----------------------------------------
THE LINCOLN NATIONAL
LIFE INSURANCE COMPANY
FORT ▇▇▇▇▇, INDIANA
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(herein called "the Company")
Group Variable Annuity
Contract Number GVA-
agrees with
(herein called the "Contract Owner")
to pay
at the Home Office of the Company in Fort ▇▇▇▇▇, Indiana, the benefits herein
provided, in accordance with and subject to the provisions of this Contract.
This Contract is issued in consideration of the application therefor and of
payment by the Contract Owner of contributions as provided herein.
The effective date of this Contract is
This Contract is delivered in and is governed by
the laws of that jurisdiction.
The provisions set forth on the following pages hereof are a part of this
Contract as fully as if recited over the signatures hereto affixed.
IN WITNESS WHEREOF, The Lincoln National Life Insurance Company has caused
this Contract to be executed
this day of
/s/ ▇. ▇. ▇▇▇▇▇ /s/ ▇▇▇ ▇. ▇▇▇▇▇▇▇
Secretary President
Group Variable Annuity Contract
Active Life Fund in Separate Account and General Account
Individual Allocation
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT
Examined by
FORM GVA-2A-70
TABLE OF CONTENTS
Section Description Page
Article I-DEFINITIONS....................................................................... 3
Article II-ANNUITY PROVISIONS............................................................... 3
2.01 Annuity Commencement Date...................................................... 3
2.02 Notice to Effect Annuity Payments, Election of Optional Annuities.............. 4
2.03 Annuity Payments............................................................... 4
2.04 Optional Annuity Forms......................................................... 4
2.05 Variable and Fixed Annuities................................................... 4
2.06 Allocation of Annuity.......................................................... 5
2.07 Determination of First Payment................................................. 5
2.08 Frequency of Payments.......................................................... 6
Article III-CONTRIBUTIONS................................................................... 7
3.01 Contributions.................................................................. 7
3.02 Application of Contributions................................................... 7
3.03 Inactive Participants.......................................................... 7
3.04 The Active Life Fund........................................................... 7
Article IV-VALUATION........................................................................ 7
4.01 Net Investment Rate and Net Investment Factor.................................. 7
4.02 Accumulation Unit Value........................................................ 8
4.03 Annuity Unit Value............................................................. 8
4.04 Additional General Account Units............................................... 8
4.05 Valuation of Assets............................................................ 8
Article V-DISCONTINUANCE OF CONTRIBUTIONS................................................... 9
5.01 Suspension..................................................................... 9
5.02 Transfer of Active Life Fund................................................... 9
Article VI-DEATH BENEFITS................................................................... 9
6.01 Death Benefits................................................................. 9
Article VII-TERMINATION BENEFITS............................................................ 10
7.01 Termination Benefits........................................................... 10
Article VIII-GENERAL PROVISIONS............................................................. 11
8.01 Certificates................................................................... 11
8.02 General Provisions Governing Annuity Payments.................................. 11
8.03 Payments to Incompetents....................................................... 11
8.04 Assignments.................................................................... 11
8.05 Personnel Data................................................................. 11
8.06 Adjustments on Account of Misstatements........................................ 12
8.07 Modifications of this Contract................................................. 12
8.08 Entire Contract................................................................ 12
8.09 Beneficiary.................................................................... 13
8.10 Relation of this Contract to Separate Account.................................. 13
8.11 Nonparticipating............................................................... 13
8.12 Experience Rating.............................................................. 13
8.13 Voting Rights.................................................................. 13
8.14 Vesting........................................................................ 13
Article IX-THE PLAN......................................................................... 14
9.01 Plan Description............................................................... 14
9.02 Eligibility.................................................................... 14
9.03 Contributions by Contract Owner................................................ 14
9.04 Rate of Contribution........................................................... 14
9.05 Allocation of Contributions.................................................... 14
9.06 Vesting........................................................................ 14
ARTICLE I
Definitions
1.01 PLAN
The Retirement Plan described in Article IX.
1.02 PARTICIPANT
An eligible employee who participates in the Plan.
1.03 CONTRACT ANNIVERSARY
An anniversary of the effective date of this Contract.
1.04 CONTRACT YEAR
Any period of one year commencing with the effective date of this
Contract or with any Contract Anniversary.
1.05 ANNUITANT
A Participant who is receiving Annuity payments hereunder.
1.06 INACTIVE PARTICIPANT
A Participant for whom contributions have ceased prior to his Annuity
Commencement Date, but whose Individual Account is not terminated at such
time.
1.07 ANNUITY
A series of payments purchased under this Contract for a Participant who
elected a Deferred Annuity by application of the dollar value of
accumulation units in his Individual Account, or for a Participant who
elected an Immediate Annuity by application of his net contribution.
1.08 ANNUITY COMMENCEMENT DATE
The date upon which Annuity payments begin under the terms of the Plan.
1.09 SEPARATE ACCOUNT
Those assets of the Company in a segregated investment account, entitled
"Lincoln National Variable Annuity Fund A," established by the Company
for this class of Contracts pursuant to the provisions of applicable law.
1.10 GENERAL ACCOUNT
All assets of the Company other than those in Lincoln National Variable
Annuity Fund A or in other segregated accounts established by the
Company.
1.11 VALUATION DATE
In 1967, March lst, or any date which follows such date by an integral
number of weeks or the final market day in 1967, in any subsequent year
and not later than July 8, 1969, "Valuation Date" means any day which
follows the final-market day in the previous year by an integral number
of weeks or the final market day in such year. After July 8, 1969,
"Valuation Date" means any date upon which the New York Stock Exchange is
open for trading.
1.12 VALUATION PERIOD
The period beginning on the day after any Valuation Date and ending on
the next Valuation Date.
1.13 PARTICIPANT'S INDIVIDUAL ACCOUNT
The sum of the accumulation units credited to a Participant.
1.14 ASSUMED INVESTMENT RATE
The interest rate assumed in determining the First Monthly Payment Rates
for variable annuities.
ARTICLE II
Annuity Provisions
SECTION 2.01--ANNUITY COMMENCEMENT DATE
Such date may be the first day of any calendar month following the
Participant's 50th birthday but may not be later than the Participant's 75th
birthday.
3
SECTION 2.02-NOTICE TO EFFECT ANNUITY PAYMENTS, ELECTION OF OPTIONAL ANNUITIES
When a Participant who elected a Deferred Annuity is eligible to elect
Annuity Payments, the Contract Owner or the Participant shall notify the Company
to effect Annuity Payments for such Participant, and on the date such Annuity
Payments are to commence, the Company shall allocate all accumulation units in
the Participant's Individual Account and apply them to provide an annuity on one
of the Optional Annuity Forms, described in Section 2.04. A Participant who
elected a Deferred Annuity may elect to have his payments made under any of the
Optional Annuity Forms provided written notice of election is received by the
Company at its Home Office at least 30 days prior to his Annuity Commencement
Date. In the absence of written notice of election by the Contract Owner or the
Participant, the Annuity will be a Life Annuity with 120 Payments Guaranteed.
SECTION 2.03-ANNUITY PAYMENTS
The amount of the first Annuity Payment, which is the one due on the
Annuity Commencement Date, will be determined as described in Section 2.07. The
amount of each subsequent Annuity Payment will be determined as described in
Section 2.05.
SECTION 2.04-OPTIONAL ANNUITY FORMS
Option 1--Life Annuity--An annuity payable monthly during the lifetime of
the Annuitant and terminating with the last monthly payment preceding the death
of the Annuitant.
Option 2--Life Annuity with 120, 180 or 240 Monthly Payments Guaranteed--An
annuity payable monthly during the lifetime of the Annuitant with the guarantee
that if, at the death of the Annuitant, payments have been made for less than
120, 180 or 240 months, as elected, annuity payments will be continued during
the remainder of said period to the beneficiary designated by the Participant.
If the beneficiary dies while receiving annuity payments, the present value of
the current dollar amount of the remaining guaranteed number of annuity payments
commuted on the basis of 3 1/2% interest compounded annually for fixed-dollar
annuities and the Assumed Investment Rate elected by the Participant for
variable annuities shall be paid in a lump sum to the estate of the beneficiary.
Option 3--Unit Refund Life Annuity--An annuity payable monthly during the
lifetime of the Annuitant, terminating with the last payment due prior to the
death of the Annuitant, provided that, at such death, the beneficiary will
receive an additional payment of the then dollar value of the number of annuity
units equal to the excess, if any, of (a) over (b) where (a) is the total amount
applied under the option divided by the annuity unit value, as defined in
Section 4.03, at the Annuity Commencement Date and (b) is the product of the
number of annuity units represented by each payment and the number of payments
made.
Option 4--Joint and Last Survivor Annuity-An annuity payable monthly during
the joint lifetime of the Annuitant and a designated second person and
thereafter during the remaining lifetime of the survivor.
The first payment under any of these options will be determined in
accordance with Section 2.07. The Company reserves the right to require proof
satisfactory to it of the age of an Annuitant and any joint annuitant prior to
making the first payment under any of these options. Additional options may be
elected if mutually agreed upon by the Participant and the Company.
SECTION 2.05-VARIABLE AND FIXED ANNUITIES
(a) Variable Annuity--A variable annuity is an annuity with payments
varying in amount in accordance with the net investment result of the
Separate Account. The number of Separate Account annuity units is
determined by dividing the first monthly payment, determined as
described in Section 2.07, by the Separate Account annuity unit value
based on the net investment factor calculated on the Valuation Date
coincident with or next following the Annuity Commencement Date. The
number of annuity units remains fixed during the annuity payment
period.
The dollar amount of the second and subsequent payments is not
predetermined and may change from month to month. The actual amount of
these payments is determined by multiplying the number of Separate
Account annuity units by the Separate Account annuity unit value,
determined as described in Section 4.03, for the valuation period in
which the payment is due.
4
The Company guarantees that the dollar amount of each payment after
the first shall not be affected by variations in mortality experience
from mortality assumptions used to determine the first payment.
(b) Fixed-Dollar Annuity--A fixed-dollar annuity is an annuity with
payments which remain fixed as to dollar amount throughout the payment
period. A number of annuity units is determined when payments
commence, but the value of the General Account annuity unit value is
always $1.00.
The Company may, from time to time, increase the number of General
Account annuity units, to the extent that such units are applicable to
a guaranteed period of benefits, and the value of such additional
units will be payable only during such guaranteed period.
SECTION 2.06--ALLOCATION OF ANNUITY
A Participant may elect to have any portion of his Individual Account
applied to provide either a variable annuity or a fixed annuity or a combination
of both; provided that where a transfer of accumulation units from one Account
to the other is required, written notice of election must be received by the
Company at least 30 days prior to the Annuity Commencement Date and the first
payment provided by each Account must be at least $10.00.
In the absence of any notification by the Contract Owner to the contrary,
when an Annuity is effected for a Participant, who elected a Deferred Annuity,
General Account accumulation units will be applied to provide a fixed-dollar
annuity and Separate Account accumulation units will provide a variable annuity.
SECTION 2.07-DETERMINATION OF FIRST PAYMENT
The Tables contained herein are used to determine the first monthly annuity
payment for Immediate and Deferred Annuities. For Participants who have elected
a Deferred Annuity the Tables show the dollar amount of the first monthly
payment which can be purchased with each $1,000 of value in the Participant's
Individual Account, after deduction of any applicable premium taxes not
previously deducted under the provisions of Section 3.02. The accumulation units
applied to effect an annuity for an Annuitant will be at the accumulation unit
value, as defined in Section 4.02, as of the end of the Valuation Period
containing the fourteenth day immediately preceding the date annuity payments
commence. For Participants who have elected an Immediate Annuity the Tables show
the dollar amount of the first monthly payment which can be purchased with each
$1,000 of net contributions as defined in Section 3.02. Amounts shown in the
Tables are based on the Progressive Annuity Table with interest at the Assumed
Investment Rate of 3 1/2% per annum and assume births in the year 1900. The
Company will permit the Participant to elect an Assumed Investment Rate of 4
1/2, 5% or 6% if state law or regulations permit. Dollar amounts of the first
monthly payments for ages not shown in these Tables and for Assumed Investment
Rates of 4 1/2%, 5% or 6% will be calculated on the same basis as those shown
and may be ob tained from the Company. The amount of each payment depends upon
the sex and adjusted age of the Annuitant. The adjusted age is determined from
the actual age nearest birthday at the time the first payment is due in the
following manner.
Calendar Year of Birth......... Before 1900 1900-1919 1920-1939 1940-1959 1960-1979
Adjusted Age is Actual Age..... plus 1 plus 0 minus 1 minus 2 minus 3
If it would produce a greater first monthly payment, the Company agrees that the
first monthly payment to an Annuitant will be determined on the same mortality
basis, and for a fixed annuity on the same interest basis, used in determining
rates under group variable annuity contracts then being issued for this class of
Annuitant.
5
DOLLAR AMOUNT OF THE FIRST MONTHLY PAYMENT WHICH IS PURCHASED
WITH EACH $1,000 OF PROCEEDS APPLIED
Options 1, 2, and 3 -- Single Life Annuities
-Adjusted Age- ----Guaranteed Payments---- Unit
Male Female None 120 180 240 Refund
50 54 $ 4.74 $4.69 $4.62 $4.52 $4.53
51 55 4.84 4.78 4.70 4.58 4.60
52 56 4.94 4.87 4.78 4.65 4.67
53 57 5.04 4.97 4.87 4.71 4.75
54 58 5.16 5.07 4.95 4.78 4.84
55 59 5.28 5.18 5.04 4.85 4.93
56 60 5.40 5.29 5.13 4.91 5.02
57 61 5.54 5.41 5.23 4.98 5.12
58 62 5.69 5.53 5.33 5.05 5.22
59 63 5.84 5.66 5.43 5.11 5.32
60 64 6.01 5.79 5.53 5.18 5.44
61 65 6.18 5.94 5.63 5.24 5.56
62 66 6.37 6.08 5.74 5.30 5.68
63 67 6.57 6.24 5.84 5.36 5.82
64 68 6.79 6.40 5.95 5.41 5.96
65 69 7.02 6.57 6.05 5.46 6.10
66 70 7.27 6.74 6.15 5.51 6.26
67 71 7.54 6.91 6.26 5.55 6.43
68 72 7.83 7.10 6.35 5.59 6.60
69 73 8.14 7.28 6.45 5.62 6.78
70 74 8.48 7.47 6.54 5.65 6.98
71 75 8.84 7.66 6.62 5.68 7.19
72 76 9.23 7.85 6.70 5.70 7.41
73 77 9.65 8.04 6.77 5.71 7.65
74 78 10.11 8.23 6.83 5.72 7.89
75 79 10.61 8.41 6.88 5.73 8.16
Option 4 -- Joint and Survivor Life Annuity
Adjusted age of -------------Adjusted Age of Annuitant--------------
Secondary Annuitant ▇-▇▇ ▇-▇▇ ▇-▇▇ ▇-▇▇ M-63 M-66 M-71
Male Female F-55 F-60 F-62 F-65 F-67 F-70 F-75
50 54 $4.21 $4.35 $4.40 $4.47 $4.51 $4.57 $4.64
55 59 4.37 4.58 4.66 4.78 4.85 4.94 5.07
57 61 4.43 4.67 4.77 4.90 4.99 5.10 5.26
60 64 4.51 4.80 4.92 5.09 5.20 5.36 5.59
62 66 4.55 4.88 5.01 5.22 5.35 5.54 5.82
65 69 4.62 4.99 5.15 5.39 5.56 5.81 6.19
70 74 4.70 5.14 5.34 5.65 5.88 6.23 6.83
SECTION 2.08-FREQUENCY OF PAYMENTS
Annuity payments under this Contract will be made monthly, except that, if
at any time the payments are or become less than $10.00 each, the Company shall
have the right to change the frequency of payment to intervals as will result in
payments of at least $10.00.
6
ARTICLE III
Contributions
SECTION 3.01-CONTRIBUTIONS
Each contract year the Company shall receive such contributions from the
Contract Owner as are made in accordance with the requirements of the Plan. Such
contributions will be applied by the Company to provide accumulation units or
annuity units for each Participant in accordance with Section 3.02 and the
instructions of the Contract Owner.
SECTION 3.02-APPLICATION OF CONTRIBUTIONS
Deductions as prescribed in Section 9.03 plus any applicable premium taxes
on the contributions shall be made by the Company from each contribution
received. The balance of each contribution remaining after these deductions is
herein called the net contribution. The Company shall apply the net contribution
as of the last day of the valuation period during which the payment is received
at its Home Office to provide accumulation units or annuity units as determined
by the then current value of such units. Such application shall be made
separately for net contributions allocated to the General Account and the
Separate Account.
The number of accumulation units provided in each Account for a Participant
who has elected a Deferred Annuity and credited to the Participant's Individual
Account shall be determined by dividing the net contribution for that Account
applicable to that Participant by the dollar value of one accumulation unit in
that Account. The number of accumulation units so determined shall not be
changed by any subsequent change in the dollar value of accumulation units. The
dollar value of the accumulation unit General Account will increase by a uniform
percentage each valuation period, but the dollar value of the accumulation unit
in the Separate Account may vary from period to period.
The number of Annuity Units provided in each Account for a Participant who
has elected an Immediate Annuity shall be determined as set forth in Section
2.07.
SECTION 3.03--INACTIVE PARTICIPANTS
In the event that contributions for a Participant cease before his Annuity
Commencement Date, the Contract Owner or the Participant will notify the Company
as to the manner in which the then value of the Participant's Individual Account
is to be disbursed in accordance with Section 7.01.
SECTION 3.04--THE ACTIVE LIFE FUND
An Active Life Fund shall be maintained by the Company, with respect to
this Contract, which shall at any time consist of the sum of all Participants'
Individual Accounts. At least once in each contract year after the first, the
Company will inform the Contract Owner of the then dollar value of the Active
Life Fund.
ARTICLE IV
Valuation
SECTION 4.01---NET INVESTMENT RATE AND NET INVESTMENT FACTOR
(a) The General Account net investment rate for each valuation period is
guaranteed, and is equivalent to an investment rate of 3 1/2%
compounded annually.
(b) The Separate Account net investment rate for any valuation period
ending not later than July 8, 1969, is equal to the gross investment
rate expressed in decimal form to six places less a deduction of
.000250, After July 8, 1969, the Separate Account net investment rate
for any Valuation Period is equal to the gross investment rate
expressed in decimal form to eight places less a deduction of the
product of .00003630 and the number of days in the Valuation Period.
Such gross investment rate is equal to (i) the investment income and
capital gains and losses, whether realized or unrealized, on the
assets of the Separate Account less a deduction
7
for any applicable income taxes arising from such income and realized
and unrealized capital gains, divided by (ii) the amount of such
assets at the beginning of the valuation period. Such gross investment
rate may be either positive or negative.
(c) The net investment factor for each Account is the sum of 1.▇▇▇▇▇▇▇▇
plus the net investment rate for the Account.
SECTION 4.02-ACCUMULATION UNIT VALUE
The value of an accumulation unit was established at $1.00 on March 1,
1967. The value of the respective accumulation units in each Account on the last
day of any subsequent valuation period is determined by multiplying such value
on the last day of the immediately preceding valuation period by the net
investment factor for that Account for the current valuation period.
SECTION 4.03-ANNUITY UNIT VALUE
The value of a General Account annuity unit is fixed at $1.00. The value of
a Separate Account Annuity Unit on March 1, 1967, was established at $1.00, and
for subsequent valuation periods ending not later than July 8, 1969, is
determined by multiplying the value of the Separate Account Annuity Unit for the
immediately preceding Valuation Period by the product of (a) the neutralization
factor described below and (b) the net investment factor of the Separate Account
for the second Valuation Period immediately preceding the Valuation Period for
which the value is being calculated. After July 8, 1969, the value of a Separate
Account Annuity Unit for a Valuation Period is determined by multiplying the
value of the Separate Account Annuity Unit for the immediately preceding
Valuation Period by the product of (a) the neutralization factor shown below
raised to a power equal to the number of days in the current Valuation Period
and (b) the net investment factor of the Separate Account for the Valuation
Period containing the fourteenth day immediately preceding the last day of the
current Valuation Period.
Neutralization Factor for the
Specified Assumed Investment Rate
---------------------------------
For Valuation Periods For Valuation Periods
Assumed Investment Ending Not Later Than Ending After
Rate July 8, 1969 July 8, 1969
------------------- --------------------- ---------------------
3 1/2% .999351 .99990575
4 1/2% .999170 .99987941
5% .999080 .99986634
6% .998901 .99984037
SECTION 4.04-ADDITIONAL GENERAL ACCOUNT UNITS
At the end of each valuation period during the first five contract years,
the Company will increase the number of General Account accumulation units by a
number which is equivalent to a 1% per annum additional net investment return.
At the end of each valuation period during the sixth to tenth contract years,
inclusive, the Company will increase the number of such units by a number which
is equivalent to a 1/2% per annum additional net investment return. The Company
may credit additional General Account accumulation units at any time to reflect
credits of investment return over and above those described in this Section or
for any other purpose as determined by the Company.
SECTION 4.05-VALUATION OF ASSETS
The valuation of all assets in the Separate Account shall be determined in
accordance with the provisions of applicable laws, rules and regulations.
8
ARTICLE V
Discontinuance of Contributions
SECTION 5.01-SUSPENSION
This Contract shall be suspended automatically on a Contract Anniversary if
during the Contract Year immediately preceding such anniversary, the Contract
Owner shall have failed to remit to the Company contributions as required in the
Plan or has given written notice at least 90 days in advance of its intention to
discontinue all contributions on such anniversary. The Contract shall also be
suspended automatically on a Contract Anniversary if the Company has given
written notice to the Contract Owner of such suspension because the total number
of Active Participants is fewer than 25.
This Contract shall also be suspended upon written notice by the Contract
Owner to the Company at least 90 days in advance of the effective date of such
suspension.
Effective with such suspension, no further contributions of any kind shall
be accepted by the Company, and each Participant remaining in the Plan shall be
considered an Inactive Participant until his Annuity Commencement Date.
Suspension of the Contract in accordance with this Section 5.01 shall have
no effect upon payments to be made by the Company to any person or persons under
an annuity which shall have commenced prior to the date of suspension.
SECTION 5.02--TRANSFER OF ACTIVE LIFE FUND
This Contract may not be assigned nor may the Active Life Fund be
transferred.
ARTICLE VI
Death Benefits
SECTION 6.01--DEATH BENEFITS
In the event of the death of the Participant prior to the Annuity
Commencement Date, the beneficiary of the Participant will receive a death
benefit in accordance with the option elected by the Participant either at the
time of his original entry into the Plan or by subsequent amendment approved by
and on file with the Company at the time of the Participant's death. If, at the
time of the Participant's death, the standard death benefit is in force, the
beneficiary of the Participant will receive the accumulated value of the
Participants's Individual Account. If the Participant elected to include the
minimum death benefit and it is in force at the time of the participant's death,
in the event that the Participant's death also occurs prior to the Participant's
65th birthday, the beneficiary of the Participant will receive the greater of
the accumulated value of the Participant's Individual Account or 100% of all
contributions made on behalf of the Participant less amounts withdrawn as a
surrender of a portion of the accumulated value of the Participant's Individual
Account.
The value of the death benefit will be determined as of the valuation date
coincident with or next following the date written notice of death is received
in the Home Office of the Company. The death benefit may be taken in one sum or
in accordance with any of the settlement options offered under the Company's
variable annuity contracts then being issued.
9
ARTICLE VII
Termination Benefits
SECTION 7.01-TERMINATION BENEFITS
With the approval of the Contract Owner, upon termination of participation
in the Plan prior to the Annuity Commencement Date, the Participant: (a) if he
is at least 50 years of age, may elect to have his vested interest in the value
of his Individual Account applied to provide Annuity payments; or (b) may elect
to leave his vested interest in the value of h-'s Individual Account in the
Contract, in which case the number of accumulation units in his Individual
Account attributable to the Separate Account will remain fixed, but the value
thereof will vary as described in Article IV, Sections 4.01(b), 4.01(c) and
4.02. The number of accumulation units attributable to the General Account and
the value thereof will be increased as described in Article IV, Sections
4.01(a), 4.01(c), 4.02 and 4.04; or (c) may elect to receive his vested interest
in the value of his Individual Account on the basis of the accumulation unit
value computed as of the valuation date coincident with or next following the
date on which both the written request for surrender and the certificate are
received by the Company; or (d) may elect to convert his vested interest in the
value of his Individual Account to an individual variable annuity contract on
the basis set forth by the Company at the time of such conversion; or (e) if he
becomes an employee of another employer which has a contract of this same type
in force with the Company, may transfer his vested interest in his Individual
Account to such contract.
In the event of the termination of a Participant's participation in the
Plan prior to the Annuity Commencement Date, the nonvested portion of the
accumulated value of the Participant's Individual Account will be distributed by
the Company in accordance with the Plan Document.
10
ARTICLE VIII
General Provisions
SECTION 8.01-CERTIFICATES
The Company shall issue to the Contract Owner for delivery to each
Participant an individual certificate setting forth in substance the benefits to
which each Participant is entitled under this Contract. The word "certificate"
as used herein shall include certificate riders and certificate supplements, if
any. Such certificates shall not constitute a part of this Contract.
SECTION 8.02-GENERAL PROVISIONS GOVERNING ANNUITY PAYMENTS
Whenever any payment hereunder shall be contingent upon the survival of
some person, evidence of such person's survival must be furnished the Company
either by personal endorsement by such person of the check drawn for such
payment or by other evidence satisfactory to the Company.
SECTION 8.03-PAYMENTS TO INCOMPETENTS
If the Company shall receive evidence satisfactory to it that any payee
under this Contract is legally, physically or mentally incompetent to receive
and to give valid release for any payment due under this Contract, any such
payment, or any part thereof, may, unless claim therefor shall have been made to
the Company by a duly appointed executor, administrator, guardian or other legal
representative, be paid by the Company to the spouse, a child, parent or other
blood relative, or to any person, persons or institutions deemed by the Company
to have incurred expense for or on behalf of such payee, and such payment so
made shall be in full settlement of all liability of the Company to the extent
of such payment.
SECTION 8.04-ASSIGNMENTS
No assignment, transfer, pledge, hypothecation, commutation, or
anticipation, and no attempt to assign, transfer, pledge, hypothecate, commute,
or anticipate any benefits or payments under this Contract shall be valid except
insofar as such prohibition against assignment, transfer, pledge, hypothecation,
commutation, or anticipation or attempt may be contrary to the laws of any
state, territory, or country having jurisdiction, and in no event shall any
assignment be binding on the Company until it has been filed with the Company at
its Home Office. Such benefits and payments shall be exempt from the claims of
creditors to the extent permitted by law.
SECTION 8.05-PERSONNEL DATA
The Contract Owner shall furnish any information or evidence which the
Company may reasonably require in order to administer this Contract. If the
Contract Owner cannot furnish any required item of information, the Company may
request the person concerned to furnish such information. The Company shall not
be liable for the fulfillment of any obligations in any way dependent on such
information until it receives such information in form satisfactory to it.
Information furnished to the Company may be corrected for demonstrated
errors therein unless the Company has already acted to its prejudice by relying
on such information. Any records prepared by the Company from information
furnished as described above shall constitute prima facie evidence as to the
truth of the information so recorded.
11
SECTION 8.06--ADJUSTMENTS ON ACCOUNT OF MISSTATEMENTS
If it shall be found that the date of birth, or sex, of any person with
respect to whom an annuity shall have been purchased hereunder, shall have been
misstated, the amount and dates of payment of benefits with respect to such
annuity shall be equitably adjusted. In the absence of an agreement by the
Contract Owner and the Company, the amount of the annuity payable by the Company
shall be that provided by the amount applied to effect such annuity on the basis
of the corrected information without changing the date of the first payment of
such annuity.
The dollar amount of any underpayment made by the Company shall be paid in
full with the next payment due such person or his beneficiary. The dollar amount
of any overpayment made by the Company due to any misstatement shall be deducted
from payments subsequently accruing to such person or his beneficiary under this
Contract.
SECTION 8.07--MODIFICATIONS OF THIS CONTRACT
This Contract may be modified at any time, subject to the laws of the
jurisdiction in which it is delivered, by written agreement between the Contract
Owner and the Company but no such modification shall, without the written
consent of the affected Participants, affect the amount or the terms of any
Annuities purchased prior to the effective date of such modification; except
that any modification of any kind whatsoever in this Contract and the annuities
purchased hereunder which shall be deemed necessary by the Contract Owner to
incorporate any provision which is, or shall be, required or authorized by or
for or shall be necessary to conform the Contract to, or to give the Contract
Owner or Participants the benefit of, any federal or state statute or any rule
or regulation of the United States Treasury Department, may be made effective
with the consent of the Company as of the effective date of this Contract or any
subsequent date without the consent of any Participant or other person affected
thereby.
The Company shall have the right only at the third and each subsequent
Contract Anniversary to modify this Contract in any respect provided that (a)
any such modification will not affect in any way the amount or terms of any
Annuity purchased prior to the effective date of such modification and (b) any
such change shall not affect Sections 2.07, 3.02, 4.01, 4.02, 4.03, 4.04 and
6.01 as they apply to accumulation unit purchases by contributions made on
behalf of Participants who were in the Plan prior to the effective date of such
change to the extent that such contributions in any year are not in excess of
twice the first annual contribution made on behalf of such Participant. The
Company shall give the Contract Owner a written notice of any such modification
at least 90 days prior to the effective date thereof.
The provisions of Sections 2.07, 3.02, 4.01, 4.02, 4.03, 4.04 and 6.01
applicable at the time the portions of contributions in any year which are in
excess of double the first annual contribution are first received by the Company
will apply without modification to such portions while continuously contributed.
Only the President, a Vice President, a Secretary or an Assistant Secretary
of the Company may make a Contract on its behalf; no waiver or modification of
the provisions of this Contract, or of any of the Company's rights shall be
binding on the Company unless it is in writing signed by one of such officers.
The Company shall not be bound by any promise or representation heretofore or
hereafter made by or to any agent or person other than as above.
The consent of any Participant or beneficiary shall not be required for any
change in this Contract, except as indicated in the first paragraph of this
Section 8.07.
SECTION 8.08--ENTIRE CONTRACT
This Contract and the Contract Owner's application therefor, a copy of
which is attached hereto, constitute the entire contract between the parties.
All statements made by. the Contract Owner shall, in the absence of fraud, be
deemed representations and not warranties.
12
SECTION 8.09--BENEFICIARY
In his statement for participation hereunder, each Participant may
designate a beneficiary to whom there shall be paid all sums which under the
terms of this Contract with respect to such Participant become payable to a
beneficiary. The Participant may from time to time change his designation of
beneficiary without notice to or consent of the previously designated
beneficiary by filing written notice thereof on a form furnished by or
satisfactory to the Company, whereupon an acknowledgment of the change will be
furnished the Participant for attachment to his certificate. Such change shall
take effect on the date the Participant signs such written notice of change,
whether or not the Participant is living when the acknowledgment of the change
is furnished, but without prejudice to the Company on account of any payment
made by it before acknowledgment of the change.
If, with respect to any benefits payable hereunder to a beneficiary, a
Participant shall have failed to designate a beneficiary or if no designated
beneficiary shall survive the Participant, payment, if any such payment shall
become due, shall be made to the first surviving class of the following classes
of successive preference beneficiaries: (a) widow or widower; (b) surviving
children; (c) surviving parents; (d) surviving brothers and sisters; (e)
executors or administrators.
SECTION 8.10--RELATION OF THIS CONTRACT TO SEPARATE ACCOUNT
The Company shall have exclusive and absolute ownership and control of the
assets of both its General Account and its Separate Account. The method of
determination by the Company of the value of an accumulation unit and annuity
units will be conclusive upon the Contract Owner, Participant, and any
beneficiary.
SECTION 8.11--NONPARTICIPATING
This Contract does not share in the surplus earnings of the Company.
SECTION 8.12--EXPERIENCE RATING
The Company may apply an experience credit to this contract at the end of
any contract year in the form of an adjustment in the next succeeding year to
the deduction from each gross contribution described in Section 3.02 or in the
form of additional General Account or Separate Account accumulation units
credited to the Participant's Individual Account or in the form of additional
General Account or Separate Account annuity units, or in the form of
modifications in the calculation of annuity unit values, as applicable. The
experience credit may also be applied to future Contract owner contributions.
SECTION 8.13--VOTING RIGHTS
The Contract Owner shall have the right to vote at the meetings of contract
owners and shall cast the votes attributable to the Contract. Votes attributable
to the Contract shall be cast in conformity with applicable law, rules and
regulations.
SECTION 8.14--VESTING
Each Participant will have a vested interest in the value of his Individual
Account as determined by the provisions of the Plan. In the event of a
Participant's termination of active participation in the Plan, any value of his
Individual Account which is not vested will be held by the Company and applied
to future Contract Owner contributions.
13
ARTICLE IX
THE PLAN
SECTION 9.01--PLAN DESCRIPTION
The Plan shall be the (CONTRACT OWNERS NAME) (hereafter, "the Plan").
Amendments to the Plan after the effective date of this Contract will be subject
to review by the Company before acceptance as binding on the Company under this
Contract.
SECTION 9.02--ELIGIBILITY
Eligibility shall be in accordance with the Plan Document.
SECTION 9.03--CONTRIBUTIONS BY CONTRACT OWNER
The Company will make deductions from each contribution received on behalf
of an individual Participant for sales and administrative expenses. For those
Participants electing the standard death benefit, the deductions will total 5
1/4% plus applicable premium taxes. For those Participants who have elected the
minimum death benefit, a deduction of 3/4% will be made for this benefit and the
total deductions will be 6% plus applicable premium taxes.
SECTION 9.04--RATE OF CONTRIBUTION
The rate of contribution shall be monthly unless otherwise specified by the
Contract Owner.
SECTION 9.05--ALLOCATION OF CONTRIBUTIONS
The Contract Owner may specify, on behalf of each Participant, an
allocation of 100%, 90%, 80%, 70%, 60%, or 50% either into the Separate Account
or into the General Account with the balance being allocated into the other
Account provided that no such election shall result in an allocation of less
than $10 per payment to the Separate Account.
SECTION 9.06--VESTING
Vesting shall be in accordance with the Plan Document.
14
THE LINCOLN NATIONAL
LIFE INSURANCE COMPANY
FORT ▇▇▇▇▇, INDIANA
(herein called "the Company")
Group Variable Annuity
Contract Number GVA-
agrees with
(herein called the "Contract Owner")
to pay
at the Home Office of the Company in Fort ▇▇▇▇▇, Indiana, the benefits
herein provided, in accordance with and subject to the provisions of this
Contract.
This Contract is issued in consideration of the application therefor and of
payment by the Contract Owner of contributions as provided herein.
The effective date of this Contract is
This Contract is delivered in and is governed by the laws of
that jurisdiction.
The provisions set forth on the following pages hereof are a part of this
Contract as fully as if recited over the signatures hereto affixed.
IN WITNESS WHEREOF, The Lincoln National Life Insurance Company has caused this
Contract to be executed this day of
▇. ▇. ▇▇▇▇▇ ▇▇▇ ▇. ▇▇▇▇▇▇▇
Secretary President
Group Variable Annuity Contract
Active Life Fund in Separate Account and General Account
Individual Allocation
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT
Examined by
TABLE OF CONTENTS
Section Description Page
Article I-DEFINITIONS...................................................... 3
Article II-ANNUITY PROVISIONS.............................................. 3
2.01 Annuity Commencement Date............................................. 3
2.02 Notice to Effect Annuity Payments, Election of Optional Annuities..... 4
2.03 Annuity Payments...................................................... 4
2.04 Optional Annuity Forms................................................ 4
2.05 Variable and Fixed Annuities.......................................... 4
2.06 Allocation of Annuity................................................. 5
2.07 Determination of First Payment........................................ 5
2.08 Frequency of Payments................................................. 6
Article III-CONTRIBUTIONS.................................................. 7
3.01 Contributions......................................................... 7
3.02 Application of Contributions.......................................... 7
3.03 Inactive Participants................................................. 7
3.04 The Active Life Fund.................................................. 7
Article IV-VALUATION....................................................... 7
4.01 Net Investment Rate and Net Investment Factor......................... 7
4.02 Accumulation Unit Value............................................... 8
4.03 Annuity Unit Value.................................................... 8
4.04 Additional General Account Units...................................... 8
4.05 Valuation of Assets................................................... 8
Article V-DISCONTINUANCE OF CONTRIBUTIONS.................................. 9
5.01 Suspension............................................................ 9
5.02 Transfer of Active Life Fund.......................................... 9
Article VI-DEATH BENEFITS.................................................. 9
6.01 Death Benefits........................................................ 9
Article VII-TERMINATION BENEFITS........................................... 10
7.01 Termination Benefits.................................................. 10
Article VIII-GENERAL PROVISIONS............................................ 11
8.01 Certificates.......................................................... 11
8.02 General Provisions Governing Annuity Payments......................... 11
8.03 Payments to Incompetents.............................................. 11
8.04 Assignments........................................................... 11
8.05 Personnel Data........................................................ 11
8.06 Adjustments on Account of Misstatements............................... 12
8.07 Modifications of this Contract........................................ 12
8.08 Entire Contract....................................................... 12
8.09 Beneficiary........................................................... 13
8.10 Relation of this Contract to Separate Account......................... 13
8.11 Nonparticipating...................................................... 13
8.12 Experience Rating..................................................... 13
8.13 Voting Rights......................................................... 13
8.14 Vesting............................................................... 13
Article IX-THE PLAN......................................................... 14
9.01 Plan Description...................................................... 14
9.02 Eligibility........................................................... 14
9.03 Contributions by Contract Owner....................................... 14
9.04 Rate of Contribution.................................................. 14
9.05 Allocation of Contributions........................................... 14
9.06 Vesting............................................................... 14
ARTICLE I
Definitions
1.01 PLAN
The Retirement Plan described in Article IX.
1.02 PARTICIPANT
An eligible employee who participates in the Plan.
1.03 CONTRACT ANNIVERSARY
An anniversary of the effective date of this Contract.
1.04 CONTRACT YEAR
Any period of one year commencing with the effective date of this
Contract or with any Contract Anniversary.
1.05 ANNUITANT
A Participant who is receiving Annuity payments hereunder.
1.06 INACTIVE PARTICIPANT
A Participant for whom contributions have ceased prior to his Annuity
Commencement Date, but whose Individual Account is not terminated at such
time.
1.07 ANNUITY
A series of payments purchased under this Contract for a Participant who
elected a Deferred Annuity by application of the dollar value of
accumulation units in his Individual Account, or for a Participant who
elected an Immediate Annuity by application of his net contribution.
1.08 ANNUITY COMMENCEMENT DATE
The date upon which Annuity payments begin under the terms of the Plan.
1.09 SEPARATE ACCOUNT
Those assets of the Company in a segregated investment account, entitled
"Lincoln National Variable Annuity Fund A," established by the Company
for this class of Contracts pursuant to the provisions of applicable law.
1.10 GENERAL ACCOUNT
All assets of the Company other than those in Lincoln National Variable
Annuity Fund A or in other segregated accounts established by the
Company.
1.11 VALUATION DATE
In 1967, March 1st, or any date which follows such date by an integral
number of weeks or the final market day in 1967, in any subsequent year
and not later than July 8, 1969, "Valuation Date" means any day which
follows the final-market day in the previous year by an integral number
of weeks or the final market day in such year. After July 8, 1969,
"Valuation Date" means any date upon which the New York Stock Exchange is
open for trading.
1.12 VALUATION PERIOD
The period beginning on the day after any Valuation Date and ending on
the next Valuation Date.
1.13 PARTICIPANT'S INDIVIDUAL ACCOUNT
The sum of the accumulation units credited to a Participant.
1.14 ASSUMED INVESTMENT RATE
The interest rate assumed in determining the First Monthly Payment Rates
for variable annuities.
ARTICLE II
Annuity Provisions
SECTION 2.01-ANNUITY COMMENCEMENT DATE
Such date may be the first day of any calendar month following the
Participant's 50th birthday but may not be later than the Participant's 75th
birthday.
SECTION 2.02-NOTICE TO EFFECT ANNUITY PAYMENTS, ELECTION OF OPTIONAL ANNUITIES
When a Participant who elected a Deferred Annuity is eligible to elect
Annuity Payments, the Contract Owner or the Participant shall notify the Company
to effect Annuity Payments for such Participant, and on the date such Annuity
Payments are to commence, the Company shall allocate all accumulation units in
the Participant's Individual Account and apply them to provide an annuity on one
of the Optional Annuity Forms, described in Section 2.04. A Participant who
elected a Deferred Annuity may elect to have his payments made under any of the
Optional Annuity Forms provided written notice of election is received by the
Company at its Home Office at least 30 days prior to his Annuity Commencement
Date. In the absence of written notice of election by the Contract Owner or the
Participant, the Annuity will be a Life Annuity with 120 Payments Guaranteed.
SECTION 2.03-ANNUITY PAYMENTS
The amount of the first Annuity Payment, which is the one due on the
Annuity Commencement Date, will be determined as described in Section 2.07. The
amount of each subsequent Annuity Payment will be determined as described in
Section 2.05.
SECTION 2.04-OPTIONAL ANNUITY FORMS
Option 1-Life Annuity-An annuity payable monthly during the lifetime of the
Annuitant and terminating with the last monthly payment preceding the death of
the Annuitant.
Option 2--Life Annuity with 120, 180 or 240 Monthly Payments Guaranteed-An
annuity payable monthly during the lifetime of the Annuitant with the guarantee
that if, at the death of the Annuitant, payments have been made for less than
120, 180 or 240 months, as elected, annuity payments will be continued during
the remainder of said period to the beneficiary designated by the Participant.
If the beneficiary dies while receiving annuity payments, the present value of
the current dollar amount of the remaining guaranteed number of annuity payments
commuted on the basis of 3.% interest compounded annually for fixed-dollar
annuities and the Assumed Investment Rate elected by the Participant for
variable annuities shall be paid in a lump sum to the estate of the beneficiary.
Option 3-Unit Refund Life Annuity-An annuity payable monthly during the
lifetime of the Annuitant, terminating with the last payment due prior to the
death of the Annuitant, provided that, at such death, the beneficiary will
receive an additional payment of the then dollar value of the number of annuity
units equal to the excess, if any, of (a) over (b) where (a) is the total amount
applied under the option divided by the annuity unit value, as defined in
Section 4.03, at the Annuity Commencement Date and (b) is the product of the
number of annuity units represented by each payment and the number of payments
made.
Option 4-Joint and Last Survivor Annuity-An annuity payable monthly during
the joint lifetime of the Annuitant and a designated second person and
thereafter during the remaining lifetime of the survivor.
The first payment under any of these options will be determined in
accordance with Section 2.07. The Company reserves the right to require proof
satisfactory to it of the age of an Annuitant and any joint annuitant prior to
making the first payment under any of these options. Additional options may be
elected if mutually agreed upon by the Participant and the Company.
SECTION 2.05-VARIABLE AND FIXED ANNUITIES
(a) Variable Annuity-A variable annuity is an annuity with payments
varying in amount in accordance with the net investment result of the
Separate Account. The number of Separate Account annuity units is
determined by dividing the first monthly payment, determined as
described in Section 2.07, by the Separate Account annuity unit value
based on the net investment factor calculated on the Valuation Date
coincident with or next following the Annuity Commencement Date. The
number of annuity units remains fixed during the annuity payment
period.
The dollar amount of the second and subsequent payments is not
predetermined and may change from month to month. The actual amount of
these payments is determined by multiplying the number of Separate
Account annuity units by the Separate Account annuity unit value,
determined as described in Section 4.03, for the valuation period in
which the payment is due.
The Company guarantees that the dollar amount of each payment after
the first shall not be affected by variations in mortality experience
from mortality assumptions used to determine the first payment.
(b) Fixed-Dollar Annuity-A fixed-dollar annuity is an annuity with
payments which remain fixed as to dollar amount throughout the payment
period. A number of annuity units is determined when payments
commence, but the value of the General Account annuity unit value is
always $1.00.
The Company may, from time to time, increase the number of General
Account annuity units, to the extent that such units are applicable to
a guaranteed period of benefits, and the value of such additional
units will be payable only during such guaranteed period.
SECTION 2.06-ALLOCATION OF ANNUITY
A Participant may elect to have any portion of his Individual Account
applied to provide either a variable annuity or a fixed annuity or a combination
of both; provided that where a transfer of accumulation units from one Account
to the other is required, written notice of election must be received by the
Company at least 30 days prior to the Annuity Commencement Date and the first
payment provided by each Account must be at least $10.00.
In the absence of any notification by the Contract Owner to the contrary,
when an Annuity is effected for a Participant, who elected a Deferred Annuity,
General Account accumulation units will be applied to provide a fixed-dollar
annuity and Separate Account accumulation units will provide a variable annuity.
SECTION 2.07-DETERMINATION OF FIRST PAYMENT
The Tables contained herein are used to determine the first monthly annuity
payment for Immediate and Deferred Annuities. For Participants who have elected
a Deferred Annuity the Tables show the dollar amount of the first monthly
payment which can be purchased with each $1,000 of value in the Participant's
Individual Account, after deduction of any applicable premium taxes not
previously deducted under the provisions of Section 3.02. The accumulation units
applied to effect an annuity for an Annuitant will be at the accumulation unit
value, as defined in Section 4.02, as of the end of the Valuation Period
containing the fourteenth day immediately preceding the date annuity payments
commence. For Participants who have elected an Immediate Annuity the Tables show
the dollar amount of the first monthly payment which can be purchased with each
$1,000 of net contributions as defined in Section 3.02. Amounts shown in the
Tables are based on the Progressive Annuity Table with interest at the Assumed
Investment Rate of 3.% per annum and assume births in the year 1900. The Company
will permit the Participant to elect an Assumed Investment Rate of 4., 5% or 6%
if state law or regulations permit. Dollar amounts of the first monthly payments
for ages not shown in these Tables and for Assumed Investment Rates of 4.%, 5%
or 6% will be calculated on the same basis as those shown and may be obtained
from the Company. The amount of each payment depends upon the sex and adjusted
age of the Annuitant. The adjusted age is determined from the actual age nearest
birthday at the time the first payment is due in the following manner.
Calendar Year of Birth.... Before 1900 1900-1919 1920-1939 1940-1959 1960-1979
Adjusted Age is Actual Age... plus 1 plus 0 minus 1 minus 2 minus 3
If it would produce a greater first monthly payment, the Company agrees
that the first monthly payment to an Annuitant will be determined on the same
mortality basis, and for a fixed annuity on the same interest basis, used in
determining rates under group variable annuity contracts then being issued for
this class of Annuitant.
DOLLAR AMOUNT OF THE FIRST MONTHLY PAYMENT WHICH IS PURCHASED
WITH EACH $1,000 OF PROCEEDS APPLIED
Options 1, 2, and 3 -- Single Life Annuities
--------------------------------------------------------------------------
Adjusted Age Guaranteed Payments Unit
Male Female None 120 180 240 Refund
--------------------------------------------------------------------------
50 54 $ 4.74 $4.69 $4.62 $4.52 $4.53
51 55 4.84 4.78 4.70 4.58 4.60
52 56 4.94 4.87 4.78 4.65 4.67
53 57 5.04 4.97 4.87 4.71 4.75
54 58 5.16 5.07 4.95 4.78 4.84
55 59 5.28 5.18 5.04 4.85 4.93
56 60 5.40 5.29 5.13 4.91 5.02
57 61 5.54 5.41 5.23 4.98 5.12
58 62 5.69 5.53 5.33 5.05 5.22
59 63 5.84 5.66 5.43 5.11 5.32
60 64 6.01 5.79 5.53 5.18 5.44
61 65 6.18 5.94 5.63 5.24 5.56
62 66 6.37 6.08 5.74 5.30 5.68
63 67 6.57 6.24 5.84 5.36 5.82
64 68 6.79 6.40 5.95 5.41 5.96
65 69 7.02 6.57 6.05 5.46 6.10
66 70 7.27 6.74 6.15 5.51 6.26
67 71 7.54 6.91 6.26 5.55 6.43
68 72 7.83 7.10 6.35 5.59 6.60
69 73 8.14 7.28 6.45 5.62 6.78
70 74 8.48 7.47 6.54 5.65 6.98
71 75 8.84 7.66 6.62 5.68 7.19
72 76 9.23 7.85 6.70 5.70 7.41
73 77 9.65 8.04 6.77 5.71 7.65
74 78 10.11 8.23 6.83 5.72 7.89
75 79 10.61 8.41 6.88 5.73 8.16
--------------------------------------------------------------------------
Option 4--Joint and Survivor Life Annuity
Adjusted age of Adjusted Age of Other Annuitant
Secondary Annuitant ▇-▇▇ ▇-▇▇ ▇-▇▇ ▇-▇▇ M-63 M-66 M-71
Male Female F-55 F-60 F-62 F-65 F-67 F-70 F-75
--------------------------------------------------------------------------
50 54 $4.21 $4.35 $4.40 $4.47 $4.51 $4.64 $5.23
55 59 4.37 4.58 4.66 4.78 4.85 5.07 5.44
57 61 4.43 4.67 4.77 4.90 4.99 5.26 5.65
60 64 4.51 4.80 4.92 5.09 5.20 5.59 5.88
62 66 4.55 4.88 5.01 5.22 5.35 5.82 6.12
65 69 4.62 4.99 5.15 5.39 5.56 6.19 6.35
70 74 4.70 5.14 5.34 5.65 5.88 6.83 6.59
--------------------------------------------------------------------------
SECTION 2.08-FREQUENCY OF PAYMENTS
Annuity payments under this Contract will be made monthly, except that, if
at any time the payments are or become less than $10.00 each, the Company shall
have the right to change the frequency of payment to intervals as will result in
payments of at least $10.00.
ARTICLE III
Contributions
SECTION 3.01-CONTRIBUTIONS
Each contract year the Company shall receive such contributions from the
Contract Owner as are made in accordance with the requirements of the Plan. Such
contributions will be applied by the Company to provide accumulation units or
annuity units for each Participant in accordance with Section 3.02 and the
instructions of the Contract Owner.
SECTION 3.02-APPLICATION OF CONTRIBUTIONS
Deductions as prescribed in Section 9.03 plus any applicable premium taxes
on the contributions shall be made by the Company from each contribution
received. The balance of each contribution remaining after these deductions is
herein called the net contribution. The Company shall apply the net contribution
as of the last day of the valuation period during which the payment is received
at its Home Office to provide accumulation units or annuity units as determined
by the then current value of such units. Such application shall be made
separately for net contributions allocated to the General Account and the
Separate Account.
The number of accumulation units provided in each Account for a Participant
who has elected a Deferred Annuity and credited to the Participant's Individual
Account shall be determined by dividing the net contribution for that Account
applicable to that Participant by the dollar value of one accumulation unit in
that Account. The number of accumulation units so determined shall not be
changed by any subsequent change in the dollar value of accumulation units. The
dollar value of the accumulation unit General Account will increase by a uniform
percentage each valuation period, but the dollar value of the accumulation unit
in the Separate Account may vary from period to period.
The number of Annuity Units provided in each Account for a Participant who
has elected an Immediate Annuity shall be determined as set forth in Section
2.07.
SECTION 3.03-INACTIVE PARTICIPANTS
In the event that contributions for a Participant cease before his Annuity
Commencement Date, the Contract Owner or the Participant will notify the
Company as to the manner in which the then value of the Participant's
Individual Account is to be disbursed in accordance with Section 7.01.
SECTION 3.04-THE ACTIVE LIFE FUND
An Active Life Fund shall be maintained by the Company, with respect to
this Contract, which shall at any time consist of the sum of all Participants'
Individual Accounts. At least once in each contract year after the first, the
Company will inform the Contract Owner of the then dollar value of the Active
Life Fund.
ARTICLE IV
Valuation
SECTION 4.01-NET INVESTMENT RATE AND NET INVESTMENT FACTOR
(a) The General Account net investment rate for each valuation period is
guaranteed, and is equivalent to an investment rate of 3.% compounded
annually.
(b) The Separate Account net investment rate for any valuation period
ending not later than July 8, 1969, is equal to the gross investment
rate expressed in decimal form to six places less a deduction of
.000250. After July 8, 1969, the Separate Account net investment rate
for any Valuation Period is equal to the gross investment rate
expressed in decimal form to eight places less a deduction of the
product of .00003630 and the number of days in the Valuation Period.
Such gross investment rate is equal to (i) the investment income and
capital gains and losses, whether realized or unrealized, on the
assets of the Separate Account less a deduction for any applicable
income taxes arising from
such income and realized and unrealized capital gains, divided by (ii)
the amount of such assets at the beginning of the valuation period.
Such gross investment rate may be either positive or negative.
(c) The net investment factor for each Account is the sum of 1.▇▇▇▇▇▇▇▇
plus the net investment rate for the Account.
SECTION 4.02-ACCUMULATION UNIT VALUE
The value of an accumulation unit was established at $1.00 on March 1,
1967. The value of the respective accumulation units in each Account on the last
day of any subsequent valuation period is determined by multiplying such value
on the last day of the immediately preceding valuation period by the net
investment factor for that Account for the current valuation period.
SECTION 4.03-ANNUITY UNIT VALUE
The value of a General Account annuity unit is fixed at $ 1.00. The value
of a Separate Account Annuity Unit on March 1, 1967, was established at $1.00,
and for subsequent valuation periods ending not later than July 8, 1969, is
determined by multiplying the value of the Separate Account Annuity Unit for the
immediately preceding Valuation Period by the product of (a) the neutralization
factor described below and (b) the net investment factor of the Separate Account
for the second Valuation Period immediately preceding the Valuation Period for
which the value is being calculated. After July 8, 1969, the value of a Separate
Account Annuity Unit for a Valuation Period is determined by multiplying the
value of the Separate Account Annuity Unit for the immediately preceding
Valuation Period by the product of (a) the neutralization factor shown below
raised to a power equal to the number of days in the current Valuation Period
and (b) the net investment factor of the Separate Account for the Valuation
Period containing the fourteenth day immediately preceding the last day of the
current Valuation Period.
Neutralization Factor for the
Specified Assumed Investment Rate
---------------------------------
For Valuation Periods For Valuation Periods
Assumed Investment Ending Not Later Than Ending After
Rate July 8, 1969 July 8, 1969
------------------ --------------------- ---------------------
3. .999351 .99990575
4. .999170 .99987941
5% .999080 .99986634
6% .998901 .99984037
SECTION 4.04-ADDITIONAL GENERAL ACCOUNT UNITS
At the end of each valuation period during the first five contract years,
the Company will increase the number of General Account accumulation units by a
number which is equivalent to a 1% per annum additional net investment return.
At the end of each valuation period during the sixth to tenth contract years,
inclusive, the Company will increase the number of such units by a number which
is equivalent to a .% per annum additional net investment return. The Company
may credit additional General Account accumulation units at any time to reflect
credits of investment return over and above those described in this Section or
for any other purpose as determined by the Company.
SECTION 4.05-VALUATION OF ASSETS
The valuation of all assets in the Separate Account shall be determined in
accordance with the provisions of applicable laws, rules and regulations.
ARTICLE V
Discontinuance of Contributions
SECTION 5.01-SUSPENSION
This Contract shall be suspended automatically on a Contract Anniversary if
during the Contract Year immediately preceding such anniversary, the Contract
Owner shall have failed to remit to the Company contributions as required in the
Plan or has given written notice at least 90 days in advance of its intention to
discontinue all contributions on such anniversary. The Contract shall also be
suspended automatically on a Contract Anniversary if the Company has given
written notice to the Contract Owner of such suspension because the total number
of Active Participants is fewer than 25.
This Contract shall also be suspended upon written notice by the Contract
Owner to the Company at least 90 days in advance of the effective date of such
suspension.
Effective with such suspension, no further contributions of any kind shall
be accepted by the Company, and each Participant remaining in the Plan shall be
considered an Inactive Participant until his Annuity Commencement Date.
Suspension of the Contract in accordance with this Section 5.01 shall have
no effect upon payments to be made by the Company to any person or persons under
an annuity which shall have commenced prior to the date of suspension.
SECTION 5.02-TRANSFER OF ACTIVE LIFE FUND
This Contract may not be assigned nor may the Active Life Fund be
transferred.
ARTICLE VI
Death Benefits
SECTION 6.01-DEATH BENEFITS
In the event of the death of the Participant prior to the Annuity
Commencement Date, the beneficiary of the Participant will receive a death
benefit in accordance with the option elected by the Participant either at the
time of his original entry into the Plan or by subsequent amendment approved by
and on file with the Company at the time of the Participant's death. If, at the
time of the Participant's death, the standard death benefit is in force, the
beneficiary of the Participant will receive the accumulated value of the
Participant's Individual Account. If the Participant elected to include the
minimum death benefit and it is in force at the time of the participant's death,
in the event that the Participant's death also occurs prior to the Participant's
65th birthday, the beneficiary of the Participant will receive the greater of
the accumulated value of the Participant's Individual Account or 100% of all
contributions made on behalf of the Participant less amounts withdrawn as a
surrender of a portion of the accumulated value of the Participant's Individual
Account.
The value of the death benefit will be determined as of the valuation date
coincident with or next following the date written notice of death is received
in the Home Office of the Company. The death benefit may be taken in one sum or
in accordance with any of the settlement options offered under the Company's
variable annuity contracts then being issued.
ARTICLE VII
Termination Benefits
SECTION 7.01-TERMINATION BENEFITS
With the approval of the Contract Owner, upon termination of participation
in the Plan prior to the Annuity Commencement Date, the Participant: (a) if he
is at least 50 years of age, may elect to have his vested interest in the value
of his Individual Account applied to provide Annuity payments; or (b) may elect
to leave his vested interest in the value of his Individual Account in the
Contract, in which case the number of accumulation units in his Individual
Account attributable to the Separate Account will remain fixed, but the value
thereof will vary as described in Article IV, Sections 4.01(b), 4.01(c) and
4.02. The number of accumulation units attributable to the General Account and
the value thereof will be increased as described in Article IV, Sections
4.01(a), 4.01(c), 4.02 and 4.04; or (c) may elect to receive his vested interest
in the value of his Individual Account on the basis of the accumulation unit
value computed as of the valuation date coincident with or next following the
date on which both the written request for surrender and the certificate are
received by the Company; or (d) may elect to convert his vested interest in the
value of his Individual Account to an individual variable annuity contract on
the basis set forth by the Company at the time of such conversion; or (e) if he
becomes an employee of another employer which has a contract of this same type
in force with the Company, may transfer his vested interest in his Individual
Account to such contract.
In the event of the termination of a Participant's participation in the
Plan prior to the Annuity Commencement Date, the nonvested portion of the
accumulated value of the Participant's Individual Account will be distributed by
the Company in accordance with the Plan Document.
ARTICLE VIII
General Provisions
SECTION 8.01-CERTIFICATES
The Company shall issue to the Contract Owner for delivery to each
Participant an individual certificate setting forth in substance the benefits to
which each Participant is entitled under this Contract. The word "certificate"
as used herein shall include certificate riders and certificate supplements, if
any. Such certificates shall not constitute a part of this Contract.
SECTION 8.02-GENERAL PROVISIONS GOVERNING ANNUITY PAYMENTS
Whenever any payment hereunder shall be contingent upon the survival of
some person, evidence of such person's survival must be furnished the Company
either by personal endorsement by such person of the check drawn for such
payment or by other evidence satisfactory to the Company.
SECTION 8.03-PAYMENTS TO INCOMPETENTS
If the Company shall receive evidence satisfactory to it that any payee
under this Contract is legally, physically or mentally incompetent to receive
and to give valid release for any payment due under this Contract, any such
payment, or any part thereof, may, unless claim therefor shall have been made to
the Company by a duly appointed executor, administrator, guardian or other legal
representative, be paid by the Company to the spouse, a child, parent or other
blood relative, or to any person, persons or institutions deemed by the Company
to have incurred expense for or on behalf of such payee, and such payment so
made shall be in full settlement of all liability of the Company to the extent
of such payment.
SECTION 8.04-ASSIGNMENTS
No assignment, transfer, pledge, hypothecation, commutation, or
anticipation, and no attempt to assign, transfer, pledge, hypothecate, commute,
or anticipate any benefits or payments under this Contract shall be valid except
insofar as such prohibition against assignment, transfer, pledge, hypothecation,
commutation, or anticipation or attempt may be contrary to the laws of any
state, territory, or country having jurisdiction, and in no event shall any
assignment be binding on the Company until it has been filed with the Company at
its Home Office. Such benefits and payments shall be exempt from the claims of
creditors to the extent permitted by law.
SECTION 8.05-PERSONNEL DATA
The Contract Owner shall furnish any information or evidence which the
Company may reasonably require in order to administer this Contract. If the
Contract Owner cannot furnish any required item of information, the Company may
request the person concerned to furnish such information. The Company shall not
be liable for the fulfillment of any obligations in any way dependent on such
information until it receives such information in form satisfactory to it.
Information furnished to the Company may be corrected for demonstrated
errors therein unless the Company has already acted to its prejudice by relying
on such information. Any records prepared by the Company from information
furnished as described above shall constitute prima facie evidence as to the
truth of the information so recorded.
SECTION 8.06-ADJUSTMENTS ON ACCOUNT OF MISSTATEMENTS
If it shall be found that the date of birth, or sex, of any person with
respect to whom an annuity shall have been purchased hereunder, shall have been
misstated, the amount and dates of payment of benefits with respect to such
annuity shall be equitably adjusted. In the absence of an agreement by the
Contract Owner and the Company, the amount of the annuity payable by the Company
shall be that provided by the amount applied to effect such annuity on the basis
of the corrected information without changing the date of the first payment of
such annuity.
The dollar amount of any underpayment made by the Company shall be paid in
full with the next payment due such person or his beneficiary. The dollar amount
of any overpayment made by the Company due to any misstatement shall be deducted
from payments subsequently accruing to such person or his beneficiary under this
Contract.
SECTION 8.07-MODIFICATIONS OF THIS CONTRACT
This Contract may be modified at any time, subject to the laws of the
jurisdiction in which it is delivered, by written agreement between the Contract
Owner and the Company but no such modification shall, without the written
consent of the affected Participants, affect the amount or the terms of any
Annuities purchased prior to the effective date of such modification, except
that any modification of any kind whatsoever in this Contract and the annuities
purchased hereunder which shall be deemed necessary by the Contract Owner to
incorporate any provision which is, or shall be, required or authorized by or
for or shall be necessary to conform the Contract to, or to give the Contract
Owner or Participants the benefit of, any federal or state statute or any rule
or regulation of the United States Treasury Department, may be made effective
with the consent of the Company as of the effective date of this Contract or any
subsequent date without the consent of any Participant or other person affected
thereby.
The Company shall have the right only at the third and each subsequent
Contract Anniversary to modify this Contract in any respect provided that (a)
any such modification will not affect in any way the amount or terms of any
Annuity purchased prior to the effective date of such modification and (b) any
such change shall not affect Sections 2.07, 3.02, 4.01, 4.02, 4.03, 4.04 and
6.01 as they apply to accumulation unit purchases by contributions made on
behalf of Participants who were in the Plan prior to the effective date of such
change to the extent that such contributions in any year are not in excess of
twice the first annual contribution made on behalf of such Participant. The
Company shall give the Contract Owner a written notice of any such modification
at least 90 days prior to the effective date thereof.
The provisions of Sections 2.07, 3.02, 4.01, 4.02, 4.03, 4.04 and 6.01
applicable at the time the portions of contributions in any year which are in
excess of double the first annual contribution are first received by the Company
will apply without modification to such portions while continuously contributed.
Only the President, a Vice President, a Secretary or an Assistant Secretary
of the Company may make a Contract on its behalf; no waiver or modification of
the provisions of this Contract, or of any of the Company's rights shall be
binding on the Company unless it is in writing signed by one of such officers.
The Company shall not be bound by any promise or representation heretofore or
hereafter made by or to any agent or person other than as above.
The consent of any Participant or beneficiary shall not be required for any
change in this Contract, except as indicated in the first paragraph of this
Section 8.07.
SECTION 8.08-ENTIRE CONTRACT
This Contract and the Contract Owner's application therefor, a copy of
which is attached hereto, constitute the entire contract between the parties.
All statements made by the Contract Owner shall, in the absence of fraud, be
deemed representations and not warranties.
SECTION 8.09-BENEFICIARY
In his statement for participation hereunder, each Participant may
designate a beneficiary to whom there shall be paid all sums which under the
terms of this Contract with respect to such Participant become payable to a
beneficiary. The Participant may from time to time change his designation of
beneficiary without notice to or consent of the previously designated
beneficiary by filing written notice thereof on a form furnished by or
satisfactory to the Company, whereupon an acknowledgment of the change will be
furnished the Participant for attachment to his certificate. Such change shall
take effect on the date the Participant signs such written notice of change,
whether or not the Participant is living when the acknowledgment of the change
is furnished, but without prejudice to the Company on account of any payment
made by it before acknowledgment of the change.
If, with respect to any benefits payable hereunder to a beneficiary, a
Participant shall have failed to designate a beneficiary or if no designated
beneficiary shall survive the Participant, payment, if any such payment shall
become due, shall be made to the first surviving class of the following classes
of successive preference beneficiaries: (a) widow or widower; (b) surviving
children; (c) surviving parents; (d) surviving brothers and sisters; (e)
executors or administrators.
SECTION 8.10-RELATION OF THIS CONTRACT TO SEPARATE ACCOUNT
The Company shall have exclusive and absolute ownership and control of the
assets of both its General Account and its Separate Account. The method of
determination by the Company of the value of an accumulation unit and annuity
units will be conclusive upon the Contract Owner, Participant, and any
beneficiary.
SECTION 8.11-NONPARTICIPATING
This Contract does not share in the surplus earnings of the Company.
SECTION 8.12-EXPERIENCE RATING
The Company may apply an experience credit to this contract at the end of
any contract year in the form of an adjustment in the next succeeding year to
the deduction from each gross contribution described in Section 3.02 or in the
form of additional General Account or Separate Account accumulation units
credited to the Participant's Individual Account or in the form of additional
General Account or Separate Account annuity units, or in the form of
modifications in the calculation of annuity unit values, as applicable. The
experience credit may also be applied to future Contract owner contributions.
SECTION 8.13-VOTING RIGHTS
The Contract Owner shall have the right to vote at the meetings of contract
owners and shall cast the votes attributable to the Contract. Votes attributable
to the Contract shall be cast in conformity with applicable law, rules and
regulations.
SECTION 8.14-VESTING
Each Participant will have a vested interest in the value of his Individual
Account as determined by the provisions of the Plan. In the event of a
Participant's termination of active participation in the Plan, any value of his
Individual Account which is not vested will be held by the Company and applied
to future Contract Owner contributions.
ARTICLE IX
THE PLAN
SECTION 9.01-PLAN DESCRIPTION
The Plan shall be the (CONTRACT OWNERS NAME) (hereafter, "the Plan").
Amendments to the Plan after the effective date of this Contract will be subject
to review by the Company before acceptance as binding on the Company under this
Contract.
SECTION 9.02-ELIGIBILITY
Eligibility shall be in accordance with the Plan Document.
SECTION 9.03-CONTRIBUTIONS BY CONTRACT OWNER
The Company will make deductions from each contribution received on behalf
of an individual Participant for sales and administrative expenses. For those
Participants electing the standard death benefit, the deductions will total 5~%
plus applicable premium taxes. For those Participants who have elected the
minimum death benefit, a deduction of 3/4% will be made for this benefit and the
total deductions will be 6% plus applicable premium taxes.
SECTION 9.04-RATE OF CONTRIBUTION
The rate of contribution shall be monthly unless otherwise specified by the
Contract Owner.
SECTION 9.05-ALLOCATION OF CONTRIBUTIONS
The Contract Owner may specify, on behalf of each Participant, an
allocation of 100%, 90%, 80%, 70%, 60%, or 50% either into the Separate Account
or into the General Account with the balance being allocated into the other
Account provided that no such election shall result in an allocation of less
than $10 per payment to the Separate Account.
SECTION 9.06-VESTING
Vesting shall be in accordance with the Plan Document.