EXHIBIT 99.B.4a
[LOGO OF AETNA APPEARS HERE] AETNA LIFE INSURANCE AND ANNUITY COMPANY
Home Office: 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
(000) 000-0000
Aetna Life Insurance and Annuity Company, herein
called Aetna, agrees to pay the benefits stated in
the Contract.
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CERTIFICATE OF To the Certificate Holder:
GROUP ANNUITY
COVERAGE Aetna certifies that coverage is in force for you
under the stated Group Annuity Contract and
Certificate numbers. All data shown here is taken
from Aetna records and is based upon information
furnished by you.
This Certificate is a summary of the Group Annuity
Contract provisions. It replaces any and all prior
certificates, riders, or amendments issued to you
under the stated Contract and Certificate numbers.
This Certificate is for information only and is
not a part of the Contract.
THE VARIABLE FEATURES OF THE GROUP CONTRACT ARE
DESCRIBED IN PARTS III AND IV.
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RIGHT TO You may cancel this Certificate within 10 days of
CANCEL receiving it by returning this Certificate 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 Certificate 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.
Xxx Xxxxxxx Xxxxxxx X. Xxxxxxxxx
President Secretary
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Contract Holder Group Annuity Contract No.
SPECIMEN SPECIMEN
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Your Name Certificate No.
XXXX XXX SPECIMEN
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Annuitant Name Type of Plan
XXXX XXX XX. FLEXIBLE PREMIUM
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ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON
INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT. 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.
1
SPECIFICATIONS
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GUARANTEED There are guaranteed interest rates for amounts held in the AG Account (See Contract Schedule I).
INTEREST RATE
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DEDUCTIONS FROM There will be deductions for mortality and expense risks and administrative fees (see Contract
THE SEPARATE Schedule I and II).
ACCOUNT
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DEDUCTION FROM Purchase Payment is subject to a deduction for premium taxes, if any (see 3.01).
PURCHASE PAYMENT
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SURRENDER There will be a charge deducted upon surrender (see Contract Schedule I).
FEE
2
CONTRACT SCHEDULE I
ACCUMULATION PERIOD
SEPARATE ACCOUNT
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SEPARATE ACCOUNT: Variable Annuity Account B
CHARGES TO SEPARATE A daily charge is deducted from any portion of the Current Value allocated to the Separate Account.
ACCOUNT: The deduction is the daily equivalent of the annual effective percentage shown in the following chart.
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
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Total Separate Account
Charges 1.40%
SEPARATE ACCOUNT FUNDS: During the Accumulation Period the Funds available with this Contract are:
Aetna Variable Fund
Aetna Income Shares
Aetna Variable Encore Fund
Aetna Investment Advisers Fund, Inc.
Aetna Ascent Variable Portfolio
Aetna Crossroads Variable Portfolio
Aetna Legacy Variable Portfolio
The Xxxxx American Fund - Xxxxx American Balanced Portfolio
The Xxxxx American Fund - Xxxxx American Income and Growth Portfolio
The Xxxxx American Fund - Xxxxx American Growth Portfolio
The Xxxxx American Fund - Xxxxx American Midcap Growth Portfolio
The Xxxxx American Fund - Xxxxx American Leveraged Allcap Portfolio
The Xxxxx American Fund - Xxxxx American Small Capitalization Portfolio
Fidelity Investments Variable Insurance Products Fund - High Income Portfolio
Fidelity Investments Variable Insurance Products Fund - Equity-Income Portfolio
Fidelity Investments Variable Insurance Products Fund - Growth Portfolio
Fidelity Investments Variable Insurance Products Fund - Overseas Portfolio
Fidelity Investments Variable Insurance Products Fund II - Investment Grade Bond Portfolio
Fidelity Investments Variable Insurance Products Fund II - Asset Manager Portfolio
Fidelity Investments Variable Insurance Products Fund II - Index 500 Portfolio
Fidelity Investments Variable Insurance Products Fund II - Contrafund Portfolio
Insurance Management Series - Corporate Bond Fund
3
CONTRACT SCHEDULE I (CONT'D)
ACCUMULATION PERIOD
SEPARATE ACCOUNT (CONT'D)
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SEPARATE ACCOUNT FUNDS Insurance Management Series - Equity Growth and Income Fund
(CONT'D): Insurance Management Series - International Stock Fund
Insurance Management Series - U.S. Government
Bond Fund Insurance Management Series - Utility Fund
Janus Aspen Series - Aggressive Growth Portfolio
Janus Aspen Series - Balanced Portfolio
Janus Aspen Series - Flexible Income Portfolio
Janus Aspen Series - Growth Portfolio
Janus Aspen Series - Short-Term Bond Portfolio
Janus Aspen Series - Worldwide Growth Portfolio
Lexington Emerging Markets Fund
Lexington Natural Resources Trust
TCI Portfolios, Inc. - TCI International
TCI Portfolios, Inc. - TCI Growth
TCI Portfolios, Inc. - TCI Balanced
ALIAC GUARANTEED ACCOUNT (AG ACCOUNT)
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MINIMUM
GUARANTEED 3.0%.
INTEREST RATE (effective
annual rate of return):
SEPARATE ACCOUNT AND AG ACCOUNT
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MINIMUM INITIAL PURCHASE $5,000
PAYMENT:
MAXIMUM INITIAL PURCHASE $500,000
PAYMENT WITHOUT HOME
OFFICE APPROVAL:
TRANSFERS: An unlimited number of Transfers may be made during the Accumulation Period. Aetna allows 12 free
Transfers in any calendar year. Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
MINIMUM TRANSFER $500
AMOUNT:
MAINTENANCE FEE: The annual Maintenance Fee is $30. If the Current Value is $50,000 or more on the date the Maintenance
Fee is to be deducted, the Maintenance Fee is $0.
4
CONTRACT SCHEDULE I (CONT'D)
ACCUMULATION PERIOD
SEPARATE ACCOUNT AND AG ACCOUNT (CONT'D)
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SURRENDER FEE: For each surrender, the Surrender Fee will be determined as follows:
Surrender Fee
Length of Time from Deposit (as percentage of
of Net Purchase Payment (Years) Net Purchase Payment)
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
SYSTEMATIC WITHDRAWAL The specified payment or specified percentage may not be greater than 10% of the Current Value at
OPTION (SWO) time of election.
PERCENTAGE:
SWO MINIMUM INITIAL $25,000
CURRENT VALUE:
SWO MINIMUM PAYMENT $500
AMOUNT:
ESTATE CONSERVATION $25,000
OPTION (ECO) MINIMUM
INITIAL CURRENT VALUE:
See 1. GENERAL DEFINITIONS for explanations.
5
CONTRACT SCHEDULE I
ACCUMULATION PERIOD
SEPARATE ACCOUNT
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SEPARATE ACCOUNT: Variable Annuity Account B
CHARGES TO SEPARATE A daily charge is deducted from any portion of the Current Value allocated to the Separate Account.
ACCOUNT: The deduction is the daily equivalent of the annual effective percentage shown in the following chart.
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
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Total Separate Account
Charges 1.40%
SEPARATE ACCOUNT FUNDS: During the Accumulation Period the Funds available with this Contract are:
Aetna Variable Fund
Aetna Income Shares
Aetna Variable Encore Fund
Aetna Investment Advisers Fund, Inc.
Aetna Ascent Variable Portfolio
Aetna Crossroads Variable Portfolio
Aetna Legacy Variable Portfolio
Janus Aspen Series - Aggressive Growth Portfolio
Janus Aspen Series - Flexible Income Portfolio
Janus Aspen Series - Growth Portfolio
Lexington Emerging Markets Fund
Lexington Natural Resources Trust
TCI Portfolios, Inc. - TCI International
TCI Portfolios, Inc. - TCI Growth
TCI Portfolios, Inc. - TCI Balanced
ALIAC GUARANTEED ACCOUNT (AG ACCOUNT)
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MINIMUM GUARANTEED 3.0%.
INTEREST RATE (effective
annual rate of return):
6
CONTRACT SCHEDULE I (CONT'D)
ACCUMULATION PERIOD
SEPARATE ACCOUNT AND AG ACCOUNT
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MINIMUM INITIAL PURCHASE $5,000
PAYMENT:
MAXIMUM INITIAL PURCHASE $500,000
PAYMENT WITHOUT HOME
OFFICE APPROVAL:
TRANSFERS: An unlimited number of Transfers may be made
during the Accumulation Period. Aetna allows 12
free Transfers in any calendar year. Thereafter,
Aetna reserves the right to charge $10 for each
subsequent Transfer.
MINIMUM TRANSFER $500
AMOUNT:
MAINTENANCE FEE: The annual Maintenance Fee is $30. If the
Current Value is $50,000 or more on the date the
Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
SURRENDER FEE: For each surrender, the Surrender Fee will be
determined as follows:
Surrender Fee
Length of Time from Deposit (as percentage of
of Net Purchase Payment (Years) Net Purchase Payment)
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
SYSTEMATIC WITHDRAWAL The specified payment or specified percentage
OPTION (SWO) may not be greater than 10% of the Current Value
PERCENTAGE: at time of election.
SWO MINIMUM INITIAL $25,000
CURRENT VALUE:
7
CONTRACT SCHEDULE I (CONT'D)
ACCUMULATION PERIOD
SEPARATE ACCOUNT AND AG ACCOUNT (CONT'D)
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SWO MINIMUM PAYMENT $500
AMOUNT:
ESTATE CONSERVATION $25,000
OPTION (ECO) MINIMUM
INITIAL CURRENT VALUE:
See 1. GENERAL DEFINITIONS for explanations.
8
CONTRACT SCHEDULE I
ACCUMULATION PERIOD
SEPARATE ACCOUNT
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SEPARATE ACCOUNT: Variable Annuity Account B
CHARGES TO SEPARATE A daily charge is deducted from any portion of the Current Value allocated to the Separate Account.
ACCOUNT: The deduction is the daily equivalent of the annual effective percentage shown in the following
chart.
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
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Total Separate Account
Charges 1.40%
SEPARATE ACCOUNT FUNDS: During the Accumulation Period the Funds available with this Contract are:
Insurance Management Series - Equity Growth and Income Fund
Insurance Management Series - Utility Fund
Insurance Management Series - Prime Money Fund
Insurance Management Series - U.S. Government Bond Fund
Insurance Management Series - Corporate Bond Fund
Insurance Management Series - International Stock Fund
ALIAC GUARANTEED ACCOUNT (AG ACCOUNT)
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MINIMUM GUARANTEED 3.0%.
INTEREST RATE (effective
annual rate of return):
9
CONTRACT SCHEDULE I (CONT'D)
ACCUMULATION PERIOD
SEPARATE ACCOUNT AND AG ACCOUNT
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MINIMUM INITIAL PURCHASE $5,000
PAYMENT:
MAXIMUM INITIAL PURCHASE $500,000
PAYMENT WITHOUT HOME
OFFICE APPROVAL:
TRANSFERS: An unlimited number of Transfers may be made during the Accumulation Period. Aetna allows 12 free
Transfers in any calendar year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
MINIMUM TRANSFER $500
AMOUNT:
MAINTENANCE FEE: The annual Maintenance Fee is $30. If the Current Value is $50,000 or more on the date the
Maintenance Fee is to be deducted, the Maintenance Fee is $0.
SURRENDER FEE: For each surrender, the Surrender Fee will be determined as follows:
Surrender Fee
Length of Time from Deposit of Net (as percentage of
Purchase Payment (Years) Net Purchase Payment)
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
SYSTEMATIC WITHDRAWAL The specified payment or specified percentage may not be greater than 10% of the Current Value at
OPTION (SWO) time of election.
PERCENTAGE:
SWO MINIMUM INITIAL $25,000
CURRENT VALUE:
10
CONTRACT SCHEDULE I (CONT'D)
ACCUMULATION PERIOD
SEPARATE ACCOUNT AND AG ACCOUNT (CONT'D)
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SWO MINIMUM PAYMENT $500
AMOUNT:
ESTATE CONSERVATION $25,000
OPTION (ECO) MINIMUM
INITIAL CURRENT VALUE:
See 1. GENERAL DEFINITIONS for explanations.
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CONTRACT SCHEDULE II
ANNUITY PERIOD
SEPARATE ACCOUNT
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CHARGES TO SEPARATE A daily charge at an annual effective rate of 1.25% for Annuity mortality and expense risks. The
ACCOUNT: administrative charge is established upon election of an Annuity option. This charge will not exceed
0.25%.
WARIABLE ANNUITY ASSUMED If a Variable Annuity is chosen, an assumed annual net return rate of 5.0% may be elected. If 5.0%
ANNUAL NET RETURN RATE: is not elected, Aetna will use an assumed annual net return rate of 3.5%.
The assumed annual net return rate factor for 3.5% per year is 0.9999058.
The assumed annual net return rate factor for 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.
FIXED ANNUITY
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MINIMUM GUARANTEED 3.0%
INTEREST RATE (effective
annual rate of return):
See 1. GENERAL DEFINITIONS for explanations.
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TABLE OF CONTENTS
I. GENERAL DEFINITIONS
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PAGE
1.01 Account....................................................................10
1.02 Accumulation Period........................................................10
1.03 Adjusted Current Value.....................................................10
1.04 ALIAC Guaranteed Account (AG Account)......................................10
1.05 Annuitant..................................................................10
1.06 Annuity....................................................................10
1.07 Beneficiary................................................................10
1.08 Certificate Holder.........................................................10
1.09 Code.......................................................................10
1.10 Contract...................................................................10
1.11 Contract Holder............................................................10
1.12 Current Value..............................................................11
1.13 Deposit Period.............................................................11
1.14 Dollar Cost Averaging......................................................11
1.15 Fixed Annuity..............................................................11
1.16 Fund(s)....................................................................11
1.17 General Account............................................................11
1.18 Guaranteed Rate -- AG Account..............................................11
1.19 Guaranteed Term............................................................11
1.20 Guaranteed Term(s) Groups..................................................12
1.21 Maintenance Fee............................................................12
1.22 Market Value Adjustment (MVA)..............................................12
1.23 Matured Term Value.........................................................12
1.24 Matured Term Value Transfer................................................12
1.25 Maturity Date..............................................................12
1.26 Net Purchase Payment(s)....................................................12
1.27 Nonunitized Separate Account...............................................12
1.28 Purchase Payment(s)........................................................12
1.29 Reinvestment...............................................................12
1.30 Separate Account...........................................................13
1.31 Surrender Value............................................................13
1.32 Transfers..................................................................13
13
PAGE
1.33 Valuation Period (Period)..................................................13
1.34 Variable Annuity...........................................................13
II. GENERAL PROVISIONS
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2.01 Change of Contract.........................................................13
2.02 Change of Fund(s)..........................................................14
2.03 Nonparticipating Contract..................................................14
2.04 Payments and Elections.....................................................15
2.05 State Laws.................................................................15
2.06 Control of Contract........................................................15
2.07 Designation of Beneficiary.................................................15
2.08 Misstatements and Adjustments..............................................16
2.09 Incontestability...........................................................16
2.10 Grace Period...............................................................16
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
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3.01 Net Purchase Payment.......................................................16
3.02 Certificate Holder's Account...............................................16
3.03 Fund(s) Record Units -- Separate Account...................................17
3.04 Net Return Factor(s) -- Separate Account...................................17
3.05 Fund Record Unit Value -- Separate Account.................................17
3.06 Market Value Adjustment....................................................18
3.07 Transfer of Current Value from the Funds or ALIAC Guaranteed Account.......19
3.08 Notice to the Certificate Holder...........................................19
3.09 Loans......................................................................19
3.10 Systematic Withdrawal Option (SWO).........................................19
3.11 Death Benefit Amount.......................................................21
3.12 Death Benefit Options Available to Beneficiary.............................23
3.13 Liquidation of Surrender Value.............................................24
3.14 Surrender Fee..............................................................25
3.15 Payment of Surrender Value.................................................25
14
IV. ANNUITY PROVISIONS
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PAGE
4.01 Choices to be Made.........................................................25
4.02 Terms of Annuity Options...................................................26
4.03 Death of Annuitant/Beneficiary.............................................27
4.04 Fund(s) Annuity Units -- Separate Account..................................28
4.05 Fund(s) Annuity Unit Value -- Separate Account.............................28
4.06 Annuity Net Return Factor(s) -- Separate Account...........................29
4.07 Annuity Options............................................................29
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I. GENERAL DEFINITIONS
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1.01 ACCOUNT: A record established for each Certificate
Holder to maintain the value of the Net
Purchase Payment held on his/her behalf
during the Accumulation Period.
1.02 ACCUMULATION PERIOD: The period during which the Net Purchase
Payment(s) are applied to a Contract to
provide future Annuity payment(s).
1.03 ADJUSTED CURRENT VALUE: The Current Value of a Contract plus or minus
any aggregate ALIAC Guaranteed Account MVA,
if applicable. (See 1.21)
1.04 ALIAC GUARANTEED An accumulation option where Aetna
ACCOUNT guarantees stipulated rate(s) of interest for
(AG ACCOUNT): specified periods of time. All assets of
Aetna, including amounts in the Nonunitized
Separate Account, are available to meet the
guarantees under the AG Account.
1.05 ANNUITANT: The person whose life is measured for
purposes of the Guaranteed Death Benefit and
the duration of Annuity payments under this
Contract.
1.06 ANNUITY: Payment of an income:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.07 BENEFICIARY: The individual or estate entitled to receive
any payment from the Contract upon the death
of the Annuitant, or if the Certificate
Holder is different from the Annuitant, upon
the death of the Certificate Holder. If the
Account is held by joint Certificate Holders,
the survivor will be deemed the designated
Beneficiary and any other Beneficiary on
record will be treated as the contingent
Beneficiary.
1.08 CERTIFICATE HOLDER: A person who purchases an interest in the
Contract as evidenced by a certificate. Aetna
reserves the right to limit ownership to
natural persons. If more than one Certificate
Holder owns an account, each Certificate
Holder will be a joint Certificate Holder.
Any joint Certificate Holder must be the
spouse of the other joint Certificate Holder.
Joint Certificate Holders have joint
ownership rights and both must authorize
exercising any ownership rights unless Aetna
allows otherwise. If the account is owned by
a nonnatural person, the death benefit will
be paid at the death of the Annuitant.
1.09 CODE: The Internal Revenue Code of 1986, as it may
be amended from time to time.
1.10 CONTRACT: This agreement between Aetna and the Contract
Holder.
1.11 CONTRACT HOLDER: The entity to which a group Contract is
issued.
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1.12 CURRENT VALUE: As of the most recent Valuation Period, the
Net Purchase Payment and any additional
amount deposited pursuant to 3.12 plus any
interest added to the portion allocated to
the ALIAC Guaranteed Account; and plus or
minus the investment experience of the
portion allocated to the Funds since deposit;
less all Maintenance Fees deducted, any
amounts surrendered and any amounts applied
to an Annuity.
1.13 DEPOSIT PERIOD: A calendar week, a calendar month, a calendar
quarter, or any other period of time
specified by Aetna during which the Net
Purchase Payment(s), Transfers or
Reinvestments are accepted into the ALIAC
Guaranteed Account for one or more Guaranteed
Terms. Aetna reserves the right to extend the
Deposit Period.
1.14 DOLLAR COST AVERAGING: A program that permits the Certificate Holder
to systematically transfer amounts from any
of the Funds and the one-year AG Account
Guaranteed Term to any of the Funds by
completing the appropriate section of the
enrollment form or a Dollar Cost Averaging
election form.
1.15 FIXED ANNUITY: An Annuity with payments that do not vary in
amount.
1.16 FUND(S): The open-end management investment companies
(mutual funds) in which the Separate Account
invests (see Contract Schedule I for the
specific fund options).
1.17 GENERAL ACCOUNT: The account holding the assets of Aetna,
other than those assets held in Aetna's
separate accounts.
1.18 GUARANTEED RATE -- Aetna will declare the interest rate
AG ACCOUNT: applicable to a specific Guaranteed Term at
the start of the Deposit Period for that
Guaranteed Term. The rate is guaranteed by
Aetna for that Deposit Period and the ensuing
Guaranteed Term. The Guaranteed Rate is an
annual effective yield. That is, interest is
credited daily at a rate that will produce
the Guaranteed Rate over the period of a
year. No Guaranteed Rate will ever be less
than the Minimum Guaranteed Rate shown on
Contract Schedule I.
1.19 GUARANTEED TERM: The period of time for which the AG Account
Guaranteed Rate is guaranteed on the Net
Purchase Payment, Transfers and Reinvestments
made into a current Deposit Period for the AG
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.
During a Deposit Period, Aetna may make
available any number of Guaranteed Terms. The
Contract Holder may allocate Net Purchase
Payments and Transfers into any or all of the
available Guaranteed Terms.
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1.20 GUARANTEED TERM(S) All AG Account Guaranteed Term(s) with
GROUPS: the same length of time from the close of the
Deposit Period until the designated Maturity
Date.
1.21 MAINTENANCE FEE: The Maintenance Fee (see Contract Schedule I)
will be deducted during the Accumulation
Period from the Current Value on each
anniversary of the date the Contract is
established and upon the surrender of the
entire Contract.
1.22 MARKET VALUE ADJUSTMENT An adjustment that may apply to an amount
(MVA): withdrawn or transferred from an AG 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 3.06. The adjustment is expressed as
a percentage of each dollar being withdrawn
or transferred.
1.23 MATURED TERM VALUE: The amount payable on an AG Account
Guaranteed Term's Maturity Date.
1.24 MATURED TERM VALUE During the calendar month following
TRANSFER: an AG Account Maturity Date, the Certificate
Holder may notify Aetna's Home Office in
writing to Transfer or surrender all or part
of the Matured Term Value, plus interest at
the new Guaranteed Rate accrued thereon, from
the AG Account without an MVA. This provision
only applies to the first such written
request received from the Certificate Holder
during this period for any Matured Term
Value.
1.25 MATURITY DATE: The last day of an AG Account Guaranteed
Term.
1.26 NET PURCHASE PAYMENT: The Purchase Payment less premium taxes, as
applicable.
1.27 NONUNITIZED SEPARATE A separate account set up by Aetna under
ACCOUNT: Title 38, Section 38a-433, of the Connecticut
General Statutes, that holds assets for AG
Account Terms. There are no discrete units
for this Account. The Certificate Holder 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. These assets may be
chargeable with liabilities arising out of
any other business of Aetna.
1.28 PURCHASE PAYMENT(S): Payment(s) accepted by
Aetna at its Home Office. Aetna reserves the
right to refuse to accept any Purchase
Payment at any time for any reason. No
advance notice will be given to the Contract
Holder.
Aetna reserves the right to refuse to accept
any Purchase Payment at any time for any
reason. No advance notice will be given to
the Contract Holder or Certificate Holder.
1.29 REINVESTMENT: Aetna will mail a notice to the Contract
Holder at least 18 calendar days and not more
than 45 days before a Guaranteed Term's
Maturity Date.
18
1.29 REINVESTMENT: This notice will contain the Terms available
(CONT'D) during current Deposit (CONT'D) Periods with
their Guaranteed Rate, and projected Matured
Term Value. If no specific direction is given
by the Certificate Holder prior to the
Maturity Date, each Matured Term Value will
be reinvested in the current Deposit Period
for a Guaranteed Term of the same duration.
If a Guaranteed Term of the same duration is
unavailable, each Matured Term Value will
automatically be reinvested in the current
Deposit Period for the next shortest
Guaranteed Term available. If no shorter
Guaranteed Term is available, the next longer
Guaranteed Term will be used. Aetna will mail
a confirmation statement to the Certificate
Holder the next business day after the
Maturity Date. This notice will sate the
Guaranteed Term and Guaranteed Rate which
will apply to the reinvested Matured Term
Value.
1.30 SEPARATE ACCOUNT: A separate account that buys and holds shares
of the Fund(s). Income, gains or losses,
realized or unrealized, are credited or
charged to the Separate Account without
regard to other income, gains or losses of
Aetna. Aetna owns the assets held in the
Separate Account and is not a trustee as to
such amounts. This Separate Account generally
is not guaranteed and is held at market
value. The assets of the Separate Account, to
the extent of reserves and other contract
liabilities of the Account, shall not be cha
rged with other Aetna liabilities.
1.31 SURRENDER VALUE: The amount payable by Aetna upon the
surrender of any portion of an account.
1.32 TRANSFERS: The movement of invested amounts among the
available Fund(s) and the AG Account under
this Contract during the Accum ulation
Period.
1.33 VALUATION PERIOD (PERIOD): The period of time for which a Fund
determines its net asset value, usually from
4:15 p.m. Eastern time each day the New York
Stock Exchange is open until 4:15 p.m. the
next such day, or such other day that one or
more of the Funds determines its net asset
value.
1.34 VARIABLE ANNUITY: An Annuity with payments that vary with the
net investment results of one or more Funds
held under the Separate Account.
II. GENERAL PROVISIONS
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2.01 CHANGE OF CONTRACT: Only an authorized officer of Aetna may
change the terms of the contract. Aetna will
notify the Contract Holder in writing at
least 30 days before the effective date of
any change. Any change will not affect the
amount or terms of any Annuity which begins
before the change.
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2.01 CHANGE OF CONTRACT Aetna may make any change that affects the AG
(CONT'D): Account Market Value Adjustment (3.06) with
at least 30 days' advance written notice to
the Contract Holder and the Certificate
Holder. Any such change shall become
effective for any new Term and will be
applicable only if it is more favorable to
the Contract Holder and/or the Certificate
Holder.
Any change that affects any of the following
under this Contract will not apply to
Accounts in existence before the effective
date of the change:
(a) Net Purchase Payment (3.01)
(b) AG Account Guaranteed Rate (1.04)
(c) Net Return Factor(s) -- Separate
Account (3.04)
(d) Current Value (1.12)
(e) Surrender Value (1.31)
(f) Fund(s) Annuity Unit Value -- Separate
Account (4.05)
(g) Annuity Options (4.07)
(h) Fixed Annuity Guaranteed Interest
Rates (4.01)
(i) Transfers (1.32)
This Contract may be changed as deemed
necessary by Aetna to comply with federal or
state law. Any such change is subject to the
prior approval of the New York Insurance
Department.
2.02 CHANGE OF FUND(S): Aetna, or the Separate Account, may:
(a) Change the Fund(s) which may be invested
in by the Separate Account; and
(b) Replace the shares of any Fund(s) held
in the Separate Account with shares of
any other Fund(s).
Changes must be:
(a) Approved by a majority vote of the
shares 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.
Such changes are subject to the approval of
the Superintendent of the New York Insurance
Department and Aetna will notify the Contract
Holder of such change.
2.03 NONPARTICIPATING CONTRACT: The Contract Holder, Certificate Holders or
Beneficiaries will not have a right to share
in the earnings of Aetna.
20
2.04 PAYMENTS AND ELECTIONS: While the Certificate Holder is living, Aetna
will pay the Certificate Holder any Annuity
payments as and when due. After the
Certificate Xxxxxx's death, or at the death
of the first Certificate Holder if the
Account is owned jointly, any Annuity
payments required to be made will be paid in
accordance with 4.03. Aetna will determine
other payments and/or elections as of the end
of the Valuation Period in which the request
is received at its Home Office. Such payments
will be made within 7 calendar days of
receipt at its Home Office of a written claim
for payment which is in good order, except as
provided in 3.15.
2.05 STATE LAWS: The Contract and the Certificates comply with
the laws of the state in which they are
delivered. Any surrender, 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. The Contract Holder has
title to the Contract. Contract Holder rights
are limited to accepting and rejecting
Contract modifications. The Certificate
Holder has all other rights to amounts held
in his or her Account.
Each Certificate Holder shall own all amounts
held in his or her Account. Each Certificate
Holder may make any choices allowed by this
Contract for his or her Account. Certificate
Holder choices made under the contract must
be in writing. If the Account is owned
jointly, both joint Certificate Holders must
authorize any Certificate Holder change in
writing. Until receipt of such choices at
Aetna's Home Office, Aetna may rely on any
previous choices made.
The Account may not be attached, alienated,
or subject to the claims of creditors of the
Certificate Holder except to the extent
permitted by law.
The Certificate Holder may assign or transfer
his or her rights under the Contract. Aetna
reserves the right not to accept assignment
or transfer to a nonnatural person. Any
assignment or transfer made must be submitted
to Aetna's Home Office in writing and will
not be effective until accepted by Aetna.
2.07 DESIGNATION OF Each Certificate Holder shall name his or her
BENEFICIARY: Beneficiary. If the Account is owned jointly,
both joint Certificate Holders must agree in
writing to the Beneficiary designated. The
Beneficiary may be changed at any time.
Changes to a Beneficiary must be submitted to
Aetna's Home Office in writing and will not
be effective until accepted by Aetna.
21
2.08 MISSTATEMENTS AND If Aetna finds the age or sex of any
ADJUSTMENTS: Annuitant to be misstated, the amount payable
under the Contract shall be adjusted for the
correct age or sex; the amount of any
underpayment or overpayment, with interest at
six per cent per year, shall be credited to,
or changed against, the current or next
succeeding payment or payments to be made by
Aetna under the Contract.
2.09 INCONTESTABILITY: Aetna cannot cancel the Contract because of
any error of fact on the application. Aetna
cannot cancel an Account because of any error
of fact on the enrollment form.
2.10 GRACE PERIOD: This Contract will remain in effect even if
Purchase Payments are not continued.
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
--------------------------------------------------------------------------------
3.01 NET PURCHASE PAYMENT: This amount is the actual Purchase Payment
less any premium tax. Aetna will generally
deduct the premium tax when Annuity benefits
are elected (see Part IV). If Aetna
determines that under applicable state law,
it must pay a premium tax when the Purchase
Payment is received or at any other time, it
will deduct the tax at that time.
The Net Purchase Payment will be credited
among:
(a) The current Deposit Period(s) for
Guaranteed Terms under the AG Account;
and
(b) The Fund(s) in which the Separate
Account invests.
For each Net Purchase Payment, the
Certificate Holder shall tell Aetna the
allocation percentage to be applied to the
current Deposit Period for each of the
available Guaranteed Terms in the AG Account
and/or each Fund. If allocation instructions
are not received along with any subsequent
Net Purchase Payment, the allocation will be
the same as that indicated on the original
application. If the same Guaranteed Term is
no longer available, the Net Purchase Payment
will be allocated to the next shortest
Guaranteed Term available in the current
Deposit Period. If no shorter Guaranteed Term
is available, the next longer Guaranteed Term
will be used.
The minimum acceptable additional Purchase
Payment is shown on Contract Schedule I. The
maximum acceptable Purchase Payment without
Home Office approval is also provided on
Contract Schedule I.
3.02 CERTIFICATE HOLDER'S Aetna will maintain an Account for each
ACCOUNT: Certificate Holder.
22
3.03 FUND(S) RECORD UNITS -- The portion of the Net Purchase Payment(s)
SEPARATE ACCOUNT: applied to each Fund under the Separate
Account will determine the number of Fund
record units for that Fund. This number is
equal to the portion of the Net Purchase
Payment(s) applied to each Fund divided by
the Fund record unit value (see 3.05) for the
Valuation Period in which the Purchase
Payment is received in good order at Aetna's
Home Office.
3.04 NET RETURN FACTOR(S) -- The net return factor(s) are used to compute
SEPARATE ACCOUNT: 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
the 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); divided by
(d) The total value of the Fund record units
and Fund Annuity units of the Separate
Account at the start of the Valuation
Period; minus
(e) A daily Separate Account charge at an
annual rate as shown on Contract
Schedule I for mortality and expense
risks, which may include profit; and a
daily administrative charge.
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.
3.05 FUND RECORD UNIT A Fund record unit value is computed by
VALUE -- SEPARATE ACCOUNT: multiplying the net return factors for the
current Valuation Period by the Fund record
unit value for the previous Period. The
dollar value of Fund record units, Separate
Account assets, and Variable Annuity payments
may go up or down due to investment gain or
loss.
3.06 MARKET VALUE Except as noted below, there will be an MVA
Adjustment: for a withdrawal from the AG Account before
the end of a Guaranteed Term when the
withdrawal is due to:
(a) A Transfer; except for Transfers from
the one-year AG Account Guaranteed Term
under the Dollar Cost Averaging program
or, as specified in 1.24, AG Account
Matured Term Value Transfer;
(b) A full or partial surrender (including a
15% free withdrawal under 3.14), except
for a partial withdrawal under the
Systematic Withdrawal Option (see 3.10);
or
(c) An election of Annuity option 2 (see
4.07).
23
3.06 MARKET VALUE Full and partial surrenders and
ADJUSTMENT Transfers made within six months
(CONT'D): after the date of the Annuitant's death
will be the greater of:
(a) The aggregate MVA amount which is
the sum of all market value
adjusted amounts calculated due to
a withdrawal of amounts. This total
may be greater or less than the
Current Value of those amounts; or
(b) The applicable portion of the
Current Value in the AG Account.
After the six-month period, the
surrender or transfer will be the
aggregate MVA amount, which may be
greater or less than the Current Value
of those amounts.
The greater of the aggregate MVA amount
or the applicable portion of the Current
Value applies to amounts withdrawn from
the AG Account on account of an election
of Annuity options 3 or 4 (see 4.07).
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 Guaranteed Term.
The Deposit Period Yield will be
determined as follows:
(a) At the close of the last business
day of each week of the Deposit
Period, a yield will be computed as
the average of the yields on that
day of U.S. Treasury Notes which
mature in the last three months of
the Guaranteed Term.
(b) The Deposit Period Yield is the
average of those yields for the
Deposit Period. If withdrawal is
made before the close of the
Deposit Period, it is the average
of those yields on each week
preceding withdrawal.
The Current Yield is the average of the
yields on the last business day of the
week preceding withdrawal on the same
U.S. Treasury Notes included in the
Deposit Period Yield.
24
3.06 MARKET VALUE In the event that no U.S. Treasury Notes
ADJUSTMENT which mature in the last three months of
(CONT'D): the Guaranteed Term exist, Aetna
reserves the right to use the U.S.
Treasury Notes that mature in the
following quarter.
If. U.S. Treasury Notes are no longer
available, a suitable replacement index,
subject to approval of the
Superintendent of the New York Insurance
Department, would then be utilized.
A detailed description of the MVA has
been filed with the Superintendent of
the New York Insurance Department.
3.07 TRANSFER OF CURRENT VALUE Before an Annuity option is elected, all
FROM THE FUNDS OR or any portion of the Adjusted Current
AG ACCOUNT: Value may be transferred from any Fund
or Guaranteed Term of the AG Account:
(a) To any other Fund; or
(b) To any Guaranteed Term of the AG
Account available in the current
Deposit Period.
Transfer requests can be submitted as a
percentage or as a dollar amount. The
minimum transfer amount is shown on
Contract Schedule I. Within a Guaranteed
Term Group, the amount to be surrendered
or transferred will be withdrawn first
from the oldest Deposit Period, then
from the next oldest, and so on until
the amount requested is satisfied.
The Certificate Holder may make an
unlimited number of Transfers during the
Accumulation Period. The number of free
Transfers allowed by Aetna is shown on
Contract Schedule I. Additional
Transfers may be subject to a Transfer
fee as shown on Contract Schedule I.
Amounts transferred from the AG Account
under the Dollar Cost Averaging program,
or amounts transferred as a Matured Term
Value on or within the calendar month of
the Term's Maturity Date, do not count
against the annual Transfer limit.
Amounts applied to Guaranteed Terms of
the AG Account may not be transferred to
the Funds or to another Guaranteed Term
during the Deposit Period or for 90 days
after the close of the Deposit Period
except for:
(1) a Matured Term Value(s) during the
calendar month following the Term's
Maturity Date and
(2) amounts transferred from the one-
year AG Account Guaranteed Term
under the Dollar Cost Averaging
program.
Transfers from Guaranteed Terms of the
AG Account are subject to the MVA
provisions in 3.06.
3.08 NOTICE TO THE CONTRACT The Certificate Holder will receive
HOLDER: quarterly statements from Aetna of:
25
(a) The value of any amounts held in:
(1) The AG Account; and
(2) The Fund(s) under the
Separate Account.
(b) The number of any Fund(s) record
units; and
(c) The Fund(s) record unit value.
3.08 NOTICE TO THE CONTRACT Such number or values will be as of a
HOLDER specific date no more than 60 days
(CONT'D): before the date of the notice.
3.09 LOANS: Loans are not available under this
Contract.
3.10 SYSTEMATIC WITHDRAWAL The following distribution options
OPTION (SWO) may be elected by the Certificate Holder
during the Accumulation Period. A
distribution option under which a
portion of the Account's Current Value
will automatically be surrendered and
distributed each year. SWO payments will
be calculated based on the Account's
full Current Value. The distributed
amount will be withdrawn pro rata from
each investment option used under the
Account. A Surrender Fee will not be
deducted from any portion of the Current
Value which is paid as a distribution
under SWO. Certificate Holders should
consult their tax advisers prior to
requesting this distribution option.
Aetna will not be responsible for any
adverse tax consequences due to
receiving SWO payments.
(a) Amount of Distribution: The
Certificate Holder may elect one of
the three payment methods described
below.
(1) Specified Payment: Payment of
a designated dollar amount.
The annual amount may not be
greater than the percentage of
the Account's Current Value on
the date of the SWO election
as shown on Contract Schedule
I. This annual dollar amount
will remain constant. The
minimum SWO payment amount is
shown on Contract Schedule I.
If SWO payments are made more
frequently than annually, the
designated annual amount is
divided by the number of
payments due each year; or
(2) Specified Period: Payments
made over a designated period
of time of at least 10 years.
The annual payment is
calculated by dividing the
Current Value as of December
31 of the year prior to the
payment year by the number of
payment years remaining; or
(3) Specified Percentage: Payments
of a designated percentage
which cannot be greater than
the percentage of the Current
Value at the time of election
as shown on Contract Schedule
I. The percentage may be
changed by written request.
Aetna reserves the right to
limit the number of times the
percentage may be changed. The
annual amount is calculated by
multiplying the Current Value
as of December 31 of the year
prior to the payment year by
the designated percentage.
26
Payments upon the Contract Xxxxxx's
death will continue to the Beneficiary
in the manner described in 3.11.
3.10 SYSTEMATIC WITHDRAWAL (b) Minimum Initial Current Value:
OPTION (SWO) The Minimum Initial Current Value
(CONT'D): required to begin SWO is shown on
Contract Schedule I. If after
election of this option the Current
Value is insufficient to make a
scheduled SWO payment, Aetna will
distribute the entire balance.
(c) Date of Distribution: The Contract
Holder shall specify the first
payment date. The earliest
allowable first payment date is the
date on which the Contract Holder
attains age 59 1/2. The latest
allowable SWO payment date is the
month of the Contract Holder's 85th
birthday. As elected by the
Contract Holder, SWO payments will
be made on a monthly, quarterly,
semi-annual or annual basis. If SWO
payments are made more frequently
than annually, the designated
annual amount is divided by the
number of payments due each year.
Subsequent payments will be made on
the 15th of the appropriate months
or on such other date as Aetna may
designate or allow.
(d) Election and Revocation: SWO may be
elected by the Certificate Holder
or a spouse beneficiary if elected
after the Certificate Holders death
by submitting a completed and
signed election form to Aetna's
Home Office. Once elected, this
option may be revoked by the
Certificate Holder or spousal
Beneficiary, if elected after the
Certificate Holder's death, by
submitting a written request to
Aetna at its Home Office. Any
revocation will apply only to
amounts not yet paid. SWO may be
elected only once by the
Certificate Holder or by the spouse
Beneficiary.
3.11 DEATH BENEFIT AMOUNT: If the Certificate Holder or Annuitant
dies before Annuity payments start, the
Beneficiary is entitled to a death
benefit under the Account. If the
Account is owned jointly, the death
benefit is paid at the death of the
first joint Certificate Holder to die.
The claim date is the date when proof of
death and the Beneficiary's claim are
received in good order at Aetna's Home
Office. The amount of the death benefit
is determined as follows:
(a) Death of Annuitant less than 85
years of age: The guaranteed death
benefit is the greatest of:
(1) The sum of all Net Purchase
Payment(s) made to the Account
(as of the date of death) minus
the sum of all amounts
surrendered, applied to an
Annuity, or deducted from the
Account;
27
3.11 DEATH BENEFIT AMOUNT (2) The highest step-up value as
(CONT'D) of the date of death. A step-
up value is determined on each
anniversary of the Effective
Date. Each step-up value is
calculated as the Account's
Current Value on the Effective
Date anniversary, increased by
the amount of any Purchase
Payment(s) made, and decreased
by the sum of all amounts
surrendered, deducted, and/or
applied to an Annuity option
since the Effective Date
anniversary.
(3) The Account's Current Value as
of the date of death.
The excess, if any, of the guaranteed
death benefit value over the Account's
Current Value is determined as of the
date of death. Any excess amount will be
deposited in the Account and allocated
to Aetna Variable Encore Fund as of the
claim date. The Current Value on the
claim date plus any excess amount
deposited becomes the Account's Current
Value.
(b) Death of Annuitant age 85 or
greater: The death benefit is the
greatest of:
(1) The sum of all Net Purchase
Payment(s) made to the account
(as of the date of death)
minus the sum of all amounts
surrendered, applied to an
Annuity, or deducted from the
Account;
(2) The highest step-up value
prior to the Certificate
Holder's 85th birthday.
A step-up value is determined
on each anniversary of the
Effective Date. Each step-up
value is calculated as the
Account's Current Value on the
Effective Date anniversary,
increased by the amount of any
Purchase Payment(s) made, and
decreased by the sum of all
amounts surrendered, deducted,
and/or applied to an Annuity
option since the Effective
Date anniversary.
(3) The Account's Current Value as
of the date of death.
The excess, if any, of the guaranteed
death benefit value over the Account's
Current Value is determined as of the
date of death. Any excess amount will be
deposited in the Account and allocated
to the Aetna Variable Encore Fund as of
the claim date. The Current Value on the
claim date, plus any excess amount
deposited, becomes the Account's Current
Value.
(c) Death of the Certificate Holder if
the Certificate Holder is not the
Annuitant: The death benefit amount
is the Account's Adjusted Current
Value on the Claim Date. A
Surrender Fee may apply to any full
or partial surrender (see 3.14 and
Contract Schedule I).
28
3.11 DEATH BENEFIT AMOUNT (d) At the death of a surviving spouse
(CONT'D) Beneficiary who continued the
Account in his or her own name, the
death benefit amount is equal to
the Account's Current Value less
any applicable Surrender Fee on the
amount of any Purchase Payment(s)
made since the death of the
Certificate Holder.
3.12 DEATH BENEFIT OPTIONS Prior to any election, or until amounts
AVAILABLE TO BENEFICIARY: must be otherwise distributed under this
section, the Current Value of the
account will be retained in the Account.
The Beneficiary has the right under the
Contract to allocate or reallocate any
amount to any of the available
investment options (subject to an MVA,
as applicable). The following options
are available to the Beneficiary:
(a) When the Contract Holder is the
Annuitant: If the Contract
Xxxxxx/Annuitant dies, and:
(1) If the Beneficiary is the
Certificate Holder's surviving
spouse, the surviving spouse
may exercise all rights under
the Contract and continue in
the Accumulation Period, or
may elect (i), (ii), or (iii)
below. Under the Code,
distributions from the Account
are not required until the
Spousal Beneficiary's death.
The Spousal Beneficiary may
elect to:
(i) Apply some or all of the
Adjusted Current Value
of the Account to
Annuity option 2, 3 or 4
(see 4.07);
(ii) Apply some or all of the
Adjusted Current Value
to Annuity option 1 (see
4.07); or
(iii) Receive, at any time, a
lump sum payment equal
to the Adjusted Current
Value of the Account.
(2) If the Beneficiary is other
than the Certificate Holder's
surviving spouse, then options
(i), (ii), or (iii) under (1)
above apply. Any portion of
the Adjusted Current Value of
the Account not applied to
Annuity option 2, 3 or 4
within one year of the
Certificate Holder's death,
must be distributed within
five years of the date of
death.
(3) If no Beneficiary exists, a
lump sum payment equal to the
Adjusted Current Value will be
made to the Certificate
Holder's estate.
(b) When the Certificate Holder is not
the Annuitant and the Certificate
Holder dies, and:
29
3.12 DEATH BENEFIT OPTIONS (1) If the Beneficiary is the
AVAILABLE TO BENEFICIARY Certificate Holder's surviving
(CONT'D) spouse, the Beneficiary may
exercise all rights under the
Contract and continue in the
Accumulation Period, or may
elect (i), (ii), or (iii)
below. Under the Code,
distributions from the Account
are not required under the
spousal Beneficiary's death.
The spousal Beneficiary may
elect to:
(i) Apply some or all of the
Adjusted Current Value
of the Account to
Annuity option 2, 3 or 4
(see 4.07);
(ii) Apply some or all of the
Adjusted Current Value
to Annuity option 1 (see
4.07); or
(iii) Receive, at any time, a
lump sum payment equal
to the Adjusted Current
Value of the Account.
(2) If the Beneficiary is other
than the Certificate Holder's
surviving spouse, then options
(i), (ii), or (iii) under (1)
above apply. Any portion of
the Adjusted Current Value not
applied to Annuity option 2, 3
or 4 within one year of the
Certificate Holder's death,
must be distributed within
five years of the date of
death.
(3) If no Beneficiary exists, a
lump sum payment equal to the
Surrender Value will be made
to the Certificate Holder's
estate.
(c) When the Certificate Holder is not
the Annuitant and the Annuitant
dies: The Beneficiary must elect
Annuity option 2, 3 or 4 within 60
days of the date of death or the
gain, if any, will be includible in
the Beneficiary's income in the tax
year in which the Annuitant dies.
3.13 LIQUIDATION OF All or any portion of the Account's
SURRENDER VALUE: Current Value may be surrendered at any
time. Surrender requests can be
submitted as a percentage of the
Account's Adjusted Current Value or as a
specific dollar amount. Net Purchase
Payment amounts are withdrawn first, and
then the excess value, if any. For any
partial surrender, amounts are withdrawn
on a pro rata basis from the Fund(s)
and/or the Guaranteed Term(s) Groups of
the AG Account in which the Current
Value is invested. Within a Guaranteed
Term Group, the amount to be surrendered
or transferred will be withdrawn first
from the oldest Deposit Period, then
from the next oldest, and so on until
the amount requested is satisfied.
After deduction of the Maintenance Fee,
if applicable, the surrendered amount
shall be reduced by a Surrender Fee, if
applicable.
An MVA may apply to amounts surrendered
from the AG Account.
30
3.14 SURRENDER FEE: The Surrender Fee only applies to the
Net Purchase Payment(s) portion
surrendered and varies according to the
elapsed time since deposit (see Contract
Schedule I). Net Purchase Payment
amounts are withdrawn in the same order
they were applied.
No Surrender Fee is deducted from any
portion of the Net Purchase Payment
which is paid:
(a) To a Beneficiary due to the
Annuitant's death before Xxxxxxx
payments start, up to a maximum of
the aggregate Net Purchase
Payment(s) minus the total of all
partial surrenders, amounts applied
to an Annuity and deductions made
prior to the Annuitant's date of
death;
(b) As a premium for an Annuity option
2, 3 or 4 under this Contract (see
4.07);
(c) As a distribution under the SWO
provision (see 3.10);
(d) At least 12 months after the date
of the Purchase Payment to the
Account, in an amount equal to or
less than 15% of the Current Value.
This applies to the first surrender
request, partial or full, in a
calendar year. The Current Value is
calculated as of the date the
surrender request is received in
good order at Aetna's Home Office.
This waiver is not available to the
Contract Holder while SWO is in
effect; or
(e) For a full surrender of the Account
where the Current Value of the
Account is $2,500 or less and no
surrenders have been taken from the
Contract within the prior 12
months.
3.15 PAYMENT OF Under certain emergency conditions,
SURRENDER VALUE: Aetna may defer payment:
(a) For a period of up to 6 months
(unless not allowed by state law);
or
(b) As provided by federal law under
the Investment Company Act of 1940.
IV. ANNUITY PROVISIONS
--------------------------------------------------------------------------------
4.01 CHOICES TO BE MADE: The Certificate Holder may tell Aetna to
apply any portion of the Adjusted
Current Value (minus any premium tax)
for an Annuity under option 2, 3, or 4
(see 4.07). The first Annuity payment
may not be earlier than one calendar
year after the Purchase Payment nor
later than the first day of the month
following the Annuitant's 85th birthday.
When an Annuity Option is chosen, Aetna
must also be told if payments are to be
made other than monthly and whether to
pay:
31
4.01 CHOICES TO BE MADE: (a) A Fixed Annuity using the General
(CONT'D) Account;
(b) A Variable Annuity using any of the
Fund(s) available under this
Contract for Annuity purposes; or
(c) A combination of (a) and (b).
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 return rate elected. (see
Contract Schedule II).
4.02 TERMS OF ANNUITY (a) When payments start, the age of the
OPTIONS: Annuitant plus the number of years
for which payments are guaranteed
must not exceed 95.
(b) An Annuity option may not be
elected if the first payment would
be less than $50 or if the total
payments in a year would be less
than $250 (less if required by
state law). Aetna reserves the
right to increase the minimum first
Annuity payment amount and the
annual minimum annual Annuity
payment amount based upon increases
reflected in the Consumer Price
Index-Urban, (CPI-U) since July 1,
1993.
(c) If a Fixed Annuity under option 2,
3 or 4 is chosen and a larger
payment would result from applying
the Surrender Value or, if greater,
95% of what the surrender would be
if there were no surrender fee, to
a current Aetna single premium
immediate Annuity, Aetna will make
the larger payment.
(d) 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,
1993 through December 31, 1999. The
Annuitant's and second Xxxxxxxxx's
age will be reduced by 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 purchase rates for
options 3 and 4 are based on
mortality from 1983 Table a.
32
4.02 TERMS OF ANNUITY (e) Assumed Annual Net Return Rate is
OPTIONS (CONT'D) the interest rate used to determine
the amount of the first Annuity
payment under a Variable Annuity as
shown on Contract Schedule II. The
Separate Account must earn this
rate plus enough to cover the
mortality and expense risk charges
(which may include profit) and
administrative charges if future
Variable Annuity Payments are to
remain level, (see Annuity return
factor under Variable Annuity
Assumed Annual Net Return Rate on
Contract Schedule II).
(f) Once elected, Annuity payments
cannot be commuted to a lump sum
except for Variable Annuity
payments under option 2 (see 4.07).
The life expectancy of the
Annuitant and second Annuitant
shall be irrevocable upon the
election of an Annuity option.
4.03 DEATH OF ANNUITANT/ (a) Certificate Holder is Annuitant:
BENEFICIARY: When the Certificate Holder is the
Annuitant and the Annuitant dies
under option 2 or 3, or both the
Annuitant and the second Annuitant
die under option 4(d), the present
value of any remaining guaranteed
payments will be paid in one sum to
the Beneficiary, or upon election
by the Beneficiary, any remaining
payments will continue to the
Beneficiary. If option 4 has been
elected and the Certificate Holder
dies, the remaining payments will
continue to the successor payee. If
no successor payee has been
designated, the Beneficiary will be
treated as the successor payee. If
the Account has joint Certificate
Holders, the surviving joint
Certificate Holder will be deemed
the successor payee.
(b) Certificate Holder is Not
Annuitant: When the Certificate
Holder is not the Annuitant and the
Certificate Holder dies, the
remaining payments under options 2,
3 or 4 will continue to the
successor payee. If no successor
payee has been designated, the
Beneficiary will be treated as the
successor payee. If the Account has
joint Certificate Holders, the
surviving joint Certificate Holder
will be deemed the successor payee.
If the Annuitant dies under option
2 or 3, or if both the Annuitant
and the second Annuitant die under
option 4(d), the present value of
any remaining guaranteed payments
will be paid in one sum to the
Beneficiary, or upon the election
by the Beneficiary, any remaining
payments will continue to the
Beneficiary. If option 4 has been
elected, and the Annuitant dies,
the remaining payments will
continue to the Certificate Holder.
(c) No Beneficiary Named/Surviving: If
there is no Beneficiary under
option 2, 3 or 4, the present value
of any remaining payments will be
paid in one sum to the Certificate
Holder, or if the Certificate
Holder is not living, then to the
Certificate Holder's estate.
33
4.03 DEATH OF ANNUITANT/ (d) If the Beneficiary designated under
BENEFICIARY option 1 dies, the amount held plus
(CONT'D) accrued interest will be paid in
one sum to a successor Beneficiary,
if any, named by the designated
Beneficiary. If there is no
successor Beneficiary, the lump sum
will be paid to the designated
Beneficiary's estate.
(e) If the Beneficiary or the successor
payee dies while receiving Annuity
payments, the present value of any
remaining guaranteed payments will
be paid in one sum to the successor
Beneficiary/payee, or upon election
by the successor Beneficiary/payee,
any remaining payments will
continue to the successor
Beneficiary/payee. If no successor
Beneficiary/payee has been
designated, the present value of
any remaining guaranteed payments
will be paid in one sum to the
Beneficiary's/payee's estate.
(f) The present value will be
determined as of the Valuation
Period in which proof of death
acceptable to Aetna and a request
for payment is received at Aetna's
Home Office. The interest rate used
to determine the first payment will
be used to calculate the present
value.
4.04 FUND(S) ANNUITY UNITS -- The number of each Fund's Annuity units
SEPARATE ACCOUNT: is based on the amount of the first
Variable Annuity payment which is equal
to:
(a) The portion of the Current Value
applied to pay a Variable Annuity
(minus any premium tax); 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 Annuity unit value (see
4.05) 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 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.
4.05 FUND(S) ANNUITY UNIT For any Valuation Period, a Fund Annuity
VALUE -- SEPARATE unit value is equal to:
ACCOUNT:
(a) The value for the previous Period;
multiplied by
(b) The Annuity net return factor(s)
(see 4.06 below) 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
value and Annuity payments may go up or
down due to investment gain or loss.
34
4.06 ANNUITY NET RETURN The Annuity net return factor(s) are
FACTOR(S) -- SEPARATE used to compute Annuity payments for any
ACCOUNT: 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);
divided by
(d) The total value of the Fund record
units and the Fund Annuity units of
the Separate Account at the start
of the Valuation Period; minus
(e) 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.
Payments shall not be changed due to
changes in the mortality or expense
results or administrative charges.
4.07 ANNUITY OPTIONS: Option 1 -- Payment of Interest on Sum
Left with Aetna -- This option may be
used only by the Beneficiary when the
Certificate Holder dies before Aetna has
started paying an Annuity. A portion or
all of the sum paid upon death may be
held under this option and will be held
in the General Account of Aetna at
interest (see 4.01). 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 a nonspouse Beneficiary elects that
some or all of the Current Value is to
be held under this option, the
Beneficiary must tell Aetna to pay the
full sum held under this option within 5
years of the date of death.
Option 2 -- Payments for a Stated Period
of Time -- An Annuity will be paid for
the number of years chosen. The number
of years must be at least 5 and not more
than 30.
If payments for this option are made
under a Variable Annuity, the present
value of any remaining payments may be
withdrawn
35
4.07 ANNUITY OPTIONS: at any time. If a withdrawal is
(CONT'D) requested within 3 years after the start
of payments, it will be treated as a
surrender and any applicable Surrender
Fee will be applied (see 3.14).
If a nonspouse Beneficiary elects this
option at the death of the Contract
Holder, the period selected may not
extend beyond the Beneficiary's life
expectancy.
Option 3 -- Life Income -- An Annuity
will be paid for the life of the
Annuitant. If also chosen, Aetna will
guarantee payments for 60, 120, 180, or
240 months.
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 must be made of:
(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 and
the Certificate is delivered.
36
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%
---------------------------------------------------------------------------------------------------
GUARANTEED MONTHLY QUARTERLY SEMI-ANNUAL ANNUAL
YEARS RATE PAYMENT PAYMENT PAYMENT 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
--------------------------------------------------------------------------------------------------
37
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 60 120 180 240
AGE OF ----------------------------------------------------------------------------
ANNUITANT MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
----------------------------------------------------------------------------------------------
50 $4.27 $3.90 $4.26 $3.90 $4.22 $3.89 $4.17 $3.86 $4.08 $3.82
51 4.34 3.97 4.33 3.96 4.30 3.95 4.23 3.92 4.14 3.88
52 4.43 4.03 4.41 4.03 4.37 4.01 4.30 3.98 4.20 3.93
53 4.51 4.10 4.50 4.10 4.45 4.08 4.37 4.04 4.26 3.99
54 4.60 4.18 4.59 4.17 4.54 4.15 4.45 4.11 4.32 4.04
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.39 4.11
56 4.80 4.34 4.78 4.33 4.72 4.30 4.61 4.25 4.45 4.17
57 4.91 4.42 4.89 4.41 4.82 4.38 4.69 4.32 4.51 4.23
58 5.03 4.52 5.00 4.51 4.92 4.47 4.78 4.40 4.58 4.30
59 5.15 4.61 5.12 4.60 5.03 4.56 4.87 4.48 4.65 4.37
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.71 4.44
61 5.43 4.83 5.39 4.81 5.27 4.76 5.06 4.66 4.78 4.51
62 5.58 4.95 5.53 4.93 5.39 4.87 5.16 4.75 4.84 4.58
63 5.74 5.08 5.69 5.05 5.53 4.99 5.26 4.85 4.90 4.65
64 5.91 5.21 5.85 5.18 5.66 5.10 5.36 4.95 4.96 4.72
65 6.10 5.36 6.03 5.32 5.81 5.22 5.46 5.05 5.02 4.79
66 6.30 5.51 6.21 5.47 5.93 5.36 5.56 5.16 5.08 4.86
67 6.51 5.67 6.41 5.63 6.12 5.50 5.66 5.26 5.13 4.93
68 6.73 5.85 6.62 5.80 6.28 5.65 5.77 5.37 5.18 5.00
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 5.23 5.06
70 7.23 6.25 7.07 6.18 6.61 5.97 5.96 5.60 5.27 5.12
71 7.51 6.47 7.32 6.39 6.79 6.14 6.05 5.71 5.31 5.18
72 7.80 6.71 7.58 6.62 6.96 6.32 6.14 5.83 5.34 5.23
73 8.12 6.98 7.85 6.86 7.14 6.50 6.23 5.94 5.37 5.28
74 8.46 7.26 8.14 7.12 7.32 6.69 6.31 6.04 5.40 5.32
75 8.82 7.57 8.45 7.40 7.50 6.89 6.38 6.14 5.42 5.35
----------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
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.
38
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS MALE AND SECOND ANNUITANT IS FEMALE)
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
-----------------------------------------------------------------------------
ADJUSTED AGES
-----------------------------
SECOND
ANNUITANT ANNUITANT OPTION 4A OPTION 4B OPTION 4C OPTION 4D OPTION 4E
-----------------------------------------------------------------------------
55 50 $3.69 $4.05 $4.27 $3.69 $4.13
55 55 3.88 4.25 4.47 3.87 4.25
55 60 3.06 4.47 4.71 4.06 4.36
60 55 3.99 4.44 4.71 3.98 4.55
60 60 4.24 4.71 4.99 4.23 4.70
60 65 4.49 5.01 5.32 4.48 4.85
65 60 4.38 4.97 5.32 4.38 5.10
65 65 4.72 5.33 5.70 4.71 5.32
65 70 5.07 5.75 6.17 5.05 5.54
70 65 4.93 5.68 6.15 4.91 5.86
70 70 5.40 6.21 6.70 5.36 6.18
70 75 5.89 6.82 7.40 5.81 6.49
75 70 5.69 6.68 7.32 5.62 6.92
75 75 6.37 7.45 8.15 6.23 7.40
75 80 7.07 8.34 9.16 6.78 7.85
-----------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Male and the Second Annuitant is Female.
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.
39
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS FEMALE AND SECOND ANNUITANT IS MALE)
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
--------------------------------------------------------------------------------
ADJUSTED AGES
------------------------
SECOND
ANNUITANT ANNUITANT OPTION 4A OPTION 4B OPTION 4C OPTION 4D OPTION 4E
--------------------------------------------------------------------------------
55 50 $3.75 $4.07 $4.26 $3.75 $3.98
55 55 3.88 4.25 4.47 3.87 4.06
55 60 3.99 4.44 4.71 3.98 4.12
60 55 4.06 4.47 4.71 4.06 4.37
60 60 4.24 4.71 4.99 4.23 4.47
60 65 4.38 4.97 5.32 4.38 4.54
65 60 4.49 5.01 5.32 4.48 4.89
65 65 4.72 5.33 5.70 4.71 5.02
65 70 4.93 5.68 6.15 4.91 5.14
70 65 5.07 5.75 6.17 5.05 5.60
70 70 5.40 6.21 6.70 5.36 5.79
70 75 5.69 6.68 7.32 5.62 5.96
75 70 5.89 6.83 7.40 5.81 6.63
75 75 6.37 7.45 8.15 6.23 6.92
75 80 6.78 8.11 8.99 6.54 7.15
--------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Female and the Second Annuitant is Male.
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.
40
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 GUARANTEED MONTHLY QUARTERLY SEMI-ANNUAL ANNUAL
RATE PAYMENT PAYMENT PAYMENT PAYMENT
--------------------------------------------------------------------------------------------------
5 3.50% 18.12 54.19 107.92 213.99
6 3.50% 15.35 45.92 91.44 181.32
7 3.50% 13.38 40.01 79.69 158.01
8 3.50% 11.90 35.59 70.88 140.56
9 3.50% 10.75 32.16 64.05 127.00
10 3.50% 9.83 29.42 58.59 116.18
11 3.50% 9.09 27.18 54.13 107.34
12 3.50% 8.46 25.32 50.42 99.98
13 3.50% 7.94 23.75 47.29 93.78
14 3.50% 7.49 22.40 44.62 88.47
15 3.50% 7.10 21.24 42.31 83.89
16 3.50% 6.76 20.23 40.29 79.89
17 3.50% 6.47 19.34 38.51 76.37
18 3.50% 6.20 18.55 36.94 73.25
19 3.50% 5.97 17.85 35.54 70.47
20 3.50% 5.75 17.22 34.28 67.98
21 3.50% 5.56 16.65 33.15 65.74
22 3.50% 5.39 16.13 32.13 63.70
23 3.50% 5.24 15.66 31.19 61.85
24 3.50% 5.09 15.24 30.34 60.17
25 3.50% 4.96 14.85 29.56 58.62
26 3.50% 4.84 14.49 28.95 57.20
27 3.50% 4.73 14.15 28.19 55.90
28 3.50% 4.63 13.85 27.58 54.69
29 3.50% 4.53 13.57 27.02 53.57
30 3.50% 4.45 13.30 26.49 52.53
--------------------------------------------------------------------------------------------------
41
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 5.0%
--------------------------------------------------------------------------------------------------
YEARS GUARANTEED MONTHLY QUARTERLY SEMI-ANNUAL ANNUAL
RATE PAYMENT PAYMENT PAYMENT PAYMENT
--------------------------------------------------------------------------------------------------
5 5.00% 18.74 56.00 111.33 219.98
6 5.00% 15.99 47.77 94.96 187.64
7 5.00% 14.02 41.90 83.30 164.59
8 5.00% 12.56 37.52 74.58 147.35
9 5.00% 11.42 34.11 67.81 133.99
10 5.00% 10.51 31.40 62.42 123.34
11 5.00% 9.77 29.19 58.03 114.66
12 5.00% 9.16 27.36 54.38 107.45
13 5.00% 8.64 25.81 51.31 101.39
14 5.00% 8.20 24.50 48.69 96.21
15 5.00% 7.82 23.36 46.44 91.75
16 5.00% 7.49 22.37 44.47 87.88
17 5.00% 7.20 21.51 42.75 84.48
18 5.00% 6.94 20.74 41.23 81.47
19 5.00% 6.71 20.06 39.88 78.80
20 5.00% 6.51 19.46 38.68 76.42
21 5.00% 6.33 18.91 37.59 74.28
22 5.00% 6.17 18.42 36.62 72.35
23 5.00% 6.02 17.98 35.73 70.61
24 5.00% 5.88 17.57 34.93 69.02
25 5.00% 5.76 17.20 34.20 67.57
26 5.00% 5.65 16.87 33.53 66.25
27 5.00% 5.54 16.56 32.92 65.04
28 5.00% 5.45 16.28 32.35 63.93
29 5.00% 5.36 16.01 31.83 62.90
30 5.00% 5.28 15.77 31.35 61.95
--------------------------------------------------------------------------------------------------
42
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 60 120 180 240
AGE OF ----------------------------------------------------------------------------
ANNUITANT MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
----------------------------------------------------------------------------------------------
50 $4.56 $4.20 $4.55 $4.19 $4.51 $4.18 $4.45 $4.15 $4.36 $4.11
51 4.64 4.26 4.62 4.25 4.58 4.24 4.51 4.21 4.42 4.16
52 4.72 4.32 4.70 4.32 4.66 4.30 4.58 4.26 4.48 4.21
53 4.80 4.39 4.79 4.38 4.74 4.36 4.65 4.32 4.53 4.27
54 4.89 4.46 4.87 4.46 4.82 4.43 4.73 4.39 4.59 4.32
55 4.99 4.54 4.97 4.53 4.91 4.50 4.80 4.46 4.65 4.38
56 5.09 4.62 5.07 4.61 5.00 4.58 4.88 4.53 4.72 4.44
57 5.20 4.71 5.17 4.70 5.10 4.66 4.96 4.60 4.78 4.50
58 5.32 4.80 5.29 4.79 5.20 4.75 5.05 4.68 4.84 4.57
59 5.44 4.90 5.41 4.88 5.31 4.84 5.14 4.76 4.91 4.63
60 5.57 5.00 5.53 4.99 5.42 4.93 5.23 4.84 4.97 4.70
61 5.71 5.11 5.67 5.09 5.54 5.03 5.32 4.93 5.03 4.77
62 5.86 5.23 5.81 5.21 5.66 5.14 5.42 5.02 5.09 4.84
63 6.02 5.36 5.97 5.33 5.79 5.25 5.51 5.11 5.16 4.91
64 6.20 5.49 6.13 5.46 5.93 5.37 5.61 5.21 5.21 4.98
65 6.38 5.64 6.31 5.60 6.07 5.49 5.71 5.31 5.27 5.05
66 6.58 5.79 6.49 5.75 6.22 5.63 5.81 5.41 5.32 5.12
67 6.79 5.95 6.69 5.91 6.38 5.76 5.91 5.52 5.38 5.18
68 7.02 6.13 6.89 6.08 6.53 5.91 6.01 5.63 5.42 5.25
69 7.26 6.32 7.11 6.26 6.70 6.06 6.11 5.74 5.47 5.31
70 7.52 6.53 7.35 6.45 6.86 6.23 6.20 5.85 5.51 5.37
71 7.80 6.75 7.59 6.66 7.03 6.39 6.29 5.96 5.54 5.42
72 8.09 6.99 7.85 6.89 7.21 6.57 6.38 6.07 5.57 5.47
73 8.41 7.26 8.12 7.13 7.38 6.75 6.46 6.17 5.60 5.51
74 8.75 7.54 8.41 7.39 7.55 6.94 6.53 6.28 5.63 5.55
75 9.12 7.85 8.71 7.66 7.73 7.13 6.61 6.38 5.65 5.59
----------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
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.
43
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 60 120 180 240
AGE OF ----------------------------------------------------------------------------
ANNUITANT MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE MALE FEMALE
----------------------------------------------------------------------------------------------
50 $ 5.48 $5.12 $5.46 $5.11 $5.41 $5.09 $5.34 $5.06 $5.24 $5.01
51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.29 5.05
52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.34 5.10
53 5.71 5.30 5.69 5.29 5.62 5.26 5.53 5.22 5.40 5.15
54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.27 5.45 5.20
55 5.89 5.44 5.86 5.43 5.79 5.39 5.67 5.34 5.51 5.25
56 5.99 5.52 5.96 5.51 5.87 5.47 5.74 5.40 5.56 5.31
57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.62 5.37
58 6.21 5.69 6.17 5.67 6.06 5.62 5.90 5.54 5.68 5.42
59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.61 5.74 5.48
60 6.46 5.89 6.41 5.87 6.28 5.80 6.06 5.69 5.79 5.55
61 6.60 6.00 6.55 6.07 6.39 5.90 6.15 5.77 5.85 5.61
62 6.75 6.11 6.69 6.08 6.51 6.00 6.24 5.86 5.91 5.67
63 6.91 6.23 6.84 6.20 6.64 6.10 6.33 5.95 5.96 5.73
64 7.09 6.37 7.00 6.33 6.77 6.22 6.42 6.04 6.02 5.80
65 7.27 6.51 7.18 6.46 6.91 6.34 6.52 6.13 6.07 5.86
66 7.47 6.66 7.36 6.61 7.05 6.46 6.61 6.23 6.12 5.92
67 7.68 6.82 7.55 6.76 7.20 6.60 6.70 6.33 6.16 5.99
68 7.91 7.00 7.76 6.93 7.35 6.74 6.80 6.43 6.21 6.04
69 8.15 7.19 7.98 7.11 7.51 6.89 6.89 6.54 6.25 6.10
70 8.41 7.39 8.21 7.30 7.67 7.04 6.97 6.64 6.28 6.15
71 8.69 7.62 8.45 7.51 7.83 7.21 7.06 6.74 6.32 6.20
72 8.99 7.86 8.70 7.73 8.00 7.38 7.14 6.85 6.35 6.25
73 9.31 8.12 8.97 7.97 8.16 7.55 7.21 6.95 6.37 6.29
74 9.65 8.41 9.26 8.23 8.33 7.73 7.29 7.04 6.39 6.33
75 10.02 8.72 9.55 8.50 8.50 7.92 7.35 7.14 6.41 6.36
----------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
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.
44
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS MALE AND SECOND ANNUITANT IS FEMALE)
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
--------------------------------------------------------------------------------
ADJUSTED AGES
-----------------------
SECOND
ANNUITANT ANNUITANT OPTION 4A OPTION 4B OPTION 4C OPTION 4D OPTION 4E
--------------------------------------------------------------------------------
55 50 $3.97 $4.35 $4.56 $3.97 $4.42
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.34 4.76 5.00 4.34 4.64
60 55 4.27 4.73 5.00 4.26 4.83
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.76 5.29 5.60 4.75 5.13
65 60 4.66 5.25 5.61 4.65 5.39
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.34 6.03 6.46 5.31 5.81
70 65 5.19 5.97 6.44 5.17 6.14
70 70 5.67 6.49 6.99 5.62 6.47
70 75 6.16 7.10 7.68 6.07 6.77
75 70 5.95 6.96 7.61 5.87 7.20
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.33 8.62 9.45 7.02 8.13
--------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Male and the Second Annuitant is Female.
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.
45
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS FEMALE AND SECOND ANNUITANT IS MALE)
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
------------------------------------------------------------------------------
ADJUSTED AGES
-----------------------
SECOND
ANNUITANT ANNUITANT OPTION 4A OPTION 4B OPTION 4C OPTION 4D OPTION 4E
------------------------------------------------------------------------------
55 50 $4.03 $4.36 $4.55 $4.03 $4.41
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.27 4.73 5.00 4.26 4.83
60 55 4.34 4.76 5.00 4.34 4.64
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.66 5.25 5.61 4.65 5.39
65 60 4.76 5.29 5.60 4.75 5.13
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.19 5.97 6.44 5.17 6.14
70 65 5.34 6.03 6.46 5.31 5.81
70 70 5.67 6.49 6.99 5.62 6.47
70 75 5.95 6.96 7.61 5.87 7.20
75 70 6.16 7.10 7.68 6.07 6.77
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.04 8.39 9.29 6.79 8.70
------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Female and the Second Annuitant is Male.
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.
46
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS MALE AND SECOND ANNUITANT IS FEMALE)
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
------------------------------------------------------------------------------
ADJUSTED AGES
-----------------------
SECOND
ANNUITANT ANNUITANT OPTION 4A OPTION 4B OPTION 4C OPTION 4D OPTION 4E
------------------------------------------------------------------------------
55 50 $4.88 $5.26 $ 5.48 $4.88 $5.34
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.21 5.65 5.89 5.21 5.53
60 55 5.15 5.63 5.91 5.14 5.73
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.61 6.16 6.49 5.60 6.01
65 60 5.52 6.14 6.51 5.51 6.28
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.17 6.90 7.33 6.13 6.67
70 65 6.04 6.84 7.34 6.00 7.03
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.97 7.96 8.56 6.87 7.62
75 70 6.77 7.84 8.51 6.68 8.08
75 75 7.45 8.60 9.33 7.27 8.55
75 80 8.14 9.49 10.35 7.80 8.98
------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Male and the Second Annuitant is Female.
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.
47
OPTION 4
LIFE INCOME FOR TWO PAYEES
AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000
AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES
(ANNUITANT IS FEMALE AND SECOND ANNUITANT IS MALE)
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
------------------------------------------------------------------------------
ADJUSTED AGES
-----------------------
SECOND
ANNUITANT ANNUITANT OPTION 4A OPTION 4B OPTION 4C OPTION 4D OPTION 4E
------------------------------------------------------------------------------
55 50 $4.93 $5.27 $ 5.46 $4.93 $5.19
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.15 5.63 5.91 5.14 5.73
60 55 5.21 5.65 5.89 5.21 5.53
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.52 6.14 6.51 5.51 6.28
65 60 5.61 6.16 6.49 5.60 6.01
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.04 6.84 7.34 6.00 7.03
70 65 6.17 6.90 7.33 6.13 6.67
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.77 7.84 8.51 6.68 8.08
75 70 6.97 7.96 8.56 6.87 7.62
75 75 7.45 8.60 9.33 7.27 8.55
75 80 7.86 9.28 10.20 7.57 9.59
------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a.
The rates assume the Annuitant is Female and the Second Annuitant is Male.
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.
48
--------------------------------------------------------------------------------
[LOGO OF AETNA APPEARS HERE]
AETNA LIFE INSURANCE AND ANNUITY COMPANY
Home Office: 000 Xxxxxxxxxx Xxxxxx
Xxxxxxxx, Xxxxxxxxxxx 00000
(000) 000-0000
CERTIFICATE OF GROUP ANNUITY COVERAGE
--------------------------------------------------------------------------------
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. 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.
49
