----------------------------------------------------
Ex 99-B. 4.15
Variable Annuity Contract
----------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇
Aetna Life Insurance and Annuity Company,
herein called Aetna, agrees to pay the benefits
stated in the Contract.
-------------------------------------------------------------------------------
Certificate of Group To the Certificate Holder:
Annuity Coverage
Aetna certifies that coverage is in force for
you under the stated Group Annuity Contract and
Certificate numbers. All data shown here is
taken from Aetna records and is based upon
information furnished by you.
This Certificate is a summary of the Group
Annuity Contract provisions. It replaces any
and all prior certificates, riders, or
amendments issued to you under the stated
Contract and Certificate numbers. This
Certificate is for information only and is not
a part of the Contract.
THE VARIABLE FEATURES OF THE GROUP CONTRACT ARE
DESCRIBED IN PARTS III AND IV.
-------------------------------------------------------------------------------
Right to Cancel You may cancel the Account evidenced by this
Certificate within 10 days of receiving it, by
sending a written notice to Aetna at the above
address or to the agent from whom it was purchased.
Aetna will return all payments made for this
Certificate within 7 days after it receives the
notice of cancellation and this Certificate at its
Home Office.
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇ /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
▇▇▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
President Secretary
-------------------------------------------------------------------------------
Contract Holder Group Annuity Contract No.
E. G. Anybroker Specimen
Your Name Certificate No.
▇▇▇▇ ▇▇▇ Specimen
Annuitant Name Type of Plan
▇▇▇▇ ▇▇▇ Jr. ▇▇▇ Rollover
-------------------------------------------------------------------------------
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CERTIFICATE CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE
CMCC-IC(IR)
ADJUSTMENT MAY RESULT IN EITHER AN INCREASE OR DECREASE IN THE CURRENT VALUE.
THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT APPLY TO A GUARANTEED TERM AT THE
TIME OF ITS MATURITY.
CMCC-IC(IR)
2
Specifications
-------------------------------------------------------------------------------
Guaranteed There are guaranteed interest rates for amounts held in
Interest Rate the MG Account (See Certificate Schedule I).
-------------------------------------------------------------------------------
Deductions from the There will be deductions for mortality and expense
Separate Account risks and administrative fees. (See Certificate
Schedule I and II).
-------------------------------------------------------------------------------
Deduction from Purchase The Purchase Payment is subject to a deduction for
Payment premium taxes, if any. (See 3.01.)
-------------------------------------------------------------------------------
Surrender Fee There will be a charge deducted upon surrender.
(See Certificate Schedule I).
3
Contract Schedule I
Accumulation Period
Separate Account
-------------------------------------------------------------------------------
Separate Account: Variable Annuity Account B
Charges to Separate
Account: A daily charge is deducted from any portion of the
Current Value allocated to the Separate Account.
The deduction is the daily equivalent of the
annual effective percentage shown in the following
chart:
Administrative Charge 0.15%
Mortality Risk Charge 0.35%
Expense Risk Charge 0.90%
----
Total Separate Account
Charges 1.40%
Marathon Guaranteed Account (MG Account)
-------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate (effective annual
rate of return): 3.0%.
Separate Account and MG Account
--------------------------------------------------------------------------------
Transfers: An unlimited number of Transfers may be made
during the Accumulation Period. Aetna allows 12 free
Transfers in any calendar year. Thereafter, Aetna
reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee: The Annual Maintenance Fee is $30. If the Account's
Current Value is $50,000 or more on the date the
Maintenance Fee is to be deducted, the Maintenance
Fee is $0.
Surrender Fee: For each surrender, the Surrender Fee will be
determined as follows:
Surrender Fee
Length of Time from Deposit of (as percentage of
Net Purchase Payment (Years) Net Purchase Payment)
Less than 2 years 7%
2 or more but less than 4 years 6%
4 or more but less than 5 years 5%
5 or more but less than 6 years 4%
6 or more but less than 7 years 3%
7 years or more 0%
Systematic Withdrawal The specified payment or specified percentage may not
Option (SWO): be greater than 10% of the Account's Current Value at
time of election.
See 1. GENERAL DEFINITIONS for explanations.
4
Contract Schedule II
Annuity Period
Separate Account
-------------------------------------------------------------------------------
Charges to Separate Account: A daily charge at an annual effective rate of
1.25% for Annuity mortality and expense risks.
The administrative charge is established upon
election of an Annuity option. This charge will
not exceed 0.25%.
Variable Annuity Assumed If a Variable Annuity is chosen, an assumed
Annual Net Return Rate: annual net return rate of 5.0% may be elected.
If 5.0% is not elected, Aetna will use an
assumed annual net return rate of 3.5%.
The assumed annual net return rate factor for
3.5% per year is 0.9999058.
The assumed annual net return rate factor for
5.0% per year is 0.9998663.
If the portion of a Variable Annuity payment for
any Fund is not to decrease, the Annuity return
factor under the Separate Account for that Fund
must be:
(a) 4.75% on an annual basis plus an annual
return of up to 0.25% to offset the
administrative charge set at the time
Annuity payments commence if an assumed
annual net return rate of 3.5% is
chosen; or
(b) 6.25% on an annual basis plus and annual
return of up to 0.25% to offset the
administrative charge set at the time
Annuity payments commence, if an assumed
annual net return rate of 5% is chosen.
Fixed Annuity
-------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate (effective
annual rate of return): 3.0%
See 1. GENERAL DEFINITIONS for explanations.
5
TABLE OF CONTENTS
I. GENERAL DEFINITIONS
--------------------------------------------------------------------------------
Page
1.01 Account.............................................................9
1.02 Accumulation Period.................................................9
1.03 Adjusted Current Value..............................................9
1.04 Annuitant...........................................................9
1.05 Annuity.............................................................9
1.06 Beneficiary.........................................................9
1.07 Certificate Holder..................................................9
1.08 Code................................................................9
1.09 Contract............................................................9
1.10 Contract Holder.....................................................9
1.11 Current Value......................................................10
1.12 Deposit Period.....................................................10
1.13 Fixed Annuity......................................................10
1.14 Fund(s)............................................................10
1.15 General Account....................................................10
1.16 Guaranteed Rates - MG Account......................................10
1.17 Guaranteed Term....................................................10
1.18 Guaranteed Term(s) Groups..........................................11
1.19 Maintenance Fee....................................................11
1.20 Marathon Guaranteed Account (MG Account)...........................11
1.21 Market Value Adjustment (MVA)......................................11
1.22 Matured Term Value.................................................11
1.23 Matured Term Value Transfer........................................11
1.24 Maturity Date......................................................11
1.25 Net Purchase Payment...............................................11
1.26 Nonunitized Separate Account.......................................12
1.27 Purchase Payment...................................................12
1.28 Reinvestment.......................................................12
1.29 Separate Account...................................................12
1.30 Surrender Value....................................................12
1.31 Transfers..........................................................13
1.32 Valuation Period (Period):.........................................13
1.33 Variable Annuity...................................................13
6
II. GENERAL PROVISIONS
--------------------------------------------------------------------------------
Page
2.01 Change of Contract................................................13
2.02 Change of Fund(s).................................................14
2.03 Nonparticipating Contract.........................................14
2.04 Payments and Elections............................................14
2.05 State Laws........................................................15
2.06 Control of Contract...............................................15
2.07 Designation of Beneficiary........................................15
2.08 Misstatements and Adjustments.....................................15
2.09 Incontestability..................................................15
2.10 Grace Period......................................................15
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
-------------------------------------------------------------------------------
3.01 Net Purchase Payment..............................................16
3.02 Certificate Holder's Account......................................16
3.03 Fund(s) Record Units -- Separate Account..........................16
3.04 Net Return Factor(s) -- Separate Account..........................16
3.05 Fund Record Unit Value -- Separate Account........................17
3.06 Market Value Adjustment...........................................17
3.07 Transfer of Current Value from the Funds or MG Account............18
3.08 Reports...........................................................19
3.09 Notice to the Certificate Holder..................................19
3.10 Loans.............................................................19
3.11 Distribution Options..............................................19
3.12 Death Benefit Amount..............................................23
3.13 Death Benefit Options Available to Beneficiary....................24
3.14 Required Distribution to Certificate Holder Beneficiary...........25
3.15 Liquidation of Surrender Value....................................26
3.16 Surrender Fee.....................................................26
3.17 Payment of Surrender Value........................................27
3.18 Reinstatement.....................................................27
3.19 Payment of Adjusted Current Value.................................28
IV. ANNUITY PROVISIONS
-------------------------------------------------------------------------------
4.01 Choices to be Made................................................28
4.02 Annuity Payments to Certificate Holder............................28
4.03 Annuity Payments to Beneficiary...................................29
4.04 Terms of Annuity Options..........................................29
7
Page
4.05 Death of Annuitant Beneficiary...................................30
4.06 Fund(s) Annuity Units -- Separate Account........................31
4.07 Fund(s) Annuity Unit Value -- Separate Account...................31
4.08 Annuity Net Return Factor(s) -- Separate Account.................31
4.09 Annuity Options..................................................32
8
I. GENERAL DEFINITIONS
--------------------------------------------------------------------------------
1.01 Account: A record established for each Certificate
Holder to maintain the value of the Net
Purchase Payment held on his her behalf during
the Accumulation Period.
1.02 Accumulation Period: The period during which the Net Purchase
Payment is applied to an Account to provide
future Annuity payment(s).
1.03 Adjusted Current Value: The Current Value of an Account plus or minus
any aggregate MG Account MVA, if applicable.
(See 1.21)
1.04 Annuitant: The person whose life is measured for purposes
of the guaranteed death benefit and the
duration of Annuity payments under an Account.
The Certificate Holder and Annuitant must be
the same person under an Account.
1.05 Annuity: Payment of an income:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.06 Beneficiary: The individual or estate entitled to receive
any payment from an Account upon the death of
the Annuitant.
1.07 Certificate Holder: A person who purchases an interest in the
Contract as evidenced by a certificate.
1.08 Code: The Internal Revenue Code of 1986, as it may
be amended from time to time.
1.09 Contract: The agreement between Aetna and the Contract
Holder to provide annuities which qualify as
Individual Retirement Annuities under Code
Section 408(b) for the exclusive benefit of the
Certificate Holder(s) or their Beneficiaries.
1.10 Contract Holder: The entity to which the Contract is issued.
The Contract is offered to:
(a) National Association of Securities
Dealers, Inc. ("NASD") member
broker-dealers selected by Aetna, who
have a minimum net capital of $250,000
or more, including broker-dealer
subsidiaries of banks and savings and
loan associations, to provide Individual
Retirement Annuities under Code Section
408 to their customers; and
(b) Employers who sponsor Individual
Retirement Annuity plans under Code
Section 408 for their employees.
9
1.11 Current Value: As of the most recent Valuation Period, the
Net Purchase Payment and any additional amount
deposited pursuant to a 3.12 plus any interest
added to the portion allocated to the MG
Account; and plus or minus the investment
experience of the portion allocated to the
Funds since deposit; less all Maintenance Fees
deducted, any amounts surrendered and any
amounts applied to an Annuity.
1.12 Deposit Period: A calendar week, a calendar month, a calendar
quarter, or any other period of time specified
by Aetna during which the Net Purchase Payment.
Transfers and Reinvestments are accepted into
the MG Account for one or more Guaranteed
Terms. Aetna reserves the right to extend the
Deposit Period.
1.13 Fixed Annuity: An Annuity with payments that do not
vary in amount.
1.14 Fund(s): The open-end management investment companies
(mutual funds) in which the Separate Account
invests.
1.15 General Account: The account holding the assets of Aetna,
other than those assets held in Aetna's
separate accounts.
1.16 Guaranteed Rates -- MG Aetna will declare the interest rate(s)
Account: applicable to a specific Guaranteed Term at
thestart of the Deposit Period for that
Guaranteed Term. The rate(s) are guaranteed by
Aetna for that Deposit Period and the ensuring
Guaranteed Term. The Guaranteed Rates are
annual effective yields. That is, interest is
credited daily at a rate that will produce the
Guaranteed Rate over the period of a year. No
Guaranteed Rate will ever be less than the
Minimum Guaranteed Rate shown on Contract
Schedule I.
For Guaranteed Terms of one year or less, one
Guaranteed Rate is credited for the full
Guaranteed Term. For longer Guaranteed Terms,
an initial Guaranteed Rate is credited from the
date of deposit to the end of a specified
period within the Guaranteed Term. There may be
a different Guaranteed Rate(s) declared for
subsequent specified time intervals throughout
the Guaranteed Term.
1.17 Guaranteed Term: The period of time for which MG Account
Guaranteed Rates are guaranteed on Net Purchase
Payments, Transfers and Reinvestments made into
a current Deposit Period for the MG Account.
Such period begins on the day following the
close of the Deposit Period and ends on the
designated Maturity Date. Guaranteed Terms are
offered at Aetna's discretion for various
lengths of time ranging up to and including ten
years.
During a Deposit Period, Aetna may make
available any number of Guaranteed Terms. The
Certificate Holder may allocate the Net
Purchase Payment and Transfers into any or all
of the available Guaranteed Terms.
10
1.18 Guaranteed Term(s) All MG Account Guaranteed Term(s) with the same
Groups: length of time from the close of the Deposit
Period until the designated Maturity Date.
1.19 Maintenance Fee: The Maintenance Fee (see Contract Schedule I)
will be deducted during the Accumulation Period
from the Current Value on each anniversary of
the date the Account is established and upon
surrender of the entire Account.
1.20 Marathon Guaranteed An accumulation option where Aetna guarantees
Account (MG Account): stipulated rate(s) of interest for specified
periods of time. All assets of Aetna, including
amounts in the Nonunitized Separate Account,
are available to meet the guarantees under the
MG Account.
1.21 Market Value An adjustment to the amount withdrawn or
Adjustment (MVA): transferred from an MG Account Guaranteed Term
prior to the end of that Guaranteed Term. The
adjustment reflects the change in the value of
the investment due to changes in interest rates
since the date of deposit and is computed using
the formula given in 3.06. The adjustment is
expressed as a percentage of each dollar being
withdrawn.
1.22 Matured Term Value: The amount payable on an MG Account Guaranteed
Term's Maturity Date.
1.23 Matured Term During the calendar month following an MG
Value Transfer: Account Maturity Date, the Certificate Holder
may notify Aetna's Home Office in writing to
Transfer or surrender all or part of the
Matured Term Value, plus interest at the new
Guaranteed Rate accrued thereon, from the MG
Account without an MVA. This provision only
applies to the first such written request
received from the Certificate Holder during
this period for any Matured Term Value.
1.24 Maturity Date: The last day of an MG Account Guaranteed Term.
1.25 Net Purchase Payment: The Purchase Payment less premium taxes,
as applicable.
1.26 Nonunitized Separate A separate account set up by Aetna under
Account: Title 38, Section 38a-433, of the Connecticut
General Statutes, that holds assets for MG
Account Terms. There are no discrete units for
this Account. The Certificate Holder does not
participate in the investment gain or loss from
the assets held in the Nonunitized Separate
Account. Such gain or loss is borne entirely by
Aetna. These assets may be chargeable with
liabilities arising out of any other business
of Aetna.
11
1.27 Purchase Payment: The cash payment accepted by Aetna at its Home
Office which is a rollover amount under Code
Section 402(c), 403(a)(4), 403(b)(8), or
408(d)(3). Aetna may require verification that
a rollover amount qualifies as such under the
Code. Payments to Simplified Employee Pension
plans and annual deductible and nondeductible
contributions to Individual Retirement
Annuities are not accepted under the Contract.
Aetna reserves the right to refuse to accept
any Purchase Payment at any time for any
reason. No advance notice will be given to the
Contract Holder or Certificate Holder.
1.28 Reinvestment: Aetna will mail a notice to the Certificate
Holder at least 18 calendar days before a
Guaranteed Term's Maturity Date. This notice
will contain the Terms available during current
Deposit Periods with their Guaranteed Rate(s)
and projected Matured Term Value. If no
specific direction is given by the Certificate
Holder prior to the Maturity Date, each Matured
Term Value will be reinvested in the current
Deposit Period for a Guaranteed Term of the
same duration. If a Guaranteed Term of the same
duration is unavailable, each Matured Term
Value will automatically be reinvested in the
current Deposit Period for the next shortest
Guaranteed Term available. If no shorter
Guaranteed Term is available, the next longer
Guaranteed Term will be used. Aetna will mail a
confirmation statement to the Certificate
Holder the next business day after the Maturity
Date. This notice will state the Guaranteed
Term and Guaranteed Rate(s) which will apply to
the reinvested Matured Term Value.
1.29 Separate Account: A separate account that buys and holds shares
of the Fund(s). Income, gains or losses,
realized or unrealized, are credited or charged
to the Separate Account without regard to other
income, gains or losses of Aetna. Aetna owns
the assets held in the Separate Account and is
not a trustee as to such amounts. This Separate
Account generally is not guaranteed and is held
at market value. The assets of the Separate
Account, to the extent of reserves and other
contract liabilities of the Account, shall not
be charged with other Aetna liabilities.
1.30 Surrender Value: The amount payable by Aetna upon the surrender
of any portion of an Account.
1.31 Transfers: The movement of invested amounts among the
available Fund(s) and the MG Account under this
Contract during the Accumulation Period.
1.32 Valuation Period The period of time for which a Fund determines
(Period): its net asset value, usually from 4:15 p.m.
Eastern time each day the New York Stock
Exchange is open until 4:15 p.m. the next such
day, or such other day that one or more of the
Funds determines its net asset value.
12
1.33 Variable Annuity: An Annuity with payments that vary with the
net investment results of one or more Funds
under the Separate Account.
II. GENERAL PROVISIONS
--------------------------------------------------------------------------------
2.01 Change of Contract: Only an authorized officer of Aetna may change
the terms of the Contract. Aetna will notify
the Contract Holder in writing at least 30 days
before the effective date of any change. Any
change will not affect the amount or terms of
any Annuity which begins before the change.
Aetna reserves the right to refuse to accept
any Purchase Payment at any time for any
reason. No advance notice will be given to the
Contract Holder or Certificate Holder.
Aetna may make any change that affects the MG
Account Market Value Adjustment (3.06) with at
least 30 days advance written notice to the
Contract Holder and the Certificate Holder. Any
such change shall become effective for any new
Term and will apply to all present and future
Accounts.
Aetna reserves the right to change the terms of
the distribution options (3.11) for future
elections and discontinue the availability of
these options after proper notification.
Any change that affects any of the following
under the Contract will not apply to Accounts
in existence before the effective date of the
change:
(a) Net Purchase Payment (1.25)
(b) MG Account Guaranteed Rate (1.16)
(c) Net Return Factor(s) -- Separate
Account (3.04)
(d) Current Value (1.11)
(e) Surrender Value (1.30)
(f) Fund(s) Annuity Unit Value -- Separate
Account (4.05)
(g) Annuity options (4.09)
(h) Fixed Annuity Interest Rates (4.01)
(i) Transfers (1.31).
Any change that affects the Annuity options and
the tables for the options may be made:
(a) No earlier than 12 months after the
effective date of the Contract; and
(b) No earlier than 12 months after the
effective date of any prior change.
13
2.01 Change of Contract Any Account established on or after the
(Cont'd): effective date of any change will be subject to
the change. If the Contract Holder does not
agree to any change under this provision, no
new Accounts may be established under the
Contract. The Contract may also be changed as
deemed necessary by Aetna to comply with
federal or state law.
2.02 Change of Fund(s): Aetna, or the Separate Account, may:
(a) Change the Fund(s) which may be invested in
by the Separate Account; and
(b) Replace the shares of any Fund(s) held in
the Separate Account with shares of any
other Fund(s).
Changes must be:
(a) Approved by a majority vote in the
Separate Account with respect to the
Fund(s) whose shares are to be replaced;
or
(b) Deemed necessary by Aetna under the
Investment Company Act of 1940; or
(c) Deemed necessary by Aetna to accomplish
the purpose of the Separate Account.
Aetna will notify the Contract Holder and the
Certificate Holder of any change.
2.03 Nonparticipating The Contract Holder, Certificate Holders, or
Contract: Beneficiaries will not have a right to share
in the earnings of Aetna.
2.04 Payments and While the Certificate Holder is living, Aetna
Elections: will pay the Certificate Holder any Annuity
payments as and when due. After the Certificate
Holder's death, any Annuity payments required
to be made will be paid in accordance with
4.05. Aetna will determine other payments and
or elections as of the end of the Valuation
Period in which the request is received at its
Home Office. Such payments will be made within
7 calendar days of receipt at its Home Office
of a written claim for payment which is in good
order, except as provided in 3.17.
2.05 State Laws: The Contract and the certificates comply with
the laws of the state in which they are
delivered. Any surrender, death, or Annuity
payments are equal to or greater than the
minimum required by such laws. Annuity tables
for legal reserve valuation shall be as
required by state law. Such tables may be
different from Annuity tables used to determine
Annuity payments.
2.06 Control of Contract: The Contract is between the Contract Holder and
Aetna. The Contract Holder has title to the
Contract. Contract Holder rights are limited to
accepting or rejecting Contract modifications.
14
2.06 Control of Contract Each Certificate Holder has a nonforfeitable
(Cont'd): right to all amounts held in his or her
Account. Each Certificate Holder may make any
choices allowed by this Certificate for his or
her Account. Choices made under this
Certificate must be in writing. Until receipt
of such choices at Aetna's Home Office, Aetna
may rely on any previous choices made.
The Contract is not subject to the claims of
any creditors of the Contract Holder or the
Certificate Holder except to the extent
permitted by law.
The Account may not be attached, alienated, or
subject to the claims of any creditors of the
Certificate Holder except to the extent
permitted by law. The Account is
nontransferable by the Certificate Holder. The
Certificate Holder may not assign, transfer,
pledge or use as collateral his or her rights
under the Contract.
2.07 Designation of Each Certificate Holder shall name his or her
Beneficiary: Beneficiary. The Beneficiary may be changed at
any time. Changes to a Beneficiary must be
submitted to Aetna's Home Office in writing and
will not be effective until accepted by Aetna.
2.08 Misstatements and If Aetna finds the age of any Annuitant to be
Adjustments: misstated, the correct facts will be used to
adjust payments.
2.09 Incontestability: Aetna cannot cancel the Contract because of any
error of fact on the application. Aetna cannot
cancel an Account because of any error of fact
on the enrollment form.
2.10 Grace Period: The Contract and the Account evidenced by this
certificate will remain in effect except as
provided in the Payment of Adjusted Current
Value provision (see 3.19).
III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS
--------------------------------------------------------------------------------
3.01 Net Purchase This amount is the actual Purchase Payment less
Payment: any premium tax. Aetna will generally deduct
the premium tax when Annuity benefits are
elected (see Part IV). If Aetna determines that
under applicable state law, it must pay a
premium tax when the Purchase Payment is
received or at any other time, it will deduct
the tax at that time.
The Net Purchase Payment will be credited
among:
(a) The current Deposit Period(s) for
Guaranteed Terms under the MG Account; and
(b) The Fund(s) in which the Separate Account
invests.
15
3.01 Net Purchase The Certificate Holder shall tell Aetna the
Payment (Cont'd): allocation percentage to be applied to the
current Deposit Period for each of the
available Guaranteed Terms in the MG Account
and or each Fund.
3.02 Certificate Holder's Aetna will maintain an Account for each
Account: Certificate Holder.
Aetna will declare from time to time the
acceptability and the minimum amount for a
Purchase Payment.
3.03 Fund(s) Record The portion of the Net Purchase Payment applied
Units -- Separate to each Fund under the Separate Account will
Account: determine the number of Fund record units for
that Fund. This number is equal to the portion
of the Net Purchase Payment applied to each
Fund divided by the Fund record unit value (see
3.05) for the Valuation Period in which the
Purchase Payment is received in good order at
Aetna's Home Office.
3.04 Net Return Factor(s) The net return factor(s) are used to compute
-- Separate Account: all Separate Account record units for any Fund.
The net return factor(s) for each Fund is equal
to 1.0000000 plus the net return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by
the Separate Account at the end of the
Valuation Period; minus
(b) The value of the shares of the Fund held by
the Separate Account at the start of the
Valuation Period; plus or minus
(c) Taxes (or reserves for taxes) on the
Separate Account (if any); divided by
(d) The total value of the Fund(s) record units
and Fund(s) Annuity units of the Separate
Account at the start of the Valuation
Period; minus
(e) A daily Separate Account charge at an
annual rate as shown on Contract Schedule I
for mortality and expense risks, which may
include profit; and a daily administrative
charge.
A net return rate may be more or less than 0%.
The value of a share of the Fund is equal to
the net assets of the Fund divided by the
number of shares outstanding.
3.05 Fund Record Unit A Fund record unit value is computed by
Value -- Separate multiplying the Net Return Factors for the
Account: current Valuation Period by the Fund record
unit value for the previous Period. The dollar
value of a Fund record units, Separate Account
assets, and Variable Annuity payments may go up
or down due to investment gain or loss.
16
3.06 Market Value There will be an MVA for a withdrawal from the
Adjustment: MG Account before the end of a Guaranteed Term
when the withdrawal is due to:
(a) A Transfer; except as specified in MG
Account Matured Term Value Transfer;
(b) A full or partial surrender, including a
10% free withdrawal under 3.16; or
(c) An election of Annuity option 2 (see 4.09).
Full and partial surrenders and Transfers made
within six months after the date of the
Annuitant's death will be the greater of:
(a) The aggregate MVA amount which is the sum
of all market value adjusted amounts
calculated due to a withdrawal of amounts.
This total may be greater or less than the
Current Value of those amounts; or
(b) The applicable portion of the Current Value
in the MG Account.
After the six-month period, the surrender or
Transfer will be the aggregate MVA amount,
which may be greater or less than the Current
Value of those amounts.
The greater of the aggregate MVA amount or the
applicable portion of the Current Value applies
to amounts withdrawn from the MG Account on
account of an election of Annuity Options 3 or
4 (see 4.09).
Market value adjusted amounts will be equal to
the amount withdrawn multiplied by the
following ratio:
x
---
365
(1 + i)
-------------
x
---
365
(1 + j)
Where:
i is the Deposit Period Yield
j is the Current Yield
x is the number of days remaining (computed
from Wednesday of the week of withdrawal) in
the Guaranteed Term.
17
3.06 Market Value The Deposit Period Yield will be determined as
Adjustment follows:
(Cont'd):
(a) At the close of the last business day of
each week of the Deposit Period, a yield
will be computed as the average of the
yields on that day of U.S. Treasury Notes
which mature in the last three months of
the Guaranteed Term.
(b) The Deposit Period Yield is the average of
those yields for the Deposit Period. If
withdrawal is made before the close of the
Deposit Period, it is the average of those
yields on each week preceding withdrawal.
The Current Yield is the average of the yields
on the last business day of the week preceding
withdrawals on the same U.S. Treasury Notes
included in the Deposit Period Yield.
In the event that no U.S. Treasury Notes which
mature in the last three months of the
Guaranteed Term exist, Aetna reserves the right
to use the U.S. Treasury Notes that mature in
the following quarter.
3.07 Transfer of Current Before an Annuity option is elected, all or any
Value from the portion of the Adjusted Current Value of the
Funds or MG Certificate Holder's Account may be transferred
Account: from any Fund or Guaranteed Term of the MG
Account:
(a) To any other Fund; or
(b) To any Guaranteed Term of the MG Account
available in the current Deposit Period.
Transfer requests can be submitted as a
percentage or as a dollar amount. Aetna may
establish a minimum transfer amount. Within a
Guaranteed Term Group, the amount to be
surrendered or transferred will be withdrawn
first from the oldest Deposit Period, then from
the next oldest, and so on until the amount
requested is satisfied.
The Certificate Holder may make an unlimited
number of Transfers during the Accumulation
Period. The number of free Transfers allowed by
Aetna is shown on Contract Schedule I.
Additional Transfers may be subject to a
Transfer fee as shown on Contract Schedule I.
Transfers from the MG Account of a Matured Term
Value on or within one calendar month of a
Term's Maturity Date do not count against the
annual Transfer limit.
Amounts applied to Guaranteed Terms of the MG
Account may not be transferred to the Funds or
to another Guaranteed Term during the Deposit
Period or for 90 days after the close of the
Deposit Period except for Matured Term Value(s)
during the calendar month following the Term's
Maturity Date.
18
3.07 Transfer of Current Transfers from Guaranteed Terms of the MG
Value from the Account are subject to the MVA provisions of
Funds or MG 3.06.
Account (Cont'd):
3.08 Reports: Aetna, as issuer of the Contract, will make any
reports required of it by federal law. Aetna
will furnish annual calendar year reports
concerning the status of the annuity.
3.09 Notice to the The Certificate Holder will receive quarterly
Certificate Holder: statements from Aetna of:
(a) The value of any amounts held in:
(1) The MG Account; and
(2) The Fund(s) under the Separate Account.
(b) The number of any Fund(s) record units; and
(c) The Fund(s) record unit value.
Such number or values will be as of a specific
date no more than 60 days before the date of
the notice.
3.10 Loans: Loans are not available under the Contract.
3.11 Distribution The following distribution options may be
Options: elected by the Certificate Holder during the
Accumulation Period.
(a) Estate Conservation Option (ECO) - A
distribution option under which a portion
of the Account's Current Value will
automatically be surrendered and
distributed each year. ECO payments will be
calculated based on the Account's full
Current Value. The distributed amount will
be withdrawn pro rata from each investment
option used under the Account. A Surrender
Fee will not be deducted from any portion
of the Adjusted Current Value which is paid
as a distribution under ECO. Certificate
Holders should consult their tax adviser
prior to requesting this distribution
option. Aetna will not be responsible for
any adverse tax consequences due to
receiving ECO payments.
(1) Amount of Distribution: Each year that
ECO is in effect, Aetna will calculate
and distribute an amount equal to the
minimum required distribution under the
Code. The annual distribution will be
determined by dividing the Current
Value as of December 31 of the year
prior to the payment year, by a life
expectancy factor.
19
3.11 Distribution Options The Certificate Holder, or spouse
(Cont'd.): Beneficiary if ECO is elected after the
Certificate Holder's death, shall elect
either single life expectancy or joint
life expectancy. Life expectancy is
computed by use of the expected return
multiples in Tables V and VI of section
1.72-9 of the Income Tax Regulations.
Joint life expectancy can only be
elected based on the joint life
expectancy of the Certificate Holder
and his or her Beneficiary. If the
Certificate Holder makes any changes in
the Beneficiary designation under the
Certificate, ECO distributions after
the change will be recalculated as
required by IRS regulations.
Life expectancies shall be recalculated
annually. If the joint life expectancy
is elected with a non-spouse
Beneficiary, the life expectancy of the
non-spouse Beneficiary may not be
recalculated. Instead, the life
expectancy will be calculated using the
attained age of the Beneficiary during
the calendar year in which the
Certificate Holder attains age 70-1/2,
and payments for subsequent years shall
be recalculated based on such life
expectancy reduced by one for each
calendar year which has elapsed since
the calendar year life expectancy was
first calculated.
If joint life expectancy is elected
with a spouse Beneficiary, at the death
of either, the payments can continue
and will be calculated based solely on
the survivor's life expectancy. If
joint life expectancy is elected with a
non-spouse Beneficiary and the
non-spouse Beneficiary dies first,
payments will continue based on the
joint life expectancy.
If a single life expectancy is elected
and the Certificate Holder dies, or if
a joint life expectancy is elected and
the survivor dies, the death benefits
determined under Section 3.12 will be
paid to the Beneficiary in a lump sum
not later than December 31 following
the year of death.
(2) Minimum Initial Current Value: At its
discretion, Aetna may require a minimum
initial Account Current Value for
election of this option. If after
election of this option, the Current
Value is insufficient to make a
scheduled ECO payment, Aetna will
distribute the entire Account balance.
20
3.11 Distribution Options (3) Date of Distribution: Distribution will
(Cont'd.): be made annually on the 15th of any
month or such other date Aetna may
designate or allow. The Certificate
Holder shall specify an initial
distribution month, not earlier than
the calendar year in which the
Certificate Holder attains age 70-1/2,
or such later time when distributions
must commence as specified under the
Code, whichever is appropriate. For a
spouse Beneficiary, the earliest date
is the date of the Certificate Holder's
death.
(4) Election and Revocation: ECO may be
elected by the Certificate Holder, or
spouse Beneficiary if elected after the
Certificate Holder's death, by
submitting a written request to Aetna
at its Home Office.
Once elected, this option may be
revoked by the Certificate Holder by
submitting a written request to Aetna
at its Home Office. Any revocation will
apply only to amounts not yet paid. The
Certificate Holder assumes
responsibility for compliance with
minimum distribution rules under the
Code. ECO may be elected only once by
the Certificate Holder or by a spouse
Beneficiary.
(b) Systematic Withdrawal Option (SWO): A
distribution option under which a portion
of the Account's Current Value will
automatically be surrendered and
distributed each year. SWO payments will be
calculated based on the Account's full
Current Value. The distributed amount will
be withdrawn pro rata from each investment
option used under the Contract. A Surrender
Fee will not be deducted from any portion
of the Adjusted Current Value which is paid
as a distribution under SWO. Certificate
Holders should consult their tax adviser
prior to requesting this distribution
option. Aetna will not be responsible for
any adverse tax consequences due to
receiving SWO payments.
(1) Amount of Distribution: The Certificate
Holder may elect one of the three
payment methods described below.
(i) Specified Payment: Payments of a
designated dollar amount. The
annual amount may not be greater
than the percentage of the
Current Value at time of election
as shown on Contract Schedule I.
This annual dollar amount shall
remain constant. At its
discretion, Aetna may require a
minimum initial payment amount;
21
3.11 Distribution Options (ii) Specified Period: Payments made
Cont'd.): over a period of time of at least
10 years. The maximum specified
period shall be determined under
the Code minimum distribution
rules. The annual amount paid
each year is calculated by
dividing the Account Current
Value as of December 31 of the
prior year by the number of
payment years remaining; or
(iii) Specified Percentage: Payment of
a designated percentage which
cannot be greater than the
percentage of the Current Value
at the time of election as shown
on Contract Schedule I. The
percentage may be changed by
written request. Aetna reserves
the right to limit the number of
times the percentage may be
changed. The annual amount is
calculated by multiplying the
Current Value as of December 31
of the year prior to the payment
year by the designated
percentage.
Payments will be made until the
year the Certificate Holder
attains age 70-1/2 or, if elected
by the Beneficiary, the year the
Certificate Holder would have
attained age 70-1/2.
Under both the Specified Payment and
Specified Period payment methods, a
higher amount shall be paid in any year
if required under the Code minimum
distribution rules. For purposes of
this determination, life expectancy for
the initial distribution year shall be
calculated based on single life
expectancy Table V of section 1.72-9 of
the Income Tax Regulations. With each
subsequent year, the life expectancy
will be the life expectancy for the
previous year reduced by one.
Payments upon the Certificate Holder's
death will be made to the Beneficiary
in the manner described in 3.13.
(2) Minimum Initial Current Value: At its
discretion, Aetna may require a minimum
initial Current Value for election of
this option. If after election of this
option the Current Value is
insufficient to make a scheduled SWO
payment, Aetna will distribute the
entire Account balance.
22
3.11 Distribution Options (3) Date of Distribution: The Certificate
(Cont'd.): Holder shall specify the initial
distribution date. The earliest date
for distribution is the first date on
which the Certificate Holder attains
age 59-1/2. As elected by the
Certificate Holder, SWO payments will
be made on a monthly, quarterly,
semi-annual or annual basis. If SWO
payments are made more frequently than
annually, the designated annual amount
is divided by the number of payments
due each year. Subsequent distributions
will be made on the 15th of any month
or such other date Aetna may designate
or allow.
(4) Election and Revocation: SWO may be
elected by the Certificate Holder, or
spouse Beneficiary if elected after the
Certificate Holder's death, by
submitting a completed and signed
election form to Aetna's Home Office.
Once elected, this option may be
revoked by the Certificate Holder or
spouse Beneficiary if elected after the
Certificate Holder's death, by
submitting a written request to Aetna
at its Home Office. Any revocation will
apply only to amounts not yet paid. SWO
may be elected only once by the
Certificate Holder or by the spouse
Beneficiary.
3.12 Death Benefit If the Certificate Holder/Annuitant dies before
Amount: Annuity payments start, the Beneficiary is
entitled to a death benefit under the Account.
The claim date is the date when proof of death
and the beneficiary's claim are received in
good order at Aetna's Home Office. The amount
of the death benefit is determined as follows:
(a) Death of Certificate Holder/Annuitant less
than 75 years of age: The guaranteed death
benefit is the greatest of:
(1) The Net Purchase Payment made to the
Account minus the sum of all amounts
surrendered, applied to an Annuity, or
deducted from the Account;
(2) The step up value as of the date of
death minus the total of all partial
surrenders, amounts applied to an
Annuity and deductions made from the
Account since determination of the step
up value. The step up value is the
Current Value on the most recent
seventh year anniversary of the date
the Net Purchase Payment is applied to
the Account:
(3) The Account's Current Value as of the
date of death.
23
3.12 Death Benefit The excess, if any, of the guaranteed death
Amount (Cont'd): benefit value over the Account's Current
Value is determined as of the date of
death. Any excess amount will be deposited
to the Account and allocated to Aetna
Variable Encore Fund as of the claim date.
The Current Value on the claim date plus
any excess amount deposited becomes the
Account's Current Value.
(b) Death 75 or the A date. of Certificate
Holder/Annuitant age greater: The death
benefit amount is ccount Current Value on
the claim
3.13 Death Benefit Prior to any election, or until amounts must be
Options available to otherwise distributed under this section, the
Beneficiary: Current Value of the Account will be retained
in the Account. The Beneficiary has the right
under the Account to allocate or reallocate any
amount to any of the available investment
options (subject to an MVA, as applicable). The
following options are available to the
beneficiary:
(a) If the Beneficiary is the Certificate
Holder's surviving spouse, the surviving
spouse may exercise all rights under the
Contract and continue in the Accumulation
Period, or may elect (1), (2), or (3)
below. Under the Code, distributions from
the Account are not required until December
31st of the year in which the original
Certificate Holder would have attained age
70-1/2. The Beneficiary may elect to:
(1) Apply some or all of the Adjusted
Current Value of the Account to Annuity
option 2, 3 or 4 (see 4.09); or
(2) Apply some or all of the Adjusted
Current Value of the Account to Annuity
option 1 (see 4.09); or
(3) Receive, at any time, a lump sum
payment equal to the Adjusted Current
Value of the Account.
If ECO is in effect on the Certificate
Holder's date of death, the surviving
spouse can elect to continue receiving ECO
payments if a joint life expectancy was
chosen. Otherwise, the surviving spouse
must receive a lump sum payment equal to
the Adjusted Current Value.
If SWO is in effect and the Certificate
Holder dies before the required beginning
date for minimum distributions (see 3.14).
SWO payments will cease and the surviving
spouse may claim the death benefit in
accordance with the terms of this section.
24
3.13 Death Benefit If SWO is in effect and the Certificate
Options available to Holder dies after the required beginning
Beneficiary date for minimum distributions, the
(Cont'd.): surviving spouse can elect to continue to
receive the SWO payments. Otherwise, the
surviving spouse must elect to receive a
lump sum payment equal to the Adjusted
Current Value.
(b) If the Beneficiary is other than the
Certificate Holder's surviving spouse, then
options (1), (2), or (3) under (a) above
apply. Any portion of the Adjusted Current
Value of the Account that is not applied to
Annuity option 2, 3 or 4 by December 31st
of the year following the year of the
Certificate Holder's death must be
distributed by December 31st of the year
containing the fifth anniversary of the
Certificate Holder's date of death.
If ECO or SWO is in effect on the
Certificate Holder's date of death, the
Beneficiary must receive an automatic and
immediate lump sum payment equal to the
Adjusted Current Value.
(c) If no Beneficiary exists, a lump sum
payment equal to the Adjusted Current Value
will be made to the Certificate Holder's
estate.
3.14 Required (a) Certificate Holder: The entire interest of
Distribution to the Certificate Holder will be distributed
Certificate Holder/ or begin to be distributed no later than
Beneficiary: April 1 following the calendar year in
which the Certificate Holder attains age
70-1/2 (required beginning date), over (a)
the life of the Certificate Holder, or the
lives of the Certificate Holder and his or
her designated Beneficiary, or (b) a period
certain not extending beyond the life
expectancy of the Certificate Holder, or
the joint and last survivor expectancy of
the Certificate Holder and his or her
designated Beneficiary. Payments must be
made in periodic payments at intervals no
longer than one year. In addition, payments
must be either nonincreasing or they may
increase only as provided in Q&A F-3 of
section 1.401(a)(9)-1 of the Proposed
Income Tax Regulations.
All distributions made hereunder shall be
made in accordance with the requirements of
section 401(a)(9) of the Code, and the
regulations thereunder, including the
minimum distribution incidental benefit
requirement of section 1.401(a)(9)-2 of the
Proposed Income Tax Regulations.
Distribution may be an Annuity as set forth
in Sections 4.01 through 4.04. payments
under ECO or SWO as defined in Section
3.11. or a lump sum payment.
(b) Beneficiary: If the Certificate Holder dies
after distribution of his or her interest
has begun, the remaining portion of such
interest will continue to be distributed at
least as rapidly as under the method of
distribution being used prior to the
Certificate Holder's death.
25
3.14 Required Distributions are considered to have begun
Distribution to if distributions are made on account of the
Certificate Holder/ Certificate Holder's reaching his or her
Beneficiary (Cont'd): required beginning date or if prior to the
required beginning date distributions
irrevocably commence to the Certificate
Holder over a period permitted and in an
Annuity from acceptable under section
1.401(a)(9) of the Income Tax Regulations.
3.15 Liquidation of All or any portion of the Account's Adjusted
Surrender Value: Current Value may be surrendered at any time.
Surrender requests can be submitted as a
percentage of the Account value or as a
specific dollar amount. The Net Purchase
Payment amount is withdrawn first, and then the
excess value, if any. Amounts are withdrawn on
a pro rata basis from the Fund(s) and or the
Guaranteed Term(s) Groups of the MG Account in
which the Current Value is invested. Within a
Guaranteed Term Group, the amount to be
surrendered or transferred will be withdrawn
first from the oldest Deposit Period, then from
the next oldest, and so on until the amount
requested is satisfied.
After deduction of the Maintenance Fee, if
applicable, the surrendered amounts shall be
reduced by a Surrender Fee, if applicable.
3.16 Surrender Fee: The Surrender Fee only applies to the Net
Purchase Payment portion surrendered and varies
according to the elapsed time since deposit
(see Contract Schedule I).
No Surrender Fee is deducted from any portion
of the Current Value which is paid:
(a) To a Beneficiary due to the Annuitant's
death before Annuity payments start;
(b) As a premium for an Annuity option 2, 3 or
4 under this certificate (see 4.09);
(c) As a distribution under the ECO or SWO
provision (see 3.11);
(d) At least 12 months after the date of the
Purchase Payment to the Account in an
amount equal to or less than 10% of the
Current Value. This applies to the first
surrender request, partial or full, in a
calendar year. The Current Value is
calculated as of the date the surrender
request is received in good order at
Aetna's Home Office. This waiver is not
available to the Certificate Holder while
SWO is in effect;
(e) For a full surrender of the Account where
the Current Value of the Account is $2,500
or less and no surrenders have been taken
from the Account within the prior 12
months;
26
3.16 Surrender Fee (f) By Aetna under 3.19; or
(Cont'd):
(g) If the Certificate Holder has spent at
least 45 consecutive days in a licensed
nursing care facility and each of the
following conditions are met:
(1) more than one calendar year has elapsed
since the date this certificate was
issued; and
(2) the surrender is requested within 3
years of admission to a licensed
nursing care facility.
This waiver does not apply if the
Certificate Holder was in a nursing care
facility at the time this certificate was
issued.
3.17 Payment of Under certain emergency conditions, Aetna may
Surrender Value: defer payment:
(a) For a period of up to 6 months (unless not
allowed by state law); or
(b) As provided by federal law.
3.18 Reinstatement: All or a portion of the proceeds of a full
surrender of an Account may be reinvested
within 30 days after the surrender. Any
Maintenance Fee and Surrender Fee charged at
the time of surrender on the amount reinvested
will be included in the reinstatement. Any
Market Value Adjustment(s) deducted from
surrenders will not be included in the
reinstatement.
Amounts will be reinstated among the MG Account
and the Funds in the Separate Account in the
same proportion as they were at the time of
surrender. Any amounts reinstated to the MG
Account will be credited to the available
Guaranteed Terms of the current Deposit Period
in the same proportion as they were at the time
of surrender. In the event that a Guaranteed
Term of the same duration is unavailable,
amounts will be reinvested in the next shortest
Guaranteed Term available in the current
Deposit Period. If no shorter Guaranteed Term
is available, the next longer Guaranteed Term
will be used. The number of Fund(s) record
units reinstated will be based on the record
unit value(s) next computed after receipt at
Aetna's Home Office of the reinstatement
request and the amount to be reinstated.
Any Maintenance Fee which falls due after the
surrender and before the reinvestment will be
deducted from the amount reinstated.
Any Account(s) surrendered because the Current
Value was less than $2,500 immediately
following any partial surrender may not be
reinstated (see 3.19).
Reinstatement of an Account is permitted only
once.
27
3.19 Payment of Adjusted Upon 90 days' written notice to the
Current Value: Certificate Holder, Aetna will terminate any
Value: Account if the Current Value becomes
less than $2,500 immediately following any
partial surrender. Aetna does not intend to
exercise this right in cases where an Account
Current Value is reduced to $2,500 or less
solely due to investment performance. A
Surrender Fee will not be deducted from the
Adjusted Current Value. This terminated
Adjusted Current Value of an Account may not be
reinstated.
IV. ANNUITY PROVISIONS
--------------------------------------------------------------------------------
4.01 Choices to be Made: The Certificate Holder may tell Aetna to apply
any portion of the Adjusted Current Value
(minus any premium tax) for an Annuity under
option 2, 3, or 4 (see 4.09). The first Annuity
payment may not be earlier than one calendar
year after the Purchase Payment nor later than
the later of:
(a) The first day of the month following the
Annuitant's 85th birthday or
(b) The tenth anniversary of the last Purchase
Payment. In lieu of the election of an
Annuity, the Certificate Holder may tell
Aetna to make a lump sum payment.
When an Annuity option is chosen, Aetna must
also be told if payments are to be made other
than monthly and whether to pay:
(a) A Fixed Annuity using the General Account;
(b) A Variable Annuity using any of the Fund(s)
available under this Contract for Annuity
purposes; or
(c) A combination of (a) and (b).
If a Fixed Annuity is chosen, the Annuity
purchase rate for the option chosen reflects
the Minimum Guaranteed Interest Rate (see
Contract Schedule II), but may reflect higher
interest rates. If a Variable Annuity is
chosen, the initial Annuity payment for the
option chosen reflects the assumed annual
return rate elected. (see Contract Schedule
II).
4.02 Annuity Payments to In no event may any payments under an Annuity
Certificate Holder: option extend beyond:
(a) The life of the Certificate Holder;
(b) The lives of the Certificate Holder and
Beneficiary;
(c) Any certain period greater than the
Certificate Holder's life expectancy
according to regulations under Code Section
401(a)(9), determined as of the date
payments are to begin; or
(d) A period greater than the joint and last
survivor life expectancies of the
Certificate Holder and the Certificate
Holder's Beneficiary according to
regulations under Code Section 401(a)(9),
determined as of the date payments are to
begin.
28
4.03 Annuity Payments to In no event may payments to the Beneficiary
Beneficiary: under an Annuity option extend beyond:
(a) The life of the Beneficiary; or
(b) Any certain period greater than the
Beneficiary's life expectancy as determined
by regulations under Code Section
401(a)(9).
4.04 Terms of Annuity (a) When payments start, the age of the
Options: Annuitant plus the number of years for
which payments are guaranteed must not
exceed 95.
(b) An Annuity option may not be elected if the
first payment would be less than $50 or if
the total payments in a year would be less
than $250 (less if required by state law).
Aetna reserves the right to increase the
minimum first Annuity payment amount and
the annual minimum Annuity payment amount
based upon increases reflected in the
Consumer Price Index-Urban. (CPI-U) since
July 1, 1993.
(c) If a Fixed Annuity under option 2, 3 or 4
is chosen and a larger payment would result
from applying the Surrender Value to a
current Aetna single premium immediate
Annuity, Aetna will make the larger
payment.
(d) For purposes of calculating the guaranteed
first payment of a Variable Annuity or the
payments for a Fixed Annuity, the
Annuitant's and second Annuitant's adjusted
age will be used. The Annuitant's and
second Annuitant's adjusted age is his or
her age as of the birthday closest to the
Annuity commencement date reduced by one
year for Annuity commencement dates
occurring during the period of time from
July 1, 1993 through December 31, 1999. The
Annuitant's and second Annuitant's age will
be reduced by two years for Annuity
commencement dates occurring during the
period of time from January 1, 2000 through
December 31, 2009. The Annuitant's and
second Annuitant's age will be reduced by
one additional year for Annuity
commencement dates occurring in each
succeeding decade.
The Annuity rates for Options 3 and 4 are
based on mortality from 1983 Table a.
(e) Assumed Annual Net Return Rate is the
interest rate to determine the amount of
the first Annuity payment under a Variable
Annuity as shown on Contract Schedule II.
The Separate Account must earn this rate
plus enough to cover the mortality expense
risks charges (which may include profit)
and administrative charges if future
Variable Annuity Payments are to remain
level, (see Annuity return factor under
Variable Annuity Assumed Annual Net Return
Rate on Contract Schedule II).
29
4.04 Terms of Annuity (f) Once elected, Annuity payments cannot be
Options (Cont'd): commuted to a lump sum except for Variable
Annuity payments under Option 2 (see 4.09)
The life expectancy of the Certificate
Holder or Certificate Holder and second
Annuitant shall be irrevocable upon the
election of an Annuity option.
4.05 Death of Annuitant/ (a) When the Annuitant dies under option 2 or
Beneficiary: 3, or both the Annuitant and second
Annuitant die under option 4(d), the
present value of any remaining guaranteed
payments will be paid in one sum to the
Beneficiary, or upon election by the
Beneficiary, any remaining payments will
continue to the Beneficiary. If option 4
has been elected and the Annuitant dies,
the remaining payments will continue to the
second Annuitant as successor payee.
(b) If there is no Beneficiary under option 2,
3 or 4, the present value of any remaining
payments will be paid in one sum to the
Certificate Holder's estate.
(c) If the Beneficiary designated under option
1 dies, the amount held plus accrued
interest will be paid in one sum to a
successor Beneficiary, if any, named by the
designated Beneficiary. If there is no
successor Beneficiary, the lump sum will be
paid to the designated Beneficiary's
estate.
(d) If the Beneficiary dies while receiving
Annuity payments, the present value of any
remaining guaranteed payments will be paid
in one sum to the successor Beneficiary, or
upon election by the successor Beneficiary,
any remaining payments will continue to the
successor Beneficiary. If no successor
Beneficiary has been designated, the
present value of any remaining guaranteed
payments will be paid in one sum to the
Beneficiary's estate.
(e) The present value will be determined as of
the Valuation Period in which proof of
death acceptable to Aetna and a request for
payment is received at Aetna's Home Office.
The interest rate used to determine the
first payment will be used to calculate the
present value.
4.06 Fund(s) Annuity The number of each Fund's Annuity units is
Units -- Separate based on the amount of the first Variable
Account: Annuity payment which is equal to:
(a) The portion of the Current Value applied to
pay a Variable Annuity (minus any premium
tax); divided by
(b) 1,000; multiplied by
(c) The payment rate for the option chosen.
30
4.06 Fund(s) Annuity Such amount, or portion of the Variable payment
Units -- Separate will be divided by the appropriate Fund Annuity
Account (Cont'd): unit value (see 4.07) of the tenth Valuation
Period before the due date of the first payment
to determine the number of each Fund Annuity
units. The number of each Fund Annuity units
remains fixed. Each future payment is equal to
the sum of the products of each Fund Annuity
unit value multiplied by the appropriate number
of units. The Fund Annuity unit value on the
tenth Valuation Period prior to the due date of
the payment is used.
4.07 Fund(s) Annuity For any Valuation Period, a Fund Annuity unit
Unit Value -- value is equal to:
Separate Account:
(a) The Value for the previous Period;
multiplied by
(b) The Annuity net return factor(s) (see 4.08
below) for the Period; multiplied by
(c) A factor to reflect the assumed annual net
return rate (see Contract Schedule II).
The dollar value of a Fund(s) Annuity unit
values and Annuity payments may go up or down
due to investment gain or loss.
4.08 Annuity Net Return The Annuity net return factor(s) are used to
Factor(s) -- Separate compute all Separate Account Annuity Payments
Account: for any Fund.
The Annuity net return factor(s) for each Fund
is equal to 1.0000000 plus the net return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by
the Separate Account at the end of a
Valuation Period; minus
(b) The value of the shares of the Fund held by
the Separate Account at the start of the
Valuation Period; plus or minus
(c) Taxes (or reserves for taxes) on the
Separate Account (if any); divided by
(d) The total value of the Fund(s) record units
and Fund(s) Annuity units of the Separate
Account at the start of the Valuation
Period; minus
(e) A daily charge for Annuity mortality and
expense risks, which may include profit,
and a daily administrative charge (at the
annual rate as shown on Contract
Schedule II).
A net return rate may be more of less than 0%.
The value of a share of the Fund is equal to
the net assets of the Fund divided by the
number of shares outstanding.
Payments shall not be changed due to changes in
the mortality or expense results or
administrative charges.
31
4.09 Annuity Options: Option 1 -- Payment of Interest on Sum Left
with Aetna -- This option may be used only by
the Beneficiary when the Certificate Holder
dies before Aetna has started paying an
Annuity. A portion or all of the sum paid upon
death may be held under this option and will be
held in the General Account of Aetna at
interest (see 4.01). The Beneficiary may later
tell Aetna to:
(a) Pay a portion or all of the sum held by
Aetna;
(b) Apply a portion or all of the sum held by
Aetna to any Annuity option below.
If a nonspouse Beneficiary elects that some or
all of the Account is to be held under this
option, the Beneficiary must tell Aetna to pay
the full sum held under this option by December
31st of the year containing the fifth
anniversary of the Certificate Holder's date of
death.
Option 2 -- Payments for a Stated Period of
Time -- An Annuity will be paid for the number
of years chosen. The number of years must be at
least 5 and not more than 30.
If payments for this option are made under a
Variable Annuity, the present value of any
remaining payments may be withdrawn at any
time. If a withdrawal is requested within 3
years after the start of payments, it will be
treated as a surrender and any applicable
Surrender Fee will be applied (see 3.16).
Option 3 -- Life Income -- An Annuity will be
paid for the life of the Annuitant. If also
chosen, Aetna will guarantee payments for 60,
120, 180, or 240 months.
Option 4 -- Life Income Based upon the Lives of
Two Annuitants -- An Annuity will be paid
during the lives of the Annuitant and a second
Annuitant. Payments will continue until both
Annuitants have died. When this option is
chosen, a choice must be made of:
(a) 100% of the payment to continue after the
first death;
(b) 66-2/3% of the payment to continue after
the first death;
(c) 50% of the payment to continue after the
first death;
(d) Payments for a minimum of 120 months with
100% of the payment to continue after the
first death; or
(e) 100% of the payment to continue at the
death of the second Annuitant to the
survivor if the survivor is the Annuitant
and 50% of the payment to continue at the
death of the Annuitant.
Other Options -- Aetna may make other options
available as allowed by the laws of the state
in which the Contract and this certificate is
delivered.
32
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
---------------------------------------------------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
3 3.00% $ 28.99 $ 86.76 $ 172.88 $ 343.23
4 3.00% 22.06 66.02 131.56 261.19
5 3.00% 17.91 53.59 106.78 211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
---------------------------------------------------------------------------------------------------------------
33
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
---------------------------------------------------------------------------------------------------------------
Adjusted
Age of
Annuitant None 60 120 180 240
--------------------- ------------------ ------------------ ------------------- ------------------ ------------
50 $4.05 $4.05 $ 4.03 $3.99 $ 3.93
51 4.12 4.11 4.09 4.05 3.99
52 4.19 4.19 4.16 4.11 4.04
53 4.27 4.26 4.23 4.18 4.10
54 4.35 4.34 4.31 4.25 4.16
55 4.44 4.42 4.39 4.32 4.22
56 4.53 4.51 4.47 4.40 4.29
57 4.62 4.61 4.56 4.48 4.35
58 4.72 4.71 4.65 4.56 4.42
59 4.83 4.81 4.75 4.64 4.49
60 4.95 4.93 4.86 4.73 4.55
61 5.07 5.05 4.97 4.83 4.62
62 5.20 5.17 5.08 4.92 4.69
63 5.34 5.31 5.20 5.02 4.76
64 5.49 5.45 5.33 5.12 4.83
65 5.65 5.61 5.47 5.22 4.89
66 5.82 5.77 5.61 5.33 4.96
67 6.01 5.94 5.75 5.44 5.02
68 6.20 6.13 5.91 5.54 5.08
69 6.41 6.33 6.07 5.65 5.14
70 6.64 6.54 6.23 5.76 5.19
71 6.88 6.76 6.41 5.86 5.24
72 7.14 7.00 6.59 5.97 5.28
73 7.43 7.26 6.77 6.06 5.32
74 7.73 7.53 6.96 6.16 5.35
75 8.06 7.82 7.14 6.25 5.38
---------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a. The rates doe not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
34
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
----------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
-------------------------------------
Second
Annuitant Annuitant Option 4a Option 4b Option 4c Option 4d Option 4e
------------------- ----------------- ---------------- ----------------- ---------------- ----------------- ----------------
55 50 $ 3.69 $ 4.05 $ 4.27 $ 3.69 $ 4.03
55 55 3.88 4.25 4.47 3.87 4.14
55 60 3.99 4.44 4.71 3.98 4.42
60 55 3.99 4.44 4.71 3.98 4.42
60 60 4.24 4.71 4.99 4.23 4.57
60 65 4.38 4.97 5.32 4.38 4.93
65 60 4.38 4.97 5.32 4.38 4.93
65 65 4.72 5.33 5.70 4.71 5.14
65 70 4.93 5.68 6.15 4.91 5.66
70 65 4.93 5.68 6.15 4.91 5.66
70 70 5.40 6.21 6.70 5.36 5.96
70 75 5.69 6.68 7.32 5.62 6.67
75 70 5.69 6.68 7.32 5.62 6.67
75 75 6.37 7.45 8.15 6.23 7.12
75 80 6.78 8.11 8.99 6.54 8.13
----------------------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
35
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
---------------------------------------------------------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
3 3.50% $ 29.19 $ 87.33 $ 173.91 $ 344.86
4 3.50% 22.27 66.61 132.65 263.04
5 3.50% 18.12 54.19 107.92 213.99
6 3.50% 15.35 45.92 91.44 181.32
7 3.50% 13.38 40.01 79.69 158.01
8 3.50% 11.90 35.59 70.88 140.56
9 3.50% 10.75 32.16 64.05 127.00
10 3.50% 9.83 29.42 58.59 116.18
11 3.50% 9.09 27.18 54.13 107.34
12 3.50% 8.46 25.32 50.42 99.98
13 3.50% 7.94 23.75 47.29 93.78
14 3.50% 7.49 22.40 44.62 88.47
15 3.50% 7.10 21.24 42.31 83.89
16 3.50% 6.76 20.23 40.29 79.89
17 3.50% 6.47 19.34 38.51 76.37
18 3.50% 6.20 18.55 36.94 73.25
19 3.50% 5.97 17.85 35.54 70.47
20 3.50% 5.75 17.22 34.28 67.98
21 3.50% 5.56 16.65 33.15 65.74
22 3.50% 5.39 16.13 32.13 63.70
23 3.50% 5.24 15.66 31.19 61.85
24 3.50% 5.09 15.24 30.34 60.17
25 3.50% 4.96 14.85 29.56 58.62
26 3.50% 4.84 14.49 28.85 57.20
27 3.50% 4.73 14.15 28.19 55.90
28 3.50% 4.63 13.85 27.58 54.69
29 3.50% 4.53 13.57 27.02 53.57
30 3.50% 4.45 13.30 26.49 52.53
---------------------------------------------------------------------------------------------------------------------
36
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
---------------------------------------------------------------------------------------------------------------
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payment
3 5.00% $ 29.80 $ 89.04 $ 176.99 $ 349.72
4 5.00% 22.89 68.38 135.93 268.58
5 5.00% 18.74 56.00 111.33 219.98
6 5.00% 15.99 47.77 94.96 187.64
7 5.00% 14.02 41.90 83.30 164.59
8 5.00% 12.56 37.52 74.58 147.35
9 5.00% 11.42 34.11 67.81 133.99
10 5.00% 10.51 31.40 62.42 123.34
11 5.00% 9.77 29.19 58.03 114.66
12 5.00% 9.16 27.36 54.38 107.45
13 5.00% 8.64 25.81 51.31 101.39
14 5.00% 8.20 24.50 48.69 96.21
15 5.00% 7.82 23.36 46.44 91.75
16 5.00% 7.49 22.37 44.47 87.88
17 5.00% 7.20 21.51 42.75 84.48
18 5.00% 6.94 20.74 41.23 81.47
19 5.00% 6.71 20.06 39.88 78.80
20 5.00% 6.51 19.46 38.68 76.42
21 5.00% 6.33 18.91 37.59 74.28
22 5.00% 6.17 18.42 36.62 72.35
23 5.00% 6.02 17.98 35.73 70.61
24 5.00% 5.88 17.57 34.93 69.02
25 5.00% 5.76 17.20 34.20 67.57
26 5.00% 5.65 16.87 33.53 66.25
27 5.00% 5.54 16.56 32.92 65.04
28 5.00% 5.45 16.28 32.35 63.93
29 5.00% 5.36 16.01 31.83 62.90
30 5.00% 5.28 15.77 31.35 61.95
---------------------------------------------------------------------------------------------------------------
37
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Months
---------------------------------------------------------------------------------------------------------------
Adjusted Age of
Annuitant None 60 120 180 240
---------------------------------------------------------------------------------------------------------------
50 $ 4.34 $ 4.34 $ 4.31 $ 4.27 $ 4.22
51 4.41 4.40 4.38 4.33 4.27
52 4.48 4.47 4.45 4.40 4.32
53 4.56 4.55 4.52 4.46 4.38
54 4.64 4.63 4.59 4.53 4.44
55 4.72 4.71 4.67 4.60 4.50
56 4.81 4.80 4.75 4.67 4.56
57 4.91 4.89 4.84 4.75 4.62
58 5.01 4.99 4.93 4.83 4.69
59 5.12 5.10 5.03 4.92 4.75
60 5.23 5.21 5.13 5.00 4.82
61 5.36 5.33 5.24 5.09 4.88
62 5.49 5.45 5.35 5.19 4.95
63 5.63 5.59 5.47 5.28 5.02
64 5.78 5.73 5.60 5.38 5.08
65 5.94 5.89 5.73 5.48 5.15
66 6.11 6.05 5.87 5.58 5.21
67 6.29 6.22 6.02 5.69 5.27
68 6.49 6.41 6.17 5.79 5.33
69 6.70 6.60 6.33 5.90 5.38
70 6.92 6.81 6.49 6.00 5.43
71 7.17 7.04 6.66 6.10 5.48
72 7.43 7.27 6.84 6.20 5.52
73 7.71 7.53 7.02 6.30 5.55
74 8.02 7.80 7.20 6.39 5.59
75 8.35 8.08 7.38 6.48 5.62
---------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
38
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Payments Guaranteed for a Stated Period of Months
---------------------------------------------------------------------------------------------------------------
Adjusted Age of
Annuitant None 60 120 180 240
---------------------------------------------------------------------------------------------------------------
50 $ 5.26 $ 5.25 $ 5.22 $ 5.17 $ 5.11
51 5.33 5.32 5.28 5.23 5.15
52 5.40 5.38 5.34 5.29 5.20
53 5.47 5.45 5.41 5.35 5.26
54 5.54 5.53 5.48 5.41 5.31
55 5.63 5.61 5.56 5.47 5.36
56 5.71 5.69 5.63 5.54 5.42
57 5.80 5.78 5.72 5.61 5.47
58 5.90 5.88 5.81 5.69 5.53
59 6.01 5.98 5.90 5.77 5.59
60 6.12 6.09 6.00 5.85 5.65
61 6.24 6.21 6.10 6.93 5.71
62 6.37 6.33 6.21 6.02 5.77
63 6.51 6.46 6.33 6.11 5.83
64 6.66 6.60 6.45 6.20 5.89
65 6.82 6.75 6.57 6.30 5.95
66 6.99 6.91 6.71 6.39 6.01
67 7.17 7.08 6.85 6.49 6.06
68 7.36 7.27 6.99 6.59 6.12
69 7.57 7.46 7.15 6.69 6.17
70 7.80 7.67 7.30 6.78 6.21
71 8.05 7.89 7.47 6.88 6.25
72 8.31 8.13 7.64 6.97 6.29
73 8.59 8.38 7.81 7.06 6.33
74 8.90 8.64 7.99 7.15 6.36
75 9.23 8.93 8.16 7.23 6.38
---------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
39
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
--------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
-------------------------------------
Second
Annuitant Annuitant Option 4a Option 4b Option 4c Option 4d Option 4e
55 50 $ 3.97 $ 4.35 $ 4.56 $ 3.97 $ 4.31
55 55 4.16 4.54 4.76 4.15 4.42
55 60 4.27 4.73 5.00 4.26 4.48
60 55 4.27 4.73 5.00 4.26 4.70
60 60 4.51 4.99 5.27 4.50 4.84
60 65 4.66 5.25 5.61 4.65 4.93
65 60 4.66 5.25 5.61 4.65 5.22
65 65 4.99 5.61 5.99 4.98 5.42
65 70 5.19 5.97 6.44 5.17 5.54
70 65 5.19 5.97 6.44 5.17 5.93
70 70 5.67 6.49 6.99 5.62 6.23
70 75 5.95 6.96 7.61 5.87 6.40
75 70 5.95 6.96 7.61 5.87 6.95
75 75 6.64 7.73 8.43 6.48 7.40
75 80 7.04 8.39 9.29 6.79 7.64
--------------------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
40
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
--------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
-------------------------------------
Second
Annuitant Annuitant Option 4a Option 4b Option 4c Option 4d Option 4e
55 50 $ 4.88 $ 5.26 $5.48 $4.88 $5.23
55 55 5.04 5.44 5.66 5.04 5.32
55 60 5.15 5.63 5.91 5.14 5.38
60 55 5.15 5.63 5.91 5.14 5.59
60 60 5.37 5.87 6.16 5.37 5.72
60 65 5.52 6.14 6.51 5.51 5.80
65 60 5.52 6.14 6.51 5.51 6.10
65 65 5.83 6.49 6.87 5.82 6.29
65 70 6.04 6.84 7.34 6.00 6.41
70 65 6.04 6.84 7.34 6.00 6.81
70 70 6.49 7.35 7.87 6.44 7.08
70 75 6.77 7.84 8.51 6.68 7.25
75 70 6.77 7.84 8.51 6.58 7.81
75 75 7.45 8.60 9.33 7.27 8.25
75 80 7.86 9.28 10.20 7.57 8.49
--------------------------------------------------------------------------------------------------------------------------
Rates are based on mortality from 1983 Table a. The rates do not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
41
----------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: ▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
(▇▇▇) ▇▇▇-▇▇▇▇
Certificate of Group Annuity Coverage
----------------------------------------
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CERTIFICATE CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA
DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
GMCC-IC(IR)