1
EXHIBIT (6)(c)
[CONTINENTAL ASSURANCE COMPANY LETTERHEAD]
GP-
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agrees, in accordance with and subject to the provisions hereinafter. contained,
to make such payments to each Participant, Beneficiary, and contingent annuitant
thereof, who may be entitled thereto as herein provided.
ILLINOIS STATE BANK OF CHICAGO, TRUSTEE FOR SELF EMPLOYED MASTER RETIREMENT
PLANS
Contractholder
This Contract is issued in consideration of the Application herefor, a copy of
which is attached to and made a part of this Contract, and of the application by
the Contractholder of the deposits hereinafter provided. It provides for
investment in Separate Account (B), and supplements which provides for
fixed-value retirement reserves and for the purchase of fixed value retirement
benefits and which shall hereinafter be referred to as the "Companion Contract."
Certain annuity benefits may be payable hereunder as Variable Annuities. Future
payments under Variable Annuities will fluctuate depending on investment income
and changes in market value of common stocks held hereto. For a particular
annuity of this type, subsequent payments may be higher or lower than initial
payments.
This Contract shall be effective at the Contractholder's address at 12:01 A.M.
Standard Time from the day of
hereinafter called the Effective Date.
The provisions hereinafter set forth on the following pages are hereby made a
part of this Contract.
IN WITNESS WHEREOF, the Continental Assurance Company has caused this Contract
to be executed this day of .
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ /s/ ▇. ▇. ▇▇▇▇
Corporate Secretary Chairman of the Board
Group Variable Annuity Contract
HR-10 Variable Value With Death Benefits
Investment in Separate Account (B)
Non-Participating
L-500-386
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PART I
DEFINITIONS, BENEFITS AND OPTIONS
1.1 DEFINITIONS
The following terms shall have the meanings indicated, wherever used in this
Contract.
(a) Anniversary Date - A yearly anniversary of the Effective Date,
including where applicable the Effective Date itself.
(b) Beneficiary - The person or persons designated in accordance with
this Contract, to receive any death benefit which shall become payable
hereunder, other than a contingent annuitant.
(c) Contract Year - The period of twelve months commencing with an
Anniversary Date.
(d) Contractholder - As listed on the face page hereof.
(e) Effective Annuity Date - The actual date of commencement of an annuity
benefit hereunder for a Participant, which shall be any first day of
the month permitted by the Plan and designated in advance by the
Participant in writing.
(f) Fixed Annuity - A series of monthly retirement payments under the
Companion Contract in an unchanging amount, fully guaranteed by the
Company.
(g) Individual Account - The interest of any Participant in Separate
Account (B) consisting of the value of the Accumulation Units
attributable to contributions made hereto by the Participant, or on
his behalf, or both.
(h) Normal Annuity Form - The form of annuity payment specified under the
Plan as normally applicable.
(i) Participant - An Employee of the Employer, or self-employed person who
is the Employer or a partner in the Employer, who currently meets the
eligibility requirements of the Plan for participation thereunder.
(j) Plan - The master plan or prototype adopted by the Employer as
defining eligibility for and benefits under the Employer's retirement
program.
(j.1) Employer - The entity or organization, the eligible employees of which
are Participants under this Contract.
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1.1 DEFINITIONS (Continued)
(k) Separate Account or Separate Account (B) - The assets of the Company
in a segregated investment Account, titled "Continental Assurance
Company Separate Account (B)", established by the Company.
(l) Valuation Date - Any day on which the Company's Home Office is open
for business and on which the New York Stock Exchange is open.
(m) Variable Annuity - A series of monthly retirement payments under this
Contract in amounts varying from time to time in accordance with
actual investment results on the assets held thereto.
1.2 GENDER AND NUMBER
The masculine gender in this Contract includes the feminine except where
otherwise indicated by the context, and the singular number shall to the
same extent include the plural.
1.3 DETERMINATION OF BENEFITS
All benefits for a Participant under this Contract shall be related to the
value from time to time of his Individual Account as computed by the
Company in the manner hereinafter provided. The size of a Participant's
Individual Account hereunder will depend on the amount of funds transferred
to it in accordance with the Plan, and the subsequent investment experience
thereon, as hereinafter provided.
1.4 RETIREMENT BENEFIT
A Participant shall be entitled to have provided under this Contract, a
monthly Variable Annuity on the Normal Annuity Form, commencing at his
Effective Annuity Date, and in an amount purchasable by his Individual
Account when applied to the proper settlement rate table contained in Part
IV of this Contract. Provided, that the initial monthly payment must be at
least $20.00 in amount; if this condition cannot be met on the Normal Form,
nor under any annuity option which the Participant is willing to elect, the
value of the Participant's Individual Account shall, at the option of the
Participant, be paid in a lump sum, or be transferred to the Companion
Contract for payment in accordance with its terms.
1.5 ANNUITY OPTIONS
A Participant may select any annuity option under this Contract if permitted
by the Plan, and make changes therein, at any time, up to 30 days prior to
the Effective Annuity Date. The amount of the annuity payable under such an
option shall be determined by the Company from the amount of the
Participant's Individual Account from the tables in Part IV. No such option
may in any event be elected unless the first payment would be at least
$20.00 in amount. Other conditions of payment applicable to each such option
shall be set by the Company, and described in the annuity certificate. The
following annuity options are provided under this Contract.
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1.5 ANNUITY OPTIONS (Continued)
(1) Life Ten Years Certain - A monthly income payable for life, with the
guarantee that if death should occur PRIOR to the payment of 120
installments, the remainder at the current payment level will be
discounted at the reserve interest rate, and paid to the Beneficiary
in a single sum. (This option will be the "Normal Annuity Form", or
automatic option if the Plan does not specify otherwise.)
(2) Life Five Years Certain - A monthly income payable for life with a
guarantee similar to that under the ten year certain form, but
extending for five years from retirement.
(3) Life Without Refund - A monthly income payable for the life of the
Participant only, in a higher amount than would be the case if there
were a guaranteed number of payments.
(4) Joint and Survivor - A monthly income payable to the Participant for
his life, and continued in the same number of Annuity Units after his
death to a contingent annuitant, named at retirement, for the balance
of the contingent annuitant's life.
(5) Fixed Installments - A level monthly income of a stipulated dollar
amount, payable until the sum applied is exhausted.
(6) Fixed Period - A variable monthly income payable over a predesignated
period of years, from one to twenty.
No option may be elected which has a certain period longer than the
life expectancy of the Participant or the joint lives of the
Participant and his spouse at the Effective Annuity Date on the basis
of the mortality table used to determine the annuity payments.
When the Plan provides for a qualified joint and survivor annuity as
defined in the Employees' Retirement Income Security Act of 1974, the
automatic annuity form under the Contract for each participant to whom
such provision is applicable shall be an annuity for the life of the
Participant with a survivor annuity for the life of his spouse which
is not less than one-half, nor greater than, the amount of the annuity
payable during the joint lives of the Participant and his spouse and
which is the actuarial equivalent of a single life annuity for the
life of the Participant.
1.6 DEATH OF PARTICIPANT
On the death of a Participant prior to retirement, the value of his
Individual Account on the Valuation Date next following the date written
notice of the death is received in the Home Office of the Company shall be
payable to his Beneficiary by the Company in a single sum.
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1.6 DEATH OF PARTICIPANT (Continued)
By written instructions for settlement, a Participant may elect to have the
whole or any part of the death benefit paid to a Beneficiary under any of
the retirement options in Section 1.5 above. Each monthly payment to be
determined on the basis of the rates shown in the Tables in Part IV for the
option elected, considering the Beneficiary to be one year younger than in
actuality, as of the birthday nearest the Participant's death. Provided,
however, that if such amount would provide less than $20.00 per month, it
shall nevertheless be paid in a single sum. If no such election is in force
at the time of the Participant's death, such election may be made by, but
only for the benefit of, such Beneficiary.
1.7 OTHER TERMINATION
On a termination of participation hereunder by a Participant other than
through death or retirement, the Participant may elect any one of the
following options, subject, however, in each case to the conditions and
restrictions in the Plan.
(1) Cash Settlement
The value of the Participant's Individual Account on the Valuation Date
written election of such option is received in the Home Office of the
Company will be paid to him by the Company in a single sum.
(2) Accumulation
The Participant may allow his Individual Account to remain under the
Contract, without further contributions, and with continued full
participation in the investment experience hereof, for later payment in
a lump sum on written election thereto, or (if at least $20.00 a month
initially) as an annuity. Provided, that this option shall be available
only if at the effective date of termination, the value of the
Individual Account is not less than $2,000.00.
(3) Transfer
The Participant may have the value of his Individual Account transferred
to the Companion Contract, for retention thereunder according to its
terms. If the Plan limits the Participant to accumulation to a later
retirement age, and the value of his Individual Account is less than
$2,000.00 on the next following Valuation Date, such value shall be
transferred by the Company to the Companion Contract, for retention or
payment in accordance with its terms and the terms of the Plan.
In the event no election is received from a Participant on termination of
participation, Option (2) shall be automatic, unless the value of the Individual
Account is beneath the minimum, in which event the Company may apply the
transfer option.
If a portion of a Participant's Individual Account shall not be vested on
termination of employment, the value thereof shall be transferred to the
Companion Contract, and held by the Company thereunder for later application to
reduce subsequent contributions of the Employer.
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1.8 PLAN AND TRUST
The Company shall not be a party to the Plan, nor shall it be a party to any
Trust which the Employer may, pursuant to the Plan, enter into under any
Agreement of Trust. The Company shall be entitled to rely on the statements
of the Employer relative to the terms of the Plan, without incurring any
liability other than as specifically assumed under this Contract. The
Company shall not be required without its written consent to recognize an
amendment to the Plan or Trust which might act to increase its liability
hereunder.
1.9 COMMITTEE
The general operation of Separate Account (B) shall be subject to periodic
review by a Committee, elected by the Participants hereunder, together with
Participants under similar contracts with the Company. The terms and
conditions of the Committee's supervision over Separate Account (B) is set
forth in a Management Agreement between the Company and Separate Account
(B).
In the event that the Participants under the Separate Account shall, through
vote of a majority at interest, authorize the Committee to institute a
change in the Management Agreement, any modification of this Contract
required by the change shall be automatic and accomplished by appropriate
endorsement.
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2.1 APPLICATION
The Contractholder shall, on the written election by a Participant, made in
proper form, direct the Company to place some or all of the contributions
made for the Participants placed in Separate Account (B) maintained by the
Company, in lieu of being retained under the Companion Contract, subject to
the provisions of the Contracts and the Plan. All assets deriving from a
contribution placed under this Contract shall, from the next following
Valuation Date, be subject to the special provisions of this Part II, as
long as those assets remain in Separate Account (B).
2.2 TRANSFERS TO SEPARATE ACCOUNT (B)
Current contributions or portions thereof which are designated by the
Contractholder for investment in Separate Account (B) shall be transferred
from the Companion Contract to the Separate Account as of the Valuation Date
following receipt. Provided, that the Company shall not be required to make
such transfer unless the Contractholder shall have furnished the Company
with a detailed list of such contributions showing allocations among the
Participants to which such contributions relate. The minimum single
contribution allocable to a Participant shall be $10.00.
2.3 ACCUMULATION UNITS
The assets of Separate Account (B) shall, for accounting purposes, be
apportioned among equal units which shall be known as Accumulation Units.
The interest of this Contract in Separate Account (B), and in the net
earnings, and gains and losses, realized and unrealized, in Separate Account
(B) shall be proportionate to the number of Accumulation Units credited
hereto, compared to the total number of Accumulation Units then outstanding.
The monetary value of an Accumulation Unit shall be defined arbitrarily as
$1.00000 on June 30, 1966. The monetary value on each subsequent Valuation
Date shall be found as hereinafter provided.
The Company shall credit to this contract on account of each allocation made
hereunder to the Separate Account, that number of Accumulation Units which
the percentage of such allocation remaining after deduction of the following
charge will purchase at the fair value of an Accumulation Unit on the
Valuation Date of Allocation. A charge equal to the following percentage of
each allocation shall not be placed in the Separate Account, but shall be
held by the Company as part of its regular nonparticipating assets for
present and future expenses hereto and for surplus and contingencies: 8.5%
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2.3 ACCUMULATION UNITS (Continued)
The value of each Individual Account under this Contract shall be measured
by the number of Accumulation Units held to the credit of that Individual
Account. The Company may maintain records of the Accumulation Units credited
to each Individual Account, with the totals for all Individual Accounts
hereunder being equal to the interest of this Contract in Separate Account
(B). (For this purpose, Accumulation Units previously transferred to the
Variable Annuity Account, to be defined, shall be excluded.)
The Company may, by prior agreement with the Contractholder, make certain
charges per Individual Account for accounting and administrative services.
Any such charges shall be withdrawn from the Individual Accounts as due and
transferred by the Company to its regular non-participating assets.
2.4 THE SEPARATE ACCOUNT
All assets of the Separate Account are owned by the Company and the Company
shall not be, nor hold itself out to be, a trustee with respect to such
assets. The assets of the Separate Account equal to the reserves and other
contract liabilities with respect to the Separate Account shall not be
charged with liabilities arising out of any other business the Company may
conduct.
2.5 VALUE OF ACCUMULATION UNITS
The value of an Accumulation Unit on any Valuation Date is equal to the net
asset value of the Separate Account divided by the number of Accumulation
Units outstanding. The net asset value of the Separate Account is the market
value of all securities and other assets, less liabilities of the Separate
Account. Any income tax payable by the Company with respect to the assets of
the Separate Account may be included with other liabilities in determining
net asset value.
Deductions will be made by the Company from the Separate Account for
investment advisory fees and other charges and expenses under agreements
between the Company and the Separate Account which are approved by the vote
of a majority of the Participants in accordance with the Investment Company
Act of 1940 as amended and which are described in current prospectuses for
the Separate Account.
2.6 NUMBER OF ACCUMULATION UNITS
The number of Accumulation Units credited to an Individual Account is
determined by dividing the current contribution (less the percentage charge
stated in Section 2.3) applicable to that Individual Account by the dollar
value of an Accumulation Unit as of the date the contribution is applied.
2.7 TRANSFERS TO AND FROM COMPANION CONTRACT
The Contractholder may, through written direction received by the Company,
have any portion of the interest of this Contract in Separate Account (B)
transferred to the Group Annuity Fund under the Companion Contract, provided
that assets credited to the Variable Annuity account shall not be
transferable, and that such transfers shall be subject to the prior consent
of the Company.
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2.7 TRANSFERS TO AND FROM COMPANION CONTRACT (Continued)
Transfers of sums to this Contract from the Companion Contract may be made
on termination of that Contract, and may be made otherwise prior to the
Effective Annuity Date under special circumstances with the consent of the
Company.
2.8 TERMINATION OF SEPARATE ACCOUNT PARTICIPATION
The Contractholder may, as of any Valuation Date, through written notice
received by the Company at least ten days before such date, elect to
terminate participation of this Contract in Separate Account (B).
Participation of the Contract in Separate Account (B) shall terminate
automatically on the Valuation Date next following termination of the
Companion Contract. Participation of the Contract in Separate Account (B)
shall be immediately terminated on any finding by the District Director of
the Internal Revenue that the annuity benefits hereunder do not meet the
requirements of Section 401 of the Internal Revenue Code. On termination,
each Participant shall have the same options with respect to his Individual
Account as are provided in Section 1.7 of Part I on termination of
participation at the election of the Participant, except that the
"accumulation" option shall not be available if termination was due to tax
disqualification.
2.9 VARIABLE ANNUITIES
Variable Annuities may be provided eligible Participants from the interest
of this Contract in Separate Account (B), subject to the other provisions
of this Contract. Accumulation Units held as reserves for such Variable
Annuities shall be separated by the Company from those held for future
benefits of actively employed Participants, and credited to a Variable
Annuity account. (This account shall also be credited with reserves for
Variable Annuities provided under all other similar contracts issued by the
Company, with all such reserves held in common.) The Company shall
guarantee the mortality and future expense factors of Variable Annuities
hereunder, but the investment element shall be directly related to the
fair value from time to time of the Accumulation Units in the Variable
Annuity account.
2.10 ANNUITY UNITS
The amount of a Variable Annuity shall be measured in Annuity Units. The
number of Annuity Units applicable to each such annuity shall be fixed at
the Participant's Effective Annuity Date, and shall not change thereafter,
unless the annuity shall be of such a form that the amount would change on
the same circumstance if the annuity were a Fixed Annuity.
The monetary value from time to time of an Annuity Unit shall depend on the
current value of an Accumulation Unit, after an adjustment to reflect the
annuity reserve interest rate. The monetary value of an Annuity Unit shall
be defined arbitrarily at $1.00000 on January 1, 1966. On each succeeding
first day of the month, the current monetary value of an Annuity Unit
shall be found by multiplying the value as of the first day of the
preceding month by the following factor:
Monetary Value of an Accumulation Unit at end of previous month
---------------------------------------------------------------
1
--
(1.035)12 Monetary Value of an Accumulation Unit at end of
second preceding month
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2.10 ANNUITY UNITS (Continued)
The ratio of such values of Accumulation Units (without the interest
adjustment) shall be referred to as the "investment rate" for the month in
question. The monetary value of each Annuity Unit shall be computed to the
nearest thousandth of a cent.
2.11 PURCHASE OF VARIABLE ANNUITIES
As of the Valuation Date immediately prior to a Participant's Effective
Annuity Date, the number of Accumulation Units in a Participant's
Individual Account shall be withdrawn by the Company from the account
representing the regular interest of the Contract in Separate Account (B)
and credited by the Company to the Variable Annuity account. A
Participant's initial annuity payment shall then be determined by
multiplying the value of his Individual Account in units of $1,000.00 as
determined on the immediately preceding Valuation Date by the appropriate
settlement option rate contained in Part IV of this Contract. The
Participant's Variable Annuity shall then be translated into a permanent,
fixed number of Annuity Units by dividing the initial annuity payment in
dollars by the monetary value of an Annuity Unit on the Effective Annuity
Date, with the result computed to the nearest one hundredth of a unit.
2.12 PAYMENT OF VARIABLE ANNUITIES
Each Variable Annuity shall be paid to the Participant by the Company on
the continuously varying basis previously defined. Prior to the due date of
each Variable Annuity payment, the Company shall determine the monetary
amount to be then payable by multiplying the number of Annuity Units
provided by the Variable Annuity, by the monetary value of an Annuity Unit
as of the first day of the previous month, and taking the product to the
nearest cent.
The Company shall guarantee the continued payment in full of the Annuity
Units on each Variable Annuity under this Contract, for the payment period
of the form of annuity involved. Not less frequently than once annually,
the Company shall make a valuation of all Variable Annuities in course of
payment hereunder. Any sum in excess of required reserves for future
benefits may be removed by the Company from Separate Account (B) and added
to its non-participating surplus of the required sum from its general
nonparticipating surplus to Separate Account (B) for crediting to the
Variable Annuity account of this Contract.
2.13 SINGLE SUM SETTLEMENTS UNDER VARIABLE ANNUITIES
In the event that remaining guaranteed payments become payable in a single
sum to a Beneficiary, the amount of the payment shall be found by first
obtaining the single sum in terms of Annuity Units, by multiplying the
amount of the annuity in Annuity Units, and the present value factor at
3-1/2% per annum compound interest. The monetary amount of the settlement
will then equal the amount in Annuity Units times the monetary value of an
Annuity Unit on the first day of the month just preceding the date of
settlement.
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2.14 TRANSFER FROM COMPANY
The Contractholder shall have the right to transfer away from the Company,
in one sum on any Valuation Date, the entire interest of the Contract in
Separate Account (B), excepting only funds held for terminated and retired
Participants. In this event, the Company may deduct from the funds prior to
transfer, a sum not greater than 2% thereof.
2.15 TERMINATION OF MANAGEMENT AGREEMENT
In the event that the Committee, pursuant to the provisions of the
Management Agreement between the Company and Separate Account (B), shall
terminate the Management Agreement, the Company shall proceed as follows
with respect to the interest of the Contractholder and Participants in
Separate Account (B). All assets of Separate Account (B) shall be
immediately liquidated by the Company. The values of the Individual
Accounts of all Participants who have not retired, shall be paid to those
Participants by the Company as soon as practicable thereafter. Provided,
that each such Participant shall have the option of requesting that his
share in the proceeds be transferred to the Companion Contract (if being
continued) or to a regular nonparticipating department of the Company, for
application to provide a deferred fixed annuity. The equitable shares in
the proceeds of the Variable Annuity account shall be transferred by the
Company to its regular non-participating department, and applied to provide
fixed annuities to all retired Participants, in the same form, and on the
same actuarial reserve bases as the Variable Annuities then in effect for
the retired Participants. To the extent permitted by the proceeds from
liquidation, the amount of each fixed annuity shall be the same as the last
variable payment received under it.
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PART III
GENERAL PROVISIONS
3.1 ASSIGNMENT OF BENEFITS
The interest of either a Participant or a Beneficiary under this Contract
may not be sold, assigned, discounted or pledged as collateral for a loan
or as security for the performance of an obligation, or for any other
purpose, to any person other than the Company. Such interest, benefits and
payments shall not be subject to any legal process to levy upon or attach
the same, for payment of any claim against any Participant or Beneficiary.
3.2 CERTIFICATES
When a Participant becomes entitled to an annuity benefit hereunder, the
Company will issue an individual certificate to the annuitant describing
the benefit.
3.3 ENTIRE CONTRACT
The Contract and the Application, a copy of which is attached hereto, shall
constitute the entire contract between the parties with respect to Separate
Account (B) and Variable Annuities.
3.4 FACILITY OF PAYMENT
In the event that the Company deems the recipient of any payment hereunder
to be legally incompetent, the Company shall have the right, in settlement
of full liability thereto, to make the payment to such guardian, relative
or other person who, in the Company's opinion, is contributing toward the
support of the recipient.
If a benefit is due on the death of a Participant, and no Beneficiary shall
be named, or if the named Beneficiary shall not survive, the Company may,
in full discharge of its liability, pay such benefit to any one or more of
surviving spouse, parents, children, brother or sister.
3.5 INCLUSION OF ADDITIONAL UNITS
The Contractholder may, with the permission of the Company, include
additional divisions, subsidiaries or other units under the control of the
Contractholder, effective from any Anniversary Date.
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3.6 INFORMATION
The Contractholder shall furnish the Company in writing at its Home Office
with the names and other data reasonably necessary for the administration
of this Contract, and shall notify the Company of all changes affecting
this Contract promptly in writing at its Home Office. The Company shall
have no liability for the payment of any benefit with respect to which the
Contractholder or a Participant has refused to furnish required
information or to submit necessary forms.
3.7 MISSTATEMENTS AND ERRORS
If the date of birth or other information affecting the amount of a benefit
or premium is determined by the Company to have been misstated, adjustments
shall be made by the Company so as to conform with the true facts. If the
amount of an annuity has been understated, a single sum shall be paid to
the annuitant equal to the total in dollars of the errors in annuity
payments made; if an overstatement, annuity payments shall be suspended
until the overpayment in dollars is recovered.
3.8 MODIFICATION OR AMENDMENT
This Contract cannot be modified or amended, nor its provisions waived or
extended, in any respect, except with the written consent of the Company,
in compliance with the laws of the state in which this Contract is issued.
Such written consent must be signed by the President, a Vice-President, the
Secretary or an Assistant Secretary of the Company whose authority will not
be delegated.
With the written consent of the Company, the Contractholder may, at any
time and from time to time, amend this Contract in any respect, without the
consent of any Participant; provided that no such amendment shall deprive
the Participant of any right to benefits accrued under this Contract as of
the effective date of such amendment. The Company may amend the Contract
to conform to applicable Federal or State laws or regulations or to changes
in the operation of the Separate Account which have been approved by vote
of the Participants or by the Separate Account Committee.
3.9 NON-PARTICIPATING
This Contract is non-participating and shall be held with the other
non-participating business of the Company.
3.10 PROOF OF AGE
Notwithstanding the other provisions of this Contract, no annuity shall be
paid unless and until proof of date of birth for the Participant has been
submitted to and accepted by the Company.
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3.11 RESERVES
Reserves for Variable Annuities shall be computed on the Group Annuity
Table for 1951 adjusted and projected, with interest at three and one-half
per cent per annum.
3.12 REVISION OF RATES
The Company reserves the right to revise the annuity premiums herein or to
change the deduction made from new allocations, subject to the following
provisos. No revisions shall be made with respect to annuities in course of
payment, nor shall any revisions be made with respect to the deduction from
allocation of Participants who are covered during the first five contract
years. No revision in premium rates shall be made with respect to
Participants born prior to January 1, 1907. Further, the Company guarantees
that the rates applicable to other Participants covered in the first five
contract years shall not exceed the rates resulting from the following
modifications of those of Table 4.1:
For Participants Born in Period Adjustment
------------------------------- ----------
1-1-07 to 12-31-16, inclusive Rate down one year in age.
1-1-17 ▇▇ ▇▇-▇▇-▇▇ " Rate down two years in age.
1-1-27 and later Rate down three years in age.
Notwithstanding the foregoing, the Company does not in any event guarantee
the annuity rates of this Contract with respect to any funds which the
District Director of Internal Revenue finds not to meet the requirements of
Section 401 of the Internal Revenue Code.
3.13 SETTLEMENTS ON DEATH
Each Participant shall name a Beneficiary, with respect to any benefit
payable hereunder on the death of the Participant. Designations of
Beneficiary shall be made in writing, and shall be held by the Employer,
except for those to be applicable after the retirement of a Participant,
which shall be filed with the Company, in a form satisfactory to the
Company.
A Participant may change a designation of Beneficiary at any time through a
similar procedure. Provided that if a change is required to be filed with
the Company, then on filing it shall relate back to and take effect as of
the date signed, without prejudice to the Company on account of any
payments made by it before receipt of such request.
3.14 ANNUAL REPORTS
The Company will furnish the Contractholder hereunder not less frequently
than annually a statement in writing as to the current value of all
Individual Accounts under this Contract.
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PART IV
TABLE 4.1
Initial Monthly Incomes Provided by Application of $1,000 at
Effective Annuity Date
Option 1 (Normal Form) -- Payable for 10 Years Certain and Life
---------------------------------------------------------------
Retirement Initial Monthly Income
Age Male Female
---------- ------ ---------
55 $ 5.29 $ 4.73
56 5.40 4.82
57 5.51 4.92
58 5.64 5.02
59 5.76 5.13
60 5.90 5.24
61 6.04 5.36
62 6.19 5.49
63 6.34 5.62
64 6.50 5.76
65 6.66 5.91
66 6.83 6.07
67 .7.01 6.23
68 7.19 6.40
69 7.37 6.58
70 7.55 6.76
71 7.73 6.95
72 7.91 7.14
73 8.09 7.34
74 8.27 7.53
75 8.44 7.72
Age is age attained on birthday nearest to Effective Annuity Date. These rates
are guaranteed for all annuity purchases under the Contract for Participants
born prior to January 1, 1907, and for other Participants subject to the
provisions of Section 3.12.
The above rates are applicable where the Company is not required to pay a state
premium tax at the time of annuity purchase. Where such a tax is payable, the
rates shall be adjusted by the amount of tax.
-14-
16
PART IV
TABLE 4.2
Initial Monthly Incomes Provided by Application of $1,000 at
Effective Annuity Date
Option 2 - Payable for 5 Years Certain and Life
-----------------------------------------------
Retirement Initial Monthly Income
Age Male Female
---------- ------ ------
55 $ 5.40 $4.82
56 5.51 4.86
57 5.64 4.96
58 5.78 5.07
59 5.93 5.19
60 6.09 5.31
61 6.26 5.45
62 6.44 5.59
63 6.63 5.74
64 6.84 5.90
65 7.05 6.07
66 7.28 6.26
67 7.53 6.45
68 7.79 6.67
69 8.06 6.89
70 8.35 7.14
71 8.66 7.40
72 8.99 7.69
73 9.33 7.98
74 9.69 8.30
75 10.07 8.65
Age is age attained on birthday nearest to Effective Annuity Date. These rates
are guaranteed for all annuity purchases under the Contract for Participants
born prior to January 1, 1907, and for other Participants subject to the
provisions of Section 3.12.
The above rates are applicable where the Company is not required to pay a state
premium tax at the time of annuity purchase. Where such a tax is payable, the
rates shall be adjusted by the amount of tax.
-15-
17
PART IV
TABLE 4.3
Initial Monthly Incomes Provided by Application of $1,000
at Effective Annuity Date
Option 3 Payable for Life Without Refund
----------------------------------------
Retirement Initial Monthly Income
Age Male Female
----------- ---- ------
55 5.42 4.77
56 5.55 4.87
57 5.69 4.98
58 5.83 5.09
59 5.99 5.21
60 6.15 5.33
61 6.33 5.47
62 6.52 5.62
63 6.73 5.77
64 6.95 5.94
65 7.19 6.12
66 7.44 6.31
67 7.72 6.52
68 8.01 6.75
69 8.32 6.99
70 8.66 7.26
71 9.02 7.55
72 9.42 7.86
73 9.85 8.21
74 10.31 8.57
75 10.81 8.97
Age is age attained on birthday nearest to Effective Annuity Date. These rates
are guaranteed for all annuity purchases under the Contract for Participants
born prior to January 1, 1907, and for other Participants subject to the
provisions of Section 3.12.
The above rates are applicable where the Company is not required to pay a
state premium tax at the time of annuity purchase. Where such a tax is payable,
the rates shall be adjusted by the amount of tax.
-16-
18
PART IV
TABLE 4.4
Initial Monthly Incomes Provided by Application of $1,000 at
Effective Annuity Date
Option 4 - Payable for the Life of the Participant,
and After his death to the Contingent Annuitant for Life
---------------------------------------------------------
Age Age of Female Contingent Annuitant
of
Male 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70
---------------------------------------------------------------------------------------------------------------------
55 $4.37 $4.42 $4.47 $4.51 $4.56 $4.61
56 4.40 4.45 4.50 4.55 4.60 4.65 $4.70
57 4.43 4.48 4.53 4.58 4.64 4.69 4.74 $4.79
58 4.45 4.50 4.56 4.62 4.67 4.73 4.79 4.84 $4.90
59 4.47 4.53 4.59 4.65 4.71 4.77 4.83 4.89 4.95 $5.01
60 4.50 4.56 4.62 4.68 4.74 4.81 4.87 4.93 5.00 5.06 $5.13
61 4.58 4.64 4.71 4.78 4.84 4.91 4.98 5.05 5.12 5.18 $5.25
62 4.67 4.74 4.81 4.88 4.95 5.02 5.10 5.17 5.24 5.32 $5.39
63 4.77 4.84 4.91 4.99 5.07 5.14 5.22 5.30 5.38 5.46 $5.53
64 4.87 4.95 5.03 5.11 5.19 5.27 5.36 5.44 5.52 5.61 $5.69
65 4.98 5.06 5.15 5.23 5.32 5.41 5.50 5.59 5.68 5.77 $5.86
66 5.09 5.18 5.27 5.37 5.46 5.56 5.65 5.75 5.85 5.94
67 5.22 5.32 5.41 5.51 5.61 5.72 5.82 5.92 6.03
68 5.35 5.46 5.56 5.67 5.78 5.89 6.00 6.11
69 5.50 5.61 5.72 5.83 5.95 6.07 6.18
70 5.65 5.77 5.89 6.01 6.14 6.27
Ages are ages nearest birthday to the Effective Annuity Date. These rates are
guaranteed for all annuity purchases under the Contract for Participants and
Contingent Annuitants born prior to January 1, 1907, and for others subject to
the provisions of Section 3.12.
The above rates are applicable where the Company is not required to pay a state
premium tax at the time of annuity purchase. Where such a tax is payable, the
rates shall be adjusted by the amount of tax.
-17
19
PART IV
TABLE 4.5
Initial Monthly Incomes Provided by Application of $1,000 at
Effective Annuity Date
Option 6-Payable over a Predesignated Fixed Period
--------------------------------------------------
Years Quarterly Monthly
Payable Income Income
------- --------- ------
1 $253.23 $84.65
2 128.79 43.05
3 87.33 29.19
4 60.61 22.27
5 54.19 18.12
6 45.92 15.35
7 40.01 13.38
8 35.59 11.90
9 32.16 10.75
10 29.42 9.83
11 27.18 9.09
12 25.32 8.46
13 23.75 7.94
14 22.40 7.49
15 21.24 7.10
16 20.23 6.76
17 19.34 6.47
18 18.55 6.20
19 17.85 5.97
20 17.22 5.75
The above rates are applicable where the Company is not required to pay a state
premium tax at the time of annuity purchase. Where such a tax is payable, the
rates shall be adjusted by the amount of tax.
-18-
20
PART IV
TABLE 4.6
Life Expectancies Based on Mortality Tables Used in Annuity Rates
Applicable to Annuitants Born Prior to 1907
Joint and Survivor with Female Contingent Annuitant
Male Age of Wife
Age at Single Life
Ret. Male Female 60 61 62 63 64 65 66 67 68 69
------ ---- ------ -----------------------------------------------------------------------------------------
55 22.7 27.4
56 21.9 26.5
57 21.1 25.6
58 20.4 24.7
59 19.6 23.8
60 18.8 22.9 25.3 24.7 24.2 23.7 23.2 22.7 22.3 21.9 21.5 21.4
61 18.1 22.1 25.0 24.4 23.8 23.3 22.8 22.3 21.8 21.4 21.0 20.8
62 17.3 21.2 24.7 24.1 23.5 22.9 22.4 21.9 21.4 20.9 20.5 20.3
63 16.6 20.4 24.4 23.8 23.2 22.6 22.0 21.5 21.0 20.5 20.1 19.8
64 15.8 19.5 24.2 23.5 22.9 22.3 21.7 21.1 20.6 20.1 19.7 19.6
65 15.1 18.7 23.9 23.3 22.6 22.0 21.4 20.8 20.3 19.8 19.3 18.8
66 14.4 17.9 23.7 23.0 22.4 21.7 21.1 20.5 20.0 19.4 18.9 18.4
67 13.8 17.1 23.5 22.8 22.1 21.5 20.8 20.2 19.6 19.1 18.6 18.1
68 13.1 16.3 23.4 22.6 21.9 21.3 20.6 20.0 19.4 18.8 18.2 17.7
69 12.5 15.5 23.2 22.5 21.7 21.0 20.4 19.7 19.1 18.5 17.9 17.4
70 11.8 14.8 23.0 22.3 21.6 20.9 20.2 19.5 18.9 18.3 17.7 17.1
71 11.2 14.0
72 10.6 13.3
73 10.1 12.6
74 9.5 11.9
Life expectancies for annuity rates applicable to annuitants born in 1907 and
later can be found through the rate-downs in age specified in Section 3.12 of
the Contract.
-19-