Exhibit 99-B.4.4
Variable Annuity Contract Certificate (GMC-VA-98(NY))
=================================================================
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 To the Certificate Holder:
Group 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 You may cancel your Account within 10 days by returning it to the
Cancel 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. If the source of the Purchase Payment(s) was
a rollover from a contract issued by Aetna in which the deferred
sales charge was waived or reduced, then the Purchase Payment(s)
will be restored to the predecessor contract.
President Secretary
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Contract Holder Group Annuity Contract No.
SPECIMEN SPECIMEN
--------------------------------------------------------------------------------
Certificate Holder Account No.
SPECIMEN SPECIMEN
SPECIMEN Account Effective Date
SPECIMEN
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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
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Guaranteed There is a minimum guaranteed rate for Purchase Payment(s) held
Rate in the Guaranteed Account. (See Schedule - Accumulation Period.)
--------------------------------------------------------------------------------
Deductions There will be deductions for mortality and expense risk as well
from the as administrative charges. (See Schedule - Accumulation
Separate Period and Schedule - Annuity Period.)
Account
--------------------------------------------------------------------------------
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.)
--------------------------------------------------------------------------------
Assumed If a variable Annuity Payment is chosen, an Assumed Interest Rate
Interest Rate of 5.0% may be elected. If 5.0% is not elected, Aetna will use an
- Applicable Assumed Interest Rate of 3.5%. If the portion of a variable
only in the Annuity Payment for any Subaccount is not to decrease, the
Annuity Period annuity return factor under the Separate Account for that
Subaccount must be: (a) 5.00% on an annual basis which includes
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) 6.50% on an annual basis which includes 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.
This Contract is a legal contract and constitutes the entire legal relationship
between Aetna and the Contract Holder.
READ THIS CERTIFICATE CAREFULLY. The Certificate sets forth, in detail, all of
the rights and obligations of both you and Aetna under the Contract. THEREFORE,
IT IS IMPORTANT THAT YOU READ THIS CERTIFICATE 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>
<CAPTION>
<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>
Schedule - Accumulation Period (continued)
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.
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>
If an Account is established as a rollover from another Aetna
contract, the Surrender Fee for the rollover amount will be
determined according to the effective date of the account under
such predecessor contract.
Minimum Account Value
$15,000 ($1,500 for a qualified plan). Aetna reserves the right to
lower this amount on a nondiscriminatory basis.
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%.
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
chrt:
<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>
Schedule - Accumulation Period (continued)
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.
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>
If an Account is established as a rollover from another Aetna
contract, the Surrender Fee for the rollover amount will be
determined according to the effective date of the account under
such predecessor contract.
Minimum Account Value
$15,000 ($1,500 for a qualified plan). Aetna reserves the right to
lower this amount on a nondiscriminatory basis.
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%.
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 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>
Schedule - Accumulation Period (continued)
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.
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>
If an Account is established as a rollover from another Aetna
contract, the Surrender Fee for the rollover amount will be
determined according to the effective date of the account under
such predecessor contract.
Minimum Account Value
$5,000 ($1,500 for a qualified plan). Aetna reserves the right to lower
this amount on a nondiscriminatory basis.
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%.
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>
Schedule - Accumulation Period (continued)
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.
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>
If an Account is established as a rollover from another Aetna contract,
the Surrender Fee for the rollover amount will be determined according to
the effective date of the account under such predecessor contract.
Minimum Account Value
$5,000 ($1,500 for a qualified plan). Aetna reserves the right to lower
this amount on a nondiscriminatory basis.
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%.
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 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>
Schedule - Accumulation Period (continued)
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.
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>
If an Account is established as a rollover from another Aetna
contract, the Surrender Fee for the rollover amount will be
determined according to the effective date of the account under
such predecessor contract.
Minimum Account Value
$5,000 ($1,500 for a qualified plan). Aetna reserves the right to lower
this amount on a nondiscriminatory basis.
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%.
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.
MC-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>
Schedule - Accumulation Period (continued)
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.
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>
If an Account is established as a rollover from another Aetna contract,
the Surrender Fee for the rollover amount will be determined according to
the effective date of the account under such predecessor contract.
Minimum Account Value
$5,000 ($1,500 for a qualified plan). Aetna reserves the right to lower
this amount on a nondiscriminatory basis.
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%.
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>
Table of Contents
<TABLE>
<CAPTION>
I. DEFINITIONS PAGE
<S> <C> <C>
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 .......................................................................................11
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 ......................................................................................12
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
</TABLE>
GMC-VA-98(NY) Page 6
<PAGE>
<TABLE>
<S> <C> <C>
III. PURCHASE PAYMENT, ACCOUNT VALUE, AND WITHDRAWAL PROVISIONS
3.01 Purchase Payment ........................................................................................14
3.02 Certificate Holder's Account ............................................................................15
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 .........................................................................18
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 ..................................................................................24
5.02 Annuity Payment Choices .................................................................................25
5.03 Terms of Annuity Payout Options .........................................................................25
5.04 Death of Annuitant/Beneficiary ..........................................................................26
5.05 Annuity Units - Separate Account ........................................................................27
5.06 Annuity Unit Value - Separate Account ...................................................................27
5.07 Annuity Net Return Factor(s) - Separate Account .........................................................27
</TABLE>
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:
The contract 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.
1.18 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 Contribution 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).
GMC-VA-98(NY) Page 10
<PAGE>
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.
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.
GMC-VA-98(NY) Page 11
<PAGE>
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.
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>
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.
GMC-VA-98(NY) Page 14
<PAGE>
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.
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).
GMC-VA-98(NY) Page 15
<PAGE>
Full and partial withdrawals and Transfers made within six months after
the date of the Annuitant's death will equal the applicable portion of
the Account Value in the Guaranteed Account plus the positive aggregate
MVA amount, if any, which is the sum of all market value adjusted amounts
resulting from withdrawals. After the six-month period, the withdrawal or
Transfer will be the applicable portion of the Account Value in the
Guaranteed Account without any application of the MVA.
Market value adjusted amounts will be equal to the amount withdrawn
multiplied by the following ratio:
(1 + i) x / 365
-------
(1 + j) x / 365
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.
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:
GMC-VA-98(NY) Page 16
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(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.
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:
GMC-VA-98(NY) Page 17
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(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.
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.
GMC-VA-98(NY) Page 18
<PAGE>
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
(h) As a Purchase Payment for a contract issued by Aetna, that gives
credit for time spent in the predecessor contract in applying the
deferred sales charge.
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.
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.
GMC-VA-98(NY) Page 19
<PAGE>
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.
The adjustment for Purchase payments made will be dollar
for dollar. The adjustment for amounts withdrawn or applied
to an Annuity Payout Option will be proportionate, reducing
the sum of all Purchase Payments made and the highest
Account Value in the same proportion that the Account Value
was reduced on the date of the withdrawal or application to
an Annuity Payout Option.
GMC-VA-98(NY) Page 20
<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 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.
On the Schedule Effective Date, the Step-up Value is the
greater of:
(1) The Account Value; or
GMC-VA-98(NY) Page 21
<PAGE>
(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.
The adjustment for Purchase Payments made will be dollar
for dollar. The adjustment for amounts withdrawn or applied
to an Annuity Payout Option will be proportionate, reducing
the sum of all Purchase Payments made and the highest
Account Value in the same proportion that the Account Value
was reduced on the date of the withdrawal or application to
an Annuity Payout Option.
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.
The adjustment for Purchase payments made will be dollar for
dollar. The adjustment for amounts withdrawn or applied to an
Annuity Payout Option will be proportionate, reducing the sum of
all Purchase Payments made and the highest Account Value in the
same proportion that the Account Value was reduced on the date of
the withdrawal or application to an Annuity Payout Option.
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.
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;
GMC-VA-98(NY) Page 24
<PAGE>
(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.
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.
GMC-VA-98(NY) Page 25
<PAGE>
(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.
(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.
GMC-VA-98(NY) Page 26
<PAGE>
(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.
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 27
<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
---------------------------------------------------------------------------------------
</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
GMC-VA-98(NY) Page 28
<PAGE>
<TABLE>
<CAPTION>
Option 2: Life Income Based on the Life of One Annuitant
-----------------------------------------------------------------------------------------------------------------------------------
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 29
<PAGE>
<TABLE>
<CAPTION>
Option 2: Life Income Based on the Life of One Annuitant
-------------------------------------------------------------------------------------------------------------------
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 30
<PAGE>
<TABLE>
<CAPTION>
Option 2: Life Income Based on the Life of One Annuitant
-------------------------------------------------------------------------------------------------------------------
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 31
<PAGE>
<TABLE>
<CAPTION>
Option 3: Life Income Based on the Lives of Two Annuitants
------------------------------------------------------------------------------------------------------------------------------------
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 32
<PAGE>
<TABLE>
<CAPTION>
Option 3: Life Income Based on the Lives of Two Annuitants
--------------------------------------------------------------------------------------------------------------------------
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 33
<PAGE>
<TABLE>
<CAPTION>
Option 3: Life Income Based on the Lives of Two Annuitants
--------------------------------------------------------------------------------------------------------------------------
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 34
<PAGE>
<TABLE>
<CAPTION>
Option 3: Life Income Based on the Lives of Two Annuitants
------------------------------------------------------------------------------------------------------------------------------------
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 35
<PAGE>
<TABLE>
<CAPTION>
Option 3: Life Income Based on the Lives of Two Annuitants
--------------------------------------------------------------------------------------------------------------------------
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 36
<PAGE>
<TABLE>
<CAPTION>
Option 3: Life Income Based on the Lives of Two Annuitants
--------------------------------------------------------------------------------------------------------------------------
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 37
<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 Certificate
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)
