initial MGWB Base is equal to the Contract’s Accumulation
Value on the Rider Date. Thereafter, the MGWB Base is calculated during the Growth Phase as follows:
(1) On any Ratchet Date, the MGWB Base equals the greater of:
A. The MGWB Base on the previous Ratchet Date plus Premium Payments made and any
Credits applied since the last Ratchet Date; or
B. The current Contract Accumulation Value.
(2) On any other date, the MGWB Base equals:
A. The MGWB Base on the previous Ratchet Date; plus
B. Premium Payments made and Credits applied since the last Ratchet Date.
For the purpose of MGWB Base calculations on and prior to the first Ratchet Date following the Rider
Date only, the Rider Date shall be deemed to be the previous Ratchet Date. Ratchet Dates are defined in
the Contract Schedule.
Maximum Annual Withdrawal Calculation
The initial MAW is set equal to (1) multiplied by the greater of (2) or (3) as of the last day of the Growth
Phase where:
(1) equals the applicable MAW Percentage, as shown in the Contract Schedule, based on the age of
the youngest Active Spouse, or if there is only one Active Spouse, on that spouse’s age;
(2) equals the Contract Accumulation Value; and
(3) equals the MGWB Base.
Thereafter, the MAW will be recalculated at the time of each Excess Withdrawal or at the time you
exercise the MGWB Reset Option as described in the “Treatment of Partial Withdrawals” and “MGWB
Reset Option” provisions, below. Once it is determined on the last day of the Growth Phase, the MAW
Percentage will not change.
Treatment of Partial Withdrawals
Total Partial Withdrawals in any Contract Year not exceeding the then current MAW will not impact the
MAW. However, an Excess Withdrawal will immediately reduce the MAW on a pro-rata basis. The
proportion of the reduction of the MAW will equal:
| A | |||
| {B – (C – A)} |
Where: A is the amount of the Excess Withdrawal; B is the Contract’s Accumulation Value immediately
prior to the withdrawal; and C is the total amount of the current Partial Withdrawal. This means the
MAW is reduced by the same percentage that the Accumulation Value is reduced by the Excess
Withdrawal, rather than by the dollar amount of the Excess Withdrawal.
For the purpose of determining whether the MAW has been exceeded, any applicable Surrender Charges
or recapture of Credits will not be applied to the Partial Withdrawal. However, for the purpose of
determining the MAW reduction after an Excess Withdrawal, any applicable Surrender Charges and
recapture of Credits are considered part of the Partial Withdrawal.
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If the Contract is a qualified Contract, Partial Withdrawals taken from this Contract to satisfy the
required minimum distribution rules of the Internal Revenue Code of 1986, as amended (the “RMD”),
that exceed the MAW for a specific Contract Year, will not be deemed Excess Withdrawals in that
Contract Year, subject to the following rules:
(1) If the Owner’s RMD for any calendar year, applicable to this Contract, is greater than the MAW,
an additional withdrawal amount will be set to be equal to that portion of the RMD that exceeds
the MAW (the “Additional Withdrawal Amount”). Otherwise, the Additional Withdrawal Amount
will be set to zero.
(2) Any Partial Withdrawals taken in a Contract Year will count first against the MAW for that
Contract Year.
(3) Once the MAW for the then current Contract Year has been taken, additional amounts
withdrawn in excess of the MAW will count against and reduce any Additional Withdrawal
Amount and are not considered Excess Withdrawals.
(4) Partial Withdrawals that exceed the Additional Withdrawal Amount are Excess Withdrawals and
will reduce the MAW on a pro-rata basis, as described above in this section.
(5) The Additional Withdrawal Amount is set to zero at the end of each calendar year, and remains
at zero until it is recalculated the following calendar year. The Additional Withdrawal Amount,
when recalculated, will not include your RMD for a calendar year, or any portion thereof, that
may otherwise be taken after that calendar year’s end.
Unless specifically stated otherwise in this Rider, any provisions in the Contract establishing required
minimum value remaining after a Partial Withdrawal are superseded and replaced by the provisions of
this Rider.
Partial Withdrawals requested by the Contract Owner for the sole purpose of the payment of advisory
fees to a registered investment advisor, for advice provided on the selection and ongoing management of
the funds underlying the Contract will not cause the Growth Phase to end and the Withdrawal Phase to
begin. During the Growth Phase these Partial Withdrawals reduce the MGWB Base on a pro-rata basis.
During the Withdrawal Phase these Partial Withdrawals are handled the same as any other Partial
Withdrawal.
Pro-rata Partial Withdrawal adjustments may be greater or less than dollar-for-dollar Partial
Withdrawal adjustments and may therefore reduce the MGWB Base more or less quickly. Pro-rata
Partial Withdrawal adjustments will be greater or less than dollar-for-dollar Partial Withdrawal
adjustments if the Accumulation Value prior to the Partial Withdrawal is less or greater than the MGWB
Base.
MGWB Reset Option
At any time while this Rider is in the Withdrawal Phase, you may elect to reset the MAW (the “MGWB
Reset Option”), subject to the following:
(1) You must provide us notice at our Customer Service Center in a form satisfactory to us;
(2) The first reset must be on or after the Reset Option Date shown in the Contract Schedule; and
(3) For a subsequent reset, a period of time at least equal to the Reset Waiting Period as shown in
the Contract Schedule must have elapsed since the previous reset.
Upon receipt of your notice, the MAW will increase to equal the MAW Percentage times the Contract’s
then current Accumulation Value. No reset will be allowed to occur that would reduce the MAW.
If the MGWB Reset Option is exercised, we may, at our sole discretion, increase the MGWB Charge (as
defined below) to equal the charge then in effect for new Riders issued. However, the MGWB Charge will
never exceed the Maximum MGWB Charge as shown in the Contract Schedule. We also guarantee that
the MGWB Charge will not increase for any reset exercised during the Reset Charge Lock Period as
shown in the Contract Schedule.
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We may, from time to time and at our discretion, permit the exercise of the MGWB Reset Option only on
Contract Anniversaries.
MGWB Rebalancing
If, on any MGWB Rebalancing Date (as defined below) the Accumulation Value in Fixed Allocation Funds
is less than the Minimum Fixed Allocation Fund Percentage, as shown in the Contract Schedule, of the
total Accumulation Value in Non-Accepted Funds, we will automatically rebalance the Accumulation
Value allocated to Non-Accepted Funds to restore the Minimum Fixed Allocation Fund Percentage
requirement.
MGWB Rebalancing Dates are defined as the following:
(1) Each Automatic MGWB Rebalancing Date as defined in the Contract Schedule;
(2) The day any additional Premiums Payments are made;
(3) The day any transfer/reallocation among Fixed Allocation Funds or Other Funds occurs, whether
automatic or specifically directed by you; and
(4) The day of any Partial Withdrawal from Fixed Allocation Funds or Other Funds.
Such rebalancing will occur, pro-rata, among Non-Accepted Funds and will be the last transaction
processed on that date. No rebalancing will occur if you are entirely invested in Accepted Funds.
Lifetime Income Annuity Option
If this Rider is in Guaranteed Withdrawal Status on the Contract’s Annuity Commencement Date, you
must choose one of the Annuity Options set forth in the Contract under which to begin receiving the
Annuity Payments or elect to receive lifetime income payments, in lieu of any other Annuity Options
available under the Contract (the “Lifetime Income Annuity Option”). If you choose one of the Annuity
Options under the Contract, the amount of the Annuity Payments and any conditions imposed will be
those listed in the Contract.
If the Lifetime Income Annuity Option is chosen for the life of two Active Spouses, payments are made to
the person named in equal payments for as long as either Active Spouse is living. If the Lifetime Income
Annuity Option is chosen for the life of only one Active Spouse, payments are made to the person named
in equal payments for as long as the Active Spouse on whose life the option is based is living. The
amount of such payments are based on the sex and age of the Active Spouse(s) on whose lives the
payments are based, on the date the Lifetime Income Annuity Option is elected. Upon the death of the
last Active Spouse on whose life the payments are based, all payments cease.
Tables of minimum payment factors (“Lifetime Income Annuity Factors”) under the Lifetime Income
Annuity Option, for a single life and for joint lives, are shown below. Actual payments under the Lifetime
Income Annuity Option will never be less than the greater of those derived from the Lifetime Income
Annuity Factors in this Rider and those based on the MAW for the same frequency, as of the Annuity
Commencement Date.
Lifetime Income Annuity Factors
Lifetime Annual Income Plan Factors for each $1,000 applied under this option calculated using the
Annuity 2000 Mortality Table and 1.5% interest per annum for certain ages are shown below. Lifetime
Income Plan Factors for other ages, or for joint lives with different ages, are available upon request.
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| Table of Income for a Single Life | |
|
Table of Income for Joint Lives | ||||
| Age | Male | Female | Age | Income | |||
| 55 | $42.76 | $39.32 | Male 55, Female 55 | $35.17 | |||
| 60 | 48.67 | 44.38 | Male 60, Female 60 | 39.12 | |||
| 65 | 56.69 | 51.17 | Male 65, Female 65 | 44.35 | |||
| 70 | 67.66 | 60.56 | Male 70, Female 70 | 51.44 | |||
| 75 | 82.56 | 74.05 | Male 75, Female 75 | 61.27 | |||
| 80 | 103.05 | 93.68 | Male 80, Female 80 | 75.10 | |||
| 85 | 130.96 | 122.27 | Male 85, Female 85 | 94.56 | |||
| 90 | 167.97 | 161.66 | Male 90, Female 90 | 121.03 | |||
AUTOMATIC PERIODIC BENEFIT STATUS
If the Contract’s Accumulation Value is reduced to zero (other than by a Partial Withdrawal exceeding
the MAW) while the Rider is in Guaranteed Withdrawal Status, the status of the Rider changes to
Automatic Periodic Benefit Status and the MGWB Periodic Payments (as defined below) will become
payable. If the Contract’s Accumulation Value is reduced to zero by a Partial Withdrawal which exceeds
the MAW, the Contract and this Rider will terminate due to the pro-rata reduction described above under
the “Treatment of Partial Withdrawals” section.
When the Rider enters Automatic Periodic Benefit Status, the Contract is modified as follows:
(1) The Contract will provide no further benefits other than as provided in this Rider;
(2) No additional Premium Payments will be accepted; and
(3) Any other Riders attached to the Contract shall terminate unless specified otherwise in the Rider.
After this Rider enters Automatic Periodic Benefit Status, the Contract and this Rider will terminate
when the last Active Spouse dies. When this Rider is in Automatic Periodic Benefit Status, if the MAW
exceeds the net Partial Withdrawals for that Contract Year, including the Partial Withdrawal that
caused the Rider to enter Automatic Periodic Benefit Status, the excess of the MAW over such net Partial
Withdrawals will be paid immediately to the Owner.
The MGWB Periodic Payment is an annual amount equal to the MAW in effect on the date the Rider
enters Automatic Periodic Benefit Status. MGWB Periodic Payments will begin on the last day of the
first full Contract Year following the date the Rider enters Automatic Periodic Benefit Status and will
continue to be paid annually thereafter until the death of the last Active Spouse. However, if at the time
this Rider enters Automatic Periodic Benefit Status, you are receiving systematic Partial Withdrawals
under the Contract more frequently than annually, the MGWB Periodic Payments will be made at the
same frequency in equal amounts such that the sum of the payments in each Contract Year will equal the
annual MGWB Periodic Payment. If MGWB Periodic Payments are disbursed after the death of the last
Active Spouse, but before we are notified of such death, we reserve the right to recover, and you agree to
repay to us, such MGWB Periodic Payments.
MGWB CHARGE
The charge for this Rider (the “MGWB Charge”) is a percentage of the Contract’s Accumulation Value as
of the date the MGWB Charge is deducted. It is deducted on each quarterly Contract Anniversary, in
arrears, from the Accumulation Value in the Variable Separate Account Divisions, in the same proportion
that the total Accumulation Value in each Division bears to the total Accumulation Value in the Variable
Separate Account. The MGWB Charge on the Rider Date is stated in the Contract Schedule. Subject to
our right to increase the charge only if the MGWB Reset Option is exercised, charges for this rider will
not exceed the MGWB Charge in effect on the Rider Date.
If the Contract to which this Rider is attached is terminated by surrender, cancellation or application of
the Contract’s Accumulation Value to an Annuity Option, the MGWB Charge for that portion of the
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current quarter completed will be deducted from the Contract’s Accumulation Value prior to termination
of the Contract.
The MGWB Charge for this Rider will continue to be assessed so long as this Rider is in effect, unless the
Rider enters Automatic Periodic Benefit Status.
CHANGE OF BENEFICIARY OR DEATH OR CHANGE OF OWNER
Change of Beneficiary
You may change a designated Beneficiary at any time. However, you must provide us notice at our
Customer Service Center in a form satisfactory to us. If an Active Spouse who is not also a joint Owner is
removed as the sole primary Beneficiary, the change will result in such Active Spouse no longer being
classified as an Active Spouse. In such a case, this Rider will continue until the death of the remaining
Active Spouse.
Death of Owner
If this Rider is in Guaranteed Withdrawal Status and upon proof of death of an Owner, the deceased
Owner’s surviving spouse may continue the Contract as his or her own, as provided in the Contract. If
the surviving spouse elects to continue the Contract, this Rider also continues, provided that both of the
following conditions are met:
(1) The surviving spouse is an Active Spouse; and
(2) The surviving spouse becomes the Annuitant and sole Owner.
There will be no interruption of Rider benefits or charges when the preceding conditions are met and
spousal continuation of this Rider occurs.
If this Rider is in the Growth Phase at the time of spousal continuation meeting the preceding conditions,
the Rider continues in the Growth Phase and the MGWB Base will be increased to equal the Contract’s
Accumulation Value, if greater.
If this Rider is in the Withdrawal Phase at the time of spousal continuation meeting the preceding
conditions, on the date that Contract’s Accumulation Value is increased to be equal to the applicable
Death Benefit under the Contract, the MAW will be re-determined to equal the greater of (1) and (2),
where:
(1) The MAW for the current year of the deceased Owner death; and
(2) The Contract’s Accumulation Value on this date, multiplied by the applicable MAW Percentage
that was used to determine the original MAW as of the last day of the Growth Phase.
This re-determination of the MAW is not considered an exercise of the MGWB Reset Option.
This Rider will terminate upon death of the last Active Spouse. This Rider will terminate upon proof of
death of an Owner if spousal continuation is not possible. If spousal continuation is possible, but the
surviving spouse chooses not to continue the Contract, this Rider will terminate when we receive notice
at our Customer Service Center, in a form satisfactory to us, that an alternative distribution option has
been chosen.
Change of Owner
Any change in Ownership will cause this Rider to terminate and no benefits under this Rider will
thereafter be payable, except for the following specifically allowed transactions:
(1) A change of ownership to an Active Spouse pursuant to spousal continuation as set forth in the
“Death of Owner” section above;
(2) A change of ownership from one custodian to another custodian for the benefit of the same
individual;
(3) A change of ownership from a custodian for the benefit of an individual to the same individual;
(4) A change of ownership from an individual to custodian for the benefit of the same individual;
(5) Collateral assignments;
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(6) Addition of an Active Spouse as a joint Owner;
(7) Removal of an Active Spouse from joint ownership; and
(8) A change of ownership in which the Owner becomes the sole primary Beneficiary and the sole
primary Beneficiary becomes the Owner, where both parties are Active Spouses.
Note that (3), and (7) above may result in an Active Spouse losing status as an Active Spouse, as detailed
in the above sections.
RIDER TERMINATION
This Rider may not be cancelled by you unless the Contract is terminated, other than as described in the
“Guaranteed Withdrawal Status,” “Death of Owner,” or “Change of Owner” sections.
This Rider has no surrender value or other non-forfeiture benefits upon termination.
MISSTATEMENT OF AGE, SEX, OR MARITAL STATUS
If the age, sex, or marital status used in determining any benefits provided by this Rider have been
misstated, the amounts payable or benefits provided will be those that this Rider would have provided at
the correct age, sex, or marital status. We reserve the right to recover, and you agree to repay to us, the
amounts overpaid. We also reserve the right, alternatively, to recoup the amounts overpaid by reducing
the MAW, future MGWB Periodic Payments, future Lifetime Income Payments, or future Annuity
Payments under an Annuity Option.
Signed;
[ /s/ Xxx X. Xxxxxx ]
Secretary
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