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HomeMy WebLinkAbout20000677 RESOLUTION RE: APPROVE AMENDMENT#1 TO WELD COUNTY 401K SAVINGS PLAN AND AUTHORIZE CHAIR TO SIGN - PRINCIPAL LIFE INSURANCE COMPANY 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 Amendment#1 to the Weld County 401K Savings Plan between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Principal Life Insurance Company, with 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 Amendment#1 to the 401K Savings Plan between the County of Weld, State of Colorado, by and through the Board of County Commissioners of Weld County, and Principal Life Insurance Company 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 22nd day of March, A.D., 2000. BOARD OF COUNTY COMMISSIONERS W LD COUNTY, COLO DO ATTEST: 4.41 ► lnst �' ...q�► Barbar . Kirkmeyer, hair Weld County Clerk tot i Bt a O ? --J i «, 4 : M. Celle, Pro-Tem BY: Deputy Clerk to the Boar. fGeorgetE. Baxter APPROVED AS TO- M: EXCUSED y-- Dale K. Hall 2-2- Co4nty4ttorne) L��GtUI Glenn Vaad 2000-0677 PE0016 Pc Pc GROUP CONTRACT NO. GA 66947 AMENDMENT NO. I 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 November 30, 1999, by striking the following: All existing separate account riders currently effective on this contract Schedule: 1 and by substituting the following: Schedule: 2 by adding the following: Rider: GP R 45897 Rider: GP R 40119-2 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 for us on by Vice President and Chairman and Corporate Secretary Chief Executive Officer Registrar Signed for Contractholder by ��_Pti _. 1)14 I t t aA i!1/e I I Cu 3" 22 00 Name Title D to Barbara J. Kirkmeyer ('en i Mica c t vyt e,i?S (Contract# 66947 Amend # 1) I Principal Financial Group 2000-0677 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 2 , effective November 30, 1999. 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. Investment Options available: Guaranteed Interest Investments Separate Account Investments (elected by you) Bond and Mortgage Separate Account Medium Company Growth Separate Account Bond Emphasis Balanced Separate Account Medium Company Value Separate Account Government Securities Separate Account Money Market Separate Account International Emerging Markets Separate Account Real Estate Separate Account International Small Company Separate Account Small Company Blend Separate Account International Stock Separate Account Small Company Growth Separate Account Large Company Blend Separate Account Small Company Value Separate Account Large Company Growth Separate Account Stock Emphasis Balanced Separate Account Large Company Value Separate Account Stock Index 500 Separate Account Medium Company Blend Separate Account U.S. Stock Separate Account Mid Cap Stock Index Separate Account Small Cap Stock Index Separate Account Total Market Stock Index Separate Account Partners Large-Cap Growth Separate Account Partners Mid-Cap Growth Separate Account High Quality Long-Term Bond Separate Account High Quality Short-Term Bond Separate Account High Quality Intermediate-Term Bond Separate Account (Continued on next page) Schedule of Specifications, Page 2 GA 66947 Riders and special attachments: Separate Account Investment Rider Removal of Dividend Rider Flexible Investment Annuity Endorsement Rider Separate Account Investment Rider for Investment in Nonproprietary Funds Colorado Guaranty Association Notice Notations: (Signatures are not required for the original Schedule 1 issued with the Contract) / Contracthold r Name ✓/ Registrar CI1A act 73cl. We Id i nom intssivft S Title Date 3�l Z-7D o Date 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 die 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: Bond and Mortgage Separate Account Bond Emphasis Balanced Separate Account Government Securities Separate Account High Quality Intermediate-Term Bond Separate Account High Quality Long-Term Bond Separate Account High Quality Short-Term Bond Separate Account International Emerging Markets Separate Account International Small Company Separate Account International Stock Separate Account Large Cap Stock Index Separate Account (aka Stock Index 500) Large Company Blend Separate Account Large Company Growth Separate Account Large Company Value Separate Account Medium Company Blend Separate Account Medium Company Growth Separate Account Medium Company Value Separate Account Mid Cap Stock Index Separate Account Money Market Separate Account Partners Large-Cap Growth Separate Account Partners Mid-Cap Growth Separate Account Real Estate Separate Account Small Cap Stock Index Separate Account Small Company Blend Separate Account Small Company Growth Separate Account Small Company Value Separate Account Stock Emphasis Balanced Separate Account Total Market Stock Index Separate Account U.S. Stock Separate Account GPR 40119-2 1 For use w/ FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) 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. Bond and Mortgage Separate Account. 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. Bond Emphasis Balanced Separate Account. 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. Government Securities Separate Account. 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 Home Loan Mortgage Association and the Student Loan Marketing Association. GPR 40119-2 2 For use w/FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) High Quality Intermediate-Term Bond Separate Account. 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 derivative instruments such as options and futures. The fixed income investments in the account typically have maturities of five to ten years. High Quality Long-Term Bond Separate Account. 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 derivative instruments such as options and futures. The fixed income investments in the account typically have maturities of ten years or longer. High Quality Short-Term Bond Separate Account. 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 derivative instruments such as options and futures. The fixed income investments in the account typically have maturities of less than five years. International Emerging Markets Separate Account. 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. International Small Company Separate Account. 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. International Stock Separate Account. 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 arc also allowed. GPR 40119-2 3 For use w/ FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) Large Cap Stock Index Separate Account(aka Stock Index 500). 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, 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. Large Cap Stock Index Separate Account attempts to earn a return similar to that of the Standard & Poor's 500 Stock Index. Large Company Blend Separate Account. Large Company Blend 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 derivative instruments such as options and futures, other equity securities, or other convertible securities that may be converted to common stocks. Large Company Growth Separate Account. 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 derivative instruments such as options and futures, other equity securities, or other convertible securities that may be converted to common stocks. Large Company Value Separate Account. 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 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. Medium Company Blend Separate Account. 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 derivative instruments such as options and futures, other equity securities, or other convertible securities that may be converted to common stocks. Medium Company Growth Separate Account. 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 derivative instruments such as options and futures, other equity securities, or other convertible securities that may be converted to common stocks. GPR 40119-2 4 For use w/ RA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) Medium Company Value Separate Account. 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 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. Mid Cap Stock Index Separate Account. 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, 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. Mid Cap Stock Index Separate Account attempts to earn a return similar to that of the Standard & Poor's 400 MidCap Stock Index. Money Market Separate Account. 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. Partners Large-Cap Growth Separate Account: The 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 derivative instruments such as options and futures, other equity securities, or other convertible securities that may be converted to common stocks. Partners Mid-Cap Growth Separate Account: The 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 derivative instruments such as options and futures, other equity securities, or other convertible securities that may be converted to common stocks. Real Estate Separate Account. Real Estate Separate Account is invested primarily in real estate such as office buildings, industrial buildings, shopping centers, retail stores and similar property. GPR 40119-2 5 For use w/ FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) Small Cap Stock Index Separate Account. 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, 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. Small Cap Stock Index Separate Account attempts to earn a return similar to that of the Standard & Poor's 600 SmallCap Stock Index. Small Company Blend Separate Account. 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 derivative instruments such as options and futures, other equity securities, or other convertible securities that may be converted to common stocks. Small Company Growth Separate Account. 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 derivative instruments such as options and futures, other equity securities, or other convertible securities that may be converted to common stocks. Small Company Value Separate Account. 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 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. Stock Emphasis Balanced Separate Account. 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 40119-2 6 For use w/ FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) Total Market Stock Index Separate Account. 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 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. U.S. Stock Separate Account. U.S. Stock Separate Account is primarily invested in common stocks of United States companies. The investments may also include derivative instruments such as options and futures,other equity securities or other convertible securities that may be converted to common stocks. The U.S. Stock Separate Account is managed by looking for shifts in the economy, industries that stand to benefit from those shifts, and companies in those industries that are undervalued by the market. B. DETERMINING SEPARATE ACCOUNT VALUES; OPERATING EXPENSES. The value of a Separate Account is its market value(appraised market value for Real Estate Separate Account) less Operating Expenses accrued but not deducted, if any. 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. 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 International Stock Separate Account, International Small Company Separate Account, and International Emerging Markets 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 CHARGES. The Management Charge under each Separate GPR 40119-2 7 For use w/FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) 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 Charge 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 Charge means the charge consisting of the investment management charge and the contract expense charge applicable to this class of contracts for each Separate Account. The assets of Bond Emphasis Balanced Separate Account, Stock Emphasis Balanced Separate Account, and Total Market Stock Index Separate Account will pay Management Charges under our other Separate Accounts in which they are invested. An additional Management Charge will be charged under these Separate Accounts only for management services actually performed exclusively for assets held in these Separate Accounts. 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. Where Money Market Separate Account is available and we receive Notification from you to do so, an Unallocated Separate Account Investment will be established for Contributions for which either i) we do not have all the necessary information needed to allocate such Contributions to individual Members, or ii) you have notified us that such Contributions are to be unallocated. If Money Market Separate Account is not available, an Unallocated Contribution Investment will be established, using a Guaranteed Interest Investment with the shortest Guarantee Period available. Unallocated Separate Account Investment means the Investment established to hold unallocated Contributions, invested in Money Market Separate Account, if available, and operates as if it were a Member's Investment. However, by mutual agreement, you may specify one or more other Separate Accounts to use in addition to or in place of Money Market Separate Account. GPR 40119-2 8 For use w/ FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) 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 Charge. 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 40119-2 9 For use w/FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) G. DEPOSITS TO SEPARATE ACCOUNTS; RESTRICTIONS AND ORDER OF ENTRY. We reserve the right to defer or stop your ability to direct Contributions and transfers to 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 advisor under 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 discontinue operation of such Separate Account. Contributions or transfers directed to a Separate Account that we have closed on a temporary or permanent basis will be directed to Money Market Separate Account, if available, or to the Guaranteed Interest Investment with the shortest Guarantee Period available under the contract. If the Separate Account has been closed on a temporary basis, we will treat a Contribution or transfer request as a Notification that money should be transferred to the closed Separate Account as soon as permitted under the terms of the contract. Provisions for a temporarily closed Separate Account. We have established the following order of entry into a Separate Account that was temporarily closed, then reopened: 1. All amounts held in 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 arc to be transferred to the Separate Account. Within each of the above 2 categories, funds will be transferred one customer at a time, in order from the oldest waiting Notification to the newest Notification. 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 account it was at the time of the request until the Valuation Date when complete transfer 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 GPR 40119-2 10 For use w/FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) Account. You or a Member, as permitted by the Plan, may revoke a request for transfer of funds to a Separate Account by giving us Notification 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 H. below. If after 60 days we have not received Notification of where to transfer a closed Separate Account balance, we will treat the account 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. 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 GPR 40119-2 11 For use w/ FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) 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 Real Estate Limitations. Because of the illiquid nature of the assets in which Real Estate Separate Account is invested, we reserve the right to defer transfers or payments from a Real Estate Separate Account Investment if a transfer or payment would exceed the amount of cash and other liquid assets held in 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 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 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. Real Estate Separate Account may be illiquid for indefinite periods of time. We will not manage Real Estate Separate Account to provide a liquidity pool for requests for transfer or payment. If requests for transfer or payment from 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 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 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 GPR 40119-2 12 For use w/ PIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) ERISA investment manager as described in Article II, 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 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 International Small Company Separate Account, and International Emerging Markets Separate Account. 2. $20,000,000 and 36 months, respectively, for Bond Emphasis Balanced Separate Account, Government Securities Separate Account,High Quality Intermediate-Term Bond Separate Account, High Quality Long-Term Bond Separate Account, High Quality Short-Term Bond Separate Account, International Stock Separate Account, Large Company Blend Separate Account, Large Cap Stock Index Separate Account, Large Company Growth Separate Account, Large Company Value Separate Account, Medium Company Blend Separate Account, Medium Company Growth Separate Account, Medium Company Value Separate Account, Mid Cap Stock Index Separate Account, Partners Large-Cap Growth Separate Account, Partners Mid-Cap Growth Separate Account, Small Cap Stock Index Separate Account, Small Company Blend Separate Account, Small Company Growth Separate Account, Small Company Value Separate Account, Stock Emphasis Balanced Separate Account, Total Market Stock Index Separate Account, and U.S. Stock Separate Account. 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 GPR 40119-2 13 For use w/FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) 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 Chairman and Chief Executive Officer GPR 40119-2 14 For use w/ FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) TABLE OF SEPARATE ACCOUNT FEATURES Current Annual Maximum Maximum Number Management Annual of Days Allowed to Charge Management Defer Transfers or Percentage Charge Payments Percentage Bond Emphasis Balanced Separate None 2.00' 270 Account Bond and Mortgage Separate Account 0.45 2.00 270 Government Securities Separate Account 0.45 2.00 90 High Quality Intermediate-Term Bond Separate 0.45 2.00 270 Account High Quality Long- Term Bond Separate 2.00 270 Account 0.45 High Quality Short- Term Bond Separate 0.45 2.00 270 Account International Emerging Markets Separate 0.69 2.00 270 Account International Sinai! Company Separate 0.69 2.00 270 Account International Stock Separate Account 0.69 2.00 270 Large Cap Stock Index Separate Account 0.35 2.00 270 Large Company Blend - Separate Account 0.45 2.00 270 Large Company Growth Separate 0.45 2.00 270 Account Large Company Value Separate Account 0.45 2.00 270 GPR 40119-2 15 For use w/FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) Current Annual Maximum Maximum Number Management Annual of Days Allowed to Charge Management Defer Transfers or Percentage Charge Payments Percentage Medium Company Blend Separate 0.45 2.00 270 Account Medium Company Growth Separate 0.45 2.00 270 Account Medium Company Value Separate 0.45 2.00 270 Account Mid Cap Stock Index Separate Account 0.35 2.00 270 Money Market Separate Account 0.45 2.00 90 Partners Large-Cap - Growth Separate 1.00 2.00 270 Account Partners Mid-Cap Growth Separate I.00 2.00 270 Account Real Estate Separate Account 1.05 None Indefinite Small Cap Stock Index — Separate Account 0.35 2.00 270 Small Company Blend Separate Account 0.45 2.00 270 Small Company Growth Separate 0.45 2.00 270 Account Small Company Value - Separate Account - 0.45 2.00 270 Stock Emphasis ` Balanced Separate None 2.00' 270 Account Total Market Stock Index Separate 0.35' 2.00 270 Account i GPR 40119-2 16 For use w/FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) Current Annual Maximum Maximum Number Management Annual of Days Allowed to Charge Management Defer Transfers or Percentage Charge Payments Percentage U.S. Stock Separate Account 0.45 2.00 270 The maximum annual Management Charge percentage includes Management Charges paid under this Separate Account (currently none) and the Separate Accounts in which this Separate Account is invested. 2 There will be no Management Charge under this Separate Account unless no Management Charge is being charged by the underlying assets. Then the Management Charge is as shown. GPR 40119-2 17 For use w/FIA-F: GP A 5913-2 & FIA-S GP A 5914-3(10/99) SEPARATE ACCOUNT INVESTMENT RIDER FOR INVESTMENT IN NONPROPRIETARY FUNDS 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 tight 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 A may be available under this contract, you may send us Notification indicating you want the contract administered so that money 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. DEFINITIONS. Management Charge means the charge consisting of the investment management charge and the contract expense charge applicable to this class of contracts for each Separate Account, less any expense credits. The Management Charge will be shown in the Table of Separate Account Features of this rider. Mutual Fund means any diversified, open-end management investment company registered under The Investment Company Act of 1940 which is the underlying investment of the Separate Account which is made available by Principal Life Insurance Company. as listed in Schedule A. Within this rider, Mutual Fund shall also mean a portfolio established within a particular Mutual Fund as described in the prospectus for that Mutual Fund, as such prospectus may be amended or supplemented from time to time. 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 A. Net Asset Value (NAVJ means the price per share represented as a dollar amount. Separate Account(s) means each Separate Account established under this rider, which is maintained by us, made available to you by us, and identified in Schedule A of this rider. GPR 45897 I For use w/ FR-F: GP A 5913-2 & FIA-S GP A 5914-3 (12/98) 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 identified in Schedule A of this rider shall be invested in the shares of the corresponding Mutual Fund. 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 A. 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. 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 is its market value of the shares invested in the Mutual Fund multiplied 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 CHARGES. The Management Charge under each Separate Account will be a percentage of the value of the amounts 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 reserve the right to change the Management Charge 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. The Mutual Fund's management charges are separate from the Management Charges of the Separate Accounts and can be found in the prospectus for the corresponding Mutual Fund. The Management Charge 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. 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 GPR 45897 2 For use w/ FIA-F: GP A 5913-2 & FIA-S GP A 5914-3 (12/98) Separate Account will be based on the change in value of that Separate Account less any Management Charge. 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 for each Separate Account on each Valuation Date. To calculate the unit value, we first determine the market value of the Separate Account as described in Section B. of this rider. Then, we will calculate the Management Charge as described in Section C. of this rider. Finally, we will calculate the unit value by dividing the market value of the Separate Account less any Management Charge by the units held in the Separate Account. 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. 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 and in good form to allocate and credit the Contribution. G. DEPOSITS TO SEPARATE ACCOUNTS; RESTRICTIONS AND ORDER OF ENTRY. We reserve the right to temporarily or permanently close a Separate Account; thereby we can defer or stop your ability to direct Contributions and transfers to a Separate Account. We reserve the right to require you to transfer existing account balances out of a Separate Account which has been temporarily or permanently closed. We may exercise these rights due to a particular underlying Mutual Fund's provisions. However, our rights are not limited to such circumstances. GPR 45897 3 For use w/ FIA-F: GP A 5913-2 & FIA-S GP A 5914-3 (12/98) We will notify you in writing of our intent to temporarily or permanently close a Separate Account. Contributions or transfers directed to a Separate Account that we have closed on a temporary or permanent basis will be directed to another Separate Account of your choice. If we require the existing account balances be transferred out of the temporarily or permanently closed Separate Account,you will have 60 days to request transfer as described in H. below. If after 60 days we have not received Notification of where to transfer such Separate Account balance, we will transfer the balance to the Separate Accounts available under this rider, in equal dollar amounts, or, if no other Separate Accounts are available, we will direct the balance to the Guaranteed Interest Investment with the shortest Guarantee Period. 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 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 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 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 trans ter or payment. Each transfer to another Separate Account Investment may occur only on a Valuation Date of that Separate Account. We arc 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 the underlying Mutual Fund we will be unable to transfer, make payments, or apply amounts held under these Separate Accounts. GP2 45897 4 For use w/ FIA-F: GP A 5913-2 & FIA-S GP A 5914-3 (12/98) 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 not to exceed 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. 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. GPR 45897 5 For use w/ FIA-F: GP A 5913-2 & FIA-S GP A 5914-3 (12/98) 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 pEluodl 0a/1J-4-n1 Chairman and Chief Executive Officer GPR 45897 6 For use w/ FIA-F: GP A 5913-2 & FIA-S GP A 5914-3 (12/98) TABLE OF SEPARATE ACCOUNT FEATURES Current Annual Maximum Annual Maximum Number of Management Charge Management Charge Days Allowed to Deter Separate Account Percentage* Percentage Transfers or Payments Putnam Voyager Separate Account 0.15 3.00 270 Putnam Investors Separate Account 0.15 3.00 270 Putnam Equity& Income Separate Account 0.15 3.00 270 h' Putnam High Yield Trust 11 Separate Account 0.15 3.00 270 American Century Ultra il Separate Account 0.15 3.00 270 America n Century Select 1 Separate Account 0.15 3.00 270 American Century Value 6 Separate Account 0.15 3.00 270 tLi 1 American Century Income& Growth Separate Account 0.15 3.00 270 Fidelity Equity Growth Separate Account 0.15 3.00 270 Fidelity Growth Opportunities Separate Account 0.15 3.00 270 Fidelity Mid-Cap Separate Account 0.15 3.00 270 Fidelity Overseas 1 Separate Account 0.15 3.00 270 * This charge is the charge made by us only,and it does not include any management charge of the Mutual Fund. Please see the appropriate prospectuses for such charges. GPR 45897 7 For use w/ F1A-F: GP A 5913-2 & FLA-S GP A 5914-3 (12/98) Current Annual Maximum Annual Maximum Number of Management Charge Management Charge Days Allowed to Defer Separate Account Percentage* Percentage Transfers or Payments Mason Street Aggressive Growth Stock Separate Account 0.15 3.00 270 Mason Street International Equity Separate Account 0.15 3.00 270 Mason Street Asset Allocation Separate Account 0.15 3.00 270 71 Mason Street High Yield Bond Separate Account 0.15 3.00 270 * This charge is the charge made by us only,and it does not include any management charge of the Mutual Fund. Please see the appropriate prospectuses for such charges. GPR 45897 8 For use w/FIA-F: GP A 5913-2 & FIA-S GP A 5914-3 (12/98) SCHEDULE A Separate Account Mutual Fund Putnam Voyager Separate Account Putnam "M" Shares, Vo a er Putnam Investors Separate Account Putnam "M" Shares, Investor Putnam Equity& Income Separate Account Putnam "M" Shares E ui Income Putnam High Yield Trust H Separate Account Putnam "M" Shares H i h Yield American Century Ultra Separate Account American Century Advisor Ultra American Century Select Separate Account American Century Advisor Select American Century Value Separate Account American Century Advisor Value American Century Income& Growth • Separate Account American Century Advisor Income and Growth Fidelity Equity Growth Separate Account Fidelity "Advisor" T Shares E uit Income Fidelity Growth Opportunities Separate Account Fidelity"Advisor"T Shares Growth O ortunit Fidelity Mid-Cap Separate Account Fidelity"Advisor" T Shares Mid Cap Fidelity Overseas Separate Account Fidelity "Advisor" T Shares Overseas Mason Street Aggressive Growth Stock Separate Account Northwestern Mutual Life Aggressive Growth Mason Street International Equity Separate Account Northwestern Mutual Life International Mason Street Asset Allocation Separate Account Northwestern Mutual Life Asset Allocation Mason Street High Yield Bond Separate Account Northwestern Mutual Life High Yield Fund GPR 45897 9 For use w/FIA-F: GP A 5913-2 & FIA-S GP A 5914-3 (12/98) Hello