As filed with the Securities and Exchange Registration No. 333-56297
Commission on June 25, 1999 Registration No. 811-2512
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
- --------------------------------------------------------------------------------
POST-EFFECTIVE AMENDMENT NO. 8 TO
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
and Amendment to
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
- --------------------------------------------------------------------------------
Variable Annuity Account B of Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, TS31, Hartford, Connecticut 06156
Depositor's Telephone Number, including Area Code: (860) 273-4686
Julie E. Rockmore, Counsel
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, TS31, Hartford, Connecticut 06156
(Name and Address of Agent for Service)
- --------------------------------------------------------------------------------
It is proposed that this filing will become effective:
60 days after filing pursuant to paragraph (a)(1) of Rule 485
[X] on September 1, 1999 pursuant to paragraph (a)(1) of Rule 485
<PAGE>
VARIABLE ANNUITY ACCOUNT B
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
LOCATION - PROSPECTUS DATED
MAY 3, 1999, AND AS AMENDED
FORM N-4 BY SUPPLEMENTS DATED JUNE 1,
ITEM NO. PART A (PROSPECTUS) 1999 AND SEPTEMBER __, 1999
<S> <C> <C>
1 Cover Page........................................... Cover Page
2 Definitions.......................................... Not Applicable
3 Synopsis............................................. Contract Overview; Fee Table, and as amended
4 Condensed Financial Information...................... Condensed Financial Information; Appendix IV -
Condensed Financial Information
5 General Description of Registrant, Depositor, and Other Topics - The Company; Variable Annuity
Portfolio Companies.................................. Account B; Appendix III - Description of
Underlying Funds, and as amended
6 Deductions and Expenses.............................. Fees, and as amended
7 General Description of Variable Annuity Contracts.... Contract Overview
8 Annuity Period....................................... The Income Phase
9 Death Benefit........................................ Death Benefit, and as amended
10 Purchases and Contract Value......................... Purchase and Rights; Your Account Value
11 Redemptions.......................................... Your Right to Cancel; Systematic Distribution
Options
12 Taxes................................................ Taxation
13 Legal Proceedings.................................... Other Topics - Legal Matters and Proceedings
14 Table of Contents of the Statement of Additional Contents of the Statement of Additional
Information.......................................... Information
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LOCATION - STATEMENT OF
ADDITIONAL INFORMATION, AND
FORM N-4 PART B (STATEMENT OF AS AMENDED BY SUPPLEMENT
ITEM NO. ADDITIONAL INFORMATION) DATED SEPTEMBER __, 1999
<S> <C> <C>
15 Cover Page........................................... Cover page
16 Table of Contents.................................... Table of Contents
17 General Information and History...................... General Information and History
18 Services............................................. General Information and History; Independent
Auditors
19 Purchase of Securities Being Offered................. Offering and Purchase of Contract
20 Underwriters......................................... Offering and Purchase of Contract
21 Calculation of Performance Data...................... Performance Data, and as amended; Average
Annual Total Return Quotations
22 Annuity Payments..................................... Income Phase Payments
23 Financial Statements................................. Financial Statements
</TABLE>
Part C (Other Information)
Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C to this Registration Statement.
<PAGE>
PARTS A AND B
The Prospectus dated May 3, 1999 is incorporated in Part A of this
Post-Effective Amendment No. 8 by reference to Registrant's filing under Rule
497(c) filed on May 6, 1999 (File No. 333-56297). The Statement of Additional
Information (SAI) is incorporated in Part B of this Post-Effective Amendment by
reference to Post-Effective Amendment No. 6 to the Registration Statement on
Form N-4 (File No. 333-56297), as filed on April 14, 1999 and declared effective
on May 3, 1999.
Three Prospectus Supplements, each dated September __, 1999 are included in Part
A of this Post-Effective Amendment. One SAI Supplement dated September __, 1999
is included in Part B of this Post-Effective Amendment.
<PAGE>
VARIABLE ANNUITY ACCOUNT B
Aetna Life Insurance and Annuity Company
Supplement Dated September , 1999
to May 3, 1999 Prospectus
GENERAL DESCRIPTION OF GET G
Series G of the Aetna GET Fund (GET G) is an investment option that may be
available during the accumulation phase of the contract. Aetna Life Insurance
and Annuity Company (the Company, we, our) makes a guarantee, as described
below, when you direct money into GET G. Aeltus Investment Management, Inc.
serves as investment adviser to GET G.
We will offer GET G shares only during its offering period, which is scheduled
to run from September 15, 1999 through the close of business on December 14,
1999. GET G may not be available under your contract, your plan or in your
state. Please read the GET G prospectus for a more complete description of GET
G, including its charges and expenses.
INVESTMENT OBJECTIVE OF GET G
GET G seeks to achieve maximum total return, without compromising a targeted
minimum rate of return, by participating in favorable equity market performance
during its guarantee period.
GET G's guarantee period runs from December 15, 1999 through December 14, 2004.
During the offering period, all GET G assets will be invested in money market
instruments, and during the guarantee period will be invested in a combination
of fixed income and equity securities.
THE GET FUND GUARANTEE
The guarantee period for GET G will end on December 14, 2004 which is GET G's
maturity date. The Company guarantees that the value of an accumulation unit of
the GET G subaccount under the contract on the maturity date (as valued after
the close of business on December 14, 2004) will not be less than its value as
determined after the close of business on the last day of the offering period.
If the value on the maturity date is lower than it was on the last day of the
offering period, we will transfer funds from our general account to the GET G
subaccount to make up the difference. This means that if you remain invested in
GET G until the maturity date, at the maturity date you will receive no less
than the value of your separate account investment directed to GET G as of the
last day of the offering period, less any maintenance fees or any amounts you
transfer or withdraw from the GET G subaccount. The value of dividends or
distributions made by GET G during the guarantee period are not included in the
guarantee, nor does the guarantee promise that you will earn the fund's targeted
minimum rate of return referred to in the investment objective.
If you withdraw or transfer funds from GET G before the maturity date, we will
process the transactions at the actual unit value next determined after we
receive your order. The guarantee will not apply to these amounts or to amounts
deducted as a maintenance fee, if applicable.
MATURITY DATE
Before the maturity date, we will send a notice to each contract holder who has
amounts in GET G. This notice will remind you that the maturity date is
approaching and that you must choose other investment options for your GET G
amounts. If you do not make a choice, on the maturity date we will transfer your
GET G amounts to another available series of the GET Fund that is accepting
deposits. If no GET Fund series is available, we will transfer the account value
to the fund or funds designated by the Company. We will make these transfers as
of the unit value next determined after the transfer.
SUBJECT TO COMPLETION OR AMENDMENT
Information contained herein is subject to completion or amendment. A
registration statement relating to these securities has been filed with the
Securities and Exchange Commission. These securities may not be sold nor may
offers to buy be accepted prior to the time the registration statement becomes
effective. This prospectus supplement shall not constitute an offer to sell or
the solicitation of any offer to buy nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of any
such state.
RH.GETGRETAIL-99 July 1999
<PAGE>
INCOME PHASE
GET G is not available during the income phase. You should not select this
option if you wish to begin income payments or to make other withdrawals or
transfers before the maturity date. You must transfer your GET G account value
to another available investment option before you may elect an income phase
payment option. As stated above, the Company's guarantee will not apply to
amounts you withdraw or transfer before the maturity date.
REINVESTMENT
Some contracts allow you to reinvest all or a portion of the proceeds after a
full withdrawal. If you withdraw amounts from GET G and then elect to reinvest
them, we will reinvest them in a GET Fund series that is then accepting
deposits, if one is available. If one is not available, we will reallocate your
GET G amounts among the other investment options in which you were invested, on
a pro rata basis.
The following information supplements the "Fee Table" contained in the
prospectus:
MAXIMUM FEES DEDUCTED FROM INVESTMENTS IN THE SEPARATE ACCOUNT
In addition to the amounts currently listed under the heading "Fee Table" in the
prospectus, we will make a daily deduction of a GET G Guarantee Charge, equal on
an annual basis to the percentage shown below, from the amounts allocated to the
GET G investment option:
<TABLE>
<S> <C>
GET G Guarantee Charge (deducted daily during the Guarantee Period) ..... 0.50%
Maximum Total Separate Account Expenses .................................. 1.90%(1)
</TABLE>
(1) The total separate account expenses that apply to your contract may be
lower. Please refer to the "Fee Table" section of your prospectus.
The following information supplements the "Fund Expense Table" contained in the
prospectus:
Aetna GET Fund Series G Annual Expenses
(As a percentage of the average net assets)
<TABLE>
<CAPTION>
Investment Total Fund Annual Expenses
Advisory Fees(2) Other Expenses(3) (after expense reimbursement)(4)
---------------- ----------------- --------------------------------
<S> <C> <C> <C>
Aetna GET Fund Series G 0.60% 0.15% 0.75%
</TABLE>
For more information regarding expenses paid out of assets of the fund, see the
GET G prospectus.
The following information supplements the "Hypothetical Examples" contained in
the prospectus.
- -----------------------
(2) The Investment Advisory Fee will be 0.25% during the offering period and
0.60% during the guarantee period.
(3) "Other Expenses" include an annual fund administrative fee of 0.075% of the
average daily net assets of GET G and any additional direct fund expenses.
(4) The investment adviser is contractually obligated through GET G's maturity
date to waive all or a portion of its investment advisory fee and/or its
administrative fee and/or to reimburse a portion of the fund's other
expenses in order to ensure that GET G's Total Fund Annual Expenses do not
exceed 0.75% of the fund's average daily net assets. It is not expected that
GET G's actual expenses without this waiver or reimbursement will exceed
this amount.
<PAGE>
Hypothetical Examples--Aetna GET Fund Series G
THESE EXAMPLES ARE PURELY HYPOTHETICAL. THEY SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES OR EXPECTED RETURN. ACTUAL EXPENSES
AND/OR RETURN MAY BE MORE OR LESS THAN THOSE SHOWN BELOW.
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the GET G
investment option under the contract (until GET G's maturity date) and assume a
5% annual return on the investment.(5)
Example A
---------
If you withdraw your entire account value at the end of the periods shown, you
would pay the following expenses, including any applicable early withdrawal
charge:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years
- ------ ------- -------
<S> <C> <C>
$90 $137 $177
</TABLE>
Example B
---------
If at the end of the periods shown you (1) leave your entire account value
invested or (2) select an income phase payment option, you would pay the
following expenses (no early withdrawal charge is reflected):
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years
- ------ ------- -------
<S> <C> <C>
$27 $83 $142
</TABLE>
- -----------------------
(5) The examples shown above reflect an annual mortality and expense risk charge
of 1.25%, an annual contract administrative expense charge of 0.15%, an
annual GET G guarantee charge of 0.50%, a $30 annual maintenance fee that
has been converted to a percentage of assets equal to 0.022%, and all
charges and expenses of the GET G Fund. Example A reflects an early
withdrawal charge of 7% of the purchase payments at the end of year 1, 6% at
the end of year 3, and 4% at the end of year 5. (The expenses that you would
pay under your contract may be lower. Please refer to the "Fee Table"
section of your prospectus.)
<PAGE>
APPENDIX
DESCRIPTION OF UNDERLYING FUNDS
Aetna GET Fund (Series G)
INVESTMENT OBJECTIVE
Seeks to achieve maximum total return without compromising a minimum targeted
return (Targeted Return) by participating in favorable equity market performance
during the guarantee period, from December 15, 1999 through December 14, 2004,
the maturity date.
POLICIES
Prior to December 15, 1999, assets are invested entirely in money market
instruments. After that date, assets are allocated between equities and fixed
income securities. Equities consist primarily of common stocks. Fixed income
securities consist primarily of short- to intermediate-duration U.S. Government
securities and may also consist of mortgage backed securities and corporate
obligations. The investment adviser uses a proprietary computer model to
determine the percentage of assets to allocate between the fixed and the equity
components. As the value of the equity component declines, more assets are
allocated to the fixed component.
RISKS
The principal risks of investing in GET G are those generally attributable to
stock and bond investing. The success of Series G's strategy depends on the
investment adviser's skill in allocating assets between the equity and fixed
components and in selecting investments within each component. Because Series G
invests in both stocks and bonds, it may underperform stock funds when stocks
are in favor and underperform bond funds when bonds are in favor. The risks
associated with investing in stocks include sudden and unpredictable drops in
the value of the market as a whole and periods of lackluster or negative
performance. The principal risk associated with investing in bonds is that
interest rates may rise, which generally causes bond prices to fall. If at the
inception of, or any time during, the guarantee period interest rates are low,
Series G assets may be largely invested in the fixed component in order to
increase the likelihood of achieving the Targeted Return at the maturity date.
The effect of low interest rates on Series G would likely be more pronounced at
the beginning of the guarantee period as the initial allocation of assets would
include more fixed income securities. In addition, if during the guarantee
period the equity markets experienced a major decline, Series G assets may
become largely invested in the fixed component in order to increase the
likelihood of achieving the Target Return at the maturity date. Use of the fixed
component reduces Series G's ability to participate as fully in upward equity
market movements, and therefore represents some loss of opportunity, or
opportunity cost, compared to a portfolio that is fully invested in equities.
Investment Adviser: Aeltus Investment Management, Inc.
RH.GETGRETAIL-99 July 1999
<PAGE>
VARIABLE ANNUITY ACCOUNT B Aetna Life Insurance and Annuity Company
Supplement dated September , 1999 to the Prospectus dated May 3, 1999 as
amended by Supplement dated May 5, 1999
Aetna Variable Annuity--Group and Individual Deferred Variable Annuity Contracts
The information in this supplement updates and amends certain information
contained in the prospectus dated May 3, 1999 and restates the information
in and replaces the prospectus supplement dated May 5, 1999. You should read
this supplement along with the prospectus.
1. The list of available funds on page 1 of the prospectus is revised to add the
Fidelity Variable Insurance Products Fund (VIP) Growth Portfolio and to
change the names of the three Mitchell Hutchins mutual funds to Mitchell
Hutchins Series Trust Growth and Income Portfolio, Mitchell Hutchins Series
Trust Small Cap Portfolio and Mitchell Hutchins Series Trust Tactical
Allocation Portfolio.
2. The following information replaces the "Option Packages" section on page 4 of
the prospectus:
Option Packages: There are three option packages available under the contract.
You select an option package at the time of application. Each option package is
distinct. The differences are summarized as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
Option Package I Option Package II Option Package III
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mortality and
Expense Risk
Charge(1): 0.80% 1.10% 1.25%
- ------------------------------------------------------------------------------------------------------
Death Benefit(2) The greater of: The greatest of: The greatest of:
on Death of the (1) The sum of all (1) The sum of all (1) The sum of all
Annuitant(3): payments made, payments made, payments made,
adjusted for adjusted for adjusted for amounts
amounts withdrawn or amounts withdrawn or withdrawn or applied
applied to an income applied to an income to an income phase
phase payment as of phase payment as of payment as of the claim
the claim date; or the claim date; or date; or
(2) The account value on (2) The account value on (2) The account value on
the claim date the claim date; or the claim date; or
(3) The "step-up value" (3) The "step-up value"
on the claim date on the claim date; or
(4) The "roll-up value"
on the claim date(4)
- ------------------------------------------------------------------------------------------------------
Minimum Initial Non- Non- Non-
Payment/Account Qualified: Qualified: Qualified: Qualified: Qualified: Qualified:
Value(5): $15,000 $1,500 $5,000 $1,500 $5,000 $1,500
- ------------------------------------------------------------------------------------------------------
Free 10% of your account 10% of your account 10% of your account
Withdrawals(6): value each account value each account value each account
year, non cumulative. year, non cumulative. year, cumulative to a
maximum 30%.
- ------------------------------------------------------------------------------------------------------
Nursing Home
Waiver--Waiver
of Early Withdrawal Not available Available Available
Charge(7):
- ------------------------------------------------------------------------------------------------------
</TABLE>
(1) See "Fee Table" and "Fees."
(2) See "Death Benefit."
(3) When a contract holder is not the annuitant, the amount of the death benefit
is not the same as shown above under each option package. See "Death
Benefit." A contract holder who is not the annuitant should seriously
consider whether Option Packages II and III are suitable for their
circumstances.
(4) The "roll-up value" is not available on contracts issued in the state of New
York. For contracts issued in the state of New York, the benefit payable
upon the death of the annuitant under Option Package III is the same as that
described under Option Package II. Because of this, for contracts issued in
New York an annuitant should consider whether Option Package III meets their
individual investment objectives.
(5) See "Purchase and Rights."
(6) See "Fees."
(7) See "Fees." The Nursing Home Waiver is not available in the state of New
York under any of the three option packages.
Form No.: X.AVAMH-99-1 September 1999
<PAGE>
3. The following information replaces the "Early Withdrawal Charge" section on
page 7 of the prospectus:
Early Withdrawal Charge. (As a percentage of payments withdrawn.)
FOR CONTRACTS ISSUED OUTSIDE OF THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
CONTRACTS OTHER THAN
ROTH IRA CONTRACTS: ROTH IRA CONTRACTS:
- -----------------------------------------------------------------------------------------
Early Early
Years From Receipt Withdrawal Completed Account Withdrawal
of Payment Charge Years Charge
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than 2 7% Less than 1 5%
- -----------------------------------------------------------------------------------------
2 or more but less than 4 6% 1 or more but less than 2 4%
- -----------------------------------------------------------------------------------------
4 or more but less than 5 5% 2 or more but less than 3 3%
- -----------------------------------------------------------------------------------------
5 or more but less than 6 4% 3 or more but less than 4 2%
- -----------------------------------------------------------------------------------------
6 or more but less than 7 3% 4 or more but less than 5 1%
- -----------------------------------------------------------------------------------------
7 or more 0% 5 or more 0%
- -----------------------------------------------------------------------------------------
</TABLE>
FOR CONTRACTS ISSUED IN THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- ---------------------------------------------
FOR ALL CONTRACTS:
- ---------------------------------------------
Early
Years From Receipt Withdrawal
of Payment Charge
- ---------------------------------------------
<S> <C>
Less than 1 7%
- ---------------------------------------------
1 or more but less than 2 6%
- ---------------------------------------------
2 or more but less than 3 5%
- ---------------------------------------------
3 or more but less than 4 4%
- ---------------------------------------------
4 or more but less than 5 3%
- ---------------------------------------------
5 or more but less than 6 2%
- ---------------------------------------------
6 or more but less than 7 1%
- ---------------------------------------------
7 or more 0%
- ---------------------------------------------
</TABLE>
<PAGE>
4. The following replaces the information about the three Mitchell Hutchins
portfolios contained in the "Fund Expense Table" and adds information about
the Fidelity VIP Growth Portfolio on pages 8 and 9 of the prospectus:
Fund Expense Table
<TABLE>
<CAPTION>
Total Fund Net Fund
Annual Annual
Expenses Expenses
Investment Without Total After
Advisory Other Waivers or Waivers and Waivers
Fees(1) Expenses Reductions Reductions or Reductions
---------- -------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Mitchell Hutchins Series Trust
Growth and Income Portfolio
(Class I shares)(4) 0.70% 0.59% 1.29% 0.25% 1.04%
Mitchell Hutchins Series Trust
Small Cap Portfolio
(Class I shares)(4) 1.00% 1.19% 2.19% 0.25% 1.94%
Mitchell Hutchins Series Trust
Tactical Allocation Portfolio
(Class I shares)(4) 0.50% 0.70% 1.20% 0.25% 0.95%
Fidelity VIP Growth Portfolio(5) 0.59% 0.09% 0.68% 0.02% 0.66%
</TABLE>
- -----------------------
(1) Certain of the fund advisers reimburse the company for administrative costs
incurred in connection with administering the funds as variable funding
options under the contract. These reimbursements are generally paid out of
the management fees and are not charged to investors. For the AIM Funds, the
reimbursements may be paid out of the fund assets in an amount up to 0.25%
annually. Any such reimbursements paid from the AIM Funds' assets are
included in the "Other Expenses" column.
(4) The "Other Expenses" and "Total Fund Annual Expenses" are estimated because
there were no Class I shares outstanding as of December 31, 1998. The "Other
Expenses" include an annual 0.25% fee imposed under a distribution plan
pursuant to Rule 12b-1 under the Investment Company Act of 1940. This plan
provides that each portfolio may pay to certain distributors of the
portfolios a distribution fee at an annual rate of up to 0.25% of its
average daily net assets attributable to its Class I shares. Mitchell
Hutchins has voluntarily and temporarily agreed to waive the distribution
fee, however, Mitchell Hutchins reserves the right to discontinue the waiver
of the distribution fee at any time upon notice to shareholders.
(5) A portion of the brokerage commissions that certain funds pay was used to
reduce fund expenses. In addition, certain funds, or the investment adviser
on behalf of certain funds, have entered into arrangements with their
custodian whereby credits realized as a result of uninvested cash balances
were used to reduce custodian expenses. These credits are included under
"Total Waivers and Reductions."
<PAGE>
5. "For Contracts Issued Outside of the State of New York" is added to the top
of each of the hypothetical examples on pages 10 through 15 of the
prospectus.
6. The following hypothetical examples replace the expense information about the
three Mitchell Hutchins portfolios contained in the "Hypothetical Examples"
and add expense information about the Fidelity VIP Growth Portfolio on pages
10 through 15 of the prospectus:
For Contracts Issued Outside of the State of New York
Hypothetical Example: Option Package I--For Contracts Other than ROTH IRA
Contracts
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
I (i.e., mortality and expense risk charge of 0.80%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio $80 $105 $125 $196 $17 $52 $ 90 $196
Mitchell Hutchins Series Trust
Growth and Income Portfolio
(Class I shares) $86 $124 $157 $260 $23 $71 $121 $260
Mitchell Hutchins Series Trust
Small Cap Portfolio (Class I shares) $95 $151 $201 $347 $32 $98 $166 $347
Mitchell Hutchins Series Trust
Tactical Allocation Portfolio
(Class I shares) $85 $121 $152 $251 $22 $68 $117 $251
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued Outside of the State of New York
Hypothetical Example: Option Package I--For ROTH IRA Contracts
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
I (i.e., mortality and expense risk charge of 0.80%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio $53 $ 70 $ 90 $196 $17 $52 $ 90 $196
Mitchell Hutchins Series Trust
Growth and Income Portfolio
(Class I shares) $59 $ 89 $121 $260 $23 $71 $121 $260
Mitchell Hutchins Series Trust
Small Cap Portfolio (Class I shares) $68 $115 $166 $347 $32 $98 $166 $347
Mitchell Hutchins Series Trust
Tactical Allocation Portfolio
(Class I shares) $58 $ 86 $117 $251 $22 $68 $117 $251
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued Outside of the State of New York
Hypothetical Example: Option Package II--For Contracts Other than ROTH IRA
Contracts
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
II (i.e., mortality and expense risk charge of 1.10%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio $83 $115 $141 $228 $20 $ 61 $105 $228
Mitchell Hutchins Series Trust
Growth and Income Portfolio
(Class I shares) $89 $133 $172 $290 $26 $ 80 $136 $290
Mitchell Hutchins Series Trust
Small Cap Portfolio (Class I shares) $98 $160 $216 $374 $32 $106 $180 $374
Mitchell Hutchins Series Trust
Tactical Allocation Portfolio
(Class I shares) $88 $131 $167 $281 $25 $ 77 $132 $281
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued Outside of the State of New York
Hypothetical Example: Option Package II--For ROTH IRA Contracts
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
II (i.e., mortality and expense risk charge of 1.10%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio $56 $ 79 $105 $228 $20 $ 61 $105 $228
Mitchell Hutchins Series Trust
Growth and Income Portfolio
(Class I shares) $62 $ 98 $136 $290 $26 $ 80 $136 $290
Mitchell Hutchins Series Trust
Small Cap Portfolio (Class I shares) $71 $124 $180 $374 $35 $106 $180 $374
Mitchell Hutchins Series Trust
Tactical Allocation Portfolio
(Class I shares) $61 $ 95 $132 $281 $25 $ 77 $132 $281
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued Outside of the State of New York
Hypothetical Example: Option Package III--For Contracts Other than ROTH IRA
Contracts
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
III (i.e., mortality and expense risk charge of 1.25%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio $84 $119 $148 $243 $21 $ 66 $113 $243
Mitchell Hutchins Series Trust
Growth and Income Portfolio
(Class I shares) $90 $138 $179 $304 $27 $ 84 $144 $304
Mitchell Hutchins Series Trust
Small Cap Portfolio (Class I shares) $99 $164 $223 $387 $36 $111 $187 $387
Mitchell Hutchins Series Trust
Tactical Allocation Portfolio
(Class I shares) $89 $135 $175 $296 $27 $ 82 $139 $296
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued Outside of the State of New York
Hypothetical Example: Option Package III--For ROTH IRA Contracts
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
III (i.e., mortality and expense risk charge of 1.25%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio $57 $ 84 $113 $243 $21 $ 66 $113 $243
Mitchell Hutchins Series Trust
Growth and Income Portfolio
(Class I shares) $63 $102 $144 $304 $27 $ 84 $144 $304
Mitchell Hutchins Series Trust
Small Cap Portfolio (Class I shares) $72 $129 $187 $387 $36 $111 $187 $387
Mitchell Hutchins Series Trust
Tactical Allocation Portfolio
(Class I shares) $62 $ 99 $139 $296 $27 $ 82 $139 $296
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
7. The following Hypothetical Examples for contracts issued in the state of New
York are added before the "Condensed Financial Information" section on page
16 of the prospectus:
<PAGE>
For Contracts Issued in the State of New York
Hypothetical Example: Option Package I
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
I (i.e., mortality and expense risk charge of 0.80%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an income
expenses or expected returns. expenses, including any applicable phase payment option, you would
[arrow] Actual expenses and/or returns early withdrawal charge: pay the following expenses (no early
may be more or less than those withdrawal charge is reflected):*
shown in these examples.
- ---------------------------------------- 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Balanced VP, Inc. $70 $ 85 $103 $186 $16 $49 $ 85 $186
Aetna Bond VP $69 $ 82 $ 98 $176 $15 $47 $ 80 $176
Aetna Growth VP $71 $ 90 $111 $203 $18 $54 $ 93 $203
Aetna Growth and Income VP $70 $ 85 $102 $185 $16 $49 $ 85 $185
Aetna Index Plus Large Cap VP $68 $ 81 $ 95 $170 $14 $45 $ 78 $170
Aetna International VP $85 $130 $178 $336 $31 $94 $160 $336
Aetna Money Market VP $67 $ 77 $ 90 $158 $13 $42 $ 72 $158
Aetna Real Estate Securities VP $79 $112 $148 $279 $25 $76 $131 $279
Aetna Small Company VP $73 $ 94 $118 $218 $19 $59 $101 $218
AIM V.I. Capital Appreciation Fund $70 $ 87 $107 $195 $17 $52 $ 89 $195
AIM V.I. Growth Fund $71 $ 89 $110 $200 $17 $53 $ 92 $200
AIM V.I. Growth & Income Fund $70 $ 87 $106 $192 $16 $51 $ 88 $192
AIM V.I. Value Fund $70 $ 87 $106 $193 $17 $51 $ 89 $193
Fidelity VIP Equity-Income Portfolio $70 $ 85 $102 $185 $16 $49 $ 85 $185
Fidelity VIP Growth Portfolio $71 $ 88 $107 $196 $17 $52 $ 90 $196
Fidelity VIP High Income Portfolio $71 $ 88 $108 $198 $17 $53 $ 91 $198
Fidelity VIP II Contrafund Portfolio $71 $ 88 $108 $198 $17 $53 $ 91 $198
Janus Aspen Aggressive Growth Portfolio $71 $ 90 $111 $203 $18 $54 $ 93 $203
Janus Aspen Balanced Portfolio $71 $ 90 $111 $202 $17 $54 $ 93 $202
Janus Aspen Growth Portfolio $71 $ 90 $111 $203 $18 $54 $ 93 $203
Janus Aspen Worldwide Growth Portfolio $71 $ 90 $111 $202 $17 $54 $ 93 $202
MFS Total Return Series $73 $ 95 $119 $220 $19 $59 $102 $220
Mitchell Hutchins Series Trust Growth
and Income Portfolio (Class I Shares) $77 $106 $139 $260 $23 $71 $121 $260
Mitchell Hutchins Series Trust
Small Cap Portfolio (Class I Shares) $86 $133 $183 $347 $32 $98 $166 $347
Mitchell Hutchins Series Trust
Tactical Allocation Portfolio
(Class I Shares) $76 $104 $134 $251 $22 $68 $117 $251
Oppenheimer Aggressive Growth
Fund/VA $71 $ 89 $109 $199 $17 $53 $ 91 $199
Oppenheimer Main Street Growth
& Income Fund/VA $72 $ 91 $113 $208 $18 $55 $ 96 $208
Oppenheimer Strategic Bond Fund/VA $72 $ 91 $114 $209 $18 $56 $ 96 $209
Portfolio Partners MFS Emerging
Equities Portfolio $72 $ 92 $114 $210 $18 $56 $ 96 $210
Portfolio Partners MFS Research
Growth Portfolio $72 $ 93 $116 $214 $19 $57 $ 99 $214
Portfolio Partners MFS Value Equity
Portfolio $73 $ 94 $119 $219 $19 $59 $101 $219
Portfolio Partners Scudder
International Growth Portfolio $74 $ 98 $124 $230 $20 $62 $106 $230
</TABLE>
- -----------------------
* This example does not apply during the income phase if you selected a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the lump
sum payment is treated as a withdrawal during the accumulation phase and may
be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued in the State of New York
Hypothetical Example: Option Package II
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
II (i.e., mortality and expense risk charge of 1.10%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an income
expenses or expected returns. expenses, including any applicable phase payment option, you would
[arrow] Actual expenses and/or returns early withdrawal charge: pay the following expenses (no early
may be more or less than those withdrawal charge is reflected):*
shown in these examples.
- ---------------------------------------- 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Balanced VP, Inc. $73 $ 94 $118 $218 $19 $ 59 $101 $218
Aetna Bond VP $72 $ 91 $114 $209 $18 $ 56 $ 96 $209
Aetna Growth VP $74 $ 99 $127 $235 $21 $ 63 $109 $235
Aetna Growth and Income VP $73 $ 94 $118 $217 $19 $ 58 $100 $217
Aetna Index Plus Large Cap VP $71 $ 90 $111 $203 $18 $ 54 $ 93 $203
Aetna International VP $88 $139 $192 $363 $34 $103 $174 $363
Aetna Money Market VP $70 $ 86 $105 $191 $16 $ 51 $ 88 $191
Aetna Real Estate Securities VP $82 $121 $163 $308 $28 $ 85 $146 $308
Aetna Small Company VP $76 $103 $134 $250 $22 $ 68 $116 $250
AIM V.I. Capital Appreciation Fund $74 $ 97 $122 $227 $20 $ 61 $105 $227
AIM V.I. Growth Fund $74 $ 98 $125 $232 $20 $ 63 $107 $232
AIM V.I. Growth & Income Fund $73 $ 96 $121 $225 $20 $ 60 $104 $225
AIM V.I. Value Fund $73 $ 96 $122 $226 $20 $ 61 $104 $226
Fidelity VIP Equity-Income Portfolio $73 $ 94 $118 $217 $19 $ 58 $100 $217
Fidelity VIP Growth Portfolio $74 $ 97 $123 $228 $20 $ 61 $105 $228
Fidelity VIP High Income Portfolio $74 $ 98 $124 $230 $20 $ 62 $106 $230
Fidelity VIP II Contrafund Portfolio $74 $ 98 $124 $230 $20 $ 62 $106 $230
Janus Aspen Aggressive Growth Portfolio $74 $ 99 $127 $235 $21 $ 63 $109 $235
Janus Aspen Balanced Portfolio $74 $ 99 $126 $234 $20 $ 63 $108 $234
Janus Aspen Growth Portfolio $74 $ 99 $127 $235 $21 $ 63 $109 $235
Janus Aspen Worldwide Growth Portfolio $74 $ 99 $126 $234 $20 $ 63 $108 $234
MFS Total Return Series $76 $104 $135 $252 $22 $ 68 $117 $252
Mitchell Hutchins Series Trust Growth
and Income Portfolio (Class I Shares) $80 $115 $154 $290 $26 $ 80 $136 $290
Mitchell Hutchins Series Trust Small
Cap Portfolio (Class I Shares) $89 $142 $198 $374 $35 $106 $180 $374
Mitchell Hutchins Series Trust Tactical
Allocation Portfolio (Class I Shares) $79 $113 $149 $281 $25 $ 77 $132 $281
Oppenheimer Aggressive Growth
Fund/VA $74 $ 98 $125 $231 $20 $ 62 $107 $231
Oppenheimer Main Street Growth &
Income Fund/VA $75 $100 $129 $239 $21 $ 65 $111 $239
Oppenheimer Strategic Bond Fund/VA $75 $101 $129 $240 $21 $ 65 $111 $240
Portfolio Partners MFS Emerging
Equities Portfolio $75 $101 $130 $241 $21 $ 65 $112 $241
Portfolio Partners MFS Research
Growth Portfolio $75 $102 $132 $245 $22 $ 66 $114 $245
Portfolio Partners MFS Value Equity
Portfolio $76 $104 $134 $251 $22 $ 68 $117 $251
Portfolio Partners Scudder
International Growth Portfolio $77 $107 $139 $261 $23 $ 71 $122 $261
</TABLE>
- -----------------------
* This example does not apply during the income phase if you selected a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the lump
sum payment is treated as a withdrawal during the accumulation phase and may
be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued in the State of New York
Hypothetical Example: Option Package III
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
III (i.e., mortality and expense risk charge of 1.25%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an income
expenses or expected returns. expenses, including any applicable phase payment option, you would
[arrow] Actual expenses and/or returns early withdrawal charge: pay the following expenses (no early
may be more or less than those withdrawal charge is reflected):*
shown in these examples.
- ---------------------------------------- 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Balanced VP, Inc. $74 $ 99 $126 $234 $20 $ 63 $108 $234
Aetna Bond VP $73 $ 96 $121 $225 $20 $ 60 $104 $225
Aetna Growth VP $76 $104 $134 $251 $22 $ 68 $117 $251
Aetna Growth and Income VP $74 $ 98 $126 $233 $20 $ 63 $108 $233
Aetna Index Plus Large Cap VP $73 $ 94 $119 $219 $19 $ 59 $101 $219
Aetna International VP $89 $143 $199 $377 $35 $107 $181 $377
Aetna Money Market VP $72 $ 91 $113 $208 $18 $ 55 $ 96 $208
Aetna Real Estate Securities VP $83 $126 $171 $323 $29 $ 90 $153 $323
Aetna Small Company VP $77 $108 $141 $265 $23 $ 72 $124 $265
AIM V.I. Capital Appreciation Fund $75 $101 $130 $242 $21 $ 66 $112 $242
AIM V.I. Growth Fund $76 $103 $133 $247 $22 $ 67 $115 $247
AIM V.I. Growth & Income Fund $75 $101 $129 $240 $21 $ 65 $111 $240
AIM V.I. Value Fund $75 $101 $130 $241 $21 $ 65 $112 $241
Fidelity VIP Equity-Income Portfolio $74 $ 98 $126 $233 $20 $ 63 $108 $233
Fidelity VIP Growth Portfolio $75 $101 $131 $243 $21 $ 66 $113 $243
Fidelity VIP High Income Portfolio $75 $102 $132 $245 $22 $ 66 $114 $245
Fidelity VIP II Contrafund Portfolio $75 $102 $132 $245 $22 $ 66 $114 $245
Janus Aspen Aggressive Growth Portfolio $76 $104 $134 $251 $22 $ 68 $117 $251
Janus Aspen Balanced Portfolio $76 $103 $134 $250 $22 $ 68 $116 $250
Janus Aspen Growth Portfolio $76 $104 $134 $251 $22 $ 68 $117 $251
Janus Aspen Worldwide Growth Portfolio $76 $103 $134 $250 $22 $ 68 $116 $250
MFS Total Return Series $77 $108 $142 $267 $24 $ 73 $125 $267
Mitchell Hutchins Series Trust Growth
and Income Portfolio (Class I Shares) $81 $120 $161 $304 $27 $ 84 $144 $304
Mitchell Hutchins Series Trust Small
Cap Portfolio (Class I Shares) $90 $146 $205 $387 $36 $111 $187 $387
Mitchell Hutchins Series Trust Tactical
Allocation Portfolio (Class I Shares) $80 $117 $157 $296 $27 $ 82 $139 $296
Oppenheimer Aggressive Growth
Fund/VA $75 $102 $132 $246 $22 $ 67 $115 $246
Oppenheimer Main Street Growth &
Income Fund/VA $76 $105 $136 $255 $22 $ 69 $119 $255
Oppenheimer Strategic Bond Fund/VA $76 $105 $137 $256 $23 $ 69 $119 $256
Portfolio Partners MFS Emerging
Equities Portfolio $76 $105 $137 $257 $23 $ 70 $119 $257
Portfolio Partners MFS Research
Growth Portfolio $77 $107 $139 $261 $23 $ 71 $122 $261
Portfolio Partners MFS Value Equity
Portfolio $77 $108 $142 $266 $24 $ 73 $124 $266
Portfolio Partners Scudder
International Growth Portfolio $78 $111 $147 $276 $25 $ 76 $129 $276
</TABLE>
- -----------------------
* This example does not apply during the income phase if you selected a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the lump
sum payment is treated as a withdrawal during the accumulation phase and may
be subject to an early withdrawal charge (refer to Example A).
<PAGE>
8. The following information replaces the "Limits on How Many Investment Options
You May Select" section on page 17 of the prospectus:
Limits on How Many Investment Options You May Select. Although there is
currently no limit, we reserve the right to limit the number of investment
options you may select at any one time or during the accumulation phase.
9. The following information replaces the final paragraph of the "Payment
Amounts" section on page 20 of the prospectus:
Any additional payments must be at least $50 (we may change this amount from
time to time). A payment of more than $1,000,000 will be allowed only with our
consent.
10. The following information replaces the "Early Withdrawal Charge Schedules"
section on page 24 of the prospectus:
Early Withdrawal Charge Schedules
FOR CONTRACTS ISSUED OUTSIDE OF THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
CONTRACTS OTHER THAN
ROTH IRA CONTRACTS: ROTH IRA CONTRACTS:
- -----------------------------------------------------------------------------------------------------
Years From Receipt Early Withdrawal Completed Account Early Withdrawal
of Payment Charge Years Charge
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than 2 7% Less than 1 5%
- -----------------------------------------------------------------------------------------------------
2 or more but less than 4 6% 1 or more but less than 2 4%
- -----------------------------------------------------------------------------------------------------
4 or more but less than 5 5% 2 or more but less than 3 3%
- -----------------------------------------------------------------------------------------------------
5 or more but less than 6 4% 3 or more but less than 4 2%
- -----------------------------------------------------------------------------------------------------
6 or more but less than 7 3% 4 or more but less than 5 1%
- -----------------------------------------------------------------------------------------------------
7 or more 0% 5 or more 0%
- -----------------------------------------------------------------------------------------------------
</TABLE>
FOR CONTRACTS ISSUED IN THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- ---------------------------------------------------
FOR ALL CONTRACTS
- ---------------------------------------------------
Years From Receipt Early Withdrawal
of Payment Charge
- ---------------------------------------------------
<S> <C>
Less than 1 7%
- ---------------------------------------------------
1 or more but less than 2 6%
- ---------------------------------------------------
2 or more but less than 3 5%
- ---------------------------------------------------
3 or more but less than 4 4%
- ---------------------------------------------------
4 or more but less than 5 3%
- ---------------------------------------------------
5 or more but less than 6 2%
- ---------------------------------------------------
6 or more but less than 7 1%
- ---------------------------------------------------
7 or more 0%
- ---------------------------------------------------
</TABLE>
11. The following information replaces the "First In, First Out" section on page
24 of the prospectus:
First In, First Out. The early withdrawal charge is calculated separately for
each payment withdrawn. For purposes of calculating your early withdrawal
charge, we consider that your first payment to the account (first in) is the
first you withdraw (first out).
For example: For contracts other than Roth IRAs issued outside of the state of
New York, we calculate the early withdrawal charge based upon the number of
years since the payment was received. If your initial payment was made three
years ago, we will deduct an early withdrawal charge equal to 6% of the portion
of that payment withdrawn. The next time you make a withdrawal we will assess
the charge against the portion of the first payment that you did not withdraw
and/or your subsequent payments to your account in the order they were received.
For Roth IRAs issued outside of the state of New York, we will calculate the
early withdrawal charge based upon the number of completed account years. If
your initial payment was made three years ago, we will deduct an early
withdrawal charge equal to 2% of the portion of that payment withdrawn. The next
time you make a withdrawal we will assess the charge against the portion of the
first payment that you did not withdraw and/or your subsequent payments to your
account in the order they were received.
Earnings may be withdrawn after all payments have been withdrawn. There is no
early withdrawal charge for withdrawal of earnings.
<PAGE>
12. The following information replaces the first paragraph of the "Free
Withdrawals" section on page 26 of the prospectus:
There is no early withdrawal charge if, during each account year, the amount
withdrawn is 10% or less of your account value on the later of the date we
established your account or the most recent anniversary of that date. Under
Option Package III, any unused percentage of the 10% free withdrawal amount
shall carry forward into successive account years, up to a maximum 30% of your
account value.
13. The following information replaces the fourth item in the "Waiver" section
on page 25 of the prospectus:
[arrow] Taken because of the election of a systematic distribution option, but,
with respect to the Systematic Withdrawal Option (SWO) and the Life
Expectancy Option (LEO), only to the extent that the amount taken is 10%
or less of your account value on the later of the date we established
your account or the most recent anniversary of that date (See
"Systematic Distribution Options")
14. The following information replaces the "Reduction or Elimination" section on
page 25 of the prospectus:
Reduction or Elimination. We may reduce or eliminate the early withdrawal
charge if we anticipate savings on our administrative expenses due to any one
of the following:
[arrow] The size and type of group to whom the contract is offered
[arrow] The amount of expected payments
[arrow] A prior or existing relationship with the Company such as being an
employee of the Company or any affiliate, receiving distributions or
making transfers from other contracts issued by us, or transferring
amounts held under qualified retirement plans sponsored by us or one of
our affiliates
In the case of an exchange of another contract issued by us or one of our
affiliates where the early withdrawal charge has been waived, the early
withdrawal charge for certain contracts offered by this prospectus may be
determined based on the dates payments were received under the prior contract.
We will not unfairly discriminate against any person if we reduce or eliminate
the early withdrawal charge. The right to reduce or eliminate the early
withdrawal charge is subject to state approval.
15. The following information replaces the last paragraph of the "Nursing Home
Waiver" section on page 26 of the prospectus:
We will not waive the early withdrawal charge if the annuitant was in a nursing
care facility for at least one day during the two week period immediately
preceding or following the schedule effective date. The waiver will also not
apply to contracts issued in the state of New York or as otherwise prohibited by
state law.
16. The first paragraph on page 27 of the prospectus is replaced with the
following:
If the amount we deduct for this fee is not enough to cover our mortality costs
and expenses under the contract, we will bear the loss. We may use any excess to
recover distribution costs relating to the contract and as a source of profit.
We expect to make a profit from this fee.
17. The first item under "Mortality and Expense Risk Charge -- Reduction" on
page 27 of the prospectus is replaced with the following:
[arrow] The size and type of the group to whom the contract is offered, such as
a group made up of employees or former employees of the Company or one
of its affiliates
18. The following paragraph is added after the second paragraph in the "Roll-up
Value" section on page 35 of the prospectus:
The "roll-up value" is not available on contracts issued in the state of New
York. For contracts issued in the state of New York, the benefit payable upon
the death of the annuitant under Option Package III is the same as that
described under Option Package II. Because of this, for contracts issued in New
York the annuitant should consider whether Option Package III meets their
individual investment objectives.
19. The following information is added to Appendix III, Description of
Underlying Funds:
Fidelity Variable Insurance Products Fund--Growth Portfolio
Investment Objective
Seeks capital appreciation.
<PAGE>
Policies
Normally invests primarily in common stocks of companies the investment adviser
believes have above-average growth potential. Companies with high growth
potential tend to be companies with higher than average price/ earning (P/E)
ratios and are often called "growth" stocks. May invest in securities of both
foreign and domestic issuers. In making investment decisions, the investment
adviser relies on fundamental analysis of each issuer and its potential for
success in light of its current financial condition, its industry position, and
economic and market conditions. May use various techniques, such as buying and
selling futures contracts, to increase or decrease exposure to changing security
prices, or other factors that affect security values.
Risks
The value of equity securities fluctuates in response to issuer, political,
market and economic developments. In the short term, equity prices can fluctuate
dramatically in response to these developments. Foreign investments, especially
those in emerging markets, can be more volatile and potentially less liquid than
U.S. investments due to increased risks of adverse issuer, political,
regulatory, market or economic developments. "Growth" stocks tend to be
sensitive to changes in their earnings and more volatile than other types of
stocks.
Investment Adviser: Fidelity Management & Research Company
20. The names of each of the three Mitchell Hutchins funds contained in Appendix
III, Description of Underlying Funds, are corrected to read:
o Mitchell Hutchins Series Trust Growth and Income Portfolio
o Mitchell Hutchins Series Trust Tactical Allocation Portfolio
o Mitchell Hutchins Series Trust Small Cap Portfolio
Form No.: X.AVAMH-99-1 September 1999
<PAGE>
VARIABLE ANNUITY ACCOUNT B Aetna Life Insurance and Annuity Company
Supplement dated September , 1999 to the Prospectus dated May 3, 1999
Aetna Variable Annuity--Group and Individual Deferred Variable Annuity Contracts
The information in this supplement updates and amends certain information
contained in the prospectus dated May 3, 1999. You should read this supplement
along with the prospectus.
1. The following mutual fund is added to the list of available funds on page 1
of the prospectus: Fidelity Variable Insurance Products (VIP) Growth
Portfolio.
2. The following information replaces the "Option Packages" section on page 4 of
the prospectus:
Option Packages: There are three option packages available under the contract.
You select an option package at the time of application. Each option package is
distinct. The differences are summarized as follows:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
Option Package I Option Package II Option Package III
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Mortality and
Expense Risk
Charge(1): 0.80% 1.10% 1.25%
- ------------------------------------------------------------------------------------------------------
Death Benefit(2) The greater of: The greatest of: The greatest of:
on Death of the (1) The sum of all (1) The sum of all (1) The sum of all
Annuitant(3): payments made, payments made, payments made,
adjusted for adjusted for adjusted for amounts
amounts withdrawn or amounts withdrawn or withdrawn or applied
applied to an income applied to an income to an income phase
phase payment as of phase payment as of payment as of the claim
the claim date; or the claim date; or date; or
(2) The account value on (2) The account value on (2) The account value on
the claim date the claim date; or the claim date; or
(3) The "step-up value" (3) The "step-up value"
on the claim date on the claim date; or
(4) The "roll-up value"
on the claim date(4)
- ------------------------------------------------------------------------------------------------------
Minimum Initial Non- Non- Non-
Payment/Account Qualified: Qualified: Qualified: Qualified: Qualified: Qualified:
Value(5): $15,000 $1,500 $5,000 $1,500 $5,000 $1,500
- ------------------------------------------------------------------------------------------------------
Free 10% of your account 10% of your account 10% of your account
Withdrawals(6): value each account value each account value each account
year, non cumulative. year, non cumulative. year, cumulative to a
maximum 30%.
- ------------------------------------------------------------------------------------------------------
Nursing Home
Waiver--Waiver
of Early Withdrawal Not available Available Available
Charge(7):
- ------------------------------------------------------------------------------------------------------
</TABLE>
(1) See "Fee Table" and "Fees."
(2) See "Death Benefit."
(3) When a contract holder is not the annuitant, the amount of the death benefit
is not the same as shown above under each option package. See "Death
Benefit." A contract holder who is not the annuitant should seriously
consider whether Option Packages II and III are suitable for their
circumstances.
(4) The "roll-up value" is not available on contracts issued in the state of New
York. For contracts issued in the state of New York, the benefit payable
upon the death of the annuitant under Option Package III is the same as that
described under Option Package II. Because of this, for contracts issued in
New York an annuitant should consider whether Option Package III meets their
individual investment objectives.
(5) See "Purchase and Rights."
(6) See "Fees."
(7) See "Fees." The Nursing Home Waiver is not available in the state of New
York under any of the three option packages.
Form No.: X.56297-99 September 1999
<PAGE>
3. The following information replaces the "Early Withdrawal Charge" section on
page 7 of the prospectus:
Early Withdrawal Charge. (As a percentage of payments withdrawn.)
FOR CONTRACTS ISSUED OUTSIDE OF THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
CONTRACTS OTHER THAN
ROTH IRA CONTRACTS: ROTH IRA CONTRACTS:
- -----------------------------------------------------------------------------------------
Early Early
Years From Receipt Withdrawal Completed Account Withdrawal
of Payment Charge Years Charge
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than 2 7% Less than 1 5%
- -----------------------------------------------------------------------------------------
2 or more but less than 4 6% 1 or more but less than 2 4%
- -----------------------------------------------------------------------------------------
4 or more but less than 5 5% 2 or more but less than 3 3%
- -----------------------------------------------------------------------------------------
5 or more but less than 6 4% 3 or more but less than 4 2%
- -----------------------------------------------------------------------------------------
6 or more but less than 7 3% 4 or more but less than 5 1%
- -----------------------------------------------------------------------------------------
7 or more 0% 5 or more 0%
- -----------------------------------------------------------------------------------------
</TABLE>
FOR CONTRACTS ISSUED IN THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- ---------------------------------------------
FOR ALL CONTRACTS:
- ---------------------------------------------
Early
Years From Receipt Withdrawal
of Payment Charge
- ---------------------------------------------
<S> <C>
Less than 1 7%
- ---------------------------------------------
1 or more but less than 2 6%
- ---------------------------------------------
2 or more but less than 3 5%
- ---------------------------------------------
3 or more but less than 4 4%
- ---------------------------------------------
4 or more but less than 5 3%
- ---------------------------------------------
5 or more but less than 6 2%
- ---------------------------------------------
6 or more but less than 7 1%
- ---------------------------------------------
7 or more 0%
- ---------------------------------------------
</TABLE>
<PAGE>
4. The following adds information about the Fidelity VIP Growth Portfolio on
pages 8 and 9 of the prospectus:
Fund Expense Table
<TABLE>
<CAPTION>
Total Fund Net Fund
Annual Annual
Expenses Expenses
Investment Without Total After
Advisory Other Waivers or Waivers and Waivers
Fees(1) Expenses Reductions Reductions or Reductions
---------- -------- ---------- ----------- -------------
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio(5) 0.59% 0.09% 0.68% 0.02% 0.66%
</TABLE>
- -----------------------
(1) Certain of the fund advisers reimburse the company for administrative costs
incurred in connection with administering the funds as variable funding
options under the contract. These reimbursements are generally paid out of
the management fees and are not charged to investors. For the AIM Funds, the
reimbursements may be paid out of the fund assets in an amount up to 0.25%
annually. Any such reimbursements paid from the AIM Funds' assets are
included in the "Other Expenses" column.
(5) A portion of the brokerage commissions that certain funds pay was used to
reduce fund expenses. In addition, certain funds, or the investment adviser
on behalf of certain funds, have entered into arrangements with their
custodian whereby credits realized as a result of uninvested cash balances
were used to reduce custodian expenses. These credits are included under
"Total Waivers and Reductions."
5. "For Contracts Issued Outside of the State of New York" is added to the top
of each of the hypothetical examples on pages 10 through 15 of the
prospectus.
6. The following hypothetical examples add expense information about the
Fidelity VIP Growth Portfolio on pages 10 through 15 of the prospectus:
For Contracts Issued Outside of the State of New York
Hypothetical Example: Option Package I--For Contracts Other than ROTH IRA
Contracts
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
I (i.e., mortality and expense risk charge of 0.80%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio $80 $105 $125 $196 $17 $52 $90 $196
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued Outside of the State of New York
Hypothetical Example: Option Package I--For ROTH IRA Contracts
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
I (i.e., mortality and expense risk charge of 0.80%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio $53 $70 $90 $196 $17 $52 $90 $196
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
For Contracts Issued Outside of the State of New York
Hypothetical Example: Option Package II--For Contracts Other than ROTH IRA
Contracts
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
II (i.e., mortality and expense risk charge of 1.10%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio $83 $115 $141 $228 $20 $61 $105 $228
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued Outside of the State of New York
Hypothetical Example: Option Package II--For ROTH IRA Contracts
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
II (i.e., mortality and expense risk charge of 1.10%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio $56 $79 $105 $228 $20 $61 $105 $228
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
For Contracts Issued Outside of the State of New York
Hypothetical Example: Option Package III--For Contracts Other than ROTH IRA
Contracts
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
III (i.e., mortality and expense risk charge of 1.25%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio $84 $119 $148 $243 $21 $66 $113 $243
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued Outside of the State of New York
Hypothetical Example: Option Package III--For ROTH IRA Contracts
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
III (i.e., mortality and expense risk charge of 1.25%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio $57 $84 $113 $243 $21 $66 $113 $243
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
7. The following Hypothetical Examples for contracts issued in the state of New
York are added before the "Condensed Financial Information" section on page
16 of the prospectus:
<PAGE>
For Contracts Issued in the State of New York
Hypothetical Example: Option Package I
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
I (i.e., mortality and expense risk charge of 0.80%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Balanced VP, Inc. $70 $ 85 $103 $186 $16 $49 $ 85 $186
Aetna Bond VP $69 $ 82 $ 98 $176 $15 $47 $ 80 $176
Aetna Growth VP $71 $ 90 $111 $203 $18 $54 $ 93 $203
Aetna Growth and Income VP $70 $ 85 $102 $185 $16 $49 $ 85 $185
Aetna Index Plus Large Cap VP $68 $ 81 $ 95 $170 $14 $45 $ 78 $170
Aetna International VP $85 $130 $178 $336 $31 $94 $160 $336
Aetna Money Market VP $67 $ 77 $ 90 $158 $13 $42 $ 72 $158
Aetna Real Estate Securities VP $79 $112 $148 $279 $25 $76 $131 $279
Aetna Small Company VP $73 $ 94 $118 $218 $19 $59 $101 $218
AIM V.I. Capital Appreciation Fund $70 $ 87 $107 $195 $17 $52 $ 89 $195
AIM V.I. Growth Fund $71 $ 89 $110 $200 $17 $53 $ 92 $200
AIM V.I. Growth & Income Fund $70 $ 87 $106 $192 $16 $51 $ 88 $192
AIM V.I. Value Fund $70 $ 87 $106 $193 $17 $51 $ 89 $193
Fidelity VIP Equity-Income Portfolio $70 $ 85 $102 $185 $16 $49 $ 85 $185
Fidelity VIP Growth Portfolio $71 $ 88 $107 $196 $17 $52 $ 90 $196
Fidelity VIP High Income Portfolio $71 $ 88 $108 $198 $17 $53 $ 91 $198
Fidelity VIP II Contrafund Portfolio $71 $ 88 $108 $198 $17 $53 $ 91 $198
Janus Aspen Aggressive Growth
Portfolio $71 $ 90 $111 $203 $18 $54 $ 93 $203
Janus Aspen Balanced Portfolio $71 $ 90 $111 $202 $17 $54 $ 93 $202
Janus Aspen Growth Portfolio $71 $ 90 $111 $203 $18 $54 $ 93 $203
Janus Aspen Worldwide Growth
Portfolio $71 $ 90 $111 $202 $17 $54 $ 93 $202
MFS Total Return Series $73 $ 95 $119 $220 $19 $59 $102 $220
Oppenheimer Aggressive Growth
Fund/VA $71 $ 89 $109 $199 $17 $53 $ 91 $199
Oppenheimer Main Street Growth
& Income Fund/VA $72 $ 91 $113 $208 $18 $55 $ 96 $208
Oppenheimer Strategic Bond Fund/VA $72 $ 91 $114 $209 $18 $56 $ 96 $209
Portfolio Partners MFS Emerging
Equities Portfolio $72 $ 92 $114 $210 $18 $56 $ 96 $210
Portfolio Partners MFS Research
Growth Portfolio $72 $ 93 $116 $214 $19 $57 $ 99 $214
Portfolio Partners MFS Value
Equity Portfolio $73 $ 94 $119 $219 $19 $59 $101 $219
Portfolio Partners Scudder
International Growth Portfolio $74 $ 98 $124 $230 $20 $62 $106 $230
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued in the State of New York:
Hypothetical Example: Option Package II
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
II (i.e., mortality and expense risk charge of 1.10%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Balanced VP, Inc. $73 $ 94 $118 $218 $19 $ 59 $101 $218
Aetna Bond VP $72 $ 91 $114 $209 $18 $ 56 $ 96 $209
Aetna Growth VP $74 $ 99 $127 $235 $21 $ 63 $109 $235
Aetna Growth and Income VP $73 $ 94 $118 $217 $19 $ 58 $100 $217
Aetna Index Plus Large Cap VP $71 $ 90 $111 $203 $18 $ 54 $ 93 $203
Aetna International VP $88 $139 $192 $363 $34 $103 $174 $363
Aetna Money Market VP $70 $ 86 $105 $191 $16 $ 51 $ 88 $191
Aetna Real Estate Securities VP $82 $121 $163 $308 $28 $ 85 $146 $308
Aetna Small Company VP $76 $103 $134 $250 $22 $ 68 $116 $250
AIM V.I. Capital Appreciation Fund $74 $ 97 $122 $227 $20 $ 61 $105 $227
AIM V.I. Growth Fund $74 $ 98 $125 $232 $20 $ 63 $107 $232
AIM V.I. Growth & Income Fund $73 $ 96 $121 $225 $20 $ 60 $104 $225
AIM V.I. Value Fund $73 $ 96 $122 $226 $20 $ 61 $104 $226
Fidelity VIP Equity-Income Portfolio $73 $ 94 $118 $217 $19 $ 58 $100 $217
Fidelity VIP Growth Portfolio $74 $ 97 $123 $228 $20 $ 61 $105 $228
Fidelity VIP High Income Portfolio $74 $ 98 $124 $230 $20 $ 62 $106 $230
Fidelity VIP II Contrafund Portfolio $74 $ 98 $124 $230 $20 $ 62 $106 $230
Janus Aspen Aggressive Growth
Portfolio $74 $ 99 $127 $235 $21 $ 63 $109 $235
Janus Aspen Balanced Portfolio $74 $ 99 $126 $234 $20 $ 63 $108 $234
Janus Aspen Growth Portfolio $74 $ 99 $127 $235 $21 $ 63 $109 $235
Janus Aspen Worldwide Growth
Portfolio $74 $ 99 $126 $234 $20 $ 63 $108 $234
MFS Total Return Series $76 $104 $135 $252 $22 $ 68 $117 $252
Oppenheimer Aggressive Growth
Fund/VA $74 $ 98 $125 $231 $20 $ 62 $107 $231
Oppenheimer Main Street Growth
& Income Fund/VA $75 $100 $129 $239 $21 $ 65 $111 $239
Oppenheimer Strategic Bond
Fund/VA $75 $101 $129 $240 $21 $ 65 $111 $240
Portfolio Partners MFS Emerging
Equities Portfolio $75 $101 $130 $241 $21 $ 65 $112 $241
Portfolio Partners MFS Research
Growth Portfolio $75 $102 $132 $245 $22 $ 66 $114 $245
Portfolio Partners MFS Value
Equity Portfolio $76 $104 $134 $251 $22 $ 68 $117 $251
Portfolio Partners Scudder
International Growth Portfolio $77 $107 $139 $261 $23 $ 71 $122 $261
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
<PAGE>
For Contracts Issued in the State of New York:
Hypothetical Example: Option Package III
Account Fees You May Incur Over Time. The following hypothetical examples show
the fees and expenses paid over time if you invest $1,000 in the contract and
assume a 5% annual return on the investment. For the purpose of these examples,
we deducted total annual fund expenses, the maximum charges under Option Package
III (i.e., mortality and expense risk charge of 1.25%, an administrative expense
charge of 0.15% annually and a maximum Annual Maintenance Fee of $30 (converted
to a percentage of assets equal to 0.022%)). The total annual fund expenses used
are those shown in the column "Total Annual Expenses Without Waivers or
Reductions" in the Fund Expense Table.
<TABLE>
<CAPTION>
- ---------------------------------------- Example A Example B
[arrow] These examples are purely --------- ---------
hypothetical. If you withdraw your entire account If at the end of the periods shown
[arrow] They should not be considered a value at the end of the periods you (1) leave your entire account
representation of past or future shown, you would pay the following value invested or (2) select an
expenses or expected returns. expenses, including any applicable income phase payment option, you
[arrow] Actual expenses and/or returns early withdrawal charge: would pay the following expenses
may be more or less than those (no early withdrawal charge is
shown in these examples. reflected):*
- ----------------------------------------
1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
------ ------- ------- -------- ------ ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Aetna Balanced VP, Inc. $74 $ 99 $126 $234 $20 $ 63 $108 $234
Aetna Bond VP $73 $ 96 $121 $225 $20 $ 60 $104 $225
Aetna Growth VP $76 $104 $134 $251 $22 $ 68 $117 $251
Aetna Growth and Income VP $74 $ 98 $126 $233 $20 $ 63 $108 $233
Aetna Index Plus Large Cap VP $73 $ 94 $119 $219 $19 $ 59 $101 $219
Aetna International VP $89 $143 $199 $377 $35 $107 $181 $377
Aetna Money Market VP $72 $ 91 $113 $208 $18 $ 55 $ 96 $208
Aetna Real Estate Securities VP $83 $126 $171 $323 $29 $ 90 $153 $323
Aetna Small Company VP $77 $108 $141 $265 $23 $ 72 $124 $265
AIM V.I. Capital Appreciation Fund $75 $101 $130 $242 $21 $ 66 $112 $242
AIM V.I. Growth Fund $76 $103 $133 $247 $22 $ 67 $115 $247
AIM V.I. Growth & Income Fund $75 $101 $129 $240 $21 $ 65 $111 $240
AIM V.I. Value Fund $75 $101 $130 $241 $21 $ 65 $112 $241
Fidelity VIP Equity-Income Portfolio $74 $ 98 $126 $233 $20 $ 63 $108 $233
Fidelity VIP Growth Portfolio $75 $101 $131 $243 $21 $ 66 $113 $243
Fidelity VIP High Income Portfolio $75 $102 $132 $245 $22 $ 66 $114 $245
Fidelity VIP II Contrafund Portfolio $75 $102 $132 $245 $22 $ 66 $114 $245
Janus Aspen Aggressive Growth
Portfolio $76 $104 $134 $251 $22 $ 68 $117 $251
Janus Aspen Balanced Portfolio $76 $103 $134 $250 $22 $ 68 $116 $250
Janus Aspen Growth Portfolio $76 $104 $134 $251 $22 $ 68 $117 $251
Janus Aspen Worldwide Growth
Portfolio $76 $103 $134 $250 $22 $ 68 $116 $250
MFS Total Return Series $77 $108 $142 $267 $24 $ 73 $125 $267
Oppenheimer Aggressive Growth
Fund/VA $75 $102 $132 $246 $22 $ 67 $115 $246
Oppenheimer Main Street Growth
& Income Fund/VA $76 $105 $136 $255 $22 $ 69 $119 $255
Oppenheimer Strategic Bond Fund/VA $76 $105 $137 $256 $23 $ 69 $119 $256
Portfolio Partners MFS Emerging
Equities Portfolio $76 $105 $137 $257 $23 $ 70 $119 $257
Portfolio Partners MFS Research
Growth Portfolio $77 $107 $139 $261 $23 $ 71 $122 $261
Portfolio Partners MFS Value
Equity Portfolio $77 $108 $142 $266 $24 $ 73 $124 $266
Portfolio Partners Scudder
International Growth Portfolio $78 $111 $147 $276 $25 $ 76 $129 $276
</TABLE>
- -----------------------
* This example does not apply during the income phase if you select a
nonlifetime payment option with variable payments and take a lump-sum
withdrawal within three years after payments start. In this case, the
lump-sum payment is treated as a withdrawal during the accumulation phase
and may be subject to an early withdrawal charge (refer to Example A).
<PAGE>
8. The following information replaces the "Limits on How Many Investment Options
You May Select" section on page 17 of the prospectus:
Limits on How Many Investment Options You May Select. Although there is
currently no limit, we reserve the right to limit the number of investment
options you may select at any one time or during the accumulation phase.
9. The following information replaces the final paragraph of the "Payment
Amounts" section on page 20 of the prospectus:
Any additional payments must be at least $50 (we may change this amount from
time to time). A payment of more than $1,000,000 will be allowed only with our
consent.
10. The following information replaces the "Early Withdrawal Charge Schedules"
section on page 24 of the prospectus:
Early Withdrawal Charge Schedules
FOR CONTRACTS ISSUED OUTSIDE OF THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
CONTRACTS OTHER THAN
ROTH IRA CONTRACTS: ROTH IRA CONTRACTS:
- -----------------------------------------------------------------------------------------
Early Early
Years From Receipt Withdrawal Completed Account Withdrawal
of Payment Charge Years Charge
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than 2 7% Less than 1 5%
- -----------------------------------------------------------------------------------------
2 or more but less than 4 6% 1 or more but less than 2 4%
- -----------------------------------------------------------------------------------------
4 or more but less than 5 5% 2 or more but less than 3 3%
- -----------------------------------------------------------------------------------------
5 or more but less than 6 4% 3 or more but less than 4 2%
- -----------------------------------------------------------------------------------------
6 or more but less than 7 3% 4 or more but less than 5 1%
- -----------------------------------------------------------------------------------------
7 or more 0% 5 or more 0%
- -----------------------------------------------------------------------------------------
</TABLE>
FOR CONTRACTS ISSUED IN THE STATE OF NEW YORK:
<TABLE>
<CAPTION>
- ---------------------------------------------
FOR ALL CONTRACTS:
- ---------------------------------------------
Early
Years From Receipt Withdrawal
of Payment Charge
- ---------------------------------------------
<S> <C>
Less than 1 7%
- ---------------------------------------------
1 or more but less than 2 6%
- ---------------------------------------------
2 or more but less than 3 5%
- ---------------------------------------------
3 or more but less than 4 4%
- ---------------------------------------------
4 or more but less than 5 3%
- ---------------------------------------------
5 or more but less than 6 2%
- ---------------------------------------------
6 or more but less than 7 1%
- ---------------------------------------------
7 or more 0%
- ---------------------------------------------
</TABLE>
11. The following information replaces the "First In, First Out" section on page
24 of the prospectus:
First In, First Out. The early withdrawal charge is calculated separately for
each payment withdrawn. For purposes of calculating your early withdrawal
charge, we consider that your first payment to the account (first in) is the
first you withdraw (first out).
For example: For contracts other than Roth IRAs issued outside of the state of
New York, we calculate the early withdrawal charge based upon the number of
years since the payment was received. If your initial payment was made three
years ago, we will deduct an early withdrawal charge equal to 6% of the portion
of that payment withdrawn. The next time you make a withdrawal we will assess
the charge against the portion of the first payment that you did not withdraw
and/or your subsequent payments to your account in the order they were received.
For Roth IRAs issued outside of the state of New York, we will calculate the
early withdrawal charge based upon the number of completed account years. If
your initial payment was made three years ago, we will deduct an early
withdrawal charge equal to 2% of the portion of that payment withdrawn. The next
time you make a withdrawal we will assess the charge against the portion of the
first payment that you did not withdraw and/or your subsequent payments to your
account in the order they were received.
<PAGE>
Earnings may be withdrawn after all payments have been withdrawn. There is no
early withdrawal charge for withdrawal of earnings.
12. The following information replaces the first paragraph of the "Free
Withdrawals" section on page 25 of the prospectus:
There is no early withdrawal charge if, during each account year, the amount
withdrawn is 10% or less of your account value on the later of the date we
established your account or the most recent anniversary of that date. Under
Option Package III, any unused percentage of the 10% free withdrawal amount
shall carry forward into successive account years, up to a maximum 30% of your
account value.
13. The following information replaces the fourth item in the "Waiver" section
on page 25 of the prospectus:
[arrow] Taken because of the election of a systematic distribution option, but,
with respect to the Systematic Withdrawal Option (SWO) and the Life
Expectancy Option (LEO), only to the extent that the amount taken is 10%
or less of your account value on the later of the date we established
your account or the most recent anniversary of that date (See
"Systematic Distribution Options")
14. The following information replaces the "Reduction or Elimination" section on
page 25 of the prospectus:
Reduction or Elimination. We may reduce or eliminate the early withdrawal charge
if we anticipate savings on our administrative expenses due to any one of the
following:
[arrow] The size and type of group to whom the contract is offered
[arrow] The amount of expected payments
[arrow] A prior or existing relationship with the Company such as being an
employee of the Company or any affiliate, receiving distributions or
making transfers from other contracts issued by us, or transferring
amounts held under qualified retirement plans sponsored by us or one of
our affiliates
In the case of an exchange of another contract issued by us or one of our
affiliates where the early withdrawal charge has been waived, the early
withdrawal charge for certain contracts offered by this prospectus may be
determined based on the dates payments were received under the prior contract.
We will not unfairly discriminate against any person if we reduce or eliminate
the early withdrawal charge. The right to reduce or eliminate the early
withdrawal charge is subject to state approval.
15. The following information replaces the last paragraph of the "Nursing Home
Waiver" section on page 26 of the prospectus:
We will not waive the early withdrawal charge if the annuitant was in a nursing
care facility for at least one day during the two week period immediately
preceding or following the schedule effective date. The waiver will also not
apply to contracts issued in the state of New York or as otherwise prohibited by
state law.
16. The first paragraph on page 27 of the prospectus is replaced with the
following:
If the amount we deduct for this fee is not enough to cover our mortality costs
and expenses under the contract, we will bear the loss. We may use any excess to
recover distribution costs relating to the contract and as a source of profit.
We expect to make a profit from this fee.
17. The first item under "Mortality and Expense Risk Charge -- Reduction" on
page 27 of the prospectus is replaced with the following:
[arrow] The size and type of the group to whom the contract is offered, such as
a group made up of employees or former employees of the Company or one
of its affiliates
18. The following paragraph is added after the second paragraph in the "Roll-up
Value" section on page 35 of the prospectus:
The "roll-up value" is not available on contracts issued in the state of New
York. For contracts issued in the state of New York, the benefit payable upon
the death of the annuitant under Option Package III is the same as that
described under Option Package II. Because of this, for contracts issued in New
York the annuitant should consider whether Option Package III meets their
individual investment objectives.
19. The following information is added to Appendix III, Description of
Underlying Funds:
Fidelity Variable Insurance Products Fund--Growth Portfolio
Investment Objective
Seeks capital appreciation.
<PAGE>
Policies
Normally invests primarily in common stocks of companies the investment adviser
believes have above-average growth potential. Companies with high growth
potential tend to be companies with higher than average price/ earning (P/E)
ratios and are often called "growth" stocks. May invest in securities of both
foreign and domestic issuers. In making investment decisions, the investment
adviser relies on fundamental analysis of each issuer and its potential for
success in light of its current financial condition, its industry position, and
economic and market conditions. May use various techniques, such as buying and
selling futures contracts, to increase or decrease exposure to changing security
prices, or other factors that affect security values.
Risks
The value of equity securities fluctuates in response to issuer, political,
market and economic developments. In the short term, equity prices can fluctuate
dramatically in response to these developments. Foreign investments, especially
those in emerging markets, can be more volatile and potentially less liquid than
U.S. investments due to increased risks of adverse issuer, political,
regulatory, market or economic developments. "Growth" stocks tend to be
sensitive to changes in their earnings and more volatile than other types of
stocks.
Investment Adviser: Fidelity Management & Research Company
Form No.: X.56297-99 September 1999
<PAGE>
VARIABLE ANNUITY ACCOUNT B
Aetna Life Insurance and Annuity Company
Supplement dated September __, 1999 to the
Statement of Additional Information dated May 3, 1999
Aetna Variable Annuity -
Group and Individual Deferred Variable Annuity Contracts
o The section entitled "VARIABLE ANNUITY ACCOUNT B" is amended to add the
Fidelity Variable Insurance Products Fund (VIP) Growth Portfolio to the
list of funds currently available under the contract and to change the
names of the three Mitchell Hutchins mutual funds to Mitchell Hutchins
Series Trust Growth and Income Portfolio, Mitchell Hutchins Series Trust
Small Cap Portfolio and Mitchell Hutchins Series Trust Tactical Allocation
Portfolio.
o The performance tables in the "Average Annual Total Return Quotations -
Standardized and Non-Standardized" section are amended to add information
about the Fidelity VIP Growth Portfolio.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Date
Contributions
STANDARDIZED First Received
Under the
Separate Account
- ---------------------------------------------------------------------------------------------------------------------
Since
SUBACCOUNT 1 Year 5 Year 10 Years Inception*
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Fidelity VIP Growth Portfolio 31.48% 25.59% 12/30/1994
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
*Reflects performance from the date contributions were first received in the
fund under the separate account.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------
Fund
Inception
NON-STANDARDIZED Date
- ---------------------------------------------------------------------------------------------------------------------
Since
SUBACCOUNT 1 Year 3 Years 5 Years 10 Years Inception**
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Fidelity VIP Growth Portfolio(1) 37.52% 23.70% 20.02% 17.73%
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
**Reflects performance from the fund's inception date.
(1) This fund has been in operation for more than ten years.
Form No. XSAI56297-99
<PAGE>
VARIABLE ANNUITY ACCOUNT B
PART C - OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
(1) Incorporated by reference in Part A:
Condensed Financial Information
(2) Incorporated by reference in Part B:
Financial Statements of Variable Annuity Account B:
- Statement of Assets and Liabilities as of December 31,
1998
- Statements of Operations and Changes in Net Assets for the
years ended December 31, 1998 and 1997
- Condensed Financial Information for the year ended
December 31, 1998
- Notes to Financial Statements
- Independent Auditors' Report
Financial Statements of the Depositor:
- Independent Auditors' Report
- Consolidated Statements of Income for the years ended
December 31, 1998, 1997 and 1996
- Consolidated Balance Sheets as of December 31, 1998 and
1997
- Consolidated Statements of Changes in Shareholder's Equity
for the years ended December 31, 1998, 1997 and 1996
- Consolidated Statements of Cash Flows for the years ended
December 31, 1998, 1997 and 1996
- Notes to Consolidated Financial Statements
(b) Exhibits
(1) Resolution of the Board of Directors of Aetna Life
Insurance and Annuity Company establishing Variable
Annuity Account B(1)
(2) Not applicable
(3.1) Broker-Dealer Agreement(2)
(3.2) Alternative Form of Wholesaling Agreement and Related
Selling Agreement(3)
(4.1) Variable Annuity Contract (GM-VA-98)(2)
(4.2) Variable Annuity Contract Certificate (GMC-VA-98)(2)
(4.3) Form of Variable Annuity Contract (GM-VA-98(NY))
(4.4) Form of Variable Annuity Contract Certificate
(GMC-VA-98(NY))
(4.5) Endorsement (EVAGET98) to Variable Annuity Contract
GM-VA-98 and Variable Annuity Contract Certificate
GMC-VA-98(4)
(4.6) Endorsement (EGET-99) to Variable Annuity Contract
GM-VA-98 and Variable Annuity Contract Certificate
GMC-VA-98(5)
(5) Variable Annuity Contract Application(9.5.89-6(9/98))(6)
<PAGE>
(6.1) Certificate of Incorporation of Aetna Life Insurance and
Annuity Company(7)
(6.2) Amendment of Certificate of Incorporation of Aetna Life
Insurance and Annuity Company(8)
(6.3) By-Laws as amended September 17, 1997 of Aetna Life
Insurance and Annuity Company(9)
(7) Not applicable
(8.1) Fund Participation Agreement between Aetna Life
Insurance and Annuity Company and AIM dated June 30,
1998(6)
(8.2) Service Agreement between Aetna Life Insurance and
Annuity Company and AIM effective June 30, 1998(6)
(8.3) Fund Participation Agreement by and among Aetna Life
Insurance and Annuity Company and Aetna Variable Fund,
Aetna Variable Encore Fund, Aetna Income Shares, Aetna
Balanced VP, Inc., Aetna GET Fund on behalf of each of
its series, Aetna Generation Portfolios, Inc. on behalf
of each of its series, Aetna Variable Portfolios, Inc.
on behalf of each of its series, and Aeltus Investment
Management, Inc. dated as of May 1, 1998(2)
(8.4) Amendment dated November 9, 1998 to Fund Participation
Agreement by and among Aetna Life Insurance and Annuity
Company and Aetna Variable Fund, Aetna Variable Encore
Fund, Aetna Income Shares, Aetna Balanced VP, Inc.,
Aetna GET Fund on behalf of each of its series, Aetna
Generation Portfolios, Inc. on behalf of each of its
series, Aetna Variable Portfolios, Inc. on behalf of
each of its series, and Aeltus Investment Management,
Inc. dated as of May 1, 1998(10)
(8.5) Service Agreement between Aeltus Investment Management,
Inc. and Aetna Life Insurance and Annuity Company in
connection with the sale of shares of Aetna Variable
Fund, Aetna Variable Encore Fund, Aetna Income Shares,
Aetna Balanced VP, Inc., Aetna GET Fund on behalf of
each of its series, Aetna Generation Portfolios, Inc. on
behalf of each of its series, and Aetna Variable
Portfolios, Inc. on behalf of each of its series dated
as of May 1, 1998(2)
(8.6) Amendment dated November 4, 1998 to Service Agreement
between Aeltus Investment Management, Inc. and Aetna
Life Insurance and Annuity Company in connection with
the sale of shares of Aetna Variable Fund, Aetna
Variable Encore Fund, Aetna Income Shares, Aetna
Balanced VP, Inc., Aetna GET Fund on behalf of each of
its series, Aetna Generation Portfolios, Inc. on behalf
of each of its series and Aetna Variable Portfolios,
Inc. on behalf of each of its series dated as of May 1,
1998(10)
(8.7) Fund Participation Agreement between Aetna Life
Insurance and Annuity Company, Variable Insurance
Products Fund and Fidelity Distributors
<PAGE>
Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995,
January 1, 1996 and March 1, 1996(8)
(8.8) Fifth Amendment dated as of May 1, 1997 to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May
1, 1995, January 1, 1996 and March 1, 1996(11)
(8.9) Sixth Amendment dated November 6, 1997 to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May
1, 1995, January 1, 1996, March 1, 1996 and May 1,
1997(12)
(8.10) Seventh Amendment dated as of May 1, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May
1, 1995, January 1, 1996, March 1, 1996, May 1, 1997 and
November 6, 1997(2)
(8.11) Fund Participation Agreement between Aetna Life
Insurance and Annuity Company, Variable Insurance
Products Fund II and Fidelity Distributors Corporation
dated February 1, 1994 and amended on December 15, 1994,
February 1, 1995, May 1, 1995, January 1, 1996 and March
1, 1996(8)
(8.12) Fifth Amendment, dated as of May 1, 1997, to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May
1, 1995, January 1, 1996 and March 1, 1996(11)
(8.13) Sixth Amendment dated as of January 20, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May
1, 1995, January 1, 1996, March 1, 1996 and May 1,
1997(13)
(8.14) Seventh Amendment dated as of May 1, 1998 to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May
1, 1995, January 1, 1996, March 1, 1996, May 1, 1997 and
January 20, 1998(2)
(8.15) Service Agreement between Aetna Life Insurance and
Annuity Company and Fidelity Investments Institutional
Operations Company dated as of November 1, 1995(12)
<PAGE>
(8.16) Amendment dated January 1, 1997 to Service Agreement
between Aetna Life Insurance and Annuity Company and
Fidelity Investments Institutional Operations Company
dated as of November 1, 1995(11)
(8.17) Service Contract between Fidelity Distributors
Corporation and Aetna Life Insurance and Annuity Company
dated May 2, 1997(10)
(8.18) Fund Participation Agreement among Janus Aspen Series
and Aetna Life Insurance and Annuity Company and Janus
Capital Corporation dated December 8, 1997(13)
(8.19) Amendment dated October 12, 1998 to Fund Participation
Agreement among Janus Aspen Series and Aetna Life
Insurance and Annuity Company and Janus Capital
Corporation dated December 8, 1997(10)
(8.20) Service Agreement between Janus Capital Corporation and
Aetna Life Insurance and Annuity Company dated December
8, 1997(15)
(8.21) Fund Participation Agreement among MFS Variable
Insurance Trust, Aetna Life Insurance and Annuity
Company and Massachusetts Financial Services Company
dated April 30, 1996, and amended on September 3, 1996,
March 14, 1997 and November 28, 1997(2)
(8.22) Fourth Amendment dated May 1, 1998 to the Fund
Participation Agreement by and among MFS Variable
Insurance Trust, Aetna Life Insurance and Annuity
Company and Massachusetts Financial Services Company
dated April 30, 1996, and amended on September 3, 1996,
March 14, 1997 and November 28, 1997(6)
(8.23) Fifth Amendment to Fund Participation Agreement by and
among MFS Variable Insurance Trust, Aetna Life Insurance
and Annuity Company and Massachusetts Financial Services
Company dated April 30, 1996, and amended on September
3, 1996, March 14, 1997 and November 28, 1997(16)
(8.24) Fund Participation Agreement dated May 1, 1999 between
Aetna Life Insurance and Annuity Company, Mitchell
Hutchins Series Trust, and Mitchell Hutchins Asset
Management, Inc.
(8.25) Service Agreement dated May 1, 1999 between Mitchell
Hutchins Asset Management, Inc. and Aetna Life Insurance
and Annuity Company.
(8.26) Fund Participation Agreement dated March 11, 1997
between Aetna Life Insurance and Annuity Company and
Oppenheimer Variable Annuity Account Funds and
Oppenheimer Funds, Inc.(17)
(8.27) Service Agreement effective as of March 11, 1997 between
Oppenheimer Funds, Inc. and Aetna Life Insurance and
Annuity Company(17)
(9) Opinion and Consent of Counsel
(10) Consent of Independent Auditors
(11) Not applicable
(12) Not applicable
(13) Schedule for Computation of Performance Data(6)
<PAGE>
(14) Not applicable
(15.1) Powers of Attorney(18)
(15.2) Authorization for Signatures(3)
1. Incorporated by reference to Post-Effective Amendment No. 6 to Registration
Statement on Form N-4 (File No. 33-75986), as filed on April 22, 1996.
2. Incorporated by reference to Registration Statement on Form N-4 (File No.
333-56297), as filed on June 8, 1998.
3. Incorporated by reference to Post-Effective Amendment No. 5 to Registration
Statement on Form N-4 (File No. 33-75986), as filed on April 12, 1996.
4. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form N-4 (File No. 333-56297), as filed on September 14, 1998.
5. Incorporated by reference to Post-Effective Amendment No. 13 to
Registration Statement on Form N-4 (File No. 333-01107), as filed on April
7, 1999.
6. Incorporated by reference to Pre-Effective Amendment No. 1 to Registration
Statement on Form N-4 (File No. 333-56297), as filed on August 4, 1998.
7. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form S-1 (File No. 33-60477), as filed on April 15, 1996.
8. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-75964), as filed on
February 11, 1997.
9. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-91846), as filed on October
30, 1997.
10. Incorporated by reference to Post-Effective Amendment No. 2 to Registration
Statement on Form N-4 (File No. 333-56297), as filed on December 14, 1998.
11. Incorporated by reference to Post-Effective Amendment No. 30 to
Registration Statement on Form N-4 (File No. 33-34370), as filed on
September 29, 1997.
12. Incorporated by reference to Post-Effective Amendment No. 16 to
Registration Statement on Form N-4 (File No. 33-75964), as filed on
February 9, 1998.
13. Incorporated by Reference to Post-Effective Amendment No. 7 to Registration
Statement on Form S-6 (File No. 33-75248), as filed on February 24, 1998.
14. Incorporated by reference to Post-Effective Amendment No. 3 to Registration
Statement on Form N-4 (File No. 33-88720), as filed on June 28, 1996.
15. Incorporated by reference to Post-Effective Amendment No. 10 to
Registration Statement on Form N-4 (File No. 33-75992), as filed on
December 31, 1997.
16. Incorporated by reference to Post-Effective Amendment No. 4 to Registration
Statement on Form N-4 (File No. 333-56297), as filed on February 16, 1999.
17. Incorporated by reference to Post-Effective Amendment No. 27 to
Registration Statement on Form N-4 (File No. 33-34370), as filed on April
16, 1997.
18. Incorporated by reference to Post-Effective Amendment No. 5 to Registration
Statement on Form No. 4 (File No. 333-56297), as filed on February 25,
1999.
<PAGE>
Item 25. Directors and Officers of the Depositor
<TABLE>
<CAPTION>
Name and Principal
Business Address* Positions and Offices with Depositor
- ----------------- ------------------------------------
<S> <C>
Thomas J. McInerney Director and President
Shaun P. Mathews Director and Senior Vice President
Catherine H. Smith Director, Chief Financial Officer and Senior Vice
President
Deborah Koltenuk Vice President, Corporate Controller and Assistant
Treasurer
Therese M. Squillacote Vice President and Chief Compliance Officer
Kirk P. Wickman Senior Vice President, General Counsel and Corporate
Secretary
</TABLE>
* The principal business address of all directors and officers listed is 151
Farmington Avenue, Hartford, Connecticut 06156.
Item 26. Persons Controlled by or Under Common Control with the Depositor or
Registrant
Incorporated herein by reference to Item 24 to Post-Effective Amendment No.
31 to Registration Statement on Form N-1A (File No. 33-41694), as filed on May
17, 1999.
Item 27. Number of Contract Owners
As of May 31, 1999, there were 82,419 individuals holding interests in
variable annuity contracts funded through Variable Annuity Account B.
Item 28. Indemnification
Section 21 of Public Act No. 97-246 of the Connecticut General Assembly (the
"Act") provides that a corporation may provide indemnification of or advance
expenses to a director, officer, employee or agent only as permitted by Sections
33-770 to 33-778, inclusive, of the Connecticut General Statutes, as amended by
Sections 12 to 20, inclusive, of this Act. Reference is hereby made to Section
33-771(e) of the Connecticut General Statutes ("CGS") regarding indemnification
of directors and Section 33-776(d) of CGS regarding indemnification of officers,
employees and agents of Connecticut corporations. These statutes provide in
general that Connecticut corporations incorporated prior to January 1, 1997
shall, except to the extent that their certificate of incorporation expressly
provides otherwise, indemnify their directors, officers, employees and agents
against "liability" (defined as the obligation to pay a judgment, settlement,
<PAGE>
penalty, fine, including an excise tax assessed with respect to an employee
benefit plan, or reasonable expenses incurred with respect to a proceeding) when
(1) a determination is made pursuant to Section 33-775 that the party seeking
indemnification has met the standard of conduct set forth in Section 33-771 or
(2) a court has determined that indemnification is appropriate pursuant to
Section 33-774. Under Section 33-775, the determination of and the authorization
for indemnification are made (a) by the disinterested directors, as defined in
Section 33-770(3); (b) by special counsel; (c) by the shareholders; or (d) in
the case of indemnification of an officer, agent or employee of the corporation,
by the general counsel of the corporation or such other officer(s) as the board
of directors may specify. Also, Section 33-772 provides that a corporation shall
indemnify an individual who was wholly successful on the merits or otherwise
against reasonable expenses incurred by him in connection with a proceeding to
which he was a party because he was a director of the corporation. In the case
of a proceeding by or in the right of the corporation or with respect to conduct
for which the director, officer, agent or employee was adjudged liable on the
basis that he received a financial benefit to which he was not entitled,
indemnification is limited to reasonable expenses incurred in connection with
the proceeding against the corporation to which the individual was named a
party.
The statute does specifically authorize a corporation to procure indemnification
insurance on behalf of an individual who was a director, officer, employer or
agent of the corporation. Consistent with the statute, Aetna Inc. has procured
insurance from Lloyd's of London and several major United States excess insurers
for its directors and officers and the directors and officers of its
subsidiaries, including the Depositor.
Item 29. Principal Underwriter
(a) In addition to serving as the principal underwriter and depositor for
the Registrant, Aetna Life Insurance and Annuity Company (Aetna) also
acts as the principal underwriter, only, for Aetna Variable Encore
Fund, Aetna Variable Fund, Aetna Generation Portfolios, Inc., Aetna
Income Shares, Aetna Balanced VP, Inc. (formerly Aetna Investment
Advisers Fund, Inc.), Aetna GET Fund, and Aetna Variable Portfolios,
Inc. and as principal underwriter and investment adviser for Portfolio
Partners, Inc. (all management investment companies registered under
the Investment Company Act of 1940 (1940 Act)). Additionally, Aetna
acts as the principal underwriter and depositor for Variable Life
Account B of Aetna, Variable Annuity Account C of Aetna and Variable
Annuity Account G of Aetna (separate accounts of Aetna registered as
unit investment trusts under the 1940 Act). Aetna is also the principal
underwriter for Variable Annuity Account I of Aetna Insurance Company
of America (AICA) (a separate account of AICA registered as a unit
investment trust under the 1940 Act).
(b) See Item 25 regarding the Depositor.
<PAGE>
(c) Compensation as of December 31, 1998:
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5)
Name of Net Underwriting Compensation
Principal Discounts and on Redemption Brokerage
Underwriter Commissions or Annuitization Commissions Compensation*
<S> <C> <C> <C> <C>
Aetna Life $684,000 $42,930,000
Insurance and
Annuity Company
</TABLE>
* Compensation shown in column 5 includes deductions for mortality and
expense risk guarantees and contract charges assessed to cover costs
incurred in the sales and administration of the contracts issued under
Variable Annuity Account B.
Item 30. Location of Accounts and Records
All accounts, books and other documents required to be maintained by
Section 31(a) of the 1940 Act and the rules under it relating to the securities
described in and issued under this Registration Statement are located at the
home office of the Depositor as follows:
Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, Connecticut 06156
Item 31. Management Services
Not applicable
Item 32. Undertakings
Registrant hereby undertakes:
(a) to file a post-effective amendment to this registration statement on
Form N-4 as frequently as is necessary to ensure that the audited
financial statements in the registration statement are never more than
sixteen months old for as long as payments under the variable annuity
contracts may be accepted;
(b) to include as part of any application to purchase a contract offered by
a prospectus which is part of this registration statement on Form N-4,
a space that an applicant can check to request a Statement of
Additional Information; and
<PAGE>
(c) to deliver any Statement of Additional Information and any financial
statements required to be made available under this Form N-4 promptly
upon written or oral request.
(d) The Company hereby represents that it is relying upon and will comply
with the provisions of Paragraphs (1) through (4) of the SEC Staff's
No-Action Letter dated November 28, 1988 with respect to language
concerning withdrawal restrictions applicable to plans established
pursuant to Section 403(b) of the Internal Revenue Code. See American
Counsel of Life Insurance; SEC No-Action Letter, [1988 WL 235221, *13
(S.E.C.].
(e) Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or
otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or paid
by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the Registrant will, unless in the opinion
of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question of whether
such indemnification by it is against public policy as expressed in the
Act and will be governed by the final adjudication of such issue.
(f) Aetna Life Insurance and Annuity Company represents that the fees and
charges deducted under the contracts covered by this registration
statement, in the aggregate, are reasonable in relation to the services
rendered, the expenses expected to be incurred, and the risks assumed
by the insurance company.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant, Variable Annuity Account B of Aetna Life Insurance and
Annuity Company has duly caused this Post-Effective Amendment to its
Registration Statement on Form N-4 (File No. 333-56297) to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Hartford,
State of Connecticut, on the 25th day of June, 1999.
VARIABLE ANNUITY ACCOUNT B OF AETNA
LIFE INSURANCE AND ANNUITY COMPANY
(Registrant)
By: AETNA LIFE INSURANCE AND ANNUITY COMPANY
(Depositor)
By: Thomas J. McInerney*
------------------------
Thomas J. McInerney
President
As required by the Securities Act of 1933, this Post-Effective Amendment
No. 8 to the Registration Statement has been signed by the following persons in
the capacities and on the dates indicated.
<TABLE>
<CAPTION>
Signature Title Date
- --------- ----- ----
<S> <C> <C>
Thomas J. McInerney* Director and President )
- --------------------- (principal executive officer) )
Thomas J. McInerney )
)
Catherine H. Smith* Director and Chief Financial Officer ) June
- --------------------- )
Catherine H. Smith ) 25, 1999
)
Shaun P. Mathews* Director )
- --------------------- )
Shaun P. Mathews )
)
Deborah Koltenuk* Vice President, Corporate Controller )
- --------------------- and Assistant Treasurer )
Deborah Koltenuk )
</TABLE>
By: /s/ J. Neil McMurdie
----------------------
J. Neil McMurdie
*Attorney-in-Fact
<PAGE>
VARIABLE ANNUITY ACCOUNT B
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Exhibit
- ----------- -------
<S> <C> <C>
99-B.4.3 Form of Variable Annuity Contract (GM-VA-98(NY)) ____________
99-B.4.4 Form of Variable Annuity Contract Certificate (GMC-VA-98(NY)) ____________
99-B.8.24 Fund Participation Agreement dated May 1, 1999 between Aetna Life
Insurance and Annuity Company, Mitchell Hutchins Series Trust, and
Mitchell Hutchins Asset Management, Inc. ____________
99-B.8.25 Service Agreement dated May 1, 1999 between Mitchell Hutchins Assets
Management, Inc. and Aetna Life Insurance and Annuity Company ____________
99-B.9 Opinion and Consent of Counsel ____________
99-B.10 Consent of Independent Auditors ____________
</TABLE>
- --------------------------------------------------------------------------------
[Aetna Logo] EX-99-B.4.3
Form of Variable Annuity Contract
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
P.O. Box 30670
Hartford, Connecticut 06150-0670
(800) 531-4547
You may call the toll free number shown above to request
information about this Contract.
Aetna Life Insurance and Annuity Company, a stock company, herein called Aetna,
agrees to pay the benefits stated in this Contract.
Specifications
- --------------------------------------------------------------------------------
| Plan
| SPECIMEN
- --------------------------------------------------------------------------------
| Type of Plan
| SPECIMEN
- --------------------------------------------------------------------------------
| Contract Holder
| SPECIMEN
- --------------------------------------------------------------------------------
| Contract No.
| SPECIMEN
- --------------------------------------------------------------------------------
| Contract Effective Date
| SPECIMEN
- --------------------------------------------------------------------------------
| This Contract is delivered in [STATE] and is subject to the laws of that
| jurisdiction.
The variable features of the Group Contract are described in parts III, IV
and V.
- ---------------------------- ---------------------------------------------------
Right to Cancel You may cancel your Contract within 10 days by returning it to
the agent from whom it was purchased, or to Aetna at the
address shown above. Within seven days of receiving this
Contract at its home office, Aetna will return the amount of
Purchase Payment(s) received.
President Secretary
Group Variable, Fixed, or Combination Annuity Contract
Nonparticipating
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. AMOUNTS ALLOCATED TO THE GUARANTEED ACCOUNT, IF WITHDRAWN
BEFORE THE GUARANTEED TERM MATURITY DATE, MAY BE SUBJECT TO A MARKET VALUE
ADJUSTMENT. THE MARKET VALUE ADJUSTMENT MAY RESULT IN AN INCREASE OR A DECREASE
IN THE ACCOUNT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT APPLY TO A
GUARANTEED TERM AT THE TIME OF ITS MATURITY.
GM-VA-98(NY)
<PAGE>
Specifications
<TABLE>
<S> <C>
Guaranteed There is a minimum guaranteed rate for Purchase Payment(s)
Rate held in the Guaranteed Account. (See Schedule - Accumulation
Period.)
Deductions from There will be deductions for mortality and expense risk as
the Separate well as administrative charges. (See Schedule - Accumulation
Account Period and Schedule - Annuity Period.)
Deduction from Purchase Payment(s) may be subject to a deduction for premium
Purchase taxes. (See Section III - Purchase Payment.)
Payment(s)
Deferred Sales There may be a charge deducted upon withdrawal. (See Schedule
Charge - Accumulation Period.) If a variable Annuity Payment is
Assumed Interest chosen, an Assumed Interest Rate of 5.0% may be elected. If
Rate 5.0% is not elected, Aetna will use an Assumed Interest Rate
of 3.5%.
</TABLE>
- --------------------------------------------------------------------------------
This Contract is a legal contract and constitutes the entire legal relationship
between Aetna and the Contract Holder.
READ THIS CONTRACT CAREFULLY. This Contract sets forth, in detail, all of the
rights and obligations of both you and Aetna. THEREFORE, IT IS IMPORTANT THAT
YOU READ THIS CONTRACT CAREFULLY.
GM-VA-98(NY) Page 2
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package I was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the
following chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 0.80%
----
Total Separate Account Charges 0.95%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Fidelity VIP High Income Portfolio
Aetna Bond VP Fidelity VIP II Contrafund Portfolio
Aetna Growth VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth and Income VP Janus Aspen Balanced Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Growth Portfolio
Aetna International VP Janus Aspen Worldwide Growth Portfolio
Aetna Money Market VP MFS Total Return Series
Aetna Real Estate Securities VP Oppenheimer Aggressive Growth Fund/VA
Aetna Small Company VP Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Growth and Income Fund Portfolio Partners MFS Research Growth Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GM-VA-98(NY)N-1 Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the
Accumulation Period. Aetna allows 12 free Transfers in any Account
Year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined
as follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
------------------------------------------------------------
<S> <C>
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)N-1 Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25%
for mortality and expense risks in the Annuity Period. The
administrative charge is established upon election of an Annuity
Payout Option. This charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)N-1 Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package I was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the
following chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 0.80%
----
Total Separate Account Charges 0.95%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Janus Aspen Aggressive Growth Portfolio
Aetna Bond VP Janus Aspen Balanced Portfolio
Aetna Growth VP Janus Aspen Growth Portfolio
Aetna Growth and Income VP Janus Aspen Worldwide Growth Portfolio
Aetna Index Plus Large Cap VP MFS Total Return Series
Aetna International VP Mitchell Hutchins Growth and Income Portfolio
Aetna Money Market VP Mitchell Hutchins Tactical Allocation Portfolio
Aetna Real Estate Securities VP Mitchell Hutchins Small Cap Portfolio
Aetna Small Company VP Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Growth Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth and Income Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP High Income Portfolio Portfolio Partners Scudder International Growth Portfolio
Fidelity VIP II Contrafund Portfolio
</TABLE>
GM-VA-98(NY)N-1(MH) Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the
Accumulation Period. Aetna allows 12 free Transfers in any Account
Year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined
as follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------
<S> <C>
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)N-1(MH) Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25%
for mortality and expense risks in the Annuity Period. The
administrative charge is established upon election of an Annuity
Payout Option. This charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)N-1(MH) Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package I was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the
following chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 0.80%
----
Total Separate Account Charges 0.95%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Fidelity VIP High Income Portfolio
Aetna Bond VP Fidelity VIP II Contrafund Portfolio
Aetna Growth VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth and Income VP Janus Aspen Balanced Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Growth Portfolio
Aetna International VP Janus Aspen Worldwide Growth Portfolio
Aetna Money Market VP MFS Total Return Series
Aetna Real Estate Securities VP Oppenheimer Aggressive Growth Fund/VA
Aetna Small Company VP Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Growth and Income Fund Portfolio Partners MFS Research Growth Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GM-VA-98(NY)I-1 Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the
Accumulation Period. Aetna allows 12 free Transfers in any Account
Year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined
as follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
-------------------------------------------------------------
<S> <C>
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)I-1 Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25%
for mortality and expense risks in the Annuity Period. The
administrative charge is established upon election of an Annuity
Payout Option. This charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)I-1 Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package I was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the
following chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 0.80%
----
Total Separate Account Charges 0.95%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Janus Aspen Aggressive Growth Portfolio
Aetna Bond VP Janus Aspen Balanced Portfolio
Aetna Growth VP Janus Aspen Growth Portfolio
Aetna Growth and Income VP Janus Aspen Worldwide Growth Portfolio
Aetna Index Plus Large Cap VP MFS Total Return Series
Aetna International VP Mitchell Hutchins Growth and Income Portfolio
Aetna Money Market VP Mitchell Hutchins Tactical Allocation Portfolio
Aetna Real Estate Securities VP Mitchell Hutchins Small Cap Portfolio
Aetna Small Company VP Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Growth Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth and Income Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP High Income Portfolio Portfolio Partners Scudder International Growth Portfolio
Fidelity VIP II Contrafund Portfolio
</TABLE>
GM-VA-98(NY)I-1(MH) Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the
Accumulation Period. Aetna allows 12 free Transfers in any Account
Year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined
as follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
-----------------------------------------------------------
<S> <C>
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)I-1(MH) Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25%
for mortality and expense risks in the Annuity Period. The
administrative charge is established upon election of an Annuity
Payout Option. This charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)I-1(MH) Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package II was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the
following chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.10%
----
Total Separate Account Charges 1.25%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Fidelity VIP High Income Portfolio
Aetna Bond VP Fidelity VIP II Contrafund Portfolio
Aetna Growth VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth and Income VP Janus Aspen Balanced Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Growth Portfolio
Aetna International VP Janus Aspen Worldwide Growth Portfolio
Aetna Money Market VP MFS Total Return Series
Aetna Real Estate Securities VP Oppenheimer Aggressive Growth Fund/VA
Aetna Small Company VP Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Growth and Income Fund Portfolio Partners MFS Research Growth Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GM-VA-98(NY)N-2 Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the
Accumulation Period. Aetna allows 12 free Transfers in any Account
Year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined
as follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
--------------------------------------------------------------
<S> <C>
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
</TABLE>
See Section I - DEFINITIONS for explanations
GM-VA-98(NY)N-2 Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25%
for mortality and expense risks in the Annuity Period. The
administrative charge is established upon election of an Annuity
Payout Option. This charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)N-2 Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package II was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the
following chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.10%
----
Total Separate Account Charges 1.25%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Janus Aspen Aggressive Growth Portfolio
Aetna Bond VP Janus Aspen Balanced Portfolio
Aetna Growth VP Janus Aspen Growth Portfolio
Aetna Growth and Income VP Janus Aspen Worldwide Growth Portfolio
Aetna Index Plus Large Cap VP MFS Total Return Series
Aetna International VP Mitchell Hutchins Growth and Income Portfolio
Aetna Money Market VP Mitchell Hutchins Tactical Allocation Portfolio
Aetna Real Estate Securities VP Mitchell Hutchins Small Cap Portfolio
Aetna Small Company VP Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Growth Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth and Income Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP High Income Portfolio Portfolio Partners Scudder International Growth Portfolio
Fidelity VIP II Contrafund Portfolio
</TABLE>
GM-VA-98(NY)N-2(MH) Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the
Accumulation Period. Aetna allows 12 free Transfers in any Account
Year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined
as follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------
<S> <C>
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
</TABLE>
See Section I - DEFINITIONS for explanations
GM-VA-98(NY)N-2(MH) Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25%
for mortality and expense risks in the Annuity Period. The
administrative charge is established upon election of an Annuity
Payout Option. This charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)N-2(MH) Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package II was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the
following chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.10%
----
Total Separate Account Charges 1.25%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Fidelity VIP High Income Portfolio
Aetna Bond VP Fidelity VIP II Contrafund Portfolio
Aetna Growth VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth and Income VP Janus Aspen Balanced Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Growth Portfolio
Aetna International VP Janus Aspen Worldwide Growth Portfolio
Aetna Money Market VP MFS Total Return Series
Aetna Real Estate Securities VP Oppenheimer Aggressive Growth Fund/VA
Aetna Small Company VP Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Growth and Income Fund Portfolio Partners MFS Research Growth Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GM-VA-98(NY)I-2 Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the
Accumulation Period. Aetna allows 12 free Transfers in any Account
Year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined
as follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
------------------------------------------------------------------
<S> <C>
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)I-2 Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25%
for mortality and expense risks in the Annuity Period. The
administrative charge is established upon election of an Annuity
Payout Option. This charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)I-2 Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package II was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the
following chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.10%
----
Total Separate Account Charges 1.25%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Janus Aspen Aggressive Growth Portfolio
Aetna Bond VP Janus Aspen Balanced Portfolio
Aetna Growth VP Janus Aspen Growth Portfolio
Aetna Growth and Income VP Janus Aspen Worldwide Growth Portfolio
Aetna Index Plus Large Cap VP MFS Total Return Series
Aetna International VP Mitchell Hutchins Growth and Income Portfolio
Aetna Money Market VP Mitchell Hutchins Tactical Allocation Portfolio
Aetna Real Estate Securities VP Mitchell Hutchins Small Cap Portfolio
Aetna Small Company VP Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Growth Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth and Income Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP High Income Portfolio Portfolio Partners Scudder International Growth Portfolio
Fidelity VIP II Contrafund Portfolio
</TABLE>
GM-VA-98(NY)I-2(MH) Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the
Accumulation Period. Aetna allows 12 free Transfers in any Account
Year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined
as follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
------------------------------------------------------------------
<S> <C>
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)I-2(MH) Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25%
for mortality and expense risks in the Annuity Period. The
administrative charge is established upon election of an Annuity
Payout Option. This charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)I-2(MH) Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package III was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the
following chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.25%
----
Total Separate Account Charges 1.40%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Fidelity VIP High Income Portfolio
Aetna Bond VP Fidelity VIP II Contrafund Portfolio
Aetna Growth VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth and Income VP Janus Aspen Balanced Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Growth Portfolio
Aetna International VP Janus Aspen Worldwide Growth Portfolio
Aetna Money Market VP MFS Total Return Series
Aetna Real Estate Securities VP Oppenheimer Aggressive Growth Fund/VA
Aetna Small Company VP Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Growth and Income Fund Portfolio Partners MFS Research Growth Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GM-VA-98(NY)N-3 Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the
Accumulation Period. Aetna allows 12 free Transfers in any Account
Year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined
as follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
--------------------------------------------------------------
<S> <C>
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)N-3 Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25%
for mortality and expense risks in the Annuity Period. The
administrative charge is established upon election of an Annuity
Payout Option. This charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)N-3 Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package III was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the
following chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.25%
----
Total Separate Account Charges 1.40%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Janus Aspen Aggressive Growth Portfolio
Aetna Bond VP Janus Aspen Balanced Portfolio
Aetna Growth VP Janus Aspen Growth Portfolio
Aetna Growth and Income VP Janus Aspen Worldwide Growth Portfolio
Aetna Index Plus Large Cap VP MFS Total Return Series
Aetna International VP Mitchell Hutchins Growth and Income Portfolio
Aetna Money Market VP Mitchell Hutchins Tactical Allocation
Aetna Real Estate Securities VP Mitchell Hutchins Small Cap Portfolio
Aetna Small Company VP Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Growth Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth and Income Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP High Income Portfolio Portfolio Partners Scudder International Growth Portfolio
Fidelity VIP II Contrafund Portfolio
</TABLE>
GM-VA-98(NY)N-3(MH) Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the
Accumulation Period. Aetna allows 12 free Transfers in any Account
Year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined
as follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
--------------------------------------------------------------
<S> <C>
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)N-3(MH) Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25%
for mortality and expense risks in the Annuity Period. The
administrative charge is established upon election of an Annuity
Payout Option. This charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)N-3(MH) Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package III was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the
following chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.25%
----
Total Separate Account Charges 1.40%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Fidelity VIP High Income Portfolio
Aetna Bond VP Fidelity VIP II Contrafund Portfolio
Aetna Growth VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth and Income VP Janus Aspen Balanced Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Growth Portfolio
Aetna International VP Janus Aspen Worldwide Growth Portfolio
Aetna Money Market VP MFS Total Return Series
Aetna Real Estate Securities VP Oppenheimer Aggressive Growth Fund/VA
Aetna Small Company VP Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Growth and Income Fund Portfolio Partners MFS Research Growth Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GM-VA-98(NY)I-3 Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the
Accumulation Period. Aetna allows 12 free Transfers in any Account
Year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined
as follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
------------------------------------------------------------------
<S> <C>
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)I-3 Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25%
for mortality and expense risks in the Annuity Period. The
administrative charge is established upon election of an Annuity
Payout Option. This charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)I-3 Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package III was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the
following chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.25%
----
Total Separate Account Charges 1.40%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc.
Aetna Bond VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth VP Janus Aspen Balanced Portfolio
Aetna Growth and Income VP Janus Aspen Growth Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Worldwide Growth Portfolio
Aetna International VP MFS Total Return Series
Aetna Money Market VP Mitchell Hutchins Growth and Income Portfolio
Aetna Real Estate Securities VP Mitchell Hutchins Tactical Allocation Portfolio
Aetna Small Company VP Mitchell Hutchins Small Cap Portfolio
AIM V.I. Capital Appreciation Fund Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Growth Fund Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Growth and Income Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Value Fund Portfolio Partners MFS Emerging Equities Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP High Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP II Contrafund Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GM-VA-98(NY)I-3(MH) Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the
Accumulation Period. Aetna allows 12 free Transfers in any Account
Year. Thereafter, Aetna reserves the right to charge $10 for each
subsequent Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000
or more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined
as follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
------------------------------------------------------------------
<S> <C>
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)I-3(MH) Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25%
for mortality and expense risks in the Annuity Period. The
administrative charge is established upon election of an Annuity
Payout Option. This charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is
not to decrease, the annuity return factor under the Separate
Account for that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free
Transfers are allowed each Account Year among the Subaccounts
available during the Annuity Period. Thereafter, Aetna reserves
the right to charge $10 for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GM-VA-98(NY)I-3(MH) Page 5
<PAGE>
Table of Contents
I. DEFINITIONS PAGE
1.01 Account ................................................. 8
1.02 Account Effective Date .................................. 8
1.03 Account Value ........................................... 8
1.04 Account Year ............................................ 8
1.05 Accumulation Period ..................................... 8
1.06 Adjusted Account Value .................................. 8
1.07 Annuitant ............................................... 8
1.08 Annuity Payment ......................................... 8
1.09 Annuity Payout Options .................................. 8
1.10 Annuity Period .......................................... 8
1.11 Beneficiary ............................................. 9
1.12 Certificate Holder ...................................... 9
1.13 Claim Date .............................................. 9
1.14 Code .................................................... 9
1.15 Contract ................................................ 9
1.16 Contract Holder ......................................... 9
1.17 Contribution ............................................ 9
1.18 Deferred Sales .......................................... 9
1.19 Dollar Cost Averaging ................................... 9
1.20 Fund(s) .................................................10
1.21 General Account .........................................10
1.22 Guaranteed Account ......................................10
1.23 Guaranteed Rates - Guaranteed Account ...................10
1.24 Guaranteed Term .........................................10
1.25 Guaranteed Term(s) Groups ...............................10
1.26 Maintenance Fee .........................................10
1.27 Market Value Adjustment (MVA) ...........................11
1.28 Matured Term Value ......................................11
1.29 Maturity Value Transfer .................................11
1.30 Maturity Date ...........................................11
1.31 Option Package ..........................................11
1.32 Purchase Payment(s) .....................................11
1.33 Reinvestment ............................................11
1.34 Schedule Effective Date .................................11
1.35 Separate Account ........................................11
1.36 Subaccount(s) ...........................................12
1.37 Systematic Distribution Option ..........................12
1.38 Transfers ...............................................12
1.39 Withdrawal Value ........................................12
1.40 Valuation Date ..........................................12
II. GENERAL PROVISIONS
2.01 Change of Contract ......................................12
2.02 Change of Fund(s) .......................................13
2.03 Nonparticipating Contract ...............................13
2.04 Payments and Elections ..................................13
2.05 State Laws ..............................................13
2.06 Control of Contract .....................................13
2.07 Designation of Beneficiary ..............................14
2.08 Misstatements and Adjustments ...........................14
2.09 Incontestability ........................................14
2.10 Grace Period ............................................14
2.11 Individual Certificates .................................14
GM-VA-98(NY) Page 6
<PAGE>
III. PURCHASE PAYMENT, ACCOUNT VALUE, AND WITHDRAWAL PROVISIONS
3.01 Purchase Payment ........................................14
3.02 Certificate Holder's Account ............................14
3.03 Accumulation Units - Separate Account ...................15
3.04 Net Investment Factor(s) - Separate Account .............15
3.05 Accumulation Unit Value - Separate Account ..............15
3.06 Market Value Adjustment (MVA) ...........................15
3.07 Transfer of Account Value from the Subaccount(s)
or Guaranteed Account During the Accumulation Period.....16
3.08 Notice to the Certificate Holder ........................17
3.09 Loans ...................................................17
3.10 Systematic Distribution Options .........................17
3.11 Death Benefit Amount ....................................17
3.12 Death Benefit Options Available to Beneficiary ..........18
3.13 Liquidation of Withdrawal Value .........................19
3.14 Deferred Sales Charge ...................................19
3.15 Payment of Withdrawal Value .............................19
3.16 Payment of Adjusted Account Value .......................19
3.17 Reinstatement ...........................................19
IV. OPTION PACKAGES
4.01 Election of Option Packages ............................20
4.02 Description of Option Package I ........................20
4.03 Description of Option Package II .......................21
4.04 Description of Option Package III ......................23
V. ANNUITY PAYOUT PROVISIONS
5.01 Annuity Payout Options .................................25
5.02 Annuity Payment Choices ................................26
5.03 Terms of Annuity Payout Options ........................27
5.04 Death of Annuitant/Beneficiary .........................27
5.05 Annuity Units - Separate Account .......................28
5.06 Annuity Unit Value - Separate Account ..................28
5.07 Annuity Net Return Factor(s) - Separate Account ........28
GM-VA-98(NY) Page 7
<PAGE>
I. DEFINITIONS
- --------------------------------------------------------------------------------
1.01 Account:
A record that identifies contract values accumulated on each
Certificate Holder's behalf.
1.02 Account Effective Date:
The date on which an Account is established on a Certificate
Holder's behalf.
1.03 Account Value:
As of the most recent Valuation Date, the Account Value is equal
to the total of the Purchase Payment(s) made to the Account;
(a) Plus or minus the investment experience for the amount, if
any, allocated to one or more of the Subaccounts (b) Plus
interest added to the amount, if any, allocated to the
Guaranteed Account; (c) Plus any additional amount deposited to
the Account (see Section IV - OPTION PACKAGES); (d) Less the
amount of any Maintenance Fee deducted; (e) Less any additional
fee(s), charges, or taxes, if applicable, deducted; (f) Less any
amount(s) withdrawn; and (g) Less any amount(s) applied to an
Annuity Payout Option.
1.04 Account Year:
A period of twelve months measured from the Account Effective Date
or an anniversary of such Account Effective Date.
1.05 Accumulation Period:
The period during which the Purchase Payment(s) are applied to an
Account to provide future Annuity Payment(s).
1.06 Adjusted Account Value:
The Account Value plus or minus the aggregate Market Value
Adjustment (MVA), if applicable, for the amount(s) allocated to
the Guaranteed Account (see Section III - Market Value
Adjustment).
1.07 Annuitant:
The person on whose death, during the Accumulation Period, a death
benefit becomes payable and on whose life or life expectancy the
Annuity Payments are based under the Certificate.
1.08 Annuity Payment:
A series of payments for life, a definite period or a combination
of the two. The Annuity Payments may be variable or fixed in
amount or a combination of both.
1.09 Annuity Payout Options:
The Certificate Holder may choose to receive Annuity Payments
under one of the following options:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.10 Annuity Period:
The period during which Annuity Payments are made.
GM-VA-98(NY) Page 8
<PAGE>
1.11 Beneficiary:
The individual(s) or entity entitled to receive any death benefit
due under the Certificate. Any designated Beneficiary has the
right to name another Beneficiary. If the Account is owned by
joint Certificate Holders, the survivor will be deemed the
designated Beneficiary and any other Beneficiary on record will
then be treated as the primary or contingent Beneficiary, as
originally designated, unless and until changed by the new
designated Beneficiary.
1.12 Certificate Holder:
A person who purchases an interest in this Contract as evidenced
by a certificate. Aetna reserves the right to limit ownership to
natural persons. If more than one Certificate Holder owns an
Account, each Certificate Holder will be a joint Certificate
Holder. Joint Certificate Holders have joint ownership rights and
both must authorize exercising any ownership rights unless Aetna
allows otherwise.
1.13 Claim Date:
The date when proof of death and the Beneficiary's entitlement to
the death benefit are received in good order at Aetna's home
office. This is also the date that the excess of the death benefit
over the Account Value, if any, is allocated to the money market
fund available through the Separate Account.
1.14 Code:
The Internal Revenue Code of 1986, as it may be amended from time
to time.
1.15 Contract:
This agreement between Aetna and the Contract Holder.
1.16 Contract Holder:
The entity to which the Contract is issued.
1.17 Contribution Period:
A day, a calendar week, a calendar month, a calendar quarter, or
any other period of time specified by Aetna during which a
Purchase Payment(s), Transfer(s) and/or Reinvestment(s) may be
allocated to one or more Guaranteed Account Guaranteed Terms.
Aetna reserves the right to shorten or to extend the Contribution
Period.
During a Contribution Period, Aetna may offer any number of
Guaranteed Terms and more than one Guaranteed Term of the same
duration may be offered.
1.17 Deferred Sales Charge:
The charge that is applied to a Purchase Payment(s) upon
withdrawal. This charge will be waived under certain circumstances
or after a certain length of time (see Section III - Deferred
Sales Charge).
1.19 Dollar Cost Averaging:
A program that permits the Certificate Holder to systematically
transfer amounts from one of the available Subaccounts, or an
available Guaranteed Account Guaranteed Term, to one or more of
the Subaccounts. If the Certificate Holder elects a Guaranteed
Account Guaranteed Term available for Dollar Cost Averaging, no
MVA applies to amounts transferred under Dollar Cost Averaging. If
Dollar Cost Averaging from a Guaranteed Account Guaranteed Term is
discontinued before the end of the Dollar Cost Averaging period
elected, Aetna will automatically transfer the balance to a
Guaranteed Term of the same duration and an MVA will apply. The
Certificate Holder may initiate a Transfer to another investment
option and an MVA will apply. If a Guaranteed Term of the same
duration is not available, Aetna will transfer the amount to the
Guaranteed Term with the next shortest duration. If no shorter
Guaranteed Term is available, the next longer Guaranteed Term will
be used. Aetna reserves the right to establish and change terms
and conditions governing Dollar Cost Averaging.
GM-VA-98(NY) Page 9
<PAGE>
1.20 Fund(s):
The open-end registered management investment companies whose
shares are purchased by the Separate Account to fund the benefits
provided by the Contract.
The Funds, and the number of Funds, available during the
Accumulation Period may be different from those available during
the Annuity Period. Aetna reserves the right to limit the number
of Funds available at any one time and to limit the number of
investment options the Certificate Holder may select during the
Accumulation Period and/or during the Annuity Period.
1.21 General Account:
The account holding the assets of Aetna, other than those assets
held in Aetna's separate accounts.
1.22 Guaranteed Account:
A nonunitized separate account, established by Aetna under Section
38a-433 of the Connecticut General Statutes, that holds assets for
Guaranteed Terms. There are no discrete units for this account.
The Certificate Holder does not participate in any gain or loss
resulting from the performance of the investments held in the
account. Income, gains or losses realized or unrealized, are gains
or losses of Aetna. Aetna liabilities, except for liabilities
under this Contract and reserves required by federal and state
law, may not be charged against the nonunitized separate account.
1.23 Guaranteed Rates - Guaranteed Account:
Aetna will declare the interest rate(s) applicable to a specific
Guaranteed Term at the start of the Contribtion Period for that
Guaranteed Term. The rate(s) are guaranteed by Aetna for the
period beginning with the first day of the Contribution Period and
ending on the Maturity Date. Guaranteed Rates are credited
beginning with the date of allocation. 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 the Schedule - Accumulation Period.
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 different Guaranteed Rate(s), which are higher
than the initial Guaranteed Rate, declared for subsequent
specified time intervals throughout the Guaranteed Term.
Aetna may offer more than one Guaranteed Term of the same duration
and credit one with a higher rate contingent upon use only with
Dollar Cost Averaging.
1.24 Guaranteed Term:
The period of time specified by Aetna for which a specific
Guaranteed Rate(s) is offered on amounts invested during a
specific Contribution Period. Guaranteed Terms are made available
subject to Aetna's terms and conditions, including, but not
limited to, Aetna's right to restrict allocations to new Purchase
Payments (such as by prohibiting Transfers into a particular
Guaranteed Term from any other Guaranteed Term or from any of the
Subaccounts, or by prohibiting Reinvestment of a Matured Term
Value to a particular Guaranteed Term). More than one Guaranteed
Term of the same duration may be offered within the Contract.
1.25 Guaranteed Term(s) Groups:
All Guaranteed Account Guaranteed Term(s) of the same duration
(from the close of the Contribution Period until the designated
Maturity Date).
1.26 Maintenance Fee:
The Maintenance Fee (see Schedule - Accumulation Period) will be
deducted during the Accumulation Period from the Account Value on
each anniversary of the Account Effective Date and upon withdrawal
of the entire Account.
GM-VA-98(NY) Page 10
<PAGE>
1.27 Market Value Adjustment (MVA):
An adjustment that will apply to an amount withdrawn or
transferred from a Guaranteed Account Guaranteed Term prior to the
end of that Guaranteed Term. This adjustment will be applied
except as outlined in Section 3.06 (b) Market Value Adjustment.
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. The adjustment is expressed as a
percentage of each dollar being withdrawn (see Section III- Market
Value Adjustment).
1.28 Matured Term Value:
The amount due on a Guaranteed Account Guaranteed Term's Maturity
Date.
1.29 Maturity Value Transfer:
During the calendar month following a Guaranteed Account Maturity
Date, the Certificate Holder may notify Aetna's home office in
writing to Transfer or withdraw all or part of the Matured Term
Value, plus accrued interest at the new Guaranteed Rate, from the
Guaranteed 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.
1.30 Maturity Date:
The last day of a Guaranteed Account Guaranteed Term.
1.31 Option Package:
The version of the Contract selected which defines, among other
things, the amount of the mortality and expense risk charge, the
calculation of the death benefit, and the availability of certain
withdrawals without imposition of a Deferred Sales Charge.
1.32 Purchase Payment(s):
The Purchase Payment(s) less premium taxes, if applicable,
accepted by Aetna at its home office. 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.
1.33 Reinvestment:
Aetna will mail a notice to the Certificate Holder at least 18 and
not more than 45 calendar days before a Guaranteed Term's Maturity
Date. This notice will contain the Terms available during current
Contribution 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 Contribution 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 Contribution 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.
1.34 Schedule Effective Date:
The date that an Option Package becomes effective. This date is
indicated on the
ccumulation Period. At initial
purchase, this date is the same as the Account Effective Date.
1.35 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. The
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 Separate Account,
shall not be charged with other Aetna liabilities.
GM-VA-98(NY) Page 11
<PAGE>
1.36 Subaccount(s):
The portion of the assets of the Separate Account that is
allocated to a particular Fund. Each Subaccount invests in the
shares of only one corresponding Fund.
1.37 Systematic Distribution Option:
An option elected by the Certificate Holder during the
Accumulation Period which establishes a schedule of withdrawals to
be made automatically from the Certificate Holder's Account.
1.38 Transfers:
The movement of invested amounts among the available Subaccount(s)
and/or any Guaranteed Account Guaranteed Term made available,
subject to terms and conditions established by Aetna, during the
Accumulation Period or the Annuity Period.
1.39 Withdrawal Value:
The amount payable by Aetna upon the withdrawal of any portion of
an Account.
1.40 Valuation Date:
The date and time in which Aetna calculates the net asset value of
the Subaccount, usually from 4:00 p.m. Eastern time each day the
New York Stock Exchange is open, to 4:00 p.m. the next such
business day.
II. GENERAL PROVISIONS
- --------------------------------------------------------------------------------
2.01 Change of Contract:
Only an authorized officer of Aetna may change the terms of this
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 Payout Option
which begins before the change.
Aetna may make any change that affects the Market Value Adjustment
(see Section III- Market Value Adjustment) 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
Guaranteed Term and will apply only to new Certificate Holders.
Any change that affects any of the following under this Contract
will not apply to Accounts in existence before the effective date
of the change:
(a) Account Value
(b) Guaranteed Rates - Guaranteed Account
(c) Purchase Payment
(d) Withdrawal Value
(e) Transfers
(f) Net Investment Factor(s) - Separate Account (see Section III)
(g) Minimum Guaranteed Interest Rates (see Section V)
(h) Annuity Unit Value - Separate Account (see Section V)
(i) Annuity Payout Options (see Section V).
GM-VA-98(NY) Page 12
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2.01 Change of Contract (Cont'd):
Any Account established on or after the effective date of any
change will be subject to the change. The Contract may also be
changed as deemed necessary by Aetna to comply with federal or
state law.
2.02 Change of Fund(s):
The assets of the Separate Account are segregated by Fund. If the
shares of any Fund are no longer available for investment by the
Separate Account or if, in our judgment, further investment in
such shares should become inappropriate in view of the purpose of
the Contract, Aetna may cease to make such Fund shares available
for investment under the Contract prospectively, or Aetna may
substitute shares of another Fund for shares already acquired.
Aetna may also, from time to time, add additional Funds. Any
elimination, substitution or addition of Funds will be done in
accordance with applicable state and federal securities laws.
Aetna reserves the right to substitute shares of another Fund for
shares already acquired without a proxy vote.
Any elimination, substitution or addition of funds will be done in
accordance with federal securities laws and are subject to the
approval of the Superintendent of the New York Insurance
Department and Aetna will notify the Contract Holder of such
change.
2.03 Nonparticipating Contract:
The Contract Holder, Certificate Holders or Beneficiaries will not
have a right to share in the earnings of Aetna.
2.04 Payments and Elections:
While the Certificate Holder is living, Aetna will pay the
Certificate Holder any Annuity Payments as and when due. After the
Certificate Holder's death, or at the death of the first
Certificate Holder if the Account is owned jointly, any Annuity
Payments required to be made will be paid in accordance with
Section V - Death of Annuitant/Beneficiary. Aetna will determine
other payments and/or elections as of the end of the Valuation
Date in which the request is received at its home office. Such
payments will be made within seven calendar days of receipt at its
home office of a written claim for payment which is in good order,
except as provided in Section III - Payment of Withdrawal Value.
2.05 State Laws:
The Contract and Certificate comply with the laws of the state in
which they are delivered. Any withdrawal, death benefit amount, 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:
This is a Contract 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.
Nothing in the group annuity Contract invalidates or impairs any
right granted to the Certificate Holder. The Certificate Holder
has all other rights to amounts held in his or her Account.
Each Certificate Holder shall own all amounts held in his or her
Account. Each Certificate Holder may make any choices allowed by
this Contract for his or her Account. Choices made under this
Contract must be in writing. If the Account is owned jointly, both
joint Certificate Holders must authorize any Certificate Holder
change 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 Certificate Holder may assign or transfer his or her rights
under the Contract. Aetna reserves the right not to accept
assignment or transfer to a nonnatural person. Any assignment or
transfer made under the Contract must be submitted to Aetna's home
office in writing and will not be effective until accepted by
Aetna.
GM-VA-98(NY) Page 13
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2.07 Designation of Beneficiary:
Each Certificate Holder shall name his or her Beneficiary and when
designating the Beneficiary may elect to specify in writing the
form of payment to the Beneficiary. Aetna will honor the specified
form of payment to the extent permitted under section 72(s) of the
Code. If the Account is owned jointly, both joint Certificate
Holders must agree in writing to the Beneficiary designated. 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. If the Account is owned
jointly, at the death of one joint Certificate Holder, the
survivor will be deemed the designated Beneficiary; any other
Beneficiary on record will then be treated as a primary or a
contingent Beneficiary, as originally designated unless and until
changed by the new designated Beneficiary. If a designated
Beneficiary defers taking payment of a death benefit, the
designated Beneficiary has the right to name another Beneficiary.
2.08 Misstatements and Adjustments:
If Aetna finds the age or sex of any Annuitant to be misstated,
the amount payable under the Contract shall be adjusted for the
correct age or sex; the amount of any underpayment or overpayment,
with interest at six per cent per year, shall be credited to, or
charged against, the current or next succeeding payment or
payments to be made by Aetna under the Contract.
2.09 Incontestability:
After two years, the Contract will be incontestable.
2.10 Grace Period:
The Contract will remain in effect even if Purchase Payments are
not continued except as provided in the Payment of Adjusted
Account Value provision (see Section III - Payment of Adjusted
Account Value).
2.11 Individual Certificates:
Aetna shall issue a certificate to each Certificate Holder. The
certificate contains all provisions of the Contract.
III. PURCHASE PAYMENT, ACCOUNT VALUE, AND WITHDRAWAL PROVISIONS
- --------------------------------------------------------------------------------
3.01 Purchase Payment:
This amount is the actual Purchase Payment. Aetna reserves the
right to pay premium taxes when due and deduct the amount from the
Account Value when we pay the tax or at a later date.
Each Purchase Payment will be allocated, as directed by the
Certificate Holder, among:
(a) Guaranteed Account Guaranteed Terms made available, subject
to terms and conditions established by Aetna; and/or
(b) The Subaccount(s) offered through the Separate Account.
For each Purchase Payment, the Certificate Holder shall tell Aetna
the percentage of each Purchase Payment to allocate to any
available Guaranteed Account Guaranteed Term and/or each
Subaccount. Unless different allocation instructions are received
for any additional Purchase Payment, the allocation will be the
same as for the initial Purchase Payment. If the same Guaranteed
Term is no longer available, the Purchase Payment will be
allocated to 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.
3.02 Certificate Holder's Account:
Aetna will maintain an Account for each Certificate Holder.
Aetna will declare from time to time the acceptability and the
minimum amount for initial and additional Purchase Payments.
GM-VA-98(NY) Page 14
<PAGE>
3.03 Accumulation Units - Separate Account:
The portion of the Purchase Payment(s) applied to each Subaccount
under the Separate Account will determine the number of
accumulation units for that Subaccount. This number is equal to
the portion of the Purchase Payment(s) applied to each Subaccount
divided by the accumulation unit value (see Section III -
Accumulation Unit Value - Separate Account) for the Valuation Date
in which the Purchase Payment is received in good order at Aetna's
home office.
3.04 Net Investment Factor(s) - Separate Account:
The net investment factor is used to measure the investment
performance of a Subaccount from one Valuation Date to the next.
The net investment factor for a Subaccount for any Valuation Date
is equal to the sum of 1.0000 plus the net investment rate. The
net investment rate equals:
(a) The net assets of the Subaccount on the current Valuation
Date, minus
(b) The net assets of the Subaccount on the preceding Valuation
Date, plus or minus
(c) Taxes or provisions for taxes, if any, attributable to the
operation of the Subaccount;
(d) Divided by the total value of the Subaccount's accumulation
and annuity units on the preceding Valuation Date;
(e) Minus a daily charge at the annual effective rate for
mortality and expense risks as stated in the Schedule -
Accumulation Period and Schedule - Annuity Period, and an
administrative charge of 0.15% (unless reduced or
eliminated) during the Accumulation Period and up to 0.25%
during the Annuity Period (currently 0% during the Annuity
Period).
The net investment rate may be either positive or negative.
3.05 Accumulation Unit Value - Separate Account:
An accumulation unit value is computed by multiplying the net
investment factor for the current Valuation Date by the
accumulation unit value for the previous Valuation Date. The
dollar value of accumulation units, Separate Account assets, and
variable Annuity Payments may go up or down due to investment gain
or loss.
3.06 Market Value Adjustment (MVA):
An MVA will apply to any withdrawal from the Guaranteed Account
before the end of a Guaranteed Term when the withdrawal is:
(a) A Transfer (including a Transfer from a Guaranteed Account
Guaranteed Term if Dollar Cost Averaging is discontinued);
except for Transfers under Dollar Cost Averaging, or as
specified in Section I - Maturity Value Transfer;
(b) A full or partial withdrawal (including a free withdrawal,
see Section III - Deferred Sales Charge), except for a
payment made:
(1) Under a Systematic Distribution Option, or
(2) Under a qualified Contract, when the amount withdrawn
is equal to the required minimum distribution for the
Account calculated using a method permitted under the
Code and agreed to by Aetna; or
(c) Due to an election of Annuity Payout Option 1. Only a
positive MVA will apply upon election of Annuity Payout
Option 2 or 3 (see Section V - Annuity Payout Options).
Full and partial withdrawals 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 resulting from a withdrawal(s). This
total may be greater or less than the Account Value of those
amounts; or
(b) The applicable portion of the Account Value in the
Guaranteed Account.
After the six-month period, the withdrawal or Transfer will be the
aggregate MVA amount, which may be greater or less than the
Account Value of those amounts.
GM-VA-98(NY) Page 15
<PAGE>
3.06 Market Value Adjustment (MVA) (Cont'd):
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 Contribution Period yield
j is the current yield
x is the number of days remaining in the Guaranteed
Term, computed from Wednesday of the week of
withdrawal.
The Contribution Period yield will be determined as follows:
(a) At the close of the last business day of each week of
the Contribution 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 Contribution Period yield is the average of those
yields for the Contribution Period. If withdrawal is
made before the close of the Contribution Period, it is
the average of those yields on each week preceding
withdrawal.
The current yield is the average of the yields for the remaining
period in the guaranteed term on the last business day of the week
preceding withdrawal on the same U.S. Treasury Notes included in
the Contribution 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 Account Value from the Subaccount(s) or Guaranteed Account
During the Accumulation Period:
Before an Annuity Payout Option is elected, all or any portion of
the Adjusted Account Value of the Certificate Holder's Account may
be transferred from any Subaccount or Guaranteed Term of the
Guaranteed Account:
(a) To any other Subaccount; or
(b) To any Guaranteed Term of the Guaranteed Account made
available in the current Contribution Period, subject to
terms and conditions specified by Aetna.
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 withdrawn or transferred
will be withdrawn first from the oldest Contribution 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 the Schedule - Accumulation Period.
Additional Transfers may be subject to a Transfer fee as shown on
the Schedule - Accumulation Period.
GM-VA-98(NY) Page 16
<PAGE>
3.07 Transfer of Account Value from the Subaccount(s) or Guaranteed
Account During the Accumulation Period (Cont'd):
Amounts transferred from the Guaranteed Account under the Dollar
Cost Averaging program, or amounts transferred as a Matured Term
Value on or within one calendar month of a Maturity Date do not
count against the annual Transfer limit.
Amounts allocated to Guaranteed Account Guaranteed Terms may not
be transferred to the Subaccounts or to another Guaranteed Term
during a Contribution Period or for 90 days after the close of a
Contribution Period except for:
(a) Matured Term Value(s) during the calendar month following
the Maturity Date;
(b) Amounts applied to an Annuity Payout Option;
(c) Amounts transferred under the Dollar Cost Averaging program;
(d) Amounts distributed under a Systematic Distribution Option;
and
(e) Amounts transferred by Aetna if Dollar Cost Averaging is
discontinued.
3.08 Notice to the Certificate Holder:
The Certificate Holder will receive quarterly statements from
Aetna of:
(a) The value of any amounts held in:
(1) The Guaranteed Account; and
(2) The Subaccount(s) under the Separate Account;
(b) The number of any accumulation units; and
(c) The accumulation unit value;
(d) The amount available to provide a paid-up annuity benefit;
and (e) The amount available for withdrawal (may be subject
to a DSC or an MVA).
3.09 Loans:
Loans are not available under this Contract.
3.10 Systematic Distribution Options:
Aetna may, from time to time, make one or more Systematic
Distribution Options available during the Accumulation Period.
When a Systematic Distribution Option is elected, Aetna will make
automatic payments from the Certificate Holder's Account. No
Deferred Sales Charge or MVA will apply to the automatic payments
made under a Systematic Distribution Option.
Any Systematic Distribution Option will be subject to the
following criteria:
(a) Any Systematic Distribution Option will be made available on
the basis of objective criteria consistently applied;
(b) The availability of any Systematic Distribution Option may
be limited by terms and conditions applicable to the
election of such Systematic Distribution Option; and
(c) Aetna may discontinue the availability of a Systematic
Distribution Option at any time. Except to the extent
required to comply with applicable law, discontinuance of a
Systematic Distribution Option will apply only to future
elections and will not affect Systematic Distribution
Options in effect at the time an option is discontinued.
3.11 Death Benefit Amount:
The amount of the death benefit is described in Section IV - OPTION
PACKAGES.
GM-VA-98(NY) Page 17
<PAGE>
3.12 Death Benefit Options Available to Beneficiary:
Prior to any election, or until amounts must be otherwise
distributed under this section, the Account Value will be retained
in the Account. The Beneficiary has the right to allocate or
reallocate any amount to any of the available investment options
(subject to an MVA, if applicable). If the Certificate Holder has
specified the form of payment to the Beneficiary, the death
benefit will be paid as elected by the Certificate Holder in the
Beneficiary designation, to the extent permitted by section 72(s)
of the Code. If the Certificate Holder has not specified a form of
payment, the Beneficiary may elect one of the following options.
(a) When the Certificate Holder is the Annuitant or when the
Certificate Holder is a nonnatural person, and the Annuitant
dies:
(1) If the Beneficiary is the surviving spouse, the spousal
Beneficiary will be the successor Certificate Holder
and may exercise all Certificate Holder rights under
the Contract and continue in the Accumulation Period,
or may elect (i) or (ii) below. Under the Code,
distributions from the Account are not required until
the spousal Beneficiary's death. The spousal
Beneficiary may elect to:
(i) Apply some or all of the Adjusted Account Value to
an Annuity Payout Option (see Section V); or
(ii) Receive, at any time, a lump sum payment equal to the
Adjusted Account Value.
(2) If the Beneficiary is other than the surviving spouse,
then options (i) or (ii) above apply. Any portion of
the Adjusted Account Value not applied to an Annuity
Payout Option within one year of the death must be
distributed within five years of the date of death.
(3) If no Beneficiary exists, a lump sum payment equal to
the Adjusted Account Value must be made to the
Annuitant's estate within five years of the date of
death.
(4) If the Beneficiary is an entity, a lump sum payment
equal to the Adjusted Account Value must be made within
five years of the date of death, unless otherwise
permitted by IRS regulation or ruling.
(b) When the Certificate Holder is not the Annuitant and the
Certificate Holder dies:
(1) If the Beneficiary is the Certificate Holder's
surviving spouse, the spousal Beneficiary will be the
successor Certificate Holder and may exercise all
Certificate Holder rights under the Contract and
continue in the Accumulation Period, or may elect (i)
or (ii) below. Under the Code, distributions from the
Account are not required until the spousal
Beneficiary's death. The spousal Beneficiary may elect
to:
(i) Apply some or all of the Adjusted Account Value to
an Annuity Payout Option (see Section V); or
(ii) Receive, at any time, a lump sum payment equal to
the Withdrawal Value.
(2) If the Beneficiary is other than the Certificate
Holder's surviving spouse, then options (i) or (ii)
under (1) above apply. Any portion of the death benefit
not applied to an Annuity Payout Option within one year
of the Certificate Holder's death must be distributed
within five years of the date of death.
(3) If no Beneficiary exists, a lump sum payment equal to
the Withdrawal Value must be made to the Certificate
Holder's estate within five years of the date of death.
(4) If the Beneficiary is an entity, a lump sum payment
equal to the Withdrawal Value must be made within five
years of the date of death, unless otherwise permitted
by IRS regulation or ruling.
(c) When the Certificate Holder is a natural person and not the
Annuitant and the Annuitant dies, the Beneficiary (or the
Certificate Holder if no Beneficiary exists) may elect to:
(1) Apply all or some of the Adjusted Account Value to an
Annuity Payout Option within 60 days of the date of
death; or
(2) Receive a lump sum payment equal to the Adjusted
Account Value.
GM-VA-98(NY) Page 18
<PAGE>
3.13 Liquidation of Withdrawal Value:
All or any portion of the Account Value may be withdrawn at any
time. Withdrawal requests may be submitted as a percentage of the
Account Value or as a specific dollar amount. Purchase Payment
amounts are withdrawn first, and then the excess value, if any.
Partial withdrawal amounts are withdrawn on a pro rata basis from
the Subaccount(s) and/or the Guaranteed Term(s) Groups of the
Guaranteed Account in which the Account Value is invested. Within
a Guaranteed Term Group, the amount to be withdrawn or
transferred will be withdrawn first from the oldest Contribution
Period, then from the next oldest, and so on until the amount
requested is satisfied.
After deduction of the Maintenance Fee, if applicable, the
withdrawn amount shall be reduced by a Deferred Sales Charge, if
applicable. An MVA may apply to amounts withdrawn from the
Guaranteed Account.
3.14 Deferred Sales Charge:
The Deferred Sales Charge only applies to the Purchase Payment(s)
portion withdrawn and varies according to the elapsed time since
deposit (see Schedule - Accumulation Period). Purchase Payment
amounts are withdrawn in the same order they were applied.
No Deferred Sales Charge is deducted from any portion of the
Purchase Payment which is paid:
(a) To a Beneficiary due to the Annuitant's death before Annuity
Payments start, up to a maximum of the aggregate Purchase
Payment(s) minus the total of all partial surrenders,
amounts applied to an Annuity Payout Option and deductions
made prior to the Annuitant's date of death;
(b) For an Annuity Payout Option (see Section V);
(c) As a distribution under a Systematic Distribution Option;
(d) For a full withdrawal of the Account where the Account Value
is $2,500 or less and no withdrawals have been taken from
the Account within the prior 12 months;
(e) By Aetna under Section III - Payment of Adjusted Account
Value;
(f) Under a qualified Contract when the amount withdrawn is
equal to the minimum distribution required by the Code for
the Account, calculated using a method permitted under the
Code and agreed to by Aetna;
(g) As a free withdrawal as described in Section IV - OPTION
PACKAGES; or
3.15 Payment of Withdrawal Value:
Under certain emergency conditions, Aetna may defer payment:
(a) For a period of up to six months (unless not allowed by
state law); or
(b) As provided by federal law.
3.16 Payment of Adjusted Account Value:
Upon 90 days written notice to the Certificate Holder, Aetna will
terminate any Account if the Account Value becomes less than
$2,000 immediately following any partial withdrawal and provided
no Purchase Payments have been made in three years. Aetna does not
intend to exercise this right in cases where an Account is reduced
to $2,000 or less solely due to investment performance. A Deferred
Sales Charge will not be deducted from the Adjusted Account Value.
3.17 Reinstatement:
The Certificate Holder may reinstate the proceeds of a full
withdrawal, subject to terms and conditions established by Aetna.
GM-VA-98(NY) Page 19
<PAGE>
IV. OPTION PACKAGES
- --------------------------------------------------------------------------------
The Contract offers three Option Packages regarding calculation of the death
benefit and the ability to withdraw money free of Deferred Sales Charge. The
Option Package selected is reflected in the Schedule-Accumulation Period
attached to the Certificate. At initial purchase, the Schedule Effective Date is
the same as the Account Effective Date. If, at a later date, the Certificate
Holder wishes to replace the current Option Package with another available
Option Package, the Certificate Holder may do so upon any anniversary of the
Account Effective Date.
A different Schedule-Accumulation Period may apply to each Certificate Holder
depending upon the Option Package selected.
Below is a description of the ability to elect other Option Packages and the
contractual provisions of each Option Package.
4.01 Election of Option Packages:
Any Certificate Holder, who meets the applicable minimum Account
Value required by Aetna, may elect to replace the Option Package
in effect with one of the other available Option Packages. The
eligible Certificate Holder may make the election during the sixty
day period prior to and including any anniversary of the Account
Effective Date. Such election must be made in writing and received
in good order at Aetna's home office during the election period.
The effective date of the newly elected Option Package is the
anniversary of the Account Effective Date at the end of the sixty
day election period. Aetna will issue another Schedule reflecting
the new Option Package chosen. The new Schedule will reflect the
revisions to the Certificate Holder's benefits during the
Accumulation Period, namely:
The new Schedule Effective Date,
The revised Charges to Separate Account,
The calculation of the death benefit, and
The revised ability to withdraw money free of
Deferred Sales Charge
All other Contract features remain in effect from the Account
Effective Date.
4.02 Description of Option Package I:
Deferred Sales Charge:
In addition to the events described in Section III - Deferred
Sales Charge, the total amount that may be withdrawn each Account
Year without a Deferred Sales Charge cannot exceed 10% of the
Account Value less:
(1) Any amount(s) withdrawn and/or requested for withdrawal
under a Systematic Distribution Option, or
(2) Any amount(s) taken as a minimum required distribution as
described in Section III - Deferred Sales Charge.
Death Benefit Calculation During the Accumulation Period:
If the Certificate Holder or Annuitant dies before an Annuity
Payout Option starts, the Beneficiary is entitled to a death
benefit. If the Account is owned jointly, the death benefit
applies at the death of the first joint Certificate Holder to die.
The amount of the death benefit is determined as follows:
(a) Death of the Annuitant.
The death benefit is the greater of:
(1) The sum of all Purchase Payment(s) made, adjusted for
amount(s) withdrawn or applied to an Annuity Payout
Option as of the Claim Date; or
(2) The Account Value on the Claim Date.
GM-VA-98(NY) Page 20
<PAGE>
4.02 Description of Option Package I (Cont'd):
On the Claim Date, if the amount of the death benefit is
greater than the Account Value, the amount by which the
death benefit exceeds the Account Value will be deposited
and allocated to the money market fund available through the
Separate Account.
The amount paid to the Beneficiary will equal the Adjusted
Account Value on the date the payment request is processed.
This amount may be greater or less than the amount of the
death benefit on the Claim Date. The Beneficiary may elect a
death benefit payment option as permitted in Section III
Death Benefit Options Available to Beneficiary.
(b) Death of the Certificate Holder if the Certificate Holder is
not the Annuitant.
On the Claim Date, the amount of the death benefit equals
the Account Value.
The amount paid to the Beneficiary will equal the Adjusted
Account Value on the date the payment request is processed.
A Deferred Sales Charge may apply to any full or partial
payment of the death benefit. The Beneficiary may elect a
death benefit payment option as permitted in Section III -
Death Benefit Options Available to Beneficiary.
(c) Death of a spouse who is the Beneficiary of a Certificate
Holder/Annuitant and who becomes a successor Certificate
Holder/ Annuitant.
The amount of the death benefit paid to the Beneficiary at
the death of a successor Certificate Holder/Annuitant is the
greater of the values as described in (a) above except that
in calculating (a)(1), the Account Value on the Claim Date
for the prior Certificate Holder's death is treated as the
initial Purchase Payment.
Charges to Separate Account:
See Schedule-Accumulation Period.
4.03 Description of Option Package II:
Deferred Sales Charge:
In addition to the events described in Section III - Deferred
Sales Charge, the total amount that may be withdrawn each Account
Year without a Deferred Sales Charge cannot exceed 10% of the
Account Value less:
(1) Any amount(s) withdrawn and/or requested for withdrawal
under a Systematic Distribution Option, or
(2) Any amount(s) taken as a minimum required distribution as
described in Section III - Deferred Sales Charge.
Death Benefit Calculation During the Accumulation Period:
If the Certificate Holder or Annuitant dies before an Annuity
Payout Option starts, the Beneficiary is entitled to a death
benefit. If the Account is owned jointly, the death benefit
applies at the death of the first joint Certificate Holder to
die. The amount of the death benefit is determined as follows:
(a) Death of the Annuitant.
The death benefit is the greatest of:
(1) The sum of all Purchase Payment(s) made, adjusted for
amount(s) withdrawn or applied to an Annuity Payout
Option as of the Claim Date; or
(2) The Account Value on the Claim Date; or
(3) The "Step-up Value" on the Claim Date.
GM-VA-98(NY) Page 21
<PAGE>
4.03 Description of Option Package II (Cont'd):
On the Schedule Effective Date, the Step-up Value is the greater of:
(1) The Account Value; or
(2) The Step-up Value, if any, calculated on the anniversary prior to
the Schedule Effective Date, adjusted for Purchase Payments(s)
made and amount(s) withdrawn or applied to an Annuity Payout
Option during the prior Account Year.
Thereafter, on each anniversary of the Schedule Effective Date
until the anniversary immediately preceding the Annuitant's 85th
birthday or death, whichever is earlier, the Step-up Value is
equal to the greater of:
(a) The Step-up Value most recently calculated, adjusted for
Purchase Payment(s) made and amount(s) withdrawn or applied
to an Annuity Payout Option during the prior Account Year;
or
(b) The Account Value on that anniversary of the Schedule
Effective Date.
On the Claim Date, the Step-up Value shall equal the Step-up
Value calculated prior to death. It is adjusted for Purchase
Payment(s) made and amount(s) withdrawn or applied to an
Annuity Payout Option since the anniversary on which the
Step-up Value was calculated.
On the Claim Date, if the amount of the death benefit is greater
than the Account Value, the amount by which the death benefit
exceeds the Account Value will be deposited and allocated to the
money market fund available through the Separate Account.
The amount paid to the Beneficiary will equal the Adjusted
Account Value on the date the payment request is processed. This
amount may be greater or less than the amount of the death
benefit on the Claim Date. The Beneficiary may elect a death
benefit payment option as permitted in Section III - Death
Benefit Options Available to the Beneficiary.
(b) Death of the Certificate Holder if the Certificate Holder is
not the Annuitant.
On the Claim Date, the amount of the death benefit equals
the Account Value.
The amount paid to the Beneficiary will equal the Adjusted
Account Value on the date the payment request is processed.
A Deferred Sales Charge may apply to any full or partial
payment of the death benefit. The Beneficiary may elect a
death benefit payment option as permitted in Section III -
Death Benefit Options Available to the Beneficiary.
(c) Death of a spouse who is the Beneficiary of a Certificate
Holder/Annuitant and who becomes a successor Certificate
Holder/ Annuitant.
The amount of the death benefit paid to the Beneficiary at
the death of a successor Certificate Holder/Annuitant is the
greater of the values as described in (a) above except that:
(1) In calculating (a)(1), the Account Value on the Claim
Date for the prior Certificate Holder's death is
treated as the initial Purchase Payment; and
(2) In calculating (a)(3), the Step-up Value on the Claim
Date for the prior Certificate Holder's death is the
initial Step-up Value.
Charges to Separate Account:
See Schedule-Accumulation Period.
GM-VA-98(NY) Page 22
<PAGE>
4.04 Description of Option Package III:
Deferred Sales Charge:
In addition to the events described in Section III - Deferred Sales
Charge, the total amount that may be withdrawn each Account Year
without a Deferred Sales Charge cannot exceed 10% of the Account Value
less:
(1) Any amount(s) withdrawn and/or requested for withdrawal under a
Systematic Distribution Option, or
(2) Any amount(s) taken as a minimum required distribution as
described in Section III - Deferred Sales Charge.
If the entire 10% of Account Value free of Deferred Sales Charge is
not taken in any Account Year, the Certificate Holder may accumulate
in successive Account Years the percentage not taken. The amount
eligible each Account Year for withdrawal without a Deferred Sales
Charge cannot exceed 30% of the Account Value less any amount(s)
withdrawn and/or requested for withdrawal under a Systematic
Distribution Option, or taken as a minimum required distribution as
described in Section III - Deferred Sales Charge, during the Account
Year.
Death Benefit Calculation During the Accumulation Period:
If the Certificate Holder or Annuitant dies before an Annuity Payout
Option starts, the Beneficiary is entitled to a death benefit. If the
Account is owned jointly, the death benefit applies at the death of
the first joint Certificate Holder to die. The amount of the death
benefit is determined as follows:
(a) Death of the Annuitant.
The death benefit is the greatest of:
(1) The sum of all Purchase Payment(s) made, adjusted for
amount(s) withdrawn or applied to an Annuity Payout Option
as of the Claim Date; or
(2) The Account Value on the Claim Date; or
(3) The "Step-up Value" on the Claim Date.
On the Schedule Effective Date, the Step-up Value is the greater
of:
(1) The Account Value; or
(2) The Step-up Value, if any, calculated on the anniversary
prior to the Schedule Effective Date, adjusted for Purchase
Payments(s) made and amount(s) withdrawn or applied to an
Annuity Payout Option during the prior Account Year.
Thereafter, on each anniversary of the Schedule Effective
Date until the anniversary immediately preceding the
Annuitant's 85th birthday or death, whichever is earlier,
the Step-up Value is equal to the greater of:
(a) The Step-up Value most recently calculated, adjusted
for Purchase Payment(s) made and amount(s) withdrawn or
applied to an Annuity Payout Option during the prior
Account Year; or
(b) The Account Value on that anniversary of the Schedule
Effective Date.
On the Claim Date, the Step-up Value shall equal the Step-up
Value calculated prior to death. It is adjusted for Purchase
Payment(s) made and amount(s) withdrawn or applied to an
Annuity Payout Option since the anniversary on which the
Step-up Value was calculated.
GM-VA-98(NY) Page 23
<PAGE>
On the Claim Date, if the amount of the death benefit is
greater than the Account Value, the amount by which the
death benefit exceeds the Account Value will be deposited
and allocated to the money market fund available through the
Separate Account.
The amount paid to the Beneficiary will equal the Adjusted
Account Value on the date the payment request is processed.
This amount may be greater or less than the amount of the
death benefit on the Claim Date. The Beneficiary may elect a
death benefit payment option as permitted in Section III -
Death Benefit Options Available to the Beneficiary.
(b) Death of the Certificate Holder if the Certificate
Holder is not the Annuitant.
On the Claim Date, the amount of the death benefit
equals the Account Value.
The amount paid to the Beneficiary will equal the
Adjusted Account Value on the date the payment request
is processed. A Deferred Sales Charge may apply to any
full or partial payment of the death benefit. The
Beneficiary may elect a death benefit payment option as
permitted in Section III - Death Benefit Options
Available to the Beneficiary.
(c) Death of a spouse who is the Beneficiary of a
Certificate Holder/Annuitant and who becomes a
successor Certificate Holder/ Annuitant.
The amount of the death benefit paid to the Beneficiary
at the death of a successor Certificate
Holder/Annuitant is the greater of the values as
described in (a) above except that:
(1) In calculating (a)(1), the Account Value on the
Claim Date for the prior Certificate Holder's
death is treated as the initial Purchase Payment;
and
(2) In calculating (a)(3), the Step-up Value on the
Claim Date for the prior Certificate Holder's
death is the initial Step-up Value.
Charges to Separate Account:
See Schedule-Accumulation Period.
GM-VA-98(NY) Page 24
<PAGE>
V. Annuity Payout Provisions
- --------------------------------------------------------------------------------
5.01 Annuity Payout Options:
Annuity Payout Option 1 - Payments for a specified period:
Payments are made for the number of years specified by the
Certificate Holder. The number of years must be at least five and
not more than 30.
Annuity Payout Option 2 - Life income based on the life of one
Annuitant:
When this option is elected, the Certificate Holder must choose one of
the following:
(a) Payments cease at the death of the Annuitant;
(b) Payments are guaranteed for a specified period from five to 30
years;
(c) Cash refund: when the Annuitant dies, the Beneficiary will
receive a lump sum payment equal to the amount applied to the
Annuity Payout Option (less any premium tax, if applicable) less
the total amount of Annuity Payments made prior to such death.
This cash refund feature is only available if the total amount
applied to the Annuity Payout Option is allocated to a fixed
Annuity Payment.
Annuity Payout Option 3 - Life income based on the lives of two
Annuitants:
Payments are made for the lives of two Annuitants, one of whom is
designated the primary Annuitant and the other the secondary
Annuitant, and cease when both Annuitants have died. When this
option is elected, the Certificate Holder must also choose one of
the following:
(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) 100% of the payment to continue after the first death and
payments are guaranteed for a period of five to 30 years;
(e) 100% of the payment to continue at the death of the
secondary Annuitant and 50% of the payment to continue at
the death of the primary Annuitant; or
(f) 100% of the payment continues after the first death with a
cash refund feature. When the primary Annuitant and
secondary Annuitant die, the Beneficiary will receive a lump
sum payment equal to the amount applied to the Annuity
Payout Option (less any premium tax) less the total amount
of Annuity Payments paid prior to such death. This cash
refund feature is only available if the total amount applied
to the Annuity Payout Option is allocated to a fixed Annuity
Payment.
If a fixed Annuity Payment is chosen under Annuity Payout Option
1, 2 (a) or (b), or 3 (a) or (d), the Certificate Holder may
elect, at the time the Annuity Payout Option is selected, an
annual increase of one, two or three percent compounded annually.
As allowed under applicable state law, Aetna reserves the right
to offer additional Annuity Payout Options.
5.02 Annuity Payment Choices:
The Certificate Holder may tell Aetna to apply any portion of the
Adjusted Account Value (minus any premium tax, if applicable,) to
any Annuity Payout Option . The first Annuity Payment may not be
earlier than one calendar year after the initial 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 Payout Option, the Certificate
Holder may tell Aetna to make a lump sum payment.
GM-VA-98(NY) Page 25
<PAGE>
5.02 Annuity Payment Choices (Cont'd):
When an Annuity Payout 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 Payment using the General Account;
(b) A variable Annuity Payment using any of the Subaccount(s)
available under this Contract for the Annuity Period; or
(c) A combination of (a) and (b).
If a fixed Annuity Payment is chosen, the payment rate for the
option chosen, shown on the tables immediately following,
reflects at least the minimum guaranteed interest rate (see
Schedule Annuity Period), but may reflect a higher interest rate.
If a variable Annuity Payment is chosen, the initial Annuity
Payment for the option elected reflects the Assumed Interest Rate
(AIR) elected (see Schedule - Annuity Period). The Certificate
Holder must allocate specified amounts among the Subaccounts
available during the Annuity Period. Aetna reserves the right to
limit the number of Subaccounts available at one time and to
limit the number of Subaccounts the Certificate Holder may select
during the Annuity Period. Subject to terms and conditions
established by Aetna, the Certificate Holder may transfer all or
any portion of the amount allocated to a Subaccount to another
Subaccount. The number of Transfers allowed without charge each
year is shown on Schedule - Annuity Period.
Transfer requests must be submitted as a percentage of the
allocation among the Subaccounts. Aetna reserves the right to
establish a minimum transfer amount. Transfers will be effective
as of the Valuation Date in which Aetna receives a transfer
request in good order at its home office.
5.03 Terms of Annuity Payout Options:
(a) When payments start, the age of the Annuitant plus the
number of years for which payments are guaranteed must not
exceed 95.
(b) An Annuity Payout 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 minimum annual Annuity
payment amount based upon increases reflected in the
Consumer Price Index-Urban, (CPI-U) since July 1, 1993.
(c) If an Annuity Payment is chosen and a larger payment would
result from applying the Withdrawal Value or, if greater,
95% of what the withdrawal would be if there were no
withdrawal fee, 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 or fixed Annuity Payment, the primary Annuitant's
and secondary Annuitant's adjusted age will be used. The
primary Annuitant's and secondary Annuitant's adjusted age
is his or her age as of the birthday closest to the Annuity
Payment commencement date reduced by one year for
commencement dates occurring during the period of time from
July 1, 1993 through December 31, 1999. The primary
Annuitant's and secondary Annuitant's age will be reduced by
two years for commencement dates occurring during the period
of time from January 1, 2000 through December 31, 2009. The
primary Annuitant's and secondary Annuitant's age will be
reduced by one additional year for Annuity commencement
dates occurring in each succeeding decade.
The attached payment rates for Annuity Payout Options 2 and
3 are based on mortality from 1983 Table a.
GM-VA-98(NY) Page 26
<PAGE>
5.03 Terms of Annuity Payout Options (Cont'd):
(e) Assumed Interest Rate (AIR) is the interest rate used to
determine the amount of the first Annuity Payment under a
variable Annuity Payment as shown on Schedule - Annuity
Period. The Separate Account must earn this rate plus enough
to cover the mortality and expense risks charges (which may
include profit) and administrative charges if future
variable Annuity Payments are to remain level, (see Schedule
- Annuity Period).
(f) Once elected, Annuity Payments cannot be commuted to a lump
sum except for variable Annuity Payments under Annuity
Payout Option 1.
5.04 Death of Annuitant/Beneficiary:
(a) Certificate Holder is the Annuitant: When the Certificate
Holder is the Annuitant and the Annuitant dies under Annuity
Payout Option 1 or 2(b), or both the primary Annuitant and
the secondary Annuitant die under Annuity Payout Option
3(d), any remaining payments will continue to the
Beneficiary, or if elected by the Beneficiary and not
prohibited by the Certificate Holder in the Beneficiary
designation, the present value of any remaining payments
will be paid in one sum to the Beneficiary. If Annuity
Payout Option 3 has been elected and the Certificate Holder
dies, the remaining payments will continue to the successor
payee. If no successor payee has been designated, the
Beneficiary will be treated as the successor payee. If the
Account has joint Certificate Holders, the surviving joint
Certificate Holder will be deemed the successor payee.
(b) Certificate Holder is not the Annuitant: When the
Certificate Holder is not the Annuitant and the Certificate
Holder dies, any remaining payments will continue to the
successor payee. If no successor payee has been designated,
the Beneficiary will be treated as the successor payee. If
the Account has joint Certificate Holders, the surviving
joint Certificate Holder will be deemed the successor payee.
If the Annuitant dies under Annuity Payout Option 1 or 2(b),
or both the primary Annuitant and secondary Annuitant die
under Annuity Payout Option 3(d), any remaining payments
will continue to the Beneficiary, or if elected by the
Beneficiary and not prohibited by the Certificate Holder in
the Beneficiary designation, the present value of any
remaining payments will be paid in one sum to the
Beneficiary. If Annuity Payout Option 3 has been elected and
the Annuitant dies, the remaining payments will continue to
the Certificate Holder.
(c) No Beneficiary Named/Surviving: If there is no Beneficiary,
the present value of any remaining payments will be paid in
one sum to the Certificate Holder, or if the Certificate
Holder is not living, then to the Certificate Holder's
estate.
(d) If the Beneficiary or the successor payee dies while
receiving Annuity Payments, any remaining payments will
continue to the successor Beneficiary/payee or upon election
by the successor Beneficiary/payee, the present value of any
remaining payments will be paid in one sum to the successor
Beneficiary/payee. If no successor Beneficiary/payee has
been designated, the present value of any remaining payments
will be paid in one sum to the Beneficiary's/payee's estate.
(e) The present value will be determined as of the Valuation
Date in which proof of death acceptable to Aetna and a
request for payment is received at Aetna's home office.
5.05 Annuity Units - Separate Account:
The number of annuity units is based on the amount of the
first variable Annuity Payment which is equal to:
(a) The portion of the Account Value applied to pay a variable
Annuity Payment (minus any applicable premium tax); divided
by
(b) 1,000; multiplied by
(c) The payment rate on the tables immediately following, for
the option chosen.
GM-VA-98(NY) Page 27
<PAGE>
5.05 Annuity Units - Separate Account (Cont'd):
Such amount, or portion, of the variable Annuity Payment will be
divided by the appropriate annuity unit value (see Section V -
Annuity Unit Value - Separate Account) on the tenth Valuation
Date before the due date of the first payment to determine the
number of annuity units. The number of annuity units remains
fixed. Each future payment is equal to the sum of the products of
each annuity unit value multiplied by the appropriate number of
annuity units. The annuity unit value on the tenth Valuation Date
prior to the due date of the payment is used.
5.06 Annuity Unit Value - Separate:
For any Valuation Date, an annuity unit value is equal to:
(a) The value for the previous Valuation Date; multiplied by
(b) The annuity net return factor(s) (see Section V - Net Return
Factor(s) - Separate Account) for the Valuation Date;
multiplied by
(c) A factor to reflect the AIR (see Schedule - Annuity Period).
The annuity unit value and Annuity Payment amount may go up or
down due to investment gain or loss.
5.07 Net Return Factor(s) - Separate Account:
The net return factor(s) are used to compute all variable Annuity
Payments for any Subaccount.
The net return factor for each Subaccount 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 Subaccount at the end of a
Valuation Date; minus
(b) The value of the shares of the Subaccount at the start of
the Valuation Date; plus or minus
(c) Taxes (or reserves for taxes) on the Separate Account (if
any); divided by
(d) The total value of the annuity units at the start of the
Valuation Date; minus
(e) A daily charge for mortality and expense risks, which may
include profit, and a daily administrative charge at the
annual rate as shown on Schedule - Annuity Period.
A net return rate may be more or less than 0%.
The value of a share of the Subaccount is equal to the net assets
of the Subaccount divided by the number of shares outstanding.
Annuity Payments shall not be changed due to changes in the
mortality or expense results or administrative charges.
GM-VA-98(NY) Page 28
<PAGE>
OPTION 1: Payments for a Specified Period
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Monthly Amount for Each $1,000*
Rates for a Fixed Annuity with a 3% Guaranteed Interest Rate
- --------------------------------------------------------------------------------
Years Payment Years Payment
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
5 $17.91 18 $5.96
6 15.14 19 5.73
7 13.16 20 5.51
8 11.68 21 5.32
9 10.53 22 5.15
10 9.61 23 4.99
11 8.86 24 4.84
12 8.24 25 4.71
13 7.71 26 4.59
14 7.26 27 4.47
15 6.87 28 4.37
16 6.53 29 4.27
17 6.23 30 4.18
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
First Monthly Amount for Each $1,000*
Rates for a Variable Annuity with a 3.5% AIR
- --------------------------------------------------------------------------------
Years Payment Years Payment
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
5 $18.12 18 $6.20
6 15.35 19 5.97
7 13.38 20 5.75
8 11.90 21 5.56
9 10.75 22 5.39
10 9.83 23 5.24
11 9.09 24 5.09
12 8.46 25 4.96
13 7.94 26 4.84
14 7.49 27 4.73
15 7.10 28 4.63
16 6.76 29 4.53
17 6.47 30 4.45
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
First Monthly Amount for Each $1,000*
Rates for a Variable Annuity with a 5% AIR
- --------------------------------------------------------------------------------
Years Payment Years Payment
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
5 $18.74 18 $6.94
6 15.99 19 6.71
7 14.02 20 6.51
8 12.56 21 6.33
9 11.42 22 6.17
10 10.51 23 6.02
11 9.77 24 5.88
12 9.16 25 5.76
13 8.64 26 5.65
14 8.20 27 5.54
15 7.82 28 5.45
16 7.49 29 5.36
17 7.20 30 5.28
- --------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GM-VA-98(NY) Page 29
<PAGE>
Option 2: Life Income Based on the Life of One Annuitant
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
Monthly Payment Amount for Each $1,000*
Rates for a Fixed Annuity with 3% Guaranteed Interest Rate
Option 2(a): Option 2(b): Option 2(b): Option 2(b): Option 2(b): Option 2(c):
Adjusted payments for payments payments payments payments Cash Refund
Age of life guaranteed guaranteed guaranteed guaranteed
Annuitant 5 years 10 years 15 years 20 years
Male Female Male Female Male Female Male Female Male Female Male Female
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
50 $4.27 $3.90 $4.26 $3.90 $4.22 $3.89 $4.17 $3.86 $4.08 $3.82 $4.04 $3.78
51 4.34 3.97 4.33 3.96 4.30 3.95 4.23 3.92 4.14 3.88 4.10 3.84
52 4.43 4.03 4.41 4.03 4.37 4.01 4.30 3.98 4.20 3.93 4.16 3.89
53 4.51 4.10 4.50 4.10 4.45 4.08 4.37 4.04 4.26 3.99 4.23 3.95
54 4.60 4.18 4.59 4.17 4.54 4.15 4.45 4.11 4.32 4.04 4.29 4.01
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.39 4.11 4.37 4.07
56 4.80 4.34 4.78 4.33 4.72 4.30 4.61 4.25 4.45 4.17 4.44 4.13
57 4.91 4.42 4.89 4.41 4.82 4.38 4.69 4.32 4.51 4.23 4.52 4.20
58 5.03 4.52 5.00 4.51 4.92 4.47 4.78 4.40 4.58 4.30 4.61 4.28
59 5.15 4.61 5.12 4.60 5.03 4.56 4.87 4.48 4.65 4.37 4.69 4.35
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.71 4.44 4.78 4.43
61 5.43 4.83 5.39 4.81 5.27 4.76 5.06 4.66 4.78 4.51 4.88 4.52
62 5.58 4.95 5.53 4.93 5.39 4.87 5.16 4.75 4.84 4.58 4.98 4.60
63 5.74 5.08 5.69 5.05 5.53 4.98 5.26 4.85 4.90 4.65 5.09 4.70
64 5.91 5.21 5.85 5.18 5.66 5.10 5.36 4.95 4.96 4.72 5.20 4.80
65 6.10 5.36 6.03 5.32 5.81 5.22 5.46 5.05 5.02 4.79 5.31 4.90
66 6.30 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.08 4.86 5.44 5.01
67 6.51 5.67 6.41 5.63 6.12 5.50 5.66 5.26 5.13 4.93 5.56 5.12
68 6.73 5.85 6.62 5.80 6.28 5.65 5.77 5.37 5.18 5.00 5.70 5.24
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 5.23 5.06 5.84 5.37
70 7.23 6.25 7.07 6.18 6.61 5.97 5.96 5.60 5.27 5.12 5.98 5.51
71 7.51 6.47 7.32 6.39 6.79 6.14 6.05 5.71 5.31 5.18 6.14 5.65
72 7.80 6.71 7.58 6.62 6.96 6.32 6.14 5.83 5.34 5.23 6.30 5.80
73 8.12 6.98 7.85 6.86 7.14 6.50 6.23 5.94 5.37 5.28 6.47 5.96
74 8.46 7.26 8.14 7.12 7.32 6.69 6.31 6.04 5.40 5.32 6.65 6.13
75 8.82 7.57 8.45 7.40 7.50 6.89 6.38 6.14 5.42 5.35 6.83 6.31
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GM-VA-98(NY) Page 30
<PAGE>
Option 2: Life Income Based on the Life of One Annuitant
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 3.5% AIR
- -------------------------------------------------------------------------------------------------
Option 2(a): Option 2(b): Option 2(b): Option 2(b): Option 2(b):
Adjusted payments for payments payments payments payments
Age of life guaranteed guaranteed guaranteed guaranteed
Annuitant 5 years 10 years 15 years 20 years
-----------------------------------------------------------------------------------
Male Female Male Female Male Female Male Female Male Female
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
50 $4.56 $4.20 $4.55 $4.19 $4.51 $4.18 $4.45 $4.15 $4.36 $4.11
51 4.64 4.26 4.62 4.25 4.58 4.24 4.51 4.21 4.42 4.16
52 4.72 4.32 4.70 4.32 4.66 4.30 4.58 4.26 4.48 4.21
53 4.80 4.39 4.79 4.38 4.74 4.36 4.65 4.32 4.53 4.27
54 4.89 4.46 4.87 4.46 4.82 4.43 4.73 4.39 4.59 4.32
55 4.99 4.54 4.97 4.53 4.91 4.50 4.80 4.46 4.65 4.38
56 5.09 4.62 5.07 4.61 5.00 4.58 4.88 4.53 4.72 4.44
57 5.20 4.71 5.17 4.70 5.10 4.66 4.96 4.60 4.78 4.50
58 5.32 4.80 5.29 4.79 5.20 4.75 5.05 4.68 4.84 4.57
59 5.44 4.90 5.41 4.88 5.31 4.84 5.14 4.76 4.91 4.63
60 5.57 5.00 5.53 4.99 5.42 4.93 5.23 4.84 4.97 4.70
61 5.71 5.11 5.67 5.09 5.54 5.03 5.32 4.93 5.03 4.77
62 5.86 5.23 5.81 5.21 5.66 5.14 5.42 5.02 5.09 4.84
63 6.02 5.36 5.97 5.33 5.79 5.25 5.51 5.11 5.16 4.91
64 6.20 5.49 6.13 5.46 5.93 5.37 5.61 5.21 5.21 4.98
65 6.38 5.64 6.31 5.60 6.07 5.49 5.71 5.31 5.27 5.05
66 6.58 5.79 6.49 5.75 6.22 5.63 5.81 5.41 5.32 5.12
67 6.79 5.95 6.69 5.91 6.38 5.76 5.91 5.52 5.38 5.18
68 7.02 6.13 6.89 6.08 6.53 5.91 6.01 5.63 5.42 5.25
69 7.26 6.32 7.11 6.26 6.70 6.06 6.11 5.74 5.47 5.31
70 7.52 6.53 7.35 6.45 6.86 6.23 6.20 5.85 5.51 5.37
71 7.80 6.75 7.59 6.66 7.03 6.39 6.29 5.96 5.54 5.42
72 8.09 6.99 7.85 6.89 7.21 6.57 6.38 6.07 5.57 5.47
73 8.41 7.26 8.12 7.13 7.38 6.75 6.46 6.17 5.60 5.51
74 8.75 7.54 8.41 7.39 7.55 6.94 6.53 6.28 5.63 5.55
75 9.12 7.85 8.71 7.66 7.73 7.13 6.61 6.38 5.65 5.59
- -------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GM-VA-98(NY) Page 31
<PAGE>
Option 2: Life Income Based on the Life of One Annuitant
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 5% AIR
- ---------------------------------------------------------------------------------------------------
Option 2(a): Option 2(b): Option 2(b): Option 2(b): Option 2(b):
Adjusted payments for payments payments payments payments
Age of life guaranteed guaranteed guaranteed guaranteed
Annuitant 5 years 10 years 15 years 20 years
--------------------------------------------------------------------------------------
Male Female Male Female Male Female Male Female Male Female
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
50 $5.48 $5.12 $5.46 $5.11 $5.41 $5.09 $5.34 $5.06 $5.24 $5.01
51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.29 5.05
52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.34 5.10
53 5.71 5.30 5.69 5.29 5.62 5.26 5.53 5.22 5.40 5.15
54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.27 5.45 5.20
55 5.89 5.44 5.86 5.43 5.79 5.39 5.67 5.34 5.51 5.25
56 5.99 5.52 5.96 5.51 5.87 5.47 5.74 5.40 5.56 5.31
57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.62 5.37
58 6.21 5.69 6.17 5.67 6.06 5.62 5.90 5.54 5.68 5.42
59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.61 5.74 5.48
60 6.46 5.89 6.41 5.87 6.28 5.80 6.06 5.69 5.79 5.55
61 6.60 6.00 6.55 5.97 6.39 5.90 6.15 5.77 5.85 5.61
62 6.75 6.11 6.69 6.08 6.51 6.00 6.24 5.86 5.91 5.67
63 6.91 6.23 6.84 6.20 6.64 6.10 6.33 5.95 5.96 5.73
64 7.09 6.37 7.00 6.33 6.77 6.22 6.42 6.04 6.02 5.80
65 7.27 6.51 7.18 6.46 6.91 6.34 6.52 6.13 6.07 5.86
66 7.47 6.66 7.36 6.61 7.05 6.46 6.61 6.23 6.12 5.92
67 7.68 6.82 7.55 6.76 7.20 6.60 6.70 6.33 6.16 5.99
68 7.91 7.00 7.76 6.93 7.35 6.74 6.80 6.43 6.21 6.04
69 8.15 7.19 7.98 7.11 7.51 6.89 6.89 6.54 6.25 6.10
70 8.41 7.39 8.21 7.30 7.67 7.04 6.97 6.64 6.28 6.15
71 8.69 7.62 8.45 7.51 7.83 7.21 7.06 6.74 6.32 6.20
72 8.99 7.86 8.70 7.73 8.00 7.38 7.14 6.85 6.35 6.25
73 9.31 8.12 8.97 7.97 8.16 7.55 7.21 6.95 6.37 6.29
74 9.65 8.41 9.26 8.23 8.33 7.73 7.29 7.04 6.39 6.33
75 10.02 8.72 9.55 8.50 8.50 7.92 7.35 7.14 6.41 6.36
- ---------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GM-VA-98(NY) Page 32
<PAGE>
Option 3: Life Income Based on the Lives of Two Annuitants
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
Monthly Payment Amount for Each $1,000*
Rates for a Fixed Annuity with 3% Guaranteed Interest Rate
Primary Annuitant is Female and Secondary Annuitant is Male
- --------------------------------------------------------------------------------------------------------
Adjusted Ages
- -----------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e) Option 3(f)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
55 50 $3.75 $4.07 $4.26 $3.75 $3.98 $3.72
55 55 3.88 4.25 4.47 3.87 4.06 3.85
55 60 3.99 4.44 4.71 3.98 4.12 3.94
60 55 4.06 4.47 4.71 4.06 4.37 4.02
60 60 4.24 4.71 4.99 4.23 4.47 4.17
60 65 4.38 4.97 5.32 4.38 4.54 4.29
65 60 4.49 5.01 5.32 4.48 4.89 4.39
65 65 4.72 5.33 5.70 4.71 5.02 4.59
65 70 4.93 5.68 6.15 4.91 5.14 4.74
70 65 5.07 5.75 6.17 5.05 5.60 4.87
70 70 5.40 6.21 6.70 5.36 5.79 5.13
70 75 5.69 6.68 7.32 5.62 5.96 5.29
75 70 5.89 6.82 7.40 5.81 6.63 5.48
75 75 6.37 7.45 8.15 6.23 6.92 5.78
75 80 6.78 8.11 8.99 6.54 7.15 5.93
- --------------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GM-VA-98(NY) Page 33
<PAGE>
Option 3: Life Income Based on the Lives of Two Annuitants
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 3.5% AIR
Primary Annuitant Is Female and Secondary Annuitant Is Male
- ------------------------------------------------------------------------------------------
Adjusted Ages
- ----------------------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e)
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $4.03 $4.36 $4.55 $4.03 $4.27
55 55 4.16 4.54 4.76 4.15 4.34
55 60 4.27 4.73 5.00 4.26 4.40
60 55 4.34 4.76 5.00 4.34 4.65
60 60 4.51 4.99 5.27 4.50 4.74
60 65 4.66 5.25 5.61 4.65 4.82
65 60 4.76 5.29 5.60 4.75 5.16
65 65 4.99 5.61 5.99 4.98 5.30
65 70 5.19 5.97 6.44 5.17 5.41
70 65 5.34 6.03 6.46 5.31 5.88
70 70 5.67 6.49 6.99 5.62 6.07
70 75 5.95 6.96 7.61 5.87 6.23
75 70 6.16 7.10 7.68 6.07 6.90
75 75 6.64 7.73 8.43 6.48 7.19
75 80 7.04 8.39 9.29 6.79 7.42
- ------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GM-VA-98(NY) Page 34
<PAGE>
Option 3: Life Income Based on the Lives of Two Annuitants
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 5% AIR
Primary Annuitant is Female and Secondary Annuitant is Male
- -------------------------------------------------------------------------------------
Adjusted Ages
- -------------------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e)
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $4.93 $5.27 $5.46 $4.93 $5.17
55 55 5.04 5.44 5.66 5.04 5.23
55 60 5.15 5.63 5.91 5.14 5.29
60 55 5.21 5.65 5.89 5.21 5.53
60 60 5.37 5.87 6.16 5.37 5.62
60 65 5.52 6.14 6.51 5.51 5.70
65 60 5.61 6.16 6.49 5.60 6.03
65 65 5.83 6.49 6.87 5.82 6.15
65 70 6.04 6.84 7.34 6.00 6.27
70 65 6.17 6.90 7.33 6.13 6.73
70 70 6.49 7.35 7.87 6.44 6.91
70 75 6.77 7.84 8.51 6.68 7.07
75 70 6.97 7.96 8.56 6.87 7.75
75 75 7.45 8.60 9.33 7.27 8.04
75 80 7.86 9.28 10.20 7.57 8.27
- -------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GM-VA-98(NY) Page 35
<PAGE>
Option 3: Life Income Based on the Lives of Two Annuitants
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------
Monthly Payment Amount for Each $1,000*
Rates for a Fixed Annuity with 3% Guaranteed Interest Rate
Primary Annuitant is Male and Secondary Annuitant is Female
- -----------------------------------------------------------------------------------------------------
Adjusted Ages
- ---------------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e) Option 3(f)
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
55 50 $3.69 $4.05 $4.27 $3.69 $4.13 $3.67
55 55 3.88 4.25 4.47 3.87 4.25 3.85
55 60 4.06 4.47 4.71 4.06 4.36 4.02
60 55 3.99 4.44 4.71 3.98 4.55 3.94
60 60 4.24 4.71 4.99 4.23 4.70 4.17
60 65 4.49 5.01 5.32 4.48 4.85 4.39
65 60 4.38 4.97 5.32 4.38 5.10 4.29
65 65 4.72 5.33 5.70 4.71 5.32 4.59
65 70 5.07 5.75 6.17 5.05 5.54 4.87
70 65 4.93 5.68 6.15 4.91 5.86 4.74
70 70 5.40 6.21 6.70 5.36 6.18 5.13
70 75 5.89 6.82 7.40 5.81 6.49 5.48
75 70 5.69 6.68 7.32 5.62 6.92 5.29
75 75 6.37 7.45 8.15 6.23 7.40 5.78
75 80 7.07 8.34 9.16 6.78 7.85 6.17
- -----------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GM-VA-98(NY) Page 36
<PAGE>
Option 3: Life Income Based on the Lives of Two Annuitants
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 3.5% AIR
Primary Annuitant is Male and Secondary Annuitant is Female
- ---------------------------------------------------------------------------------------
Adjusted Ages
- --------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e)
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $3.97 $4.35 $4.56 $3.97 $4.42
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.34 4.76 5.00 4.34 4.64
60 55 4.27 4.73 5.00 4.26 4.83
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.76 5.29 5.60 4.75 5.13
65 60 4.66 5.25 5.61 4.65 5.39
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.34 6.03 6.46 5.31 5.81
70 65 5.19 5.97 6.44 5.17 6.14
70 70 5.67 6.49 6.99 5.62 6.47
70 75 6.16 7.10 7.68 6.07 6.77
75 70 5.95 6.96 7.61 5.87 7.20
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.33 8.62 9.45 7.02 8.13
- ---------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GM-VA-98(NY) Page 37
<PAGE>
Option 3: Life Income Based on the Lives of Two Annuitants
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 5% AIR
Primary Annuitant Is Male and Secondary Annuitant is Female
- -------------------------------------------------------------------------------------
Adjusted Ages
- -------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e)
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $4.88 $5.26 $5.48 $4.88 $5.34
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.21 5.65 5.89 5.21 5.53
60 55 5.15 5.63 5.91 5.14 5.73
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.61 6.16 6.49 5.60 6.01
65 60 5.52 6.14 6.51 5.51 6.28
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.17 6.90 7.33 6.13 6.67
70 65 6.04 6.84 7.34 6.00 7.03
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.97 7.96 8.56 6.87 7.62
75 70 6.77 7.84 8.51 6.68 8.08
75 75 7.45 8.60 9.33 7.27 8.55
75 80 8.14 9.49 10.35 7.80 8.98
- -------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GM-VA-98(NY) Page 38
<PAGE>
- --------------------------------------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
P.O. Box 30670
Hartford, Connecticut 06150-0670
(800) 531-4547
Group Variable, Fixed, or Combination Annuity Contract
Nonparticipating
- --------------------------------------------------------------------------------
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. AMOUNTS ALLOCATED TO THE GUARANTEED ACCOUNT, IF WITHDRAWN
BEFORE THE GUARANTEED TERM MATURITY DATE, MAY BE SUBJECT TO A MARKET VALUE
ADJUSTMENT. THE MARKET VALUE ADJUSTMENT MAY RESULT IN AN INCREASE OR A DECREASE
IN THE ACCOUNT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT APPLY TO A
GUARANTEED TERM AT THE TIME OF ITS MATURITY.
GM-VA-98(NY)
- --------------------------------------------------------------------------------
[Aetna logo] EX-99.B.4.4
Form of Variable Annuity Contract Certificate
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
P.O. Box 30670
Hartford, Connecticut 06150-0670
(800) 531-4547
You may call the toll free number shown above to
request information about this Certificate.
Aetna Life Insurance and Annuity Company, a stock
company, herein called Aetna, agrees to pay the
benefits stated in this Certificate.
- --------------------------------------------------------------------------------
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 Account 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 or endorsements issued to you under the
stated Contract and Account numbers. This Certificate
is for information only and is not part of the
Contract. The Schedule - Accumulation Period reflects
the Option Package you elected and its effective date.
The variable features of the Group Contract are
described in parts III, IV and V.
- --------------------------------------------------------------------------------
Right to Cancel You may cancel your Account within 10 days by returning
it to the agent from whom it was purchased, or to Aetna
at the address shown above. Within seven days of
receiving this Certificate at its home office, Aetna
will return the amount of Purchase Payment(s) received.
President Secretary
- --------------------------------------------------------------------------------
Contract Holder Group Annuity Contract No.
SPECIMEN SPECIMEN
- --------------------------------------------------------------------------------
Certificate Holder Account No.
SPECIMEN SPECIMEN
SPECIMEN Account Effective Date
SPECIMEN
- --------------------------------------------------------------------------------
Annuitant Name Type of Plan
SPECIMEN SPECIMEN
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. AMOUNTS ALLOCATED TO THE GUARANTEED ACCOUNT, IF WITHDRAWN
BEFORE THE GUARANTEED TERM MATURITY DATE, MAY BE SUBJECT TO A MARKET VALUE
ADJUSTMENT. THE MARKET VALUE ADJUSTMENT MAY RESULT IN AN INCREASE OR A DECREASE
IN THE ACCOUNT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT APPLY TO A
GUARANTEED TERM AT THE TIME OF ITS MATURITY.
GMC-VA-98(NY)
<PAGE>
Specifications
Guaranteed There is a minimum guaranteed rate for Purchase Payment(s)
Rate held in the Guaranteed Account. (See Schedule - Accumulation
Period.)
Deductions from There will be deductions for mortality and expense risk as
the Separate well as administrative charges. (See Schedule - Accumulation
Account Period and Schedule - Annuity Period.)
Deduction from Purchase Payment(s) may be subject to a deduction for
Purchase premium taxes. (See Section III - Purchase Payment.)
Payment(s)
Deferred Sales There may be a charge deducted upon withdrawal. (See
Charge Schedule - Accumulation Period.)
Assumed If a variable Annuity Payment is chosen, an Assumed Interest
Interest Rate Rate of 5.0% may be elected. If 5.0% is not elected, Aetna
will use an Assumed Interest Rate of 3.5%.
- --------------------------------------------------------------------------------
This Contract is a legal contract and constitutes the entire legal relationship
between Aetna and the Contract Holder.
READ THIS CONTRACT CAREFULLY. This Contract sets forth, in detail, all of the
rights and obligations of both you and Aetna. THEREFORE, IT IS IMPORTANT THAT
YOU READ THIS CONTRACT CAREFULLY.
GMC-VA-98(NY) Page 2
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package I was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 0.80%
-----
Total Separate Account Charges 0.95%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Fidelity VIP High Income Portfolio
Aetna Bond VP Fidelity VIP II Contrafund Portfolio
Aetna Growth VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth and Income VP Janus Aspen Balanced Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Growth Portfolio
Aetna International VP Janus Aspen Worldwide Growth Portfolio
Aetna Money Market VP MFS Total Return Series
Aetna Real Estate Securities VP Oppenheimer Aggressive Growth Fund/VA
Aetna Small Company VP Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Growth and Income Fund Portfolio Partners MFS Research Growth Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GMC-VA-98(NY)N-1 Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------------
<S> <C>
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)N-1 Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks in the Annuity Period. The administrative
charge is established upon election of an Annuity Payout Option. This
charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is not
to decrease, the annuity return factor under the Separate Account for
that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free Transfers
are allowed each Account Year among the Subaccounts available during
the Annuity Period. Thereafter, Aetna reserves the right to charge $10
for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)N-1 Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package I was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 0.80%
-----
Total Separate Account Charges 0.95%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Janus Aspen Aggressive Growth Portfolio
Aetna Bond VP Janus Aspen Balanced Portfolio
Aetna Growth VP Janus Aspen Growth Portfolio
Aetna Growth and Income VP Janus Aspen Worldwide Growth Portfolio
Aetna Index Plus Large Cap VP MFS Total Return Series
Aetna International VP Mitchell Hutchins Growth and Income Portfolio
Aetna Money Market VP Mitchell Hutchins Tactical Allocation Portfolio
Aetna Real Estate Securities VP Mitchell Hutchins Small Cap Portfolio
Aetna Small Company VP Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Growth Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth and Income Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP High Income Portfolio Portfolio Partners Scudder International Growth Portfolio
Fidelity VIP II Contrafund Portfolio
</TABLE>
GMC-VA-98(NY)N-1(MH) Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------------
<S> <C>
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)N-1(MH) Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks in the Annuity Period. The administrative
charge is established upon election of an Annuity Payout Option. This
charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is not
to decrease, the annuity return factor under the Separate Account for
that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free Transfers
are allowed each Account Year among the Subaccounts available during
the Annuity Period. Thereafter, Aetna reserves the right to charge $10
for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)N-1(MH) Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package I was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 0.80%
-----
Total Separate Account Charges 0.95%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Fidelity VIP High Income Portfolio
Aetna Bond VP Fidelity VIP II Contrafund Portfolio
Aetna Growth VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth and Income VP Janus Aspen Balanced Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Growth Portfolio
Aetna International VP Janus Aspen Worldwide Growth Portfolio
Aetna Money Market VP MFS Total Return Series
Aetna Real Estate Securities VP Oppenheimer Aggressive Growth Fund/VA
Aetna Small Company VP Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Growth and Income Fund Portfolio Partners MFS Research Growth Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GMC-VA-98(NY)I-1 Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------------
<S> <C>
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)I-1 Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks in the Annuity Period. The administrative
charge is established upon election of an Annuity Payout Option. This
charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is not
to decrease, the annuity return factor under the Separate Account for
that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free Transfers
are allowed each Account Year among the Subaccounts available during
the Annuity Period. Thereafter, Aetna reserves the right to charge $10
for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)I-1 Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package I was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 0.80%
-----
Total Separate Account Charges 0.95%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Janus Aspen Aggressive Growth Portfolio
Aetna Bond VP Janus Aspen Balanced Portfolio
Aetna Growth VP Janus Aspen Growth Portfolio
Aetna Growth and Income VP Janus Aspen Worldwide Growth Portfolio
Aetna Index Plus Large Cap VP MFS Total Return Series
Aetna International VP Mitchell Hutchins Growth and Income Portfolio
Aetna Money Market VP Mitchell Hutchins Tactical Allocation Portfolio
Aetna Real Estate Securities VP Mitchell Hutchins Small Cap Portfolio
Aetna Small Company VP Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Growth Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth and Income Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP High Income Portfolio Portfolio Partners Scudder International Growth Portfolio
Fidelity VIP II Contrafund Portfolio
</TABLE>
GMC-VA-98(NY)I-1(MH) Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------------
<S> <C>
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)I-1(MH) Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks in the Annuity Period. The administrative
charge is established upon election of an Annuity Payout Option. This
charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is not
to decrease, the annuity return factor under the Separate Account for
that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free Transfers
are allowed each Account Year among the Subaccounts available during
the Annuity Period. Thereafter, Aetna reserves the right to charge $10
for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)I-1(MH) Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package II was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.10%
-----
Total Separate Account Charges 1.25%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Fidelity VIP High Income Portfolio
Aetna Bond VP Fidelity VIP II Contrafund Portfolio
Aetna Growth VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth and Income VP Janus Aspen Balanced Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Growth Portfolio
Aetna International VP Janus Aspen Worldwide Growth Portfolio
Aetna Money Market VP MFS Total Return Series
Aetna Real Estate Securities VP Oppenheimer Aggressive Growth Fund/VA
Aetna Small Company VP Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Growth and Income Fund Portfolio Partners MFS Research Growth Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GMC-VA-98(NY)N-2 Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------------
<S> <C>
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
</TABLE>
See Section I - DEFINITIONS for explanations
GMC-VA-98(NY)N-2 Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks in the Annuity Period. The administrative
charge is established upon election of an Annuity Payout Option. This
charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is not
to decrease, the annuity return factor under the Separate Account for
that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free Transfers
are allowed each Account Year among the Subaccounts available during
the Annuity Period. Thereafter, Aetna reserves the right to charge $10
for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)N-2 Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package II was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.10%
-----
Total Separate Account Charges 1.25%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Janus Aspen Aggressive Growth Portfolio
Aetna Bond VP Janus Aspen Balanced Portfolio
Aetna Growth VP Janus Aspen Growth Portfolio
Aetna Growth and Income VP Janus Aspen Worldwide Growth Portfolio
Aetna Index Plus Large Cap VP MFS Total Return Series
Aetna International VP Mitchell Hutchins Growth and Income Portfolio
Aetna Money Market VP Mitchell Hutchins Tactical Allocation Portfolio
Aetna Real Estate Securities VP Mitchell Hutchins Small Cap Portfolio
Aetna Small Company VP Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Growth Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth and Income Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP High Income Portfolio Portfolio Partners Scudder International Growth Portfolio
Fidelity VIP II Contrafund Portfolio
</TABLE>
GMC-VA-98(NY)N-2(MH) Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------------
<S> <C>
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
</TABLE>
See Section I - DEFINITIONS for explanations
GMC-VA-98(NY)N-2(MH) Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks in the Annuity Period. The administrative
charge is established upon election of an Annuity Payout Option. This
charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is not
to decrease, the annuity return factor under the Separate Account for
that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free Transfers
are allowed each Account Year among the Subaccounts available during
the Annuity Period. Thereafter, Aetna reserves the right to charge $10
for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)N-2(MH) Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package II was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.10%
-----
Total Separate Account Charges 1.25%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Fidelity VIP High Income Portfolio
Aetna Bond VP Fidelity VIP II Contrafund Portfolio
Aetna Growth VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth and Income VP Janus Aspen Balanced Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Growth Portfolio
Aetna International VP Janus Aspen Worldwide Growth Portfolio
Aetna Money Market VP MFS Total Return Series
Aetna Real Estate Securities VP Oppenheimer Aggressive Growth Fund/VA
Aetna Small Company VP Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Growth and Income Fund Portfolio Partners MFS Research Growth Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GMC-VA-98(NY)I-2 Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------------
<S> <C>
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)I-2 Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks in the Annuity Period. The administrative
charge is established upon election of an Annuity Payout Option. This
charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is not
to decrease, the annuity return factor under the Separate Account for
that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free Transfers
are allowed each Account Year among the Subaccounts available during
the Annuity Period. Thereafter, Aetna reserves the right to charge $10
for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)I-2 Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package II was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.10%
-----
Total Separate Account Charges 1.25%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Janus Aspen Aggressive Growth Portfolio
Aetna Bond VP Janus Aspen Balanced Portfolio
Aetna Growth VP Janus Aspen Growth Portfolio
Aetna Growth and Income VP Janus Aspen Worldwide Growth Portfolio
Aetna Index Plus Large Cap VP MFS Total Return Series
Aetna International VP Mitchell Hutchins Growth and Income Portfolio
Aetna Money Market VP Mitchell Hutchins Tactical Allocation Portfolio
Aetna Real Estate Securities VP Mitchell Hutchins Small Cap Portfolio
Aetna Small Company VP Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Growth Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth and Income Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP High Income Portfolio Portfolio Partners Scudder International Growth Portfolio
Fidelity VIP II Contrafund Portfolio
</TABLE>
GMC-VA-98(NY)I-2(MH) Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------------
<S> <C>
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)I-2(MH) Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks in the Annuity Period. The administrative
charge is established upon election of an Annuity Payout Option. This
charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is not
to decrease, the annuity return factor under the Separate Account for
that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free Transfers
are allowed each Account Year among the Subaccounts available during
the Annuity Period. Thereafter, Aetna reserves the right to charge $10
for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)I-2(MH) Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package III was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.25%
-----
Total Separate Account Charges 1.40%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Fidelity VIP High Income Portfolio
Aetna Bond VP Fidelity VIP II Contrafund Portfolio
Aetna Growth VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth and Income VP Janus Aspen Balanced Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Growth Portfolio
Aetna International VP Janus Aspen Worldwide Growth Portfolio
Aetna Money Market VP MFS Total Return Series
Aetna Real Estate Securities VP Oppenheimer Aggressive Growth Fund/VA
Aetna Small Company VP Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Growth and Income Fund Portfolio Partners MFS Research Growth Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GMC-VA-98(NY)N-3 Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------------
<S> <C>
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)N-3 Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks in the Annuity Period. The administrative
charge is established upon election of an Annuity Payout Option. This
charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is not
to decrease, the annuity return factor under the Separate Account for
that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free Transfers
are allowed each Account Year among the Subaccounts available during
the Annuity Period. Thereafter, Aetna reserves the right to charge $10
for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)N-3 Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package III was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.25%
-----
Total Separate Account Charges 1.40%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Janus Aspen Aggressive Growth Portfolio
Aetna Bond VP Janus Aspen Balanced Portfolio
Aetna Growth VP Janus Aspen Growth Portfolio
Aetna Growth and Income VP Janus Aspen Worldwide Growth Portfolio
Aetna Index Plus Large Cap VP MFS Total Return Series
Aetna International VP Mitchell Hutchins Growth and Income Portfolio
Aetna Money Market VP Mitchell Hutchins Tactical Allocation
Aetna Real Estate Securities VP Mitchell Hutchins Small Cap Portfolio
Aetna Small Company VP Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Growth Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth and Income Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP High Income Portfolio Portfolio Partners Scudder International Growth Portfolio
Fidelity VIP II Contrafund Portfolio
</TABLE>
GMC-VA-98(NY)N-3(MH) Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------------
<S> <C>
Less than 1 year 7%
1 or more but less than 2 years 6%
2 or more but less than 3 years 5%
3 or more but less than 4 years 4%
4 or more but less than 5 years 3%
5 or more but less than 6 years 2%
6 or more but less than 7 years 1%
7 years or more 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)N-3(MH) Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks in the Annuity Period. The administrative
charge is established upon election of an Annuity Payout Option. This
charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is not
to decrease, the annuity return factor under the Separate Account for
that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free Transfers
are allowed each Account Year among the Subaccounts available during
the Annuity Period. Thereafter, Aetna reserves the right to charge $10
for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)N-3(MH) Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package III was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.25%
-----
Total Separate Account Charges 1.40%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc. Fidelity VIP High Income Portfolio
Aetna Bond VP Fidelity VIP II Contrafund Portfolio
Aetna Growth VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth and Income VP Janus Aspen Balanced Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Growth Portfolio
Aetna International VP Janus Aspen Worldwide Growth Portfolio
Aetna Money Market VP MFS Total Return Series
Aetna Real Estate Securities VP Oppenheimer Aggressive Growth Fund/VA
Aetna Small Company VP Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Capital Appreciation Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Growth Fund Portfolio Partners MFS Emerging Equities Portfolio
AIM V.I. Growth and Income Fund Portfolio Partners MFS Research Growth Portfolio
AIM V.I. Value Fund Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GMC-VA-98(NY)I-3 Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------------
<S> <C>
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)I-3 Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks in the Annuity Period. The administrative
charge is established upon election of an Annuity Payout Option. This
charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is not
to decrease, the annuity return factor under the Separate Account for
that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free Transfers
are allowed each Account Year among the Subaccounts available during
the Annuity Period. Thereafter, Aetna reserves the right to charge $10
for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)I-3 Page 5
<PAGE>
Schedule - Accumulation Period
Option Package
- --------------------------------------------------------------------------------
Option Package Selected - A different Schedule - Accumulation Period will apply
depending upon the Option Package selected. (See Section IV - OPTION PACKAGES.)
Option Package III was selected.
Schedule Effective Date
June 1, 1998
Separate Account
- --------------------------------------------------------------------------------
Separate Account
Variable Annuity Account B
Charges to Separate Account
A daily charge is deducted from any portion of the Account Value
allocated to the Separate Account. The deduction is the daily
equivalent of the annual effective percentage shown in the following
chart:
<TABLE>
<S> <C>
Administrative Charge 0.15%
Mortality and Expense Risk Charge 1.25%
-----
Total Separate Account Charges 1.40%
</TABLE>
Separate Account Funds:
During the Accumulation Period the funds available with this contract are:
<TABLE>
<S> <C>
Aetna Balanced VP, Inc.
Aetna Bond VP Janus Aspen Aggressive Growth Portfolio
Aetna Growth VP Janus Aspen Balanced Portfolio
Aetna Growth and Income VP Janus Aspen Growth Portfolio
Aetna Index Plus Large Cap VP Janus Aspen Worldwide Growth Portfolio
Aetna International VP MFS Total Return Series
Aetna Money Market VP Mitchell Hutchins Growth and Income Portfolio
Aetna Real Estate Securities VP Mitchell Hutchins Tactical Allocation Portfolio
Aetna Small Company VP Mitchell Hutchins Small Cap Portfolio
AIM V.I. Capital Appreciation Fund Oppenheimer Aggressive Growth Fund/VA
AIM V.I. Growth Fund Oppenheimer Main Street Growth & Income Fund/VA
AIM V.I. Growth and Income Fund Oppenheimer Strategic Bond Fund/VA
AIM V.I. Value Fund Portfolio Partners MFS Emerging Equities Portfolio
Fidelity VIP Equity -Income Portfolio Portfolio Partners MFS Research Growth Portfolio
Fidelity VIP High Income Portfolio Portfolio Partners MFS Value Equity Portfolio
Fidelity VIP II Contrafund Portfolio Portfolio Partners Scudder International Growth Portfolio
</TABLE>
GMC-VA-98(NY)I-3(MH) Page 3
<PAGE>
Guaranteed Account
- --------------------------------------------------------------------------------
Minimum Guaranteed Rate
3.0% (effective annual rate of return)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Transfers
An unlimited number of Transfers are allowed during the Accumulation
Period. Aetna allows 12 free Transfers in any Account Year.
Thereafter, Aetna reserves the right to charge $10 for each subsequent
Transfer.
Maintenance Fee
The annual Maintenance Fee is $30. If the Account Value is $50,000 or
more on the date the Maintenance Fee is to be deducted, the
Maintenance Fee is $0.
Schedule - Accumulation Period (continued)
Separate Account and Guaranteed Account
- --------------------------------------------------------------------------------
Deferred Sales Charge
For each withdrawal, the Deferred Sales Charge will be determined as
follows:
<TABLE>
<CAPTION>
Deferred Sales Charge
Length of Time from Receipt of (as percentage of
Purchase Payment (Years) Purchase Payment)
----------------------------------------------------------------------
<S> <C>
Less than 1 year 3%
More than 1 but less than 2 years 2%
More than 2 but less than 3 years 1%
More than 3 years 0%
</TABLE>
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)I-3(MH) Page 4
<PAGE>
Schedule - Annuity Period
Separate Account - Variable Annuity Payment
- --------------------------------------------------------------------------------
Charges to Separate Account
A daily charge is deducted at an annual effective rate of 1.25% for
mortality and expense risks in the Annuity Period. The administrative
charge is established upon election of an Annuity Payout Option. This
charge will not exceed 0.25%.
Assumed Interest Rate (AIR) (Applicable only in the Annuity Period)
If a variable Annuity Payment is chosen, an AIR of 5.0% may be
elected. If 5.0% is not elected, Aetna will use an AIR of 3.5%.
If the portion of a variable Annuity Payment for any Subaccount is not
to decrease, the annuity return factor under the Separate Account for
that Subaccount 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 AIR of 3.5% is chosen; or
(b) 6.25% 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 AIR of 5% is chosen.
Transfers
When a variable Annuity Payment has been elected, four free Transfers
are allowed each Account Year among the Subaccounts available during
the Annuity Period. Thereafter, Aetna reserves the right to charge $10
for each subsequent Transfer.
General Account - Fixed Annuity Payment
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate
3.0% (effective annual rate of return)
See Section I - DEFINITIONS for explanations.
GMC-VA-98(NY)I-3(MH) Page 5
<PAGE>
Table of Contents
I. DEFINITIONS PAGE
1.01 Account .............................................. 8
1.02 Account Effective Date ............................... 8
1.03 Account Value ........................................ 8
1.04 Account Year ......................................... 8
1.05 Accumulation Period .................................. 8
1.06 Adjusted Account Value ............................... 8
1.07 Annuitant ............................................ 8
1.08 Annuity Payment ...................................... 8
1.09 Annuity Payout Options ............................... 8
1.10 Annuity Period ....................................... 8
1.11 Beneficiary .......................................... 9
1.12 Certificate Holder ................................... 9
1.13 Claim Date ........................................... 9
1.14 Code ................................................. 9
1.15 Contract ............................................. 9
1.16 Contract Holder ...................................... 9
1.17 Contribution Period................................... 9
1.18 Deferred Sales Charge................................. 9
1.19 Dollar Cost Averaging ............................... 9
1.20 Fund(s) .............................................. 10
1.21 General Account ...................................... 10
1.22 Guaranteed Account ................................... 10
1.23 Guaranteed Rates - Guaranteed Account ................ 10
1.24 Guaranteed Term ...................................... 10
1.25 Guaranteed Term(s) Groups ............................ 10
1.26 Maintenance Fee ...................................... 10
1.27 Market Value Adjustment (MVA) ........................ 11
1.28 Matured Term Value ................................... 11
1.29 Maturity Value Transfer .............................. 11
1.30 Maturity Date ........................................ 11
1.31 Option Package ....................................... 11
1.32 Purchase Payment(s) .................................. 11
1.33 Reinvestment ......................................... 11
1.34 Schedule Effective Date .............................. 11
1.35 Separate Account ..................................... 11
1.36 Subaccount(s) ........................................ 12
1.37 Systematic Distribution Option ....................... 12
1.38 Transfers ............................................ 12
1.39 Withdrawal Value ..................................... 12
1.40 Valuation Date ....................................... 12
II. GENERAL PROVISIONS
2.01 Change of Contract ................................... 12
2.02 Change of Fund(s) .................................... 13
2.03 Nonparticipating Contract ............................ 13
2.04 Payments and Elections .............................. 13
2.05 State Laws ........................................... 13
2.06 Control of Contract ................................. 13
2.07 Designation of Beneficiary .......................... 14
2.08 Misstatements and Adjustments ....................... 14
2.09 Incontestability .................................... 14
2.10 Grace Period ........................................ 14
2.11 Individual Certificates .............................. 14
GMC-VA-98(NY) Page 6
<PAGE>
III. PURCHASE PAYMENT, ACCOUNT VALUE, AND WITHDRAWAL PROVISIONS
3.01 Purchase Payment ..................................... 14
3.02 Certificate Holder's Account ......................... 14
3.03 Accumulation Units - Separate Account ................ 15
3.04 Net Investment Factor(s) - Separate Account .......... 15
3.05 Accumulation Unit Value - Separate Account ........... 15
3.06 Market Value Adjustment (MVA) ........................ 15
3.07 Transfer of Account Value from the Subaccount(s) or
Guaranteed Account During the Accumulation Period .... 16
3.08 Notice to the Certificate Holder ..................... 17
3.09 Loans ................................................ 17
3.10 Systematic Distribution Options ...................... 17
3.11 Death Benefit Amount ................................. 17
3.12 Death Benefit Options Available to Beneficiary ....... 18
3.13 Liquidation of Withdrawal Value ...................... 19
3.14 Deferred Sales Charge ................................ 19
3.15 Payment of Withdrawal Value .......................... 19
3.16 Payment of Adjusted Account Value .................... 19
3.17 Reinstatement ........................................ 19
IV. OPTION PACKAGES
4.01 Election of Option Packages .......................... 20
4.02 Description of Option Package I ...................... 20
4.03 Description of Option Package II ..................... 21
4.04 Description of Option Package III .................... 23
V. ANNUITY PAYOUT PROVISIONS
5.01 Annuity Payout Options ............................... 25
5.02 Annuity Payment Choices .............................. 26
5.03 Terms of Annuity Payout Options ...................... 27
5.04 Death of Annuitant/Beneficiary ....................... 27
5.05 Annuity Units - Separate Account ..................... 28
5.06 Annuity Unit Value - Separate Account ................ 28
5.07 Annuity Net Return Factor(s) - Separate Account ...... 28
GMC-VA-98(NY) Page 7
<PAGE>
I. DEFINITIONS
- --------------------------------------------------------------------------------
1.01 Account:
A record that identifies contract values accumulated on each
Certificate Holder's behalf.
1.02 Account Effective Date:
The date on which an Account is established on a Certificate
Holder's behalf.
1.03 Account Value:
As of the most recent Valuation Date, the Account Value is equal
to the total of the Purchase Payment(s) made to the Account;
(a) Plus or minus the investment experience for the amount, if
any, allocated to one or more of the Subaccounts
(b) Plus interest added to the amount, if any, allocated to the
Guaranteed Account;
(c) Plus any additional amount deposited to the Account (see
Section IV - OPTION PACKAGES);
(d) Less the amount of any Maintenance Fee deducted;
(e) Less any additional fee(s), charges, or taxes, if
applicable, deducted;
(f) Less any amount(s) withdrawn; and
(g) Less any amount(s) applied to an Annuity Payout Option.
1.04 Account Year:
A period of twelve months measured from the Account Effective
Date or an anniversary of such Account Effective Date.
1.05 Accumulation Period:
The period during which the Purchase Payment(s) are applied to an
Account to provide future Annuity Payment(s).
1.06 Adjusted Account Value:
The Account Value plus or minus the aggregate Market Value
Adjustment (MVA), if applicable, for the amount(s) allocated to
the Guaranteed Account (see Section III - Market Value
Adjustment).
1.07 Annuitant:
The person on whose death, during the Accumulation Period, a
death benefit becomes payable and on whose life or life
expectancy the Annuity Payments are based under the Certificate.
1.08 Annuity Payment:
A series of payments for life, a definite period or a combination
of the two. The Annuity Payments may be variable or fixed in
amount or a combination of both.
1.09 Annuity Payout Options:
The Certificate Holder may choose to receive Annuity Payments
under one of the following options:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
1.10 Annuity Period:
The period during which Annuity Payments are made.
GMC-VA-98(NY) Page 8
<PAGE>
1.11 Beneficiary:
The individual(s) or entity entitled to receive any death benefit
due under the Certificate. Any designated Beneficiary has the
right to name another Beneficiary. If the Account is owned by
joint Certificate Holders, the survivor will be deemed the
designated Beneficiary and any other Beneficiary on record will
then be treated as the primary or contingent Beneficiary, as
originally designated, unless and until changed by the new
designated Beneficiary.
1.12 Certificate Holder:
A person who purchases an interest in this Contract as evidenced
by a certificate. Aetna reserves the right to limit ownership to
natural persons. If more than one Certificate Holder owns an
Account, each Certificate Holder will be a joint Certificate
Holder. Joint Certificate Holders have joint ownership rights and
both must authorize exercising any ownership rights unless Aetna
allows otherwise.
1.13 Claim Date:
The date when proof of death and the Beneficiary's entitlement to
the death benefit are received in good order at Aetna's home
office. This is also the date that the excess of the death
benefit over the Account Value, if any, is allocated to the money
market fund available through the Separate Account.
1.14 Code:
The Internal Revenue Code of 1986, as it may be amended from time
to time.
1.15 Contract:
This agreement between Aetna and the Contract Holder.
1.16 Contract Holder:
The entity to which the Contract is issued.
1.17 Contribution Period:
A day, a calendar week, a calendar month, a calendar quarter, or
any other period of time specified by Aetna during which a
Purchase Payment(s), Transfer(s) and/or Reinvestment(s) may be
allocated to one or more Guaranteed Account Guaranteed Terms.
Aetna reserves the right to shorten or to extend the Contribution
Period.
During a Contribution Period, Aetna may offer any number of
Guaranteed Terms and more than one Guaranteed Term of the same
duration may be offered.
1.17 Deferred Sales Charge:
The charge that is applied to a Purchase Payment(s) upon
withdrawal. This charge will be waived under certain
circumstances or after a certain length of time (see Section III
- Deferred Sales Charge).
1.19 Dollar Cost Averaging:
A program that permits the Certificate Holder to systematically
transfer amounts from one of the available Subaccounts, or an
available Guaranteed Account Guaranteed Term, to one or more of
the Subaccounts. If the Certificate Holder elects a Guaranteed
Account Guaranteed Term available for Dollar Cost Averaging, no
MVA applies to amounts transferred under Dollar Cost Averaging.
If Dollar Cost Averaging from a Guaranteed Account Guaranteed
Term is discontinued before the end of the Dollar Cost Averaging
period elected, Aetna will automatically transfer the balance to
a Guaranteed Term of the same duration and an MVA will apply. The
Certificate Holder may initiate a Transfer to another investment
option and an MVA will apply. If a Guaranteed Term of the same
duration is not available, Aetna will transfer the amount to the
Guaranteed Term with the next shortest duration. If no shorter
Guaranteed Term is available, the next longer Guaranteed Term
will be used. Aetna reserves the right to establish and change
terms and conditions governing Dollar Cost Averaging.
GMC-VA-98(NY) Page 9
<PAGE>
1.20 Fund(s):
The open-end registered management investment companies whose
shares are purchased by the Separate Account to fund the benefits
provided by the Contract.
The Funds, and the number of Funds, available during the
Accumulation Period may be different from those available during
the Annuity Period. Aetna reserves the right to limit the number
of Funds available at any one time and to limit the number of
investment options the Certificate Holder may select during the
Accumulation Period and/or during the Annuity Period.
1.21 General Account:
The account holding the assets of Aetna, other than those assets
held in Aetna's separate accounts.
1.22 Guaranteed Account:
A nonunitized separate account, established by Aetna under
Section 38a-433 of the Connecticut General Statutes, that holds
assets for Guaranteed Terms. There are no discrete units for this
account. The Certificate Holder does not participate in any gain
or loss resulting from the performance of the investments held in
the account. Income, gains or losses realized or unrealized, are
gains or losses of Aetna. Aetna liabilities, except for
liabilities under this Contract and reserves required by federal
and state law, may not be charged against the nonunitized
separate account.
1.23 Guaranteed Rates - Guaranteed Account:
Aetna will declare the interest rate(s) applicable to a specific
Guaranteed Term at the start of the Contribtion Period for that
Guaranteed Term. The rate(s) are guaranteed by Aetna for the
period beginning with the first day of the Contribution Period
and ending on the Maturity Date. Guaranteed Rates are credited
beginning with the date of allocation. 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 the Schedule - Accumulation Period.
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 different Guaranteed Rate(s), which are higher
than the initial Guaranteed Rate, declared for subsequent
specified time intervals throughout the Guaranteed Term.
Aetna may offer more than one Guaranteed Term of the same
duration and credit one with a higher rate contingent upon use
only with Dollar Cost Averaging.
1.24 Guaranteed Term:
The period of time specified by Aetna for which a specific
Guaranteed Rate(s) is offered on amounts invested during a
specific Contribution Period. Guaranteed Terms are made available
subject to Aetna's terms and conditions, including, but not
limited to, Aetna's right to restrict allocations to new Purchase
Payments (such as by prohibiting Transfers into a particular
Guaranteed Term from any other Guaranteed Term or from any of the
Subaccounts, or by prohibiting Reinvestment of a Matured Term
Value to a particular Guaranteed Term). More than one Guaranteed
Term of the same duration may be offered within the Contract.
1.25 Guaranteed Term(s) Groups:
All Guaranteed Account Guaranteed Term(s) of the same duration
(from the close of the Contribution Period until the designated
Maturity Date).
1.26 Maintenance Fee:
The Maintenance Fee (see Schedule - Accumulation Period) will be
deducted during the Accumulation Period from the Account Value on
each anniversary of the Account Effective Date and upon
withdrawal of the entire Account.
GMC-VA-98(NY) Page 10
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1.27 Market Value Adjustment (MVA):
An adjustment that will apply to an amount withdrawn or
transferred from a Guaranteed Account Guaranteed Term prior to
the end of that Guaranteed Term. This adjustment will be applied
except as outlined in Section 3.06 (b) Market Value Adjustment.
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. The adjustment is expressed as
a percentage of each dollar being withdrawn (see Section III-
Market Value Adjustment).
1.28 Matured Term Value:
The amount due on a Guaranteed Account Guaranteed Term's Maturity
Date.
1.29 Maturity Value Transfer:
During the calendar month following a Guaranteed Account Maturity
Date, the Certificate Holder may notify Aetna's home office in
writing to Transfer or withdraw all or part of the Matured Term
Value, plus accrued interest at the new Guaranteed Rate, from the
Guaranteed 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.
1.30 Maturity Date:
The last day of a Guaranteed Account Guaranteed Term.
1.31 Option Package:
The version of the Contract selected which defines, among other
things, the amount of the mortality and expense risk charge, the
calculation of the death benefit, and the availability of certain
withdrawals without imposition of a Deferred Sales Charge.
1.32 Purchase Payment(s):
The Purchase Payment(s) less premium taxes, if applicable,
accepted by Aetna at its home office. 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.
1.33 Reinvestment:
Aetna will mail a notice to the Certificate Holder at least 18
and not more than 45 calendar days before a Guaranteed Term's
Maturity Date. This notice will contain the Terms available
during current Contribution 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 Contribution 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 Contribution 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.
1.34 Schedule Effective Date:
The date that an Option Package becomes effective. This date is
indicated on the Schedule - Accumulation Period. At initial
purchase, this date is the same as the Account Effective Date.
1.35 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. The
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 Separate
Account, shall not be charged with other Aetna liabilities.
GMC-VA-98(NY) Page 11
<PAGE>
1.36 Subaccount(s):
The portion of the assets of the Separate Account that is
allocated to a particular Fund. Each Subaccount invests in the
shares of only one corresponding Fund.
1.37 Systematic Distribution Option:
An option elected by the Certificate Holder during the
Accumulation Period which establishes a schedule of withdrawals
to be made automatically from the Certificate Holder's Account.
1.38 Transfers:
The movement of invested amounts among the available
Subaccount(s) and/or any Guaranteed Account Guaranteed Term made
available, subject to terms and conditions established by Aetna,
during the Accumulation Period or the Annuity Period.
1.39 Withdrawal Value:
The amount payable by Aetna upon the withdrawal of any portion of
an Account.
1.40 Valuation Date:
The date and time in which Aetna calculates the net asset value
of the Subaccount, usually from 4:00 p.m. Eastern time each day
the New York Stock Exchange is open, to 4:00 p.m. the next such
business day.
II. GENERAL PROVISIONS
- --------------------------------------------------------------------------------
2.01 Change of Contract:
Only an authorized officer of Aetna may change the terms of this
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 Payout Option
which begins before the change.
Aetna may make any change that affects the Market Value
Adjustment (see Section III- Market Value Adjustment) 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 Guaranteed Term and will apply only to new
Certificate Holders.
Any change that affects any of the following under this Contract
will not apply to Accounts in existence before the effective date
of the change:
(a) Account Value
(b) Guaranteed Rates - Guaranteed Account
(c) Purchase Payment
(d) Withdrawal Value
(e) Transfers
(f) Net Investment Factor(s) - Separate Account (see Section
III)
(g) Minimum Guaranteed Interest Rates (see Section V)
(h) Annuity Unit Value - Separate Account (see Section V)
(i) Annuity Payout Options (see Section V).
GMC-VA-98(NY) Page 12
<PAGE>
2.01 Change of Contract (Cont'd):
Any Account established on or after the effective date of any
change will be subject to the change. The Contract may also be
changed as deemed necessary by Aetna to comply with federal or
state law.
2.02 Change of Fund(s):
The assets of the Separate Account are segregated by Fund. If the
shares of any Fund are no longer available for investment by the
Separate Account or if, in our judgment, further investment in
such shares should become inappropriate in view of the purpose of
the Contract, Aetna may cease to make such Fund shares available
for investment under the Contract prospectively, or Aetna may
substitute shares of another Fund for shares already acquired.
Aetna may also, from time to time, add additional Funds. Any
elimination, substitution or addition of Funds will be done in
accordance with applicable state and federal securities laws.
Aetna reserves the right to substitute shares of another Fund for
shares already acquired without a proxy vote.
Any elimination, substitution or addition of funds will be done
in accordance with federal securities laws and are subject to the
approval of the Superintendent of the New York Insurance
Department and Aetna will notify the Contract Holder of such
change.
2.03 Nonparticipating Contract:
The Contract Holder, Certificate Holders or Beneficiaries will
not have a right to share in the earnings of Aetna.
2.04 Payments and Elections:
While the Certificate Holder is living, Aetna will pay the
Certificate Holder any Annuity Payments as and when due. After
the Certificate Holder's death, or at the death of the first
Certificate Holder if the Account is owned jointly, any Annuity
Payments required to be made will be paid in accordance with
Section V - Death of Annuitant/Beneficiary. Aetna will determine
other payments and/or elections as of the end of the Valuation
Date in which the request is received at its home office. Such
payments will be made within seven calendar days of receipt at
its home office of a written claim for payment which is in good
order, except as provided in Section III - Payment of Withdrawal
Value.
2.05 State Laws:
The Contract and Certificate comply with the laws of the state in
which they are delivered. Any withdrawal, death benefit amount,
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:
This is a Contract 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.
Nothing in the group annuity Contract invalidates or impairs any
right granted to the Certificate Holder. The Certificate Holder
has all other rights to amounts held in his or her Account.
Each Certificate Holder shall own all amounts held in his or her
Account. Each Certificate Holder may make any choices allowed by
this Contract for his or her Account. Choices made under this
Contract must be in writing. If the Account is owned jointly,
both joint Certificate Holders must authorize any Certificate
Holder change 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 Certificate Holder may assign or transfer his or her rights
under the Contract. Aetna reserves the right not to accept
assignment or transfer to a nonnatural person. Any assignment or
transfer made under the Contract must be submitted to Aetna's
home office in writing and will not be effective until accepted
by Aetna.
GMC-VA-98(NY) Page 13
<PAGE>
2.07 Designation of Beneficiary:
Each Certificate Holder shall name his or her Beneficiary and
when designating the Beneficiary may elect to specify in writing
the form of payment to the Beneficiary. Aetna will honor the
specified form of payment to the extent permitted under section
72(s) of the Code. If the Account is owned jointly, both joint
Certificate Holders must agree in writing to the Beneficiary
designated. 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. If the
Account is owned jointly, at the death of one joint Certificate
Holder, the survivor will be deemed the designated Beneficiary;
any other Beneficiary on record will then be treated as a primary
or a contingent Beneficiary, as originally designated unless and
until changed by the new designated Beneficiary. If a designated
Beneficiary defers taking payment of a death benefit, the
designated Beneficiary has the right to name another Beneficiary.
2.08 Misstatements and Adjustments:
If Aetna finds the age or sex of any Annuitant to be misstated,
the amount payable under the Contract shall be adjusted for the
correct age or sex; the amount of any underpayment or
overpayment, with interest at six per cent per year, shall be
credited to, or charged against, the current or next succeeding
payment or payments to be made by Aetna under the Contract.
2.09 Incontestability:
After two years, the Contract will be incontestable.
2.10 Grace Period:
The Contract will remain in effect even if Purchase Payments are
not continued except as provided in the Payment of Adjusted
Account Value provision (see Section III - Payment of Adjusted
Account Value).
2.11 Individual Certificates:
Aetna shall issue a certificate to each Certificate Holder. The
certificate contains all provisions of the Contract.
III. PURCHASE PAYMENT, ACCOUNT VALUE, AND WITHDRAWAL PROVISIONS
- --------------------------------------------------------------------------------
3.01 Purchase Payment:
This amount is the actual Purchase Payment. Aetna reserves the
right to pay premium taxes when due and deduct the amount from
the Account Value when we pay the tax or at a later date.
Each Purchase Payment will be allocated, as directed by the
Certificate Holder, among:
(a) Guaranteed Account Guaranteed Terms made available, subject
to terms and conditions established by Aetna; and/or
(b) The Subaccount(s) offered through the Separate Account.
For each Purchase Payment, the Certificate Holder shall tell
Aetna the percentage of each Purchase Payment to allocate to any
available Guaranteed Account Guaranteed Term and/or each
Subaccount. Unless different allocation instructions are received
for any additional Purchase Payment, the allocation will be the
same as for the initial Purchase Payment. If the same Guaranteed
Term is no longer available, the Purchase Payment will be
allocated to 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.
3.02 Certificate Holder's Account:
Aetna will maintain an Account for each Certificate Holder.
Aetna will declare from time to time the acceptability and the
minimum amount for initial and additional Purchase Payments.
GMC-VA-98(NY) Page 14
<PAGE>
3.03 Accumulation Units - Separate Account:
The portion of the Purchase Payment(s) applied to each Subaccount
under the Separate Account will determine the number of
accumulation units for that Subaccount. This number is equal to
the portion of the Purchase Payment(s) applied to each Subaccount
divided by the accumulation unit value (see Section III -
Accumulation Unit Value - Separate Account) for the Valuation
Date in which the Purchase Payment is received in good order at
Aetna's home office.
3.04 Net Investment Factor(s) - Separate Account:
The net investment factor is used to measure the investment
performance of a Subaccount from one Valuation Date to the next.
The net investment factor for a Subaccount for any Valuation Date
is equal to the sum of 1.0000 plus the net investment rate. The
net investment rate equals:
(a) The net assets of the Subaccount on the current Valuation
Date, minus
(b) The net assets of the Subaccount on the preceding Valuation
Date, plus or minus
(c) Taxes or provisions for taxes, if any, attributable to the
operation of the Subaccount;
(d) Divided by the total value of the Subaccount's accumulation
and annuity units on the preceding Valuation Date;
(e) Minus a daily charge at the annual effective rate for
mortality and expense risks as stated in the Schedule -
Accumulation Period and Schedule - Annuity Period, and an
administrative charge of 0.15% (unless reduced or
eliminated) during the Accumulation Period and up to 0.25%
during the Annuity Period (currently 0% during the Annuity
Period).
The net investment rate may be either positive or negative.
3.05 Accumulation Unit Value - Separate Account:
An accumulation unit value is computed by multiplying the net
investment factor for the current Valuation Date by the
accumulation unit value for the previous Valuation Date. The
dollar value of accumulation units, Separate Account assets, and
variable Annuity Payments may go up or down due to investment
gain or loss.
3.06 Market Value Adjustment (MVA):
An MVA will apply to any withdrawal from the Guaranteed Account
before the end of a Guaranteed Term when the withdrawal is:
(a) A Transfer (including a Transfer from a Guaranteed Account
Guaranteed Term if Dollar Cost Averaging is discontinued);
except for Transfers under Dollar Cost Averaging, or as
specified in Section I - Maturity Value Transfer;
(b) A full or partial withdrawal (including a free withdrawal,
see Section III - Deferred Sales Charge), except for a
payment made:
(1) Under a Systematic Distribution Option, or
(2) Under a qualified Contract, when the amount withdrawn
is equal to the required minimum distribution for the
Account calculated using a method permitted under the
Code and agreed to by Aetna; or
(c) Due to an election of Annuity Payout Option 1. Only a
positive MVA will apply upon election of Annuity Payout
Option 2 or 3 (see Section V - Annuity Payout Options).
Full and partial withdrawals 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 resulting from a withdrawal(s). This
total may be greater or less than the Account Value of those
amounts; or
(b) The applicable portion of the Account Value in the
Guaranteed Account.
After the six-month period, the withdrawal or Transfer will be
the aggregate MVA amount, which may be greater or less than the
Account Value of those amounts.
GMC-VA-98(NY) Page 15
<PAGE>
3.06 Market Value Adjustment (MVA) (Cont'd):
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 Contribution Period yield
j is the current yield
x is the number of days remaining in the Guaranteed Term,
computed from Wednesday of the week of withdrawal.
The Contribution Period yield will be determined as follows:
(a) At the close of the last business day of each week of the
Contribution 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 Contribution Period yield is the average of those yields
for the Contribution Period. If withdrawal is made before
the close of the Contribution Period, it is the average of
those yields on each week preceding withdrawal.
The current yield is the average of the yields for the remaining
period in the guaranteed term on the last business day of the
week preceding withdrawal on the same U.S. Treasury Notes
included in the Contribution 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 Account Value from the Subaccount(s) or Guaranteed Account
During the Accumulation Period:
Before an Annuity Payout Option is elected, all or any portion of
the Adjusted Account Value of the Certificate Holder's Account
may be transferred from any Subaccount or Guaranteed Term of the
Guaranteed Account:
(a) To any other Subaccount; or
(b) To any Guaranteed Term of the Guaranteed Account made
available in the current Contribution Period, subject to
terms and conditions specified by Aetna.
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 withdrawn or transferred
will be withdrawn first from the oldest Contribution 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 the Schedule - Accumulation Period.
Additional Transfers may be subject to a Transfer fee as shown on
the Schedule - Accumulation Period.
GMC-VA-98(NY) Page 16
<PAGE>
3.07 Transfer of Account Value from the Subaccount(s) or Guaranteed Account
During the Accumulation Period (Cont'd):
Amounts transferred from the Guaranteed Account under the Dollar
Cost Averaging program, or amounts transferred as a Matured Term
Value on or within one calendar month of a Maturity Date do not
count against the annual Transfer limit.
Amounts allocated to Guaranteed Account Guaranteed Terms may not
be transferred to the Subaccounts or to another Guaranteed Term
during a Contribution Period or for 90 days after the close of a
Contribution Period except for:
(a) Matured Term Value(s) during the calendar month following
the Maturity Date;
(b) Amounts applied to an Annuity Payout Option;
(c) Amounts transferred under the Dollar Cost Averaging program;
(d) Amounts distributed under a Systematic Distribution Option;
and
(e) Amounts transferred by Aetna if Dollar Cost Averaging is
discontinued.
3.08 Notice to the Certificate Holder:
The Certificate Holder will receive quarterly statements from
Aetna of:
(a) The value of any amounts held in:
(1) The Guaranteed Account; and
(2) The Subaccount(s) under the Separate Account;
(b) The number of any accumulation units; and
(c) The accumulation unit value;
(d) The amount available to provide a paid-up annuity benefit;
and
(e) The amount available for withdrawal (may be subject to a DSC
or an MVA).
3.09 Loans:
Loans are not available under this Contract.
3.10 Systematic Distribution Options:
Aetna may, from time to time, make one or more Systematic
Distribution Options available during the Accumulation Period.
When a Systematic Distribution Option is elected, Aetna will make
automatic payments from the Certificate Holder's Account. No
Deferred Sales Charge or MVA will apply to the automatic payments
made under a Systematic Distribution Option.
Any Systematic Distribution Option will be subject to the
following criteria:
(a) Any Systematic Distribution Option will be made available on
the basis of objective criteria consistently applied;
(b) The availability of any Systematic Distribution Option may
be limited by terms and conditions applicable to the
election of such Systematic Distribution Option; and
(c) Aetna may discontinue the availability of a Systematic
Distribution Option at any time. Except to the extent
required to comply with applicable law, discontinuance of a
Systematic Distribution Option will apply only to future
elections and will not affect Systematic Distribution
Options in effect at the time an option is discontinued.
3.11 Death Benefit Amount:
The amount of the death benefit is described in Section IV -
OPTION PACKAGES.
GMC-VA-98(NY) Page 17
<PAGE>
3.12 Death Benefit Options Available to Beneficiary:
Prior to any election, or until amounts must be otherwise
distributed under this section, the Account Value will be
retained in the Account. The Beneficiary has the right to
allocate or reallocate any amount to any of the available
investment options (subject to an MVA, if applicable). If the
Certificate Holder has specified the form of payment to the
Beneficiary, the death benefit will be paid as elected by the
Certificate Holder in the Beneficiary designation, to the extent
permitted by section 72(s) of the Code. If the Certificate Holder
has not specified a form of payment, the Beneficiary may elect
one of the following options.
(a) When the Certificate Holder is the Annuitant or when the
Certificate Holder is a nonnatural person, and the Annuitant
dies:
(1) If the Beneficiary is the surviving spouse, the spousal
Beneficiary will be the successor Certificate Holder
and may exercise all Certificate Holder rights under
the Contract and continue in the Accumulation Period,
or may elect (i) or (ii) below. Under the Code,
distributions from the Account are not required until
the spousal Beneficiary's death. The spousal
Beneficiary may elect to:
(i) Apply some or all of the Adjusted Account Value to
an Annuity Payout Option (see Section V); or
(ii) Receive, at any time, a lump sum payment equal to
the Adjusted Account Value.
(2) If the Beneficiary is other than the surviving spouse,
then options (i) or (ii) above apply. Any portion of
the Adjusted Account Value not applied to an Annuity
Payout Option within one year of the death must be
distributed within five years of the date of death.
(3) If no Beneficiary exists, a lump sum payment equal to
the Adjusted Account Value must be made to the
Annuitant's estate within five years of the date of
death.
(4) If the Beneficiary is an entity, a lump sum payment
equal to the Adjusted Account Value must be made within
five years of the date of death, unless otherwise
permitted by IRS regulation or ruling.
(b) When the Certificate Holder is not the Annuitant and the
Certificate Holder dies:
(1) If the Beneficiary is the Certificate Holder's
surviving spouse, the spousal Beneficiary will be the
successor Certificate Holder and may exercise all
Certificate Holder rights under the Contract and
continue in the Accumulation Period, or may elect (i)
or (ii) below. Under the Code, distributions from the
Account are not required until the spousal
Beneficiary's death. The spousal Beneficiary may elect
to:
(i) Apply some or all of the Adjusted Account Value to
an Annuity Payout Option (see Section V); or
(ii) Receive, at any time, a lump sum payment equal to
the Withdrawal Value.
(2) If the Beneficiary is other than the Certificate
Holder's surviving spouse, then options (i) or (ii)
under (1) above apply. Any portion of the death benefit
not applied to an Annuity Payout Option within one year
of the Certificate Holder's death must be distributed
within five years of the date of death.
(3) If no Beneficiary exists, a lump sum payment equal to
the Withdrawal Value must be made to the Certificate
Holder's estate within five years of the date of death.
(4) If the Beneficiary is an entity, a lump sum payment
equal to the Withdrawal Value must be made within five
years of the date of death, unless otherwise permitted
by IRS regulation or ruling.
(c) When the Certificate Holder is a natural person and not the
Annuitant and the Annuitant dies, the Beneficiary (or the
Certificate Holder if no Beneficiary exists) may elect to:
(1) Apply all or some of the Adjusted Account Value to an
Annuity Payout Option within 60 days of the date of
death; or
(2) Receive a lump sum payment equal to the Adjusted
Account Value.
GMC-VA-98(NY) Page 18
<PAGE>
3.13 Liquidation of Withdrawal Value:
All or any portion of the Account Value may be withdrawn at any
time. Withdrawal requests may be submitted as a percentage of the
Account Value or as a specific dollar amount. Purchase Payment
amounts are withdrawn first, and then the excess value, if any.
Partial withdrawal amounts are withdrawn on a pro rata basis from
the Subaccount(s) and/or the Guaranteed Term(s) Groups of the
Guaranteed Account in which the Account Value is invested. Within
a Guaranteed Term Group, the amount to be withdrawn or
transferred will be withdrawn first from the oldest Contribution
Period, then from the next oldest, and so on until the amount
requested is satisfied.
After deduction of the Maintenance Fee, if applicable, the
withdrawn amount shall be reduced by a Deferred Sales Charge, if
applicable. An MVA may apply to amounts withdrawn from the
Guaranteed Account.
3.14 Deferred Sales Charge:
The Deferred Sales Charge only applies to the Purchase Payment(s)
portion withdrawn and varies according to the elapsed time since
deposit (see Schedule - Accumulation Period). Purchase Payment
amounts are withdrawn in the same order they were applied.
No Deferred Sales Charge is deducted from any portion of the
Purchase Payment which is paid:
(a) To a Beneficiary due to the Annuitant's death before Annuity
Payments start, up to a maximum of the aggregate Purchase
Payment(s) minus the total of all partial surrenders,
amounts applied to an Annuity Payout Option and deductions
made prior to the Annuitant's date of death;
(b) For an Annuity Payout Option (see Section V);
(c) As a distribution under a Systematic Distribution Option;
(d) For a full withdrawal of the Account where the Account Value
is $2,500 or less and no withdrawals have been taken from
the Account within the prior 12 months;
(e) By Aetna under Section III - Payment of Adjusted Account
Value;
(f) Under a qualified Contract when the amount withdrawn is
equal to the minimum distribution required by the Code for
the Account, calculated using a method permitted under the
Code and agreed to by Aetna;
(g) As a free withdrawal as described in Section IV - OPTION
PACKAGES; or
3.15 Payment of Withdrawal Value:
Under certain emergency conditions, Aetna may defer payment:
(a) For a period of up to six months (unless not allowed by
state law); or
(b) As provided by federal law.
3.16 Payment of Adjusted Account Value:
Upon 90 days written notice to the Certificate Holder, Aetna will
terminate any Account if the Account Value becomes less than
$2,000 immediately following any partial withdrawal and provided
no Purchase Payments have been made in three years. Aetna does
not intend to exercise this right in cases where an Account is
reduced to $2,000 or less solely due to investment performance. A
Deferred Sales Charge will not be deducted from the Adjusted
Account Value.
3.17 Reinstatement:
The Certificate Holder may reinstate the proceeds of a full
withdrawal, subject to terms and conditions established by Aetna.
GMC-VA-98(NY) Page 19
<PAGE>
IV. OPTION PACKAGES
- --------------------------------------------------------------------------------
The Contract offers three Option Packages regarding calculation of the death
benefit and the ability to withdraw money free of Deferred Sales Charge. The
Option Package selected is reflected in the Schedule-Accumulation Period
attached to the Certificate. At initial purchase, the Schedule Effective Date is
the same as the Account Effective Date. If, at a later date, the Certificate
Holder wishes to replace the current Option Package with another available
Option Package, the Certificate Holder may do so upon any anniversary of the
Account Effective Date.
A different Schedule-Accumulation Period may apply to each Certificate Holder
depending upon the Option Package selected.
Below is a description of the ability to elect other Option Packages and the
contractual provisions of each Option Package.
4.01 Election of Option Packages:
Any Certificate Holder, who meets the applicable minimum Account
Value required by Aetna, may elect to replace the Option Package
in effect with one of the other available Option Packages. The
eligible Certificate Holder may make the election during the
sixty day period prior to and including any anniversary of the
Account Effective Date. Such election must be made in writing and
received in good order at Aetna's home office during the election
period.
The effective date of the newly elected Option Package is the
anniversary of the Account Effective Date at the end of the sixty
day election period. Aetna will issue another Schedule reflecting
the new Option Package chosen. The new Schedule will reflect the
revisions to the Certificate Holder's benefits during the
Accumulation Period, namely:
The new Schedule Effective Date,
The revised Charges to Separate Account,
The calculation of the death benefit, and
The revised ability to withdraw money free of Deferred Sales
Charge
All other Contract features remain in effect from the Account
Effective Date.
4.02 Description of Option Package I:
Deferred Sales Charge:
In addition to the events described in Section III - Deferred
Sales Charge, the total amount that may be withdrawn each Account
Year without a Deferred Sales Charge cannot exceed 10% of the
Account Value less:
(1) Any amount(s) withdrawn and/or requested for withdrawal
under a Systematic Distribution Option, or
(2) Any amount(s) taken as a minimum required distribution as
described in Section III - Deferred Sales Charge.
Death Benefit Calculation During the Accumulation Period:
If the Certificate Holder or Annuitant dies before an Annuity
Payout Option starts, the Beneficiary is entitled to a death
benefit. If the Account is owned jointly, the death benefit
applies at the death of the first joint Certificate Holder to
die. The amount of the death benefit is determined as follows:
(a) Death of the Annuitant.
The death benefit is the greater of:
(1) The sum of all Purchase Payment(s) made, adjusted for
amount(s) withdrawn or applied to an Annuity Payout
Option as of the Claim Date; or
(2) The Account Value on the Claim Date.
GMC-VA-98(NY) Page 20
<PAGE>
4.02 Description of Option Package I (Cont'd):
On the Claim Date, if the amount of the death benefit
is greater than the Account Value, the amount by which
the death benefit exceeds the Account Value will be
deposited and allocated to the money market fund
available through the Separate Account.
The amount paid to the Beneficiary will equal the
Adjusted Account Value on the date the payment request
is processed. This amount may be greater or less than
the amount of the death benefit on the Claim Date. The
Beneficiary may elect a death benefit payment option as
permitted in Section III - Death Benefit Options
Available to Beneficiary.
(b) Death of the Certificate Holder if the Certificate Holder is
not the Annuitant.
On the Claim Date, the amount of the death benefit equals
the Account Value.
The amount paid to the Beneficiary will equal the Adjusted
Account Value on the date the payment request is processed.
A Deferred Sales Charge may apply to any full or partial
payment of the death benefit. The Beneficiary may elect a
death benefit payment option as permitted in Section III -
Death Benefit Options Available to Beneficiary.
(c) Death of a spouse who is the Beneficiary of a Certificate
Holder/Annuitant and who becomes a successor Certificate
Holder/ Annuitant.
The amount of the death benefit paid to the Beneficiary at
the death of a successor Certificate Holder/Annuitant is the
greater of the values as described in (a) above except that
in calculating (a)(1), the Account Value on the Claim Date
for the prior Certificate Holder's death is treated as the
initial Purchase Payment.
Charges to Separate Account:
See Schedule-Accumulation Period.
4.03 Description of Option Package II:
Deferred Sales Charge:
In addition to the events described in Section III - Deferred
Sales Charge, the total amount that may be withdrawn each Account
Year without a Deferred Sales Charge cannot exceed 10% of the
Account Value less:
(1) Any amount(s) withdrawn and/or requested for withdrawal
under a Systematic Distribution Option, or
(2) Any amount(s) taken as a minimum required distribution as
described in Section III - Deferred Sales Charge.
Death Benefit Calculation During the Accumulation Period:
If the Certificate Holder or Annuitant dies before an Annuity
Payout Option starts, the Beneficiary is entitled to a death
benefit. If the Account is owned jointly, the death benefit
applies at the death of the first joint Certificate Holder to
die. The amount of the death benefit is determined as follows:
(a) Death of the Annuitant.
The death benefit is the greatest of:
(1) The sum of all Purchase Payment(s) made, adjusted for
amount(s) withdrawn or applied to an Annuity Payout
Option as of the Claim Date; or
(2) The Account Value on the Claim Date; or
(3) The "Step-up Value" on the Claim Date.
GMC-VA-98(NY) Page 21
<PAGE>
4.03 Description of Option Package II (Cont'd):
On the Schedule Effective Date, the Step-up Value is the
greater of:
(1) The Account Value; or
(2) The Step-up Value, if any, calculated on the
anniversary prior to the Schedule Effective Date,
adjusted for Purchase Payments(s) made and amount(s)
withdrawn or applied to an Annuity Payout Option during
the prior Account Year.
Thereafter, on each anniversary of the Schedule
Effective Date until the anniversary immediately
preceding the Annuitant's 85th birthday or death,
whichever is earlier, the Step-up Value is equal to the
greater of:
(a) The Step-up Value most recently calculated,
adjusted for Purchase Payment(s) made and
amount(s) withdrawn or applied to an Annuity
Payout Option during the prior Account Year; or
(b) The Account Value on that anniversary of the
Schedule Effective Date.
On the Claim Date, the Step-up Value shall equal
the Step-up Value calculated prior to death. It is
adjusted for Purchase Payment(s) made and
amount(s) withdrawn or applied to an Annuity
Payout Option since the anniversary on which the
Step-up Value was calculated.
On the Claim Date, if the amount of the death benefit is greater
than the Account Value, the amount by which the death benefit
exceeds the Account Value will be deposited and allocated to the
money market fund available through the Separate Account.
The amount paid to the Beneficiary will equal the Adjusted
Account Value on the date the payment request is processed. This
amount may be greater or less than the amount of the death
benefit on the Claim Date. The Beneficiary may elect a death
benefit payment option as permitted in Section III - Death
Benefit Options Available to the Beneficiary.
(b) Death of the Certificate Holder if the Certificate Holder is
not the Annuitant.
On the Claim Date, the amount of the death benefit equals
the Account Value.
The amount paid to the Beneficiary will equal the Adjusted
Account Value on the date the payment request is processed.
A Deferred Sales Charge may apply to any full or partial
payment of the death benefit. The Beneficiary may elect a
death benefit payment option as permitted in Section III -
Death Benefit Options Available to the Beneficiary.
(c) Death of a spouse who is the Beneficiary of a Certificate
Holder/Annuitant and who becomes a successor Certificate Holder/
Annuitant.
The amount of the death benefit paid to the Beneficiary at the
death of a successor Certificate Holder/Annuitant is the greater
of the values as described in (a) above except that:
(1) In calculating (a)(1), the Account Value on the Claim Date
for the prior Certificate Holder's death is treated as the
initial Purchase Payment; and
(2) In calculating (a)(3), the Step-up Value on the Claim Date
for the prior Certificate Holder's death is the initial
Step-up Value.
Charges to Separate Account:
See Schedule-Accumulation Period.
GMC-VA-98(NY) Page 22
<PAGE>
4.04 Description of Option Package III:
Deferred Sales Charge:
In addition to the events described in Section III - Deferred
Sales Charge, the total amount that may be withdrawn each Account
Year without a Deferred Sales Charge cannot exceed 10% of the
Account Value less:
(1) Any amount(s) withdrawn and/or requested for withdrawal
under a Systematic Distribution Option, or
(2) Any amount(s) taken as a minimum required distribution as
described in Section III - Deferred Sales Charge.
If the entire 10% of Account Value free of Deferred Sales Charge
is not taken in any Account Year, the Certificate Holder may
accumulate in successive Account Years the percentage not taken.
The amount eligible each Account Year for withdrawal without a
Deferred Sales Charge cannot exceed 30% of the Account Value less
any amount(s) withdrawn and/or requested for withdrawal under a
Systematic Distribution Option, or taken as a minimum required
distribution as described in Section III - Deferred Sales Charge,
during the Account Year.
Death Benefit Calculation During the Accumulation Period:
If the Certificate Holder or Annuitant dies before an Annuity
Payout Option starts, the Beneficiary is entitled to a death
benefit. If the Account is owned jointly, the death benefit
applies at the death of the first joint Certificate Holder to
die. The amount of the death benefit is determined as follows:
(a) Death of the Annuitant.
The death benefit is the greatest of:
(1) The sum of all Purchase Payment(s) made, adjusted for
amount(s) withdrawn or applied to an Annuity Payout
Option as of the Claim Date; or
(2) The Account Value on the Claim Date; or
(3) The "Step-up Value" on the Claim Date.
On the Schedule Effective Date, the Step-up Value is the
greater of:
(1) The Account Value; or
(2) The Step-up Value, if any, calculated on the
anniversary prior to the Schedule Effective Date,
adjusted for Purchase Payments(s) made and amount(s)
withdrawn or applied to an Annuity Payout Option during
the prior Account Year.
Thereafter, on each anniversary of the Schedule
Effective Date until the anniversary immediately
preceding the Annuitant's 85th birthday or death,
whichever is earlier, the Step-up Value is equal to the
greater of:
(a) The Step-up Value most recently calculated,
adjusted for Purchase Payment(s) made and
amount(s) withdrawn or applied to an Annuity
Payout Option during the prior Account Year; or
(b) The Account Value on that anniversary of the
Schedule Effective Date.
On the Claim Date, the Step-up Value shall equal
the Step-up Value calculated prior to death. It is
adjusted for Purchase Payment(s) made and
amount(s) withdrawn or applied to an Annuity
Payout Option since the anniversary on which the
Step-up Value was calculated.
GMC-VA-98(NY) Page 23
<PAGE>
On the Claim Date, if the amount of the death benefit is greater
than the Account Value, the amount by which the death benefit
exceeds the Account Value will be deposited and allocated to the
money market fund available through the Separate Account.
The amount paid to the Beneficiary will equal the Adjusted
Account Value on the date the payment request is processed. This
amount may be greater or less than the amount of the death
benefit on the Claim Date. The Beneficiary may elect a death
benefit payment option as permitted in Section III - Death
Benefit Options Available to the Beneficiary.
(b) Death of the Certificate Holder if the Certificate Holder is
not the Annuitant.
On the Claim Date, the amount of the death benefit equals
the Account Value.
The amount paid to the Beneficiary will equal the Adjusted
Account Value on the date the payment request is processed.
A Deferred Sales Charge may apply to any full or partial
payment of the death benefit. The Beneficiary may elect a
death benefit payment option as permitted in Section III -
Death Benefit Options Available to the Beneficiary.
(c) Death of a spouse who is the Beneficiary of a Certificate
Holder/Annuitant and who becomes a successor Certificate
Holder/ Annuitant.
The amount of the death benefit paid to the Beneficiary at
the death of a successor Certificate Holder/Annuitant is the
greater of the values as described in (a) above except that:
(1) In calculating (a)(1), the Account Value on the Claim
Date for the prior Certificate Holder's death is
treated as the initial Purchase Payment; and
(2) In calculating (a)(3), the Step-up Value on the Claim
Date for the prior Certificate Holder's death is the
initial Step-up Value.
Charges to Separate Account:
See Schedule-Accumulation Period.
GMC-VA-98(NY) Page 24
<PAGE>
V. Annuity Payout Provisions
- --------------------------------------------------------------------------------
5.01 Annuity Payout Options:
Annuity Payout Option 1 - Payments for a specified period:
Payments are made for the number of years specified by the
Certificate Holder. The number of years must be at least five and
not more than 30.
Annuity Payout Option 2 - Life income based on the life of one
Annuitant:
When this option is elected, the Certificate Holder must choose
one of the following:
(a) Payments cease at the death of the Annuitant;
(b) Payments are guaranteed for a specified period from five to
30 years;
(c) Cash refund: when the Annuitant dies, the Beneficiary will
receive a lump sum payment equal to the amount applied to
the Annuity Payout Option (less any premium tax, if
applicable) less the total amount of Annuity Payments made
prior to such death. This cash refund feature is only
available if the total amount applied to the Annuity Payout
Option is allocated to a fixed Annuity Payment.
Annuity Payout Option 3 - Life income based on the lives of two
Annuitants:
Payments are made for the lives of two Annuitants, one of whom is
designated the primary Annuitant and the other the secondary
Annuitant, and cease when both Annuitants have died. When this
option is elected, the Certificate Holder must also choose one of
the following:
(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) 100% of the payment to continue after the first death and
payments are guaranteed for a period of five to 30 years;
(e) 100% of the payment to continue at the death of the
secondary Annuitant and 50% of the payment to continue at
the death of the primary Annuitant; or
(f) 100% of the payment continues after the first death with a
cash refund feature. When the primary Annuitant and
secondary Annuitant die, the Beneficiary will receive a lump
sum payment equal to the amount applied to the Annuity
Payout Option (less any premium tax) less the total amount
of Annuity Payments paid prior to such death. This cash
refund feature is only available if the total amount applied
to the Annuity Payout Option is allocated to a fixed Annuity
Payment.
If a fixed Annuity Payment is chosen under Annuity Payout Option
1, 2 (a) or (b), or 3 (a) or (d), the Certificate Holder may
elect, at the time the Annuity Payout Option is selected, an
annual increase of one, two or three percent compounded annually.
As allowed under applicable state law, Aetna reserves the right
to offer additional Annuity Payout Options.
5.02 Annuity Payment Choices:
The Certificate Holder may tell Aetna to apply any portion of the
Adjusted Account Value (minus any premium tax, if applicable,) to
any Annuity Payout Option . The first Annuity Payment may not be
earlier than one calendar year after the initial 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 Payout Option, the Certificate
Holder may tell Aetna to make a lump sum payment.
GMC-VA-98(NY) Page 25
<PAGE>
5.02 Annuity Payment Choices (Cont'd):
When an Annuity Payout 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 Payment using the General Account;
(b) A variable Annuity Payment using any of the Subaccount(s)
available under this Contract for the Annuity Period; or
(c) A combination of (a) and (b).
If a fixed Annuity Payment is chosen, the payment rate for the
option chosen, shown on the tables immediately following,
reflects at least the minimum guaranteed interest rate (see
Schedule Annuity Period), but may reflect a higher interest rate.
If a variable Annuity Payment is chosen, the initial Annuity
Payment for the option elected reflects the Assumed Interest Rate
(AIR) elected (see Schedule - Annuity Period). The Certificate
Holder must allocate specified amounts among the Subaccounts
available during the Annuity Period. Aetna reserves the right to
limit the number of Subaccounts available at one time and to
limit the number of Subaccounts the Certificate Holder may select
during the Annuity Period. Subject to terms and conditions
established by Aetna, the Certificate Holder may transfer all or
any portion of the amount allocated to a Subaccount to another
Subaccount. The number of Transfers allowed without charge each
year is shown on Schedule - Annuity Period.
Transfer requests must be submitted as a percentage of the
allocation among the Subaccounts. Aetna reserves the right to
establish a minimum transfer amount. Transfers will be effective
as of the Valuation Date in which Aetna receives a transfer
request in good order at its home office.
5.03 Terms of Annuity Payout Options:
(a) When payments start, the age of the Annuitant plus the
number of years for which payments are guaranteed must not
exceed 95.
(b) An Annuity Payout 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 minimum annual Annuity
payment amount based upon increases reflected in the
Consumer Price Index-Urban, (CPI-U) since July 1, 1993.
(c) If an Annuity Payment is chosen and a larger payment would
result from applying the Withdrawal Value or, if greater,
95% of what the withdrawal would be if there were no
withdrawal fee, 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 or fixed Annuity Payment, the primary Annuitant's
and secondary Annuitant's adjusted age will be used. The
primary Annuitant's and secondary Annuitant's adjusted age
is his or her age as of the birthday closest to the Annuity
Payment commencement date reduced by one year for
commencement dates occurring during the period of time from
July 1, 1993 through December 31, 1999. The primary
Annuitant's and secondary Annuitant's age will be reduced by
two years for commencement dates occurring during the period
of time from January 1, 2000 through December 31, 2009. The
primary Annuitant's and secondary Annuitant's age will be
reduced by one additional year for Annuity commencement
dates occurring in each succeeding decade.
The attached payment rates for Annuity Payout Options 2 and
3 are based on mortality from 1983 Table a.
GMC-VA-98(NY) Page 26
<PAGE>
5.03 Terms of Annuity Payout Options (Cont'd):
(e) Assumed Interest Rate (AIR) is the interest rate used to
determine the amount of the first Annuity Payment under a
variable Annuity Payment as shown on Schedule - Annuity
Period. The Separate Account must earn this rate plus enough
to cover the mortality and expense risks charges (which may
include profit) and administrative charges if future
variable Annuity Payments are to remain level, (see Schedule
- Annuity Period).
(f) Once elected, Annuity Payments cannot be commuted to a lump
sum except for variable Annuity Payments under Annuity
Payout Option 1.
5.04 Death of Annuitant/Beneficiary:
(a) Certificate Holder is the Annuitant: When the Certificate
Holder is the Annuitant and the Annuitant dies under Annuity
Payout Option 1 or 2(b), or both the primary Annuitant and
the secondary Annuitant die under Annuity Payout Option
3(d), any remaining payments will continue to the
Beneficiary, or if elected by the Beneficiary and not
prohibited by the Certificate Holder in the Beneficiary
designation, the present value of any remaining payments
will be paid in one sum to the Beneficiary. If Annuity
Payout Option 3 has been elected and the Certificate Holder
dies, the remaining payments will continue to the successor
payee. If no successor payee has been designated, the
Beneficiary will be treated as the successor payee. If the
Account has joint Certificate Holders, the surviving joint
Certificate Holder will be deemed the successor payee.
(b) Certificate Holder is not the Annuitant: When the
Certificate Holder is not the Annuitant and the Certificate
Holder dies, any remaining payments will continue to the
successor payee. If no successor payee has been designated,
the Beneficiary will be treated as the successor payee. If
the Account has joint Certificate Holders, the surviving
joint Certificate Holder will be deemed the successor payee.
If the Annuitant dies under Annuity Payout Option 1 or 2(b),
or both the primary Annuitant and secondary Annuitant die
under Annuity Payout Option 3(d), any remaining payments
will continue to the Beneficiary, or if elected by the
Beneficiary and not prohibited by the Certificate Holder in
the Beneficiary designation, the present value of any
remaining payments will be paid in one sum to the
Beneficiary. If Annuity Payout Option 3 has been elected and
the Annuitant dies, the remaining payments will continue to
the Certificate Holder.
(c) No Beneficiary Named/Surviving: If there is no Beneficiary,
the present value of any remaining payments will be paid in
one sum to the Certificate Holder, or if the Certificate
Holder is not living, then to the Certificate Holder's
estate.
(d) If the Beneficiary or the successor payee dies while
receiving Annuity Payments, any remaining payments will
continue to the successor Beneficiary/payee or upon election
by the successor Beneficiary/payee, the present value of any
remaining payments will be paid in one sum to the successor
Beneficiary/payee. If no successor Beneficiary/payee has
been designated, the present value of any remaining payments
will be paid in one sum to the Beneficiary's/payee's estate.
(e) The present value will be determined as of the Valuation
Date in which proof of death acceptable to Aetna and a
request for payment is received at Aetna's home office.
5.05 Annuity Units - Separate Account:
The number of annuity units is based on the amount of the first
variable Annuity Payment which is equal to:
(a) The portion of the Account Value applied to pay a variable
Annuity Payment (minus any applicable premium tax); divided
by
(b) 1,000; multiplied by
(c) The payment rate on the tables immediately following, for
the option chosen.
GMC-VA-98(NY) Page 27
<PAGE>
5.05 Annuity Units - Separate Account (Cont'd):
Such amount, or portion, of the variable Annuity Payment will be
divided by the appropriate annuity unit value (see Section V -
Annuity Unit Value - Separate Account) on the tenth Valuation
Date before the due date of the first payment to determine the
number of annuity units. The number of annuity units remains
fixed. Each future payment is equal to the sum of the products of
each annuity unit value multiplied by the appropriate number of
annuity units. The annuity unit value on the tenth Valuation Date
prior to the due date of the payment is used.
5.06 Annuity Unit Value - Separate:
For any Valuation Date, an annuity unit value is equal to:
(a) The value for the previous Valuation Date; multiplied by
(b) The annuity net return factor(s) (see Section V - Net Return
Factor(s) - Separate Account) for the Valuation Date;
multiplied by
(c) A factor to reflect the AIR (see Schedule - Annuity Period).
The annuity unit value and Annuity Payment amount may go up
or down due to investment gain or loss.
5.07 Net Return Factor(s) - Separate Account:
The net return factor(s) are used to compute all variable Annuity
Payments for any Subaccount.
The net return factor for each Subaccount 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 Subaccount at the end of a
Valuation Date; minus
(b) The value of the shares of the Subaccount at the start of
the Valuation Date; plus or minus
(c) Taxes (or reserves for taxes) on the Separate Account (if
any); divided by
(d) The total value of the annuity units at the start of the
Valuation Date; minus
(e) A daily charge for mortality and expense risks, which may
include profit, and a daily administrative charge at the
annual rate as shown on Schedule - Annuity Period.
A net return rate may be more or less than 0%.
The value of a share of the Subaccount is equal to the net assets
of the Subaccount divided by the number of shares outstanding.
Annuity Payments shall not be changed due to changes in the
mortality or expense results or administrative charges.
GMC-VA-98(NY) Page 28
<PAGE>
OPTION 1: Payments for a Specified Period
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
Monthly Amount for Each $1,000*
Rates for a Fixed Annuity with a 3% Guaranteed Interest Rate
- --------------------------------------------------------------------------------
Years Payment Years Payment
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
5 $17.91 18 $5.96
6 15.14 19 5.73
7 13.16 20 5.51
8 11.68 21 5.32
9 10.53 22 5.15
10 9.61 23 4.99
11 8.86 24 4.84
12 8.24 25 4.71
13 7.71 26 4.59
14 7.26 27 4.47
15 6.87 28 4.37
16 6.53 29 4.27
17 6.23 30 4.18
- --------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------
First Monthly Amount for Each $1,000*
Rates for a Variable Annuity with a 3.5% AIR
- --------------------------------------------------------------------------------
Years Payment Years Payment
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
5 $18.12 18 $6.20
6 15.35 19 5.97
7 13.38 20 5.75
8 11.90 21 5.56
9 10.75 22 5.39
10 9.83 23 5.24
11 9.09 24 5.09
12 8.46 25 4.96
13 7.94 26 4.84
14 7.49 27 4.73
15 7.10 28 4.63
16 6.76 29 4.53
17 6.47 30 4.45
- --------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------
First Monthly Amount for Each $1,000*
Rates for a Variable Annuity with a 5% AIR
- --------------------------------------------------------------------------------
Years Payment Years Payment
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
5 $18.74 18 $6.94
6 15.99 19 6.71
7 14.02 20 6.51
8 12.56 21 6.33
9 11.42 22 6.17
10 10.51 23 6.02
11 9.77 24 5.88
12 9.16 25 5.76
13 8.64 26 5.65
14 8.20 27 5.54
15 7.82 28 5.45
16 7.49 29 5.36
17 7.20 30 5.28
- --------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GMC-VA-98(NY) Page 29
<PAGE>
Option 2: Life Income Based on the Life of One Annuitant
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Monthly Payment Amount for Each $1,000*
Rates for a Fixed Annuity with 3% Guaranteed Interest Rate
Option 2(a): Option 2(b): Option 2(b): Option 2(b): Option 2(b): Option 2(c):
Adjusted payments for payments payments payments payments Cash Refund
Age of life guaranteed guaranteed guaranteed guaranteed
Annuitant 5 years 10 years 15 years 20 years
Male Female Male Female Male Female Male Female Male Female Male Female
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
50 $4.27 $3.90 $4.26 $3.90 $4.22 $3.89 $4.17 $3.86 $4.08 $3.82 $4.04 $3.78
51 4.34 3.97 4.33 3.96 4.30 3.95 4.23 3.92 4.14 3.88 4.10 3.84
52 4.43 4.03 4.41 4.03 4.37 4.01 4.30 3.98 4.20 3.93 4.16 3.89
53 4.51 4.10 4.50 4.10 4.45 4.08 4.37 4.04 4.26 3.99 4.23 3.95
54 4.60 4.18 4.59 4.17 4.54 4.15 4.45 4.11 4.32 4.04 4.29 4.01
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.39 4.11 4.37 4.07
56 4.80 4.34 4.78 4.33 4.72 4.30 4.61 4.25 4.45 4.17 4.44 4.13
57 4.91 4.42 4.89 4.41 4.82 4.38 4.69 4.32 4.51 4.23 4.52 4.20
58 5.03 4.52 5.00 4.51 4.92 4.47 4.78 4.40 4.58 4.30 4.61 4.28
59 5.15 4.61 5.12 4.60 5.03 4.56 4.87 4.48 4.65 4.37 4.69 4.35
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.71 4.44 4.78 4.43
61 5.43 4.83 5.39 4.81 5.27 4.76 5.06 4.66 4.78 4.51 4.88 4.52
62 5.58 4.95 5.53 4.93 5.39 4.87 5.16 4.75 4.84 4.58 4.98 4.60
63 5.74 5.08 5.69 5.05 5.53 4.98 5.26 4.85 4.90 4.65 5.09 4.70
64 5.91 5.21 5.85 5.18 5.66 5.10 5.36 4.95 4.96 4.72 5.20 4.80
65 6.10 5.36 6.03 5.32 5.81 5.22 5.46 5.05 5.02 4.79 5.31 4.90
66 6.30 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.08 4.86 5.44 5.01
67 6.51 5.67 6.41 5.63 6.12 5.50 5.66 5.26 5.13 4.93 5.56 5.12
68 6.73 5.85 6.62 5.80 6.28 5.65 5.77 5.37 5.18 5.00 5.70 5.24
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 5.23 5.06 5.84 5.37
70 7.23 6.25 7.07 6.18 6.61 5.97 5.96 5.60 5.27 5.12 5.98 5.51
71 7.51 6.47 7.32 6.39 6.79 6.14 6.05 5.71 5.31 5.18 6.14 5.65
72 7.80 6.71 7.58 6.62 6.96 6.32 6.14 5.83 5.34 5.23 6.30 5.80
73 8.12 6.98 7.85 6.86 7.14 6.50 6.23 5.94 5.37 5.28 6.47 5.96
74 8.46 7.26 8.14 7.12 7.32 6.69 6.31 6.04 5.40 5.32 6.65 6.13
75 8.82 7.57 8.45 7.40 7.50 6.89 6.38 6.14 5.42 5.35 6.83 6.31
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GMC-VA-98(NY) Page 30
<PAGE>
Option 2: Life Income Based on the Life of One Annuitant
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 3.5% AIR
- ------------------------------------------------------------------------------------------------------------------
Option 2(a): Option 2(b): Option 2(b): Option 2(b): Option 2(b):
Adjusted payments for payments payments payments payments
Age of life guaranteed guaranteed guaranteed guaranteed
Annuitant 5 years 10 years 15 years 20 years
---------------- ---------------- ---------------- ---------------- ----------------
Male Female Male Female Male Female Male Female Male Female
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
50 $4.56 $4.20 $4.55 $4.19 $4.51 $4.18 $4.45 $4.15 $4.36 $4.11
51 4.64 4.26 4.62 4.25 4.58 4.24 4.51 4.21 4.42 4.16
52 4.72 4.32 4.70 4.32 4.66 4.30 4.58 4.26 4.48 4.21
53 4.80 4.39 4.79 4.38 4.74 4.36 4.65 4.32 4.53 4.27
54 4.89 4.46 4.87 4.46 4.82 4.43 4.73 4.39 4.59 4.32
55 4.99 4.54 4.97 4.53 4.91 4.50 4.80 4.46 4.65 4.38
56 5.09 4.62 5.07 4.61 5.00 4.58 4.88 4.53 4.72 4.44
57 5.20 4.71 5.17 4.70 5.10 4.66 4.96 4.60 4.78 4.50
58 5.32 4.80 5.29 4.79 5.20 4.75 5.05 4.68 4.84 4.57
59 5.44 4.90 5.41 4.88 5.31 4.84 5.14 4.76 4.91 4.63
60 5.57 5.00 5.53 4.99 5.42 4.93 5.23 4.84 4.97 4.70
61 5.71 5.11 5.67 5.09 5.54 5.03 5.32 4.93 5.03 4.77
62 5.86 5.23 5.81 5.21 5.66 5.14 5.42 5.02 5.09 4.84
63 6.02 5.36 5.97 5.33 5.79 5.25 5.51 5.11 5.16 4.91
64 6.20 5.49 6.13 5.46 5.93 5.37 5.61 5.21 5.21 4.98
65 6.38 5.64 6.31 5.60 6.07 5.49 5.71 5.31 5.27 5.05
66 6.58 5.79 6.49 5.75 6.22 5.63 5.81 5.41 5.32 5.12
67 6.79 5.95 6.69 5.91 6.38 5.76 5.91 5.52 5.38 5.18
68 7.02 6.13 6.89 6.08 6.53 5.91 6.01 5.63 5.42 5.25
69 7.26 6.32 7.11 6.26 6.70 6.06 6.11 5.74 5.47 5.31
70 7.52 6.53 7.35 6.45 6.86 6.23 6.20 5.85 5.51 5.37
71 7.80 6.75 7.59 6.66 7.03 6.39 6.29 5.96 5.54 5.42
72 8.09 6.99 7.85 6.89 7.21 6.57 6.38 6.07 5.57 5.47
73 8.41 7.26 8.12 7.13 7.38 6.75 6.46 6.17 5.60 5.51
74 8.75 7.54 8.41 7.39 7.55 6.94 6.53 6.28 5.63 5.55
75 9.12 7.85 8.71 7.66 7.73 7.13 6.61 6.38 5.65 5.59
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GMC-VA-98(NY) Page 31
<PAGE>
Option 2: Life Income Based on the Life of One Annuitant
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 5% AIR
- ------------------------------------------------------------------------------------------------------------------
Option 2(a): Option 2(b): Option 2(b): Option 2(b): Option 2(b):
Adjusted payments for payments payments payments payments
Age of life guaranteed guaranteed guaranteed guaranteed
Annuitant 5 years 10 years 15 years 20 years
---------------- ---------------- ---------------- ---------------- ----------------
Male Female Male Female Male Female Male Female Male Female
- --------------------------------------------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
50 $5.48 $5.12 $5.46 $5.11 $5.41 $5.09 $5.34 $5.06 $5.24 $5.01
51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.29 5.05
52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.34 5.10
53 5.71 5.30 5.69 5.29 5.62 5.26 5.53 5.22 5.40 5.15
54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.27 5.45 5.20
55 5.89 5.44 5.86 5.43 5.79 5.39 5.67 5.34 5.51 5.25
56 5.99 5.52 5.96 5.51 5.87 5.47 5.74 5.40 5.56 5.31
57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.62 5.37
58 6.21 5.69 6.17 5.67 6.06 5.62 5.90 5.54 5.68 5.42
59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.61 5.74 5.48
60 6.46 5.89 6.41 5.87 6.28 5.80 6.06 5.69 5.79 5.55
61 6.60 6.00 6.55 5.97 6.39 5.90 6.15 5.77 5.85 5.61
62 6.75 6.11 6.69 6.08 6.51 6.00 6.24 5.86 5.91 5.67
63 6.91 6.23 6.84 6.20 6.64 6.10 6.33 5.95 5.96 5.73
64 7.09 6.37 7.00 6.33 6.77 6.22 6.42 6.04 6.02 5.80
65 7.27 6.51 7.18 6.46 6.91 6.34 6.52 6.13 6.07 5.86
66 7.47 6.66 7.36 6.61 7.05 6.46 6.61 6.23 6.12 5.92
67 7.68 6.82 7.55 6.76 7.20 6.60 6.70 6.33 6.16 5.99
68 7.91 7.00 7.76 6.93 7.35 6.74 6.80 6.43 6.21 6.04
69 8.15 7.19 7.98 7.11 7.51 6.89 6.89 6.54 6.25 6.10
70 8.41 7.39 8.21 7.30 7.67 7.04 6.97 6.64 6.28 6.15
71 8.69 7.62 8.45 7.51 7.83 7.21 7.06 6.74 6.32 6.20
72 8.99 7.86 8.70 7.73 8.00 7.38 7.14 6.85 6.35 6.25
73 9.31 8.12 8.97 7.97 8.16 7.55 7.21 6.95 6.37 6.29
74 9.65 8.41 9.26 8.23 8.33 7.73 7.29 7.04 6.39 6.33
75 10.02 8.72 9.55 8.50 8.50 7.92 7.35 7.14 6.41 6.36
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GMC-VA-98(NY) Page 32
<PAGE>
Option 3: Life Income Based on the Lives of Two Annuitants
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Monthly Payment Amount for Each $1,000*
Rates for a Fixed Annuity with 3% Guaranteed Interest Rate
Primary Annuitant is Female and Secondary Annuitant is Male
- ----------------------------------------------------------------------------------------------------------------------
Adjusted Ages
- -----------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e) Option 3(f)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
55 50 $3.75 $4.07 $4.26 $3.75 $3.98 $3.72
55 55 3.88 4.25 4.47 3.87 4.06 3.85
55 60 3.99 4.44 4.71 3.98 4.12 3.94
60 55 4.06 4.47 4.71 4.06 4.37 4.02
60 60 4.24 4.71 4.99 4.23 4.47 4.17
60 65 4.38 4.97 5.32 4.38 4.54 4.29
65 60 4.49 5.01 5.32 4.48 4.89 4.39
65 65 4.72 5.33 5.70 4.71 5.02 4.59
65 70 4.93 5.68 6.15 4.91 5.14 4.74
70 65 5.07 5.75 6.17 5.05 5.60 4.87
70 70 5.40 6.21 6.70 5.36 5.79 5.13
70 75 5.69 6.68 7.32 5.62 5.96 5.29
75 70 5.89 6.82 7.40 5.81 6.63 5.48
75 75 6.37 7.45 8.15 6.23 6.92 5.78
75 80 6.78 8.11 8.99 6.54 7.15 5.93
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GMC-VA-98(NY) Page 33
<PAGE>
Option 3: Life Income Based on the Lives of Two Annuitants
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 3.5% AIR
Primary Annuitant Is Female and Secondary Annuitant Is Male
- ------------------------------------------------------------------------------------------------------
Adjusted Ages
- -----------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $4.03 $4.36 $4.55 $4.03 $4.27
55 55 4.16 4.54 4.76 4.15 4.34
55 60 4.27 4.73 5.00 4.26 4.40
60 55 4.34 4.76 5.00 4.34 4.65
60 60 4.51 4.99 5.27 4.50 4.74
60 65 4.66 5.25 5.61 4.65 4.82
65 60 4.76 5.29 5.60 4.75 5.16
65 65 4.99 5.61 5.99 4.98 5.30
65 70 5.19 5.97 6.44 5.17 5.41
70 65 5.34 6.03 6.46 5.31 5.88
70 70 5.67 6.49 6.99 5.62 6.07
70 75 5.95 6.96 7.61 5.87 6.23
75 70 6.16 7.10 7.68 6.07 6.90
75 75 6.64 7.73 8.43 6.48 7.19
75 80 7.04 8.39 9.29 6.79 7.42
- ------------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GMC-VA-98(NY) Page 34
<PAGE>
Option 3: Life Income Based on the Lives of Two Annuitants
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 5% AIR
Primary Annuitant is Female and Secondary Annuitant is Male
- ---------------------------------------------------------------------------------------------------------------
Adjusted Ages
- -----------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e)
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $4.93 $5.27 $5.46 $4.93 $5.17
55 55 5.04 5.44 5.66 5.04 5.23
55 60 5.15 5.63 5.91 5.14 5.29
60 55 5.21 5.65 5.89 5.21 5.53
60 60 5.37 5.87 6.16 5.37 5.62
60 65 5.52 6.14 6.51 5.51 5.70
65 60 5.61 6.16 6.49 5.60 6.03
65 65 5.83 6.49 6.87 5.82 6.15
65 70 6.04 6.84 7.34 6.00 6.27
70 65 6.17 6.90 7.33 6.13 6.73
70 70 6.49 7.35 7.87 6.44 6.91
70 75 6.77 7.84 8.51 6.68 7.07
75 70 6.97 7.96 8.56 6.87 7.75
75 75 7.45 8.60 9.33 7.27 8.04
75 80 7.86 9.28 10.20 7.57 8.27
- --------------------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GMC-VA-98(NY) Page 35
<PAGE>
Option 3: Life Income Based on the Lives of Two Annuitants
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
Monthly Payment Amount for Each $1,000*
Rates for a Fixed Annuity with 3% Guaranteed Interest Rate
Primary Annuitant is Male and Secondary Annuitant is Female
- ----------------------------------------------------------------------------------------------------------------------
Adjusted Ages
- -----------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e) Option 3(f)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
55 50 $3.69 $4.05 $4.27 $3.69 $4.13 $3.67
55 55 3.88 4.25 4.47 3.87 4.25 3.85
55 60 4.06 4.47 4.71 4.06 4.36 4.02
60 55 3.99 4.44 4.71 3.98 4.55 3.94
60 60 4.24 4.71 4.99 4.23 4.70 4.17
60 65 4.49 5.01 5.32 4.48 4.85 4.39
65 60 4.38 4.97 5.32 4.38 5.10 4.29
65 65 4.72 5.33 5.70 4.71 5.32 4.59
65 70 5.07 5.75 6.17 5.05 5.54 4.87
70 65 4.93 5.68 6.15 4.91 5.86 4.74
70 70 5.40 6.21 6.70 5.36 6.18 5.13
70 75 5.89 6.82 7.40 5.81 6.49 5.48
75 70 5.69 6.68 7.32 5.62 6.92 5.29
75 75 6.37 7.45 8.15 6.23 7.40 5.78
75 80 7.07 8.34 9.16 6.78 7.85 6.17
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GMC-VA-98(NY) Page 36
<PAGE>
Option 3: Life Income Based on the Lives of Two Annuitants
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 3.5% AIR
Primary Annuitant is Male and Secondary Annuitant is Female
- ------------------------------------------------------------------------------------------------------
Adjusted Ages
- -----------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $3.97 $4.35 $4.56 $3.97 $4.42
55 55 4.16 4.54 4.76 4.15 4.54
55 60 4.34 4.76 5.00 4.34 4.64
60 55 4.27 4.73 5.00 4.26 4.83
60 60 4.51 4.99 5.27 4.50 4.98
60 65 4.76 5.29 5.60 4.75 5.13
65 60 4.66 5.25 5.61 4.65 5.39
65 65 4.99 5.61 5.99 4.98 5.60
65 70 5.34 6.03 6.46 5.31 5.81
70 65 5.19 5.97 6.44 5.17 6.14
70 70 5.67 6.49 6.99 5.62 6.47
70 75 6.16 7.10 7.68 6.07 6.77
75 70 5.95 6.96 7.61 5.87 7.20
75 75 6.64 7.73 8.43 6.48 7.68
75 80 7.33 8.62 9.45 7.02 8.13
- ------------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GMC-VA-98(NY) Page 37
<PAGE>
Option 3: Life Income Based on the Lives of Two Annuitants
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
First Monthly Payment Amount for Each $1,000*
Rates for a Variable Annuity with 5% AIR
Primary Annuitant Is Male and Secondary Annuitant is Female
- ------------------------------------------------------------------------------------------------------
Adjusted Ages
- -----------------------
payments
guaranteed
Primary Secondary 10 years
Annuitant Annuitant Option 3(a) Option 3(b) Option 3(c) Option 3(d) Option 3(e)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
55 50 $4.88 $5.26 $5.48 $4.88 $5.34
55 55 5.04 5.44 5.66 5.04 5.43
55 60 5.21 5.65 5.89 5.21 5.53
60 55 5.15 5.63 5.91 5.14 5.73
60 60 5.37 5.87 6.16 5.37 5.86
60 65 5.61 6.16 6.49 5.60 6.01
65 60 5.52 6.14 6.51 5.51 6.28
65 65 5.83 6.49 6.87 5.82 6.47
65 70 6.17 6.90 7.33 6.13 6.67
70 65 6.04 6.84 7.34 6.00 7.03
70 70 6.49 7.35 7.87 6.44 7.33
70 75 6.97 7.96 8.56 6.87 7.62
75 70 6.77 7.84 8.51 6.68 8.08
75 75 7.45 8.60 9.33 7.27 8.55
75 80 8.14 9.49 10.35 7.80 8.98
- ------------------------------------------------------------------------------------------------------
</TABLE>
* Net of any applicable premium tax deduction
GMC-VA-98(NY) Page 38
<PAGE>
- --------------------------------------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
P.O. Box 30670
Hartford, Connecticut 06150-0670
(800) 531-4547
Group Variable, Fixed, or Combination Annuity Contract
Nonparticipating
- --------------------------------------------------------------------------------
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. AMOUNTS ALLOCATED TO THE GUARANTEED ACCOUNT, IF WITHDRAWN
BEFORE THE GUARANTEED TERM MATURITY DATE, MAY BE SUBJECT TO A MARKET VALUE
ADJUSTMENT. THE MARKET VALUE ADJUSTMENT MAY RESULT IN AN INCREASE OR A DECREASE
IN THE ACCOUNT VALUE. THE MARKET VALUE ADJUSTMENT FORMULA DOES NOT APPLY TO A
GUARANTEED TERM AT THE TIME OF ITS MATURITY.
GMC-VA-98(NY)
Exhibit 99-B.8.24
FUND PARTICIPATION AGREEMENT
between
FUND and ALIAC
Aetna Life Insurance and Annuity Company (the "Company"), Mitchell Hutchins
Series Trust (the "Fund") and Mitchell Hutchins Asset Management, Inc. (the
"Adviser") hereby agree to an arrangement whereby the Fund shall be made
available to serve as underlying investment media for Variable Annuity or
Variable Life Contracts ("Contracts") to be issued by the Company.
1. Establishment of Accounts; Availability of Fund.
(a) The Company represents that it has established Variable Annuity
Accounts B, C, D and Variable Life Account B and may establish such
other accounts as may be set forth in Schedule A attached hereto and
as may be amended from time to time with the mutual consent of the
parties hereto (the "Accounts"), each of which is a separate account
under Connecticut Insurance law, and has registered or will register
each of the Accounts (except for such Accounts for which no such
registration is required) as a unit investment trust under the
Investment Company Act of 1940 (the "1940 Act"), to serve as an
investment vehicle for the Contracts. Each Contract provides for the
allocation of net amounts received by the Company to an Account for
investment in the shares of one of more specified open-end management
investment companies available through that Account as underlying
investment media. Selection of a particular investment management
company and changes therein from time to time are made by the
participant or Contract owner, as applicable under a particular
Contract.
(b) The Fund represents and warrants that the investments of the series of
the Fund (each designated a "Portfolio") specified in Schedule B
attached hereto (as may be amended from time to time with the mutual
consent of the parties hereto) will at all times be adequately
diversified within the meaning of Section 817(h) of the Internal
Revenue Service Code of 1986, as amended (the "Code"), and the
Regulations thereunder, and that at all times while this agreement is
in effect, all beneficial interests will be owned by one or more
insurance companies or by any other party permitted under Section
1.817-5(f)(3) of the Regulations promulgated under the Code or by the
successor thereto, or by any other party permitted under a Revenue
Ruling or private letter ruling granted by the Internal Revenue
Service.
2. Pricing Information; Orders; Settlement.
(a) The Fund will make Fund shares available to be purchased by the
Company, and will accept redemption orders from the Company, on behalf
of each Account at the net asset value applicable to each order on
those days on which the Fund calculates its net asset value (a
"Business Day"). Fund shares shall be purchased and redeemed in such
quantity and at such time determined by the Company to be necessary to
meet the
1
<PAGE>
requirements of those Contracts for which the Fund serve as underlying
investment media, provided, however, that the Board of Trustees of the
Fund (hereinafter the "Trustees") may upon reasonable notice to the
Company, refuse to sell shares of any Portfolio to any person, or
suspend or terminate the offering of shares of any Portfolio if such
action is required by law or by regulatory authorities having
jurisdiction or is, in the sole discretion of the Trustees, acting in
good faith and in the best interests of the shareholders of any
Portfolio and is acting in compliance with their fiduciary obligations
under federal and/or any applicable state laws.
(b) The Fund will provide to the Company closing net asset value, dividend
and capital gain information at the close of trading each day that the
New York Stock Exchange (the "Exchange" is open (each such day a
"Business Day"), and in no event later than 7:00 p.m. Eastern Standard
time on such Business Day. The Company will send via facsimile or
electronic transmission to the Fund or its specified agent orders to
purchase and/or redeem Fund shares by 10:00 a.m. Eastern Standard Time
the following business day. Payment for net purchases will be wired by
the Company to an account designated by the Fund to coincide with the
order for shares of the Fund.
(c) The Fund hereby appoints the Company as its agent for the limited
purpose of accepting purchase and redemption orders for Fund shares
relating to the Contracts from Contract owners or participants. Orders
from Contract owners or participants received from any distributor of
the Contracts (including affiliates of the Company) by the Company,
acting as agent for the Fund, prior to the close of the Exchange on
any given business day will be executed by the Fund at the net asset
value determined as of the close of the Exchange on such Business Day,
provided that the Fund receives written (or facsimile) notice of such
order by 10 a.m. Eastern Standard Time on the next following Business
Day. Any orders received by the Company acting as agent on such day
but after the close of the Exchange will be executed by the Fund at
the net asset value determined as of the close of the Exchange on the
next business day following the day of receipt of such order, provided
that the Fund receives written (or facsimile) notice of such order by
10 a.m. Eastern Standard Time within two days following the day of
receipt of such order.
(d) Payments for net redemptions of shares of the Fund will be wired by
the Fund to an account designated by the Company. Payments for net
purchases of the Fund will be wired by the Company to an account
designated by the Fund on the same Business Day the Company places an
order to purchase Fund shares. Payments shall be in federal funds
transmitted by wire.
(e) Each party has the right to rely on information or confirmations
provided by the other party (or by any affiliate of the other party),
and shall not be liable in the event that an error is a result of any
misinformation supplied by the other party.
(f) The Company agrees to purchase and redeem the shares of the Portfolios
named in Schedule B offered by the then current prospectus and
statement of additional information of the Fund in accordance with the
provisions of such prospectus and statement of additional information.
The Company shall not permit any person other
2
<PAGE>
than a Contract owner or Participant to give instructions to the
Company which would require the Company to redeem or exchange shares
of the Fund. This provision shall not be construed to prohibit the
Company from substituting shares of another fund, as permitted by law.
3. Expenses.
(a) Except as otherwise provided in this Agreement, all expenses incident
to the performance by the Fund under this Agreement shall be paid by
the Fund, including the cost of registration of Fund shares with the
Securities and Exchange Commission (the "SEC") and in states where
required. The Fund and Adviser shall pay no fee or other compensation
to the Company under this Agreement, and the Company shall pay no fee
or other compensation to the Fund or Adviser, except as provided
herein and in Schedule C attached hereto and made a part of this
Agreement as may be amended from time to time with the mutual consent
of the parties hereto. All expenses incident to performance by each
party of its respective duties under this Agreement shall be paid by
that party, unless otherwise specified in this Agreement.
(b) The Fund or the Adviser shall provide to the Company PostScript files
of periodic fund reports to shareholders and other materials that are
required by law to be sent to Contract owners. In addition, the Fund
or the Adviser shall provide the Company with a sufficient quantity of
its prospectuses, statements of additional information and any
supplements to any of these materials, to be used in connection with
the offerings and transactions contemplated by this Agreement. In
addition, the Fund shall provide the Company with a sufficient
quantity of its proxy material that is required to be sent to Contract
owners. The Adviser shall be permitted to review and approve the
typeset form of such material prior to such printing provided such
material has been provided by the Adviser to the Company within a
reasonable period of time prior to typesetting.
(c) In lieu of the Fund's or Adviser's providing printed copies of
prospectuses, statements of additional information and any supplements
to any of these materials, and periodic fund reports to shareholders,
the Company shall have the right to request that the Fund transmit a
copy of such materials in an electronic format (Post Script files),
which the Company may use to have such materials printed together with
similar materials of other Account funding media that the Company or
any distributor will distribute to existing or prospective Contract
owners or participants.
4. Representations.
The Company agrees that it and its agents shall not, without the written
consent of the Fund or the Adviser, make representations concerning the
Fund, its shares, or the Adviser except those contained in the then current
prospectuses and in current printed sales literature approved by or deemed
approved by the Fund or the Adviser if the Fund or Adviser does not respond
within 5 days of receiving written copy of such materials.
3
<PAGE>
(a) The Company represents and warrants that it is an insurance company
duly organized and in good standing under the laws of the state of its
incorporation and that it has legally and validly established each
Contract and Account.
(b) The Company represents and warrants that it has registered or, prior
to any issuance or sale of the Contracts, will register each Account
as a unit investment trust ("UII") in accordance with the provisions
of the 1940 Act and cause each Account to remain so registered to
serve as a segregated asset account for the Contracts unless an
exemption from registration is available.
(c) The Company represents and warrants that the Contracts will be
registered under the 1933 Act unless an exemption from registration is
available prior to any issuance or sale of the Contracts and that the
Company will use its best efforts to ensure that the Contracts will be
issued and sold in compliance in all material respects with applicable
federal and state laws and further that the sale of the Contracts
shall comply in all material respects with state insurance law
suitability requirements.
(d) The Company represents and warrants that the Contracts are currently
and at the time of issuance will be treated as life insurance,
endowment or annuity contracts under applicable provisions of the
Code, and that it will notify the Fund immediately upon having a
reasonable basis for believing that the Contracts have ceased to be so
treated or that they might not be so treated in the future.
5. Termination.
This agreement shall terminate as to the sale and issuance of new
Contracts:
(a) at the option of either the Company, the Adviser or the Fund, upon
sixty days advance written notice to the other parties;
(b) at the option of the Company, upon one week advance written notice to
the Adviser and the Fund, if Fund shares are not available for any
reason to meet the requirement of Contracts as determined by the
Company. Reasonable advance notice of election to terminate shall be
furnished by Company;
(c) at the option of either the Company, the Adviser or the Fund,
immediately upon institution of formal proceedings against the
broker-dealer or broker-dealers marketing the Contracts, the Account,
the Company, the Fund or the Adviser by the National Association of
Securities Dealers, Inc. (the "NASD"), the SEC or any other regulatory
body;
(d) upon the determination of the Accounts to substitute for the Fund's
shares the shares of another investment company in accordance with the
terms of the applicable Contracts. The Company will give 60 days
written notice to the Fund and the Adviser of any decision to replace
the Fund's' shares;
4
<PAGE>
(e) upon assignment of this Agreement, unless made with the written
consent of all other parties hereto;
(f) if Fund shares are not registered, issued or sold in conformance with
Federal law or such law precludes the use of Fund shares as an
underlying investment medium for Contracts issued or to be issued by
the Company. Prompt notice shall be given by the appropriate party
should such situation occur.
(g) in the event the Contracts cease to qualify as annuity contracts or
life insurance contracts, as applicable under the Code or the Fund
reasonably believes that the Contracts may fail to so qualify, the
Fund may terminate this Agreement effective upon giving notice to the
Company.
(h) at the option of any Party, upon a Party's breach of any material
provision of this Agreement, which breach has not been cured to the
satisfaction of the other Party within 20 days after written notice of
such breach is delivered to the other Party.
(i) At the option of the Fund, if the Contracts are not registered, issued
or sold in all material respects in accordance with applicable federal
and/or state law. Termination shall be effective immediately upon
written notice.
6. Continuation of Agreement.
Termination as the result of any cause listed in Section 5 shall not affect
the Fund's obligation to furnish its shares to Contracts then in force for which
its shares serve or may serve as the underlying medium unless such further sale
of Fund shares is prohibited by law or the SEC or other regulatory body, or is
determined by the Fund's Board to be necessary to remedy or eliminate an
irreconcilable conflict pursuant to Section 10 hereof.
7. Advertising Materials; Filed Documents.
(a) Advertising and sales literature with respect to the Fund prepared by
the Company or its agents for use in marketing its Contracts will be
submitted to the Fund or its designee for review before such material
is used and submitted to any regulatory body for review. No such
material shall be used if the Fund or its designee reasonably object
to such use in writing, transmitted by facsimile within five business
days after receipt of such material.
(b) The Fund will provide additional copies of its financials as soon as
available to the Company and at least one complete copy of all
registration statements, prospectuses, statements of additional
information, annual and semi-annual reports, proxy statements and all
amendments or supplements to any of the above that relate to the Fund
promptly after the filing of such document with the SEC or other
regulatory authorities. At the Adviser's request, the Company will
provide to the Adviser at least one complete copy of all registration
statements, prospectuses, statements of additional information, annual
and semi-annual reports, proxy statements, and all
5
<PAGE>
amendments or supplements to any of the above that relate to the
Account promptly after the filing of such document with the SEC or
other regulatory authority.
(c) The Fund or the Adviser will provide via Excel spreadsheet diskette
format or in electronic transmission to the Company at least quarterly
portfolio information necessary to update Fund profiles with seven
business days following the end of each quarter.
(d) The Fund will reimburse the Company for any incorrect information
provided to the Company under this Section as provided for in Schedule
C.
8. Proxy Voting.
(a) The Company shall provide pass-through voting privileges on Fund
shares held by registered separate accounts to all Contract owners and
participants to the extent the SEC continues to interpret the 1940 Act
as requiring such privileges. The Company shall provide pass-through
voting privileges on Fund shares held by unregistered separate
accounts to all Contract owners.
(b) The Company will distribute to Contract owners and participants, as
appropriate, all proxy material furnished by the Fund and will vote
Fund shares in accordance with instructions received from such
Contract owners and participants. If and to the extent required by
law, the Company, with respect to each group Contract and in each
Account, shall vote Fund shares for which no instructions have been
received in the same proportion as shares for which such instructions
have been received. The Company and its agents shall not oppose or
interfere with the solicitation of proxies for Fund shares held for
such Contract owners and participants.
9. Indemnification.
(a) The Company agrees to indemnify and hold harmless the Fund and the
Adviser, and each of their directors, officers, employees, agents,
trustees and each person, if any, who controls the Fund or its Adviser
within the meaning of the Securities Act of 1933 (the "1933 Act")
against any losses, claims, damages or liabilities to which the Fund,
the Adviser or any such director, officer, employee, agent, or
controlling person may become subject, under the 1933 Act or
otherwise, insofar as such losses, claims, damages, or liabilities (or
actions in respect thereof) that (i) arise out of a breach or
violation of the terms of this Agreement by the Company or (ii) arise
out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in the Contracts or the
Registration Statement, prospectus or sales literature prepared by the
Company or arise out of or are based upon the omission or the alleged
omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, or
arise out of or as a result of conduct, statements or representations
(other than statements or representations contained in the
prospectuses or sales literature of the Fund) of the Company or its
agents, with respect to the sale and distribution of Contracts for
which Fund shares are the underlying investment. The Company will
reimburse any legal or other expenses
6
<PAGE>
reasonably incurred by the Fund, the Adviser or any such director,
officer, employee, agent, investment adviser, trustee or controlling
person in connection with investigating or defending any such loss,
claim, damage, liability or action; provided, however, that the
Company will not be liable in any such case to the extent that any
such loss, claim, damage or liability arises out of or is based upon
(i) an untrue statement or omission or alleged omission made in such
Registration Statement or prospectus in conformity with written
materials furnished to the Company by the Fund specifically for use
therein or (ii) the willful misfeasance, bad faith, or gross
negligence by the Fund or Adviser in the performance of its duties
hereunder or the Fund's or Adviser's reckless disregard of obligations
or duties under this Agreement or to the Company, whichever is
applicable. This indemnity agreement will be in addition to any
liability which Company may otherwise have.
(b) The Fund and the Adviser agree to indemnify and hold harmless the
Company and its directors, officers, employees, agents and each
person, if any, who controls the Company within the meaning of the
1933 Act against any losses, claims, damages or liabilities to which
the Company or any such director, officer, employee, agent or
controlling person may become subject, under the 1933 Act or
otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) that (i) arise out of a breach or
violation of the terms of this Agreement by the Fund or Adviser or
(ii) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in the Registration
Statement, prospectuses or sales literature of the Fund or arise out
of or are based upon the omission or the alleged omission to state
therein a material fact required to be stated therein or material fact
required to be stated therein or necessary to make the statements
therein not misleading. The Fund and/or the Adviser will reimburse any
legal or other expenses reasonably incurred by the Company or any such
director, officer, employee, agent, or controlling person in
connection with investigating or defending any such loss, claim,
damage, liability or action; provided, however, that the Fund or
Adviser will not be liable in any such case to the extent that any
such loss, claim, damage or liability arises out of or is based upon
(i) an untrue statement or omission or alleged omission made in such
Registration Statement or prospectuses which are in conformity with
written materials furnished to the Fund by the Company specifically
for use therein, or (ii) the willful misfeasance, bad faith, or gross
negligence by the Company in the performance of its duties hereunder
or the Company's reckless disregard of obligations or duties under
this Agreement or to the Fund and/or Adviser, whichever is applicable.
This indemnity agreement will be in addition to any liability which
the Fund and/or Adviser may otherwise have.
(c) Promptly after receipt by an indemnified party hereunder of notice of
the commencement of action, such indemnified party will, if a claim in
respect thereof is to be made against the indemnifying party
hereunder, notify the indemnifying party of the commencement thereof;
but the omission so to notify the indemnifying party will not relieve
it from any liability which it may have to any indemnified party
otherwise than under this Section 10. In case any such action is
brought against any indemnified party, and it notifies the
indemnifying party of the commencement thereof, the indemnifying party
will be entitled to participate therein and, to the extent that it may
7
<PAGE>
wish to, assume the defense thereof, with counsel satisfactory to such
indemnified party, and after notice from the indemnifying party to
such indemnified party of its election to assume the defense thereof,
the indemnifying party will not be liable to such indemnified party
under this Section 9 for any legal or other expenses subsequently
incurred by such indemnified party in connection with the defense
thereof other than reasonable costs of investigation.
10. Potential Conflicts.
(a) The Company has received a copy of an application for exemptive
relief, as amended, filed by the Fund on and with the SEC (File No.
811-4919) (the "Shared Funding Exemptive Application"). The Company
has reviewed the conditions to the requested relief set forth in such
application for exemptive relief. As set forth in such application
once the Shared Funding Exemptive Order is issued, the Board of
Trustees of Fund (the "Board") will monitor the Fund for the existence
of any material irreconcilable conflict between the interests of the
contractholders of all separate accounts ("Participating Companies")
investing in the Fund. An irreconcilable material conflict may arise
for a variety of reasons, including: (i) an action by any state
insurance regulatory authority; (ii) a change in applicable federal or
state insurance, tax, or securities laws or regulations, or a public
ruling, private letter ruling, no-action or interpretative letter, or
any similar actions by insurance, tax or securities regulatory
authorities; (iii) an administrative or judicial decision in any
relevant proceeding; (iv) the manner in which the investments of any
portfolio are being managed; (v) a difference in voting instructions
given by variable annuity contractholders and variable life insurance
contractholders; or (vi) a decision by an insurer to disregard the
voting instructions of contractholders. The Board shall promptly
inform the Company if it determines that an irreconcilable material
conflict exists and the implications thereof.
(b) The Company will report any potential or existing conflicts of which
it is aware to the Board. The Company will assist the Board in
carrying out its responsibilities under the Shared Funding Exemptive
Order by providing the Board with all information reasonably necessary
for the Board to consider any issues raised. This includes, but is not
limited to, an obligation by the Company to inform the Board whenever
contractholder voting instructions are disregarded.
(c) If a majority of the Board, or a majority of its disinterested Board
members, determines that a material irreconcilable conflict exists
with regard to contractholder investments in a Fund, the Board shall
give prompt notice to all Participating Companies. If the Board
determines that the Company is responsible for causing or creating
said conflict, the Company shall at its sole cost and expense, and to
the extent reasonably practicable (as determined by a majority of the
disinterested Board members), take such action as is necessary to
remedy or eliminate the irreconcilable material conflict. Such
necessary action may include but shall not be limited to:
(i) withdrawing the assets allocable to the Account from the Fund and
reinvesting such assets in a different investment medium or
submitting the question of
8
<PAGE>
whether such segregation should be implemented to a vote of all
affected contractholders and as appropriate, segregating the
assets of any appropriate group (i.e., annuity contract owners,
life insurance contract owners, or variable contract owners of
one or more Participating Companies) that votes in favor of such
segregation, or offering to the affected contractholders the
option of making such a change; and/or
(ii) establishing a new registered management investment company or
managed separate account.
(d) If a material irreconcilable conflict arises as a result of a decision
by the Company to disregard its contractholder voting instructions and
said decision represents a minority position or would preclude a
majority vote by all of its contractholders having an interest in the
Fund, the Company at its sole cost, may be required, at the Board's
election, to withdraw an Account's investment in the Fund and
terminate this Agreement; provided, however, that such withdrawal and
termination shall be limited to the extent required by the foregoing
material irreconcilable conflict as determined by a majority of the
disinterested members of the Board.
(e) For the purpose of this Section 10, a majority of the disinterested
Board members shall determine whether or not any proposed action
adequately remedies any irreconcilable material conflict, but in no
event will the Fund be required to establish a new funding medium for
any Contract. The Company shall not be required by this Section 11 to
establish a new funding medium for any Contract if an offer to do so
has been declined by vote of a majority of the Contract owners or
participants materially adversely affected by the irreconcilable
material conflict.
12. Miscellaneous.
(a) Amendment and Waiver. Neither this Agreement, nor any provision
hereof, may be amended, waived, discharged or terminated orally, but
only by an instrument in writing signed by all parties hereto.
(b) Notices. All notices and other communications hereunder shall be given
or made in writing and shall be delivered personally, or sent by
telex, telecopier or registered or certified mail, postage prepaid,
return receipt requested, or recognized overnight courier service to
the party or parties to whom they are directed at the following
addresses, or at such other addresses as may be designated by notice
from such party to all other parties.
To the Company:
Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, Connecticut 06156
Attention: Maria F. McKeon, Counsel
9
<PAGE>
To the Fund:
Mitchell Hutchins Series Trust
C/O Mitchell Hutchins Asset Management, Inc.
1285 Avenue of the Americas
New York, NY 10010
Attn: Dianne E. O'Donnell
Secretary and Vice President
Any notice, demand or other communication given in a manner prescribed in
this subsection (b) shall be deemed to have been delivered on receipt.
(c) Successors and Assigns. This agreement shall be binding upon and inure
to the benefit of the parties hereto and their respective permitted
successors and assigns.
(d) Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one
agreement, and any party hereto may execute this Agreement by signing
any such counterpart.
(e) Severability. In case any one or more of the provisions contained in
this Agreement should be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or
impaired thereby.
(f) Entire Agreement. This Agreement constitutes the entire agreement and
understanding between the parties hereto and supersedes all prior
agreement and understandings relating to the subject matter hereof.
(g) Governing Law. This Agreement shall be governed and interpreted in
accordance with the laws of the State of Connecticut.
(h) It is understood by the parties that this Agreement is not an
exclusive arrangement in any respect.
(i) The terms of this Agreement and the Schedules thereto will be held
confidential by each party except to the extent that either party or
its counsel may deem it necessary to disclose such terms.
10
<PAGE>
13. Limitation on Liability of Trustees, etc.
This agreement has been executed on behalf of the Fund by the undersigned
officer of the Fund in his or her capacity as an officer of the Fund. The
obligations of this agreement shall be binding upon the assets and property of
the Fund only and shall not be binding on any Trustee, officer or shareholder of
the Fund individually.
IN WITNESS WHEREOF, the undersigned have executed this Agreement by their
duly authorized officers effective as of the 1st day of May, 1999.
AETNA LIFE INSURANCE AND ANNUITY COMPANY
By: /s/ Laurie M. LeBlanc
-----------------------------------------------------------
Name: Laurie M. LeBlanc
Title: Vice President
MITCHELL HUTCHINS SERIES TRUST
By: /s/ Dianne E. O'Donnell
-----------------------------------------------------------
Name: Dianne E. O'Donnell
Title: Secretary and Vice President
MITCHELL HUTCHINS ASSET MANAGEMENT, INC.
By: /s/ Dianne E. O'Donnell
-----------------------------------------------------------
Name: Dianne E. O'Donnell
Title: Senior Vice President
11
<PAGE>
Schedule A
(For any future separate accounts - See Section 1(a))
12
<PAGE>
Schedule B
[bullet] MITCHELL HUTCHINS SERIES TRUST -
[diamond] GROWTH & INCOME PORTFOLIO
[diamond] TACTICAL ALLOCATION PORTFOLIO
[diamond] SMALL CAP PORTFOLIO
13
<PAGE>
Schedule C
The following costs, expenses and reimbursements will be paid by the party
indicated:
1. For purposes of Sections 2 and 7, the Fund shall be liable to the Company
for systems and out of pocket costs incurred by the Company in making a
Contract owner's or a participant's account whole, if such costs or
expenses are a result of the Fund's failure to provide timely or correct
net asset values, dividend and capital gains or financial information and
if such information is not corrected by 4pm EST of the next business day
after releasing such incorrect information provided the incorrect NAV as
well as the correct NAV for each day that the error occurred is provided.
If a mistake is caused in supplying such information or confirmations,
which results in a reconciliation with incorrect information, the amount
required to make a Contract owner's or a Participant's account whole shall
be borne by the party providing the incorrect information, regardless of
when the error is corrected.
2. For purposes of Section 3, the Fund shall pay for the cost of typesetting
and printing periodic fund reports to shareholders, prospectuses,
prospectus supplements, statements of additional information and other
materials that are required by law to be sent to Contract owners or
participants, as well as the cost of distributing such materials. The
Company shall pay for the cost of prospectuses and statements of additional
information and the distribution thereof for prospective Contract owners or
participants. Each party shall be provided with such supporting data as may
reasonably be requested for determining expenses under Section 3.
3. The Fund shall pay all expenses in connection with the provision to the
Company of a sufficient quantity of its proxy material under Section 3. The
cost associated with proxy preparation, group authorization letters,
programming for tabulation and necessary materials (including postage) will
be paid by the Fund.
Dated this 1st day of May, 1999.
AETNA LIFE INSURANCE AND ANNUITY COMPANY
By: /s/ Laurie M. LeBlanc
-----------------------------------------------------------
Name: Laurie M. LeBlanc
Title: Vice President
14
<PAGE>
MITCHELL HUTCHINS SERIES TRUST
By: /s/ Dianne E. O'Donnell
-----------------------------------------------------------
Name: Dianne E. O'Donnell
Title: Secretary and Vice President
MITCHELL HUTCHINS ASSET MANAGEMENT, INC.
By: /s/ Dianne E. O'Donnell
-----------------------------------------------------------
Name: Dianne E. O'Donnell
Title: Senior Vice President
Exhibit 99-B.8.25
SERVICE AGREEMENT
AGREEMENT, effective as of May 1, 1999, between Mitchell Hutchins Asset
Management, Inc. (the "Adviser"), a Delaware corporation, and Aetna Life
Insurance and Annuity Company (the "Company"), a Connecticut corporation, for
the provision of described certain services by the Company in connection with
the sale of shares of the Mitchell Hutchins Series Trust (the "Fund") as
described in the Fund Participation Agreement dated May 1, 1999, between the
Company, the Fund and the Adviser (the "Fund Participation Agreement").
In consideration of their mutual promises, the Adviser and the Company agree as
follows:
1. The Company agrees to provide the following services to the Adviser:
(a) responding to inquiries from owners of the Company variable annuity
contracts and variable life insurance policies using the Funds as an
investment vehicle ("Contractholders") regarding the services performed by
the Company that relate to the Funds;
(b) providing information to Adviser and Contractholders with respect to Fund
shares attributable to Contractholder accounts;
(c) communicating directly with Contractholders concerning the Funds'
operations; and
(d) providing such other similar services as Adviser may reasonably request
pursuant to Adviser's agreement with the Funds to the extent permitted
under applicable federal and state requirements.
1. Services.
(a) Providing services to Contractholders owners and participants under
this Agreement shall be the responsibility of the Company and shall
not be the responsibility of the Fund or the Adviser. In consideration
for providing services under this Agreement, the Adviser agrees to pay
to the Company and the Company agrees to accept as full compensation
for all services rendered hereunder an amount described in Schedule A
attached hereto and made a part of this Agreement as may be amended
from time to time with the mutual consent of the parties hereto.
(a) For the purposes of computing the fee contemplated by this Section 2,
the average aggregate amount invested by the Company over a one month
period shall be computed by totaling the Company's aggregate
investment (share net asset value multiplied by total number of shares
held by the Company) on each business day during the month and
dividing by the total number of business days during each month.
<PAGE>
(b) The Fund will calculate the fee at the end of each month and will make
such payment to the Company within 30 days thereafter. The
reimbursement payment will be accompanied by a statement showing the
calculation of the monthly amounts payable by the Adviser and such
other supporting data as may be reasonably requested by the Company.
Payment will be wired by the Adviser to an account designated by the
Company.
4. The Company agrees to indemnify and hold harmless the Adviser and its
directors, officers, and employees from any and all loss, liability and
expense resulting from any gross negligence or willful wrongful act of the
Company under this Agreement or a breach of a material provision of this
Agreement, except to the extent such loss, liability or expense is the
result of the Adviser's misfeasance, bad faith or gross negligence in the
performance of its duties.
5. The Adviser agrees to indemnify and hold harmless the Company and its
directors, officers, and employees from any and all loss, liability and
expense resulting from any gross negligence or willful wrongful act of the
Adviser under this Agreement or a breach of a material provision under this
Agreement, except to the extent such loss, liability or expense is the
result of the Company's own willful misfeasance, bad faith or gross
negligence in the performance of its duties.
6. Either party may terminate this Agreement, without penalty, (i) on sixty
(60) days written notice to the other party, for any cause or without
cause, or (ii) on reasonable notice to the other party, if it is not
permissible to continue the arrangement described herein under laws, rules
or regulations applicable to either party or the Fund, or if the
Participation Agreement is terminated.
7. The terms of this arrangement will be held confidential by each party
except to the extent that either party or its counsel may deem it necessary
to disclose this arrangement.
8. This Agreement represents the entire Agreement of the parties on the
subject matter hereof and it cannot be amended or modified except in
writing, signed by the parties. This Agreement may be executed in one or
more separate counterparts, all of which, when taken together, shall
constitute one and the same Agreement.
9. All notices and other communications hereunder shall be given or made in
writing and shall be delivered personally, or sent by telex, telecopier or
registered or certified mail, postage prepaid, return receipt requested, or
recognized overnight courier service to the party to whom they are directed
at the following addresses, or at such other addresses as may be designated
by notice from such party to the other party.
To: Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, Connecticut 06156
Attention: Maria F. McKeon, Counsel
2
<PAGE>
To: Mitchell Hutchins Asset Management, Inc:
1285 Avenue of the Americas
New York, NY 10019
Attention: General Counsel
Any notice, demand or other communication given in a manner prescribed in
this Section 9 shall be deemed to have been delivered on receipt.
IN WITNESS WHEREOF, the parties to this Agreement have caused this Agreement to
be executed by their authorized officers as of the day and year first above
written.
MITCHELL HUTCHINS ASSET MANAGEMENT, INC.
By: /s/ Dianne E. O'Donnell
-----------------------------------------------------------
Name: Dianne E. O'Donnell
Title: Senior Vice President
AETNA LIFE INSURANCE AND ANNUITY COMPANY
By: /s/ Laurie M. LeBlanc
-----------------------------------------------------------
Name: Laurie M. LeBlanc
Title: Vice President
3
<PAGE>
Schedule A
In consideration of the services provided by the Company, the Adviser agrees to
pay the Company, effective January 1, 2000, an amount equal to 25 basis points
(0.25%) per annum of the average aggregate amount invested by the Company in the
Fund under the Fund Participation Agreement.
Dated this 1st day of May, 1999.
MITCHELL HUTCHINS ASSET MANAGEMENT, INC.
By: /s/ Dianne E. O'Donnell
-----------------------------------------------------------
Name: Dianne E. O'Donnell
Title: Senior Vice President
AETNA LIFE INSURANCE AND ANNUITY COMPANY
By: /s/ Laurie M. LeBlanc
-----------------------------------------------------------
Name: Laurie M. LeBlanc
Title: Vice President
4
Exhibit 99-B.9
151 Farmington Avenue
Hartford, CT 06156-3124
Julie E. Rockmore
Counsel
Law Division, TS31
June 25, 1999 Investments & Financial Services
(860) 273-4686
Fax: (860) 273-0385
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Attention: Filing Desk
Re: Variable Annuity Account B of Aetna Life Insurance and Annuity Company
Post-Effective Amendment No. 8 to Registration Statement on Form N-4
Prospectus Title: Aetna Variable Annuity
File Nos.: 333-56297 and 811-02512
Gentlemen:
The undersigned serves as counsel to Aetna Life Insurance and Annuity Company, a
Connecticut life insurance company (the "Company"). It is my understanding that
the Company, as depositor, has registered an indefinite amount of securities
(the "Securities") under the Securities Act of 1933 (the "Securities Act") as
provided in Rule 24f-2 under the Investment Company Act of 1940 (the "Investment
Company Act").
In connection with this opinion, I or those for whom I have supervisory
responsibility, have reviewed the N-4 Registration Statement, as amended to the
date hereof, and this Post-Effective Amendment No. 8. I have also examined
originals or copies, certified or otherwise identified to my satisfaction, of
such documents, trust records and other instruments I have deemed necessary or
appropriate for the purpose of rendering this opinion. For purposes of such
examination, I have assumed the genuineness of all signatures on original
documents and the conformity to the original of all copies.
I am admitted to practice law in Connecticut, and do not purport to be an expert
on the laws of any other state. My opinion herein as to any other law is based
upon a limited inquiry thereof which I have deemed appropriate under the
circumstances.
Based upon the foregoing, and, assuming the Securities are sold in accordance
with the provisions of the prospectus, I am of the opinion that the Securities
being registered will be legally issued and will represent binding obligations
of the Company.
<PAGE>
I consent to the filing of this opinion as an exhibit to the Registration
Statement.
Sincerely,
/s/ Julie E. Rockmore
Julie E. Rockmore
Counsel
Consent of Independent Auditors
The Board of Directors of Aetna Life Insurance and Annuity Company and
Contractholders of Aetna Variable Annuity Account B:
We consent to the references to our firm under the captions "Condensed Financial
Information" in the prospectus and "Independent Auditors" in the statement of
additional information and to the use of our reports dated February 3, 1999 and
February 26, 1999 incorporated by reference here in this Post-Effective
Amendment No. 8 to Registration Statement (File No. 333-56297) on Form N-4.
/s/ KPMG LLP
Hartford, Connecticut
June 25, 1999
