HomeMy WebLinkAbout20041919 RESOLUTION
RE: APPROVE AMENDMENT TO 401(K) SAVINGS PLAN AND AUTHORIZE CHAIR TO
SIGN - PRINCIPAL FINANCIAL GROUP
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS,the Board has been presented with an Amendment to the 401(k)Savings Plan
between the County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County,and Principal Financial Group,effective June 1,2004,with further
terms and conditions being as stated in said amendment, and
WHEREAS,after review,the Board deems it advisable to approve said amendment,a copy
of which is attached hereto and incorporated herein by reference.
NOW,THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Amendment to the 401(k) Savings Plan between the County of Weld,
State of Colorado, by and through the Board of County Commissioners of Weld County, and
Principal Financial Group be, and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized to
sign said amendment.
The above and foregoing Resolution was,on motion duly made and seconded,adopted by
the following vote on the 12th day of July, A.D., 2004, nunc pro tunc June 1, 2004.
E11'me,i� WELRD OF COUNTY COMMISSIONERS
COUNTY, COLORADO
1861 (t , falit4
1♦�.
Robert D. Mas en, Chair
�r. ilClerk to the Board
®11 pm 776
William H. e, Pro-Tem
BY:
Deputy Clerk to the Board
M. C o`l/
AP V AST
David Lon?
my Attorn
Glenn Vaa
Date of OciaZ
2004-1919
PE0010
; /0G -O y
Principal
Financial
Group
June 25,2004
MS JEWEL VAUGHN
WELD COUNTY
915 10TH STREET
P O BOX 758
GREELEY CO 80632-0758
RE Weld County 401(k) Savings Plan
Annuity Contract No: (3)66947
Dear Ms.Vaughn
Thank you for being a client of the Principal Financial Group®. We appreciate your business.
I am enclosing a copy of the contract work that was prepared based on the revision(s)you
requested. This contract amendment adds all current available Separate Accounts to your contract.
Separate accounts not offered by you as an investment option will be suppressed. This will allow
you to change investment options in the future without an additional contract amendment. The
contract amendment will become part of your contract with us only after we receive a signed copy
of the signature page. Please file the original signature page with your contract.
I suggest you review the document with your legal or tax advisor to make sure it meets your needs.
If you find additional revisions are needed,please indicate the changes and return the affected
pages to me immediately so I can provide you with a revised copy. If you feel the document
correctly reflects the revisions you've requested,please return the signed and dated signature page
to me promptly. Timely handling of these matters is one of the best ways to avoid compliance
issues with your contract.
If you have any questions regarding your contract revisions,please call me at 1-800-988-7766,
extension 7736.
Sincerely
�ia e .S c-b ah t (?),t)
Dee Schrader
Sr Client Service Associate
Retirement and Investor Services
Phone(509)324-7736
Fax(515)362-2263
Schrader,Dee@principal.com
cc Masoud S. Shirazi
Retirement Services Office-Denver
Amy Jackson
Insurance products and plan administrative services are provided by Principal Life Insurance Company. Securities
offered through Princor Financial Services Corporation,800-547-7754, member SIPC. Princor and Principal Life are
members of the Principal Financial Group,Des Moines,IA 50392.
PO Box 8600,Waterloo,IA 50704 1-800-988-7766 www.principal.com
RIS Adm SK01RI5 2004-1919
Notice of Management Fees
WELD COUNTY 401(K) SAVINGS PLAN
Contract Number: 3-66947
Effective Date: 06/01/2004
The following chart outlines the management fees and rate levels for the Separate Accounts you have selected
for your plan which are listed in the"Premier"rider(s) in your contract, as well as the management fees for any
other Separate Accounts currently available in your contract. This chart replaces any previous charts we have
provided for your Separate Accounts, and should be filed with your contract, which includes management fees
previously in effect.
For information regarding the management fees and rate levels of those Separate Accounts listed in the
"Premier"rider(s)in your contract,but not selected for your plan, please contact your daily contact.
The Separate Account management fees listed do not include the management charge of any underlying mutual
funds the Separate Account may invest in. Please see the appropriate prospectuses for such charges. In addition
to this management charge,the underlying mutual fund will bear a pro-rata share of the expenses of any funds
in which it invests, if applicable.
Separate Account-Rate Level Management Fee
American Century Ultra(Adv)Sep Acct-Standard 0.16%
Fidelity Advisor Mid Cap(T)Sep Acct-Standard 0.16%
Principal Bond and Mortgage Separate Account-Standard 0.71%
Principal Bond Emphasis Balanced Separate Account-Std 0.00%
Principal Government Securities Separate Account-Std 0.56%
Principal International Stock Separate Account-Standard 1.06%
Principal Large Cap Stock Index Sep Acct-Standard 0.31%
Principal Medium Company Blend Separate Account-Standard 0.81%
Principal Medium Company Value Separate Account-Standard 0.81%
Principal Money Market Separate Account-Standard 0.56%
Principal Partners Large-Cap Blend I Separate Acct-Std 0.76%
Principal Partners Large-Cap Growth Sep Acct-Standard 1.16%
Principal Partners Large-Cap Value Sep Acct-Standard 0.16%
Principal Partners Small-Cap Value I Sep Acct-Standard 0.16%
Principal Real Estate Separate Account-Standard 1.15%
Principal Small Company Blend Separate Account-Standard 0.91%
Principal Small Company Growth Sep Acct-Standard 0.91%
Principal Stock Emphasis Balanced Separate Account-Std 0.00%
Russell LifePoints®Cons Strategy(I))Sep Acct-Standard 0.00%
Russell LifePoints®Moderate Strategy(D)Sep Acct-Std 0.00%
Russell LifePoints®Balanced Strategy(D)Sep Acct-Std 0.00%
Russell LifePoints®Agg Strategy(D)Sep Acct-Standard 0.00%
Russell LifePoints®Equity Agg Strat(D)Sep Acct-Std 0.00%
Premier t Report Created:06/25/2004
GROUP CONTRACT NO. GA 66947 AMENDMENT NO. 2
We,Us,Our means Principal Life Insurance Company
Contractholder means WELD COUNTY
It is mutually agreed by the undersigned that this Group Contract,issued by us to the Contractholder,is
amended as provided below:
Effective June 1,2004,
by striking the following:
Rider: GP R 45897
Rider: GP R 40119-2
Schedule: 2
and by substituting the following:
Schedule: 3
by adding the following:
Rider: GP R 50115
Rider: GP R 50117
Rider: GP R 40119-7
Rider: GP R 48916-3
The provisions and conditions set forth on any page of this amendment are a part of this Group Contract as
fully as if recited over the signatures on this page.
This amendment will not become effective unless we receive a copy signed by the Contractholder at our home
office in Des Moines,Iowa,within 30 days following the date we sign it or within such longer period as we
may allow.
Signed/ us on J U L 0 2 2004 by t \ A' e
03124/10-1 es.
(/ Senior Vice President and Chairman.President and
Corporate Secretary Chief Executive Officer
Registrar
Signed for Contractholder by
O 1// ''�t �
Title 1 o
GP 49415 1 Contract# 66947 Amend #2
Principal
Financial
Group
SCHEDULE OF SPECIFICATIONS GA 66947
This Schedule is a part of the contract to which it is attached. Terms defined in the contract have
the same meaning where used in this Schedule.
This is Schedule number 3 , effective June 1, 2004. It replaces all previous Schedules.
Plan Name: WELD COUNTY 401(K) SAVINGS PLAN
Deposit Year: The initial Deposit Year begins on the Contract Date and ends on December
31. 1985. Subsequent Deposit Years begin on January 1 and the same day of each following
year.
Options Available:
Guaranteed Interest Investments
Separate Account Investments
If Separate Account Investments are available under this contract, a Separate Account
Investment Rider will be attached. All Separate Accounts available under the contract
are listed in the rider or riders attached.
(Continued on next page)
GPS 5913-2
Schedule of Specifications, Page 2 GA 66947
Riders and Special Attachments:
Separate Account Investment Rider- GP R 40119-7
Separate Account Investment Rider--Premier - GP R 48916-3
Premier Separate Account Investment Rider-- Expanded(Allocated) - GP R 50115
Premier Separate Account Investment Rider -- Russell (Allocated) - GP R 50117
Removal of Dividend Section Rider- GP 44609
Flexible Investment Annuity Endorsement Rider- GP R 45038
Colorado Guaranty Association Notice- GP 31597 CO
Change of Name Endorsement- GP 25685 (if applicable)
Change of Name Endorsement- GP 44629 (if applicable)
Separate Account Name Change Endorsement - GP 46688 (if applicable)
Separate Account Investment Rider- GP R 48078 (if applicable)
Separate Account Change Endorsement - GP 47555 (if applicable)
Endorsement- GP 47312 (if applicable)
Endorsement- GP 47420 (if applicable)
Endorsement- GP 47311 (if applicable)
Janus Name Change Letter(if applicable)
Closure of Principal European Equity Separate Account Principal Pacific Basin Separate
Account Principal Technology Separate Account Endorsement-
GP 49435-1 (if applicable)
Principal Large Company Blend Separate Account Name Change Endorsement-
GP 49480 (if applicable)
Temporary Closure or Limitations to a Separate Account Endorsement-
GP 49767 (if applicable)
Janus Adviser Aggressive Growth(Ret) and Mason Street Endorsement-
GP 49809 (if applicable)
Closure of Principal Partners Mid-Cap Blend Separate Account Endorsement-
GP 49877 (if applicable)
Notations:
GPS 5913-2
SEPARATE ACCOUNT INVESTMENT RIDER
This rider is added to the Group Annuity Contract issued by us of which it is a part. All terms defined in the
contract have the same meaning where used in this rider. The effective date of this rider is the latest of(i)the
Contract Date,(ii)the date this rider has been approved for use in the state of issue,or(iii)the date stated in
the amendment adding this rider to the contract.
The purpose of this rider is to allow the contract to participate in our Separate Accounts. We reserve the right
to limit both the number of Separate Accounts available under the contract and the number available to each
Member. The following Separate Accounts may be available under this contract:
Principal Bond Emphasis Balanced Separate Account
Principal Stock Emphasis Balanced Separate Account
Principal Total Market Stock Index Separate Account
Although all Separate Accounts listed above may be available under this contract, you may send us
Notification indicating you want the contract administered so that assets held under this contract will not
participate in one or more of these Separate Accounts. You may revoke your Notification by sending us a new
Notification.
A. DESCRIPTIONS OF THE SEPARATE ACCOUNTS. Each Separate Account is a pooled
Separate Account for use by our retirement plan customers. The funds held in each Separate Account
will be invested and reinvested by us in accordance with applicable law, without regard to any
investment requirements of our general account assets or of any of our other Separate Accounts.
A Separate Account consists of funds we receive under group annuity contracts or policies which
permit deposit in such Separate Account and under which amounts are directed to such Separate
Account. All income gains and losses (whether or not realized), and expenses from the assets
allocated to a Separate Account will be credited to or charged against that Separate Account without
regard to any other income,gains or losses,or expenses we might have for our general account or any
other Separate Account. The assets of a Separate Account will not be charged with any liabilities
arising out of the investment experience of our general account or any other Separate Accounts outside
that Separate Account. We may occasionally invest the assets of any Separate Account in short term
money market instruments,cash or cash equivalents.
Principal Bond Emphasis Balanced Separate Account. Principal Bond Emphasis Balanced
Separate Account is invested in other Separate Accounts established and maintained by us. The
majority of the assets will be invested in other Separate Accounts which are invested primarily in
bonds,mortgages,commercial paper and other fixed income type investments. The remainder of the
assets of this Separate Account will be invested in one or more of our Separate Accounts invested
primarily in common stocks and other equity investments.
Principal Stock Emphasis Balanced Separate Account. Principal Stock Emphasis Balanced
Separate Account is invested in other Separate Accounts established and maintained by us. The
majority of the assets will be invested in other Separate Accounts which are invested primarily in
common stocks and other equity investments. The remainder of the assets of this Separate Account
will be invested in one or more of our Separate Accounts invested primarily in bonds, mortgages,
commercial paper and other fixed income type investments.
GPR 40119-7 1 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(04/04)
Principal Total Market Stock Index Separate Account. Principal Total Market Stock Index
Separate Account is invested in a manner calculated to give a result similar to the Standard and Poor's
1500 Supercomposite Stock Index (or a similar stock index if the Standard and Poor's 1500
Supercomposite Stock Index is no longer calculated). Initially,this Account will be invested in the
other Principal Stock Index Separate Accounts we offer. If we choose, the Account may also be
invested in stocks or securities,stock index futures, commercial paper, mutual funds or other funds
managed by other investment managers,and other types of investments as permitted under applicable
state law. This Separate Account may invest in the investments outlined in this Separate Account
description or in an underlying mutual fund or other type of investment that maintains the investment
described
B. DETERMINING SEPARATE ACCOUNT VALUES;OPERATING EXPENSES. The
value of a Separate Account is its market value less Operating Expenses accrued but not deducted,if
any.If a Separate Account invests in an underlying Mutual Fund the value of such Separate Account
is the number of the Mutual Fund shares it holds multiplied by the Mutual Fund's NAV for that
Valuation Date. If there is no readily available market, its value is the fair market value of the assets
held in such Separate Account as determined by us using generally accepted accounting practices and
applicable law. The value of all Separate Accounts will always be expressed in U.S.dollars. We will
determine the value of a Separate Account on each Valuation Date.
Net Asset Value(NAV)means the price per mutual fund share represented as a dollar amount.
Operating Expenses are those charges which must be paid in order to operate a Separate Account or
obtain investments for a Separate Account. Operating Expenses include, but are not limited to,
custodial fees,transfer taxes,brokerage fees,processing fees,and other taxes and fees associated with
the operation of a Separate Account. Operating expenses will be deducted from the Separate Account
associated with a particular charge on the next Valuation Date after the Operating Expenses have been
paid or are immediately payable. In accordance with our then-current procedures,various Separate
Accounts may share in the payment of certain Operating Expenses and, in some cases,we may use
certain fees paid to us by third parties to offset Operating Expenses incurred by a Separate Account
which would otherwise be payable from that Separate Account.
Valuation Date means the date we determine the value of a Separate Account. Valuation Dates will
occur on dates we determine,but at least on the last Business Day of a calendar month. Valuation will
occur at the end of each such day,according to our then-current procedures.
C. MANAGEMENT FEES. The Management Fee under each Separate Account will be a percentage
of the value of assets in such Separate Account, subject to the equivalent of a maximum annual
percentage listed in the Table of Separate Account Features. We reserve the right to change the
Management Fee to any charge up to the maximum limit at any time by giving you written notice at
least 30 days before the date the change is to take effect.
Management Fee means the fee consisting of the investment management charge and the contract
expense charge applicable to this class of contracts for each Separate Account.
The assets of Principal Bond Emphasis Balanced Separate Account, Principal Stock Emphasis
Balanced Separate Account, and Principal Total Market Stock Index Separate Account will pay
Management Fees under our other Separate Accounts in which they are invested. An additional
Management Fee will be charged under these Separate Accounts only for management services
actually performed exclusively for assets held in these Separate Accounts.
GPR 40119-7 2 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3(04/04)
A pro rata charge will be deducted from each Separate Account on each Valuation Date for the
number of calendar days within the Valuation Period ending on such Valuation Date.
Valuation Period means the period from the end of a Valuation Date to the end of the next following
Valuation Date.
D. SEPARATE ACCOUNT INVESTMENT. A Separate Account Investment is established for
each Member for a Separate Account for each type of Contribution a Member directs to such Separate
Account.
E. RETURNS CREDITED TO SEPARATE ACCOUNT INVESTMENTS.Each Separate
Account Investment established under this contract will be credited with its portion of the return
associated with the appropriate Separate Account. The return for a Separate Account will be based on
the change in value of that Separate Account less any Management Fee.
In order to track the returns for the Separate Account Investments established under this contract,we
will use a unit value system of recordkeeping,unless we determine that another recordkeeping system
would be more appropriate.
F. UNIT VALUE SYSTEM OF RECORDKEEPING. Under a unit value system of
recordkeeping,we will calculate the value of a Separate Account Investment for each Valuation Date
by multiplying the number of Separate Account units held in the Separate Account Investment by the
applicable Unit Value. A Unit Value is the dollar value for one unit.
Contributions or transfers to a Separate Account Investment increase the number of Separate Account
units credited to it. Transfers and payments from a Separate Account Investment reduce the number
of Separate Account units. The increase or decrease in the number of Separate Account units is
calculated by dividing the dollar amount of the contribution,transfer, or payment by the applicable
Unit Value.
We will calculate the Unit Value applicable to each Separate Account Investment on each Valuation
Date. The Unit Value will be based upon the total value of the Separate Account and the number of
existing Separate Account units.
When crediting Contributions and transfers added to a Separate Account Investment we will use the
Unit Value applicable to the Separate Account Investment for the Valuation Date on which we accept
the Contribution or transfer. If we accept the Contribution or transfer on a date other than a Valuation
Date, we will use the Unit Value for the next following Valuation Date.
We reserve the right to change our unit value recordkeeping system upon 30 days notice to you.
GPR 40119-7 3 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(04/04)
G. DEPOSITS TO SEPARATE ACCOUNTS; RESTRICTIONS AND ORDER OF
ENTRY.We reserve the right to defer,limit,or stop your or any Member's(as permitted by the Plan)
ability to direct Contributions and transfers to or from a Separate Account,and we may require you to
transfer existing account balances out of a Separate Account. We may exercise these rights if we
1. need to comply with regulation, statute,or decisional law to which we are subject,
2. believe it would be imprudent not to do so in fulfilling our fiduciary role as an investment
manager under the Employee Retirement Income Security Act of 1974,as amended(ERISA),
3. believe the investment approach of the Separate Account no longer makes sense, is
excessively expensive, or does not currently have any favorable investment opportunities
available,or
4. decide to suspend or discontinue operation of such Separate Account.
Contributions or transfers directed to a Separate Account that we have closed on a temporary basis,
will be treated as Contributions or transfers for which we have not received proper investment
directions and the provisions of the contract with regard to any such Contributions or transfers will
apply.
We must receive new investment direction for any Contributions formerly directed to a temporarily
closed Separate Account if you or the Member (as permitted by the Plan) wish to change the way
investments are treated,as described in the previous paragraph. Once a temporarily closed Separate
Account reopens,we must receive new investment directions in order to direct any Contributions or
transfers to such Separate Account. We may limit the application of such new investment directions
as necessary to protect the Separate Account.
Provisions for a permanently closed Separate Account. We will notify you in writing of our intent
to permanently close a Separate Account. You will have 60 days to request transfer as described in the
Paragraph labeled"Transfers and Payments from a Separate Account"below. If after 60 days we have
not received your written notification of where to transfer a closed Separate Account balance,we will
treat that account balance as a Contribution for which we do not have investment direction.
H. TRANSFERS AND PAYMENTS FROM A SEPARATE ACCOUNT INVESTMENT.
We will,upon Notification from you(the Member if permitted by the Plan),and subject to our right to
defer a transfer or payment as described in Section I,
1. transfer to the Member's Guaranteed Interest Investment or another Separate Account
Investment all or any portion of the Separate Account Investment specified,or
2. transfer to another Funding Agent all or any portion of the Member's Separate Account
Investment,or
3. pay the Member an amount equal to all or any portion of the Member's Separate Account
Investment,or
4. pay all or a part of a Member's Separate Account Investment to the Member as a loan if
permitted by the Plan.
GPR 40119-7 4 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(04/04)
The amount to be paid or transferred will be determined and paid or transferred within seven Business
Days after(i)the Valuation Date on which we receive the Notification,or(ii)a later Valuation Date
specified in the Notification. Payments and transfers will be made in accordance with our then-current
procedures. We will notify you in writing of these procedures. The amount transferred or paid will be
deducted from the Separate Account Investment from which such transfer or payment was requested
on the date of such transfer or payment. Each transfer to another Separate Account Investment may
occur only on a Valuation Date of that Separate Account.
We are not responsible for the application of amounts transferred to another Funding Agent.
LIMITATIONS ON TRANSFERS AND PAYMENTS FROM A SEPARATE
ACCOUNT INVESTMENT. In general, transfers and payments from a Separate Account
Investment will be made within seven Business Days after the first Valuation Date following the
request specified in Section H of this rider. We reserve the right,however,to defer such transfers or
payments up to the maximum number of days shown in the Table of Separate Account Features for
each Separate Account. If we defer any transfer or payment under this Section,we will determine the
amount to be transferred or paid on the date transfer or payment occurs. We will notify you in the
event of any deferment of more than 30 days under the provisions of this Section.
These limitations will not apply to the payments to the beneficiary of a Member due to the Member's
death, payments to a Member due to disability or retirement under the Plan and to purchases of
annuity under Article IV, Section 2 of the contract.
Special Limitation for Certain Separate Accounts. We reserve the right to make the portion of a
requested transfer in excess of the specified dollar limit in substantially equal monthly installments
over a period not to exceed the specified period,if,in the specified period which ends on the requested
date of transfer,all transfers and payments from the total of all Separate Account Investments invested
in a particular Separate Account which is subject to the dollar limit total the specified dollar limit or
more. For purposes of this limitation, transfers and payments from any other Separate Account
investments or funds included in the Separate Account from any other contracts or policies issued in
connection with the Plan or with any other retirement plan of the Employer will be included as a
transfer or payment from a Separate Account Investment. If this limitation is imposed by us,the first
installment will be made one month after the date of request, or on such later date that you specify.
The specified dollar limit and period are:
1. $20,000,000 and 36 months, respectively, for Principal Bond Emphasis Balanced Separate
Account,Principal Stock Emphasis Balanced Separate Account,and Principal Total Market
Stock Index Separate Account.
Mutual Fund Limitation. Without regard to any other feature of the contract or this rider, if any
limitation or delay is imposed by an underlying Mutual Fund, if any, we will be unable to transfer,
make payments, or apply amounts held under these Separate Accounts.
J. PLANS WHICH MAY INVEST IN THE SEPARATE ACCOUNTS. The Separate
Accounts are not registered with the Federal Securities and Exchange Commission and therefore only
Plans which meet certain requirements under the Code may invest in the Separate Accounts. If the
Internal Revenue Service or a court makes a final determination that the Plan no longer qualifies as a
qualified plan, we will require that you transfer any assets invested in the Separate Accounts. If we
decide that you must transfer assets from the Separate Accounts,we will send you a notice describing
GPR 40119-7 5 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3(04/04)
your options. Your Notification must clearly specify the Guaranteed Interest Investment(s) or the
Funding Agent to which you want the assets transferred. If we do not receive an acceptable
Notification from you within 5 Business Days,we will transfer the assets to the Guaranteed Interest
Investment with the shortest duration.
K. FUNDS. We are the sole owner of all assets held in the Separate Accounts.
PRINCIPAL LIFE INSURANCE COMPANY
bk`prxhatRte'
Chairman, President and
Chief Executive Officer
GPR 40119-7 6 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(04/04)
TABLE OF SEPARATE ACCOUNT FEATURES
Maximum
Current Maximum Number of
Annual Annual Days
Management Management Allowed to
Fee Fee Defer
Percentage Percentage Transfers or
Payments
Principal Bond Emphasis Balanced Separate Account None 2.00' 270
Principal Stock Emphasis Balanced Separate Account None 2.00' 270
Principal Total Market Stock Index Separate Account None 2.00' 270
The maximum annual Management Fee percentage includes Management Fees paid under this
Separate Account (currently none) and the Separate Accounts in which this Separate Account is
invested.
GPR 40119-7 7 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(04/04)
SEPARATE ACCOUNT INVESTMENT RIDER-PREMIER
This rider is added to the Group Annuity Contract issued by us of which it is a part. All terms defined in the
contract have the same meaning where used in this rider. The effective date of this rider is the latest of(i)the
Contract Date,(ii)the date this rider has been approved for use in the state of issue,or(iii)the date stated in
the amendment adding this rider to the contract.
The purpose of this rider is to allow the contract to participate in our Separate Accounts. We reserve the right
to limit both the number of Separate Accounts available under the contract and the number available to each
Member. The following Separate Accounts may be available under this contract:
Principal Bond and Mortgage Separate Account
Principal Government Securities Separate Account
Principal High Quality Intermediate-Term Bond Separate Account
Principal High Quality Long-Term Bond Separate Account
Principal High Quality Short-Term Bond Separate Account
Principal International Emerging Markets Separate Account
Principal International Small Company Separate Account
Principal International Stock Separate Account
Principal International Stock II Separate Account
Principal Large-Cap Blend I Separate Account
Principal Large Cap Stock Index Separate Account(aka Stock Index 500)
Principal Large Company Growth Separate Account
Principal Large Company Value Separate Account
Principal LifeTime 2010 Separate Account
Principal LifeTime 2020 Separate Account
Principal LifeTime 2030 Separate Account
Principal LifeTime 2040 Separate Account
Principal LifeTime 2050 Separate Account
Principal LifeTime Strategic Income Separate Account
Principal Medium Company Blend Separate Account
Principal Medium Company Growth Separate Account
Principal Medium Company Value Separate Account
Principal Mid Cap Stock Index Separate Account
Principal Money Market Separate Account
Principal Partners International Separate Account
Principal Partners Large-Cap Blend Separate Account
Principal Partners Large-Cap Blend I Separate Account
Principal Partners Large-Cap Growth Separate Account
Principal Partners Large-Cap Growth I Separate Account
Principal Partners Large-Cap Growth II Separate Account
Principal Partners Large-Cap Value Separate Account
Principal Partners Mid-Cap Growth Separate Account
Principal Partners Mid-Cap Growth I Separate Account
Principal Partners Mid-Cap Value Separate Account
Principal Partners Mid-Cap Value I Separate Account
Principal Partners Small-Cap Blend Separate Account
Principal Partners Small-Cap Growth I Separate Account
Principal Partners Small-Cap Growth II Separate Account
Principal Partners Small-Cap Value Separate Account
GPR 48916-3 1 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(05/04)
Principal Partners Small-Cap Value I Separate Account
Principal Preferred Securities Separate Account
Principal Real Estate Separate Account
Principal REIT Separate Account
Principal Small Cap Stock Index Separate Account
Principal Small Company Blend Separate Account
Principal Small Company Growth Separate Account
Principal Small Company Value Separate Account
Although all Separate Accounts listed above may be available under this contract, you may send us
Notification indicating you want the contract administered so that assets held under this contract will not
participate in one or more of these Separate Accounts. You may revoke your Notification by sending us a new
Notification.
A. DESCRIPTIONS OF THE SEPARATE ACCOUNTS. Each Separate Account is a pooled
Separate Account for use by our retirement plan customers. The funds held in each Separate Account
will be invested and reinvested by us in accordance with applicable law, without regard to any
investment requirements of our general account assets or of any of our other Separate Accounts.
A Separate Account consists of funds we receive under group annuity contracts or policies which
permit deposit in such Separate Account and under which amounts are directed to such Separate
Account. All income gains and losses (whether or not realized), and expenses from the assets
allocated to a Separate Account will be credited to or charged against that Separate Account without
regard to any other income,gains or losses,or expenses we might have for our general account or any
other Separate Account. The assets of a Separate Account will not be charged with any liabilities
arising out of the investment experience of our general account or any other Separate Accounts outside
that Separate Account. We may occasionally invest the assets of any Separate Account in short term
money market instruments,cash or cash equivalents.
Principal Bond and Mortgage Separate Account. Principal Bond and Mortgage Separate Account
is invested primarily in bond and mortgage-type investments similar to our general account,including
bonds and mortgages from both United States and non-United States corporations.
Principal Government Securities Separate Account. Principal Government Securities Separate
Account is invested primarily in obligations issued or guaranteed by United States governmental
agencies and instrumentalities, including, but not limited to, the Government National Mortgage
Association, the Federal National Mortgage Association, the Federal I-lome Loan Mortgage
Association and the Student Loan Marketing Association. This Separate Account may invest in the
investments outlined in this Separate Account description or in an underlying mutual fund or other
type of investment that maintains the investment described.
GPR 48916-3 2 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(05/04)
Principal High Quality Intermediate-Term Bond Separate Account. Principal High Quality
Intermediate-Term Bond Separate Account is a pooled investment account invested primarily in high
quality,publicly traded bonds(mainly corporates),Treasury notes and bonds,and government agency
bonds. The investments may also include such other foreign bond investments as are generally
considered appropriate for a high quality bond account. Such holdings shall be predominantly
denominated in U.S. dollars. In addition, some funds may be invested in OTC (over the counter)
derivative instruments such as options and futures. The fixed income investments in the account
typically have maturities of five to ten years. This Separate Account may invest in the investments
outlined in this Separate Account description or in an underlying mutual fund or other type of
investment that maintains the investment described.
Principal High Quality Long-Term Bond Separate Account. Principal High Quality Long-Term
Bond Separate Account is a pooled investment account invested primarily in high quality, publicly
traded bonds (mainly corporates), Treasury notes and bonds, and government agency bonds. The
investments may also include such other foreign bond investments as are generally considered
appropriate for a high quality bond account. Such holdings shall be predominantly denominated in
U.S. dollars. In addition, some funds may be invested in OTC (over the counter) derivative
instruments such as options and futures. The fixed income investments in the account typically have
maturities of ten years or longer.This Separate Account may invest in the investments outlined in this
Separate Account description or in an underlying mutual fund or other type of investment that
maintains the investment described.
Principal High Quality Short-Term Bond Separate Account. Principal High Quality Short-Term
Bond Separate Account is a pooled investment account invested primarily in high quality, publicly
traded bonds (mainly corporates), Treasury notes and bonds, and government agency bonds. The
investments may also include such other foreign bond investments as are generally considered
appropriate for a high quality bond account. Such holdings shall be predominantly denominated in
U.S. dollars. In addition, some funds may be invested in OTC (over the counter) derivative
instruments such as options and futures. The fixed income investments in the account typically have
maturities of less than five years.This Separate Account may invest in the investments outlined in this
Separate Account description or in an underlying mutual fund or other type of investment that
maintains the investment described.
Principal International Emerging Markets Separate Account. Principal International Emerging
Markets Separate Account is invested primarily in common stocks of corporations located in countries
outside the United States where structural changes are causing rapid economic growth and improved
standards of living. These investments may be made in either United States or foreign currency or
equivalencies.This Separate Account may invest in the investments outlined in this Separate Account
description or in an underlying mutual fund or other type of investment that maintains the investment
described.
Principal International Small Company Separate Account. Principal International Small
Company Separate Account is invested primarily in stocks or other securities of small corporations
located outside the United States. These investments may be made in either United States or foreign
currency or equivalencies. This Separate Account may invest in the investments outlined in this
Separate Account description or in an underlying mutual fund or other type of investment that
maintains the investment described.
GPR 48916-3 3 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3(05/04)
Principal International Stock Separate Account. Principal International Stock Separate Account is
invested primarily in a broad base of stocks or other securities of corporations located outside the
United States,but especially in Europe,South America,and the Pacific rim.These investments will be
made in foreign currency or equivalencies but investments in U.S. dollars are also allowed. This
Separate Account may invest in the investments outlined in this Separate Account description or in an
underlying mutual fund or other type of investment that maintains the investment described.
Principal International Stock H Separate Account. Principal International Stock II Separate
Account invests primarily in a broad base of stocks or other securities of corporations located outside
the United States, whose shares primary trading market is outside the United States, or who derive
most of their revenues outside the United States.These investments will be made in foreign currency
or equivalencies but investments in U.S. dollars are also allowed. The Separate Account may also
invest directly in the investments previously described or in some other type of investment that
maintains the investments previously described.
Principal Large-Cap Blend I Separate Account. Principal Large-Cap Blend I Separate Account
invests primarily in common stocks of large capitalization companies selected with value and/or
growth characteristics. A portfolio is constructed using an investment process designed to
systematically identify stocks with desirable characteristics and combine these stocks in a risk-
managed portfolio to maximize return potential by controlling risk. The investments may also include
OTC(over the counter)derivative instruments such as options and futures,other equity securities,or
other convertible securities that may be converted to common stocks. The Separate Account may also
invest directly in the investments previously described or in some other type of investment that
maintains the investments previously described.
Principal Large Cap Stock Index Separate Account(aka Stock Index 500). Principal Large Cap
Stock Index Separate Account is invested primarily in stocks and securities of companies similar to
those stocks which are used to calculate the Standard and Poor's 500 Stock Index(or a similar stock
index if the Standard and Poor's 500 Stock Index is no longer calculated). The investments may also
include a reasonable amount of stock index futures, commercial paper, OTC (over the counter)
derivative securities and other types of investments.In addition,some funds may be invested in stock
index accounts operated by other investment managers,including funds operated by affiliates of ours.
Principal Large Cap Stock Index Separate Account attempts to earn a return similar to that of the
Standard&Poor's 500 Stock Index.This Separate Account may invest in the investments outlined in
this Separate Account description or in an underlying mutual fund or other type of investment that
maintains the investment described.
Principal Large Company Growth Separate Account. Principal Large Company Growth Separate
Account is invested primarily in common stocks from large,established companies whose earnings are
expected to grow at above-average rates. The investments may also include OTC(over the counter)
derivative instruments such as options and futures, other equity securities, or other convertible
securities that may be converted to common stocks. This Separate Account may invest in the
investments outlined in this Separate Account description or in an underlying mutual fund or other
type of investment that maintains the investment described.
GPR 48916-3 4 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(05/04)
Principal Large Company Value Separate Account. Principal Large Company Value Separate
Account is invested primarily in common stocks from large, established companies with below-
average price/earnings ratios and above-average dividend yields which we view as undervalued by the
market. The investments may also include OTC (over the counter) derivative instruments such as
options and futures, other equity securities or other convertible securities that may be converted to
common stocks. If the market as a whole is overvalued,we may hold assets of this account in fixed
income securities instead of stocks.This Separate Account may invest in the investments outlined in
this Separate Account description or in an underlying mutual fund or other type of investment that
maintains the investment described.
Principal LifeTime 2010 Separate Account. Principal LifeTime 2010 Separate Account invests in
portfolios of the Principal Investors Fund. The intent is to give the account broad exposure to the
domestic and foreign equity and fixed-income markets.The Separate Account may also invest directly
in the investments previously described or in some other type of investment that maintains the
investments previously described.
Principal LifeTime 2020 Separate Account. Principal LifeTime 2020 Separate Account invests in
portfolios of the Principal Investors Fund. The intent is to give the account broad exposure to the
domestic and foreign equity and fixed-income markets.The Separate Account may also invest directly
in the investments previously described or in some other type of investment that maintains the
investments previously described.
Principal LifeTime 2030 Separate Account. Principal LifeTime 2030 Separate Account invests in
portfolios of the Principal Investors Fund. The intent is to give the account broad exposure to the
domestic and foreign equity and fixed-income markets.The Separate Account may also invest directly
in the investments previously described or in some other type of investment that maintains the
investments previously described.
Principal LifeTime 2040 Separate Account. Principal LifeTime 2040 Separate Account invests in
portfolios of the Principal Investors Fund. The intent is to give the account broad exposure to the
domestic and foreign equity and fixed-income markets.The Separate Account may also invest directly
in the investments previously described or in some other type of investment that maintains the
investments previously described.
Principal LifeTime 2050 Separate Account. Principal LifeTime 2050 Separate Account invests in
portfolios of the Principal Investors Fund. The intent is to give the account broad exposure to the
domestic and foreign equity and fixed-income markets.The Separate Account may also invest directly
in the investments previously described or in some other type of investment that maintains the
investments previously described.
Principal LifeTime Strategic Income Separate Account. Principal LifeTime Strategic Income
Separate Account invests in portfolios of the Principal Investors Fund. The portfolio uses a moderate
allocation strategy that is intended to give the assets exposure to the domestic and foreign equity and
fixed-income markets. The Separate Account may also invest directly in the investments previously
described or in some other type of investment that maintains the investments previously described.
GPR 48916-3 5 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(05/04)
Principal Medium Company Blend Separate Account. Principal Medium Company Blend
Separate Account is invested primarily in common stocks from medium-sized,established companies
whose stock exhibits a combination of substantial value and good earnings growth potential. The
investments may also include OTC (over the counter) derivative instruments such as options and
futures, other equity securities, or other convertible securities that may be converted to common
stocks. This Separate Account may invest in the investments outlined in this Separate Account
description or in an underlying mutual fund or other type of investment that maintains the investment
described.
Principal Medium Company Growth Separate Account. Principal Medium Company Growth
Separate Account is invested primarily in common stocks from medium-sized,developing companies
whose earnings are expected to grow at above average rates. The investments may also include OTC
(over the counter)derivative instruments such as options and futures,other equity securities,or other
convertible securities that may be converted to common stocks.This Separate Account may invest in
the investments outlined in this Separate Account description or in an underlying mutual fund or other
type of investment that maintains the investment described.
Principal Medium Company Value Separate Account. Principal Medium Company Value
Separate Account is invested primarily in common stocks from medium-sized, financially stable
companies with below-average price/earnings ratios and above-average dividend yields which we view
as undervalued by the market. The investments may also include OTC(over the counter)derivative
instruments such as options and futures,other equity securities or other convertible securities that may
be converted to common stocks. If the market as a whole is overvalued,we may hold assets of this
account in fixed income securities instead of stocks. This Separate Account may invest in the
investments outlined in this Separate Account description or in an underlying mutual fund or other
type of investment that maintains the investment described.
Principal Mid Cap Stock Index Separate Account. Principal Mid Cap Stock Index Separate
Account is invested primarily in stocks and securities of companies similar to those stocks which are
used to calculate the Standard and Poor's 400 MidCap Stock Index(or a similar stock index if the
Standard and Poor's 400 MidCap Stock Index is no longer calculated). The investments may also
include a reasonable amount of stock index futures, commercial paper, OTC (over the counter)
derivative securities and other types of investments. In addition,some funds may be invested in stock
index accounts operated by other investment managers,including funds operated by affiliates of ours.
Principal Mid Cap Stock Index Separate Account attempts to earn a return similar to that of the
Standard&Poor's 400 MidCap Stock Index. This Separate Account may invest in the investments
outlined in this Separate Account description or in an underlying mutual fund or other type of
investment that maintains the investment described.
Principal Money Market Separate Account. Principal Money Market Separate Account is invested
primarily in money market instruments such as the obligations of the United States government and its
agencies, commercial paper, bank certificates of deposit and similar instruments. This Separate
Account may invest in the investments outlined in this Separate Account description or in an
underlying mutual fund or other type of investment that maintains the investment described.
GPR 48916-3 6 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3(05/04)
Principal Partners International Separate Account. Principal Partners International Separate
Account is a pooled separate account which is invested in a mutual fund that invests primarily in
common stocks of companies located outside the United States. These stocks are selected for growth-
oriented characteristics and an attractive valuation. These investments may be made in either United
States or foreign currency or equivalencies. The Separate Account may also invest directly in the
investments previously described or in some other type of investment that maintains the investments
previously described.
Principal Partners Large-Cap Blend Separate Account. Principal Partners Large-Cap Blend
Separate Account invests primarily in equity securities of companies that offer superior growth
prospects or of companies whose stock is undervalued and,to a limited extent,foreign companies.The
investments may also include OTC (over the counter) derivative instruments such as options and
futures,other equity securities or other convertible securities that may be converted to common stocks.
The Separate Account may also invest directly in the investments previously described or in some
other type of investment that maintains the investments previously described.
Principal Partners Large-Cap Blend I Separate Account. Principal Partners Large-Cap Blend I
Separate Account is invested primarily in common stocks from large, established companies whose
stock exhibits a combination of substantial value and good earnings growth potential.The investments
may also include OTC (over the counter) derivative instruments such as options and futures, other
equity securities, or other convertible securities that may be converted to common stocks. This
Separate Account may invest in the investments outlined in this Separate Account description or in an
underlying mutual fund or other type of investment that maintains the investment described.
Principal Partners Large-Cap Growth Separate Account.Principal Partners Large-Cap Growth
Separate Account uses an active and aggressive style of management to invest primarily in common
stocks of larger, established companies. The investments may also include OTC(over the counter)
derivative instruments such as options and futures, other equity securities, or other convertible
securities that may be converted to common stocks. This Separate Account may invest in the
investments outlined in this Separate Account description or in an underlying mutual fund or other
type of investment that maintains the investment described.
Principal Partners Large-Cap Growth I Separate Account. Principal Partners Large-Cap Growth
I Separate Account seeks to maximize long-term capital appreciation by investing primarily in equity
securities of U.S. and, to a limited extent, foreign companies that exhibit strong or accelerating
earnings growth. This Separate Account uses an active and aggressive style of management to invest
primarily in common stocks of larger,established companies.The Separate Account may also invest
directly in the investments previously described or in some other type of investment that maintains the
investments previously described.
Principal Partners Large-Cap Growth II Separate Account. Principal Partners Large-Cap Growth
II Separate Account invests primarily in common stocks of large capitalization companies that are
expected to experience accelerating growth.The investments may also include OTC(over the counter)
derivative instruments such as options and futures, other equity securities, or other convertible
securities that may be converted to common stocks. The Separate Account may also invest directly in
the investments previously described or in some other type of investment that maintains the
investments previously described.
GPR 48916-3 7 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(05/04)
Principal Partners Large-Cap Value Separate Account. Principal Partners Large-Cap Value
Separate Account invests primarily in undervalued equity securities of companies among the 750
largest by market capitalization believed to offer above-average potential for growth in future earnings.
The investments may also include OTC(over the counter)derivative instruments such as options and
futures,other equity securities or other convertible securities that may be converted to common stocks.
The Separate Account may also invest directly in the investments previously described or in some
other type of investment that maintains the investments previously described.
Principal Partners Mid-Cap Growth Separate Account. Principal Partners Mid-Cap Growth
Separate Account uses an active and aggressive style of management to invest primarily in common
stocks of medium sized companies. The investments may also include OTC (over the counter)
derivative instruments such as options and futures, other equity securities, or other convertible
securities that may be converted to common stocks. This Separate Account may invest in the
investments outlined in this Separate Account description or in an underlying mutual fund or other
type of investment that maintains the investment described.
Principal Partners Mid-Cap Growth I Separate Account. Principal Partners Mid-Cap Growth I
Separate Account is a pooled separate account which is invested in a mutual fund that invests
primarily in common stocks of medium capitalization companies. The mutual fund uses a growth-
oriented value approach. The mutual fund may also hold investments in large and small capitalization
companies, including emerging and cyclical growth companies. The investments may also include
OTC(over the counter)derivative instruments such as options and futures,other equity securities,or
other convertible securities that may be converted to common stocks. The Separate Account may also
invest directly in the investments previously described or in some other type of investment that
maintains the investments previously described.
Principal Partners Mid-Cap Value Separate Account. Principal Partners Mid-Cap Value Separate
Account invests primarily in common stocks of medium sized companies using a value-oriented
investment approach.The investments may also include OTC(over the counter)derivative instruments
such as options and futures, other equity securities, or other convertible securities that may be
converted to common stocks. The Separate Account may also invest directly in the investments
previously described or in some other type of investment that maintains the investments previously
described.
Principal Partners Mid-Cap Value I Separate Account. Principal Partners Mid-Cap Value I
Separate Account is a pooled separate account which is invested in a mutual fund that invests
primarily in common stocks of medium capitalization companies. The mutual fund uses a value-
oriented investment approach. The investments may also include OTC(over the counter)derivative
instruments such as options and futures,other equity securities,or other convertible securities that may
be converted to common stocks. The Separate Account may also invest directly in the investments
previously described or in some other type of investment that maintains the investments previously
described.
Principal Partners Small-Cap Blend Separate Account. Principal Partners Small-Cap Blend
Separate Account invests primarily in common stocks of small capitalization companies selected using
a disciplined investment process that combines fundamental analysis and risk management with a
multi-factor model that searches for undervalued stocks. The investments may also include OTC(over
the counter) derivative instruments such as options and futures, other equity securities, or other
convertible securities that may be converted to common stocks. The Separate Account may also invest
directly in the investments previously described or in some other type of investment that maintains the
GPR 48916-3 8 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3(05/04)
investments previously described.
Principal Partners Small-Cap Growth I Separate Account. Principal Partners Small-Cap Growth I
Separate Account invests mainly in common stocks of smaller companies believed to be poised for
growth because of new products,markets, or management. The investments may also include OTC
(over the counter)derivative instruments such as options and futures,other equity securities,or other
convertible securities that may be converted to common stocks.The Separate Account may also invest
directly in the investments previously described or in some other type of investment that maintains the
investments previously described.
Principal Partners Small-Cap Growth II Separate Account. Principal Partners Small-Cap Growth
II Separate Account invests primarily in equity securities of smaller companies offering superior
prospects for earnings growth. These companies are generally characterized as"growth"companies.
The investments may also include OTC(over the counter)derivative instruments such as options and
futures, other equity securities, or other convertible securities that may be converted to common
stocks. The Separate Account may also invest directly in the investments previously described or in
some other type of investment that maintains the investments previously described.
Principal Partners Small-Cap Value Separate Account. Principal Partners Small-Cap Value
Separate Account is invested primarily in common stocks of small capitalization companies that are
considered to be under-valued by the market. Such stocks are commonly described as"value stocks".
The investments may also include OTC(over the counter)derivative instruments such as options and
futures,other equity securities or other convertible securities that may be converted to common stocks.
The Separate Account may also invest directly in the investments previously described or in some
other type of investment that maintains the investments previously described.
Principal Partners Small-Cap Value I Separate Account. Principal Partners Small-Cap Value I
Separate Account invests primarily in a diversified group of equity securities of U.S.companies with
small market capitalizations selecting those securities using fundamental research, systematic stock
valuation and a disciplined portfolio construction process. The investments may also include OTC
(over the counter)derivative instruments such as options and futures,other equity securities,or other
convertible securities that may be converted to common stocks. The Separate Account may also
invest directly in the investments previously described or in some other type of investment that
maintains the investments previously described.
Principal Preferred Securities Separate Account.Principal Preferred Securities Separate Account is
invested primarily in preferred stocks of U.S. companies. The Separate Account may also invest in
common stocks, debt securities, and securities issued or guaranteed by the U.S. Government or its
agencies or instrumentalities. The Separate Account may also invest directly in the investments
previously described or in some other type of investment that maintains the investments previously
described.
Principal Real Estate Separate Account. Principal Real Estate Separate Account is invested
primarily in real estate such as office buildings,industrial buildings,shopping centers,retail stores and
similar property.
Principal REIT Separate Account. The Principal RUT Separate Account invests primarily in
equity securities of companies principally engaged in the real estate industry. Investments may
include real estate investment trusts and companies with substantial real estate holdings such as paper,
GPR 48916-3 9 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(05/04)
lumber, hotel, and entertainment companies. The portfolio may invest up to 25% of its assets in
securities of foreign real estate companies. The Separate Account may also invest directly in the
investments previously described or in some other type of investment that maintains the investments
previously described.
Principal Small Cap Stock Index Separate Account. Principal Small Cap Stock Index Separate
Account is invested primarily in stocks and securities of companies similar to those stocks which are
used to calculate the Standard and Poor's 600 SmallCap Stock Index(or a similar stock index if the
Standard and Poor's 600 SmallCap Stock Index is no longer calculated). The investments may also
include a reasonable amount of stock index futures, commercial paper, OTC (over the counter)
derivative securities and other types of investments. In addition,some funds may be invested in stock
index accounts operated by other investment managers,including funds operated by affiliates of ours.
Principal Small Cap Stock Index Separate Account attempts to earn a return similar to that of the
Standard&Poor's 600 SmallCap Stock Index.This Separate Account may invest in the investments
outlined in this Separate Account description or in an underlying mutual fund or other type of
investment that maintains the investment described.
Principal Small Company Blend Separate Account. Principal Small Company Blend Separate
Account is invested primarily in common stocks from smaller, established companies whose stock
exhibits a combination of substantial value and good earnings growth potential. The investments may
also include OTC(over the counter)derivative instruments such as options and futures,other equity
securities, or other convertible securities that may be converted to common stocks. This Separate
Account may invest in the investments outlined in this Separate Account description or in an
underlying mutual fund or other type of investment that maintains the investment described.
Principal Small Company Growth Separate Account. Principal Small Company Growth Separate
Account is invested primarily in common stocks from smaller,developing companies whose earnings
are expected to grow at above average rates. The investments may also include OTC (over the
counter) derivative instruments such as options and futures, other equity securities, or other
convertible securities that may be converted to common stocks.This Separate Account may invest in
the investments outlined in this Separate Account description or in an underlying mutual fund or other
type of investment that maintains the investment described.
Principal Small Company Value Separate Account. Principal Small Company Value Separate
Account is invested primarily in common stocks from smaller, financially stable companies with
below-average price/earnings ratios and above-average dividend yields which we view as undervalued
by the market. The investments may also include OTC(over the counter)derivative instruments such
as options and futures,other equity securities or other convertible securities that may be converted to
common stocks. If the market as a whole is overvalued,we may hold assets of this account in fixed
income securities instead of stocks. This Separate Account may invest in the investments outlined in
this Separate Account description or in an underlying mutual fund or other type of investment that
maintains the investment described.
B. DETERMINING SEPARATE ACCOUNT VALUES; OPERATING EXPENSES.The
value of a Separate Account is its market value (appraised market value for Principal Real Estate
Separate Account) less Operating Expenses accrued but not deducted, if any. To the extent that a
Separate Account invests in a Mutual Fund,the value of such Separate Account is the number of the
shares invested in the Mutual Fund multiplied by the Mutual Fund's NAV for that Valuation Date.If
there is no readily available market, its value is the fair market value of the assets held in such
Separate Account as determined by us using generally accepted accounting practices and applicable
GPR 48916-3 10 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(05/04)
law. The value of all Separate Accounts will always be expressed in U.S.dollars. We will determine
the value of a Separate Account on each Valuation Date.
Net Asset Value(NAV)means the price per mutual fund share represented as a dollar amount.
Operating Expenses are those charges which must be paid in order to operate a Separate Account or
obtain investments for a Separate Account. Operating Expenses include, but are not limited to,
custodial fees,transfer taxes,brokerage fees,processing fees,and other taxes and fees associated with
the operation of a Separate Account. Operating expenses will be deducted from the Separate Account
associated with a particular charge on the next Valuation Date after the Operating Expenses have been
paid or are immediately payable. In accordance with our then-current procedures,various Separate
Accounts may share in the payment of certain Operating Expenses and, in some cases, we may use
certain fees paid to us by third parties to offset Operating Expenses incurred by a Separate Account
which would otherwise be payable from that Separate Account.
Valuation Date means the date we determine the value of a Separate Account. Valuation Dates will
occur on dates we determine,but at least on the last Business Day of a calendar month. Valuation will
occur at the end of each such day, according to our then-current procedures. For purposes of the
Principal International Stock Separate Account, Principal International Stock II Separate Account,
Principal International Small Company Separate Account,Principal International Emerging Markets
Separate Account, and Principal Partners International Separate Account only those days on which
both the value of the underlying investments is determined and we are open for business will be
Valuation Dates.
C. MANAGEMENT FEES. The Management Fee under each Separate Account will be a percentage
of the value of assets in such Separate Account, subject to the equivalent of a maximum annual
percentage listed in the Table of Separate Account Features. We will determine the Management Fee
for each Separate Account and report it to you. We reserve the right to change the Management Fee to
any charge up to the maximum limit at any time by giving you written notice at least 30 days before
the date the change is to take effect.
Management Fee means the charge consisting of the investment Management Fee and the contract
expense charge applicable to this class of contracts for each Separate Account which we determine
and report to you.
A pro rata charge will be deducted from each Separate Account on each Valuation Date for the
number of calendar days within the Valuation Period ending on such Valuation Date.
Valuation Period means the period from the end of a Valuation Date to the end of the next following
Valuation Date.
D. SEPARATE ACCOUNT INVESTMENT. A Separate Account Investment is established for
each Member for a Separate Account for each type of Contribution a Member directs to such Separate
Account.
An Unallocated Separate Account Investment will be established for Contributions we accept for
which we do not have investment direction or for which you have Notified us that such Contributions
are not to be allocated at this time. You may Notify us of the Separate Account you wish to be used as
the Unallocated Separate Account Investment. If you have not given us such Notification, we will
establish such an account for this contract using the Principal Money Market Separate Account. In
GPR 48916-3 11 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(05/04)
any event, if you do not wish to have an Unallocated Separate Account Investment established
hereunder,you may so Notify us and we will not establish one. If no Unallocated Separate Account
Investment is established under this contract, all Contributions for which we have no investment
direction will be directed to Member's Guaranteed Interest Investment with the shortest Guarantee
Period then available under the contract.
Unallocated Separate Account Investment means the account established to hold unallocated
Contributions, invested in the separate account specified by you or the Principal Money Market
Separate Account,and operates as if it were a Member's account. By mutual agreement with us,you
may specify one or more other Separate Accounts to use as Unallocated Separate Account
Investments. If more than one Unallocated Separate Account Investment is established, you must
Notify us which Unallocated Separate Account Investment is to be used for any such unallocated
Contributions.
E. RETURNS CREDITED TO SEPARATE ACCOUNT INVESTMENTS. Each Separate
Account Investment established under this contract will be credited with its portion of the return
associated with the appropriate Separate Account. The return for a Separate Account will be based on
the change in value of that Separate Account less any Management Fee.
In order to track the returns for the Separate Account Investments established under this contract,we
will use a unit value system of recordkeeping,unless we determine that another recordkeeping system
would be more appropriate.
F. UNIT VALUE SYSTEM OF RECORDICEEPING. Under a unit value system of
recordkeeping,we will calculate the value of a Separate Account Investment for each Valuation Date
by multiplying the number of Separate Account units held in the Separate Account Investment by the
applicable Unit Value.
Unit Value means the dollar value for one unit.
Contributions or transfers to a Separate Account Investment increase the number of Separate Account
units credited to it. Transfers and payments from a Separate Account Investment reduce the number
of Separate Account units. The increase or decrease in the number of Separate Account units is
calculated by dividing the dollar amount of the contribution, transfer, or payment by the applicable
Unit Value.
We will calculate the Unit Value applicable to each Separate Account Investment on each Valuation
Date. The Unit Value will be based upon the total value of the Separate Account and the number of
existing Separate Account units.
When crediting Contributions and transfers added to a Separate Account Investment we will use the
Unit Value applicable to the Separate Account Investment for the Valuation Date on which we accept
the Contribution or transfer. If we accept the Contribution or transfer on a date other than a Valuation
Date,we will use the Unit Value for the next following Valuation Date.
We reserve the right to change our unit value recordkeeping system upon 30 days notice to you.
GPR 48916-3 12 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3(05/04)
G. DEPOSITS TO SEPARATE ACCOUNTS; RESTRICTIONS AND ORDER OF
ENTRY.We reserve the right to defer,limit,or stop your or any Member's(as permitted by the Plan)
ability to direct Contributions and transfers to or from a Separate Account,and we may require you to
transfer existing account balances out of a Separate Account. We may exercise these rights if we
1. need to comply with regulation,statute, or decisional law to which we are subject,
2. believe it would be imprudent not to do so in fulfilling our fiduciary role as an investment
manager under the Employee Retirement Income Security Act of 1974,as amended(ERISA),
3. believe the investment approach of the Separate Account no longer makes sense, is
excessively expensive, or does not currently have any favorable investment opportunities
available, or
4. decide to suspend or discontinue operation of such Separate Account.
Contributions or transfers directed to a Separate Account that we have closed on a temporary basis,
other than Principal Real Estate Separate Account, will be treated as Contributions or transfers for
which we have not received proper investment directions and the provisions of the contract with
regard to any such Contributions or transfers will apply.
We must receive new investment direction for any Contributions formerly directed to a temporarily
closed Separate Account if you or the Member(as permitted by the Plan) wish to change the way
investments are treated,as described in the previous paragraph. Once a temporarily closed Separate
Account reopens,we must receive new investment directions in order to direct any Contributions or
transfers to such Separate Account. We may limit the application of such new investment directions
as necessary to protect the Separate Account.
Contributions or transfers directed to the Principal Real Estate Separate Account,if we have closed it
on a temporary basis,will be directed to Principal Money Market Separate Account,if available,or to
such other separate account or general account option as you or the Member may have chosen for a
default. We will maintain records of all such Contributions or transfer requests so that such amounts
will be transferred to the closed Separate Account as soon as permitted under the terms of the contract.
Provisions for Principal Real Estate Separate Account if it has been temporarily closed. We
have established the following order of entry into this Separate Account that was temporarily closed,
then reopened:
1. All amounts held in Principal Money Market Separate Account waiting for transfer to the
Separate Account.
2. Any amounts held in any other Separate Account or in our general account which are to be
transferred to the Separate Account.
Within each of the above 2 categories, amounts will be transferred one customer at a time, in order
from the oldest waiting Contribution or transfer to the newest Contribution or transfer.
Normally, if the amount of the intended transfer is greater than the amount open for acceptance by a
previously closed Separate Account,the entire amount of the transfer will continue to be held in the
investment option it was in at the time of the request until the Valuation Date when complete transfer
GPR 48916-3 13 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3(05/04)
may be made. However,we and you(the Member, if permitted by the Plan)may mutually agree to
transfer only a portion of the intended amount to the Separate Account.
We will notify you in writing when amounts have been transferred to a reopened Separate Account.
You or a Member,as permitted by the Plan,may revoke a request for transfer of finds to a Separate
Account by telling us in writing before the date transfer is made. The notification must also include
new investment directions for the intended transfer.
Provisions for a permanently closed Separate Account. We will notify you in writing of our intent
to permanently close a Separate Account. You will have 60 days to request transfer as described in the
Paragraph labeled"Transfers and Payments from a Separate Account"below. If after 60 days we have
not received your written notification of where to transfer a closed Separate Account balance,we will
treat that account balance as a Contribution for which we do not have investment direction.
H. TRANSFERS AND PAYMENTS FROM A SEPARATE ACCOUNT INVESTMENT.
We will,upon Notification from you(the Member if permitted by the Plan),and subject to our right to
defer a transfer or payment as described in Section I,
1. transfer to the Member's Guaranteed Interest Investment or another Separate Account
Investment all or any portion of the Separate Account Investment specified,or
2. transfer to another Funding Agent all or any portion of the Member's Separate Account
Investment,or
3. pay the Member an amount equal to all or any portion of the Member's Separate Account
Investment,or
4. pay all or a part of a Member's Separate Account Investment to the Member as a loan if
permitted by the Plan.
The amount to be paid or transferred will be determined and paid or transferred within seven Business
Days after(i)the Valuation Date on which we receive the Notification,or(ii)a later Valuation Date
specified in the Notification. Payments and transfers will be made in accordance with our then-current
procedures. We will notify you in writing of these procedures. The amount transferred or paid will be
deducted from the Separate Account Investment from which such transfer or payment was requested
on the date of such transfer or payment. Each transfer to another Separate Account Investment may
occur only on a Valuation Date of that Separate Account.
We are not responsible for the application of amounts transferred to another Funding Agent.
LIMITATIONS ON TRANSFERS AND PAYMENTS FROM A SEPARATE
ACCOUNT INVESTMENT. In general, transfers and payments from a Separate Account
Investment will be made within seven Business Days after the first Valuation Date following the
request specified in Section H of this rider. We reserve the right,however,to defer such transfers or
payments up to the maximum number of days shown in the Table of Separate Account Features for
each Separate Account. If we defer any transfer or payment under this Section,we will determine the
amount to be transferred or paid on the date transfer or payment occurs. We will notify you in the
event of any deferment of more than 30 days under the provisions of this Section.
GPR 48916-3 14 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(05/04)
These limitations will not apply to the payments to the beneficiary of a Member due to the Member's
death, payments to a Member due to disability or retirement under the Plan and to purchases of
annuity under Article IV, Section 2 of the contract.
Special Real Estate Limitations. Because of the illiquid nature of the assets in which Principal Real
Estate Separate Account is invested, we reserve the right to defer transfers or payments from a
Principal Real Estate Separate Account Investment if a transfer or payment would exceed the amount
of cash and other liquid assets held in Principal Real Estate Separate Account,reduced by amounts
committed to purchase properties or needed for Operating Expenses. We will not defer requested
transfers or payments for longer than three years under this paragraph. For any Plan that allows
Members to direct some or all of their investments to the Principal Real Estate Separate Account and
for which we keep records,we will notify all Members in the event of any deferment of more than 45
days of a type described under this paragraph which arises under any of our contracts having access to
the Principal Real Estate Separate Account. Our notice to those Members will be in writing and will
explain the investment and transfer options available to the Members.
Principal Real Estate Separate Account may be illiquid for indefinite periods of time. We will not
manage Principal Real Estate Separate Account to provide a liquidity pool for requests for transfer or
payment. If requests for transfer or payment from Principal Real Estate Separate Account are
deferred,then the deferred transfers or payments,when made, will be made in the following order:
1. Any death benefits payable under a defined contribution plan.
2. All or a portion of each of the other requests for payment,determined as follows:
a. the amount of the request, divided by
b. the amount of all waiting requests,multiplied by
c. the amount we determine to be available to pay requests;provided,however,that no
more than the amount of the request shall be paid out.
Deferred transfers or payments,when paid,will be made as of a Valuation Date and will be based on
the Principal Real Estate Separate Account Unit Value as of the date paid. In determining the amount
available to pay requests, we will subtract amounts payable under any other group annuity contract
which requires that we make payments from the Principal Real Estate Separate Account using a
method other than the one described in this Section.
We reserve the right to make payments in a different manner than described in this Section if we(i)
are required to do so under applicable statutes,regulations,or decisional law to which we are subject,
(ii) must do so to comply with our fiduciary responsibilities as an ERISA investment manager as
described in Article H,Section 8,or(iii)deem it necessary to make a change to maintain an equitable
distribution of assets under all of our group annuity contracts. We will not implement a change under
item(iii)before the notice to all affected Contractholders is provided and the appropriate time period
after the notice has elapsed.
Special Limitation for Certain Separate Accounts. We reserve the right to make the portion of a
requested transfer in excess of the specified dollar limit in substantially equal monthly installments
over a period not to exceed the specified period,if,in the specified period which ends on the requested
date of transfer,all transfers and payments from the total of all Separate Account Investments invested
GPR 48916-3 15 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(05/04)
in a particular Separate Account which is subject to the dollar limit total the specified dollar limit or
more. For purposes of this limitation, transfers and payments from any other Separate Account
investments or funds included in the Separate Account from any other contracts or policies issued in
connection with the Plan or with any other retirement plan of the Employer will be included as a
transfer or payment from a Separate Account Investment. If this limitation is imposed by us,the first
installment will be made one month after the date of request, or on such later date that you specify.
The specified dollar limit and period are:
1. $1,000,000 and 12 months,respectively,for Principal International Small Company Separate
Account,Principal International Emerging Markets Separate Account.
2. $20,000,000 and 36 months,respectively, for all other Separate Accounts described in this
Rider except Principal Money Market Separate Account and Principal Bond and Mortgage
Separate Account.
Mutual Fund Limitation. Without regard to any other feature of the contract or this rider, if any
limitation or delay is imposed by an underlying Mutual Fund, if any, we will be unable to transfer,
make payments,or apply amounts held under these Separate Accounts.
J. PLANS WHICH MAY INVEST IN THE SEPARATE ACCOUNTS. The Separate Accounts are
not registered with the Federal Securities and Exchange Commission and therefore only Plans which
meet certain requirements under the Code may invest in the Separate Accounts. If the Internal
Revenue Service or a court makes a final determination that the Plan no longer qualifies as a qualified
plan,we will require that you transfer any assets invested in the Separate Accounts. If we decide that
you must transfer assets from the Separate Accounts, we will send you a notice describing your
options. Your Notification must clearly specify the Guaranteed Interest Investment(s)or the Funding
Agent to which you want the assets transferred. If we do not receive an acceptable Notification from
you within 5 Business Days,we will transfer the assets to the Guaranteed Interest Investment with the
shortest duration.
K. FUNDS. We are the sole owner of all assets held in the Separate Accounts.
L. AMENDMENT BY US. As of any date,we may unilaterally strike this rider and replace it with a
rider to allow participation in any additional Separate Account or Accounts offered by us. Such
revised rider will not change the provisions of any existing Separate Account. Participation in any
additional Separate Account by a member will be by Notification.
PRINCIPAL LIFE INSURANCE COMPANY
RJI�
Chairman, President and
Chief Executive Officer
GPR 48916-3 16 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(05/04)
TABLE OF SEPARATE ACCOUNT FEATURES
Maximum Maximum Number Annual of Days owed to
Separate Account Management Defer Transfers anlsfers or
Fee Percentage Payments
Principal Bond and Mortgage Separate Account 2.00 270
Principal Government Securities Separate Account 2.00 90
Principal High Quality Intermediate-Term Bond Separate Account 2.00 270
Principal High Quality Long-Term Bond Separate Account 2.00 270
Principal High Quality Short-Term Bond Separate Account 2.00 270
Principal International Emerging Markets Separate Account 2.00 270
Principal International Small Company Separate Account 2.00 270
Principal International Stock Separate Account 2.00 270
Principal International Stock II Separate Account 2.00 270
Principal Large-Cap Blend I Separate Account 2.00 270
Principal Large Cap Stock Index Separate Account 2.00 270
Principal Large Company Growth Separate Account 2.00 270
Principal Large Company Value Separate Account 2.00 270
Principal LifeTime 2010 Separate Account 2.00 270
Principal LifeTime 2020 Separate Account 2.00 270
Principal LifeTime 2030 Separate Account 2.00 270
Principal LifeTime 2040 Separate Account 2.00 270
Principal LifeTime 2050 Separate Account 2.00 270
Principal LifeTime Strategic Income Separate Account 2.00 270
Principal Medium Company Blend Separate Account 2.00 270
Principal Medium Company Growth Separate Account 2.00 270
Principal Medium Company Value Separate Account 2.00 270
Principal Mid Cap Stock Index Separate Account 2.00 270
Principal Money Market Separate Account 2.00 90
Principal Partners International Separate Account 2.00 270
Principal Partners Large-Cap Blend Separate Account 2.00 270
Principal Partners Large-Cap Blend I Separate Account 2.00 270
Principal Partners Large-Cap Growth Separate Account 2.00 270
Principal Partners Large-Cap Growth I Separate Account 2.00 270
Principal Partners Large-Cap Growth II Separate Account 2.00 270
Principal Partners Large-Cap Value Separate Account 2.00 270
Principal Partners Mid-Cap Growth Separate Account 2.00 270
Principal Partners Mid-Cap Growth I Separate Account 2.00 270
Principal Partners Mid-Cap Value Separate Account 2.00 270
Principal Partners Mid-Cap Value I Separate Account 2.00 270
Principal Partners Small-Cap Blend Separate Account 2.00 270
Principal Partners Small-Cap Growth I Separate Account 2.00 270
Principal Partners Small-Cap Growth II Separate Account 2.00 270
Principal Partners Small-Cap Value Separate Account 2.00 270
GPR 48916-3 17 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3(05/04)
Maximum Maximum Number
Separate Account Annual of Days Allowed to
Management Defer Transfers or
Fee Percentage Payments
Principal Partners Small-Cap Value I Separate Account 2.00 270
Principal Preferred Securities Separate Account 2.00 270
Principal Real Estate Separate Account None Three(3)years
Principal REIT Separate Account 2.00 270
Principal Small Cap Stock Index Separate Account 2.00 270
Principal Small Company Blend Separate Account 2.00 270
Principal Small Company Growth Separate Account 2.00 270
Principal Small Company Value Separate Account 2.00 270
•
GPR 48916-3 18 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3(05/04)
PREMIER SEPARATE ACCOUNT INVESTMENT RIDER-
EXPANDED (ALLOCATED)
This rider is added to the Group Annuity Contract issued by us of which it is a part. All terms
defined in the contract have the same meaning where used in this rider. The effective date of this
rider is the latest of(i)the Contract Date,(ii)the date this rider has been approved for use in the state
of issue, or(iii)the date stated in the amendment adding this rider to the contract.
The purpose of this rider is to allow the contract to participate in our Separate Accounts which invest
in nonproprietary Mutual Funds and other authorized investments. We reserve the right to limit both
the number of Separate Accounts available under the contract and the number available to each
Member.
Although all Separate Accounts listed in Schedule I may be available under this contract,you may
send us Notification indicating you want the contract administered so that the Plan will not
participate in one or more of these Separate Accounts. You may revoke your Notification by sending
us a new Notification.
A. DEFINITIONS.
Management Fee means the charge consisting of the investment management fee and the
contract expense charge applicable to this class of contracts for each Separate Account which
we determine and report to you.
Mutual Fund means any diversified,open-end management investment company registered
under the Investment Company Act of 1940 which is an underlying investment of the
Separate Account which is made available by us, as listed in Schedule 1.
We reserve the right, subject to compliance with applicable law, to make additions to,
deletions from, substitution for, or combinations of,the Mutual Funds listed in Schedule 1
which are made available through one or more Separate Accounts.
Net Asset Value (NAV)means the price per share of a Mutual Fund represented as a dollar
amount.
Separate Account means each Separate Account established by us, which is maintained by
us, made available to you by us, and identified in Schedule 1 of this rider. Each Separate
Account is a pooled Separate Account for use by our retirement plan customers. The
amounts held in each Separate Account will be invested and reinvested in accordance with
applicable law. Amounts credited to any Separate Account shall be invested in the shares of
the Mutual Fund in which the Separate Account invests.
GPR 50115 1 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3 (08/03)
A Separate Account consists of funds we receive under group annuity contracts or policies
which permit deposit in such Separate Account and under which amounts are directed to
such Separate Account. All income gains and losses(whether or not realized),and expenses
from the assets allocated to a Separate Account will be credited to or charged against that
Separate Account without regard to any other income,gains or losses,or expenses we might
have for our general account or any other Separate Account. The assets of a Separate
Account will not be charged with any liabilities arising out of the investment experience of
our general account or any other Separate Accounts outside that Separate Account. We may
occasionally invest the assets of any Separate Account in short term money market
instruments, cash or cash equivalents.
We reserve the right, subject to compliance with applicable law, to make additions to,
deletions from,substitution for,or combinations of,the Separate Accounts listed in Schedule
1.
Valuation Date means the date we determine the value of a Separate Account. Valuation
Dates will occur on dates we determine,but at least on the last Business Day of each calendar
month. Valuation will occur at the end of each such day, according to our then-current
procedures.
Valuation Period means the period from the end of a Valuation Date to the end of the next
Valuation Date.
B. DETERMINING SEPARATE ACCOUNT VALUES. The value of a Separate
Account on any Valuation Date is the number of Mutual Fund shares held in the Separate
Account multiplied on a Valuation Date by the Mutual Fund's NAV for that Valuation Date.
The value of all Separate Accounts will always be expressed in U.S. dollars. We will
determine the value of a Separate Account on each Valuation Date.
C. MANAGEMENT FEES. The Management Fee under each Separate Account will be a
percentage of the value of the amounts held in such Separate Account, subject to the
equivalent of the maximum annual percentage listed in the Table of Separate Account
Features of this rider. We will determine the Management Fee for each Separate Account
and report it to you. We reserve the right to change the Management Fee to any amount up to
the maximum limit at any time by giving you written notice at least 30 days before the date
the change is to take effect. Each Mutual Fund's management fees are separate from the
Management Fees of the Separate Accounts and can be found in the prospectus for the
Mutual Fund.
The Management Fee will be deducted pro-rata from each Separate Account on each
Valuation Date for the number of calendar days within the Valuation Period ending on such
Valuation Date.
GPR 50115 2 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3 (08/03)
Operating Expenses are those charges which must be paid in order to operate a Separate
Account or obtain investments for a Separate Account. Operating Expenses include,but are
not limited to,custodial fees,transfer taxes,brokerage fees,processing fees,and other taxes
and fees associated with the operation of a Separate Account. Operating expenses will be
deducted from the Separate Account associated with a particular charge on the next
Valuation Date after the Operating Expenses have been paid or are immediately payable. In
accordance with our then-current procedures, various Separate Accounts may share in the
payment of certain Operating Expenses and,in some cases,we may use certain fees paid to
us by third parties to offset Operating Expenses incurred by a Separate Account which would
otherwise be payable from that Separate Account.
D. SEPARATE ACCOUNT INVESTMENT. A Separate Account Investment is
established for each Member for each Separate Account to which the Member directs
Contributions.
E. RETURNS CREDITED TO SEPARATE ACCOUNT INVESTMENTS.
Each Separate Account Investment established under this contract will be credited with its
portion of the return associated with the appropriate Separate Account. The return for a
Separate Account will be based on the change in value of that Separate Account less any
Management Fee.
In order to track the returns for the Separate Account Investments established under this
contract,we will use a unit value system of recordkeeping,unless we determine that another
recordkeeping system would be more appropriate.
F. UNIT VALUE SYSTEM OF RECORDKEEPING. Under a unit value system of
recordkeeping, we will calculate a unit value to be. used with the Separate Account
Investments on each Valuation Date. To calculate the unit value, we first determine the
value of the Separate Account as described in Section B. of this rider. Then, we will
calculate the Management Fee as described in Section C. of this rider. Finally, we will
calculate the unit value by dividing the value of the Separate Account less any Management
Fee by the aggregate number of units in the Separate Account attributable to the contract.
We will calculate the unit value on each Valuation Date.
Contributions or transfers to a Separate Account Investment increase the number of Separate
Account units credited to it. Transfers and payments from a Separate Account Investment
reduce the number of Separate Account units. The increase or decrease in the number of
Separate Account units is calculated by dividing the dollar amount of the contribution,
transfer, or payment by the applicable unit value.
GPR 50115 3 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3 (08/03)
When crediting Contributions and transfers to a Separate Account Investment we will use the
unit value applicable to the Separate Account Investment for the Valuation Date on which we
accept the Contribution or transfer.
A Contribution is considered accepted on the date we receive both the money and all the
information necessary for us to complete the crediting and allocation of the Contribution
without further information or instruction and without the exercise of any discretion on our
part to allocate and credit the Contribution.
G. DEPOSITS TO SEPARATE ACCOUNTS; RESTRICTIONS AND
ORDER OF ENTRY. We reserve the right to defer, limit, or stop your or any
Member's(as permitted by the Plan)ability to direct Contributions and transfers to or from a
Separate Account,and we may require you to transfer existing Separate Account Investments
out of a Separate Account. We may exercise these rights if we
1. need to comply with regulation, statute, or decisional law to which we are subject,
2. believe it would be imprudent not to do so in fulfilling our fiduciary role as an
investment manager under the Employee Retirement Income Security Act of 1974,as
amended (ERISA),
3. believe the investment approach of the Separate Account no longer makes sense, is
excessively expensive, or does not currently have any favorable investment
opportunities available, or
4. decide to suspend or discontinue operation of such Separate Account.
Contributions or transfers directed to a Separate Account that we have closed on a temporary
basis, will be treated as Contributions or transfers for which we have not received proper
investment directions and the provisions of the contract with regard to any such
Contributions or transfers will apply.
Once a temporarily closed Separate Account reopens, we must receive new investment
directions in order to direct any Contributions or transfers to such Separate Account. We
may limit the application of such new investment directions as necessary to protect the
Separate Account.
Provisions for a permanently closed Separate Account. We will notify you in writing of
our intent to permanently close a Separate Account. You will have 60 days to request
transfer as described in the Paragraph labeled "Transfers and Payments from a Separate
Account"below. If after 60 days we have not received your written notification of where to
GPR 50115 4 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3 (08/03)
transfer a closed Separate Account balance, we will treat that account balance as a
Contribution for which we do not have investment direction.
H. TRANSFERS AND PAYMENTS FROM A SEPARATE ACCOUNT
INVESTMENT. We will,upon Notification from you(the Member if permitted by the
Plan),and subject to our right to defer a transfer or payment as described in Section J.of this
rider,
1. transfer to the Member's Guaranteed Interest Investment or any Separate Account
Investment available under the contract all or any portion of the Member's Separate
Account Investment specified, or
2. transfer to another Funding Agent all or any portion of the Member's Separate
Account Investment specified, or
3. pay all or a part of a Member's Separate Account Investment to the Member as a loan
if permitted by the Plan, or,
4. as a result of the occurrence of a Benefit Event,pay the Member an amount equal to
all or any portion of the Member's Separate Account Investment specified.
The amount to be paid or transferred will generally be determined and paid or transferred
within seven Business Days after (i) the Valuation Date on which we receive the
Notification, or (ii) a later Valuation Date specified in the Notification. Payments and
transfers will be made in accordance with our then-current procedures. We will notify you in
writing of these procedures. The amount transferred or paid will be deducted from the
Separate Account Investment from which such transfer or payment was requested on the date
of such transfer or payment. Each transfer to another Separate Account Investment may
occur only on a Valuation Date of that Separate Account.
We are not responsible for the application of amounts transferred to another Funding Agent.
MUTUAL FUND LIMITATION. Without regard to any other feature of the contract
or this rider, if any limitation or delay is imposed by an underlying Mutual Fund we will be
unable to transfer,make payments,accept Contributions,or apply amounts held under these
Separate Accounts.
GPR 50115 5 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3 (08/03)
J. LIMITATIONS ON TRANSFERS AND PAYMENTS FROM A
SEPARATE ACCOUNT INVESTMENT. In general,transfers and payments from
a Separate Account Investment will be made within seven Business Days after the first
Valuation Date following the request specified in Section H. of this rider. We reserve the
right, however, to defer such transfers or payments up to the maximum number of days
shown in the Table of Separate Account Features of this rider for each Separate Account. If
we defer any transfer or payment under this Section, we will determine the amount to be
transferred or paid on the date transfer or payment occurs. We will notify you in the event of
any deferment of more than 30 days under the provisions of this Section.
These limitations will not apply to the payments to the beneficiary of a Member due to the
Member's death,payments to a Member due to disability or retirement under the Plan and to
purchases of annuity under Article IV, Section 2 of the contract.
Special Limitation for Separate Accounts. We reserve the right to make the portion of a
requested transfer in excess of $20,000,000 in substantially equal monthly installments over
a period of 36 months, if, in the 36 month period which ends on the requested date of
transfer, all transfers and payments from the total of all Separate Account Investments
invested in a particular Separate Account totals $20,000,000 or more. For purposes of this
limitation,transfers and payments from any other Separate Account investments included in
the Separate Account from any other contracts or policies issued in connection with the Plan
or with any other retirement plan of the Employer will be included as a transfer or payment
from a Separate Account Investment. If this limitation is imposed by us,the first installment
will be made one month after the date of request, or on such later date that you specify.
K. PLANS WHICH MAY INVEST IN THE SEPARATE ACCOUNTS. The
Separate Accounts are not registered with the Federal Securities and Exchange Commission
and therefore only Plans which meet certain requirements under the Code may invest in the
Separate Accounts. If the Internal Revenue Service or a court makes a final determination
that the Plan no longer meets the requirements of a Qualified Plan,we will require that you
transfer any amounts held in any Separate Accounts. If we decide that you must transfer
amounts out of the Separate Accounts, we will send you a notice describing your options.
Your Notification must clearly specify the Guaranteed Interest Investment(s)or the Funding
Agent to which you want the amounts transferred. If we do not receive an acceptable
Notification from you within five Business Days, we will transfer theses amounts to the
Guaranteed Interest Investment with the shortest duration.
GPR 50115 6 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3 (08/03)
L. FUNDS. We are the sole owner of all amounts held in the Separate Accounts. We may
exercise all owner's rights in regard to all amounts in any Separate Account Investment or
Separate Account, including,but not limited to,the following:
1. The right to hold, sell, exchange, convey, or transfer.
2. The right to exercise any conversion privileges,subscription rights,or other options,
and to make any payments incidental thereto.
3. The right to oppose, or to consent to, or otherwise participate in, corporate
reorganizations or other changes affecting corporate securities.
4. The right to foreclose any loan on real estate.
PRINCIPAL LIFE INSURANCE COMPANY
poa.tre,
Chairman, President and
Chief Executive Officer
GPR 50115 7 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3 (08/03)
TABLE OF SEPARATE ACCOUNT FEATURES
Maximum Maximum
Annual Number of Days
Separate Account Management Allowed to
Fee Defer Transfers
or Payments
Percentage
Putnam Equity Income(M) Separate Account 3.00 270
American Century Ultra(Adv) Separate Account 3.00 270
American Century Income&Growth(Adv) Separate Account 3.00 270
American Century Small Cap Value(Adv) Separate Account 3.00 270
Fidelity Advisor Equity Growth(T) Separate Account 3.00 270
Fidelity Advisor Mid-Cap(1') Separate Account 3.00 270
Fidelity Advisor Small Cap(T) Separate Account 3.00 270
Mason Street Aggressive Growth Stock(A) Separate Account 3.00 270
Mason Street International Equity(A) Separate Account 3.00 270
Mason Street Asset Allocation (A) Separate Account 3.00 270
Mason Street High Yield Bond(A) Separate Account 3.00 270
Mason Street Growth Stock(A) Separate Account 3.00 270
Mason Street Small Cap Growth(A) Separate Account 3.00 270
Mason Street Select Bond(A) Separate Account 3.00 270
Janus Adviser Capital Appreciation(Ret) Separate Account 3.00 270
INVESCO Small Company Growth Separate Account 3.00 270
INVESCO Leisure Separate Account 3.00 270
GPR 50115 8 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3 (08/03)
SCHEDULE 1
Separate Account Mutual Fund
Putnam Equity Income(M) Separate Account Putnam Equity Income(M Shares)
American Century Ultra(Adv) Separate Account American Century Ultra(Advisor Shares)
American Century Income&Growth(Adv) Separate Account American Century Income and Growth(Advisor Shares)
American Century Small Cap Value(Adv) Separate Account American Century Small Cap Value(Advisor Shares)
Fidelity Advisor Equity Growth(1') Separate Account Fidelity Advisor Equity Growth(T Shares)
Fidelity Advisor Mid-Cap(1') Separate Account Fidelity Advisor Mid Cap (T Shares)
Fidelity Advisor Small Cap (D Separate Account Fidelity Advisor Small Cap(T Shares)
Mason Street Aggressive Growth Stock(A) Separate Account Mason Street Aggressive Growth Stock(A Shares)
Mason Street International Equity(A) Separate Account Mason Street International Equity(A Shares)
Mason Street Asset Allocation(A) Separate Account Mason Street Asset Allocation(A Shares)
Mason Street High Yield Bond(A) Separate Account Mason Street High Yield Bond(A Shares)
Mason Street Growth Stock(A) Separate Account Mason Street Growth Stock(A Shares)
Mason Street Small Cap Growth(A) Separate Account Mason Street Small Cap Growth(A Shares)
Mason Street Select Bond(A) Separate Account Mason Street Select Bond(A Shares)
Janus Adviser Capital Appreciation(Ret) Separate Account Janus Adviser Capital Appreciation(Retirement Shares)
INVESCO Small Company Growth Separate Account INVESCO Small Company Growth
INVESCO Leisure Separate Account INVESCO Leisure
GPR 50115 9 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3 (08/03)
PREMIER SEPARATE ACCOUNT INVESTMENT RIDER-
RUSSELL (ALLOCATED)
This rider is added to the Group Annuity Contract issued by us of which it is a part. All terms
defined in the contract have the same meaning where used in this rider. The effective date of this
rider is the latest of(i)the Contract Date,(ii)the date this rider has been approved for use in the state
of issue, or(iii)the date stated in the amendment adding this rider to the contract.
The purpose of this rider is to allow the contract to participate in our Separate Accounts which invest
in nonproprietary Mutual Funds and other authorized investments. We reserve the right to limit both
the number of Separate Accounts available under the contract and the number available to each
Member.
Although all Separate Accounts listed in Schedule 1 may be available under this contract,you may
send us Notification indicating you want the contract administered so that the Plan will not
participate in one or more of these Separate Accounts. You may revoke your Notification by sending
us a new Notification.
A. DEFINITIONS.
Management Fee means the charge consisting of the investment management fee and the
contract expense charge applicable to this class of contracts for each Separate Account which
we determine and report to you.
Mutual Fund means any diversified,open-end management investment company registered
under the Investment Company Act of 1940 which is an underlying investment of a Separate
Account which is made available by us, as listed in Schedule 1.
We reserve the right, subject to compliance with applicable law, to make additions to,
deletions from, substitution for, or combinations of,the Mutual Funds listed in Schedule 1
which are made available through one or more Separate Accounts.
Net Asset Value(NAV)means the price per share of a Mutual Fund represented as a dollar
amount.
Separate Account means each Separate Account established by us,which is maintained by
us, made available to you by us, and identified in Schedule 1 of this rider. Each Separate
Account is a pooled Separate Account for use by our retirement plan customers. The
amounts held in each Separate Account will be invested and reinvested in accordance with
applicable law,without regard to any investment requirements of our general account assets
GPR 50117 1 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(08/03)
or of any of our other Separate Accounts. Amounts credited to any Separate Account shall
be invested in the shares of the Mutual Fund in which the Separate Accounts invest.
A Separate Account consists of finds we receive under group annuity contracts or policies
which permit deposit in such Separate Account and under which amounts are directed to
such Separate Account. All income gains and losses(whether or not realized),and expenses
from the assets allocated to a Separate Account will be credited to or charged against that
Separate Account without regard to any other income,gains or losses,or expenses we might
have for our general account or any other Separate Account. The assets of a Separate
Account will not be charged with any liabilities arising out of the investment experience of
our general account or any other Separate Accounts outside that Separate Account. We may
occasionally invest the assets of any Separate Account in short term money market
instruments, cash or cash equivalents.
We reserve the right, subject to compliance with applicable law, to make additions to,
deletions from,substitution for,or combinations of,the Separate Accounts listed in Schedule
1.
Valuation Date means the date we determine the value of a Separate Account. Valuation
Dates will occur on dates we determine,but at least on the last Business Day of each calendar
month. Valuation will occur at the end of each such day, according to our then-current
procedures.
Valuation Period means the period from the end of a Valuation Date to the end of the next
Valuation Date.
B. DETERMINING SEPARATE ACCOUNT VALUES. The value of a Separate
Account on any Valuation Date is the number of Mutual Fund shares held in the Separate
Account multiplied on a Valuation Date by the Mutual Fund's NAV for that Valuation Date.
The value of all Separate Accounts will always be expressed in U.S. dollars. We will
determine the value of a Separate Account on each Valuation Date.
C. MANAGEMENT FEES. The Management Fee under each Separate Account will be a
percentage of the value of the amounts held in such Separate Account, subject to the
equivalent of the maximum annual percentage listed in the Table of Separate Account
Features of this rider. We will determine the Management Fee for each Separate Account
and report it to you. We reserve the right to change the Management Fee to any amount up to
the maximum limit at any time by giving you written notice at least 30 days before the date
the change is to take effect. Each Mutual Fund's management fees are separate from the
Management Fees of the Separate Accounts and can be found in the prospectus for the
Mutual Fund.
GPR 50117 2 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(08/03)
The Management Fee will be deducted pro-rata from each Separate Account on each
Valuation Date for the number of calendar days within the Valuation Period ending on such
Valuation Date.
Operating Expenses are those charges which must be paid in order to operate a Separate
Account or obtain investments for a Separate Account. Operating Expenses include,but are
not limited to,custodial fees,transfer taxes,brokerage fees,processing fees,and other taxes
and fees associated with the operation of a Separate Account. Operating expenses will be
deducted from the Separate Account associated with a particular charge on the next
Valuation Date after the Operating Expenses have been paid or are immediately payable. In
accordance with our then-current procedures, various Separate Accounts may share in the
payment of certain Operating Expenses and, in some cases,we may use certain fees paid to
us by third parties to offset Operating Expenses incurred by a Separate Account which would
otherwise be payable from that Separate Account.
D. SEPARATE ACCOUNT INVESTMENT. A Separate Account Investment is
established for each Member for each Separate Account to which the Member directs
Contributions.
E. RETURNS CREDITED TO SEPARATE ACCOUNT INVESTMENTS.
Each Separate Account Investment established under this contract will be credited with its
portion of the return associated with the appropriate Separate Account. The return for a
Separate Account will be based on the change in value of that Separate Account less any
Management Fee.
In order to track the returns for the Separate Account Investments established under this
contract,we will use a unit value system of recordkeeping,unless we determine that another
recordkeeping system would be more appropriate.
F. UNIT VALUE SYSTEM OF RECORDKEEPING. Under a unit value system of
recordkeeping, we will calculate a unit value to be used with the Separate Account
Investments on each Valuation Date. To calculate the unit value, we first determine the
value of the Separate Account as described in Section B. of this rider. Then, we will
calculate the Management Fee as described in Section C. of this rider. Finally, we will
calculate the unit value by dividing the value of the Separate Account less any Management
Fee by the aggregate number of units in the Separate Account attributable to the contract.
We will calculate the unit value on each Valuation Date.
GPR 50117 3 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3(08/03)
Contributions or transfers to a Separate Account Investment increase the number of Separate
Account units credited to it. Transfers and payments from a Separate Account Investment
reduce the number of Separate Account units. The increase or decrease in the number of
Separate Account units is calculated by dividing the dollar amount of the contribution,
transfer, or payment by the applicable unit value.
When crediting Contributions and transfers to a Separate Account Investment we will use the
unit value applicable to the Separate Account Investment for the Valuation Date on which we
accept the Contribution or transfer.
A Contribution is considered accepted on the date we receive both the money and all the
information necessary for us to complete the crediting and allocation of the Contribution
without further information or instruction and without the exercise of any discretion on our
part to allocate and credit the Contribution.
G. DEPOSITS TO SEPARATE ACCOUNTS; RESTRICTIONS AND
ORDER OF ENTRY.We reserve the right to defer,limit,or stop your or any Member's
(as permitted by the Plan)ability to direct Contributions and transfers to or from a Separate
Account,and we may require you to transfer existing Separate Account Investments out of a
Separate Account. We may exercise these rights if we
1. need to comply with regulation, statute, or decisional law to which we are subject,
2. believe it would be imprudent not to do so in fulfilling our fiduciary role as an
investment manager under the Employee Retirement Income Security Act of 1974,as
amended(ERISA),
3. believe the investment approach of the Separate Account no longer makes sense, is
excessively expensive, or does not currently have any favorable investment
opportunities available, or
4. decide to suspend or discontinue operation of such Separate Account.
Contributions or transfers directed to a Separate Account that we have closed on a temporary
basis, will be treated as Contributions or transfers for which we have not received proper
investment directions and the provisions of the contract with regard to any such
Contributions or transfers will apply.
Once a temporarily closed Separate Account reopens, we must receive new investment
directions in order to direct any Contributions or transfers to such Separate Account. We
GPR 50117 4 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(08/03)
may limit the application of such new investment directions as necessary to protect the
Separate Account.
Provisions for a permanently closed Separate Account. We will notify you in writing of our intent
to permanently close a Separate Account. You will have 60 days to request transfer as described in the
Paragraph labeled"Transfers and Payments from a Separate Account"below. If after 60 days we have
not received your written notification of where to transfer a closed Separate Account balance,we will
treat that account balance as a Contribution for which we do not have investment direction.
H. TRANSFERS AND PAYMENTS FROM A SEPARATE ACCOUNT
INVESTMENT. We will,upon Notification from you(the Member if permitted by the
Plan),and subject to our right to defer a transfer or payment as described in Section J. of this
rider,
1. transfer to the Member's Guaranteed Interest Investment or any Separate Account
Investment available under the contract all or any portion of the Member's Separate
Account Investment specified, or
2. transfer to another Funding Agent all or any portion of the Member's Separate
Account Investment specified, or
3. pay all or a part of a Member's Separate Account Investment to the Member as a loan
if permitted by the Plan, or,
4. as a result of the occurrence of a Benefit Event,pay the Member an amount equal to
all or any portion of the Member's Separate Account Investment specified.
The amount to be paid or transferred will generally be determined and paid or transferred
within seven Business Days after (i) the Valuation Date on which we receive the
Notification, or (ii) a later Valuation Date specified in the Notification. Payments and
transfers will be made in accordance with our then-current procedures. We will notify you in
writing of these procedures. The amount transferred or paid will be deducted from the
Separate Account Investment from which such transfer or payment was requested on the date
of such transfer or payment. Each transfer to another Separate Account Investment may
occur only on a Valuation Date of that Separate Account.
We are not responsible for the application of amounts transferred to another Funding Agent.
MUTUAL FUND LIMITATION. Without regard to any other feature of the contract
or this rider, if any limitation or delay is imposed by an underlying Mutual Fund we will be
unable to transfer,make payments,accept Contributions,or apply amounts held under these
Separate Accounts.
GPR 50117 5 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(08/03)
J. LIMITATIONS ON TRANSFERS AND PAYMENTS FROM A
SEPARATE ACCOUNT INVESTMENT. In general,transfers and payments from
a Separate Account Investment will be made within seven Business Days after the first
Valuation Date following the request specified in Section II. of this rider. We reserve the
right, however, to defer such transfers or payments up to the maximum number of days
shown in the Table of Separate Account Features of this rider for each Separate Account. If
we defer any transfer or payment under this Section, we will determine the amount to be
transferred or paid on the date transfer or payment occurs. We will notify you in the event of
any deferment of more than 30 days under the provisions of this Section.
These limitations will not apply to the payments to the beneficiary of a Member due to the
Member's death,payments to a Member due to disability or retirement under the Plan and to
purchases of annuity under Article IV, Section 2 of the contract.
Special Limitation for Separate Accounts. We reserve the right to make the portion of a
requested transfer in excess of $20,000,000 in substantially equal monthly installments over
a period of 36 months, if, in the 36 month period which ends on the requested date of
transfer, all transfers and payments from the total of all Separate Account Investments
invested in a particular Separate Account totals $20,000,000 or more. For purposes of this
limitation,transfers and payments from any other Separate Account investments included in
the Separate Account from any other contracts or policies issued in connection with the Plan
or with any other retirement plan of the Employer will be included as a transfer or payment
from a Separate Account Investment. If this limitation is imposed by us,the first installment
will be made one month after the date of request, or on such later date that you specify.
K. PLANS WHICH MAY INVEST IN THE SEPARATE ACCOUNTS. The
Separate Accounts are not registered with the Federal Securities and Exchange Commission
and therefore only Plans which meet certain requirements under the Code may invest in the
Separate Accounts. If the Internal Revenue Service or a court makes a final determination
that the Plan no longer meets the requirements of a Qualified Plan,we will require that you
transfer any amounts held in any Separate Accounts. If we decide that you must transfer
amounts out of the Separate Accounts, we will send you a notice describing your options.
Your Notification must clearly specify the Guaranteed Interest Investment(s)or the Funding
Agent to which you want the amounts transferred. If we do not receive an acceptable
Notification from you within five Business Days, we will transfer theses amounts to the
Guaranteed Interest Investment with the shortest duration.
GPR 50117 6 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(08/03)
L. FUNDS. We are the sole owner of all amounts held in the Separate Accounts. We may
exercise all owner's rights in regard to all amounts in any Separate Account Investment or
Separate Account, including,but not limited to, the following:
1. The right to hold, sell, exchange, convey, or transfer.
2. The right to exercise any conversion privileges,subscription rights,or other options,
and to make any payments incidental thereto.
3. The right to oppose, or to consent to, or otherwise participate in, corporate
reorganizations or other changes affecting corporate securities.
4. The right to foreclose any loan on real estate.
PRINCIPAL LIFE INSURANCE COMPANY
Chairman, President and
Chief Executive Officer
GPR 50117 7 For use w/FIA-F: GP A 5913-2
&FIA-S GP A 5914-3(08/03)
TABLE OF SEPARATE ACCOUNT FEATURES
Maximum Annual Maximum Number of
Management Fee Days Allowed to Defer
Separate Account Transfers or Payments
Percentage
Russell LifePoints®Aggressive Strategy(D) 3.00 270
Separate Account
Russell LifePoints®Balanced Strategy (D) 3.00 270
Separate Account
Russell LifePoints®Conservative Strategy (D) 3.00 270
Separate Account
Russell LifePoints® Equity Aggressive Strategy 3.00 270
(D) Separate Account
Russell LifePoints® Moderate Strategy(D) 3.00 270
Separate Account
GPR 50117 8 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(08/03)
SCHEDULE 1
Separate Account Mutual Fund
Russell LifePoints®Aggressive Strategy(D) Russell LifePoints®Aggressive Strategy Fund
Separate Account (D Shares)
Russell LifePoints® Balanced Strategy(D) Russell LifePoints®Balanced Strategy Fund(D
Separate Account Shares)
Russell LifePoints® Conservative Strategy(D) Russell LifePoints® Conservative Strategy Fund
Separate Account (D Shares)
Russell LifePoints® Equity Aggressive Strategy Russell LifePoints®Equity Aggressive Strategy
(D) Separate Account Fund (D Shares)
Russell LifePoints®Moderate Strategy(D) Russell LifePoints®Moderate Strategy Fund
Separate Account (D Shares)
GPR 50117 9 For use w/FIA-F: GP A 5913-2
& FIA-S GP A 5914-3(08/03)
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