[Minnesota Mutual Letterhead]
CONTRACT OWNER:
CONTRACT NUMBER:
EFFECTIVE DATE:
CONTRACT ANNIVERSARY:
JURISDICTION: MINNESOTA
PLAN:
The Minnesota Mutual Life Insurance Company (herein called Minnesota Mutual)
agrees to accept purchase payments hereunder from the Contract Owner, to account
for such purchase payments in the manner provided herein, and to pay contract
benefits in such amounts and to such persons as are designated in writing by the
Contract Owner or its designee.
This contract is issued in consideration of the application by the Contract
Owner, a copy of which is attached to, and made a part of this contract, and the
tender of purchase payments under this contract by the Contract Owner.
Minnesota Mutual agrees to make annuity and other payments in accordance with
the provisions on this and the subsequent pages, all of which are a part of this
contract.
This contract shall be governed by the laws of the jurisdiction indicated
above. This contract is executed by Minnesota Mutual at its Home Office in
Saint Xxxx, Minnesota, to take effect as of the Effective Date.
Secretary President
Registrar
GROUP DEFERRED VARIABLE ANNUITY CONTRACT
ALLOCATED
PROVISION FOR FIXED AND VARIABLE ANNUITY PAYMENTS
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN
BASED ON THE INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT,
ARE VARIABLE AND NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT
95-9332 Rev. 2-96
1
TABLE OF CONTENTS
SECTION 1. DEFINITIONS PAGE
1.01 Plan. . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.02 Participant . . . . . . . . . . . . . . . . . . . . . . 2
1.03 Annuitant . . . . . . . . . . . . . . . . . . . . . . . 2
1.04 Annuity Payments. . . . . . . . . . . . . . . . . . . . 2
1.05 Fixed Annuity . . . . . . . . . . . . . . . . . . . . . 2
1.06 Variable Annuity. . . . . . . . . . . . . . . . . . . . 2
1.07 Annuity Commencement Date . . . . . . . . . . . . . . . 2
1.08 General Account . . . . . . . . . . . . . . . . . . . . 2
1.09 Separate Account. . . . . . . . . . . . . . . . . . . . 3
1.10 Participant's Accumulation Value. . . . . . . . . . . . 3
1.11 Fund. . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.12 Valuation Date. . . . . . . . . . . . . . . . . . . . . 3
1.13 Valuation Period. . . . . . . . . . . . . . . . . . . . 3
1.14 Participation Year. . . . . . . . . . . . . . . . . . . 3
1.15 Unit. . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.16 1940 Act. . . . . . . . . . . . . . . . . . . . . . . . 4
1.17 Code. . . . . . . . . . . . . . . . . . . . . . . . . . 4
1.18 TSA Loan Account. . . . . . . . . . . . . . . . . . . . 4
SECTION 2. PURCHASE PAYMENTS
2.01 Amount of Purchase Payments . . . . . . . . . . . . . . 5
2.02 Limitation of Purchase Payments . . . . . . . . . . . . 5
2.03 Application of Purchase Payments. . . . . . . . . . . . 5
2.04 Allocation of Purchase Payments . . . . . . . . . . . . 5
2.05 Separate Account Allocation . . . . . . . . . . . . . . 6
2.06 Changes to the Separate Account . . . . . . . . . . . . 6
SECTION 3. CONTRACT CHARGES
3.01 Deferred Sales Charge . . . . . . . . . . . . . . . . . 7
3.02 Separate Account Charges . . . . . . . . . . . . . . . 7
SECTION 4. VALUATION
4.01 Participant's Accumulation Value . . . . . . . . . . . 9
4.02 Accumulation Unit Value . . . . . . . . . . . . . . . . 9
4.03 Net Investment Factor . . . . . . . . . . . . . . . . . 9
4.04 Annuity Unit Value . . . . . . . . . . . . . . . . . . 10
4.05 General Account Interest . . . . . . . . . . . . . . . 10
1A
SECTION 5. WITHDRAWALS AND TRANSFERS
5.01 Withdrawal Provisions . . . . . . . . . . . . . . . . 11
5.02 Withdrawal Restrictions . . . . . . . . . . . . . . . 12
5.03 Hardship Withdrawal Provisions . . . . . . . . . . . . 12
5.04 Tax Penalties . . . . . . . . . . . . . . . . . . . . 12
5.05 Transfer of Participant's Accumulation Value . . . . . 13
5.06 Transfers of the General Account . . . . . . . . . . . 13
5.07 Transfers from the Separate Account . . . . . . . . . . 13
SECTION 6. CONTRACT LOANS
6.01 Loan Provisions . . . . . . . . . . . . . . . . . . . 14
6.02 Loan Restrictions . . . . . . . . . . . . . . . . . . . 14
6.03 Loan Interest Rate . . . . . . . . . . . . . . . . . . 15
6.04 Loan Repayment . . . . . . . . . . . . . . . . . . . . 15
6.05 Impact of Withdrawal on Loan . . . . . . . . . . . . . 16
SECTION 7. BENEFIT PROVISIONS
7.01 Death Benefits . . . . . . . . . . . . . . . . . . . . 17
7.02 Annuity Commencement Date . . . . . . . . . . . . . . . 17
7.03 Election of Annuity Option . . . . . . . . . . . . . . 17
7.04 Application of Accumulation Value . . . . . . . . . . . 17
7.05 Annuity Payment Options . . . . . . . . . . . . . . . . 18
7.06 Election of Annuity Form . . . . . . . . . . . . . . . 18
7.07 Determination of Fixed Annuity Payment . . . . . . . . 19
7.08 Determination of Variable Annuity Payments . . . . . . 21
7.09 Transfers During the Annuity Period . . . . . . . . . . 21
7.10 Lump Sum Settlement . . . . . . . . . . . . . . . . . . 22
SECTION 8. SUSPENSION AND TERMINATION
8.01 Suspension of Purchase Payments . . . . . . . . . . . . 23
8.02 Termination of Contract . . . . . . . . . . . . . . . . 23
8.03 Effect of Termination . . . . . . . . . . . . . . . . . 23
8.04 Lump Sum Termination Value . . . . . . . . . . . . . . 24
8.05 Installment Termination Value . . . . . . . . . . . . . 25
8.06 Final Termination . . . . . . . . . . . . . . . . . . . 26
SECTION 9. GENERAL PROVISIONS
9.01 Contract . . . . . . . . . . . . . . . . . . . . . . . 27
9.02 Modification of Contract . . . . . . . . . . . . . . . 27
9.03 Beneficiary . . . . . . . . . . . . . . . . . . . . . . 27
1C
9.04 Participation in Divisible Surplus . . . . . . . . . . 28
9.05 Certificates and Statements . . . . . . . . . . . . . . 28
9.06 Misstatement of Age . . . . . . . . . . . . . . . . . 28
9.07 Assignment . . . . . . . . . . . . . . . . . . . . . . 28
9.08 Contract Values . . . . . . . . . . . . . . . . . . . . 28
9.09 Annuity Reserves . . . . . . . . . . . . . . . . . . . 29
1C
SECTION 1. DEFINITIONS
1.01 PLAN
"Plan" means the Plan specified on Page 1 of this contract. The Plan
must meet the requirements for qualification under Section 403(b) of the
Internal Revenue Code, as amended, or other section of the Code allowing
similar tax treatment.
1.02 PARTICIPANT
A person eligible to participate under the Plan, and on whose behalf
purchase payments have been or are being made under this contract.
1.03 ANNUITANT
A person eligible to receive lifetime benefits under this contract.
Joint annuitants will be considered a single entity.
1.04 ANNUITY PAYMENTS
A series of payments made at regular intervals to the Annuitant or any
other payee. Annuity Payments will be due and payable only on the first
day of a calendar month.
1.05 FIXED ANNUITY
An annuity payable from the General Account, with payments which remain
fixed as to dollar amount throughout the period of Annuity Payments.
1.06 VARIABLE ANNUITY
An annuity payable from the Separate Account with payments which increase
or decrease in dollar amount to reflect the investment experience of the
sub-accounts of the Separate Account.
1.07 ANNUITY COMMENCEMENT DATE
The date upon which Annuity Payments begin, as determined in accordance
with the Plan.
1.08 GENERAL ACCOUNT
All assets of Minnesota Mutual other than those in Separate Accounts
established by Minnesota Mutual.
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1.09 SEPARATE ACCOUNT
A separate investment account titled Minnesota Mutual Group Variable
Annuity Account. This Separate Account was established by Minnesota
Mutual for this class of contract under Minnesota law. The Separate
Account is composed of several sub-accounts. The assets of the Separate
Account belong to Minnesota Mutual and shall be held and applied
exclusively for the holders of those contracts on a variable basis for
which the Separate Account has been established. Those assets are not
subject to claims arising out of any other business which Minnesota
Mutual may conduct.
1.10 PARTICIPANT'S ACCUMULATION VALUE
The sum of the individual Participant's values under this contract in the
General Account and/or the Separate Account. In the General Account,
this is the General Account Accumulation Value. In the Separate Account,
this is the Separate Account Accumulation Value. The Separate Account
portion is composed of the Participant's interests in one or more sub-
accounts of the Separate Account. The total of these shall be the
Participant's Separate Account Accumulation Value. Interests in the sub-
accounts shall be valued separately.
1.11 FUND
The mutual fund or separate investment portfolio within a series mutual
fund which is designated as an eligible investment for the Separate
Account.
1.12 VALUATION DATE
Any date on which a Fund is valued.
1.13 VALUATION PERIOD
The period between successive valuation dates measured from the time of
one determination to the next.
1.14 PARTICIPATION YEAR
A period of one year beginning on the first day of the month in which
purchase payments were first received under this contract on behalf of a
Participant, or on an anniversary of that date.
1.15 UNIT
A measure of a Participant's interest in the Separate Account or sub-
account of the Separate Account.
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1.16 1940 ACT
The Investment Company Act of 1940, as amended, or any similar successor
federal legislation.
1.17 CODE
The Internal Revenue Code of 1986, as amended.
1.18 TSA LOAN ACCOUNT
A portion of our general account, created for accounting purposes only,
to which contract amounts are transferred as security for an outstanding
loan under a tax-sheltered annuity contract.
4
SECTION 2. PURCHASE PAYMENTS
2.01 AMOUNT OF PURCHASE PAYMENTS
The amount of purchase payments to be paid by the Contract Owner by or on
behalf of a Participant shall be determined by the Contract Owner in
accordance with the provisions of the Plan. All purchase payments are
payable at the Home Office of Minnesota Mutual. The Home Office is at
000 Xxxxxx Xxxxxx Xxxxx, Xx. Xxxx, Xxxxxxxxx 00000-0000.
2.02 LIMITATIONS ON PURCHASE PAYMENTS
Where the annuitant has a tax sheltered annuity, purchase payments may be
limited. Elective deferrals which are purchase payments made by salary
reduction are limited to: (a) $9,500; or (b) an indexed amount, if
greater.
A special increased limit in the case of an annuitant who has completed
15 years of service with an educational organization, a hospital, a home
health service organization, a church, a convention or association of
churches, or a health and welfare service agency may be available. The
limit for any one year is increased by the lesser of:
(a) $3,000;
(b) $15,000 reduced by amounts already excluded for prior taxable years
by reason of this special exception; or
(c) the excess of $5,000 multiplied by the number of years of service
the annuitant has with the employer less all prior elective
deferrals.
The amount of salary reduction excludable from an annuitant's gross
income may actually be less than the amount permitted under this limit on
elective deferrals. This may be true if the annuitant's exclusion
allowance described in Section 403(b)(2) of the Code, or the overall
limit as described in Section 415(c) of the Code is less.
2.03 APPLICATION OF PURCHASE PAYMENTS
There are usually no deductions made from purchase payments. However,
Minnesota Mutual reserves the right to make a deduction from purchase
payments for state premium taxes, where applicable.
2.04 ALLOCATION OF PURCHASE PAYMENTS
Purchase payments may be allocated to the General Account or to the sub-
accounts of the Separate Account. Purchase payments for each Participant
shall be allocated to the General Account or to the sub-accounts of the
Separate Account in accordance with the instructions
5
of the Participant or the Contract Owner. The initial allocation is
established as specified in the application for participation under this
contract which must be signed by the Participant. The allocation may be
changed as to future purchase payments by written or telephone notice to
Minnesota Mutual from the Participant or Contract Owner. That notice
must be received by Minnesota Mutual at its Home Office on or prior to
the date of receipt of those future purchase payments.
2.05 SEPARATE ACCOUNT ALLOCATION
Amounts allocated to the sub-accounts of the Separate Account will be
applied by Minnesota Mutual to provide accumulation units. Minnesota
Mutual will determine the number of accumulation units by dividing the
purchase payment by the then current accumulation unit value. That
determination will be made as of the Valuation Date coincident with or
next following the date on which such purchase payment is received by
Minnesota Mutual at its Home Office, and shall be made separately for
purchase payments allocated to each of the sub-accounts. The number of
accumulation units so determined shall not be affected by any subsequent
change in the accumulation unit value.
The Separate Account is divided into sub-accounts. For each sub-account
there is a Fund for the investment of that sub-account's assets. Amounts
are invested in the Funds at their net asset value. Purchase payments
may be applied to one or more of the sub-accounts. Minnesota Mutual
reserves the right to add, combine or remove any sub-accounts of the
Separate Account.
If investment in a Fund should no longer be possible or if Minnesota
Mutual determines it to be inappropriate for contracts of this class,
another Fund may be substituted. Substitution may be with respect to
existing Accumulation Values, future purchase payments and future Annuity
Payments.
2.06 CHANGES TO THE SEPARATE ACCOUNT
Minnesota Mutual reserves the right to transfer assets of the Separate
Account to another Separate Account. The transfer will be of assets
associated with this class of contracts, as determined by Minnesota
Mutual. If this type of transfer is made, the term "Separate Account",
as used in this contract, shall then mean the Separate Account to which
the assets were transferred.
Minnesota Mutual reserves the right, when permitted by law, to:
(a) de-register the Separate Account under the Investment Company Act of
1940;
(b) restrict or eliminate any voting rights of contract owners or other
persons who have voting rights as to the Separate Account; and
(c) combine the Separate Account with one or more other Separate
Accounts.
6
SECTION 3. CONTRACT CHARGES
3.01 DEFERRED SALES CHARGE
The deferred sales charge is the charge made on Participant
withdrawals, including contract termination, during the first
six Participation Years. The amount withdrawn plus any deferred
sales charge is deducted from the Participant's Accumulation Value.
In the Separate Account, accumulation units will be canceled of a
value equal to the charge and withdrawal.
The charge is indicated in the table shown below. These percentages
decrease uniformly by .083% for each of the first 72 months of
participation.
End of
Participation Year Charge
------------------ ------
(Participation Date) 6.0%
1 5.0%
2 4.0%
3 3.0%
4 2.0%
5 1.0%
6 0%
In no event will the amount of deferred sales charge exceed 9% of the
total purchase payments made on behalf of each Participant.
3.02 SEPARATE ACCOUNT CHARGES
There are three charges which are imposed by Minnesota Mutual on the
assets of the Separate Account. They are the mortality risk charge, the
expense risk charge and the administrative charge. These charges are
deducted on each Valuation Date from the assets of the Separate Account.
The mortality risk charge is for the mortality guarantees Minnesota
Mutual makes under the contract. Actual mortality results incurred by
Minnesota Mutual shall not adversely affect any payments or values under
this contract. On an annual basis, this charge shall not exceed .60% of
the net asset value of the Separate Account.
The expense risk charge is for the guarantee that the deductions provided
in this contract will be sufficient to cover its expenses. Actual
expense results incurred by Minnesota Mutual shall not adversely affect
any payments or values under this contract. On an annual basis, this
charge shall not exceed .65% of the net asset value of the Separate
Account.
7
The administrative charge is designed to cover the administrative
expenses incurred by Minnesota Mutual under this contract. On an annual
basis, this charge shall not exceed .40% of the net asset value of the
Separate Account.
8
SECTION 4. VALUATION
4.01 PARTICIPANT'S ACCUMULATION VALUE
A Participant's General Account Accumulation Value as of any date is the
sum of the following transactions made on behalf of a Participant: all
purchase payments allocated to the General Account plus interest,
dividends and transfers into the General Account, less any transfers out
of the General Account, any previous withdrawals and any applicable
deferred sales charge.
A Participant's Separate Account Accumulation Value is the sum of the
Participant's interest in each sub-account of the Separate Account which
is equal to the number of accumulation units held on behalf of the
Participant multiplied by the accumulation unit value for the appropriate
sub-account of the Separate Account.
4.02 ACCUMULATION UNIT VALUE
The accumulation unit value for each sub-account of the Separate Account
will be valued on each Valuation Date according to the net investment
experience of that sub-account. The value of an accumulation unit for
each sub-account was originally set at $1.00 on the first Valuation
Date. For any subsequent Valuation Date, its value is equal to its
value on the preceding Valuation Date multiplied by the net investment
factor for that sub-account for the valuation period ending on the
subsequent Valuation Date.
4.03 NET INVESTMENT FACTOR
The net investment factor for a valuation period is the gross investment
rate for such valuation period, less a deduction for the charges
associated with the Separate Account at a rate of no more than 1.65% per
annum.
The gross investment rate is equal to:
(a) the net asset value per share of a Fund share held in the sub-
account of the Separate Account determined at the end of the current
valuation period; plus
(b) the per-share amount of any dividend or capital gain distributions
by the Fund if the "ex-dividend" date occurs during the current
valuation period; divided by
(c) the net asset value per share of that Fund share held in the sub-
account determined at the end of the preceding valuation period.
9
4.04 ANNUITY UNIT VALUE
The value of an annuity unit for a sub-account is determined monthly as
of the first day of the month. The value is equal to the annuity unit
value for that sub-account as of the first day of the preceding month
multiplied by the product of (a) .996338; and (b) a sub-account
investment factor. This investment factor is the accumulation unit value
for that sub-account on the Valuation Date next following the fourteenth
day of the preceding month divided by the accumulation unit value for
that sub-account on the Valuation Date next following the fourteenth day
of the second preceding month. For any date other than the first of a
month, the annuity unit value is that value on the first day of the next
month.
4.05 GENERAL ACCOUNT INTEREST
Interest will be credited to amounts allocated to the General Account at
such interest rate as may be declared from time to time by Minnesota
Mutual for this contract, in accordance with its usual practices for
contracts of this class. Interest will be credited at a rate of no less
than 3% per year, compounded annually.
10
SECTION 5. WITHDRAWALS AND TRANSFERS
5.01 WITHDRAWAL PROVISIONS
Withdrawals may be made only for the purpose of:
(a) providing Plan benefits in accordance with Section 7,
(b) transfers to the Contract Owner in accordance with Section 8.03,
(c) transfers to Plan options available to Participants other than those
provided for in this Contract, or
(d) other withdrawals as allowed in the Plan and mutually agreed upon by
Minnesota Mutual and the Contract Owner.
The amount available for withdrawal shall be the Participant Accumulation
Value less any applicable deferred sales charge. If withdrawals during
the first calendar year of participation are equal to or less than 10% of
the total purchase payments made on behalf of the Participant, the charge
will not apply. In subsequent calendar years there will be no charge for
withdrawals equal to or less than 10% of the prior calendar year
Participant Accumulation Value. If a Participant's withdrawals in any
calendar year exceed this amount, the deferred sales charge will apply to
the excess.
Withdrawal amounts shall be deducted from the Participant's General
Account Accumulation Value on a first in, first out (FIFO) basis. Unless
otherwise instructed by the Participant or the Contract Owner, withdrawal
amounts will be made from a Participant's interest in the General Account
and each sub-account of the Separate Account in the same proportion that
the value of that Participant's interest in the General Account and any
sub-account bears to that Participant's total Accumulation Value.
Withdrawals are made upon written request from the Participant or
Contract Owner to Minnesota Mutual. The withdrawal date will be the
Valuation Date coincident with or next following the receipt of the
request by Minnesota Mutual at its Home Office.
From the General Account, withdrawals as described in (c) above, in
combination with transfers as described in 5.06, will be limited to the
greater of $1,000 or 10% of the Participant's General Account
Accumulation Value in each calendar year. From the sub-accounts of the
Separate Account, withdrawals as described in (c) above will not be
limited as to amount. Such withdrawals may be taken once per year or in
12 monthly installments.
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5.02 WITHDRAWAL RESTRICTIONS
Contracts issued to fund 403(b) tax sheltered annuity programs must
restrict certain withdrawals. Any purchase payment pursuant to a salary
reduction agreement between a Participant and his or her employer may be
paid only when:
(a) the Participant attains age 59 1/2;
(b) when the Participant separates from service from his or her
employer;
(c) when the Participant dies;
(d) when the Participant becomes disabled; or
(e) if the Participant qualifies for a hardship withdrawal.
5.03 HARDSHIP WITHDRAWAL PROVISIONS
A hardship withdrawal is one that is made on account of an immediate and
heavy financial need and a withdrawal is necessary to satisfy that
financial need. The Participant may be required to provide Minnesota
Mutual with information to substantiate that the hardship is one
described in the Code and its regulations.
A Participant may withdraw only the amount represented by his or her
salary reduction contributions. Any earnings attributable to such
contributions may not be withdrawn.
5.04 TAX PENALTIES
If a withdrawal or surrender occurs before the annuitant is age 59 1/2,
the annuitant may be subject to tax penalties. These penalties are
imposed under the Code. The annuitant may not be subject to tax penalties
on amounts received before age 59 1/2 if:
(a) the annuitant becomes disabled as defined by the Code;
(b) the amount received is in excess of the allowed elective deferral
and returned to the annuitant before the required tax return filing
date for that year, together with any earned interest; or
(c) if the entire amount in the contract is received and reinvested in a
similar plan entitled to similar tax treatment.
Minnesota Mutual will not be liable for any tax penalties on amounts
received or paid by us under this contract. Minnesota Mutual also
retains the right to treat any transaction treated by law as a contract
distribution as a complete contract surrender.
12
5.05 TRANSFER OF PARTICIPANT'S ACCUMULATION VALUE
Transfers of a Participant's Accumulation Value may be made among the
Participant's General Account and the sub-accounts of the Separate
Account. Such a transfer is made upon the written request from the
Participant or Contract Owner to Minnesota Mutual. The transfer date
will be the Valuation Date coincident with or next following the receipt
of the transfer request by Minnesota Mutual at its Home Office.
5.06 TRANSFERS OF THE GENERAL ACCOUNT
All transfers of General Account Accumulation Value of the Participant's
Account shall be on a first in, first out (FIFO) basis. In each calendar
year, amounts withdrawn by Participants for transfer to other Plan
options, as described in 5.01(c), combined with amounts transferred from
the Participant's General Account Accumulation Value to the sub-accounts
of the Separate Account, may not exceed the greater of $1,000 or 10% of
their General Account Accumulation Value. Transfers are permitted once
per year or in 12 monthly installments.
5.07 TRANSFERS FROM THE SEPARATE ACCOUNT
For transfers from the sub-accounts of the Separate Account, a number of
Accumulation Units will be surrendered such that the Accumulation Value
of the surrendered Accumulation Units equals the amount transferred.
Transfers between the sub-accounts of the Separate Account are unlimited
as to amount and frequency.
13
SECTION 6. CONTRACT LOANS
6.01 LOAN PROVISIONS
Loans may be taken upon written request from the Participant to Minnesota
Mutual. Upon receipt of the loan request, Minnesota Mutual will send the
Participant a loan application and agreement. The loan application and
agreement must be executed by the Participant. The contract and the
Participant's Accumulation Value are the only security required for the
loan. Minnesota Mutual will charge interest on the loan in arrears.
The Participant must indicate the Separate Account sub-accounts that will
be transferred to the TSA Loan Account. If no instruction is received
from the Participant, transfers of amounts to the TSA Loan Account will
be made from amounts in each sub-account of the Separate Account in the
same proportion that the value of an amount in any sub-account bears to
the total Participant's Accumulation Value prior to the loan.
At the time a Participant requests a loan, the amount requested as a loan
plus the interest that will be charged during the first quarter that the
loan is outstanding, plus any applicable deferred sales charge, will be
transferred from the Participant's Separate Account Accumulation Value
into the General Account on the date the Participant's loan application
is approved. This TSA Loan Account will then be the source of the loan
and the succeeding loan transactions.
Failure to meet the requirements of the loan agreement will result in its
termination. Loan amounts will then be treated as distributions under
the contract. Treatment of a loan as a distribution will result in
taxable income under applicable tax rules. In addition, depending upon
the Participant's circumstances, it may result in income taxation, tax
penalties, and disqualification of the Participant's interest in the
contract as a tax-sheltered annuity. If there is a distribution, the
Participant's Accumulation Value will be reduced by the amount of the
outstanding loan principle, reduced by any interest due, and reduced by
any applicable deferred sales charge on that amount.
6.02 LOAN RESTRICTIONS
The minimum loan amount is $1,000.
The maximum loan amount is the lesser of:
(a) $50,000; or
(b) one-half of the Participant's Accumulation Value less any applicable
deferred sales charge or, if greater, the Participant's Accumulation
Value up to the amount of $10,000, less the amount of interest that
would be charged during the first quarter that such loan would be
outstanding and less any applicable deferred sales charge.
14
In addition, loans are subject to the follow additional restrictions:
(a) Only one loan may be outstanding at any time,
(b) A period of at least three months is required between the repayment
of a loan and the application for a new loan,
(c) If there is an outstanding loan on the contract, then any
withdrawals will be limited to the Accumulation Value less the
outstanding loan principle, less any interest due, and less any
applicable deferred sales charge,
(d) A loan is not available if annuity payments have begun, and
(e) The TSA Loan Account portion of a Participant's contract in the
General Account may not be transferred to the Separate Account when
the loan is outstanding, provided, however, that a single transfer
from the TSA Loan Account to the Separate Account will be allowed
each calendar year. The amount remaining in the TSA Loan Account
must be equal to the amount of the loan outstanding plus the amount
of interest that would be charged during the next calendar quarter
on such loan plus any applicable deferred sales charge.
6.03 LOAN INTEREST RATE
The loan interest rate is variable and will be set quarterly on the first
day of each calendar quarter. It will apply to the outstanding loan
principal in that calendar quarter. This rate will not exceed the
greater of the "published monthly average" for the calendar month ending
two months before the beginning of the calendar quarter, or the "interest
rate in effect on the contract" plus 1%. The "published monthly average"
means the Moody's Composite Average of Yields on Bonds as published by
the Xxxxx'x Investors Service. The "interest rate in effect on the
contract" is the interest rate credited on portions of the Accumulation
Value allocated to the General Account.
The interest rate credited to allocations of Accumulation Value to the
General Account will also be credited to the TSA loan account, which will
have the effect of reducing the effective interest rate to be paid on the
loan to the difference between the interest rate paid on the loan and
that credited on the TSA loan account. A loan will have a permanent
effect on the Participant's Accumulation Value. The effect could be
either positive or negative, depending upon whether the investment
results of the sub-accounts are greater or lesser than the interest rate
credited on the TSA loan account.
6.04 LOAN REPAYMENT
Repayment must be made over a period of five years or less. Repayment
must be made in substantially equal payments. The loan repayment
schedule will require the level
15
amortization of the loan over the repayment period. Early repayment may
be made without penalty at any time.
As TSA loan amounts are repaid, those amounts are used to reduce the
loan. When the loan is repaid in full through early repayment or the
completion of the loan payments over the scheduled repayment period, then
the TSA Loan Account terminates, and the amounts remain in the General
Account. A Participant may reallocate these amounts among the General
Account and the sub-accounts of the Separate Account by exercising his or
her contract rights of transfer.
6.05 IMPACT OF WITHDRAWAL ON LOAN
If there is a loan and the total Participant's Accumulation Value is
withdrawn, the loan is due. If it is not repaid prior to the complete
withdrawal, the payment on withdrawal will be the Participant's
Accumulation Value less the outstanding loan principle, less any interest
due, and less any applicable deferred sales charges. In addition,
depending upon the Participant's circumstances, such a withdrawal may
result in income taxation, tax penalties, and disqualification of the
Participant's interest in the contract as a tax-sheltered annuity.
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SECTION 7. BENEFIT PROVISIONS
7.01 DEATH BENEFITS
In the event of the death of a Participant prior to the Annuity
Commencement Date, the beneficiary of that Participant will receive as a
death benefit the greater of: (a) the Participant's Accumulation Value,
determined as of the Valuation Date coincident with or next following the
date due proof of death is received by Minnesota Mutual at its Home
Office; or (b) the total of the Participant's purchase payments received
by Minnesota Mutual less any prior Participant withdrawals. The death
benefit will be paid in a single sum; or at the option of the beneficiary
the death benefit may be applied under Option 2, or Option 4 of the
Annuity Payment Options specified in Section 7.05, subject to the minimum
payment requirements of Section 7.04.
7.02 ANNUITY COMMENCEMENT DATE
The Contract Owner or the Participant shall notify Minnesota Mutual in
writing at its Home Office to begin Annuity Payments for a Participant,
specifying the date such Annuity Payments are to commence. Unless
otherwise permitted by the Plan, such date may be the first day of any
calendar month provided that it may not be earlier than 30 days following
the date such notice is given and provided further that it may not be
later than April 1st of the calendar year following the calendar year in
which the Participant attains age 70 1/2. In order to avoid tax
penalties, the Participant will have to meet certain minimum distribution
requirements.
7.03 ELECTION OF ANNUITY OPTION
The Contract Owner or the Participant may elect to have Annuity Payments
made under any of the Annuity Payment Options described in Section 7.05,
provided such election is received in writing by Minnesota Mutual at its
Home Office at least 30 days prior to the Annuity Commencement Date. If
no such election is received by Minnesota Mutual, Annuity Payments will
be made in accordance with Option 2A, a life income with a period certain
of 120 months.
7.04 APPLICATION OF ACCUMULATION VALUE
As of the Annuity Commencement Date, Minnesota Mutual shall apply the
Participant's Accumulation Value to provide Annuity Payments under the
Annuity Payment Option determined in accordance with Section 7.03;
provided, however, that the first payment under such Annuity Payment
Option must be at least $20.00 in amount. If such first payment would be
less than $20.00 in amount, the Participant's Accumulation Value will be
paid to the Participant in a lump sum as of his or her Annuity
Commencement Date, and the Participant shall thereafter have no further
rights under this contract. The requirement
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that the first payment be at least $20.00 shall be imposed separately for
the portion of the Annuity Payments payable as a Fixed Annuity and the
portion payable as a Variable Annuity under each of the sub-accounts of
the Separate Account.
7.05 ANNUITY PAYMENT OPTIONS
Option 1 - Life Annuity - An annuity payable during the lifetime of the
Annuitant and terminating with the last monthly payment preceding the
death of the Annuitant.
Option 2 - Life Annuity with a Period Certain of 120 months (Option 2A),
180 months (Option 2B), or 240 months (Option 2C) - An annuity payable
during the lifetime of the Annuitant, with the guarantee that if the
Annuitant dies before payments have been made for the Period Certain
elected, payments will continue to the beneficiary during the remainder
of such Period Certain. The beneficiary may elect to receive the
commuted value of the remaining guaranteed payments in a lump sum. The
value will be based on the then current dollar amount of one payment and
the same interest rate which served as a basis for the annuity.
Option 3 - Joint and Last Survivor Annuity - An annuity payable during
the joint lifetime of the Annuitant and a designated joint annuitant and
continuing thereafter during the remaining lifetime of the survivor.
Option 4 - Period Certain Annuity - An annuity payable for a Period
Certain of from 5 to 20 years, as elected. If the Annuitant dies before
payments have been made for the Period Certain elected, payments will
continue to the beneficiary during the remainder of such Period Certain.
The beneficiary may elect to receive the commuted value of the remaining
guaranteed payments in a lump sum. The value will be based on the then
current dollar amount of one payment and the same interest rate which
served as a basis for the annuity.
Payments under any of these Annuity Payment Options will be determined in
accordance with Section 7.07 for a Fixed Annuity and with Section 7.08
for a Variable Annuity. If, when Annuity Payments are elected, Minnesota
Mutual is using annuity purchase rates for this class of contract which
would result in larger Annuity Payments, they will be used instead of
those guaranteed in this contract.
Minnesota Mutual reserves the right to require proof satisfactory to it
of the age of a Annuitant and any joint annuitant prior to making the
first payment under any Annuity Payment Option. Once Annuity Payments
begin, the Annuity Payment Option may not be changed.
7.06 ELECTION OF ANNUITY FORM
Unless Minnesota Mutual shall be notified in writing to the contrary by
the Contract Owner or Participant at least 30 days prior to the Annuity
Commencement Date, General Account
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Accumulation Value will be applied to provide a Fixed Annuity and
Separate Account accumulation units will be applied to provide a Variable
Annuity.
7.07 DETERMINATION OF FIXED ANNUITY PAYMENT
The tables contained in this contract are used to determine the amount of
guaranteed fixed monthly Annuity Payments. They show the dollar amount
of the monthly payment which can be purchased with each $1,000 of
Participant Accumulation Value, after deduction of any applicable premium
taxes not previously deducted under the provisions of Section 2.03 and a
fee of $200. Amounts shown in the tables are based on the Progressive
Annuity Table with interest at the rate of 3.0% per annum, assuming
births in the year 1900, with an age setback of six years. The amount of
each payment depends upon the adjusted age of the Participant and any
joint annuitant. The adjusted age is determined from the actual age
nearest birthday at the time the first payment is due in the following
manner:
Calendar Year
of Birth Adjusted Age is Equal to -
-------------- ------------------
1900-1919 Actual Age
1920-1939 Actual Age Minus 1
1940-1959 Actual Age Minus 2
1960-1979 Actual Age Minus 3
1980 and Later Actual Age Minus 4
GUARANTEED MINIMUM DOLLAR AMOUNT OF FIXED MONTHLY PAYMENT WHICH IS PURCHASED
WITH EACH $1,000 OF VALUE APPLIED
Adjusted Age
of Annuitant Single Life Annuities
------------ -----------------------------------------------
Option 1 Option 2A Option 2B Option 2C
-------- --------- --------- ---------
50 $3.99 $3.97 $3.94 $3.89
51 4.05 4.03 4.00 3.95
52 4.13 4.10 4.06 4.00
53 4.20 4.17 4.13 4.06
54 4.28 4.25 4.20 4.12
55 4.37 4.33 4.27 4.18
56 4.46 4.41 4.35 4.25
57 4.55 4.50 4.42 4.31
58 4.65 4.59 4.51 4.38
59 4.76 4.69 4.59 4.44
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60 4.87 4.79 4.68 4.51
61 4.99 4.90 4.77 4.58
62 5.12 5.01 4.86 4.65
63 5.26 5.13 4.96 4.72
64 5.40 5.25 5.06 4.79
65 5.56 5.39 5.16 4.85
66 5.72 5.52 5.27 4.92
67 5.90 5.67 5.37 4.99
68 6.09 5.82 5.48 5.05
69 6.29 5.97 5.59 5.11
70 6.51 6.13 5.69 5.16
71 6.74 6.30 5.80 5.21
72 6.99 6.48 5.90 5.26
73 7.26 6.66 6.01 5.31
74 7.54 6.84 6.11 5.34
75 7.86 7.03 6.20 5.38
Option 3 -- Joint and Last Survivor Life Annuity
Adjusted Age of
Joint Annuitant* Adjusted Age of Annuitant*
---------------- ------------------------------------------------------------------
55 60 62 65 67 70 75
----- ----- ----- ----- ----- ----- -----
54 $3.80 $3.93 $3.98 $4.04 $4.08 $4.13 $4.19
59 3.95 4.14 4.21 4.32 4.38 4.46 4.57
61 4.00 4.22 4.31 4.43 4.50 4.61 4.75
64 4.07 4.34 4.44 4.60 4.70 4.83 5.03
66 4.12 4.41 4.53 4.71 4.82 4.99 5.23
69 4.17 4.50 4.65 4.86 5.01 5.23 5.56
74 4.25 4.64 4.81 5.09 5.29 5.60 6.11
* Dollar amounts of the monthly payments for ages not shown in this table will
be calculated on the same basis as those shown and may be obtained from us upon
request.
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Option 4 -- Fixed Period Annuity
Fixed Period Dollar Amount Fixed Period Dollar Amount
(Years) of Payment (Years) of Payment
------- ---------- ------- ----------
5 $17.91 13 $7.71
6 15.14 14 7.26
7 13.16 15 6.87
8 11.68 16 6.53
9 10.53 17 6.23
10 9.61 18 5.96
11 8.86 19 5.73
12 8.24 20 5.51
7.08 DETERMINATION OF VARIABLE ANNUITY PAYMENTS
The dollar amount of the first monthly variable Annuity Payment is
determined by applying the Participant's Separate Account Accumulation
Value (after deduction of any premium taxes not previously deducted) to a
rate per $1,000 which is based on the Progressive Annuity Table with
interest at the rate of 4.5% per annum, assuming births in the year 1900,
with an age setback of six years. The amount of the first payment
depends upon the annuity payment option selected and the adjusted age of
the annuitant and any joint annuitant. The adjusted ages shall be
determined using the same table as illustrated in Section 7.06 for
determination of fixed Annuity Payments. A number of annuity units is
then determined by dividing this dollar amount by the then current
annuity unit value. Thereafter, the number of annuity units remains
unchanged during the period of Annuity Payments. This determination is
made separately for each sub-account of the Separate Account. The number
of annuity units is based upon the available value in each sub-account as
of the date Annuity Payments are to begin.
The dollar amount of the second and later variable Annuity Payments is
equal to the number of annuity units determined for each sub-account
multiplied by the annuity unit value for that sub-account as of the due
date of the payment. This amount may increase or decrease from month to
month.
The dollar amounts determined for each sub-account will be aggregated for
purposes of making payment.
7.09 TRANSFERS DURING THE ANNUITY PERIOD
Participant amounts held as annuity reserves may be transferred among the
Variable Annuity sub-accounts during the annuity period. The change must
be made by written request. The annuitant and joint annuitant, if any,
must make such an election.
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A transfer will be made on the basis of annuity unit values. The
transfer will be effective for future Annuity Payments and will occur the
middle of the month preceding the next Annuity Payment affected by the
transfer request. The number of annuity units from the sub-account being
transferred will be converted to a number of annuity units in a new sub-
account. The Annuity Payment option will not change. The first Annuity
Payment after the transfer will be for the same amount as it would have
been without the transfer. The number of annuity units will be set at
that number of units which are needed to pay that same amount on the
transfer date.
Transfers of annuity reserves from any sub-account must be at least equal
to: 1) $5,000; or 2) the entire amount of reserve remaining in that sub-
account. In addition, Annuity Payments must have been in effect for a
period of 12 months before a change may be made. Such transfers are
allowed only once every 12 months. The written request for transfer must
be received by Minnesota Mutual at least 30 days in advance of the due
date of the Annuity Payment subject to the transfer.
Amounts held as reserves to pay a Variable Annuity may also be
transferred to provide a Fixed Annuity from the General Account, subject
to the dollar amount and frequency limitations described above. The
amount transferred will be applied to provide a Fixed Annuity amount of
the same annuity option based upon the adjusted age of the annuitant and
any joint annuitant at the time of the transfer. Once fixed Annuity
Payments begin, the annuity reserves may not be transferred back to
provide a Variable Annuity.
7.10 LUMP SUM SETTLEMENT
By written notice to Minnesota Mutual by the Contract Owner at least 30
days prior to the Annuity Commencement Date, a lump sum settlement of a
Participant's Accumulation Value decreased by any applicable deferred
sales charge may be elected in lieu of the application of such value to
provide Annuity Payments for the Participant under an Annuity Payment
Option. After such lump sum settlement has been made, the Participant
shall have no further rights under this contract.
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SECTION 8. SUSPENSION AND TERMINATION
8.01 SUSPENSION OF PURCHASE PAYMENTS
The Contract Owner may suspend purchase payments at any time by giving 60
days written notice to Minnesota Mutual of such suspension. The
suspension may be with respect to all Participants, or only with respect
to those Participants in such class or classes as are specified by the
Contract Owner.
Except as to those Participants for whom purchase payments are suspended,
the contract shall continue to operate during a period of suspension as
if such suspension had not occurred. Purchase payments may be resumed at
any time upon written notice to Minnesota Mutual by the Contract Owner.
8.02 TERMINATION OF CONTRACT
The contract may be terminated by the Contract Owner as of a date
specified in a written notice to Minnesota Mutual, provided that the date
of termination specified by the Contract Owner may not be earlier than
the day Minnesota Mutual receives the notice at its home office and,
provided further, if no date is specified, the date of termination shall
be the Valuation Date next following the date Minnesota Mutual receives
the written notice at its home office.
The contract may be terminated by Minnesota Mutual as of a date specified
in a written notice to the Contract Owner in the event that:
(a) The Plan is no longer deemed to be a "qualified plan" under Section
403(b) of the Internal Revenue Code or other section of the Code
allowing similar tax treatment; or
(b) The Plan is terminated; or
(c) Minnesota Mutual determines that because of a change in the Plan or
in the benefits to be provided thereunder, it is necessary to amend
or modify this contract, and the Contract Owner does not assent to
the amendment or modification.
8.03 EFFECT OF TERMINATION
After termination, no further purchase payments will be accepted by
Minnesota Mutual under this contract.
Termination of the contract will have no effect on Participants as to
whom Annuity Payments have commenced. As to other Participants,
Participant Accumulation Values shall continue to be maintained under the
contract until: (a) withdrawn to provide benefits
23
under the conditions of Section 5.01; (b) applied to provide Annuity
Payments; or (c) transferred to the Contract Owner as provided in Section
8.04 or Section 8.05. While Participant Accumulation Values are
maintained under this contract, the withdrawal and transfer provisions
will continue to apply on the same basis as prior to termination.
If the Participant Accumulation Values are to be transferred to the
Contract Owner, Minnesota Mutual shall determine a liquidation date which
shall be a Valuation Date not later than 180 days after the date of
termination.
8.04 LUMP SUM TERMINATION VALUE
The lump sum termination value will be equal to the sum of all
Participant's Separate Account Accumulation Values decreased by any
applicable deferred sales charge plus the lesser of:
a) The sum of all Participant's General Account Accumulation Values
decreased by any applicable deferred sales charge; or
b) The sum of all Participant's General Account Market Values.
A market value will be determined in aggregate for Participant General
Account Accumulation Values based on the following formula:
Market value = (Participant General Account x
(1 + G)to the power 6
--------------------------------------
Accumulation Value less any applicable
deferred sales charge) x
(1 + C + .0025) to the power of 6
where G = the greater of:
(a) the weighted interest crediting rate in effect on all Participant
General Account Accumulation Values under this contract as of the
liquidation date; or
(b) the weighted interest crediting rate in effect on all Participant
General Account Accumulation Values at any time during the six month
period preceding the liquidation date.
C = the lesser of:
(a) the current interest crediting rate in effect for new purchase
payments to this contract as of the liquidation date; or
(b) the interest crediting rate in effect for new purchase payments to
this contract as of six months prior to the liquidation date,
adjusted by the interest yield on a 10 year U.S. Treasury note as of
the liquidation date, less the yield six months prior to the
liquidation date.
However, Minnesota Mutual guarantees that the Participant General
Account Market Value will not be less than the sum of all
allocations made to the General Account by or on behalf of each
Participant, accumulated at 3% per annum, less any Participant
withdrawals, any
24
applicable deferred sales charge and less any transfers of General
Account accumulation values to the Group Variable Annuity Account.
Within seven days after the termination of the contract, Minnesota Mutual
will make payment to the Contract Owner of the Separate Account
Accumulation Value held on behalf of each Participant. However,
Minnesota Mutual reserves the right to defer payment for any period
during which the New York Stock Exchange is closed for trading or when
the Securities and Exchange Commission has determined that a state of
emergency exists which may make such determination and payment
impractical.
Minnesota Mutual will make payment to the Contract Owner of the General
Account portion of the lump sum termination value on the liquidation
date.
8.05 INSTALLMENT TERMINATION VALUE
Under the installment method of liquidation, Minnesota Mutual will make
payment to the Contract Owner of the Separate Account Accumulation Value
decreased by any applicable deferred sales charge held on behalf of each
Participant within seven days following the termination of the contract.
However, Minnesota Mutual reserves the right to defer payment for any
period during which the New York Stock Exchange is closed for trading or
when the Securities and Exchange Commission has determined that a state
of emergency exists which may make such determination and payment
impractical.
The General Account portion of each Participant's Accumulation Value will
be paid to the Contract Owner in substantially equal installments over a
five year period with each installment decreased by any applicable
deferred sales charge. The Contract Owner may elect annual or quarterly
installments with the first installment due as of the liquidation date
and the last installment due at the end of the five year period. The
amount of each installment will be determined by dividing the total
Participant General Account Accumulation Values as of each installment
date by the number of remaining installments including the installment
which is being calculated, determining the Accumulation Value
attributable to each individual participant, and then applying any
applicable deferred sales charge to that Participant's Accumulation Value
to determine the actual amount payable. During the installment period,
Participant General Account Accumulation Values will continue to earn
interest at a rate determined by using the same methodology for
determining such rate in effect immediately prior to termination. The
gross yield on assets, before reduction for expense margin, assumed in
employing the methodology will be determined in the same way as
immediately prior to termination. This rate shall not be less than the
hypothetical yield for a portfolio of five-year treasuries would be under
the same historical cash flow for the General Account. The expense
margin assumed in employing the methodology will be no greater than the
expense margin used immediately prior to termination plus .25%.
8.06 FINAL TERMINATION
This contract shall finally terminate when each Participant's
Accumulation Value is reduced to zero and Minnesota Mutual shall have
completed all payments due hereunder.
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SECTION 9. GENERAL PROVISIONS
9.01 CONTRACT
This contract is delivered in, and shall be construed according to the
laws of the jurisdiction specified on Page 1 hereof. With respect to all
transactions regarding this contract, except as may be otherwise
specifically provided, Minnesota Mutual may deal with the Contract Owner
on the basis that the Contract Owner has full ownership and control of
the contract. No obligation under the Plan is assumed by Minnesota
Mutual, nor shall the Plan or any amendment thereto be construed to amend
or modify this contract in any way except with the express written
consent of Minnesota Mutual.
9.02 MODIFICATION OF CONTRACT
This contract may be modified at any time by written agreement between
Minnesota Mutual and the Contract Owner. However, no such modification
will adversely affect the rights of any Participant unless the
modification is made to comply with a law or government regulation.
No person except the President, a Vice President, the Secretary, or an
Assistant Secretary of Minnesota Mutual has authority on behalf of
Minnesota Mutual to modify the contract or to waive any requirement of
the contract. Minnesota Mutual shall not be bound by any promise or
representation made by or to any agent or person other than as above.
9.03 BENEFICIARY
A Participant, or Annuitant where Annuity Payments have commenced, may
designate a beneficiary to receive any amount which may become payable to
such beneficiary under the terms of the Plan. The designation may be
made or changed by the Participant or Annuitant at any time during his or
her lifetime by filing satisfactory written notice with Minnesota Mutual
at its Home Office. The new designation shall take effect only upon
being recorded by Minnesota Mutual at its Home Office. When so recorded,
even if the Participant or Annuitant is not then living, it shall take
effect as of the date the notice was signed, subject to any payment made
by Minnesota Mutual before recording the change.
The interest of any beneficiary who dies before the Participant or
Annuitant shall terminate at the death of that beneficiary. If the
interest of all designated beneficiaries has terminated, any proceeds
payable at the Participant's or Annuitant's death shall be paid to the
Participant's or Annuitant's estate.
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9.04 PARTICIPATION IN DIVISIBLE SURPLUS
This is a participating contract. The portion, if any, of the divisible
surplus of Minnesota Mutual accruing upon this contract shall be
determined annually by Minnesota Mutual and shall be credited to the
contract on such basis as is determined by Minnesota Mutual.
9.05 CERTIFICATES AND STATEMENTS
Minnesota Mutual shall make available to each Participant a certificate
which describes the Participant's rights and privileges under this
contract. Minnesota Mutual shall issue to each Participant or Annuitant
as to whom Annuity Payments are provided hereunder an individual
certificate setting forth the amount and terms of such Annuity Payments.
Before annuity payments have commenced, at least once in each Contract
Year, Minnesota Mutual will furnish to the Participant a statement of
each Participant's Individual Account, the current accumulation unit
value, and each Participant's Accumulation Value. Such statement shall
be as of a date within two months of the mailing of the statement.
9.06 MISSTATEMENT OF AGE
If a person's age has been misstated, the amount payable under this
contract as an annuity will be that amount which would have been paid
based upon that person's correct age. In the case of an overpayment,
Minnesota Mutual may either deduct the required amount from that person's
future annuity payments under this contract; or, require the person to
pay Minnesota Mutual in cash; or both may be done until Minnesota Mutual
has been fully repaid. In the case of an underpayment, Minnesota Mutual
will pay the required amount with the next payment.
9.07 ASSIGNMENT
This contract may not be assigned, sold, transferred, discounted or
pledged by the Participant as collateral for a loan or as security for
the performance of an obligation or for any other purpose. In addition,
any Accumulation Value attributable to this contract is non-forfeitable.
To the maximum extent permitted by law, the Participant's Accumulation
Value and any benefits payable under this contract shall be exempt from
the claims of creditors of the Participant.
9.08 CONTRACT VALUES
Amounts payable at death, withdrawal benefits, Accumulation Values and
the annuity benefit described in this contract are not less than the
minimum benefits required by any statute of the state in which this
contract is delivered.
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9.09 ANNUITY RESERVES
Reserves held by Minnesota Mutual for Annuity Payments under this
contract shall not be less than those reserves required by the law in the
state in which this contract is delivered.
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