RELIASTAR MINIMUM GUARANTEED
LIFE INSURANCE COMPANY WITHDRAWAL BENEFIT RIDER
OF NEW YORK WITH RESET OPTION
A Stock Company
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RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(HEREINAFTER CALLED WE, US AND OUR)
The Contract to which this Rider is attached is hereby modified by the
provisions of this Rider. The Rider's provisions shall control when there is a
conflict between this Rider and the Contract. This Rider becomes effective as of
the Contract Date unless a different Rider Date is stated below.
Benefits provided and charges made under the terms and conditions of this Rider
are described below. Under specified circumstances, this Rider may provide
periodic payments, a commuted value, or a death benefit. A periodic charge to
the Contract's Accumulation Value will be made prior to the date that any Rider
benefits become payable. This Rider will remain in effect until terminated under
conditions described below and as described under the MGWB Reset Option.
GUARANTEED WITHDRAWAL STATUS
----------------------------
On the Rider Date, this Rider is placed in Guaranteed Withdrawal Status.
Thereafter, while this status is maintained, this Rider does not modify your
rights under the Contract and no Rider benefits are provided. This status will
be maintained while all of the following conditions exist:
1) The MGWB Base and the Accumulation Value are both greater than zero;
2) The latest Annuity Commencement Date under the Contract has not been
reached;
3) The Contract has not been surrendered or otherwise terminated; and
4) The Rider has not been cancelled or otherwise terminated.
If the MGWB Base is reduced to zero while the Rider is in Guaranteed Withdrawal
Status, this Rider will terminate and no Rider benefits will be payable.
AUTOMATIC WITHDRAWAL STATUS
---------------------------
If the Accumulation Value is reduced to zero while the Rider is in Guaranteed
Withdrawal Status, the status changes to Automatic Withdrawal Status and the
Minimum Guaranteed Withdrawal Benefit ("MGWB") will be payable, subject to
conditions described below. The MGWB consists of:
1) MGWB Periodic Payments; and
2) A MGWB Death Benefit.
If this Rider enters Automatic Withdrawal Status, the Contract is modified as
follows:
1) No further premiums will be accepted;
2) The Contract will provide no further benefits other than as provided
in this Rider; and
3) Any other
Riders attached to the Contract shall terminate unless specified otherwise in
the Rider.
After this Rider enters Automatic Withdrawal Status, the Contract and this Rider
will terminate at the earliest of the following:
1) Payment of the final MGWB Periodic Payment;
2) Payment of the Commuted Value; and
3) Payment of the MGWB Death Benefit.
MGWB PERIODIC PAYMENTS
----------------------
MGWB Periodic Payments will be made annually, beginning on the Contract
Anniversary following the date the Rider enters Automatic Withdrawal Status. The
amount of each MGWB Periodic Payment equals the Maximum Annual Withdrawal, until
the MGWB Base is reduced to zero. If the MGWB Base is less than or equal to the
Maximum Annual Withdrawal at the time an MGWB Periodic Payment is due, that
payment will equal the remaining MGWB Base, and it will be the final MGWB
Periodic Payment.
RLNY-RA-2026
COMMUTED VALUE
--------------
At the Annuity Commencement Date, the Commuted Value will be paid to the Owner.
The Commuted Value will be the present value of any remaining MGWB Periodic
Payments. The interest rates used to determine the commuted value of the
payments are shown in the Contract Schedule.
MAXIMUM ANNUAL WITHDRAWAL
-------------------------
The Initial Maximum Annual Withdrawal is stated in the Contract Schedule.
Thereafter, the Maximum Annual Withdrawal will be increased by a percentage of
any subsequent Eligible Premiums, if any, as shown in the Contract Schedule, and
will be adjusted by withdrawals in excess of the Maximum Annual Withdrawal as
described below.
Withdrawals in excess of the Maximum Annual Withdrawal
If withdrawals in any Contract Year exceed the Maximum Annual Withdrawal, the
Maximum Annual Withdrawal available in subsequent years will be reduced by the
proportion that the excess portion of the withdrawal bears to the Accumulation
Value remaining after the withdrawal of the Maximum Annual Withdrawal.
MGWB DEATH BENEFIT
------------------
If the Owner dies while the Rider is in Automatic Withdrawal Status, MGWB
Periodic Payments will cease and the MGWB Death Benefit payable shall be the
remaining MGWB Base. Such amount shall be payable in a single lump sum.
MGWB RESET OPTION
-----------------
On any Contract Anniversary, you may elect in writing to exercise the MGWB Reset
Option provided:
(1) this Rider has been in force for five (5) years;
(2) the Contract's Accumulation Value is greater than the MGWB Base;
and
(3) the MGWB Step-Up Option has not been exercised, otherwise you
must wait at least five (5) years from the Step-Up Effective Date
to elect this Option.
To exercise this Option, you must provide us satisfactory written notice of your
election at our Customer Service Center. On the date we receive your written
notice, (the "Reset Effective Date"), this Rider will terminate and we will
issue a new MGWB Rider ("New Rider") currently offered by us at that time. The
Initial MGWB Base under the New Rider will equal the Contract's Accumulation
Value on the Reset Effective Date. The MGWB Charge under the New Rider will be
based on the MGWB Charge for such Riders then offered by us at that time.
Except in the event the MGWB Step-Up Option is exercised as provided in (3)
above, we may, from time to time, permit the exercise of this Option at any time
provided the Rider has been in force for five (5) years. Such change will apply
to all Riders on a uniform basis.
MGWB STEP-UP OPTION
-------------------
If the Rider Date is equal to the Contract Date, beginning on the fifth Contract
Anniversary and each Contract Anniversary thereafter, you may elect in writing
to exercise the MGWB Step-Up Option provided:
1) you have taken no withdrawals under the Contract;
2) this Rider has been in force for five (5) years; and
3) you have not previously exercised this Option during the term of
the Contract.
To exercise this Option, you must provide us satisfactory written notice of your
election at our Customer Service Center. On the Date we receive your written
notice (the "Step-Up Effective Date"), we will increase the MGWB Base and the
Maximum Annual Withdrawal by a factor of [20]%.
We may increase the MGWB Charge for the Rider after this Option is exercised.
However, the MGWB Charge after such increase will not exceed the lesser of (a)
the MGWB Charge then in effect for newly issued Riders of the same form; and (b)
the Maximum Charge shown in the Contract Schedule. We may, from time to time,
permit the exercise of this Option at any time on or after the fifth Contract
Anniversary. Such change will apply to all Riders on a uniform basis.
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MGWB BASE
---------
If this Rider is effective as of the Contract Date, the initial MGWB Base is the
initial premium, [plus any Credits]. If this Rider is added to the Contract
after the Contract Date, the initial MGWB Base is equal to the Accumulation
Value on the Rider Date. Thereafter, the MGWB Base is increased by Eligible
Premiums paid, [plus any Credits], adjusted for any Partial withdrawals,
transfers and any Rider benefits paid.
PARTIAL WITHDRAWAL ADJUSTMENTS
------------------------------
The MGWB Base will be reduced for any withdrawals taken. For withdrawals up to
the Maximum Annual Withdrawal in a Contract year, the MGWB Base will be reduced
by the amount of the withdrawal. Any withdrawals in excess of the Maximum Annual
Withdrawal will reduce the MGWB Base by the proportion that the excess
withdrawal bears to the Accumulation Value remaining after the withdrawal of the
Maximum Annual Withdrawal.
For purposes of determining whether the Maximum Annual Withdrawal has been
exceeded in any Contract Year, any applicable Market Value Adjustment or
Surrender Charge will be applied to the withdrawal only if the withdrawal, net
of surrender charges and the Market Value Adjustment, exceeds the Maximum Annual
Withdrawal.
Any MGWB Periodic Payments will reduce the MGWB Base by the amount of the
payment.
MGWB CHARGE
-----------
The charge for this Rider is a percentage of the Accumulation Value in the
Variable Separate Account divisions as of the deduction date. It is deducted
quarterly, in arrears, from the Accumulation in the Variable Separate Account
divisions, in the same proportion that the Accumulation Value in each division
bears to the total Accumulation Value in the Variable Separate Account. The
Maximum Charge on the Rider Date is stated in the Contract Schedule, but we may
charge less than the maximum. The deduction date is measured from the Contract
Date.
If the Contract to which this Rider is attached is terminated by surrender,
cancellation or application of the Contract's Value to an Income Benefit, the
Rider Charge for the current period will be deducted from the Accumulation Value
prior to termination of the Contract.
DEATH OF OWNER
--------------
At the death of any Owner while this Rider is in Guaranteed Withdrawal Status,
this Rider terminates and no further Rider benefits are provided. However, if
the surviving spouse of the deceased Owner continues the Contract as their own
as described in the Contract under the provision entitled Spousal Continuation
Upon Death of Owner and if, as a result, the Contract's Accumulation Value is
increased, the following will apply:
(a) the MGWB Base and Maximum Annual Withdrawal will also be reset
based on the increased Accumulation Value;
(b) the same MGWB Charge rate will continue to apply;
(c) such reset will not be considered an election of the MGWB Reset
Option; and
(d) this Rider will continue in effect.
CHANGE OF OWNER
---------------
Except as provided above under Death of Owner, upon change of Owner while this
Rider is in force, this Rider shall terminate and no Rider benefits will
thereafter be payable.
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RIDER TERMINATION
-----------------
Except as provided under the Guaranteed Withdrawal Status provision and MGWB
Reset Option, this Rider may not be cancelled unless the Contract is terminated.
ALLOCATIONS TO THE GENERAL ACCOUNT
----------------------------------
Allocations of Premium or Accumulation Value into Divisions of the General
Account are not allowed while this Rider is in effect.
This Rider has no surrender value or other non-forfeiture benefits upon
termination.
Rider Date: ______________ (if other than Contract Date)
Signed:
/s/ J.R. Gelder
President
RLNY-RA-2026 4
