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HomeMy WebLinkAbout921085.tiff RESOLUTION RE: APPROVE LETTER AGREEMENT WITH GREAT-WEST LIFE AND ANNUITY INSURANCE COMPANY AND AUTHORIZE CHAIRMAN TO SIGN 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 a Letter Agreement between the Great-West Life and Annuity Insurance Company and the County of Weld, State of Colorado, with the terms and conditions being as stated in said agreement, and WHEREAS, after review, the Board deems it advisable to approve said agreement, 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 Letter Agreement between the Great-West Life and Annuity Insurance Company and the County of Weld, State of Colorado be, and hereby is, approved. BE IT FURTHER RESOLVED by the Board that the Chairman be, and hereby is, authorized to sign said agreement. The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 16th day of November, A.D. , 1992. I) BOARD OF COUNTY COMMISSIONERS ATTEST: a t fi ,' ; ° " ' WELD COUNTY, COLORADO Weld County Clerk to the Board Geoo e Kenn y, airman BY: "OC -•,-x-1 /dxco�,::Y� �f� Deputy Cle to the Board Constance L. Harbert, Pro-Tem APPROVED AS T FORM: C. W. Kirby County Attorney Gordo ;), W. H. Webster n 921085 PICnn/ �-- LEI l'ER AGREEMENT Attached to and Forming Part of The Group Deferred Compensation Annuity Contract It is agreed to by the Great-West Life & Annuity Insurance Company (herein called the "Insurance Company") and the County of Weld, State of Colorado (herein called the "Group Policyholder") that the following modifications and clarifications of the group annuity contract, group policy number 88041, issued by the Insurance Company shall remain in effect for the period of time noted herein. This Letter Agreement Supersedes and replaces any other previous Agreement, Rider or representation(s) . 1. For the term of the Group Annuity Contract, the Contingent Deferred Sales Charge described in Section 9.2 will be modified. The new Section 9.2 of the contract will read as follows: 9.2 Lump Sum Distributions On any total or partial lump sum distribution of the Participant Annuity Account at age 70 1/2, separation from service or due to an unforeseeable emergency, a Contingent Deferred Sales Charge will be deducted from the amount distributed. The Contingent Deferred Sales Charge will be equal to a percentage of the amount distributed in excess of the Contingent Deferred Sales charge Free Amount, if any, based on the sum of Sections a and b below. a. The Contingent Deferred Sales Charge applicable to any Lump Sum Distribution relating to Deposits under this Contract (excluding any Conversion Deposit, as defined below) will be equal to 6% of the amount surrendered. This portion of the Contingent Deferred Sales Charge is limited so that the amount then charged will not cause the cumulative total of all Contingent Deferred Sales charges charged under this section to exceed 6% of the Deposits made to his/her Participant Annuity Account (excluding Conversion Deposits) with 72 months prior to the effective date of the Lump Sum Distribution. Notwithstanding the immediately preceding two sentences, for purposes of this Section 1(a) , if the number of years of coverage of a Participant under the FutureFunds contract and this Contract is at least 15 years, there will not be a contingent Deferred Sales Charge deducted in accordance with the provisions of this Section 1(a) . 1 9210tf5 PL b. The Contingent Deferred Sales Charge applicable to any Lump Sum Distribution relating to any Conversion Deposit, if any, will be an amount which is the result of multiplying the amount of any Conversion Deposit surrendered by the appropriate percentage as chosen from the table below. For purposes of this section, a Conversion Deposit is defined as the amount Deposited into this Group Annuity Contract from the Great-West Life Assurance Company Group Deferred Compensation Annuity Contract (the "Previous Contract") . Number of Years of Coverage of Participant Under Previous Contract, FutureFunds Contract The Percentage of the and This Contract Amount Surrendered Shall Be Less Than 5 Years 6% At Least 5 Years, But Less Than 10 Years 5% At Least 10 Years 4% 2. For the term of the Group Annuity Contract, the Contingent Deferred Sales Charge "Free Amount" Section of the contract, Section 9.3, will be modified. The new Section 9.3 of the contract will read as follows: 9.3 Contingent Deferred Sales Charge Free Amount The Contingent Deferred Sales Charge "Free Amount" applicable to any total or partial Lump Sum Distribution relating to an unforeseeable emergency is equal to 10% of the Participant Annuity Account Value at December 31 of the calendar year prior to the year in which the amount is distributed. The Contingent Deferred Sales Charge Free Amount is only applicable to an unforeseeable emergency, as defined under the terms of the Group Policyholder's Plan. Only one Contingent Deferred Sales Charge "Free Amount" is available on behalf of a Participant in each calendar year. The Contingent Deferred Sales Charge "Free Amount" will be applied on the first unforeseeable emergency made under the Participant Annuity Account in that year. 3. Notwithstanding anything in this Agreement to the contrary, this Letter Agreement shall remain in effect only as long as the Insurance company is a funding provider for the Group Policyholder Plan. 2 C ( - r. r Upon termination of this Letter Agreement for any reason, all fees and charges waived or reduced hereunder may, at the option of the Insurance Company, again become effective from the date of termination forward. COUNTY OF WELD, STATE OF COLORADO By: � November 16, 1992 G orge Ke nedy, Cairman /18/92 (Date) W Couryty o of ommissioners ATTEST14 j By: e d County �CClerk to B and By: .(l l �/� grdiL�%' Deputye k GREATemsST LIFE rANNUITY INSURANCE COMPANY By: (Date) 3 pp Q 03- GREAT-WEST LIFE & ANNUITY INSURANCE COMPANY HOME OFFICE - ENGLEWOOD, COLORADO ADMINISTRATIVE OFFICES ENGLEWOOD, COLORADO GROUP POLICYHOLDER County of Weld, State of Colorado GROUP POLICY NUMBER 88041 GROUP ANNUITY CONTRACT DATE Group Deferred Compensation Annuity, Non-Participating The provisions on the following pages, together with the Application for this Group Annuity Contract, are part of this Group Annuity Contract. For the purposes of this Group Annuity Contract, "Plan" means the plan and adoption agreement that the Group Policyholder has designated as the County of Weld, State of Colorado. Signed for the Great-West Life & Annuity Insurance Company on the issuance of the Group Annuity Contract on the Annuity Contract Date. Vice President & Secretary President For the Actuary This Group Annuity Contract is a legal contract between the Group Policyholder and the Great- West Life&Annuity Insurance Company. PLEASE READ THIS ANNUITY CONTRACT CAREFULLY. IT IS A CONTRACT WHICH MAY PROVIDE FOR PAYMENTS OR VALUES WHICH ARE NOT GUARANTEED AS TO FIXED-DOLLAR AMOUNT BUT MAY INCREASE OR DECREASE ACCORDING TO THE INVESTMENT EXPERIENCE OF A VARIABLE ANNUITY ACCOUNT. Group Deferred Compensation Annuity GDC990FFSII APPLICATION FOR GROUP DEFERRED COMPENSATION ANNUITY CONTRACT Exact Name: County of Weld, State of Colorado (herein called the Group Policyholder) applies to Great-West Life &Annuity Insurance Company for a Group Deferred Compensation Annuity Contract (herein called the Group Annuity Contract) in the form of the copy attached to this Application. It is agreed that the Group Policyholder will accept the Group Annuity Contract when issued. Specify the effective date of the Group Annuity Contract: (which is not earlier than the first day of the year in which this Application has been made) Specify the name of the Deferred Compensation Plan: County of Weld, State of Colorado Deferred Compensation Plan This Group Annuity Contract is only available to policyholders whose Deferred Compensation Plan is an eligible State deferred compensation plan described in Section 457(b) of the Internal Revenue Code of 1954, as amended. The Insurance Company requires that a copy of the currently effective plan document accompany this application, for its information. PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT. Group Policyholder's address Weld County Board of Commissioners 915 10th Street; P.O. Box 758, Greeley, Colorado 80632 Dated at Greeley, Colorado, this 16th day of November , 19 92 County of Weld, State of Colorado Agent/Broker Name of Group Policyholder By Signature 11/1 2 Chairman, Weld County Board of Commissioners Title Application Group Deferred Compensation Annuity G620 TABLE. OF CONTENTS SEC 0N CEriNITIONS . Pay? SECTION 2. OWNERSHIP PROVISIONS 2 1 Ownership of Series Account 9 2.2 Ownersnip of Group Annuity Contract 2.3 Transfer and Assignment 3 SECTION 3. GENERAL PROVISIONS 3.1 The Group Annuity Contract 3.2 Entire Contract 3.3 The Plan 10 3.4 Non-Participating 1, 3.5 Currency and Payment of Deposits 13 3 5 Age 1 3.7 Voting Rights and Reports 41 3.8 Notice and Proof 12 SECTION 4. PURCHASE PROVISIONS 4 1 Commencement and Termination of Coverage "3 4.2 Deposits 13 4 3 Allocation of Deposits 13 SECTION 5. CONTRACT VALUE PROVISIONS 5.1 Variable Contract Value la 5.2 Accumulation Unit 14 5.3 Accumulation Unit Value 14 5.4 Annuity Unit Value 15 5.5 Risk Charge 15 5.6 Net Investment Factor 15 5.7 Guaranteed Contract Value 16 5.8 Guaranteed Sub-Account Riders 16 5.9 Contract Maintenance Charge 17 TABLE CF CONTENTS (Cantnuec SEC CN 6. 7PANSFEPS . Q 5 1 Transfers ' 9 6.2 Transfer Terms 6 6 3 intra-Company Transfers 13 6.4 Transfers to Other Companies . 3 6.5 Plan-To-Plan Transfers . 9 6.6 Transfers To The Company .9 6.7 Non-Taxable Distribution SECTION 7. DISTRIBUTIONS TO A BENEFICIARY 20 7.1 Death of Participant after Annuity Commencement Cate 20 7.2 Death of Participant before Annuity Commencement Cate 21 7 3 Amount Payable On Death Of Participant 21 7,4 Requests for Distributions SECTION 8. DISTRIBUTIONS TO A PARTICIPANT 22 8.1 Requests for Distributions 22 8.2 Distribution at age 70 1/2. or Separation From Service 22 8.3 Distribution Due to Unforeseeable Emergency 23 8.4 Amount Payable on Distribution 23 8.5 Conditions of Payment 23 8.6 Adequate Proof SECTION 9. CONTINGENT DEFERRED SALES CHARGE 24 9.1 Transfers 24 9.2 Lump Sum Distributions 24 9.3 Contingent Deferred Sales Charge Free Amount" SECTION 10. PAYMENT OPTIONS 25 10.1 Selection of Payment Options 25 10.2 How to Elect Payment Options 25 10.3 Variable Dollar Payment Options 26 10.4 Fixed Dollar Payment Options TABLE CF CCNTENTS (Continued) _ECTCN 1 t C NTRACT MCCIFICATION 11 1 Contract Modification 31 11 2 Modification of Taoles 31 11 3 Modification of Guaranteed Sub-Account Riders, if Any 31 11.4 Modification of Variable and/or Guaranteed Sub-Account 31 Riders. if Any SECTION 12. CESSATION OF DEPOSITS 12.1 Cessation of Deposits 32 12.2 Options of Date of Cessation of Deposits 32 33 TABLE A 33 TABLE 8 34 3r TABLE C TABLE D 37 6 TABLE E GUARANTEED SUB-ACCOUNT RIDERS, IF ANY • • 921035 SECON ^==:NI—IONS Accumulation Period - the :enc.; wricr the Par:c,cant is cc._ e: unbar this Group Annuity Contract to :re Participant s Annuity Commencement Cate. Accumulation Unit - an accounting measure used to deterrr.re :re Vanacte Contract Vaiue cefore :re Commencement Cate. Administrative Offices - 8505 East Orchard Road, Englewood. Ccicradc 80111 . Annuitant the person upon whose life the payment of an annuity is cased. Annuity Commencement Date - the date on which annuity payments commence under a payment option, which for any Partic,oart is the date required under the Group Policynoicer s Plan. Notwithstanding the immediately prececirg sentence, the Participant's Annuity commencement Date will never be later than April 1 of the calencar year following the calendar year in wnicn :ne Participant attains the later of: A. Age 70 1/2, or B. Separation from service. Annuity Payment Period - the period during which the Participant is covered under this Group Annuity Contract after the Participant's Annuity Commencement Cate. Annuity Unit an accounting measure used to determine the dollar value of any Variable Dollar Annuity Payment after the first annuity payment is made. Company - the Great-West Life & Annuity Insurance Company. 5 SEC .CN 1 .,_F NI''.CNS (continued) :eccs;t induces ccntr:cutions. transfers and carer ar-c is deposited into Guaranteed or vanac.e Suc-Accounts. :igible Fund • a registered management investment comoany n which the assets of the Series Account .'ray be invested. Group Annuity Contract Date the effective date indicated by the Grouo Policyholder on the Application for this Grcuo Annuity Contract, or such otner date wnicn is acceptable to the Company. Group Policynolder • the employer of a Participant and the applicant `or this Group Annuity Contract. Guaranteed Account - the portion of this Group Annuity Contract providing Guaranteed Sub-Accounts, each having a Guaranteed Interest Rate and containing fixed dollar amounts. Guaranteed Contract Value - the sum of the values of the Guaranteed Sub-Accounts credited to the Group Policynolder in respect of a Participant under a Participant Annuity Account. Guaranteed Interest Rate - the minimum interest rate applicable to Guaranteed Sub-Accounts which on an annual effective basis is 4%. Guaranteed Sub-Account - a subdivision of the Guaranteed Account having a Guaranteed Interest Rate. This subdivision is described in greater detail in the attached Guaranteed Sub-Account Riders, if any. Investment Division - a division of the Series Account containing the shares of a specific portfolio of the Eligible Fund. There is an Investment Division for each portfolio of the Eligible Fund. 6 _EC— cN __='V',-CNS iccrt:nueci intra-Compary Transfer - amounts moved within arc between :re curerr: offered Varapie and Guaranteed Suc-Acco..r:s upon eacn Written Reeuest of :ne Gr__c Poiicjnoicer on oenail of me Participant. Letter Agreement - a formal written agreement signed by the Ccrpary and Me Group Policyholder wnicn is used :o c.ar_y or modify certain provisions of the Contract arc wi I be attached to and form a part of tms Gruc Annuity Contract. Participant - an employee who has met the eiig,cIi ty recwrements under the Plan and for whom :re Greco Policyholder has applied for coverage. Participant Annuity Account - a secarate record in the name of each Participant wnucn reflects the total of the Guaranteed and Variacie Contract Values. Participant Annuity Account Value - the sum of the Variable and Guaranteed Contract Values :recited to the Group Policyholder in respect of a Participant under a Participant Annuity Account. Participant Effective Date the date on which the first Deposit is credited to a Participant Annuity Account. Payee - the Group Policyholder or the person. including the Participant. designated to receive the value of the Participant Annuity Account. Plan - the :ndertymg plan document of the Group Poucmcroer written in accordance with Section 457 of the rternal Revenue Code. Although the Company may have knowledge of certain provisions of the a'an. the legal sufficiency of the Plan remains sorery the responsibility of the Group Policyholder. Shows any provisions of the Plan and this Contract be in conflict, the provisions of this Contract snail prevail 7 924 035 -.,, c,njhi;N !continued! F -c-Plan Transfer - amounts moved from any Variacie or G..arantees - an Sub-Account to another eligible deterred comoensation plan uoon Written Request from ire Group Policyholder on Denali of a Parttcccant. Premium Tax - the amount of tax. A any, charged by a state or other governmental authority on premiums. the FutureFunds Series II Account, a segregates Series Account investment account established by Great-Nest Lfe 3 Annuity insurance Company under Colorado Jaw. Transfer to Other Companies - amounts moved from any Variable or Guaranteed S,u.c-Account to another company upon eac❑ Written Request from the Group Policyholder on tenart of the Participant. Valuation Date a date on which the net asset value of each ig cie Fund is determined. Valuation Period tre period between successive Valuation Cates. Variable Contract Value - the sum of the values of the Variable inSub-Accounts s created to the GroupPolicyholder Participant under a Participant Annuity Account. Variable Sub-Account - a sub-division of an Investment Division which separates Deposits received under tax qualified arrangements from those received under non-tax h able'as isd arrangements. nAccumulator Unitrrand Annuity Unit Value Written Request ary request in written form, satisfactory to the Company and received by the Company at its Administrauve Office, from the Group Policyholder. the Participant, or their designee as required by any provision of this Group Annuity Contract. d any, and at other times as required by the Company. A form or direction in lieu of the Written Request may be accepted by the Company in its sole discretion. 8 r *!N=CI-:,p =CV'!CI�VS 2 - .n^ers ,.( Ser'�s AJ CUr he Company has absolute ownersnip of the assets of ;re genes Account. 2 2 Cwrersn,c of 3roup Annuity Ccntract Upon the Group Policyholder's Application for this Group Annuity Contract. the 3rc_c Policyholder becomes the owner of the Group Annuity Contract. It alone nas au r.;nts remedies and recourses given in the Group Annuity Contract. and, while tre Annuity Contract and the Participant Annuity Accounts are held in respect of Participants there is no contractual relationship between the Company and the Participants. While tre Group Policyholder may request the opinion of the Participant on matters ara transactions affecting the Participant Annuity Account, the Group Policyholder may act according to the dictates of its own judgment and discretion. Subject to the Plan participation provisions, each employee for whom Deposits have teen made is a Participant for whom a Participant Annuity Account is kept. 2.3 Transfer and Assianment The interest of the Group Policyholder in this Group Annuity Contract may not be transferred, sold, assigned, pledged, charged, encumbered, or in any way alieratad without the prior written consent of the Company. 9 32:03.5 SEC-70N 3 -N E=A oaCVIS:CNS �c ��- L z,r -- GrCUP ar :tv Ccrr as The Group Annuity Contract is issued by the Company to the Group Policyrcicer 3.2 E-t re Contract This Group Annuity Contract. its Application,Tables, Guaranteed Sub-Account Piders arc form the entire contract between the Paiicincicer an Letter ompany.nA copyif any, the Application is attached to the Group Annuity Contract and the Company. A PP when issued to the Group Policyholder. After issue. modifications to the Group Annuity Contract under the Contract Mcai ication provisions become part of the Group Annuity Contract. All statements in the Application, in the absence of fraud, have been accepted as representations and not as warranties. Only the President, a Vice-President. or the Secretary of the Company can modify or waive any provisions of the Group Annuity Contract. 3.3 The Plan • The terms and provisions of the Plan do not for any purpose form any part of this Group Annuity Contract and are not binding on the Company. Notwithstanding the fact that the Company may have knowledge of the terms of the Plan. the obligations of the Company are measured and determined solely by the terms and provisions of this Group Annuity Contract. 3.4 Non-Particioatina This Group Annuity Contract is non-participating, meaning that it is not eligible to share in the Company's divisible surplus. 3.5 rrencv and Payment of Deposits All amounts to be paid to or by the Company must be in the currency of the United States of America. All Deposits to this Group Annuity Contract must be made payable to the Company or its designated agent. 10 921035 SE:710N 3 _N_ s' L =r0Vlc:'Nc continued) 3 6' '_ If the age of the Participant or Payee has been misstated. the cayments estac Isrec for ner urger me Particpant Annuity Account will be made on the oasis of hns,her cor•ac age. If payments were too large because of misstatement, the difference with interest rcav oa deducted by the Company from the next payment or payments. ti payments «ere top small, the difference with interest may be added by the Company to the next payr^ert. This interest will be not less than 4% per year. 3.7 Voting Rights and Reports The Company will vote the shares of an Eligible Fund held in a Variable Sub-Account of the Investment Division of the Series Account. To the extent required by law, the Company will vote according to the instructions of the Group Policyholder in proportion to its interest in the Variable Sub-Account. In such event, the Company will send proxy materials and form(s) to the Group Policyholder for its reply. If no reply is receivedi. the Company will vote shares of the appropriate Eligible Fund in the same proportion as snares of the Eligible Fund for which replies have been received. During the Annuity Payment Period under the Participant Annuity Account. the numcer of votes will decrease as the assets held to fund annuity payments decrease, the Payee will be entitled to receive the proxy materials and form(s) otherwise provided to the Goruo Policyholder, and all other provisions concerning Voting Rights will apply to the Payee of a Variable Dollar Method of Payment Option. The Company will furnish the Group Policyholder or the Payee of a Variable Dollar Method of Payment Option copies of any shareholder reports of the Eligible Funds and of any other notices, reports or documents required by law to be furnished to either of them. Semi-annual reports of the Eligible Funds will be furnished as required by law to the Group Policyholder, who shall promptly deliver them to each Participant or Payee of a Variable Dollar Method of Payment Option. The Company will furnish the Group Policyholder not less frequently than annually a statement of each Participant's Participant Annuity Account Value, which the Group Policyholder will promptly deliver to the Participant. The Group Policyholder may direct the Company to deliver these reports and statements to the Participants. 11 32:035 SECT 'N a. GcNEL oECVISICNS (continued) `.C 9 arC orcof Any notice or demand by the Company to or upon the Group Policrnolder or any °avee may be given by mailing it to that person's last known address as stated in tre Company s file. An application, report, request. election, direction. notice or demand by the Group Policyholder or Payee will be made in a form satisfactory to the Company. When the Company requires it. the Group Policyholder will obtain the signature of the Participant s or Payee's spouse on forms provided by the Company. The Company may require adequate proof of the age and death of any Payee before it admits a claim for or pays any payment. Written materials developed by by the r Com pany. Policyholder cy to describe this Group Annwry Contract must first be approved 12 92:035 4 =� _.:AC d('V'. 0NS .. e n , t aro' —er^- ^olio cifCovera e The Grouo Policyholder may make application for coverage of any employee f re Cancan y :s tnen accepting applications for coverage under this Group Annuity Contract unless a mate of Cessation of Deposits nos been cecared. An employee for whom an adequate application has been made becomes covered as a Participant as of the Participant Effective Date. Coverage of a Participant terminates con the Group Policyholder's total or partial distribution wnich results in a Participant Anrurty Account Value of $0. 4.2 Deposits Unless a Oate of Cessation of Deposits has been declared, the Group Policyholder rrav from time to time pay Deposits in cash in respect of a Participant until the earner cif hisiher death, Annuity Commencement Date. or the termination of the Participant Annuity Account. The amount of Deposits to be paid by the Group Policyholder in respect of any Participant will be determined by the Group Policyholder. The Group Policyholder will report the amount paid as Deposits on forms acceptaole to the Company. The Group Policyholder's report is conclusive and binding on it and any person or entity claiming an interest under the Group Annuity Contract or any Participant Annuity Account. When the Group Policyholder's report does not coincide with the Deposits received, the Company may return them. 4.3 Allocation of Deposits Atter an adequate application on behalf of a Participant has been made. Deposits. less Premium Tax, if any, will be allocated in the Participant Annuity Account when received by the Company at its Administrative Offices. Deposits on behalf of the Participant will be allocated among any number of currently offerd Variable and Guaranteed s in accordance with the Written Request of the Group Policyholder t on behalf of the Participants latest recorded The allocation of Deposits may be changed at any time upon the Company's receipt at its Administrative Offices of the Written Request of the Group Policyholder on behalf of the Participant. A change e of allocation on recording oethe change.9for Deposits which are received after the Company's receipt and 13 92'1.035 CON--AC' VAJ ' 'PCViS 0NS SEC-:,;N 5. �. �- 1 l�''a-i2 ac. "ail ie The variable Contract Value for a Panic:pant on any date during the Accumuiat cn °encc will be the sum of the values of the Variable Sub-Accounts of the Series Account neic for the Participant. The value of a Participant's interest in a Variable Sub-Account will be determined ty multiplying the number of Accumulation Units held for the Participant for that Variab'ie Sub-Account by the Accumulation Unit Value for that Variable Sub-Account. 5.2 Accumulation Unit Deposits received at the Aar inistrative Offices of the Company before the close of a Valuation Period will be allocated as requested and applied as of that date based upon the Accumulation Unit Value for that Variable Sub-Account as of the Valuation Date immediately preceding receipt of the funds, to provide Accumulation Units of the selected Variable Sub-Accounts of the Series Account. The number of Accumulation Units credited for each Participant to a Variable Sub-Account will be determined by dividing the amount of the Deposits then applied to such Variable Sub-Account by the on the Valuation Date on which hecDeposits owee madeVariable and allocated.it Value for that aSub-Account The number of Accumulation Units will not change because of a later change in the Accumulation Unit Value, but the Accumulation Unit Value will vary to reflect the investment experience of the Variable Sub-Account. • 5.3 Accumulation Unit Value The Accumulation Unit Value of a Variable Sub-Account on any Valuation Date is ecuat to the Accumulation Unit Value of that Variable Sub-Account as of the immediately preceding Valuation Date multiplied by the net investment factor (as explained in Section 5.6) for the Valuation Period ending on the Valuation Date on which the Accumulation Unit Value is being determined. The Accumulation Unit Value may increase, decrease, or remain unchanged as a result of the value of the net investment factor. 14 92A-.0 35 SECT'CN 5 CON`-AC" VALUE ocCV'S'CNS 5 Annuity Unit Value The 1nitiai Annuity Unit Value of each Vanaoie Sub-Account was estaciisned at 3 cr :ne Cate a :eoost was first mate under a Variable Annuity Method of Payment to :^.e Variable Sub-Account(s). The Annuity Unit Value of any Variable Sub-Account on any suosequent Vaivaticr Cate is equal to the Annuity Unit Value for the immediately preceding Valuation Gate mu,toned by the net investment factor for that Variable Sub-Account for the Valuation Pence enc.r, on the Valuation Date on which the Annuity Unit Value is being determined. are multiplying the result by a factor of .999905 to neutralize the assumed investment -ate of 3.5% per year used in the applicable Table for Variable Dollar Method of Payment Cptcns 1, 2, 3, and a. The Annuity Unit Value may increase, decrease or remain unchanged as a result of the value of the net investment factor. 5.5 Risk Charge The Company will deduct the risk charge for expense and mortality guarantees in the calculation of the net investment o of the daily net asset value of each Variable Sub-Account. 1.25% Account This deduction is mace easy. 5.6 Net Investment Factor The net investment factor for any Variable Sub-Account for any Valuation Period is determined by dividing (A) by (8), and subtracting (C) from the result where: (A) is the net result of: (1) the net asset value per share of the Variable Sub-AccountEligible Fund shares held determined as of the end of the curre nt Valuation Period, plus (2) the per share amount of any dividend (or, if applicable, capital gain distributions) made by the Eligible Fund on shares held in the Variable Sub-Account if the 'ex-dividends date (the date four days before the record date which determines if the Group Policyholder is eligible to receive a dividend) occurs during the current Valuation Period, minus or plus (3) a per unit charge or credit for any taxes incurred by or reserved for in the Variable Sub-Account. whicn is determined by the Company to resulted have from the investment vestmen operations of the Variable Sub-Account. 15 SEC7CN 5. ^ ��aq�- VALUE �cCVISICNS (continued) 7.7 Net "irveStme'! F3c:Cr (continued) (31 is the net result of: (1) the net asset value per share of the Eligible Fund shares he+C ir :re Variable Sub-Account determined as of the end of the .mmeciate:V preceding Valuation Period, minus or plus. (2) the per unit charge or credit for any taxes incurred by or Valuation Period. iec !or in the Variable Sub-Account for the immediately p 9 (C) is a factor representing the risk charge. The net investment factor may be greater than. less than. or equal to cre. Therefore. the Accumulation Unit Value and the Annuity Unit Value may increase. decrease or remain uncnanged. The per share amount of any dividend referred to in paragraph (A)(2) includes a deduction for an investment advisory fee. This fee compensates the investment adviser for services provided to the Eligible Fund. The fee may differ between Eligible Funds and may be renegotiated each year, but wilassets l ver the Eld an igible b n annual rate of 1.00% of the aggregate average daily Fund. 5.7 Guaranteed Contract Value The Guaranteed Contract Value of a Participant Annuity Account on any date during the Accumulation Period will be the sum of the values of the Guaranteed Sub-Accounts credited to such Participant Annuity Account. The Company may offer one or more Guaranteed Sub-Accounts into which Deposits will be made at the Written Request of the Group Policyholder on behalf of the Participant. 5.8 Guaranteed Sub-Account Riders The computation of the value of a Guaranteed Sub-Account is described in greater detail in the attached Guaranteed Sub-Account Riders, if any. 16 9 Ly 33.E • SEC-ION 5 CON- rtACT VALUE °OCVISiCNS !continued) 3 C: tract Ma!rterance Charge On the first day of each calendar year a contract maintenance charge of not more cyan 360 annually will be declared by the Company and decuctec from the Par,rcart yrr_,y Account. If a Participant Annuity Account is estaohshed for a Participant after :rat tate. the contract maintenance charge will be deducted on the first day of the next quarter arc will be pro-rated for the year remaining. No refund of this charge will be mace. The deduction will be pro-rated among the Variable and Guaranteed Sub-Accounts based upon their Variable and Guaranteed Contract Values on the date of deduction. Whenever a deduction for a contract maintenance charge is to be made from a Variacie Sub-Account, the Company will cancel Accumulation Units having a total value equal to the amount of the deduction. The Group Policyholder may elect to pay such excesses to the Company separately. If such an election has been made. then no charge will ce made against the Variable and Guaranteed Sub-Accounts unless payment is not received within 30 days. • 17 32 .035 SECTION 5TRANSFER'S 5.! T'af sfers The Group Policyholder may make mitre-Company Transfers, Plan-to-Plan Transfers or Transfers to Other Companies by Written Request on benalf of Me Participant. 6.2 Transfer Terms a. A transfer will take effect on the later of the date elected or the date the Written Request is received at the Administrative Offices of the Company. if such Written Request is received atter 4:00 p.m. ES T,EDT, the transfer will take effect on tre later of the date elected or the date following the date the Written Request .s received and a unit value is calculated. b. A telephone transfer, if permitted. wail take effect on the later of the date elected or the date the telephone can is received at the Administrative Office. if sucn call is received after 4:00 p.m. EST,EDT. the transfer will take effect on Me later of me date elected or the date following me date the call is received and a unit value is calculated. the c. When the Company provided rt. Me metoup Company pholder on as necessary fftof the Participant requested will execute forms provided by transfer. d. No transfers are permitted after the Annuity Commencement Date. e. No transfers from the Guaranteed Certificate Fund may be made prior to the Certificate Maturity Date, as defined n me Guaranteed Certificate Fund Rider, if any. The amount available 'or transfer is the value of that Certificate on its tten Request to transfer v ytt The GfOparry warm days after s the Certificate Maturity Date. be received by the Company 6.3 Intra•Comoanv Transfers a. At any time prior to the Annuity Commencement Date, the Group Policyholder on behalf of the Participant may by r nen Request transfer all or a portion of the Participant Annuity Account 'satue wrthln and between the Variable and Guaranteed Sub-Accounts currertry offered by the Plan. Group Policyholder on b. At any Par time prior to the Annuity Commencement tten Request make anelntra-Company Plan-to- Plan of the Participant may oy Ar Plan Transfer. aza 035 t8 • SECT ON ANS:t` IContlnuccl _ 3 73--d bare 'arsfers .CCnr,^uec) rf an Intra-Comcany T'ansfer s mace within 30 days of the Ar Commencement Cate, the Company may delay the Annuity Commencement Cate by 30 days. d. if a Participant dies prior to the Annuity Commencement Cate, one intra-Comcary Transfer may be made after the death of the Participant by the Group Policy-cigar on behalf of the Payee to effect the election of a Payment Option. e. No Contingent Deferred Sales Charge will apply to Intra-Company Transfers. 6.4 Transfers to Other Companies a. At any time prior to the Annuity Commencement Date. the Group Policyholder or behalf of the Participant may by Written Request transfer all or a portion of the Participant Annuity Account Value to an account currently offered by another company under the terms of the Plan. b. At any time prior to the Annuity Commencement Date, the Group Policyholder on behalf of the Participant may by Written Request transfer the entire Particcant Annuity Account Value to an account offered by another company under another eligible deferred compensation plan. c. The Contingent Deferred Sales Charge described in Section 9 shall apply to any and ail Transfers to Other Companies. 6.5 Plan-to-Plan Transfers a. Plan-to-Plan Transfers where the amounts remain with the Company under a new eligible deferred compensation plan shall be treated as Intra-Company Transfers. b. Plan-to-Plan Transfers where the amounts are transferred to other companies under a new eligible deferred compensation plan shall be treated as Transfers to Other Companies. 6.6 Transfers To The Company Amounts transferred to the Company shall be treated as Deposits under Section 4 of this Contract. 6.7 Non-Taxable Distribution No amount transferred pursuant to these provisions will be treated as a taxable distribution to the Participant. 19 :IC-7ANC --, 4 acNjEElAPY 7 t :eat of 2artic:^ant after Annui Commencement Date. !f the aarticpant dies after the Annuity Commencement Date and before his,`'er entree interest has teen distributed. payments will continue to the Beneficiary under the Payment Option appiicaole to the Participant on the Participants date of death. Notwitnstarc,rg the preceding sentence. rf the Plan allows the Beneficiary to change the method of distribution, a new Payment Option may be elected by Written Request mace y the Grouo to the Policyholder on behatf of the Beneficiary only so long as payments Beneficiary not less rapidly than under the Payment Option effective on the Partmo:cant s date of death. The Contingent Deferred Sales Charge will not apply. 7.2 Death of Partici ant before Annui Commencement Date. a. 5-Year Rule. If the Participant dies before the Annuity Commencement Date. the entire interest of the Participant must be distributed within five years after the death of the Participant. This Rule will always apply to non-individual entities b. 1-Year Rule. If the Plan provides that any portion of the Participant's interest s payable to a designated Beneficiary, such portion may be distributed over the lesser of (1) the life of the designated Beneficiary, or (2) over a period not extending beyond the life expectancy of the designated Beneficiary or 131 15 years. Such distributions to a designated Beneficiary must begin not later tan December 31 of the year following the date of the Participant's death. The Grouo Policyholder on behalf of the designated Beneficiary may elect by Written Request to take distributions either under the 5-Year Rule or under this 1-Year Rule. If no election is received by the Company by November 1 of the year following the year of the Participant's death, distributions will be made pursuant to the 5-Year Rue described in subsection a. of Section 7.2. For purposes of this section, a designated Beneficiary is any individual named as a Beneficiary by the Participant. c. Soecia a for Survivine Souse. if the designated Beneficiary is the surviving spouse of the Participant, the date on which the distributions are required to begin shall not be earlier than the date on wnich the Participant would have attained age Section 10 of this 70 Distributions in any event mustlected at any time pursuant commence on or before the aer of (1) D cemoer 31Contract but in any of the year immediately of the calendar year in wh ch the Participant would have attained(2)age 70 1/2. December 31 20 SEC ON 7 SIST^IEU'bONS —C A BENEFICIARY 7 2 17=atr of °ariccart before Arruity Cor^-ercemert Date. (continued) d. Any payments made over a period greater than one year can only be -..ace sucstantially non-increasing amounts pate not less frequently than annually. e. The Contingent Deferred Sales Charge will not apply. 7.3 Amount Payable on Death of Participant If the Participant dies before the Annuity Commencement Date the Amount Payaoie on Death will be: (a) Where death occurs before the Participant's 70th birthday, the greater of: (i) the Participant Annuity Account Value, less Premium Tax, if any. and (ii) the sum of Deposits paid to, less any Partial Distributions made from, the Participant Annuity Account, less Premium Tax, if any. (b) Where death occurs on or after the Participant's 70th birthday, the Participant Annuity Account Value, less Premium Tax, if any. 7.4 Requests For Distributions Subject to the 5-Year rule, the 1-Year rule or the Special Rule for Surviving Spouse. as applicable, set forth in Section 7.2, an election to receive the amount described in Section 7.3 must be made pursuant to Section 10 of this Contract. 21 SEC7CN 3 ^'e'o'nir CNS ?C A oART1CIPANT 3 ae^uests 'or ^ stnbutions On the Company's receipt of the Policyholder Written Request behalf at least 30 days before pant may: the wri Commencement Date. the Group a. Elect or change a Payment Option. ent te to any future Cate b, Elect which change the Participant's 1 of the calendar yearfollowing athe calendar..year in which is not later than April which the Participant attains the later of age 70 1/2 or separation from service. If any Annuity Commencement Date would be less than 30 days from the date ire Written Request is received, the Company may delay the Annuity Commence --ant Date elected by 30 days. c. tf the Group Policyholder on behalf of the Participant has failed to elect a Pa . ant Option within 30 days of the Annuity Commencement Date, the Company will pay the Group Policyholder on behalf of the Participant a Variable Lite Annuity wrth 10 Wwith 10 Period(earartGuarranteed Period rom the Variable Contract Value and a from the Guaranteed Contract FValue.ixed Life Annuity 8.2 istribution t a 70 1 or Se oration From Service Except as provided in Section 8.3, no distributions will be allowed prior to the Participant's attainment of age 70 1/2, or separation from service, as determined by the Group Policyholder. The distribution must be elected pursuant to Section 10 of this Contract and will take effect on the later of the date elected and the date the Written Request is received at the Administrative Offices of the Company. 8.3 Distribution Due to Unforeseeable Emergency if the Participant incurs an unforeseeable emergency aPolicyholderdetermined et m on behalf the of uc Policyholder under the terms of the Plan, then the Group e Participant may by Written Request take a total or partial distribution from the Participant Annuity Account. The distribution will take effect on the later of the date elected and the date the Written Request is received at the Administrative Offices of the Company. 22 9av'n SEC7CN 8. :'LST= 91_'e.NS TO A :4PTIC;P4NT (Continued) 3 4 Amount Pavacie on Cistnbut,cn if a total distribution is requested. the amount payable wail be paid uncer the Payment Option provisions of Section 10 designated by the Group Policynolder on benalf of tre Partiaoant. If a partial distribution is requested. the amount payable will be in ore sum In either event, the amount will be equal to: (a) The amount of the distribution requested as of the effective date of :re distribution, less (b) the Contingent Deferred Sales Charge, if any, less (c) Premium Tax, if any. 8.5 Conditions of Payment Payment will only be made if then available to the Payee under the terms and provisions of the Plat:as determined by the Grouo Policyholder, and will only be made to the Group Policyholder or to the order of the person designated in Written Request by the Group Policyholder to receive payment. 8.6 Adequate Proof The Company may require adequate proof of age, separation from service or unforeseeable emergency to establish that a benefit has become payable under the provisions of the Plan prior to making any payment under this Group Annuity Contract. 23 92..033 r CALcc ruAPr== 91 ^ansfers On any total or partial transfer of the Participant Annuity Account to another company :re Contingent Deferred Sales Charge will be deducted from the amount transferrer. The Contingent Deferred Sales Charge will be equal to a percentage of the amount trarsferrer based on the table in 9.2 below. 9.2 Lump Sum Distributions On any total or partial lump sum distribution of the Participant Annuity Account at age 70 1/2. separation from service or due to an unforeseeable emergency, a Contingent Deferred Sales Charge will be deducted from the amount distributed. The Contingent Deferred Sales Charge will be equal to a percentage of the amount distributed in excess of the Contingent Deferred Sales Charge Free Amount, if any, based on the table below. Contingent Deferred Sales Charge Table Completed Years From Participant Effective Date % of Amount Transferred or Under this Contract Distributed 5% 5 . 9 4% 10 - 14 3% 10 - 15 or more 0% Notwithstanding anything in this 3roup Annuity Contract to the contrary, in no event shall the Contingent Deferred Sales Charge at any point in time exceed 8.5% of Deposits contributed by the Participant into this Group Annuity Contract. 9.3 Contin ent Deferred Sales Char a "Free Amount" The Contingent Deferred Sales Charge "Free Amount applicable to any Account or partial sum distributions is equal to 10% of the Participant Annuity December 31 of the calendar year prior to the year in which the amount is distributed. Only one Contingent Deferred Sales Charge "Free Amount' is available on behalf of a Participant in each calendar year. The Contingent Deferred Sales Charge 'Free Amount" n that will be applied on the first distribution made under the Participant Annuity Account year. 24 SEC IICN 13. vgYMENT CP"CNS C_1 Se!ecticn of Payment Coders ;a) A total or partial lump sum or one of the variable or fixed dollar payment cct,crs or a comoination of them may be elected. (b) if the Group Policyholder on behalf of the Payee elects to aopiv any or au of tre Guaranteed Contract Value to a variable dollar method of payment option. or any or all of the Variable Contract Value to a fixed dollar method of payment :ctior an Intra-Company Transfer must be made prior to the Annuity Commencement Cate pursuant to Section 6. (c) If a lump sum option is elected. the amount to be distributed is the amount requested as a lump sum less the Contingent Deferred Sales Charge, if any, and Premium Tax, if any, as of the date the amount is distributed. (d) If a variable dollar payment option is elected, the amount to be applied is the Variable Contract Value, less Premium Tax, if any, as of the date the amount of the first month'y payment is determined. (d) If a fixed dollar method of payment option is elected, the amount to be applied is the Guaranteed Contract Value, less Premium Tax, if any, as' of the Annuity Commencement Oats. 10.2 How to Elect Payment Options The Written Request of the Group Policyholder on behalf of the Participant or Payee is required to elect, or change the election of, a Payment Option and must be received by the Company at least 30 days prior to the Annuity Commencement Date, or, if the Participant dies prior to the Annuity Commencement Date, within 60 days of the date the Company receives adequate proof of the Participant's death. The Company will rely on the Group Policyholder's determination with respect to the timing and amount of any benefit-payable to the Participant or Payee under this Contract. Nothing contained herein shall be construed to be tax or legal advice and the Company assumes no responsibility or liability for any costs, including but not limited to taxes, penalties or interest incurred by the Plan. the Group Policyholder, the Participant or any Payee arising out of such determination. 25 3211.035 SEC-1ON 10. PavafEN� � ONS ;continued) ' C 2 Vjzmole -)cila °' re^t Oct Otis The following variable dollar payment options are available: (a) Option 1 : Variable Life Annuity with Guaranteed Period The Company will pay a monthly payment for the guaranteed Annuity Payment Period elected. Payments will continue for the lifetime of the Payee. T he guaranteed Annuity Payment Period elected may be 5. 10, 15. or 20 years. Ucon death of the Payee, any amounts remaining payable under this payment option will be paid to the Group Policyholder or other Payee designated by the Group Policyholder under Section 7 of this Group Annuity Contract. (b) Option 2: Variable Life Annuity The Company will pay a monthly payment during the Payee's lifetime. Table A is applicable to this Payment Option. (c) Option 3: Joint and One-Hall Survivor Variable Annuity A joint and one-half survivor variable annuity provides a variable monthly payment to an Annuitant for hisiher lifetime; thereafter, and upon receipt by the Company ment of adequate proof of the Annuitants death, one-half of the variable pay amount continues to a designated Payee, if living, and terminates upon Mister death. Table B is applicable to this Option. (d) Option 4: Any Other Form The Company will pay any other form of Variable Annuity which is acceotable to it. Upon death of the Payee. any amounts remaining under this Payment Option will be paid to the Group Policyholder or other Payee designated by the Group Policyholder under Section 7 of this Group Annuity Contract. (e) These variable dollar payment pptions are subject to the following provisions. c•rst Monthly(1) Amou� Pavment. The first monthly payment under a variable dollar payment option will be based on the Variable Contract Value credited onbehalf °hthe num Commencement Date.nt Annuity Account on It willbe Valuation t Date preceding rate horn the applicable Table to determined by applying the appropriate the amount applied under the payment option. Thee first monthly each ar mete ayment will be the sum of the variable dollar annuity payments Y Sub-Account. 26 10 ;AvMENff CP' CNS (continued) Jaracie Dear cavr^ert Cptcrs (continued) 2) Annuity Units. The number of Annuity Units for each Variable Sub-Account to be created in respect of the Participant Annuity Account Ivi t ce determined by dividing the portion of the first monthly payment to ce taKen from such Sub-Account by the Sub-Account's Annuity Unrt Value on tre 5th Valuation Date preceding the date the first payment is due for rvn cn the number of Annuity Units is being computed. The number of Annuity Units for a Variable Sub-Account remains fixed during the Annuity Payment Period. (3) Amount of Monthly Payments after the First. Monthly payments after the first will vary in amount from time to time depending upon the investment experience of the Variable Sub-Accounts of the Series Account. The dollar amount of each Variable Dollar Annuity payment to the Participant or Payee after the first for each Variable Sub-Account is determined by multiplying (a) the wumber of Sub-Account Annuity Units credited to the Participant Annuity Account by (b) the Sub-Account Annuity Unit Value on the 5th Valuation Date preceding the date the annuity payment is due. The total dollar amount of each variable dollar annuity payment will be the sum of the variable dollar annuity payments for each Varacie Sub- Account. The Company guarantees that the dollar amount of each payment atter the first will not be affected by variations in expenses or mortality experience. (f) If any payment to be made under the elected payment option will be less than $50, the Company may make the payments in the most frequent interval when produces a payment of at least $50. The minimum amount that may be applied under the elected payment option is $2.000. if the amount is less than $2.000. the Company may pay it in one sum. The maximum amount that may be applied under any elected payment option is $1,000,000. For the application of any greater amount, the Company's consent is required. 10.4 Fixed Dollar Payment Options The following fixed dollar payment options are available: 27 37_.93, SRC—ON ' 0. '4` yFNT CrICNS con: nuedl ='23c ^Iar oavr^e^t Options ccortinuec) ia) Cption 1 Income of Specified Amount The Company will pay an income at 12-. 6-, 3-. or 1-month intervals. of an amount elected by the Payee for an Annuity Payment Period of not less tnan 36 montns nor more than 240 months. Uoon death of the Payee. any amounts remaining payable under this payment ootion will oe paid to the Grouo Policyholder or otner Payee designated by the Group Policyholder under Section 7 of this Group Annuity Contract. (b) Option 2: Income for a Specified Period The Company will pay an income at 12-. 6-, 3-, or 1-month intervals, for the number of years elected by the Payee for an Annuity Payment Period of not less than 36 months nor more tnan 240 months. Upon death of the Payee. any amounts remaining payable under this payment option will be paid to the Group Policyholder or other Payee designated by the Group Policyholder under Section 7 of this Group Annuity Contract. Taoie C is applicable to this Option. (c) Option 3: Fixed Life Annuity with Guaranteed Period The Company will pay a montny payment for the guaranteed Annuity Payment Period elected. Payments will continue for the lifetime of the Payee.opt on be n del t h of the Payee, any amounts remaining payable under this payment paid to the Group Policrnolder or other Payee designated by the Grouo Policyholder under Section 7 of this Group Annuity Contract. Table 0 is applicable to this option. The guaranteed Annuity Payment Period elected may be 5, 10. 15 or 20 years. or may be a d o as t Refund°. Under the d period, paymentsewillebetmadensntill nea n total of the payments made equals me amount applied. • (d) Option 4: Fixed Life Annuity The Company will pay a montriy payment during the Payee's lifetime. Table 0 is applicable to this option. 28 921035 SE:7CN ' : oavylcNT O?tCNS (continued) 4 : xed Ccilar °avr"ent Cpt,crs )continued) ie) Option 5. Joint and One-Harf Survivor Fixed Annuity A joint and one-half survivor fixed annuity provides a fixed monthly payr^ent to an Annuitant for his/her lifetime; thereafter, and upon receipt by the Company adequate proof of the Annuitant's death, one-hail of the fixed payment am.c..nt continues to a designated Payee, if living, and terminates upon nisiher ceatr Table E is applicable to this option. (f) Option 6: Systematic Withdrawal Option The Company will pay a monthly, quarterly, semi-annual or annual payment to the Payee as elected by Written Request by the Group Policyholder on bereft of the Payee. The amount, timing and method of payment will be as elected by the Group Policyholder on behalf of the Payee and agreed to by the Company. The details and provisions of the Systematic Withdrawal Option are described in greater detail in the attached Systematic Withdrawal Option Rider, which is hereby made a part of this Group Annuity Contract. (g) Option 7: Any Other Form The Company will pay any other form of Fixed Annuity which is acceptable to rt. Upon death of the Payee, any amounts remaining payable under this payment option will be paid to the Group Policyholder or other Payee designated by tare Group Policyholder under Section 7 of this Group Annuity Contract. (h) These fixed dollar payment options are subject to the following provisions:ayment on are d y the (1) PaymCompany as der a fixed dollar todollar amount throughout the t Annuity Payment Period. Company The amount of the payment under any fixed dollar payment option will be determined by applying the Company's then current non-participating group single premium rates for this class of group annuity contracts to the amount applied under the option. Those current rates will not be less than the rate obtained from the Table which is applicable to the elected option. 29 SECTION '0 apvMEN1' CPTCNS (continued) C a ' zec 0c ar cavment Cpt'4rs (continued) (2) f any payment to be made under the elected payment option )i be f be less than $50, the Company may make the payments nt interval which produces a payment of at least $50. The minimum amount that may be applied under the elected payment option is $2,000. rf the amount is less than $2.000, the Company may pay it in one sum. The maximum amount that may be applied under any elected payment option is $1 ,000,000. For the application of any greater amount, the Company consent is required. 30 3 .03 SECTiCN 11 CONTACT rv1CC'='CA''CN 11 1 Contract Mco fcaticn This Group Annuity Contract may be modified at any time by written agreement oettweer :re Company and the Group Policyholder. No such modification will. without :re wnr.en consent of the Group Policynolder, affect the terms. provisions. or coroiticrs of ms Group Annuity Contract wnich are or may be applicable to Deposits paid in respect of Participants prior to the oats of sucn modification. However, the Company may at any time and without the consent of the Group Policyholder or any Participant or other person, but upon 30 days' written notice to :ne Group Policyholder, modify this Group Annuity Contract in any respect to conform it to changes in tax or other law, including applicable regulations or rulings. 11.2 Modification of Tables The Company may at any time and without the consent of the Group Policyholder or any Participant or other person, but upon 30 days' written notice to the Group Policyholder, modify Tables A, B, C. 0, and E. or any of them. However, no such modification wiil affect the terms, provisions or conditions of the Group Annuity contract which are or may be applicable to Deposits paid in respect of Participants prior to the date of sucn modification. 11.3 Modification of Guaranteed Sub-Account Riders. if Any Any Guaranteed Sub-Account Rider may be modified at any time by written agreement between the Company and the Group Policyholder. No such modification will, without the written consent of the Group Policyholder, affect the terms, provisions, or conditions of the Rider which are or may be applicable to Deposits paid in respect of Participants prior to the date of such modification. 11.4 Modification of Variable and/or Guaranteed Sub-Account Riders. if Any Notwithstanding the other contract modification provisions, the Company may offer new or cease offering existing Variable or Guaranteed Sub-Accounts. No such modification shall affect the terms. provisions, or conditions which are or may be applicable to Deposits previously paid to any Variable or Guaranteed Sub-Account which is no longer offered by the Company. The Company will periodically notify the Group Policyholder on behalf of the Participants of the current offering of Variable or Guaranteed Sub-Accounts. 31 37^.03r- Sr.. ON ? 2. CESS ' CN OF C PCSi 5 12.1 cessation of Zeocs,ts Loon 50 days' written notice to ire other. the Group Policyholder or the Comoany may declare that. as from the date stated in the notice (that sate oeing called a Date of Cessation of Deposits), no further Deposits will be made to certain or an Guarantees Sup-Accounts of the Group Annuity Contract. if a Date of Cessation of Deposits has been declared for certain Sub-Accounts. the Group Policyholder in respect of the Participant may by Written Request make a change of allocation of his/her new Deposits. When no change of allocations is received. the Company may return all new Deposits affected by the declaration of the Date of Cessation of Deposits, or allocate such new Deposits to a currently offered Guaranteed Sub-Account. Atter the Oate of Cessation of Deposits declared in respect of all Sub-Accounts. no new Participant Annuity Account will be established. 12.2 Options on Date of Cessation of Deposits Upon the Cate of Cessation of Deposits for all Sub-Accounts, the Group Policyholder may by Written Request elect one of the following cessation options. If the Group Policyholder has not elected a cessation option within 30 days of the Date of Cessation, the Company will make the election in its sole discretion. Such election shall be binding on the Group Policyholder. a. Cessation Option (1) Maintenance of Each Participant Annuity Account Value: The Company will maintain each Participant Annuity Account Value until it is applied to a Payment Option or paid under the Group Annuity Contract. b. Cessation Option (2) Installment Settlement of Contract Values: Upon receipt of a Written Request from the Group Policyholder and subject to the provisions relating to Transfers to Other Companies. the Company will pay the sum of the Variable Contract Values in respect of Participants as of the Date of Cessation of Deposits to the successor insurer of the Plan or to the Group Policyholder within 7 days of the date the cessation option is elected. Upon receipt of a Written Request from the Group Policyholder, the Company will pay the sum of the Guaranteed Contract Values in respect of the Participants as of the Date of Cessation of Deposits to the successor insurer of the Plan or to the Group Policyholder in 20 equal quarterly installments. The amount of the installments will be the amount determined by the Company on the date of the first such payment, but not less than $514.80 for each $10,000 of Guaranteec Contract Values. The first payment will be made 30 days after the date the cessation option is elected. 32 'ABLE A - Vanacie Life Annuity Monthly Payment for Each 51 .000 of Participant Annuity Account Value Age of Without With Guaranteed Period Payee Guaranteed Period 5 Years 10 Years 15 Years 20 years 50 3.99 3.99 3.98 3.96 3.94 55 4.31 4.30 4.27 4.24 4.19 60 4.71 4.70 4.67 4.60 4.49 65 5.28 5.25 5.18 5.05 4.34 70 6.07 6.02 5.85 5.56 5.15 75 7.22 7.09 6.68 6.07 5.41 If payments commence on any other date than the exact age of the Payee as shown above. the amount of the monthly payment shall be determined by the Company on the actuarial basis used by it in determining the above amounts. 33 —IL= 3 - :clrt and One•-4alf Sur/Ivor Variaole Annuity Montnly Payment for Eacn 31 .000 of Participant Annuity Account Value Age of • if Designated Payee Is Me Annuitant 50 55 50 65 70 75 50 3.88 3.91 3.94 3.96 3.97 3.98 55 4.09 4.15 4.19 4.23 4.25 4.27 60 4.34 4.43 4.51 4.58 4.63 466 65 4.64 4.77 4.90 5.01 5.10 5.16 70 4.99 5.17 5.36 5.55 5.70 5.83 75 5.40 5.65 5.91 6.19 6.46 6.69 If payments commence on any other date than the exact age of the Annuitant or designated Payee as shown above, the amount of the monthly payment shall be determined by the Company on the actuarial basis used by it in determining the above amounts. 34 921.'035 TABLE C - Income of Specified Amount - nccme of a Specified Period Monthly Payment for Each 51 ,000 of Participant Annuity Account Value Years Payment 3 28.61 4 21.82 5 17.75 6 15.04 7 13.10 8 11.66 9 10.54 10 9.63 11 8.90 12 8.30 13 7.78 14 7.34 15 6.96 16 6.63 17 6.34 18 6.08 19 5.85 20 5.64 To determine the payment for other frequencies of payment, multiply the above monthly payment by the following factors: Factor Quarterty payment 2.99 Semi-annual payment 5.96 Annual payment 11.81 tf payments are for an amount or duration different than that outlined above, the Company will determine the proper amount or duration using the actuarial basis used to determine the above Table. 35 317' .035 TABLE .7 • F,xed Life Annuity Monthly Payment for Each $1 .000 of Participant Annuity Account Value Age of Without With Guaranteed Period Paves Guaranteed Period 5 Years 10 Years 15 Years 20 years 3.96 3.94 50 3.99 3.99 3.98 4.24 4.19 t 9 4.30 4.27 6 4.71 4.70 4.67 4.60 4.49 60 4.71 2 5.18 5.05 4.84 65 5.28 5.25 6.02 5.85 5•5b 5.15 70 7.07 7.09 6.68 6.07 5.41 75 7.22 If payments commence on any other date than the exact age of the Payee as shown above. the amount of the monthly payment shall be determined by the Company on the actuarial basis used by it in determining the above amounts. 36 92:033 —Agi c o - Jcirt art One--4alf Survivor r' xet AnrurN Monthly Payment for Eacn 51 .000 of Participant Annuity Account Value Age of If Designated Payee Is Ace Annuitant 50 55 50 55 70 75 50 3.88 3.91 3.94 3.96 3.97 3.98 4.09 4.15 4.19 4.23 4.25 4 27 55 4 51 4.58 4.63 466 60 4.34 4.43 65 4.64 4.77 490 5.01 5.10 5.16 70 4.99 5.17 536 5.55 5.70 5.83 75 5.40 5.65 5 91 6.19 6.46 6.69 If payments commence on any other date than the exact age of the Annuitant or designated Payee as shown above, the amount of the monthly payment snail be determined by the Company on the actuarial basis used by it in determining the aoove amounts. 37 w DAILY INTE?EST GUARANTEE FUND GUARANTEED SUB-ACCOUNT RIDER ATTACHED TO AND FORMING PART OF THE GROUP ANNUITY CONTRACT The Daily Interest Guarantee Fund is a Guaranteed Sub-Account. Deposits may be made Fnto the Daily Interest Guarantee Fund at any time. Interest will be earned on the Daily Interest Guarantee Fund value and compounded daily. The interest rate credited may chance on a calendar quarter basis, but on an annual effective basis will not be less than the Guaranteed Interest Rate. The value of the Daily Interest Guarantee Fund in respect of the Participant will be determined by adding his/her Daily Interest Guarantee Fund Sub-Account's Deposits and interest and subtracting distributions to a Beneficiary, amounts distributed or applied under a payment option, transfers, Contract Maintenance Charge, and Premium Tax. This Rider, unless and until modified, forms part of the Group Annuity Contract. Daily Interest Guarantee Fund Rider • 1 GUARANTEED CERTIFICATE FUND GUARANTEED SUB-ACCOUNT RIDER ATTACHED TC AND FORMING PART CF THE GROUP ANNUITY CONTRACT The Guaranteed Certificate Fund is a Guaranteed Sue-Account. whereby Credited Interest Rates not ess tan the Guaranteed Interest Rate, are credited to Deposits Held for varying Interest Guarantee Periods. The Company may offer Certificates to the Group Policynolder who may oy Written Request allocate any Deposit in respect of the Participant to any one Certificate. The Group Poiicynoider in respect of the Participant may allocate Deposits only to those Certificates currently being offered by the Company. If the Group Policyholder in respect of the Participant allocates Deposits to Certificates not currently offered by the Company, the Company may return such Deposits, allocate sucn Deposits to a currently offered Certificate, or allocate such Deposits to another currently offered Guaranteed Sub-Account. DEFINITIONS Certificate • represents the amount deposited into the Guaranteed Fund under each Interest Guarantee Period. Each Certificate has its own interest rate and Term. Term the duration of the Certificate which begins on the first day of the calendar quarter following the date of the Deposit and ends on the date specified by the Company. The duration of Terms available may be limited by the Company. Certificate Maturity Date - the last day of the Term. Interest Guarantee Period - the period from the date of the Deposit to the Certificate Maturity Date. Interest Creditina and Selection of Payment Option The Credited Interest Rate on an annual effective basis will not be less than the Guaranteed Interest Rate and will be compounded daily. A Deposit to the Guaranteed Certificate Fund whicn remains in the Guaranteed Certificate Fund until the Certificate Maturity Date will earn a Credited Interest Rate for the Certificate's Interest Guarantee Period. If the Participant dies, separates from service or has an unforeseeable emergency as determined by the Group Policyholder, amounts deposited into the Guaranteed Certificate Fund may be applied to a payment option prior to the Certificate Maturity Date. Amounts applied to a payment option pursuant to Section 10 of the Group Annuity Contract prior to the Certificate Maturity Date will receive the Credited Interest Rate from the date of deposit to the date the amount is applied to the elected payment option. • Guaranteed Certificate Fund Rider - 1 vUAc:1ti =__ -_� �'=wCATc ; ND SUS-ACCOUNT RIDE? iccnuncedI are Seiect:cn of l'ev'"?nt Cct!on icontinuedl If me Participant has not died. separated from service or excerienced an unforeseeac e emergency as determined by the Group Policyholder, amounts oeposite0 into the Guaranteed Certificate Fund must remain in me Certificate until the Certificate Maturity Date. Thus. ^c payment action may oe elected, and no distributions or transfers will be permitted prior to :re Maturity Date of each respective Certificate. Cert'ficate Maturity Prior to the Certificate Maturity Date, the Company will offer a Guaranteed Sub-Account nto whicn the ue of the be deposited on its Maturity ate. The Guaranteed Sub-Accounts Certificate so offered may be either willCertificate the Guaranteed FundD or another Guaranteed Sub-Account. If the Guaranteed Certificate Fund is offered, the value of the Certificate on its Maturity Date wul establish a new Certificate which has its own Credited rm. The Credited Interest Rate of this new Certificate may be higher or lower than the Credited Inn erest Rate of any other Certificate or Deposit. tf another Guaranteed Sub-Account is offered. the value of the Certificate on its Maturity Date will be nterest be higher or into lower rthan the Crediitedub-Account. The Credited Interest Rate of any otherlDeposrt ate of this Deposit may Transfers • The terms of Section 6 of the Group Annuity Contract will apply to any transfer to or from the Guaranteed Certificate Fund. Value of Guaranteed Certificate Fund The value of the Guaranteed Certificate Fund in respect of the Participant will be determined by adding his/her Guaranteed Certificate Fund Sub-Account's Deposits and interest, and subtracting ing ciary, amounts underra paymentptionttransfers, Contract Maintenanctotal or partial disributions, distributions to a e Charge, and Premium Tax. Thd isapp This Rider, unless and until modified. forms part of the Group Annuity Contract. Guaranteed Certificate Fund Rider - 2 3,7-#.933 Hello