<PAGE>
SEC File No. 33 - _____
SEC File No. 811 - 02513
As filed with the Securities and Exchange Commission on February
21, 1996
Form N-4
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. __________ [ ]
Post-Effective Amendment No. __________ [ ]
AMENDMENT TO
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
(Check appropriate box or boxes)
Variable Annuity Account C
of Aetna Life Insurance and Annuity Company
(Exact Name of Registrant)
Aetna Life Insurance and Annuity Company
(Name of Depositor)
151 Farmington Avenue, Hartford, Connecticut 06156
(Address of Depositor's Principal Executive Offices and Zip Code)
203-273-7834
(Depositor's Telephone Number, Including Area Code)
Susan E. Bryant, Esq.
151 Farmington Avenue, Hartford, Connecticut 06156
(Name and Address of Agent for Service)
Copies to:
Josephine Cicchetti, Esq.
W. Randolph Thompson, Esq.
Jorden Burt Berenson & Johnson LLP
1025 Thomas Jefferson
Suite 400 East
Washington, D.C. 20007-0805
Pursuant to Rule 24f-2 under the Investment Company Act of 1940,
Registrant has registered an indefinite number of securities
under the Securities Act of 1933. Registrant expects to file a
Rule 24f-2 Notice for the fiscal year ended December 31, 1995 on
or before February 29, 1996.
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Approximate Date of Proposed Public Offering: As soon as
practicable after the effectiveness of this Registration
Statement.
It is proposed that this filing will become effective (check
appropriate box):
___ immediately upon filing pursuant to paragraph (b) of
rule 485.
___ on (date) pursuant to paragraph (b)(1)(v) of rule 485.
___ 60 days after filing pursuant to paragraph (a)(1) of
rule 485.
___ on (date) pursuant to paragraph (a)(1) of rule 485.
___ 75 days after filing pursuant to paragraph (a)(2) of
rule 485.
___ on (date) pursuant to paragraph (a)(2) of rule 485.
If appropriate, check the following box:
___ This post-effective amendment designates a new
effective date for a previously-filed post-effective
amendment.
The Registrant hereby amends this Registration Statement on such
dates as may be necessary to delay its effective date until the
Registrant shall file a further amendment which specifically
states that this Registration Statement shall thereafter become
effective in accordance with Section 8(a) of the Securities Act
of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said
Section 8(a) may determine.
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SUBJECT TO COMPLETION
INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR
AMENDMENT. A REGISTRATION STATEMENT RELATING TO THESE SECURITIES
HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THESE
SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED
PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES EFFECTIVE.
THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE
SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF
THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION
OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION
UNDER THE SECURITIES LAWS OF ANY SUCH STATE.
AETNA LIFE INSURANCE AND ANNUITY COMPANY
151 Farmington Avenue
Annuity Operations
Hartford, Connecticut 06156
Telephone: 1-800-525-4225
VARIABLE ANNUITY ACCOUNT C
Retirement Plus and Voluntary
Tax-Deferred Group Variable Annuity Contracts
for
Section 403(b) Retirement Plans
Section 401(a)/401(k) Defined Contribution Plans
Prospectus Dated: ___________, 1996
This Prospectus describes the Retirement Plus and Voluntary
Contracts which are group deferred variable annuity contracts
(the "Contracts") issued by Aetna Life Insurance and Annuity
Company ("Company"). See "Purchase." The Contracts are designed
to fund plans that provide for retirement income and are
established under the Internal Revenue Code of 1986, as amended
("Code"). Amounts held under a Contract may be entitled to
tax-deferred treatment under certain sections of the Code.
Each Contract allows values to accumulate under variable
investment options or credited interest options, or a combination
of these investment options. They also provide for the payment of
annuity benefits on a variable or fixed basis, or a combination
thereof.
The variable funding options ("Funds") currently available
through the Separate Account under the Contracts described in
this Prospectus are as follows:
- -Aetna Variable Fund
- -Aetna Income Shares
- -Aetna Variable Encore Fund
- -Aetna Investment Advisers Fund, Inc.
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- -Aetna Ascent Variable Portfolio
- -Aetna Crossroads Variable Portfolio
- -Aetna Legacy Variable Portfolio
- -Alger American Growth Portfolio
- -Alger American Small Cap Portfolio
- -Calvert Responsibly Invested Balanced Portfolio
- -Fidelity VIP II Contrafund Portfolio
- -Fidelity VIP Equity-Income Portfolio
- -Fidelity VIP Growth Portfolio
- -Fidelity VIP Overseas Portfolio
- -Franklin Government Securities Trust
- -Janus Aspen Aggressive Growth Portfolio
- -Janus Aspen Balanced Portfolio
- -Janus Aspen Flexible Income Portfolio
- -Janus Aspen Growth Portfolio
- -Janus Aspen Short-Term Bond Portfolio
- -Janus Aspen Worldwide Growth Portfolio
- -Lexington Natural Resources Trust
- -Neuberger & Berman Growth Portfolio
- -Scudder International Portfolio
- -TCI Growth (a Twentieth Century fund)
The availability of the above Funds is subject to applicable
regulatory authorization. Not all Funds are available in all
jurisdictions or under a particular Contract. Please check with
your employer to determine option availability.
The credited interest options available for the accumulation of
values are the Guaranteed Accumulation Account, the Fixed Plus
Account and the Fixed Account. The Guaranteed Accumulation
Account and the Fixed Plus Account are offered only in those
jurisdictions in which they are approved. (See Appendix I and
Appendix II). The Fixed Account is available for accumulation
only in limited circumstances. See Appendix III. Except as
specifically mentioned, this Prospectus describes only the
variable options of the Contracts. Additional information about
the Guaranteed Accumulation Account is also contained in an
accompanying prospectus.
This Prospectus sets forth concisely the information about
Variable Annuity Account C (the "Separate Account") that a
prospective investor should know before investing. Additional
information about the Separate Account is contained in a
Statement of Additional Information ("SAI") dated _______, 1996,
which has been filed with the Securities and Exchange Commission
and is incorporated herein by reference. The Table of Contents
for the SAI is printed in this Prospectus. An SAI may be obtained
without charge by indicating the request on the enrollment form
or on the enclosed prospectus receipt for this Prospectus or by
calling 1-800-525-4225.
THIS PROSPECTUS IS VALID ONLY WHEN ACCOMPANIED BY THE CURRENT
PROSPECTUSES OF THE FUNDS AND THE GUARANTEED ACCUMULATION
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ACCOUNT. ALL PROSPECTUSES SHOULD BE READ AND RETAINED FOR FUTURE
REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
NO PERSON IS AUTHORIZED BY THE COMPANY TO GIVE INFORMATION OR TO
MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS, IN CONNECTION WITH THE OFFERS CONTAINED IN THIS
PROSPECTUS. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN
ANY JURISDICTION IN WHICH SUCH OFFERING MAY NOT LAWFULLY BE MADE.
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TABLE OF CONTENTS
Page
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . 1
PROSPECTUS SUMMARY . . . . . . . . . . . . . . . . . . . . . 5
FEE TABLE . . . . . . . . . . . . . . . . . . . . . . . . . . 7
PERFORMANCE DATA . . . . . . . . . . . . . . . . . . . . . . 16
THE COMPANY . . . . . . . . . . . . . . . . . . . . . . . . . 18
VARIABLE ANNUITY ACCOUNT C . . . . . . . . . . . . . . . . . 18
THE FUNDS . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Fund Investment Advisers . . . . . . . . . . . . . . . . . 23
Mixed and Shared Funding . . . . . . . . . . . . . . . . . 24
Fund Changes . . . . . . . . . . . . . . . . . . . . . . . 25
Fund Limitations . . . . . . . . . . . . . . . . . . . . . 25
PURCHASE
The Contracts . . . . . . . . . . . . . . . . . . . . . . . 25
Eligible Contract Holders . . . . . . . . . . . . . . . . . 26
Purchase By Exchange . . . . . . . . . . . . . . . . . . . 26
Contract Charges and Fees Options . . . . . . . . . . . . . 26
Responsibilities of Contract Holders . . . . . . . . . . . 26
Enrollment of Participants . . . . . . . . . . . . . . . . 26
Contributions . . . . . . . . . . . . . . . . . . . . . . . 27
Contribution Limits For Contracts Used with 403(b) Plans 27
Contribution Limits for Contracts Used with
401(a)/401(k) Plans . . . . . . . . . . . . . . . . . 28
Distribution . . . . . . . . . . . . . . . . . . . . . . . 28
DETERMINING INDIVIDUAL ACCOUNT CURRENT VALUE . . . . . . . . 29
Fund Record Units . . . . . . . . . . . . . . . . . . . . . 29
Net Return Factor . . . . . . . . . . . . . . . . . . . . . 29
Transfer Credits . . . . . . . . . . . . . . . . . . . . . 30
CONTRACT RIGHTS . . . . . . . . . . . . . . . . . . . . . . . 30
Right to Cancel . . . . . . . . . . . . . . . . . . . . . . 30
Rights Under the Contracts . . . . . . . . . . . . . . . . 31
Rights Under the Retirement Plus Contract . . . . . . . 31
Rights Under The Voluntary Contract . . . . . . . . . . 31
Rights to Your Individual Account . . . . . . . . . . . 31
Transfers and Allocation Changes . . . . . . . . . . . . . 32
Withdrawals . . . . . . . . . . . . . . . . . . . . . . . . 32
Withdrawal Restrictions for Contracts Used
with 403(b) Plans . . . . . . . . . . . . . . . . . . . 33
Reinvestment Privilege . . . . . . . . . . . . . . . . . . 34
Contract Loans . . . . . . . . . . . . . . . . . . . . . . 34
CHARGES AND FEES DURING THE ACCUMULATION PERIOD . . . . . . . 35
Annual Maintenance Fee . . . . . . . . . . . . . . . . . . 39
Withdrawal Fee . . . . . . . . . . . . . . . . . . . . . . 39
Mortality and Expense Risk Charges . . . . . . . . . . . . 41
Administrative Expense Charge . . . . . . . . . . . . . . . 41
Fund Expenses . . . . . . . . . . . . . . . . . . . . . . . 41
Premium and Other Taxes . . . . . . . . . . . . . . . . . . 42
CHARGES AND FEES DURING THE ANNUITY PERIOD . . . . . . . . . 42
Mortality and Expense Risk Charges . . . . . . . . . . . . 42
Administrative Expense Charge . . . . . . . . . . . . . . 42
Withdrawal Fee . . . . . . . . . . . . . . . . . . . . . . 42
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TABLE OF CONTENTS
Page
ADDITIONAL WITHDRAWAL OPTIONS . . . . . . . . . . . . . . . . 42
ANNUITY PERIOD . . . . . . . . . . . . . . . . . . . . . . . 43
Annuity Period Elections . . . . . . . . . . . . . . . . . 43
Annuity Options . . . . . . . . . . . . . . . . . . . . . . 45
DEATH BENEFIT . . . . . . . . . . . . . . . . . . . . . . . . 47
Accumulation Period . . . . . . . . . . . . . . . . . . . . 47
Annuity Period . . . . . . . . . . . . . . . . . . . . . . 48
TAX STATUS . . . . . . . . . . . . . . . . . . . . . . . . . 49
Introduction . . . . . . . . . . . . . . . . . . . . . . . 49
Taxation of the Company . . . . . . . . . . . . . . . . . . 50
Tax Status of the Contracts . . . . . . . . . . . . . . . . 51
Contracts Used with 403(b) Plans . . . . . . . . . . . . . 51
Contracts Used With "Qualified" Plans . . . . . . . . . . . 53
Penalty Tax on Certain Distributions . . . . . . . . . . . 54
Other Tax Consequences . . . . . . . . . . . . . . . . . . 55
MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . 56
Voting Rights . . . . . . . . . . . . . . . . . . . . . . . 56
Modification of the Contracts . . . . . . . . . . . . . . . 57
Nonparticipating Contracts . . . . . . . . . . . . . . . . 57
Contract Holder Inquiries . . . . . . . . . . . . . . . . . 57
Telephone Transfers . . . . . . . . . . . . . . . . . . . . 57
Payments . . . . . . . . . . . . . . . . . . . . . . . . . 58
Transfer of Ownership; Assignment . . . . . . . . . . . . . 58
Legal Proceedings . . . . . . . . . . . . . . . . . . . . . 58
Legal Matters . . . . . . . . . . . . . . . . . . . . . . . 58
STATEMENT OF ADDITIONAL INFORMATION -- TABLE OF CONTENTS . . 59
APPENDIX I--Guaranteed Accumulation Account . . . . . . . . . 60
Mortality and Expense Risk Charges . . . . . . . . . . . . 61
Transfers . . . . . . . . . . . . . . . . . . . . . . . . 61
Contract Loans . . . . . . . . . . . . . . . . . . . . . . 61
Reinvestment Privilege . . . . . . . . . . . . . . . . . . 61
APPENDIX II--Fixed Plus Account . . . . . . . . . . . . . . . 62
Fixed Plus Account . . . . . . . . . . . . . . . . . . . . 62
Fixed Plus Account Withdrawals . . . . . . . . . . . . . . 63
Transfers Among Investment Options . . . . . . . . . . . . 64
SWO . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . 65
Transfer Credits . . . . . . . . . . . . . . . . . . . . . 65
APPENDIX III-- Fixed Account . . . . . . . . . . . . . . . . 66
Fixed Account . . . . . . . . . . . . . . . . . . . . . . 66
Mortality and Expense Risk Charges . . . . . . . . . . . . 67
Transfers Among Investment Options . . . . . . . . . . . . 67
Contract Loans . . . . . . . . . . . . . . . . . . . . . . 68
APPENDIX IV - Employee Appointment of Employer as Agent
Under an Annuity Contract . . . . . . . . . . 69
APPENDIX V - Contracts Acquired by Exchange . . . . . . . . 71
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DEFINITIONS
As used in this Prospectus, the following terms have the meanings
shown:
ACCUMULATION PERIOD: The period during which Net Contribution(s)
are applied to an Individual Account.
ADJUSTED CURRENT VALUE: The Current Value of an Individual
Account plus or minus any applicable aggregate GA Account Market
Value Adjustment, if applicable.
AGGREGATE CURRENT VALUE: Current Value of Individual Accounts
under a Contract and other contracts of the same class as the
Contract covering employees of the employer maintaining the Plan.
Where such other contract becomes effective after the date a
Contract became effective, the aggregation will commence in
accordance with the Company's existing administrative practice,
but in no event later than the first day of the next succeeding
anniversary date. Where such other contract is in existence prior
to, or on the date a Contract became effective, the aggregation
will commence on the date the Contract becomes effective.
ANNUITANT: A person on whose life an Annuity payment is based
under a Contract.
ANNUITY: Payments of income:
(a) For the life of one or two persons;
(b) For a stated period; or
(c) For some combination of (a) and (b).
ANNUITY PERIOD: The period during which Annuity payments are
made.
ANNUITY UNIT: A measure of the value attributable to each Fund
selected during the Annuity Period.
BENEFICIARY: The person named to receive any benefits which
remain under a Contract after a Participant's death. Participants
designate a Plan beneficiary for their Individual Accounts.
CODE: Internal Revenue Code of 1986, as amended.
COMPANY: Aetna Life Insurance and Annuity Company, sometimes
referred to as "we" or "us."
CONTRACT(S): Either the Retirement Plus Contract or the Voluntary
Contract offered by this Prospectus or both.
CONTRACT HOLDER: The entity to which a Contract is issued. The
Contract Holder is usually the employer.
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CONTRIBUTION: A payment received at the Company's Home Office and
allocated to a Contract.
CURRENT VALUE: For an Individual Account during the Accumulation
Period, the Current Value is the total of:
(a) The amount, if any, in the Fixed Plus Account, with
interest earned to date; plus
(b) The amount, if any, in the GA Account with interest
earned to date; plus
(c) The amount, if any, in the Fixed Account with interest
earned to date; plus
(d) The value of all Fund Record Units, if any, as of the
most recent Valuation Period; less
(e) Any Maintenance Fee(s) due.
DISTRIBUTOR(S): The registered broker-dealer(s) which have
entered into selling agreements with the Company to offer and
sell the Contracts. The Company may also serve as a Distributor.
EMPLOYEE ACCOUNT: An Individual Account that will be credited
with Participant Contributions, specifically employee salary
reduction contributions.
EMPLOYER ACCOUNT: An Individual Account that will be credited
with the employer Contributions.
ERISA: Employee Retirement Income Security Act of 1974.
FIXED ACCOUNT: An accumulation option with a guaranteed minimum
interest rate which is available for accumulation only in limited
circumstances. See Appendix III.
FIXED PLUS ACCOUNT: An accumulation option with a guaranteed
minimum interest rate. The Company may credit a higher rate which
is not guaranteed.
FUND RECORD UNITS: Units representing the portion of the Net
Contribution(s) applied to each Fund under the Separate Account.
FUNDS: The open-end registered management investment companies or
separate investment portfolio thereof, in which the Separate
Account invests.
GENERAL ACCOUNT: The account holding the assets of the Company,
other than those assets held in the Company's separate
account(s).
GUARANTEED ACCUMULATION ACCOUNT (GA ACCOUNT or the GAA): An
accumulation option where the Company guarantees stipulated
rate(s) of interest for a specified period of time. See Appendix
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I. All General Account assets of the Company are available to
meet the guarantees for the GA Account.
HOME OFFICE: The Company's principal executive offices located at
151 Farmington Avenue, Hartford, Connecticut 06156.
INDIVIDUAL ACCOUNT(s): Account(s) established for each
Participant under each Contract in which he or she may be
participating to keep a record of Current Values and
transactions.
MAINTENANCE FEE: A maintenance fee will be charged for each
Participant under each Contract and will be deducted during the
Accumulation Period from the sum under each Contract of the
Current Value of Participant's Individual Accounts and upon full
surrender of the Participant's Individual Accounts.
MARKET VALUE ADJUSTMENT: An adjustment to the amount withdrawn or
transferred from the Guaranteed Accumulation Account prior to the
end of that Guaranteed Term. The adjustment reflects the change
in the value of the investment due to changes in interest rates
since the date of deposit. See Appendix I and the prospectus for
the Guaranteed Accumulation Account for a discussion of how the
market value adjustment is actually calculated.
NET CONTRIBUTIONS: A Contribution less applicable premium taxes.
PARTICIPANT: An eligible person participating in the Plan
maintained by the Contract Holder, for whom an Individual Account
has been established by the Contract Holder, referred to as
"you."
PLAN(S): The Plan named on the cover of a Contract established
under Code Section 403(b) or Sections 401(a)/401(k).
SEC: Securities and Exchange Commission.
SEPARATE ACCOUNT: Variable Annuity Account C, an account
established by the Company under Section 38a-433 of the
Connecticut General Statutes, that buys and holds shares of the
Fund(s) available under a Contract.
RETIREMENT PLUS CONTRACT: The group deferred variable annuity
contract offered by this Prospectus which allows for employer
Contributions and employee Contributions.
UNDERWRITER: The registered broker-dealer which contracts with
other registered broker-dealers on behalf of the Separate Account
to offer and sell the Contracts.
VALUATION PERIOD: The period as of 4:15 p.m. Eastern time each
day the New York Stock Exchange is open, until 4:15 p.m. Eastern
<PAGE> 3
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time of the next such business day or such other day that any of
the Funds determines its net asset value.
VALUATION RESERVE: A reserve established pursuant to the
insurance laws of Connecticut to measure voting rights during the
Annuity Period and the value of a commutation right available
under the "Payments for a Specified Period" nonlifetime Annuity
option when elected on a variable basis under a Contract.
VARIABLE ANNUITY: An Annuity providing for the accumulation of
values and/or for Annuity payments which vary in dollar amount
with investment results.
VOLUNTARY CONTRACT: The group deferred variable annuity contract
offered by this Prospectus which allows only for employee
Contributions.
WITHDRAWAL FEE: If all or any portion of an Individual Account's
Current Value is withdrawn during the Accumulation Period, a
percentage of the amount withdrawn may be deducted so that the
Company may recover sales and administrative related expenses.
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PROSPECTUS SUMMARY
CONTRACTS OFFERED
The Contracts are group deferred, variable annuity contracts.
Under the Retirement Plus Contract, Contributions may be made by
the Contract Holder (generally, the employer) and the
Participants. Under the Voluntary Contract, Contributions may be
made only by Participants. See "The Contracts," "Contract Rights"
and "Miscellaneous."
The Contracts are being offered in certain markets to fund Plans
that are adopted under Sections 401(a), 401(k) or 403(b) of the
Code. Amounts held under the Plans may be entitled to
tax-deferred treatment under the Code. Under the Plans,
Contributions made under the Plan are forwarded by the Contract
Holder to the Company.
PURCHASE
Each Contract may be purchased by eligible organizations on
behalf of a group made up of their employees. Eligible employees
may participate in a Contract by completing an enrollment form
(and any other required forms) and submitting it to the Company
with an initial Contribution. See "Purchase."
WITHDRAWALS
Each Contract allows withdrawals of all or a portion of your
Individual Account Current Value during the Accumulation Period.
Certain charges and fees may be assessed upon withdrawal from
either Contract. See "Charges and Fees During the Accumulation
Period." Limitations apply to withdrawals from the Fixed Plus
Account. See Appendix II. The Code restricts full and partial
withdrawals in certain circumstances. See "Withdrawal
Restrictions For Contracts Used with 403(b) Plans." Amounts
withdrawn from the GAA may be subject to a Market Value
Adjustment. See Appendix I.
WITHDRAWAL FEE
Amounts withdrawn from either Contract may be subject to a
Withdrawal Fee. The maximum Withdrawal Fee that could be assessed
on a full or partial withdrawal is 8.5% of the total
Contributions made to the Individual Account of a Contract. See
"Charges and Fees During the Accumulation Period -- Withdrawal
Fee."
TAXES AND WITHHOLDING
A 10% federal tax penalty and a 20% withholding for income tax
may be imposed on certain withdrawals. See "Tax Status."
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CONTRACT CHARGES
Certain charges are associated with each Contract; for example,
mortality and expense risk charges, administrative expense
charges and Maintenance Fees. The Funds are also subject to
certain fees and expenses. Contributions may also be subject to
premium taxes. See "Charges and Fees During the Accumulation
Period" for a complete explanation of these charges.
FREE LOOK PERIOD
Contract Holders have the right to cancel their Contract and
Participants have the right to cancel their participation in a
Contract within 10 days (or longer if required by state law).
Unless state law requires otherwise, the Company will return the
full amount of Contributions increased or decreased by the
investment performance of the variable funding options to which
Contributions were deposited.
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FEE TABLE
(Based on year ended December 31, 1994)
THE PURPOSE OF THE FEE TABLE IS TO ASSIST CONTRACT HOLDERS IN
UNDERSTANDING THE VARIOUS COSTS AND EXPENSES THAT MAY BE BORNE,
DIRECTLY OR INDIRECTLY, UNDER EACH CONTRACT. THE COSTS AND
EXPENSES WILL BE BASED UPON THE CHARGES AND FEES OPTION THE
CONTRACT HOLDER SELECTS. THE INFORMATION LISTED REFLECTS THE
CHARGES DUE UNDER EACH CONTRACT AS WELL AS THE FEES AND EXPENSES
DEDUCTED FROM THE FUNDS. ADDITIONAL INFORMATION REGARDING THE
CHARGES AND FEES ASSESSED UNDER EACH CONTRACT CAN BE FOUND UNDER
"CONTRACT CHARGES AND FEES OPTIONS" AND "CHARGES AND FEES DURING
THE ACCUMULATION PERIOD" IN THIS PROSPECTUS. CHARGES AND EXPENSES
SHOWN DO NOT TAKE INTO ACCOUNT PREMIUM TAXES THAT MAY BE
APPLICABLE. FOR MORE INFORMATION REGARDING EXPENSES PAID OUT OF
THE ASSETS OF A PARTICULAR FUND, SEE THE FUND'S PROSPECTUS.
CONTRACT HOLDER TRANSACTION EXPENSES
- -------------------------------------
WITHDRAWAL FEE for withdrawals under each Contract (as a
percentage of amount withdrawn)(1):
NUMBER OF YEARS
INDIVIDUAL ACCOUNT
HAS BEEN ESTABLISHED FEE
--------------------------- ----
Less than 5 5%
5 or more but less than 7 4%
7 or more but less than 9 3%
9 or more but less than 10 2%
10 or more 0%
ANNUAL MAINTENANCE FEE(2)
- -------------------------------
Per Participant Per Contract $20.00
SEPARATE ACCOUNT ANNUAL EXPENSES
- ---------------------------------
(Daily deductions, equal to the percentage shown on an annual
basis, made from amounts allocated to the variable options under
each Contract)
Mortality and Expense Risk Charge(3) 1.25%
Administrative Expense Charge(4) .25%
-----
Total Separate Account Annual Expenses 1.50%
=====
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(1) This sets forth the Withdrawal Fee schedule for 10 years, the
maximum duration of the Withdrawal Fee. The total amount deducted
for the Withdrawal Fee will not exceed 8.5% of the Contributions
made to an Individual Account. See "Contract Charges and Fees
Options" and "Charges and Fees During the Accumulation Period --
Withdrawal Fee" for instances in which the Withdrawal Fee will
only be charged for 5 years or not at all and for a description
of this charge.
(2) This represents the maximum annual Maintenance Fee that will
be deducted under a Contract. See "Contract Charges and Fees
Options" and "Charges and Fees During the Accumulation Period -
Annual Maintenance Fee" for instances in which this fee may be
reduced and for a description of this charge. A Maintenance Fee,
to the extent permitted by state law, is also deducted upon
termination of an Individual Account.
(3) This represents the maximum mortality and expense risk charge
that may be deducted under a Contract. See "Contract Charges and
Fees Options" and "Charges and Fees During the Accumulation
Period -- Mortality and Expense Risk Charges" for instances in
which this fee may be reduced and for a description of this
charge.
(4) This represents the maximum annual administrative expense
charge that will be deducted under a Contract. See "Contract
Charges and Fees Options" and "Charges and Fees During the
Accumulation Period -- Administrative Expense Charge" for
instances in which this fee may be reduced and for a description
of this charge.
<PAGE> 8
<PAGE>
MUTUAL FUND ANNUAL EXPENSES
- ----------------------------
(Except as noted, the following figures are a percentage of
average net assets and, except where otherwise indicated, are
based on figures for the year ended December 31, 1994)
<TABLE>
<CAPTION>
Investment
Advisory Other Total
Fees(1) Expenses(2) Mutual
(after (after Fund
expense expense Annual
reimbursement) reimbursement) Expenses
-------------- -------------- --------
<S> <C> <C> <C>
Aetna Variable Fund 0.25% 0.05% 0.30%
Aetna Income Shares 0.25% 0.08% 0.33%
Aetna Variable Encore Fund 0.25% 0.07% 0.32%
Aetna Investment Advisers
Fund, Inc. 0.25% 0.07% 0.32%
Aetna Ascent Variable
Portfolio(3) 0.50% 0.20% 0.70%
Aetna Crossroads Variable
Portfolio(3) 0.50% 0.20% 0.70%
Aetna Legacy Variable
Portfolio(3) 0.50% 0.20% 0.70%
Alger American Growth
Portfolio 0.75% 0.11% 0.86%
Alger American Small Cap
Portfolio 0.85% 0.11% 0.96%
Calvert Responsibly
Invested Balanced
Portfolio 0.70% 0.10% 0.80%
Fidelity VIP II Contrafund
Portfolio(3) 0.62% 0.27% 0.89%
Fidelity VIP Equity-Income
Portfolio(4) 0.52% 0.06% 0.58%
Fidelity VIP Growth
Portfolio(4) 0.62% 0.07% 0.69%
Fidelity VIP Overseas
Portfolio 0.77% 0.15% 0.92%
Franklin Government
Securities Trust(5) 0.47% 0.16% 0.63%
Janus Aspen Aggressive
Growth Portfolio(6) 0.77% 0.28% 1.05%
Janus Aspen Balanced
Portfolio(6) 0.83% 0.74% 1.57%
Janus Aspen Flexible
Income Portfolio(6) 0.30% 0.70% 1.00%
<PAGE> 9
<PAGE>
Janus Aspen Growth
Portfolio(6) 0.66% 0.22% 0.88%
Janus Aspen Short-Term
Bond Portfolio(6) 0.00% 0.65% 0.65%
Janus Aspen Worldwide
Growth Portfolio(6) 0.69% 0.49% 1.18%
Lexington Natural
Resources Trust(7) 1.00% 0.55% 1.55%
Neuberger & Berman
Growth Portfolio(8) 0.79% 0.12% 0.91%
Scudder International
Portfolio 0.88% 0.20% 1.08%
TCI Growth(9) 1.00% 0.00% 1.00%
</TABLE>
---------
(1) Certain of the unaffiliated Fund advisers reimburse the
Company for administrative costs incurred in connection with
administering the Funds as variable funding options under the
Contract. These reimbursements are paid out of the investment
advisory fees and are not charged to investors.
(2) A Fund's "Other Expenses" include operating costs of the
Fund. The deduction of the above expenses are reflected in the
Fund's net asset value and are not deducted from an Individual
Account Current Value under the Contract.
(3) These Funds have only limited operating history; therefore
the expenses are estimated for the current fiscal year.
(4) A portion of the brokerage commissions the Fund paid was
used to reduce its expenses. Without this reduction, total
operating expenses would have been 0.60% for the Equity-Income
Portfolio and 0.70 % for the Growth Portfolio.
(5) The investment adviser for the Franklin Government Securities
Trust has agreed to reduce the investment advisory fee and to
reimburse the Fund for certain expenses. Without this agreement,
the advisory fee would have been 0.63% and total annual expenses
for the Franklin Government Securities Trust would have been
0.78%.
(6) The expense figures shown are net of certain expense waivers
from Janus Capital Corporation. Without such waivers, the
Investment Advisory Fees, Other Expenses and Total Mutual Fund
Annual Expenses for the Portfolios for the fiscal year ended
December 31, 1994, would have been: 1.00%, 0.28% and 1.28%,
respectively, for Janus Aspen Aggressive Growth Portfolio; 1.00%,
0.74% and 1.74%, respectively, for Janus Aspen Balanced
Portfolio; 0.65%, 0.70% and 1.35%, respectively, for Janus Aspen
Flexible Income Portfolio; 1.00%, 0.22% and 1.22%, respectively,
for Janus Aspen Growth Portfolio; 0.65%, 0.75% and 1.40%,
respectively, for Janus Aspen Short- Term Bond Portfolio; and
1.00%, 0.49% and 1.49%, respectively, for Janus Aspen Worldwide
Growth Portfolio.
<PAGE> 10
<PAGE>
(7) These fees as a percentage of assets are higher than those
for other similar funds, although the amounts of the fees are not
due to the limited amount of assets in the Fund.
(8) Until May 1, 1995, the Portfolio had a Distribution Plan
pursuant to Rule 12b-1 which provided for the reimbursement by
Neuberger & Berman Management of certain distribution expenses,
up to a maximum of 0.25% on an annual basis of the Portfolio's
average daily net assets. The "Total Annual Expenses" shown above
would have been increased by 0.02% for each portfolio if the
12b-1 fees for the months of January through April, 1995 were
taken into account.
(9) The Portfolio's investment adviser pays all expenses of the
Portfolio except brokerage commissions, taxes, interest, fees and
expenses of the non-interested directors (including counsel fees)
and extraordinary expenses.
HYPOTHETICAL ILLUSTRATION (EXAMPLE)
- -----------------------------------
THIS EXAMPLE IS PURELY HYPOTHETICAL. IT SHOULD NOT BE CONSIDERED
A REPRESENTATION OF PAST OR FUTURE EXPENSES OR EXPECTED RETURN.
ACTUAL EXPENSES AND/OR RETURN MAY BE MORE OR LESS THAN THOSE
SHOWN BELOW.
Assuming a 5% annual return on assets, you would have paid the
following expenses on a $1,000 investment:(1)
If you withdraw your entire Individual Account Current Value at
the end of the applicable time period:
1 year 3 years
Aetna Variable Fund $71 $114
Aetna Income Shares $71 $115
Aetna Variable Encore
Fund $71 $115
Aetna Investment
Advisers Fund, Inc. $71 $115
Aetna Ascent Variable
Portfolio $75 $126
Aetna Crossroads
Variable Portfolio $75 $126
Aetna Legacy Variable
Portfolio $75 $126
Alger American Growth
Portfolio $76 $130
Alger American Small
Cap Portfolio $77 $133
Calvert Responsibly
Invested Balanced
Portfolio $75 $129
Fidelity VIP II Contrafund
<PAGE> 11
<PAGE>
Portfolio $76 $131
Fidelity VIP Equity-Income
Portfolio $73 $122
Fidelity VIP Growth
Portfolio $74 $125
Fidelity VIP Overseas
Portfolio $77 $132
Franklin Government
Securities Trust $74 $124
Janus Aspen Aggressive
Growth Portfolio $78 $136
Janus Aspen Balanced
Portfolio $83 $150
Janus Aspen Flexible
Income Portfolio $77 $134
Janus Aspen Growth
Portfolio $76 $131
Janus Aspen Short-Term
Bond Portfolio $74 $124
Janus Aspen Worldwide
Growth Portfolio $79 $139
Lexington Natural
Resources Trust $83 $150
Neuberger & Berman
Growth Portfolio $77 $132
Scudder International
Portfolio $78 $136
TCI Growth $77 $134
<PAGE> 12
<PAGE>
<TABLE>
<CAPTION>
If you do not withdraw your entire Individual Account Current
Value or if you annuitize:
1 year 3 years
<S> <C> <C>
Aetna Variable Fund $19 $59
Aetna Income Shares $19 $60
Aetna Variable Encore
Fund $19 $60
Aetna Investment
Advisers Fund, Inc. $19 $60
Aetna Ascent Variable
Portfolio $23 $71
Aetna Crossroads
Variable Portfolio $23 $71
Aetna Legacy Variable
Portfolio $23 $71
Alger American Growth
Portfolio $25 $76
Alger American Small
Cap Portfolio $26 $79
Calvert Responsibly
Invested Balanced
Portfolio $24 $74
Fidelity VIP II Contrafund
Portfolio $25 $77
Fidelity VIP Equity-Income
Portfolio $22 $68
Fidelity VIP Growth
Portfolio $23 $71
Fidelity VIP Overseas
Portfolio $25 $78
Franklin Government
Securities Trust $23 $69
Janus Aspen Aggressive
Growth Portfolio $27 $82
Janus Aspen Balanced
Portfolio $32 $97
Janus Aspen Flexible
Income Portfolio $26 $80
Janus Aspen Growth
Portfolio $25 $77
Janus Aspen Short-Term
Bond Portfolio $23 $70
Janus Aspen Worldwide
Growth Portfolio $28 $86
Lexington Natural
Resources Trust $32 $97
<PAGE> 13
<PAGE>
Neuberger & Berman
Growth Portfolio $25 $78
Scudder International
Portfolio $27 $83
TCI Growth $26 $80
</TABLE>
- ---------
(1) The illustration assumes the Individual Account is subject to
a mortality and expense risk charge of 1.25%, an administrative
expense charge of 0.25%, $15.00 annual Maintenance Fee, as an
annual charge of 0.088% of the estimated assets held in the
Separate Account under the Contracts, and a Withdrawal Fee for 10
years. See "Charges and Fees During the Accumulation Period."
<PAGE> 14
<PAGE>
PERFORMANCE DATA
From time to time, the Company may advertise different types of
historical performance for the variable funding options of the
Separate Account available under the Contracts described in this
Prospectus. The Company may advertise the "standardized average
annual total returns" of the variable funding options, calculated
in a manner prescribed by the SEC, as well as the "non-
standardized return." Both methods are described below. Further
information is contained in the SAI.
"Standardized average annual total returns" are computed
according to a formula in which a hypothetical investment of
$1,000 is applied to the variable funding options under the
Contracts and then related to the ending redeemable values over
the most recent one, five and ten-year periods (or since
inception if less than 10 years). Standardized returns will
reflect the deduction of all recurring charges during each period
(e.g., mortality and expense risk charges, the annual Maintenance
Fee, the administrative expense charge and any applicable
Withdrawal Fee).
"Non-standardized returns" will be calculated in a similar
manner, except that non-standardized figures will not reflect the
deduction of any applicable Withdrawal Fee (which would decrease
the level of performance shown if reflected in these
calculations). The non-standardized figures may also include a
three-year period.
For Funds that were in existence prior to the date that the Fund
became available under the Contracts, the performance data will
show the investment performance that such Fund would have
achieved (reduced by the applicable charges) had it been
available under the Contracts for the period quoted.
We may distribute sales literature that compares the percentage
change in Fund Record Unit values for any of the Funds to
established market indexes such as the Standard & Poor's 500
Stock Index and the Dow Jones Industrial Average or to the
percentage change in values of other management investment
companies that have investment objectives similar to the Fund
being compared.
We may publish in advertisements and reports to you and Contract
Holders, the ratings and other information assigned to us by one
or more independent rating organizations such as A.M. Best
Company, Duff & Phelps, Standard & Poor's Corporation and Moody's
Investors Services, Inc. The purpose of the ratings is to reflect
our financial strength and/or claims-paying ability. We may also
quote ranking services such as Morningstar's Variable
Annuity/Life Performance Report and Lipper's Variable Insurance
Products Performance Analysis Service (VIPPAS), which rank
<PAGE> 15
<PAGE>
variable annuity or life subaccounts or their underlying funds by
performance and/or investment objective. From time to time, we
will quote articles from newspapers and magazines or other
publications or reports, including, but not limited to The Wall
Street Journal, Money magazine, USA Today and The VARDS Report.
The Company may provide in advertising, sales literature,
periodic publications or other materials information on various
topics of interest to current and prospective Contract Holders or
Participants. These topics may include the relationship between
sectors of the economy and the economy as a whole and its effect
on various securities markets, investment strategies and
techniques (such as value investing, market timing, dollar cost
averaging, asset allocation, constant ratio transfer and account
rebalancing), the advantages and disadvantages of investing in
tax-deferred and taxable investments, customer profiles and
hypothetical purchase and investment scenarios, financial
management and tax and retirement planning, and investment
alternatives to certificates of deposit and other financial
instruments, including comparison between the Contracts and the
characteristics of and market for such financial instruments.
<PAGE> 16
<PAGE>
THE COMPANY
Aetna Life Insurance and Annuity Company is a stock life
insurance company organized under the insurance laws of the State
of Connecticut in 1976. Through a merger, it succeeded to the
business of Aetna Variable Annuity Life Insurance Company
(formerly Participating Annuity Life Insurance Company organized
in 1954). As of December 31, 1994, the Company managed over $20.4
billion of assets. As of December 31, 1994, the Company ranked
among the top 2% of all U.S. life insurance companies by size.
The Company is a wholly owned subsidiary of Aetna Retirement
Services, Inc., a wholly-owned subsidiary of Aetna Life and
Casualty Company. The Company is engaged in the business of
issuing life insurance policies and annuity contracts in all
states of the United States. The Company's Home Office is located
at 151 Farmington Avenue, Hartford, Connecticut 06156.
VARIABLE ANNUITY ACCOUNT C
Variable Annuity Account C is a separate account established by
the Company in 1976 pursuant to the insurance laws of the State
of Connecticut. The Separate Account was formed for the purpose
of segregating assets attributable to the variable portions of
the Contracts from other assets of the Company. The Separate
Account is registered as a unit investment trust under the
Investment Company Act of 1940, and meets the definition of
"separate account" under federal securities laws.
Although the Company holds title to the assets of the Separate
Account, such assets are not chargeable with liabilities arising
out of any other business the Company may conduct. Income, gains
or losses of the Separate Account are credited to or charged
against the assets of the Separate Account without regard to
other income, gains or losses of the Company. All obligations
arising under the Contracts are general corporate obligations of
the Company.
THE FUNDS
The Contract Holder will designate some or all of the mutual
funds described below as variable funding options under the
Contracts. Except where noted, all of the Funds are diversified
as defined in the Investment Company Act of 1940. The
availability of the Funds is subject to applicable regulatory
authorization. Not all Funds are available in all jurisdictions
or under a particular Contract.
- - AETNA VARIABLE FUND seeks to maximize total return
through investments in a diversified portfolio of
common stocks and securities convertible into common
stock.
<PAGE> 17
<PAGE>
- - AETNA INCOME SHARES seeks to maximize total return,
consistent with reasonable risk, through investments in
a diversified portfolio consisting primarily of debt
securities.
- - AETNA VARIABLE ENCORE FUND seeks to provide high
current return, consistent with preservation of capital
and liquidity, through investment in high-quality money
market instruments. An investment in the Fund is
neither insured nor guaranteed by the U.S. Government.
- - AETNA INVESTMENT ADVISERS FUND, INC., is a managed
mutual fund which seeks to maximize investment return
consistent with reasonable safety of principal by
investing in one or more of the following asset
classes: stocks, bonds and cash equivalents based on
the Company's judgment of which of those sectors or mix
thereof offers the best investment prospects.
- - AETNA GENERATION PORTFOLIOS, INC.--AETNA ASCENT
VARIABLE PORTFOLIO seeks to provide capital
appreciation by allocating its investments among
equities and fixed income securities. Aetna Ascent
Variable Portfolio is managed for investors who
generally have an investment horizon exceeding 15
years, and who have a high level of risk tolerance. See
the Fund's prospectus for a description of the risks
involved.
- - AETNA GENERATION PORTFOLIOS, INC.--AETNA CROSSROADS
VARIABLE PORTFOLIO seeks to provide total return (i.e.,
income and capital appreciation, both realized and
unrealized) by allocating its investments among
equities and fixed income securities. Aetna Crossroads
Variable Portfolio is managed for investors who
generally have an investment horizon exceeding 10 years
and who have a moderate level of risk tolerance.
- - AETNA GENERATION PORTFOLIOS, INC.--AETNA LEGACY
VARIABLE PORTFOLIO seeks to provide total return
consistent with preservation of capital by allocating
its investments among equities and fixed income
securities. Aetna Legacy Variable Portfolio is managed
for investors who generally have an investment horizon
exceeding five years and who have a low level of risk
tolerance.
- - ALGER AMERICAN FUND--ALGER AMERICAN GROWTH PORTFOLIO
seeks long-term capital appreciation by investing in a
diversified, actively managed portfolio of equity
securities, primarily of companies with total market
capitalization -- present market value per share
<PAGE> 18
<PAGE>
multiplied by the total number of shares outstanding --
of $1 billion or greater. Income is a consideration in
the selection of investments but is not an investment
objective.
- - ALGER AMERICAN FUND--ALGER AMERICAN SMALL
CAPITALIZATION PORTFOLIO ("Alger American Small Cap
Portfolio") seeks capital return through investment in
the common stock of smaller companies offering the
potential for significant price gain. It invests at
least 85% of its net assets in equity securities and at
least 65% of its net assets in equity securities of
companies that, at the time of purchase, have "total
market capitalization" -- present market value per
share multiplied by the total number of shares
outstanding -- of less than $1 billion. Investing in
smaller companies may present risks not present in
investments in larger companies. See the Fund's
prospectus for a discussion of these risks.
- - CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO is a
nondiversified portfolio that seeks growth of capital
through investment in enterprises that make a
significant contribution to society through their
products and services and through the way they do
business. Prior to May 1, 1995, the Fund was known as
the Calvert Socially Responsible Series.
- - FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS FUND
II--CONTRAFUND PORTFOLIO ("Fidelity Contrafund
Portfolio") seeks maximum total return over the long
term by investing its assets mainly in equity
securities of companies that are undervalued or
out-of-favor.
- - FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS
FUND--EQUITY-INCOME PORTFOLIO ("Fidelity Equity-income
Portfolio") seeks reasonable income by investing
primarily in income-producing equity securities. In
choosing these securities, the Fund will also consider
the potential for capital appreciation.
- - FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS
FUND--GROWTH PORTFOLIO ("Fidelity Growth Portfolio")
seeks to achieve capital appreciation by investing
primarily in common stock, although the Fund is not
limited to any one type of security.
- - FIDELITY INVESTMENTS' VARIABLE INSURANCE PRODUCTS
FUND--OVERSEAS PORTFOLIO ("Fidelity Overseas
Portfolio") seeks long-term growth of capital primarily
through investments in foreign securities (at least 85%
<PAGE> 19
<PAGE>
from at least three countries outside of North
America). International investments such as these
involve greater risks than U.S. investments.
- - FRANKLIN GOVERNMENT SECURITIES TRUST is a
nondiversified portfolio that seeks income through
investments in obligations of the U.S. Government or
its agencies or instrumentalities, primarily GNMA
obligations.
- - JANUS ASPEN SERIES--AGGRESSIVE GROWTH PORTFOLIO ("Janus
Aspen Aggressive Growth Portfolio") is a nondiversified
portfolio that seeks long-term growth of capital by
emphasizing investments in common stocks of companies
with market capitalizations between $1 billion and $5
billion.
- - JANUS ASPEN SERIES--BALANCED PORTFOLIO ("Janus Aspen
Balanced Portfolio") seeks both long-term growth of
capital and current income. The Portfolio is designed
for investors who want to participate in the equity
markets through a more moderate investment than a pure
growth fund. Investments in income-producing securities
are intended to result in a portfolio that provides a
more consistent total return than may be attainable
through investing solely in growth stocks. The
Portfolio is not designed for investors who desire a
consistent level of income.
- - JANUS ASPEN SERIES--GROWTH PORTFOLIO ("Janus Aspen
Growth Portfolio") seeks long-term growth of capital by
investing primarily in a diversified portfolio of
common stocks of a large number of issuers of any size.
The Portfolio generally emphasizes issuers with large
market capitalizations.
- - JANUS ASPEN SERIES--SHORT-TERM BOND PORTFOLIO ("Janus
Aspen Short-Term Bond Portfolio") seeks as high a level
of current income as is consistent with preservation of
capital by investing primarily in short- and
intermediate-term fixed income securities. The
Portfolio will normally maintain a dollar-weighted
average portfolio maturity of less than three years,
but not to exceed five years depending upon its
portfolio manager's opinion of prevailing market,
financial and economic conditions.
- - JANUS ASPEN SERIES--WORLDWIDE GROWTH PORTFOLIO ("Janus
Aspen Worldwide Growth Portfolio") seeks long-term
growth of capital by investing primarily in common
<PAGE> 20
<PAGE>
stocks of companies of foreign and domestic issuers of
any size. The Portfolio normally invests in issuers
from at least five different countries including the
United States. International investments involve risks
not present in U.S. Securities.
- - JANUS ASPEN SERIES--FLEXIBLE INCOME PORTFOLIO ("Janus
Aspen Flexible Income Portfolio") seeks to maximize
total return, consistent with preservation of capital
from a combination of current income and capital
appreciation. Janus Aspen Flexible Income Portfolio
invests in all types of income-producing securities and
may have substantial holdings of debt securities rated
below investment grade ("high yield, high risk
securities") also commonly known as "junk bonds." High
yield, high risk securities involve certain risks. See
the Fund's prospectus for a discussion of these risks.
- - LEXINGTON NATURAL RESOURCES TRUST is a nondiversified
portfolio that seeks long-term growth of capital
through investment primarily in common stocks of
companies that own or develop natural resources and
other basic commodities, or supply goods and services
to such companies. Current income will not be a factor.
The Fund may invest up to 25% of its total assets in
foreign securities. Foreign investing involves risks
that differ from those involved in domestic investing.
See the Fund's prospectus for a discussion of these
risks.
- - NEUBERGER & BERMAN ADVISERS MANAGEMENT TRUST--GROWTH
PORTFOLIO ("Neuberger & Berman Growth Portfolio") seeks
capital growth through investments in common stocks of
companies that the investment adviser believes will
have above-average earnings or otherwise provide
investors with above-average potential for capital
appreciation.
- - SCUDDER VARIABLE LIFE INVESTMENT FUND--INTERNATIONAL
PORTFOLIO ("Scudder International Portfolio") seeks
long-term growth of capital primarily through
diversified holdings of marketable foreign equity
investments. Investing in foreign securities may
involve a greater degree of risk than investing in
domestic securities. See the Fund's prospectus for a
discussion of the risks involved.
- - TCI PORTFOLIOS, INC.--TCI GROWTH (a Twentieth Century
Fund) seeks capital growth by investing in common
stocks (including securities convertible into common
stocks) and other securities that meet certain
fundamental and technical standards of selection and,
<PAGE> 21
<PAGE>
in the opinion of TCI Growth's management, have better
than average potential for appreciation. TCI Growth
tries to stay fully invested in such securities,
regardless of the movement of prices generally. The
Fund may invest in foreign securities. Foreign
investing involves risks that differ from those
involved in domestic investing. See the Fund's
prospectus for a discussion of these risks.
There is no assurance that the Funds will achieve their
investment objectives. Participants bear the full investment risk
of investments in the Funds selected.
Some of the Funds may invest in instruments known as derivatives
as part of their investment strategies, as described in their
respective prospectuses. The use of certain derivatives such as
inverse floaters and principal only debt instruments may involve
higher risk of volatility to a Fund. The use of leverage in
connection with derivatives can also increase risk of losses. See
the prospectus for the Funds for a discussion of the risks
associated with an investment in those funds.
More comprehensive information, including a discussion of
potential risks, is found in the current prospectus for each Fund
which is distributed with and must accompany this Prospectus.
Contract Holders and Participants should read the accompanying
prospectuses carefully before investing. Additional prospectuses
and the Statements of Additional Information for this Prospectus
and each of the Funds can be obtained from the Company's Home
Office at the address and telephone number listed on the cover of
this Prospectus.
FUND INVESTMENT ADVISERS
The following identifies the investment adviser and the
subadviser, if any, for each Fund.
<TABLE>
<CAPTION>
Fund Investment Adviser Subadviser
<S> <C> <C>
Aetna Variable Fund Aetna Life Insurance
and Annuity Company
(ALIAC) --
Aetna Income Shares ALIAC --
Aetna Variable
Encore Fund ALIAC --
<PAGE> 22
<PAGE>
Aetna Investment
Advisers Fund, Inc. ALIAC --
Aetna Ascent Variable
Portfolio ALIAC --
Aetna Crossroads
Variable Portfolio ALIAC --
Aetna Legacy Variable
Portfolio ALIAC --
Alger American Fred Alger
Growth Portfolio Management, Inc. --
Alger American Fred Alger
Small Cap Portfolio Management, Inc. --
Calvert Responsibly Calvert Asset NCM Capital
Invested Balanced Management Management
Portfolio Company, Inc. Group, Inc.
Fidelity Contrafund Fidelity Management
Portfolio & Research Company --
Fidelity Equity-Income Fidelity Management
Portfolio & Research Company --
Fidelity Growth Fidelity Management
Portfolio & Research Company --
Fidelity Overseas Fidelity Management
Portfolio & Research Company --
Janus Aspen Aggressive Janus Capital
Growth Portfolio Corporation --
Janus Aspen Balanced Janus Capital
Portfolio Corporation --
Janus Aspen Flexible Janus Capital
Income Portfolio Corporation --
Janus Aspen Growth Janus Capital
Portfolio Corporation --
Janus Aspen Short-Term Janus Capital
Bond Portfolio Corporation --
Janus Aspen Worldwide Janus Capital
Growth Portfolio Corporation --
<PAGE> 23
<PAGE>
Lexington Natural Lexington Management Market Systems
Resources Trust Corporation Research
Advisors,
Inc.
Neuberger & Berman Neuberger & Berman Neuberger &
Growth Portfolio Management Berman
Incorporated
Scudder International Scudder, Stevens
Portfolio & Clark, Inc. --
TCI Growth Investors Research
Corporation --
</TABLE>
MIXED AND SHARED FUNDING
Shares of the Funds are available to insurance company separate
accounts which fund variable annuity contracts and variable life
insurance policies, including the Contracts described in this
Prospectus. Because Fund shares are offered to separate accounts
of both affiliated and unaffiliated insurance companies, it is
conceivable that, in the future, it may not be advantageous for
variable life insurance separate accounts and variable annuity
separate accounts to invest in these Funds simultaneously, since
the interests of such policyowners or contractholders may differ.
Although neither the Company nor the Funds currently foresee any
such disadvantages either to variable life insurance or to
variable annuity policyowners, each Fund's Board of
Trustees/Directors has agreed to monitor events in order to
identify any material irreconcilable conflicts which may possibly
arise and to determine what action, if any, should be taken in
response thereto. If such a conflict were to occur, one of the
separate accounts might withdraw its investment in a Fund. This
might force that Fund to sell portfolio securities at
disadvantageous prices.
FUND CHANGES
The Company reserves the right, subject to compliance with
appropriate state and federal laws, to change the Fund(s) in
which the Separate Account invests, and/or replace the shares of
any Fund(s) held in the Separate Account with shares of any other
Fund(s).
FUND LIMITATIONS
<PAGE> 24
<PAGE>
The Contract Holder may decide to offer only a select number of
Funds as funding options under its Plan, or may decide to change
which Funds it offers. No more than 18 different choices of
investment options may be made during the Accumulation Period.
See "Transfers and Allocation Changes."
The Company's current policy is to allow only Aetna Variable
Fund, Aetna Income Shares and Aetna Investment Advisers Fund,
Inc. to be used as variable investment options during the Annuity
Period. See "Annuity Period Elections."
PURCHASE
THE CONTRACTS
The Contracts are group deferred, variable annuity contracts.
Under the Retirement Plus Contract, Contributions may be made by
the Contract Holder (generally, the employer) and the
Participants. The Contract Holder, or any person designated by
the Contract Holder, may exercise the rights under the Retirement
Plus Contract. The Contract Holder may, by written direction,
allow Participants to select the investment options for the
Contract Holder Contributions and Participant Contributions.
Under the Voluntary Contract, Contributions may be made only by
Participants. Each Participant may exercise the rights under the
Voluntary Contract with respect to the Participant's Individual
Accounts. See "Contract Rights" and "Miscellaneous."
ELIGIBLE CONTRACT HOLDERS
An organization eligible to establish tax-deferred annuity plans
under Section 403(b) or Sections 401(a)/401(k) of the Code may
acquire either or both of the Contracts for its Plan by filling
out the appropriate master application forms and returning them
to the Company or to a Distributor for delivery to the Company.
Once we approve the application, a group Contract is issued to
the organization as Contract Holder.
PURCHASE BY EXCHANGE
Certain organizations which own contracts issued by the Company
may exchange their existing contract(s) for either or both of the
Contracts. See Appendix V.
CONTRACT CHARGES AND FEES OPTIONS
Your Contract's charges and fees will depend in part upon the
Aggregate Current Value and in part upon choices made by your
Contract Holder. Each Contract offers a Contract Holder the
flexibility to choose a charges and fees structure during the
<PAGE> 25
<PAGE>
Accumulation Period that will best suit the needs of its
Participants. For a description of the Contracts' charges and
fees, see "Charges and Fees During the Accumulation Period."
RESPONSIBILITIES OF CONTRACT HOLDERS
The Contract Holder is responsible for maintaining all
Participant vesting percentages and records, ensuring that the
Plan meets certain nondiscrimination requirements imposed by the
Code, and ensuring employee Contributions do not exceed the
maximum limits imposed by the Code.
If a Contract is used to fund an ERISA Plan, the Contract Holder
must:
(a) provide written certification to the Company of the
satisfaction of applicable requirements for ERISA
tax-deferred annuity plans, and
(b) certify that all distributions are made in
accordance with the terms of the Plan, and, if
applicable, the requirements of the Code.
ENROLLMENT OF PARTICIPANTS
Employees of the Contract Holder may fill out an enrollment form
or forms and return them to the Company or to a Distributor for
delivery to the Company for review, acceptance or rejection. The
Company must accept or reject an application or enrollment form
within two business days of its receipt. If the application or
enrollment form is incomplete, the Company may hold it and any
accompanying Contribution for five days. Contributions may be
held for longer periods only with the consent of the Contract
Holder or Participant, pending acceptance of the application or
enrollment form. If the application or enrollment form is
accepted, a Contract will be issued to the Contract Holder or the
Contribution will be accepted under an existing Contract. Any
Contribution accompanying the application or enrollment form or
received prior to acceptance of the application or enrollment
form, will be initially held in the General Account. Initial
Contributions held for longer than the five business days will be
deposited in the Aetna Variable Encore Fund. Upon acceptance of
the application or enrollment form, any Contributions previously
received, and interest earned from the Aetna Variable Encore
Fund, if any, will be invested pursuant to the allocation
instructions contained in the application or enrollment form. If
the application or enrollment form is rejected, the application
or enrollment form and any Contributions will be returned to the
Contract Holder.
After accepting your application, we will establish one or more
Individual Accounts to track Contributions and transactions. If
<PAGE> 26
<PAGE>
you and your employer make Contributions under a Retirement Plus
Contract, we may establish an Employee Account and an Employer
Account. For any lump sum Contribution under either Contract, we
may establish a separate Individual Account for that
Contribution.
CONTRIBUTIONS
Under a Contract, Contributions may be made on an installment
basis or one or more lump sum Contribution(s) may be made. The
Company reserves the right not to accept any Contribution. Each
Contribution is forwarded to the Company through a Distributor.
Net Contribution(s) may accumulate (a) on a variable basis by
allocation to one or more of the available Funds; (b) on a fixed
basis under the GA Account; (c) on a fixed basis under the Fixed
Plus Account; and (d) in a combination of any of the available
investment options. See Appendix I and Appendix II. The Fixed
Account is available only for Net Contribution(s) previously
allocated to a fixed account under a contract exchanged for a
Contract. See Appendix III. The Net Contribution(s) must be
allocated to the respective options in increments of whole
percentage amounts.
Contribution Limits For Contracts Used with 403(b)
Plans
The Code imposes a maximum limit on annual Contributions which
may be excluded from your gross income. That limit must be
calculated in accordance with Sections 403(b), 415 and 402(g) of
the Code. In addition, Contributions will be excluded from your
gross income only if the 403(b) Plan meets certain Code
nondiscrimination requirements. It is the Contract Holder's
responsibility to determine compliance with these requirements
and other provisions of the Plan. See "Rights Under the
Contracts."
Contribution Limits for Contracts Used with
401(a)/401(k) Plans
The Code imposes a maximum limit on annual Contributions that may
be excluded from a Participant's gross income. Such limit must be
calculated under the Plan by the Contract Holder in accordance
with Sections 402(g) and 415 of the Code. In addition,
Contributions will be excluded from a Participant's gross income
only if the 401(a)/401(k) Plan meets certain nondiscrimination
requirements.
DISTRIBUTION
The Company will serve as Underwriter for the securities sold by
this Prospectus. The Company is registered as a broker-dealer
<PAGE> 27
<PAGE>
with the SEC and is a member of the National Association of
Securities Dealers, Inc. ("NASD"). As Underwriter, the Company
will contract with one or more registered broker-dealers
("Distributors"), including at least one affiliate of the
Company, to offer and sell the Contracts. All persons offering
and selling the Contracts must be registered representatives of
the Distributors and must also be licensed as insurance agents to
sell variable annuity contracts. These registered representatives
may also provide services to Participants in connection with
establishing their Individual Accounts under a Contract.
Persons offering and selling the Contracts may receive
commissions in connection with the sale of a Contract. The sales
commission will range from 1% to 4% of the first year
Contributions. The Company may also pay renewal commissions on
Contributions made after the first year and asset-based service
fees. The average of all payments made by the Company is
estimated to equal approximately 3% of the total Contributions
made over the life of an average Contract. The Company may also
reimburse the Distributor for certain expenses. The name of the
Distributor and the registered representative responsible for
your Individual Account are set forth on your enrollment form.
Commissions and sales related expenses are paid by the Company
and are not deducted from Contributions. See "Charges and Fees
During the Accumulation Period -- Withdrawal Fee."
Occasionally, we may pay commissions and fees to Distributors
which are affiliated or associated with the Contract Holder or
the Participants. We may also enter into agreements with some
entities associated with the Contract Holder or Participants in
which we would agree to pay the association for certain services
in connection with administering the Contracts. In both these
circumstances there may be an understanding that the Distributor
or association would endorse the Company as a provider of the
Contracts. You will be notified if a Contract is subject to these
arrangements.
DETERMINING INDIVIDUAL ACCOUNT CURRENT VALUE
The Current Value of your Individual Account as of the most
recent Valuation Period, is determined by adding the value of any
Fund Record Units attributed to the Fund(s) you have selected to
the value, with interest earned to date, of any amounts invested
in the Fixed Plus Account, the GAA and/or the Fixed Account, less
any Maintenance Fee(s) due.
FUND RECORD UNITS
A Contribution that is directed to one or more of the Funds is
deposited in the Separate Account and credited to your Individual
<PAGE> 28
<PAGE>
Account in the form of Fund Record Units for each Fund selected.
The number of Fund Record Units credited is determined by
dividing the applicable portion of the Contribution by that
Contract's Fund Record Unit value of the appropriate Fund. The
value of Fund Record Units attributable to the Funds will be
affected by the investment performance, expenses and charges of
those Funds. Generally, if the net asset value of the Fund
increases, so does the Fund Record Unit value; however,
performance of the Separate Account is reduced by charges and
fees under a Contract.
The Fund Record Unit value used is that next computed following
the date on which a Contribution is received, unless the
application has not been accepted. In that event, Contributions
will be credited at the Fund Record Unit Value next determined
after acceptance of the application. Shares of the Funds are
purchased by the Separate Account at the net asset value next
determined by the Fund following receipt of Contributions by the
Separate Account.
Fund Record Units are valued separately for each Fund. Therefore,
if you elect to have a Contribution invested in a combination of
Funds, you will have Fund Record Units credited from more than
one source.
NET RETURN FACTOR
The value of a Fund Record Unit for any Valuation Period is
calculated by multiplying the Fund Record Unit value for the
immediately preceding Valuation Period by the net return factor
of the appropriate investment option for the Current Valuation
Period.
The net return factor is calculated separately for each Fund in
which assets of the Separate Account are invested. It is
determined by adding 1.0000000 to the net return rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by the
Separate Account at the end of a Valuation Period;
minus
(b) The value of the shares of the Fund held by the
Separate Account at the start of the Valuation Period;
plus or minus
(c) Taxes (or reserves for taxes) on the Separate
Account (if any);
<PAGE> 29
<PAGE>
(d) Divided by the total value of the Fund Record Units
and Fund Annuity Units of the Separate Account at the
start of the Valuation Period;
(e) Minus a Separate Account charge at an annual
effective rate as shown in a Contract for mortality and
expense risks and profit and a daily administrative
expense charge which will not exceed the amount shown
on Contract Schedule I on an annual basis.
The net return rate may be more or less than zero.
TRANSFER CREDITS
If a Contract Holder is transferring to the Company assets held
by another provider of funding for a Plan, a transfer credit is
applied to the Individual Accounts, subject to certain conditions
(and state approval). This benefit is provided on a
nondiscriminatory basis if your Contract is eligible. In certain
circumstances, a Contract Holder may elect to forego the transfer
credit and the Contract will be subject to lower charges and
fees. See "Charges and Fees During the Accumulation Period -
Option B." The transfer credit will be credited to the Fixed Plus
Account. See Appendix II.
Once transfer credit amounts are applied to the Individual
Accounts, all provisions of the Contract apply. If a transfer
credit is due under a Contract, you will be provided with
additional information specific to the Contract.
CONTRACT RIGHTS
RIGHT TO CANCEL
The Contract Holder may cancel a Contract and you may cancel your
interest in a Contract, no later than ten days after receiving it
(or as otherwise allowed by state law) by returning it, along
with a written notice of cancellation, to us. Within seven days
after we receive the Contract and the written notice at our Home
Office, we will return your Current Value, unless the laws of the
state in which the Contract was issued require that we return
Contributions (if greater than your Current Value). In states
that do not require a return of Contributions, you bear the
entire investment risk for amounts allocated among the variable
funding options during the free look period.
RIGHTS UNDER THE CONTRACTS
Your rights and the Contract Holder's rights are set forth in
each Contract purchased by the Contract Holder. You should
<PAGE> 30
<PAGE>
consult with your employer to determine which Contract your
employer has purchased and you should refer to that Contract to
determine your rights. Benefits payable to you are governed
exclusively by the Plan. The Company is not a party to the Plan.
Rights Under the Retirement Plus Contract
Under the Retirement Plus Contract, the rights rest with the
Contract Holder (generally the employer). The Contract Holder
may, by written direction, allow Participants to select the
investment options for the Employer Account and Employee Account.
The exercise of other rights under the Retirement Plus Contract
must be made by the Contract Holder on your behalf. You have no
rights to direct the Company as to payments under the Contract
unless countersigned by the Contract Holder.
For the Retirement Plus Contract, the Contract Holder and each
Participant must agree in writing to the terms and conditions of
the Contract, to have the Contract Holder make choices under the
Contract, and to be bound by the Contract Holder's direction to
the Company. See Appendix IV.
Rights Under the Voluntary Contract
You may make any choices, subject to the terms of your Plan,
under the Voluntary Contract with respect to your Individual
Accounts.
Rights to your Individual Account
For Contracts used with a 403(b) Plan, you have a nonforfeitable
right to the value of your Contributions pursuant to Code Section
403(b) and the terms of the Plan as interpreted by the Contract
Holder. You have a nonforfeitable right to the value of your
Individual Account to which your employer's Contributions are
credited pursuant to the terms of, and to the extent of your
vested percentage under, the Plan as interpreted by the Contract
Holder.
For Contracts used with a 401(a)/401(k) Plan, your right to
Contributions derived from your Contributions and, with respect
to the Retirement Plus Contract, from your employer's
Contributions, must be nonforfeitable in order for the Plan to
qualify for favorable tax treatment afforded to 401(a)/401(k)
Plans under the Code.
TRANSFERS AND ALLOCATION CHANGES
<PAGE> 31
<PAGE>
Before the Annuity Period, the allocation of future Net
Contributions among the allowable investment options under a
Contract may be changed. There is no limit on the number of these
changes. Each Contract also allows any number of transfers of not
less than $500 among funding options during the calendar year,
without charge. The total number of funding options, however, may
not exceed 18 during the Accumulation Period. Each Fund, the
Fixed Plus Account, the Fixed Account and each guaranteed term of
the GAA, counts as one option, even if amounts are no longer
allocated to that option.
Any transfer involving a Fund will be based on the Fund Record
Unit value next determined after we receive a valid request at
our Home Office.
Transfers from the Fixed Plus Account are limited. See Appendix
I, II and III for more information on transfers from the GAA, the
Fixed Plus Account and the Fixed Account.
WITHDRAWALS
Each Contract allows the withdrawal of all or a portion of an
Individual Account Adjusted Current Value during the Accumulation
Period. To do so, we must receive a properly completed
disbursement form in our Home Office. Disbursement forms are
available from us and our representatives.
Withdrawals may be requested in one of the following four ways:
- - Full Withdrawal from a Contract: The amount paid will
be the sum of the Individual Accounts allocated to the
Funds, the GAA (plus or minus the Market Value
Adjustment), and the Fixed Account, minus any
applicable Withdrawal Fee and Maintenance Fee due plus
one-fifth of the sum of the Individual Accounts
allocated to the Fixed Plus Account*, minus any Fixed
Plus Account withdrawals, transfers or annuitizations
made in the prior 12 months.
- - Full Withdrawal from an Individual Account: The amount
paid will be the Individual Account allocated to the
Funds, the GAA (plus or minus the Market Value
Adjustment), and the Fixed Account, minus any
applicable Withdrawal Fee and Maintenance Fee due plus
one-fifth of the Individual Account allocated to the
Fixed Plus Account*, minus any Fixed Plus Account
withdrawals, transfers, loan or annuitizations made in
the prior 12 months.**
- - Partial Withdrawal (Percentage): The amount paid will
be the percentage of the Individual Account Current
Value requested minus any applicable Withdrawal Fee.**
<PAGE> 32
<PAGE>
However, amounts withdrawn from the Fixed Plus Account
may not exceed 20% minus any Fixed Plus Account ***
withdrawals, transfers or annuitizations in the prior
12 months.
- - Partial Withdrawal (Specific Dollar Amount): The amount
paid will be the dollar amount requested. However, the
amount withdrawn from the Individual Account will equal
the dollar amount requested plus any applicable
Withdrawal Fee.** The amount withdrawn from the Fixed
Plus Account may not exceed 20% minus any Fixed Plus
Account *** withdrawals, transfers or annuitizations in
the prior 12 months.
*The balance of the amount held in the Fixed Plus Account will be
paid in four annual installments. If the withdrawal is due to
death, annuitization, or meets other qualifications, the entire
amount held in the Fixed Plus Account will be paid in one lump
sum (or used to provide Annuity payments) rather than in annual
installments. See Appendix II for more information.
**A 20% income tax may be withheld from amounts paid directly to
you. See "Tax Status -- Contracts Used with Qualified Plans."
***The 20% limit is waived if the partial withdrawal is due to
annuitization or death. See Appendix II for more information.
All amounts paid will be based on Individual Account Current
Values as of the end of the Valuation Period in which the request
is received, in good order in our Home Office. For any partial
withdrawal, unless otherwise requested, partial withdrawals are
satisfied by withdrawing amounts on a pro rata basis from each
investment option in which the Individual Account is invested.
Withdrawal Restrictions For Contracts Used with 403(b)
Plans
Code Section 403(b) imposes restrictions on full or partial
withdrawals from Individual Accounts attributable to: (a)
Contributions made on or after January 1, 1989, under a salary
reduction agreement, and (b) any earnings on the entire 403(b)
Employee Account credited on and after January 1, 1989.
Withdrawals of these amounts are allowed only if: (a) you have
died, (b) you have become disabled, as defined in the Code, (c)
you have attained age 59 1/2, (d) you have separated from
service, or (e) it is otherwise allowed by federal law,
regulations or rulings. Withdrawals are also allowed if you can
prove financial hardship as defined by the IRS, but the
withdrawal is limited to the lesser of Contributions attributable
to Participant salary reduction contributions made on or after
January 1, 1989, or the amount necessary to relieve the hardship.
Even if a withdrawal is permitted under these provisions, a 10%
<PAGE> 33
<PAGE>
federal penalty tax may be assessed on the amount paid to you if
it does not otherwise meet the exceptions to the penalty tax
provisions. See "Tax Status -- Contracts Used with Qualified
Plans." We must receive certification in writing that one of
these conditions has been met before a payment will be made.
The Code permits a full or partial withdrawal of an amount equal
to the Employee Account Value as of December 31, 1988 (the
"grandfathered" amount), subject to the terms of the 403(b) Plan.
Although the Code withdrawal restrictions do not apply to this
amount, a 10% federal penalty tax may be assessed on the amount
paid to you if it does not otherwise meet the exceptions to the
penalty tax provisions. See "Tax Status -- Contracts Used with
403(b) Plans" and "Tax Status -- Contracts used with Qualified
Plans."
We believe that the Code withdrawal restrictions do not apply to
tax-free transfers pursuant to Revenue Ruling 90-24. We further
believe that the withdrawal restrictions will not apply to any
"grandfathered" amount which is transferred pursuant to Revenue
Ruling 90-24 into another 403(b) Contract. Revenue Ruling 90-24
provides that a direct transfer from one 403(b) investment to
another 403(b) investment is not a distribution and is not
taxable if, after the transfer, the transferred amounts continue
to be subject to the same or more stringent distribution
requirements.
REINVESTMENT PRIVILEGE
All or a portion of the proceeds received for the full withdrawal
of an Individual Account may be reinvested within 30 days after
the withdrawal if allowed by law. Any Maintenance Fee and
Withdrawal Fee charged at the time of the withdrawal on the
amount being reinvested will be included in the reinstatement.
Any Maintenance Fee which falls due after the withdrawal and
before the reinstatement will be deducted from the amount
reinstated. Any Market Value Adjustment deducted from GA Account
withdrawals will not be included in the reinstatement. Amounts
will be reinstated among the Fixed Plus Account, the GA Account,
and/or the Fund(s) for the Separate Account in the same
proportion as they were at the time of withdrawal. Any amounts
reinstated to the GA Account will be credited to terms available
during the then-current Deposit Period. The number of Fund Record
Units reinstated will be based on the Fund Record Unit Value(s)
next computed after receipt in good order at the Company's Home
Office of the reinstatement request and the amount to be
reinvested.
CONTRACT LOANS
<PAGE> 34
<PAGE>
During the Accumulation Period, each Contract used with a 403(b)
Plan allows loans from the Individual Account. Under the
Retirement Plus Contract, a loan may be restricted to your
Employee Account unless the Contract Holder has authorized loans
from the value of the Employer Account (check with the Contract
Holder to see if this is available). Loans can only be made from
the Current Value held in the Funds, the Fixed Plus Account
and/or the Fixed Account. See Appendix II and Appendix III. A
loan may be obtained by reviewing and reading the terms of your
loan application, properly completing a loan request form and
submitting it to the Company's Home Office.
CHARGES AND FEES DURING THE ACCUMULATION PERIOD
The amount of the charges and fees that will be assessed under a
Contract will be based upon the charges and fees option selected
by the Contract Holder. See "Contract Charges and Fees Options."
You should consult your employer to determine which charges and
fees option applies to your Individual Accounts.
Based upon its prior experience with similar annuity contracts,
the Company has determined that its costs of administering a
Contract will fluctuate with the amount of the Aggregate Current
Value, the average Contributions per Participant transferred
under a Contract, and whether a Withdrawal Fee is charged. The
charges and fees for the initial Contract year will be based on
the estimated year-end Aggregate Current Value, as determined by
the Company.
A Contract Holder may elect whether a Withdrawal Fee will be
applicable under a Contract, and if so, whether the Withdrawal
Fee will be applicable for a 5-year period or a 10-year period.
When a Withdrawal Fee is not charged, the Company has determined
that more Individual Account transactions occur, and as a result,
in some circumstances the Company imposes a greater
administrative expense charge and Maintenance Fee charge. The 5-
year period and 10-year period Withdrawal Fees are as follows:
<TABLE>
<CAPTION>
Five Year Withdrawal Period
NUMBER OF YEARS
INDIVIDUAL ACCOUNT
HAS BEEN ESTABLISHED FEE
--------------------------- ----
<S> <C>
Less than 1 5%
1 or more but less than 2 4%
2 or more but less than 3 3%
3 or more but less than 4 2%
4 or more but less than 5 1%
<PAGE> 35
<PAGE>
5 or more 0%
</TABLE>
<TABLE>
<CAPTION>
10 - Year Withdrawal Period
NUMBER OF YEARS
INDIVIDUAL ACCOUNT
HAS BEEN ESTABLISHED FEE
--------------------------- ----
<S> <C>
Less than 5 5%
5 or more but less than 7 4%
7 or more but less than 9 3%
9 or more but less than 10 2%
10 or more 0%
</TABLE>
In selecting a charges and fees option, a Contract Holder should
consider the composition and needs of its Participants to
determine which option is most appropriate.
OPTION A
A Contract Holder may select any of the charges and fees
elections under Option A below. Under Option A, a transfer credit
may apply to transfers to the Company of assets not previously
held by the Company. See "Determining Individual Account Current
Value -- Transfer Credits" and Appendix II. If a Contract is
purchased by exchange, then for existing participants of the
exchanged contract, the Option A charges and fees schedule set
forth below with a Withdrawal Fee for 10 years will apply. See
Appendix V. New participants of a Contract purchased by
exchange, will be subject to the charges and fees schedule
selected by the Contract Holder.
<TABLE>
<CAPTION>
Less $500,000 $1,000,001 $5,000,001 Greater
than to to to than
$500,000 1,000,000 5,000,000 15,000,000
$15,000,000
<S> <C> <C> <C> <C> <C>
<PAGE> 36
<PAGE>
WITHDRAWAL
FEE FOR
10 YEARS
Mortality
and Expense
Charge 1.25% 1.15% 1.05% 1.00%
0.95%
Administrative
Expense
Charge 0.25% 0.15% 0.10% 0.05%
0.00%
Maintenance
Fee $15 $15 $0 $0 $0
WITHDRAWAL
FEE FOR
5 YEARS
Mortality
and Expense
Charge 1.25% 1.25% 1.15% 1.10%
1.05%
Administrative
Expense
Charge 0.25% 0.15% 0.10% 0.05%
0.00%
Maintenance
Fee $15 $15 $0 $0 $0
NO WITHDRAWAL
FEE
Mortality
and Expense
Charge 1.25% 1.25% 1.15% 1.10%
1.05%
Administrative
Expense
<PAGE> 37
<PAGE>
Charge 0.25% 0.20% 0.15% 0.10%
0.05%
Maintenance
Fee $20 $20 $10 $10 $10
</TABLE>
<TABLE>
<CAPTION>
OPTION B
Charges and fees elections under Option B are available only if
the Company will hold all assets of the Plans of the Contract
Holder and if the Contract Holder is transferring assets to the
Company in an amount which satisfies the then current rules of
the Company. This option is provided on a nondiscriminatory
basis if your contract is eligible. If a Contract Holder selects
a charges and fees election under Option B, no transfer credit
will apply.
Less $500,000 $1,000,001 $5,000,001 Greater
than to to to than
$500,000 1,000,000 5,000,000 15,000,000
$15,000,000
<S> <C> <C> <C> <C> <C>
WITHDRAWAL
FEE FOR
10 YEARS
Mortality
and Expense
Charge 1.15% 1.05% .95% 0.90%
.85%
Administrative
Expense
Charge 0.25% 0.15% 0.10% 0.05%
0.00%
Maintenance
Fee $15 $15 $10 $5 $0
WITHDRAWAL
FEE FOR
5 YEARS
Mortality
and Expense
<PAGE> 38
<PAGE>
Charge 1.15% 1.15% 1.05% 1.00%
0.95%
Administrative
Expense
Charge 0.25% 0.15% 0.10% 0.05%
0.00%
Maintenance
Fee $15 $15 $10 $5 $0
NO WITHDRAWAL
FEE
Mortality
and Expense
Charge 1.15% 1.15% 1.05% 1.00%
0.95%
Administrative
Expense
Charge 0.25% 0.20% 0.15% 0.10%
0.05%
Maintenance
Fee $20 $20 $10 $10 $10
</TABLE>
The following describes the charges and fees that we may deduct
during the Accumulation Period from the Individual Accounts under
each Contract.
ANNUAL MAINTENANCE FEE
An annual Maintenance Fee is charged for each Participant and is
deducted from the sum of the Current Value of your Individual
Accounts under a Contract. This fee is to reimburse the Company
for some of its administrative expenses relating to the
establishment and maintenance of the Individual Account. Because
the annual Maintenance Fee is based, in part, on the amount of
the Aggregate Current Value, the annual Maintenance Fee may
change from year to year.
The Maintenance Fee is deducted from your Individual Accounts on
the Contract anniversary date (or, if not a Valuation Date, on
the next Valuation Date). Under the Retirement Plus Contract, the
Contract Holder may elect that the entire Maintenance Fee be
deducted from only one Individual Account -- either the Employee
Account or the Employer Account. Alternatively, the Maintenance
Fee may be billed to the employer at or prior to such deduction
<PAGE> 39
<PAGE>
under the Retirement Plus Contract. A Maintenance Fee, to the
extent permitted by state law, is also deducted upon the full
withdrawal of a Participant's Individual Accounts. No Maintenance
Fee is deducted from a separate Individual Account established
for the purpose of a lump sum contribution. We deduct this fee
from each investment option in the same proportion that the
values held under each option have to the total value under the
Individual Account.
WITHDRAWAL FEE
There are no deductions from Contributions for sales commissions
or related expenses. Sales commissions and expenses are advanced
by the Company and recovered out of any Withdrawal Fees or, if
Withdrawal Fees are insufficient, out of its profits from
investment activities, including the mortality and expense risk
charges under a Contract. The total amount deducted for the
Withdrawal Fee will not exceed 8.5% of the Contributions made to
an Individual Account. For sales commissions paid in connection
with the sale of a Contract, see "Contract Purchase --
Distribution." If applicable, the Withdrawal Fee will apply to
withdrawals from the Funds, the GA Account or the Fixed Account.
No Withdrawal Fee will be deducted from the Fixed Plus Account.
There are additional restrictions and deductions on withdrawals.
See "Contract Rights -- Withdrawals."
A Withdrawal Fee is not deducted from any portion of the
Individual Account Current Value under a Contract which is:
(a) withdrawn due to the Participant's separation from
service with the Contract Holder (the Contract Holder
must submit documentation satisfactory to the Company
confirming the Participant is no longer providing
services to the employer);
(b) applied to provide Annuity benefits under a
Contract;
(c) withdrawn on or after the tenth anniversary of the
effective date of the Individual Account if a ten-year
duration for Withdrawal Fees has been elected on or
after the fifth anniversary if a five-year duration has
been elected;
(d) paid due to the death of the Participant before
Annuity payments under a Contract begin;
(e) withdrawn due to the election of any additional
withdrawal option under a Contract (see "Additional
Withdrawal Options");
<PAGE> 40
<PAGE>
(f) withdrawn due to financial hardship, as specified
in the Code;
(g) paid where the Individual Account Value is $3,500
or less and no amount has been withdrawn, taken as a
loan or used to purchase Annuity benefits during the
prior 12 months; or
(h) paid in an amount of up to 10% of the Individual
Account Current Value. This applies only to the first
partial withdrawal in each calendar year. The 10%
amount will be calculated using the Individual Account
Current Value on the date the request is received, in
good order, in the Home Office. This provision is
available to Participants who are between the ages of
59 1/2 and 70 1/2. Any loans outstanding on an
Individual Account are excluded from the Individual
Account Current Value when calculating the 10% amount.
This provision is not applicable to a full withdrawal
of the Individual Account, or to partial withdrawals
due to loan defaults. See "Contract Rights -- Contract
Loans." This provision may not be exercised if SWO is
elected. See "Additional Withdrawal Options."
Although no Withdrawal Fee is deducted in the above instances,
the amount withdrawn may, however, be subject to the 10% federal
penalty tax. See "Tax Status -- Contracts Used with 403(b) Plans"
and "Tax Status -- Contracts Used with Qualified Plans."
MORTALITY AND EXPENSE RISK CHARGES
We make a daily deduction from any portion of an Individual
Account Current Value allocated to the Funds under a Contract for
mortality and expense risks. The mortality risk charge is to
compensate us for the risk we assume when we promise to continue
making payments for the lives of individual Annuitants according
to Annuity rates specified in the tables at the time Annuity
payments begin. The expense risk charge is to compensate us for
the risk that actual expenses for costs incurred under a Contract
will exceed the maximum costs that can be charged under the
Contract. Because it is based, in part, on the amount of the
Aggregate Current Value, the charge for mortality and expense
risks may change from year to year.
Based on our actuarial determination, we do not anticipate that
the Withdrawal Fee will cover all sales and administrative
expenses which we will incur in connection with a Contract. Also,
we do not intend to profit from either the annual Maintenance Fee
or the administrative expense charge, if imposed. We do hope to
profit from the daily deduction for mortality and expense risks.
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Any such profit, as well as any other profit realized by us and
held in the general account (which supports insurance and annuity
obligations), would be available for any proper corporate
purpose, including, but not limited to, payment of sales and
distribution expenses.
ADMINISTRATIVE EXPENSE CHARGE
We deduct a daily charge for administrative expenses from any
portion of an Individual Account Current Value allocated to the
Funds to reimburse the Company for some of the expenses we incur
for administering a Contract. Because it is based, in part, on
the amount of the Aggregate Current Value, the administrative
expense charge may change from year to year.
FUND EXPENSES
Each Fund has an investment adviser. An investment advisory fee,
based on the Fund's average net assets, is deducted from the
assets of each Fund and paid to the investment adviser.
Most expenses incurred in the operations of the Funds are borne
by that Fund. Fund advisers may reimburse the Funds they advise
for some or all of these expenses. For further details of each
Fund's expenses, you and the Contract Holder should read the
accompanying prospectus for each Fund and refer to the Fee Table
in this Prospectus.
PREMIUM AND OTHER TAXES
Several states and municipalities impose a premium tax on
Annuities. Currently such taxes range from 0% to 4%. The Company
reserves the right to deduct premium tax against Contributions or
Current Values at any time, but no earlier than when due under
state law. The Company's current practice is to deduct for
premium taxes at the time of complete withdrawal or
annuitization. In addition to premium tax, the Company reserves
the right to assess a charge for any state or federal taxes due
against a Contract or the Separate Account assets.
CHARGES AND FEES DURING THE ANNUITY PERIOD
This section describes the charges and fees that we may deduct
during the Annuity Period.
MORTALITY AND EXPENSE RISK CHARGES
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During the Annuity Period a daily charge for mortality and
expense risks equal to an annual effective rate of 1.25% may be
deducted from any portion of an Individual Account allocated to
the Funds.
ADMINISTRATIVE EXPENSE CHARGE
During the Annuity Period, a daily charge for administrative
expenses equal to an annual effective rate of up to 0.25% is
deducted from any portion of an Individual Account under a
Contract allocated to the Funds.
WITHDRAWAL FEE
A Withdrawal Fee will apply during the Annuity Period if a non-
lifetime Annuity Option is elected on a variable basis and the
remaining value is withdrawn before 5 years of Annuity payments
have been completed. See "Annuity Period -- Annuity Options."
ADDITIONAL WITHDRAWAL OPTIONS
The Company offers certain withdrawal options under each Contract
that are not considered annuity options ("Additional Withdrawal
Options"). To exercise these options, the Current Value must
meet the minimum dollar amounts and you must satisfy the age
criteria applicable to that option.
The Additional Withdrawal Options currently available under the
Contract include the following:
- SWO - Systematic Withdrawal Option. SWO is a
series of partial withdrawals from your Individual
Account based on a payment method you select. It
is designed for those who want a periodic income
while retaining investment flexibility for amounts
accumulated under a Contract. (This option may
not be elected if you have an outstanding contract
loan).
- ECO - Estate Conservation Option. ECO offers the
same investment flexibility as SWO but is designed
for those who want to receive only the minimum
distribution that the Code requires each year.
Under ECO, the Company calculates the minimum
distribution amount required by law at age 70 1/2
or retirement, if later, for governmental or
church plans, and pays you that amount once a
year. (See "Tax Status.")
Other Additional Withdrawal Options may be added from time to
time. Additional information relating to any of the Additional
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Withdrawal Options may be obtained from your local representative
or from the Company at its Home Office. For Contracts issued in
the state of New York, no Market Value Adjustment will be imposed
on withdrawals from the GA Account for SWO or ECO.
If one of the Additional Withdrawal Options is selected, your
Account will retain all of the rights and flexibility permitted
under the Contract during the Accumulation Period. Your Current
Account Value will continue to be subject to the charges and
deductions described in this Prospectus.
Once elected, an Additional Withdrawal Option, may be revoked at
any time by submitting a written request to our Home Office.
Once an option is revoked, it may not be elected again, nor may
any other Additional Withdrawal Options be elected unless
permitted by the Code. The Company reserves the right to
discontinue the availability of one or all of those Additional
Withdrawal Options at any time, and/or to change the terms of
future elections.
ANNUITY PERIOD
ANNUITY PERIOD ELECTIONS
We must receive in writing the Annuity start date and Annuity
option you have elected (for details, see the Statement of
Additional Information). Until a date and option are elected,
your Individual Accounts will continue in the Accumulation
Period.
We must receive written notice at least 30 days before Annuity
payments begin electing or changing (a) the date on which Annuity
payments are to begin, (b) the Annuity option, (c) whether the
payments are to be made monthly, quarterly, semiannually or
annually, and (d) the investment option(s) used to provide
Annuity payments (i.e., a fixed annuity using the general
account, Aetna Variable Fund, Aetna Income Shares, Aetna
Investment Advisers Fund, Inc., or any combination thereof). No
other variable Funds may currently be used as investment options
during the Annuity Period. Once Annuity Payments begin, the
Annuity Option may not be changed, nor may transfers be made
among funding options.
If Annuity payments are to be made on a variable basis, the first
and subsequent payments will vary depending on the assumed net
investment rate (3 1/2% per annum, unless a 5% annual rate is
elected). Selection of a 5% rate causes a higher first payment,
but Annuity payments will increase thereafter only to the extent
the net investment rate exceeds 5% on an annualized basis.
Annuity payments would decline if the rate were below 5%. Use of
the 3 1/2% assumed rate causes a lower first payment, but
subsequent payments would increase more rapidly or decline more
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slowly as changes occur in the net investment rate. (See the
Statement of Additional Information for details regarding the
selection of a net investment rate.)
No election may be made that would result in a first Annuity
payment of less than $20 or total yearly Annuity payments of less
than $100. If the combined value of the Employer and Employee
Accounts is insufficient to elect an option for the minimum
amount specified, a lump sum payment must be elected.
When payments start, the age of the Annuitant plus the number of
years for which payments are guaranteed must not exceed 95.
Annuity payments may not extend beyond (a) your life, (b) the
joint lives of you and your Plan beneficiary, (c) a period
certain greater than your life expectancy, or (d) a period
certain greater than the joint life expectancies of you and your
Plan beneficiary.
Section 401(a)(9) of the Code has required minimum distribution
rules for 403(b) Plans. Under such rules, generally,
distributions of the Individual Account Current Value
attributable to contributions made on and after January 1, 1987
and any of the earnings on the entire Individual Account after
that date must begin by April 1 of the calendar year following
the year in which you attain age 70 1/2. However, for
governmental and church 403(b) Plans, distributions on these
amounts must begin by April 1 of the calendar year following the
calendar year in which you attain age 70 1/2 or retire, whichever
occurs later. Distributions of the Individual Account Current
Value as of December 31, 1986 must generally begin by age 75. In
addition, distributions must be in a form and amount sufficient
to satisfy the Code requirements.
Section 401(a)(9) of the Code also has required minimum
distribution rules for 401(a)/401(k) Plans. Under such rules,
distribution of the entire Individual Account Current Value must
be made, or must begin no later than April 1 of the calendar year
following the calendar year in which the Participant attains age
70 1/2. However, for Participants in governmental or church
plans, or for Participants who attained age 70 1/2 prior to
January 1, 1988, distribution must be made, or begin by April 1
of the calendar year following the calendar year in which the
Participant attains age 70 1/2 or retires, whichever occurs
later. In addition, distributions must be in a form and amount
sufficient to satisfy the Code requirements.
In determining the amount of benefit payments, the minimum
distribution incidental death benefit rule described in IRS
regulations* must be satisfied. This distribution rule does not
apply to certain 403(b) Plans if Annuity Option 4 is elected and
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your spouse is the second Annuitant. See "Annuity Period --
Annuity Options."
You will be subject to a 50% federal penalty tax on the amount of
distribution required each year that is not distributed under the
Code's minimum distribution rules.
*This rule assures that any death benefits payable under the Plan
are incidental to the primary purpose of the Plan which is to
provide retirement benefits to the Participant. The amount to be
distributed under this rule is determined based on the
Participant's age and tables contained in the IRS regulations.
If you elect a Variable Annuity Option, your Individual Account
will be allocated to the Separate Account and the Company will
make a daily deduction for mortality and expense risks. See
"Charges and Fees During the Accumulation Period - Mortality and
Expense Risk Charges." Therefore, electing the nonlifetime option
on a variable basis will result in a deduction being made even
though the Company assumes no mortality risk. During the
Accumulation Period, the Company will also deduct daily a charge
for administrative expenses. See "Charges and Fees During the
Annuity Period -- Administrative Expense Charge."
ANNUITY OPTIONS
Option 1 -- Payments of Interest on Sum Left with the
Company -- This Option may be used only by the Plan
beneficiary when the Participant dies before the
Company has started paying an Annuity. A portion or all
of the sum paid upon death may be held under this
Option and will be held in the General Account of the
Company at interest. Under this Option, the Company
will:
a) pay a portion or all of the sum held by the
Company; or
b) apply a portion or all of the sum held by the
Company to any Annuity Option below
upon receipt of written direction on a form acceptable
to the Company.
If the Plan beneficiary is the Participant's surviving
spouse, the lump-sum payment may be deferred to a date
not later than when the Participant would have attained
age 70 1/2.
If the Plan beneficiary is not a spouse, the Contract
Holder must tell the Company to pay the full sum within
5 years after the death of the Participant.
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Option 2 -- Payments for a Stated Period of Time -- An
Annuity will be paid for the number of years chosen
(See Contract Schedule II).
If payments for this option are made under a Variable
Annuity, the present value of any remaining payments
may be withdrawn at any time. If a withdrawal is
requested prior to the minimum number of years
specified on Contract Schedule II, it will be subject
to any withdrawal fee, if applicable (See Contract
Schedule I).
Option 3 -- Life Income -- An Annuity will be paid for
the life of the Annuitant. The Company may also
guarantee payments for 60, 120, 180, or 240 months if
so directed by the Contract Holder.
Option 4 -- Life Income based upon the lives of two
Annuitants -- An Annuity will be paid during the lives
of the Annuitant and a second Annuitant. Payments will
continue until both Annuitants have died. When this
option is chosen, a choice of the following must be
made:
a) 100% of the payment to continue after the first
death;
b) 66 2/3% of the payment to continue after the first
death;
c) 50% of the payment to continue after the first
death;
d) Payments for a minimum of 120 months, with 100% of
the payment to continue after the first death; or
e) 100% of the payment to continue at the death of
the second Annuitant and 50% of the payment to
continue at the death of the Annuitant.
In addition to the Annuity options described above, we may make
optional methods of payment available to you and other payees.
Payments under any lifetime Annuity option will be determined
without regard to the sex of the Annuitant(s). Such Annuity
payments will be based solely on the age of the Annuitant(s).
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If a lifetime option is elected without a guaranteed minimum
payment period, it is possible that only one Annuity payment will
be made if the Annuitant under Option 3, or the surviving
Annuitant under Option 4, should die prior to the due date of the
second Annuity payment.
Once lifetime Annuity payments begin, neither the Contract Holder
nor the Annuitant can elect to receive a lump sum settlement.
DEATH BENEFIT
ACCUMULATION PERIOD
A portion or all of any death proceeds may be (a) paid to the
Plan beneficiary in a lump sum; (b) applied to any of the Annuity
Options; (c) subject to applicable provisions of the Code, left
in the variable investment options; (d) if the beneficiary is
your spouse, paid under an Additional Withdrawal Option; or (e)
subject to applicable provisions of the Code, left on deposit in
the Company's general account and the beneficiary may receive
monthly, quarterly, semiannual or annual interest payments at the
interest rate then currently being credited on such deposits. The
balance on deposit can be withdrawn at any time or applied under
any Annuity Option. See "Annuity Period -- Annuity Options." Any
lump sum payment paid during the Accumulation Period or under the
applicable lifetime or nonlifetime Annuity options will normally
be made within seven calendar days after proof of death
acceptable to the Company and a request for payment on a form
acceptable to the Company is received at our Home Office in good
order.
Until the election of method of payment, amounts will remain
invested as they were before the death, and the beneficiary will
assume all nonforfeitable rights under a Contract. The Code
requires that distributions begin within a certain time period.
If the Plan beneficiary is your surviving spouse and the Plan
allows, the Plan beneficiary has until you would have attained
age 70 1/2 to begin Annuity payments, to receive a lump sum
distribution, or to begin receiving distributions under an
Additional Withdrawal Option. If your Plan beneficiary is not
your surviving spouse, either Annuity payments must begin by
December 31 of the year following the year of your death, or the
entire value must be distributed by December 31 of the fifth year
following the year of your death. In no event may payments to any
Plan beneficiary extend beyond the life of the Plan beneficiary
or any period certain greater than the Plan beneficiary's life
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expectancy. Failure to commence distribution within the above
time periods can result in tax penalties.
If a lump sum distribution is elected, the Plan beneficiary will
receive the value of the Individual Account determined as of the
Valuation Period in which proof of death acceptable to us and a
request for payment on a form acceptable to the Company is
received at our Home Office in good order. The distribution is
taxed in the same manner as a full surrender. If an Annuity
Option is elected, the value applied to the Annuity Option is
determined in the same manner, and the proceeds are taxed in the
same manner as the annuity payments. If amounts are left in the
variable investment options, the Individual Account Current Value
will continue to be affected by the investment performance of the
investment option(s) selected. If amounts are left on deposit in
the general account, the principal amount is guaranteed, but
interest payments may vary. In general, regardless of the method
of payment, payments received by your beneficiaries after your
death are taxed in the same manner as if you had received those
payments. (See "Tax Status.")
ANNUITY PERIOD
If an Annuitant dies after Annuity payments have begun, any death
benefit payable will depend upon the terms of a Contract and the
Annuity option selected.
If Annuity option 3 or 4 was elected without a guaranteed minimum
payment period under a Contract, Annuity payments will cease upon
the death of the Annuitant under a Life Annuity or the death of
the surviving Annuitant under (i), (ii), (iii) or (v) of option
4.
Under a Contract, if Annuity option 3 or 4 was elected with a
guaranteed minimum payment period and the death of the second
Annuitant under Annuity option 3 or the surviving Annuitant under
(iv) of Annuity option 4 occurs prior to the end of that period,
we will pay to the person designated by the Contract Holder in a
lump sum (unless otherwise requested) the present value of the
guaranteed Annuity payments remaining. Such value will be
determined as of the Valuation Period in which proof of death
acceptable to us and a request for payment are received at our
Home Office. The value will be reduced by any payments made after
the date of death.
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If Annuity option 3 was elected under a Contract and the
Annuitant dies before all guaranteed payments are made, the value
of any remaining payments may be paid in a lump sum to your Plan
beneficiary and no Withdrawal Fee will be imposed. Such value
will be determined as of the Valuation Period in which proof of
death acceptable to us and a request for payment on a form
acceptable to the Company are received at our Home Office in good
order.
If the Annuitant dies after Annuity payments have begun and if
there is a death benefit payable under the Annuity option
elected, the remaining values must be distributed to your
designated Plan beneficiary at least as rapidly as under the
original method of distribution.
Any lump sum payment paid under the applicable lifetime or
nonlifetime Annuity options will normally be made within seven
calendar days after proof of death, acceptable to us, and a
request for payment are received at our Home Office.
TAX STATUS
INTRODUCTION
The following discussion is a general discussion of federal
income tax considerations relating to a Contract and is not
intended as tax advice. This discussion is not intended to
address the tax consequences resulting from all of the situations
in which a person may be entitled to or may receive a
distribution under the Contracts. Any person concerned about
these tax implications should consult a competent tax adviser
before initiating any transaction.
This discussion is based upon the Company's understanding of the
present federal income tax laws as they are currently interpreted
by the Internal Revenue Service ("IRS"). The tax treatment of
annuities may change by legislation or other means (such as IRS
regulations, revenue rulings, judicial decisions, etc.).
Moreover, it is also possible that any change could be
retroactive (that is, effective prior to the date of the change).
No representation is made as to the likelihood of the
continuation of the present federal income tax laws or of the
current interpretation by the IRS. Moreover, no attempt has been
made to consider any applicable state or other tax laws.
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The Contracts may be purchased and used in connection with
certain retirement arrangements entitled to special income tax
treatment under Sections 403(b) or 401(a) of the Code. The
ultimate effect of federal income taxes on the amounts held under
a Contract, or Annuity Payments, and on the economic benefit to
the Contract Holder, the Annuitant, or the Beneficiary may depend
on the tax status of the individual concerned.
The Company makes no attempt to provide more than general
information about use of either Contract with the various types
of retirement plans. Contract Holders and participants under
retirement plans as well as annuitants and beneficiaries are
cautioned that the rights of any person to any benefits under a
Contract may be subject to the terms and conditions of the plans
themselves, regardless of the terms and conditions of the
Contract issued in connection with such a plan. Some retirement
plans are subject to distribution and other requirements that are
not incorporated in the administration of a Contract. Contract
Holders are responsible for determining that contributions,
distributions and other transactions with respect to a Contract
satisfy applicable law. Purchasers of a Contract for use with any
retirement plan should consult their legal counsel and tax
adviser regarding the suitability of the Contract.
TAXATION OF THE COMPANY
The Company is taxed as a life insurance company under Part I of
Subchapter L of the Code. Since the Separate Account is not an
entity separate from the Company, and its operation forms a part
of the Company, it will not be taxed separately as a "regulated
investment company" under Subchapter M of the Code. Investment
income and realized capital gains are automatically applied to
increase reserves under the Contracts. Under existing federal
income tax law, the Company believes that the Separate Account
investment income and realized net capital gains will not be
taxed to the extent that such income and gains are applied to
increase the reserves under the Contracts.
Accordingly, the Company does not anticipate that it will incur
any federal income tax liability attributable to the Separate
Account and, therefore, the Company does not intend to make
provisions for any such taxes. However, if changes in the federal
tax laws or interpretations thereof result in the Company being
taxed on income or gains attributable to the Separate Account,
then the Company may impose a charge against the Separate Account
(with respect to some or all Contracts) in order to set aside
provisions to pay such taxes.
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TAX STATUS OF THE CONTRACTS
In certain circumstances, owners of variable annuity contracts
may be considered the owners, for federal income tax purposes, of
the assets of the separate accounts used to support their
contracts. In those circumstances, income and gains from the
separate account assets would be includible in the variable
contract owner's gross income. One of the circumstances that has
raised this issue is the number of funding options available
under the Contracts. The Company reserves the right to modify the
Contracts as necessary to attempt to prevent a Contract Holder
from being considered the owner of a pro rata share of the assets
of the Separate Account.
CONTRACTS USED WITH 403(b) PLANS
The Contracts are designed for use with Section 403(b) plans. The
tax rules applicable to participants and beneficiaries in
retirement plans vary according to the type of plan and the terms
and conditions of the plan. Special favorable tax treatment may
be available for certain types of contributions and
distributions. Adverse tax consequences may result from
contributions in excess of specified limits; distributions prior
to age 59 1/2 (subject to certain exceptions); distributions that
do not conform to specified commencement and minimum distribution
rules; aggregate distributions in excess of a specified annual
amount; and in other specified circumstances.
Under Code Section 403(b), payments made by public school systems
and certain tax exempt organizations to purchase annuity
contracts for their employees are excludable from the gross
income of the employee, subject to certain limitations. However,
these payments may be subject to FICA (Social Security) taxes. A
Contract issued as a tax-deferred annuity under Section 403(b)
will be amended as necessary to conform to the requirements of
the Code.
In order to be excludable from your taxable income, your total
annual contributions to Section 403(b) plans cannot exceed either
of two limits set by the Code. The first limit, under Section
415, is generally the lesser of 25 percent of your compensation
or $30,000. This limit applies to all your own contributions,
your employer's contributions under the Plan on your behalf, and,
if you are in control of the employer as defined in the Code,
contributions under certain other retirement plans. The second
limit, which is the exclusion allowance under Section 403(b) of
the Code, is usually calculated according to a formula that takes
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account of your length of employment, any pretax contributions
you and your employer have already made under the Plan, and
pretax contributions to certain other retirement plans. There is
also a third limit that specifically limits your salary reduction
contributions to the Plan to no more than $9,500 annually
(subject to indexing); your own limit may be lower.
Code Section 403(b)(11) restricts the distribution under Code
Section 403(b) annuity contracts of: (1) elective contributions
made in years beginning after December 31, 1988; (2) earnings on
those contributions; and (3) earnings in such years on amounts
held as of the last year beginning before January 1, 1989.
Distribution of those amounts may only occur upon death of the
employee, attainment of age 59 1/2, separation from service,
disability, or financial hardship. In addition, income
attributable to elective contributions may not be distributed in
the case of hardship.
The Code also has required distribution rules for Section 403(b)
plans. Distributions of amounts as of December 31, 1986,
generally must begin by age 75. Distributions attributable to
contributions made on or after January 1, 1987, and any earnings
on the entire Individual Account on or after that date, must
begin by (1) for governmental or church plans, April 1 of the
calendar year following the calendar year in which the
participant attains age 70 1/2 or retires, whichever occurs
later, or (2) for all other plans, April 1 of the calendar year
following the calendar year in which the participant attains age
70 1/2. To comply with these provisions, distributions must be in
a form and amount sufficient to satisfy the minimum distribution
rules and the minimum distribution incidental death benefit rules
specified in IRS regulations. In general, annuity payments may
not extend beyond your life, the joint lives of you and your
beneficiary, a period certain greater than your life expectancy,
or a period certain greater than the joint life expectancies of
you and your beneficiary. If you die after the required minimum
distributions have commenced, distributions to your beneficiary
must be made at least as rapidly as under the method of
distribution in effect at the time of your death.
If you die before the required minimum distributions have
commenced, distribution to your beneficiary generally must either
commence as an annuity within one year or be completed within
five years, subject to certain special rules. If distributions
are taken in excess of the minimum required distribution, the
Company will no longer maintain the grandfathered amount. See
"Contract Rights -- Withdrawals."
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All distributions will be taxed as they are received unless you
made a rollover contribution of the distribution to another
Section 403(b) plan or an individual retirement account ("IRA")
in accordance with the Code, or unless you have made after tax
contributions to the plan, which are not taxed upon distribution.
The Code has specific rules that apply, depending on the type of
distribution received, if after-tax contributions were made.
In general, payments received by your beneficiaries after your
death are taxed in the same manner as if you had received those
payments, except that a limited death benefit exclusion may
apply.
Pension and annuity distributions generally are subject to
withholding for the recipient's federal income tax liability at
rates that vary according to the type of distribution and the
recipient's tax status. Recipients generally are provided the
opportunity to elect not to have tax withheld from distributions.
Certain distributions from Section 403(b) tax-sheltered annuities
are subject to mandatory federal income tax withholding. We will
report to the IRS the taxable portion of all distributions.
CONTRACTS USED WITH "QUALIFIED" PLANS
The Contracts are designed for use with certain types of
retirement plans that qualify for favorable tax treatment under
Section 401(a) of the Code ("Qualified Plans"). Code section
401(a) permits employers to establish various types of retirement
plans for employees, and permits self-employed individuals to
establish retirement plans for themselves and their employees.
These retirement plans may permit the purchase of the Contracts
to accumulate retirement savings under the plans. Adverse tax
consequences to the plan, to the participant or to both may
result if this Contract is assigned or transferred to any
individual as a means to provide benefit payments.
The tax rules applicable to participants and beneficiaries in
retirement plans vary according to the type of plan and the terms
and conditions of the plan. Adverse tax consequences may result
from contributions in excess of specified limits; distributions
prior to age 59 1/2 (subject to certain exceptions);
distributions that do not conform to specified commencement and
minimum distribution rules; aggregate distributions in excess of
a specified annual amount; and in other specified circumstances.
In the case of a withdrawal under a Contract paid to a plan
participant or beneficiary, including withdrawals under the
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Systematic Withdrawal Option or the Estate Conservation Option, a
ratable portion of the amount received is taxable, generally
based on the ratio of the "investment in the contract" to the
individual's total accrued benefit under the retirement plan. The
"investment in the contract" generally equals the amount of any
non-deductible contributions paid by or on behalf of any
individual's total accrued benefit under the retirement plan. The
"investment in the contract" generally equals the amount of any
non-deductible contributions paid by or on behalf of any
individual. For a Contract issued in connection with qualified
plans, the "investment in the contract" can be zero. Special tax
rules may be available for certain distributions from a qualified
plan.
In general, only the portion of the Annuity payment that
represents the amount by which the Account Value exceeds the
"investment in the contract" will be taxed; after the "investment
in the contract" is recovered, the full amount of any additional
Annuity payments is taxable. For Variable Annuity payments, the
taxable portion is generally determined by an equation that
establishes a specific dollar amount of each payment that is not
taxed. The dollar amount is determined by dividing the
"investment in the contract" by the total number of expected
periodic payments. However, the entire distribution will be
taxable once the recipient has recovered the dollar amount of his
or her "investment in the contract." For Fixed Annuity payments,
in general there is no tax on the portion of each payment which
represents the same ratio that the "investment in the contract"
bears to the total expected value of the Annuity payments for the
term of the payments; however, the remainder of each Annuity
payment is taxable. Once the "investment in the contract" has
been fully recovered, the full amount of any additional Annuity
payments is taxable.
Pension distributions generally are subject to withholding for
the recipient's federal income tax liability at rates that vary
according to the type of distribution and the recipient's tax
status. Recipients generally are provided the opportunity to
elect not to have tax withheld from distributions. However,
certain distributions are subject to mandatory federal income tax
withholding.
PENALTY TAX ON CERTAIN DISTRIBUTIONS
The Code generally imposes a 10% penalty tax on the taxable
portion of any distribution from a 403(b) plan or a Qualified
Plan unless (a) made when you have attained age 59 1/2, (b)
attributable to your disability, (c) made to a beneficiary or
<PAGE> 55
<PAGE>
your estate on or after your death, (d) made when you have
attained age 55 and have separated from service with the plan
sponsor, (e) the distribution amount is rolled over into another
Section 403(b) plan or an IRA in accordance with the terms of the
Code, or (f) the distribution amount is annuitized over your life
or life expectancy or the joint lives or life expectancies of you
and your plan beneficiary, provided you have separated from
service with the plan sponsor. In addition, the penalty tax is
abated for the amount of a distribution equal to unreimbursed
medical expenses incurred by you that qualify for deduction as
specified in the Code. The Code may impose other penalty taxes in
other circumstances.
OTHER TAX CONSEQUENCES
As noted above, the foregoing discussion of the federal income
tax consequences is not exhaustive and special rules are provided
with respect to other tax consequences not discussed in this
Prospectus. A competent tax advisor should be consulted for
further information.
<PAGE> 56
<PAGE>
MISCELLANEOUS
VOTING RIGHTS
Each Contract Holder may direct us in the voting of shares at
meetings of shareholders of the appropriate Fund(s). The number
of votes to which each Contract Holder may give direction will be
determined as of the record date.
The number of votes each Contract Holder is entitled to direct
with respect to a particular Fund during the Accumulation Period
is equal to the portion of the sum of all Current Values of a
Contract attributable to that Fund divided by the net asset value
of one share of that Fund. During the Annuity Period, the number
of votes is equal to the Valuation Reserve applicable to the
portion of a Contract attributable to that Fund, divided by the
net asset value of one share of that Fund. In determining the
number of votes, fractional votes will be recognized. Where the
value of a Contract or Valuation Reserve relates to more than one
Fund, the calculation of votes will be performed separately for
each Fund.
Participants and Annuitants have a fully vested (100%) interest
in the value of the Individual Accounts which are credited with
Participant Contributions. Participants and Annuitants also have
a nonforfeitable (vested) right to the value of the Employer
Account pursuant to the terms of, and to the extent of their
vested percentage under the Plan. Therefore, such Participants
and Annuitants may instruct the Contract Holder how to direct us
to cast the votes for the portion of the Current Value or
Valuation Reserve attributable to their Individual Accounts.
Votes attributable to those Participants and Annuitants who do
not instruct the Contract Holder will be cast by us in the same
proportion as votes for which instructions have been received by
the Contract Holder. Votes attributable to Contract Holders who
do not direct us will be cast by us in the same proportion as the
votes for which we have received directions.
Contract Holders, or Participants and Annuitants entitled to
instruct the casting of votes, will receive a notice of each
meeting of shareholders, together with any proxy solicitation
materials, and a statement of the number of votes attributable to
their participation under a Contract and stating the right to
instruct the Contract Holder how such votes shall be cast.
<PAGE> 57
<PAGE>
MODIFICATION OF THE CONTRACTS
Only an authorized officer of the Company may change the terms of
this Contract. The Company reserves the right to modify this
Contract to meet the requirements of applicable state and federal
laws or regulations. The Company will notify the Contract Holder
and Participants in writing of any changes.
The Company may change the tables for determining the amount of
Annuity benefit payments without Contract Holder consent. Such a
change will not become effective earlier than twelve months after
(1) the effective date of the Contract, or (2) the effective date
of a previous change. The Company will notify the Contract Holder
in writing at least thirty (30) days before the effective date of
the change. The change will apply to all current and future
Individual Accounts.
NONPARTICIPATING CONTRACTS
The Contracts are nonparticipating contracts.
CONTRACT HOLDER INQUIRIES
A Contract Holder or a Participant may direct inquiries to a
local representative of the Distributor or may write directly to
us at the address shown on the cover page of this prospectus.
TELEPHONE TRANSFERS
Subject to the Contract Holder's approval, the Participant
automatically has the right to make transfers among Funds by
telephone. We have enacted procedures to prevent abuses of
Individual Account transactions by telephone. The procedures
include requiring the use of a personal identification number
(PIN) to execute transactions. The Participant is responsible for
safeguarding his or her PIN, and for keeping Individual Account
information confidential. If the Company fails to follow its
procedures, it would be liable for any losses to the
Participant's Individual Account resulting from the failure. To
ensure authenticity, we record all calls requesting transfers on
the 800 line. Note: all Individual Account information and
transactions permitted are subject to the terms of the Plan(s).
<PAGE> 58
<PAGE>
PAYMENTS
Payments for withdrawal requests (subject to the limitations on
withdrawals from the Fixed Plus Account described in Appendix II)
will be made in accordance with SEC requirements, but normally
not later than seven calendar days after a properly completed
disbursement form is received at our Home Office or within seven
calendar days of the date the withdrawal form may specify.
Payments may be delayed for: (a) any period in which the New York
Stock Exchange ("Exchange") is closed (other than customary
weekend and holiday closings) or in which trading on the Exchange
is restricted; (b) any period in which an emergency exists where
disposal of securities held by the funds is not reasonably
practicable or is not reasonably practicable for the value of the
assets of the Funds to be fairly determined; or (c) such other
periods as the SEC may by order permit for the protection of
Contract Holders and Participants. The conditions under which
restricted trading or an emergency exists shall be determined by
the rules and regulations of the SEC.
TRANSFER OF OWNERSHIP; ASSIGNMENT
Unless contrary to applicable law, assignment of a Contract or an
Individual Account is prohibited.
LEGAL PROCEEDINGS
We know of no material legal proceedings pending to which the
Separate Account is a party, nor which would materially affect
the Separate Account.
LEGAL MATTERS
The validity of the securities offered by this Prospectus has
been passed upon by Susan E. Bryant, Esq., Counsel to the
Company.
<PAGE> 59
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION -- TABLE OF CONTENTS
The following items are the contents of the Statement of
Additional Information:
<TABLE>
<S> <C>
General Information and History . . . . . . . . . . . . . . . B-2
Variable Annuity Account C . . . . . . . . . . . . . . . . . B-3
Offering and Purchase of Contracts . . . . . . . . . . . . . B-5
Performance Data
General . . . . . . . . . . . . . . . . . . . . . . . . . . B-5
Average Annual Total Return Quotations . . . . . . . . . . B-6
Annuity Payments . . . . . . . . . . . . . . . . . . . . . B-12
Sales Material . . . . . . . . . . . . . . . . . . . . . . B-13
Independent Auditors . . . . . . . . . . . . . . . . . . . B-14
Financial Statements of the Separate Account . . . . . . . . S-1
Financial Statements of Aetna Life Insurance and Annuity Company F-1
</TABLE>
<PAGE> 60
<PAGE>
APPENDIX I
GUARANTEED ACCUMULATION ACCOUNT
THE GAA IS A CREDITED INTEREST OPTION AVAILABLE DURING THE
ACCUMULATION PERIOD UNDER THE CONTRACTS. CONTRACT HOLDERS AND
PARTICIPANTS SHOULD READ THE ACCOMPANYING GAA PROSPECTUS
CAREFULLY BEFORE INVESTING. THIS APPENDIX IS A SUMMARY OF THE GAA
AND IS NOT INTENDED TO REPLACE THE GAA PROSPECTUS. AMOUNTS
ALLOCATED TO THE GAA ARE HELD IN A NONINSULATED, NONUNITIZED
SEPARATE ACCOUNT.
The GAA is a credited interest option in which we guarantee
stipulated rates of interest for stated periods of time on
amounts directed to the GAA. The interest rate stipulated is an
annual effective yield; that is, it reflects a full year's
interest. Interest is credited daily at a rate that will provide
the guaranteed annual effective yield over the period of 1 year.
This option guarantees the minimum interest rate specified in a
Contract.
During a specified period of time, amounts may be applied to any
or all available Guaranteed Terms within the Short-Term and
Long-Term Classifications. The Short-Term Classification consists
of all Guaranteed Terms of 3 years or less and the Long-Term
Classification consists of all Guaranteed Terms of 10 years or
less, but greater than 3 years.
Withdrawals or transfers from a Guaranteed Term prior to the end
of that Guaranteed Term may be subject to a Market Value
Adjustment ("MVA"). An MVA reflects the change in the value of
the investment due to changes in interest rates since the date of
deposit. When interest rates increase after the date of deposit,
the value of the investment decreases, and the MVA is negative.
Conversely, when interest rates decrease after the date of
deposit, the value of the investment increases, and the MVA is
positive. It is possible that a negative MVA could result in the
Participant receiving an amount that is less than the amount paid
into the GAA.
As a Guaranteed Term matures assets accumulating under the GAA
may be (a) transferred to a new Guaranteed Term, (b) transferred
to the other available investment options, or (c) withdrawn.
Amounts withdrawn may be subject to a Withdrawal Fee and/or tax
penalties and/or withholding.
<PAGE> 61
<PAGE>
By notifying us at our Home Office at least 30 days before the
Annuity payments begin, you may elect to have amounts which have
been accumulating under the GAA transferred to one or more of the
Funds available during the Annuity Period, to provide Variable
Annuity payments. The GAA cannot be used as an investment option
during the Annuity Period.
MORTALITY AND EXPENSE RISK CHARGES
The Company makes no deductions from the credited interest rate
for mortality and expense risks; these risks are considered in
determining the credited rate.
TRANSFERS
Amounts applied to a Guaranteed Term during a deposit period may
not be transferred to any other funding option or to another
Guaranteed Term during that deposit period or for 90 days after
the close of that deposit period. Transfers are permitted from
Guaranteed Terms of one Classification to available Guaranteed
Terms of another Classification. The Company will apply an MVA to
the GAA transfers made prior to the end of a Guaranteed Term.
Transfers of the GAA values due to a maturity are not subject to
an MVA.
CONTRACT LOANS
Loans may not be made against amounts held in the GAA, although
such value is included in determining the value of the Individual
Account against which a loan may be made.
REINVESTMENT PRIVILEGE
If amounts are withdrawn from the GAA and reinvested they will be
applied to the current deposit period. Amounts are
proportionately reinvested to the Classifications in the same
manner as they were allocated before the withdrawal. Any negative
MVA amount applied to a withdrawal is not included in the
reinvestment.
<PAGE> 62
<PAGE>
APPENDIX II
FIXED PLUS ACCOUNT
THE FIXED PLUS ACCOUNT IS AN INVESTMENT OPTION AVAILABLE DURING
THE ACCUMULATION PERIOD UNDER THE CONTRACTS. THE FOLLOWING
SUMMARIZES MATERIAL INFORMATION CONCERNING THE FIXED PLUS ACCOUNT
THAT IS OFFERED AS AN OPTION UNDER THE CONTRACTS. ADDITIONAL
INFORMATION MAY BY FOUND IN YOUR CERTIFICATE OR CONTRACT. AMOUNTS
ALLOCATED TO THE FIXED PLUS ACCOUNTS ARE HELD IN THE COMPANY'S
GENERAL ACCOUNT THAT SUPPORTS INSURANCE AND ANNUITY OBLIGATIONS.
INTERESTS IN THE FIXED PLUS ACCOUNT HAVE NOT BEEN REGISTERED WITH
THE SEC IN RELIANCE ON EXEMPTIONS UNDER THE SECURITIES ACT OF
1933, AS AMENDED. DISCLOSURE IN THIS PROSPECTUS REGARDING THE
FIXED PLUS ACCOUNT, HOWEVER, MAY BE SUBJECT TO CERTAIN GENERALLY
APPLICABLE PROVISIONS OF THE FEDERAL SECURITIES LAWS RELATING TO
THE ACCURACY AND COMPLETENESS OF THE STATEMENTS. DISCLOSURE IN
THIS APPENDIX REGARDING THE FIXED PLUS ACCOUNT HAS NOT BEEN
REVIEWED BY THE SEC.
FIXED PLUS ACCOUNT
This option guarantees that amounts allocated to this option will
earn the minimum Fixed Plus interest rate specified in a
Contract. We may credit a higher interest rate from time to time.
The Company's determination of interest rates reflects the
investment income earned on invested assets and the amortization
of any capital gains and/or losses realized on the sale of
invested assets. Under this option, we assume the risk of
investment gain or loss by guaranteeing Net Contribution values
and promising a minimum interest rate and Annuity payment.
The Fixed Plus Account will reflect a compound interest rate
credited by us. The interest rate quoted is an annual effective
yield. Amounts applied to the Fixed Plus Account will earn the
Fixed Plus interest rate in effect when actually applied to the
Fixed Plus Account. We make no deductions from the credited
interest rate for mortality and expense risks; these risks are
considered in determining the credited rate.
Beginning on the tenth Individual Account Year, we will credit
amounts held in the Fixed Plus Account with an interest rate that
is at least 0.25% higher than the then-declared interest rate for
the Fixed Plus Accounts for Individual Accounts that have not
reached their tenth anniversary.
<PAGE> 63
<PAGE>
The Company reserves the right to limit Net Contribution(s)
and/or transfers to the Fixed Plus Account.
FIXED PLUS ACCOUNT WITHDRAWALS
The amount eligible for partial withdrawal is 20% of the amount
held in the Fixed Plus Account on the day our Home Office
receives a written request, reduced by any Fixed Plus Account
withdrawals, transfers, loan or annuitizations made in the prior
12 months. In calculating the 20% limit, we reserve the right to
include payments made due to the election of an Additional
Withdrawal Option. The 20% limit is waived if the partial
withdrawal is taken pro rata from each investment option the
Individual Account invests and is due to annuitization or death.
The waiver upon death will only be exercised once and must occur
within 6 months after the Participant's date of death. Any such
surrender or annuitization must be made pro rata from all funding
options.
If a full withdrawal is requested, we will pay any amounts held
in the Fixed Plus Account, with interest, in five annual payments
equal to:
- - One-fifth of the Fixed Plus Account Value on the day
the request is received, reduced by any Fixed Plus
Account withdrawals, loan, transfers or annuitizations
made in the prior 12 months;
- - One-fourth of the then remaining Fixed Plus Account
Value 12 months later;
- - One-third of the then remaining Fixed Plus Account
Value 12 months later;
- - One-half of the then remaining Fixed Plus Account Value
12 months later; and
- - The balance of the Fixed Plus Account Value 12 months
later.
We will waive this payout provision for a Fixed Plus Account full
surrender if a full withdrawal is made due to:
<PAGE> 64
<PAGE>
(a) the Participant's death, before Annuity payments
begin and request for payment is received within 6
months after the Participant's date of death;
(b) the election of an Annuity option;
(c) if the Fixed Plus Account Value is $3,500 or less
and no withdrawals, transfers, loan or annuitizations
have been made from the Account within the prior 12
months.
Once we receive a request for a full withdrawal from an Account,
no further withdrawals or transfers will be permitted from the
Fixed Plus Account. A full withdrawal from the Fixed Plus Account
may be cancelled at any time before the end of the five-payment
period.
TRANSFERS AMONG INVESTMENT OPTIONS
The amount eligible for transfer from the Fixed Plus Account is
20% of the amount held in the Fixed Plus Account on the day our
Home Office receives a written request, reduced by any Fixed Plus
Account withdrawals, transfers, loan or annuitizations made in
the prior 12 months. In calculating the 20% limit, we reserve the
right to include payments made due to the election of an
Additional Withdrawal Option. The 20% limit on transfers will be
waived when the value in the Fixed Plus Account is $1,000 or
less.
By notifying us at our Home Office at least 30 days before
Annuity payments begin, you may elect to have amounts which have
been accumulating under the Fixed Plus Account transferred to one
or more of the Funds available during the Annuity Period to
provide lifetime Variable Annuity payments.
SWO
The Systematic Withdrawal Option may not be elected if you have
requested a Fixed Plus Account transfer or withdrawal within the
prior 12 month period.
<PAGE> 65
<PAGE>
LOANS
Loans may be made from those Individual Account Current Values
held in the Fixed Plus Account. A 5% default charge may be
assessed on amounts loaned from, but not repaid to the Fixed Plus
Account. The default charge will apply to borrowed amounts that
exceed the amount eligible for withdrawal at the time the loan is
made.
TRANSFER CREDITS
The Company provides a transfer credit in certain circumstances.
See "Transfer Credits." The amount of the transfer credit may be
changed in the discretion of the Company, but is currently equal
to 2% of the assets transferred to the Company under a Contract
that remain in the Individual Accounts as of the one year
anniversary of a participant's first Net Contributions under the
Contract, plus the interest that would have been credited had
that amount been deposited in the Fixed Plus Account on the first
business day of the calendar month following its calculation.
The transfer credit is applied to the Current Value held in the
Fixed Plus Account.
<PAGE> 66
<PAGE>
APPENDIX III
FIXED ACCOUNT
THE FIXED ACCOUNT IS AN INVESTMENT OPTION AVAILABLE ONLY FOR
AMOUNTS PREVIOUSLY ALLOCATED TO A FIXED ACCOUNT UNDER CONTRACTS
THAT ARE EXCHANGED INTO ONE OR MORE OF THE CONTRACTS. SEE
APPENDIX V. NO NEW CONTRIBUTIONS OR TRANSFERS TO THE FIXED
ACCOUNT WILL BE ALLOWED.
THE FOLLOWING SUMMARIZES MATERIAL INFORMATION CONCERNING THE
FIXED ACCOUNT. ADDITIONAL INFORMATION MAY BE FOUND IN YOUR
CERTIFICATE OR CONTRACT. AMOUNTS ALLOCATED TO THE FIXED ACCOUNT
ARE HELD IN THE COMPANY'S GENERAL ACCOUNT. INTERESTS IN THE FIXED
ACCOUNT HAVE NOT BEEN REGISTERED WITH THE SEC IN RELIANCE ON
EXEMPTIONS UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
DISCLOSURE IN THIS PROSPECTUS REGARDING THE FIXED ACCOUNT,
HOWEVER, MAY BE SUBJECT TO CERTAIN GENERALLY APPLICABLE
PROVISIONS OF THE FEDERAL SECURITIES LAWS RELATING TO THE
ACCURACY AND COMPLETENESS OF THE STATEMENTS. DISCLOSURE IN THIS
APPENDIX REGARDING THE FIXED ACCOUNT HAS NOT BEEN REVIEWED BY THE
SEC.
FIXED ACCOUNT
This option guarantees that amounts allocated to this option will
earn the minimum interest rate specified in the Contract. (This
minimum interest rate cannot be changed by the Company.) We may
credit a higher interest rate from time to time. The Company's
determination of interest rates reflects the investment income
earned on invested assets and the amortization of any capital
gains and/or losses realized on the sale of invested assets.
Under this option, we assume the risk of investment gain or loss
by guaranteeing Net Purchase Payment values and promising a
minimum interest rate and Annuity payment.
Under certain emergency conditions, we may defer payment of a
Fixed Account withdrawal value (a) for a period of up to 6 months
or (b) as provided by federal law.
In addition, if allowed by state law, we may pay any Fixed
Account withdrawal value in equal payments, with interest, over a
period not to exceed 60 months, when:
<PAGE> 67
<PAGE>
(a) the Fixed Account withdrawal value for the Contract or for
the total of the Accounts under the Contract exceeds $250,000 on
the day prior to the withdrawal; and
(b) the sum of the current Fixed Account withdrawal and the
total of all Fixed Account withdrawals from the Contract or any
Account under the Contract within the past 12 calendar months
exceeds 20% of the amount in the Fixed Account on the day prior
to the current withdrawal.
Interest, as used above, will not be more than two percentage
points below any rate determined prospectively by the Board of
Directors for this class of Contract. In no event will the
interest rate be less than the minimum stated in the Contract.
Amounts applied to the Fixed Account will earn the interest rate
in and the restrictions of Section 403(b), I have ownership in
the value of my Employer Account.
- - I understand that the Company will process transactions
only with my employer's written direction to the
Company. I agree to be bound by my employer's
interpretation of the Plan provisions and its written
direction to the Company.
- - My employer may permit me to make investment selections
under the Employee Account and/or the Employer Account
directly with the Company under the terms of the
Contract. Without my employer's written permission, I
will be unable to make any investment selections under
the Contract.
- - On my behalf, my employer may request a loan in
accordance with the terms of the Contract and the
provisions of the Plan. The Company will make payment
of the loan amount directly to me. I will be
responsible for making repayments directly to the
Company in a timely manner.
- - In the event of my death, my employer is the named
beneficiary under the terms of the Contract. I have the
right to name a personal beneficiary as determined
under the terms of the Plan and file that beneficiary
election with my employer. It is my employer's
<PAGE> 68
<PAGE>
responsibility to direct the Company to properly pay
any death benefits.
<PAGE> 69
<PAGE>
APPENDIX V
CONTRACTS ACQUIRED BY EXCHANGE
Certain holders of contracts issued by the Company may exchange
their contract(s) (the "Exchanged Contracts") for either or both
of the Contracts (the "Acquired Contract(s)"). The contracts
eligible for exchange are existing group taxed-deferred annuity
contracts issued by the Company of the same class as the
Contracts. The Company will not assess any charges or deductions
in connection with an exchange. See "Deferred Sales Charges"
below. Upon an exchange, the rights of the Exchanged Contract
holder and participants under the Exchanged Contract will be
governed by the Acquired Contract(s).
Differences between Exchanged Contracts and Acquired Contracts
The terms of the Acquired Contracts vary from the Exchanged
Contracts and it may or may not be advantageous to make an
exchange. Contract Holders and Participants should review the
Acquired Contract and an Exchanged Contract to determine all the
differences. Some differences relate to the minimum guaranteed
interest rates for the GAA, Fixed Plus Account and the Fixed
Account, the availability of the Fixed Account (see Appendix
III), the annuity options, and the tables on which Annuity
payments are based.
Special Acquired Contracts Provisions
Except as follows terms of the Acquired Contracts are identical
to the Contracts described in the Prospectus:
Transfer Credit
If a new participant under an Acquired Contract transfers to the
Company assets not previously held by the Company, the new
participant may receive a transfer credit. Participants of an
Exchanged Contract in effect for less than one year who
transferred assets not previously held by the Company may also
receive a transfer credit. See "Transfer Credit."
<PAGE> 70
<PAGE>
Deferred Sales Charge
Under the Acquired Contract, new participants of the Acquired
Contract will be subject to the Withdrawal Fee elected by the
Contract Holder. See "Charges and Fees During the Annuity
Period." The Withdrawal Fee for existing participants of an
Exchanged Contract, however, will be subject to the deferred
sales charges outlined below and as previously set forth in their
Exchanged Contract. In general, deferred sales charges may be
deducted from amounts withdrawn during the first 10 Purchase
Payment Periods completed (if the Exchanged Contract is an
Installment Purchase Payment Contract) or 9 Account Years (if the
Exchanged Contract is a Single Purchase Payment Contract), as set
forth in the table below. Consult the Exchanged Contract to
determine whether it is an Installment Payment Contract or Single
Purchase Payment Contract. For purposes of determining if a
deferred sales charge applies under an Acquired Contract, amounts
received under an Exchanged Contract will be credited for the
period of time during which the amount was held under an
Exchanged Contract.
The following tables reflect the deferred sales charge deduction
as a percentage of the amount withdrawn from the Funds, GAA and
the Fixed Account:
<TABLE>
<CAPTION>
Installment Purchase Payment Account:
Purchase Payment Deferred Sales
Periods Completed Charge
Deduction
- ----------------- ---------------
<S> <C>
Less than 5 5%
5 or more but less than 7 4%
7 or more but less than 9 3%
9 or 10 2%
More than 10 0%
<PAGE> 71
<PAGE>
</TABLE>
<TABLE>
<CAPTION>
Single Purchase Payment Account:
Account Years Deferred Sales
Completed Charge
Deduction
- ------------ ---------------
<S> <C>
Less than 5 5%
5 or more but less than 6 4%
6 or more but less than 7 3%
7 or more but less than 8 2%
8 or more but less than 9 1%
9 or more 0%
</TABLE>
The deduction for the deferred sales charge will not exceed 8.5%
of the total Purchase Payments actually made to an Individual
Account.
The deferred sales charge will apply to withdrawals during the
Accumulation Period. It will apply during the Annuity Period if
a non-lifetime Annuity option is elected on a variable basis and
the remaining value is withdrawn before five years of Annuity
payments have been completed.
<PAGE> 72
<PAGE>
SUBJECT TO COMPLETION
INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR
AMENDMENT. A REGISTRATION STATEMENT RELATING TO THESE SECURITIES
HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.
THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE
ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES
EFFECTIVE. THIS PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL
OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY
SALE OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER,
SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR
QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.
VARIABLE ANNUITY ACCOUNT C
OF
AETNA LIFE INSURANCE AND ANNUITY COMPANY
Statement of Additional Information dated ___________, 1996
This Statement of Additional Information is not a prospectus and
should be read in conjunction with the current prospectus dated
[], 1996 which describes the Retirement Plus Contract and
Voluntary Contract and Voluntary Contract funded through Variable
Annuity Account C (the "Separate Account"). A free prospectus is
available upon request from the local Aetna Life Insurance and
Annuity Company office or by writing to or calling:
Aetna Life Insurance and Annuity Company
Annuity Operations
151 Farmington Avenue
Hartford, Connecticut 06156
1-800-525-4225
Read the prospectus before you invest. Unless otherwise
indicated, terms used in this Statement of Additional Information
shall have the same meaning as in the prospectus.
<PAGE>
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
----
<S> <C>
General Information and History . . . . . . . . . . . . . . . B-2
Variable Annuity Account C . . . . . . . . . . . . . . . . . B-3
Offering and Purchase of Contracts . . . . . . . . . . . . . B-5
Performance Data
General . . . . . . . . . . . . . . . . . . . . . . . . . . B-5
Average Annual Total Return Quotations . . . . . . . . . . B-6
Annuity Payments . . . . . . . . . . . . . . . . . . . . . B-12
Sales Material . . . . . . . . . . . . . . . . . . . . . . B-13
Independent Auditors . . . . . . . . . . . . . . . . . . . B-14
Financial Statements of the Separate Account . . . . . . . . S-1
Financial Statements of Aetna Life Insurance and Annuity Company F-1
</TABLE>
GENERAL INFORMATION AND HISTORY
Aetna Life Insurance and Annuity Company is a stock life
insurance company which was organized under the insurance laws of
the State of Connecticut in 1976. Through a merger, it succeeded
to the business of Aetna Variable Annuity Life Insurance Company
(formerly Participating Annuity Life Insurance Company organized
in 1954). As of December 31, 1994, the Company managed over
$20.4 billion of assets, ranking the Company among the top 2% of
all U.S. life insurance companies by size. The Company is a
wholly owned subsidiary of Aetna Retirement Services, Inc., a
wholly-owned subsidiary of Aetna Life and Casualty Company. The
Company is engaged in the business of issuing life insurance
policies and annuity contracts in all states of the United
States. The Company's Home Office is located at 151 Farmington
Avenue, Hartford, Connecticut 06156.
<PAGE>
<PAGE>
In addition to serving as the principal underwriter and the
depositor for the Separate Account, the Company is a registered
investment adviser under the Investment Advisers Act of 1940, and
a registered broker-dealer under the Securities Exchange Act of
1934. The Company provides investment advice to several of the
registered management investment companies offered as variable
investment options under the Contracts funded by the Separate
Account (see "Variable Annuity Account C" below).
Other than the mortality and expense risk charges and
administrative expense charge, if any, described in the
prospectus, all expenses incurred in the operations of the
Separate Account are borne by the Company. See "Charges and
Deductions" in the Prospectus. The Company receives
reimbursement for certain administrative costs from some
unaffiliated sponsors of the Funds used as funding options under
the Contract. These fees generally range from 0.15% to 0.25%.
The assets of the Separate Account are held by the Company.
Please refer to the prospectuses of the individual Funds in whose
shares the assets of the Separate Account are invested regarding
the custodians for those Funds.
VARIABLE ANNUITY ACCOUNT C
Variable Annuity Account C is a separate account established by
the Company for the purpose of funding variable annuity contracts
issued by the Company. The Separate Account is registered with
the Securities and Exchange Commission as a unit investment trust
under the Investment Company Act of 1940, as amended. The assets
of the Separate Account will be invested exclusively in shares of
the mutual funds described in the Prospectus ("Funds"). Purchase
Payments made under the Contract may be allocated to one or more
of the Funds. The Company may make additions to or deletions from
available investment options as permitted by law. The
availability of the Funds is subject to applicable regulatory
authorization. Not all Funds are available in all jurisdictions
or under all Contracts. The Funds currently available under the
Contract are as follows:
<PAGE>
<PAGE>
Aetna Variable Fund
Aetna Income Shares
Aetna Variable Encore Fund
Aetna Investment Advisers Fund, Inc.
Aetna Ascent Variable Portfolio
Aetna Crossroads Variable Portfolio
Aetna Legacy Variable Portfolio
Alger American Growth Fund
Alger American Small Cap Portfolio
Calvert Responsibly Invested Balanced Portfolio
Fidelity VIP II Contrafund Portfolio
Fidelity VIP Equity-Income Portfolio
Fidelity VIP Growth Portfolio
Fidelity VIP Overseas Portfolio
Franklin Government Securities Trust
Janus Aspen Aggressive Growth Portfolio
Janus Aspen Balanced Portfolio
Janus Aspen Flexible Income Portfolio
Janus Aspen Growth Portfolio
Janus Aspen Short-Term Bond Portfolio
Janus Aspen Worldwide Growth Portfolio
Lexington Natural Resources Trust
Neuberger & Berman Growth Portfolio
Scudder International Portfolio
TCI Growth (a Twentieth Century Fund)
Complete descriptions of each of the Funds, including their
investment objectives, policies, risks and fees and expenses, is
contained in the prospectuses and statements of additional
information for each of the Funds.
<PAGE>
<PAGE>
OFFERING AND PURCHASE OF CONTRACTS
The Company is both the Depositor and the principal underwriter
for the securities sold by the prospectus. The Company offers
the Contracts through life insurance agents licensed to sell
variable annuities who are registered representatives of the
Company or of other registered broker-dealers who have sales
agreements with the Company. The offering of the Contracts is
continuous. A description of the manner in which Contracts are
purchased may be found in the prospectus under the sections
titled "Purchase - Contract Purchase" and "Determining Contract
Value."
PERFORMANCE DATA
General
From time to time, the Company may advertise different types of
historical performance for the variable options of the Separate
Account available under the Contracts issued by the Company in
connection with Plans described in the Prospectus. The Company
may advertise the "standardized average annual total returns,"
calculated in a manner and for the periods prescribed by the
Securities and Exchange Commission (the "Standardized total
return"), as well as the "non-standardized total return,"
calculated in an identical manner but including additional
periods.
The standardized total return figures are computed according to a
formula in which a hypothetical initial Purchase Payment of
$1,000 is applied to the variable options under the Contract, and
then related to the ending redeemable values over one, five and
ten year periods (or fractional periods thereof). Such figures
reflect the deduction of all recurring charges during each period
(e.g., mortality and expense risk charges and any applicable
administrative expense charge). These charges will be deducted
on a pro rata basis in the case of fractional periods.
The non-standardized total return figures use the same formula,
but may be computed to include a three year period as well as the
one, five and ten year periods.
<PAGE>
<PAGE>
For variable options of the Separate Account that were in
existence prior to the date the Fund became available under the
Contract, the standardized and non-standardized total returns may
include periods prior to the date on which such Fund became
available under the Contract. These figures are calculated by
adjusting the actual returns of the Fund to reflect the charges
that would have been assessed under the Contract had that Fund
been available under the Contract during that period.
The total return quotations are based upon historical earnings
and are not necessarily representative of future performance.
Investment results of the Funds will fluctuate over time, and any
presentation of the Funds' total return quotations for any prior
period should not be considered as a representation of how the
Funds will perform in any future period. Additionally, your
Contract Value upon redemption may be more or less than your
original cost.
Average Annual Total Return Quotations - Standardized and
Non-Standardized
The table below reflects the average annual standardized and
non-standardized total return quotation figures for the periods
ended December 31, 1994 for the variable options under the
Contract issued by the Company.
<TABLE>
<CAPTION>
Standardized
----------
1 Year 5 Year 10 Year
---- ----- -----
<S> <C> <C> <C>
Aetna Variable Fund 17.93% 11.60% 12.99%
Aetna Income Shares 6.21 7.34 8.48
<PAGE>
<PAGE>
Aetna Variable
Encore Fund -1.01 2.34 4.63
Aetna Investment
Advisers Fund, Inc. 13.54 9.56 7.95*
Aetna Ascent Variable
Portfolio 0.30 -- --
Aetna Crossroads
Variable Portfolio -0.38* -- --
Aetna Legacy Variable -1.18* -- --
Portfolio
Alger American
Growth Fund 38.09 22.92 18.51*
Alger American Small
Cap Portfolio 51.06 23.50 22.37*
Calvert Responsibly
Invested Balanced
Portfolio** 16.32 9.20 9.79*
Fidelity VIP II
Contrafund Portfolio 30.89* -- --
Fidelity VIP Equity-Income
Portfolio 17.88 18.62 10.90*
Fidelity VIP Growth
Portfolio 35.36 20.63 13.78*
Fidelity VIP Overseas
<PAGE>
<PAGE>
Portfolio -1.93 6.19 5.26*
Franklin Government
Securities Trust 7.15 6.41 6.63*
Janus Aspen Aggressive
Growth Portfolio 19.30 22.99* --
Janus Aspen
Balanced Portfolio 8.47 7.76* --
Janus Aspen Flexible
Income Portfolio 9.04 3.79* --
Janus Aspen
Growth Portfolio 16.25 9.93* --
Janus Aspen Short-Term
Bond Portfolio 0.52 -0.26* --
Janus Aspen Worldwide
Growth Portfolio 11.85 15.53* --
Lexington Natural
Resources Trust -1.94 8.44 7.93*
Neuberger & Berman
Growth Portfolio 25.99 14.06 11.21*
Scudder International
Portfolio -0.12 8.60 7.51*
TCI Growth 29.07 15.25 12.15*
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Fund
Non- Inception
Standardized Date
---------- ---------
1 Year 3 Year 5 Year 10 Year
---- ----- ----- ----
<S> <C> <C> <C> <C> <C>
Aetna Variable Fund 24.14% 9.79% 12.51% 12.99% 04/30/75
Aetna Income Shares 11.80 4.79 8.22 8.48 06/01/78
Aetna Variable
Encore Fund 4.20 2.55 3.18 4.63 09/01/75
Aetna Investment
Advisers Fund, Inc. 19.52 8.93 10.46 8.65* 06/23/89
Aetna Ascent Variable
Portfolio 5.58* -- -- -- 07/03/95
Aetna Crossroads Variable
Portfolio 4.87* -- -- -- 07/03/95
Aetna Legacy Variable
Portfolio 4.03* -- -- -- 07/03/95
Alger American
Growth Fund 45.36 24.70 23.93 19.23* 01/08/89
Alger American Small
<PAGE>
<PAGE>
Cap Portfolio 59.02 24.23 24.52 22.90* 09/21/88
Calvert Responsibly
Invested Balanced
Portfolio** 22.44 9.06 10.09 10.04* 09/30/86
Fidelity VIP II
Contrafund Portfolio 37.78* -- -- -- 01/03/95
Fidelity VIP Equity-Income
Portfolio 24.09 18.33 19.59 11.27* 10/22/86
Fidelity VIP Growth
Portfolio 42.49 22.47 21.62 14.17* 11/07/86
Fidelity VIP Overseas
Portfolio 3.24 10.75 7.06 5.63* 02/13/87
Franklin Government
Securities Trust 12.79 4.15 7.28 7.32* 05/30/89
Janus Aspen Aggressive
Growth Portfolio 25.59 26.11* -- -- 09/13/93
Janus Aspen
Balanced Portfolio 14.18 10.49* -- -- 09/13/93
Janus Aspen Flexible
Income Portfolio 14.78 6.43* -- -- 09/13/93
Janus Aspen
Growth Portfolio 22.38 12.72* -- -- 09/13/93
Janus Aspen Short-Term
Bond Portfolio 5.82 2.28* -- -- 09/13/93
<PAGE>
<PAGE>
Janus Aspen Worldwide
Growth Portfolio 17.75 18.47* -- -- 09/13/93
Lexington Natural
Resources Trust 3.22 4.71 9.33 8.62* 05/31/89
Neuberger & Berman
Growth Portfolio 32.63 13.94 14.99 11.44* 12/31/85
Scudder International
Portfolio 5.14 11.71 9.49 7.90* 04/30/87
TCI Growth 35.87 16.40 16.20 12.58* 11/20/87
</TABLE>
* Although results are not available for the full
calendar indicated, the percentage shown is an average
annual return since inception.
** Formerly known as Calvert Socially Responsible Series.
<PAGE>
<PAGE>
ANNUITY PAYMENTS
When Variable Annuity payments are to begin, the value of the
Individual Account is determined using Fund Annuity Unit values
as of the tenth Valuation Period before the first Annuity payment
is due. Such value (less any applicable premium tax) is applied
to provide an Annuity in accordance with the Annuity and
investment options elected.
The Annuity option tables found in the Contract show, for each
form of Annuity, the amount of the first Variable Annuity payment
for each $1,000 of value applied. Thereafter, Variable Annuity
payments fluctuate as the Fund Annuity Unit value(s) fluctuates
with the investment experience of the selected investment
option(s). The first payment and subsequent payments also vary
depending on the assumed net investment rate selected (3.5% or 5%
per annum). Selection of a 5% rate causes a higher first payment,
but Annuity payments will increase thereafter only to the extent
that the net investment rate increases by more than 5% on an
annual basis. Annuity payments would decline if the rate failed
to increase by 5%. Use of the 3.5% assumed rate causes a lower
first payment, but subsequent payments would increase more
rapidly or decline more slowly as changes occur in the net
investment rate.
When the Annuity Period begins, the Annuitant is credited with a
fixed number of Fund Annuity Units (which does not change
thereafter) in each of the designated investment options. This
number is calculated by dividing (a) by (b), where (a) is the
amount of the first Annuity payment based on a particular
investment option, and (b) is the then current Fund Annuity Unit
value for that investment option. As noted, Fund Annuity Unit
values fluctuate from one Valuation Period to the next; such
fluctuations reflect changes in the net investment factor for the
appropriate Fund(s) (with a ten Valuation Period lag which gives
the Company time to process Annuity payments) and a mathematical
adjustment which offsets the assumed net investment rate of 3.5%
or 5% per annum.
The operation of all these factors can be illustrated by the
following hypothetical example. These procedures will be
performed separately for the investment options selected during
the Annuity Period.
EXAMPLE:
<PAGE>
<PAGE>
Assume that, at the date Annuity payments are to begin, there are
3,000 Fund Annuity Units credited under a particular Contract or
Account and that the value of a Fund Annuity Unit for the tenth
Valuation Period prior to retirement was $13.650000. This
produces a total value of $40,950.
Assume also that no premium tax is payable and that the Annuity
table in the Contract provides, for the option elected, a first
monthly Variable Annuity payment of $6.68 per $1000 of value
applied; the Annuitant's first monthly payment would thus be
40.950 multiplied by $6.68, or $273.55.
Assume then that the value of a Fund Annuity Unit for the
Valuation Period in which the first payment was due was
$13.400000. When this value is divided into the first monthly
payment, the number of Fund Annuity Units is determined to be
20.414. The value of this number of Fund Annuity Units will be
paid in each subsequent month.
If the net investment factor with respect to the appropriate Fund
is 1.0015000 as of the tenth Valuation Period preceding the due
date of the second monthly payment, multiplying this factor by
.9999058* (to neutralize the assumed net investment rate of 3.5%
per annum built into the number of Fund Annuity Units determined
above) produces a result of 1.0014057. This is then multiplied by
the Fund Annuity Unit value for the prior Valuation Period
(assume such value to be $13.504376) to produce a Fund Annuity
Unit value of $13.523359 for the Valuation Period in which the
second payment is due.
The second monthly payment is then determined by multiplying the
number of Fund Annuity Units by the current Fund Annuity Unit
value, or 20.414 times $13.523359, which produces a payment of
$276.07.
* If an assumed net investment rate of 5% is elected, the
appropriate factor to neutralize such assumed rate
would be .9998663.
SALES MATERIAL
The Company may include hypothetical illustrations in its sales
literature that explain the mathematical principles of dollar
<PAGE>
<PAGE>
cost averaging, compounded interest, tax deferred accumulation,
and the mechanics of variable annuity contracts. The Company may
also discuss the difference between variable annuity contracts
and other types of savings or investment products, including, but
not limited to, personal savings accounts and Certificates of
Deposits.
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP, CityPlace II, Hartford, Connecticut
06103-4103, are the independent auditors for the Separate Account
and for the Company. The services provided to the Separate
Account include primarily the examination of the Separate
Account's financial statements and the review of filings made
with the SEC.
<PAGE>
<PAGE>
Index of Financial Statements of Variable Annuity Account C:
Independent Auditors' Report . . . . . . . . . . . . . . . . . .
Statement of Assets and Liabilities as of December 31, 1994 . . .
Statement of Operations for the year ended December 31, 1994 . .
Statements of Changes in Net Assets for the years ended December
31, 1994 and 1993 . . . . . . . . . . . . . . . . . . . . . . . .
Notes to Financial Statements . . . . . . . . . . . . . . . . . .
Unaudited Statement of Assets and Liabilities as of September 30,
1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unaudited Statement of Operations for the nine-month period ended
September 30, 1995 . . . . . . . . . . . . . . . . . . . . . . .
Unaudited Statements of Changes in Net Assets for nine-month
period ended September 30, 1995 and year ended December 31, 1994
Notes to Financial Statements . . . . . . . . . . . . . . . . . .
<PAGE>
<PAGE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors of Aetna Life Insurance and Annuity Company and
Contract Owners of Variable Annuity Account C:
We have audited the accompanying statement of assets and liabilities of Aetna
Life Insurance and Annuity Company Variable Annuity Account C (the "Account") as
of December 31, 1994, the related statement of operations and condensed
financial information for the year then ended and the statements of changes in
net assets for each of the years in the two-year period then ended. These
financial statements and condensed financial information are the responsibility
of the Account's management. Our responsibility is to express an opinion on
these financial statements and condensed financial information based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and condensed
financial information are free of material misstatement. An audit also includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of December 31, 1994, by correspondence with the custodian. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and condensed financial information
referred to above present fairly, in all material respects, the financial
position of Aetna Life Insurance and Annuity Company Variable Annuity Account C
as of December 31, 1994, the results of its operations and condensed financial
information for the year then ended and the changes in its net assets for each
of the years in the two-year period then ended in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Hartford, Connecticut
January 31, 1995
S-2
<PAGE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF ASSETS AND LIABILITIES - December 31, 1994
ASSETS:
<S> <C>
Investments, at net asset value: (Note 1)
Aetna Variable Fund; 115,046,067 shares at $26.23 per share (cost $2,938,078,798) . . . . . . $3,017,586,769
Aetna Income Shares; 28,987,528 shares at $11.72 per share (cost $373,229,679) . . . . . . . 339,845,651
Aetna Variable Encore Fund; 18,165,132 shares at $12.55 per share (cost $230,182,227) . . . . 227,945,773
Aetna Investment Advisers Fund, Inc.; 48,115,691 shares at $12.23 per share
(cost $557,208,037) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 588,336,344
Aetna GET Fund, Series B; 6,130,437 shares at $9.92 per share (cost $61,658,244) . . . . . . 60,813,035
Alger American Fund - Alger American Small Capitalization Portfolio; 2,504,238 shares at
$27.31 per share (cost $68,490,734) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,390,728
Calvert Socially Responsible Series; 11,114,321 shares at $1.44 per share (cost $16,386,553). 16,015,737
Fidelity Investments Variable Insurance Products Fund II - Asset Manager Portfolio;
859,413 shares at $13.79 per share (cost $12,101,599) . . . . . . . . . . . . . . . . . . . 11,851,301
Fidelity Investments Variable Insurance Products Fund - Equity-Income Portfolio;
97,900 shares at $15.35 per share (cost $1,512,657) . . . . . . . . . . . . . . . . . . . . 1,502,758
Fidelity Investments Variable Insurance Products Fund - Growth Portfolio;
74,198 shares at $21.69 per share (cost $1,566,291) . . . . . . . . . . . . . . . . . . . . 1,609,365
Fidelity Investments Variable Insurance Products Fund - Overseas Portfolio
Portfolio; 35,965 shares at $15.67 per share (cost $575,367) . . . . . . . . . . . . . . . 563,569
Franklin Government Securities Trust; 1,232,301 shares at $12.05 per share
(cost $15,779,220) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,849,231
Janus Aspen Series - Aggressive Growth Portfolio; 937,913 shares at $13.62 per share
(cost $12,554,413). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,774,375
Janus Aspen Series - Flexible Income Portfolio; 31,351 shares at $9.48 per share
(cost $307,352) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297,205
Lexington Emerging Markets Fund, Inc.; 128,777 shares at $9.86 per share
(cost $1,392,103) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,269,745
Lexington Natural Resources Trust; 1,260,454 shares at $9.71 per share (cost $12,849,039) . . 12,239,010
Neuberger & Berman Advisers Management Trust- Growth Portfolio; 2,416,504 shares at
$20.31 per share (cost $52,391,344) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49,079,202
Scudder Variable Life Investment Fund - International Portfolio; 13,314,695 shares at
$10.69 per share (cost $141,368,583) . . . . . . . . . . . . . . . . . . . . . . . . . . . 142,334,092
TCI Portfolios, Inc. - TCI Growth; 32,031,260 shares at $9.21 per share (cost $291,200,318) . 295,007,901
---------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,862,311,791
---------------
---------------
</TABLE>
See Notes to Financial Statements
S-3
<PAGE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF ASSETS AND LIABILITIES - December 31, 1994 (continued)
Net assets represented by: ACCUMULATION
UNIT
UNITS VALUE
-------------- --------------
<S> <C> <C> <C>
Reserves for annuity contracts in accumulation period:
AETNA VARIABLE FUND:
Qualified I . . . . . . . . . . . . . . . . . . . . 1,258,166.4 $ 138.406 $ 174,137,707
Qualified III . . . . . . . . . . . . . . . . . . . 13,966,072.4 105.558 1,474,234,355
Qualified IV . . . . . . . . . . . . . . . . . . . 269.0 63.884 17,183
Qualified V . . . . . . . . . . . . . . . . . . . . 77,510.5 10.823 838,870
Qualified VI . . . . . . . . . . . . . . . . . . . 114,733,034.7 10.778 1,236,626,034
Qualified VII . . . . . . . . . . . . . . . . . . . 2,703,365.0 10.136 27,402,446
Qualified VIII . . . . . . . . . . . . . . . . . . 3,454.8 10.011 34,586
Qualified IX . . . . . . . . . . . . . . . . . . . 23,601.2 9.879 233,158
Qualified X (1.15) . . . . . . . . . . . . . . . . 110,419.5 10.791 1,191,541
Qualified X (1.25) . . . . . . . . . . . . . . . . 602,837.7 10.778 6,497,560
AETNA INCOME SHARES:
Qualified I . . . . . . . . . . . . . . . . . . . . 161,534.6 40.570 6,553,450
Qualified III . . . . . . . . . . . . . . . . . . . 5,108,719.7 40.173 205,233,454
Qualified V . . . . . . . . . . . . . . . . . . . . 14,481.7 10.536 152,573
Qualified VI . . . . . . . . . . . . . . . . . . . 11,713,354.4 10.360 121,354,557
Qualified VII . . . . . . . . . . . . . . . . . . . 49,298.1 9.565 471,526
Qualified VIII . . . . . . . . . . . . . . . . . . 440.2 9.543 4,201
Qualified IX . . . . . . . . . . . . . . . . . . . 4,120.5 9.570 39,432
Qualified X (1.15) . . . . . . . . . . . . . . . . 16,109.8 10.373 167,101
Qualified X (1.25) . . . . . . . . . . . . . . . . 148,192.7 10.360 1,535,329
AETNA VARIABLE ENCORE FUND:
Qualified I . . . . . . . . . . . . . . . . . . . . 241,159.0 36.723 8,856,130
Qualified III . . . . . . . . . . . . . . . . . . . 3,679,802.2 36.271 133,469,145
Qualified V . . . . . . . . . . . . . . . . . . . . 12,934.0 10.523 136,102
Qualified VI . . . . . . . . . . . . . . . . . . . 7,673,528.3 10.528 80,784,765
Qualified VII . . . . . . . . . . . . . . . . . . . 99,270.9 10.435 1,035,905
Qualified VIII . . . . . . . . . . . . . . . . . . 215.3 10.141 2,184
Qualified IX . . . . . . . . . . . . . . . . . . . 3,366.5 10.341 34,812
Qualified X (1.15) . . . . . . . . . . . . . . . . 9,735.5 10.541 102,618
Qualified X (1.25) . . . . . . . . . . . . . . . . 334,746.2 10.528 3,524,115
AETNA INVESTMENT ADVISERS FUND, INC.:
Qualified I . . . . . . . . . . . . . . . . . . . . 756,261.3 14.317 10,827,393
Qualified III . . . . . . . . . . . . . . . . . . . 21,990,186.1 14.270 313,799,955
Qualified V . . . . . . . . . . . . . . . . . . . . 11,773.4 10.900 128,330
Qualified VI . . . . . . . . . . . . . . . . . . . 23,139,603.9 10.868 251,481,215
Qualified VII . . . . . . . . . . . . . . . . . . . 144,586.5 10.434 1,508,616
Qualified VIII . . . . . . . . . . . . . . . . . . 120.8 10.091 1,219
Qualified IX . . . . . . . . . . . . . . . . . . . 4,574.1 10.000 45,741
Qualified X (1.15) . . . . . . . . . . . . . . . . 49,332.6 10.880 536,739
Qualified X (1.25) . . . . . . . . . . . . . . . . 261,895.1 10.868 2,846,276
</TABLE>
See Notes to Financial Statements
S-4
<PAGE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF ASSETS AND LIABILITIES - December 31, 1994 (continued)
ACCUMULATION
UNIT
UNITS VALUE
------------- --------------
<S> <C> <C> <C>
AETNA GET FUND, SERIES B:
Qualified III . . . . . . . . . . . . . . . . . . . 113,700.1 $ 10.160 $ 1,155,184
Qualified VI . . . . . . . . . . . . . . . . . . . 5,515,433.4 10.160 56,036,373
Qualified X (1.25) . . . . . . . . . . . . . . . . 356,447.4 10.160 3,621,478
ALGER AMERICAN FUND - ALGER AMERICAN SMALL
CAPITALIZATION PORTFOLIO:
Qualified III . . . . . . . . . . . . . . . . . . . 665,518.0 9.513 6,331,073
Qualified V . . . . . . . . . . . . . . . . . . . . 4,574.5 9.461 43,282
Qualified VI . . . . . . . . . . . . . . . . . . . 6,339,406.7 9.437 59,827,174
Qualified VIII . . . . . . . . . . . . . . . . . . 1,056.6 9.889 10,449
Qualified X (1.15) . . . . . . . . . . . . . . . . 22,051.9 9.450 208,380
Qualified X (1.25) . . . . . . . . . . . . . . . . 208,784.3 9.437 1,970,370
CALVERT SOCIALLY RESPONSIBLE SERIES:
Qualified III . . . . . . . . . . . . . . . . . . . 743,464.3 13.990 10,401,066
Qualified V . . . . . . . . . . . . . . . . . . . . 8,469.2 10.839 91,795
Qualified VI . . . . . . . . . . . . . . . . . . . 521,140.5 10.554 5,500,118
Qualified VIII . . . . . . . . . . . . . . . . . . 2,401.5 9.590 23,031
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND II - ASSET MANAGER PORTFOLIO:
Qualified III . . . . . . . . . . . . . . . . . . . 1,254,504.2 9.447 11,851,301
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND - EQUITY-INCOME PORTFOLIO:
Qualified X (1.15) . . . . . . . . . . . . . . . . 43,852.1 10.409 456,470
Qualified X (1.25) . . . . . . . . . . . . . . . . 100,574.2 10.403 1,046,288
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND - GROWTH PORTFOLIO:
Qualified X (1.15) . . . . . . . . . . . . . . . . 32,591.9 10.479 341,515
Qualified X (1.25) . . . . . . . . . . . . . . . . 121,069.6 10.472 1,267,850
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS
FUND - OVERSEAS PORTFOLIO:
Qualified X (1.15) . . . . . . . . . . . . . . . . 5,097.9 9.480 48,326
Qualified X (1.25) . . . . . . . . . . . . . . . . 54,386.5 9.474 515,243
FRANKLIN GOVERNMENT SECURITIES TRUST:
Qualified III . . . . . . . . . . . . . . . . . . . 804,457.0 14.190 11,415,245
Qualified V . . . . . . . . . . . . . . . . . . . . 10,738.2 10.294 110,534
Qualified VI . . . . . . . . . . . . . . . . . . . 325,365.0 10.119 3,292,269
Qualified VIII . . . . . . . . . . . . . . . . . . 3,268.3 9.541 31,183
</TABLE>
See Notes to Financial Statements
S-5
<PAGE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF ASSETS AND LIABILITIES - December 31, 1994 (continued)
ACCUMULATION
UNIT
UNITS VALUE
------------ ------------
<S> <C> <C>
JANUS ASPEN SERIES - AGGRESSIVE GROWTH PORTFOLIO:
Qualified III 393,553.0 $ 12.169 $ 4,789,146
Qualified V . . . . . . . . . . . . . . . . . . . . 819.6 10.577 8,669
Qualified VI . . . . . . . . . . . . . . . . . . . 753,862.0 10.581 7,976,560
JANUS ASPEN SERIES - FLEXIBLE INCOME PORTFOLIO:
Qualified III . . . . . . . . . . . . . . . . . . . 1,554.8 9.911 15,410
Qualified VI . . . . . . . . . . . . . . . . . . . 28,542.8 9.873 281,795
LEXINGTON EMERGING MARKETS FUND, INC.:
Qualified III . . . . . . . . . . . . . . . . . . . 144,749.8 8.772 1,269,745
LEXINGTON NATURAL RESOURCES TRUST:
Qualified III . . . . . . . . . . . . . . . . . . . 533,015.5 9.412 5,016,742
Qualified V . . . . . . . . . . . . . . . . . . . . 7,349.7 10.496 77,142
Qualified VI . . . . . . . . . . . . . . . . . . . 703,676.0 10.154 7,145,126
NEUBERGER & BERMAN ADVISERS MANAGEMENT
TRUST - GROWTH PORTFOLIO:
Qualified III . . . . . . . . . . . . . . . . . . . 2,107,524.7 13.398 28,236,616
Qualified V . . . . . . . . . . . . . . . . . . . . 21,935.1 11.055 242,485
Qualified VI . . . . . . . . . . . . . . . . . . . 1,865,104.0 11.026 20,565,351
Qualified VIII . . . . . . . . . . . . . . . . . . 3,664.8 9.482 34,750
SCUDDER VARIABLE LIFE INVESTMENT FUND -
INTERNATIONAL PORTFOLIO:
Qualified III . . . . . . . . . . . . . . . . . . . 4,240,411.7 13.227 56,087,925
Qualified V . . . . . . . . . . . . . . . . . . . . 22,036.3 12.595 277,545
Qualified VI . . . . . . . . . . . . . . . . . . . 6,558,945.9 12.687 83,214,974
Qualified VIII . . . . . . . . . . . . . . . . . . 7,124.8 10.692 76,181
Qualified X (1.15) . . . . . . . . . . . . . . . . 23,840.2 12.701 302,803
Qualified X (1.25) . . . . . . . . . . . . . . . . 187,169.4 12.687 2,374,664
TCI PORTFOLIOS, INC. - TCI GROWTH:
Qualified III * . . . . . . . . . . . . . . . . . . 1,608,361.5 11.172 17,968,615
Qualified III . . . . . . . . . . . . . . . . . . . 12,096,731.2 10.213 123,547,291
Qualified V . . . . . . . . . . . . . . . . . . . . 15,078.2 11.740 177,018
Qualified VI . . . . . . . . . . . . . . . . . . . 12,853,827.6 11.781 151,426,971
Qualified VII . . . . . . . . . . . . . . . . . . . 14,330.4 9.911 142,029
Qualified VIII . . . . . . . . . . . . . . . . . . 4,377.2 9.939 43,505
Qualified IX . . . . . . . . . . . . . . . . . . . 957.4 9.693 9,280
Qualified X (1.15) . . . . . . . . . . . . . . . . 4,486.4 11.794 52,912
Qualified X (1.25) . . . . . . . . . . . . . . . . 139,234.6 11.781 1,640,280
Reserves for annuity contracts in payment period (Note 1) 107,867,941
------------------
$4,862,311,791
------------------
------------------
</TABLE>
*Applies only to participants of the Opportunity Plus program and Multiple
Options Portfolio.
See Notes to Financial Statements
S-6
<PAGE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF OPERATIONS - Year Ended December 31, 1994
INVESTMENT INCOME:
<S> <C> <C>
Dividends: (Notes 1 and 3)
Aetna Variable Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . $467,266,533
Aetna Income Shares . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,593,571
Aetna Variable Encore Fund . . . . . . . . . . . . . . . . . . . . . . . 8,637,154
Aetna Investment Advisers Fund, Inc . . . . . . . . . . . . . . . . . . . 24,584,458
Aetna GET Fund, Series B . . . . . . . . . . . . . . . . . . . . . . . . 2,115,482
Alger American Fund - Alger American Small Capitalization Portfolio . . . 2,620,001
Calvert Socially Responsible Series . . . . . . . . . . . . . . . . . . . 497,655
Fidelity Investments Variable Insurance Products Fund II - Asset
Manager Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,798
Fidelity Investments Variable Insurance Products Fund - Equity-Income
Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,084
Franklin Government Securities Trust . . . . . . . . . . . . . . . . . . 930,986
Janus Aspen Series - Aggressive Growth Portfolio . . . . . . . . . . . . 92,229
Janus Aspen Series - Flexible Income Portfolio . . . . . . . . . . . . . 8,975
Lexington Emerging Markets Fund, Inc. . . . . . . . . . . . . . . . . . . 26,666
Lexington Natural Resources Trust . . . . . . . . . . . . . . . . . . . . 45,284
Neuberger & Berman Advisers Management Trust- Growth Portfolio . . . . . 4,614,980
Scudder Variable Life Investment Fund - International Portfolio . . . . 441,642
TCI Portfolios, Inc. - TCI Growth . . . . . . . . . . . . . . . . . . . . 25,820
---------------
Total investment income . . . . . . . . . . . . . . . . . . . . . . . . 535,517,318
Valuation period deductions (Note 2) . . . . . . . . . . . . . . . . . . . (59,320,898)
---------------
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . 476,196,420
---------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain on sales of investments: (Notes 1 and 4)
Proceeds from sales . . . . . . . . . . . . . . . . . . . . . . . . . . . $293,968,699
Cost of investments sold . . . . . . . . . . . . . . . . . . . . . . . . 229,897,138
--------------
Net realized gain . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,071,561
Net unrealized gain (loss) on investments:
Beginning of period . . . . . . . . . . . . . . . . . . . . . . . . . . . 719,363,247
End of period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73,479,233
--------------
Net unrealized loss . . . . . . . . . . . . . . . . . . . . . . . . . . (645,884,014)
---------------
Net realized and unrealized loss on investments . . . . . . . . . . . . . . (581,812,453)
---------------
Net decrease in net assets resulting from operations . . . . . . . . . . . $(105,616,033)
---------------
---------------
</TABLE>
See Notes to Financial Statements
S-7
<PAGE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
DECEMBER 31, 1994 DECEMBER 31, 1993
------------------ ------------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . $ 476,196,420 $ 232,176,564
Net realized and unrealized gain (loss) on investments . . . . . . . . (581,812,453) 21,509,547
------------------ ------------------
Net increase (decrease) in net assets resulting from operations . . . (105,616,033) 253,686,111
------------------ ------------------
FROM UNIT TRANSACTIONS:
Variable annuity contract purchase payments . . . . . . . . . . . . . . 711,565,372 649,666,815
Sales and administrative charges deducted by the Company . . . . . . . (137,737) (165,303)
------------------ ------------------
Net variable annuity contract purchase payments . . . . . . . . . . . 711,427,635 649,501,512
Transfers from the Company for mortality guarantee adjustments. . . . . 1,880,350 1,413,366
Transfers to the Company's fixed account options . . . . . . . . . . . (56,920,532) (17,366,092)
Transfers to other variable annuity accounts . . . . . . . . . . . . . (23,284,415) 0
Redemptions by contract holders . . . . . . . . . . . . . . . . . . . . (269,542,942) (210,939,684)
Annuity payments . . . . . . . . . . . . . . . . . . . . . . . . . . . (11,189,149) (8,655,687)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,452,959 1,717,888
------------------ ------------------
Net increase in net assets from unit transactions . . . . . . . . . . 353,823,906 415,671,303
------------------ ------------------
Change in net assets . . . . . . . . . . . . . . . . . . . . . . . . . 248,207,873 669,357,414
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,614,103,918 3,944,746,504
------------------ ------------------
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,862,311,791 $ 4,614,103,918
------------------ ------------------
------------------ ------------------
</TABLE>
See Notes to Financial Statements
S-8
<PAGE>
VARIABLE ANNUITY ACCOUNT C
NOTES TO FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Variable Annuity Account C ("Account") is registered under the Investment
Company Act of 1940 as a unit investment trust. The Account is sold exclusively
for use with annuity contracts that are qualified under the Internal Revenue
Code of 1986, as amended.
The accompanying financial statements of the Account have been prepared in
accordance with generally accepted accounting principles.
a. VALUATION OF INVESTMENTS
Investments in the following Funds are stated at the closing net asset value per
share as determined by the each Fund on December 31, 1994:
<TABLE>
<S> <C>
Aetna Variable Fund Fidelity Investments Variable Insurance
Aetna Income Shares Products Fund-Overseas Portfolio
Aetna Variable Encore Fund Franklin Government Securities Trust
Aetna Investment Advisers Fund, Inc. Janus Aspen Series-Aggressive Growth
Aetna GET Fund, Series B Portfolio
Alger American Fund-Alger American Small Janus Aspen Series-Flexible Income Portfolio
Capitalization Portfolio Lexington Emerging Markets Fund, Inc.
Calvert Socially Responsible Series Lexington Natural Resources Trust
Fidelity Investments Variable Insurance Neuberger & Berman Advisers Management
Products Fund II-Asset Manager Portfolio Trust-Growth Portfolio
Fidelity Investments Variable Insurance Scudder Variable Life Investment Fund-
Products Fund-Equity-Income Portfolio International Portfolio
Fidelity Investments Variable Insurance TCI Portfolios, Inc.-TCI Growth
Products Fund-Growth Portfolio
</TABLE>
b. OTHER
Investment transactions are accounted for on a trade-date basis and dividend
income is recorded on the ex-dividend date. The cost of investments sold is
determined by specific identification.
c. FEDERAL INCOME TAXES
The operations of Variable Annuity Account C form a part of, and are taxed with,
the total operations of Aetna Life Insurance and Annuity Company ("Company")
which is taxed as a life insurance company under the Internal Revenue Code of
1986, as amended.
d. ANNUITY RESERVES
Annuity reserves are computed for currently payable contracts according to the
Progressive Annuity, Individual Annuity Mortality, and Group Annuity Mortality
tables using various assumed interest rates not to exceed seven percent.
Charges to annuity reserves for mortality and expense risk experience are
reimbursed to the Company if the reserves required are less than originally
estimated. If additional reserves are required, the Company reimburses the
Account.
2. VALUATION PERIOD DEDUCTIONS
Deductions by the Account for mortality and expense risk charges are made in
accordance with the terms of the contracts and are paid to the Company.
S-9
<PAGE>
VARIABLE ANNUITY ACCOUNT C
NOTES TO FINANCIAL STATEMENTS (continued)
3. DIVIDEND INCOME
On an annual basis the Funds distribute substantially all of their taxable
income and realized capital gains to their shareholders. Distributions to the
Account are automatically reinvested in shares of the Funds. The Account's
proportionate share of the Funds' undistributed net investment income and
accumulated net realized gain (loss) on investments is included in net
unrealized loss in the Statement of Operations.
Dividends were received from the following Funds:
<TABLE>
<CAPTION>
DATE OF DIVIDEND SOURCE OF
FUND REINVESTMENT DIVIDENDS
---- ------------ ---------
<S> <C> <C>
Aetna Variable Fund July 20, 1994 Net investment income and net
December 30, 1994 realized gains
- ----------------------------------------------------------------------------------------------------------------
Aetna Income Shares July 20, 1994 Net investment income
December 30, 1994
- ----------------------------------------------------------------------------------------------------------------
Aetna Variable Encore Fund July 20, 1994 Net investment income
December 30, 1994
- ----------------------------------------------------------------------------------------------------------------
Aetna Investment Advisers Fund, Inc. July 20, 1994 Net investment income and
December 30, 1994 realized gains
- ----------------------------------------------------------------------------------------------------------------
Aetna GET Fund, Series B December 30, 1994 Net investment income and net
realized gains
- ----------------------------------------------------------------------------------------------------------------
Alger American Fund-Alger American Small May 9, 1994 Net realized gains
Capitalization Portfolio
- ----------------------------------------------------------------------------------------------------------------
Calvert Socially Responsible Series December 30, 1994 Net investment income
- ----------------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products September 2, 1994 Net investment income
Fund II-Asset Manager Portfolio
- ----------------------------------------------------------------------------------------------------------------
Fidelity Investments Variable Insurance Products June 7, 1994 Net investment income
Fund-Equity-Income Portfolio September 19, 1994
December 16, 1994
- ----------------------------------------------------------------------------------------------------------------
Franklin Government Securities Trust June 13, 1994 Net investment income
- ----------------------------------------------------------------------------------------------------------------
Janus Aspen Series-Aggressive Growth Portfolio June 29, 1994 Net investment income
December 29, 1994
- ----------------------------------------------------------------------------------------------------------------
Janus Aspen Series-Flexible Income Portfolio December 29, 1994 Net investment income
- ----------------------------------------------------------------------------------------------------------------
Lexington Emerging Markets Fund, Inc. December 29, 1994 Net investment income and net
realized gains
- ----------------------------------------------------------------------------------------------------------------
Lexington Natural Resources Trust December 29, 1994 Net investment income
- ----------------------------------------------------------------------------------------------------------------
Neuberger & Berman Advisers Management February 11, 1994 Net investment income and net
Trust-Growth Portfolio realized gains
- ----------------------------------------------------------------------------------------------------------------
Scudder Variable Life Investment Fund- February 24, 1994 Net investment income
International Portfolio
- ----------------------------------------------------------------------------------------------------------------
TCI Portfolios, Inc.-TCI Growth April 11, 1994 Net investment income
</TABLE>
4. PURCHASES AND SALES OF INVESTMENTS
The cost of purchases and proceeds from sales of investments other than
short-term investments for the year ended December 31, 1994 aggregated
$688,544,469 and $293,968,699, respectively.
S-10
<PAGE>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF ASSETS AND LIABILITIES - September 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments, at net asset value: (Note 1)
Aetna Variable Fund; 118,502,415 shares at $31.80 per share (cost $3,089,755,716). . . . . . . . . . . . . . $3,768,234,583
Aetna Income Shares; 28,775,095 shares at $12.99 per share (cost $369,330,464) . . . . . . . . . . . . . . . 373,699,166
Aetna Variable Encore Fund; 17,945,337 shares at $13.12 per share (cost $227,874,405 . . . . . . . . . . . . 235,381,472
Aetna Investment Advisers Fund, Inc.; 48,745,953 shares at $14.19 per share (cost $574,062,330). . . . . . . 691,541,722
Aetna GET Fund, Series B; 5,928,853 shares at $12.02 per share (cost $59,803,624). . . . . . . . . . . . . . 71,277,277
Aetna Ascent Variable Portfolio; 238,754 shares at $10.60 per share (cost $2,504,429). . . . . . . . . . . . 2,531,108
Aetna Crossroads Variable Portfolio; 100,112 shares at $10.53 per share (cost $1,046,035). . . . . . . . . . 1,054,345
Aetna Legacy Variable Portfolio; 70,948 shares at $10.45 per share (cost $731,834) . . . . . . . . . . . . . 741,469
Alger American Fund - Alger American Growth Portfolio; 452,180 shares at $32.73
per share (cost $14,301,443) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,799,857
Alger American Fund - Alger American Small Capitalization Portfolio; 5,024,451 shares at $42.83
per share (cost $158,598,905). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215,197,251
Calvert Responsibly Invested Balanced Portfolio; 13,979,939 shares at $1.80 per share
(cost $21,306,685) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,219,809
Fidelity Investments Variable Insurance Products Fund - Equity-Income
Portfolio; 1,097,768 shares at $18.25 per share (cost $18,898,091) . . . . . . . . . . . . . . . . . . . . 20,034,267
Fidelity Investments Variable Insurance Products Fund - Growth
Portfolio; 447,275 shares at $30.47 per share (cost $12,199,717) . . . . . . . . . . . . . . . . . . . . . 13,628,474
Fidelity Investments Variable Insurance Products Fund - Overseas
Portfolio; 156,891 shares at $16.70 per share (cost $2,528,669). . . . . . . . . . . . . . . . . . . . . . 2,620,085
Fidelity Investments Variable Insurance Products Fund II - Asset Manager
Portfolio; 904,939 shares at $15.21 per share (cost $12,704,159) . . . . . . . . . . . . . . . . . . . . . 13,764,129
Fidelity Investments Variable Insurance Products Fund II - Contrafund
Portfolio; 1,008,549 shares at $13.94 per share (cost $13,619,490) . . . . . . . . . . . . . . . . . . . . 14,059,169
Fidelity Investments Variable Insurance Products Fund II - Index 500
Portfolio; 27,285 shares at $71.94 per share (cost $1,865,235) . . . . . . . . . . . . . . . . . . . . . . 1,950,592
Franklin Government Securities Trust; 1,494,759 shares at $12.91 per share
(cost $19,146,119) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,297,336
Janus Aspen Series - Aggressive Growth Portfolio; 4,153,295 shares at $16.29 per share (cost $58,489,439). . 67,657,182
Janus Aspen Series - Balanced Portfolio; 53,135 shares at $12.33 per share (cost $647,075) . . . . . . . . . 655,159
Janus Aspen Series - Flexible Income Portfolio; 228,108 shares at $10.83 per share (cost $2,353,008) . . . . 2,470,408
Janus Aspen Series - Growth Portfolio; 165,639 shares at $13.06 per share (cost $2,099,949). . . . . . . . . 2,163,248
Janus Aspen Series - Short-Term Bond Portfolio; 34,680 shares at $9.98 per share (cost $344,023) . . . . . . 346,110
Janus Aspen Series - Worldwide Growth Portfolio; 391,050 shares at $14.58 per share (cost $5,568,986). . . . 5,701,513
Lexington Emerging Markets Fund; 242,736 shares at $9.77 per share (cost $2,343,515) . . . . . . . . . . . . 2,371,531
Lexington Natural Resources Trust; 1,222,713 shares at $10.96 per share (cost $12,465,404) . . . . . . . . . 13,400,931
Neuberger & Berman Advisers Management Trust- Growth Portfolio; 3,259,537 shares
at $26.85 per share (cost $72,082,715) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87,518,568
Scudder Variable Life Investment Fund - International Portfolio; 13,908,676
shares at $11.82 per share (cost $150,510,269) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164,400,545
TCI Portfolios, Inc. - TCI Growth; 34,369,831 shares at $12.53 per share (cost $318,020,841) . . . . . . . . 430,653,981
-----------------
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,262,371,287
-----------------
-----------------
</TABLE>
See Notes to Financial Statements.
<PAGE>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF ASSETS AND LIABILITIES - September 30, 1995 (continued)
NET ASSETS REPRESENTED BY:
<TABLE>
<CAPTION>
ACCUMULATION
UNIT
UNITS VALUE
------------- ------------
<S> <C> <C> <C>
RESERVES FOR ANNUITY CONTRACTS IN ACCUMULATION PERIOD:
AETNA VARIABLE FUND:
Qualified I. . . . . . . . . . . . . . . . . . . . . . . . . . 765,610.5 $172.988 . . . $132,441,495
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 7,850,232.3 131.874 . . . 1,035,239,441
Qualified IV . . . . . . . . . . . . . . . . . . . . . . . . . 269.0 80.000 . . . 21,506
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 105,673.4 13.505 . . . 1,427,076
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 174,190,933.3 13.465 . . . 2,345,532,826
Qualified VII. . . . . . . . . . . . . . . . . . . . . . . . . 7,324,587.3 12.669 . . . 92,796,053
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 18,983.0 12.506 . . . 237,403
Qualified IX . . . . . . . . . . . . . . . . . . . . . . . . . 21,812.2 12.365 . . . 269,707
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 278,257.1 13.491 . . . 3,754,047
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 1,877,681.1 13.465 . . . 25,283,536
AETNA INCOME SHARES:
Qualified I. . . . . . . . . . . . . . . . . . . . . . . . . . 109,973.5 45.597 . . . 5,014,488
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 2,926,908.7 45.131 . . . 132,094,328
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 19,250.6 11.822 . . . 227,574
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 19,444,515.6 11.639 . . . 226,313,667
Qualified VII. . . . . . . . . . . . . . . . . . . . . . . . . 132,721.4 10.750 . . . 1,426,758
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 955.4 10.720 . . . 10,241
Qualified IX . . . . . . . . . . . . . . . . . . . . . . . . . 3,583.2 10.771 . . . 38,594
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 40,452.3 11.661 . . . 471,731
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 272,470.0 11.639 . . . 3,171,263
AETNA VARIABLE ENCORE FUND:
Qualified I. . . . . . . . . . . . . . . . . . . . . . . . . . 206,594.5 38.046 . . . 7,860,002
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 2,283,359.3 37.560 . . . 85,762,680
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 18,783.4 10.884 . . . 204,434
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 12,175,091.8 10.902 . . . 132,731,622
Qualified VII. . . . . . . . . . . . . . . . . . . . . . . . . 242,930.3 10.811 . . . 2,626,291
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 647.5 10.501 . . . 6,799
Qualified IX . . . . . . . . . . . . . . . . . . . . . . . . . 2,611.2 10.728 . . . 28,013
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 138,401.3 10.923 . . . 1,511,812
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 426,514.6 10.902 . . . 4,649,819
AETNA INVESTMENT ADVISERS FUND, INC.:
Qualified I. . . . . . . . . . . . . . . . . . . . . . . . . . 468,579.8 17.244 . . . 8,080,283
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 11,330,685.7 17.180 . . . 194,656,467
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 16,912.6 13.107 . . . 221,681
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 35,481,696.3 13.084 . . . 464,227,151
Qualified VII. . . . . . . . . . . . . . . . . . . . . . . . . 272,180.7 12.567 . . . 3,420,405
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 548.1 12.148 . . . 6,658
Qualified IX . . . . . . . . . . . . . . . . . . . . . . . . . 3,964.1 12.062 . . . 47,813
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 115,972.2 13.109 . . . 1,520,247
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 769,531.2 13.084 . . . 10,068,214
AETNA GET FUND, SERIES B:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 73,830.8 12.334 . . . 910,655
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 5,352,570.6 12.334 . . . 66,020,500
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 352,359.1 12.334 . . . 4,346,122
AETNA ASCENT VARIABLE PORTFOLIO:
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 207,121.3 10.276 . . . 2,128,380
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 15,054.8 10.571 . . . 159,137
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 23,050.1 10.568 . . . 243,591
AETNA CROSSROADS VARIABLE PORTFOLIO:
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 82,288.3 10.257 . . . 844,001
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 20,034.7 10.499 . . . 210,344
AETNA LEGACY VARIABLE PORTFOLIO:
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 49,816.2 10.244 . . . 510,322
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 14,669.0 10.291 . . . 150,957
<PAGE>
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 7,794.0 10.289 . . . 80,190
ALGER AMERICAN FUND - ALGER AMERICAN GROWTH PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 300,668.3 12.329 3,706,940
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 2,604.6 10.926 28,458
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 900,374.2 10.703 9,636,266
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 12,282.5 11.993 147,301
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 106,837.1 11.989 1,280,892
ALGER AMERICAN FUND - ALGER AMERICAN SMALL
CAPITALIZATION PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 1,504,931.4 14.758 . . . 22,209,777
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 22,310.0 14.683 . . . 327,577
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 12,224,797.0 14.663 . . . 179,252,358
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 2,642.4 15.364 . . . 40,598
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 93,490.2 14.693 . . . 1,373,642
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 817,928.7 14.663 . . . 11,993,299
CALVERT RESPONSIBLY INVESTED BALANCED PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 843,014.2 17.340 . . . 14,617,867
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 13,286.2 13.427 . . . 178,391
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 792,704.8 13.090 . . . 10,376,353
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 3,968.3 11.894 . . . 47,198
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND -
EQUITY-INCOME PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 332,546.4 10.978 3,650,694
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 11.7 10.444 . . . 122
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 693,545.6 10.482 . . . 7,269,974
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 124,016.9 13.135 . . . 1,628,943
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 570,587.0 13.117 . . . 7,484,534
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND -
GROWTH PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 2,213.2 10.675 23,626
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 835.2 10.664 . . . 8,906
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 594,816.4 10.537 . . . 6,267,336
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 40,606.9 10.675 . . . 595,888
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 459,426.5 10.655 . . . 6,732,718
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND -
INDEX 500 PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 175,397.2 11.121 . . . 1,950,592
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND -
OVERSEAS PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 70.2 10.019 703
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 101,761.6 9.787 . . . 995,916
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 874.2 10.096 . . . 8,826
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 160,142.6 10.083 . . . 1,614,640
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND II -
ASSET MANAGER PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 1,305,399.2 10.544 . . . 13,764,129
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND II -
CONTRAFUND PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 331,883.3 11.770 3,906,266
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 2,472.5 10.481 . . . 25,916
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 886,810.8 10.413 . . . 9,234,447
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 2,484.9 11.704 . . . 29,083
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 73,802.0 11.700 . . . 863,457
FRANKLIN GOVERNMENT SECURITIES TRUST:
QUALIFIED III. . . . . . . . . . . . . . . . . . . . . . . . . 806,356.7 15.989 . . . 12,892,838
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 14,730.6 11.593 . . . 170,777
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 541,591.0 11.410 . . . 6,179,550
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 5,035.5 10.758 . . . 54,171
JANUS ASPEN SERIES - AGGRESSIVE GROWTH PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 1,119,506.3 14.567 . . . 16,307,849
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 10,435.6 12.650 . . . 132,013
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 3,940,231.1 12.670 . . . 49,923,004
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 597.3 12.669 . . . 7,567
<PAGE>
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 24,531.4 12.236 . . . 300,171
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 80,660.9 12.231 . . . 986,578
JANUS ASPEN SERIES - BALANCED PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 58.1 10.224 . . . 594
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 18.2 10.218 . . . 186
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 30,143.4 10.221 . . . 308,082
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 23,268.1 10.605 . . . 246,760
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 9,382.9 10.608 . . . 99,537
JANUS ASPEN SERIES - FLEXIBLE INCOME PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 3,893.6 11.543 . . . 44,944
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 267.2 11.480 . . . 3,067
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 210,680.8 11.498 . . . 2,422,397
JANUS ASPEN SERIES - GROWTH PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 64,645.2 11.374 . . . 735,274
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 93,870.9 10.394 . . . 975,663
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 3,032.2 11.120 . . . 33,717
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 37,656.9 11.116 . . . 418,594
JANUS ASPEN SERIES - SHORT-TERM BOND PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 15,096.1 10.170 153,527
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 17,444.0 10.102 . . . 176,213
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 1,626.4 10.065 . . . 16,370
JANUS ASPEN SERIES - WORLDWIDE GROWTH PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 169,737.8 11.577 1,965,054
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 5,295.6 10.433 . . . 55,247
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 330,040.7 10.356 . . . 3,417,996
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 22,629.4 11.632 . . . 263,216
LEXINGTON EMERGING MARKETS FUND:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 275,407.2 8.611 . . . 2,371,531
LEXINGTON NATURAL RESOURCES TRUST:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 520,924.4 10.524 . . . 5,482,208
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 7,487.1 10.496 . . . 87,771
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 771,218.4 10.154 . . . 7,830,952
NEUBERGER & BERMAN ADVISERS
MANAGEMENT TRUST- GROWTH PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 2,343,819.7 18.146 . . . 42,530,953
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 31,846.9 14.961 . . . 476,467
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 2,974,549.1 14.941 . . . 44,441,840
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 5,395.0 12.847 . . . 69,308
SCUDDER VARIABLE LIFE INVESTMENT FUND-
INTERNATIONAL PORTFOLIO:
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 3,913,397.5 14.551 . . . 56,943,847
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 34,201.1 13.848 . . . 473,616
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 7,228,036.2 13.966 . . . 100,947,750
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 11,114.7 11.769 . . . 130,812
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 29,876.7 13.992 . . . 418,039
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 392,841.7 13.966 . . . 5,486,481
TCI PORTFOLIOS, INC. - TCI GROWTH:
Qualified III *. . . . . . . . . . . . . . . . . . . . . . . . 5,588,787.5 13.782 . . . 77,023,820
Qualified III. . . . . . . . . . . . . . . . . . . . . . . . . 1,844,058.5 15.063 . . . 27,777,053
Qualified V. . . . . . . . . . . . . . . . . . . . . . . . . . 21,142.9 15.823 . . . 334,547
Qualified VI . . . . . . . . . . . . . . . . . . . . . . . . . 20,016,041.2 15.897 . . . 318,193,424
Qualified VII. . . . . . . . . . . . . . . . . . . . . . . . . 44,877.1 13.380 . . . 600,465
Qualified VIII . . . . . . . . . . . . . . . . . . . . . . . . 7,270.0 13.411 . . . 97,500
Qualified IX . . . . . . . . . . . . . . . . . . . . . . . . . 1,275.3 13.104 . . . 16,711
Qualified X (1.15) . . . . . . . . . . . . . . . . . . . . . . 39,615.9 15.927 . . . 630,951
Qualified X (1.25) . . . . . . . . . . . . . . . . . . . . . . 376,142.6 15.897 . . . 5,979,510
Reserves for annuity contracts in payment period (Note 1). . . . . . . . . . . . . . . . . . . . . . . . . . 145,454,818
--------------
$6,262,371,287
--------------
--------------
</TABLE>
*Applies only to participants of the Opportunity Plus program and Multiple
Options Portfolio.
See Notes to Financial Statements.
<PAGE>
VARIABLE ANNUITY ACCOUNT C
STATEMENT OF OPERATIONS -NINE-MONTH PERIOD ENDED SEPTEMBER 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Dividends: (Notes 1 and 3)
Aetna Variable Fund.......................................................... $139,928,530
Aetna Income Shares.......................................................... 8,498,996
Aetna Investment Advisers Fund, Inc.......................................... 29,305,516
Aetna GET Fund, Series B..................................................... 889,913
Fidelity Investments Variable Insurance Products Fund - Equity-Income
Portfolio.................................................................. 237,430
Fidelity Investments Variable Insurance Products Fund - Growth
Portfolio.................................................................. 10,256
Fidelity Investments Variable Insurance Products Fund - Overseas
Portfolio.................................................................. 5,145
Fidelity Investments Variable Insurance Products Fund II - Asset
Manager Portfolio.......................................................... 259,914
Franklin Government Securities Trust......................................... 1,061,449
Janus Aspen Series - Aggressive Growth Portfolio............................. 477,323
Janus Aspen Series - Balanced Portfolio...................................... 316
Janus Aspen Series - Flexible Income Portfolio............................... 51,578
Janus Aspen Series - Growth Portfolio........................................ 1,184
Janus Aspen Series - Short-Term Bond Portfolio............................... 1,104
Janus Aspen Series - Worldwide Growth Portfolio.............................. 347
Neuberger & Berman Advisers Management Trust - Growth Portfolio.............. 1,779,523
Scudder Variable Life Investment Fund - International Portfolio.............. 670,719
TCI Portfolios, Inc. - TCI Growth............................................ 339,221
-----------------
Total investment income.................................................... 183,518,463
Valuation period deductions (Note 2)........................................... (50,893,041)
-----------------
Net investment income.......................................................... 132,625,422
-----------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Realized gain on sales of investments: (Notes 1 and 4)
Proceeds from sales.......................................................... 240,242,871
----------------
Cost of investments sold..................................................... 186,672,759
----------------
Net realized gain.......................................................... 53,570,112
Unrealized gain on investments:
Beginning of period.......................................................... 73,479,233
End of period................................................................ 1,037,168,713
----------------
Net unrealized gain........................................................ 963,689,480
-----------------
Net realized and unrealized gain on investments................................ 1,017,259,592
-----------------
Increase in net assets resulting from operations............................... $1,149,885,014
-----------------
-----------------
</TABLE>
See Notes to Financial Statements.
<PAGE>
VARIABLE ANNUITY ACCOUNT C
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE NINE-MONTH
PERIOD ENDED
SEPTEMBER 30, 1995 YEAR ENDED
(Unaudited) DECEMBER 31, 1994
----------------- -----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income.............................................. $132,625,422 $476,196,420
Net realized and unrealized gain (loss) on investment.............. 1,017,259,592 (581,812,453)
---------------- -----------------
Increase (decrease) in net assets resulting from operations...... 1,149,885,014 (105,616,033)
---------------- -----------------
FROM UNIT TRANSACTIONS:
Variable annuity contract purchase payments........................ 555,815,604 711,565,372
Sales and administrative charges deducted by the Company........... (75,053) (137,737)
---------------- -----------------
Net variable annuity contract purchase payments.................... 555,740,551 711,427,635
Transfers from the Company for mortality guarantee adjustments..... 1,556,886 1,880,350
Transfers to the Company's fixed account options................... (79,212,021) (56,920,532)
Transfers to other variable annuity accounts....................... 0 (23,284,415)
Redemptions by contract holders.................................... (218,671,511) (269,542,942)
Annuity payments................................................... (9,850,473) (11,189,149)
Other.............................................................. 611,050 1,452,959
---------------- -----------------
Increase in net assets from unit transactions.................... 250,174,482 353,823,906
---------------- -----------------
Change in net assets............................................... 1,400,059,496 248,207,873
NET ASSETS:
Beginning of period................................................ 4,862,311,791 4,614,103,918
---------------- -----------------
End of period...................................................... $6,262,371,287 $4,862,311,791
---------------- -----------------
---------------- -----------------
</TABLE>
See Notes to Financial Statements.
<PAGE>
VARIABLE ANNUITY ACCOUNT C
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Variable Annuity Account C ("Account") is registered under the Investment
Company Act of 1940 as a unit investment trust. The Account is sold
exclusively for use with annuity contracts that are qualified under the
Internal Revenue Code of 1986, as amended.
The accompanying financial statements of the Account have been prepared in
accordance with generally accepted accounting principles.
a. VALUATION OF INVESTMENTS
Investments in the following Funds are stated at the closing net asset
value per share as determined by each Fund on September 30, 1995:
Aetna Variable Fund
Aetna Income Shares
Aetna Variable Encore Fund
Aetna Investment Advisers Fund, Inc.
Aetna GET Fund, Series B
Aetna Ascent Variable Portfolio
Aetna Crossroads Variable Portfolio
Aetna Legacy Variable Portfolio
Alger American Fund:
- Alger American Growth Portfolio
- Alger American Small Capitalization Portfolio
Calvert Responsibly Invested Balanced Portfolio
Fidelity Investments Variable Insurance Products Fund:
- Equity-Income Portfolio
- Growth Portfolio
- Overseas Portfolio
Fidelity Investments Variable Insurance Products Fund II:
- Asset Manager Portfolio
- Contrafund Portfolio
- Index 500 Portfolio
Franklin Government Securities Trust
Janus Aspen Series:
- Aggressive Growth Portfolio
- Balanced Portfolio
- Flexible Income Portfolio
- Growth Portfolio
- Short-Term Bond Portfolio
- Worldwide Growth Portfolio
Lexington:
- Emerging Markets Fund
- Natural Resources Trust
Neuberger & Berman Advisers Management Trust -
Growth Portfolio
Scudder Variable Life Investment Fund - International Portfolio
TCI Portfolios, Inc . - TCI Growth
b. OTHER
Investment transactions are accounted for on a trade-date basis and
dividend income is recorded on the ex-dividend date. The cost of
investments sold is determined by specific identification.
c. FEDERAL INCOME TAXES
The operations of Variable Annuity Account C form a part of, and are taxed
with, the total operations of Aetna Life Insurance and Annuity Company
("Company") which is taxed as a life insurance company under the Internal
Revenue Code of 1986, as amended.
d. ANNUITY RESERVES
Annuity reserves are computed for currently payable contracts according to
the Progressive Annuity, Individual Annuity Mortality, and Group Annuity
Mortality tables using various assumed interest rates not to exceed seven
percent.
<PAGE>
VARIABLE ANNUITY ACCOUNT C
NOTES TO FINANCIAL STATEMENTS (continued)
Charges to annuity reserves for mortality and expense risk experience are
reimbursed to the Company if the reserves required are less than originally
estimated. If additional reserves are required, the Company reimburses the
Account.
2. VALUATION PERIOD DEDUCTIONS
Deductions by the Account for mortality and expense risk charges are made
in accordance with the terms of the contracts and are paid to the Company.
3. DIVIDEND INCOME
On an annual basis the Funds distribute substantially all of their taxable
income and realized capital gains to their shareholders. Distributions to
the Account are automatically reinvested in shares of the Funds. The
Account's proportionate share of the Funds' undistributed net investment
income and accumulated net realized gain (loss) on investments is included
in net unrealized gain in the Statement of Operations.
4. PURCHASES AND SALES OF INVESTMENTS
The cost of purchases and proceeds from sales of investments other than
short-term investments for the year ended September 30, 1995 aggregated
$623,042,775 and $240,242,871, respectively.
<PAGE>
<PAGE>
<PAGE>
CONSOLIDATED FINANCIAL STATEMENTS
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
INDEX
PAGE
----
Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . F-2
Consolidated Financial Statements:
Consolidated Statements of Income for the Years Ended December 31, 1994,
1993, and 1992. . . . . . . . . . . . . . . . . . . . . . . . . . . . . F-3
Consolidated Balance Sheets as of December 31, 1994 and 1993 . . . . . . F-4
Consolidated Statements of Changes in Shareholder's Equity for the
Years Ended December 31, 1994, 1993 and 1992. . . . . . . . . . . . . . F-5
Consolidated Statements of Cash Flows for the Years Ended December 31,
1994, 1993 and 1992 . . . . . . . . . . . . . . . . . . . . . . . . . . F-6
Notes to Consolidated Financial Statements . . . . . . . . . . . . . . . . F-7
Consolidated Financial Statements:
Unaudited Consolidated Statements of Income for the Nine-Month Period
Ended September 30, 1995 and 1994 . . . . . . . . . . . . . . . . . . . F-26
Unaudited Consolidated Balance Sheets as of September 30, 1995 . . . . . F-27
Unaudited Consolidated Statements of Changes in Shareholder's Equity
for the Nine-Month Period Ended September 30, 1995 and 1994 . . . . . . F-28
Unaudited Consolidated Statements of Cash Flows for the Nine-Month
Period Ended September 30, 1995 and 1994. . . . . . . . . . . . . . . . F-29
Condensed Notes to Consolidated Financial Statements . . . . . . . . . . . F-30
F-1
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Shareholder and Board of Directors
Aetna Life Insurance and Annuity Company:
We have audited the accompanying consolidated balance sheets of Aetna Life
Insurance and Annuity Company and Subsidiaries as of December 31, 1994 and 1993,
and the related consolidated statements of income, changes in shareholder's
equity and cash flows for each of the years in the three-year period ended
December 31, 1994. These consolidated financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Aetna Life Insurance
and Annuity Company and Subsidiaries at December 31, 1994 and 1993, and the
results of their operations and their cash flows for each of the years in the
three-year period ended December 31, 1994, in conformity with generally accepted
accounting principles.
As discussed in Note 1 to the consolidated financial statements, in 1993 the
Company changed its methods of accounting for certain investments in debt and
equity securities and reinsurance contracts. In 1992, the Company changed its
method of accounting for income taxes and postretirement benefits other than
pensions.
KPMG Peat Marwick LLP
Hartford, Connecticut
February 7, 1995
F-2
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
CONSOLIDATED STATEMENTS OF INCOME
(MILLIONS)
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-----------------------------------------------------
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Revenue:
Premiums . . . . . . . . . . . . . . . . . . . $ 124.2 $ 82.1 $ 72.5
Charges assessed against policyholders . . . . 279.0 251.5 235.4
Net investment income. . . . . . . . . . . . . 917.2 911.9 848.1
Net realized capital gains . . . . . . . . . . 1.5 9.5 13.4
Other income . . . . . . . . . . . . . . . . . 10.3 9.5 6.7
--------- --------- ---------
Total revenue. . . . . . . . . . . . . . 1,332.2 1,264.5 1,176.1
--------- --------- ---------
Benefits and expenses:
Current and future benefits. . . . . . . . . . 852.4 806.4 761.6
Operating expenses . . . . . . . . . . . . . . 227.2 201.3 213.5
Amortization of deferred policy
acquisition costs. . . . . . . . . . . . . . 36.1 37.7 32.9
--------- --------- ---------
Total benefits and expenses. . . . . . . . . 1,115.7 1,045.4 1,008.0
--------- --------- ---------
Income before federal income taxes and
cumulative effect adjustments. . . . . . . . . 216.5 219.1 168.1
Federal income taxes . . . . . . . . . . . . . 71.2 76.2 54.9
--------- --------- ---------
Income before cumulative effect adjustments. . . 145.3 142.9 113.2
Cumulative effect adjustments, net of tax:
Change in accounting for income taxes. . . . . - - 22.8
Change in accounting for postretirement
benefits other than pensions. . . . . . . . . - - (13.2)
--------- --------- ---------
Net income . . . . . . . . . . . . . . . . . . . $ 145.3 $ 142.9 $ 122.8
--------- --------- ---------
--------- --------- ---------
</TABLE>
See Notes to Consolidated Financial Statements.
F-3
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
CONSOLIDATED BALANCE SHEETS
(MILLIONS)
<TABLE>
<CAPTION>
DECEMBER 31,
----------------------------
1994 1993
---- ----
<S> <C> <C>
ASSETS
Investments:
Debt securities, available for sale:
(amortized cost: $10,577.8 and $9,783.9) . . . . $ 10,191.4 $ 10,531.0
Equity securities, available for sale:
Non-redeemable preferred stock (cost:$43.3
and $38.3) . . . . . . . . . . . . . . . . . . . 47.2 45.9
Investment in affiliated mutual funds
(cost: $187.2 and $122.4). . . . . . . . . . . . 181.9 126.7
Short-term investments. . . . . . . . . . . . . . 98.0 22.6
Mortgage loans. . . . . . . . . . . . . . . . . . 9.9 10.1
Policy loans. . . . . . . . . . . . . . . . . . . 248.7 202.7
Limited partnership . . . . . . . . . . . . . . . 24.4 -
----------- -----------
Total investments. . . . . . . . . . . . . . . 10,801.5 10,939.0
Cash and cash equivalents. . . . . . . . . . . . . 623.3 536.1
Accrued investment income. . . . . . . . . . . . . 142.2 124.7
Premiums due and other receivables . . . . . . . . 75.8 67.0
Deferred policy acquisition costs. . . . . . . . . 1,172.0 1,061.0
Reinsurance loan to affiliate. . . . . . . . . . . 690.3 711.0
Other assets . . . . . . . . . . . . . . . . . . . 15.9 12.6
Separate Accounts assets . . . . . . . . . . . . . 7,420.8 6,684.3
----------- -----------
Total assets . . . . . . . . . . . . . . . . . $ 20,941.8 $ 20,135.7
----------- -----------
----------- -----------
LIABILITIES AND SHAREHOLDER'S EQUITY
Liabilities:
Future policy benefits. . . . . . . . . . . . . . $ 2,968.1 $ 2,741.8
Unpaid claims and claim expenses. . . . . . . . . 23.8 27.2
Policyholders' funds left with the Company. . . . 8,901.6 9,003.9
----------- -----------
Total insurance liabilities. . . . . . . . . . 11,893.5 11,698.7
Other liabilities . . . . . . . . . . . . . . . . 302.1 229.7
Federal income taxes:
Current . . . . . . . . . . . . . . . . . . . . 3.4 40.6
Deferred. . . . . . . . . . . . . . . . . . . . 233.5 161.5
Separate Accounts liabilities . . . . . . . . . . 7,420.8 6,684.3
----------- -----------
Total liabilities. . . . . . . . . . . . . . . 19,853.3 18,889.0
----------- -----------
Shareholder's equity:
Common capital stock, par value $50 (100,000
shares authorized; 55,000 shares issued and
outstanding) . . . . . . . . . . . . . . . . . . 2.8 2.8
Paid-in capital . . . . . . . . . . . . . . . . . 407.6 407.6
Net unrealized capital gains (losses) . . . . . . (189.0) 114.5
Retained earnings . . . . . . . . . . . . . . . . 867.1 721.8
----------- -----------
Total shareholder's equity . . . . . . . . . . 1,088.5 1,246.7
----------- -----------
Total liabilities and shareholder's equity . . $ 20,941.8 $ 20,135.7
----------- -----------
----------- -----------
</TABLE>
See Notes to Consolidated Financial Statements.
F-4
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDER'S EQUITY
(MILLIONS)
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
---------------------------------------
1994 1993 1992
---- ---- ----
<S> <C> <C> <C>
Shareholder's equity, beginning. . . . . $1,246.7 $ 990.1 $ 867.4
Net change in unrealized capital
gains (losses) . . . . . . . . . . . . . (303.5) 113.7 (0.1)
Net income . . . . . . . . . . . . . . . 145.3 142.9 122.8
---------- ---------- ----------
Shareholder's equity, end of year. . . . $1,088.5 $1,246.7 $ 990.1
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
See Notes to Consolidated Financial Statements.
F-5
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(MILLIONS)
<TABLE>
<CAPTION>
YEARS ENDED DECEMBER 31,
-----------------------------------------
1994 1993 1992
----- ---- ----
<S> <C> <C> <C>
Cash Flows from Operating Activities:
Net income. . . . . . . . . . . . . . . . . . . . . . . . . . $ 145.3 $ 142.9 $ 122.8
Cumulative effect adjustments . . . . . . . . . . . . . . . . - - (9.6)
Increase in accrued investment income . . . . . . . . . . . . (17.5) (11.1) (8.7)
(Increase) decrease in premiums due and other receivables . . 1.3 (5.6) (19.9)
Increase in policy loans. . . . . . . . . . . . . . . . . . . (46.0) (36.4) (32.4)
Increase in deferred policy acquisition costs . . . . . . . . (96.5) (60.5) (60.8)
Decrease in reinsurance loan to affiliate . . . . . . . . . . 27.8 31.8 37.8
Net increase in universal life account balances . . . . . . . 164.7 126.4 130.8
Increase in other insurance reserve liabilities . . . . . . . 65.7 86.1 20.5
Net increase in other liabilities and other assets. . . . . . 53.9 7.0 20.2
Decrease in federal income taxes. . . . . . . . . . . . . . . (11.7) (3.7) (11.8)
Net accretion of discount on bonds. . . . . . . . . . . . . . (77.9) (88.1) (75.2)
Net realized capital gains. . . . . . . . . . . . . . . . . . (1.5) (9.5) (13.4)
Other, net. . . . . . . . . . . . . . . . . . . . . . . . . . (1.0) 0.2 (0.2)
----------- ----------- -----------
Net cash provided by operating activities. . . . . . . . . 206.6 179.5 100.1
----------- ----------- -----------
Cash Flows from Investing Activities:
Proceeds from sales of :
Debt securities available for sale . . . . . . . . . . . . 3,593.8 473.9 543.3
Equity securities. . . . . . . . . . . . . . . . . . . . . 93.1 89.6 50.6
Investment maturities and collections of:
Debt securities available for sale . . . . . . . . . . . . 1,289.2 2,133.3 1,179.2
Short-term investments . . . . . . . . . . . . . . . . . . 30.4 19.7 5.0
Cost of investment purchases in:
Debt securities. . . . . . . . . . . . . . . . . . . . . . (5,621.4) (3,669.2) (2,612.2)
Equity securities. . . . . . . . . . . . . . . . . . . . . (162.5) (157.5) (63.0)
Short-term investments . . . . . . . . . . . . . . . . . . (106.1) (41.3) (5.0)
Limited partnership. . . . . . . . . . . . . . . . . . . . (25.0) - -
----------- ----------- -----------
Net cash used for investing activities. . . . . . . . . (908.5) (1,151.5) (902.1)
----------- ----------- -----------
Cash Flows from Financing Activities:
Deposits and interest credited for investment contracts . . . 1,737.8 2,117.8 1,619.6
Withdrawals of investment contracts . . . . . . . . . . . . . (948.7) (1,000.3) (767.7)
----------- ----------- -----------
Net cash provided by financing activities. . . . . . . . . 789.1 1,117.5 851.9
----------- ----------- -----------
Net increase in cash and cash equivalents. . . . . . . . . . . . . 87.2 145.5 49.9
Cash and cash equivalents, beginning of year . . . . . . . . . . . 536.1 390.6 340.7
----------- ----------- -----------
Cash and cash equivalents, end of year . . . . . . . . . . . . . . $ 623.3 $ 536.1 $ 390.6
----------- ----------- -----------
----------- ----------- -----------
Supplemental cash flow information:
Income taxes paid, net . . . . . . . . . . . . . . . . . . . . . $ 82.6 $ 79.9 $ 54.0
----------- ----------- -----------
----------- ----------- -----------
</TABLE>
See Notes to Consolidated Financial Statements.
F-6
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1994, 1993, AND 1992
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The consolidated financial statements include Aetna Life Insurance and Annuity
Company and its wholly owned subsidiaries, Aetna Insurance Company of America,
Systematized Benefits Administrators, Inc., Aetna Private Capital, Inc. and
Aetna Investment Services, Inc. (collectively, the "Company"). Aetna Life
Insurance and Annuity Company is a wholly owned subsidiary of Aetna Life and
Casualty Company ("Aetna").
The consolidated financial statements have been prepared in conformity with
generally accepted accounting principles. Intercompany transactions have been
eliminated. Certain reclassifications have been made to 1993 and 1992 financial
information to conform to the 1994 presentation.
The Company offers a wide range of life insurance products and annuity contracts
with variable and fixed accumulation and payout options. The Company also
provides investment advisory and other services to affiliated mutual funds.
ACCOUNTING CHANGES
Accounting for Certain Investments in Debt and Equity Securities
On December 31, 1993, the Company adopted Financial Accounting Standard ("FAS")
No. 115, Accounting for Certain Investments in Debt and Equity Securities, which
requires the classification of debt securities into three categories: "held to
maturity", which are carried at amortized cost; "available for sale", which are
carried at fair value with changes in fair value recognized as a component of
shareholder's equity; and "trading", which are carried at fair value with
immediate recognition in income of changes in fair value.
Initial adoption of this standard resulted in a net increase of $106.8 million,
net of taxes of $57.5 million, to net unrealized gains in shareholder's equity.
These amounts exclude gains and losses allocable to experience-rated (including
universal life) contractholders. Adoption of FAS No. 115 did not have a
material effect on deferred policy acquisition costs.
Accounting and Reporting for Reinsurance of Short-Duration and Long-
Duration Contracts
During 1993, the Company adopted FAS No. 113, Accounting and Reporting for
Reinsurance of Short-Duration and Long-Duration Contracts, retroactive to
January 1, 1993. Reinsurance recoverables (previously reported as a reduction
in insurance reserve liabilities) and reinsurance receivables and ceded unearned
premiums are included in premiums due and other receivables. The adoption of
FAS No. 113 did not have a material impact on the Company's 1993 Consolidated
Financial Statements.
Accounting for Income Taxes
The Company adopted FAS No. 109, Accounting for Income Taxes, in 1992,
retroactive to January 1, 1992. A cumulative effect benefit of $22.8 million
related to the adoption of this standard is reflected in the 1992 Consolidated
Statement of Income.
F-7
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Postretirement Benefits Other Than Pensions
FAS No. 106, Employers' Accounting for Postretirement Benefits Other Than
Pensions, required that employers accrue the cost and recognize the liability
for providing non-pension benefits to retired employees and agents. Aetna and
the Company implemented FAS No. 106 in 1992, retroactive to January 1, 1992 on
the immediate recognition basis. The cumulative effect charge for all Aetna
employees was reflected in Aetna's 1992 Statement of Income. A cumulative
effect charge of $13.2 million, net of taxes of $7.1 million, related to the
adoption of this standard for Company agents is reflected in the Company's 1992
Consolidated Statement of Income.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents include cash on hand, money market instruments and
other debt issues with a maturity of ninety days or less when purchased.
INVESTMENTS
Debt Securities
At December 31, 1994 and 1993, all of the Company's debt securities are
classified as available for sale and carried at fair value. These securities are
written down (as realized losses) for other than temporary decline in value.
Unrealized gains and losses related to these securities, after deducting amounts
allocable to experience-rated contractholders and related taxes, are reflected
in shareholder's equity.
Fair values for debt securities are based on quoted market prices or dealer
quotations. Where quoted market prices or dealer quotations are not available,
fair values are measured utilizing quoted market prices for similar securities
or by using discounted cash flow methods. Cost for mortgage-backed securities
is adjusted for unamortized premiums and discounts, which are amortized using
the interest method over the estimated remaining term of the securities,
adjusted for anticipated prepayments.
Purchases and sales of debt securities are recorded on the trade date.
Equity Securities
Equity securities are classified as available for sale and carried at fair value
based on quoted market prices or dealer quotations. Equity securities are
written down (as realized losses) for other than temporary declines in value.
Unrealized gains and losses related to such securities are reflected in
shareholder's equity. Purchases and sales are recorded on the trade date.
The investment in affiliated mutual funds represents an investment in the Aetna
Series Fund, Inc., a retail mutual fund which has been seeded by the Company,
and is carried at fair value.
Mortgage Loans and Policy Loans
Mortgage loans and policy loans are carried at unpaid principal balances net of
valuation reserves, which approximates fair value, and are generally secured.
Purchases and sales of mortgage loans are recorded on the closing date.
F-8
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Limited Partnership
The Company's limited partnership investment is carried at the amount invested
plus the Company's share of undistributed operating results and unrealized gains
(losses), which approximates fair value.
Short-Term Investments
Short-term investments, consisting primarily of money market instruments and
other debt issues purchased with an original maturity of over ninety days and
less than one year, are considered available for sale and are carried at fair
value, which approximates amortized cost.
DEFERRED POLICY ACQUISITION COSTS
Certain costs of acquiring insurance business have been deferred. These costs,
all of which vary with and are primarily related to the production of new
business, consist principally of commissions, certain expenses of underwriting
and issuing contracts and certain agency expenses. For fixed ordinary life
contracts, such costs are amortized over expected premium-paying periods. For
universal life and certain annuity contracts, such costs are amortized in
proportion to estimated gross profits and adjusted to reflect actual gross
profits. These costs are amortized over twenty years for annuity pension
contracts, and over the contract period for universal life contracts. Deferred
policy acquisition costs are written off to the extent that it is determined
that future policy premiums and investment income or gross profits would not be
adequate to cover related losses and expenses.
INSURANCE RESERVE LIABILITIES
The Company's liabilities include reserves related to fixed ordinary life, fixed
universal life and fixed annuity contracts. Reserves for future policy benefits
for fixed ordinary life contracts are computed on the basis of assumed
investment yield, assumed mortality, withdrawals and expenses, including a
margin for adverse deviation, which generally vary by plan, year of issue and
policy duration. Reserve interest rates range from 2.25% to 10.50%. Assumed
investment yield is based on the Company's experience. Mortality and withdrawal
rate assumptions are based on relevant Aetna experience and are periodically
reviewed against both industry standards and experience.
Reserves for fixed universal life (included in Future Policy Benefits) and fixed
deferred annuity contracts (included in Policyholders' Funds Left With the
Company) are equal to the fund value. The fund value is equal to cumulative
deposits less charges plus credited interest thereon, without reduction for
possible future penalties assessed on premature withdrawal. For guaranteed
interest options, the interest credited ranged from 4.00% to 5.85% in 1994 and
4.00% to 7.68% in 1993. For all other fixed options, the interest credited
ranged from 5.00% to 7.50% in 1994 and 5.00% to 9.25% in 1993.
Reserves for fixed annuity contracts in the annuity period and for future
amounts due under settlement options are computed actuarially using the
Progressive Annuity Table (modified), the Annuity Table for 1949, the 1971
Individual Annuity Mortality Table, the 1971 Group Annuity Mortality Table, the
1983 Individual Annuity Mortality Table and the 1983 Group Annuity Mortality
Table, at assumed interest rates ranging from 3.5% to 9.5%. Reserves relating
to contracts with life contingencies are included in Future Policy Benefits.
For other contracts, the reserves are reflected in Policyholders' Funds Left
With the Company.
F-9
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Unpaid claims for all lines of insurance include benefits for reported losses
and estimates of benefits for losses incurred but not reported.
PREMIUMS, CHARGES ASSESSED AGAINST POLICYHOLDERS, BENEFITS AND EXPENSES
Premiums are recorded as revenue when due for fixed ordinary life contracts.
Charges assessed against policyholders' funds for cost of insurance, surrender
charges, actuarial margin and other fees are recorded as revenue for universal
life and certain annuity contracts. Policy benefits and expenses are recorded
in relation to the associated premiums or gross profit so as to result in
recognition of profits over the expected lives of the contracts.
SEPARATE ACCOUNTS
Assets held under variable universal life, variable life and variable annuity
contracts are segregated in Separate Accounts and are invested, as designated by
the contractholder or participant under a contract, in shares of Aetna Variable
Fund, Aetna Income Shares, Aetna Variable Encore Fund, Aetna Investment Advisers
Fund, Inc., Aetna GET Fund, or The Aetna Series Fund Inc., which are managed by
the Company or other selected mutual funds not managed by the Company.
Separate Accounts assets and liabilities are carried at fair value except for
those relating to a guaranteed interest option which is offered through a
Separate Account. The assets of the Separate Account supporting the guaranteed
interest option are carried at an amortized cost of $149.7 million for 1994
(fair value $146.3 million) and $31.2 million for 1993 (fair value $33.3
million), since the Company bears the investment risk where the contract is held
to maturity. Reserves relating to the guaranteed interest option are maintained
at fund value and reflect interest credited at rates ranging from 4.5% to 8.38%
in 1994 and from 4% to 9.45% in 1993. Separate Accounts assets and liabilities
are shown as separate captions in the Consolidated Balance Sheets. Deposits,
investment income and net realized and unrealized capital gains (losses) of the
Separate Accounts are not reflected in the Consolidated Statements of Income
(with the exception of realized capital gains (losses) on the sale of assets
supporting the guaranteed interest option). The Consolidated Statements of Cash
Flows do not reflect investment activity of the Separate Accounts.
FEDERAL INCOME TAXES
The Company is included in the consolidated federal income tax return of Aetna.
The Company is taxed at regular corporate rates after adjusting income reported
for financial statement purposes for certain items. Deferred income tax
benefits result from changes during the year in cumulative temporary differences
between the tax basis and book basis of assets and liabilities.
F-10
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
2. INVESTMENTS
Investments in debt securities available for sale as of December 31, 1994 were
as follows:
<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
---- ----- ------ -----
(millions)
<S> <C> <C> <C> <C>
U.S. Treasury securities and obligations of
U.S government agencies and corporations . . $ 1,396.1 $ 2.0 $ 84.2 $ 1,313.9
Obligations of states and political
subdivisions . . . . . . . . . . . . . . . . 37.9 1.2 - 39.1
U.S. Corporate securities:
Financial. . . . . . . . . . . . . . . . . 2,216.9 3.8 109.4 2,111.3
Utilities. . . . . . . . . . . . . . . . . 100.1 - 7.9 92.2
Other. . . . . . . . . . . . . . . . . . . 1,344.3 6.0 67.9 1,282.4
---------- --------- --------- ----------
Total U.S. Corporate securities. . . . . . . 3,661.3 9.8 185.2 3,485.9
Foreign securities:
Government . . . . . . . . . . . . . . . . 434.4 1.2 33.9 401.7
Financial. . . . . . . . . . . . . . . . . 368.2 1.1 23.0 346.3
Utilities. . . . . . . . . . . . . . . . . 204.4 2.5 9.5 197.4
Other. . . . . . . . . . . . . . . . . . . 46.3 0.8 1.5 45.6
---------- --------- --------- ----------
Total Foreign securities . . . . . . . . . . 1,053.3 5.6 67.9 991.0
Residential mortgage-backed securities:
Residential pass-throughs. . . . . . . . . 627.1 81.5 5.0 703.6
Residential CMOs . . . . . . . . . . . . . 2,671.0 32.9 139.4 2,564.5
---------- --------- --------- ----------
Total Residential mortgage-backed
securities . . . . . . . . . . . . . . . . . 3,298.1 114.4 144.4 3,268.1
Commercial/Multifamily mortgage-backed
securities . . . . . . . . . . . . . . . . . 435.0 0.2 21.3 413.9
---------- --------- --------- ----------
Total Mortgage-backed securities . . . . . 3,733.1 114.6 165.7 3,682.0
Other loan-backed securities . . . . . . . . . 696.1 0.2 16.8 679.5
---------- --------- --------- ----------
Total debt securities available for sale . . . $ 10,577.8 $ 133.4 $ 519.8 $ 10,191.4
---------- --------- --------- ----------
---------- --------- --------- ----------
</TABLE>
F-11
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Investments in debt securities available for sale as of December 31, 1993 were
as follows:
<TABLE>
<CAPTION>
GROSS GROSS
AMORTIZED UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
---- ----- ------ -----
(millions)
<S> <C> <C> <C> <C>
U.S. Treasury securities and obligations of
U.S government agencies and corporations . . . $ 827.2 $ 19.4 $ 6.6 $ 840.4
Obligations of states and political
subdivisions . . . . . . . . . . . . . . . . . 0.5 - - 0.5
U.S. Corporate securities:
Financial . . . . . . . . . . . . . . . . . 983.3 49.2 0.7 1,031.8
Utilities . . . . . . . . . . . . . . . . . 141.2 12.4 - 153.6
Other . . . . . . . . . . . . . . . . . . . 704.3 51.6 2.3 753.6
---------- ---------- ---------- ----------
Total U.S. Corporate securities. . . . . . . . 1,828.8 113.2 3.0 1,939.0
Foreign securities:
Government. . . . . . . . . . . . . . . . . 289.1 31.7 0.5 320.3
Financial . . . . . . . . . . . . . . . . . 365.8 18.5 0.9 383.4
Utilities . . . . . . . . . . . . . . . . . 206.2 28.9 0.1 235.0
Other . . . . . . . . . . . . . . . . . . . 30.4 1.3 0.8 30.9
---------- ---------- ---------- ----------
Total Foreign securities . . . . . . . . . . . 891.5 80.4 2.3 969.6
Residential mortgage-backed securities:
Residential pass-throughs . . . . . . . . . 1,125.0 218.1 1.7 1,341.4
Residential CMOs. . . . . . . . . . . . . . 4,868.7 318.1 1.1 5,185.7
---------- ---------- ---------- ----------
Total Residential mortgage-backed
securities . . . . . . . . . . . . . . . . . . 5,993.7 536.2 2.8 6,527.1
Commercial/Multifamily mortgage-backed
securities . . . . . . . . . . . . . . . . . . 193.0 13.4 0.8 205.6
---------- ---------- ---------- ----------
Total Mortgage-backed securities. . . . . . 6,186.7 549.6 3.6 6,732.7
Other loan-backed securities . . . . . . . . . . 49.2 0.2 0.2 49.2
---------- ---------- ---------- ----------
Total debt securities available for sale . . . . $ 9,783.9 $ 762.8 $ 15.7 $ 10,531.0
---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
</TABLE>
At December 31, 1994 and 1993, net unrealized appreciation (depreciation) of
$(386.4) million and $747.1 million, respectively, on available for sale debt
securities included $(308.6) million and $582.8 million, respectively, related
to experience-rated contractholders, which were not included in shareholder's
equity.
F-12
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The amortized cost and fair value of debt securities for the year ended December
31, 1994 are shown below by contractual maturity. Actual maturities may differ
from contractual maturities because securities may be restructured, called, or
prepaid.
<TABLE>
<CAPTION>
AMORTIZED FAIR
COST VALUE
---- -----
(millions)
<S> <C> <C>
Due to mature:
One year or less . . . . . . . . . . . $ 103.9 $ 103.5
After one year through five years. . . 1,965.6 1,920.0
After five years through ten years . . 2,371.3 2,207.0
After ten years. . . . . . . . . . . . 1,707.8 1,599.4
Mortgage-backed securities . . . . . . 3,733.1 3,682.0
Other loan-backed securities . . . . . 696.1 679.5
--------- ---------
Total. . . . . . . . . . . . . . $10,577.8 $10,191.4
--------- ---------
--------- ---------
</TABLE>
At December 31, 1994 and 1993, debt securities carried at $7.0 million and $7.3
million, respectively, were on deposit as required by regulatory authorities.
The valuation reserve for mortgage loans was $3.1 million and $4.2 million at
December 31, 1994 and 1993, respectively. The carrying value of non-income
producing investments was $0.2 million and $34.3 million at December 31, 1994
and 1993, respectively.
Investments in a single issuer, other than obligations of the U.S. government,
with a carrying value in excess of 10% of the Company's shareholder's equity at
December 31, 1994 are as follows:
<TABLE>
<CAPTION>
AMORTIZED FAIR
DEBT SECURITIES COST VALUE
--------------- ---- -----
(millions)
<S> <C> <C>
General Electric Capital Corporation . . $ 264.9 $252.1
General Motors Corporation . . . . . . . 167.8 161.7
Society National Bank. . . . . . . . . . 152.8 143.7
Ford Motor Company . . . . . . . . . . . 144.7 142.3
Associates Corporation of North America. 132.9 131.1
First Deposit Master Trust 1994-1A . . . 114.9 112.1
</TABLE>
The portfolio of debt securities at December 31, 1994 and 1993 included $318
million and $329 million, respectively, (3% of the debt securities for both
years) of investments that are considered "below investment grade". "Below
investment grade" securities are defined to be securities that carry a rating
below BBB-/Baa3, by Standard & Poors/Moody's Investor Services, respectively.
Of these below investment grade assets, $32 million and $39 million, at December
31, 1994 and 1993, respectively, were investments that were purchased at
investment grade, but whose ratings have since been downgraded.
Included in residential mortgage-back securities are collateralized mortgage
obligations ("CMOs") with carrying values of $2.6 billion and $5.2 billion at
December 31, 1994 and 1993, respectively. The $2.6 billion decline in
F-13
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
CMOs from December 31, 1993 to December 31, 1994 was related primarily to sales
and principal repayments. CMO sales of $1.6 billion resulted in net realized
capital gains of $35 million of which $23 million was allocated to experience-
rated contracts. The Company's CMO exposure was reduced as a result of changes
in their risk and return characteristics and to better diversify the risk
profile of the Company's assets. The principal risks inherent in holding CMOs
are prepayment and extension risks related to dramatic decreases and increases
in interest rates whereby the CMOs would be subject to repayments of principal
earlier or later than originally anticipated. At December 31, 1994 and 1993,
approximately 85% and 93%, respectively, of the Company's CMO holdings consisted
of sequential and planned amortization class ("PAC") debt securities which are
subject to less prepayment and extension risk than other CMO instruments. At
December 31, 1994 and 1993, approximately 82% of the Company's CMO holdings were
collateralized by residential mortgage loans, on which the timely payment of
principal and interest was backed by specified government agencies (e.g., GNMA,
FNMA, FHLMC).
If due to declining interest rates, principal was to be repaid earlier than
originally anticipated, the Company could be affected by a decrease in
investment income due to the reinvestment of these funds at a lower interest
rate. Such prepayments may result in a duration mismatch between assets and
liabilities which could be corrected as cash from prepayments could be
reinvested at an appropriate duration to adjust the mismatch.
Conversely, if due to increasing interest rates, principal was to be repaid
slower than originally anticipated, the Company could be affected by a decrease
in cash flow which reduces the ability to reinvest expected principal repayments
at higher interest rates. Such slower payments may result in a duration
mismatch between assets and liabilities which could be corrected as available
cash flow could be reinvested at an appropriate duration to adjust the mismatch.
At December 31, 1994 and 1993, 4% and 3%, respectively, of the Company's CMO
holdings consisted of interest-only strips (IOs) or principal-only strips (POs).
IOs receive payments of interest and POs receive payments of principal on the
underlying pool of mortgages. The risk inherent in holding POs is extension
risk related to dramatic increases in interest rates whereby the future payments
due on POs could be repaid much slower than originally anticipated. The
extension risks inherent in holding POs, PACs and sequentials was mitigated by
purchasing offsetting positions in IOs. During dramatic increases in interest
rates, IOs would generate more future payments than originally anticipated.
The risk inherent in holding IOs is prepayment risk related to dramatic
decreases in interest rates whereby future IO cash flows could be much less than
originally anticipated and in some cases could be less than the original cost of
the IO. The risks inherent in IOs are mitigated by holding offsetting positions
in PO's, PACs, and sequentials. During dramatic decreases in interest rates
POs, PACs and sequentials would generate future cash flows much quicker than
originally anticipated.
In 1993, due to declining interest rates and prepayments on the underlying pool
of mortgages, the amortized cost on IO's was written down by $85.4 million. IO
writedowns of $4.7 million, net of $80.7 million allocated to experience-rated
contracts, were reflected in 1993 net realized capital gains (losses). In 1994,
due to increasing interest rates, unrealized gains on IO's increased from $0.5
million at December 31, 1993 to $17.8 million at December 31, 1994. Conversely,
unrealized gains on POs decreased from $36.7 million at December 31, 1993 to
$5.3 million at December 31, 1994. 1994 net realized gains (losses) included
net gains of $10.0 million as a result of sales of IOs and POs (including
amounts allocated to experience-rated contractholders).
F-14
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The Company did not use derivative instruments (ie.,futures, forward contracts,
interest swaps, etc.) for hedging or any other purposes in 1994 or 1993.
The Company does hold investments in certain debt and equity securities with
derivative characteristics (ie., including the fact that their market value is
at least partially determined by, among other things, levels of or changes in
interest rates, prepayment rates, equity markets or credit ratings/spreads).
The amortized cost and fair value of these securities, included in the $10.8
billion investment portfolio, as of December 31, 1994 was as follows:
<TABLE>
<CAPTION>
AMORTIZED FAIR
COST VALUE
---- -----
(millions)
<S> <C> <C>
Collateralized mortgage obligations (including
interest-only and principal-only strips). . . . $ 2,671.0 $ 2,564.5
Treasury and agency strips:
Principal . . . . . . . . . . . . . . . . . . . 20.7 21.6
Interest. . . . . . . . . . . . . . . . . . . . 104.2 90.2
Mandatorily convertible preferred stock . . . . . 12.1 11.6
</TABLE>
Investments in available for sale equity securities were as follows:
<TABLE>
<CAPTION>
GROSS GROSS
UNREALIZED UNREALIZED FAIR
COST GAINS LOSSES VALUE
---- ----- ------ -----
(Millions)
<S> <C> <C> <C> <C>
1994
Equity Securities . . . . $ 230.5 $ 6.5 $ 7.9 $ 229.1
------- ------- ------- -------
1993
Equity Securities . . . . $ 160.7 $ 12.0 $ 0.1 $ 172.6
------- ------- ------- -------
</TABLE>
At December 31, 1994 and 1993, 91% of outstanding policy loans had fixed
interest rates. The fixed interest rates for annuity policy loans ranged from
1% to 3% for individual annuity policies in both 1994 and 1993. The fixed
interest rates for individual life policy loans ranged from 5% to 8% in 1994 and
6% to 8% in 1993. The remaining outstanding policy loans had variable interest
rates averaging 8% in 1994 and 1993. Investment income from policy loans was
$11.5 million, $10.8 million and $9.5 million in 1994, 1993 and 1992,
respectively.
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS
At December 31, 1993, the Company had $149.0 million in outstanding forward
commitments to purchase mortgage-backed securities at a specified future date
and at a specified price or yield. These instruments involve elements of market
risk whereby future changes in market prices may make a financial instrument
less valuable. However, the difference between the fair value at which the
commitments can be settled, and the contractual value of these securities, was
immaterial at December 31, 1993. There were no outstanding forward commitments
at December 31, 1994.
There were no material concentrations of off-balance sheet financial instruments
at December 31, 1994 and 1993.
F-15
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
3. CAPITAL GAINS AND LOSSES ON INVESTMENT OPERATIONS
Realized capital gains or losses are the difference between proceeds received
from investments sold or prepaid, and amortized cost. Net realized capital
gains as reflected in the Consolidated Statements of Income are after deductions
for net realized capital gains (losses) allocated to experience-rated contracts
of $(29.1) million, $(54.8) million and $36.1 million for the years ended
December 31, 1994, 1993, and 1992, respectively. Net realized capital gains
(losses) allocated to experience-rated contracts are deferred and subsequently
reflected in credited rates on an amortized basis. Net unamortized gains
(losses), reflected as a component of Policyholders' Funds Left With the
Company, were $(50.7) million and $(16.5) million at the end of December 31,
1994 and 1993, respectively.
Changes to the mortgage loan valuation reserve and writedowns on debt securities
are included in net realized capital gains (losses) and amounted to $1.1 million
and $(98.5) million, of which $0.8 million and $(91.5) million were allocable to
experience-rated contractholders, for the years ended December 31, 1994 and
1993, respectively. There were no changes to the valuation reserve or
writedowns in 1992. The 1993 losses were primarily related to writedowns of
interest-only mortgage-backed securities to their fair value.
Net realized capital gains (losses) on investments, net of amounts allocated to
experience-rated contracts, were as follows:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Debt securities . . . . . . . . . . . . $ 1.0 $ 9.6 $ 12.9
Equity securities . . . . . . . . . . . 0.2 .1 0.5
Mortgage loans. . . . . . . . . . . . . 0.3 (0.2) -
------ ------ ------
Pretax realized capital gains . . . . . $ 1.5 $ 9.5 $ 13.4
------ ------ ------
------ ------ ------
After-tax realized capital gains. . . $ 1.0 $ 6.2 $ 8.8
------ ------ ------
------ ------ ------
</TABLE>
Gross gains of $26.6 million, $33.3 million and $13.9 million and gross losses
of $25.6 million, $23.7 million and $1.0 million were realized from the sales of
investments in debt securities in 1994, 1993 and 1992, respectively.
Changes in unrealized capital gains (losses), excluding changes in unrealized
capital gains (losses) related to experience-rated contracts, for the years
ended December 31, were as follows:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Debt securities . . . . . . . . . . $(242.1) $ 164.3 $ -
Equity securities . . . . . . . . . (13.3) 10.6 (0.1)
Limited partnership . . . . . . . . (1.8) - -
-------- -------- ---------
(257.2) 174.9 (0.1)
Deferred federal income taxes
(See Note 6) . . . . . . . . . . . 46.3 61.2 -
-------- -------- ---------
Net change in unrealized capital
gains (losses) . . . . . . . . . . $(303.5) $ 113.7 $ (0.1)
-------- -------- ---------
-------- -------- ---------
</TABLE>
The net change in unrealized capital gains (losses) on debt securities in 1994
and 1993 resulted from the adoption of FAS No. 115. For the year ended December
31, 1992, debt securities were carried at amortized cost. The unrecorded net
appreciation for debt securities carried at amortized cost (including amounts
allocable to experience-rated contracts) amounted to $612.4 million at December
31, 1992.
F-16
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Net unrealized capital gains (losses) allocable to experience-rated contracts of
$(308.6) million and $582.8 million at December 31, 1994 and 1993, respectively,
are not included in shareholder's equity. These amounts are reflected on the
Consolidated Balance Sheet in policyholders' funds left with the Company.
Shareholder's equity included the following unrealized capital gains (losses),
which are net of amounts allocable to experience-rated contractholders, at
December 31:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Debt securities
Gross unrealized capital gains . . . . . . . . . $ 27.4 $ 164.3 $ -
Gross unrealized capital losses. . . . . . . . . (105.2) - -
-------- -------- --------
(77.8) 164.3 -
Equity securities
Gross unrealized capital gains . . . . . . . . . 6.5 12.0 2.0
Gross unrealized capital losses. . . . . . . . . (7.9) (0.1) (0.7)
-------- -------- --------
(1.4) 11.9 1.3
Limited partnership
Gross unrealized capital gains . . . . . . . . . -- - -
Gross unrealized capital losses. . . . . . . . . (1.8) - -
-------- -------- --------
(1.8) - -
Deferred federal income taxes (See Note 6). . . . . . 108.0 61.7 0.5
-------- -------- --------
Net change in unrealized capital gains (losses) . . . $ (189.0) $ 114.5 $ 0.8
-------- -------- --------
-------- -------- --------
</TABLE>
4. NET INVESTMENT INCOME
Sources of net investment income were as follows:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Debt securities . . . . . . . . . . . . . . . $ 823.9 $ 828.0 $ 763.7
Preferred stock . . . . . . . . . . . . . . . 3.9 2.3 2.8
Investment in affiliated mutual funds . . . . 5.2 2.9 3.2
Mortgage loans. . . . . . . . . . . . . . . . 1.4 1.5 1.8
Policy loans. . . . . . . . . . . . . . . . . 11.5 10.8 9.5
Reinsurance loan to affiliate . . . . . . . . 51.5 53.3 56.7
Cash equivalents. . . . . . . . . . . . . . . 29.5 16.8 16.6
Other . . . . . . . . . . . . . . . . . . . . 6.7 7.7 6.4
--------- --------- ---------
Gross investment income . . . . . . . . . . . 933.6 923.3 860.7
Less investment expenses. . . . . . . . . . . (16.4) (11.4) (12.6)
--------- --------- ---------
Net investment income . . . . . . . . . . . . $ 917.2 $ 911.9 $ 848.1
--------- --------- ---------
--------- --------- ---------
</TABLE>
F-17
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Net investment income includes amounts allocable to experience-rated
contractholders of $677.1 million, $661.3 million and $604.0 million for the
years ended December 31, 1994, 1993 and 1992, respectively. Interest credited
to contractholders is included in Current and Future Benefits.
5. DIVIDEND RESTRICTIONS AND SHAREHOLDER'S EQUITY
The amount of dividends that may be paid to the shareholder in 1995 without
prior approval by the Insurance Commissioner of the State of Connecticut is
$70.9 million.
The Insurance Department of the State of Connecticut (the "Department")
recognizes as net income and shareholder's equity those amounts determined in
conformity with statutory accounting practices prescribed or permitted by the
Department, which differ in certain respects from generally accepted accounting
principles. Statutory net income was $70.9 million, $77.6 million and $62.5
million for the years ended December 31, 1994, 1993 and 1992, respectively.
Statutory shareholder's equity was $615.0 million and $574.4 million as of
December 31, 1994 and 1993, respectively.
As of December 31, 1994, the Company does not utilize any statutory accounting
practices which are not prescribed by insurance regulators that, individually or
in the aggregate, materially affect statutory shareholder's equity.
6. FEDERAL INCOME TAXES
The Company is included in the consolidated federal income tax return of Aetna.
Aetna allocates to each member an amount approximating the tax it would have
incurred were it not a member of the consolidated group, and credits the member
for the use of its tax saving attributes in the consolidated return.
As discussed in Note 1, the Company adopted FAS No. 109 as of January 1, 1992
resulting in a cumulative effect benefit of $22.8 million.
In August 1993, the Omnibus Budget Reconciliation Act of 1993 (OBRA) was enacted
which resulted in an increase in the federal corporate tax rate from 34% to 35%
retroactive to January 1, 1993. The enactment of OBRA resulted in an increase
in the deferred tax liability of $3.4 million at date of enactment, which is
included in the 1993 deferred tax expense.
Components of income tax expense (benefits) were as follows:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Current taxes (benefits):
Income from operations. . . . . . $ 78.7 $ 87.1 $ 68.0
Net realized capital gains. . . . (33.2) 18.1 18.1
-------- -------- --------
45.5 105.2 86.1
-------- -------- --------
Deferred taxes (benefits):
Income from operations. . . . . . (8.0) (14.2) (17.7)
Net realized capital gains. . . . 33.7 (14.8) (13.5)
-------- -------- --------
25.7 (29.0) (31.2)
-------- -------- --------
Total . . . . . . . . . . . . . $ 71.2 $ 76.2 $ 54.9
-------- -------- --------
-------- -------- --------
</TABLE>
F-18
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Income tax expense was different from the amount computed by applying the
federal income tax rate to income before federal income taxes for the following
reasons:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Income before federal income taxes. . . . . . . $ 216.5 $ 219.1 $ 168.1
Tax rate. . . . . . . . . . . . . . . . . . . . 35 % 35 % 34 %
-------- -------- --------
Application of the tax rate . . . . . . . . . . 75.8 76.7 57.2
-------- -------- --------
Tax effect of:
Excludable dividends. . . . . . . . . . . . (8.6) (8.7) (6.4)
Tax reserve adjustments . . . . . . . . . . 2.9 4.7 5.1
Reinsurance transaction . . . . . . . . . . 1.9 (0.2) (0.5)
Tax rate change on deferred liabilities . . - 3.7 -
Other, net. . . . . . . . . . . . . . . . . (0.8) - (0.5)
-------- -------- --------
Income tax expense . . . . . . . . . . . . $ 71.2 $ 76.2 $ 54.9
-------- -------- --------
-------- -------- --------
</TABLE>
The tax effects of temporary differences that give rise to deferred tax assets
and deferred tax liabilities under FAS No. 109 at December 31, 1994 and 1993 are
presented below:
<TABLE>
<CAPTION>
1994 1993
---- ----
(millions)
<S> <C> <C>
Deferred tax assets:
Insurance reserve . . . . . . . . . . . . . . . . . . . . . . $ 211.5 $ 195.4
Net unrealized capital losses . . . . . . . . . . . . . . . . 136.3 -
Investment losses not currently deductible. . . . . . . . . . 15.5 31.2
Postretirement benefits other than pensions . . . . . . . . . 8.4 8.6
Impairment reserves . . . . . . . . . . . . . . . . . . . . . - 7.9
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28.3 19.3
-------- --------
Total gross assets . . . . . . . . . . . . . . . . . . . . . . 400.0 262.4
Less valuation allowance . . . . . . . . . . . . . . . . . . . 136.3 -
-------- --------
Deferred tax assets net of valuation. . . . . . . . . . . . . 263.7 262.4
Deferred tax liabilities:
Deferred policy acquisition costs . . . . . . . . . . . . . . 385.2 355.2
Unrealized losses allocable to experience-rated contracts . . 108.0 -
Market discount . . . . . . . . . . . . . . . . . . . . . . . 3.6 5.4
Net unrealized capital gains. . . . . . . . . . . . . . . . . - 61.7
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 1.6
-------- --------
Total gross liabilities. . . . . . . . . . . . . . . . . . . 497.2 423.9
-------- --------
Net deferred tax liability . . . . . . . . . . . . . . . . . $ 233.5 $ 161.5
-------- --------
-------- --------
</TABLE>
Net unrealized capital gains and losses are presented in shareholder's equity
net of deferred taxes. At December 31, 1994, $81.0 million of net unrealized
capital losses were reflected in shareholder's equity without deferred tax
benefits. For federal income tax purposes, capital losses are deductible only
against capital gains in the year of sale or during the carryback and
carryforward periods (three and five years, respectively). Due to the
expected
F-19
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
full utilization of capital gains in the carryback period and the uncertainty of
future capital gains, a valuation allowance of $28.3 million related to million
related to the net unrealized capital losses has been reflected in shareholder's
equity. In addition, $308.6 million of net unrealized capital losses related to
experience-rated contracts are not reflected in shareholder's equity since such
losses, if realized, are allocable to contractholders. However, the potential
loss of tax benefits on such losses is the risk of the Company and therefore
would adversely affect the Company rather than the contractholder. Accordingly,
an additional valuation allowance of $108.0 million has been reflected in
shareholder's equity as of December 31, 1994. Any reversals of the valuation
allowance are contingent upon the recognition of future capital gains in the
Company's federal income tax return or a change in circumstances which causes
the recognition of the benefits to become more likely than not. Non-recognition
of the deferred tax benefits on net unrealized losses described above had no
impact on net income for 1994, but has the potential to adversely affect future
results if such losses are realized.
The "Policyholders' Surplus Account," which arose under prior tax law, is
generally that portion of a life insurance company's statutory income that has
not been subject to taxation. As of December 31, 1983, no further additions
could be made to the Policyholders' Surplus Account for tax return purposes
under the Deficit Reduction Act of 1984. The balance in such account was
approximately $17.2 million at December 31, 1994. This amount would be taxed
only under certain conditions. No income taxes have been provided on this
amount since management believes the conditions under which such taxes would
become payable are remote.
The Internal Revenue Service ("Service") has completed examinations of the
consolidated federal income tax returns of Aetna through 1986. Discussions are
being held with the Service with respect to proposed adjustments. However,
management believes there are adequate defenses against, or sufficient reserves
to provide for, such adjustments. The Service has commenced its examinations
for the years 1987 through 1990.
7. BENEFIT PLANS
Employee Pension Plans - The Company, in conjunction with Aetna, has non-
contributory defined benefit pension plans covering substantially all employees.
The plans provide pension benefits based on years of service and average annual
compensation (measured over sixty consecutive months of highest earnings in a
120 month period). Contributions are determined using the Entry Age Normal Cost
Method and, for qualified plans subject to ERISA requirements, are limited to
the amounts that are currently deductible for tax reporting purposes. The
accumulated benefit obligation and plan assets are recorded by Aetna. The
accumulated plan assets exceed accumulated plan benefits. There has been no
funding to the plan for the years 1992 through 1994, and therefore, no expense
has been recorded by the Company.
Agent Pension Plans - The Company, in conjunction with Aetna, has a non-
qualified pension plan covering certain agents. The plan provides pension
benefits based on annual commission earnings. The accumulated plan assets
exceed accumulated plan benefits. There has been no funding to the plan for the
years 1992 through 1994, and therefore, no expense has been recorded by the
Company.
Employee Postretirement Benefits - In addition to providing pension benefits,
Aetna also provides certain postretirement health care and life insurance
benefits, subject to certain caps, for retired employees. Medical and dental
benefits are offered to all full-time employees retiring at age 50 with at least
15 years of service or at age 65 with at least 10 years of service. Retirees
are required to contribute to the plans based on their years of service with
Aetna.
F-20
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Aetna implemented FAS No. 106, Employers' Accounting for Postretirement Benefits
Other Than Pensions in 1992 on the immediate recognition basis. The cumulative
effect charge for all Aetna employees was reflected in Aetna's 1992 Statement of
Income. Prior to the adoption of FAS No. 106, the cost of postretirement
benefits was charged to operations as payments were made. The accumulated
benefit obligation and plan assets are recorded by Aetna. Accumulated
postretirement benefits exceed plan assets.
The cost to the Company associated with the Aetna postretirement plans for 1994,
1993 and 1992 were $1.0 million, $0.8 million and $0.8 million, respectively.
Agent Postretirement Benefits - The Company, in conjunction with Aetna, also
provides certain postemployment health care and life insurance benefits for
certain agents. The impact of recognizing the liability for agent costs was a
cumulative effect adjustment of $13.2 million (net of deferred taxes of $6.8
million) and is reported in the 1992 Consolidated Statement of Income.
The cost to the Company associated to the agents' postretirement plans for 1994,
1993 and 1992 were $0.7 million, $0.6 million and $0.7 million, respectively.
Incentive Savings Plan - Substantially all employees are eligible to participate
in a savings plan under which designated contributions, which may be invested in
common stock of Aetna or certain other investments, are matched, up to 5% of
compensation, by Aetna. Pretax charges to operations for the incentive savings
plan were $3.3 million, $3.1 million and $2.8 million in 1994, 1993 and 1992,
respectively.
Stock Plans - Aetna has a stock incentive plan that provides for stock options
and deferred contingent common stock or cash awards to certain key employees.
Aetna also has a stock option plan under which executive and middle management
employees of Aetna may be granted options to purchase common stock of Aetna at
the market price on the date of grant or, in connection with certain business
combinations, may be granted options to purchase common stock on different
terms. The cost to the Company associated to the Aetna stock plans for 1994 and
1993 was $2.3 million, $0.4 million, respectively. The cost for 1992 was
immaterial.
8. RELATED PARTY TRANSACTIONS
The Company is compensated by the Separate Accounts for bearing mortality and
expense risks pertaining to variable life and annuity contracts. Under the
insurance contracts, the Separate Accounts pay the Company a daily fee which, on
an annual basis, ranges, depending on the product, from .70% to 1.80% of their
average daily net assets. The Company also receives fees from the variable life
and annuity mutual funds and The Aetna Series Fund for serving as investment
adviser. Under the advisory agreements, the Funds pay the Company a daily fee
which, on an annual basis, ranges, depending on the fund, from .25% to 1.00% of
their average daily net assets. The advisory agreements also call for the
variable funds to pay their own administrative expenses and for The Aetna Series
Fund to pay certain administrative expenses. The Company also receives fees
(expressed as a percentage of the average daily net assets) from The Aetna
Series Fund for providing administration shareholder services and promoting
sales. The amount of compensation and fees received from the Separate Accounts
and Funds, included in Charges Assessed Against Policyholders, amounted to
$104.6 million, $93.6 million and $80.5 million in 1994, 1993 and 1992,
respectively. The Company may waive advisory fees at its discretion.
F-21
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The Company may, from time to time, make reimbursements to a Fund for some or
all of its operating expenses. Reimbursement arrangements may be terminated at
any time without notice.
Since 1981, all domestic individual non-participating life insurance of Aetna
and its subsidiaries has been issued by the Company. Effective December 31,
1988, the Company entered into a reinsurance agreement with Aetna Life Insurance
Company ("Aetna Life") in which substantially all of the non-participating
individual life and annuity business written by Aetna Life prior to 1981 was
assumed by the Company. A $108.0 million commission, paid by the Company to
Aetna Life in 1988, was capitalized as deferred policy acquisition costs. The
Company maintained insurance reserves of $690.3 million and $711.0 million as of
December 31, 1994 and 1993, respectively, relating to the business assumed. In
consideration for the assumption of this business, a loan was established
relating to the assets held by Aetna Life which support the insurance reserves.
The loan is being reduced in accordance with the decrease in the reserves. The
fair value of this loan was $630.3 million and $685.8 million as of December 31,
1994 and 1993, respectively, and is based upon the fair value of the underlying
assets. Premiums of $32.8 million, $33.3 million and $36.8 million and current
and future benefits of $43.8 million, $55.4 million and $47.2 million were
assumed in 1994, 1993 and 1992, respectively.
Investment income of $51.5 million, $53.3 million and $56.7 million was
generated from the reinsurance loan to affiliate in 1994, 1993 and 1992,
respectively. Net income of approximately $25.1 million, $13.6 million and
$21.7 million resulted from this agreement in 1994, 1993 and 1992, respectively.
On December 16, 1988, the Company assumed $25.0 million of premium revenue from
Aetna Life for the purchase and administration of a life contingent single
premium variable payout annuity contract. In addition, the Company also is
responsible for administering fixed annuity payments that are made to annuitants
receiving variable payments. Reserves of $24.2 million and $27.8 million were
maintained for this contract as of December 31, 1994 and 1993, respectively.
Effective February 1, 1992, the Company increased its retention limit per
individual life to $2.0 million and entered into a reinsurance agreement with
Aetna Life to reinsure amounts in excess of this limit, up to a maximum of $8.0
million on any new individual life business, on a yearly renewable term basis.
Premium amounts related to this agreement for 1994, 1993 and 1992 were
immaterial.
Effective December 31, 1992, the Company entered into an assumption reinsurance
agreement with Aetna Life to reinsure a block of approximately 3,500 life
contingent, period certain and deferred lump sum annuities (totaling $175.5
million in premium) issued by the Company to Aetna Casualty to fund its
obligations under structured settlement agreements. The negotiated price
recognized the sale of future profits and included consideration to ALIAC for
the continued administration of the reinsured contracts on behalf of, and in the
name of, Aetna Life.
The Company received no capital contributions in 1994, 1993 or 1992.
Premiums due and other receivables include $27.6 million and $9.8 million due
from affiliates in 1994 and 1993, respectively. Other liabilities include $27.9
million and $26.1 million due to affiliates for 1994 and 1993, respectively.
Substantially all of the administrative and support functions of the Company are
provided by Aetna and its affiliates. The financial statements reflect
allocated charges for these services based upon measures appropriate for the
type and nature of service provided.
F-22
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
9. REINSURANCE
The Company utilizes indemnity reinsurance agreements to reduce its exposure to
large losses in all aspects of its insurance business. Such reinsurance permits
recovery of a portion of losses from reinsurers, although it does not discharge
the primary liability of the Company as direct insurer of the risks reinsured.
The Company evaluates the financial strength of potential reinsurers and
continually monitors the financial condition of reinsurers. Only those
reinsurance recoverables deemed probable of recovery are reflected as assets on
the Company's Consolidated Balance Sheets.
The following table includes premium amounts ceded/assumed to/from affiliated
companies as discussed in Note 8 above.
<TABLE>
<CAPTION>
CEDED TO ASSUMED
DIRECT OTHER FROM OTHER NET
AMOUNT COMPANIES COMPANIES AMOUNT
------ --------- --------- ------
1994 (millions)
<S> <C> <C> <C> <C>
Premiums:
Life Insurance . . . . . . . . . . . . . . . . . . . . $ 25.8 $ 6.0 $ 32.8 $ 52.6
Accident and Health Insurance. . . . . . . . . . . . . 10.8 9.3 - 1.5
Annuities. . . . . . . . . . . . . . . . . . . . . . . 69.9 - 0.2 70.1
----------------------------------------------------------
Total earned premiums. . . . . . . . . . . . . . . . . $ 106.5 $15.3 $ 33.0 $124.2
----------------------------------------------------------
----------------------------------------------------------
1993
Premiums:
Life Insurance . . . . . . . . . . . . . . . . . . . . $ 20.9 $ 5.6 $ 33.3 $ 48.6
Accident and Health Insurance . . . . . . . . . . . . 14.4 12.9 - 1.5
Annuities. . . . . . . . . . . . . . . . . . . . . . . 31.3 - 0.7 32.0
----------------------------------------------------------
Total earned premiums. . . . . . . . . . . . . . . . . $ 66.6 $ 18.5 $ 34.0 $ 82.1
----------------------------------------------------------
----------------------------------------------------------
1992
Premiums:
Life Insurance . . . . . . . . . . . . . . . . . . . . $ 20.8 $ 5.2 $ 36.8 $ 52.4
Accident and Health Insurance. . . . . . . . . . . . . 15.1 13.7 - 1.4
Annuities. . . . . . . . . . . . . . . . . . . . . . . 18.4 - 0.3 18.7
----------------------------------------------------------
Total earned premiums. . . . . . . . . . . . . . . . . $54.3 $18.9 $ 37.1 $ 72.5
----------------------------------------------------------
----------------------------------------------------------
</TABLE>
10. FINANCIAL INSTRUMENTS
The carrying values and estimated fair values of the Company's financial
instruments at December 31, 1994 and 1993 were as follows:
<TABLE>
<CAPTION>
1994 1993
------------------------------ -----------------------------
CARRYING FAIR CARRYING FAIR
VALUE VALUE VALUE VALUE
----- ----- ----- ------
(millions)
<S> <C> <C> <C> <C>
Assets:
Cash and cash equivalents . . . . . . . . . . . $ 623.3 $ 623.3 $ 536.1 $ 536.1
Short-term investments. . . . . . . . . . . . . 98.0 98.0 22.6 22.6
Debt securities . . . . . . . . . . . . . . . . 10,191.4 10,191.4 10,531.0 10,531.0
Equity securities . . . . . . . . . . . . . . . 229.1 229.1 172.6 172.6
Limited partnership . . . . . . . . . . . . . . 24.4 24.4 - -
Mortgage loans. . . . . . . . . . . . . . . . . 9.9 9.9 10.1 10.1
Liabilities:
Investment contract liabilities:
With a fixed maturity . . . . . . . . . . . . 826.7 833.5 733.3 795.6
Without a fixed maturity. . . . . . . . . . . 8,074.9 7,870.4 8,196.4 8,099.3
</TABLE>
F-23
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Fair value estimates are made at a specific point in time, based on available
market information and judgments about the financial instrument, such as
estimates of timing and amount of expected future cash flows. Such estimates do
not reflect any premium or discount that could result from offering for sale at
one time the Company's entire holdings of a particular financial instrument, nor
do they consider the tax impact of the realization of unrealized gains or
losses. In many cases, the fair value estimates cannot be substantiated by
comparison to independent markets, nor can the disclosed value be realized in
immediate settlement of the instrument. In evaluating the Company's management
of interest rate and liquidity risk, the fair values of all assets and
liabilities should be taken into consideration, not only those above.
The following valuation methods and assumptions were used by the Company in
estimating the fair value of the above financial instruments:
SHORT-TERM INSTRUMENTS: Fair values are based on quoted market prices or dealer
quotations. Where quoted market prices are not available, the carrying amounts
reported in the Consolidated Balance Sheets approximates fair value. Short-term
instruments have a maturity date of one year or less and include cash and cash
equivalents, and short-term investments.
DEBT AND EQUITY SECURITIES: Fair values are based on quoted market prices or
dealer quotations. Where quoted market prices or dealer quotations are not
available, fair value is estimated by using quoted market prices for similar
securities or discounted cash flow methods.
MORTGAGE LOANS: Fair value is estimated by discounting expected mortgage loan
cash flows at market rates which reflect the rates at which similar loans would
be made to similar borrowers. The rates reflect management's assessment of the
credit quality and the remaining duration of the loans. The fair value estimate
of mortgage loans of lower quality, including problem and restructured loans, is
based on the estimated fair value of the underlying collateral.
INVESTMENT CONTRACT LIABILITIES (INCLUDED IN POLICYHOLDERS' FUNDS LEFT WITH THE
COMPANY): With a fixed maturity: Fair value is estimated by discounting cash
flows at interest rates currently being offered by, or available to, the Company
for similar contracts.
WITHOUT A FIXED MATURITY: Fair value is estimated as the amount payable to the
contractholder upon demand. However, the Company has the right under such
contracts to delay payment of withdrawals which may ultimately result in paying
an amount different than that determined to be payable on demand.
11. SEGMENT INFORMATION
Effective December 31, 1994, the Company's operations, which previously were
reported in total, will now be reported through two major business segments:
Life Insurance and Financial Services. The Life Insurance segment markets most
types of life insurance including universal life, interest-sensitive whole life,
and term insurance. These products are offered primarily to individuals, small
businesses, employer-sponsored groups and executives of Fortune 2000 companies.
The Financial Services segment markets and services individual and group annuity
contracts which offer a variety of funding and distribution options for personal
and employer-sponsored retirement plans that qualify for tax deferral under
sections 401(k) for corporations, 403(b) for hospitals and educational
institutions, 408 for individual retirement accounts, and 457 for state and
local governments and tax exempt healthcare organizations (the "deferred
compensation market"), of the Internal Revenue Code. These contracts may be
immediate or deferred. These products are offered primarily to individuals,
pension plans, small businesses and employer-sponsored groups.
F-24
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A WHOLLY OWNED SUBSIDIARY OF AETNA LIFE AND CASUALTY COMPANY)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Summarized financial information for the Company's principal operations was as
follows:
<TABLE>
<CAPTION>
1994 1993 1992
---- ---- ----
(millions)
<S> <C> <C> <C>
Revenue:
Life insurance . . . . . . . . . . . . . . . . . . . . . . . . $ 386.1 $ 371.7 $ 363.6
Financial services . . . . . . . . . . . . . . . . . . . . . . 946.1 892.8 812.5
---------- ---------- ----------
Total revenue. . . . . . . . . . . . . . . . . . . . . . . . $ 1,332.2 $ 1,264.5 $ 1,176.1
---------- ---------- ----------
Income from continuing operations before
income taxes and cumulative effect adjustments:
Life insurance . . . . . . . . . . . . . . . . . . . . . . . . $ 96.8 $ 98.0 $ 74.6
Financial services . . . . . . . . . . . . . . . . . . . . . . 119.7 121.1 93.5
---------- ---------- ----------
Total income from continuing operations before
income taxes and cumulative effect adjustments. . . . . . . $ 216.5 $ 219.1 $ 168.1
Net income:
Life insurance . . . . . . . . . . . . . . . . . . . . . . . . $ 59.8 $ 56.1 $ 45.6
Financial services . . . . . . . . . . . . . . . . . . . . . . 85.5 86.8 67.6
---------- ---------- ----------
Income before cumulative effect adjustments . . . . . . . . . $ 145.3 $ 142.9 $ 113.2
---------- ---------- ----------
Cumulative effect adjustments . . . . . . . . . . . . . . . . - - 9.6
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 145.3 $ 142.9 $ 122.8
---------- ---------- ----------
---------- ---------- ----------
<CAPTION>
1994 1993 1992
(millions)
<S> <C> <C> <C>
Assets under management, at fair value:
Life insurance . . . . . . . . . . . . . . . . . . . . . . . . $ 2,175.2 $ 2,180.1 $ 1,973.1
Financial services . . . . . . . . . . . . . . . . . . . . . . 17,791.9 16,600.5 13,644.3
---------- ---------- ----------
Total assets under management . . . . . . . . . . . . . . . $ 19,967.1 $ 18,780.6 $ 15,617.4
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
F-25
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Life and Casualty Company)
Consolidated Statements of Income
(millions)
<TABLE>
<CAPTION>
9 Months Ended September 30,
----------------------------
1995 1994
---- ----
<S> <C> <C>
Revenue:
Premiums $94.8 $79.2
Charges assessed against policyholders 231.1 207.0
Net investment income 732.0 684.9
Net realized capital gains 19.3 5.3
Other income 30.0 3.9
---------- ----------
Total revenue 1,107.2 980.3
Benefits and expenses:
Current and future benefits 677.1 621.1
Operating expenses 222.9 166.7
Amortization of deferred policy acquisition costs 27.3 31.7
---------- ----------
Total benefits and expenses 927.3 819.5
Income before federal income taxes 179.9 160.8
Federal income taxes 58.8 51.4
---------- ----------
Net income $121.1 $109.4
---------- ----------
---------- ----------
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
F-26
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Life and Casualty Company)
Consolidated Balance Sheets
(millions)
<TABLE>
<CAPTION>
September 30, December 31,
Assets 1995 1994
- ------ ---- ----
<S> <C> <C>
Investments:
Debt securities, available for sale:
(amortized cost: $11,540.8 and $10,577.8) $11,999.5 $10,191.4
Equity securities, available for sale:
Non-redeemable preferred stock (cost: $54.8 and $43.3) 61.5 47.2
Investment in affiliated mutual funds (cost: $213.9 and $187.1) 241.7 181.9
Common stock (cost: $5.7 at September 30, 1995) 7.6 --
Short-term investments 16.6 98.0
Mortgage loans 5.6 9.9
Policy loans 305.7 248.7
Limited partnership 24.6 24.4
------------ ------------
Total investments 12,662.8 10,801.5
Cash and cash equivalents 506.4 623.3
Accrued investment income 171.8 142.2
Premiums due and other receivables 54.5 75.8
Deferred policy acquisition costs 1,283.1 1,172.0
Reinsurance loan to affiliate 659.4 690.3
Other assets 21.2 15.9
Separate Accounts assets 9,931.9 7,420.8
------------ ------------
Total assets $25,291.1 $20,941.8
------------ ------------
------------ ------------
Liabilities and Shareholder's Equity
Liabilities:
Future policy benefits $3,247.2 $2,920.4
Unpaid claims and claim expenses 22.9 23.8
Policyholders' funds left with the Company 10,132.7 8,949.3
------------ ------------
Total insurance reserve liabilities 13,402.8 11,893.5
Other liabilities 261.4 302.1
Federal income taxes:
Current 17.6 3.4
Deferred 167.6 233.5
Separate Accounts liabilities 9,931.9 7,420.8
------------ ------------
Total liabilities 23,781.3 19,853.3
------------ ------------
Shareholder's equity:
Common stock, par value $50 (100,000 shares
authorized; 55,000 shares issued and outstanding) 2.8 2.8
Paid-in capital 407.6 407.6
Net unrealized capital gains (losses) 111.2 (189.0)
Retained earnings 988.2 867.1
------------ ------------
Total shareholder's equity 1,509.8 1,088.5
------------ ------------
Total liabilities and shareholder's equity $25,291.1 $20,941.8
------------ ------------
------------ ------------
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
F-27
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Life and Casualty Company)
Consolidated Statements of Changes in Shareholder's Equity
(millions)
<TABLE>
<CAPTION>
9 Months Ended September 30,
----------------------------
1995 1994
---- ----
<S> <C> <C>
Shareholder's equity, beginning of period $1,088.5 $1,246.7
Net change in unrealized capital gains (losses) 300.2 (224.1)
Net income 121.1 109.4
------------ ------------
Shareholder's equity, end of period $1,509.8 $1,132.0
------------ ------------
------------ ------------
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
F-28
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Life and Casualty Company)
Consolidated Statements of Cash Flows
(millions)
<TABLE>
<CAPTION>
9 Months Ended September 30,
----------------------------
1995 1994
---- ----
<S> <C> <C>
Cash Flows from Operating Activities:
Net income $121.1 $109.4
Adjustments to reconcile net income to net cash
provided by operating activities:
Increase in accrued investment income (29.6) (9.8)
Decrease in premiums due and other receivables 28.1 12.4
Increase in policy loans (57.0) (31.3)
Increase in deferred policy acquisition costs (111.1) (52.7)
Decrease in reinsurance loan to affiliate 30.9 21.0
Net increase in universal life account balances 164.0 110.2
Increase in other insurance reserve liabilities 10.6 14.1
Net (increase) decrease in other liabilities and other assets (17.2) 23.3
Increase in federal income taxes (3.6) (17.7)
Net accretion of discount on debt securities (48.9) (62.0)
Net realized capital gains (19.3) (5.3)
---------- ----------
Net cash provided by operating activities 68.0 111.6
---------- ----------
Cash Flows from Investing Activities:
Proceeds from sales of:
Debt securities available for sale 3,276.2 2,976.0
Equity securities 130.5 87.4
Investment maturities and collections of:
Debt securities available for sale 420.7 1,134.0
Short-term investments 95.6 16.2
Cost of investment purchases in:
Debt securities available for sale (4,581.6) (4,460.5)
Equity securities (170.2) (159.2)
Short-term investments (14.2) (87.5)
Limited partnership -- (25.0)
---------- ----------
Net cash used for investing activities (843.0) (518.6)
---------- ----------
Cash Flows from Financing Activities:
Deposits and interest credited for investment contracts 1,461.9 1,328.6
Withdrawals of investment contracts (803.8) (705.3)
---------- ----------
Net cash provided by financing activities 658.1 623.3
---------- ----------
Net (decrease) increase in cash and cash equivalents (116.9) 216.3
Cash and cash equivalents, beginning of period 623.3 536.1
---------- ----------
Cash and cash equivalents, end of period $506.4 $752.4
---------- ----------
---------- ----------
Supplemental cash flow information:
Income taxes paid, net $62.4 $69.1
---------- ----------
---------- ----------
</TABLE>
See Condensed Notes to Consolidated Financial Statements.
F-29
<PAGE>
AETNA LIFE INSURANCE AND ANNUITY COMPANY AND SUBSIDIARIES
(A wholly owned subsidiary of Aetna Life and Casualty Company)
Condensed Notes to Consolidated Financial Statements
1. BASIS OF PRESENTATION
The consolidated financial statements include Aetna Life Insurance and
Annuity Company and its wholly owned subsidiaries, Aetna Insurance Company
of America, Systematized Benefits Administrators, Inc., Aetna Private
Capital, Inc. and Aetna Investment Services, Inc. (collectively, the
"Company"). Aetna Life Insurance and Annuity Company is a wholly owned
subsidiary of Aetna Life and Casualty Company ("Aetna").
The consolidated financial statements have been prepared in accordance with
generally accepted accounting principles and are unaudited. Certain
reclassifications have been made to 1994 financial information to conform
to 1995 presentation. These interim statements necessarily rely heavily on
estimates including assumptions as to annualized tax rates. In the opinion
of management, all adjustments necessary for a fair statement of results
for the interim periods have been made. All such adjustments are of a
normal recurring nature.
2. FEDERAL INCOME TAXES
Net unrealized capital gains and losses are presented in shareholder's
equity net of deferred taxes. During the nine months ended September 30,
1995, the Company moved from a net unrealized capital loss position of
$189.0 million at December 31, 1994, to a net unrealized capital gain
position of $111.2 million at September 30, 1995, primarily due to
decreases in interest rates. As a result, all valuation allowances
previously established related to deferred tax assets on these capital
losses were reversed, which had no impact on net income for the three and
nine months ended September 30, 1995.
F-30
<PAGE>
<PAGE>
VARIABLE ANNUITY ACCOUNT C
PART C - OTHER INFORMATION
Item 24. Financial Statements and Exhibits
- -------------------------------------------
(a) Financial Statements:
(1) Inapplicable
(2) Included in Part B:
Financial Statements of Variable Annuity
Account C:
- Independent Auditors' Report
- Statement of Assets and Liabilities as
of December 31, 1994
- Statement of Operations for the year
ended December 31, 1994
- Statements of Changes in Net Assets for
the years ended December 31, 1994 and
1993
- Notes to Financial Statements
- Unaudited Statement of Assets and
Liabilities as of September 30, 1995
- Unaudited Statement of Operations for
the nine-month period ended September
30, 1995
- Unaudited Statements of Changes in Net
Assets for nine-month period ended
September 30, 1995 and year ended
December 31, 1994
- Notes to Financial Statements
Financial Statements of the Depositor:
- Independent Auditors' Report
- Consolidated Statements of Income for
the years ended December 31, 1994, 1993
and 1992
- Consolidated Balance Sheets as of
December 31, 1994 and 1993
<PAGE>
<PAGE>
- Consolidated Statements of Changes in
Shareholder's Equity for the three years
ended December 31, 1994, 1993 and 1992
- Consolidated Statements of Cash Flows
for the years ended December 31, 1994,
1993 and 1992
- Notes to Consolidated Financial
Statements
- Unaudited Consolidated Balance Sheet as
of September 30, 1995
- Unaudited Consolidated Statements of
Income for the nine-month periods ended
September 30, 1995 and 1994
- Unaudited Consolidated Statements of
Changes in Shareholder's Equity for the
nine-month periods ended September 30,
1995 and 1994
- Unaudited Consolidated Statements of
Cash Flows for the nine-month periods
ended September 30, 1995 and 1994
- Condensed Notes to Consolidated
Financial Statements
(b) Exhibits
(1) Resolution of the Board of Directors of Aetna
Life Insurance and Annuity Company
establishing Variable Annuity Account C/1/
(2) Not applicable
(3.1) Form of Broker-Dealer Agreement/2/
(3.2) Alternative Form of Wholesaling Agreement and
related Selling Agreement/2/
(4.1) Form of Group Combination Annuity Contract
(Nonparticipating) (A001RP95)
(4.2) Form of Group Combination Annuity Certificate
(Nonparticipating) (A007RC95)
(4.3) Form of Group Combination Annuity Contract
(Nonparticipating) (A020RV95))
(4.4) Form of Group Combination Annuity Certificate
(Nonparticipating) (A027RV95)
(4.5) Form of Endorsement for Exchanged Contracts
(EINRP95)
<PAGE>
<PAGE>
(4.6) Form of Endorsement for Exchanged Contracts
(EINRV95)
(4.7) Form of Endorsement for 401(a) Plans
(5) Form of Variable Annuity Contract Application
(300-MOP-IB)/3/
(6) Certification of Incorporation and By-Laws of
Depositor/4/
(7) Not applicable
(8.1) Fund Participation Agreement between Aetna
Life Insurance and Annuity Company, Alger
American Fund and Fred Alger Management, Inc.
dated September 1, 1993/5/
(8.2) Fund Participation Agreement between Aetna
Life Insurance and Annuity Company and
Calvert Asset Management Company (Calvert
Responsibly Invested Balanced Portfolio
formerly Calvert SociallyResponsible Series)
dated March 13, 1989 and amended December 27,
1993
(8.3) Fund Participation Agreement between Aetna
Life Insurance and Annuity Company and
Fidelity Distributors Corporation dated
February 1, 1994 (Variable Insurance Products
Fund)/6/
(8.4) Fund Participation Agreement between Aetna
Life Insurance and Annuity Company and
Fidelity Distributors Corporation dated
February 1, 1994 (Variable Insurance Products
Fund II)/6/
(8.5) Fund Participation Agreement between Aetna
Life Insurance and Annuity Company and
Franklin Advisers, Inc. dated January 31,
1989/7/
(8.6) Fund Participation Agreement between Aetna
Life Insurance and Annuity Company and Janus
Aspen Series dated April 19, 1994 and amended
June 15, 1994/8/
(8.7) Fund Participation Agreement between Aetna
Life Insurance and Annuity Company and
Lexington Management Corporation regarding
Natural Resources Trust dated December 1,
1988 and amended February 11, 1991/5/
(8.8) Fund Participation Agreement between Aetna
Life Insurance and Annuity Company and
Advisers Management Trust (now Neuberger &
<PAGE>
<PAGE>
Berman Advisers Management Trust) dated April
14, 1989/2/
(8.9) Fund Participation Agreement between Aetna
Life Insurance and Annuity Company and
Scudder Variable Life Investment Fund dated
April 27, 1992 and amended February 19, 1993
and August 13, 1993/9/
(8.10) Fund Participation Agreement between Aetna
Life Insurance and Annuity Company, Investors
Research Corporation and TCI Portfolios, Inc.
dated July 29, 1992 and amended December 27,
1992 and June 1, 1994/9/
(9) Opinion of Counsel****
(10.1) Consent of Independent Auditors
(10.2) Consent of Counsel (see item (9) above)
(11) Not applicable
(12) Not applicable
(13) Not applicable
(14) Not applicable
(15.1) Powers of Attorney/10/
(15.2) Authorization for Signatures/11/
(16) Computation of Performance Data
(27) Financial Data Schedule
/1/ Incorporated by reference to Registration Statement on Form
N-4 (File No. 2-52449) filed on February 28, 1986.
/2/ Incorporated by reference to Pre-Effective Amendment No. 1
to Registration Statement on Form N-4 (File No. 33-75996)
filed on April 21, 1994.
/3/ Incorporated by reference to Registration Statement on Form
N-4 (File No. 33-91846) filed on May 1, 1995.
/4/ Incorporated by reference to Post-Effective Amendment No. 58
to Registration Statement on Form N-4 (File No. 2-52449)
filed on February 28, 1994.
/5/ Incorporated by reference to Post-Effective Amendment No. 4
to Registration Statement on Form N-4 (File No. 33-75978)
filed on March 24, 1995.
/6/ Incorporated by reference to Pre-Effective Amendment No. 1
to Registration Statement on Form N-4 (File No. 33-75978)
filed on April 25, 1994.
/7/ Incorporated by reference to Pre-Effective Amendment No. 1
to Registration Statement on Form N-4 (File No. 33-75990)
filed on April 25, 1994.
<PAGE>
<PAGE>
/8/ Incorporated by reference to Post-Effective Amendment No. 2
to Registration Statement on Form N-4 (File No. 33-75960)
filed on August 9, 1994.
/9/ Incorporated by reference to Registration Statement on Form
N-4 (File No. 33-88720) filed on January 20, 1995.
/10/ Included on the signature page of this Registration
Statement
/11/ Incorporated by Reference to Post-Effective Amendment No. 3
to Registration Statement on Form N-4 (File No. 33-75996)
filed on February 21, 1995.
**** To be filed by amendment
Item 25. Directors and Officers of the Depositor
- -------------------------------------------------
Name and Principal
Business Address* Positions and Offices with Depositor
- ------------------ ------------------------------------
Daniel P. Kearney Director and President
Timothy A. Holt Director
Christopher J. Burns Director and Senior Vice President
Laura R. Estes Director and Senior Vice President
Gail P. Johnson Director and Vice President
John Y. Kim Director and Senior Vice President
Shaun P. Mathews Director and Senior Vice President
Glen Salow Director and Vice President
Creed R. Terry Director and Vice President
James C. Hamilton Vice President and Treasurer
<PAGE>
<PAGE>
David E. Bushong Acting Chief Financial Officer
Eugene M. Trovato Vice President, Chief Accounting
Officer and Corporte Controller
Zoe Baird Senior Vice President and General
Counsel
Susan E. Schechter Corporate Secretary and Counsel
* The principal business address of all directors and
officers listed is 151 Farmington Avenue, Hartford,
Connecticut 06156.
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
- -----------------------------------------------------------------
Incorporated herein by reference to Item 26 to Post-
Effective Amendment No. 5 to Registration Statement on Form N-4
(File No. 33-75982) as filed electronically on February 16, 1996.
Item 27. Number of Contract Owners
- -----------------------------------
As of December 31, 1995, there were 577,320 individuals
holding interests in variable annuity contracts funded through
Account C.
Item 28. Indemnification
- -------------------------
<PAGE>
<PAGE>
Reference is hereby made to Section 33-320a of the
Connecticut General Statutes ("C.G.S.") regarding indemnification
of directors and officers of Connecticut corporations. The
statute provides in general that Connecticut corporations shall
indemnify their officers, directors, employees, agents, and
certain other defined individuals against judgments, fines,
penalties, amounts paid in settlement and reasonable expenses
actually incurred in connection with proceedings against the
corporation. The corporation's obligation to provide such
indemnification does not apply unless (1) the individual is
successful on the merits in the defense of any such proceeding;
or (2) a determination is made (by a majority of the board of
directors not a party to the proceeding by written consent; by
independent legal counsel selected by a majority of the directors
not involved in the proceeding; or by a majority of the
shareholders not involved in the proceeding) that the individual
acted in good faith and in the best interests of the corporation;
or (3) the court, upon application by the individual, determines
in view of all the circumstances that such person is reasonably
entitled to be indemnified.
C.G.S. Section 33-320a provides an exclusive remedy: a
Connecticut corporation cannot indemnify a director or officer to
an extent either greater or less than that authorized by the
statute, e.g., pursuant to its certificate of incorporation,
bylaws, or any separate contractual arrangement. However, the
statute does specifically authorize a corporation to procure
indemnification insurance to provide greater indemnification
rights. The premiums for such insurance may be shared with the
insured individuals on an agreed basis.
Consistent with the statute, Aetna Life and Casualty
Company has procured insurance from Lloyd's of London and several
major United States excess insurers for its directors and
officers and the directors and officers of its subsidiaries,
including the Depositor, which supplements the indemnification
rights provided by C.G.S. Section 33-320a to the extent such
coverage does not violate public policy.
Item 29. Principal Underwriter
- -------------------------------
(a) In addition to serving as the principal underwriter for
the Registrant, Aetna Life Insurance and Annuity Company (ALIAC)
also acts as the principal underwriter for Variable Life Account
B, Variable Annuity Accounts B and G (separate accounts of ALIAC
<PAGE>
<PAGE>
registered as unit investment trusts), and Variable Annuity
Account I (a separate account of Aetna Insurance Company of
America registered as a unit investment trust). Additionally,
ALIAC is the investment adviser for Aetna Variable Fund, Aetna
Income Shares, Aetna Variable Encore Fund, Aetna Investment
Advisers Fund, Inc., Series B of Aetna GET Fund, Aetna Series
Fund, Inc. and Aetna Generation Portfolios, Inc. ALIAC is also
the depositor of Variable Life Account B and Variable Annuity
Accounts B and G.
(b) See Item 25 regarding the Depositor.
(c) Compensation as of December 31, 1994:
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5)
Net Compensation
Name Underwriting on
of Discount Redemption
Principal and or Brokerage
Underwriter CommissionsAnnuitization CommissionsCompensation*
--------- --------- ----------- --------- -----------
<S> <C> <C> <C> <C>
Aetna Life $1,644,753 $62,552,321
Insurance
and Annuity
Company
</TABLE>
* Compensation shown in column 5 includes deductions for
mortality and expense risk guarantees and contract charges
assessed to cover costs incurred in the sales and
administration of the contracts issued under Account C.
<PAGE>
<PAGE>
Item 30. Location of Accounts and Records
- ------------------------------------------
All records concerning contract owners of Variable
Annuity Account C are located at the home office of the Depositor
as follows:
Aetna Life Insurance and Annuity
Company
151 Farmington Avenue
Hartford, Connecticut 06156
Item 31. Management Services
- -----------------------------
Not applicable
Item 32. Undertakings
- ----------------------
Registrant hereby undertakes:
(a) to file a post-effective amendment to this
registration statement on Form N-4 as frequently as is necessary
to ensure that the audited financial statements in the
registration statement are never more than sixteen months old for
as long as payments under the variable annuity contracts may be
accepted;
(b) to include as part of any application to purchase
a contract offered by a prospectus which is part of this
registration statement on Form N-4, a space that an applicant can
check to request a Statement of Additional Information; and
<PAGE>
<PAGE>
(c) to deliver any Statement of Additional Information
and any financial statements required to be made available under
this Form N-4 promptly upon written or oral request.
(d) The Company hereby represents that it is relying
upon and complies with the provisions of Paragraphs (1) through
(4) of the SEC Staff's No-Action Letter dated November 22, 1988
with respect to language concerning withdrawal restrictions
applicable to plans established pursuant to Section 403(b) of the
Internal Revenue Code. See American Counsel of Life Insurance;
SEC No-Action Letter, [1989 Transfer Binder] Fed. Sec. L. Rep.
(CCH) para. 78,904 at 78,533 (November 22, 1988).
(e) Insofar as indemnification for liability arising
under the Securities Act of 1933 may be permitted to directors,
officers and controlling persons of the Registrant pursuant to
the foregoing provisions, or otherwise, the Registrant has been
advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as
expressed in the Act and is, therefore, unenforceable. In the
event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or
paid by a director, officer or controlling person of the
Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question of whether such
indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
<PAGE>
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, Variable Annuity
Account C of Aetna Life Insurance and Annuity Company, has duly
caused this Registration Statement to be signed on its behalf in
the City of Hartford, State of Connecticut, on the 21th day of
February, 1996.
VARIABLE ANNUITY ACCOUNT
C OF AETNA LIFE INSURANCE
AND ANNUITY COMPANY
(Registrant)
By: AETNA LIFE INSURANCE AND
ANNUITY COMPANY
(Depositor)
By: /s/ Daniel P. Kearney
-------------------------
Daniel P. Kearney
Principal Executive
Officer
As required by the Securities Act of 1933 as amended,
this Registrant Statement has been signed by the following
persons in the capacities and on the dates indicated. Each
person whose signature appears below hereby constitutes and
appoints Susan E. Bryant, Steven J. Lauwers, Julie E. Rockmore,
Josephine Cicchetti and W. Randolph Thompson and each of them
individually, such person's true and lawful attorneys and agents
with full power of substitution and resubstitution, for him or
her and in his or her own name, place and stead, in any and all
capacities, to sign for such person and in such person's name and
capacity as indicated below, any and all amendments including,
but not limited to, pre-effective and post-effective amendments
to this Registration Statement, hereby ratifying and confirming
such person's signature as it may be signed by said attorneys to
any and all amendments.
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Signature Title Date
--------- ----- ----
<S> <C> <C>
/s/ Daniel P. Kearney Director and President
------------------------ (Principal Executive
Daniel P. Kearney* Officer)
/s/ David E. Bushong Acting Chief Financial
------------------------ Officer (principal
David E. Bushong financial officer)
/s/ Eugene M. Trovato Vice President, Chief Accounting Officer and
Corporate Controller
------------------------
Eugene M. Trovato
/s/ Christopher J. Burns Director Feb. -21- 1996
------------------------
Christopher J. Burns*
/s/ Laura R. Estes Director
------------------------
Laura R. Estes*
/s/ Timothy A. Holt Director
------------------------
Timothy A. Holt*
<PAGE>
<PAGE>
/s/ Gail P. Johnson Director
------------------------
Gail P. Johnson*
/s/ John Y. Kim Director
------------------------
John Y. Kim*
Director
------------------------
Shaun P. Mathews
/s/ Glen Salow Director
------------------------
Glen Salow*
/s/ Creed R. Terry Director
------------------------
Creed R. Terry
</TABLE>
_________________
* Represents a majority of the directors.
<PAGE>
<PAGE>
VARIABLE ANNUITY ACCOUNT C
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Exhibit Page
----------- ------- ----
<S> <C> <C>
99-B.1 Resolution of the Board of Directors of *
Aetna Life Insurance and Annuity Company
establishing Variable Annuity Account C
99-B.3.1 Form of Broker-Dealer Agreement *
99-B.3.2 Alternative Form of Wholesaling Agreement *
and related Selling Agreement
99-B.4.1 Form of Group Combination Annuity Contract _____
(Nonparticipating)(A001RP95)
99-B.4.2 Form of Group Combination Annuity _____
Certificate (Nonparticipating)(A007RC95)
99-B.4.3 Form of Group Combination Annuity Contract _____
(Nonparticipating)(A020RV95)
99-B.4.4 Form of Group Combination Annuity _____
Certificate (Nonparticipating)(A027RV95)
99-B.4.5 Form of Endorsement for Exchange _____
(EINRP95)
<PAGE>
<PAGE>
99-B.4.6 Form of Endorsement for Exchange _____
(EINRV95)
99-B.4.7 Form of Endorsement for 401(a) Plans _____
99-B.5 Form of Variable Annuity Contract *
Application (300-MOP-IB)
99-B.6 Certificates of Incorporation and By-Laws
of Depositor *
99-B.8.1 Fund Participation Agreement between *
Aetna Life Insurance and Annuity Company,
Alger American Fund and Fred Alger
Management, Inc. dated September 1,1993
99-B.8.2 Fund Participation Agreement between *
Aetna Life Insurance and Annuity Company
and Calvert Asset Management Company
(Calvert Responsibly Invested Balanced
Portfolio formerly Calvert Socially
Responsible Series) dated March 13, 1989
and amended December 27, 1993
99-B.8.3 Fund Participation Agreement between *
Aetna Life Insurance and Annuity
Company and Fidelity Distributors
Corporation dated February 1, 1994
(Variable Insurance Products Fund)
99-B.8.4 Fund Participation Agreement between *
Aetna Life Insurance and Annuity Company
and Fidelity Distributors Corporation
dated February 1, 1994 (Variable
Insurance Products Fund II)
<PAGE>
<PAGE>
99-B.8.5 Fund Participation Agreement between *
Aetna Life Insurance and Annuity
Company and Franklin Advisers, Inc.
dated January 31, 1989
99-B.8.6 Fund Participation Agreement between *
Aetna Life Insurance and Annuity
Company and Janus Aspen Series
dated April 19, 1994 and amended
June 15, 1994
99-B.8.7 Fund Participation Agreement between *
Aetna Life Insurance and Annuity
Company and Lexington Management
Corporation regarding Natural Resources
Trust dated December 1, 1988 and
amended February 11, 1991
99-B.8.8 Fund Participation Agreement between
Aetna Life Insurance and Annuity
Company and Advisers Management Trust
(now Neuberger & Berman Advisers
Management Trust) dated April 14, 1989
99-B.8.9 Fund Participation Agreement between *
Aetna Life Insurance and Annuity
Company and Scudder Variable Life
Investment Fund dated April 27, 1992
and amended February 19, 1993 and
August 13, 1993
99-B.8.10 Fund Participation Agreement between *
Aetna Life Insurance and Annuity
Company, Investors Research Corporation
and TCI Portfolios, Inc. dated
<PAGE>
<PAGE>
July 29, 1992 and amended December 22,
1992 and June 1, 1994
99-B.9 Opinion of Counsel ****
99-B.10.1 Consent of Independent Auditors _____
99-B.10.2 Consent of Counsel (see item 99-B.9 above) _____
99-B.16 Computation of Performance Data _____
99-B.15.1 Powers of Attorney (see signature page) _____
99-B.15.2 Authorization for Signatures *
99-B.27 Financial Data Schedule _____
</TABLE>
_______________
* Incorporated by reference
**** To be filed by amendment
**
<PAGE>
<PAGE>
Exhibit 99-b.4.1
<PAGE> 1
<PAGE>
[Aetna Logo] Aetna
Home Office: 151 Farmington Ave
Hartford, CT 06156
(800) 525-4225
You may call the toll-free number shown
above to get answers to questions or help
to resolve a complaint.
Group Combination Annuity Contract (Nonparticipating)
This contract sets forth all the rights and obligations of
Aetna Life Insurance and Annuity Company (Aetna) and the
Contract Holder(s) (you) named on the cover. This contract
constitutes the entire contract.
Specifications
--------------------------------------------------------------
Plan
SPECIMEN
--------------------------------------------------------------
Type of Plan
SPECIMEN
--------------------------------------------------------------
Contract Holder
SPECIMEN1
--------------------------------------------------------------
Contract No.
SPECIMEN
--------------------------------------------------------------
Effective Date
SPECIMEN
--------------------------------------------------------------
This contract is Delivered in YOUR STATE and is Subject to the
Laws of that
Jurisdiction
Please read this contract carefully. It sets forth, in
detail, your rights and obligations and also those of Aetna
Life Insurance and Annuity Company
Right to Cancel
--------------------------------------------------------------
The Contract Holder may cancel this Contract within 10 days of
receiving it by returning this Contract along with a written
notice to Aetna at the above address or to the agent from whom
it was purchased. Within 7 days after it receives the notice
of cancellation and this Contract at its Home Office, Aetna
will return the entire consideration paid plus any increase or
minus any decrease in the current value of any funds allocated
to the Separate Account.
<PAGE> 2
<PAGE>
Signed at the Home Office on the
Effective Date..
/s/Daniel P. Kearney /s/Susan E. Schechter
President Secretary
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED
ON INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE
AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT. THIS
CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA.
APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER
AN INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET
VALUE ADJUSTMENT FORMULA DOES NOT APPLY TO A GUARANTEED TERM
AT THE TIME OF ITS MATURITY.
Specifications
--------------------------------------------------------------
Guaranteed There is a guaranteed interest rate for
Contributions(s) held
Interest Rate in the Fixed Plus Account and the GA Account
(see Contract Schedule I).
--------------------------------------------------------------
Deductions There will be deductions for mortality and
expense risks and
from the administrative fees (see 3.07 and 5.07).
Separate
Account
--------------------------------------------------------------
Deductions Contribution(s) are subject to a deduction for
premium taxes,
from if any (see 3.02).
Contribution(s)
--------------------------------------------------------------
Withdrawal There may be a charge deducted upon withdrawal
(see Contract
Fee Schedule I).
This Contract is a legal contract. This Contract and any
attached document and subsequent endorsements constitutes the
entire legal relationship between Aetna and the Contract
Holder.
READ THIS CONTRACT CAREFULLY. This Contract sets forth, in
detail, all of the rights and obligations of both you and
Aetna. IT IS THEREFORE IMPORTANT THAT YOU READ THIS CONTRACT
CAREFULLY.
<PAGE> 3
<PAGE>
Table of Contents
Separate Account . . . . . . . . . . . . . . . . . . . . . 7
Separate Account: . . . . . . . . . . . . . . . . . . 7
Charges to Separate Account: . . . . . . . . . . . . . 7
Fixed Plus Account . . . . . . . . . . . . . . . . . . . . 7
Minimum Guaranteed Interest Rate: . . . . . . . . . . 7
Partial Withdrawal: . . . . . . . . . . . . . . . . . 7
Full Withdrawal: . . . . . . . . . . . . . . . . . . . 7
Guaranteed Accumulation Account (GA Account) . . . . . . . 8
Minimum Guaranteed Interest Rate: . . . . . . . . . . 8
Separate Account and GA Account . . . . . . . . . . . . . . 8
Withdrawal Fee: . . . . . . . . . . . . . . . . . . . 8
Separate Account, GA Account and Fixed Plus Account . . . . 9
Transfers: . . . . . . . . . . . . . . . . . . . . . . 9
Maintenance Fee: . . . . . . . . . . . . . . . . . . . 9
Systematic Withdrawal Option (SWO): . . . . . . . . . 9
Loan Interest Rate: . . . . . . . . . . . . . . . . . 9
Separate Account . . . . . . . . . . . . . . . . . . . . . 11
Charges to Separate Account: . . . . . . . . . . . . . 11
Variable Annuity Assumed Annual Net Return Rate: . . . 11
Annuity Option 2: . . . . . . . . . . . . . . . . . . 11
Fixed Annuity . . . . . . . . . . . . . . . . . . . . . . . 11
Minimum Guaranteed Interest Rate: . . . . . . . . . . 11
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . 13
1.01 Accumulation Period: . . . . . . . . . . . . . . 13
1.02 Adjusted Current Value: . . . . . . . . . . . . . 13
1.03 Annuitant: . . . . . . . . . . . . . . . . . . . 13
1.04 Annuity: . . . . . . . . . . . . . . . . . . . . 13
1.05 Beneficiary: . . . . . . . . . . . . . . . . . . 13
1.06 Code: . . . . . . . . . . . . . . . . . . . . . 13
1.07 Contract Holder: . . . . . . . . . . . . . . . . 13
1.08 Contribution: . . . . . . . . . . . . . . . . . . 13
1.09 Current Value: . . . . . . . . . . . . . . . . . 13
1.10 Deposit Period: . . . . . . . . . . . . . . . . . 14
1.11 Fixed Plus Account: . . . . . . . . . . . . . . . 14
1.12 Fixed Plus Account Guaranteed Interest Rate: . . 14
<PAGE> 4
<PAGE>
1.13 Fixed Annuity: . . . . . . . . . . . . . . . . . 14
1.14 Fund(s): . . . . . . . . . . . . . . . . . . . . 14
1.15 General Account: . . . . . . . . . . . . . . . . 14
1.16 Guaranteed Accumulation Account (GA Account): . . 14
1.17 GA Account Guaranteed Interest Rate: . . . . . . 14
1.18 Guaranteed Term (Term): . . . . . . . . . . . . . 15
1.19 Individual Account: . . . . . . . . . . . . . . . 15
1.20 Loan Account: . . . . . . . . . . . . . . . . . . 15
1.21 Loan Effective Date: . . . . . . . . . . . . . . 15
1.22 Loan Interest Rate: . . . . . . . . . . . . . . . 15
1.23 Maintenance Fee: . . . . . . . . . . . . . . . . 15
1.24 Market Value Adjustment (MVA): . . . . . . . . . 15
1.25 Matured Term Value: . . . . . . . . . . . . . . . 15
1.26 Matured Term Value Transfer: . . . . . . . . . . 16
1.27 Maturity Date: . . . . . . . . . . . . . . . . . 16
1.28 Monthly Average Corporates: . . . . . . . . . . . 16
1.29 Net Contribution: . . . . . . . . . . . . . . . . 16
1.30 Nonunitized Separate Account: . . . . . . . . . . 16
1.31 Participant: . . . . . . . . . . . . . . . . . . 16
1.32 Plan: . . . . . . . . . . . . . . . . . . . . . . 16
1.33 Reinvestment: . . . . . . . . . . . . . . . . . . 16
1.34 Separate Account: . . . . . . . . . . . . . . . . 17
1.35 Transfer: . . . . . . . . . . . . . . . . . . . . 17
1.36 Transferred Assets: . . . . . . . . . . . . . . 17
1.37 Valuation Period: . . . . . . . . . . . . . . . . 17
1.38 Variable Annuity: . . . . . . . . . . . . . . . . 17
1.39 Withdrawal Fee: . . . . . . . . . . . . . . . . . 17
II. GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . 17
2.01 Change of Contract: . . . . . . . . . . . . . . . 17
2.02 Change of Fund: . . . . . . . . . . . . . . . . . 18
2.03 Nonparticipating Contract: . . . . . . . . . . . 18
2.04 Payments: . . . . . . . . . . . . . . . . . . . . 18
2.05 State Laws: . . . . . . . . . . . . . . . . . . . 18
2.06 Control of Contract: . . . . . . . . . . . . . . 18
2.07 Designation of Beneficiary: . . . . . . . . . . . 19
2.08 Misstatements and Adjustments: . . . . . . . . . 19
2.09 Incontestability: . . . . . . . . . . . . . . . . 20
2.10 Grace Period: . . . . . . . . . . . . . . . . . . 20
2.11 Individual Certificates: . . . . . . . . . . . . 20
2.12 Aggregation of Contracts: . . . . . . . . . . . . 20
III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS 20
3.01 Individual Account: . . . . . . . . . . . . . . . 20
3.02 Net Contribution(s): . . . . . . . . . . . . . . 20
3.03 Limitation on Contributions: . . . . . . . . . . 21
3.04 Experience Credits: . . . . . . . . . . . . . . . 21
3.04 Fund Record Units: . . . . . . . . . . . . . . . 21
3.05 Fund Record Unit Value: . . . . . . . . . . . . 21
3.06 Fund Net Return Factors: . . . . . . . . . . . . 21
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3.07 Market Value Adjustment (MVA): . . . . . . . . . 22
3.08 Transfer(s): . . . . . . . . . . . . . . . . . . 23
3.09 Notice to the Contract Holder: . . . . . . . . . 23
3.10 Loans: . . . . . . . . . . . . . . . . . . . . . 24
3.11 Manner and Timing of Distributions: . . . . . . . 25
3.12 Withdrawal: . . . . . . . . . . . . . . . . . . . 26
3.13 Withdrawal Value: . . . . . . . . . . . . . . . . 26
3.14 Withdrawal Restrictions: . . . . . . . . . . . . 26
3.15 Withdrawals from the GA Account: . . . . . . . . 27
3.16 Withdrawal Fee Applicable to Funds and GA Account: 27
3.17 Payment of Fixed Plus Account Full Withdrawal: . 28
3.18 Reinstatement: . . . . . . . . . . . . . . . . . 28
3.19 Payment of Minimum Current Value: . . . . . . . . 28
3.20 Amount Payable at Death (Before Annuity Payments
Start): . . . . . . . . . . . . . . . . . . . . . . . 28
IV. NON-ANNUITY DISTRIBUTION OPTIONS . . . . . . . . . . . 29
4.01 Distribution Options: . . . . . . . . . . . . . . 29
4.02 Estate Conservation Option: . . . . . . . . . . . 29
4.03 Systematic Withdrawal Option: . . . . . . . . . . 30
V. ANNUITY PROVISIONS . . . . . . . . . . . . . . . . . . . 32
5.01 Choices: . . . . . . . . . . . . . . . . . . . . 32
5.02 Terms of Annuity Options: . . . . . . . . . . . . 33
5.03 Annuity Payments to Annuitant: . . . . . . . . . 33
5.04 Death Provision: . . . . . . . . . . . . . . . . 33
5.05 Fund Annuity Units: . . . . . . . . . . . . . . . 34
5.06 Fund Annuity Unit Value: . . . . . . . . . . . . 34
5.07 Fund Annuity Net Return Factor: . . . . . . . . . 34
5.08 Annuity Options: . . . . . . . . . . . . . . . . 34
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Contract Schedule I
Level A
Accumulation Period
Separate Account
______________________________________________________________
Separate Account:
Variable Annuity Account C
Charges to Separate Account:
A daily charge is deducted from any portion of the
Current Value allocated to the Separate Account. The
charge is determined by the value of total assets held by
Aetna under this Contract and other Aetna contracts of
the same class, on each anniversary date of this
Contract. The daily charge for Annuity mortality and
expense risk and profit (M & E) will be adjusted (up or
down) no less often than annually to reflect changes in
the Current Value of all Plan Accounts. The charge will
include a daily administrative charge which will not
exceed [0.25%] on an annual basis.
Total Assets M & E Administrative Charge
(annual effective rate)(annual effective rate)
_______________________________________________________
Less than $500,000 1.25%0.25%
500,000 - 1,000,000 1.25%0.25%
1,000,001 - 5,000,000 1.25%0.25%
5,000,001 - 15,000,000 1.25%0.25%
Greater than 15,000,000 1.25%0.25%
Initial Charges will be based on Aetna's estabed year
end asset level for the Contract Holder
Fixed Plus Account
______________________________________________________________
Minimum Guaranteed Interest Rate:
[3%] (effective annual rate of return).
Beginning on the tenth anniversary of the effective
date of an Individual Account, Aetna will credit
amounts with an interest rate that is at least 0.25%
higher than the then declared interest rate for
Individual Accounts before the tenth anniversary.
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Partial Withdrawal:
The [20%] annual limit applicable to a partial
withdrawal from the Fixed Plus Accounts will be waived
when the withdrawal is:
a) due to the Participant's death (within [six (6)]
months of the Participant's date of death), before
Annuity benefit payments begin; or
b) used to purchase Annuity benefits.
Full Withdrawal:
The Payment of Fixed Plus Account Full Withdrawal
provision will be waived when the withdrawal is:
a) Due to the Participant's death before Annuity
payments begin and request for payment is received
within six (6) months after the Participant's date
of death;
b) Used to purchase Annuity benefits; or
c) When the amount in the Fixed Plus Account is
$3,500 or less and no amount has been surrendered,
transferred, taken as a loan or used to purchase
Annuity benefits during the prior 12 months.
Guaranteed Accumulation Account (GA Account)
______________________________________________________________
Minimum Guaranteed Interest Rate:
[3%] (effective annual rate of return).
Separate Account and GA Account
______________________________________________________________
Withdrawal Fee:
Length of Time from Individual
Account(s) Effective Date (Years)Withdrawal Fee
Fewer than 5 5%
5 or more, but fewer than 7 5%
7 or more, but fewer than 9 5%
9 or more, but fewer than 10 5%
10 or more 5%
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The withdrawal fee will not be deducted from any
portion of the Individual Account(s) Current Value
which is paid:
- Due to the Participant's death before Annuity
payments begin;
- Used to purchase Annuity benefits;
- Due to the election of the Estate Conservation
Option (ECO) or the Systematic Withdrawal Option
(SWO) (see Section IV);
- In an amount equal to or less than [10%] of the
Individual Account Current Value, as part of the
first partial withdrawal request in a calendar
year to a Participant who is at least age 59 1/2
and less than 70 1/2. The Individual Account
Current Value is calculated as of the date the
partial withdrawal request is received in good
order at Aetna's Home Office. Any outstanding
loans from the Individual Account are excluded
when calculating the Individual Account Current
Value. This provision does not apply to partial
withdrawal due to loan defaults made from the
Individual Account and does not apply to full
withdrawal requests. This provision may not be
exercised if SWO is elected;
- When the Individual Account(s) Current Value is
[$3,500] or less and no amount has been withdrawn,
taken as a loan or used to purchase Annuity
benefits during the prior [12] months;
- To relieve a Participant's "financial hardship,"
as may be allowed for annuity contracts under
Section 403(b) of the Code or other applicable
Internal Revenue Service rules or regulations; or
- On account of a Participant's separation from
service. The Contract Holder must submit
documentation satisfactory to Aetna to confirm
that the Participant is no longer providing
services to the employer.
- The withdrawal fee will never exceed 8 1/2% of the
total Contributions made to the Individual
Account.
Separate Account, GA Account and Fixed Plus Account
______________________________________________________________
Transfers:
An unlimited number of Transfers may be made during the
Accumulation Period.
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Maintenance Fee:
An annual Maintenance Fee may be charged, as determined
by the value of total assets held by Aetna under this
Contract and other Aetna contracts of the same class,
on each anniversary date of this Contract. The
Maintenance Fee may go up or down each year. Where
applicable, the Maintenance Fee will be charged for
each Participant in the Contract.
Total Assets Maintenance Fee
______________________________________________________________
Less than $500,000 $25.00
500,000 - 1,000,000 $25.00
1,000,001 - 5,000,000 $25.00
5,000,001 - 15,000,000 $25.00
Greater than 15,000,000 $25.00
Initial charges will be based on Aetna's estimated year
end asset level for the Contract Holder
Systematic Withdrawal Option (SWO):
The Specified Payment or Specified Percentage may not
be greater than 20% of the Individual Account's Current
Value at the time of election. The Specified Period may
not be less than 5 years.
Loan Interest Rate:
a) Plans subject to ERISA: a Loan Interest Rate is
set on the first business day of each month. For
each loan, the initial Loan Interest Rate is equal
to the Monthly Average Corporates for the calendar
month beginning two months before the calendar
month in which the Loan Effective Date occurs.
The initial Loan Interest Rate is effective for a
period of not less than three months and not more
than one year. The period is specified in the
loan agreement. For each period, the Loan
Interest Rate is adjusted if the new rate is at
least [0.5%] higher or lower than the previous
rate. The Participant will receive reasonable
notification of any change to the Loan Interest
Rate.
b) Plans not subject to ERISA: [6%] on an annual
<PAGE> 11
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basis.
See Section I. - DEFINITIONS for explanations.
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Contract Schedule II
Annuity Period
Separate Account
______________________________________________________________
Charges to Separate Account:
A daily charge at an annual effective rate of 1.25% for
mortality and expense risk and profit (M&E) is deducted
from any portion of the Current Value allocated to a
Variable Annuity. The administrative charge is
established upon election of an Annuity option. This
charge will not exceed [0.25%].
Variable Annuity Assumed Annual Net Return Rate:
If a Variable Annuity is chosen, an assumed annual net
return rate of [5.0%] may be elected. If [5.0%] is not
elected, Aetna will use an assumed annual net return
rate of [3.5%].
The daily net return rate factor for an assumed annual
net return rate [3.5%] per year is [0.9999058].
The daily net return rate factor for an assumed annual
net return ate [5.0%] per year is [0.9998663].
If the portion of a Variable Annuity payment for any
Fund is not to decrease, the Annuity return factor
under the Separate Account for that Fund must be:
a) [4.75%] on an annual basis plus an annual return
of up to [0.25%] to offset the administrative
charge set at the time Annuity payments commence
if an assumed annual net return rate of [3.5%] is
chosen; or
b) [6.25%] on an annual basis plus an annual return
of up to [0.25%] to offset the administrative
charge set at the time Annuity payments commence,
if an assumed annual net return rate of [5%] is
chosen.
Annuity Option 2:
For amounts invested in the GA Account or one or more
of the Fund(s), the number of years must be at least
[five (5)] and not more than [thirty (30)] and the
Annuity may be a Fixed or Variable Annuity.
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For amounts invested in the Fixed Plus Account, the
number of years must be at least [five (5)] and not
more than [thirty (30)] and the Annuity must be a Fixed
Annuity.
Fixed Annuity
______________________________________________________________
Minimum Guaranteed Interest Rate:
[3.0%] (effective annual rate of return).
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Definitions
______________________________________________________________
1.01 Accumulation Period:
The period during which Net Contribution(s) are
applied to an Individual Account.
1.02 Adjusted Current Value:
The Current Value (See 1.09) of an Individual
Account (See 1.19 and 3.01) plus or minus any
applicable aggregate GA Account Market Value
Adjustment, if applicable (See 3.08).
1.03 Annuitant:
A person on whose life an Annuity payment is based
under this Contract.
1.04 Annuity:
Payment of an income under the Annuity Provisions
of Section V:
a) For the life of one or two persons;
b) For a stated period; or
c) For some combination of (a) and (b).
Upon certification by the employer of the
Participant's total disability, acceptance of
retirement or termination of employment, the
Participant has the right to elect an Annuity
Option. Upon written direction from the Employer,
Aetna will pay annuity benefits directly to the
Participant and as payor, Aetna will be
responsible for withholding any applicable federal
or state taxes and reporting such sums and filing
any related forms with the Internal Revenue
Service and/or to any applicable state taxing
authorities. In the event of the death of the
Participant, Aetna will distribute the accumulated
balance of the deceased Participant's Individual
Account, without surrender charges, as previously
directed by the electing Participant, or in the
absence of such directions, as directed by the
Participant's beneficiary.
1.05 Beneficiary:
The person named to receive any benefits which
remain under the Contract after the Participant's
death. The Contract Holder is the Contract
Beneficiary. Participants designate a Plan
beneficiary for their Individual Accounts.
1.06 Code:
The Internal Revenue Code of 1986, as amended.
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1.07 Contract Holder:
The entity, named on the cover of this Contract,
to which the Contract is issued.
1.08 Contribution:
A payment received at Aetna's Home Office and
allocated to this Contract.
1.09 Current Value:
For an Individual Account (See 1.19), the Current
Value is the total of:
a) The amount, if any, in the Fixed Plus
Account, with interest earned to date;
b) The amount, if any, in the GA Account, with
interest earned to date; and
c) The value of all Fund Record Units (See
3.05), if any, as of the most recent
Valuation Period; plus
d) Any amount due to experience credits; less
e) Any Maintenance Fee(s) due.
1.10 Deposit Period:
A calendar month, a calendar quarter, or any other
period of time specified by Aetna during which Net
Contribution(s), Transfers and Reinvestments are
accepted into the GA Account for one or more
Terms.
1.11 Fixed Plus Account:
An accumulation option with a guaranteed minimum
interest rate. Aetna may credit a higher rate
which is not guaranteed. No withdrawal fee
applies. However, the portion that may be
withdrawn or transferred in a 12 month period is
restricted (See 3.09, 3.18 and 3.19).
1.12 Fixed Plus Account Guaranteed Interest Rate:
Aetna will add interest daily at an annual rate no
less than that shown on Contract Schedule I on any
Net Contribution(s) to the Fixed Plus Account.
Aetna may add interest daily at a higher rate
determined by its Board of Directors.
1.13 Fixed Annuity:
An Annuity with payments that do not vary in
amount.
1.14 Fund(s):
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The open-end registered management investment
companies (mutual funds) in which the Separate
Account invests.
1.15 General Account:
The account holding the assets of Aetna, other
than those assets held in Aetna's Separate
Account(s) and Nonunitized Separate Account(s).
1.16 Guaranteed Accumulation Account (GA Account):
An accumulation option where Aetna guarantees
stipulated rate(s) of interest for a specified
period of time. All assets of Aetna, including
amounts in the Nonunitized Separate Account, are
available to meet the guarantees for the GA
Account.
1.17 GA Account Guaranteed Interest Rate:
Aetna will declare the interest rate(s) applicable
to a specific Guaranteed Term at the start of the
Deposit Period for that Guaranteed Term. The
rate(s) are guaranteed by Aetna for that Deposit
Period and the ensuing Guaranteed Term. The
Guaranteed Interest Rates are annual effective
yields. That is, interest is credited daily at a
rate that will produce the Guaranteed Interest
Rate over the period of a year. No Guaranteed
Interest Rate will ever be less than the Minimum
Guaranteed Interest Rate shown on Contract
Schedule I.
For Guaranteed Terms of one year or less, one
Guaranteed Interest Rate is credited for the full
Guaranteed Term. For longer Guaranteed Terms, an
initial Guaranteed Interest Rate is credited from
the date of deposit to the end of a specified
period within the Guaranteed Term. There may be
different Guaranteed Interest Rate(s) declared for
subsequent specified time intervals throughout the
Guaranteed Term.
1.18 Guaranteed Term (Term):
The period of time for which GA Account Guaranteed
Rates are guaranteed on Net Contributions,
Transfers and Reinvestments made into a current
Deposit Period for the GA Account. Such period
begins on the day following the close of the
Deposit Period and ends on the designated Maturity
Date. Guaranteed Terms are offered at Aetna's
<PAGE> 19
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discretion for various lengths of time ranging up
to and including ten years and are classified as
follows:
Short Term: Three (3) or fewer years. Amounts
allocated to a short Term are held in the General
Account.
Long Term: More than three (3) years, but not more
than ten (10). Amounts allocated to a long Term
are held in the Nonunitized Separate Account.
During a Deposit Period, Aetna may make available
any number of Guaranteed Terms. The Contract
Holder, or Participant, if authorized in writing
by the Contract Holder, may allocate Net
Contributions and Transfers into any or all of the
available Guaranteed Terms.
1.19 Individual Account:
Account(s) established, as directed by the
Contract Holder, for each Participant to keep a
record of Current Value (See 1.09) and
transactions.
1.20 Loan Account:
For each loan taken by a Participant, the loan
amount transferred from the investment options is
credited to the Loan Account.
1.21 Loan Effective Date:
The date of on which Aetna receives a loan
agreement in good order at its Home Office.
1.22 Loan Interest Rate:
The interest rate Aetna charges on a loan(see
Contract Schedule I).
1.23 Maintenance Fee:
The Maintenance Fee will be deducted during the
Accumulation Period from the sum of the Current
Value of Participant's Individual Accounts (see
2.12 Aggregation of Contracts) and upon full
surrender of the Participant's Individual
Accounts, unless otherwise directed by the
Contract Holder. The Maintenance Fee for
Individual Accounts will be as established for the
Contract on Contract Schedule I. The Maintenance
Fee is deducted on a pro rata basis from all
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options used under a Participant's Individual
Account. However, the Maintenance Fee does not
apply to each separate Individual Account
established for purposes of a lump sum
Contribution.
1.24 Market Value Adjustment (MVA):
An adjustment to the amount prematurely withdrawn
or Transferred from a GA Account Guaranteed Term
prior to the end of that Guaranteed Term. The
adjustment reflects the change in the value of the
investment due to changes in interest rates since
the date of deposit and is computed using the
formula given in 3.08. The adjustment is expressed
as a percentage of each dollar being withdrawn.
1.25 Matured Term Value:
The amount payable on a GA Account Guaranteed
Term's Maturity Date.
1.26 Matured Term Value Transfer:
During the calendar month following a GA Account
Maturity Date, the Contract Holder, or Participant
if authorized in writing by the Contract Holder,
may notify Aetna's Home Office in writing to
Transfer or withdraw all or part of the Matured
Term Value, plus interest at the new Guaranteed
Interest Rate accrued thereon, from the GA Account
without an MVA. This provision only applies to the
first such written request received from the
Contract Holder, or Participant if authorized in
writing by the Contract Holder, during this period
for any Matured Term Value.
1.27 Maturity Date:
The last day of a GA Account Guaranteed Term.
1.28 Monthly Average Corporates:
Moody's Corporate Bond Yield Average-Monthly
Average Corporates published by Moody's Investors
Service, or its successor, or a substantially
similar average as may be allowed by law or
regulation.
1.29 Net Contribution:
A Contribution less any applicable premium taxes.
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1.30 Nonunitized Separate Account:
An account established by Aetna under Section 38a-
433 of the Connecticut General Statutes that holds
assets for GA Account Terms (See 1.18) greater
than three years. The Contract Holder and/or
Participant does not participate in the investment
gain or loss from the assets held in the
Nonunitized Separate Account. Such gain or loss is
borne entirely by Aetna. Assets in this account
may be charged with liabilities arising out of any
other Aetna business.
1.31 Participant:
A person who participates in the Plan of the
Contract Holder named on the cover of this
Contract.
1.32 Plan:
The Plan, named on the cover of this Contract,
established under Code Section 403(b). The Plan is
not a part of the Contract and Aetna is not bound
by its terms.
1.33 Reinvestment:
Aetna will mail a notice to the Contract Holder,
or Participant if applicable, at least eighteen
(18) calendar days before a Guaranteed Term's
Maturity Date. This notice will contain the Terms
available during the current Deposit Periods with
their Guaranteed Interest Rate(s) and projected
Matured Term Value. If no specific direction is
given by the Contract Holder or Participant, if
applicable, prior to the Maturity Date, each
Matured Term Value will be reinvested in the
current Deposit Period for a Guaranteed Term of
the same duration. If a Guaranteed Term of the
same duration is unavailable, each Matured Term
Value will automatically be reinvested in the
current Deposit Period for the next shortest
Guaranteed Term available in the same
classification. If no shorter Guaranteed Term is
available, the next longer Guaranteed Term will be
used. Aetna will mail a confirmation statement to
the Contract Holder or Participant, if applicable,
the next business day after the Maturity Date.
This notice will state the Guaranteed Term and
Guaranteed Interest Rate(s) which will apply to
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the reinvested Matured Term Value.
1.34 Separate Account:
An account, established by Aetna under Section
38a-433 of the Connecticut General Statutes, that
buys and holds shares of the Fund(s) available
under this Contract. 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 of such amounts. Amounts in the Separate
Account are not generally guaranteed and are held
at market value. The assets of the Separate
Account, to the extent of reserves and other
contract liabilities of the Account, cannot be
charged with other Aetna liabilities arising out
of any other Aetna business.
1.35 Transfer:
The movement of invested amounts among the
available Fund(s); the Fixed Plus Account and the
GA Account during the Accumulation Period.
1.36 Transferred Assets:
Transferred Assets are the value of prior
contributions with another carrier into an
existing Plan which are deposited into this
Contract as of the date the amount is received in
good order by Aetna. Transferred Assets, less any
premium tax, will be allocated to Participant
Individual Accounts in amounts authorized by the
Contract Holder.
1.37 Valuation Period:
The period of time commencing at the end of one
valuation date and ending at the end of the next
valuation date.
1.38 Variable Annuity:
An Annuity with payments that vary with the net
investment results of the Funds available during
the Annuity period.
1.39 Withdrawal Fee:
If all or any portion of an Individual Account
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Value is withdrawn during the Accumulation Period,
a percentage of the amount withdrawn may be
deducted so that the Aetna may recover sales and
administrative related expenses.
II. GENERAL PROVISIONS
______________________________________________________________
2.01 Change of Contract:
Only an authorized officer of Aetna may change the
terms of this Contract. Aetna reserves the right
to modify this Contract to meet the requirements
of applicable state and federal laws or
regulations. Aetna will notify the Contract Holder
and Certificate Holder in writing of any changes.
Aetna may change the tables for determining the
amount of Annuity benefit payments without
Contract Holder consent. Such a change will not
become effective earlier than twelve months after
(1) the effective date of the Contract, or (2) the
effective date of a previous change. Aetna will
notify the Contract Holder in writing at least
thirty (30) days before the effective date of the
change. The change will apply to all current and
future Individual Accounts.
2.02 Change of Fund:
Aetna, or the Separate Account may:
a) Change the Fund(s) in which the Separate
Account invests; and/or
b) Replace the shares of any Fund(s) held in the
Separate Account with shares of any other
Fund(s).
Changes must be:
a) Approved by a majority vote in the Separate
Account with respect to the Fund(s) whose
shares are to be replaced
b) Deemed necessary by Aetna under the
Investment Company Act of 1940; or
c) Deemed necessary by Aetna to accomplish the
purpose of the Separate Account.
Aetna will notify the Contract Holder of any such
change.
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2.03 Nonparticipating Contract:
The Contract Holder, Participants, or
Beneficiaries will not have a right to share in
the earnings of Aetna.
2.04 Payments:
a) Aetna will make distributions as directed by
the Contract Holder. Aetna will determine the
amount of payments based on the Individual
Account Current Value as of the date on which
a request is received in good order at
Aetna's Home Office. Payments will be made
within seven (7) calendar days of receipt of
a written request in good order at Aetna's
Home Office.
b) Aetna may defer payments:
1) for a period of up to six (6) months
(unless not allowed by state law); and
2) as allowed by federal law.
2.05 State Laws:
This Contract complies with the laws of the state
in which it is delivered. Any cash, death or
Annuity payments are equal to or greater than the
minimum required by such laws. Annuity tables for
legal reserve valuation shall be as required by
state law. Such tables may be different from
Annuity tables used to determine Annuity payments.
2.06 Control of Contract:
The Contract Holder, or authorized designee of the
Contract Holder, may make any choices allowed
under this Contract with respect to Individual
Accounts. Any choices made under this Contract
must be in writing. Until receipt of any such
written choice at its Home Office, Aetna may rely
on any prior choices made. Neither the Contract
nor any Individual Account is subject to the
claims of Participants' creditors, except to the
extent permitted by law.
With respect to Transfers and allocation of Net
Contributions, the Contract Holder may authorize
Aetna in writing to accept written directions
directly from Participants. The Contract Holder
may also authorize Transfers and allocation
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changes to be made by Participants over the
telephone services made available by Aetna.
The Contract Holder may, by written direction to
Aetna, allow Participants to select the investment
options of the Employer Account and/or the
Employee Account. No distributions will be made
from the Employer Account or the Employee Account
without the Contract Holder's and Participant's
written direction to Aetna, unless otherwise
directed by the Plan. An in-service transfer
pursuant to IRS Revenue Ruling 90-24, subject to
any applicable withdrawal fee, may be made only by
written direction from the Contract Holder and
Participant to Aetna, unless otherwise specified
by the Plan. Checks for in-service transfers will
be made payable only to the acquiring investment
provider. Participants have no rights to direct
Aetna as to payments under the Contract unless
countersigned by the Contract Holder.
a) Nontransferable and Nonassignable:
This Contract and any Individual Accounts are
nontransferable and nonassignable, except to
Aetna in the event of a loan or pursuant to a
"qualified domestic relations order" as set
forth under the Retirement Equity Act of 1984
(REA). In the event a loan is requested, the
Current Value of the Employee Account
necessary to cover the loan amount plus
interest must be assigned to Aetna.
b) ERISA/REA Requirements:
The Contract Holder shall notify Aetna in
writing of the applicability of Title I of
the Employee Retirement Income Security Act
of 1974 (ERISA), as amended by subsequent law
including REA, to the Plan. Aetna shall rely
on the Contract Holder's determination and
representation of applicability. With respect
to any distribution made from an Employee or
Employer Account from a Contract subject to
ERISA, the Contract Holder must certify in
writing that all the appropriate REA
requirements have been met and that the
distribution is in accordance with the terms
of the Plan.
c) Participant Rights/Employee Account:
The Participant has a nonforfeitable right to
the value of his or her Employee Account
pursuant to Code Section 403(b) and the terms
of the Plan as interpreted by the Contract
Holder (see 1.07). The Contract Holder and
Participant will jointly make all choices
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under the Contract for the Employee Account.
d) Participant Rights/Employer Account:
The Participant has a nonforfeitable right to
the value of his or her Employer Account
pursuant to the terms of, and to the extent
of his or her vested percentage under, the
Plan as interpreted by the Contract Holder.
It is the Contract Holder's responsibility to
maintain records of the Participant's vesting
percentages. Aetna will not maintain such
records. The Contract Holder will make all
choices under the Contract for the Employer
Account, except as otherwise provided in this
Contract.
The Contract Holder and each Participant
hereunder have agreed in writing to the above
terms and conditions, except as otherwise
provided, to have the Contract Holder make
all choices under the Contract, except as
otherwise provided, and to be bound by the
Contract Holder's directions to Aetna. The
Contract Holder's and Participant's
signatures are required for each request for
a distribution.
2.07 Designation of Beneficiary:
The Contract Holder is the Beneficiary under this
Contract. The Participant designates a beneficiary
with the employer, pursuant to the terms of the
Plan.
2.08 Misstatements and Adjustments:
If Aetna finds the age of any payee to be
misstated, the correct facts will be used to
adjust payments.
2.09 Incontestability:
Aetna cannot cancel this Contract because of any
error of fact on the application.
2.10 Grace Period:
This Contract will remain in effect even if
Contributions are not continued except as provided
in 3.21.
2.11 Individual Certificates:
Aetna shall issue certificates to the Contract
Holder or Participants as required by the state in
which this Contract is delivered. The certificate
will summarize certain provisions of the Contract.
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Certificates are for information only and are not
a part of the Contract.
2.12 Aggregation of Contracts:
The Charges to the Separate Account and
Maintenance Fee described in Contract Schedule I
vary by the Current Value of Individual Accounts.
In determining such Current Value, Individual
Accounts of the following contracts will be
aggregated:
a) this Contract, and
b) Aetna contracts of the same class as this
Contract covering employees of the employer
maintaining the Plan.
For purposes of determining the Daily Asset Charge
and Maintenance Fee under this Contract, where
such other contract comes into existence after the
Effective Date, the aggregation will commence no
later than the first day of the next succeeding
anniversary date. Where such other contract is in
existence prior to, or on the Effective Date, the
aggregation will commence on the Effective Date.
III. CONTRIBUITIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS
______________________________________________________________
3.01 Individual Account:
Aetna will maintain Individual Accounts for Plan
Participants as directed by the Contract Holder.
The Individual Accounts may be as follows:
a) Employer Account: This Individual Account
will be credited with employer Contributions;
and
b) Employee Account: This Individual Account
will be credited with employee Contributions,
specifically employee salary reduction
contributions.
The Contract Holder may make one or more lump sum
Contribution(s) on behalf of one or more
Participants. Aetna will establish a separate
Individual Account for each lump sum Contribution
made, of more than a minimum amount stated by
Aetna, on behalf of a Participant for whom an
Individual Account exists at the time the lump sum
Contribution is made. Such Individual Account(s)
will be designated as Employer Accounts or
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Employee Accounts as instructed by the Contract
Holder.
Aetna reserves the right not to accept any
contibution.
3.02 Net Contribution(s):
The Net Contribution equals the actual
Contribution less any applicable premium tax.
Generally, Aetna will deduct the premium tax when
Annuity benefits are purchased (See Section V). If
Aetna determines that under applicable state law,
it must pay a premium tax when the Contribution is
received, or at any other time, it may deduct the
tax at that time. The Net Contribution(s) may be
allocated among the following investment options:
a) The Fixed Plus Account; and
b) The current Deposit Period(s) for Guaranteed
Terms under the GA Account; and
c) The Fund(s) in which the Separate Account
invests.
The Contract Holder must tell Aetna the percentage
of all Net Contributions to allocate to one or
more of the investment options. The Contract
Holder or, if permitted by the Contract Holder,
the Participant may change the allocation of
future Net Contributions at any time, without
charge. Aetna reserves the right to require a
minimum Contribution amount per Individual
Account.
3.03 Limitation on Contributions:
The Contribution(s) made to a Participant's
Individual Account(s) in any year cannot exceed
the lesser of the amount determined under the
exclusion allowance of Code Section 403(b)(2) or
the annual additions limitation of Code Section
415(c)(1).
In addition, in no event may the Contribution(s)
attributable to elective deferrals as defined in
Code Section 402(g) exceed $9,500 (or, such larger
amount as adjusted by the Secretary of the
Treasury) during any calendar year, unless the
alternate limitation of Code Section 402(g)(8)
applies.
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3.04 Experience Credits:
Aetna may apply experience credits under this
Contract. Any such credits will be computed as
decided by Aetna.
3.04 Fund Record Units:
The portion of the Net Contribution(s) applied to
each Fund under the Separate Account will
determine the number of Fund Record Units credited
to the Individual Account for that Fund. This
number is equal to the Net Contribution applied to
the Fund divided by the Fund Record Unit Value
(See 3.06) for the Valuation Period in which the
Contribution is received in good order.
3.05 Fund Record Unit Value:
A Fund Record Unit Value is computed by
multiplying the Net Return Factor (See 3.07) for
the current Valuation Period by the Fund Record
Unit Value for the previous Period. The dollar
value of a Fund Record Unit, Separate Account
assets, and Variable Annuity payments may go up or
down due to investment gain or loss.
3.06 Fund Net Return Factors:
The Net Return Factor(s) are used to compute all
Separate Account record units for any Fund. The
Net Return Factor for each Fund is equal to
1.0000000 plus the Net Return Rate.
The Net Return Rate is equal to:
a) The value of the shares of the Fund held by
the Separate Account at the end of a
Valuation Period; minus
b) The value of the shares of the Fund held by
the Separate Account at the start of the
Valuation Period; plus or minus
c) Taxes (or reserves for taxes) on the Separate
Account (if any);
d) Divided by the total value of the Fund Record
Units and Fund Annuity Units of the Separate
Account at the start of the Valuation Period;
e) Minus a Separate Account charge at an annual
effective rate as shown on Contract Schedule
I for Annuity mortality and expense risks and
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profit and a daily administrative charge
which will not exceed the amount shown on
Contract Schedule I on an annual basis. The
administrative charge may be changed annually
except for amounts which have been used to
purchase an Annuity.
A net return rate may be more or less than 0%.
The value of a share of the Fund is equal to the
net assets of the Fund divided by the number of
shares outstanding.
3.07 Market Value Adjustment (MVA):
a) An MVA will be applied to any withdrawal from
a GA Account Term before the Maturity Date
due to:
1) A Transfer;
2) A full or partial withdrawal;
3) A payment of a premium for Annuity
Option 2.
The amount of the withdrawal will be adjusted to a
market value amount as described in
b) Market value adjusted amounts will be equal
to the amount withdrawn multiplied by the
following ratio:
x
______
365
(1 + 1)
________________
x
______
365
(1 + j)
Where:
i is the Deposit Period Yield
j is the Current Yield
x is the number of days remaining, (computed from
Wednesday of the week of withdrawal) in the Term.
c) The Deposit Period Yield and Current Yield
will be determined as follows:
1) At the close of the last business day of
each week of the Deposit Period, a yield
will be computed as the average of the
yields on that day of U.S. Treasury
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Notes which mature in the last three
months of the Term.
2) The Deposit Period Yield is the average
of those yields for the Deposit Period.
If withdrawal is made prior to the close
of the Deposit Period, it is the average
of those yields on each week preceding
withdrawal.
3) The Current Yield is the average of the
yields on the last business day of the
week preceding withdrawal on the same
U.S. Treasury Notes included in the
Deposit Period Yield.
4) In the event that no U.S. Treasury Notes
which mature in the last three months of
the Term exist, Aetna reserves the right
to use the U.S. Treasury Notes that
mature in a following quarter.
d) Full and partial withdrawals as well as
Transfers made
1) within six (6) months after the
Participant's date of death under the
Amount Payable at Death provision (See
3.22) will be the greater of:
(a) The aggregate MVA amount which is
the sum of all market value
adjusted amounts calculated due to
a withdrawal of amounts (for
withdrawal or Transfer) from Terms
prior to the end of those Terms.
The aggregate MVA may be either
positive or negative; or
(b) The applicable portion of the
Current Value in the GA Account.
2) After the six month period following
death, the withdrawal or Transfer will
be the aggregate MVA amount (i.e.,
including all MVAs).
e) The greater of the aggregate MVA amount or
the applicable portion of the Current Value
in the GA Account is applied to amounts
withdrawn from the GA Account for payment of
a premium under Annuity Options 3 or 4.
3.08 Transfer(s):
Before an Annuity option is elected, all or any
portion of the Adjusted Current Value of the
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Individual Account may be transferred from any
Fund, the Fixed Plus Account or the GA Account:
a) To any other allowable Fund; or
b) To the Fixed Plus Account; or
c) To any Guaranteed Term of the GA Account with
a different classification available in the
Current Deposit Period.
Transfer requests can be submitted as a percentage
or as a dollar amount. Aetna may establish a
minimum transfer amount. Within a Guaranteed Term
classification, the amount transferred will be
withdrawn from the oldest Deposit Period, then
from the next oldest, and so on until the amount
requested is satisfied.
Amounts applied to Guaranteed Terms of the GA
Account may not be transferred to the Funds, the
Fixed Plus Account or to another Guaranteed Term
during the Deposit Period or 90 days after the
close of the Deposit Period except for Matured
Term Value(s) during the calendar month following
the Term's Maturity Date.
Transfers from Guaranteed Terms of the GA Account
are subject to the MVA provisions of 3.08.
During each rolling twelve (12) month period, up
to 20% of the Current Value held in the Fixed Plus
Account may be transferred to one or more of the
Fund(s), and/or the GA Account's then-current
Deposit Period. The 20% limit is reduced by any
partial withdrawals, loans or amounts used to
purchase an Annuity during the twelve (12) month
period. Aetna reserves the right to include
amounts paid under ECO and SWO provisions for
purposes of applying this 20% limit. This limit is
waived when the balance in the Fixed Plus Account
is $1,000 or less on the date the Transfer request
is received in good order at Aetna's Home Office.
The Contract Holder, or Participant if authorized
in writing by the Contract Holder, may make an
unlimited number of Transfers during the
Accumulation Period.
3.09 Notice to the Contract Holder:
Each year, Aetna will notify the Contract Holder
of:
a) The value of any amounts held in:
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1) The Fixed Plus Account,
2) The GA Account,
3) The Fund(s) for the Separate Account;
b) The number of any Fund Record Units;
c) The Fund Record Unit Value(s);
d) The Loan Account balance; and
e) The amount available for withdrawal.
This information will be as of a date no more than
sixty (60) days before the date of the notice.
3.10 Loans:
During the accumulation period, loans are granted
(1) as permitted under applicable law; (2) subject
to the terms and conditions of the loan agreement;
and, (3) in accordance with the following
provisions.
a) Amount available for loan: The amount
available for loan is limited to the vested
individual account current value attributable
to Participant contributions, plus any
amounts allowed by the employer's plan.
Amounts available from some investment
options may be subject to limitations
specified in the loan agreement. To obtain
the loan amount requested, these limitations
may require the Participant to transfer
funds. A market value adjustment may apply
to amounts transferred.
The minimum loan amount is $1,000. The
maximum loan amount is the lesser of:
1) Fifty percent (50%) of the vested
individual account current value,
including any Loan Account, reduced by
the amount of any outstanding loan
balance on the Loan Effective Date; or
2) Fifty thousand dollars ($50,000) reduced
by the highest outstanding loan balance
for the preceding 12 months.
The amount of all outstanding loans cannot
exceed $50,000.
b) Loan Interest Rate: A Loan Interest Rate is
set on the first business day of each month.
For each loan, the initial Loan Interest Rate
is the rate for the calendar month in which
the Loan Effective Date occurs. The initial
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Loan Interest Rate is effective for a period
of not less than three months and not more
than one year. The period is specified in
the loan agreement. For each period, the
Loan Interest Rate is adjusted if the new
rate is at least 0.5% higher or lower than
the previous rate. The Participant will
receive reasonable notification of any change
to the Loan Interest Rate. As applicable,
the Loan Interest Rate is:
1) Plans subject to ERISA: equal to the
Monthly Average Corporates for the
calendar month beginning two months
before the Loan Interest Rate is
effective.
2) Plans not subject to ERISA: not greater
than 8% on an annual basis.
c) Earned interest: The Loan Account is
credited with interest at a rate which is not
less than the Loan Interest Rate, less 3%, on
an annual basis. Interest credited to the
Loan Account will never be less than 3%.
d) Loan repayment: Repayment is as set forth in
the loan agreement, or a Participant may
repay a loan in full at any time.
e) Surrenders while a loan is outstanding: If
the Participant requests a surrender from the
vested individual account current value while
a loan is outstanding, one of the following
occurs:
1) If the amount of the vested individual
account current value available for
distribution is sufficient to repay (a)
the outstanding loan balance, plus (b)
any applicable Fixed Plus Account
default charge, and (c) any surrender
fee due on the outstanding loan balance,
that amount, minus the Loan Account
balance, is deducted from the vested
individual account current value and the
loan is canceled.
2) If the amount of the vested individual
account current value available for
distribution is not sufficient to repay
the (a) the outstanding loan balance,
plus (b) any applicable Fixed Plus
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<PAGE>
Account default charge, and (c) any
surrender fee due on the outstanding
loan balance, the surrender amount
cannot exceed the vested individual
account current value, including the
Loan Account, reduced by 125% of the
outstanding loan balance.
f) Electing an annuity option while a loan is
outstanding: Before all or any portion of the
vested individual account current value is
applied to an annuity option, the Participant
may repay any outstanding loan balance, or
the vested individual account current value
is adjusted as described in (e).
g) Death of the Participant while a loan is
outstanding: If a death benefit claim is
submitted for an individual account with an
outstanding loan, the individual account
current value, including the amount of the
Loan Account, is reduced by the amount of the
outstanding loan balance before the death
benefit amount is determined.
h) Loan default: If Aetna does not receive a
loan payment when due, the outstanding loan
balance becomes due. If applicable, a 5%
default charge may apply to the portion in
excess of 20%, if any, of the amount
transferred from the Fixed Plus Account. The
defaulted loan is treated as follows:
1) If the amount of the vested individual
account current value available for
distribution is sufficient to repay (a)
the outstanding loan balance, plus (b)
any applicable Fixed Plus Account
default charge, and (c) any surrender
fee due on the outstanding loan balance,
that amount, minus the Loan Account
balance, is deducted from the vested
individual account current value and the
loan is canceled.
2) If the amount of the vested individual
account current value available for
distribution is not sufficient to repay
(a) the outstanding loan balance, plus
(b) any applicable Fixed Plus Account
default charge, and (c) any surrender
fee due on the outstanding loan balance,
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<PAGE>
until such time that the amount due can
be distributed, the Loan Account
continues to earn interest, and interest
is charged on the outstanding loan
balance. At that time, the amount
described in (h)(1) is surrendered from
the vested individual account current
value and the loan is canceled.
3.11 Manner and Timing of Distributions:
a) As directed by the Contract Holder, a
distribution to a Participant may be made in
a lump sum, as one of the Distribution
Options described in Section IV, or as one of
the Annuity options in Section V.
b) Generally, the distribution of benefits
accrued after December 31, 1986, must begin
by April 1 of the calendar year following the
calendar year in which the Participant
attains age 70 1/2. However, for a
Participant who attained age 70 1/2 before
January 1, 1988, the distribution of such
benefits must be made or must begin not later
than the April 1 of the calendar year
following the calendar year in which the
Participant retires.
The above does not apply if the Contract
Holder is a governmental entity or a church.
For Participants of such an employer, the
distribution of benefits accrued after
December 31, 1986, must be made or must begin
not later than April 1 of the calender year
following the calendar year in which the
Participant attains age 70 1/2 or retires,
whichever occurs later.
c) The required distribution must be made over
the life of the Participant (or the joint
lives of the Participant and the Plan
beneficiary) or over a period not exceeding
the life expectancy of the Participant (or
the joint life expectancies of the
Participant and the Plan beneficiary).
d) If the Contract Holder does not request
commencement of benefits as described above,
Aetna will not be responsible for compliance
with the Code Section 401(a)(9) minimum
distribution requirements or for any adverse
tax or other consequences that may result.
3.12 Withdrawal:
a) The Contract Holder may withdraw any portion
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or all of an Individual Account Current Value
by submitting a written request to Aetna.
b) Except as described in Section 3.19, unless
the Contract Holder specifies otherwise,
partial withdrawals are satisfied by
withdrawing amounts on a pro rata basis from
each of the investment options in which the
Individual Account is invested.
c) When amounts are withdrawn from the GA
Account, amounts in Short-Term and Long-Term
Classifications are treated as separate
investment options and amounts are taken on a
pro rata basis. Within a Classification,
amounts will be withdrawn starting with the
Term still in effect with the oldest Deposit
Period.
3.13 Withdrawal Value:
After deduction of the Maintenance Fee (if any),
the amount payable by Aetna upon the withdrawal of
any portion of an Individual Account from the
Fund(s) or the GA Account shall be reduced by a
Withdrawal Fee, if applicable. The Withdrawal Fee
will be in accordance with the Withdrawal Fee
table in Contract Schedule I.
No Withdrawal Fee is deducted from any portion of
the Current Value which is paid from the Fixed
Plus Account.
For a partial or full withdrawal from any
Individual Account, Aetna must receive written
direction from the Contract Holder on a form
acceptable to Aetna. If the Contract is subject to
ERISA, this direction must include certification
that all of the REA waiver and spousal consent
requirements have been satisfied. Aetna may defer
payment of the withdrawal value until appropriate
Contract Holder certification is received.
3.14 Withdrawal Restrictions:
Limitations apply to full and partial withdrawals
of the "restricted amount" from this Contract, as
required by Code Section 403(b)(11). The
restricted amount is the sum of:
a) Net Contributions attributable to a
Participant's salary reduction contributions
made on and after January 1, 1989; plus
b) The net increase, if any, in the December 31,
1988 value attributable to a Participant's
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salary reduction contributions due to
investment gains and losses and creditied
interest.
The restricted amount may be fully or partially
withdrawn only if one or more of the following
conditions are met.
a) The Participant has reached age 59 1/2;
b) The Participant has separated from service;
c) The Participant has died;
d) The Participant has become disabled, within
the meaning of Code Section 72(m)(7); or
e) The withdrawal is otherwise allowed by
federal law, regulations or rulings.
A full or partial withdrawal is also allowed if
the Participant incurs a "hardship" as that term
is defined in the Code or regulations under Code
Section 403(b). However, the amount available for
hardship is limited to the lesser of the amount
necessary to satisfy the need or the Net
Contributions attributable to the Participant's
salary reduction contributions made on or after
January 1, 1989.
The Contract Holder must certify that one of these
conditions has been met before a withdrawal
request will be considered to be in good order.
The Contract Holder must notify Aetna in writing
when a lump sum payment is to be made or Annuity
payments are to commence.
If, pursuant to Revenue Ruling 90-24, Aetna agrees
to accept under this Contract amounts transferred
from a Code Section 403(b)(7) custodial account,
such amounts will be subject to the withdrawal
restrictions set forth in Code Section
403(b)(7)(A)(ii).
3.15 Withdrawals from the GA Account:
Full or partial withdrawals may be requested at
any time from the GA Account. However, amounts
withdrawn prior to the Maturity Date of a Term may
be subject to a Market Value Adjustment (See
3.08).
Full and partial withdrawals are satisfied by
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withdrawing amounts from each of the investment
options in which the Individual Account is
invested (the Funds, the Fixed Plus Account, the
GA Account Short-Term Classification and the GA
Account Long-Term Classification) on a pro rata
basis. However, the Contract Holder may specify a
particular order in which investment options will
be liquidated in order to satisfy a partial
surrender request.
3.16 Withdrawal Fee Applicable to Funds and GA Account:
A withdrawal fee (Deferred Sales Charge) may apply
to withdrawals from the GA Account and/or Funds.
The fee will vary according to the length of time
elapsed from the effective date of an Individual
Account to the date when the withdrawal request is
received. For each withdrawal, the withdrawal fee
will be determined as shown on Contract Schedule
I.
During each rolling 12-month period, up to 20% of
the Current Value in the Fixed Plus Account may be
withdrawn as a partial surrender. This 20% limit
is reduced by any amount(s) transferred, taken as
a loan or used to purchase an Annuity during the
12 month period. The 20% limit applicable to
partial surrenders from the Fixed Plus Account
will be waived when the partial surrender is due
to one of the conditions set forth in Contract
Schedule 1. The waiver will apply provided the
partial surrender is taken pro-rata from the Fixed
Plus Account, the GA Account, and the Fund(s).
Aetna reserves the right to include amounts paid
under the ECO and SWO provisions for purposes of
applying the 20% limit. However, the SWO provision
is not available if the Contract Holder on behalf
of the Participant requested a Fixed Plus Account
transfer or surrender within the current 12 month
period.
3.17 Payment of Fixed Plus Account Full Withdrawal:
No withdrawal fee is deducted from any portion of
the Current Value which is paid from the Fixed
Plus Account. When Aetna receives a full
withdrawal request, no additional partial
withdrawals or Transfers from the Fixed Plus
Account are permitted during the payout period. If
a full withdrawal is requested, Aetna will pay any
Current Value, including accrued interest, from
the Fixed Plus Account in five payments as
follows:
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a) One-fifth of the Current Value on the day the
request is received in good order at Aetna's
Home Office, reduced by any amount from the
Fixed Plus Account that was transferred,
withdrawn or used for a loan or to purchase
Annuity benefits during the prior twelve
months;
b) One-fourth of the then remaining Current
Value twelve months later;
c) One-third of the then remaining Current Value
twelve months later;
d) One-half of the then remaining Current Value
twelve months later; and
e) The balance of the then Current Value twelve
months later.
The Fixed Plus Account full withdrawal payment
provision may also be waived under certain
conditions (See Contract Schedule I).
Any full withdrawal from the Fixed Plus Account
may be cancelled by the Participant with Contract
Holder's consent at any time before the end of the
payment period.
3.18 Reinstatement:
All or a portion of the proceeds of a full
withdrawal of this Contract may be reinvested
within 30 days after the withdrawal if allowed by
law. Any Maintenance Fee and Withdrawal Fee
charged at the time of the withdrawal on the
amount being reinvested will be included in the
reinstatement. Any Market Value Adjustment
deducted from GA Account withdrawals will not be
included in the reinstatement. Amounts will be
reinstated among the Fixed Plus Account, the GA
Account, and/or the Fund(s) for the Separate
Account in the same proportion as they were at the
time of withdrawal. Any amounts reinstated to the
GA Account will be credited to terms available
during the then-current Deposit Period. The number
of Record Units reinstated will be based on the
Record Unit Value(s) next computed after receipt
in good order at Aetna's Home Office of the
reinstatement request and the amount to be
reinvested.
Any Maintenance Fee which falls due after the
withdrawal and before the reinstatement will be
deducted from the amount reinstated.
Reinstatement is permitted only once for an
<PAGE> 41
<PAGE>
Individual Account.
3.19 Payment of Minimum Current Value:
If the sum of the Individual Account(s) Current
Value(s) is less than $3,500, and no Contributions
have been received for three (3) years, Aetna may
close the account(s) and pay the Current Value(s)
to the Contract Holder in one lump sum.
3.20 Amount Payable at Death (Before Annuity Payments
Start):
Aetna will pay the Individual Account Current
Value, as directed by the Contract Holder in
accordance with the Plan, when:
a) The Participant dies before Annuity payments
start; and
b) The certified copy of the death certificate
is received.
Amounts in the GA Account will be payable as
described in Section 3.08(d).
IV. NON-ANNUITY DISTRIBUTION OPTIONS
______________________________________________________________
4.01 Distribution Options:
The Contract Holder may elect one of the two
following distribution options on behalf of:
1) the Participant; or
2) the Participant's spouse provided the spouse
is the designated beneficiary under the Plan
and the Participant had died before electing
an Annuity option and before the date for
required minimum distributions.
4.02 Estate Conservation Option.
a) With the Estate Conservation Option (ECO) a
portion of the Individual Account Current Value is
automatically surrendered and distributed each
year without incurring a withdrawal fee. Each
payment will be withdrawn from the Individual
Account in the same proportion as assets are held
in the Funds, the GA Account, and the Fixed Plus
Account on the date the payment is made.
b) Payments under ECO will comply with the incidental
death benefit test set forth in Code Section
401(a)(9).
c) Distribution Amount: Each year that ECO is in
effect, Aetna will calculate and distribute an
amount equal to the minimum distribution required
<PAGE> 42
<PAGE>
under the Code. The annual distribution will be
determined by dividing the Individual Account
Current Value as of December 31 of the year prior
to the payment year, by a single or joint life
expectancy factor. If joint life expectancy is
elected, the beneficiary under ECO must be the
same as the beneficiary of any death benefits
under the Plan.
An exception will be made if Aetna maintains a
separate record of a Participant's Individual
Account Value as of December 31, 1986. In this
instance, payments made in or after the year in
which the Participant attains age 70 1/2, but
before the year in which the Participant attains
age 75, will be calculated only on amounts
contributed after December 31, 1986 and any
earnings after that date. If age 70 1/2 was
attained prior to 1988, the Participant must be
retired in order to qualify for this exception.
The method under this rule is elected by the
Contract Holder and will not apply if the
Participant has received any distribution from his
or her Individual Account, other than distribution
amounts required under Code minimum distribution
rules.
Aetna will maintain separate records if the
Contract Holder has not requested any withdrawals
from the Participant's Individual Account since
December 31, 1986.
d) Life Expectancy Factor: For the Participant, the
life expectancy factor is either single life or
joint life expectancy as elected by the Contract
Holder on behalf of the Participant, based on
tables in Code Section 401(a)(9) or related
regulations. For a spouse beneficiary, only a
single life expectancy is available. Life
expectancy factors will be recalculated each year,
unless prohibited by the Code or regulations.
The joint life expectancy factor will be based on
the joint life expectancy of the Participant and
his or her beneficiary and such beneficiary of any
death benefits under the Plan while ECO is in
effect. Any change in the beneficiary designation
under the Plan must be immediately communicated to
Aetna so that subsequent distributions can be
calculated as required by IRS regulations.
If joint life expectancy is elected and the
<PAGE> 43
<PAGE>
Participant or spouse dies, payments will be based
on the survivor's life expectancy. If the
beneficiary is not the spouse and the beneficiary
dies first, the joint life expectancy continues to
be used to determine payments.
If a single life expectancy is elected, at the
death of the Participant (or the spouse who is the
designated beneficiary electing ECO after the
Participant's death), the entire value must be
distributed no later than the December 31 of the
year following the year of the Participant's (or
spouse's) death. If a joint life expectancy is
elected, and both the Participant and spouse have
died, any remaining Current Value must be
distributed no later than the December 31 of the
year following the year of the second death. If a
joint life expectancy is elected and both the
Participant and non-spouse beneficiary have died,
any remaining Current Value will be distributed as
instructed by the Contract Holder in accordance
with the Code and the terms of the Plan.
These calculations may be changed as necessary to
comply with Code minimum distribution rules. Any
mode of payment elected upon the Participant's
death must provide payments to be made at least as
rapidly as those made prior to the Participant's
death.
e) Minimum Current Value: At its discretion, Aetna
may require a minimum initial Current Value for
election of this option. If after election of this
option the Current Value is insufficient to make a
scheduled ECO payment, Aetna will distribute the
entire balance of the Individual Account.
f) Distribution Date: The Contract Holder shall
specify an annual distribution date. For a
Participant, the earliest date is the first day of
the calendar year in which he or she attains age
70 1/2. For a spouse beneficiary electing ECO
after the Participant's death, the earliest date
is the date of the Participant's death. The first
distribution date may be the 15th of any month, or
such other date as Aetna may designate or allow.
Subsequent distributions will be made on the
anniversary of that date. At its option, Aetna may
allow payments to be made more frequently than
annually.
g) Election and Revocation: The Contract Holder may
<PAGE> 44
<PAGE>
elect ECO by submitting a completed and signed
election form to Aetna's Home Office. If the
Contract Holder has notified Aetna that the Plan
is subject to Title I of the Employee Retirement
Income Security Act of 1974 as amended, the
Contract Holder must also certify in writing that
all the appropriate REA requirements have been met
and that the distribution is in accordance with
the terms of the Plan. Once ECO is elected, the
Contract Holder may revoke it by submitting a
written request to Aetna at its Home Office. Any
revocation will apply only to amounts not yet
paid. ECO may be elected only once per
Participant.
4.03 Systematic Withdrawal Option:
a) With the Systematic Withdrawal Option (SWO) a
portion of the Individual Account Current Value is
automatically distributed each year without
incurring a Withdrawal Fee. A SWO payment will be
calculated on the Individual Account's Current
Value. Each payment will be withdrawn from the
Individual Account in the same proportion as
assets are held in the Funds, the GA Account, and
the Fixed Plus Account on the date the payment is
made. SWO payments may not be elected if a loan is
outstanding under an Individual Account.
b) Payments under SWO will comply with the incidental
death benefit test set forth in Code Section
401(a)(9).
c) Distribution Amounts: The Contract Holder may
elect one of the three payment methods described
below. These calculations may be changed as
necessary to comply with the Code minimum
distribution rules. If joint life expectancy is
elected, the beneficiary under SWO must be the
same as the beneficiary of any death benefits
under the Plan.
1) Specified Payment: Payments of a designated annual
dollar amount. The annual amount may not be
greater than the percentage of the Current Value
at time of election as shown on Contract Schedule
I. This amount will remain constant unless a
higher amount is required under Code minimum
distribution rules. Each year that the Specified
Payment is in effect, Aetna will calculate the
minimum required distribution by dividing the
Individual Account Current Value as of December 31
<PAGE> 45
<PAGE>
of the year prior to the payment year by a life
expectancy factor, and distribute this amount if
it is larger than the Specified Payment.
2) Specified Period: Payments are made over a period
of time. The number of years selected may not be
less than the number of years shown on Contract
Schedule I, unless otherwise required by Code
minimum distribution rules. The maximum specified
period will be limited by the life expectancy
factor. The amount paid each year is calculated by
dividing the Individual Account Current Value as
of December 31 of the prior year by the number of
payment years remaining.
3) Specified Percentage: Payments made as a specified
percentage of the Individual Account. The
specified percentage chosen cannot be greater than
as shown on Contract Schedule I. The Contract
Holder on behalf of a Participant may change the
specified percentage elected every six months.
Each annual distribution is determined by
multiplying the Individual Account Current Value
by the percentage chosen. The value to be used in
this calculation is the value on the December 31st
prior to the year for which the payment is being
made. For payments made more often than annually,
the annual payment result (calculated above) is
divided by the number of payments due each year.
Payments will be made each year until the year the
Participant attains age 70 1/2.
d) Life Expectancy Factor: For the Participant, the
life expectancy factor for the initial
distribution year is either single life or joint
life expectancy as elected by the Contract Holder,
based on tables in Section 401(a)(9) of the Code
or related regulations. For a spouse beneficiary,
only a single life expectancy is available. With
each subsequent year, the life expectancy factor
will be the life expectancy factor for the initial
distribution year, reduced by one. These
calculations may be changed as necessary to comply
with the Code minimum distribution rules. If the
joint life expectancy is selected and the
Participant or the beneficiary dies on or after
the required beginning date for minimum
distributions to the Participant, the joint life
expectancy factor will continue to be reduced by
one for each distribution year. Payments will
continue unless the Contract Holder elects an
alternate payment mode on behalf of the survivor.
Any payment mode elected on behalf of the Plan
beneficiary must provide payments to be made at
least as rapidly as those made prior to the
<PAGE> 46
<PAGE>
Participant's death.
If the Participant dies before the required beginning
date for minimum distributions, SWO payments will
cease and the Contract Holder on behalf of the
beneficiary may claim the death benefit in accordance
with the terms of this Contract. If the beneficiary
is not the Participant's spouse, the entire death
benefit must be either applied to an Annuity option
within one (1) year of the Participant's death, or be
paid within five (5) years of the Participant's
death. If the beneficiary is the Participant's
spouse, the distribution is not required to begin
earlier than when the Participant would have attained
age 70 1/2.
If joint life expectancy is elected and the
beneficiary dies before the required beginning date
for minimum distributions to the Participant,
payments to the Participant will continue to be based
on joint life expectancy reduced by one for each
distribution year.
e) Minimum Current Value: At its discretion, Aetna
may require a minimum initial Current Value for
election of this option. If after election of this
option the Current Value is insufficient to make a
scheduled SWO payment, Aetna will distribute the
entire balance of the Individual Account.
f) Distribution Date: The Contract Holder, on behalf
of the Participant, or spouse beneficiary, shall
specify the initial distribution date. The
earliest date is the first day of the calendar
year in which the Participant attains age 59 1/2,
or age 55, if separated from service with the
Contract Holder at or after age 55. SWO payments
will be made monthly, quarterly, semi-annually or
annually on the 15th of any month, or such other
date as Aetna may designate or allow. If payments
are made more frequently than annually, the annual
amount payable each year is divided by the number
of payments due per year. At its discretion Aetna
may require a minimum initial payment amount.
g) Election and Revocation: The Contract Holder may
elect SWO by submitting a completed and signed
election form to Aetna's Home Office. If the
Contract Holder has notified Aetna that the Plan
is subject to Title I of the Employee Retirement
Income Security Act of 1974 as amended, the
Contract Holder must also certify in writing that
all the appropriate REA requirements have been met
<PAGE> 47
<PAGE>
and that the distribution is in accordance with
the terms of the Plan. Once SWO is elected, the
Contract Holder may revoke it by submitting a
written request to Aetna's Home Office. Any
revocation will apply only to amounts not yet
paid. Generally, SWO may be elected only once,
however, if SWO is elected on behalf of a
Participant and then revoked before the date
distributions were required to begin under Code
Section 401(a)(9), SWO may be elected on behalf of
a spouse beneficiary after the death of the
Participant.
V. ANNUITY PROVISIONS
______________________________________________________________
5.01 Choices:
a) The Contract Holder, on behalf of the Participant
may elect an Annuity option by telling Aetna to
pay all or any portion of the Individual
Account(s) Current Value (minus any applicable
premium tax if not previously deducted) as a
premium for an Annuity under option 2, 3, or 4
(See 5.08). Any election of an Annuity option must
comply with the minimum distribution requirements
of Code Section 401(a)(9), including the
incidental death benefit rule, and the regulations
thereunder. This restriction does not apply if
option 4 is chosen and the second Annuitant is the
spouse of the Participant.
b) Generally, the first Annuity payment must be made
by April 1 of the calendar year following the year
in which the Participant turns age 70 1/2 or such
later date as may be allowed under federal law or
regulations (see 3.12) For distributions taken in
a lump sum, see Withdrawal Value (3.14).
For any election of an Annuity Option, the
Contract Holder must provide certification that
the REA requirements, as applicable, and Code
Section 403(b)(11) withdrawal restrictions have
been satisfied.
When an Annuity option is chosen the Contract
Holder must designate whether the Annuity will be
Fixed or Variable and whether the underlying
investment will be:
1) The General Account;
2) One or more of the available Fund(s); or
3) A combination of (1) and (2).
<PAGE> 48
<PAGE>
If a Fixed Annuity is chosen, the Annuity purchase
rate for the option chosen reflects at least the
Minimum Guaranteed Interest Rate (See Contract
Schedule II), but may reflect a higher interest
rate.
If a Variable Annuity is chosen, the initial
Annuity payment for the option chosen reflects the
assumed annual return rate elected (See Contract
Schedule II).
d) Payments will be made on a monthly basis unless
the Contract Holder requests otherwise.
e) Once elected, an Annuity option may not be
revoked, except for option 2 when elected on a
variable basis.
5.02 Terms of Annuity Options:
a) No choice of any Annuity option may be made if the
first payment would be less than $20 or if the
total payments in a year would be less than $100.
b) For purposes of calculating the guaranteed first
payment of a Variable Annuity or the payments for
a Fixed Annuity, the Annuitant's and second
Annuitant's adjusted age will be used. The
Annuitant's and second Annuitant's adjusted age is
his or her age as of the birthday closest to the
Annuity commencement date reduced by one year for
Annuity commencement dates occurring during the
period of time from July 1, 1992 through December
31, 1999. The Annuitant's and second Annuitant's
age will be reduced by two years for Annuity
commencement dates occurring during the period of
time from January 1, 2000 through December 31,
2009. The Annuitant's and second Annuitant's age
will be reduced by one additional year for Annuity
commencement dates occurring in each succeeding
decade.
The Annuity rates for options 3 and 4 are based on
mortality from 1983 Table a.
d) Assumed Annual Net Return Rate is the interest
rate used to determine the amount of the first
Annuity payment under a Variable Annuity. 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.
5.03 Annuity Payments to Annuitant:
<PAGE> 49
<PAGE>
In no event may any payments to the Annuitant under any
Annuity Option extend beyond:
a) The life of the Annuitant;
b) The lives of the Annuitant and the Plan
beneficiary;
c) A period certain greater than the Annuitant's life
expectancy according to regulations under Code
Section 401(a)(9), determined as of the date
payments are to commence; or
d) A period certain greater than the life
expectancies of the Annuitant and the Plan
beneficiary according to regulations under Code
Section 401(a)(9) determined as of the date
payments are to begin.
5.04 Death Provision:
When an Annuitant dies under options 3 and 4, the
present value of any remaining guaranteed payments will
be paid in one sum or payments will continue at the
direction of the Contract Holder, in accordance with
the Plan. If a Plan beneficiary dies while receiving
Annuity payments, the present value of any remaining
payments will be paid in one lump sum as directed by
the Contract Holder. The interest rate used to
determine the present value for a lump sum payment will
be the rate used to determine the first Annuity
payment.
In no event may any payments to the Plan beneficiary
under an Annuity Option extend beyond:
a) The life of the payee determined as of the date
payments are to commence; or
b) Any certain period greater than the payee's life
expectancy as determined by regulations under Code
Section 401(a)(9) as of the date payments are to
begin.
However, if a Plan beneficiary dies while under Option
1 or while receiving Annuity payments, the present
value of any remaining payments will be paid in one
lump sum to the estate of the Plan beneficiary. The
interest rate used to determine the first payment will
be used to calculate the present value.
5.05 Fund Annuity Units:
The number of Fund(s) Annuity Units is based on the
amount of the first Variable Annuity payment which is
equal to:
a) The portion of the Current Value including any
<PAGE> 50
<PAGE>
applicable MVA (see 3.08) or premium tax, applied
to pay a Variable Annuity; divided by
b) 1,000; multiplied by
c) The payment rate for the option chosen.
Such amount, or portion, of the variable payment will
be divided by the appropriate Fund(s) Annuity Unit
Value (See 5.06) on the tenth Valuation Period before
the due date of the first payment to determine the
number of each Fund Annuity Units. The number of each
Fund Annuity Units remains fixed. Each future payment
is equal to the sum of the products of each Fund
Annuity Unit Value multiplied by the appropriate number
of Units. The Fund Annuity Unit Value on the tenth
Valuation Period prior to the due date of the payment
is used.
5.06 Fund Annuity Unit Value:
For any Valuation Period, a Fund(s) Annuity Unit Value
is equal to:
a) The Value for the previous Period; multiplied by
b) The Annuity net return factor(s) (See 5.07) for
the Period; multiplied by
c) A factor to reflect the assumed annual net return
rate. (See Contract Schedule II).
The dollar value of a Fund Annuity Unit and Annuity
payments may go up or down due to investment gain or
loss.
Payments shall not be changed due to changes in the
mortality or expense results or administrative charges.
5.07 Fund Annuity Net Return Factor.
The Annuity Net Return Factor(s) is used to compute all
Separate Account Annuity payments for any Fund.
The Annuity Net Return Factor(s) for each Fund is equal
to 1.0000000 plus the net return Rate.
The Net Return Rate is equal to:
a) The value of the shares of the Fund held by the
Separate Account at the end of a Valuation Period;
minus
b) The value of the shares of the Fund held by the
Separate Account at the start of the Valuation
Period; plus or minus
c) Taxes (or reserves for taxes) on the Separate
<PAGE> 51
<PAGE>
Account (if any);
d) Divided by the total value of the Fund(s) Record
Units and Fund(s) Annuity Units of the Separate
Account at the start of the Valuation Period;
minus
e) Minus a daily charge for Annuity mortality and
expense risks, which may include profit, and a
daily administrative charge (at the annual rate as
shown on Contract Schedule II).
A Net Return Rate may be more or less than 0%.
The value of a share of the Fund is equal to the net
assets of the Fund divided by the number of shares
outstanding.
5.08 Annuity Options:
The Contract Holder may direct Aetna to make payments
according to one of the following options.
Option 1 -- Payments of Interest on Sum Left with Aetna
-- This Option may be used only by the Plan beneficiary
when the Participant dies before Aetna has started
paying an Annuity. A portion or all of the sum paid
upon death may be held under this Option and will be
held in the General Account of Aetna at interest. The
Contract Holder, on behalf of the Plan beneficiary, may
later tell Aetna to:
a) Pay a portion or all of the sum held by Aetna; or
b) Apply a portion or all of the sum held by Aetna to
any Annuity Option below.
If the Plan beneficiary is the Participant's surviving
spouse, the lump-sum payment may be deferred to a date
not later than when the Participant would have attained
age 70 1/2.
If the Plan beneficiary is not a spouse, the Contract
Holder must tell Aetna to pay the full sum within 5
years after the death of the Participant.
Option 2 -- Payments for a Stated Period of Time -- An
Annuity will be paid for the number of years chosen
(See Contract Schedule II).
If payments for this option are made under a Variable
Annuity, the present value of any remaining payments
may be withdrawn at any time. If a withdrawal is
requested prior to the minimum number of years
<PAGE> 52
<PAGE>
specified on Contract Schedule II, it will be subject
to any withdrawal fee, if applicable (See Contract
Schedule I).
Option 3 -- Life Income -- An Annuity will be paid for
the life of the Annuitant. Aetna may also guarantee
payments for 60, 120, 180, or 240 months if so directed
by the Contract Holder.
Option 4 -- Life Income based upon the lives of two
Annuitants -- An Annuity will be paid during the lives
of the Annuitant and a second Annuitant. Payments will
continue until both Annuitants have died. When this
option is chosen, a choice of the following must be
made:
a) 100% of the payment to continue after the first
death;
b) 66 2/3% of the payment to continue after the first
death;
c) 50% of the payment to continue after the first
death;
d) Payments for a minimum of 120 months, with 100% of
the payment to continue after the first death; or
e) 100% of the payment to continue at the death of
the second Annuitant and 50% of the payment to
continue at the death of the Annuitant.
Other Options -- Aetna may make other options available
as allowed by the laws of the state in which this
Contract is delivered.
<PAGE> 53
<PAGE>
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of
3.0%
<TABLE>
<CAPTION>
Guaranteed Monthly Quarterly Semi-Annual Annual
Years Rate Payment Payment Payment Payments
<S> <C> <C> <C> <C> <C>
5 3.00% $17.91 $53.59 $106.78 $211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
<PAGE> 54
<PAGE>
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
</TABLE>
<PAGE> 55
<PAGE>
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of
3.5%
<TABLE>
<CAPTION>
Years Monthly Quarterly Semi-Annual Annual
Payment Payment Payment Payment
<S> <C> <C> <C> <C>
5 $18.12 $54.19 $107.92 $213.99
6 15.35 45.92 91.44 181.32
7 13.38 40.01 79.69 158.01
8 11.90 35.59 70.88 140.56
9 10.75 32.16 64.05 127.00
10 9.83 29.42 58.59 116.18
11 9.09 27.18 54.13 107.34
12 8.46 25.32 50.42 99.98
13 7.94 23.75 47.29 93.78
14 7.49 22.40 44.62 88.47
15 7.10 21.24 42.31 83.89
16 6.76 20.23 40.29 79.89
17 6.47 19.34 38.51 76.37
18 6.20 18.55 36.94 73.25
19 5.97 17.85 35.54 70.47
20 5.75 17.22 34.28 67.98
21 5.56 16.65 33.15 65.74
22 5.39 16.13 32.13 63.70
23 5.24 15.66 31.19 61.85
24 5.09 15.24 30.34 60.17
25 4.96 14.85 29.56 58.62
26 4.84 14.49 28.85 57.20
<PAGE> 56
<PAGE>
27 4.73 14.15 28.19 55.90
28 4.63 13.85 27.58 54.69
29 4.53 13.57 27.02 53.57
30 4.45 13.30 26.49 52.53
</TABLE>
<PAGE> 57
<PAGE>
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate Rate
of 5.0%
<TABLE>
<CAPTION>
Years Monthly Quarterly Semi-Annual Annual
Payment Payment Payment Payment
<S> <C> <C> <C> <C>
5 $18.74 $56.00 $111.33 $219.98
6 15.99 47.77 94.96 187.64
7 14.02 41.90 83.30 164.59
8 12.56 37.52 74.58 147.35
9 11.42 34.11 67.81 133.99
10 10.51 31.40 62.42 123.34
11 9.77 29.19 58.03 114.66
12 9.16 27.36 54.38 107.45
13 8.64 25.81 51.31 101.39
14 8.20 24.50 48.69 96.21
15 7.82 23.36 46.44 91.75
16 7.49 22.37 44.47 87.88
17 7.20 21.51 42.75 84.48
18 6.94 20.74 41.23 81.47
19 6.71 20.06 39.88 78.80
20 6.51 19.46 38.68 76.42
21 6.33 18.91 37.59 74.28
22 6.17 18.42 36.62 72.35
23 6.02 17.98 35.73 70.61
24 5.88 17.57 34.93 69.02
25 5.76 17.20 34.20 67.57
26 5.65 16.87 33.53 66.25
27 5.54 16.56 32.92 65.04
<PAGE> 58
<PAGE>
28 5.45 16.28 32.35 63.93
29 5.36 16.01 31.83 62.90
30 5.28 15.77 31.35 61.95
</TABLE>
<PAGE> 59
<PAGE>
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of
3.0%
Payments Guaranteed for a Stated Period of Months
<TABLE>
<CAPTION>
Adjusted
Age of
Annuitant None 60 120 180 240
<S> <C> <C> <C> <C> <C>
50 $4.05 $4.05 $4.03 $3.99 $3.93
51 4.12 4.11 4.09 4.05 3.99
52 4.19 4.19 4.16 4.11 4.04
53 4.27 4.26 4.23 4.18 4.10
54 4.35 4.34 4.31 4.25 4.16
55 4.44 4.42 4.39 4.32 4.22
56 4.53 4.51 4.47 4.40 4.29
57 4.62 4.61 4.56 4.48 4.35
58 4.72 4.71 4.65 4.56 4.42
59 4.83 4.81 4.75 4.64 4.49
60 4.95 4.93 4.86 4.73 4.55
61 5.07 5.05 5.97 4.83 4.62
62 5.20 5.17 5.08 4.92 4.69
63 5.34 5.31 5.20 5.02 4.76
64 5.49 5.45 5.33 5.12 4.83
65 5.65 5.61 5.47 5.22 4.89
66 5.82 5.77 5.61 5.33 4.96
67 6.01 5.94 5.75 5.44 5.02
<PAGE> 60
<PAGE>
68 6.20 6.13 5.91 5.54 5.08
69 6.41 6.33 6.07 5.65 5.14
70 6.64 6.54 6.23 5.76 5.19
71 6.88 6.76 6.41 5.86 5.24
72 7.14 7.00 6.59 5.97 5.28
73 7.43 7.26 6.77 6.06 5.32
74 7.73 7.53 6.96 6.16 5.35
75 8.06 7.82 7.14 6.25 5.38
</TABLE>
Rates are based on mortality from 1983 Table a. The rates do
not differ by
sex.
Rates for ages not shown will be provided on request and will
be computed
on a basis consistent with the rates in the above tables.
<PAGE> 61
<PAGE>
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of
3.5%
Payments Guaranteed for a Stated Period of Months
<TABLE>
<CAPTION>
Adjusted
Age of
Annuitant None 60 120 180 240
<S> <C> <C> <C> <C> <C>
50 $4.34 $4.34 $4.31 $4.27 $4.22
51 4.41 4.40 4.38 4.33 4.27
52 4.48 4.47 4.45 4.40 4.32
53 4.56 4.55 4.52 4.46 4.38
54 4.64 4.63 4.59 4.53 4.44
55 4.72 4.71 4.67 4.60 4.50
56 4.81 4.80 4.75 4.67 4.56
57 4.91 4.89 4.84 4.75 4.62
58 5.01 4.99 4.93 4.83 4.69
59 5.12 5.10 5.03 4.92 4.75
60 5.23 5.21 5.13 5.00 4.82
61 5.36 5.33 5.24 5.09 4.88
62 5.49 5.45 5.35 5.19 4.95
63 5.63 5.59 5.47 5.28 5.02
64 5.78 5.73 5.60 5.38 5.08
65 5.94 5.89 5.73 5.48 5.15
66 6.11 6.05 5.87 5.58 5.21
67 6.29 6.22 6.02 5.69 5.27
68 6.49 6.41 6.17 5.79 5.33
<PAGE> 62
<PAGE>
69 6.70 6.60 6.33 5.90 5.38
70 6.92 6.81 6.49 6.00 5.43
71 7.17 7.04 6.66 6.10 5.48
72 7.43 7.27 6.84 6.20 5.52
73 7.71 7.53 7.02 6.30 5.55
74 8.02 7.80 7.20 6.39 5.59
75 8.35 8.08 7.38 6.48 5.62
</TABLE>
Rates are based on mortality from 1983 Table a. The rates do
not differ by
sex.
Rates for ages not shown will be provided on request and will
be computed
on a basis consistent with the rates in the above tables.
<PAGE> 63
<PAGE>
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of
5.0%
Payments Guaranteed for a Stated Period of Months
<TABLE>
<CAPTION>
Adjusted
Age of
Annuitant None 60 120 180 240
<S> <C> <C> <C> <C>
50 $5.26 $5.25 $5.22 $5.17 $5.11
51 5.33 5.32 5.28 5.23 5.15
52 5.40 5.38 5.34 5.29 5.20
53 5.47 5.45 5.41 5.35 5.26
54 5.54 5.53 5.48 5.41 5.31
55 5.63 5.61 5.56 5.47 5.36
56 5.71 5.69 5.63 5.54 5.42
57 5.80 5.78 5.72 5.61 5.47
58 5.90 5.88 5.81 5.69 5.53
59 6.01 5.98 5.90 5.77 5.59
60 6.12 6.09 6.00 5.85 5.65
61 6.24 6.21 6.10 6.93 5.71
62 6.37 6.33 6.21 6.02 5.77
63 6.51 6.46 6.33 6.11 5.83
64 6.66 6.60 6.45 6.20 5.89
65 6.82 6.75 6.57 6.30 5.95
66 6.99 6.91 6.71 6.39 6.01
67 7.17 7.08 6.85 6.49 6.06
68 7.36 7.27 6.99 6.59 6.12
<PAGE> 64
<PAGE>
69 7.57 7.46 7.15 6.69 6.17
70 7.80 7.67 7.30 6.78 6.21
71 8.05 7.89 7.47 6.88 6.25
72 8.31 8.13 7.64 6.97 6.29
73 8.59 8.38 7.81 7.06 6.33
74 8.90 8.64 7.99 7.15 6.36
75 9.23 8.93 8.16 7.23 6.38
</TABLE>
Rates are based on mortality from 1983 Table a. The rates do
not differ by
sex.
Rates for ages not shown will be provided on request and will
be computed
on a basis consistent with the rates in the above tables.
<PAGE> 65
<PAGE>
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of
3.0%
Payments Guaranteed for a Stated Period of Months
<TABLE>
<CAPTION>
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d4e
<S> <C> <C> <C> <C> <C> <C>
55 50 $3.69 $4.05 $4.27 $3.69 $4.03
55 55 3.88 4.25 4.47 3.87 4.14
55 60 4.06 4.47 4.71 4.06 4.20
60 55 3.99 4.44 4.71 3.98 4.42
60 60 4.24 4.71 4.99 4.23 4.57
60 65 4.49 5.01 5.32 4.48 4.64
65 60 4.38 4.97 5.32 4.38 4.93
65 65 4.72 5.33 5.70 4.71 5.14
65 70 5.07 5.75 6.17 5.05 5.26
70 65 4.93 5.68 6.15 4.91 5.66
70 70 5.40 6.21 6.70 5.36 5.96
70 75 5.89 6.82 7.40 5.81 6.12
75 70 5.69 6.68 7.32 5.62 6.67
75 75 6.37 7.45 8.15 6.23 7.12
75 80 7.07 8.34 9.16 6.78 7.36
</TABLE>
<PAGE> 66
<PAGE>
Rates are based on mortality from 1983 Table a. The rates do
not differ by
sex.
Rates for ages not shown will be provided on request and will
be computed
on a basis consistent with the rates in the above tables.
<PAGE> 67
<PAGE>
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of
3.5%
<TABLE>
<CAPTION>
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d4e
<S> <C> <C> <C> <C> <C> <C>
55 50 $3.97 $4.35 $4.56 $3.97 $4.31
55 55 4.16 4.54 4.76 4.15 4.42
55 60 4.27 4.73 5.00 4.26 4.48
60 55 4.27 4.73 5.00 4.26 4.70
60 60 4.51 4.99 5.27 4.50 4.84
60 65 4.66 5.25 5.61 4.65 4.93
65 60 4.66 5.25 5.61 4.65 5.22
65 65 4.99 5.61 5.99 4.98 5.42
65 70 5.19 5.97 6.44 5.17 5.54
70 65 5.19 5.97 6.44 5.17 5.93
70 70 5.67 6.49 6.99 5.62 6.23
70 75 5.95 6.96 7.61 5.87 6.40
75 70 5.95 6.96 7.61 5.87 6.95
75 75 6.64 7.73 8.43 6.48 7.40
75 80 7.04 8.39 9.29 6.79 7.64
</TABLE>
Rates are based on mortality from 1983 Table a. The rates do
<PAGE> 68
<PAGE>
not differ by
Sex.
Rates for ages not shown will be provided on request and will
be computed
on a basis consistent with the rates in the above tables.
<PAGE> 69
<PAGE>
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of
5.0%
<TABLE>
<CAPTION>
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d4e
<S> <C> <C> <C> <C> <C> <C>
55 50 $4.88 $5.26 $5.48 $4.88 $5.23
55 55 5.04 5.44 5.66 5.04 5.32
55 60 5.15 5.63 5.91 5.14 5.38
60 55 5.15 5.63 5.91 5.14 5.59
60 60 5.37 5.87 6.16 5.37 5.72
60 65 5.52 6.14 6.51 5.51 5.80
65 60 5.52 6.14 6.51 5.51 6.10
65 65 5.83 6.49 6.87 5.82 6.29
65 70 6.04 6.84 7.34 6.00 6.41
70 65 6.04 6.84 7.34 6.00 6.81
70 70 6.49 7.35 7.87 6.44 7.08
70 75 6.77 7.84 8.51 6.68 7.25
75 70 6.77 7.84 8.51 6.68 7.81
75 75 7.45 8.60 9.33 7.27 8.25
75 80 7.86 9.28 10.20 7.57 8.49
</TABLE>
Rates are based on mortality from 1983 Table a. The rates do
not differ by
<PAGE> 70
<PAGE>
sex.
Rates for ages not shown will be provided on request and will
be computed
on a basis consistent with the rates in the above tables.
<PAGE> 71
<PAGE>
Aetna Life Insurance and Annuity Company
TRANSFER CREDIT ENDORSEMENT
The Contract or Certificate is hereby endorsed as follows:
Add the following statement to the end of Section 3.02
entitled Net Contribution(s):
Transferred Assets are the value of prior contributions into
an existing Plan which are deposited into this Contract as of
the date the amount is received in good order by Aetna.
Transferred Assets, less any premium tax, will be allocated to
Participant Individual Accounts in amounts authorized by the
Contract Holder.
Where Aetna is the exclusive 403(b) Plan provider, Aetna will
apply a Transfer Credit equal to [2%] of Transferred Assets
deposited into the Contract and allocated to Individual
Accounts. The Transfer Credit amount is calculated as of the
one year anniversary of a Participant's first Net Contribution
to the Contract. The calculation for any Transfer Credit
amount will be based on the total amount of Transferred Assets
remaining in Individual Accounts as of the calculation date.
The Transfer Credit amount will be allocated to the Fixed Plus
Account. The amount will include the Transfer Credit plus any
interest that would have accrued had the Transfer Credit
actually been deposited into the Fixed Plus Account on the
first business day of the calendar month following
calculation.
Transfer Credit will not be applied to assets transferred into
the Contract from existing Aetna Contracts. Only Net
Contributions not previously held by Aetna Life Insurance and
Annuity Company are eligible for Transfer Credit.
<PAGE> 72
<PAGE>
Endorsed and made a part of the Contract or Certificate on the
effective date of the Contract.
<PAGE> 73
<PAGE>
This page intentionally left blank
<PAGE> 74
<PAGE>
This page intentionally left blank
<PAGE> 75
<PAGE>
[Aetna Logo]
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
Hartford, Connecticut 06156
(800) 525-4225
Group Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED
ON INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE
AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT. THIS
CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT FORMULA.
APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER
AN INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET
VALUE ADJUSTMENT FORMULA DOES NOT APPLY TO A GUARANTEED TERM
AT THE TIME OF ITS MATURITY.
<PAGE> 76
<PAGE>
Exhibit 99-B.4.2
<PAGE> 1
<PAGE>
[Aetna Logo] Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Ave
Hartford, CT 06156
(800) 525-4225
Aetna Life Insurance and Annuity Company (Aetna) agrees to pay benefits
according to the terms and conditions set forth in this Certificate.
___________________________________________________________________________
Certificate of Group Annuity Coverage
Aetna certifies that an account is established for you under the Group
Annuity ontract and Certificate numbers shown below.
This certificate describes Group Annuity Contract Provisions. It replaces
any and all prior certificates or endorsements issued to you under the
stated Contract and Certificate numbers. This Certificate is for
information only and is not a part of the Contract.
___________________________________________________________________________
Right to Cancel
The Certificate Holder may cancel this Certificate within 10 days of
receiving it by returning this Certificate along with a written notice to
Aetna at the above address or to the agent from whom it was purchased.
Within 7 days after it receives the notice of cancellation and this
Certificate at its Home Office, Aetna will return the entire consideration
paid plus any increase or minus any decrease in the current value of any
funds allocated to the Separate Account.
Signed at the Home Office on the
Effective Date.
/s/ /s/
President Secretary
Contract Holder Group Annuity Contract Number
SPECIMEN SPECIMEN
Certificate Holder Certificate Number
SPECIMEN SPECIMEN
<PAGE> 2
<PAGE>
Annuitant Name Type of Plan
SPECIMEN SPECIMEN
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CERTIFICATE CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT
FORMULA DOES NOT
<PAGE> 3
<PAGE>
APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
Specifications
___________________________________________________________________________
Guaranteed There is a guaranteed interest rate for Contributions(s)
Interest Rate held in the Fixed Plus Account and the GA Account (see
Contract Schedule I).
___________________________________________________________________________
Deductions There will be deductions for mortality and expense risks
from the and administrative fees (see 3.07 and 5.07).
Separate
Account
___________________________________________________________________________
Deductions Contribution(s) are subject to a deduction for premium
from taxes, if any (see 3.02).
Contribution(s)
___________________________________________________________________________
Withdrawal Fee There may be a charge deducted upon withdrawal (see
Contract Schedule I).
<PAGE> 4
<PAGE>
Table of Contents
Separate Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Separate Account: . . . . . . . . . . . . . . . . . . . . . . . . . 7
Charges to Separate Account: . . . . . . . . . . . . . . . . . . . 7
Fixed Plus Account . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Minimum Guaranteed Interest Rate: . . . . . . . . . . . . . . . . . 7
Partial Withdrawal: . . . . . . . . . . . . . . . . . . . . . . . . 7
Full Withdrawal: . . . . . . . . . . . . . . . . . . . . . . . . . 8
Guaranteed Accumulation Account (GA Account) . . . . . . . . . . . . . . 8
Minimum Guaranteed Interest Rate: . . . . . . . . . . . . . . . . . 8
Separate Account and GA Account . . . . . . . . . . . . . . . . . . . . . 9
Withdrawal Fee: . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Separate Account, GA Account and Fixed Plus Account . . . . . . . . . . . 9
Transfers: . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Maintenance Fee: . . . . . . . . . . . . . . . . . . . . . . . . 10
Systematic Withdrawal Option (SWO): . . . . . . . . . . . . . . . 10
Loan Interest Rate: . . . . . . . . . . . . . . . . . . . . . . . 10
Separate Account . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Charges to Separate Account: . . . . . . . . . . . . . . . . . . 13
Variable Annuity Assumed Annual Net Return Rate: . . . . . . . . 13
Annuity Option 2: . . . . . . . . . . . . . . . . . . . . . . . . 13
Fixed Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Minimum Guaranteed Interest Rate: . . . . . . . . . . . . . . . . 13
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.01 Accumulation Period: . . . . . . . . . . . . . . . . . . . . 15
1.02 Adjusted Current Value: . . . . . . . . . . . . . . . . . . 15
1.03 Annuitant: . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.04 Annuity: . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.05 Beneficiary: . . . . . . . . . . . . . . . . . . . . . . . . 15
1.06 Code: . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.07 Contract Holder: . . . . . . . . . . . . . . . . . . . . . . 15
1.08 Contribution: . . . . . . . . . . . . . . . . . . . . . . . 16
1.09 Current Value: . . . . . . . . . . . . . . . . . . . . . . . 16
1.10 Deposit Period: . . . . . . . . . . . . . . . . . . . . . . 16
1.11 Fixed Plus Account: . . . . . . . . . . . . . . . . . . . . 16
1.12 Fixed Plus Account Guaranteed Interest Rate: . . . . . . . . 16
1.13 Fixed Annuity: . . . . . . . . . . . . . . . . . . . . . . . 16
1.14 Fund(s): . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.15 General Account: . . . . . . . . . . . . . . . . . . . . . . 16
1.16 Guaranteed Accumulation Account (GA Account): . . . . . . . 16
1.17 GA Account Guaranteed Interest Rate: . . . . . . . . . . . . 17
1.18 Guaranteed Term (Term): . . . . . . . . . . . . . . . . . . 17
1.19 Individual Account: . . . . . . . . . . . . . . . . . . . . 17
1.20 Loan Account: . . . . . . . . . . . . . . . . . . . . . . . 17
1.21 Loan Effective Date: . . . . . . . . . . . . . . . . . . . 17
1.22 Loan Interest Rate: . . . . . . . . . . . . . . . . . . . . 17
<PAGE> 5
<PAGE>
1.23 Maintenance Fee: . . . . . . . . . . . . . . . . . . . . . . 18
1.24 Market Value Adjustment (MVA): . . . . . . . . . . . . . . . 18
1.25 Matured Term Value: . . . . . . . . . . . . . . . . . . . . 18
1.26 Matured Term Value Transfer: . . . . . . . . . . . . . . . . 18
1.27 Maturity Date: . . . . . . . . . . . . . . . . . . . . . . . 18
1.28 Monthly Average Corporates: . . . . . . . . . . . . . . . . 18
1.29 Net Contribution: . . . . . . . . . . . . . . . . . . . . . 18
1.30 Nonunitized Separate Account: . . . . . . . . . . . . . . . 18
1.31 Participant: . . . . . . . . . . . . . . . . . . . . . . . . 19
1.32 Plan: . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
1.33 Reinvestment: . . . . . . . . . . . . . . . . . . . . . . . 19
1.34 Separate Account: . . . . . . . . . . . . . . . . . . . . . 19
1.35 Transfer: . . . . . . . . . . . . . . . . . . . . . . . . . 19
1.36 Transferred Assets: . . . . . . . . . . . . . . . . . . . . 19
1.37 Valuation Period: . . . . . . . . . . . . . . . . . . . . . 20
1.38 Variable Annuity: . . . . . . . . . . . . . . . . . . . . . 20
1.39 Withdrawal Fee: . . . . . . . . . . . . . . . . . . . . . . 20
II. GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . 20
2.01 Change of Contract: . . . . . . . . . . . . . . . . . . . . 20
2.02 Change of Fund: . . . . . . . . . . . . . . . . . . . . . . 20
2.03 Nonparticipating Contract: . . . . . . . . . . . . . . . . . 20
2.04 Payments: . . . . . . . . . . . . . . . . . . . . . . . . . 21
2.05 State Laws: . . . . . . . . . . . . . . . . . . . . . . . . 21
2.06 Control of Contract: . . . . . . . . . . . . . . . . . . . . 21
2.07 Designation of Beneficiary: . . . . . . . . . . . . . . . . 22
2.08 Misstatements and Adjustments: . . . . . . . . . . . . . . . 22
2.09 Incontestability: . . . . . . . . . . . . . . . . . . . . . 22
2.10 Grace Period: . . . . . . . . . . . . . . . . . . . . . . . 23
2.11 Individual Certificates: . . . . . . . . . . . . . . . . . . 23
2.12 Aggregation of Contracts: . . . . . . . . . . . . . . . . . 23
III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS . . . . . 23
3.01 Individual Account: . . . . . . . . . . . . . . . . . . . . 23
3.02 Net Contribution(s): . . . . . . . . . . . . . . . . . . . . 24
3.03 Limitation on Contributions: . . . . . . . . . . . . . . . . 24
3.04 Experience Credits: . . . . . . . . . . . . . . . . . . . . 24
3.04 Fund Record Units: . . . . . . . . . . . . . . . . . . . . . 24
3.05 Fund Record Unit Value: . . . . . . . . . . . . . . . . . . 24
3.06 Fund Net Return Factors: . . . . . . . . . . . . . . . . . . 25
3.07 Market Value Adjustment (MVA): . . . . . . . . . . . . . . 25
3.08 Transfer(s): . . . . . . . . . . . . . . . . . . . . . . . . 26
3.09 Notice to the Contract Holder: . . . . . . . . . . . . . . 27
3.10 Loans: . . . . . . . . . . . . . . . . . . . . . . . . . . 27
3.11 Manner and Timing of Distributions: . . . . . . . . . . . . 29
3.12 Withdrawal: . . . . . . . . . . . . . . . . . . . . . . . . 30
3.13 Withdrawal Value: . . . . . . . . . . . . . . . . . . . . . 30
3.14 Withdrawal Restrictions: . . . . . . . . . . . . . . . . . . 30
3.15 Withdrawals from the GA Account: . . . . . . . . . . . . . . 31
3.16 Withdrawal Fee Applicable to Funds and GA Account: . . . . . 31
3.17 Payment of Fixed Plus Account Full Withdrawal: . . . . . . . 32
<PAGE> 6
<PAGE>
3.18 Reinstatement: . . . . . . . . . . . . . . . . . . . . . . . 33
3.19 Payment of Minimum Current Value: . . . . . . . . . . . . . 33
3.20 Amount Payable at Death (Before Annuity Payments Start): . . 33
IV. NON-ANNUITY DISTRIBUTION OPTIONS . . . . . . . . . . . . . . . . . 33
4.01 Distribution Options: . . . . . . . . . . . . . . . . . . . 33
4.02 Estate Conservation Option: . . . . . . . . . . . . . . . . 34
4.03 Systematic Withdrawal Option: . . . . . . . . . . . . . . . 35
V. ANNUITY PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . 38
5.01 Choices: . . . . . . . . . . . . . . . . . . . . . . . . . . 38
5.02 Terms of Annuity Options: . . . . . . . . . . . . . . . . . 39
5.03 Annuity Payments to Annuitant: . . . . . . . . . . . . . . . 39
5.04 Death Provision: . . . . . . . . . . . . . . . . . . . . . . 40
5.05 Fund Annuity Units: . . . . . . . . . . . . . . . . . . . . 40
5.06 Fund Annuity Unit Value: . . . . . . . . . . . . . . . . . . 40
5.07 Fund Annuity Net Return Factor: . . . . . . . . . . . . . . 40
5.08 Annuity Options: . . . . . . . . . . . . . . . . . . . . . . 41
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Contract Schedule I
Level A
Accumulation Period
Separate Account:
___________________________________________________________________________
Separate Account:
Variable Annuity Account C
Charges to Separate Account:
A daily charge is deducted from any portion of the Current
Value allocated to the Separate Account. The charge is
determined by the value of total assets held by Aetna under
this Contract and other Aetna contracts of the same class, on
each anniversary date of this Contract. The daily charge for
Annuity mortality and expense risk and profit (M & E) will be
adjusted (up or down) no less often than annually to reflect
changes in the Current Value of all Plan Accounts. The charge
will include a daily administrative charge which will not
exceed [0.25%] on an annual basis.
Total Assets M & E Administrative Charge
(annual effective rate) (annual effective rate)
__________________________________________________________________
Less than $500,000 1.25% 0.25%
500,000 - 1,000,000 1.25% 0.25%
1,000,001 - 5,000,000 1.25% 0.25%
5,000,001 - 15,000,000 1.25% 0.25%
Greater than 15,000,000 1.25% 0.25%
Initial charges will be based on Aetna's estimated year end asset
level for the Contract Holder.
Fixed Plus Account
___________________________________________________________________________
Minimum Guaranteed Interest Rate:
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[3%] (effective annual rate of return).
Beginning on the tenth anniversary of the effective date of
an Individual Account, Aetna will credit amounts with an
interest rate that is at least 0.25% higher than the then
declared interest rate for Individual Accounts before the
tenth anniversary.
Partial Withdrawal:
The [20%] annual limit applicable to a partial withdrawal
from the Fixed Plus Accounts will be waived when the
withdrawal is:
a) due to the Participant's death (within [six (6)]
months of the Participant's date of death), before
Annuity benefit payments begin; or
b) used to purchase Annuity benefits.
Full Withdrawal:
The Payment of Fixed Plus Account Full Withdrawal provision
will be waived when the withdrawal is:
a) Due to the Participant's death before Annuity payments
begin and request for payment is received within six
(6) months after the Participant's date of death;
b) Used to purchase Annuity benefits; or
c) When the amount in the Fixed Plus Account is $3,500 or
less and no amount has been surrendered, transferred,
taken as a loan or used to purchase Annuity benefits
during the prior 12 months.
Guaranteed Accumulation Account (GA Account)
___________________________________________________________________________
Minimum Guaranteed Interest Rate:
[3%] (effective annual rate of return).
Separate Account and GA Account
___________________________________________________________________________
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Withdrawal Fee:
Length of Time from Individual
Account(s) Effective Date (Years) Withdrawal Fee
Fewer than 5 5%
5 or more, but fewer than 7 5%
7 or more, but fewer than 9 5%
9 or more, but fewer than 10 5%
10 or more 5%
The withdrawal fee will not be deducted from any portion of the
Individual Account(s) Current Value which is paid:
- Due to the Participant's death before Annuity payments
begin;
- Used to purchase Annuity benefits;
- Due to the election of the Estate Conservation Option
(ECO) or the Systematic Withdrawal Option (SWO) (see
Section IV);
- In an amount equal to or less than [10%] of the
Individual Account Current Value, as part of the first
partial withdrawal request in a calendar year to a
Participant who is at least age 59 1/2 and less than
70 1/2. The Individual Account Current Value is
calculated as of the date the partial withdrawal
request is received in good order at Aetna's Home
Office. Any outstanding loans from the Individual
Account are excluded when calculating the Individual
Account Current Value. This provision does not apply
to partial withdrawal due to loan defaults made from
the Individual Account and does not apply to full
withdrawal requests. This provision may not be
exercised if SWO is elected;
- When the Individual Account(s) Current Value is
[$3,500] or less and no amount has been withdrawn,
taken as a loan or used to purchase Annuity benefits
during the prior [12] months;
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- To relieve a Participant's "financial hardship," as
may be allowed for annuity contracts under Section
403(b) of the Code or other applicable Internal
Revenue Service rules or regulations; or
- On account of a Participant's separation from service.
The Contract Holder must submit documentation
satisfactory to Aetna to confirm that the Participant
is no longer providing services to the employer.
- The withdrawal fee will never exceed 8 1/2% of the
total Contributions made to the Individual Account.
Separate Account, GA Account and Fixed Plus Account
___________________________________________________________________________
Transfers:
An unlimited number of Transfers may be made during
the Accumulation Period.
Maintenance Fee:
An annual Maintenance Fee may be charged, as
determined by the value of total assets held by Aetna
under this Contract and other Aetna contracts of the
same class, on each anniversary date of this Contract.
The Maintenance Fee may go up or down each year. Where
applicable, the Maintenance Fee will be charged for
each Participant in the Contract.
Total Assets Maintenance Fee
___________________________________________________________________________
Less than $500,000 $25.00
500,000 - 1,000,000 $25.00
1,000,001 - 5,000,000 $25.00
5,000,001 - 15,000,000 $25.00
Greater than 15,000,000 $25.00
Initial charges will be based on Aetna's estimated year end asset
level for the Contract Holder.
Systematic Withdrawal Option (SWO):
The Specified Payment or Specified Percentage may not be
greater than 20% of the Individual Account's Current Value
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at the time of election. The Specified Period may not be
less than 5 years.
Loan Interest Rate:
a) Plans subject to ERISA: a Loan Interest Rate is set
on the first business day of each month. For each
loan, the initial Loan Interest Rate is equal to the
Monthly Average Corporates for the calendar month
beginning two months before the calendar month in
which the Loan Effective Date occurs. The initial
Loan Interest Rate is effective for a period of not
less than three months and not more than one year.
The period is specified in the loan agreement. For
each period, the Loan Interest Rate is adjusted if the
new rate is at least [0.5%] higher or lower than the
previous rate. The Participant will receive reasonable
notification of any change to the Loan Interest Rate.
b) Plans not subject to ERISA: [6%] on an annual basis.
See Section I. - DEFINITIONS for explanations.
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Contract Schedule II
Annuity Period
Separate Account
___________________________________________________________________________
Charges to Separate Account:
A daily charge is deducted from any portion of the Current
Value allocated to a Variable Annuity. The administrative
charge is established upon election of an Annuity option.
This charge will not exceed [0.25%].
Variable Annuity Assumed Annual Net Return Rate:
If a Variable Annuity is chosen, an assumed annual net
return rate of [5.0%] may be elected. If [5.0%] is not
elected, Aetna will use an assumed annual net return rate of
[3.5%].
The daily net return rate factor for an assumed annual net
return rate [3.5%] per year is [0.9999058].
The daily net return rate factor for an assumed annual net
return rate [5.0%] per year is [0.9998663].
If the portion of a Variable Annuity payment for any Fund is
not to decrease, the Annuity return factor under the
Separate Account for that Fund must be:
a) [4.75%] on an annual basis plus an annual return of up
to [0.25%] to offset the administrative charge set at
the time Annuity payments commence if an assumed
annual net return rate of [3.5%] is chosen; or
b) [6.25%] on an annual basis plus an annual return of up
to [0.25%] to offset the administrative charge set at
the time Annuity payments commence, if an assumed
annual net return rate of [5%] is chosen.
Annuity Option 2:
For amounts invested in the GA Account or one or more of the
Fund(s), the number of years must be at least [five (5)] and
not more than [thirty (30)] and the Annuity may be a Fixed
or Variable Annuity.
For amounts invested in the Fixed Plus Account, the number
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of years must be at least [five (5)] and not more than
[thirty (30)] and the Annuity must be a Fixed Annuity.
Fixed Annuity
___________________________________________________________________________
Minimum Guaranteed Interest Rate:
[3.0%] (effective annual rate of return).
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Definitions
___________________________________________________________________________
1.01 Accumulation Period:
The period during which Net Contribution(s) are applied to
an Individual Account.
1.02 Adjusted Current Value:
The Current Value (See 1.09) of an Individual Account (See
1.19 and 3.01) plus or minus any applicable aggregate GA
Account Market Value Adjustment, if applicable (See 3.08).
1.03 Annuitant:
A person on whose life an Annuity payment is based under
this Contract.
1.04 Annuity:
Payment of an income under the Annuity Provisions of Section
V:
a) For the life of one or two persons;
b) For a stated period; or
c) For some combination of (a) and (b).
Upon certification by the employer of the Participant's
total disability, acceptance of retirement or termination of
employment, the Participant has the right to elect an
Annuity Option. Upon written direction from the Employer,
Aetna will pay annuity benefits directly to the Participant
and as payor, Aetna will be responsible for withholding any
applicable federal or state taxes and reporting such sums
and filing any related forms with the Internal Revenue
Service and/or to any applicable state taxing authorities.
In the event of the death of the Participant, Aetna will
distribute the accumulated balance of the deceased
Participant's Individual Account, without surrender charges,
as previously directed by the electing Participant, or in
the absence of such directions, as directed by the
Participant's beneficiary.
1.05 Beneficiary:
The person named to receive any benefits which remain under
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the Contract after the Participant's death. The Contract
Holder is the Contract Beneficiary. Participants designate a
Plan beneficiary for their Individual Accounts.
1.06 Code:
The Internal Revenue Code of 1986, as amended.
1.07 Contract Holder:
The entity, named on the cover of this Contract, to which
the Contract is issued.
1.08 Contribution:
A payment received at Aetna's Home Office and allocated to
this Contract.
1.09 Current Value:
For an Individual Account (See 1.19), the Current Value is
the total of:
a) The amount, if any, in the Fixed Plus Account, with
interest earned to date;
b) The amount, if any, in the GA Account, with interest
earned to date; and
c) The value of all Fund Record Units (See 3.05), if any,
as of the most recent Valuation Period; plus
d) Any amount due to experience credits; less
e) Any Maintenance Fee(s) due.
1.10 Deposit Period:
A calendar month, a calendar quarter, or any other period of
time specified by Aetna during which Net Contribution(s),
Transfers and Reinvestments are accepted into the GA Account
for one or more Terms.
1.11 Fixed Plus Account:
An accumulation option with a guaranteed minimum interest
rate. Aetna may credit a higher rate which is not
guaranteed. No withdrawal fee applies. However, the portion
that may be withdrawn or transferred in a 12 month period is
restricted (See 3.09, 3.18 and 3.19).
1.12 Fixed Plus Account Guaranteed Interest Rate:
Aetna will add interest daily at an annual rate no less than
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that shown on Contract Schedule I on any Net Contribution(s)
to the Fixed Plus Account. Aetna may add interest daily at a
higher rate determined by its Board of Directors.
1.13 Fixed Annuity:
An Annuity with payments that do not vary in amount.
1.14 Fund(s):
The open-end registered management investment companies
(mutual funds) in which the Separate Account invests.
1.15 General Account:
The account holding the assets of Aetna, other than those
assets held in Aetna's Separate Account(s) and Nonunitized
Separate Account(s).
1.16 Guaranteed Accumulation Account (GA Account):
An accumulation option where Aetna guarantees stipulated
rate(s) of interest for a specified period of time. All
assets of Aetna, including amounts in the Nonunitized
Separate Account, are available to meet the guarantees for
the GA Account.
1.17 GA Account Guaranteed Interest Rate:
Aetna will declare the interest rate(s) applicable to a
specific Guaranteed Term at the start of the Deposit Period
for that Guaranteed Term. The rate(s) are guaranteed by
Aetna for that Deposit Period and the ensuing Guaranteed
Term. The Guaranteed Interest Rates are annual effective
yields. That is, interest is credited daily at a rate that
will produce the Guaranteed Interest Rate over the period of
a year. No Guaranteed Interest Rate will ever be less than
the Minimum Guaranteed Interest Rate shown on Contract
Schedule I.
For Guaranteed Terms of one year or less, one Guaranteed
Interest Rate is credited for the full Guaranteed Term. For
longer Guaranteed Terms, an initial Guaranteed Interest Rate
is credited from the date of deposit to the end of a
specified period within the Guaranteed Term. There may be
different Guaranteed Interest Rate(s) declared for
subsequent specified time intervals throughout the
Guaranteed Term.
1.18 Guaranteed Term (Term):
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The period of time for which GA Account Guaranteed Rates are
guaranteed on Net Contributions, Transfers and Reinvestments
made into a current Deposit Period for the GA Account. Such
period begins on the day following the close of the Deposit
Period and ends on the designated Maturity Date. Guaranteed
Terms are offered at Aetna's discretion for various lengths
of time ranging up to and including ten years and are
classified as follows:
Short Term: Three (3) or fewer years. Amounts allocated to a
short Term are held in the General Account.
Long Term: More than three (3) years, but not more than ten
(10). Amounts allocated to a long Term are held in the
Nonunitized Separate Account.
During a Deposit Period, Aetna may make available any number
of Guaranteed Terms. The Contract Holder, or Participant, if
authorized in writing by the Contract Holder, may allocate
Net Contributions and Transfers into any or all of the
available Guaranteed Terms.
1.19 Individual Account:
Account(s) established, as directed by the Contract Holder,
for each Participant to keep a record of Current Value (See
1.09) and transactions.
1.20 Loan Account:
For each loan taken by a Participant, the loan amount
transferred from the investment options is credited to the
Loan Account.
1.21 Loan Effective Date:
The date of on which Aetna receives a loan agreement in good
order at its Home Office.
1.22 Loan Interest Rate:
The interest rate Aetna charges on a loan(see Contract
Schedule I).
1.23 Maintenance Fee:
The Maintenance Fee will be deducted during the Accumulation
Period from the sum of the Current Value of Participant's
Individual Accounts (see 2.12 Aggregation of Contracts) and
upon full surrender of the Participant's Individual
Accounts, unless otherwise directed by the Contract Holder.
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The Maintenance Fee for Individual Accounts will be as
established for the Contract on Contract Schedule I. The
Maintenance Fee is deducted on a pro rata basis from all
options used under a Participant's Individual Account.
However, the Maintenance Fee does not apply to each separate
Individual Account established for purposes of a lump sum
Contribution.
1.24 Market Value Adjustment (MVA):
An adjustment to the amount prematurely withdrawn or
Transferred from a GA Account Guaranteed Term prior to the
end of that Guaranteed Term. The adjustment reflects the
change in the value of the investment due to changes in
interest rates since the date of deposit and is computed
using the formula given in 3.08. The adjustment is expressed
as a percentage of each dollar being withdrawn.
1.25 Matured Term Value:
The amount payable on a GA Account Guaranteed Term's
Maturity Date.
1.26 Matured Term Value Transfer:
During the calendar month following a GA Account Maturity
Date, the Contract Holder, or Participant if authorized in
writing by the Contract Holder, may notify Aetna's Home
Office in writing to Transfer or withdraw all or part of the
Matured Term Value, plus interest at the new Guaranteed
Interest Rate accrued thereon, from the GA Account without
an MVA. This provision only applies to the first such
written request received from the Contract Holder, or
Participant if authorized in writing by the Contract Holder,
during this period for any Matured Term Value.
1.27 Maturity Date:
The last day of a GA Account Guaranteed Term.
1.28 Monthly Average Corporates:
Moody's Corporate Bond Yield Average-Monthly Average
Corporates published by Moody's Investors Service, or its
successor, or a substantially similar average as may be
allowed by law or regulation.
1.29 Net Contribution:
A Contribution less any applicable premium taxes.
1.30 Nonunitized Separate Account:
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An account established by Aetna under Section 38a-433 of the
Connecticut General Statutes that holds assets for GA
Account Terms (See 1.18) greater than three years. The
Contract Holder and/or Participant does not participate in
the investment gain or loss from the assets held in the
Nonunitized Separate Account. Such gain or loss is borne
entirely by Aetna. Assets in this account may be charged
with liabilities arising out of any other Aetna business.
1.31 Participant:
A person who participates in the Plan of the Contract Holder
named on the cover of this Contract.
1.32 Plan:
The Plan, named on the cover of this Contract, established
under Code Section 403(b). The Plan is not a part of the
Contract and Aetna is not bound by its terms.
1.33 Reinvestment:
Aetna will mail a notice to the Contract Holder, or
Participant if applicable, at least eighteen (18) calendar
days before a Guaranteed Term's Maturity Date. This notice
will contain the Terms available during the current Deposit
Periods with their Guaranteed Interest Rate(s) and projected
Matured Term Value. If no specific direction is given by the
Contract Holder or Participant, if applicable, prior to the
Maturity Date, each Matured Term Value will be reinvested in
the current Deposit Period for a Guaranteed Term of the same
duration. If a Guaranteed Term of the same duration is
unavailable, each Matured Term Value will automatically be
reinvested in the current Deposit Period for the next
shortest Guaranteed Term available in the same
classification. If no shorter Guaranteed Term is available,
the next longer Guaranteed Term will be used. Aetna will
mail a confirmation statement to the Contract Holder or
Participant, if applicable, the next business day after the
Maturity Date. This notice will state the Guaranteed Term
and Guaranteed Interest Rate(s) which will apply to the
reinvested Matured Term Value.
1.34 Separate Account:
An account, established by Aetna under Section 38a-433 of
the Connecticut General Statutes, that buys and holds shares
of the Fund(s) available under this Contract. 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
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Separate Account and is not a trustee of such amounts.
Amounts in the Separate Account are not generally guaranteed
and are held at market value. The assets of the Separate
Account, to the extent of reserves and other contract
liabilities of the Account, cannot be charged with other
Aetna liabilities arising out of any other Aetna business.
1.35 Transfer:
The movement of invested amounts among the available
Fund(s); the Fixed Plus Account and the GA Account during
the Accumulation Period.
1.36 Transferred Assets:
Transferred Assets are the value of prior contributions with
another carrier into an existing Plan which are deposited
into this Contract as of the date the amount is received in
good order by Aetna. Transferred Assets, less any premium
tax, will be allocated to Participant Individual Accounts in
amounts authorized by the Contract Holder.
1.37 Valuation Period:
The period of time commencing at the end of one valuation
date and ending at the end of the next valuation date.
1.38 Variable Annuity:
An Annuity with payments that vary with the net investment
results of the Funds available during the Annuity period.
1.39 Withdrawal Fee:
If all or any portion of an Individual Account Value is
withdrawn during the Accumulation Period, a percentage of
the amount withdrawn may be deducted so that the Aetna may
recover sales and administrative related expenses.
II. GENERAL PROVISIONS
___________________________________________________________________________
2.01 Change of Contract:
Only an authorized officer of Aetna may change the terms of
this Contract. Aetna reserves the right to modify this
Contract to meet the requirements of applicable state and
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federal laws or regulations. Aetna will notify the Contract
Holder and Certificate Holder in writing of any changes.
Aetna may change the tables for determining the amount of
Annuity benefit payments without Contract Holder consent.
Such a change will not become effective earlier than twelve
months after (1) the effective date of the Contract, or (2)
the effective date of a previous change. Aetna will notify
the Contract Holder in writing at least thirty (30) days
before the effective date of the change. The change will
apply to all current and future Individual Accounts.
2.02 Change of Fund:
Aetna, or the Separate Account may:
a) Change the Fund(s) in which the Separate Account
invests; and/or
b) Replace the shares of any Fund(s) held in the Separate
Account with shares of any other Fund(s).
Changes must be:
a) Approved by a majority vote in the Separate Account
with respect to the Fund(s) whose shares are to be
replaced;
b) Deemed necessary by Aetna under the Investment Company
Act of 1940; or
c) Deemed necessary by Aetna to accomplish the purpose of
the Separate Account.
Aetna will notify the Contract Holder of any such change.
2.03 Nonparticipating Contract:
The Contract Holder, Participants, or Beneficiaries will not
have a right to share in the earnings of Aetna.
2.04 Payments:
a) Aetna will make distributions as directed by the
Contract Holder. Aetna will determine the amount of
payments based on the Individual Account Current Value
as of the date on which a request is received in good
order at Aetna's Home Office. Payments will be made
within seven (7) calendar days of receipt of a written
request in good order at Aetna's Home Office.
b) Aetna may defer payments:
1) for a period of up to six (6) months (unless not
allowed by state law); and
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2) as allowed by federal law.
2.05 State Laws:
This Contract complies with the laws of the state in which
it is delivered. Any cash, death or Annuity payments are
equal to or greater than the minimum required by such laws.
Annuity tables for legal reserve valuation shall be as
required by state law. Such tables may be different from
Annuity tables used to determine Annuity payments.
2.06 Control of Contract:
The Contract Holder, or authorized designee of the Contract
Holder, may make any choices allowed under this Contract
with respect to Individual Accounts. Any choices made under
this Contract must be in writing. Until receipt of any such
written choice at its Home Office, Aetna may rely on any
prior choices made. Neither the Contract nor any Individual
Account is subject to the claims of Participants' creditors,
except to the extent permitted by law.
With respect to Transfers and allocation of Net
Contributions, the Contract Holder may authorize Aetna in
writing to accept written directions directly from
Participants. The Contract Holder may also authorize
Transfers and allocation changes to be made by Participants
over the telephone services made available by Aetna.
The Contract Holder may, by written direction to Aetna,
allow Participants to select the investment options of the
Employer Account and/or the Employee Account. No
distributions will be made from the Employer Account or the
Employee Account without the Contract Holder's and
Participant's written direction to Aetna, unless otherwise
directed by the Plan. An in-service transfer pursuant to IRS
Revenue Ruling 90-24, subject to any applicable withdrawal
fee, may be made only by written direction from the Contract
Holder and Participant to Aetna, unless otherwise specified
by the Plan. Checks for in-service transfers will be made
payable only to the acquiring investment provider.
Participants have no rights to direct Aetna as to payments
under the Contract unless countersigned by the Contract
Holder.
a) Nontransferable and Nonassignable:
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This Contract and any Individual Accounts are
nontransferable and nonassignable, except to Aetna in the
event of a loan or pursuant to a "qualified domestic
relations order" as set forth under the Retirement Equity
Act of 1984 (REA). In the event a loan is requested, the
Current Value of the Employee Account necessary to cover the
loan amount plus interest must be assigned to Aetna.
b) ERISA/REA Requirements:
The Contract Holder shall notify Aetna in writing of the
applicability of Title I of the Employee Retirement Income
Security Act of 1974 (ERISA), as amended by subsequent law
including REA, to the Plan. Aetna shall rely on the Contract
Holder's determination and representation of applicability.
With respect to any distribution made from an Employee or
Employer Account from a Contract subject to ERISA, the
Contract Holder must certify in writing that all the
appropriate REA requirements have been met and that the
distribution is in accordance with the terms of the Plan.
c) Participant Rights/Employee Account:
The Participant has a nonforfeitable right to the value of
his or her Employee Account pursuant to Code Section 403(b)
and the terms of the Plan as interpreted by the Contract
Holder (see 1.07). The Contract Holder and Participant will
jointly make all choices under the Contract for the Employee
Account.
d) Participant Rights/Employer Account:
The Participant has a nonforfeitable right to the value of
his or her Employer Account pursuant to the terms of, and to
the extent of his or her vested percentage under, the Plan
as interpreted by the Contract Holder. It is the Contract
Holder's responsibility to maintain records of the
Participant's vesting percentages. Aetna will not maintain
such records. The Contract Holder will make all choices
under the Contract for the Employer Account, except as
otherwise provided in this Contract.
The Contract Holder and each Participant hereunder have
agreed in writing to the above terms and conditions, except
as otherwise provided, to have the Contract Holder make all
choices under the Contract, except as otherwise provided,
and to be bound by the Contract Holder's directions to
Aetna. The Contract Holder's and Participant's signatures
are required for each request for a distribution.
2.07 Designation of Beneficiary:
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The Contract Holder is the Beneficiary under this Contract.
The Participant designates a beneficiary with the employer,
pursuant to the terms of the Plan.
2.08 Misstatements and Adjustments:
If Aetna finds the age of any payee to be misstated, the
correct facts will be used to adjust payments.
2.09 Incontestability:
Aetna cannot cancel this Contract because of any error of
fact on the application.
2.10 Grace Period:
This Contract will remain in effect even if Contributions
are not continued except as provided in 3.21.
2.11 Individual Certificates:
Aetna shall issue certificates to the Contract Holder or
Participants as required by the state in which this Contract
is delivered. The certificate will summarize certain
provisions of the Contract. Certificates are for information
only and are not a part of the Contract.
2.12 Aggregation of Contracts:
The Charges to the Separate Account and Maintenance Fee
described in Contract Schedule I vary by the Current Value
of Individual Accounts. In determining such Current Value,
Individual Accounts of the following contracts will be
aggregated:
a) this Contract, and
b) Aetna contracts of the same class as this Contract
covering employees of the employer maintaining the
Plan.
For purposes of determining the Daily Asset Charge and
Maintenance Fee under this Contract, where such other
contract comes into existence after the Effective Date, the
aggregation will commence no later than the first day of
the next succeeding anniversary date. Where such other
contract is in existence prior to, or on the Effective Date,
the aggregation will commence on the Effective Date.
III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS
___________________________________________________________________________
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3.01 Individual Account:
Aetna will maintain Individual Accounts for Plan
Participants as directed by the Contract Holder. The
Individual Accounts may be as follows:
a) Employer Account: This Individual Account will be
credited with employer Contributions; and
b) Employee Account: This Individual Account will be
credited with employee Contributions, specifically
employee salary reduction contributions.
The Contract Holder may make one or more lump sum
Contribution(s) on behalf of one or more Participants. Aetna
will establish a separate Individual Account for each lump
sum Contribution made, of more than a minimum amount stated
by Aetna, on behalf of a Participant for whom an Individual
Account exists at the time the lump sum Contribution is
made. Such Individual Account(s) will be designated as
Employer Accounts or Employee Accounts as instructed by the
Contract Holder.
Aetna reserves the right not to accept any contibution.
3.02 Net Contribution(s):
The Net Contribution equals the actual Contribution less any
applicable premium tax. Generally, Aetna will deduct the
premium tax when Annuity benefits are purchased (See Section
V). If Aetna determines that under applicable state law, it
must pay a premium tax when the Contribution is received, or
at any other time, it may deduct the tax at that time. The
Net Contribution(s) may be allocated among the following
investment options:
a) The Fixed Plus Account; and
b) The current Deposit Period(s) for Guaranteed Terms
under the GA Account; and
c) The Fund(s) in which the Separate Account invests.
The Contract Holder must tell Aetna the percentage of all
Net Contributions to allocate to one or more of the
investment options. The Contract Holder or, if permitted by
the Contract Holder, the Participant may change the
allocation of future Net Contributions at any time, without
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charge. Aetna reserves the right to require a minimum
Contribution amount per Individual Account.
3.03 Limitation on Contributions:
The Contribution(s) made to a Participant's Individual
Account(s) in any year cannot exceed the lesser of the
amount determined under the exclusion allowance of Code
Section 403(b)(2) or the annual additions limitation of Code
Section 415(c)(1).
In addition, in no event may the Contribution(s)
attributable to elective deferrals as defined in Code
Section 402(g) exceed $9,500 (or, such larger amount as
adjusted by the Secretary of the Treasury) during any
calendar year, unless the alternate limitation of Code
Section 402(g)(8) applies.
3.04 Experience Credits:
Aetna may apply experience credits under this Contract. Any
such credits will be computed as decided by Aetna.
3.04 Fund Record Units:
The portion of the Net Contribution(s) applied to each Fund
under the Separate Account will determine the number of Fund
Record Units credited to the Individual Account for that
Fund. This number is equal to the Net Contribution applied
to the Fund divided by the Fund Record Unit Value (See 3.06)
for the Valuation Period in which the Contribution is
received in good order.
3.05 Fund Record Unit Value:
A Fund Record Unit Value is computed by multiplying the Net
Return Factor (See 3.07) for the current Valuation Period by
the Fund Record Unit Value for the previous Period. The
dollar value of a Fund Record Unit, Separate Account assets,
and Variable Annuity payments may go up or down due to
investment gain or loss.
3.06 Fund Net Return Factors:
The Net Return Factor(s) are used to compute all Separate
Account record units for any Fund. The Net Return Factor for
each Fund is equal to 1.0000000 plus the Net Return Rate.
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The Net Return Rate is equal to:
a) The value of the shares of the Fund held by the
Separate Account at the end of a Valuation Period;
minus
b) The value of the shares of the Fund held by the
Separate Account at the start of the Valuation Period;
plus or minus
c) Taxes (or reserves for taxes) on the Separate Account
(if any);
d) Divided by the total value of the Fund Record Units
and Fund Annuity Units of the Separate Account at the
start of the Valuation Period;
e) Minus a Separate Account charge at an annual effective
rate as shown on Contract Schedule I for Annuity
mortality and expense risks and profit and a daily
administrative charge which will not exceed the amount
shown on Contract Schedule I on an annual basis. The
administrative charge may be changed annually except
for amounts which have been used to purchase an
Annuity.
A net return rate may be more or less than 0%.
The value of a share of the Fund is equal to the net assets
of the Fund divided by the number of shares outstanding.
3.07 Market Value Adjustment (MVA):
a) An MVA will be applied to any withdrawal from a GA
Account Term before the Maturity Date due to:
1) A Transfer;
2) A full or partial withdrawal;
3) A payment of a premium for Annuity Option 2.
The amount of the withdrawal will be adjusted to a market
value amount as described in
b) Market value adjusted amounts will be equal to the
amount withdrawn multiplied by the following ratio:
x
______
365
(1 + i)
_____________________
x
______
365
(1 + j)
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Where:
i is the Deposit Period Yield
j is the Current Yield
x is the number of days remaining, (computed from Wednesday
of the week of withdrawal) in the Term.
c) The Deposit Period Yield and Current Yield will be
determined as follows:
1) At the close of the last business day of each
week of the Deposit Period, a yield will be
computed as the average of the yields on that
day of U.S. Treasury Notes which mature in the
last three months of the Term.
2) The Deposit Period Yield is the average of those
yields for the Deposit Period. If withdrawal is
made prior to the close of the Deposit Period,
it is the average of those yields on each week
preceding withdrawal.
3) The Current Yield is the average of the yields
on the last business day of the week preceding
withdrawal on the same U.S. Treasury Notes
included in the Deposit Period Yield.
4) In the event that no U.S. Treasury Notes which
mature in the last three months of the Term
exist, Aetna reserves the right to use the U.S.
Treasury Notes that mature in a following
quarter.
d) Full and partial withdrawals as well as Transfers made
1) within six (6) months after the Participant's
date of death under the Amount Payable at Death
provision (See 3.22) will be the greater of:
(a) The aggregate MVA amount which is the sum
of all market value adjusted amounts
calculated due to a withdrawal of amounts
(for withdrawal or Transfer) from Terms
prior to the end of those Terms. The
aggregate MVA may be either positive or
negative; or
(b) The applicable portion of the Current
Value in the GA Account.
2) After the six month period following death, the
withdrawal or Transfer will be the aggregate MVA
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amount (i.e., including all MVAs).
e) The greater of the aggregate MVA amount or the
applicable portion of the Current Value in the GA
Account is applied to amounts withdrawn from the GA
Account for payment of a premium under Annuity Options
3 or 4.
3.08 Transfer(s):
Before an Annuity option is elected, all or any portion of
the Adjusted Current Value of the Individual Account may be
transferred from any Fund, the Fixed Plus Account or the GA
Account:
a) To any other allowable Fund; or
b) To the Fixed Plus Account; or
c) To any Guaranteed Term of the GA Account with a
different classification available in the Current
Deposit Period.
Transfer requests can be submitted as a percentage or as a
dollar amount. Aetna may establish a minimum transfer
amount. Within a Guaranteed Term classification, the amount
transferred will be withdrawn from the oldest Deposit
Period, then from the next oldest, and so on until the
amount requested is satisfied.
Amounts applied to Guaranteed Terms of the GA Account may
not be transferred to the Funds, the Fixed Plus Account or
to another Guaranteed Term during the Deposit Period or 90
days after the close of the Deposit Period except for
Matured Term Value(s) during the calendar month following
the Term's Maturity Date.
Transfers from Guaranteed Terms of the GA Account are
subject to the MVA provisions of 3.08.
During each rolling twelve (12) month period, up to 20% of
the Current Value held in the Fixed Plus Account may be
transferred to one or more of the Fund(s), and/or the GA
Account's then-current Deposit Period. The 20% limit is
reduced by any partial withdrawals, loans or amounts used to
purchase an Annuity during the twelve (12) month period.
Aetna reserves the right to include amounts paid under ECO
and SWO provisions for purposes of applying this 20% limit.
This limit is waived when the balance in the Fixed Plus
Account is $1,000 or less on the date the Transfer request
is received in good order at Aetna's Home Office.
The Contract Holder, or Participant if authorized in writing
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by the Contract Holder, may make an unlimited number of
Transfers during the Accumulation Period.
3.09 Notice to the Contract Holder:
Each year, Aetna will notify the Contract Holder of:
a) The value of any amounts held in:
1) The Fixed Plus Account,
2) The GA Account,
3) The Fund(s) for the Separate Account;
b) The number of any Fund Record Units;
c) The Fund Record Unit Value(s);
d) The Loan Account balance; and
e) The amount available for withdrawal.
This information will be as of a date no more than sixty
(60) days before the date of the notice.
3.10 Loans:
During the accumulation period, loans are granted (1) as
permitted under applicable law; (2) subject to the terms and
conditions of the loan agreement; and, (3) in accordance
with the following provisions.
a) Amount available for loan: The amount available for
loan is limited to the vested individual account
current value attributable to Participant
contributions, plus any amounts allowed by the
employer's plan. Amounts available from some
investment options may be subject to limitations
specified in the loan agreement. To obtain the loan
amount requested, these limitations may require the
Participant to transfer funds. A market value
adjustment may apply to amounts transferred.
The minimum loan amount is $1,000. The maximum loan
amount is the lesser of:
1) Fifty percent (50%) of the vested individual
account current value, including any Loan
Account, reduced by the amount of any
outstanding loan balance on the Loan Effective
Date; or
2) Fifty thousand dollars ($50,000) reduced by the
highest outstanding loan balance for the
preceding 12 months.
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The amount of all outstanding loans cannot exceed
$50,000.
b) Loan Interest Rate: A Loan Interest Rate is set on the
first business day of each month. For each loan, the
initial Loan Interest Rate is the rate for the
calendar month in which the Loan Effective Date
occurs. The initial Loan Interest Rate is effective
for a period of not less than three months and not
more than one year. The period is specified in the
loan agreement. For each period, the Loan Interest
Rate is adjusted if the new rate is at least 0.5%
higher or lower than the previous rate. The
Participant will receive reasonable notification of
any change to the Loan Interest Rate. As applicable,
the Loan Interest Rate is:
1) Plans subject to ERISA: equal to the Monthly
Average Corporates for the calendar month
beginning two months before the Loan Interest
Rate is effective.
2) Plans not subject to ERISA: not greater than 8%
on an annual basis.
c) Earned interest: The Loan Account is credited with
interest at a rate which is not less than the Loan
Interest Rate, less 3%, on an annual basis. Interest
credited to the Loan Account will never be less than
3%.
d) Loan repayment: Repayment is as set forth in the loan
agreement, or a Participant may repay a loan in full
at any time.
e) Surrenders while a loan is outstanding: If the
Participant requests a surrender from the vested
individual account current value while a loan is
outstanding, one of the following occurs:
1) If the amount of the vested individual account
current value available for distribution is
sufficient to repay (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, and (c) any surrender
fee due on the outstanding loan balance, that
amount, minus the Loan Account balance, is
deducted from the vested individual account
current value and the loan is canceled.
2) If the amount of the vested individual account
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current value available for distribution is not
sufficient to repay the (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, and (c) any surrender
fee due on the outstanding loan balance, the
surrender amount cannot exceed the vested
individual account current value, including the
Loan Account, reduced by 125% of the outstanding
loan balance.
f) Electing an annuity option while a loan is
outstanding: Before all or any portion of the vested
individual account current value is applied to an
annuity option, the Participant may repay any
outstanding loan balance, or the vested individual
account current value is adjusted as described in (e).
g) Death of the Participant while a loan is outstanding:
If a death benefit claim is submitted for an
individual account with an outstanding loan, the
individual account current value, including the amount
of the Loan Account, is reduced by the amount of the
outstanding loan balance before the death benefit
amount is determined.
h) Loan default: If Aetna does not receive a loan
payment when due, the outstanding loan balance becomes
due. If applicable, a 5% default charge may apply to
the portion in excess of 20%, if any, of the amount
transferred from the Fixed Plus Account. The
defaulted loan is treated as follows:
1) If the amount of the vested individual account
current value available for distribution is
sufficient to repay (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, and (c) any surrender
fee due on the outstanding loan balance, that
amount, minus the Loan Account balance, is
deducted from the vested individual account
current value and the loan is canceled.
2) If the amount of the vested individual account
current value available for distribution is not
sufficient to repay (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, and (c) any surrender
fee due on the outstanding loan balance, until
such time that the amount due can be
distributed, the Loan Account continues to earn
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interest, and interest is charged on the
outstanding loan balance. At that time, the
amount described in (h)(1) is surrendered from
the vested individual account current value and
the loan is canceled.
3.11 Manner and Timing of Distributions:
a) As directed by the Contract Holder, a distribution to
a Participant may be made in a lump sum, as one of the
Distribution Options described in Section IV, or as
one of the Annuity options in Section V.
b) Generally, the distribution of benefits accrued after
December 31, 1986, must begin by April 1 of the
calendar year following the calendar year in which the
Participant attains age 70 1/2. However, for a
Participant who attained age 70 1/2 before January 1,
1988, the distribution of such benefits must be made
or must begin not later than the April 1 of the
calendar year following the calendar year in which the
Participant retires.
The above does not apply if the Contract Holder is a
governmental entity or a church. For Participants of
such an employer, the distribution of benefits accrued
after December 31, 1986, must be made or must begin
not later than April 1 of the calender year following
the calendar year in which the Participant attains age
70 1/2 or retires, whichever occurs later.
c) The required distribution must be made over the life
of the Participant (or the joint lives of the
Participant and the Plan beneficiary) or over a period
not exceeding the life expectancy of the Participant
(or the joint life expectancies of the Participant and
the Plan beneficiary).
d) If the Contract Holder does not request commencement
of benefits as described above, Aetna will not be
responsible for compliance with the Code Section
401(a)(9) minimum distribution requirements or for any
adverse tax or other consequences that may result.
3.12 Withdrawal:
a) The Contract Holder may withdraw any portion or all of
an Individual Account Current Value by submitting a
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written request to Aetna.
b) Except as described in Section 3.19, unless the
Contract Holder specifies otherwise, partial
withdrawals are satisfied by withdrawing amounts on a
pro rata basis from each of the investment options in
which the Individual Account is invested.
c) When amounts are withdrawn from the GA Account,
amounts in Short-Term and Long-Term Classifications
are treated as separate investment options and amounts
are taken on a pro rata basis. Within a
Classification, amounts will be withdrawn starting
with the Term still in effect with the oldest Deposit
Period.
3.13 Withdrawal Value:
After deduction of the Maintenance Fee (if any), the amount
payable by Aetna upon the withdrawal of any portion of an
Individual Account from the Fund(s) or the GA Account shall
be reduced by a Withdrawal Fee, if applicable. The
Withdrawal Fee will be in accordance with the Withdrawal Fee
table in Contract Schedule I.
No Withdrawal Fee is deducted from any portion of the
Current Value which is paid from the Fixed Plus Account.
For a partial or full withdrawal from any Individual
Account, Aetna must receive written direction from the
Contract Holder on a form acceptable to Aetna. If the
Contract is subject to ERISA, this direction must include
certification that all of the REA waiver and spousal consent
requirements have been satisfied. Aetna may defer payment of
the withdrawal value until appropriate Contract Holder
certification is received.
3.14 Withdrawal Restrictions:
Limitations apply to full and partial withdrawals of the
"restricted amount" from this Contract, as required by Code
Section 403(b)(11). The restricted amount is the sum of:
a) Net Contributions attributable to a Participant's
salary reduction contributions made on and after
January 1, 1989; plus
b) The net increase, if any, in the December 31, 1988
value attributable to a Participant's salary reduction
contributions due to investment gains and losses and
creditied interest.
The restricted amount may be fully or partially withdrawn
only if one or more of the following conditions are met.
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a) The Participant has reached age 59 1/2;
b) The Participant has separated from service;
c) The Participant has died;
d) The Participant has become disabled, within the
meaning of Code Section 72(m)(7); or
e) The withdrawal is otherwise allowed by federal law,
regulations or rulings.
A full or partial withdrawal is also allowed if the
Participant incurs a "hardship" as that term is defined in
the Code or regulations under Code Section 403(b). However,
the amount available for hardship is limited to the lesser
of the amount necessary to satisfy the need or the Net
Contributions attributable to the Participant's salary
reduction contributions made on or after January 1, 1989.
The Contract Holder must certify that one of these
conditions has been met before a withdrawal request will be
considered to be in good order. The Contract Holder must
notify Aetna in writing when a lump sum payment is to be
made or Annuity payments are to commence.
If, pursuant to Revenue Ruling 90-24, Aetna agrees to accept
under this Contract amounts transferred from a Code Section
403(b)(7) custodial account, such amounts will be subject to
the withdrawal restrictions set forth in Code Section
403(b)(7)(A)(ii).
3.15 Withdrawals from the GA Account:
Full or partial withdrawals may be requested at any time
from the GA Account. However, amounts withdrawn prior to the
Maturity Date of a Term may be subject to a Market Value
Adjustment (See 3.08).
Full and partial withdrawals are satisfied by withdrawing
amounts from each of the investment options in which the
Individual Account is invested (the Funds, the Fixed Plus
Account, the GA Account Short-Term Classification and the GA
Account Long-Term Classification) on a pro rata basis.
However, the Contract Holder may specify a particular order
in which investment options will be liquidated in order to
satisfy a partial surrender request.
3.16 Withdrawal Fee Applicable to Funds and GA Account:
A withdrawal fee (Deferred Sales Charge) may apply to
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withdrawals from the GA Account and/or Funds. The fee will
vary according to the length of time elapsed from the
effective date of an Individual Account to the date when the
withdrawal request is received. For each withdrawal, the
withdrawal fee will be determined as shown on Contract
Schedule I.
During each rolling 12-month period, up to 20% of the
Current Value in the Fixed Plus Account may be withdrawn as
a partial surrender. This 20% limit is reduced by any
amount(s) transferred, taken as a loan or used to purchase
an Annuity during the 12 month period. The 20% limit
applicable to partial surrenders from the Fixed Plus Account
will be waived when the partial surrender is due to one of
the conditions set forth in Contract Schedule 1. The waiver
will apply provided the partial surrender is taken pro-rata
from the Fixed Plus Account, the GA Account, and the
Fund(s). Aetna reserves the right to include amounts paid
under the ECO and SWO provisions for purposes of applying
the 20% limit. However, the SWO provision is not available
if the Contract Holder on behalf of the Participant
requested a Fixed Plus Account transfer or surrender within
the current 12 month period.
3.17 Payment of Fixed Plus Account Full Withdrawal:
No withdrawal fee is deducted from any portion of the
Current Value which is paid from the Fixed Plus Account.
When Aetna receives a full withdrawal request, no additional
partial withdrawals or Transfers from the Fixed Plus Account
are permitted during the payout period. If a full withdrawal
is requested, Aetna will pay any Current Value, including
accrued interest, from the Fixed Plus Account in five
payments as follows:
a) One-fifth of the Current Value on the day the request
is received in good order at Aetna's Home Office,
reduced by any amount from the Fixed Plus Account that
was transferred, withdrawn or used for a loan or to
purchase Annuity benefits during the prior twelve
months;
b) One-fourth of the then remaining Current Value twelve
months later;
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c) One-third of the then remaining Current Value twelve
months later;
d) One-half of the then remaining Current Value twelve
months later; and
e) The balance of the then Current Value twelve months
later.
The Fixed Plus Account full withdrawal payment provision may
also be waived under certain conditions (See Contract
Schedule I).
Any full withdrawal from the Fixed Plus Account may be
cancelled by the Participant with Contract Holder's consent
at any time before the end of the payment period.
3.18 Reinstatement:
All or a portion of the proceeds of a full withdrawal of
this Contract may be reinvested within 30 days after the
withdrawal if allowed by law. Any Maintenance Fee and
Withdrawal Fee charged at the time of the withdrawal on the
amount being reinvested will be included in the
reinstatement. Any Market Value Adjustment deducted from GA
Account withdrawals will not be included in the
reinstatement. Amounts will be reinstated among the Fixed
Plus Account, the GA Account, and/or the Fund(s) for the
Separate Account in the same proportion as they were at the
time of withdrawal. Any amounts reinstated to the GA Account
will be credited to terms available during the then-current
Deposit Period. The number of Record Units reinstated will
be based on the Record Unit Value(s) next computed after
receipt in good order at Aetna's Home Office of the
reinstatement request and the amount to be reinvested.
Any Maintenance Fee which falls due after the withdrawal and
before the reinstatement will be deducted from the amount
reinstated.
Reinstatement is permitted only once for an Individual
Account.
3.19 Payment of Minimum Current Value:
If the sum of the Individual Account(s) Current Value(s) is
less than $3,500, and no Contributions have been received
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for three (3) years, Aetna may close the account(s) and pay
the Current Value(s) to the Contract Holder in one lump sum.
3.20 Amount Payable at Death (Before Annuity Payments Start):
Aetna will pay the Individual Account Current Value, as
directed by the Contract Holder in accordance with the Plan,
when:
a) The Participant dies before Annuity payments start;
and
b) The certified copy of the death certificate is
received.
Amounts in the GA Account will be payable as described in
Section 3.08(d).
IV. NON-ANNUITY DISTRUBITION OPTIONS
___________________________________________________________________________
4.01 Distribution Options:
The Contract Holder may elect one of the two following
distribution options on behalf of:
1) the Participant; or
2) the Participant's spouse provided the spouse is the
designated beneficiary under the Plan and the
Participant had died before electing an Annuity option
and before the date for required minimum
distributions.
4.02 Estate Conservation Option:
a) With the Estate Conservation Option (ECO) a portion of
the Individual Account Current Value is automatically
surrendered and distributed each year without incurring
a withdrawal fee. Each payment will be withdrawn from
the Individual Account in the same proportion as assets
are held in the Funds, the GA Account, and the Fixed
Plus Account on the date the payment is made.
b) Payments under ECO will comply with the incidental death
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benefit test set forth in Code Section 401(a)(9).
c) Distribution Amount: Each year that ECO is in effect,
Aetna will calculate and distribute an amount equal to
the minimum distribution required under the Code. The
annual distribution will be determined by dividing the
Individual Account Current Value as of December 31 of
the year prior to the payment year, by a single or joint
life expectancy factor. If joint life expectancy is
elected, the beneficiary under ECO must be the same as
the beneficiary of any death benefits under the Plan.
An exception will be made if Aetna maintains a
separate record of a Participant's Individual Account
Value as of December 31, 1986. In this instance,
payments made in or after the year in which the
Participant attains age 70 1/2, but before the year in
which the Participant attains age 75, will be
calculated only on amounts contributed after December
31, 1986 and any earnings after that date. If age 70
1/2 was attained prior to 1988, the Participant must
be retired in order to qualify for this exception.
The method under this rule is elected by the Contract
Holder and will not apply if the Participant has
received any distribution from his or her Individual
Account, other than distribution amounts required
under Code minimum distribution rules.
Aetna will maintain separate records if the Contract
Holder has not requested any withdrawals from the
Participant's Individual Account since December 31,
1986.
d) Life Expectancy Factor: For the Participant, the life
expectancy factor is either single life or joint life
expectancy as elected by the Contract Holder on behalf
of the Participant, based on tables in Code Section
401(a)(9) or related regulations. For a spouse
beneficiary, only a single life expectancy is available.
Life expectancy factors will be recalculated each year,
unless prohibited by the Code or regulations.
The joint life expectancy factor will be based on the
joint life expectancy of the Participant and his or
her beneficiary and such beneficiary of any death
benefits under the Plan while ECO is in effect. Any
change in the beneficiary designation under the Plan
must be immediately communicated to Aetna so that
subsequent distributions can be calculated as required
by IRS regulations.
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If joint life expectancy is elected and the
Participant or spouse dies, payments will be based on
the survivor's life expectancy. If the beneficiary is
not the spouse and the beneficiary dies first, the
joint life expectancy continues to be used to
determine payments.
If a single life expectancy is elected, at the death
of the Participant (or the spouse who is the
designated beneficiary electing ECO after the
Participant's death), the entire value must be
distributed no later than the December 31 of the year
following the year of the Participant's (or spouse's)
death. If a joint life expectancy is elected, and both
the Participant and spouse have died, any remaining
Current Value must be distributed no later than the
December 31 of the year following the year of the
second death. If a joint life expectancy is elected
and both the Participant and non-spouse beneficiary
have died, any remaining Current Value will be
distributed as instructed by the Contract Holder in
accordance with the Code and the terms of the Plan.
These calculations may be changed as necessary to
comply with Code minimum distribution rules. Any mode
of payment elected upon the Participant's death must
provide payments to be made at least as rapidly as
those made prior to the Participant's death.
e) Minimum Current Value: At its discretion, Aetna may
require a minimum initial Current Value for election of
this option. If after election of this option the
Current Value is insufficient to make a scheduled ECO
payment, Aetna will distribute the entire balance of the
Individual Account.
f) Distribution Date: The Contract Holder shall specify an
annual distribution date. For a Participant, the
earliest date is the first day of the calendar year in
which he or she attains age 70 1/2. For a spouse
beneficiary electing ECO after the Participant's death,
the earliest date is the date of the Participant's
death. The first distribution date may be the 15th of
any month, or such other date as Aetna may designate or
allow. Subsequent distributions will be made on the
anniversary of that date. At its option, Aetna may allow
payments to be made more frequently than annually.
g) Election and Revocation: The Contract Holder may elect
ECO by submitting a completed and signed election form
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to Aetna's Home Office. If the Contract Holder has
notified Aetna that the Plan is subject to Title I of
the Employee Retirement Income Security Act of 1974 as
amended, the Contract Holder must also certify in
writing that all the appropriate REA requirements have
been met and that the distribution is in accordance with
the terms of the Plan. Once ECO is elected, the Contract
Holder may revoke it by submitting a written request to
Aetna at its Home Office. Any revocation will apply only
to amounts not yet paid. ECO may be elected only once
per Participant.
4.03 Systematic Withdrawal Option:
a) With the Systematic Withdrawal Option (SWO) a portion of
the Individual Account Current Value is automatically
distributed each year without incurring a Withdrawal
Fee. A SWO payment will be calculated on the Individual
Account's Current Value. Each payment will be withdrawn
from the Individual Account in the same proportion as
assets are held in the Funds, the GA Account, and the
Fixed Plus Account on the date the payment is made. SWO
payments may not be elected if a loan is outstanding
under an Individual Account.
b) Payments under SWO will comply with the incidental death
benefit test set forth in Code Section 401(a)(9).
c) Distribution Amounts: The Contract Holder may elect one
of the three payment methods described below. These
calculations may be changed as necessary to comply with
the Code minimum distribution rules. If joint life
expectancy is elected, the beneficiary under SWO must be
the same as the beneficiary of any death benefits under
the Plan.
1) Specified Payment: Payments of a designated annual
dollar amount. The annual amount may not be greater
than the percentage of the Current Value at time of
election as shown on Contract Schedule I. This
amount will remain constant unless a higher amount
is required under Code minimum distribution rules.
Each year that the Specified Payment is in effect,
Aetna will calculate the minimum required
distribution by dividing the Individual Account
Current Value as of December 31 of the year prior
to the payment year by a life expectancy factor,
and distribute this amount if it is larger than the
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Specified Payment.
2) Specified Period: Payments are made over a period
of time. The number of years selected may not be
less than the number of years shown on Contract
Schedule I, unless otherwise required by Code
minimum distribution rules. The maximum specified
period will be limited by the life expectancy
factor. The amount paid each year is calculated by
dividing the Individual Account Current Value as of
December 31 of the prior year by the number of
payment years remaining.
3) Specified Percentage: Payments made as a specified
percentage of the Individual Account. The specified
percentage chosen cannot be greater than as shown
on Contract Schedule I. The Contract Holder on
behalf of a Participant may change the specified
percentage elected every six months. Each annual
distribution is determined by multiplying the
Individual Account Current Value by the percentage
chosen. The value to be used in this calculation is
the value on the December 31st prior to the year
for which the payment is being made. For payments
made more often than annually, the annual payment
result (calculated above) is divided by the number
of payments due each year. Payments will be made
each year until the year the Participant attains
age 70 1/2.
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d) Life Expectancy Factor: For the Participant, the life
expectancy factor for the initial distribution year is
either single life or joint life expectancy as elected
by the Contract Holder, based on tables in Section
401(a)(9) of the Code or related regulations. For a
spouse beneficiary, only a single life expectancy is
available. With each subsequent year, the life
expectancy factor will be the life expectancy factor for
the initial distribution year, reduced by one. These
calculations may be changed as necessary to comply with
the Code minimum distribution rules. If the joint life
expectancy is selected and the Participant or the
beneficiary dies on or after the required beginning date
for minimum distributions to the Participant, the joint
life expectancy factor will continue to be reduced by
one for each distribution year. Payments will continue
unless the Contract Holder elects an alternate payment
mode on behalf of the survivor. Any payment mode elected
on behalf of the Plan beneficiary must provide payments
to be made at least as rapidly as those made prior to
the Participant's death.
If the Participant dies before the required beginning
date for minimum distributions, SWO payments will
cease and the Contract Holder on behalf of the
beneficiary may claim the death benefit in accordance
with the terms of this Contract. If the beneficiary is
not the Participant's spouse, the entire death benefit
must be either applied to an Annuity option within one
(1) year of the Participant's death, or be paid within
five (5) years of the Participant's death. If the
beneficiary is the Participant's spouse, the
distribution is not required to begin earlier than
when the Participant would have attained age 70 1/2.
If joint life expectancy is elected and the
beneficiary dies before the required beginning date
for minimum distributions to the Participant, payments
to the Participant will continue to be based on joint
life expectancy reduced by one for each distribution
year.
e) Minimum Current Value: At its discretion, Aetna may
require a minimum initial Current Value for election of
this option. If after election of this option the
Current Value is insufficient to make a scheduled SWO
payment, Aetna will distribute the entire balance of the
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Individual Account.
f) Distribution Date: The Contract Holder, on behalf of the
Participant, or spouse beneficiary, shall specify the
initial distribution date. The earliest date is the
first day of the calendar year in which the Participant
attains age 59 1/2, or age 55, if separated from service
with the Contract Holder at or after age 55. SWO
payments will be made monthly, quarterly, semi-annually
or annually on the 15th of any month, or such other date
as Aetna may designate or allow. If payments are made
more frequently than annually, the annual amount payable
each year is divided by the number of payments due per
year. At its discretion Aetna may require a minimum
initial payment amount.
g) Election and Revocation: The Contract Holder may elect
SWO by submitting a completed and signed election form
to Aetna's Home Office. If the Contract Holder has
notified Aetna that the Plan is subject to Title I of
the Employee Retirement Income Security Act of 1974 as
amended, the Contract Holder must also certify in
writing that all the appropriate REA requirements have
been met and that the distribution is in accordance with
the terms of the Plan. Once SWO is elected, the Contract
Holder may revoke it by submitting a written request to
Aetna's Home Office. Any revocation will apply only to
amounts not yet paid. Generally, SWO may be elected only
once, however, if SWO is elected on behalf of a
Participant and then revoked before the date
distributions were required to begin under Code Section
401(a)(9), SWO may be elected on behalf of a spouse
beneficiary after the death of the Participant.
V. ANNUITY PROVISIONS
___________________________________________________________________________
5.01 Choices:
a) The Contract Holder, on behalf of the Participant may
elect an Annuity option by telling Aetna to pay all or
any portion of the Individual Account(s) Current Value
(minus any applicable premium tax if not previously
deducted) as a premium for an Annuity under option 2, 3,
or 4 (See 5.08). Any election of an Annuity option must
comply with the minimum distribution requirements of
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Code Section 401(a)(9), including the incidental death
benefit rule, and the regulations thereunder. This
restriction does not apply if option 4 is chosen and the
second Annuitant is the spouse of the Participant.
b) Generally, the first Annuity payment must be made by
April 1 of the calendar year following the year in which
the Participant turns age 70 1/2 or such later date as
may be allowed under federal law or regulations (see
3.12) For distributions taken in a lump sum, see
Withdrawal Value (3.14).
For any election of an Annuity Option, the Contract
Holder must provide certification that the REA
requirements, as applicable, and Code Section
403(b)(11) withdrawal restrictions have been
satisfied.
When an Annuity option is chosen the Contract Holder
must designate whether the Annuity will be Fixed or
Variable and whether the underlying investment will
be:
1) The General Account;
2) One or more of the available Fund(s); or
3) A combination of (1) and (2).
If a Fixed Annuity is chosen, the Annuity purchase
rate for the option chosen reflects at least the
Minimum Guaranteed Interest Rate (See Contract
Schedule II), but may reflect a higher interest rate.
If a Variable Annuity is chosen, the initial Annuity
payment for the option chosen reflects the assumed
annual return rate elected (See Contract Schedule II).
d) Payments will be made on a monthly basis unless the
Contract Holder requests otherwise.
e) Once elected, an Annuity option may not be revoked,
except for option 2 when elected on a variable basis.
5.02 Terms of Annuity Options:
a) No choice of any Annuity option may be made if the first
payment would be less than $20 or if the total payments
in a year would be less than $100.
b) For purposes of calculating the guaranteed first payment
of a Variable Annuity or the payments for a Fixed
Annuity, the Annuitant's and second Annuitant's adjusted
age will be used. The Annuitant's and second Annuitant's
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adjusted age is his or her age as of the birthday
closest to the Annuity commencement date reduced by one
year for Annuity commencement dates occurring during the
period of time from July 1, 1992 through December 31,
1999. The Annuitant's and second Annuitant's age will be
reduced by two years for Annuity commencement dates
occurring during the period of time from January 1, 2000
through December 31, 2009. The Annuitant's and second
Annuitant's age will be reduced by one additional year
for Annuity commencement dates occurring in each
succeeding decade.
The Annuity rates for options 3 and 4 are based on
mortality from 1983 Table a.
d) Assumed Annual Net Return Rate is the interest rate used
to determine the amount of the first Annuity payment
under a Variable Annuity. 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.
5.03 Annuity Payments to Annuitant:
In no event may any payments to the Annuitant under any
Annuity Option extend beyond:
a) The life of the Annuitant;
b) The lives of the Annuitant and the Plan beneficiary;
c) A period certain greater than the Annuitant's life
expectancy according to regulations under Code Section
401(a)(9), determined as of the date payments are to
commence; or
d) A period certain greater than the life expectancies of
the Annuitant and the Plan beneficiary according to
regulations under Code Section 401(a)(9) determined as
of the date payments are to begin.
5.04 Death Provision:
When an Annuitant dies under options 3 and 4, the present
value of any remaining guaranteed payments will be paid in
one sum or payments will continue at the direction of the
Contract Holder, in accordance with the Plan. If a Plan
beneficiary dies while receiving Annuity payments, the
present value of any remaining payments will be paid in one
lump sum as directed by the Contract Holder. The interest
rate used to determine the present value for a lump sum
payment will be the rate used to determine the first Annuity
payment.
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In no event may any payments to the Plan beneficiary under
an Annuity Option extend beyond:
a) The life of the payee determined as of the date payments
are to commence; or
b) Any certain period greater than the payee's life
expectancy as determined by regulations under Code
Section 401(a)(9) as of the date payments are to begin.
However, if a Plan beneficiary dies while under Option 1 or
while receiving Annuity payments, the present value of any
remaining payments will be paid in one lump sum to the
estate of the Plan beneficiary. The interest rate used to
determine the first payment will be used to calculate the
present value.
5.05 Fund Annuity Units:
The number of Fund(s) Annuity Units is based on the amount
of the first Variable Annuity payment which is equal to:
a) The portion of the Current Value including any
applicable MVA (see 3.08) or premium tax, applied to pay
a Variable Annuity; divided by
b) 1,000; multiplied by
c) The payment rate for the option chosen.
Such amount, or portion, of the variable payment will be
divided by the appropriate Fund(s) Annuity Unit Value (See
5.06) on the tenth Valuation Period before the due date of
the first payment to determine the number of each Fund
Annuity Units. The number of each Fund Annuity Units remains
fixed. Each future payment is equal to the sum of the
products of each Fund Annuity Unit Value multiplied by the
appropriate number of Units. The Fund Annuity Unit Value on
the tenth Valuation Period prior to the due date of the
payment is used.
5.06 Fund Annuity Unit Value:
For any Valuation Period, a Fund(s) Annuity Unit Value is
equal to:
a) The Value for the previous Period; multiplied by
b) The Annuity net return factor(s) (See 5.07) for the
Period; multiplied by
c) A factor to reflect the assumed annual net return rate.
(See Contract Schedule II).
The dollar value of a Fund Annuity Unit and Annuity payments
may go up or down due to investment gain or loss.
Payments shall not be changed due to changes in the
mortality or expense results or administrative charges.
5.07 Fund Annuity Net Return Factor:
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The Annuity Net Return Factor(s) is used to compute all
Separate Account Annuity payments for any Fund.
The Annuity Net Return Factor(s) for each Fund is equal to
1.0000000 plus the net return Rate.
The Net Return Rate is equal to:
a) The value of the shares of the Fund held by the Separate
Account at the end of a Valuation Period; minus
b) The value of the shares of the Fund held by the Separate
Account at the start of the Valuation Period; plus or
minus
c) Taxes (or reserves for taxes) on the Separate Account
(if any);
d) Divided by the total value of the Fund(s) Record Units
and Fund(s) Annuity Units of the Separate Account at the
start of the Valuation Period; minus
e) Minus a daily charge for Annuity mortality and expense
risks, which may include profit, and a daily
administrative charge (at the annual rate as shown on
Contract Schedule II).
A Net Return Rate may be more or less than 0%.
The value of a share of the Fund is equal to the net assets
of the Fund divided by the number of shares outstanding.
5.08 Annuity Options:
The Contract Holder may direct Aetna to make payments
according to one of the following options.
Option 1 -- Payments of Interest on Sum Left with Aetna --
This Option may be used only by the Plan beneficiary when
the Participant dies before Aetna has started paying an
Annuity. A portion or all of the sum paid upon death may be
held under this Option and will be held in the General
Account of Aetna at interest. The Contract Holder, on behalf
of the Plan beneficiary, may later tell Aetna to:
a) Pay a portion or all of the sum held by Aetna; or
b) Apply a portion or all of the sum held by Aetna to any
Annuity Option below.
If the Plan beneficiary is the Participant's surviving
spouse, the lump-sum payment may be deferred to a date not
later than when the Participant would have attained age 70
1/2.
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If the Plan beneficiary is not a spouse, the Contract Holder
must tell Aetna to pay the full sum within 5 years after the
death of the Participant.
Option 2 -- Payments for a Stated Period of Time -- An
Annuity will be paid for the number of years chosen (See
Contract Schedule II).
If payments for this option are made under a Variable
Annuity, the present value of any remaining payments may be
withdrawn at any time. If a withdrawal is requested prior to
the minimum number of years specified on Contract Schedule
II, it will be subject to any withdrawal fee, if applicable
(See Contract Schedule I).
Option 3 -- Life Income -- An Annuity will be paid for the
life of the Annuitant. Aetna may also guarantee payments for
60, 120, 180, or 240 months if so directed by the Contract
Holder.
Option 4 -- Life Income based upon the lives of two
Annuitants -- An Annuity will be paid during the lives of
the Annuitant and a second Annuitant. Payments will continue
until both Annuitants have died. When this option is chosen,
a choice of the following must be made:
a) 100% of the payment to continue after the first death;
b) 66 2/3% of the payment to continue after the first
death;
c) 50% of the payment to continue after the first death;
d) Payments for a minimum of 120 months, with 100% of the
payment to continue after the first death; or
e) 100% of the payment to continue at the death of the
second Annuitant and 50% of the payment to continue at
the death of the Annuitant.
Other Options -- Aetna may make other options available as
allowed by the laws of the state in which this Contract is
delivered.
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OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Years Guaranteed Monthly Quarterly Semi-Annual
Rate Payment Payment AnnualPayment
Payment
5 3.00% $17.91 $53.59 $106.78$211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
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OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Years Monthly Quarterly Semi- Annual
Payment Payment Annual Payment
Payment
5 $18.12 $54.19 $107.92 $213.99
6 15.35 45.92 91.44 181.32
7 13.38 40.01 79.69 158.01
8 11.90 35.59 70.88 140.56
9 10.75 32.16 64.05 127.00
10 9.83 29.42 58.59 116.18
11 9.09 27.18 54.13 107.34
12 8.46 25.32 50.42 99.98
13 7.94 23.75 47.29 93.78
14 7.49 22.40 44.62 88.47
15 7.10 21.24 42.31 83.89
16 6.76 20.23 40.29 79.89
17 6.47 19.34 38.51 76.37
18 6.20 18.55 36.94 73.25
19 5.97 17.85 35.54 70.47
20 5.75 17.22 34.28 67.98
21 5.56 16.65 33.15 65.74
22 5.39 16.13 32.13 63.70
23 5.24 15.66 31.19 61.85
24 5.09 15.24 30.34 60.17
25 4.96 14.85 29.56 58.62
26 4.84 14.49 28.85 57.20
27 4.73 14.15 28.19 55.90
28 4.63 13.85 27.58 54.69
29 4.53 13.57 27.02 53.57
30 4.45 13.30 26.49 52.53
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OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate Rate of 5.0%
Years Monthly Quarterly Semi- Annual
Payment Payment Annual Payment
Payment
5 $18.74 $56.00 $111.33 $219.98
6 15.99 47.77 94.96 187.64
7 14.02 41.90 83.30 164.59
8 12.56 37.52 74.58 147.35
9 11.42 34.11 67.81 133.99
10 10.51 31.40 62.42 123.34
11 9.77 29.19 58.03 114.66
12 9.16 27.36 54.38 107.45
13 8.64 25.81 51.31 101.39
14 8.20 24.50 48.69 96.21
15 7.82 23.36 46.44 91.75
16 7.49 22.37 44.47 87.88
17 7.20 21.51 42.75 84.48
18 6.94 20.74 41.23 81.47
19 6.71 20.06 39.88 78.80
20 6.51 19.46 38.68 76.42
21 6.33 18.91 37.59 74.28
22 6.17 18.42 36.62 72.35
23 6.02 17.98 35.73 70.61
24 5.88 17.57 34.93 69.02
25 5.76 17.20 34.20 67.57
26 5.65 16.87 33.53 66.25
27 5.54 16.56 32.92 65.04
28 5.45 16.28 32.35 63.93
29 5.36 16.01 31.83 62.90
30 5.28 15.77 31.35 61.95
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OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
Adjusted None 60 120 180240
Age of
Annuitant
50 $4.05 $4.05 $4.03 $3.99$3.93
51 4.12 4.11 4.09 4.05 3.99
52 4.19 4.19 4.16 4.11 4.04
53 4.27 4.26 4.23 4.18 4.10
54 4.35 4.34 4.31 4.25 4.16
55 4.44 4.42 4.39 4.32 4.22
56 4.53 4.51 4.47 4.40 4.29
57 4.62 4.61 4.56 4.48 4.35
58 4.72 4.71 4.65 4.56 4.42
59 4.83 4.81 4.75 4.64 4.49
60 4.95 4.93 4.86 4.73 4.55
61 5.07 5.05 5.97 4.83 4.62
62 5.20 5.17 5.08 4.92 4.69
63 5.34 5.31 5.20 5.02 4.76
64 5.49 5.45 5.33 5.12 4.83
65 5.65 5.61 5.47 5.22 4.89
66 5.82 5.77 5.61 5.33 4.96
67 6.01 5.94 5.75 5.44 5.02
68 6.20 6.13 5.91 5.54 5.08
69 6.41 6.33 6.07 5.65 5.14
70 6.64 6.54 6.23 5.76 5.19
71 6.88 6.76 6.41 5.86 5.24
72 7.14 7.00 6.59 5.97 5.28
73 7.43 7.26 6.77 6.06 5.32
74 7.73 7.53 6.96 6.16 5.35
75 8.06 7.82 7.14 6.25 5.38
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
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OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Months
Adjusted None 60 120 180240
Age of
Annuitant
50 $4.34 $4.34 $4.31 $4.27$4.22
51 4.41 4.40 4.38 4.33 4.27
52 4.48 4.47 4.45 4.40 4.32
53 4.56 4.55 4.52 4.46 4.38
54 4.64 4.63 4.59 4.53 4.44
55 4.72 4.71 4.67 4.60 4.50
56 4.81 4.80 4.75 4.67 4.56
57 4.91 4.89 4.84 4.75 4.62
58 5.01 4.99 4.93 4.83 4.69
59 5.12 5.10 5.03 4.92 4.75
60 5.23 5.21 5.13 5.00 4.82
61 5.36 5.33 5.24 5.09 4.88
62 5.49 5.45 5.35 5.19 4.95
63 5.63 5.59 5.47 5.28 5.02
64 5.78 5.73 5.60 5.38 5.08
65 5.94 5.89 5.73 5.48 5.15
66 6.11 6.05 5.87 5.58 5.21
67 6.29 6.22 6.02 5.69 5.27
68 6.49 6.41 6.17 5.79 5.33
69 6.70 6.60 6.33 5.90 5.38
70 6.92 6.81 6.49 6.00 5.43
71 7.17 7.04 6.66 6.10 5.48
72 7.43 7.27 6.84 6.20 5.52
73 7.71 7.53 7.02 6.30 5.55
74 8.02 7.80 7.20 6.39 5.59
75 8.35 8.08 7.38 6.48 5.62
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
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OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Payments Guaranteed for a Stated Period of Months
Adjusted None 60 120 180240
Age of
Annuitant
50 $5.26 $5.25 $5.22 $5.17$5.11
51 5.33 5.32 5.28 5.23 5.15
52 5.40 5.38 5.34 5.29 5.20
53 5.47 5.45 5.41 5.35 5.26
54 5.54 5.53 5.48 5.41 5.31
55 5.63 5.61 5.56 5.47 5.36
56 5.71 5.69 5.63 5.54 5.42
57 5.80 5.78 5.72 5.61 5.47
58 5.90 5.88 5.81 5.69 5.53
59 6.01 5.98 5.90 5.77 5.59
60 6.12 6.09 6.00 5.85 5.65
61 6.24 6.21 6.10 6.93 5.71
62 6.37 6.33 6.21 6.02 5.77
63 6.51 6.46 6.33 6.11 5.83
64 6.66 6.60 6.45 6.20 5.89
65 6.82 6.75 6.57 6.30 5.95
66 6.99 6.91 6.71 6.39 6.01
67 7.17 7.08 6.85 6.49 6.06
68 7.36 7.27 6.99 6.59 6.12
69 7.57 7.46 7.15 6.69 6.17
70 7.80 7.67 7.30 6.78 6.21
71 8.05 7.89 7.47 6.88 6.25
72 8.31 8.13 7.64 6.97 6.29
73 8.59 8.38 7.81 7.06 6.33
74 8.90 8.64 7.99 7.15 6.36
75 9.23 8.93 8.16 7.23 6.38
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
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OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d 4e
55 50 $3.69 $4.05 $4.27 $3.69 $4.03
55 55 3.88 4.25 4.47 3.87 4.14
55 60 4.06 4.47 4.71 4.06 4.20
60 55 3.99 4.44 4.71 3.98 4.42
60 60 4.24 4.71 4.99 4.23 4.57
60 65 4.49 5.01 5.32 4.48 4.64
65 60 4.38 4.97 5.32 4.38 4.93
65 65 4.72 5.33 5.70 4.71 5.14
65 70 5.07 5.75 6.17 5.05 5.26
70 65 4.93 5.68 6.15 4.91 5.66
70 70 5.40 6.21 6.70 5.36 5.96
70 75 5.89 6.82 7.40 5.81 6.12
75 70 5.69 6.68 7.32 5.62 6.67
75 75 6.37 7.45 8.15 6.23 7.12
75 80 7.07 8.34 9.16 6.78 7.36
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 62
<PAGE>
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d 4e
55 50 $3.97 $4.35 $4.56 $3.97 $4.31
55 55 4.16 4.54 4.76 4.15 4.42
55 60 4.27 4.73 5.00 4.26 4.48
60 55 4.27 4.73 5.00 4.26 4.70
60 60 4.51 4.99 5.27 4.50 4.84
60 65 4.66 5.25 5.61 4.65 4.93
65 60 4.66 5.25 5.61 4.65 5.22
65 65 4.99 5.61 5.99 4.98 5.42
65 70 5.19 5.97 6.44 5.17 5.54
70 65 5.19 5.97 6.44 5.17 5.93
70 70 5.67 6.49 6.99 5.62 6.23
70 75 5.95 6.96 7.61 5.87 6.40
75 70 5.95 6.96 7.61 5.87 6.95
75 75 6.64 7.73 8.43 6.48 7.40
75 80 7.04 8.39 9.29 6.79 7.64
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 63
<PAGE>
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d 4e
55 50 $4.88 $5.26 $5.48 $4.88 $5.23
55 55 5.04 5.44 5.66 5.04 5.32
55 60 5.15 5.63 5.91 5.14 5.38
60 55 5.15 5.63 5.91 5.14 5.59
60 60 5.37 5.87 6.16 5.37 5.72
60 65 5.52 6.14 6.51 5.51 5.80
65 60 5.52 6.14 6.51 5.51 6.10
65 65 5.83 6.49 6.87 5.82 6.29
65 70 6.04 6.84 7.34 6.00 6.41
70 65 6.04 6.84 7.34 6.00 6.81
70 70 6.49 7.35 7.87 6.44 7.08
70 75 6.77 7.84 8.51 6.68 7.25
75 70 6.77 7.84 8.51 6.68 7.81
75 75 7.45 8.60 9.33 7.27 8.25
75 80 7.86 9.28 10.20 7.57 8.49
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 64
<PAGE>
Aetna Life Insurance and Annuity Company
TRANSFER CREDIT ENDORSEMENT
The Contract or Certificate is hereby endorsed as follows:
Add the following statement to the end of Section 3.02 entitled Net
Contribution(s):
Transferred Assets are the value of prior contributions into an existing
Plan which are deposited into this Contract as of the date the amount is
received in good order by Aetna. Transferred Assets, less any premium tax,
will be allocated to Participant Individual Accounts in amounts authorized
by the Contract Holder.
Where Aetna is the exclusive 403(b) Plan provider, Aetna will apply a
Transfer Credit equal to [2%] of Transferred Assets deposited into the
Contract and allocated to Individual Accounts. The Transfer Credit amount
is calculated as of the one year anniversary of a Participant's first Net
Contribution to the Contract. The calculation for any Transfer Credit
amount will be based on the total amount of Transferred Assets remaining in
Individual Accounts as of the calculation date.
The Transfer Credit amount will be allocated to the Fixed Plus Account. The
amount will include the Transfer Credit plus any interest that would have
accrued had the Transfer Credit actually been deposited into the Fixed Plus
Account on the first business day of the calendar month following it's
calculation.
Transfer Credit will not be applied to assets transferred into the Contract
from existing Aetna Contracts. Only Net Contributions not previously held
by Aetna Life Insurance and Annuity Company are eligible for Transfer
Credit.
Endorsed and made a part of the Contract or Certificate on the effective
date of the Contract.
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<PAGE> 66
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<PAGE> 67
<PAGE>
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CERTIFICATE CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT
FORMULA DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
A007RC95
<PAGE> 68
<PAGE>
Exhibit 99-B.4.3
<PAGE> 1
<PAGE>
[Aetna Logo] Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Ave
Hartford, CT 06156
(800) 525-4225
You may call the toll-free number shown above to get
answers to questions or help to resolve a complaint.
Group Combination Annuity Contract (Nonparticipating)
This contract sets forth all the rights and obligations of Aetna Life
Insurance and Annuity Company (Aetna) and the Contract Holder(s) (you) named
on the cover. This contract constitutes the entire contract.
Specifications
- ------------------------------------------------------------------------------
Plan
SPECIMEN
- ------------------------------------------------------------------------------
Type of Plan
SPECIMEN
- ------------------------------------------------------------------------------
Contract Holder
SPECIMEN1
- ------------------------------------------------------------------------------
Contract No.
SPECIMEN
- ------------------------------------------------------------------------------
Effective Date
SPECIMEN
- ------------------------------------------------------------------------------
This contract is Delivered in YOUR STATE and is Subject to the Laws of that
Jurisdiction
Please read this contract carefully. It sets forth, in detail, your rights
and obligations and also those of Aetna Life Insurance and Annuity Company.
Right to Cancel
- ------------------------------------------------------------------------------
The Contract Holder may cancel this Contract within 10 days of receiving it by
returning this Contract along with a written notice to Aetna at the above
address or to the agent from whom it was purchased. Within 7 days after it
receives the notice of cancellation and this Contract at its Home Office,
Aetna will return the entire consideration paid plus any increase or minus any
decrease in the current value of any funds allocated to the Separate Account.
Signed at the Home Office on the Effective Date.
<PAGE> 2 2
<PAGE>
/s/ /s/
President Secretary
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT
FORMULA DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
Specifications
______________________________________________________________________________
Guaranteed Interest There is a guaranteed interest rate for
Contributions(s)
Rate held in the Fixed Plus Account and the GA Account (see
Contract Schedule I).
______________________________________________________________________________
Deductions from the There will be deductions for mortality and expense
risks
Separate Account and administrative fees (see 3.07 and 5.07).
______________________________________________________________________________
Deductions from Contribution(s) are subject to a deduction for premium
Contribution(s) taxes, if any (see 3.02).
______________________________________________________________________________
Withdrawal Fee There may be a charge deducted upon withdrawal (see
Contract Schedule I).
This Contract is a legal contract. This Contract and any attached document and
subsequent endorsements constitutes the entire legal relationship between
Aetna and the Contract Holder.
READ THIS CONTRACT CAREFULLY. This Contract sets forth, in detail, all of the
rights and obligations of both you and Aetna. IT IS THEREFORE IMPORTANT THAT
YOU READ THIS CONTRACT CAREFULLY.
<PAGE> 3 3
<PAGE>
Table of Contents
Separate Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Separate Account: . . . . . . . . . . . . . . . . . . . . . . . . . 7
Charges to Separate Account: . . . . . . . . . . . . . . . . . . . 7
Fixed Plus Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Minimum Guaranteed Interest Rate: . . . . . . . . . . . . . . . . . . 7
Partial Withdrawal: . . . . . . . . . . . . . . . . . . . . . . . . . 7
Full Withdrawal: . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Guaranteed Accumulation Account (GA Account) . . . . . . . . . . . . . . . 8
Minimum Guaranteed Interest Rate: . . . . . . . . . . . . . . . . . . 8
Separate Account and GA Account . . . . . . . . . . . . . . . . . . . . . . 8
Withdrawal Fee: . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Separate Account, GA Account and Fixed Plus Account . . . . . . . . . . 9
Transfers: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Maintenance Fee: . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Systematic Withdrawal Option (SWO): . . . . . . . . . . . . . . . . . 9
Loan Interest Rate: . . . . . . . . . . . . . . . . . . . . . . . . . 9
Separate Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Charges to Separate Account: . . . . . . . . . . . . . . . . . . . . 11
Variable Annuity Assumed Annual Net Return Rate: . . . . . . . . . . 11
Annuity Option 2: . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Fixed Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Minimum Guaranteed Interest Rate: . . . . . . . . . . . . . . . . . . 11
DEFINITIONS 13
1.01 Accumulation Period: . . . . . . . . . . . . . . . . . . . . . . 13
1.02 Adjusted Current Value: . . . . . . . . . . . . . . . . . . . . 13
1.03 Annuitant: . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.04 Annuity: . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.05 Beneficiary: . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.06 Code: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.07 Contract Holder: . . . . . . . . . . . . . . . . . . . . . . . . 13
1.08 Contribution: . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.09 Current Value: . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.10 Deposit Period: . . . . . . . . . . . . . . . . . . . . . . . . 14
1.11 Fixed Plus Account: . . . . . . . . . . . . . . . . . . . . . . 14
1.12 Fixed Plus Account Guaranteed Interest Rate: . . . . . . . . . . 14
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1.13 Fixed Annuity: . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.14 Fund(s): . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.15 General Account: . . . . . . . . . . . . . . . . . . . . . . . . 14
1.16 Guaranteed Accumulation Account (GA Account): . . . . . . . . . 14
1.17 GA Account Guaranteed Interest Rate: . . . . . . . . . . . . . . 14
1.18 Guaranteed Term (Term): . . . . . . . . . . . . . . . . . . . . 15
1.19 Individual Account(s): . . . . . . . . . . . . . . . . . . . . . 15
1.20 Loan Account: . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.21 Loan Effective Date: . . . . . . . . . . . . . . . . . . . . . . 15
1.22 Loan Interest Rate: . . . . . . . . . . . . . . . . . . . . . . 15
1.23 Maintenance Fee: . . . . . . . . . . . . . . . . . . . . . . . . 15
1.24 Market Value Adjustment (MVA): . . . . . . . . . . . . . . . . . 15
1.25 Matured Term Value: . . . . . . . . . . . . . . . . . . . . . . 15
1.26 Matured Term Value Transfer: . . . . . . . . . . . . . . . . . . 16
1.27 Maturity Date: . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.28 Monthly Average Corporates: . . . . . . . . . . . . . . . . . . 16
1.29 Net Contribution: . . . . . . . . . . . . . . . . . . . . . . . 16
1.30 Nonunitized Separate Account: . . . . . . . . . . . . . . . . . 16
1.31 Participant: . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.32 Plan: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.33 Reinvestment: . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.34 Separate Account: . . . . . . . . . . . . . . . . . . . . . . . 17
1.35 Transfer: . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
1.36 Transferred Assets: . . . . . . . . . . . . . . . . . . . . . . 17
1.37 Valuation Period: . . . . . . . . . . . . . . . . . . . . . . . 17
1.38 Variable Annuity: . . . . . . . . . . . . . . . . . . . . . . . 17
1.39 Withdrawal Fee: . . . . . . . . . . . . . . . . . . . . . . . . 17
II. GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.01 Change of Contract: . . . . . . . . . . . . . . . . . . . . . . 17
2.02 Change of Fund: . . . . . . . . . . . . . . . . . . . . . . . . 18
2.03 Nonparticipating Contract: . . . . . . . . . . . . . . . . . . . 18
2.04 Payments: . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.05 State Laws: . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.06 Control of Contract: . . . . . . . . . . . . . . . . . . . . . . 18
2.07 Designation of Beneficiary: . . . . . . . . . . . . . . . . . . 19
2.08 Misstatements and Adjustments: . . . . . . . . . . . . . . . . . 19
2.09 Incontestability: . . . . . . . . . . . . . . . . . . . . . . . 19
2.10 Grace Period: . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.11 Individual Certificates: . . . . . . . . . . . . . . . . . . . . 20
2.12 Aggregation of Contracts: . . . . . . . . . . . . . . . . . . . 20
<PAGE> 5 5
<PAGE>
III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS . . . . . . . 20
3.01 Individual Account(s): . . . . . . . . . . . . . . . . . . . . . 20
3.02 Net Contribution(s): . . . . . . . . . . . . . . . . . . . . . . 20
3.03 Limitation on Contributions: . . . . . . . . . . . . . . . . . . 20
3.04 Experience Credits: . . . . . . . . . . . . . . . . . . . . . . 21
3.05 Fund Record Units: . . . . . . . . . . . . . . . . . . . . . . . 21
3.06 Fund Record Unit Value: . . . . . . . . . . . . . . . . . . . . 21
3.07 Fund Net Return Factors: . . . . . . . . . . . . . . . . . . . . 21
3.08 Market Value Adjustment (MVA): . . . . . . . . . . . . . . . . . 21
3.09 Transfer(s): . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.10 Notice to the Participant: . . . . . . . . . . . . . . . . . . . 23
3.11 Loans: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.12 Manner and Timing of Distributions: . . . . . . . . . . . . . . 25
3.13 Withdrawal: . . . . . . . . . . . . . . . . . . . . . . . . . . 26
3.14 Withdrawal Value: . . . . . . . . . . . . . . . . . . . . . . . 26
3.15 Withdrawal Restrictions: . . . . . . . . . . . . . . . . . . . . 26
3.16 Withdrawals from the GA Account: . . . . . . . . . . . . . . . . 27
3.17 Withdrawal Fee Applicable to Funds and GA Account: . . . . . . . 27
3.18 Payment of Fixed Plus Account Full Withdrawal: . . . . . . . . . 27
3.19 Reinstatement: . . . . . . . . . . . . . . . . . . . . . . . . . 28
3.20 Payment of Minimum Current Value: . . . . . . . . . . . . . . . 28
3.21 Amount Payable at Death (Before Annuity Payments Start): . . . . 28
IV. NON-ANNUITY DISTRIBUTION OPTIONS . . . . . . . . . . . . . . . . . . . 28
4.01 Distribution Options: . . . . . . . . . . . . . . . . . . . . . 28
4.02 Estate Conservation Option: . . . . . . . . . . . . . . . . . . 28
4.03 Systematic Withdrawal Option: . . . . . . . . . . . . . . . . . 30
V. ANNUITY PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
5.01 Choices: . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
5.02 Terms of Annuity Options: . . . . . . . . . . . . . . . . . . . 32
5.03 Annuity Payments to Participant: . . . . . . . . . . . . . . . . 33
5.04 Death Provision: . . . . . . . . . . . . . . . . . . . . . . . . 33
5.05 Fund Annuity Units: . . . . . . . . . . . . . . . . . . . . . . 33
5.06 Fund Annuity Unit Value: . . . . . . . . . . . . . . . . . . . . 33
5.07 Fund Annuity Net Return Factor: . . . . . . . . . . . . . . . . 34
5.08 Annuity Options: . . . . . . . . . . . . . . . . . . . . . . . . 34
VI. QUALIFIED JOINT AND SURVIVOR AND PRERETIREMENT SURVIVOR ANNUITIES . . 35
6.01 ERISA Requirements: . . . . . . . . . . . . . . . . . . . . . . 35
6.02 Waiver and Spousal Consent: . . . . . . . . . . . . . . . . . . 35
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Contract Schedule I
Level [A]
Accumulation Period
Separate Account:
______________________________________________________________________________
Variable Annuity Account C
Charges to Separate Account:
A daily charge is deducted from any portion of the Current Value
allocated to the Separate Account. The charge is determined by the
value of total assets held by Aetna under this Contract and other
Aetna contracts of the same class, on each anniversary date of
this Contract. The daily charge for Annuity mortality and expense
risk and profit (M & E) will be adjusted (up or down) no less
often than annually to reflect changes in the Current Value of all
Plan accounts. The charge will include a daily administrative
charge which will not exceed [0.25%] on an annual basis.
Total Assets M & E Administrative Charge
(annual effective rate)(annual effective rate)
__________________________________________________________________
Less than $500,000 1.25% 0.25%
500,000 - 1,000,000 1.25% 0.25%
1,000,001 - 5,000,000 1.25% 0.25%
5,000,001 - 15,000,000 1.25% 0.25%
Greater than 15,000,000 1.25% 0.25%
Initial Charges will be based on Aetna's estabed year end asset
level for the Contract Holder
Fixed Plus Account
______________________________________________________________________________
_
Minimum Guaranteed Interest Rate:
[3%] (effective annual rate of return).
Beginning on the [tenth] anniversary of the effective date
of an Individual Account, Aetna will credit amounts with an
interest rate that is at least [0.25%] higher than the then
declared interest rate for Individual Accounts before the
[tenth] anniversary.
Partial Withdrawal:
The [20%] annual limit applicable to a partial withdrawal
from the Fixed Plus Account will be waived when the
withdrawal is:
<PAGE> 8 8
<PAGE>
a) Due to the Participant's death (within [six (6)]
months of the Participant's date of death), before
Annuity benefit payments begin; or
b) Used to purchase Annuity benefits.
Full Withdrawal:
The Payment of Fixed Plus Account Full Withdrawal provision
will be waived when the withdrawal is:
a) Due to the Participant's death before Annuity payments
begin and request for payment is received within six
(6) months after the Participant's date of death;
b) Used to purchase Annuity benefits; or
c) When the amount in the Fixed Plus Account is $3,500 or
less and no amount has been surrendered, transferred,
taken as a loan or used to purchase Annuity benefits
during the prior 12 months.
Guaranteed Accumulation Account (GA Account)
______________________________________________________________________________
Minimum Guaranteed Interest Rate:
[3%] (effective annual rate of return).
Separate Account and GA Account
______________________________________________________________________________
Withdrawal Fee:
Length of Time from Individual
Account(s) Effective Date (Years) Withdrawal Fee
Fewer than 5 5%
5 or more, but fewer than 7 5%
7 or more, but fewer than 9 5%
9 or more, but fewer than 10 5%
10 or more 5%
The Withdrawal Fee will not be deducted from any portion of
the Individual Account(s) Current Value which is paid:
- Due to the Participant's death before Annuity payments
begin;
- Used to purchase Annuity benefits;
- Due to the election of the Estate Conservation Option
(ECO) or the Systematic Withdrawal Option (SWO) (see
Section IV);
<PAGE> 9 9
<PAGE>
- In an amount equal to or less than [10%] of the
Individual Account(s) Current Value, as part of the
first partial withdrawal request in a calendar year to
a Participant who is at least age 59 1/2 and less than
70 1/2. The Individual Account(s)Current Value is
calculated as of the date the partial withdrawal
request is received in good order at Aetna's Home
Office. Any outstanding loans from the Individual
Account(s) are excluded when calculating the
Individual Account(s) Current Value. This provision
does not apply to partial withdrawal due to loan
defaults made from the Individual Account(s) and does
not apply to full withdrawal requests. This provision
may not be exercised if SWO is elected;
- When the Individual Account(s) Current Value is
[$3,500] or less and no amount has been withdrawn,
taken as a loan or used to purchase Annuity benefits
during the prior [12] months;
- To relieve a Participant's "financial hardship," as
may be allowed for annuity contracts under Section
403(b) of the Code or other applicable Internal
Revenue Service rules or regulations; or
- On account of a Participant's separation from service.
The Participant must submit documentation satisfactory
to Aetna to confirm that the he/she is no longer
providing services to the employer.
- The withdrawal fee will never exceed 8.5% of the total
Contributions made to the Individual Account(s).
Separate Account, GA Account and Fixed Plus Account
______________________________________________________________________________
Transfers:
An unlimited number of Transfers may be made during the
Accumulation Period.
Maintenance Fee:
An annual Maintenance Fee may be charged, as determined by
the value of total assets held by Aetna under this
Contract and other Aetna contracts of the same class, on
each anniversary date of this Contract. The Maintenance Fee
may go up or down each year. Where applicable, the
Maintenance Fee will be charged for each Participant in the
Contract.
<PAGE> 10 10
<PAGE>
Total Assets Maintenance Fee
______________________________________________________________________________
Less than $500,000 $25.00
500,000 - 1,000,000 $25.00
1,000,001 - 5,000,000 $25.00
5,000,001 - 15,000,000 $25.00
Greater than 15,000,000 $25.00
Initial charges will be based on Aetna's estimated year end asset
level for the Contract Holder
Systematic Withdrawal Option (SWO):
The Specified Payment or Specified Percentage may not be
greater than [20%] of the Individual Account's Current Value
at the time of election. The Specified Period may not be
less than [5 ]years.
Loan Interest Rate:
a) Plans subject to Title I of the Employee Retirement
Income Security Act of 1974 (ERISA): A Loan Interest
Rate is set on the first business day of each month.
For each loan, the initial Loan Interest Rate is equal
to the Monthly Average Corporates for the calendar
month beginning two months before the calendar month
in which the Loan Effective Date occurs. The initial
Loan Interest Rate is effective for a period of not
less than three months and not more than one year.
The period is specified in the loan agreement. For
each period, the Loan Interest Rate is adjusted if the
new rate is at least [0.5%] higher or lower than the
previous rate. The Participant will receive reasonable
notification of any change to the Loan Interest Rate.
b) Plans not subject to ERISA: [6%] on an annual basis.
See Section I. - DEFINITIONS for explanations.
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Contract Schedule II
Annuity Period
Separate Account
______________________________________________________________________________
Charges to Separate Account:
A daily charge at an annual effective rate of 1.25% for
mortality and expense risk and profit (M & E) is deducted
from any portion of the Current Value allocated to a
Variable Annuity. The administrative charge is established
upon election of an Annuity option. This charge will not
exceed an annual effective rate of [0.25%].
Variable Annuity Assumed Annual Net Return Rate:
If a Variable Annuity is chosen, an assumed annual net
return rate of [5.0%] may be elected. If [5.0%] is not
elected, Aetna will use an assumed annual net return rate of
[3.5%].
The daily net return rate factor for an assumed annual net
return rate [3.5%] per year is [0.9999058].
The daily net return rate factor for an assumed annual net
return rate [5.0%] per year is [0.9998663].
If the portion of a Variable Annuity payment for any Fund is
not to decrease, the Annuity return factor under the
Separate Account for that Fund must be:
a) [4.75%] on an annual basis plus an annual return of up
to [0.25%] to offset the administrative charge set at
the time Annuity payments commence if an assumed
annual net return rate of [3.5%] is chosen; or
b) [6.25%] on an annual basis plus an annual return of up
to [0.25%] to offset the administrative charge set at
the time Annuity payments commence, if an assumed
annual net return rate of [5%] is chosen.
Annuity Option 2:
For amounts invested in the GA Account or one or more of the
Fund(s), the number of years must be at least [five (5)] and
not more than [thirty (30)] and the Annuity may be a Fixed
or Variable Annuity.
For amounts invested in the Fixed Plus Account, the number
of years must be at least [five (5)] and not more than
[thirty (30)] and the Annuity must be a Fixed Annuity.
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Fixed Annuity
______________________________________________________________________________
Minimum Guaranteed Interest Rate:
[3.0%] (effective annual rate of return).
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DEFINITIONS
______________________________________________________________________________
1.01 Accumulation Period:
The period during which Net Contribution(s) are applied to
an Individual Account(s).
1.02 Adjusted Current Value:
The Current Value of an Individual Account (See 3.01) plus
or minus any aggregate GA Account Market Value Adjustment,
if applicable (See 3.08).
1.03 Annuitant:
A person on whose life an Annuity payment is based under
this Contract.
1.04 Annuity:
Payment of an income under the Annuity Provisions of Section
V:
a) For the life of one or two persons;
b) For a stated period; or
c) For some combination of (a) and (b).
Upon receipt of certification from the Participant of his or
her total disability, acceptance of retirement or
termination of employment, the Participant has the right to
elect an Annuity option. Aetna will pay Annuity benefits
directly to the Participant and as payor, Aetna will be
responsible for withholding any applicable federal or state
taxes and reporting such sums and filing any related forms
with the Internal Revenue Service and/or to any applicable
state taxing authorities. In the event of the death of the
Participant, Aetna will distribute the accumulated balance
of the deceased Participant's Individual Account(s), without
a Withdrawal Fee, as previously directed by the electing
Participant, or in the absence of such directions, as
directed by the Participant's Beneficiary.
1.05 Beneficiary:
The person named to receive any benefits which remain under
the Contract after the Participant's death. Participants
designate a Beneficiary for their Individual Account(s) (See
2.07).
1.06 Code:
The Internal Revenue Code of 1986, as amended.
1.07 Contract Holder:
The entity, named on the cover of this Contract, to which
the Contract is issued.
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1.08 Contribution:
A payment received at Aetna's Home Office and allocated to
this Contract.
1.09 Current Value:
For an Individual Account, the Current Value is the total
of:
a) The amount, if any, in the Fixed Plus Account, with
interest earned to date;
b) The amount, if any, in the GA Account, with interest
earned to date; and
c) The value of all Fund record units (See 3.05), if any,
as of the most recent Valuation Period; plus
d) Any amount due to experience credits; less
e) Any Maintenance Fee(s) due.
1.10 Deposit Period:
A calendar month, a calendar quarter, or any other period of
time specified by Aetna during which Net Contribution(s),
Transfers and Reinvestments are accepted into the GA Account
for one or more Terms.
1.11 Fixed Plus Account:
An accumulation option with a guaranteed minimum interest
rate. Aetna may credit a higher rate which is not
guaranteed. No Withdrawal Fee applies. However, the portion
that may be withdrawn or transferred in a 12 month period is
restricted (See 3.09, 3.18 and 3.19).
1.12 Fixed Plus Account Guaranteed Interest Rate:
Aetna will add interest daily at an annual rate no less than
that shown on Contract Schedule I on any Net
Contribution(s) to the Fixed Plus Account. Aetna may add
interest daily at a higher rate determined by its Board of
Directors.
1.13 Fixed Annuity:
An Annuity with payments that do not vary in amount.
1.14 Fund(s):
The open-end registered management investment companies
(mutual funds) in which the Separate Account invests.
1.15 General Account:
The account holding the assets of Aetna, other than those
assets held in Aetna's Separate Account(s) and Nonunitized
Separate Account(s).
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1.16 Guaranteed Accumulation Account (GA Account):
An accumulation option where Aetna guarantees stipulated
rate(s) of interest for a specified period of time. All
assets of Aetna, including amounts in the Nonunitized
Separate Account, are available to meet the guarantees for
the GA Account.
1.17 GA Account Guaranteed Interest Rate:
Aetna will declare the interest rate(s) applicable to a
specific Guaranteed Term at the start of the Deposit Period
for that Guaranteed Term. The rate(s) are guaranteed by
Aetna for that Deposit Period and the ensuing Guaranteed
Term. The Guaranteed Interest Rates are annual effective
yields. That is, interest is credited daily at a rate that
will produce the Guaranteed Interest Rate over the period of
a year. No Guaranteed Interest Rate will ever be less than
the Minimum Guaranteed Interest Rate shown on Contract
Schedule I.
For Guaranteed Terms of one year or less, one Guaranteed
Interest Rate is credited for the full Guaranteed Term. For
longer Guaranteed Terms, an initial Guaranteed Interest Rate
is credited from the date of deposit to the end of a
specified period within the Guaranteed Term. There may be
different Guaranteed Interest Rate(s) declared for
subsequent specified time intervals throughout the
Guaranteed Term.
1.18 Guaranteed Term (Term):
The period of time for which GA Account Guaranteed Rates are
guaranteed on Net Contributions, Transfers and Reinvestments
made into a current Deposit Period for the GA Account. Such
period begins on the day following the close of the Deposit
Period and ends on the designated Maturity Date. Guaranteed
Terms are offered at Aetna's discretion for various lengths
of time ranging up to and including ten years and are
classified as follows:
Short Term: Three (3) or fewer years. Amounts allocated to a
short Term are held in the General Account.
Long Term: More than three (3) years, but not more than ten
(10). Amounts allocated to a long Term are held in the
Nonunitized Separate Account.
During a Deposit Period, Aetna may make available any number
of Guaranteed Terms. The Participant may allocate Net
Contributions and Transfers into any or all of the available
Guaranteed Terms.
1.19 Individual Account(s):
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The account(s) established for each Participant to keep a
record of Current Value and transactions (See 3.01).
1.20 Loan Account:
For each loan taken by a Participant, the loan amount
transferred from the investment options is credited to the
Loan Account.
1.21 Loan Effective Date:
The date on which Aetna receives a loan agreement in good
order at its Home Office.
1.22 Loan Interest Rate:
The interest rate Aetna charges on a loan (see Contract
Schedule I).
1.23 Maintenance Fee:
The Maintenance Fee will be deducted during the Accumulation
Period from the sum of the Current Value of Participant's
Individual Account(s) and upon full surrender of the
Participant's Individual Account(s), unless otherwise
directed by the Contract Holder. The Maintenance Fee for
Individual Account(s) will be as established for the
Contract on Contract Schedule I. The Maintenance Fee is
deducted on a pro rata basis from all investment options
used under a Participant's Individual Account(s). However,
the Maintenance Fee does not apply to each separate
Individual Account established for purposes of a lump sum
Contribution.
1.24 Market Value Adjustment (MVA):
An adjustment to the amount prematurely withdrawn or
Transferred from a GA Account Guaranteed Term prior to the
end of that Guaranteed Term. The adjustment reflects the
change in the value of the investment due to changes in
interest rates since the date of deposit and is computed
using the formula given in 3.08. The adjustment is expressed
as a percentage of each dollar being withdrawn.
1.25 Matured Term Value:
The amount payable on a GA Account Guaranteed Term's
Maturity Date.
1.26 Matured Term Value Transfer:
During the calendar month following a GA Account Maturity
Date, the Participant may notify Aetna's Home Office in
writing to Transfer or withdraw all or part of the Matured
Term Value, plus interest at the new Guaranteed Interest
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Rate accrued thereon, from the GA Account without an MVA.
This provision only applies to the first such written
request received from the Participant during this period for
any Matured Term Value.
1.27 Maturity Date:
The last day of a GA Account Guaranteed Term.
1.28 Monthly Average Corporates:
Moody's Corporate Bond Yield Average-Monthly Average
Corporates published by Moody's Investors Service, or its
successor, or a substantially similar average as may be
allowed by law or regulation.
1.29 Net Contribution:
A Contribution less any applicable premium taxes.
1.30 Nonunitized Separate Account:
An account established by Aetna under Section 38a-433 of the
Connecticut General Statutes that holds assets for GA
Account Terms greater than three years. The Contract Holder
and/or Participant does not participate in the investment
gain or loss from the assets held in the Nonunitized
Separate Account. Such gain or loss is borne entirely by
Aetna. Assets in this account may be charged with
liabilities arising out of any other Aetna business.
1.31 Participant:
A person who participates in the Plan of the Contract Holder
named on the cover of this Contract.
1.32 Plan:
The Plan, named on the cover of this Contract, established
under Code Section 403(b). The Plan is not a part of the
Contract and Aetna is not bound by its terms.
1.33 Reinvestment:
Aetna will mail a notice to the Participant at least 18
calendar days before a Guaranteed Term's Maturity Date. This
notice will contain the Terms available during the current
Deposit Periods with their Guaranteed Interest Rate(s) and
projected Matured Term Value. If no specific direction is
given by the Participant, prior to the Maturity Date, each
Matured Term Value will be reinvested in the current Deposit
Period for a Guaranteed Term of the same duration. If a
Guaranteed Term of the same duration is unavailable, each
Matured Term Value will automatically be reinvested in the
<PAGE> 19 19
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current Deposit Period for the next shortest Guaranteed Term
available in the same classification. If no shorter
Guaranteed Term is available, the next longer Guaranteed
Term will be used. Aetna will mail a confirmation statement
to the Participant, the next business day after the Maturity
Date. This notice will state the Guaranteed Term and
Guaranteed Interest Rate(s) which will apply to the
reinvested Matured Term Value.
1.34 Separate Account:
An account, established by Aetna under Section 38a-433 of
the Connecticut General Statutes, that buys and holds shares
of the Fund(s) available under this Contract. 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 of such amounts.
Amounts in the Separate Account are not generally guaranteed
and are held at market value. The assets of the Separate
Account, to the extent of reserves and other contract
liabilities of the Account, cannot be charged with other
Aetna liabilities arising out of any other Aetna business.
1.35 Transfer:
The movement of invested amounts among the available
Fund(s), the Fixed Plus Account and the GA Account during
the Accumulation Period.
1.36 Transferred Assets:
Transferred Assets are the value of prior contributions with
another carrier into an existing Plan which are deposited
into this Contract as of the date the amount is received in
good order by Aetna. Transferred Assets, less any premium
tax, will be allocated to Participant Individual Account(s).
1.37 Valuation Period:
The period of time commencing at the end of one valuation
date and ending at the end of the next valuation date. A
valuation date is each day on which the New York Stock
Exchange is expected to be open for business.
1.38 Variable Annuity:
An Annuity with payments that vary with the net investment
results of the Funds available during the Annuity period.
1.39 Withdrawal Fee:
If all or any portion of an Individual Account(s) Value is
withdrawn during the Accumulation Period, a percentage of
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the amount withdrawn may be deducted so that the Aetna may
recover sales and administrative related expenses.
II. GENERAL PROVISIONS
______________________________________________________________________________
2.01 Change of Contract:
Only an authorized officer of Aetna may change the terms of
this Contract. Aetna reserves the right to modify this
Contract to meet the requirements of applicable state and
federal laws or regulations. Aetna will notify the Contract
Holder and Participant in writing of any changes.
Aetna may change the tables for determining the amount of
Annuity benefit payments without Contract Holder or
Participant consent. Such a change will not become effective
earlier than twelve months after (1) the effective date of
the Contract, or (2) the effective date of a previous
change. Aetna will notify the Contract Holder and
Participant in writing at least thirty (30) days before the
effective date of the change. The change will apply to all
current and future Individual Accounts.
2.02 Change of Fund:
Aetna, or the Separate Account may:
a) Change the Fund(s) in which the Separate Account
invests; and/or
b) Replace the shares of any Fund(s) held in the Separate
Account with shares of any other Fund(s).
Replacements must be:
a) Approved by a majority vote in the Separate Account
with respect to the Fund(s) whose shares are to be
replaced; or
b) Deemed necessary by Aetna under the Investment Company
Act of 1940; or
c) Deemed necessary by Aetna to accomplish the purpose of
the Separate Account.
Aetna will notify the Contract Holder and Participant of any
such change.
2.03 Nonparticipating Contract:
The Contract Holder, Participants, or Beneficiaries will not
have a right to share in the earnings of Aetna.
2.04 Payments:
a) Aetna will make distributions as directed by the
Participant. Aetna will determine the amount of
payments based on the Individual Account(s) Current
Value as of the date on which a request is received in
good order at Aetna's Home Office subject to the
restrictions in Section 3.15. Payments will be made
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within seven (7) calendar days of receipt of a written
request in good order at Aetna's Home Office.
For Plans subject to ERISA, see Section VI.
b) Aetna may defer payments:
1) For a period of up to six (6) months
(unless not allowed by state law); and
2) As allowed by federal law.
2.05 State Laws:
This Contract complies with the laws of the state in which
it is delivered. Any cash, death or Annuity payments are
equal to or greater than the minimum required by such laws.
Annuity tables for legal reserve valuation shall be as
required by state law. Such tables may be different from
Annuity tables used to determine Annuity payments.
2.06 Control of Contract:
This is a Contract between the Contract Holder and Aetna
only to satisfy the "purchase" requirements of Section
403(b)(1) of the Internal Revenue Code of 1986, as amended.
The Contract Holder has no right, title or interest in the
amounts held under the Contract either by reason of
remitting Contributions or applying for this Contract.
Each Participant shall own all amounts held in his or her
Individual Account(s). The Participant may make any choices
allowed under this Contract with respect to Individual
Accounts. Any choices made under this Contract must be in
writing. Until receipt of any such written choice at its
Home Office, Aetna may rely on any prior choices made.
Neither the Contract nor any Individual Account is subject
to the claims of Participants' creditors, except to the
extent permitted by law.
Distributions will be made from the Individual Account(s)
upon the Participant's written direction to Aetna, subject
to the restrictions in Section 3.15 and Section VI. The
Participant may direct Aetna to make an in-service transfer
pursuant to IRS Revenue Ruling 90-24. Checks for in-service
transfers will be made payable only to the acquiring
investment provider.
a) Nontransferable and Nonassignable:
This Contract and any Individual Account(s) are
nontransferable and nonassignable, except to Aetna in
the event of a loan or pursuant to a "qualified
domestic relations order" as set forth under the
Retirement Equity Act of 1984 (REA). In the event a
loan is requested, the Current Value of the Individual
Account(s) necessary to cover the loan amount plus
interest must be assigned to Aetna.
b) ERISA/REA Requirements:
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The Contract Holder shall notify Aetna in writing of
the applicability of ERISA, as amended by subsequent
law including REA, to the Plan. Aetna shall rely on
the Contract Holder's determination and representation
of applicability. For Plans subject to ERISA, see
Section VI.
c) Participant Rights:
The Participant has a nonforfeitable right to the
value of his or her Individual Account(s) pursuant to
Code Section 403(b).
2.07 Designation of Beneficiary:
Each Participant shall name a Beneficiary.
An unmarried Participant may designate a Beneficiary of his
or her entire Individual Account(s) Current Value if it is
accompanied by a consent form which certifies that he or she
is unmarried.
In accordance with Section 6.01(b), for a married
Participant, the spouse must be the Beneficiary of 50% of
the Individual Account(s) Current Value. Provided, however,
if the Participant has attained age 35, he or she may
designate an alternate Beneficiary for such amount if the
appropriate waiver/spousal consent form, completed in a
manner consistent with Section 6.02, is submitted to Aetna.
For the balance of the Individual Account(s) Current Value,
a married Participant may name any Beneficiary without
obtaining spousal consent.
Upon the death of a married Participant, Aetna will
disregard the designated Beneficiary and treat the current
spouse as the Beneficiary, subject to the terms of any
applicable qualified domestic relations order, if the
current spouse did not consent to the designation of an
alternate Beneficiary.
2.08 Misstatements and Adjustments:
If Aetna finds the age of any payee to be misstated, the
correct facts will be used to adjust payments.
2.09 Incontestability:
Aetna cannot cancel this Contract because of any error of
fact on the application.
2.10 Grace Period:
This Contract will remain in effect even if Contributions
are not continued except as provided in Section 3.21.
2.11 Individual Certificates:
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Aetna shall issue certificates to the Contract Holder or
Participants as required by the state in which this Contract
is delivered. The certificate will summarize certain
provisions of the Contract. Certificates are for information
only and are not a part of the Contract.
2.12 Aggregation of Contracts:
The charges to the Separate Account and Maintenance Fee
described in Contract Schedule I vary by the Current Value
of Individual Account(s). In determining such Current Value,
Individual Account(s) of the following contracts will be
aggregated:
a) This Contract, and
b) Aetna contracts of the same class as this Contract
covering employees of the employer maintaining the
Plan.
For purposes of determining the daily asset charge and
Maintenance Fee under this Contract, where such other
contract comes into existence after the Effective Date, the
aggregation will commence no later than the first day of
the next succeeding anniversary date. Where such other
contract is in existence prior to, or on the Effective Date,
the aggregation will commence on the Effective Date.
III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS
______________________________________________________________________________
3.01 Individual Account(s):
Aetna will maintain Individual Account(s) for Participants.
The Individual Account(s) will be credited with employee
Contributions. Ongoing employer Contributions will not be
accepted.
Aetna reserves the right not to accept any Contribution.
3.02 Net Contribution(s):
The Net Contribution equals the actual Contribution less any
applicable premium tax. Generally, Aetna will deduct the
premium tax when Annuity benefits are purchased (See Section
V). If Aetna determines that under applicable state law, it
must pay a premium tax when the Contribution is received, or
at any other time, it may deduct the tax at that time. The
Net Contribution(s) may be allocated among the following
investment options:
a) The Fixed Plus Account; and
b) The current Deposit Period(s) for Guaranteed Terms
under the GA Account; and
c) The Fund(s) in which the Separate Account invests.
The Participant must tell Aetna the percentage of all Net
Contributions to allocate to one or more of the investment
options. The Participant may change the allocation of future
Net Contributions at any time, without charge. Aetna
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reserves the right to require a minimum Contribution amount
per Individual Account.
3.03 Limitation on Contributions:
The Contribution(s) made to a Participant's Individual
Account(s) in any year cannot exceed the lesser of the
amount determined under the exclusion allowance of Code
Section 403(b)(2) or the annual additions limitation of Code
Section 415(c)(1).
In addition, in no event may the Contribution(s)
attributable to elective deferrals as defined in Code
Section 402(g) exceed $9,500 (or, such larger amount as
adjusted by the Secretary of the Treasury) during any
calendar year, unless the alternate limitation of Code
Section 402(g)(8) applies.
3.04 Experience Credits:
Aetna may apply experience credits under this Contract. Any
such credits will be computed as decided by Aetna.
3.05 Fund Record Units:
The portion of the Net Contribution(s) applied to each Fund
under the Separate Account will determine the number of Fund
record units credited to the Individual Account(s) for that
Fund. This number is equal to the Net Contribution applied
to the Fund divided by the Fund record unit value (See 3.06)
for the Valuation Period in which the Contribution is
received in good order.
3.06 Fund Record Unit Value:
A Fund record unit value is computed by multiplying the net
return factor (See 3.07) for the current Valuation Period by
the Fund record unit value for the previous period. The
dollar value of a Fund record unit, Separate Account assets,
and Variable Annuity payments may go up or down due to
investment gain or loss.
3.07 Fund Net Return Factors:
The net return factor(s) are used to compute all Separate
Account record units for any Fund. The net return factor for
each Fund is equal to 1.0000000 plus the net return rate.
The net return rate is equal to:
a) The value of the shares of the Fund held by the
Separate Account at the end of a Valuation Period;
minus
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b) The value of the shares of the Fund held by the
Separate Account at the start of the Valuation Period;
plus or minus
c) Taxes (or reserves for taxes) on the Separate Account
(if any);
d) Divided by the total value of the Fund record units
and Fund Annuity units of the Separate Account at the
start of the Valuation Period;
e) Minus a Separate Account charge at an annual effective
rate as shown on Contract Schedule I for Annuity
mortality and expense risks and profit and a daily
administrative charge which will not exceed the amount
shown on Contract Schedule I on an annual basis. The
administrative charge may be changed annually except
for amounts which have been used to purchase an
Annuity.
A net return rate may be more or less than 0%.
The value of a share of the Fund is equal to the net assets
of the Fund divided by the number of shares outstanding.
3.08 Market Value Adjustment (MVA):
a) An MVA will be applied to any withdrawal from a GA
Account Term before the Maturity Date due to:
1) A Transfer;
2) A full or partial withdrawal;
3) A payment of a premium for Annuity Option 2.
The amount of the withdrawal will be adjusted to a market
value amount as described in b):
b) Market value adjusted amounts will be equal to the
amount withdrawn multiplied by the following ratio:
x
-------
365
(1 + i)
------------------------
x
-------
365
(1 + j)
Where:
i is the Deposit Period Yield
j is the Current Yield
x is the number of days remaining, (computed from Wednesday
of the week of withdrawal) in the Term.
c) The Deposit Period Yield and Current Yield will be
determined as follows:
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1) At the close of the last business day of each
week of the Deposit Period, a yield will be
computed as the average of the yields on that
day of U.S. Treasury Notes which mature in the
last three months of the Term.
2) The Deposit Period Yield is the average of those
yields for the Deposit Period. If withdrawal is
made prior to the close of the Deposit Period,
it is the average of those yields on each week
preceding withdrawal.
3) The Current Yield is the average of the yields
on the last business day of the week preceding
withdrawal on the same U.S. Treasury Notes
included in the Deposit Period Yield.
4) In the event that no U.S. Treasury Notes which
mature in the last three months of the Term
exist, Aetna reserves the right to use the U.S.
Treasury Notes that mature in a following
quarter.
d) Full and partial withdrawals as well as Transfers made
1) within six (6) months after the Participant's
date of death under the Amount Payable at Death
provision (See 3.22) will be the greater of:
(a) The aggregate MVA amount which is the sum
of all market value adjusted amounts
calculated due to a withdrawal of amounts
(for withdrawal or Transfer) from Terms
prior to the end of those Terms. The
aggregate MVA may be either positive or
negative; or
(b) The applicable portion of the Current
Value in the GA Account.
2) After the six month period following death, the
withdrawal or Transfer will be the aggregate MVA
amount (i.e., including all MVAs).
e) The greater of the aggregate MVA amount or the
applicable portion of the Current Value in the GA
Account is applied to amounts withdrawn from the GA
Account for payment of a premium under Annuity options
3 or 4.
3.09 Transfer(s):
Before an Annuity option is elected, all or any portion of
the Adjusted Current Value of the Individual Account(s) may
be transferred from any Fund, the Fixed Plus Account or the
GA Account:
a) To any other allowable Fund; or
b) To the Fixed Plus Account; or
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c) To any Guaranteed Term of the GA Account with a
different classification available in the current
Deposit Period.
Transfer requests can be submitted as a percentage or as a
dollar amount. Aetna may establish a minimum transfer
amount. Within a Guaranteed Term classification, the amount
transferred will be withdrawn from the oldest Deposit
Period, then from the next oldest, and so on until the
amount requested is satisfied.
Amounts applied to Guaranteed Terms of the GA Account may
not be transferred to the Funds, the Fixed Plus Account or
to another Guaranteed Term during the Deposit Period or 90
days after the close of the Deposit Period except for
Matured Term Value(s) during the calendar month following
the Term's Maturity Date.
Transfers from Guaranteed Terms of the GA Account are
subject to the MVA provisions of 3.08.
During each rolling twelve (12) month period, up to 20% of
the Current Value held in the Fixed Plus Account may be
transferred to one or more of the Fund(s), and/or the GA
Account's then-current Deposit Period. The 20% limit is
reduced by any partial withdrawals, loans or amounts used to
purchase an Annuity during the twelve (12) month period.
Aetna reserves the right to include amounts paid under ECO
and SWO provisions for purposes of applying this 20% limit.
This limit is waived when the balance in the Fixed Plus
Account is $1,000 or less on the date the Transfer request
is received in good order at Aetna's Home Office.
The Participant may make an unlimited number of Transfers
during the Accumulation Period.
3.10 Notice to the Participant:
Each year, Aetna will notify the Participant of:
a) The value of any amounts held in:
1) The Fixed Plus Account,
2) The GA Account,
3) The Fund(s) for the Separate Account;
b) The number of any Fund record units;
c) The Fund record unit value(s);
d) The Loan Account balance; and
e) The amount available for withdrawal.
This information will be as of a date no more than sixty
(60) days before the date of the notice.
3.11 Loans:
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During the Accumulation Period, loans are granted (1) as
permitted under applicable law; (2) subject to the terms and
conditions of the loan agreement; and, (3) in accordance
with the following provisions.
a) Amount available for loan: The amount available for
loan is limited to the Participant's Individual
Account(s) Current Value. Amounts available from some
investment options may be subject to limitations
specified in the loan agreement. To obtain the loan
amount requested, these limitations may require the
Participant to transfer funds. A Market Value
Adjustment may apply to amounts transferred.
The minimum loan amount is $1,000. The maximum loan amount
is the lesser of:
1) Fifty percent (50%) of the Individual Account(s)
Current Value, including any Loan Account,
reduced by the amount of any outstanding loan
balance on the Loan Effective Date; or
2) Fifty thousand dollars ($50,000) reduced by the
highest outstanding loan balance for the
preceding 12 months.
The amount of all outstanding loans cannot exceed
$50,000.
b) Loan Interest Rate: A Loan Interest Rate is set on the
first business day of each month. For each loan, the
initial Loan Interest Rate is the rate for the
calendar month in which the Loan Effective Date
occurs. The initial Loan Interest Rate is effective
for a period of not less than three months and not
more than one year. The period is specified in the
loan agreement. For each period, the Loan Interest
Rate is adjusted if the new rate is at least 0.5%
higher or lower than the previous rate. The
Participant will receive reasonable notification of
any change to the Loan Interest Rate. As applicable,
the Loan Interest Rate is:
1) Plans subject to ERISA: equal to the Monthly
Average Corporates for the calendar month
beginning two months before the Loan Interest
Rate is effective.
2) Plans not subject to ERISA: not greater than 8%
on an annual basis.
c) Earned interest: The Loan Account is credited with
interest at a rate which is not less than the Loan
Interest Rate, less 3%, on an annual basis. Interest
credited to the Loan Account will never be less than
3%.
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d) Loan repayment: Repayment is as set forth in the loan
agreement, or a Participant may repay a loan in full
at any time.
e) Surrenders while a loan is outstanding: If the
Participant requests a surrender from the Individual
Account(s) Current Value while a loan is outstanding,
one of the following occurs:
1) If the amount of the Individual Account(s)
Current Value available for distribution is
sufficient to repay (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, and (c) any Withdrawal
Fee due on the outstanding loan balance, that
amount, minus the Loan Account balance, is
deducted from the Individual Account(s) Current
Value and the loan is cancelled.
2) If the amount of the Individual Account(s)
Current Value available for distribution is not
sufficient to repay the (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, and (c) any Withdrawal
Fee due on the outstanding loan balance, the
surrender amount cannot exceed the Individual
Account(s) Current Value, including the Loan
Account, reduced by 125% of the outstanding loan
balance.
f) Electing an Annuity option while a loan is
outstanding: Before all or any portion of the
Individual Account(s) Current Value is applied to an
Annuity option, the Participant may repay any
outstanding loan balance, or the Individual Account(s)
Current Value is adjusted as described in (e).
g) Death of the Participant while a loan is outstanding:
If a death benefit claim is submitted for an
Individual Account(s) with an outstanding loan, the
Individual Account(s) Current Value, including the
amount of the Loan Account, is reduced by the amount
of the outstanding loan balance before the death
benefit amount is determined.
h) Loan default: If Aetna does not receive a loan
payment when due, the outstanding loan balance becomes
due. If applicable, a 5% default charge may apply to
the portion in excess of 20%, if any, of the amount
transferred from the Fixed Plus Account. The
defaulted loan is treated as follows:
1) If the amount of the Individual Account(s)
Current Value available for distribution is
sufficient to repay (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, and (c) any Withdrawal
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Fee due on the outstanding loan balance, that
amount, minus the Loan Account balance, is
deducted from the Individual Account(s) Current
Value and the loan is cancelled.
2) If the amount of the Individual Account(s)
Current Value available for distribution is not
sufficient to repay (a) the outstanding loan
balance, plus (b) any applicable Fixed Plus
Account default charge, and (c) any Withdrawal
Fee due on the outstanding loan balance, until
such time that the amount due can be
distributed, the Loan Account continues to earn
interest, and interest is charged on the
outstanding loan balance. At that time, the
amount described in (h)(1) is surrendered from
the Individual Account(s) Current Value and the
loan is cancelled.
i) For Plans subject to ERISA, see Section VI.
3.12 Manner and Timing of Distributions:
a) A distribution to a Participant may be made in a lump
sum, as one of the distribution options described in
Section IV, or as one of the Annuity options in
Section V.
b) Generally, the distribution of benefits accrued after
December 31, 1986, must begin by April 1 of the
calendar year following the calendar year in which the
Participant attains age 70 1/2. However, for a
Participant who attained age 70 1/2 before January 1,
1988, the distribution of such benefits must be made
or must begin not later than the April 1 of the
calendar year following the calendar year in which the
Participant retires.
The above does not apply if the Contract Holder is a
governmental entity or a church. For Participants of
such an employer, the distribution of benefits accrued
after December 31, 1986, must be made or must begin
not later than April 1 of the calender year following
the calendar year in which the Participant attains age
70 1/2 or retires, whichever occurs later.
c) The required distribution must be made over the life
of the Participant (or the joint lives of the
Participant and the Beneficiary) or over a period not
exceeding the life expectancy of the Participant (or
the joint life expectancies of the Participant and the
Beneficiary).
d) If the Participant does not request commencement of
benefits as described above, Aetna will not be
responsible for compliance with the Code Section
401(a)(9) minimum distribution requirements or for any
adverse tax or other consequences that may result.
e) For Plans subject to ERISA, see Section VI.
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3.13 Withdrawal:
a) The Participant may withdraw any portion or all of an
Individual Account(s) Current Value by submitting a
written request to Aetna. For Plans subject to ERISA,
see Section VI.
b) Except as described in Section 3.19, unless the
Participant specifies otherwise, partial withdrawals
are satisfied by withdrawing amounts on a pro rata
basis from each of the investment options in which the
Individual Account(s) is invested.
c) When amounts are withdrawn from the GA Account,
amounts in short Term and long Term classifications
are treated as separate investment options and amounts
are taken on a pro rata basis. Within a
classification, amounts will be withdrawn starting
with the term still in effect with the oldest Deposit
Period.
3.14 Withdrawal Value:
After deduction of the Maintenance Fee (if any), the amount
payable by Aetna upon the withdrawal of any portion of an
Individual Account(s) from the Fund(s) or the GA Account
shall be reduced by a Withdrawal Fee, if applicable. The
Withdrawal Fee will be in accordance with the Withdrawal Fee
table in Contract Schedule I.
No Withdrawal Fee is deducted from any portion of the
Current Value which is paid from the Fixed Plus Account.
For a partial or full withdrawal from any Individual
Account, Aetna must receive written direction from the
Participant on a form acceptable to Aetna. Aetna may defer
payment of the withdrawal value until appropriate
certification is received.
3.15 Withdrawal Restrictions:
Limitations apply to full and partial withdrawals of the
"restricted amount" from this Contract, as required by Code
Section 403(b)(11). The restricted amount is the sum of:
a) Net Contributions attributable to a Participant's
salary reduction contributions made on and after
January 1, 1989; plus
b) The net increase, if any, in the Current Value of the
Individual Account after December 31, 1988
attributable to investment gains and losses and
credited interest.
The restricted amount may be fully or partially withdrawn
only if one or more of the following conditions are met.
a) The Participant has reached age 59 1/2;
b) The Participant has separated from service;
c) The Participant has died;
d) The Participant has become disabled, within the
meaning of Code Section 72(m)(7); or
e) The withdrawal is otherwise allowed by federal law,
regulations or rulings.
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A full or partial withdrawal is also allowed if the
Participant incurs a "hardship" as that term is defined in
the Code or regulations under Code Section 403(b). However,
the amount available for hardship is limited to the lesser
of the amount necessary to satisfy the need or the Net
Contributions attributable to the Participant's salary
reduction contributions made on or after January 1, 1989.
The Participant must certify that one of these conditions
has been met before a withdrawal request will be considered
to be in good order. The Participant must notify Aetna in
writing when a lump sum payment is to be made or Annuity
payments are to commence.
If, pursuant to Revenue Ruling 90-24, Aetna agrees to accept
under this Contract amounts transferred from a Code Section
403(b)(7) custodial account, such amounts will be subject to
the withdrawal restrictions set forth in Code Section
403(b)(7)(A)(ii).
3.16 Withdrawals from the GA Account:
Full or partial withdrawals may be requested at any time
from the GA Account. However, amounts withdrawn prior to the
Maturity Date of a Term may be subject to a Market Value
Adjustment (See 3.08).
Full and partial withdrawals are satisfied by withdrawing
amounts from each of the investment options in which the
Individual Account(s) is invested (the Funds, the Fixed Plus
Account, the GA Account short Term classification and the GA
Account long Term classification) on a pro rata basis.
However, the Participant may specify a particular order in
which investment options will be liquidated in order to
satisfy a partial surrender request.
3.17 Withdrawal Fee Applicable to Funds and GA Account:
A Withdrawal Fee may apply to withdrawals from the GA
Account and/or Funds. The fee will vary according to the
length of time elapsed from the effective date of an
Individual Account to the date when the withdrawal request
is received. For each withdrawal, the Withdrawal Fee will be
determined as shown on Contract Schedule I.
During each rolling 12-month period, up to 20% of the
Current Value in the Fixed Plus Account may be withdrawn as
a partial surrender. This 20% limit is reduced by any
amount(s) transferred, taken as a loan or used to purchase
an Annuity during the 12 month period. The 20% limit
applicable to partial surrenders from the Fixed Plus Account
will be waived when the partial surrender is due to one of
the conditions set forth in Contract Schedule I. The waiver
will apply provided the partial surrender is taken pro-rata
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from the Fixed Plus Account, the GA Account, and the
Fund(s). Aetna reserves the right to include amounts paid
under the ECO and SWO provisions for purposes of applying
the 20% limit. However, the SWO provision is not available
if the Participant requested a Fixed Plus Account Transfer
or surrender within the current 12 month period.
3.18 Payment of Fixed Plus Account Full Withdrawal:
No Withdrawal Fee is deducted from any portion of the
Current Value which is paid from the Fixed Plus Account.
When Aetna receives a full withdrawal request, no additional
partial withdrawals or Transfers from the Fixed Plus Account
are permitted during the payout period. If a full withdrawal
is requested, Aetna will pay any Current Value, including
accrued interest, from the Fixed Plus Account in five
payments as follows:
a) One-fifth of the Current Value on the day the request is
received in good order at Aetna's Home Office, reduced by
any amount from the Fixed Plus Account that was
transferred, withdrawn or used for a loan or to purchase
Annuity benefits during the prior twelve months;
b) One-fourth of the then remaining Current Value twelve
months later;
c) One-third of the then remaining Current Value twelve
months later;
d) One-half of the then remaining Current Value twelve
months later; and
e) The balance of the then Current Value twelve months
later.
The Fixed Plus Account full withdrawal payment provision may
also be waived under certain conditions (See Contract
Schedule I).
Any full withdrawal from the Fixed Plus Account may be
cancelled at any time before the end of the payment period.
For Plans subject to ERISA, see Section VI.
3.19 Reinstatement:
All or a portion of the proceeds of a full withdrawal of
this Contract may be reinvested within 30 days after the
withdrawal if allowed by law. Any Maintenance Fee and
Withdrawal Fee charged at the time of the withdrawal on the
amount being reinvested will be included in the
reinstatement. Any Market Value Adjustment deducted from GA
Account withdrawals will not be included in the
reinstatement. Amounts will be reinstated among the Fixed
Plus Account, the GA Account, and/or the Fund(s) for the
Separate Account in the same proportion as they were at the
time of withdrawal. Any amounts reinstated to the GA Account
will be credited to Terms available during the then-current
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Deposit Period. The number of record units reinstated will
be based on the record unit value(s) next computed after
receipt in good order at Aetna's Home Office of the
reinstatement request and the amount to be reinvested.
Any Maintenance Fee which falls due after the withdrawal and
before the reinstatement will be deducted from the amount
reinstated.
Reinstatement is permitted only once for an Individual
Account.
3.20 Payment of Minimum Current Value:
If the sum of the Individual Account(s) Current Value(s) is
less than $3,500, and no Contributions have been received
for three (3) years, Aetna may close the account(s) and pay
the Current Value(s) to the Participant in one lump sum.
3.21 Amount Payable at Death (Before Annuity Payments Start):
Aetna will pay the Individual Account(s) Current Value to
the Beneficiary when:
a) The Participant dies before Annuity payments start; and
b) A certified copy of the death certificate is received.
Amounts in the GA Account will be payable as described in
Section 3.08(d).
IV. NON-ANNUITY DISTRIBUTION OPTIONS
______________________________________________________________________________
4.01 Distribution Options:
Subject to Section VI, the Participant or a surviving spouse
may elect one of the two following distribution options. A
surviving spouse is eligible to elect one of the options
provided the spouse is the designated Beneficiary and the
Participant had died before electing an Annuity option and
before the date for required minimum distributions.
4.02 Estate Conservation Option:
a) With the Estate Conservation Option (ECO) a portion of
the Individual Account(s) Current Value is automatically
surrendered and distributed each year without incurring a
Withdrawal Fee. Each payment will be withdrawn from the
Individual Account(s) in the same proportion as assets
are held in the Funds, the GA Account, and the Fixed Plus
Account on the date the payment is made.
b) Payments under ECO will comply with the incidental death
benefit test set forth in Code Section 401(a)(9).
c) Distribution Amount: Each year that ECO is in effect,
Aetna will calculate and distribute an amount equal to
the minimum distribution required under the Code. The
annual distribution will be determined by dividing the
Individual Account(s) Current Value as of December 31 of
the year prior to the payment year, by a single or joint
life expectancy factor. If joint life expectancy is
elected, the Beneficiary under ECO must be the same as
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the Beneficiary of any death benefits under the
Individual Account(s).
An exception will be made if Aetna maintains a separate
record of a Participant's Individual Account(s) value as
of December 31, 1986. In this instance, payments made in
or after the year in which the Participant attains age 70
1/2, but before the year in which the Participant attains
age 75, will be calculated only on amounts contributed
after December 31, 1986 and any earnings after that date.
If age 70 1/2 was attained prior to 1988, the Participant
must be retired in order to qualify for this exception.
The method under this rule is elected by the Participant
and will not apply if the Participant has received any
distribution from his or her Individual Account(s), other
than distribution amounts required under Code minimum
distribution rules.
Aetna will maintain separate records if the Participant
has not requested any withdrawals from the Participant's
Individual Account(s) since December 31, 1986.
d) Life Expectancy Factor: For the Participant, the life
expectancy factor is either single life or joint life
expectancy as elected by the Participant, based on tables
in Code Section 401(a)(9) or related regulations. For a
spouse Beneficiary, only a single life expectancy is
available. Life expectancy factors will be recalculated
each year, unless prohibited by the Code or regulations.
The joint life expectancy factor will be based on the
joint life expectancy of the Participant and his or her
Beneficiary provided such individual is the Beneficiary
of any death benefits under the Contract while ECO is in
effect. Any change in the Beneficiary designation under
this Contract by the Participant, must be immediately
communicated to Aetna so that subsequent distributions
can be calculated as required by IRS regulations.
If joint life expectancy is elected and the Participant
or spouse dies, payments will be based on the survivor's
life expectancy. If the Beneficiary is not the spouse and
the Beneficiary dies first, the joint life expectancy
continues to be used to determine payments.
If a single life expectancy is elected, at the death of
the Participant (or the spouse who is the designated
Beneficiary electing ECO after the Participant's death),
the entire value must be distributed no later than the
December 31 of the year following the year of the
Participant's (or spouse's) death. If a joint life
expectancy is elected, and both the Participant and
spouse have died, any remaining Current Value must be
distributed no later than the December 31 of the year
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following the year of the second death. If a joint life
expectancy is elected and both the Participant and
non-spouse Beneficiary have died, any remaining Current
Value will be distributed to a successor Beneficiary, if
one has been named, then to the estate of the last to
die.
These calculations may be changed as necessary to comply
with Code minimum distribution rules. Any mode of payment
elected upon the Participant's death must provide
payments to be made at least as rapidly as those made
prior to the Participant's death.
e) Minimum Current Value: At its discretion, Aetna may
require a minimum initial Current Value for election of
this option. If after election of this option the Current
Value is insufficient to make a scheduled ECO payment,
Aetna will distribute the entire balance of the
Individual Account(s).
f) Distribution Date: The Participant shall specify an
annual distribution date. The earliest date is the first
day of the calendar year in which he or she attains age
70 1/2. For a spouse Beneficiary electing ECO after the
Participant's death, the earliest date is the date of the
Participant's death. The first distribution date may be
the 15th of any month, or such other date as Aetna may
designate or allow. Subsequent distributions will be made
on the anniversary of that date. At its option, Aetna may
allow payments to be made more frequently than annually.
g) Election and Revocation: The Participant may elect ECO by
submitting a completed and signed election form to
Aetna's Home Office. Once ECO is elected, the Participant
may revoke it by submitting a written request to Aetna at
its Home Office. Any revocation will apply only to
amounts not yet paid. ECO may be elected only once per
Individual Account. For Plans subject to ERISA, see
Section VI.
4.03 Systematic Withdrawal Option:
a) With the Systematic Withdrawal Option (SWO) a portion of
the Individual Account(s) Current Value is automatically
distributed each year without incurring a Withdrawal Fee.
A SWO payment will be calculated on the Individual
Account(s) Current Value. Each payment will be withdrawn
from the Individual Account(s) in the same proportion as
assets are held in the Funds, the GA Account, and the
Fixed Plus Account on the date the payment is made. SWO
payments may not be elected if a loan is outstanding
under an Individual Account.
b) Payments under SWO will comply with the incidental death
benefit test set forth in Code Section 401(a)(9).
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c) Distribution Amounts: The Participant may elect one of
the three payment methods described below. These
calculations may be changed as necessary to comply with
the Code minimum distribution rules. If joint life
expectancy is elected, the Beneficiary under SWO must be
the same as the Beneficiary of any death benefits.
1) Specified Payment: Payments of a designated annual
dollar amount. The annual amount may not be greater
than the percentage of the Current Value at time of
election as shown on Contract Schedule I. This amount
will remain constant unless a higher amount is
required under Code minimum distribution rules. Each
year that the specified payment is in effect, Aetna
will calculate the minimum required distribution by
dividing the Individual Account(s) Current Value as of
December 31 of the year prior to the payment year by a
life expectancy factor, and distribute this amount if
it is larger than the specified payment.
2) Specified Period: Payments are made over a period of
time. The number of years selected may not be less
than the number of years shown on Contract Schedule I,
unless otherwise required by Code minimum distribution
rules. The maximum specified period will be limited by
the life expectancy factor. The amount paid each year
is calculated by dividing the Individual Account(s)
Current Value as of December 31 of the prior year by
the number of payment years remaining.
3) Specified Percentage: Payments made as a specified
percentage of the Individual Account. The specified
percentage chosen cannot be greater than as shown on
Contract Schedule I. The Participant may change the
specified percentage elected every six months. Each
annual distribution is determined by multiplying the
Individual Account Current Value by the percentage
chosen. The value to be used in this calculation is
the value on the December 31st prior to the year for
which the payment is being made. For payments made
more often than annually, the annual payment result
(calculated above) is divided by the number of
payments due each year. Payments will be made each
year until the year the Participant attains age 70
1/2.
d) Life Expectancy Factor: For the Participant, the life
expectancy factor for the initial distribution year is
either single life or joint life expectancy as elected by
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the Participant, based on tables in Section 401(a)(9) of
the Code or related regulations. For a spouse
Beneficiary, only a single life expectancy is available.
With each subsequent year, the life expectancy factor
will be the life expectancy factor for the initial
distribution year, reduced by one. These calculations may
be changed as necessary to comply with the Code minimum
distribution rules. If the joint life expectancy is
selected and the Participant or the Beneficiary dies on
or after the required beginning date for minimum
distributions to the Participant, the joint life
expectancy factor will continue to be reduced by one for
each distribution year. Payments will continue unless the
survivor elects an alternate payment mode. Any payment
mode elected by the Beneficiary must provide payments to
be made at least as rapidly as those made prior to the
Participant's death.
If the Participant dies before the required beginning
date for minimum distributions, SWO payments will cease
and the Beneficiary may claim the death benefit in
accordance with the terms of this Contract. If the
Beneficiary is not the Participant's spouse, the entire
death benefit must be either applied to an Annuity option
within one (1) year of the Participant's death, or be
paid within five (5) years of the Participant's death. If
the Beneficiary is the Participant's spouse, the
distribution is not required to begin earlier than when
the Participant would have attained age 70 1/2.
If joint life expectancy is elected and the Beneficiary
dies before the required beginning date for minimum
distributions to the Participant, payments to the
Participant will continue to be based on joint life
expectancy reduced by one for each distribution year.
e) Minimum Current Value: At its discretion, Aetna may
require a minimum initial Current Value for election of
this option. If after election of this option, the
Current Value is insufficient to make a scheduled SWO
payment, Aetna will distribute the entire balance of the
Individual Account.
f) Distribution Date: The Participant or spouse Beneficiary,
shall specify the initial distribution date. The earliest
date is the first day of the calendar year in which the
Participant attains age 59 1/2, or age 55, if separated
from service with the Contract Holder at or after age 55.
SWO payments will be made monthly, quarterly,
semi-annually or annually on the 15th of any month, or
such other date as Aetna may designate or allow. If
payments are made more frequently than annually, the
annual amount payable each year is divided by the number
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of payments due per year. At its discretion Aetna may
require a minimum initial payment amount.
g) Election and Revocation: The Participant may elect SWO by
submitting a completed and signed election form to
Aetna's Home Office. Once SWO is elected, the Participant
may revoke it by submitting a written request to Aetna's
Home Office. Any revocation will apply only to amounts
not yet paid. Generally, SWO may be elected only once,
however, if SWO is elected and then revoked before the
date distributions were required to begin under Code
Section 401(a)(9), SWO may be elected on behalf of a
spouse Beneficiary after the death of the Participant.
For Plans subject to ERISA, see Section VI.
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V. ANNUITY PROVISIONS
______________________________________________________________________________
5.01 Choices:
a) The Participant may elect an Annuity option by telling
Aetna to pay all or any portion of the Individual
Account(s) Current Value (minus any applicable premium
tax if not previously deducted) as a premium for an
Annuity under option 2, 3, or 4 (See 5.08). Any election
of an Annuity option must comply with the minimum
distribution requirements of Code Section 401(a)(9),
including the incidental death benefit rule, and the
regulations thereunder. This restriction does not apply
if option 4 is chosen and the second Annuitant is the
spouse of the Participant. Payments may be made only to
the Participant, or if the Participant has died, to the
Beneficiary. For Plans subject to ERISA, see Section VI.
b) Generally, the first Annuity payment must be made by
April 1 of the calendar year following the year in which
the Participant turns age 70 1/2 or such later date as
may be allowed under federal law or regulations (see
3.12). For distributions taken in a lump sum, see
Withdrawal Value (3.14).
When an Annuity option is chosen the Participant must
designate whether the Annuity will be fixed or variable
and whether the underlying investment will be:
1) The General Account;
2) One or more of the available Fund(s); or
3) A combination of (1) and (2).
If a Fixed Annuity is chosen, the Annuity purchase rate
for the option chosen reflects at least the minimum
guaranteed interest rate (See Contract Schedule II), but
may reflect a higher interest rate.
If a Variable Annuity is chosen, the initial Annuity
payment for the option chosen reflects the assumed annual
net return rate elected (See Contract Schedule II).
c) Payments will be made on a monthly basis unless the
Participant requests otherwise.
d) Once elected, an Annuity option may not be revoked,
except for option 2 when elected on a variable basis.
5.02 Terms of Annuity Options:
a) No choice of any Annuity option may be made if the first
payment would be less than $20 or if the total payments
in a year would be less than $100.
b) For purposes of calculating the guaranteed first payment
of a Variable Annuity or the payments for a Fixed
Annuity, the Annuitant's and second Annuitant's adjusted
age will be used. The Annuitant's and second Annuitant's
adjusted age is his or her age as of the birthday closest
to the Annuity commencement date reduced by one year for
Annuity commencement dates occurring during the period of
time from July 1, 1992 through December 31, 1999. The
Annuitant's and second Annuitant's age will be reduced by
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two years for Annuity commencement dates occurring during
the period of time from January 1, 2000 through December
31, 2009. The Annuitant's and second Annuitant's age will
be reduced by one additional year for Annuity
commencement dates occurring in each succeeding decade.
The Annuity rates for options 3 and 4 are based on
mortality from 1983 Table a.
c) Assumed annual net return rate is the interest rate used
to determine the amount of the first Annuity payment
under a Variable Annuity. 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.
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5.03 Annuity Payments to Participant:
In no event may any payments to the Participant under any
Annuity option extend beyond:
a) The life of the Participant;
b) The lives of the Participant and the Beneficiary;
c) A period certain greater than the Participant's life
expectancy according to regulations under Code Section
401(a)(9), determined as of the date payments are to
commence; or
d) A period certain greater than the life expectancies of
the Participant and the Beneficiary according to
regulations under Code Section 401(a)(9) determined as
of the date payments are to begin.
5.04 Death Provision:
When an Annuitant dies under options 3 and 4, the present
value of any remaining guaranteed payments will be paid in
one sum to the Beneficiary or upon election of the
Beneficiary, any remaining payments will continue to the
Beneficiary. If a Beneficiary dies while receiving Annuity
payments, the present value of any remaining payments will
be paid in one lump sum to the Beneficiary's estate. The
interest rate used to determine the present value for a lump
sum payment will be the rate used to determine the first
Annuity payment.
In no event may any payments to the Beneficiary under an
Annuity option extend beyond:
a) The life of the Beneficiary determined as of the date
payments are to commence; or
b) Any certain period greater than the Beneficiary's life
expectancy as determined by regulations under Code
Section 401(a)(9) as of the date payments are to
begin.
However, if a Beneficiary dies while under option 1 or while
receiving Annuity payments, the present value of any
remaining payments will be paid in one lump sum to the
estate of the Beneficiary. The interest rate used to
determine the first payment will be used to calculate the
present value.
5.05 Fund Annuity Units:
The number of Fund(s) Annuity units is based on the amount
of the first Variable Annuity payment which is equal to:
a) The portion of the Current Value including any
applicable MVA (see 3.08) or premium tax, applied to
pay a Variable Annuity; divided by
b) 1,000; multiplied by
c) The payment rate for the option chosen.
Such amount, or portion, of the variable payment will be
divided by the appropriate Fund(s) Annuity unit value (See
5.06) on the tenth Valuation Period before the due date of
the first payment to determine the number of each Fund
Annuity units. The number of each Fund Annuity units remains
<PAGE> 43 43
<PAGE>
fixed. Each future payment is equal to the sum of the
products of each Fund Annuity unit value multiplied by the
appropriate number of units. The Fund Annuity unit value on
the tenth Valuation Period prior to the due date of the
payment is used.
5.06 Fund Annuity Unit Value:
For any Valuation Period, a Fund(s) Annuity unit value is
equal to:
a) The value for the previous Period; multiplied by
b) The Annuity net return factor(s) (See 5.07) for the
Period; multiplied by
c) A factor to reflect the assumed annual net return rate
(See Contract Schedule II).
The dollar value of a Fund Annuity unit and Annuity payments
may go up or down due to investment gain or loss.
Payments shall not be changed due to changes in the
mortality or expense results or administrative charges.
5.07 Fund Annuity Net Return Factor:
The Annuity net return factor(s) is used to compute all
Separate Account Annuity payments for any Fund.
The Annuity net return factor(s) for each Fund is equal to
1.0000000 plus the net return Rate.
The net return rate is equal to:
a) The value of the shares of the Fund held by the
Separate Account at the end of a Valuation Period;
minus
b) The value of the shares of the Fund held by the
Separate Account at the start of the Valuation Period;
plus or minus
c) Taxes (or reserves for taxes) on the Separate Account
(if any);
d) Divided by the total value of the Fund(s) record units
and Fund(s) Annuity units of the Separate Account at
the start of the Valuation Period; minus
e) Minus a daily charge for Annuity mortality and expense
risks, which may include profit, and a daily
administrative charge (at the annual rate as shown on
Contract Schedule II).
A net return rate may be more or less than 0%.
The value of a share of the Fund is equal to the net assets
of the Fund divided by the number of shares outstanding.
5.08 Annuity Options:
The Participant may direct Aetna to make payments according
to one of the following options, subject to Section VI.
Option 1 -- Payments of Interest on Sum Left with Aetna --
This option may be used only by the Beneficiary when the
Participant dies before Aetna has started paying an Annuity.
A portion or all of the sum paid upon death may be held
<PAGE> 44 44
<PAGE>
under this option and will be held in the General Account of
Aetna at interest. The Beneficiary, may later tell Aetna to:
a) Pay a portion or all of the sum held by Aetna; or
b) Apply a portion or all of the sum held by Aetna to any
Annuity option below.
If the Beneficiary is the Participant's surviving spouse,
the lump-sum payment may be deferred to a date not later
than when the Participant would have attained age 70 1/2.
If the Beneficiary is not a spouse, the Beneficiary must
tell Aetna to pay the full sum within 5 years after the
death of the Participant.
Option 2 -- Payments for a Stated Period of Time -- An
Annuity will be paid for the number of years chosen (See
Contract Schedule II).
If payments for this option are made under a Variable
Annuity, the present value of any remaining payments may be
withdrawn at any time. If a withdrawal is requested prior to
the minimum number of years specified on Contract Schedule
II, it will be subject to any Withdrawal Fee, if applicable
(See Contract Schedule I).
Option 3 -- Life Income -- An Annuity will be paid for the
life of the Annuitant. Aetna may also guarantee payments for
60, 120, 180, or 240 months if so directed by the
Participant.
Option 4 -- Life Income Based Upon the Lives of Two
Annuitants -- An Annuity will be paid during the lives of
the Annuitant and a second Annuitant. Payments will continue
until both Annuitants have died. When this option is chosen,
a choice of the following must be made:
a) 100% of the payment to continue after the first death;
b) 66 2/3% of the payment to continue after the first
death;
c) 50% of the payment to continue after the first death;
d) Payments for a minimum of 120 months, with 100% of the
payment to continue after the first death; or
e) 100% of the payment to continue at the death of the
second Annuitant and 50% of the payment to continue at
the death of the Annuitant.
Other Options -- Aetna may make other options available as
allowed by the laws of the state in which this Contract is
delivered.
VI. QUALIFIED JOINT AND SURVIVOR AND PRERETIREMENT SURVIVOR ANNUITIES
______________________________________________________________________________
<PAGE> 45 45
<PAGE>
6.01 ERISA Requirements:
Notwithstanding any other provision of the Plan or this
Contract, if the Plan is subject to ERISA:
a) The Individual Account(s) Adjusted Current Value
available for distribution shall be payable to a
married Participant in the form of a "Qualified Joint
and Survivor Annuity," in accordance with Section 205
of ERISA, if the Participant does not die before the
commencement of retirement benefit payments. A
Qualified Joint and Survivor Annuity is an Annuity
payable for the joint lives of the Participant and
spouse with 50% of the payment to continue to the
surviving spouse after the Participant's death.
b) The Individual Account(s) Adjusted Current Value shall
be payable to the surviving spouse of a married
Participant in the form of a "Qualified Preretirement
Survivor Annuity," in accordance with Section 205 of
ERISA, if the Participant dies before the commencement
of retirement benefit payments. A Qualified
Preretirement Survivor Annuity is an Annuity payable
for the life of the surviving spouse which can be
purchased by 50% of the Participant's Individual
Account(s) Adjusted Current Value.
6.02 Waiver and Spousal Consent:
a) The Participant may waive the Qualified Joint and
Survivor Annuity and/or the Qualified Preretirement
Survivor Annuity, in accordance with Section 205 of
ERISA, and have benefits paid in some other form
permitted by the Contract subject, however, to written
spousal consent, made in accordance with Section 205
of ERISA.
b) Pursuant to Section 205 of ERISA, for married
Participants, the spouse must give written consent to
the use of the Individual Account(s) Current Value
available for distribution as security for a loan
under the Contract.
<PAGE> 46 46
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OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Years Guaranteed Monthly Quarterly Semi-Annual
Rate Payment Payment AnnualPayment
Payment
5 3.00% $17.91 $53.59 $106.78$211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
<PAGE> 48 48
<PAGE>
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Years Monthly Quarterly Semi- Annual
Payment Payment Annual Payment
Payment
5 $18.12 $54.19 $107.92 $213.99
6 15.35 45.92 91.44 181.32
7 13.38 40.01 79.69 158.01
8 11.90 35.59 70.88 140.56
9 10.75 32.16 64.05 127.00
10 9.83 29.42 58.59 116.18
11 9.09 27.18 54.13 107.34
12 8.46 25.32 50.42 99.98
13 7.94 23.75 47.29 93.78
14 7.49 22.40 44.62 88.47
15 7.10 21.24 42.31 83.89
16 6.76 20.23 40.29 79.89
17 6.47 19.34 38.51 76.37
18 6.20 18.55 36.94 73.25
19 5.97 17.85 35.54 70.47
20 5.75 17.22 34.28 67.98
21 5.56 16.65 33.15 65.74
22 5.39 16.13 32.13 63.70
23 5.24 15.66 31.19 61.85
24 5.09 15.24 30.34 60.17
25 4.96 14.85 29.56 58.62
26 4.84 14.49 28.85 57.20
27 4.73 14.15 28.19 55.90
28 4.63 13.85 27.58 54.69
29 4.53 13.57 27.02 53.57
30 4.45 13.30 26.49 52.53
<PAGE> 49 49
<PAGE>
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate Rate of 5.0%
Years Monthly Quarterly Semi- Annual
Payment Payment Annual Payment
Payment
5 $18.74 $56.00 $111.33 $219.98
6 15.99 47.77 94.96 187.64
7 14.02 41.90 83.30 164.59
8 12.56 37.52 74.58 147.35
9 11.42 34.11 67.81 133.99
10 10.51 31.40 62.42 123.34
11 9.77 29.19 58.03 114.66
12 9.16 27.36 54.38 107.45
13 8.64 25.81 51.31 101.39
14 8.20 24.50 48.69 96.21
15 7.82 23.36 46.44 91.75
16 7.49 22.37 44.47 87.88
17 7.20 21.51 42.75 84.48
18 6.94 20.74 41.23 81.47
19 6.71 20.06 39.88 78.80
20 6.51 19.46 38.68 76.42
21 6.33 18.91 37.59 74.28
22 6.17 18.42 36.62 72.35
23 6.02 17.98 35.73 70.61
24 5.88 17.57 34.93 69.02
25 5.76 17.20 34.20 67.57
26 5.65 16.87 33.53 66.25
27 5.54 16.56 32.92 65.04
28 5.45 16.28 32.35 63.93
29 5.36 16.01 31.83 62.90
30 5.28 15.77 31.35 61.95
<PAGE> 50 50
<PAGE>
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
Adjusted None 60 120 180240
Age of
Annuitant
50 $4.05 $4.05 $4.03 $3.99$3.93
51 4.12 4.11 4.09 4.05 3.99
52 4.19 4.19 4.16 4.11 4.04
53 4.27 4.26 4.23 4.18 4.10
54 4.35 4.34 4.31 4.25 4.16
55 4.44 4.42 4.39 4.32 4.22
56 4.53 4.51 4.47 4.40 4.29
57 4.62 4.61 4.56 4.48 4.35
58 4.72 4.71 4.65 4.56 4.42
59 4.83 4.81 4.75 4.64 4.49
60 4.95 4.93 4.86 4.73 4.55
61 5.07 5.05 5.97 4.83 4.62
62 5.20 5.17 5.08 4.92 4.69
63 5.34 5.31 5.20 5.02 4.76
64 5.49 5.45 5.33 5.12 4.83
65 5.65 5.61 5.47 5.22 4.89
66 5.82 5.77 5.61 5.33 4.96
67 6.01 5.94 5.75 5.44 5.02
68 6.20 6.13 5.91 5.54 5.08
69 6.41 6.33 6.07 5.65 5.14
70 6.64 6.54 6.23 5.76 5.19
71 6.88 6.76 6.41 5.86 5.24
72 7.14 7.00 6.59 5.97 5.28
73 7.43 7.26 6.77 6.06 5.32
74 7.73 7.53 6.96 6.16 5.35
75 8.06 7.82 7.14 6.25 5.38
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 51 51
<PAGE>
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Months
Adjusted None 60 120 180240
Age of
Annuitant
50 $4.34 $4.34 $4.31 $4.27$4.22
51 4.41 4.40 4.38 4.33 4.27
52 4.48 4.47 4.45 4.40 4.32
53 4.56 4.55 4.52 4.46 4.38
54 4.64 4.63 4.59 4.53 4.44
55 4.72 4.71 4.67 4.60 4.50
56 4.81 4.80 4.75 4.67 4.56
57 4.91 4.89 4.84 4.75 4.62
58 5.01 4.99 4.93 4.83 4.69
59 5.12 5.10 5.03 4.92 4.75
60 5.23 5.21 5.13 5.00 4.82
61 5.36 5.33 5.24 5.09 4.88
62 5.49 5.45 5.35 5.19 4.95
63 5.63 5.59 5.47 5.28 5.02
64 5.78 5.73 5.60 5.38 5.08
65 5.94 5.89 5.73 5.48 5.15
66 6.11 6.05 5.87 5.58 5.21
67 6.29 6.22 6.02 5.69 5.27
68 6.49 6.41 6.17 5.79 5.33
69 6.70 6.60 6.33 5.90 5.38
70 6.92 6.81 6.49 6.00 5.43
71 7.17 7.04 6.66 6.10 5.48
72 7.43 7.27 6.84 6.20 5.52
73 7.71 7.53 7.02 6.30 5.55
74 8.02 7.80 7.20 6.39 5.59
75 8.35 8.08 7.38 6.48 5.62
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 52 52
<PAGE>
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Payments Guaranteed for a Stated Period of Months
Adjusted None 60 120 180240
Age of
Annuitant
50 $5.26 $5.25 $5.22 $5.17$5.11
51 5.33 5.32 5.28 5.23 5.15
52 5.40 5.38 5.34 5.29 5.20
53 5.47 5.45 5.41 5.35 5.26
54 5.54 5.53 5.48 5.41 5.31
55 5.63 5.61 5.56 5.47 5.36
56 5.71 5.69 5.63 5.54 5.42
57 5.80 5.78 5.72 5.61 5.47
58 5.90 5.88 5.81 5.69 5.53
59 6.01 5.98 5.90 5.77 5.59
60 6.12 6.09 6.00 5.85 5.65
61 6.24 6.21 6.10 6.93 5.71
62 6.37 6.33 6.21 6.02 5.77
63 6.51 6.46 6.33 6.11 5.83
64 6.66 6.60 6.45 6.20 5.89
65 6.82 6.75 6.57 6.30 5.95
66 6.99 6.91 6.71 6.39 6.01
67 7.17 7.08 6.85 6.49 6.06
68 7.36 7.27 6.99 6.59 6.12
69 7.57 7.46 7.15 6.69 6.17
70 7.80 7.67 7.30 6.78 6.21
71 8.05 7.89 7.47 6.88 6.25
72 8.31 8.13 7.64 6.97 6.29
73 8.59 8.38 7.81 7.06 6.33
74 8.90 8.64 7.99 7.15 6.36
75 9.23 8.93 8.16 7.23 6.38
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 53 53
<PAGE>
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d 4e
55 50 $3.69 $4.05 $4.27 $3.69 $4.03
55 55 3.88 4.25 4.47 3.87 4.14
55 60 4.06 4.47 4.71 4.06 4.20
60 55 3.99 4.44 4.71 3.98 4.42
60 60 4.24 4.71 4.99 4.23 4.57
60 65 4.49 5.01 5.32 4.48 4.64
65 60 4.38 4.97 5.32 4.38 4.93
65 65 4.72 5.33 5.70 4.71 5.14
65 70 5.07 5.75 6.17 5.05 5.26
70 65 4.93 5.68 6.15 4.91 5.66
70 70 5.40 6.21 6.70 5.36 5.96
70 75 5.89 6.82 7.40 5.81 6.12
75 70 5.69 6.68 7.32 5.62 6.67
75 75 6.37 7.45 8.15 6.23 7.12
75 80 7.07 8.34 9.16 6.78 7.36
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 54 54
<PAGE>
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d 4e
55 50 $3.97 $4.35 $4.56 $3.97 $4.31
55 55 4.16 4.54 4.76 4.15 4.42
55 60 4.27 4.73 5.00 4.26 4.48
60 55 4.27 4.73 5.00 4.26 4.70
60 60 4.51 4.99 5.27 4.50 4.84
60 65 4.66 5.25 5.61 4.65 4.93
65 60 4.66 5.25 5.61 4.65 5.22
65 65 4.99 5.61 5.99 4.98 5.42
65 70 5.19 5.97 6.44 5.17 5.54
70 65 5.19 5.97 6.44 5.17 5.93
70 70 5.67 6.49 6.99 5.62 6.23
70 75 5.95 6.96 7.61 5.87 6.40
75 70 5.95 6.96 7.61 5.87 6.95
75 75 6.64 7.73 8.43 6.48 7.40
75 80 7.04 8.39 9.29 6.79 7.64
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 55 55
<PAGE>
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d 4e
55 50 $4.88 $5.26 $5.48 $4.88 $5.23
55 55 5.04 5.44 5.66 5.04 5.32
55 60 5.15 5.63 5.91 5.14 5.38
60 55 5.15 5.63 5.91 5.14 5.59
60 60 5.37 5.87 6.16 5.37 5.72
60 65 5.52 6.14 6.51 5.51 5.80
65 60 5.52 6.14 6.51 5.51 6.10
65 65 5.83 6.49 6.87 5.82 6.29
65 70 6.04 6.84 7.34 6.00 6.41
70 65 6.04 6.84 7.34 6.00 6.81
70 70 6.49 7.35 7.87 6.44 7.08
70 75 6.77 7.84 8.51 6.68 7.25
75 70 6.77 7.84 8.51 6.68 7.81
75 75 7.45 8.60 9.33 7.27 8.25
75 80 7.86 9.28 10.20 7.57 8.49
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 56 56
<PAGE>
<PAGE> 57 57
<PAGE>
Aetna Life Insurance and Annuity Company
TRANSFER CREDIT ENDORSEMENT
The Contract is hereby endorsed as follows:
Add the following statement to the end of Section 3.02 entitled Net
Contribution(s):
Transferred Assets are the value of prior contributions into an existing Plan
which are deposited into this Contract as of the date the amount is received
in good order by Aetna. Transferred Assets, less any premium tax, will be
allocated to Participant Individual Accounts in amounts authorized by the
Participant.
Where Aetna is the exclusive 403(b) Plan provider, Aetna will apply a Transfer
Credit equal to [2%] of Transferred Assets deposited into the Contract and
allocated to Individual Accounts. The Transfer Credit amount is calculated as
of the one year anniversary of a Participant's first Net Contribution to the
Contract. The calculation for any Transfer Credit amount will be based on the
total amount of Transferred Assets remaining in Individual Accounts as of the
calculation date.
The Transfer Credit amount will be allocated to the Fixed Plus Account. The
amount will include the Transfer Credit plus any interest that would have
accrued had the Transfer Credit actually been deposited into the Fixed Plus
Account on the first business day of the calendar month following it's
calculation.
Transfer Credit will not be applied to assets transferred into the Contract
from existing Aetna Contracts. Only Net Contributions not previously held by
Aetna Life Insurance and Annuity Company are eligible for Transfer Credit.
Endorsed and made a part of the Contract on the effective date of the
Contract.
<PAGE> 58 58
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<PAGE> 59 59
<PAGE>
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<PAGE> 60 60
<PAGE>
[Aetna Logo]
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
Hartford, Connecticut 06156
(800) 525-4225
Group Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CONTRACT CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT
FORMULA DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
<PAGE> 61 61
<PAGE>
Exhibit 99-B.4.4
<PAGE> 1
<PAGE>
[Aetna Logo] Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Ave
Hartford, CT 06156
(800) 525-4225
Aetna Life Insurance and Annuity Company (Aetna) agrees to pay benefits
according to the terms and conditions set forth in this Certificate.
______________________________________________________________________________
Certificate of Group Annuity Coverage
Aetna certifies that an account is established for you under the Group Annuity
ontract and Certificate numbers shown below.
This certificate describes Group Annuity Contract Provisions. It replaces any
and all prior certificates or endorsements issued to you under the stated
Contract and Certificate numbers. This Certificate is for information only
and is not a part of the Contract.
______________________________________________________________________________
Right to Cancel
The Certificate Holder may cancel this Certificate within 10 days of receiving
it by returning this Certificate along with a written notice to Aetna at the
above address or to the agent from whom it was purchased. Within 7 days after
it receives the notice of cancellation and this Certificate at its Home
Office, Aetna will return the entire consideration paid plus any increase or
minus any decrease in the current value of any funds allocated to the Separate
Account.
Signed at the Home Office on the
Effective Date.
/s/ /s/
President Secretary
Contract Holder Group Annuity Contract Number
SPECIMEN SPECIMEN
Certificate Holder Certificate Number
SPECIMEN SPECIMEN
Annuitant Name Type of Plan
SPECIMEN SPECIMEN
<PAGE> 2
<PAGE>
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CERTIFICATE CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT
FORMULA DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
Specifications
______________________________________________________________________________
Guaranteed There is a guaranteed interest rate for Contributions(s)
held
Interest Rate in the Fixed Plus Account and the GA Account (see Contract
Schedule I).
______________________________________________________________________________
Deductions from There will be deductions for mortality and expense risks and
the Separate administrative fees (see 3.07 and 5.07).
Account
______________________________________________________________________________
Deductions from Contribution(s) are subject to a deduction for premium
taxes,
Contribution(s) if any (see 3.02).
______________________________________________________________________________
Withdrawal Fee There may be a charge deducted upon withdrawal (see Contract
Schedule I).
<PAGE> 3
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Table of Contents
Separate Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Separate Account: . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Charges to Separate Account: . . . . . . . . . . . . . . . . . . . . 7
Fixed Plus Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Minimum Guaranteed Interest Rate: . . . . . . . . . . . . . . . . . . 7
Partial Withdrawal: . . . . . . . . . . . . . . . . . . . . . . . . . 7
Full Withdrawal: . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Guaranteed Accumulation Account (GA Account) . . . . . . . . . . . . . . . 8
Minimum Guaranteed Interest Rate: . . . . . . . . . . . . . . . . . . 8
Separate Account and GA Account . . . . . . . . . . . . . . . . . . . . . . 8
Withdrawal Fee: . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Separate Account, GA Account and Fixed Plus Account . . . . . . . . . . . . 9
Transfers: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Maintenance Fee: . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Systematic Withdrawal Option (SWO): . . . . . . . . . . . . . . . . . 9
Loan Interest Rate: . . . . . . . . . . . . . . . . . . . . . . . . . 9
Separate Account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Charges to Separate Account: . . . . . . . . . . . . . . . . . . . . 11
Variable Annuity Assumed Annual Net Return Rate: . . . . . . . . . . 11
Annuity Option 2: . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Fixed Annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Minimum Guaranteed Interest Rate: . . . . . . . . . . . . . . . . . . 11
DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.01 Accumulation Period: . . . . . . . . . . . . . . . . . . . . . . 13
1.02 Adjusted Current Value: . . . . . . . . . . . . . . . . . . . . 13
1.03 Annuitant: . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.04 Annuity: . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.05 Beneficiary: . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.06 Code: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.07 Contract Holder: . . . . . . . . . . . . . . . . . . . . . . . . 13
1.08 Contribution: . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.09 Current Value: . . . . . . . . . . . . . . . . . . . . . . . . . 13
1.10 Deposit Period: . . . . . . . . . . . . . . . . . . . . . . . . 14
1.11 Fixed Plus Account: . . . . . . . . . . . . . . . . . . . . . . 14
1.12 Fixed Plus Account Guaranteed Interest Rate: . . . . . . . . . . 14
1.13 Fixed Annuity: . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.14 Fund(s): . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
1.15 General Account: . . . . . . . . . . . . . . . . . . . . . . . . 14
1.16 Guaranteed Accumulation Account (GA Account): . . . . . . . . . 14
1.17 GA Account Guaranteed Interest Rate: . . . . . . . . . . . . . . 14
1.18 Guaranteed Term (Term): . . . . . . . . . . . . . . . . . . . . 14
1.19 Individual Account(s): . . . . . . . . . . . . . . . . . . . . . 15
1.20 Loan Account: . . . . . . . . . . . . . . . . . . . . . . . . . 15
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1.21 Loan Effective Date: . . . . . . . . . . . . . . . . . . . . . . 15
1.22 Loan Interest Rate: . . . . . . . . . . . . . . . . . . . . . . 15
1.23 Maintenance Fee: . . . . . . . . . . . . . . . . . . . . . . . . 15
1.24 Market Value Adjustment (MVA): . . . . . . . . . . . . . . . . . 15
1.25 Matured Term Value: . . . . . . . . . . . . . . . . . . . . . . 15
1.26 Matured Term Value Transfer: . . . . . . . . . . . . . . . . . . 15
1.27 Maturity Date: . . . . . . . . . . . . . . . . . . . . . . . . . 15
1.28 Monthly Average Corporates: . . . . . . . . . . . . . . . . . . 16
1.29 Net Contribution: . . . . . . . . . . . . . . . . . . . . . . . 16
1.30 Nonunitized Separate Account: . . . . . . . . . . . . . . . . . 16
1.31 Participant: . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.32 Plan: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.33 Reinvestment: . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.34 Separate Account: . . . . . . . . . . . . . . . . . . . . . . . 16
1.35 Transfer: . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
1.36 Transferred Assets: . . . . . . . . . . . . . . . . . . . . . . 17
1.37 Valuation Period: . . . . . . . . . . . . . . . . . . . . . . . 17
1.38 Variable Annuity: . . . . . . . . . . . . . . . . . . . . . . . 17
1.39 Withdrawal Fee: . . . . . . . . . . . . . . . . . . . . . . . . 17
II. GENERAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . 17
2.01 Change of Contract: . . . . . . . . . . . . . . . . . . . . . . 17
2.02 Change of Fund: . . . . . . . . . . . . . . . . . . . . . . . . 17
2.03 Nonparticipating Contract: . . . . . . . . . . . . . . . . . . . 17
2.04 Payments: . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.05 State Laws: . . . . . . . . . . . . . . . . . . . . . . . . . . 18
2.06 Control of Contract: . . . . . . . . . . . . . . . . . . . . . . 18
2.07 Designation of Beneficiary: . . . . . . . . . . . . . . . . . . 19
2.08 Misstatements and Adjustments: . . . . . . . . . . . . . . . . . 19
2.09 Incontestability: . . . . . . . . . . . . . . . . . . . . . . . 19
2.10 Grace Period: . . . . . . . . . . . . . . . . . . . . . . . . . 19
2.11 Individual Certificates: . . . . . . . . . . . . . . . . . . . . 19
2.12 Aggregation of Contracts: . . . . . . . . . . . . . . . . . . . 19
III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS . . . . . . . 19
3.01 Individual Account(s): . . . . . . . . . . . . . . . . . . . . . 19
3.02 Net Contribution(s): . . . . . . . . . . . . . . . . . . . . . . 20
3.03 Limitation on Contributions: . . . . . . . . . . . . . . . . . . 20
3.04 Experience Credits: . . . . . . . . . . . . . . . . . . . . . . 20
3.05 Fund Record Units: . . . . . . . . . . . . . . . . . . . . . . . 20
3.06 Fund Record Unit Value: . . . . . . . . . . . . . . . . . . . . 20
3.07 Fund Net Return Factors: . . . . . . . . . . . . . . . . . . . . 20
3.08 Market Value Adjustment (MVA): . . . . . . . . . . . . . . . . . 21
3.09 Transfer(s): . . . . . . . . . . . . . . . . . . . . . . . . . . 22
3.10 Notice to the Participant: . . . . . . . . . . . . . . . . . . . 22
3.11 Loans: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
3.12 Manner and Timing of Distributions: . . . . . . . . . . . . . . 24
3.13 Withdrawal: . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.14 Withdrawal Value: . . . . . . . . . . . . . . . . . . . . . . . 25
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3.15 Withdrawal Restrictions: . . . . . . . . . . . . . . . . . . . . 25
3.16 Withdrawals from the GA Account: . . . . . . . . . . . . . . . . 26
3.17 Withdrawal Fee Applicable to Funds and GA Account: . . . . . . . 26
3.18 Payment of Fixed Plus Account Full Withdrawal: . . . . . . . . . 26
3.19 Reinstatement: . . . . . . . . . . . . . . . . . . . . . . . . . 27
3.20 Payment of Minimum Current Value: . . . . . . . . . . . . . . . 27
3.21 Amount Payable at Death (Before Annuity Payments Start): . . . . 27
IV. NON-ANNUITY DISTRIBUTION OPTIONS . . . . . . . . . . . . . . . . . . . 27
4.01 Distribution Options: . . . . . . . . . . . . . . . . . . . . . 27
4.02 Estate Conservation Option: . . . . . . . . . . . . . . . . . . 27
4.03 Systematic Withdrawal Option: . . . . . . . . . . . . . . . . . 29
V. ANNUITY PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
5.01 Choices: . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
5.02 Terms of Annuity Options: . . . . . . . . . . . . . . . . . . . 31
5.03 Annuity Payments to Participant: . . . . . . . . . . . . . . . . 31
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5.04 Death Provision: . . . . . . . . . . . . . . . . . . . . . . . . 31
5.05 Fund Annuity Units: . . . . . . . . . . . . . . . . . . . . . . 31
5.06 Fund Annuity Unit Value: . . . . . . . . . . . . . . . . . . . . 32
5.07 Fund Annuity Net Return Factor: . . . . . . . . . . . . . . . . 32
5.08 Annuity Options: . . . . . . . . . . . . . . . . . . . . . . . . 32
VI. QUALIFIED JOINT AND SURVIVOR AND PRERETIREMENT SURVIVOR
ANNUITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
6.01 ERISA Requirements: . . . . . . . . . . . . . . . . . . . . . . 33
6.02 Waiver and Spousal Consent: . . . . . . . . . . . . . . . . . . 33
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Contract Schedule I
Level [A]
Accumulation Period
Separate Account
______________________________________________________________________________
Separate Account:
Variable Annuity Account C
Charges to Separate Account:
A daily charge is deducted from any portion of the Current Value
allocated to the Separate Account. The charge is determined by the value
of total assets held by Aetna under this Contract and other Aetna
contracts of the same class, on each anniversary date of this Contract.
The daily charge for Annuity mortality and expense risk and profit (M &
E) will be adjusted (up or down) no less often than annually to reflect
changes in the Current Value of all Plan accounts. The charge will
include a daily administrative charge which will not exceed [0.25%] on
an annual basis.
Total Assets M & E Administrative Charge
(annual effective rate) (annual effective rate)
__________________________________________________________________
Less than $500,000 1.25% 0.25%
500,000 - 1,000,000 1.25% 0.25%
1,000,001 - 5,000,000 1.25% 0.25%
5,000,001 - 15,000,000 1.25% 0.25%
Greater than 15,000,000 1.25% 0.25%
Initial Charges will be based on Aetna's estimated year end asset
level for the Contract Holder.
Fixed Plus Account
______________________________________________________________________________
Minimum Guaranteed Interest Rate:
[3%] (effective annual rate of return).
Beginning on the [tenth] anniversary of the effective date of an
Individual Account, Aetna will credit amounts with an interest
rate that is at least [0.25%] higher than the then declared
interest rate for Individual Accounts before the [tenth]
anniversary.
Partial Withdrawal:
The [20%] annual limit applicable to a partial withdrawal from the
Fixed Plus Account will be waived when the withdrawal is:
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a) Due to the Participant's death (within [six (6)] months of
the Participant's date of death), before Annuity benefit
payments begin; or
b) Used to purchase Annuity benefits.
Full Withdrawal:
The Payment of Fixed Plus Account Full Withdrawal provision will
be waived when the withdrawal is:
a) Due to the Participant's death before Annuity payments begin
and request for payment is received within six (6) months
after the Participant's date of death;
b) Used to purchase Annuity benefits; or
c) When the amount in the Fixed Plus Account is $3,500 or less
and no amount has been surrendered, transferred, taken as a
loan or used to purchase Annuity benefits during the prior
12 months.
Guaranteed Accumulation Account (GA Account)
______________________________________________________________________________
Minimum Guaranteed Interest Rate:
[3%] (effective annual rate of return).
Withdrawal Fee:
Length of Time from Individual
Account(s) Effective Date (Years) Withdrawal Fee
Fewer than 5 5%
5 or more, but fewer than 7 5%
7 or more, but fewer than 9 5%
9 or more, but fewer than 10 5%
10 or more 5%
The Withdrawal Fee will not be deducted from any portion of the
Individual Account(s) Current Value which is paid:
- Due to the Participant's death before Annuity payments
begin;
- Used to purchase Annuity benefits;
- Due to the election of the Estate Conservation Option (ECO)
or the Systematic Withdrawal Option (SWO) (see Section IV);
- In an amount equal to or less than [10%] of the Individual
Account(s) Current Value, as part of the first partial
withdrawal request in a calendar year to a Participant who
is at least age 59 1/2 and less than 70 1/2. The Individual
Account(s)Current Value is calculated as of the date the
partial withdrawal request is received in good order at
Aetna's Home Office. Any outstanding loans from the
Individual Account(s) are excluded when calculating the
Individual Account(s) Current Value. This provision does
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not apply to partial withdrawal due to loan defaults made
from the Individual Account(s) and does not apply to full
withdrawal requests. This provision may not be exercised if
SWO is elected;
- When the Individual Account(s) Current Value is [$3,500] or
less and no amount has been withdrawn, taken as a loan or
used to purchase Annuity benefits during the prior [12]
months;
- To relieve a Participant's "financial hardship," as may be
allowed for annuity contracts under Section 403(b) of the
Code or other applicable Internal Revenue Service rules or
regulations; or
- On account of a Participant's separation from service. The
Participant must submit documentation satisfactory to Aetna
to confirm that the he/she is no longer providing services
to the employer.
- The withdrawal fee will never exceed 8.5% of the total
Contributions made to the Individual Account(s).
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Separate Accounts, GA Account and Fixed Plus Account
______________________________________________________________________________
Transfers:
An unlimited number of Transfers may be made during the
Accumulation Period.
Maintenance Fee:
An annual Maintenance Fee may be charged, as determined by the
value of total assets held by Aetna under this Contract and
other Aetna contracts of the same class, on each anniversary date
of this Contract. The Maintenance Fee may go up or down each year.
Where applicable, the Maintenance Fee will be charged for each
Participant in the Contract.
Total Assets Maintenance Fee
______________________________________________________________________________
Less than $500,000 $25.00
500,000 - 1,000,000 $25.00
1,000,001 - 5,000,000 $25.00
5,000,001 - 15,000,000 $25.00
Greater than 15,000,000$25.00
Initial charges will be based on Aetna's estimated year end asset
level for the Contract Holder.
Systematic Withdrawal Option (SWO):
The Specified Payment or Specified Percentage may not be greater
than [20%] of the Individual Account's Current Value at the time
of election. The Specified Period may not be less than [5] years.
Loan Interest Rate:
a) Plans subject to Title I of the Employee Retirement Income
Security Act of 1974 (ERISA): A Loan Interest Rate is set
on the first business day of each month. For each loan, the
initial Loan Interest Rate is equal to the Monthly Average
Corporates for the calendar month beginning two months
before the calendar month in which the Loan Effective Date
occurs. The initial Loan Interest Rate is effective for a
period of not less than three months and not more than one
year. The period is specified in the loan agreement. For
each period, the Loan Interest Rate is adjusted if the new
rate is at least [0.5%] higher or lower than the previous
rate. The Participant will receive reasonable notification
of any change to the Loan Interest Rate.
b) Plans not subject to ERISA: [6%] on an annual basis.
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See Section I. - DEFINITIONS for explanations.
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Contract Schedule II
Annuity Period
Separate Account
______________________________________________________________________________
Charges to Separate Account:
A daily charge at an annual effective rate of 1.25% for mortality
and expense risk and profit (M & E) is deducted from any portion
of the Current Value allocated to a Variable Annuity. The
administrative charge is established upon election of an Annuity
option. This charge will not exceed an annual effective rate of
[0.25%].
Variable Annuity Assumed Annual Net Return Rate:
If a Variable Annuity is chosen, an assumed annual net return rate
of [5.0%] may be elected. If [5.0%] is not elected, Aetna will use
an assumed annual net return rate of [3.5%].
The daily net return rate factor for an assumed annual net return
rate [3.5%] per year is [0.9999058].
The daily net return rate factor for an assumed annual net return
rate [5.0%] per year is [0.9998663].
If the portion of a Variable Annuity payment for any Fund is not
to decrease, the Annuity return factor under the Separate Account
for that Fund must be:
a) [4.75%] on an annual basis plus an annual return of up to
[0.25%] to offset the administrative charge set at the time
Annuity payments commence if an assumed annual net return
rate of [3.5%] is chosen; or
b) [6.25%] on an annual basis plus an annual return of up to
[0.25%] to offset the administrative charge set at the time
Annuity payments commence, if an assumed annual net return
rate of [5%] is chosen.
Annuity Option 2:
For amounts invested in the GA Account or one or more of the
Fund(s), the number of years must be at least [five (5)] and not
more than [thirty (30)] and the Annuity may be a Fixed or Variable
Annuity.
For amounts invested in the Fixed Plus Account, the number of
years must be at least [five (5)] and not more than [thirty (30)]
and the Annuity must be a Fixed Annuity.
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Fixed Annuity
______________________________________________________________________________
Minimum Guaranteed Interest Rate:
[3.0%] (effective annual rate of return).
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DEFINITIONS
______________________________________________________________________________
1.01 Accumulation Period:
The period during which Net Contribution(s) are applied to an
Individual Account(s).
1.02 Adjusted Current Value:
The Current Value of an Individual Account (See 3.01) plus or
minus any aggregate GA Account Market Value Adjustment, if
applicable (See 3.08).
1.03 Annuitant:
A person on whose life an Annuity payment is based under this
Contract.
1.04 Annuity:
Payment of an income under the Annuity Provisions of Section V:
a) For the life of one or two persons;
b) For a stated period; or
c) For some combination of (a) and (b).
Upon receipt of certification from the Participant of his or her
total disability, acceptance of retirement or termination of
employment, the Participant has the right to elect an Annuity
option. Aetna will pay Annuity benefits directly to the
Participant and as payor, Aetna will be responsible for
withholding any applicable federal or state taxes and reporting
such sums and filing any related forms with the Internal Revenue
Service and/or to any applicable state taxing authorities. In the
event of the death of the Participant, Aetna will distribute the
accumulated balance of the deceased Participant's Individual
Account(s), without a Withdrawal Fee, as previously directed by
the electing Participant, or in the absence of such directions, as
directed by the Participant's Beneficiary.
1.05 Beneficiary:
The person named to receive any benefits which remain under the
Contract after the Participant's death. Participants designate a
Beneficiary for their Individual Account(s) (See 2.07).
1.06 Code:
The Internal Revenue Code of 1986, as amended.
1.07 Contract Holder:
The entity, named on the cover of this Contract, to which the
Contract is issued.
1.08 Contribution:
A payment received at Aetna's Home Office and allocated to this
Contract.
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1.09 Current Value:
For an Individual Account, the Current Value is the total of:
a) The amount, if any, in the Fixed Plus Account, with interest
earned to date;
b) The amount, if any, in the GA Account, with interest earned
to date; and
c) The value of all Fund record units (See 3.05), if any, as of
the most recent Valuation Period; plus
d) Any amount due to experience credits; less
e) Any Maintenance Fee(s) due.
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1.10 Deposit Period:
A calendar month, a calendar quarter, or any other period of time
specified by Aetna during which Net Contribution(s), Transfers and
Reinvestments are accepted into the GA Account for one or more
Terms.
1.11 Fixed Plus Account:
An accumulation option with a guaranteed minimum interest rate.
Aetna may credit a higher rate which is not guaranteed. No
Withdrawal Fee applies. However, the portion that may be withdrawn
or transferred in a 12 month period is restricted (See 3.09, 3.18
and 3.19).
1.12 Fixed Plus Account Guaranteed Interest Rate:
Aetna will add interest daily at an annual rate no less than that
shown on Contract Schedule I on any Net Contribution(s) to the
Fixed Plus Account. Aetna may add interest daily at a higher rate
determined by its Board of Directors.
1.13 Fixed Annuity:
An Annuity with payments that do not vary in amount.
1.14 Fund(s):
The open-end registered management investment companies (mutual
funds) in which the Separate Account invests.
1.15 General Account:
The account holding the assets of Aetna, other than those assets
held in Aetna's Separate Account(s) and Nonunitized Separate
Account(s).
1.16 Guaranteed Accumulation Account (GA Account):
An accumulation option where Aetna guarantees stipulated rate(s)
of interest for a specified period of time. All assets of Aetna,
including amounts in the Nonunitized Separate Account, are
available to meet the guarantees for the GA Account.
1.17 GA Account Guaranteed Interest Rate:
Aetna will declare the interest rate(s) applicable to a specific
Guaranteed Term at the start of the Deposit Period for that
Guaranteed Term. The rate(s) are guaranteed by Aetna for that
Deposit Period and the ensuing Guaranteed Term. The Guaranteed
Interest Rates are annual effective yields. That is, interest is
credited daily at a rate that will produce the Guaranteed Interest
Rate over the period of a year. No Guaranteed Interest Rate will
ever be less than the Minimum Guaranteed Interest Rate shown on
Contract Schedule I.
For Guaranteed Terms of one year or less, one Guaranteed Interest
Rate is credited for the full Guaranteed Term. For longer
Guaranteed Terms, an initial Guaranteed Interest Rate is credited
from the date of deposit to the end of a specified period within
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the Guaranteed Term. There may be different Guaranteed Interest
Rate(s) declared for subsequent specified time intervals
throughout the Guaranteed Term.
1.18 Guaranteed Term (Term):
The period of time for which GA Account Guaranteed Rates are
guaranteed on Net Contributions, Transfers and Reinvestments made
into a current Deposit Period for the GA Account. Such period
begins on the day following the close of the Deposit Period and
ends on the designated Maturity Date. Guaranteed Terms are offered
at Aetna's discretion for various lengths of time ranging up to
and including ten years and are classified as follows:
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Short Term: Three (3) or fewer years. Amounts allocated to a short
Term are held in the General Account.
Long Term: More than three (3) years, but not more than ten (10).
Amounts allocated to a long Term are held in the Nonunitized
Separate Account.
During a Deposit Period, Aetna may make available any number of
Guaranteed Terms. The Participant may allocate Net Contributions
and Transfers into any or all of the available Guaranteed Terms.
1.19 Individual Account(s):
The account(s) established for each Participant to keep a record
of Current Value and transactions (See 3.01).
1.20 Loan Account:
For each loan taken by a Participant, the loan amount transferred
from the investment options is credited to the Loan Account.
1.21 Loan Effective Date:
The date on which Aetna receives a loan agreement in good order at
its Home Office.
1.22 Loan Interest Rate:
The interest rate Aetna charges on a loan (see Contract Schedule
I).
1.23 Maintenance Fee:
The Maintenance Fee will be deducted during the Accumulation
Period from the sum of the Current Value of Participant's
Individual Account(s) and upon full surrender of the Participant's
Individual Account(s), unless otherwise directed by the Contract
Holder. The Maintenance Fee for Individual Account(s) will be as
established for the Contract on Contract Schedule I. The
Maintenance Fee is deducted on a pro rata basis from all
investment options used under a Participant's Individual
Account(s). However, the Maintenance Fee does not apply to each
separate Individual Account established for purposes of a lump sum
Contribution.
1.24 Market Value Adjustment (MVA):
An adjustment to the amount prematurely withdrawn or Transferred
from a GA Account Guaranteed Term prior to the end of that
Guaranteed Term. The adjustment reflects the change in the value
of the investment due to changes in interest rates since the date
of deposit and is computed using the formula given in 3.08. The
adjustment is expressed as a percentage of each dollar being
withdrawn.
1.25 Matured Term Value:
The amount payable on a GA Account Guaranteed Term's Maturity
Date.
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1.26 Matured Term Value Transfer:
During the calendar month following a GA Account Maturity Date,
the Participant may notify Aetna's Home Office in writing to
Transfer or withdraw all or part of the Matured Term Value, plus
interest at the new Guaranteed Interest Rate accrued thereon, from
the GA Account without an MVA. This provision only applies to the
first such written request received from the Participant during
this period for any Matured Term Value.
1.27 Maturity Date:
The last day of a GA Account Guaranteed Term.
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1.28 Monthly Average Corporates:
Moody's Corporate Bond Yield Average-Monthly Average Corporates
published by Moody's Investors Service, or its successor, or a
substantially similar average as may be allowed by law or
regulation.
1.29 Net Contribution:
A Contribution less any applicable premium taxes.
1.30 Nonunitized Separate Account:
An account established by Aetna under Section 38a-433 of the
Connecticut General Statutes that holds assets for GA Account
Terms greater than three years. The Contract Holder and/or
Participant does not participate in the investment gain or loss
from the assets held in the Nonunitized Separate Account. Such
gain or loss is borne entirely by Aetna. Assets in this account
may be charged with liabilities arising out of any other Aetna
business.
1.31 Participant:
A person who participates in the Plan of the Contract Holder named
on the cover of this Contract.
1.32 Plan:
The Plan, named on the cover of this Contract, established under
Code Section 403(b). The Plan is not a part of the Contract and
Aetna is not bound by its terms.
1.33 Reinvestment:
Aetna will mail a notice to the Participant at least 18 calendar
days before a Guaranteed Term's Maturity Date. This notice will
contain the Terms available during the current Deposit Periods
with their Guaranteed Interest Rate(s) and projected Matured Term
Value. If no specific direction is given by the Participant, prior
to the Maturity Date, each Matured Term Value will be reinvested
in the current Deposit Period for a Guaranteed Term of the same
duration. If a Guaranteed Term of the same duration is
unavailable, each Matured Term Value will automatically be
reinvested in the current Deposit Period for the next shortest
Guaranteed Term available in the same classification. If no
shorter Guaranteed Term is available, the next longer Guaranteed
Term will be used. Aetna will mail a confirmation statement to the
Participant, the next business day after the Maturity Date. This
notice will state the Guaranteed Term and Guaranteed Interest
Rate(s) which will apply to the reinvested Matured Term Value.
1.34 Separate Account:
An account, established by Aetna under Section 38a-433 of the
Connecticut General Statutes, that buys and holds shares of the
Fund(s) available under this Contract. 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.
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Aetna owns the assets held in the Separate Account and is not a
trustee of such amounts. Amounts in the Separate Account are not
generally guaranteed and are held at market value. The assets of
the Separate Account, to the extent of reserves and other contract
liabilities of the Account, cannot be charged with other Aetna
liabilities arising out of any other Aetna business.
1.35 Transfer:
The movement of invested amounts among the available Fund(s), the
Fixed Plus Account and the GA Account during the Accumulation
Period.
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1.36 Transferred Assets:
Transferred Assets are the value of prior contributions with
another carrier into an existing Plan which are deposited into
this Contract as of the date the amount is received in good order
by Aetna. Transferred Assets, less any premium tax, will be
allocated to Participant Individual Account(s).
1.37 Valuation Period:
The period of time commencing at the end of one valuation date and
ending at the end of the next valuation date. A valuation date is
each day on which the New York Stock Exchange is expected to be
open for business.
1.38 Variable Annuity:
An Annuity with payments that vary with the net investment results
of the Funds available during the Annuity period.
1.39 Withdrawal Fee:
If all or any portion of an Individual Account(s) Value is
withdrawn during the Accumulation Period, a percentage of the
amount withdrawn may be deducted so that the Aetna may recover
sales and administrative related expenses.
II. GENERAL PROVISIONS
______________________________________________________________________________
2.01 Change of Contract:
Only an authorized officer of Aetna may change the terms of this
Contract. Aetna reserves the right to modify this Contract to meet
the requirements of applicable state and federal laws or
regulations. Aetna will notify the Contract Holder and Participant
in writing of any changes.
Aetna may change the tables for determining the amount of Annuity
benefit payments without Contract Holder or Participant consent.
Such a change will not become effective earlier than twelve months
after (1) the effective date of the Contract, or (2) the effective
date of a previous change. Aetna will notify the Contract Holder
and Participant in writing at least thirty (30) days before the
effective date of the change. The change will apply to all current
and future Individual Accounts.
2.02 Change of Fund:
Aetna, or the Separate Account may:
a) Change the Fund(s) in which the Separate Account invests;
and/or
b) Replace the shares of any Fund(s) held in the Separate
Account with shares of any other Fund(s).
Replacements must be:
a) Approved by a majority vote in the Separate Account with
respect to the Fund(s) whose shares are to be replaced; or
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b) Deemed necessary by Aetna under the Investment Company Act
of 1940; or
c) Deemed necessary by Aetna to accomplish the purpose of the
Separate Account.
Aetna will notify the Contract Holder and Participant of any such
change.
2.03 Nonparticipating Contract:
The Contract Holder, Participants, or Beneficiaries will not have
a right to share in the earnings of Aetna.
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2.04 Payments:
a) Aetna will make distributions as directed by the
Participant. Aetna will determine the amount of payments
based on the Individual Account(s) Current Value as of the
date on which a request is received in good order at Aetna's
Home Office subject to the restrictions in Section 3.15.
Payments will be made within seven (7) calendar days of
receipt of a written request in good order at Aetna's Home
Office.
For Plans subject to ERISA, see Section VI.
a) Aetna may defer payments:
1) For a period of up to six (6) months (unless not
allowed by state law); and
2) As allowed by federal law.
2.05 State Laws:
This Contract complies with the laws of the state in which it is
delivered. Any cash, death or Annuity payments are equal to or
greater than the minimum required by such laws. Annuity tables
for legal reserve valuation shall be as required by state law.
Such tables may be different from Annuity tables used to determine
Annuity payments.
2.06 Control of Contract:
This is a Contract between the Contract Holder and Aetna only to
satisfy the "purchase" requirements of Section 403(b)(1) of the
Internal Revenue Code of 1986, as amended. The Contract Holder has
no right, title or interest in the amounts held under the Contract
either by reason of remitting Contributions or applying for this
Contract.
Each Participant shall own all amounts held in his or her
Individual Account(s). The Participant may make any choices
allowed under this Contract with respect to Individual Accounts.
Any choices made under this Contract must be in writing. Until
receipt of any such written choice at its Home Office, Aetna may
rely on any prior choices made. Neither the Contract nor any
Individual Account is subject to the claims of Participants'
creditors, except to the extent permitted by law.
Distributions will be made from the Individual Account(s) upon the
Participant's written direction to Aetna, subject to the
restrictions in Section 3.15 and Section VI. The Participant may
direct Aetna to make an in-service transfer pursuant to IRS
Revenue Ruling 90-24. Checks for in-service transfers will be made
payable only to the acquiring investment provider.
a) Nontransferable and Nonassignable:
This Contract and any Individual Account(s) are
nontransferable and nonassignable, except to Aetna in the
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event of a loan or pursuant to a "qualified domestic
relations order" as set forth under the Retirement Equity
Act of 1984 (REA). In the event a loan is requested, the
Current Value of the Individual Account(s) necessary to
cover the loan amount plus interest must be assigned to
Aetna.
b) ERISA/REA Requirements:
The Contract Holder shall notify Aetna in writing of the
applicability of ERISA, as amended by subsequent law
including REA, to the Plan. Aetna shall rely on the Contract
Holder's determination and representation of applicability.
For Plans subject to ERISA, see Section VI.
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c) Participant Rights:
The Participant has a nonforfeitable right to the value of his or
her Individual Account(s) pursuant to Code Section 403(b).
2.07 Designation of Beneficiary:
Each Participant shall name a Beneficiary.
An unmarried Participant may designate a Beneficiary of his or her
entire Individual Account(s) Current Value if it is accompanied by
a consent form which certifies that he or she is unmarried.
In accordance with Section 6.01(b), for a married Participant, the
spouse must be the Beneficiary of 50% of his Individual Account(s)
Current Value. Provided, however, if the Participant has attained
age 35, he or she may designate an alternate Beneficiary for such
amount if the appropriate waiver/spousal consent form, completed
in a manner consistent with Section 6.02, is submitted to Aetna.
For the balance of the Individual Account(s) Current Value, a
married Participant may name any Beneficiary without obtaining
spousal consent.
Upon the death of a married Participant, Aetna will disregard the
designated Beneficiary and treat the current spouse as the
Beneficiary, subject to the terms of any applicable qualified
domestic relations order, if the current spouse did not consent to
the designation of an alternate Beneficiary.
2.08 Misstatements and Adjustments:
If Aetna finds the age of any payee to be misstated, the correct
facts will be used to adjust payments.
2.09 Incontestability:
Aetna cannot cancel this Contract because of any error of fact on
the application.
2.10 Grace Period:
This Contract will remain in effect even if Contributions are not
continued except as provided in Section 3.21.
2.11 Individual Certificates:
Aetna shall issue certificates to the Contract Holder or
Participants as required by the state in which this Contract is
delivered. The certificate will summarize certain provisions of
the Contract. Certificates are for information only and are not a
part of the Contract.
2.12 Aggregation of Contracts:
The charges to the Separate Account and Maintenance Fee described
in Contract Schedule I vary by the Current Value of Individual
Account(s). In determining such Current Value, Individual
Account(s) of the following contracts will be aggregated:
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a) This Contract, and
b) Aetna contracts of the same class as this Contract covering
employees of the employer maintaining the Plan.
For purposes of determining the daily asset charge and Maintenance
Fee under this Contract, where such other contract comes into
existence after the Effective Date, the aggregation will commence
no later than the first day of the next succeeding anniversary
date. Where such other contract is in existence prior to, or on
the Effective Date, the aggregation will commence on the Effective
Date.
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III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS
______________________________________________________________________________
3.01 Individual Account(s):
Aetna will maintain Individual Account(s) for Participants. The
Individual Account(s) will be credited with employee
Contributions. Ongoing employer Contributions will not be
accepted.
Aetna reserves the right not to accept any Contribution.
3.02 Net Contribution(s):
The Net Contribution equals the actual Contribution less any
applicable premium tax. Generally, Aetna will deduct the premium
tax when Annuity benefits are purchased (See Section V). If Aetna
determines that under applicable state law, it must pay a premium
tax when the Contribution is received, or at any other time, it
may deduct the tax at that time. The Net Contribution(s) may be
allocated among the following investment options:
a) The Fixed Plus Account; and
b) The current Deposit Period(s) for Guaranteed Terms under the
GA Account; and
c) The Fund(s) in which the Separate Account invests.
The Participant must tell Aetna the percentage of all Net
Contributions to allocate to one or more of the investment
options. The Participant may change the allocation of future Net
Contributions at any time, without charge. Aetna reserves the
right to require a minimum Contribution amount per Individual
Account.
3.03 Limitation on Contributions:
The Contribution(s) made to a Participant's Individual Account(s)
in any year cannot exceed the lesser of the amount determined
under the exclusion allowance of Code Section 403(b)(2) or the
annual additions limitation of Code Section 415(c)(1).
In addition, in no event may the Contribution(s) attributable to
elective deferrals as defined in Code Section 402(g) exceed $9,500
(or, such larger amount as adjusted by the Secretary of the
Treasury) during any calendar year, unless the alternate
limitation of Code Section 402(g)(8) applies.
3.04 Experience Credits:
Aetna may apply experience credits under this Contract. Any such
credits will be computed as decided by Aetna.
3.05 Fund Record Units:
The portion of the Net Contribution(s) applied to each Fund under
the Separate Account will determine the number of Fund record
units credited to the Individual Account(s) for that Fund. This
number is equal to the Net Contribution applied to the Fund
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divided by the Fund record unit value (See 3.06) for the Valuation
Period in which the Contribution is received in good order.
3.06 Fund Record Unit Value:
A Fund record unit value is computed by multiplying the net return
factor (See 3.07) for the current Valuation Period by the Fund
record unit value for the previous period. The dollar value of a
Fund record unit, Separate Account assets, and Variable Annuity
payments may go up or down due to investment gain or loss.
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3.07 Fund Net Return Factors:
The net return factor(s) are used to compute all Separate Account
record units for any Fund. The net return factor for each Fund is
equal to 1.0000000 plus the net return rate.
The net return rate is equal to:
a) The value of the shares of the Fund held by the Separate
Account at the end of a Valuation Period; minus
b) The value of the shares of the Fund held by the Separate
Account at the start of the Valuation Period; plus or minus
c) Taxes (or reserves for taxes) on the Separate Account (if
any);
d) Divided by the total value of the Fund record units and Fund
Annuity units of the Separate Account at the start of the
Valuation Period;
e) Minus a Separate Account charge at an annual effective rate
as shown on Contract Schedule I for Annuity mortality and
expense risks and profit and a daily administrative charge
which will not exceed the amount shown on Contract Schedule
I on an annual basis. The administrative charge may be
changed annually except for amounts which have been used to
purchase an Annuity.
A net return rate may be more or less than 0%.
The value of a share of the Fund is equal to the net assets of the
Fund divided by the number of shares outstanding.
3.08 Market Value Adjustment (MVA):
a) An MVA will be applied to any withdrawal from a GA Account
Term before the Maturity Date due to:
1) A Transfer;
2) A full or partial withdrawal;
3) A payment of a premium for Annuity Option 2.
The amount of the withdrawal will be adjusted to a market value
amount as described in b):
b) Market value adjusted amounts will be equal to the amount
withdrawn multiplied by the following ratio:
x
-------
365
(1 + i)
-----------------------
x
-------
365
(1 + j)
Where:
i is the Deposit Period Yield
j is the Current Yield
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x is the number of days remaining, (computed from Wednesday of
the week of withdrawal) in the Term.
c) The Deposit Period Yield and Current Yield will be
determined as follows:
1) At the close of the last business day of each week of
the Deposit Period, a yield will be computed as the
average of the yields on that day of U.S. Treasury
Notes which mature in the last three months of the
Term.
2) The Deposit Period Yield is the average of those
yields for the Deposit Period. If withdrawal is made
prior to the close of the Deposit Period, it is the
average of those yields on each week preceding
withdrawal.
3) The Current Yield is the average of the yields on the
last business day of the week preceding withdrawal on
the same U.S. Treasury Notes included in the Deposit
Period Yield.
4) In the event that no U.S. Treasury Notes which mature
in the last three months of the Term exist, Aetna
reserves the right to use the U.S. Treasury Notes that
mature in a following quarter.
d) Full and partial withdrawals as well as Transfers made
1) within six (6) months after the Participant's date of
death under the Amount Payable at Death provision (See
3.22) will be the greater of:
(a) The aggregate MVA amount which is the sum of all
market value adjusted amounts calculated due to
a withdrawal of amounts (for withdrawal or
Transfer) from Terms prior to the end of those
Terms. The aggregate MVA may be either positive
or negative; or
(b) The applicable portion of the Current Value in
the GA Account.
2) After the six month period following death, the
withdrawal or Transfer will be the aggregate MVA
amount (i.e., including all MVAs).
e) The greater of the aggregate MVA amount or the applicable
portion of the Current Value in the GA Account is applied to
amounts withdrawn from the GA Account for payment of a
premium under Annuity options 3 or 4.
3.09 Transfer(s):
Before an Annuity option is elected, all or any portion of the
Adjusted Current Value of the Individual Account(s) may be
transferred from any Fund, the Fixed Plus Account or the GA
Account:
a) To any other allowable Fund; or
b) To the Fixed Plus Account; or
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c) To any Guaranteed Term of the GA Account with a different
classification available in the current Deposit Period.
Transfer requests can be submitted as a percentage or as a dollar
amount. Aetna may establish a minimum transfer amount. Within a
Guaranteed Term classification, the amount transferred will be
withdrawn from the oldest Deposit Period, then from the next
oldest, and so on until the amount requested is satisfied.
Amounts applied to Guaranteed Terms of the GA Account may not be
transferred to the Funds, the Fixed Plus Account or to another
Guaranteed Term during the Deposit Period or 90 days after the
close of the Deposit Period except for Matured Term Value(s)
during the calendar month following the Term's Maturity Date.
Transfers from Guaranteed Terms of the GA Account are subject to
the MVA provisions of 3.08.
During each rolling twelve (12) month period, up to 20% of the
Current Value held in the Fixed Plus Account may be transferred to
one or more of the Fund(s), and/or the GA Account's then-current
Deposit Period. The 20% limit is reduced by any partial
withdrawals, loans or amounts used to purchase an Annuity during
the twelve (12) month period. Aetna reserves the right to include
amounts paid under ECO and SWO provisions for purposes of applying
this 20% limit. This limit is waived when the balance in the Fixed
Plus Account is $1,000 or less on the date the Transfer request is
received in good order at Aetna's Home Office.
The Participant may make an unlimited number of Transfers during
the Accumulation Period.
3.10 Notice to the Participant:
Each year, Aetna will notify the Participant of:
a) The value of any amounts held in:
1) The Fixed Plus Account,
2) The GA Account,
3) The Fund(s) for the Separate Account;
b) The number of any Fund record units;
c) The Fund record unit value(s);
d) The Loan Account balance; and
e) The amount available for withdrawal.
This information will be as of a date no more than sixty (60) days
before the date of the notice.
3.11 Loans:
During the Accumulation Period, loans are granted (1) as permitted
under applicable law; (2) subject to the terms and conditions of
the loan agreement; and, (3) in accordance with the following
provisions.
a) Amount available for loan: The amount available for loan is
limited to the Participant's Individual Account(s) Current
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Value. Amounts available from some investment options may
be subject to limitations specified in the loan agreement.
To obtain the loan amount requested, these limitations may
require the Participant to transfer funds. A Market Value
Adjustment may apply to amounts transferred.
The minimum loan amount is $1,000. The maximum loan amount is the
lesser of:
1) Fifty percent (50%) of the Individual Account(s)
Current Value, including any Loan Account, reduced by
the amount of any outstanding loan balance on the Loan
Effective Date; or
2) Fifty thousand dollars ($50,000) reduced by the
highest outstanding loan balance for the preceding 12
months.
The amount of all outstanding loans cannot exceed $50,000.
b) Loan Interest Rate: A Loan Interest Rate is set on the first
business day of each month. For each loan, the initial Loan
Interest Rate is the rate for the calendar month in which
the Loan Effective Date occurs. The initial Loan Interest
Rate is effective for a period of not less than three months
and not more than one year. The period is specified in the
loan agreement. For each period, the Loan Interest Rate is
adjusted if the new rate is at least 0.5% higher or lower
than the previous rate. The Participant will receive
reasonable notification of any change to the Loan Interest
Rate. As applicable, the Loan Interest Rate is:
1) Plans subject to ERISA: equal to the Monthly Average
Corporates for the calendar month beginning two months
before the Loan Interest Rate is effective.
2) Plans not subject to ERISA: not greater than 8% on an
annual basis.
c) Earned interest: The Loan Account is credited with interest
at a rate which is not less than the Loan Interest Rate,
less 3%, on an annual basis. Interest credited to the Loan
Account will never be less than 3%.
d) Loan repayment: Repayment is as set forth in the loan
agreement, or a Participant may repay a loan in full at any
time.
e) Surrenders while a loan is outstanding: If the Participant
requests a surrender from the Individual Account(s) Current
Value while a loan is outstanding, one of the following
occurs:
1) If the amount of the Individual Account(s) Current
Value available for distribution is sufficient to
repay (a) the outstanding loan balance, plus (b) any
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applicable Fixed Plus Account default charge, and (c)
any Withdrawal Fee due on the outstanding loan
balance, that amount, minus the Loan Account balance,
is deducted from the Individual Account(s) Current
Value and the loan is cancelled.
2) If the amount of the Individual Account(s) Current
Value available for distribution is not sufficient to
repay the (a) the outstanding loan balance, plus (b)
any applicable Fixed Plus Account default charge, and
(c) any Withdrawal Fee due on the outstanding loan
balance, the surrender amount cannot exceed the
Individual Account(s) Current Value, including the
Loan Account, reduced by 125% of the outstanding loan
balance.
f) Electing an Annuity option while a loan is outstanding:
Before all or any portion of the Individual Account(s)
Current Value is applied to an Annuity option, the
Participant may repay any outstanding loan balance, or the
Individual Account(s) Current Value is adjusted as described
in (e).
g) Death of the Participant while a loan is outstanding: If a
death benefit claim is submitted for an Individual
Account(s) with an outstanding loan, the Individual
Account(s) Current Value, including the amount of the Loan
Account, is reduced by the amount of the outstanding loan
balance before the death benefit amount is determined.
h) Loan default: If Aetna does not receive a loan payment when
due, the outstanding loan balance becomes due. If
applicable, a 5% default charge may apply to the portion in
excess of 20%, if any, of the amount transferred from the
Fixed Plus Account. The defaulted loan is treated as
follows:
1) If the amount of the Individual Account(s) Current
Value available for distribution is sufficient to
repay (a) the outstanding loan balance, plus (b) any
applicable Fixed Plus Account default charge, and (c)
any Withdrawal Fee due on the outstanding loan
balance, that amount, minus the Loan Account balance,
is deducted from the Individual Account(s) Current
Value and the loan is cancelled.
2) If the amount of the Individual Account(s) Current
Value available for distribution is not sufficient to
repay (a) the outstanding loan balance, plus (b) any
applicable Fixed Plus Account default charge, and (c)
any Withdrawal Fee due on the outstanding loan
balance, until such time that the amount due can be
distributed, the Loan Account continues to earn
interest, and interest is charged on the outstanding
loan balance. At that time, the amount described in
(h)(1) is surrendered from the Individual Account(s)
Current Value and the loan is cancelled.
i) For Plans subject to ERISA, see Section VI.
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3.12 Manner and Timing of Distributions:
a) A distribution to a Participant may be made in a lump sum,
as one of the distribution options described in Section IV,
or as one of the Annuity options in Section V.
b) Generally, the distribution of benefits accrued after
December 31, 1986, must begin by April 1 of the calendar
year following the calendar year in which the Participant
attains age 70 1/2. However, for a Participant who attained
age 70 1/2 before January 1, 1988, the distribution of such
benefits must be made or must begin not later than the April
1 of the calendar year following the calendar year in which
the Participant retires.
The above does not apply if the Contract Holder is a
governmental entity or a church. For Participants of such an
employer, the distribution of benefits accrued after
December 31, 1986, must be made or must begin not later than
April 1 of the calender year following the calendar year in
which the Participant attains age 70 1/2 or retires,
whichever occurs later.
c) The required distribution must be made over the life of the
Participant (or the joint lives of the Participant and the
Beneficiary) or over a period not exceeding the life
expectancy of the Participant (or the joint life
expectancies of the Participant and the Beneficiary).
d) If the Participant does not request commencement of benefits
as described above, Aetna will not be responsible for
compliance with the Code Section 401(a)(9) minimum
distribution requirements or for any adverse tax or other
consequences that may result.
e) For Plans subject to ERISA, see Section VI.
3.13 Withdrawal:
a) The Participant may withdraw any portion or all of an
Individual Account(s) Current Value by submitting a written
request to Aetna. For Plans subject to ERISA, see Section
VI.
b) Except as described in Section 3.19, unless the Participant
specifies otherwise, partial withdrawals are satisfied by
withdrawing amounts on a pro rata basis from each of the
investment options in which the Individual Account(s) is
invested.
c) When amounts are withdrawn from the GA Account, amounts in
short Term and long Term classifications are treated as
separate investment options and amounts are taken on a pro
rata basis. Within a classification, amounts will be
withdrawn starting with the term still in effect with the
oldest Deposit Period.
3.14 Withdrawal Value:
After deduction of the Maintenance Fee (if any), the amount
payable by Aetna upon the withdrawal of any portion of an
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Individual Account(s) from the Fund(s) or the GA Account shall be
reduced by a Withdrawal Fee, if applicable. The Withdrawal Fee
will be in accordance with the Withdrawal Fee table in Contract
Schedule I.
No Withdrawal Fee is deducted from any portion of the Current
Value which is paid from the Fixed Plus Account.
For a partial or full withdrawal from any Individual Account,
Aetna must receive written direction from the Participant on a
form acceptable to Aetna. Aetna may defer payment of the
withdrawal value until appropriate certification is received.
3.15 Withdrawal Restrictions:
Limitations apply to full and partial withdrawals of the
"restricted amount" from this Contract, as required by Code
Section 403(b)(11). The restricted amount is the sum of:
a) Net Contributions attributable to a Participant's salary
reduction contributions made on and after January 1, 1989;
plus
b) The net increase, if any, in the Current Value of the
Individual Account after December 31, 1988 attributable to
investment gains and losses and credited interest.
The restricted amount may be fully or partially withdrawn only if
one or more of the following conditions are met.
a) The Participant has reached age 59 1/2;
b) The Participant has separated from service;
c) The Participant has died;
d) The Participant has become disabled, within the meaning of
Code Section 72(m)(7); or
e) The withdrawal is otherwise allowed by federal law,
regulations or rulings.
A full or partial withdrawal is also allowed if the Participant
incurs a "hardship" as that term is defined in the Code or
regulations under Code Section 403(b). However, the amount
available for hardship is limited to the lesser of the amount
necessary to satisfy the need or the Net Contributions
attributable to the Participant's salary reduction contributions
made on or after January 1, 1989.
The Participant must certify that one of these conditions has been
met before a withdrawal request will be considered to be in good
order. The Participant must notify Aetna in writing when a lump
sum payment is to be made or Annuity payments are to commence.
If, pursuant to Revenue Ruling 90-24, Aetna agrees to accept under
this Contract amounts transferred from a Code Section 403(b)(7)
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custodial account, such amounts will be subject to the withdrawal
restrictions set forth in Code Section 403(b)(7)(A)(ii).
3.16 Withdrawals from the GA Account:
Full or partial withdrawals may be requested at any time from the
GA Account. However, amounts withdrawn prior to the Maturity Date
of a Term may be subject to a Market Value Adjustment (See 3.08).
Full and partial withdrawals are satisfied by withdrawing amounts
from each of the investment options in which the Individual
Account(s) is invested (the Funds, the Fixed Plus Account, the GA
Account short Term classification and the GA Account long Term
classification) on a pro rata basis. However, the Participant may
specify a particular order in which investment options will be
liquidated in order to satisfy a partial surrender request.
3.17 Withdrawal Fee Applicable to Funds and GA Account:
A Withdrawal Fee may apply to withdrawals from the GA Account
and/or Funds. The fee will vary according to the length of time
elapsed from the effective date of an Individual Account to the
date when the withdrawal request is received. For each withdrawal,
the Withdrawal Fee will be determined as shown on Contract
Schedule I.
During each rolling 12-month period, up to 20% of the Current
Value in the Fixed Plus Account may be withdrawn as a partial
surrender. This 20% limit is reduced by any amount(s) transferred,
taken as a loan or used to purchase an Annuity during the 12 month
period. The 20% limit applicable to partial surrenders from the
Fixed Plus Account will be waived when the partial surrender is
due to one of the conditions set forth in Contract Schedule I. The
waiver will apply provided the partial surrender is taken pro-rata
from the Fixed Plus Account, the GA Account, and the Fund(s).
Aetna reserves the right to include amounts paid under the ECO and
SWO provisions for purposes of applying the 20% limit. However,
the SWO provision is not available if the Participant requested a
Fixed Plus Account Transfer or surrender within the current 12
month period.
3.18 Payment of Fixed Plus Account Full Withdrawal:
No Withdrawal Fee is deducted from any portion of the Current
Value which is paid from the Fixed Plus Account. When Aetna
receives a full withdrawal request, no additional partial
withdrawals or Transfers from the Fixed Plus Account are permitted
during the payout period. If a full withdrawal is requested, Aetna
will pay any Current Value, including accrued interest, from the
Fixed Plus Account in five payments as follows:
a) One-fifth of the Current Value on the day the request is
received in good order at Aetna's Home Office, reduced by
any amount from the Fixed Plus Account that was transferred,
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withdrawn or used for a loan or to purchase Annuity benefits
during the prior twelve months;
b) One-fourth of the then remaining Current Value twelve months
later;
c) One-third of the then remaining Current Value twelve months
later;
d) One-half of the then remaining Current Value twelve months
later; and
e) The balance of the then Current Value twelve months later.
The Fixed Plus Account full withdrawal payment provision may also
be waived under certain conditions (See Contract Schedule I).
Any full withdrawal from the Fixed Plus Account may be cancelled
at any time before the end of the payment period.
For Plans subject to ERISA, see Section VI.
3.19 Reinstatement:
All or a portion of the proceeds of a full withdrawal of this
Contract may be reinvested within 30 days after the withdrawal if
allowed by law. Any Maintenance Fee and Withdrawal Fee charged at
the time of the withdrawal on the amount being reinvested will be
included in the reinstatement. Any Market Value Adjustment
deducted from GA Account withdrawals will not be included in the
reinstatement. Amounts will be reinstated among the Fixed Plus
Account, the GA Account, and/or the Fund(s) for the Separate
Account in the same proportion as they were at the time of
withdrawal. Any amounts reinstated to the GA Account will be
credited to Terms available during the then-current Deposit
Period. The number of record units reinstated will be based on the
record unit value(s) next computed after receipt in good order at
Aetna's Home Office of the reinstatement request and the amount to
be reinvested.
Any Maintenance Fee which falls due after the withdrawal and
before the reinstatement will be deducted from the amount
reinstated.
Reinstatement is permitted only once for an Individual Account.
3.20 Payment of Minimum Current Value:
If the sum of the Individual Account(s) Current Value(s) is less
than $3,500, and no Contributions have been received for three (3)
years, Aetna may close the account(s) and pay the Current Value(s)
to the Participant in one lump sum.
3.21 Amount Payable at Death (Before Annuity Payments Start):
Aetna will pay the Individual Account(s) Current Value to the
Beneficiary when:
a) The Participant dies before Annuity payments start; and
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b) A certified copy of the death certificate is received.
Amounts in the GA Account will be payable as described in Section
3.08(d).
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IV. NON-ANNUITY DISTRIBUTION OPTIONS
______________________________________________________________________________
4.01 Distribution Options:
Subject to Section VI, the Participant or a surviving spouse may
elect one of the two following distribution options. A surviving
spouse is eligible to elect one of the options provided the spouse
is the designated Beneficiary and the Participant had died before
electing an Annuity option and before the date for required
minimum distributions.
4.02 Estate Conservation Option:
a) With the Estate Conservation Option (ECO) a portion of the
Individual Account(s) Current Value is automatically
surrendered and distributed each year without incurring a
Withdrawal Fee. Each payment will be withdrawn from the
Individual Account(s) in the same proportion as assets are
held in the Funds, the GA Account, and the Fixed Plus
Account on the date the payment is made.
b) Payments under ECO will comply with the incidental death
benefit test set forth in Code Section 401(a)(9).
c) Distribution Amount: Each year that ECO is in effect, Aetna
will calculate and distribute an amount equal to the minimum
distribution required under the Code. The annual
distribution will be determined by dividing the Individual
Account(s) Current Value as of December 31 of the year prior
to the payment year, by a single or joint life expectancy
factor. If joint life expectancy is elected, the Beneficiary
under ECO must be the same as the Beneficiary of any death
benefits under the Individual Account(s).
An exception will be made if Aetna maintains a separate
record of a Participant's Individual Account(s) value as of
December 31, 1986. In this instance, payments made in or
after the year in which the Participant attains age 70 1/2,
but before the year in which the Participant attains age 75,
will be calculated only on amounts contributed after
December 31, 1986 and any earnings after that date. If age
70 1/2 was attained prior to 1988, the Participant must be
retired in order to qualify for this exception.
The method under this rule is elected by the Participant and
will not apply if the Participant has received any
distribution from his or her Individual Account(s), other
than distribution amounts required under Code minimum
distribution rules.
Aetna will maintain separate records if the Participant has
not requested any withdrawals from the Participant's
Individual Account(s) since December 31, 1986.
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d) Life Expectancy Factor: For the Participant, the life
expectancy factor is either single life or joint life
expectancy as elected by the Participant, based on tables in
Code Section 401(a)(9) or related regulations. For a spouse
Beneficiary, only a single life expectancy is available.
Life expectancy factors will be recalculated each year,
unless prohibited by the Code or regulations.
The joint life expectancy factor will be based on the joint
life expectancy of the Participant and his or her
Beneficiary provided such individual is the Beneficiary of
any death benefits under the Contract while ECO is in
effect. Any change in the Beneficiary designation under
this Contract by the Participant, must be immediately
communicated to Aetna so that subsequent distributions can
be calculated as required by IRS regulations.
If joint life expectancy is elected and the Participant or
spouse dies, payments will be based on the survivor's life
expectancy. If the Beneficiary is not the spouse and the
Beneficiary dies first, the joint life expectancy continues
to be used to determine payments.
If a single life expectancy is elected, at the death of the
Participant (or the spouse who is the designated Beneficiary
electing ECO after the Participant's death), the entire
value must be distributed no later than the December 31 of
the year following the year of the Participant's (or
spouse's) death. If a joint life expectancy is elected, and
both the Participant and spouse have died, any remaining
Current Value must be distributed no later than the December
31 of the year following the year of the second death. If a
joint life expectancy is elected and both the Participant
and non-spouse Beneficiary have died, any remaining Current
Value will be distributed to a successor Beneficiary, if one
has been named, then to the estate of the last to die.
These calculations may be changed as necessary to comply
with Code minimum distribution rules. Any mode of payment
elected upon the Participant's death must provide payments
to be made at least as rapidly as those made prior to the
Participant's death.
e) Minimum Current Value: At its discretion, Aetna may require
a minimum initial Current Value for election of this option.
If after election of this option the Current Value is
insufficient to make a scheduled ECO payment, Aetna will
distribute the entire balance of the Individual Account(s).
f) Distribution Date: The Participant shall specify an annual
distribution date. The earliest date is the first day of the
calendar year in which he or she attains age 70 1/2. For a
spouse Beneficiary electing ECO after the Participant's
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death, the earliest date is the date of the Participant's
death. The first distribution date may be the 15th of any
month, or such other date as Aetna may designate or allow.
Subsequent distributions will be made on the anniversary of
that date. At its option, Aetna may allow payments to be
made more frequently than annually.
g) Election and Revocation: The Participant may elect ECO by
submitting a completed and signed election form to Aetna's
Home Office. Once ECO is elected, the Participant may revoke
it by submitting a written request to Aetna at its Home
Office. Any revocation will apply only to amounts not yet
paid. ECO may be elected only once per Individual Account.
For Plans subject to ERISA, see Section VI.
4.03 Systematic Withdrawal Option:
a) With the Systematic Withdrawal Option (SWO) a portion of the
Individual Account(s) Current Value is automatically
distributed each year without incurring a Withdrawal Fee. A
SWO payment will be calculated on the Individual Account(s)
Current Value. Each payment will be withdrawn from the
Individual Account(s) in the same proportion as assets are
held in the Funds, the GA Account, and the Fixed Plus
Account on the date the payment is made. SWO payments may
not be elected if a loan is outstanding under an Individual
Account.
b) Payments under SWO will comply with the incidental death
benefit test set forth in Code Section 401(a)(9).
c) Distribution Amounts: The Participant may elect one of the
three payment methods described below. These calculations
may be changed as necessary to comply with the Code minimum
distribution rules. If joint life expectancy is elected, the
Beneficiary under SWO must be the same as the Beneficiary of
any death benefits.
1) Specified Payment: Payments of a designated annual
dollar amount. The annual amount may not be greater
than the percentage of the Current Value at time of
election as shown on Contract Schedule I. This amount
will remain constant unless a higher amount is
required under Code minimum distribution rules. Each
year that the specified payment is in effect, Aetna
will calculate the minimum required distribution by
dividing the Individual Account(s) Current Value as of
December 31 of the year prior to the payment year by a
life expectancy factor, and distribute this amount if
it is larger than the specified payment.
2) Specified Period: Payments are made over a period of
time. The number of years selected may not be less
than the number of years shown on Contract Schedule I,
unless otherwise required by Code minimum distribution
rules. The maximum specified period will be limited by
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the life expectancy factor. The amount paid each year
is calculated by dividing the Individual Account(s)
Current Value as of December 31 of the prior year by
the number of payment years remaining.
3) Specified Percentage: Payments made as a specified
percentage of the Individual Account. The specified
percentage chosen cannot be greater than as shown on
Contract Schedule I. The Participant may change the
specified percentage elected every six months. Each
annual distribution is determined by multiplying the
Individual Account(s) Current Value by the percentage
chosen. The value to be used in this calculation is
the value on the December 31st prior to the year for
which the payment is being made. For payments made
more often than annually, the annual payment result
(calculated above) is divided by the number of
payments due each year. Payments will be made each
year until the year the Participant attains age 70
1/2.
a) Life Expectancy Factor: For the Participant, the life
expectancy factor for the initial distribution year is
either single life or joint life expectancy as elected by
the Participant, based on tables in Section 401(a)(9) of the
Code or related regulations. For a spouse Beneficiary, only
a single life expectancy is available. With each subsequent
year, the life expectancy factor will be the life expectancy
factor for the initial distribution year, reduced by one.
These calculations may be changed as necessary to comply
with the Code minimum distribution rules. If the joint life
expectancy is selected and the Participant or the
Beneficiary dies on or after the required beginning date for
minimum distributions to the Participant, the joint life
expectancy factor will continue to be reduced by one for
each distribution year. Payments will continue unless the
survivor elects an alternate payment mode. Any payment mode
elected by the Beneficiary must provide payments to be made
at least as rapidly as those made prior to the Participant's
death.
If the Participant dies before the required beginning date
for minimum distributions, SWO payments will cease and the
Beneficiary may claim the death benefit in accordance with
the terms of this Contract. If the Beneficiary is not the
Participant's spouse, the entire death benefit must be
either applied to an Annuity option within one (1) year of
the Participant's death, or be paid within five (5) years of
the Participant's death. If the Beneficiary is the
Participant's spouse, the distribution is not required to
begin earlier than when the Participant would have attained
age 70 1/2.
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If joint life expectancy is elected and the Beneficiary dies
before the required beginning date for minimum distributions
to the Participant, payments to the Participant will
continue to be based on joint life expectancy reduced by one
for each distribution year.
e) Minimum Current Value: At its discretion, Aetna may require
a minimum initial Current Value for election of this option.
If after election of this option, the Current Value is
insufficient to make a scheduled SWO payment, Aetna will
distribute the entire balance of the Individual Account.
f) Distribution Date: The Participant or spouse Beneficiary,
shall specify the initial distribution date. The earliest
date is the first day of the calendar year in which the
Participant attains age 59 1/2, or age 55, if separated from
service with the Contract Holder at or after age 55. SWO
payments will be made monthly, quarterly, semi-annually or
annually on the 15th of any month, or such other date as
Aetna may designate or allow. If payments are made more
frequently than annually, the annual amount payable each
year is divided by the number of payments due per year. At
its discretion Aetna may require a minimum initial payment
amount.
Election and Revocation: The Participant may elect SWO by
submitting a completed and signed election form to Aetna's
Home Office. Once SWO is elected, the Participant may revoke
it by submitting a written request to Aetna's Home Office.
Any revocation will apply only to amounts not yet paid.
Generally, SWO may be elected only once, however, if SWO is
elected and then revoked before the date distributions were
required to begin under Code Section 401(a)(9), SWO may be
elected on behalf of a spouse Beneficiary after the death of
the Participant. For Plans subject to ERISA, see Section VI.
V. ANNUITY PROVISIONS
______________________________________________________________________________
5.01 Choices:
a) The Participant may elect an Annuity option by telling Aetna
to pay all or any portion of the Individual Account(s)
Current Value (minus any applicable premium tax if not
previously deducted) as a premium for an Annuity under
option 2, 3, or 4 (See 5.08). Any election of an Annuity
option must comply with the minimum distribution
requirements of Code Section 401(a)(9), including the
incidental death benefit rule, and the regulations
thereunder. This restriction does not apply if option 4 is
chosen and the second Annuitant is the spouse of the
Participant. Payments may be made only to the Participant,
or if the Participant has died, to the Beneficiary. For
Plans subject to ERISA, see Section VI.
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b) Generally, the first Annuity payment must be made by April 1
of the calendar year following the year in which the
Participant turns age 70 1/2 or such later date as may be
allowed under federal law or regulations (see 3.12). For
distributions taken in a lump sum, see Withdrawal Value
(3.14).
When an Annuity option is chosen the Participant must
designate whether the Annuity will be fixed or variable and
whether the underlying investment will be:
1) The General Account;
2) One or more of the available Fund(s); or
3) A combination of (1) and (2).
If a Fixed Annuity is chosen, the Annuity purchase rate for
the option chosen reflects at least the minimum guaranteed
interest rate (See Contract Schedule II), but may reflect a
higher interest rate.
If a Variable Annuity is chosen, the initial Annuity payment
for the option chosen reflects the assumed annual net return
rate elected (See Contract Schedule II).
c) Payments will be made on a monthly basis unless the
Participant requests otherwise.
d) Once elected, an Annuity option may not be revoked, except
for option 2 when elected on a variable basis.
5.02 Terms of Annuity Options:
a) No choice of any Annuity option may be made if the first
payment would be less than $20 or if the total payments in a
year would be less than $100.
b) For purposes of calculating the guaranteed first payment of
a Variable Annuity or the payments for a Fixed Annuity, the
Annuitant's and second Annuitant's adjusted age will be
used. The Annuitant's and second Annuitant's adjusted age is
his or her age as of the birthday closest to the Annuity
commencement date reduced by one year for Annuity
commencement dates occurring during the period of time from
July 1, 1992 through December 31, 1999. The Annuitant's and
second Annuitant's age will be reduced by two years for
Annuity commencement dates occurring during the period of
time from January 1, 2000 through December 31, 2009. The
Annuitant's and second Annuitant's age will be reduced by
one additional year for Annuity commencement dates occurring
in each succeeding decade.
The Annuity rates for options 3 and 4 are based on mortality
from 1983 Table a.
c) Assumed annual net return rate is the interest rate used to
determine the amount of the first Annuity payment under a
Variable Annuity. The Separate Account must earn this rate
plus enough to cover the mortality and expense risks charges
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(which may include profit) and administrative charges if
future Variable Annuity payments are to remain level.
5.03 Annuity Payments to Participant:
In no event may any payments to the Participant under any Annuity
option extend beyond:
a) The life of the Participant;
b) The lives of the Participant and the
Beneficiary;
c) A period certain greater than the Participant's
life expectancy according to regulations under
Code Section 401(a)(9), determined as of the
date payments are to commence; or
d) A period certain greater than the life
expectancies of the Participant and the
Beneficiary according to regulations under Code
Section 401(a)(9) determined as of the date
payments are to begin.
5.04 Death Provision:
When an Annuitant dies under options 3 and 4, the present value of
any remaining guaranteed payments will be paid in one sum to the
Beneficiary or upon election of the Beneficiary, any remaining
payments will continue to the Beneficiary. If a Beneficiary dies
while receiving Annuity payments, the present value of any
remaining payments will be paid in one lump sum to the
Beneficiary's estate. The interest rate used to determine the
present value for a lump sum payment will be the rate used to
determine the first Annuity payment.
In no event may any payments to the Beneficiary under an Annuity
option extend beyond:
a) The life of the Beneficiary determined as of the date
payments are to commence; or
b) Any certain period greater than the Beneficiary's life
expectancy as determined by regulations under Code Section
401(a)(9) as of the date payments are to begin.
However, if a Beneficiary dies while under option 1 or while
receiving Annuity payments, the present value of any remaining
payments will be paid in one lump sum to the estate of the
Beneficiary. The interest rate used to determine the first payment
will be used to calculate the present value.
5.05 Fund Annuity Units:
The number of Fund(s) Annuity units is based on the amount of the
first Variable Annuity payment which is equal to:
a) The portion of the Current Value including any applicable
MVA (see 3.08) or premium tax, applied to pay a Variable
Annuity; divided by
b) 1,000; multiplied by
c) The payment rate for the option chosen.
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Such amount, or portion, of the variable payment will be divided
by the appropriate Fund(s) Annuity unit value (See 5.06) on the
tenth Valuation Period before the due date of the first payment to
determine the number of each Fund Annuity units. The number of
each Fund Annuity units remains fixed. Each future payment is
equal to the sum of the products of each Fund Annuity unit value
multiplied by the appropriate number of units. The Fund Annuity
unit value on the tenth Valuation Period prior to the due date of
the payment is used.
5.06 Fund Annuity Unit Value:
For any Valuation Period, a Fund(s) Annuity unit value is equal
to:
a) The value for the previous Period; multiplied by
b) The Annuity net return factor(s) (See 5.07) for the period;
multiplied by
c) A factor to reflect the assumed annual net return rate (See
Contract Schedule II).
The dollar value of a Fund Annuity unit and Annuity payments may
go up or down due to investment gain or loss.
Payments shall not be changed due to changes in the mortality or
expense results or administrative charges.
5.07 Fund Annuity Net Return Factor:
The Annuity net return factor(s) is used to compute all Separate
Account Annuity payments for any Fund.
The Annuity net return factor(s) for each Fund is equal to
1.0000000 plus the net return Rate.
The net return rate is equal to:
a) The value of the shares of the Fund held by the Separate
Account at the end of a Valuation Period; minus
b) The value of the shares of the Fund held by the Separate
Account at the start of the Valuation Period; plus or minus
c) Taxes (or reserves for taxes) on the Separate Account (if
any);
d) Divided by the total value of the Fund(s) record units and
Fund(s) Annuity units of the Separate Account at the start
of the Valuation Period; minus
e) Minus a daily charge for Annuity mortality and expense
risks, which may include profit, and a daily administrative
charge (at the annual rate as shown on Contract Schedule
II).
A net return rate may be more or less than 0%.
The value of a share of the Fund is equal to the net assets of the
Fund divided by the number of shares outstanding.
5.08 Annuity Options:
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The Participant may direct Aetna to make payments according to one
of the following options, subject to Section VI.
Option 1 -- Payments of Interest on Sum Left with Aetna -- This
option may be used only by the Beneficiary when the Participant
dies before Aetna has started paying an Annuity. A portion or all
of the sum paid upon death may be held under this option and will
be held in the General Account of Aetna at interest. The
Beneficiary, may later tell Aetna to:
a) Pay a portion or all of the sum held by Aetna; or
b) Apply a portion or all of the sum held by Aetna to any
Annuity option below.
If the Beneficiary is the Participant's surviving spouse, the
lump-sum payment may be deferred to a date not later than when the
Participant would have attained age 70 1/2.
If the Beneficiary is not a spouse, the Beneficiary must tell
Aetna to pay the full sum within 5 years after the death of the
Participant.
Option 2 -- Payments for a Stated Period of Time -- An Annuity
will be paid for the number of years chosen (See Contract Schedule
II).
If payments for this option are made under a Variable Annuity, the
present value of any remaining payments may be withdrawn at any
time. If a withdrawal is requested prior to the minimum number of
years specified on Contract Schedule II, it will be subject to any
Withdrawal Fee, if applicable (See Contract Schedule I).
Option 3 -- Life Income -- An Annuity will be paid for the life of
the Annuitant. Aetna may also guarantee payments for 60, 120, 180,
or 240 months if so directed by the Participant.
Option 4 -- Life Income Based Upon the Lives of Two Annuitants --
An Annuity will be paid during the lives of the Annuitant and a
second Annuitant. Payments will continue until both Annuitants
have died. When this option is chosen, a choice of the following
must be made:
a) 100% of the payment to continue after the first death;
b) 66 2/3% of the payment to continue after the first death;
c) 50% of the payment to continue after the first death;
d) Payments for a minimum of 120 months, with 100% of the
payment to continue after the first death; or
e) 100% of the payment to continue at the death of the second
Annuitant and 50% of the payment to continue at the death of
the Annuitant.
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Other Options -- Aetna may make other options available as allowed
by the laws of the state in which this Contract is delivered.
VI. QUALIFIED JOINT AND SURVIVOR AND PRERETIREMENT SURVIVOR
ANNUITIES
6.01 ERISA Requirements:
Notwithstanding any other provision of the Plan or this Contract,
if the Plan is subject to ERISA:
a) The Individual Account(s) Adjusted Current Value available
for distribution shall be payable to a married Participant
in the form of a "Qualified Joint and Survivor Annuity," in
accordance with Section 205 of ERISA, if the Participant
does not die before the commencement of retirement benefit
payments. A Qualified Joint and Survivor Annuity is an
Annuity payable for the joint lives of the Participant and
spouse with 50% of the payment to continue to the surviving
spouse after the Participant's death.
b) The Individual Account(s) Adjusted Current Value shall be
payable to the surviving spouse of a married Participant in
the form of a "Qualified Preretirement Survivor Annuity," in
accordance with Section 205 of ERISA, if the Participant
dies before the commencement of retirement benefit payments.
A Qualified Preretirement Survivor Annuity is an Annuity
payable for the life of the surviving spouse which can be
purchased by 50% of the Participant's Individual Account(s)
Adjusted Current Value.
6.02 Waiver and Spousal Consent:
a) the Participant may waive the Qualified Joint and Survivor
Annuity and/or the Qualified Preretirement Survivor Annuity,
in accordance with Section 205 of ERISA, and have benefits
paid in some other form permitted by the Contract subject,
however, to written spousal consent, made in accordance with
Section 205 of ERISA.
b) Pursuant to Section 205 of ERISA, for married Participants,
the spouse must give written consent to the use of the
Individual Account(s) Current Value available for
distribution as security for a loan under the Contract.
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OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Years Guaranteed Monthly Quarterly Semi-Annual
Rate Payment Payment AnnualPayment
Payment
5 3.00% $17.91 $53.59 $106.78$211.99
6 3.00% 15.14 45.30 90.27 179.22
7 3.00% 13.16 39.39 78.49 155.83
8 3.00% 11.68 34.96 69.66 138.31
9 3.00% 10.53 31.52 62.81 124.69
10 3.00% 9.61 28.77 57.33 113.82
11 3.00% 8.86 26.52 52.85 104.93
12 3.00% 8.24 24.65 49.13 97.54
13 3.00% 7.71 23.08 45.98 91.29
14 3.00% 7.26 21.73 43.29 85.95
15 3.00% 6.87 20.56 40.96 81.33
16 3.00% 6.53 19.54 38.93 77.29
17 3.00% 6.23 18.64 37.14 73.74
18 3.00% 5.96 17.84 35.56 70.59
19 3.00% 5.73 17.13 34.14 67.78
20 3.00% 5.51 16.50 32.87 65.26
21 3.00% 5.32 15.92 31.72 62.98
22 3.00% 5.15 15.40 30.68 60.92
23 3.00% 4.99 14.92 29.74 59.04
24 3.00% 4.84 14.49 28.88 57.33
25 3.00% 4.71 14.09 28.08 55.76
26 3.00% 4.59 13.73 27.36 54.31
27 3.00% 4.47 13.39 26.68 52.97
28 3.00% 4.37 13.08 26.06 51.74
29 3.00% 4.27 12.79 25.49 50.60
30 3.00% 4.18 12.52 24.95 49.53
<PAGE> 55
<PAGE>
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Years Monthly Quarterly Semi- Annual
Payment Payment Annual Payment
Payment
5 $18.12 $54.19 $107.92 $213.99
6 15.35 45.92 91.44 181.32
7 13.38 40.01 79.69 158.01
8 11.90 35.59 70.88 140.56
9 10.75 32.16 64.05 127.00
10 9.83 29.42 58.59 116.18
11 9.09 27.18 54.13 107.34
12 8.46 25.32 50.42 99.98
13 7.94 23.75 47.29 93.78
14 7.49 22.40 44.62 88.47
15 7.10 21.24 42.31 83.89
16 6.76 20.23 40.29 79.89
17 6.47 19.34 38.51 76.37
18 6.20 18.55 36.94 73.25
19 5.97 17.85 35.54 70.47
20 5.75 17.22 34.28 67.98
21 5.56 16.65 33.15 65.74
22 5.39 16.13 32.13 63.70
23 5.24 15.66 31.19 61.85
24 5.09 15.24 30.34 60.17
25 4.96 14.85 29.56 58.62
26 4.84 14.49 28.85 57.20
27 4.73 14.15 28.19 55.90
28 4.63 13.85 27.58 54.69
29 4.53 13.57 27.02 53.57
30 4.45 13.30 26.49 52.53
<PAGE> 56
<PAGE>
OPTION 2
Payments for a Stated Period of Time
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate Rate of 5.0%
Years Monthly Quarterly Semi- Annual
Payment Payment Annual Payment
Payment
5 $18.74 $56.00 $111.33 $219.98
6 15.99 47.77 94.96 187.64
7 14.02 41.90 83.30 164.59
8 12.56 37.52 74.58 147.35
9 11.42 34.11 67.81 133.99
10 10.51 31.40 62.42 123.34
11 9.77 29.19 58.03 114.66
12 9.16 27.36 54.38 107.45
13 8.64 25.81 51.31 101.39
14 8.20 24.50 48.69 96.21
15 7.82 23.36 46.44 91.75
16 7.49 22.37 44.47 87.88
17 7.20 21.51 42.75 84.48
18 6.94 20.74 41.23 81.47
19 6.71 20.06 39.88 78.80
20 6.51 19.46 38.68 76.42
21 6.33 18.91 37.59 74.28
22 6.17 18.42 36.62 72.35
23 6.02 17.98 35.73 70.61
24 5.88 17.57 34.93 69.02
25 5.76 17.20 34.20 67.57
26 5.65 16.87 33.53 66.25
27 5.54 16.56 32.92 65.04
28 5.45 16.28 32.35 63.93
29 5.36 16.01 31.83 62.90
30 5.28 15.77 31.35 61.95
<PAGE> 57
<PAGE>
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
Adjusted None 60 120 180240
Age of
Annuitant
50 $4.05 $4.05 $4.03 $3.99$3.93
51 4.12 4.11 4.09 4.05 3.99
52 4.19 4.19 4.16 4.11 4.04
53 4.27 4.26 4.23 4.18 4.10
54 4.35 4.34 4.31 4.25 4.16
55 4.44 4.42 4.39 4.32 4.22
56 4.53 4.51 4.47 4.40 4.29
57 4.62 4.61 4.56 4.48 4.35
58 4.72 4.71 4.65 4.56 4.42
59 4.83 4.81 4.75 4.64 4.49
60 4.95 4.93 4.86 4.73 4.55
61 5.07 5.05 5.97 4.83 4.62
62 5.20 5.17 5.08 4.92 4.69
63 5.34 5.31 5.20 5.02 4.76
64 5.49 5.45 5.33 5.12 4.83
65 5.65 5.61 5.47 5.22 4.89
66 5.82 5.77 5.61 5.33 4.96
67 6.01 5.94 5.75 5.44 5.02
68 6.20 6.13 5.91 5.54 5.08
69 6.41 6.33 6.07 5.65 5.14
70 6.64 6.54 6.23 5.76 5.19
71 6.88 6.76 6.41 5.86 5.24
72 7.14 7.00 6.59 5.97 5.28
73 7.43 7.26 6.77 6.06 5.32
74 7.73 7.53 6.96 6.16 5.35
75 8.06 7.82 7.14 6.25 5.38
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 58
<PAGE>
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Months
Adjusted None 60 120 180240
Age of
Annuitant
50 $4.34 $4.34 $4.31 $4.27$4.22
51 4.41 4.40 4.38 4.33 4.27
52 4.48 4.47 4.45 4.40 4.32
53 4.56 4.55 4.52 4.46 4.38
54 4.64 4.63 4.59 4.53 4.44
55 4.72 4.71 4.67 4.60 4.50
56 4.81 4.80 4.75 4.67 4.56
57 4.91 4.89 4.84 4.75 4.62
58 5.01 4.99 4.93 4.83 4.69
59 5.12 5.10 5.03 4.92 4.75
60 5.23 5.21 5.13 5.00 4.82
61 5.36 5.33 5.24 5.09 4.88
62 5.49 5.45 5.35 5.19 4.95
63 5.63 5.59 5.47 5.28 5.02
64 5.78 5.73 5.60 5.38 5.08
65 5.94 5.89 5.73 5.48 5.15
66 6.11 6.05 5.87 5.58 5.21
67 6.29 6.22 6.02 5.69 5.27
68 6.49 6.41 6.17 5.79 5.33
69 6.70 6.60 6.33 5.90 5.38
70 6.92 6.81 6.49 6.00 5.43
71 7.17 7.04 6.66 6.10 5.48
72 7.43 7.27 6.84 6.20 5.52
73 7.71 7.53 7.02 6.30 5.55
74 8.02 7.80 7.20 6.39 5.59
75 8.35 8.08 7.38 6.48 5.62
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 59
<PAGE>
OPTION 3
Life Income
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Payments Guaranteed for a Stated Period of Months
Adjusted None 60 120 180240
Age of
Annuitant
50 $5.26 $5.25 $5.22 $5.17$5.11
51 5.33 5.32 5.28 5.23 5.15
52 5.40 5.38 5.34 5.29 5.20
53 5.47 5.45 5.41 5.35 5.26
54 5.54 5.53 5.48 5.41 5.31
55 5.63 5.61 5.56 5.47 5.36
56 5.71 5.69 5.63 5.54 5.42
57 5.80 5.78 5.72 5.61 5.47
58 5.90 5.88 5.81 5.69 5.53
59 6.01 5.98 5.90 5.77 5.59
60 6.12 6.09 6.00 5.85 5.65
61 6.24 6.21 6.10 6.93 5.71
62 6.37 6.33 6.21 6.02 5.77
63 6.51 6.46 6.33 6.11 5.83
64 6.66 6.60 6.45 6.20 5.89
65 6.82 6.75 6.57 6.30 5.95
66 6.99 6.91 6.71 6.39 6.01
67 7.17 7.08 6.85 6.49 6.06
68 7.36 7.27 6.99 6.59 6.12
69 7.57 7.46 7.15 6.69 6.17
70 7.80 7.67 7.30 6.78 6.21
71 8.05 7.89 7.47 6.88 6.25
72 8.31 8.13 7.64 6.97 6.29
73 8.59 8.38 7.81 7.06 6.33
74 8.90 8.64 7.99 7.15 6.36
75 9.23 8.93 8.16 7.23 6.38
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 60
<PAGE>
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.0%
Payments Guaranteed for a Stated Period of Months
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d 4e
55 50 $3.69 $4.05 $4.27 $3.69 $4.03
55 55 3.88 4.25 4.47 3.87 4.14
55 60 4.06 4.47 4.71 4.06 4.20
60 55 3.99 4.44 4.71 3.98 4.42
60 60 4.24 4.71 4.99 4.23 4.57
60 65 4.49 5.01 5.32 4.48 4.64
65 60 4.38 4.97 5.32 4.38 4.93
65 65 4.72 5.33 5.70 4.71 5.14
65 70 5.07 5.75 6.17 5.05 5.26
70 65 4.93 5.68 6.15 4.91 5.66
70 70 5.40 6.21 6.70 5.36 5.96
70 75 5.89 6.82 7.40 5.81 6.12
75 70 5.69 6.68 7.32 5.62 6.67
75 75 6.37 7.45 8.15 6.23 7.12
75 80 7.07 8.34 9.16 6.78 7.36
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 61
<PAGE>
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d 4e
55 50 $3.97 $4.35 $4.56 $3.97 $4.31
55 55 4.16 4.54 4.76 4.15 4.42
55 60 4.27 4.73 5.00 4.26 4.48
60 55 4.27 4.73 5.00 4.26 4.70
60 60 4.51 4.99 5.27 4.50 4.84
60 65 4.66 5.25 5.61 4.65 4.93
65 60 4.66 5.25 5.61 4.65 5.22
65 65 4.99 5.61 5.99 4.98 5.42
65 70 5.19 5.97 6.44 5.17 5.54
70 65 5.19 5.97 6.44 5.17 5.93
70 70 5.67 6.49 6.99 5.62 6.23
70 75 5.95 6.96 7.61 5.87 6.40
75 70 5.95 6.96 7.61 5.87 6.95
75 75 6.64 7.73 8.43 6.48 7.40
75 80 7.04 8.39 9.29 6.79 7.64
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 62
<PAGE>
OPTION 4
Life Income for Two Payees
Amount of First Monthly Payment for Each $1,000
After Deduction of any Charge for Premium Taxes
Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Adjusted Ages
Annuitant Second Option Option Option Option Option
Annuitant 4a 4b 4c 4d 4e
55 50 $4.88 $5.26 $5.48 $4.88 $5.23
55 55 5.04 5.44 5.66 5.04 5.32
55 60 5.15 5.63 5.91 5.14 5.38
60 55 5.15 5.63 5.91 5.14 5.59
60 60 5.37 5.87 6.16 5.37 5.72
60 65 5.52 6.14 6.51 5.51 5.80
65 60 5.52 6.14 6.51 5.51 6.10
65 65 5.83 6.49 6.87 5.82 6.29
65 70 6.04 6.84 7.34 6.00 6.41
70 65 6.04 6.84 7.34 6.00 6.81
70 70 6.49 7.35 7.87 6.44 7.08
70 75 6.77 7.84 8.51 6.68 7.25
75 70 6.77 7.84 8.51 6.68 7.81
75 75 7.45 8.60 9.33 7.27 8.25
75 80 7.86 9.28 10.20 7.57 8.49
Rates are based on mortality from 1983 Table a. The rates do not differ by
sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
<PAGE> 63
<PAGE>
Aetna Life Insurance and Annuity Company
TRANSFER CREDIT ENDORSEMENT
The Contract or Certificate is hereby endorsed as follows:
Add the following statement to the end of Section 3.02 entitled Net
Contribution(s):
Transferred Assets are the value of prior contributions into an existing Plan
which are deposited into this Contract as of the date the amount is received
in good order by Aetna. Transferred Assets, less any premium tax, will be
allocated to Participant Individual Accounts in amounts authorized by the
Participant.
Where Aetna is the exclusive 403(b) Plan provider, Aetna will apply a Transfer
Credit equal to [2%] of Transferred Assets deposited into the Contract and
allocated to Individual Accounts. The Transfer Credit amount is calculated as
of the one year anniversary of a Participant's first Net Contribution to the
Contract. The calculation for any Transfer Credit amount will be based on the
total amount of Transferred Assets remaining in Individual Accounts as of the
calculation date.
The Transfer Credit amount will be allocated to the Fixed Plus Account. The
amount will include the Transfer Credit plus any interest that would have
accrued had the Transfer Credit actually been deposited into the Fixed Plus
Account on the first business day of the calendar month following it's
calculation.
Transfer Credit will not be applied to assets transferred into the Contract
from existing Aetna Contracts. Only Net Contributions not previously held by
Aetna Life Insurance and Annuity Company are eligible for Transfer Credit.
Endorsed and made a part of the Contract or Certificate on the effective date
of the Contract.
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<PAGE>
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<PAGE> 65
<PAGE>
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<PAGE>
[Aetna Logo]
Aetna Life Insurance and Annuity Compan
Home Office: 151 Farmington Avenue
Hartford, Connecticut 06156
(800) 525-4225
Certificate of Group Annuity Coverage
ALL PAYMENTS AND VALUES PROVIDED BY THE CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO
FIXED DOLLAR AMOUNT. THIS CERTIFICATE CONTAINS A MARKET VALUE ADJUSTMENT
FORMULA. APPLICATION OF A MARKET VALUE ADJUSTMENT MAY RESULT IN EITHER AN
INCREASE OR DECREASE IN THE CURRENT VALUE. THE MARKET VALUE ADJUSTMENT
FORMULA DOES NOT APPLY TO A GUARANTEED TERM AT THE TIME OF ITS MATURITY.
<PAGE> 67
<PAGE>
Exhibit 99-B4.5
<PAGE> 1
<PAGE>
Aetna Life Insurance and Annuity Company
ENDORSEMENT
The Contract and Certificate are hereby endorsed as follows:
1. This endorsement applies only to Individual Accounts established with Net
Contributions from exchanged Aetna contracts.
2. The Guaranteed Interest Rate section of the Specifications is replaced
with the following:
There is a guaranteed interest rate for Contributions(s) held in the Fixed
Plus Account, the Fixed Account and the GA Account (see Contract Schedule I).
3. Add the following section to Contract Schedule I:
Fixed Account
- ------------------------------------------------------------------------------
Minimum Guaranteed Interest Rate:
[3%] (effective annual rate of return).
4. Replace the section entitled Separate Account and GA Account under
Contract Schedule I with the following:
Separate Account, Fixed Account and GA Account
- -----------------------------------------------------------------------------
Withdrawal Fee:
For each withdrawal from an Individual Account, the Withdrawal Fee
will vary according to the number of purchase payment cycles
completed for the Individual Account being surrendered. The
number and amount of purchase payments to be made in a cycle is
chosen by the Participant. A purchase payment cycle is completed
when this chosen number and amount of purchase payments have been
made. The number of purchase payment cycles completed may not be
greater than the number of whole years since the Individual
Account was established under this or any other exchanged Aetna
contract. The number of purchase payment cycles completed equals
the total number completed under this contract and under other
Aetna contracts from which Net Contributions to this Contract have
been transferred from (exchanged contracts). For each withdrawal,
the fee will be as follows:
Number of Purchase Payment Cycles Completed Withdrawal
Fee
Fewer than 5 5%
5 or more, but fewer than 7 4%
7 or more, but fewer than 9 3%
<PAGE> 2
<PAGE>
9 or more, but fewer than 10 2%
10 or more 0%
<PAGE> 3
<PAGE>
For each withdrawal from an Individual Account maintained pursuant
to a lump-sum payment, the Withdrawal Fee will vary according to the period of
time between the Effective Date of the Individual Account under your previous
exchanged Aetna contract and the date of withdrawal as follows:
If Period of Time is Withdrawal
Fee
Fewer than 5 years 5%
5 or more, but fewer than 6 years 4%
6 or more, but fewer than 7 years 3%
7 or more, but fewer than 8 years 2%
8 or more, but fewer than 9 years 1%
9 or more years 0%
The withdrawal fee will not be deducted from any portion
of the Individual Account Current Value which is paid:
- Due to the Participant's death before Annuity payments
begin;
- Used to purchase Annuity benefits;
- Due to the election of the Estate Conservation Option (ECO)
or the Systematic Withdrawal Option (SWO) (see Section IV);
- In an amount equal to or less than [10%] of the Individual
Account Current Value, as part of the first partial
withdrawal request in a calendar year to a Participant who
is at least age 59 1/2 and less than 70 1/2. The Individual
Account Current Value is calculated as of the date the
partial withdrawal request is received in good order at
Aetna's Home Office. Any outstanding loans from the
Individual Account are excluded when calculating the
Individual Account Current Value. This provision does not
apply to partial withdrawal due to loan defaults made from
the Individual Account and does not apply to full withdrawal
requests. This provision may not be exercised if SWO is
elected;
- When the Individual Account(s) Current Value is [$3,500] or
less and no amount has been withdrawn, taken as a loan or
used to purchase Annuity benefits during the prior [12]
months;
- To relieve a Participant's "financial hardship," as may be
allowed for Annuity contracts under Section 403(b) of the
Code or other applicable Internal Revenue Service rules or
regulations; or
- On account of a Participant's separation from service. The
Contract Holder must submit documentation satisfactory to
Aetna to confirm that the Participant is no longer providing
services to the employer.
- The Withdrawal Fee will never exceed 8 1/2% of the total
Contributions made to the Individual Account.
<PAGE> 4
<PAGE>
5. Replace the section entitled Separate Account, GA Account, and the Fixed
Plus Account with the following:
Separate Account, GA Account, Fixed Account and Fixed Plus Account
- ------------------------------------------------------------------------------
Transfers:
An unlimited number of Transfers may be made during the
Accumulation Period.
Maintenance Fee:
An annual Maintenance Fee may be charged, as determined by the
value of total assets held by Aetna under this Contract and
other Aetna contracts of the same class, on each anniversary date
of this Contract. The Maintenance Fee may go up or down each year.
Where applicable, the Maintenance Fee will be charged for each
Participant in the Contract.
Total Assets Maintenance
Fee
Less than $ 500,000 $25.00
500,000 - 1,000,000 $25.00
1,000,001 - 5,000,000 $25.00
5,000,001 - 15,000,000 $25.00
Greater than 15,000,000 $25.00
Initial charges will be based on Aetna's estimated year end
asset level for the Contract Holder.
Systematic Withdrawal Option (SWO):
The Specified Payment or Specified Percentage may not be greater
than 20% of the Individual Account's Current Value at the time of
election. The Specified Period may not be less than 5 years.
Loan Interest Rate:
a) Plans subject to ERISA: a Loan Interest Rate is set on the
first business day of each month. For each loan, the initial
Loan Interest Rate is equal to the Monthly Average Corporates
for the calendar month beginning two months before the
calendar month in which the Loan Effective Date occurs. The
initial Loan Interest Rate is effective for a period of not
less than three months and not more than one year. The period
is specified in the loan agreement. For each period, the Loan
Interest Rate is adjusted if the new rate is at least [0.5%]
higher or lower than the previous rate. The Participant will
receive reasonable notification of any change to the Loan
Interest Rate.
b) Plans not subject to ERISA: [6%] on an annual basis.
See Section I. - DEFINITIONS for explanations.
<PAGE> 5
<PAGE>
6. Replace the section entitled Annuity Option 2 under Contract Schedule II
with the following:
Annuity Option 2:
For amounts invested in the Fixed Account, GA Account or one or
more of the Fund(s), the number of years must be at least [five
(5)] and not more than [thirty (30)] and the Annuity may be a
Fixed or Variable Annuity.
For amounts invested in the Fixed Plus Account, the number of
years must be at least [five (5)] and not more than [thirty (30)]
and the Annuity must be a Fixed Annuity.
7. Add the following Definition:
Fixed Account:
An accumulation option with a guaranteed minimum interest rate
shown on the Contract Schedule I. Aetna may credit a higher
rate which is not guaranteed.
8. Replace the definition entitled Current Value with the following:
Current Value:
For an Individual Account, the Current Value is the total of:
a) The amount, if any, in the Fixed Plus Account, with
interest earned to date;
b) The amount, if any, in the GA Account, with interest
earned to date;
c) The amount, if any in the Fixed Account, with interest
earned to date; and
d) The value of all Fund Record Units, if any, as of the
most recent Valuation Period; plus
e) Any amount due to experience credits; less
1 Any Maintenance Fee(s) due.
9. Replace the definition entitled Transfer with the following:
Transfer:
The movement of invested amounts among the available
Fund(s), the Fixed Plus Account, the Fixed Account and the
GA Account during the Accumulation Period.
10. Replace the section entitled Net Contributions with the following:
Net Contribution(s):
The Net Contribution equals the actual Contribution less any
applicable premium tax. Generally, Aetna will deduct the
premium tax when Annuity benefits are purchased (See Section
V). If Aetna determines that under applicable state law, it
must pay a premium tax when the Contribution is received, or
at any other time, it may deduct the tax at that time. The Net
Contribution(s) may be allocated among the following
investment options:
<PAGE> 6
<PAGE>
1 The Fixed Plus Account; and
2 The current Deposit Period(s) for Guaranteed Terms under
the GA Account; and
3 The Fund(s) in which the Separate Account invests.
The Fixed Account is an investment option available only for
Net Contributions previously allocated to the Fixed Account
under Aetna contracts that are exchanged into this Contract.
The Contract Holder must tell Aetna the percentage of all
Net Contributions to allocate to one or more of the
investment options. The Contract Holder or, if permitted by
the Contract Holder, the Participant may change the
allocation of future Net Contributions at any time, without
charge. Aetna reserves the right to require a minimum
Contribution amount per Individual Account.
11. Replace the section entitled Transfer(s) with the following:
Transfer(s):
Before an Annuity option is elected, all or any portion of the
Adjusted Current Value of the Individual Account may be
transferred from any Fund, or the GA Account:
1 To any other allowable Fund; or
2 To the Fixed Plus Account; or
3 To any Guaranteed Term of the GA Account with a different
classification available in the current Deposit Period.
No Transfers will be allowed into the Fixed Account.
Transfer requests can be submitted as a percentage or as a
dollar amount. Aetna may establish a minimum transfer amount.
Within a Guaranteed Term classification, the amount
transferred will be withdrawn from the oldest Deposit Period,
then from the next oldest, and so on until the amount
requested is satisfied.
Amounts applied to Guaranteed Terms of the GA Account may not
be transferred to the Funds, the Fixed Plus Account or to
another Guaranteed Term during the Deposit Period or 90 days
after the close of the Deposit Period except for Matured Term
Value(s) during the calendar month following the Term's
Maturity Date.
Transfers from Guaranteed Terms of the GA Account are subject
to the MVA provisions of 3.08.
Each Calendar year, 10% of the Current Value held in the Fixed
Account may be transferred to any Fund(s) and/or to the GA
Account's then-current Deposit Period. Such transfer will be
without charge and will not be allowed under an Annuity
<PAGE> 7
<PAGE>
Option. Transfers will be permitted to the Fixed Plus Account
without regard to these limitations. At its discretion, Aetna
may allow Contract Holders to transfer a larger percentage
and/or take multiple transfers in a calendar year. If Aetna
so allows, Aetna reserves the right to reinstate the transfer
limitations without notice.
During each rolling twelve (12) month period, up to 20% of the
Current Value held in the Fixed Plus Account may be
transferred to one or more of the Fund(s), and/or the GA
Account's then-current Deposit Period. The 20% limit is
reduced by any partial withdrawals, loans or amounts used to
purchase an Annuity during the twelve (12) month period. Aetna
reserves the right to include amounts paid under ECO and SWO
provisions for purposes of applying this 20% limit. This limit
is waived when the balance in the Fixed Plus Account is $1,000
or less on the date the Transfer request is received in good
order at Aetna's Home Office.
The Contract Holder, or Participant if authorized in writing
by the Contract Holder, may make an unlimited number of
Transfers during the Accumulation Period.
12. Replace the section entitled Notice to the Contract Holder with the
following:
Notice to the Contract Holder:
Each year, Aetna will notify the Contract Holder of:
1 The value of any amounts held in:
1) The Fixed Plus Account,
2) The GA Account,
3) The Fixed Account,
4) The Fund(s) for the Separate Account;
a) The number of any Fund record units;
1 The Fund record unit Value(s);
2 The Loan Account balance; and
3 The amount available for withdrawal.
This information will be as of a date no more than sixty (60)
days before the date of the notice.
13. Replace the section entitled Withdrawal Value with the following:
Withdrawal Value:
After deduction of the Maintenance Fee (if any), the amount
payable by Aetna upon the withdrawal of any portion of an
Individual Account from the Fund(s), the Fixed Account or the
GA Account shall be reduced by a Withdrawal Fee, if
applicable. The Withdrawal Fee will be in accordance with the
Withdrawal Fee table in Contract Schedule I.
<PAGE> 8
<PAGE>
No Withdrawal Fee is deducted from any portion of the Current
Value which is paid from the Fixed Plus Account.
For a partial or full withdrawal from any Individual Account,
Aetna must receive written direction from the Contract Holder
on a form acceptable to Aetna. If the Contract is subject to
ERISA, this direction must include certification that all of
the REA waiver and spousal consent requirements have been
satisfied. Aetna may defer payment of the withdrawal value
until appropriate Contract Holder certification is received.
14. Replace the section entitled Withdrawal Fee Applicable to Funds and GA
Account with the following:
Withdrawal Fee Applicable to Funds, the Fixed Account and GA Account:
A Withdrawal Fee (Deferred Sales Charge) may apply to withdrawals
from the GA Account, the Fixed Account and/or Funds. For each
withdrawal, the withdrawal fee will be determined as shown on
Contract Schedule I.
During each rolling 12-month period, up to 20% of the Current
Value in the Fixed Plus Account may be withdrawn as a partial
surrender. This 20% limit is reduced by any amount(s) transferred,
taken as a loan or used to purchase an Annuity during the 12 month
period. The 20% limit applicable to partial surrenders from the
Fixed Plus Account will be waived when the partial surrender is
due to one of the conditions set forth in Contract Schedule I. The
waiver will apply provided the partial surrender is taken pro-rata
from the Fixed Plus Account, the GA Account, and the Fund(s).
Aetna reserves the right to include amounts paid under the ECO and
SWO provisions for purposes of applying the 20% limit. However,
the SWO provision is not available if the Contract Holder on
behalf of the Participant requested a Fixed Plus Account Transfer
or surrender within the current 12 month period.
15. Replace the fourth sentence of the section entitled Reinstatement with
the following:
Amounts will be reinstated among the Fixed Plus Account, the GA Account,
the Fixed Account and/or the Fund(s) for the Separate Account in the
same proportion as they were at the time of withdrawal.
16. Replace a) under the section entitled Estate Conservation Option with
the following:
1 With the Estate Conservation Option (ECO) a portion of the
Individual Account Current Value is automatically surrendered
and distributed each year without incurring a Withdrawal Fee.
Each payment will be withdrawn from the Individual Account in
the same proportion as assets are held in the Funds, the GA
<PAGE> 9
<PAGE>
Account, the Fixed Account and the Fixed Plus Account on the
date the payment is made.
17. Replace a) under the section entitled Systematic Withdrawal Option with
the following:
2 With the Systematic Withdrawal Option (SWO) a portion of the
Individual Account Current Value is automatically distributed
each year without incurring a Withdrawal Fee. A SWO payment
will be calculated on the Individual Account's Current Value.
Each payment will be withdrawn from the Individual Account in
the same proportion as assets are held in the Funds, the GA
Account, the Fixed Account and the Fixed Plus Account on the
date the payment is made. SWO payments may not be elected if a
loan is outstanding under an Individual Account.
/s/
President
<PAGE> 10
<PAGE>
Exhibit 99-B4.6
<PAGE> 1
<PAGE>
Aetna Life Insurance Annuity Company
ENDORSEMENT
The Contract and Certificate are hereby endorsed as follows:
1. This endorsement applies only to Individual Accounts established with
Net Contributions from exchanged Aetna contracts.
2. The Guaranteed Interest Rate section of the Specifications is replaced
with the following:
There is a guaranteed interest rate for Contribution(s)held in the Fixed
Plus Account, the Fixed Account and the GA Account (see Contract
Schedule I).
3. Add the following section to Contract Schedule I:
Fixed Account
-------------------------------------------------------------
Minimum Guaranteed Interest Rate:
[3%] (effective annual rate of return).
4. Replace the section entitled Separate Account and GA Account under
Contract Schedule I with the following:
Separate Account, Fixed Account and GA Account
-------------------------------------------------------------
Withdrawal Fee:
For each withdrawal from an Individual Account, the Withdrawal
Fee will vary according to the number of purchase payment
cycles completed for the Individual Account being surrendered.
The number and amount of purchase payments to be made in a
cycle is chosen by the Participant, A purchase payment cycle
is completed when this chosen number and amount of purchase
payments have been made. The number of purchase payment
cycles completed may not be greater than the number of whole
years since the Individual Account was established under this
or any other exchanged Aetna contract. The number of purchase
payment cycles completed equals the total number completed
under this contract and under other Aetna contracts from which
Net Contributions to this Contract have been transferred from
(exchanged contracts). For each withdrawal, the fee will be
as follows:
Number of Purchase Payment Cycles Completed Withdrawal
Fee
Fewer than 5 5%
<PAGE> 2
<PAGE>
5 or more, but fewer than 7 4%
7 or more, but fewer than 9 3%
9 or more, but fewer than 10 2%
10 or more 0%
For each withdrawal from an Individual Account maintained
pursuant to a lump-sum payment, the Withdrawal Fee will vary
according to the period of time between the Effective Date of
the Individual Account under your previous exchanged Aetna
contract and the date of withdrawal as follows:
If Period of Time is Withdrawal
Fee
Fewer than 5 years 5%
5 or more, but fewer than 6 years 4%
6 or more, but fewer than 7 years 3%
7 or more, but fewer than 8 years 2%
8 or more, but fewer than 9 years 1%
9 or more years 0%
The withdrawal fee will not be deducted from any portion of
the Individual Account Current Value which is paid:
- Due to the Participants death before Annuity payments begin;
- Used to purchase Annuity benefits;
- Due to the election of the Estate Conservation Option (ECO)
or the Systematic Withdrawal Option (SWO) (See Section IV);
- In an amount equal to or less than [10%] of the Individual
Account Current Value, as part of the first partial
withdrawal request in a calendar year to a Participant who
is at least age 59 1/2 ad less than 70 1/2. The Individual
Account Current Value is calculated as of the date the
partial withdrawal request is received in good order at
Aetna's Home Office. Any outstanding loans from the
Individual Account are excluded when calculating the
Individual Account Current Value. This provision does not
apply to partial withdrawal due to loan defaults made from
the Individual Account and does not apply to full withdrawal
<PAGE> 3
<PAGE>
requests. This provision may not be exercised if SWO is
elected;
- When the Individual Account(s) Current Value is [$3,500] or
less and no amount has been withdrawn, taken as a loan or
used to purchase Annuity benefits during the prior [12]
months;
- To relieve a Participant's "financial hardship," as may be
allowed for Annuity contracts under Section 403(b) of the
Code or other applicable internal revenue Service rules or
regulations; or
- On account of a Participant's separation from service. The
Contract Holder must submit documentation satisfactory to
Aetna to confirm that the Participant is no longer providing
services to the employer.
- The Withdrawal Fee will never exceed 8 1/2% of the total
Contributions made to the Individual Account.
5. Replace the section entitled Separate Account, GA Account, and the Fixed
Plus Account with the following:
Separate Account, GA Account, Fixed Account and Fixed Plus Account
-------------------------------------------------------------
Transfers:
An unlimited number of Transfers may be made during the
Accumulation Period.
Maintenance Fee:
An annual Maintenance Fee may be charged, as determined by the
value of total assets held by Aetna under this Contract and
other Aetna contracts of the same class, on each anniversary
date of this Contract. the Maintenance Fee may go up or down
each year. Where applicable, the Maintenance Fee will be
charged for each Participant in the Contract.
Total Assets Maintenance
Fee
Less than $ 500,000 $25.00
500,000 - 1,000,000 $25.00
1,000,001 - 5,000,000 $25.00
5,000,001 - 15,000,000 $25.00
Greater than 15,000,000 $25.00
Initial charges will be based on Aetna's estimated year end
asset level for the Contract Holder.
Systematic Withdrawal Option (SWO):
<PAGE> 4
<PAGE>
The Specified Payment or Special Percentage may not be greater
than 20% of the Individual Account's Current Value at the time
of election. The Specified Period may not be less than 5
years.
Loan Interest Rate:
a) Plans subject to ERISA: a Loan Interest Rate is set on
the first business day of each month. For each loan, the
initial Loan Interest rate is equal to the Monthly
Average Corporates for the calendar month beginning two
months before the calendar month in which the Loan
Effective Date occurs. The initial Loan Interest Rate
is effective for a period of not less than three months
and not more than one year. The period is specified in
the loan agreement. For each period, the Loan Interest
Rate is adjusted if the new rate is at least [0.5%]
higher or lower than the previous rate. The Participant
will receive reasonable notification of any change of
the Loan Interest rate.
b) Plans not subject to ERISA: [6%] on an annual basis.
See Section I. - DEFINITIONS for explanations.
6. Replace the section entitled Annuity Option 2 under Contract Schedule II
with the following:
Annuity Option 2:
For amounts invested in the Fixed Account, GA Account or one or
more of the Fund(s), the number of years must be at least [five
(5)] and not more than [thirty (3))] and the Annuity may be a
Fixed or Variable Annuity.
For amounts invested in the Fixed Plus Account, the number of
years must be at least [five(5)] and not more than [thirty (30)]
and the Annuity must be a Fixed Annuity.
7. Add the following Definition:
Fixed Account:
An accumulation option with a guaranteed minimum interest rate
shown on the Contract Schedule I. Aetna may credit a higher
rate which is not guaranteed.
8. Replace the definition entitled Current Value with the following:
Current Value:
For an Individual Account, the Current Value is the total of:
<PAGE> 5
<PAGE>
a) The amount, if any, in the Fixed Plus Account, with interest
earned to date;
b) The amount, if any, in the GA Account, with interest earned to
date;
c) The amount if any in the Fixed Account, with interest earned
to date; and
d) The value of all Fund Record Units, if any, as of the most
recent Valuation Period; plus
e) Any amount due to experience credits; less
f) Any Maintenance Fee(s) due.
9. Replace the definition entitled Transfer with the following:
Transfer:
The movement of invested amounts among the available Fund(s), the
Fixed Plus Account, the Fixed Account and the GA Account during
the Accumulation Period.
10. Replace the section entitled Net Contributions with the following:
Net Contribution(s):
The Net Contribution equals the actual Contribution less any
applicable premium tax. Generally, Aetna will deduct the
premium tax when Annuity benefits are purchased (See Section
V). If Aetna determines that under applicable state law, it
must pay a premium tax when the Contribution is received, or
at any other time, it may deduct the tax at that time. The Net
contribution(s) may be allocated among the following
investment options:
a) The Fixed Plus Account; and
b) The current Deposit Period(s) for Guaranteed terms under
the GA Account; and
c) The Fund(s) in which the Separate Account invests.
The Fixed Account is an investment option available only for
Net Contributions previously allocated to the Fixed Account
under Aetna contracts that are exchanged into this Contract.
The Participant must tell Aetna the percentage of all Net
Contributions to allocate to one or more of the investment
options. The Participant may change the allocation of future
Net Contributions at any time, without charge. Aetna reserves
the right to require a minimum Contribution amount per
Individual Account.
11. Replace the section entitled Transfer(s) with the following:
Transfer(s):
<PAGE> 6
<PAGE>
Before an Annuity option is elected, all or any portion of the
Adjusted Current Value of the Individual Account may be
transferred from any Fund, or the GA Account:
a) To any other allowable Fund; or
b) To the Fixed Plus Account; or
c) To any Guaranteed Term of the GA Account with a
different classification available in the current
Deposit Period.
No Transfers will be allowed into the Fixed Account.
Transfer requests can be submitted as a percentage or as a
dollar amount. Aetna may establish a minimum transfer amount.
Within a Guaranteed Term classification, the amount
transferred will be withdrawn from the oldest Deposit Period,
then from the next oldest, and so on until the amount
requested is satisfied.
Amounts applied to Guaranteed Terms of the GA Account may not
be transferred to the Funds, the Fixed Plus Account or to
another Guaranteed Term during the Deposit Period or 90 days
after the close of the Deposit Period except for Matured Term
Value(s) during the calendar month following the Term's
Maturity Date.
Transfers from the Guaranteed Terms of the GA Account are
subject to the MVA provisions of 3.08.
Each Calendar year, 10% of the Current Value held in the Fixed
Account may be transferred to any Fund(s) and/or to the GA
Account's then-current Deposit Period. Such transfer will be
without charge and will not be allowed under the Annuity
Option. Transfers will be permitted to the Fixed Plus Account
without regard to these limitations. At its discretion, Aetna
may allow Contract Holders to transfer a larger percentage
and/or take multiple transfers in a calendar year. If Aetna
so allows, Aetna reserves the right to reinstate the transfer
limitations without notice.
During each rolling twelve (12) month period, up to 20% of the
Current Value held in the Fixed Plus Account may be
transferred to one or more of the Fund(s), and/or the GA
Account's then-current Deposit Period. The 20% limit is
reduced by any partial withdrawals, loans or amounts used to
purchase an Annuity during the twelve (12) month period. Aetna
reserves the right to include amounts paid under ECO and SWO
provisions for purposes of applying this 20% limit. This limit
is waived when the balance in the Fixed Plus Account is $1,000
or less on the date the Transfer request is received in good
order at Aetna's Home Office.
<PAGE> 7
<PAGE>
The Participant may make an unlimited number of Transfers
during the Accumulation Period.
12. Replace the section entitled Notice to the Participant with the
following:
Notice to the Participant:
Each year, Aetna will notify the Participant of:
a) The value of any amounts held in:
1) The Fixed Plus Account,
2) The GA Account,
3) The Fixed Account,
4) The Fund(s) for the Separate Account;
b) The number of any Fund record units;
c) The Fund record unit Value(s);
d) The Loan Account balance; and
e) The amount available for withdrawal.
This information will be as of a date no more than sixty (60)
days before the date of notice.
13. Replace the section entitled Withdrawal Value with the following:
Withdrawal Value:
After deduction of the Maintenance Fee (if any), the amount
payable by Aetna upon the withdrawal of any portion of an
Individual Account from the Fund(s), the Fixed Account or the
GA Account shall be reduced by a Withdrawal Fee, if
applicable. The Withdrawal fee will be in accordance with the
Withdrawal Fee table in Contract Schedule I.
No Withdrawal Fee is deducted form any portion of the Current
Value which is paid from the Fixed Plus Account.
For a partial or full withdrawal from any Individual Account,
Aetna must receive written directorion from the Participant on
a form acceptable to Aetna. Aetna may defer payment of the
withdrawal value until appropriate certification is received.
14. Replace the section entitled Withdrawal Fee Applicable to Funds and GA
Account with the following:
Withdrawal Fee Applicable to Funds, the Fixed Account and GA
Account:
A Withdrawal Fee (Deferred Sales Charge) may apply to
withdrawals from the GA Account, the Fixed Account and/or
<PAGE> 8
<PAGE>
Funds. For each withdrawal, the withdrawal fee will be
determined as shown on Contract Schedule I.
During each rolling 12-month period, up to 20% of the Current
Value in the Fixed Plus Account may be withdrawn as a partial
surrender. This 20% limit is reduced by any amount(s)
transferred, taken as a loan or used to purchase an Annuity
during the 12 month period. The 20% limit applicable to
partial surrenders form the Fixed Plus Account will be waived
when the partial surrender is due to one of the conditions set
forth in the Contract Schedule I. The waiver will apply
provided the partial surrender is taken pro-rata form the
Fixed Plus Account, the GA Account, and the Fund(s). Aetna
reserves the right to include amounts paid under the ECO and
SWO provisions for purposes of applying the 20% limit.
However, the SWO provision is not available if the Participant
requested a Fixed Plus Account Transfer or surrender within
the current 12 month period.
15. Replace the fourth sentence of the section entitled Reinstatement with
the following:
Amounts will be reinstated among the Fixed Plus Account, the
GA Account, the Fixed Account and/or Fund(s) for the Separate
Account in the same proportion as they were at the time of
withdrawal.
16. Replace a) under the section entitled Estate Conservation Option with
the following:
a) With the Estate Conservation Option (ECO) a portion of
the Individual Account Current Value is automatically
surrendered and distributed each year without incurring
a Withdrawal Fee. Each payment will be withdrawn form
the Individual Account in the same proportion as assets
are held in the Funds, the GA Account, the Fixed Account
and the Fixed Plus Account on the date the payment is
made.
17. Replace a) under the section entitled Systematic Withdrawal Option
with the following:
a) With the Systematic Withdrawal Option (SWO) a portion of
the Individual Account Current Value is automatically
distributed each year without incurring a Withdrawal
Fee. A SWO payment will be calculated on the Individual
Account's Current Value. Each payment will be withdrawn
from the Individual Account in the same proportion as
assets are held in the Funds, the GA Account, the Fixed
Account and the Fixed Plus Account on the date the
payment is made. SWO payments may not be elected if a
loan is outstanding under an Individual Account.
<PAGE> 9
<PAGE>
/s/ Daniel P. Kearney
President
<PAGE> 10
<PAGE>
Exhibit 99B4.7
<PAGE> 1
<PAGE>
ENDORSEMENT
The Contract and Certificate are hereby endorsed as
follows:
1. Replace "Code Section 403(b)" in Section 1.32 with "Code
Section 401(a)"
2. Add the following to Section 2.4:
c) Any payment(s) made under this Contract to other
than the Contract Holder must be in compliance with the
provisions of the waiver and spousal consent requirements
of Code Section 417, if applicable. At the time payment
is requested by the Contract Holder, Aetna will require
the Contract Holder to certify that the payment option is
elected in compliance with such requirements or that such
requirements do not apply, and that the distribution is
in accordance with the terms of the Plan.
3. Replace the third paragraph of Section 2.06 with the
following:
The Contract Holder may, by written direction to Aetna,
allow Participants to select the investment options of
the Employer Account and/or the Employee Account. No
distributions will be made from the Employer Account or
the Employee Account without the Contract Holder's and
Participant's written direction to Aetna, unless
otherwise directed by the Plan. Participants have no
rights to direct Aetna as to payments under the Contract
unless countersigned by the Contract Holder.
<PAGE> 2
<PAGE>
4. Replace b) under Section 2.06 with the following:
Waiver/Consent Requirements:
With respect to any distribution made from an Employee or
Employer Account, the Contract Holder must certify in
writing that all the appropriate waiver and spousal
consent requirements of Code Section 417 have been met
and that the distribution is in accordance with the terms
of the Plan.
5. Replace the first sentence of c) under Section 2.06 with
the following:
The Participant has a nonforfeitable right to the value
of his or her Employee Account pursuant to the terms of
the Plan as interpreted by the Contract Holder.
6. Replace Section 3.03 with the following:
The Plan or the Contract Holder shall have a
responsibility for determining and ensuring compliance
with the applicable limitations under Code Sections
401(a)(17), 401(k), 401(m), 402(g), 415 , 416 and any
other relevant Code provisions.
7. Replace Section 3.10 with the following:
Loans will not be permitted under Code Section 401(a)
Plans.
8. Replace b) under Section 3.11 with the following:
b) Generally, the distribution of benefits must begin
April 1 of the calendar year following the calendar year
in which the Participant attains age 70 1/2. However,
<PAGE> 3
<PAGE>
for a Participant who attained age 70 1/2 before January
1, 1988, the distribution of benefits must be made or
must begin no later than April 1 of the calendar year
following thecalendar yearin which theParticipant retires.
The above does not apply if the Contract Holder is a
governmental entity or a church. For Participants of
such an employer, the distribution of benefits must be
made or must begin not later than April 1 of the calendar
year following the calendar year in which the Participant
attains age 70 1/2 or retires, whichever occurs later.
9. Replace the last paragraph of Section 3.13 with the
following:
For a partial or full withdrawal from any Individual
Account, Aetna must receive written direction from the
Contract Holder on a form acceptable to Aetna. This
direction must include certification that all of the
waiver and spousal consent requirements of Code Section
417 have been satisfied or that such requirements do not
apply, and that the withdrawal is in accordance with the
terms of the Plan. Aetna may defer payment of the
withdrawal value until appropriate Contract Holder
certification is received.
10. Delete Section 3.14 in its entirety and renumber Sections
3.15 - 3.20 as 3.14 -319, respectively.
11. Delete the last three (3) paragraphs in c) under Section
4.02.
<PAGE> 4
<PAGE>
12. Replace g) under Section 4.02 with the following:
g) Election and Revocation: The Contract Holder may
elect ECO by submitting a completed and signed election
form to Aetna's Home Office. The Contract Holder must
certify in writing that the distribution complies with
the waiver and spousal consent requirements of Code
Section 417 or that such requirements do not apply, and
that the distribution is in accordance with the terms of
the Plan. Once ECO is elected, the Contract Holder may
revoke it by submitting a written request to Aetna at its
Home Office. Any revocation will apply only to amounts
not yet paid. ECO may be elected only once per
Participant.
13. Replace g) under Section 4.03 with the following:
g) Election and Revocation: The Contract Holder may
elect SWO by submitting a completed and signed election
form to Aetna's Home Office. The Contract Holder must
certify in writing that the distribution complies with
the waiver and spousal consent requirements of Code
Section 417 or that such requirements do not apply, and
that the distribution is in accordance with the terms of
the Plan. Once SWO is elected, the Contract Holder may
revoke it by submitting a written request to Aetna's Home
Office. Any revocation will apply only to amounts not
yet paid. Generally, SWO may be elected only once,
however, if SWO is elected on behalf of a Participant and
<PAGE> 5
<PAGE>
then revoked before the date distributions were required
to begin under Code Section 401(a)(9), SWO may be elected
on behalf of a spouse beneficiary after the death of a
Participant.
14. Replace the second paragraph of b) under Section 5.01
with the following:
For any election of an Annuity option, the Contract
Holder must provide certification that the waiver
and spousal consent requirements of Code Section 417
have been satisfied or that such requirements do not
apply, and that the election is in accordance with
the terms of the Plan.
<PAGE> 6
<PAGE>
Exhibit-99-10.1
<PAGE>
Consent of Independent Auditors
The Board of Directors of Aetna Life Insurance and Annuity Company
and Contract Owners of Aetna Variable Annuity Account C:
We consent to the use of our reports dated January 31, 1995 and February 7,
1995 included herein and to the reference to our Firm under the caption
"INDEPENDENT AUDITORS" in the Statement of Additional Information.
Our report dated February 7, 1995 refers to a change in 1993 in the
Company's methods of accounting for certain investments in debt and equity
securities and reinsurance contracts, and a change in 1992 in the Company's
methods of accounting for income taxes and postretirement benefits other
than pensions.
KPMG Peat Marwick LLP
Hartford, Connecticut
February 21, 1996
<PAGE>
2
<PAGE>
<PAGE>
02/07/96 16:06:34
Aetna Variable Fund (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
VARHLTH VARHLTH VARHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1242.31 24.23% 24.06% 1242.31 24.23% 24.09% 1242.31 24.23% 24.11%
3 0.0% 1326.46 9.87% 9.70% 1326.46 9.87% 9.73% 1326.46 9.87% 9.76%
5 0.0% 1809.96 12.60% 12.42% 1809.96 12.60% 12.45% 1809.96 12.60% 12.48%
10 0.0% 3417.34 13.08% 12.90% 3417.34 13.08% 12.93% 3417.34 13.08% 12.96%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
VARHLTH VARHLTH VARHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1242.31 24.23% 24.14% 1242.31 24.23% 24.16% 1242.31 24.23% 24.17%
3 0.0% 1326.46 9.87% 9.79% 1326.46 9.87% 9.80% 1326.46 9.87% 9.82%
5 0.0% 1809.96 12.60% 12.51% 1809.96 12.60% 12.53% 1809.96 12.60% 12.54%
10 0.0% 3417.34 13.08% 12.99% 3417.34 13.08% 13.00% 3417.34 13.08% 13.02%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
VARHLTH VARHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1242.31 24.23% 24.19% 1242.31 24.23% 24.20%
3 0.0% 1326.46 9.87% 9.83% 1326.46 9.87% 9.85%
<PAGE>
5 0.0% 1809.96 12.60% 12.55% 1809.96 12.60% 12.57%
10 0.0% 3417.34 13.08% 13.03% 3417.34 13.08% 13.05%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
VARHLTH
VARHLTH.150
<S> <C>
09-99-85 3.556571
09-99-90 6.715050
09-99-92 9.162763
09-99-94 9.783368
09-99-95 12.154003
</TABLE>
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Aetna Income Shares (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
AISHLTH AISHLTH AISHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1118.91 11.89% 11.72% 1118.91 11.89% 11.75% 1118.91 11.89% 11.77%
3 0.0% 1153.66 4.88% 4.70% 1153.66 4.88% 4.73% 1153.66 4.88% 4.76%
5 0.0% 1490.69 8.31% 8.14% 1490.69 8.31% 8.17% 1490.69 8.31% 8.20%
10 0.0% 2275.47 8.57% 8.39% 2275.47 8.57% 8.42% 2275.47 8.57% 8.45%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AISHLTH AISHLTH AISHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1118.91 11.89% 11.80% 1118.91 11.89% 11.82% 1118.91 11.89% 11.83%
3 0.0% 1153.66 4.88% 4.79% 1153.66 4.88% 4.81% 1153.66 4.88% 4.82%
5 0.0% 1490.69 8.31% 8.22% 1490.69 8.31% 8.24% 1490.69 8.31% 8.25%
10 0.0% 2275.47 8.57% 8.48% 2275.47 8.57% 8.50% 2275.47 8.57% 8.51%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AISHLTH AISHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1118.91 11.89% 11.85% 1118.91 11.89% 11.86%
3 0.0% 1153.66 4.88% 4.84% 1153.66 4.88% 4.85%
5 0.0% 1490.69 8.31% 8.27% 1490.69 8.31% 8.28%
<PAGE>
10 0.0% 2275.47 8.57% 8.53% 2275.47 8.57% 8.54%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
AISHLTH
AISHLTH.150
<S> <C>
09-99-85 4.897096
09-99-90 7.475168
09-99-92 9.658971
09-99-94 9.958931
09-99-95 11.143172
</TABLE>
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Aetna Encore Fund (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
ENCHLTH ENCHLTH ENCHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1042.89 4.29% 4.11% 1042.89 4.29% 4.14% 1042.89 4.29% 4.17%
3 0.0% 1081.40 2.64% 2.47% 1081.40 2.64% 2.50% 1081.40 2.64% 2.53%
5 0.0% 1174.29 3.27% 3.09% 1174.29 3.27% 3.12% 1174.29 3.27% 3.15%
10 0.0% 1585.62 4.72% 4.54% 1585.62 4.72% 4.57% 1585.62 4.72% 4.60%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ENCHLTH ENCHLTH ENCHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1042.89 4.29% 4.20% 1042.89 4.29% 4.22% 1042.89 4.29% 4.23%
3 0.0% 1081.40 2.64% 2.55% 1081.40 2.64% 2.57% 1081.40 2.64% 2.58%
5 0.0% 1174.29 3.27% 3.18% 1174.29 3.27% 3.19% 1174.29 3.27% 3.21%
10 0.0% 1585.62 4.72% 4.63% 1585.62 4.72% 4.64% 1585.62 4.72% 4.66%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ENCHLTH ENCHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1042.89 4.29% 4.25% 1042.89 4.29% 4.26%
3 0.0% 1081.40 2.64% 2.60% 1081.40 2.64% 2.61%
5 0.0% 1174.29 3.27% 3.22% 1174.29 3.27% 3.24%
<PAGE>
10 0.0% 1585.62 4.72% 4.67% 1585.62 4.72% 4.69%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
ENCHLTH
ENCHLTH.150
<S> <C>
09-99-85 6.538911
09-99-90 8.829373
09-99-92 9.587797
09-99-94 9.941861
09-99-95 10.368234
</TABLE>
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
AIAF (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
AIFACE AIFACE AIFACE
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1196.10 19.61% 19.44% 1196.10 19.61% 19.46% 1196.10 19.61% 19.49%
3 0.0% 1295.79 9.02% 8.85% 1295.79 9.02% 8.88% 1295.79 9.02% 8.90%
5 0.0% 1650.75 10.54% 10.37% 1650.75 10.54% 10.40% 1650.75 10.54% 10.43%
From 06-23-89 0.0% 1691.23 8.74% 8.56% 1691.23 8.74% 8.59% 1691.23 8.74% 8.62%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AIFACE AIFACE AIFACE
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1196.10 19.61% 19.52% 1196.10 19.61% 19.54% 1196.10 19.61% 19.55%
3 0.0% 1295.79 9.02% 8.93% 1295.79 9.02% 8.95% 1295.79 9.02% 8.96%
5 0.0% 1650.75 10.54% 10.46% 1650.75 10.54% 10.47% 1650.75 10.54% 10.49%
From 06-23-89 0.0% 1691.23 8.74% 8.65% 1691.23 8.74% 8.67% 1691.23 8.74% 8.68%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AIFACE AIFACE
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1196.10 19.61% 19.57% 1196.10 19.61% 19.58%
3 0.0% 1295.79 9.02% 8.98% 1295.79 9.02% 8.99%
5 0.0% 1650.75 10.54% 10.50% 1650.75 10.54% 10.52%
<PAGE>
From 06-23-89 0.0% 1691.23 8.74% 8.70% 1691.23 8.74% 8.71%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
AIFACE
AIFHLTH.150
<S> <C>
06-23-89 7.615822 i
09-99-90 7.802564
09-99-92 9.939941
09-99-94 10.768364
09-99-95 12.880090 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Alger Growth (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
ALGGHLTH ALGGHLTH ALGGHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1454.52 45.45% 45.28% 1454.52 45.45% 45.31% 1454.52 45.45% 45.34%
3 0.0% 1943.17 24.79% 24.61% 1943.17 24.79% 24.64% 1943.17 24.79% 24.67%
5 0.0% 2933.22 24.01% 23.84% 2933.22 24.01% 23.87% 2933.22 24.01% 23.90%
From 01-08-89 0.0% 3280.22 19.32% 19.14% 3280.22 19.32% 19.17% 3280.22 19.32% 19.20%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGGHLTH ALGGHLTH ALGGHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1454.52 45.45% 45.36% 1454.52 45.45% 45.38% 1454.52 45.45% 45.39%
3 0.0% 1943.17 24.79% 24.70% 1943.17 24.79% 24.71% 1943.17 24.79% 24.73%
5 0.0% 2933.22 24.01% 23.93% 2933.22 24.01% 23.94% 2933.22 24.01% 23.96%
From 01-08-89 0.0% 3280.22 19.32% 19.23% 3280.22 19.32% 19.24% 3280.22 19.32% 19.26%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGGHLTH ALGGHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1454.52 45.45% 45.41% 1454.52 45.45% 45.42%
3 0.0% 1943.17 24.79% 24.74% 1943.17 24.79% 24.76%
5 0.0% 2933.22 24.01% 23.97% 2933.22 24.01% 23.98%
<PAGE>
From 01-08-89 0.0% 3280.22 19.32% 19.27% 3280.22 19.32% 19.29%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
ALGGHLTH
ALGGHLTH.150
<S> <C>
01-08-89 3.208363 i
09-99-90 3.587911
09-99-92 5.415969
09-99-94 7.235484
09-99-95 10.524138 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Alger Small Cap (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
ALGHLTH ALGHLTH ALGHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1591.05 59.11% 58.93% 1591.05 59.11% 58.96% 1591.05 59.11% 58.99%
3 0.0% 1921.34 24.32% 24.14% 1921.34 24.32% 24.17% 1921.34 24.32% 24.20%
5 0.0% 3003.84 24.60% 24.43% 3003.84 24.60% 24.46% 3003.84 24.60% 24.49%
From 09-21-88 0.0% 4277.27 22.99% 22.81% 4277.27 22.99% 22.84% 4277.27 22.99% 22.87%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGHLTH ALGHLTH ALGHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1591.05 59.11% 59.02% 1591.05 59.11% 59.03% 1591.05 59.11% 59.05%
3 0.0% 1921.34 24.32% 24.23% 1921.34 24.32% 24.25% 1921.34 24.32% 24.26%
5 0.0% 3003.84 24.60% 24.52% 3003.84 24.60% 24.53% 3003.84 24.60% 24.55%
From 09-21-88 0.0% 4277.27 22.99% 22.90% 4277.27 22.99% 22.91% 4277.27 22.99% 22.93%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGHLTH ALGHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1591.05 59.11% 59.06% 1591.05 59.11% 59.08%
3 0.0% 1921.34 24.32% 24.27% 1921.34 24.32% 24.29%
5 0.0% 3003.84 24.60% 24.56% 3003.84 24.60% 24.58%
<PAGE>
From 09-21-88 0.0% 4277.27 22.99% 22.94% 4277.27 22.99% 22.96%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
ALGHLTH
ALGSCHLTH.150
<S> <C>
09-21-88 3.368489 i
09-99-90 4.796503
09-99-92 7.498879
09-99-94 9.055601
09-99-95 14.407928 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Calvert Responsibly Invested Balanced Portfolio (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
CALHLTH CALHLTH CALHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1225.30 22.53% 22.36% 1225.30 22.53% 22.38% 1225.30 22.53% 22.41%
3 0.0% 1300.49 9.15% 8.98% 1300.49 9.15% 9.01% 1300.49 9.15% 9.04%
5 0.0% 1623.67 10.18% 10.00% 1623.67 10.18% 10.03% 1623.67 10.18% 10.06%
From 09-99-86 0.0% 2382.00 10.12% 9.95% 2382.00 10.12% 9.98% 2382.00 10.12% 10.01%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CALHLTH CALHLTH CALHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1225.30 22.53% 22.44% 1225.30 22.53% 22.46% 1225.30 22.53% 22.47%
3 0.0% 1300.49 9.15% 9.06% 1300.49 9.15% 9.08% 1300.49 9.15% 9.09%
5 0.0% 1623.67 10.18% 10.09% 1623.67 10.18% 10.11% 1623.67 10.18% 10.12%
From 09-99-86 0.0% 2382.00 10.12% 10.04% 2382.00 10.12% 10.05% 2382.00 10.12% 10.07%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CALHLTH CALHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1225.30 22.53% 22.49% 1225.30 22.53% 22.50%
3 0.0% 1300.49 9.15% 9.11% 1300.49 9.15% 9.12%
5 0.0% 1623.67 10.18% 10.14% 1623.67 10.18% 10.15%
<PAGE>
From 09-99-86 0.0% 2382.00 10.12% 10.08% 2382.00 10.12% 10.10%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
CALHLTH
CALHLTH.150
09-99-86 5.373079 i
09-99-90 7.882558
09-99-92 9.841431
09-99-94 10.445289
09-99-95 12.798656 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Fidelity Contrafund (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
FDCFHLTH FDCFHLTH FDCFHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 01-03-95 0.0% 1378.69 37.87% 37.69% 1378.69 37.87% 37.72% 1378.69 37.87% 37.75%
From 01-03-95 0.0% 1378.69 37.87% 37.69% 1378.69 37.87% 37.72% 1378.69 37.87% 37.75%
From 01-03-95 0.0% 1378.69 37.87% 37.69% 1378.69 37.87% 37.72% 1378.69 37.87% 37.75%
From 01-03-95 0.0% 1378.69 37.87% 37.69% 1378.69 37.87% 37.72% 1378.69 37.87% 37.75%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDCFHLTH FDCFHLTH FDCFHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 01-03-95 0.0% 1378.69 37.87% 37.78% 1378.69 37.87% 37.80% 1378.69 37.87% 37.81%
From 01-03-95 0.0% 1378.69 37.87% 37.78% 1378.69 37.87% 37.80% 1378.69 37.87% 37.81%
From 01-03-95 0.0% 1378.69 37.87% 37.78% 1378.69 37.87% 37.80% 1378.69 37.87% 37.81%
From 01-03-95 0.0% 1378.69 37.87% 37.78% 1378.69 37.87% 37.80% 1378.69 37.87% 37.81%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDCFHLTH FDCFHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
From 01-03-95 0.0% 1378.69 37.87% 37.83% 1378.69 37.87% 37.84%
From 01-03-95 0.0% 1378.69 37.87% 37.83% 1378.69 37.87% 37.84%
From 01-03-95 0.0% 1378.69 37.87% 37.83% 1378.69 37.87% 37.84%
<PAGE>
From 01-03-95 0.0% 1378.69 37.87% 37.83% 1378.69 37.87% 37.84%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
FDCFHLTH
FDCFHLTH.150
<S> <C>
01-03-95 7.538981 i
09-99-95 10.393882 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Fidelity Growth (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
FIDGHLTH FIDGHLTH FIDGHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1425.75 42.58% 42.40% 1425.75 42.58% 42.43% 1425.75 42.58% 42.46%
3 0.0% 1840.92 22.56% 22.38% 1840.92 22.56% 22.41% 1840.92 22.56% 22.44%
5 0.0% 2670.15 21.70% 21.53% 2670.15 21.70% 21.56% 2670.15 21.70% 21.59%
From 11-07-86 0.0% 3274.03 14.26% 14.09% 3274.03 14.26% 14.12% 3274.03 14.26% 14.14%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FIDGHLTH FIDGHLTH FIDGHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1425.75 42.58% 42.49% 1425.75 42.58% 42.50% 1425.75 42.58% 42.52%
3 0.0% 1840.92 22.56% 22.47% 1840.92 22.56% 22.49% 1840.92 22.56% 22.50%
5 0.0% 2670.15 21.70% 21.62% 2670.15 21.70% 21.63% 2670.15 21.70% 21.65%
From 11-07-86 0.0% 3274.03 14.26% 14.17% 3274.03 14.26% 14.19% 3274.03 14.26% 14.20%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FIDGHLTH FIDGHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1425.75 42.58% 42.53% 1425.75 42.58% 42.55%
3 0.0% 1840.92 22.56% 22.51% 1840.92 22.56% 22.53%
5 0.0% 2670.15 21.70% 21.66% 2670.15 21.70% 21.68%
<PAGE>
From 11-07-86 0.0% 3274.03 14.26% 14.22% 3274.03 14.26% 14.23%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
FIDGHLTH
FIDGHLTH.150
<S> <C>
11-07-86 3.147478 i
09-99-90 3.859312
09-99-92 5.597699
09-99-94 7.227749
09-99-95 10.304932 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Fidelity Equity Income (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
FIDEIHLTH FIDEIHLTH FIDEIHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1241.77 24.18% 24.00% 1241.77 24.18% 24.03% 1241.77 24.18% 24.06%
3 0.0% 1660.45 18.42% 18.24% 1660.45 18.42% 18.27% 1660.45 18.42% 18.30%
5 0.0% 2455.34 19.68% 19.51% 2455.34 19.68% 19.53% 2455.34 19.68% 19.56%
From 10-22-86 0.0% 2617.08 11.36% 11.19% 2617.08 11.36% 11.22% 2617.08 11.36% 11.25%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FIDEIHLTH FIDEIHLTH FIDEIHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1241.77 24.18% 24.09% 1241.77 24.18% 24.10% 1241.77 24.18% 24.12%
3 0.0% 1660.45 18.42% 18.33% 1660.45 18.42% 18.34% 1660.45 18.42% 18.36%
5 0.0% 2455.34 19.68% 19.59% 2455.34 19.68% 19.61% 2455.34 19.68% 19.62%
From 10-22-86 0.0% 2617.08 11.36% 11.27% 2617.08 11.36% 11.29% 2617.08 11.36% 11.30%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FIDEIHLTH FIDEIHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1241.77 24.18% 24.13% 1241.77 24.18% 24.15%
3 0.0% 1660.45 18.42% 18.37% 1660.45 18.42% 18.39%
5 0.0% 2455.34 19.68% 19.64% 2455.34 19.68% 19.65%
<PAGE>
From 10-22-86 0.0% 2617.08 11.36% 11.32% 2617.08 11.36% 11.33%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
FIDEIHLTH
FIDEIHLTH.150
<S> <C>
10-22-86 3.916857 i
09-99-90 4.174864
09-99-92 6.173478
09-99-94 8.254923
09-99-95 10.250722 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Fidelity Overseas (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
FIDOSHLTH FIDOSHLTH FIDOSHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1033.24 3.32% 3.15% 1033.24 3.32% 3.18% 1033.24 3.32% 3.21%
3 0.0% 1361.76 10.84% 10.67% 1361.76 10.84% 10.69% 1361.76 10.84% 10.72%
5 0.0% 1412.06 7.14% 6.97% 1412.06 7.14% 7.00% 1412.06 7.14% 7.03%
From 02-13-87 0.0% 1615.59 5.72% 5.54% 1615.59 5.72% 5.57% 1615.59 5.72% 5.60%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FIDOSHLTH FIDOSHLTH FIDOSHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1033.24 3.32% 3.24% 1033.24 3.32% 3.25% 1033.24 3.32% 3.27%
3 0.0% 1361.76 10.84% 10.75% 1361.76 10.84% 10.77% 1361.76 10.84% 10.78%
5 0.0% 1412.06 7.14% 7.06% 1412.06 7.14% 7.07% 1412.06 7.14% 7.09%
From 02-13-87 0.0% 1615.59 5.72% 5.63% 1615.59 5.72% 5.64% 1615.59 5.72% 5.66%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FIDOSHLTH FIDOSHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1033.24 3.32% 3.28% 1033.24 3.32% 3.30%
3 0.0% 1361.76 10.84% 10.80% 1361.76 10.84% 10.81%
5 0.0% 1412.06 7.14% 7.10% 1412.06 7.14% 7.12%
<PAGE>
From 02-13-87 0.0% 1615.59 5.72% 5.67% 1615.59 5.72% 5.69%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
FIDOSHLTH
FIDOSHLTH.150
<S> <C>
02-13-87 5.928449 i
09-99-90 6.782972
09-99-92 7.033500
09-99-94 9.269799
09-99-95 9.577961 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Franklin Government Securities (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
FRKHLTH FRKHLTH FRKHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1128.79 12.88% 12.70% 1128.79 12.88% 12.73% 1128.79 12.88% 12.76%
3 0.0% 1132.66 4.24% 4.06% 1132.66 4.24% 4.09% 1132.66 4.24% 4.12%
5 0.0% 1427.15 7.37% 7.20% 1427.15 7.37% 7.23% 1427.15 7.37% 7.26%
From 05-30-89 0.0% 1572.81 7.41% 7.23% 1572.81 7.41% 7.26% 1572.81 7.41% 7.29%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FRKHLTH FRKHLTH FRKHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1128.79 12.88% 12.79% 1128.79 12.88% 12.81% 1128.79 12.88% 12.82%
3 0.0% 1132.66 4.24% 4.15% 1132.66 4.24% 4.17% 1132.66 4.24% 4.18%
5 0.0% 1427.15 7.37% 7.28% 1427.15 7.37% 7.30% 1427.15 7.37% 7.31%
From 05-30-89 0.0% 1572.81 7.41% 7.32% 1572.81 7.41% 7.33% 1572.81 7.41% 7.35%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FRKHLTH FRKHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1128.79 12.88% 12.84% 1128.79 12.88% 12.85%
3 0.0% 1132.66 4.24% 4.20% 1132.66 4.24% 4.21%
5 0.0% 1427.15 7.37% 7.33% 1427.15 7.37% 7.34%
<PAGE>
From 05-30-89 0.0% 1572.81 7.41% 7.36% 1572.81 7.41% 7.38%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
FRKHLTH
FRKHLTH.150
<S> <C>
05-30-89 7.140509 i
09-99-90 7.869333
09-99-92 9.915293
09-99-94 9.949282
09-99-95 11.230693 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Janus Aspen Aggressive Growth (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
JAGHLTH JAGHLTH JAGHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1256.74 25.67% 25.50% 1256.74 25.67% 25.53% 1256.74 25.67% 25.56%
From 09-13-93 0.0% 1610.02 26.20% 26.03% 1610.02 26.20% 26.05% 1610.02 26.20% 26.08%
From 09-13-93 0.0% 1610.02 26.20% 26.03% 1610.02 26.20% 26.05% 1610.02 26.20% 26.08%
From 09-13-93 0.0% 1610.02 26.20% 26.03% 1610.02 26.20% 26.05% 1610.02 26.20% 26.08%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JAGHLTH JAGHLTH JAGHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1256.74 25.67% 25.59% 1256.74 25.67% 25.60% 1256.74 25.67% 25.62%
From 09-13-93 0.0% 1610.02 26.20% 26.11% 1610.02 26.20% 26.13% 1610.02 26.20% 26.14%
From 09-13-93 0.0% 1610.02 26.20% 26.11% 1610.02 26.20% 26.13% 1610.02 26.20% 26.14%
From 09-13-93 0.0% 1610.02 26.20% 26.11% 1610.02 26.20% 26.13% 1610.02 26.20% 26.14%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JAGHLTH JAGHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1256.74 25.67% 25.63% 1256.74 25.67% 25.65%
From 09-13-93 0.0% 1610.02 26.20% 26.16% 1610.02 26.20% 26.17%
From 09-13-93 0.0% 1610.02 26.20% 26.16% 1610.02 26.20% 26.17%
<PAGE>
From 09-13-93 0.0% 1610.02 26.20% 26.16% 1610.02 26.20% 26.17%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
JAGHLTH
JAGHLTH.150
<S> <C>
09-13-93 7.829372 i
09-99-94 10.030260
09-99-95 12.605449 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Janus Aspen Balanced (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
JBALHLTH JBALHLTH JBALHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1142.66 14.27% 14.09% 1142.66 14.27% 14.12% 1142.66 14.27% 14.15%
From 09-13-93 0.0% 1228.54 10.58% 10.41% 1228.54 10.58% 10.43% 1228.54 10.58% 10.46%
From 09-13-93 0.0% 1228.54 10.58% 10.41% 1228.54 10.58% 10.43% 1228.54 10.58% 10.46%
From 09-13-93 0.0% 1228.54 10.58% 10.41% 1228.54 10.58% 10.43% 1228.54 10.58% 10.46%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JBALHLTH JBALHLTH JBALHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1142.66 14.27% 14.18% 1142.66 14.27% 14.19% 1142.66 14.27% 14.21%
From 09-13-93 0.0% 1228.54 10.58% 10.49% 1228.54 10.58% 10.51% 1228.54 10.58% 10.52%
From 09-13-93 0.0% 1228.54 10.58% 10.49% 1228.54 10.58% 10.51% 1228.54 10.58% 10.52%
From 09-13-93 0.0% 1228.54 10.58% 10.49% 1228.54 10.58% 10.51% 1228.54 10.58% 10.52%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JBALHLTH JBALHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1142.66 14.27% 14.22% 1142.66 14.27% 14.24%
From 09-13-93 0.0% 1228.54 10.58% 10.54% 1228.54 10.58% 10.55%
From 09-13-93 0.0% 1228.54 10.58% 10.54% 1228.54 10.58% 10.55%
<PAGE>
From 09-13-93 0.0% 1228.54 10.58% 10.54% 1228.54 10.58% 10.55%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
JBALHLTH
JBALHLTH.150
<S> <C>
09-13-93 8.276858 i
09-99-94 8.898926
09-99-95 10.168414 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Janus Aspen Growth (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
JGHLTH JGHLTH JGHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1224.63 22.46% 22.29% 1224.63 22.46% 22.32% 1224.63 22.46% 22.35%
From 09-13-93 0.0% 1279.80 12.81% 12.64% 1279.80 12.81% 12.67% 1279.80 12.81% 12.69%
From 09-13-93 0.0% 1279.80 12.81% 12.64% 1279.80 12.81% 12.67% 1279.80 12.81% 12.69%
From 09-13-93 0.0% 1279.80 12.81% 12.64% 1279.80 12.81% 12.67% 1279.80 12.81% 12.69%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JGHLTH JGHLTH JGHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1224.63 22.46% 22.38% 1224.63 22.46% 22.39% 1224.63 22.46% 22.41%
From 09-13-93 0.0% 1279.80 12.81% 12.72% 1279.80 12.81% 12.74% 1279.80 12.81% 12.75%
From 09-13-93 0.0% 1279.80 12.81% 12.72% 1279.80 12.81% 12.74% 1279.80 12.81% 12.75%
From 09-13-93 0.0% 1279.80 12.81% 12.72% 1279.80 12.81% 12.74% 1279.80 12.81% 12.75%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JGHLTH JGHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1224.63 22.46% 22.42% 1224.63 22.46% 22.43%
From 09-13-93 0.0% 1279.80 12.81% 12.77% 1279.80 12.81% 12.78%
From 09-13-93 0.0% 1279.80 12.81% 12.77% 1279.80 12.81% 12.78%
<PAGE>
From 09-13-93 0.0% 1279.80 12.81% 12.77% 1279.80 12.81% 12.78%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
JGHLTH
JGHLTH.150
<S> <C>
09-13-93 8.079926 i
09-99-94 8.443898
09-99-95 10.340652 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Janus Aspen Flexible Income (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
JFIHLTH JFIHLTH JFIHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1148.70 14.87% 14.70% 1148.70 14.87% 14.72% 1148.70 14.87% 14.75%
From 09-13-93 0.0% 1137.91 6.52% 6.34% 1137.91 6.52% 6.37% 1137.91 6.52% 6.40%
From 09-13-93 0.0% 1137.91 6.52% 6.34% 1137.91 6.52% 6.37% 1137.91 6.52% 6.40%
From 09-13-93 0.0% 1137.91 6.52% 6.34% 1137.91 6.52% 6.37% 1137.91 6.52% 6.40%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JFIHLTH JFIHLTH JFIHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1148.70 14.87% 14.78% 1148.70 14.87% 14.80% 1148.70 14.87% 14.81%
From 09-13-93 0.0% 1137.91 6.52% 6.43% 1137.91 6.52% 6.44% 1137.91 6.52% 6.46%
From 09-13-93 0.0% 1137.91 6.52% 6.43% 1137.91 6.52% 6.44% 1137.91 6.52% 6.46%
From 09-13-93 0.0% 1137.91 6.52% 6.43% 1137.91 6.52% 6.44% 1137.91 6.52% 6.46%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JFIHLTH JFIHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1148.70 14.87% 14.83% 1148.70 14.87% 14.84%
From 09-13-93 0.0% 1137.91 6.52% 6.47% 1137.91 6.52% 6.49%
From 09-13-93 0.0% 1137.91 6.52% 6.47% 1137.91 6.52% 6.49%
<PAGE>
From 09-13-93 0.0% 1137.91 6.52% 6.47% 1137.91 6.52% 6.49%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
JFIHLTH
JFIHLTH.150
<S> <C>
09-13-93 10.052908 i
09-99-94 9.958451
09-99-95 11.439283 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Janus Aspen Short-Term Bond (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
JSTBHLTH JSTBHLTH JSTBHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1059.06 5.91% 5.73% 1059.06 5.91% 5.76% 1059.06 5.91% 5.79%
From 09-13-93 0.0% 1048.96 2.36% 2.19% 1048.96 2.36% 2.22% 1048.96 2.36% 2.25%
From 09-13-93 0.0% 1048.96 2.36% 2.19% 1048.96 2.36% 2.22% 1048.96 2.36% 2.25%
From 09-13-93 0.0% 1048.96 2.36% 2.19% 1048.96 2.36% 2.22% 1048.96 2.36% 2.25%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JSTBHLTH JSTBHLTH JSTBHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1059.06 5.91% 5.82% 1059.06 5.91% 5.83% 1059.06 5.91% 5.85%
From 09-13-93 0.0% 1048.96 2.36% 2.28% 1048.96 2.36% 2.29% 1048.96 2.36% 2.31%
From 09-13-93 0.0% 1048.96 2.36% 2.28% 1048.96 2.36% 2.29% 1048.96 2.36% 2.31%
From 09-13-93 0.0% 1048.96 2.36% 2.28% 1048.96 2.36% 2.29% 1048.96 2.36% 2.31%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JSTBHLTH JSTBHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1059.06 5.91% 5.86% 1059.06 5.91% 5.88%
From 09-13-93 0.0% 1048.96 2.36% 2.32% 1048.96 2.36% 2.33%
From 09-13-93 0.0% 1048.96 2.36% 2.32% 1048.96 2.36% 2.33%
<PAGE>
From 09-13-93 0.0% 1048.96 2.36% 2.32% 1048.96 2.36% 2.33%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
JSTBHLTH
JSTBHLTH.150
<S> <C>
09-13-93 9.581002 i
09-99-94 9.489621
09-99-95 10.050067 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Janus Aspen Worldwide (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
JWWHLTH JWWHLTH JWWHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1178.34 17.83% 17.66% 1178.34 17.83% 17.69% 1178.34 17.83% 17.72%
From 09-13-93 0.0% 1416.68 18.55% 18.38% 1416.68 18.55% 18.41% 1416.68 18.55% 18.44%
From 09-13-93 0.0% 1416.68 18.55% 18.38% 1416.68 18.55% 18.41% 1416.68 18.55% 18.44%
From 09-13-93 0.0% 1416.68 18.55% 18.38% 1416.68 18.55% 18.41% 1416.68 18.55% 18.44%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JWWHLTH JWWHLTH JWWHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1178.34 17.83% 17.75% 1178.34 17.83% 17.76% 1178.34 17.83% 17.78%
From 09-13-93 0.0% 1416.68 18.55% 18.47% 1416.68 18.55% 18.48% 1416.68 18.55% 18.50%
From 09-13-93 0.0% 1416.68 18.55% 18.47% 1416.68 18.55% 18.48% 1416.68 18.55% 18.50%
From 09-13-93 0.0% 1416.68 18.55% 18.47% 1416.68 18.55% 18.48% 1416.68 18.55% 18.50%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JWWHLTH JWWHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1178.34 17.83% 17.79% 1178.34 17.83% 17.81%
From 09-13-93 0.0% 1416.68 18.55% 18.51% 1416.68 18.55% 18.52%
From 09-13-93 0.0% 1416.68 18.55% 18.51% 1416.68 18.55% 18.52%
<PAGE>
From 09-13-93 0.0% 1416.68 18.55% 18.51% 1416.68 18.55% 18.52%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
JWWHLTH
JWWHLTH.150
<S> <C>
09-13-93 7.272941 i
09-99-94 8.744018
09-99-95 10.303466 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Lexington Gold (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
LEXNRHLTH LEXNRHLTH LEXNRHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1033.12 3.31% 3.14% 1033.12 3.31% 3.17% 1033.12 3.31% 3.20%
3 0.0% 1150.99 4.80% 4.62% 1150.99 4.80% 4.65% 1150.99 4.80% 4.68%
5 0.0% 1568.30 9.42% 9.24% 1568.30 9.42% 9.27% 1568.30 9.42% 9.30%
From 05-99-89 0.0% 1697.38 8.71% 8.54% 1697.38 8.71% 8.57% 1697.38 8.71% 8.59%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LEXNRHLTH LEXNRHLTH LEXNRHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1033.12 3.31% 3.22% 1033.12 3.31% 3.24% 1033.12 3.31% 3.25%
3 0.0% 1150.99 4.80% 4.71% 1150.99 4.80% 4.73% 1150.99 4.80% 4.74%
5 0.0% 1568.30 9.42% 9.33% 1568.30 9.42% 9.34% 1568.30 9.42% 9.36%
From 05-99-89 0.0% 1697.38 8.71% 8.62% 1697.38 8.71% 8.64% 1697.38 8.71% 8.65%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LEXNRHLTH LEXNRHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1033.12 3.31% 3.27% 1033.12 3.31% 3.28%
3 0.0% 1150.99 4.80% 4.76% 1150.99 4.80% 4.77%
5 0.0% 1568.30 9.42% 9.37% 1568.30 9.42% 9.39%
<PAGE>
From 05-99-89 0.0% 1697.38 8.71% 8.67% 1697.38 8.71% 8.68%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
LEXNRHLTH
LEXNRHLTH.150
<S> <C>
05-99-89 6.584555 i
09-99-90 7.126512
09-99-92 9.710313
09-99-94 10.818183
09-99-95 11.176494 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Neuberger (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
NEBHLTH NEBHLTH NEBHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1327.15 32.72% 32.54% 1327.15 32.72% 32.57% 1327.15 32.72% 32.60%
3 0.0% 1482.59 14.03% 13.85% 1482.59 14.03% 13.88% 1482.59 14.03% 13.91%
5 0.0% 2018.50 15.08% 14.91% 2018.50 15.08% 14.94% 2018.50 15.08% 14.96%
From 12-99-85 0.0% 2897.33 11.53% 11.36% 2897.33 11.53% 11.38% 2897.33 11.53% 11.41%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
NEBHLTH NEBHLTH NEBHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1327.15 32.72% 32.63% 1327.15 32.72% 32.64% 1327.15 32.72% 32.66%
3 0.0% 1482.59 14.03% 13.94% 1482.59 14.03% 13.95% 1482.59 14.03% 13.97%
5 0.0% 2018.50 15.08% 14.99% 2018.50 15.08% 15.01% 2018.50 15.08% 15.02%
From 12-99-85 0.0% 2897.33 11.53% 11.44% 2897.33 11.53% 11.46% 2897.33 11.53% 11.47%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
NEBHLTH NEBHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1327.15 32.72% 32.67% 1327.15 32.72% 32.69%
3 0.0% 1482.59 14.03% 13.98% 1482.59 14.03% 14.00%
5 0.0% 2018.50 15.08% 15.04% 2018.50 15.08% 15.05%
<PAGE>
From 12-99-85 0.0% 2897.33 11.53% 11.49% 2897.33 11.53% 11.50%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
NEBHLTH
NEBHLTH.150
<S> <C>
12-99-85 5.032596 i
09-99-90 7.223714
09-99-92 9.834910
09-99-94 10.986751
09-99-95 14.581093 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Scudder (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
SCDHLTH SCDHLTH SCDHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1052.31 5.23% 5.06% 1052.31 5.23% 5.09% 1052.31 5.23% 5.11%
3 0.0% 1397.16 11.79% 11.62% 1397.16 11.79% 11.65% 1397.16 11.79% 11.68%
5 0.0% 1579.84 9.58% 9.40% 1579.84 9.58% 9.43% 1579.84 9.58% 9.46%
From 04-99-87 0.0% 1910.15 7.99% 7.82% 1910.15 7.99% 7.84% 1910.15 7.99% 7.87%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
SCDHLTH SCDHLTH SCDHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1052.31 5.23% 5.14% 1052.31 5.23% 5.16% 1052.31 5.23% 5.17%
3 0.0% 1397.16 11.79% 11.71% 1397.16 11.79% 11.72% 1397.16 11.79% 11.74%
5 0.0% 1579.84 9.58% 9.49% 1579.84 9.58% 9.50% 1579.84 9.58% 9.52%
From 04-99-87 0.0% 1910.15 7.99% 7.90% 1910.15 7.99% 7.92% 1910.15 7.99% 7.93%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
SCDHLTH SCDHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1052.31 5.23% 5.19% 1052.31 5.23% 5.20%
3 0.0% 1397.16 11.79% 11.75% 1397.16 11.79% 11.76%
5 0.0% 1579.84 9.58% 9.53% 1579.84 9.58% 9.55%
<PAGE>
From 04-99-87 0.0% 1910.15 7.99% 7.95% 1910.15 7.99% 7.96%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
SCDHLTH
SCDHLTH.150
<S> <C>
04-99-87 7.159307 i
09-99-90 8.656155
09-99-92 9.787953
09-99-94 12.995564
09-99-95 13.675321 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Twentieth Century (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
TCIGHLTH TCIGHLTH TCIGHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1359.57 35.96% 35.78% 1359.57 35.96% 35.81% 1359.57 35.96% 35.84%
3 0.0% 1580.50 16.48% 16.31% 1580.50 16.48% 16.34% 1580.50 16.48% 16.37%
5 0.0% 2126.55 16.29% 16.11% 2126.55 16.29% 16.14% 2126.55 16.29% 16.17%
From 11-20-87 0.0% 2553.93 12.67% 12.49% 2553.93 12.67% 12.52% 2553.93 12.67% 12.55%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
TCIGHLTH TCIGHLTH TCIGHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1359.57 35.96% 35.87% 1359.57 35.96% 35.88% 1359.57 35.96% 35.90%
3 0.0% 1580.50 16.48% 16.40% 1580.50 16.48% 16.41% 1580.50 16.48% 16.43%
5 0.0% 2126.55 16.29% 16.20% 2126.55 16.29% 16.22% 2126.55 16.29% 16.23%
From 11-20-87 0.0% 2553.93 12.67% 12.58% 2553.93 12.67% 12.60% 2553.93 12.67% 12.61%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
TCIGHLTH TCIGHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 0.0% 1359.57 35.96% 35.91% 1359.57 35.96% 35.93%
3 0.0% 1580.50 16.48% 16.44% 1580.50 16.48% 16.45%
5 0.0% 2126.55 16.29% 16.24% 2126.55 16.29% 16.26%
<PAGE>
From 11-20-87 0.0% 2553.93 12.67% 12.63% 2553.93 12.67% 12.64%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
TCIGHLTH
TCIGHLTH.150
<S> <C>
11-20-87 6.103412 i
09-99-90 7.330027
09-99-92 9.862489
09-99-94 11.465194
09-99-95 15.587685 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Aetna Ascent (ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
ASCNTHLTH ASCNTHLTH ASCNTHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 0.0% 1056.70 5.67% 5.50% 1056.70 5.67% 5.52% 1056.70 5.67% 5.55%
From 07-03-95 0.0% 1056.70 5.67% 5.50% 1056.70 5.67% 5.52% 1056.70 5.67% 5.55%
From 07-03-95 0.0% 1056.70 5.67% 5.50% 1056.70 5.67% 5.52% 1056.70 5.67% 5.55%
From 07-03-95 0.0% 1056.70 5.67% 5.50% 1056.70 5.67% 5.52% 1056.70 5.67% 5.55%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ASCNTHLTH ASCNTHLTH ASCNTHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 0.0% 1056.70 5.67% 5.58% 1056.70 5.67% 5.60% 1056.70 5.67% 5.61%
From 07-03-95 0.0% 1056.70 5.67% 5.58% 1056.70 5.67% 5.60% 1056.70 5.67% 5.61%
From 07-03-95 0.0% 1056.70 5.67% 5.58% 1056.70 5.67% 5.60% 1056.70 5.67% 5.61%
From 07-03-95 0.0% 1056.70 5.67% 5.58% 1056.70 5.67% 5.60% 1056.70 5.67% 5.61%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ASCNTHLTH ASCNTHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 0.0% 1056.70 5.67% 5.63% 1056.70 5.67% 5.64%
From 07-03-95 0.0% 1056.70 5.67% 5.63% 1056.70 5.67% 5.64%
From 07-03-95 0.0% 1056.70 5.67% 5.63% 1056.70 5.67% 5.64%
<PAGE>
From 07-03-95 0.0% 1056.70 5.67% 5.63% 1056.70 5.67% 5.64%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
ASCNTHLTH
ASCNTHLTH.150
<S> <C>
07-03-95 9.718708 i
09-99-95 10.269749 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Aetna Crossroads (ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
CROSSHLTH CROSSHLTH CROSSHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 0.0% 1049.59 4.96% 4.78% 1049.59 4.96% 4.81% 1049.59 4.96% 4.84%
From 07-03-95 0.0% 1049.59 4.96% 4.78% 1049.59 4.96% 4.81% 1049.59 4.96% 4.84%
From 07-03-95 0.0% 1049.59 4.96% 4.78% 1049.59 4.96% 4.81% 1049.59 4.96% 4.84%
From 07-03-95 0.0% 1049.59 4.96% 4.78% 1049.59 4.96% 4.81% 1049.59 4.96% 4.84%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CROSSHLTH CROSSHLTH CROSSHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 0.0% 1049.59 4.96% 4.87% 1049.59 4.96% 4.89% 1049.59 4.96% 4.90%
From 07-03-95 0.0% 1049.59 4.96% 4.87% 1049.59 4.96% 4.89% 1049.59 4.96% 4.90%
From 07-03-95 0.0% 1049.59 4.96% 4.87% 1049.59 4.96% 4.89% 1049.59 4.96% 4.90%
From 07-03-95 0.0% 1049.59 4.96% 4.87% 1049.59 4.96% 4.89% 1049.59 4.96% 4.90%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CROSSHLTH CROSSHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 0.0% 1049.59 4.96% 4.92% 1049.59 4.96% 4.93%
From 07-03-95 0.0% 1049.59 4.96% 4.92% 1049.59 4.96% 4.93%
From 07-03-95 0.0% 1049.59 4.96% 4.92% 1049.59 4.96% 4.93%
<PAGE>
From 07-03-95 0.0% 1049.59 4.96% 4.92% 1049.59 4.96% 4.93%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
CROSSHLTH
CROSSHLTH.150
<S> <C>
07-03-95 9.766118 i
09-99-95 10.250378 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:34
Aetna Legacy (ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
LEGCYHLTH LEGCYHLTH LEGCYHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 0.0% 1041.14 4.11% 3.94% 1041.14 4.11% 3.97% 1041.14 4.11% 4.00%
From 07-03-95 0.0% 1041.14 4.11% 3.94% 1041.14 4.11% 3.97% 1041.14 4.11% 4.00%
From 07-03-95 0.0% 1041.14 4.11% 3.94% 1041.14 4.11% 3.97% 1041.14 4.11% 4.00%
From 07-03-95 0.0% 1041.14 4.11% 3.94% 1041.14 4.11% 3.97% 1041.14 4.11% 4.00%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LEGCYHLTH LEGCYHLTH LEGCYHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 0.0% 1041.14 4.11% 4.03% 1041.14 4.11% 4.04% 1041.14 4.11% 4.06%
From 07-03-95 0.0% 1041.14 4.11% 4.03% 1041.14 4.11% 4.04% 1041.14 4.11% 4.06%
From 07-03-95 0.0% 1041.14 4.11% 4.03% 1041.14 4.11% 4.04% 1041.14 4.11% 4.06%
From 07-03-95 0.0% 1041.14 4.11% 4.03% 1041.14 4.11% 4.04% 1041.14 4.11% 4.06%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LEGCYHLTH LEGCYHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 0.0% 1041.14 4.11% 4.07% 1041.14 4.11% 4.09%
From 07-03-95 0.0% 1041.14 4.11% 4.07% 1041.14 4.11% 4.09%
From 07-03-95 0.0% 1041.14 4.11% 4.07% 1041.14 4.11% 4.09%
<PAGE>
From 07-03-95 0.0% 1041.14 4.11% 4.07% 1041.14 4.11% 4.09%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
LEGCYHLTH
LEGCYHLTH.150
<S> <C>
07-03-95 9.833275 i
09-99-95 10.237847 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Aetna Variable Fund (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
VARHLTH VARHLTH VARHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1180.19 18.02% 17.84% 1180.19 18.02% 17.87% 1180.19 18.02% 17.90%
3 5.0% 1260.14 8.01% 7.84% 1260.14 8.01% 7.87% 1260.14 8.01% 7.90%
5 4.0% 1737.56 11.68% 11.51% 1737.56 11.68% 11.54% 1737.56 11.68% 11.57%
10 0.0% 3417.34 13.08% 12.90% 3417.34 13.08% 12.93% 3417.34 13.08% 12.96%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
VARHLTH VARHLTH VARHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1180.19 18.02% 17.93% 1180.19 18.02% 17.95% 1180.19 18.02% 17.96%
3 5.0% 1260.14 8.01% 7.92% 1260.14 8.01% 7.94% 1260.14 8.01% 7.95%
5 4.0% 1737.56 11.68% 11.60% 1737.56 11.68% 11.61% 1737.56 11.68% 11.63%
10 0.0% 3417.34 13.08% 12.99% 3417.34 13.08% 13.00% 3417.34 13.08% 13.02%
- ------------------------------------------------------------------------------
<PAGE>
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
VARHLTH VARHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1180.19 18.02% 17.98% 1180.19 18.02% 17.99%
3 5.0% 1260.14 8.01% 7.97% 1260.14 8.01% 7.98%
5 4.0% 1737.56 11.68% 11.64% 1737.56 11.68% 11.65%
10 0.0% 3417.34 13.08% 13.03% 3417.34 13.08% 13.05%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
VARHLTH
VARHLTH.150
<S> <C>
09-99-85 3.556571
09-99-90 6.715050
09-99-92 9.162763
09-99-94 9.783368
09-99-95 12.154003
</TABLE>
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Aetna Income Shares (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
AISHLTH AISHLTH AISHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1062.96 6.30% 6.12% 1062.96 6.30% 6.15% 1062.96 6.30% 6.18%
3 5.0% 1095.98 3.10% 2.93% 1095.98 3.10% 2.96% 1095.98 3.10% 2.99%
5 4.0% 1431.06 7.43% 7.26% 1431.06 7.43% 7.29% 1431.06 7.43% 7.31%
10 0.0% 2275.47 8.57% 8.39% 2275.47 8.57% 8.42% 2275.47 8.57% 8.45%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AISHLTH AISHLTH AISHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1062.96 6.30% 6.21% 1062.96 6.30% 6.22% 1062.96 6.30% 6.24%
3 5.0% 1095.98 3.10% 3.01% 1095.98 3.10% 3.03% 1095.98 3.10% 3.04%
5 4.0% 1431.06 7.43% 7.34% 1431.06 7.43% 7.36% 1431.06 7.43% 7.37%
10 0.0% 2275.47 8.57% 8.48% 2275.47 8.57% 8.50% 2275.47 8.57% 8.51%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AISHLTH AISHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1062.96 6.30% 6.25% 1062.96 6.30% 6.27%
3 5.0% 1095.98 3.10% 3.06% 1095.98 3.10% 3.07%
5 4.0% 1431.06 7.43% 7.39% 1431.06 7.43% 7.40%
<PAGE>
10 0.0% 2275.47 8.57% 8.53% 2275.47 8.57% 8.54%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
AISHLTH
AISHLTH.150
<S> <C>
09-99-85 4.897096
09-99-90 7.475168
09-99-92 9.658971
09-99-94 9.958931
09-99-95 11.143172
</TABLE>
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Aetna Encore Fund (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
ENCHLTH ENCHLTH ENCHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 990.75 -0.93% -1.10% 990.75 -0.93% -1.07% 990.75 -0.93% -1.04%
3 5.0% 1027.33 0.90% 0.73% 1027.33 0.90% 0.76% 1027.33 0.90% 0.79%
5 4.0% 1127.32 2.43% 2.25% 1127.32 2.43% 2.28% 1127.32 2.43% 2.31%
10 0.0% 1585.62 4.72% 4.54% 1585.62 4.72% 4.57% 1585.62 4.72% 4.60%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ENCHLTH ENCHLTH ENCHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 990.75 -0.93% -1.01% 990.75 -0.93% -1.00% 990.75 -0.93% -0.98%
3 5.0% 1027.33 0.90% 0.81% 1027.33 0.90% 0.83% 1027.33 0.90% 0.84%
5 4.0% 1127.32 2.43% 2.34% 1127.32 2.43% 2.35% 1127.32 2.43% 2.37%
10 0.0% 1585.62 4.72% 4.63% 1585.62 4.72% 4.64% 1585.62 4.72% 4.66%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ENCHLTH ENCHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 990.75 -0.93% -0.97% 990.75 -0.93% -0.95%
3 5.0% 1027.33 0.90% 0.86% 1027.33 0.90% 0.87%
5 4.0% 1127.32 2.43% 2.38% 1127.32 2.43% 2.40%
<PAGE>
10 0.0% 1585.62 4.72% 4.67% 1585.62 4.72% 4.69%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
ENCHLTH
ENCHLTH.150
<S> <C>
09-99-85 6.538911
09-99-90 8.829373
09-99-92 9.587797
09-99-94 9.941861
09-99-95 10.368234
</TABLE>
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
AIAF (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
AIFACE AIFACE AIFACE
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1136.29 13.63% 13.45% 1136.29 13.63% 13.48% 1136.29 13.63% 13.51%
3 5.0% 1231.00 7.17% 7.00% 1231.00 7.17% 7.03% 1231.00 7.17% 7.06%
5 4.0% 1584.72 9.65% 9.47% 1584.72 9.65% 9.50% 1584.72 9.65% 9.53%
From 06-23-89 4.0% 1623.58 8.03% 7.86% 1623.58 8.03% 7.89% 1623.58 8.03% 7.92%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AIFACE AIFACE AIFACE
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1136.29 13.63% 13.54% 1136.29 13.63% 13.56% 1136.29 13.63% 13.57%
3 5.0% 1231.00 7.17% 7.09% 1231.00 7.17% 7.10% 1231.00 7.17% 7.12%
5 4.0% 1584.72 9.65% 9.56% 1584.72 9.65% 9.57% 1584.72 9.65% 9.59%
From 06-23-89 4.0% 1623.58 8.03% 7.95% 1623.58 8.03% 7.96% 1623.58 8.03% 7.98%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
AIFACE AIFACE
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1136.29 13.63% 13.59% 1136.29 13.63% 13.60%
3 5.0% 1231.00 7.17% 7.13% 1231.00 7.17% 7.14%
5 4.0% 1584.72 9.65% 9.60% 1584.72 9.65% 9.62%
<PAGE>
From 06-23-89 4.0% 1623.58 8.03% 7.99% 1623.58 8.03% 8.01%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
AIFACE
AIFHLTH.150
<S> <C>
06-23-89 7.615822 i
09-99-90 7.802564
09-99-92 9.939941
09-99-94 10.768364
09-99-95 12.880090 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Alger Growth (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
ALGGHLTH ALGGHLTH ALGGHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1381.79 38.18% 38.00% 1381.79 38.18% 38.03% 1381.79 38.18% 38.06%
3 5.0% 1846.01 22.67% 22.50% 1846.01 22.67% 22.53% 1846.01 22.67% 22.55%
5 4.0% 2815.89 23.01% 22.83% 2815.89 23.01% 22.86% 2815.89 23.01% 22.89%
From 01-08-89 4.0% 3149.01 18.60% 18.42% 3149.01 18.60% 18.45% 3149.01 18.60% 18.48%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGGHLTH ALGGHLTH ALGGHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1381.79 38.18% 38.09% 1381.79 38.18% 38.11% 1381.79 38.18% 38.12%
3 5.0% 1846.01 22.67% 22.58% 1846.01 22.67% 22.60% 1846.01 22.67% 22.61%
5 4.0% 2815.89 23.01% 22.92% 2815.89 23.01% 22.93% 2815.89 23.01% 22.95%
From 01-08-89 4.0% 3149.01 18.60% 18.51% 3149.01 18.60% 18.52% 3149.01 18.60% 18.54%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGGHLTH ALGGHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1381.79 38.18% 38.14% 1381.79 38.18% 38.15%
3 5.0% 1846.01 22.67% 22.63% 1846.01 22.67% 22.64%
5 4.0% 2815.89 23.01% 22.96% 2815.89 23.01% 22.98%
<PAGE>
From 01-08-89 4.0% 3149.01 18.60% 18.55% 3149.01 18.60% 18.57%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
ALGGHLTH
ALGGHLTH.150
<S> <C>
01-08-89 3.208363 i
09-99-90 3.587911
09-99-92 5.415969
09-99-94 7.235484
09-99-95 10.524138 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Alger Small Cap (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
ALGHLTH ALGHLTH ALGHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1511.50 51.15% 50.98% 1511.50 51.15% 51.00% 1511.50 51.15% 51.03%
3 5.0% 1825.27 22.21% 22.04% 1825.27 22.21% 22.06% 1825.27 22.21% 22.09%
5 4.0% 2883.69 23.59% 23.42% 2883.69 23.59% 23.45% 2883.69 23.59% 23.47%
From 09-21-88 3.0% 4148.95 22.45% 22.28% 4148.95 22.45% 22.31% 4148.95 22.45% 22.34%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ALGHLTH ALGHLTH ALGHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1511.50 51.15% 51.06% 1511.50 51.15% 51.08% 1511.50 51.15% 51.09%
3 5.0% 1825.27 22.21% 22.12% 1825.27 22.21% 22.14% 1825.27 22.21% 22.15%
5 4.0% 2883.69 23.59% 23.50% 2883.69 23.59% 23.52% 2883.69 23.59% 23.53%
From 09-21-88 3.0% 4148.95 22.45% 22.37% 4148.95 22.45% 22.38% 4148.95 22.45% 22.40%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
<CAPTION>
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
ALGHLTH ALGHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------ ---- --------- ------ ------ --------- ------ ------
1 5.0% 1511.50 51.15% 51.11% 1511.50 51.15% 51.12%
3 5.0% 1825.27 22.21% 22.17% 1825.27 22.21% 22.18%
5 4.0% 2883.69 23.59% 23.55% 2883.69 23.59% 23.56%
<PAGE>
From 09-21-88 3.0% 4148.95 22.45% 22.41% 4148.95 22.45% 22.43%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
ALGHLTH
ALGSCHLTH.150
<S> <C>
09-21-88 3.368489 i
09-99-90 4.796503
09-99-92 7.498879
09-99-94 9.055601
09-99-95 14.407928 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Calvert Responsibly Invested Balanced Portfolio (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
CALHLTH CALHLTH CALHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1164.03 16.40% 16.23% 1164.03 16.40% 16.26% 1164.03 16.40% 16.29%
3 5.0% 1235.47 7.30% 7.13% 1235.47 7.30% 7.16% 1235.47 7.30% 7.19%
5 4.0% 1558.72 9.28% 9.11% 1558.72 9.28% 9.14% 1558.72 9.28% 9.17%
From 09-99-86 2.0% 2334.36 9.88% 9.70% 2334.36 9.88% 9.73% 2334.36 9.88% 9.76%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CALHLTH CALHLTH CALHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1164.03 16.40% 16.32% 1164.03 16.40% 16.33% 1164.03 16.40% 16.35%
3 5.0% 1235.47 7.30% 7.21% 1235.47 7.30% 7.23% 1235.47 7.30% 7.24%
5 4.0% 1558.72 9.28% 9.20% 1558.72 9.28% 9.21% 1558.72 9.28% 9.23%
From 09-99-86 2.0% 2334.36 9.88% 9.79% 2334.36 9.88% 9.80% 2334.36 9.88% 9.82%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CALHLTH CALHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1164.03 16.40% 16.36% 1164.03 16.40% 16.37%
3 5.0% 1235.47 7.30% 7.26% 1235.47 7.30% 7.27%
5 4.0% 1558.72 9.28% 9.24% 1558.72 9.28% 9.25%
<PAGE>
From 09-99-86 2.0% 2334.36 9.88% 9.83% 2334.36 9.88% 9.85%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
CALHLTH
CALHLTH.150
<S> <C>
09-99-86 5.373079 i
09-99-90 7.882558
09-99-92 9.841431
09-99-94 10.445289
09-99-95 12.798656 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Fidelity Contrafund (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
FDCFHLTH FDCFHLTH FDCFHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 01-03-95 5.0% 1309.76 30.98% 30.80% 1309.76 30.98% 30.83% 1309.76 30.98% 30.86%
From 01-03-95 5.0% 1309.76 30.98% 30.80% 1309.76 30.98% 30.83% 1309.76 30.98% 30.86%
From 01-03-95 5.0% 1309.76 30.98% 30.80% 1309.76 30.98% 30.83% 1309.76 30.98% 30.86%
From 01-03-95 5.0% 1309.76 30.98% 30.80% 1309.76 30.98% 30.83% 1309.76 30.98% 30.86%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDCFHLTH FDCFHLTH FDCFHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 01-03-95 5.0% 1309.76 30.98% 30.89% 1309.76 30.98% 30.90% 1309.76 30.98% 30.92%
From 01-03-95 5.0% 1309.76 30.98% 30.89% 1309.76 30.98% 30.90% 1309.76 30.98% 30.92%
From 01-03-95 5.0% 1309.76 30.98% 30.89% 1309.76 30.98% 30.90% 1309.76 30.98% 30.92%
From 01-03-95 5.0% 1309.76 30.98% 30.89% 1309.76 30.98% 30.90% 1309.76 30.98% 30.92%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FDCFHLTH FDCFHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
From 01-03-95 5.0% 1309.76 30.98% 30.93% 1309.76 30.98% 30.95%
From 01-03-95 5.0% 1309.76 30.98% 30.93% 1309.76 30.98% 30.95%
From 01-03-95 5.0% 1309.76 30.98% 30.93% 1309.76 30.98% 30.95%
<PAGE>
From 01-03-95 5.0% 1309.76 30.98% 30.93% 1309.76 30.98% 30.95%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
FDCFHLTH
FDCFHLTH.150
<S> <C>
01-03-95 7.538981 i
09-99-95 10.393882 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Fidelity Growth (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
FIDGHLTH FIDGHLTH FIDGHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1354.46 35.45% 35.27% 1354.46 35.45% 35.30% 1354.46 35.45% 35.33%
3 5.0% 1748.87 20.48% 20.31% 1748.87 20.48% 20.34% 1748.87 20.48% 20.36%
5 4.0% 2563.34 20.72% 20.54% 2563.34 20.72% 20.57% 2563.34 20.72% 20.60%
From 11-07-86 3.0% 3175.81 13.87% 13.70% 3175.81 13.87% 13.73% 3175.81 13.87% 13.75%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FIDGHLTH FIDGHLTH FIDGHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1354.46 35.45% 35.36% 1354.46 35.45% 35.37% 1354.46 35.45% 35.39%
3 5.0% 1748.87 20.48% 20.39% 1748.87 20.48% 20.41% 1748.87 20.48% 20.42%
5 4.0% 2563.34 20.72% 20.63% 2563.34 20.72% 20.64% 2563.34 20.72% 20.66%
From 11-07-86 3.0% 3175.81 13.87% 13.78% 3175.81 13.87% 13.80% 3175.81 13.87% 13.81%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FIDGHLTH FIDGHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1354.46 35.45% 35.40% 1354.46 35.45% 35.42%
3 5.0% 1748.87 20.48% 20.44% 1748.87 20.48% 20.45%
5 4.0% 2563.34 20.72% 20.67% 2563.34 20.72% 20.69%
<PAGE>
From 11-07-86 3.0% 3175.81 13.87% 13.83% 3175.81 13.87% 13.84%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
FIDGHLTH
FIDGHLTH.150
<S> <C>
11-07-86 3.147478 i
09-99-90 3.859312
09-99-92 5.597699
09-99-94 7.227749
09-99-95 10.304932 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Fidelity Equity Income (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
FIDEIHLTH FIDEIHLTH FIDEIHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1179.68 17.97% 17.79% 1179.68 17.97% 17.82% 1179.68 17.97% 17.85%
3 5.0% 1577.43 16.41% 16.23% 1577.43 16.41% 16.26% 1577.43 16.41% 16.29%
5 4.0% 2357.13 18.71% 18.53% 2357.13 18.71% 18.56% 2357.13 18.71% 18.59%
From 10-22-86 3.0% 2538.57 10.98% 10.81% 2538.57 10.98% 10.84% 2538.57 10.98% 10.87%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FIDEIHLTH FIDEIHLTH FIDEIHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1179.68 17.97% 17.88% 1179.68 17.97% 17.90% 1179.68 17.97% 17.91%
3 5.0% 1577.43 16.41% 16.32% 1577.43 16.41% 16.34% 1577.43 16.41% 16.35%
5 4.0% 2357.13 18.71% 18.62% 2357.13 18.71% 18.63% 2357.13 18.71% 18.65%
From 10-22-86 3.0% 2538.57 10.98% 10.90% 2538.57 10.98% 10.91% 2538.57 10.98% 10.93%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FIDEIHLTH FIDEIHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1179.68 17.97% 17.92% 1179.68 17.97% 17.94%
3 5.0% 1577.43 16.41% 16.36% 1577.43 16.41% 16.38%
5 4.0% 2357.13 18.71% 18.66% 2357.13 18.71% 18.68%
<PAGE>
From 10-22-86 3.0% 2538.57 10.98% 10.94% 2538.57 10.98% 10.95%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
FIDEIHLTH
FIDEIHLTH.150
<S> <C>
10-22-86 3.916857 i
09-99-90 4.174864
09-99-92 6.173478
09-99-94 8.254923
09-99-95 10.250722 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Fidelity Overseas (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
FIDOSHLTH FIDOSHLTH FIDOSHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 981.58 -1.84% -2.02% 981.58 -1.84% -1.99% 981.58 -1.84% -1.96%
3 5.0% 1293.67 8.96% 8.79% 1293.67 8.96% 8.82% 1293.67 8.96% 8.84%
5 4.0% 1355.58 6.27% 6.10% 1355.58 6.27% 6.13% 1355.58 6.27% 6.16%
From 02-13-87 3.0% 1567.12 5.35% 5.17% 1567.12 5.35% 5.20% 1567.12 5.35% 5.23%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FIDOSHLTH FIDOSHLTH FIDOSHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 981.58 -1.84% -1.93% 981.58 -1.84% -1.92% 981.58 -1.84% -1.90%
3 5.0% 1293.67 8.96% 8.87% 1293.67 8.96% 8.89% 1293.67 8.96% 8.90%
5 4.0% 1355.58 6.27% 6.19% 1355.58 6.27% 6.20% 1355.58 6.27% 6.22%
From 02-13-87 3.0% 1567.12 5.35% 5.26% 1567.12 5.35% 5.27% 1567.12 5.35% 5.29%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FIDOSHLTH FIDOSHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 981.58 -1.84% -1.89% 981.58 -1.84% -1.87%
3 5.0% 1293.67 8.96% 8.92% 1293.67 8.96% 8.93%
5 4.0% 1355.58 6.27% 6.23% 1355.58 6.27% 6.24%
<PAGE>
From 02-13-87 3.0% 1567.12 5.35% 5.30% 1567.12 5.35% 5.32%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
FIDOSHLTH
FIDOSHLTH.150
<S> <C>
02-13-87 5.928449 i
09-99-90 6.782972
09-99-92 7.033500
09-99-94 9.269799
09-99-95 9.577961 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Franklin Government Securities (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
FRKHLTH FRKHLTH FRKHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1072.35 7.24% 7.06% 1072.35 7.24% 7.09% 1072.35 7.24% 7.12%
3 5.0% 1076.03 2.47% 2.30% 1076.03 2.47% 2.33% 1076.03 2.47% 2.36%
5 4.0% 1370.06 6.50% 6.32% 1370.06 6.50% 6.35% 1370.06 6.50% 6.38%
From 05-30-89 4.0% 1509.90 6.72% 6.54% 1509.90 6.72% 6.57% 1509.90 6.72% 6.60%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FRKHLTH FRKHLTH FRKHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1072.35 7.24% 7.15% 1072.35 7.24% 7.16% 1072.35 7.24% 7.18%
3 5.0% 1076.03 2.47% 2.38% 1076.03 2.47% 2.40% 1076.03 2.47% 2.41%
5 4.0% 1370.06 6.50% 6.41% 1370.06 6.50% 6.43% 1370.06 6.50% 6.44%
From 05-30-89 4.0% 1509.90 6.72% 6.63% 1509.90 6.72% 6.65% 1509.90 6.72% 6.66%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
FRKHLTH FRKHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1072.35 7.24% 7.19% 1072.35 7.24% 7.21%
3 5.0% 1076.03 2.47% 2.43% 1076.03 2.47% 2.44%
5 4.0% 1370.06 6.50% 6.46% 1370.06 6.50% 6.47%
<PAGE>
From 05-30-89 4.0% 1509.90 6.72% 6.67% 1509.90 6.72% 6.69%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
FRKHLTH
FRKHLTH.150
<S> <C>
05-30-89 7.140509 i
09-99-90 7.869333
09-99-92 9.915293
09-99-94 9.949282
09-99-95 11.230693 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Janus Aspen Aggressive Growth (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
JAGHLTH JAGHLTH JAGHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1193.90 19.39% 19.22% 1193.90 19.39% 19.24% 1193.90 19.39% 19.27%
From 09-13-93 5.0% 1529.52 23.08% 22.90% 1529.52 23.08% 22.93% 1529.52 23.08% 22.96%
From 09-13-93 5.0% 1529.52 23.08% 22.90% 1529.52 23.08% 22.93% 1529.52 23.08% 22.96%
From 09-13-93 5.0% 1529.52 23.08% 22.90% 1529.52 23.08% 22.93% 1529.52 23.08% 22.96%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JAGHLTH JAGHLTH JAGHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1193.90 19.39% 19.30% 1193.90 19.39% 19.32% 1193.90 19.39% 19.33%
From 09-13-93 5.0% 1529.52 23.08% 22.99% 1529.52 23.08% 23.00% 1529.52 23.08% 23.02%
From 09-13-93 5.0% 1529.52 23.08% 22.99% 1529.52 23.08% 23.00% 1529.52 23.08% 23.02%
From 09-13-93 5.0% 1529.52 23.08% 22.99% 1529.52 23.08% 23.00% 1529.52 23.08% 23.02%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JAGHLTH JAGHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1193.90 19.39% 19.35% 1193.90 19.39% 19.36%
From 09-13-93 5.0% 1529.52 23.08% 23.03% 1529.52 23.08% 23.05%
From 09-13-93 5.0% 1529.52 23.08% 23.03% 1529.52 23.08% 23.05%
<PAGE>
From 09-13-93 5.0% 1529.52 23.08% 23.03% 1529.52 23.08% 23.05%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
JAGHLTH
JAGHLTH.150
<S> <C>
09-13-93 7.829372 i
09-99-94 10.030260
09-99-95 12.605449 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Janus Aspen Balanced (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
JBALHLTH JBALHLTH JBALHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1085.53 8.55% 8.38% 1085.53 8.55% 8.41% 1085.53 8.55% 8.44%
From 09-13-93 5.0% 1167.11 7.84% 7.67% 1167.11 7.84% 7.70% 1167.11 7.84% 7.73%
From 09-13-93 5.0% 1167.11 7.84% 7.67% 1167.11 7.84% 7.70% 1167.11 7.84% 7.73%
From 09-13-93 5.0% 1167.11 7.84% 7.67% 1167.11 7.84% 7.70% 1167.11 7.84% 7.73%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JBALHLTH JBALHLTH JBALHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1085.53 8.55% 8.47% 1085.53 8.55% 8.48% 1085.53 8.55% 8.50%
From 09-13-93 5.0% 1167.11 7.84% 7.76% 1167.11 7.84% 7.77% 1167.11 7.84% 7.79%
From 09-13-93 5.0% 1167.11 7.84% 7.76% 1167.11 7.84% 7.77% 1167.11 7.84% 7.79%
From 09-13-93 5.0% 1167.11 7.84% 7.76% 1167.11 7.84% 7.77% 1167.11 7.84% 7.79%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JBALHLTH JBALHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1085.53 8.55% 8.51% 1085.53 8.55% 8.52%
From 09-13-93 5.0% 1167.11 7.84% 7.80% 1167.11 7.84% 7.81%
From 09-13-93 5.0% 1167.11 7.84% 7.80% 1167.11 7.84% 7.81%
<PAGE>
From 09-13-93 5.0% 1167.11 7.84% 7.80% 1167.11 7.84% 7.81%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
JBALHLTH
JBALHLTH.150
<S> <C>
09-13-93 8.276858 i
09-99-94 8.898926
09-99-95 10.168414 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Janus Aspen Growth (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
JGHLTH JGHLTH JGHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1163.40 16.34% 16.17% 1163.40 16.34% 16.19% 1163.40 16.34% 16.22%
From 09-13-93 5.0% 1215.81 10.02% 9.84% 1215.81 10.02% 9.87% 1215.81 10.02% 9.90%
From 09-13-93 5.0% 1215.81 10.02% 9.84% 1215.81 10.02% 9.87% 1215.81 10.02% 9.90%
From 09-13-93 5.0% 1215.81 10.02% 9.84% 1215.81 10.02% 9.87% 1215.81 10.02% 9.90%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JGHLTH JGHLTH JGHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1163.40 16.34% 16.25% 1163.40 16.34% 16.27% 1163.40 16.34% 16.28%
From 09-13-93 5.0% 1215.81 10.02% 9.93% 1215.81 10.02% 9.95% 1215.81 10.02% 9.96%
From 09-13-93 5.0% 1215.81 10.02% 9.93% 1215.81 10.02% 9.95% 1215.81 10.02% 9.96%
From 09-13-93 5.0% 1215.81 10.02% 9.93% 1215.81 10.02% 9.95% 1215.81 10.02% 9.96%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JGHLTH JGHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1163.40 16.34% 16.30% 1163.40 16.34% 16.31%
From 09-13-93 5.0% 1215.81 10.02% 9.97% 1215.81 10.02% 9.99%
From 09-13-93 5.0% 1215.81 10.02% 9.97% 1215.81 10.02% 9.99%
<PAGE>
From 09-13-93 5.0% 1215.81 10.02% 9.97% 1215.81 10.02% 9.99%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
JGHLTH
JGHLTH.150
<S> <C>
09-13-93 8.079926 i
09-99-94 8.443898
09-99-95 10.340652 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Janus Aspen Flexible Income (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
JFIHLTH JFIHLTH JFIHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1091.26 9.13% 8.95% 1091.26 9.13% 8.98% 1091.26 9.13% 9.01%
From 09-13-93 5.0% 1081.01 3.88% 3.70% 1081.01 3.88% 3.73% 1081.01 3.88% 3.76%
From 09-13-93 5.0% 1081.01 3.88% 3.70% 1081.01 3.88% 3.73% 1081.01 3.88% 3.76%
From 09-13-93 5.0% 1081.01 3.88% 3.70% 1081.01 3.88% 3.73% 1081.01 3.88% 3.76%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JFIHLTH JFIHLTH JFIHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1091.26 9.13% 9.04% 1091.26 9.13% 9.05% 1091.26 9.13% 9.07%
From 09-13-93 5.0% 1081.01 3.88% 3.79% 1081.01 3.88% 3.81% 1081.01 3.88% 3.82%
From 09-13-93 5.0% 1081.01 3.88% 3.79% 1081.01 3.88% 3.81% 1081.01 3.88% 3.82%
From 09-13-93 5.0% 1081.01 3.88% 3.79% 1081.01 3.88% 3.81% 1081.01 3.88% 3.82%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JFIHLTH JFIHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1091.26 9.13% 9.08% 1091.26 9.13% 9.10%
From 09-13-93 5.0% 1081.01 3.88% 3.84% 1081.01 3.88% 3.85%
From 09-13-93 5.0% 1081.01 3.88% 3.84% 1081.01 3.88% 3.85%
<PAGE>
From 09-13-93 5.0% 1081.01 3.88% 3.84% 1081.01 3.88% 3.85%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
JFIHLTH
JFIHLTH.150
<S> <C>
09-13-93 10.052908 i
09-99-94 9.958451
09-99-95 11.439283 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Janus Aspen Short-Term Bond (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
JSTBHLTH JSTBHLTH JSTBHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1006.11 0.61% 0.44% 1006.11 0.61% 0.47% 1006.11 0.61% 0.49%
From 09-13-93 5.0% 996.51 -0.17% -0.35% 996.51 -0.17% -0.32% 996.51 -0.17% -0.29%
From 09-13-93 5.0% 996.51 -0.17% -0.35% 996.51 -0.17% -0.32% 996.51 -0.17% -0.29%
From 09-13-93 5.0% 996.51 -0.17% -0.35% 996.51 -0.17% -0.32% 996.51 -0.17% -0.29%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JSTBHLTH JSTBHLTH JSTBHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1006.11 0.61% 0.52% 1006.11 0.61% 0.54% 1006.11 0.61% 0.55%
From 09-13-93 5.0% 996.51 -0.17% -0.26% 996.51 -0.17% -0.24% 996.51 -0.17% -0.23%
From 09-13-93 5.0% 996.51 -0.17% -0.26% 996.51 -0.17% -0.24% 996.51 -0.17% -0.23%
From 09-13-93 5.0% 996.51 -0.17% -0.26% 996.51 -0.17% -0.24% 996.51 -0.17% -0.23%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JSTBHLTH JSTBHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1006.11 0.61% 0.57% 1006.11 0.61% 0.58%
From 09-13-93 5.0% 996.51 -0.17% -0.21% 996.51 -0.17% -0.20%
From 09-13-93 5.0% 996.51 -0.17% -0.21% 996.51 -0.17% -0.20%
<PAGE>
From 09-13-93 5.0% 996.51 -0.17% -0.21% 996.51 -0.17% -0.20%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
JSTBHLTH
JSTBHLTH.150
<S> <C>
09-13-93 9.581002 i
09-99-94 9.489621
09-99-95 10.050067 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Janus Aspen Worldwide (ACES HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
JWWHLTH JWWHLTH JWWHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1119.42 11.94% 11.77% 1119.42 11.94% 11.80% 1119.42 11.94% 11.83%
From 09-13-93 5.0% 1345.85 15.62% 15.44% 1345.85 15.62% 15.47% 1345.85 15.62% 15.50%
From 09-13-93 5.0% 1345.85 15.62% 15.44% 1345.85 15.62% 15.47% 1345.85 15.62% 15.50%
From 09-13-93 5.0% 1345.85 15.62% 15.44% 1345.85 15.62% 15.47% 1345.85 15.62% 15.50%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JWWHLTH JWWHLTH JWWHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1119.42 11.94% 11.85% 1119.42 11.94% 11.87% 1119.42 11.94% 11.88%
From 09-13-93 5.0% 1345.85 15.62% 15.53% 1345.85 15.62% 15.55% 1345.85 15.62% 15.56%
From 09-13-93 5.0% 1345.85 15.62% 15.53% 1345.85 15.62% 15.55% 1345.85 15.62% 15.56%
From 09-13-93 5.0% 1345.85 15.62% 15.53% 1345.85 15.62% 15.55% 1345.85 15.62% 15.56%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
JWWHLTH JWWHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1119.42 11.94% 11.90% 1119.42 11.94% 11.91%
From 09-13-93 5.0% 1345.85 15.62% 15.58% 1345.85 15.62% 15.59%
From 09-13-93 5.0% 1345.85 15.62% 15.58% 1345.85 15.62% 15.59%
<PAGE>
From 09-13-93 5.0% 1345.85 15.62% 15.58% 1345.85 15.62% 15.59%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
JWWHLTH
JWWHLTH.150
<S> <C>
09-13-93 7.272941 i
09-99-94 8.744018
09-99-95 10.303466 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Lexington Gold (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
LEXNRHLTH LEXNRHLTH LEXNRHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 981.46 -1.85% -2.03% 981.46 -1.85% -2.00% 981.46 -1.85% -1.97%
3 5.0% 1093.44 3.02% 2.85% 1093.44 3.02% 2.88% 1093.44 3.02% 2.91%
5 4.0% 1505.57 8.53% 8.35% 1505.57 8.53% 8.38% 1505.57 8.53% 8.41%
From 05-99-89 4.0% 1629.48 8.01% 7.84% 1629.48 8.01% 7.87% 1629.48 8.01% 7.90%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LEXNRHLTH LEXNRHLTH LEXNRHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 981.46 -1.85% -1.94% 981.46 -1.85% -1.93% 981.46 -1.85% -1.91%
3 5.0% 1093.44 3.02% 2.93% 1093.44 3.02% 2.95% 1093.44 3.02% 2.96%
5 4.0% 1505.57 8.53% 8.44% 1505.57 8.53% 8.45% 1505.57 8.53% 8.47%
From 05-99-89 4.0% 1629.48 8.01% 7.93% 1629.48 8.01% 7.94% 1629.48 8.01% 7.96%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LEXNRHLTH LEXNRHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 981.46 -1.85% -1.90% 981.46 -1.85% -1.88%
3 5.0% 1093.44 3.02% 2.98% 1093.44 3.02% 2.99%
5 4.0% 1505.57 8.53% 8.48% 1505.57 8.53% 8.50%
<PAGE>
From 05-99-89 4.0% 1629.48 8.01% 7.97% 1629.48 8.01% 7.98%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
LEXNRHLTH
LEXNRHLTH.150
<S> <C>
05-99-89 6.584555 i
09-99-90 7.126512
09-99-92 9.710313
09-99-94 10.818183
09-99-95 11.176494 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Neuberger (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
NEBHLTH NEBHLTH NEBHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1260.79 26.08% 25.90% 1260.79 26.08% 25.93% 1260.79 26.08% 25.96%
3 5.0% 1408.46 12.09% 11.92% 1408.46 12.09% 11.95% 1408.46 12.09% 11.98%
5 4.0% 1937.76 14.15% 13.97% 1937.76 14.15% 14.00% 1937.76 14.15% 14.03%
From 12-99-85 2.0% 2839.38 11.30% 11.12% 2839.38 11.30% 11.15% 2839.38 11.30% 11.18%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
NEBHLTH NEBHLTH NEBHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1260.79 26.08% 25.99% 1260.79 26.08% 26.01% 1260.79 26.08% 26.02%
3 5.0% 1408.46 12.09% 12.01% 1408.46 12.09% 12.02% 1408.46 12.09% 12.04%
5 4.0% 1937.76 14.15% 14.06% 1937.76 14.15% 14.07% 1937.76 14.15% 14.09%
From 12-99-85 2.0% 2839.38 11.30% 11.21% 2839.38 11.30% 11.23% 2839.38 11.30% 11.24%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
NEBHLTH NEBHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1260.79 26.08% 26.04% 1260.79 26.08% 26.05%
3 5.0% 1408.46 12.09% 12.05% 1408.46 12.09% 12.06%
5 4.0% 1937.76 14.15% 14.10% 1937.76 14.15% 14.12%
<PAGE>
From 12-99-85 2.0% 2839.38 11.30% 11.26% 2839.38 11.30% 11.27%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
NEBHLTH
NEBHLTH.150
<S> <C>
12-99-85 5.032596 i
09-99-90 7.223714
09-99-92 9.834910
09-99-94 10.986751
09-99-95 14.581093 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Scudder (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
SCDHLTH SCDHLTH SCDHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 999.69 -0.03% -0.21% 999.69 -0.03% -0.18% 999.69 -0.03% -0.15%
3 5.0% 1327.30 9.90% 9.72% 1327.30 9.90% 9.75% 1327.30 9.90% 9.78%
5 4.0% 1516.65 8.69% 8.51% 1516.65 8.69% 8.54% 1516.65 8.69% 8.57%
From 04-99-87 3.0% 1852.85 7.60% 7.43% 1852.85 7.60% 7.45% 1852.85 7.60% 7.48%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
SCDHLTH SCDHLTH SCDHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 999.69 -0.03% -0.12% 999.69 -0.03% -0.10% 999.69 -0.03% -0.09%
3 5.0% 1327.30 9.90% 9.81% 1327.30 9.90% 9.82% 1327.30 9.90% 9.84%
5 4.0% 1516.65 8.69% 8.60% 1516.65 8.69% 8.61% 1516.65 8.69% 8.63%
From 04-99-87 3.0% 1852.85 7.60% 7.51% 1852.85 7.60% 7.53% 1852.85 7.60% 7.54%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
SCDHLTH SCDHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 999.69 -0.03% -0.08% 999.69 -0.03% -0.06%
3 5.0% 1327.30 9.90% 9.85% 1327.30 9.90% 9.87%
5 4.0% 1516.65 8.69% 8.64% 1516.65 8.69% 8.66%
<PAGE>
From 04-99-87 3.0% 1852.85 7.60% 7.56% 1852.85 7.60% 7.57%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
SCDHLTH
SCDHLTH.150
<S> <C>
04-99-87 7.159307 i
09-99-90 8.656155
09-99-92 9.787953
09-99-94 12.995564
09-99-95 13.675321 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Twentieth Century (ACES ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
TCIGHLTH TCIGHLTH TCIGHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1291.59 29.16% 28.98% 1291.59 29.16% 29.01% 1291.59 29.16% 29.04%
3 5.0% 1501.47 14.51% 14.33% 1501.47 14.51% 14.36% 1501.47 14.51% 14.39%
5 4.0% 2041.49 15.34% 15.17% 2041.49 15.34% 15.20% 2041.49 15.34% 15.23%
From 11-20-87 3.0% 2477.31 12.23% 12.06% 2477.31 12.23% 12.09% 2477.31 12.23% 12.12%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
TCIGHLTH TCIGHLTH TCIGHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1291.59 29.16% 29.07% 1291.59 29.16% 29.09% 1291.59 29.16% 29.10%
3 5.0% 1501.47 14.51% 14.42% 1501.47 14.51% 14.44% 1501.47 14.51% 14.45%
5 4.0% 2041.49 15.34% 15.25% 2041.49 15.34% 15.27% 2041.49 15.34% 15.28%
From 11-20-87 3.0% 2477.31 12.23% 12.15% 2477.31 12.23% 12.16% 2477.31 12.23% 12.18%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
TCIGHLTH TCIGHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 5.0% 1291.59 29.16% 29.12% 1291.59 29.16% 29.13%
3 5.0% 1501.47 14.51% 14.46% 1501.47 14.51% 14.48%
5 4.0% 2041.49 15.34% 15.30% 2041.49 15.34% 15.31%
<PAGE>
From 11-20-87 3.0% 2477.31 12.23% 12.19% 2477.31 12.23% 12.20%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
TCIGHLTH
TCIGHLTH.150
<S> <C>
11-20-87 6.103412 i
09-99-90 7.330027
09-99-92 9.862489
09-99-94 11.465194
09-99-95 15.587685 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Aetna Ascent (ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
ASCNTHLTH ASCNTHLTH ASCNTHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 5.0% 1003.87 0.39% 0.21% 1003.87 0.39% 0.24% 1003.87 0.39% 0.27%
From 07-03-95 5.0% 1003.87 0.39% 0.21% 1003.87 0.39% 0.24% 1003.87 0.39% 0.27%
From 07-03-95 5.0% 1003.87 0.39% 0.21% 1003.87 0.39% 0.24% 1003.87 0.39% 0.27%
From 07-03-95 5.0% 1003.87 0.39% 0.21% 1003.87 0.39% 0.24% 1003.87 0.39% 0.27%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ASCNTHLTH ASCNTHLTH ASCNTHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 5.0% 1003.87 0.39% 0.30% 1003.87 0.39% 0.31% 1003.87 0.39% 0.33%
From 07-03-95 5.0% 1003.87 0.39% 0.30% 1003.87 0.39% 0.31% 1003.87 0.39% 0.33%
From 07-03-95 5.0% 1003.87 0.39% 0.30% 1003.87 0.39% 0.31% 1003.87 0.39% 0.33%
From 07-03-95 5.0% 1003.87 0.39% 0.30% 1003.87 0.39% 0.31% 1003.87 0.39% 0.33%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
ASCNTHLTH ASCNTHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 5.0% 1003.87 0.39% 0.34% 1003.87 0.39% 0.36%
From 07-03-95 5.0% 1003.87 0.39% 0.34% 1003.87 0.39% 0.36%
From 07-03-95 5.0% 1003.87 0.39% 0.34% 1003.87 0.39% 0.36%
<PAGE>
From 07-03-95 5.0% 1003.87 0.39% 0.34% 1003.87 0.39% 0.36%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
ASCNTHLTH
ASCNTHLTH.150
<S> <C>
07-03-95 9.718708 i
09-99-95 10.269749 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Aetna Crossroads (ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
CROSSHLTH CROSSHLTH CROSSHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 5.0% 997.11 -0.29% -0.46% 997.11 -0.29% -0.44% 997.11 -0.29% -0.41%
From 07-03-95 5.0% 997.11 -0.29% -0.46% 997.11 -0.29% -0.44% 997.11 -0.29% -0.41%
From 07-03-95 5.0% 997.11 -0.29% -0.46% 997.11 -0.29% -0.44% 997.11 -0.29% -0.41%
From 07-03-95 5.0% 997.11 -0.29% -0.46% 997.11 -0.29% -0.44% 997.11 -0.29% -0.41%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CROSSHLTH CROSSHLTH CROSSHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 5.0% 997.11 -0.29% -0.38% 997.11 -0.29% -0.36% 997.11 -0.29% -0.35%
From 07-03-95 5.0% 997.11 -0.29% -0.38% 997.11 -0.29% -0.36% 997.11 -0.29% -0.35%
From 07-03-95 5.0% 997.11 -0.29% -0.38% 997.11 -0.29% -0.36% 997.11 -0.29% -0.35%
From 07-03-95 5.0% 997.11 -0.29% -0.38% 997.11 -0.29% -0.36% 997.11 -0.29% -0.35%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
CROSSHLTH CROSSHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 5.0% 997.11 -0.29% -0.33% 997.11 -0.29% -0.32%
From 07-03-95 5.0% 997.11 -0.29% -0.33% 997.11 -0.29% -0.32%
From 07-03-95 5.0% 997.11 -0.29% -0.33% 997.11 -0.29% -0.32%
<PAGE>
From 07-03-95 5.0% 997.11 -0.29% -0.33% 997.11 -0.29% -0.32%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
CROSSHLTH
CROSSHLTH.150
<S> <C>
07-03-95 9.766118 i
09-99-95 10.250378 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<PAGE>
02/07/96 16:06:45
Aetna Legacy (ACCT C HLTH150.WWO
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Gross Deposit: 1000.00
Net Deposit: 1000.00
Redeemable Value
-------------------------------------------------------------------------------------
LEGCYHLTH LEGCYHLTH LEGCYHLTH
Nom. 30.00 M.F. (0.175%) Nom. 25.00 M.F. (0.146%) Nom. 20.00 M.F. (0.117%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 5.0% 989.08 -1.09% -1.27% 989.08 -1.09% -1.24% 989.08 -1.09% -1.21%
From 07-03-95 5.0% 989.08 -1.09% -1.27% 989.08 -1.09% -1.24% 989.08 -1.09% -1.21%
From 07-03-95 5.0% 989.08 -1.09% -1.27% 989.08 -1.09% -1.24% 989.08 -1.09% -1.21%
From 07-03-95 5.0% 989.08 -1.09% -1.27% 989.08 -1.09% -1.24% 989.08 -1.09% -1.21%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LEGCYHLTH LEGCYHLTH LEGCYHLTH
Nom. 15.00 M.F. (0.088%) Nom. 12.50 M.F. (0.073%) Nom. 10.00 M.F. (0.058%)
# of Years --------------------------- --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 5.0% 989.08 -1.09% -1.18% 989.08 -1.09% -1.17% 989.08 -1.09% -1.15%
From 07-03-95 5.0% 989.08 -1.09% -1.18% 989.08 -1.09% -1.17% 989.08 -1.09% -1.15%
From 07-03-95 5.0% 989.08 -1.09% -1.18% 989.08 -1.09% -1.17% 989.08 -1.09% -1.15%
From 07-03-95 5.0% 989.08 -1.09% -1.18% 989.08 -1.09% -1.17% 989.08 -1.09% -1.15%
- ------------------------------------------------------------------------------
Gross Deposit: 1000.00
Net Deposit: 1000.00
<CAPTION>
Redeemable Value
-------------------------------------------------------------------------------------
LEGCYHLTH LEGCYHLTH
Nom. 7.50 M.F. (0.044%) Nom. 5.00 M.F. (0.029%)
# of Years --------------------------- ---------------------------
Ending 9-95 DSC Value IRR MF IRR Value IRR MF IRR
- ------------ ---- --------- ------ ------ --------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
From 07-03-95 5.0% 989.08 -1.09% -1.14% 989.08 -1.09% -1.12%
From 07-03-95 5.0% 989.08 -1.09% -1.14% 989.08 -1.09% -1.12%
From 07-03-95 5.0% 989.08 -1.09% -1.14% 989.08 -1.09% -1.12%
<PAGE>
From 07-03-95 5.0% 989.08 -1.09% -1.14% 989.08 -1.09% -1.12%
<CAPTION>
Accumulation Unit Values
------------------------------------------------------------
LEGCYHLTH
LEGCYHLTH.150
<S> <C>
07-03-95 9.833275 i
09-99-95 10.237847 i
</TABLE>
(Unit values marked 'i' are used for from-inception calculations.)
(Day = 99 means end-of-month.)
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000103007
<NAME> VARIABLE ANNUITY ACCOUNT C
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 5,225,202,574
<INVESTMENTS-AT-VALUE> 6,262,371,287
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 6,262,371,287
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 6,262,371,287
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 6,262,371,287
<DIVIDEND-INCOME> 183,518,463
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 50,893,041
<NET-INVESTMENT-INCOME> 0
<REALIZED-GAINS-CURRENT> 53,570,112
<APPREC-INCREASE-CURRENT> 963,689,480
<NET-CHANGE-FROM-OPS> 1,149,885,014
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
