As filed with the Securities and Exchange Registration No. 33-91846*
Commission on October 30, 1997 Registration No. 811-2513
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
- --------------------------------------------------------------------------------
Post-Effective Amendment No. 12 To
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
and Amendment to
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
- --------------------------------------------------------------------------------
Variable Annuity Account C of Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, RE4A, Hartford, Connecticut 06156
Depositor's Telephone Number, including Area Code: (860) 273-4686
Julie E. Rockmore, Counsel
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, RE4A, Hartford, Connecticut 06156
(Name and Address of Agent for Service)
- --------------------------------------------------------------------------------
It is proposed that this filing will become effective:
[ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485
[X] on December 31, 1997 pursuant to paragraph (a)(1) of Rule 485
*Pursuant to Rule 429(a) under the Securities Act of 1933, Registrant has
included a combined prospectus under this Registration Statement which includes
all the information which would currently be required in a prospectus relating
to the securities covered by the following earlier Registration Statement:
33-75976.
<PAGE>
VARIABLE ANNUITY ACCOUNT C
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
LOCATION - PROSPECTUS DATED MAY 1, 1997 AND AS
FORM N-4 AMENDED BY SUPPLEMENTS DATED
ITEM NO. PART A (PROSPECTUS) AUGUST 21, 1997 AND
DECEMBER 31, 1997
<S> <C> <C> <C>
1 Cover Page.......................................... Cover Page, and as amended
2 Definitions......................................... Definitions
3 Synopsis............................................ Prospectus Summary; Fee Table, and as amended
4 Condensed Financial Information..................... Condensed Financial Information
5 General Description of Registrant, Depositor, and
Portfolio Companies................................. The Company; Variable Annuity Account C; The
Funds, and as amended
6 Deductions and Expenses............................. Charges and Deductions, and as amended;
Distribution
7 General Description of Variable Annuity Contracts... Purchase; Miscellaneous
8 Annuity Period...................................... Annuity Period
9 Death Benefit....................................... Death Benefit During Accumulation Period; Death
Benefit Payable During the Annuity Period
10 Purchases and Contract Value........................ Purchase; Contract Valuation
11 Redemptions......................................... Right to Cancel; Withdrawals
12 Taxes............................................... Tax Status
13 Legal Proceedings................................... Miscellaneous - Legal Matters and Proceedings
14 Table of Contents of the Statement of Additional
Information......................................... Contents of the Statement of Additional
Information
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
FORM N-4 ITEM NO. PART B (STATEMENT OF ADDITIONAL INFORMATION) LOCATION - STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1997
<S> <C> <C> <C>
15 Cover Page........................................... Cover page
16 Table of Contents.................................... Table of Contents
17 General Information and History...................... General Information and History
18 Services............................................. General Information and History; Independent
Auditors
19 Purchase of Securities Being Offered................. Offering and Purchase of Contracts
20 Underwriters......................................... Offering and Purchase of Contracts
21 Calculation of Performance Data...................... Performance Data; Average Annual Total Return
Quotations
22 Annuity Payments..................................... Annuity Payments
23 Financial Statements................................. Financial Statements
</TABLE>
Part C (Other Information)
--------------------------
Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C to this Registration Statement.
<PAGE>
PARTS A AND B
The Prospectus and the Statement of Additional Information are incorporated into
Part A and B of this Post-Effective Amendment No. 12, respectively, by reference
to Post-Effective Amendment No. 10 to the Registration Statement on Form N-4
(File No. 33-91846), as filed electronically on April 11, 1997 (Accession No.
0000950146-97-000581) and by reference to a Supplement to the Prospectus dated
August 21, 1997, as contained in Post-Effective Amendment No. 11 to the
Registration Statement on Form N-4 (File No. 33-91846), as filed electronically
on August 19, 1997 (Accession No. 0000950146-97-001307) and by reference to a
Supplement to the Prospectus dated December 31, 1997 which is included in this
Post-Effective Amendment No. 12.
<PAGE>
Aetna Life Insurance and Annuity Company
Variable Annuity Account C
Retirement Programs for Educational Institutions
Supplement Dated December 31, 1997 to
Prospectus Dated May 1, 1997 as amended on August 21, 1997
The Prospectus dated May 1, 1997 as amended by Supplement dated August 21,
1997, is amended as follows:
Fee Table - 1
The first footnote under item 1 "CHARGES AGAINST THE SEPARATE ACCOUNT" in the
section captioned "TABLE A - FOR MASTER CONTRACTS ISSUED OR ENDORSED ON OR
AFTER OCTOBER 1, 1996" is replaced with the following:
* The mortality and expense risk charge during the Accumulation Period may be
reduced for Contracts to Plans that meet certain criteria. See "Charges and
Deductions."
SUBJECT TO COMPLETION OR AMENDMENT
INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A
REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY
OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES
EFFECTIVE. THIS PROSPECTUS SUPPLEMENT SHALL NOT CONSTITUTE AN OFFER TO SELL OR
THE SOLICITATION OF ANY OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE
SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE
UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF
ANY SUCH STATE.
The Date of this Supplement is December 31, 1997
X91846-97
<PAGE>
Prospectus, Pages 5-6
The first paragraph of the section entitled "Mortality and Expense Risk Charge"
under "Charges and Deductions" is replaced with the following:
Mortality and Expense Risk Charge. The Company makes a daily deduction from each
of the Subaccounts for the mortality and expense risk charge. For Master
Contracts issued on or after October 1, 1996 (and for Master Contracts issued
prior to that date that are endorsed to contain this provision), during the
Accumulation Period, the charge is equal, on an annual basis, to 1.00% of the
daily net assets of the Subaccounts. However, in certain circumstances where the
risk of adverse mortality and/or expense experience associated with a Master
Contract issued to a Plan on or after December 31, 1997 (and for Master
Contracts issued prior to that date that are endorsed to allow for a reduction
in the mortality and expense risk charge), may be reduced, subject to applicable
state regulatory approval, the mortality and expense risk charge applicable to
that Master Contract may also be reduced. Whether such a reduction is available
will be determined by the Company based upon consideration of some or all of the
following factors:
(1) the size of the prospective group;
(2) projected annual Purchase Payments for the number of Participants estimated
to choose the Contract;
(3) the frequency of projected distributions;
(4) the type and level of administrative and sales services to be provided;
(5) the retirement program design. For example, the retirement program design,
may favor the stability of invested assets and limit the conditions for
surrenders, loans, and investment options available which, in turn, will
lower administrative expenses.
Prospective purchasers eligible for a reduction in the mortality and expense
risk charge will be notified of their eligibility and the amount of the charge
applicable to their Contract prior to the Company's acceptance of an application
for the Contract. Any reduction of the mortality and expense risk charge will
not be unfairly discriminatory against any person.
Prospectus, Page 25
Appendix VI entitled "Contracts Acquired by Exchange" is inserted following
Appendix V.
APPENDIX VI
CONTRACTS ACQUIRED BY EXCHANGE
Certain holders of contracts issued by the Company may exchange their
contract(s) (the "Exchanged Contracts") for the Contract (the "Acquired
Contract"). The Company will not assess any charges or deductions in connection
with an exchange. See "Deferred Sales Charge" below. Upon an exchange, the
rights of the Exchanged Contract holder and Participants under the Exchanged
Contract will be governed by the Acquired Contract.
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, if
applicable, 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 and the Fixed Account, the
availability of the Fixed Account, and the tables on which Annuity payments are
based.
<PAGE>
SPECIAL ACQUIRED CONTRACTS PROVISIONS
Except as follows, the terms of the Acquired Contracts are identical to the
Contracts described in the Prospectus:
DEFERRED SALES CHARGE
If the Exchanged Contract contained a deferred sales charge (DSC), Account
Values attributable to Exchanged Contracts, (other than amounts exchanged from
the Fixed Plus Account) are subject to a DSC upon withdrawal. The DSC will vary
according to the period of time between the effective date of the Individual
Account under the Exchanged Contract and the date of withdrawal as follows:
Deferred Sales Charge
If the Period of Time is (as a percentage of the amount withdrawn*)
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%
* This sets forth the DSC schedule for 9 years, the maximum duration of the
DSC. The total amount deducted for the DSC will not exceed 8.5% of the total
Purchase Payments actually made to an Individual Account.
No DSC is deducted from any portion of the Individual Account which is paid:
1. At the death of a Participant before Annuity payments start;
2. To provide Annuity benefits for a Participant under a Contract;
3. When the Individual Account Value is $3,500 or less and no withdrawals have
been taken from the Individual Account within the prior 12 months. If there
is more than one Individual Account under the Contract for a Participant,
then this provision will only apply when the total in all of the
Participant's Individual Accounts is $3,500 or less;
4. In an amount equal to or less than 10% of the Individual Account 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 age 70-1/2. The
Individual Account Value is calculated as of the date the partial withdrawal
request is received in good order at the Company's Home Office. Any
outstanding loans from the Participant's Individual Account are excluded
when calculating the Individual Account Value. This waiver does not apply to
partial withdrawals due to loan defaults made from Individual Account Values
and does not apply to full withdrawal requests. This waiver is not available
for partial withdrawals requested when an Additional Withdrawal Option is in
effect in the same calendar year; or
5. On account of a Participant's separation from service. The Contract Holder
must submit documentation satisfactory to the Company to confirm that the
Participant is no longer providing services to the employer.
FIXED ACCOUNT
If made available under the Acquired Contract, the Fixed Account is an
investment option available only for amounts previously held in the Fixed
Account under the Exchanged Contract. For details about the Fixed Account
including restrictions on withdrawals and transfers, see Appendix V.
In addition to the conditions specified in Appendix V regarding when the
Company may defer payment of a Fixed Account withdrawal value, if allowed by
state law, the Company may pay any Fixed Account withdrawal requested from the
Contract in equal payments, with interest, over a period not to exceed 60
months when:
1. 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
2. The sum of the current Fixed Account withdrawal requested and the total of
all Fixed Account withdrawals from the Contract or any Account under the
Contract within the past 12 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 the class of
Contract. In no event will the interest rate be less than the minimum stated in
the Contract.
<PAGE>
FIXED PLUS ACCOUNT
All amounts transferred or allocated to the Fixed Plus Account on or after the
Acquired Contract effective date will be subject to the Fixed Plus Account
rules described below.
The following summarizes material information concerning the Fixed Plus
Account. Amounts allocated to the Fixed Plus Account are held in the Company's
general account that supports general 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 the Prospectus regarding the Fixed Plus Account, may, however, be subject to
certain generally applicable provisions of the federal securities laws relating
to the accuracy and completeness of such statements. Disclosure in this
Appendix regarding the Fixed Plus Account has not been reviewed by the SEC.
The Fixed Plus Account guarantees the minimum Fixed Plus interest rate
specified in the Contract. The Company may credit a higher interest rate from
time to time. The current rate is subject to change at any time, but will never
fall below the guaranteed minimum. 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 the Fixed Plus Account, the Company assumes the risk of
investment gain or loss by guaranteeing Account 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.
Under certain emergency conditions, We may defer payment of a Fixed Plus
Account withdrawal value (a) for a period of up to 6 months; or (b) as provided
by federal law.
The Company reserves the right to limit Purchase Payment(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, loans 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 any
Additional Withdrawal Options.
The 20% limit is waived if the partial withdrawal is due to annuitization or
death of the Participant. The waiver upon death may only be exercised once and
must occur within six months after the Participant's date of death and before
the Annuity Date. Any such withdrawal or annuitization must also be made pro
rata from all Subaccounts and Credited Interest Options available under the
Contract.
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:
1. One-fifth of the Fixed Plus Account Value on the day the request is
received, reduced by any Fixed Plus Account withdrawals, transfers, loans or
annuitizations made during the prior 12 months;
2. One-fourth of the remaining Fixed Plus Account Value 12 months later;
3. One-third of the remaining Fixed Plus Account Value 12 months later;
4. One-half of the remaining Fixed Plus Account Value 12 months later; and
5. The balance of the Fixed Plus Account Value 12 months later.
Once We receive a request for a full withdrawal, no further withdrawals, loans
or transfers will be permitted from the Fixed Plus Account. A full withdrawal
from the Fixed Plus Account may be canceled at any time before the end of the
five-payment period. We will waive the Fixed Plus Account full withdrawal
provision if a full withdrawal is made:
<PAGE>
(a) due to Your death, before Annuity payments begin;
(b) due to the election of an Annuity option;
(c) when the Fixed Plus Account value is $3,500 or less (and no withdrawals,
loans, transfers or annuitizations have been made from the Account within
the prior 12 months);
(d) due to hardship if the following conditions are met:
(1) the hardship is certified by the employer;
(2) the amount is paid directly to You; and
(3) the amount paid for all withdrawals due to hardship during the previous
12-month period does not exceed 10% of the average value of all Accounts
during that same period; or
(e) due to Your separation from service with the employer, provided that:
(1) the employer certifies that You have separated from service;
(2) the amount withdrawn is paid directly to You; and
(3) the amount paid for all partial and full withdrawals due to separation
from service during the previous 12-month period does not exceed 20% of
the average value of all Accounts under the Contract during that same
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 We receive a written request,
reduced by any Fixed Plus Account withdrawals, transfers, loans or
annuitizations made during the prior 12 months. In calculating the 20% limit,
We reserve the right to include payments made due to the election of one of the
Additional Withdrawal Options. The 20% limit on transfers will be waived when
the value in the Fixed Plus Account is $1,000 or less on the date the request
is received in good order at the Home Office.
By notifying Us at our Home Office at least 30 days before the Annuity Date,
You may elect to have amounts which have been accumulating under the Fixed Plus
Account transferred to one or more of the Subaccounts available during the
Annuity Period to provide lifetime variable Annuity Payments. For amounts which
have been accumulating under the Fixed Plus Account, a nonlifetime annuity
option may only be elected on a fixed basis.
ADDITIONAL WITHDRAWAL OPTIONS
Certain withdrawal options may not be elected if You have requested a Fixed
Plus Account transfer or withdrawal within the prior 12 month period.
CONTRACT LOANS
If permitted under the Plan, loans may be made from Account Values held in the
Fixed Plus Account. See the loan agreement for a description of the amount
available and the consequences upon loan default if more than 20% of the Fixed
Plus Account Value is used for a loan.
X91846-97
<PAGE>
VARIABLE ANNUITY ACCOUNT C
PART C - OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
(1) Included in Part A:
Condensed Financial Information
(2) Included in Part B:
Financial Statements of Variable Annuity Account C:
- Statement of Assets and Liabilities as of December 31,
1996
- Statements of Operations and Changes in Net Assets for the
years ended December 31, 1996 and 1995
- Notes to Financial Statements
- Independent Auditors' Report
Financial Statements of the Depositor:
- Independent Auditors' Report
- Consolidated Statements of Income for the years ended
December 31, 1996, 1995 and 1994
- Consolidated Balance Sheets as of December 31, 1996 and
1995
- Consolidated Statements of Changes in Shareholder's Equity
for the years ended December 31, 1996, 1995 and 1994
- Consolidated Statements of Cash Flows for the years ended
December 31, 1996, 1995 and 1994
- 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) Broker-Dealer Agreement(2)
(3.2) Alternative Form of Wholesale Agreement and Related Selling
Agreement(2)
(4.1) Variable Annuity Contract (G-CDA-IB(ATORP)) and Endorsement
(EGET-IC(R))(3)
(4.2) Variable Annuity Contract and Certificate (G-CDA-95(TORP) and
(GTCC-95(TORP))(3)
(4.3) Variable Annuity Contract (G-CDA-IB(AORP)) and Endorsement
(EGET-IC(R))(3)
(4.4) Variable Annuity Contract and Certificate (G-CDA-95(ORP) and
(GTCC-95(ORP))(3)
(4.5) Variable Annuity Contract (G-CDA-96(TORP))(4)
(4.6) Variable Annuity Contract (G-CDA-96(ORP)
(4.7) Variable Annuity Contract Certificate (GTCC-96(TORP))
<PAGE>
(4.8) Variable Annuity Contract Certificate (GTCC-96(ORP))
(4.9) Endorsement (GET 9/96) to Variable Annuity Contracts
and Certificates G-CDA-95(TORP), GTCC95(TORP), G-CDA-95(ORP)
and GTCC-95(ORP)(4)
(4.10) Form of Endorsement (EORPEX97LAMS) to Contracts G-CDA-96 (ORP)
and G-CDA-96(TORP) and Certificates GTCC-96(ORP) and
GTCC-96(TORP)
(5) Variable Annuity Contract Application (300-MOP-IB)(5)
(6.1) Certification of Incorporation of Aetna Life Insurance and
Annuity Company(6)
(6.2) Amendment of Certificate of Incorporation of Aetna Life
Insurance and Annuity Company(7)
(6.3) By-Laws, as amended September 17, 1997, of Aetna Life
Insurance and Annuity Company
(7) Not applicable
(8.1) 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(2)
(8.2) Second Amendment dated January 1, 1996 to 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(8)
(8.3) Third Amendment dated February 11, 1997 to 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 and
January 1, 1996(9)
(8.4) Fourth Amendment dated February 28, 1997 to 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,
January 1, 1996 and February 11, 1997(10)
(8.5) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1,
1996 and March 1, 1996(7)
(8.6) Fifth Amendment, dated as of May 1, 1997, to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1996, May 1, 1995, January 1,
1996 and March 1, 1996(11)
(8.7) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated
<PAGE>
February 1, 1994 and amended on December 15, 1994, February 1,
1995, May 1, 1995, January 1, 1996 and March 1,1996(7)
(8.8) Fifth Amendment, dated as of May 1, 1997, to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994 and
amended on December 15, 1994, February 1, 1996, May 1, 1995,
January 1, 1996 and March 1, 1996(11)
(8.9) Service Agreement between Aetna Life Insurance and Annuity
Company and Fidelity Investments Institutional Operations
Company dated as of November 1, 1995(8)
(8.10) Amendment dated January 1, 1997 to Service Agreement between
Aetna Life Insurance and Annuity Company and Fidelity
Investments Institutional Operations Company dated as of
November 1, 1995(11)
(8.11) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Janus Aspen Series dated April 19, 1994
and amended June 15, 1994, July 31, 1995 and March 1, 1996(11)
(8.12) 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(2)
(9) Opinion and Consent of Counsel
(10) Consent of Independent Auditors
(11) Not applicable
(12) Not applicable
(13) Schedule for Computation of Performance Data(12)
(14) Not applicable
(15.1) Powers of Attorney(11)
(15.2) Authorization for Signatures(2)
(27) Financial Data Schedule
1. Incorporated by reference to Post-Effective Amendment No. 6 to Registration
Statement on Form N-4 (File No. 33-75986), as filed electronically on April
22, 1996 (Accession No. 0000950146-96-000563).
2. Incorporated by reference to Post-Effective Amendment No. 5 to Registration
Statement on Form N-4 (File No. 33-75986), as filed electronically on April
12, 1996 (Accession No. 0000912057-96-006383).
3. Incorporated by reference to Post-Effective Amendment No. 3 to Registration
Statement on Form N-4 (File No. 33-91846), as filed electronically on April
15, 1996 (Accession No. 0000912057-96-006418).
4. Incorporated by reference to Post-Effective Amendment No. 6 to Registration
Statement on Form N-4 (File No. 33-91846), as filed electronically on August
6, 1996 (Accession No. 0000912057-96-016381).
<PAGE>
5. Incorporated by reference to Post-Effective Amendment No. 11 to Registration
Statement on Form N-4 (File No. 33-91846), as filed electronically on August
19, 1997 (Accession No. 0000950146-97-001307).
6. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form S-1 (File No. 33-60477), as filed electronically on April
15, 1996 (Accession No. 0000950146-96-000534).
7. Incorporated by reference to Post-Effective Amendment No. 12 to Registration
Statement on Form N-4 (File No. 33-75964), as filed electronically on
February 11, 1997 (Accession No. 0000950146-97-000159).
8. Incorporated by reference to Post-Effective Amendment No. 3 to Registration
Statement on Form N-4 (File No. 33-88720), as filed electronically on June
28, 1996 (Accession No. 0000928389-96-000136).
9. Incorporated by reference to Post-Effective Amendment No. 4 to Registration
Statement on Form N-4 (File No. 333-01107), as filed electronically on
February 26, 1997 (Accession No. 0000950146-97-000241).
10. Incorporated by reference to Post-Effective Amendment No. 14 to Registration
Statement on Form N-4 (File No. 33-75964), as filed electronically on July
29, 1997 (Accession No. 0000950146-97-001101).
11. Incorporated by reference to Post-Effective Amendment No. 30 to Registration
Statement on Form N-4 (File No. 33-34370), as filed electronically on
September 29, 1997 (Accession No. 0000950146-97-001485).
12. Incorporated by reference to Post-Effective Amendment No. 1 to Registration
Statement on Form N-4 (File No. 33-91846), as filed electronically on August
16, 1995 (Accession No. 0000950109-95-003255).
<PAGE>
Item 25. Directors and Officers of the Depositor
Name and Principal
Business Address* Positions and Offices with Depositor
- ------------------ ------------------------------------
Thomas J. McInerney Director and President
Timothy A. Holt Director, Senior Vice President and Chief Financial
Officer
Christopher J. Burns Director and Senior Vice President
J. Scott Fox Director and Senior Vice President
John Y. Kim Director and Senior Vice President
Shaun P. Mathews Director and Senior Vice President
Glen Salow Director and Vice President
Deborah Koltenuk Vice President and Treasurer, Corporate Controller
Frederick D. Kelsven Vice President and Chief Compliance Officer
Kirk P. Wickman Vice President, General Counsel and Corporate Secretary
* 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
Attached is a listing of all persons directly or indirectly controlled by
or under common control with the Registrant. The listing indicates (1) the state
or other sovereign power under the laws of which the entity is organized, (2)
the percentage of voting securities owned or other basis of control by the
person, if any, immediately controlling it (percentages are rounded to the
nearest whole percentage and are based on ownership of voting rights), and (3)
its principal business.
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Inc. CT (1) Publicly Held Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Services, Inc. CT (1) (*) Aetna Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare Inc. PA (1) (*) Aetna Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Risk Indemnity Bermuda (1) (*) Aetna Inc. 100% Insurance
Company Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance Company CT (1) (*) Aetna Services, Inc. 100% Life and Health Insurance and
Related Services
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Retirement Services, Inc. CT (1) (*) Aetna Services, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International, Inc. CT (1) (*) Aetna Services, Inc. 100% Holding Company for International
Subsidiaries
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health and Life CT (1) (*) Aetna Services, Inc. 100% Life and Health Insurance
Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
Structured Benefits, Inc. CT (1) (*) Aetna Services, Inc. 100% Broker of Life and Annuity Products
and Administrative Services
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Corporation (*) Fully Consolidated
(2) Partnership (**) One Line Consolidation
(3) Joint Venture (***) Not Consolidated
(4) Trust
(5) Limited Liability Company
+ Percentages are rounded to the nearest whole percent and are based on
ownership of voting rights.
1
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
AUSHC Holdings, Inc. CT (1) (*) Aetna Services, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Foundation, Inc. CT (1) (*) Aetna Services, Inc. 100%a Supports Charitable Scientific,
Literary and Educational
Activities
- ------------------------------------------------------------------------------------------------------------------------------------
Imperial Fire & Marine U.K. (1) (***) Aetna Services, Inc. 10% Reinsurance
Re-Insurance Company Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Business Resources, Inc. CT (1) (*) Aetna Services, Inc. 100% Provides Business Services to
External Clients
- ------------------------------------------------------------------------------------------------------------------------------------
AE Fifteen, Incorporated CT (1) (*) Aetna Services, Inc. 100% Shell Corp. for Interest in
Cogeneration
- ------------------------------------------------------------------------------------------------------------------------------------
Luettgens Limited CT (1) (*) Aetna Services, Inc. 100% Retail Specialty Store
- ------------------------------------------------------------------------------------------------------------------------------------
AE Housing Corp. CT (1) (*) Aetna Services, Inc. 100% Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Capital L.L.C. DE (5) (*) Aetna Services, Inc. 95%b Finance - Limited Liability
Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Realty Investments I, Inc. CT (1) (*) Aetna Services, Inc. 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Structured Benefits of Florida, FL (1) (**) Structured Benefits, Inc. 100% Brokering of Life and Annuity
Inc. Products and Administrative
Services
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Properties I Limited CT (2) (***) Aetna Realty Investments I, 84%c Real Estate Investment
Partnership Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
PHPSNE Parent Corporation DE (1) (*) AUSHC Holdings, Inc. 55% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
a Nonstock Corporation
b Aetna Capital Holdings, Inc. owns 5% of this Limited Liability Company.
c Aetna Realty Investments I, Inc. is a 1% general partner and an 83% limited
partner.
2
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Health Plans of Southern CT (1)(*) PHPSNE Parent Corporation 100% Health Care
New England, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
CMBS Holdings, Inc. TX (1) (*) Aetna Life Insurance 100% Real Estate Investment and
Company Management
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Real Estate Properties, CT (1) (*) Aetna Life Insurance 100% Acquire, Develop and Lease Real
Inc. Company Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Midway L.L.C. DE (5) (*) Aetna Life Insurance 100% Real Estate Investment
Company
- ------------------------------------------------------------------------------------------------------------------------------------
CDI Equity, Inc. DE (1) (*) Aetna Life Insurance 100% General Business Corporation
Company
- ------------------------------------------------------------------------------------------------------------------------------------
CDI Equity L.L.C. DE (5) (*) Aetna Life Insurance 99%d General Business Corporation
Company
- ------------------------------------------------------------------------------------------------------------------------------------
AE Fourteen, Inc. CT (1) (*) Aetna Life Insurance 100% Cogeneration
Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Assignment Company CT (1) (*) Aetna Life Insurance 100% Assignment Company for Structured
Company Settlements
- ------------------------------------------------------------------------------------------------------------------------------------
Bayshore Heights Associates FL (2) (**) Aetna Life Insurance 70% Real Estate
Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna/Area Corporation CT (1) (*) Aetna Life Insurance 100% Real Estate Investment and
Company Management
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Institutional Investors I CT (2) (**) Aetna Life Insurance 13%e Real Estate Investment
Limited Partnership Company
- ------------------------------------------------------------------------------------------------------------------------------------
Shadow Ridge At Oak Park CA (2) (**) Aetna Life Insurance 80% Real Estate
Condominium Associates Company
- ------------------------------------------------------------------------------------------------------------------------------------
BPC Equity, Inc. DE (1) (*) Aetna Life Insurance 100% General Business Corporation
Company
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
d CDI Equity, Inc. owns 1% of this Limited Liability Company.
e Aetna Real Estate Properties, Inc. is a 1% general partner.
3
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
BPC Equity, L.L.C. DE (5) (*) Aetna Life Insurance Company 99%f General Business Corporation
- ------------------------------------------------------------------------------------------------------------------------------------
AHP Holdings, Inc. CT (1) (*) Aetna Life Insurance Company 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Bay Area Mall, L.L.C. DE (5) (*) Aetna Life Insurance Company 99%g Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Bay Area Mall, Inc. DE (1) (*) Aetna Life Insurance Company 100% Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
455 Market Street CA (2) (**) Aetna Life Insurance Company 90%h Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Koll Center Newport A CA (2) (**) Aetna Life Insurance Company 50%i Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Koll Center Newport Number 8 CA (2) (**) Aetna Life Insurance Company 50%j Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Koll Center Newport Number 9 CA (2) (**) Aetna Life Insurance Company 50%k Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Koll Center Newport Number 10 CA (2) (**) Aetna Life Insurance Company 50%l Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Koll Center Newport Number 11 CA (2) (**) Aetna Life Insurance Company 50%m Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Koll Center Newport Number 14 CA (3) (**) Aetna Life Insurance Company 60% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
f BPC Equity, Inc. owns 1% of this Limited Liability Company.
g Bay Area Mall, Inc. owns 1% of this Limited Liability Company.
h 89% general partner and 1% limited partner.
i Aetna Life Insurance Company is a 49% general partner and a 1% limited
partner.
j Aetna Life Insurance Company is a 49% general partner and a 1% limited
partner.
k Aetna Life Insurance Company is a 49% general partner and a 1% limited
partner.
l Aetna Life Insurance Company is a 49% general partner and a 1% limited
partner.
m Aetna Life Insurance Company is a 49% general partner and a 1% limited
partner.
4
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Hamilton Partnership IL (2) (**) Aetna Life Insurance Company 62% Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
Waterloo Associates Limited NC (2) (**) Aetna Life Insurance Company 99%n Real Estate Investment
Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
Hayward Industrial Park CT (2) (**) Aetna Life Insurance Company 99% Real Estate Investment
Associates
- ------------------------------------------------------------------------------------------------------------------------------------
Gables At Farmington Associates CT (2) (**) Aetna Life Insurance Company 60% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Gables at Brighton Associates NY (2) (**) Aetna Life Insurance Company 50% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Country Club Heights at Woburn MA (2) (**) Aetna Life Insurance Company 60% Real Estate Investment
Associates
- ------------------------------------------------------------------------------------------------------------------------------------
Britcher Aetna-Laguna Hills CA (2) (**) Aetna Life Insurance Company 68% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Harbor Business Park CA (2) (**) Aetna Life Insurance Company 99% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Ensenada De Las Colinas I TX (2) (**) Aetna Life Insurance Company 99%o Real Estate Investment
Associates
- ------------------------------------------------------------------------------------------------------------------------------------
Trevose Hospitality, Inc. CT (1) (**) Aetna Life Insurance Company 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Oaks at Valley Ranch I TX (2) (**) Aetna Life Insurance Company 99%p Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Oaks at Valley Ranch II TX (2) (**) Aetna Life Insurance Company 99%q Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
KBC-RED Hill Limited Partnership CA (2) (**) Aetna Life Insurance Company 80% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
n Aetna Life Insurance Company is a 99% general partner and Trumbull Three,
Inc. is a 1% limited partner.
o Aetna Life Insurance Company is a 99% general partner and Trumbull One, Inc.
is a 1% limited partner.
p Aetna Life Insurance Company is a 99% general partner and Trumbull One, Inc.
is a 1% limited partner.
q Aetna Life Insurance Company is a 99% general partner and Trumbull One, Inc.
is a 1% limited partner.
5
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
KBC-Eastside Limited Partnership AZ (2) (**) Aetna Life Insurance Company 80% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
C.R.I. Hotel Associates, L.P. IA (2) (**) Aetna Life Insurance Company 75% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Trumbull One, Inc. CT (1) (*) Aetna Life Insurance Company 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Trumbull Two, Inc. CT (1) (*) Aetna Life Insurance Company 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Trumbull Three, Inc. CT (1) (*) Aetna Life Insurance Company 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Trumbull Four, Inc. CT (1) (*) Aetna Life Insurance Company 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Century City North L.L.C. DE (5) (**) Aetna Life Insurance Company 84%r Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Southfield Partners MD (2) (**) Aetna Life Insurance Company 99%s Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Lincoln Rancho Cucamonga CA (2) (**) Aetna Life Insurance Company 60% Real Estate Investment
Associates
- ------------------------------------------------------------------------------------------------------------------------------------
Village Green of Madison Heights MI (2) (**) Aetna Life Insurance Company 99%t Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Centrum Associates CA (2) (**) Aetna Life Insurance Company 65% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Tri-City Mall Associates AZ (2) (**) Aetna Life Insurance Company 50% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Southwest Financial Associates AZ (2) (**) Aetna Life Insurance Company 60% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
B&H Ventures IV Limited CT (2) (**) Aetna Life Insurance Company 75% Real Estate Investment
Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
r Aetna Health and Life Insurance Company owns 16% of this Limited Liability
Company.
s Aetna Life Insurance Company is a 99% general partner and Trumbull Four, Inc.
is a 1% limited partner.
t Aetna Life Insurance Company is a 99% general partner and Trumbull Three,
Inc. is a 1% limited partner.
6
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Champions Richland Northcourte TX (2) (*) Aetna Life Insurance Company 99%u Real Estate Investment
Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
Chris-Town Village Associates AZ (2) (**) Aetna Life Insurance Company 50% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Arshaw Partners I TX (2) (*) Aetna Life Insurance Company 50% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Assembly Square Mall LLC DE (5) (**) Aetna Life Insurance Company 99%# Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Woodside Terrace Partners CA (2) (**) Aetna Life Insurance Company 60% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Spectrum Fashion Center AZ (2) (**) Aetna Life Insurance Company 50% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Chambridgeside Galleria MA (2) (**) Aetna Life Insurance Company 50% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
ADBI Partnership FL (2) (**) Aetna Life Insurance Company 30% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Marriott Inner Harbor Hotel MD (2) (*) Aetna Life Insurance Company 99% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
TCR Ventanja Limited TX (2) (**) Aetna Life Insurance Company 99%v Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
1501 Fourth Ave. Limited WA (2) (**) Aetna Life Insurance Company 91%w Real Estate Investment
Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
Thace Associates MI (2) (**) Aetna Life Insurance Company 25% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Lincoln Los Padres CA (2) (**) Aetna Life Insurance Company 99%x Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
u Aetna Life Insurance Company is a 99% general partner and Trumbull One, Inc.
is a 1% limited partner.
# Aetna Life Insurance Company is a 99% general partner and Bay Area Mall,
Inc., is a 1% general partner
v Aetna Life Insurance Company is a 99% general partner and Trumbull Two, Inc.
is a 1% limited partner.
w Aetna Life Insurance Company is a 84% general partner and a 1% limited
partner.
x Aetna Life Insurance company is a 99% general partner and Trumbull Two, Inc.
is a 1% limited partner.
7
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Eastmeadow Distribution Center GA (2) (**) Aetna Life Insurance Company 99%y Real Estate Investment
Limited Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
Eastmeadow Distribution Center GA (2) (**) Aetna Life Insurance Company 99%z Real Estate Investment
Phase II Limited Partnership
- ------------------------------------------------------------------------------------------------------------------------------------
Azalea Mall, L.L.C. DE (5) (**) Aetna Life Insurance Company 99%aa Real Estate Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
211 East Ontario Associates IL (2) (**) Aetna Life Insurance Company 15% Shell
- ------------------------------------------------------------------------------------------------------------------------------------
Southeast Second Avenue, Inc. DE (1) (*) Aetna Life Insurance Company 100% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Menlo One, L.L.C. DE (5) (**) Aetna Life Insurance Company 99%bb Real Estate Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Central Trust Center Associates OH (2) (**) Aetna Life Insurance Company 15% Real Estate Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Capitol District Energy Center CT (2) (**) AE Fourteen, Inc. 50% Cogeneration of Electrical Power
Cogeneration Associates
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. OH (1) (*) Aetna Health Management, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Dental Care of California, CA (1) (*) Aetna Health Management, Inc. 100% Provide Pre-Paid Dental Services
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. FL (1) (*) Aetna Health Management, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Informed Health, Inc. DE (1) (*) Aetna Health Management, Inc. 100% Sponsors Health Information
Service
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
y Aetna Life Insurance Company is a 98% general partner and a 1% limited
partner.
z Aetna Life Insurance Company is a 98% general partner and a 1% limited
partner.
aa Southeast Second Avenue, Inc. owns 1% of these limited liability companies.
bb Southeast Second Avenue, Inc. owns 1% of these limited liability companies.
8
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna U.S. Healthcare, Inc. TN (1) (*) Aetna Health Management, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Insurance Company of CT (1) (*) Aetna Health Management, Inc. 100% Insurance
Connecticut
- ------------------------------------------------------------------------------------------------------------------------------------
Human Affairs International, UT (1) (*) Aetna Insurance Company of 100% Provide Employee Assistance
Incorporated Connecticut Services and Managed Mental
Health Programs
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare of Georgia, GA (1) (*) Aetna Health Management, Inc. 37%ccc HMO
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Management, Inc. DE (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% HMO Management Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Dental Care of New Jersey, NJ (1) (*) Aetna Health Management, Inc. 100% Dental Care
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
AUSHC Holdings, Inc. DE (1) (*) Aetna Health Management, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of the VA (1) (*) Aetna Health Management, Inc. 100% HMO
Mid-Atlantic, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of the NC (1) (*) Aetna Health Management, Inc. 100% HMO
Carolinas, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. AZ (1) (*) Aetna Health Management, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Dental Care of Texas, Inc. TX (1)(*) Aetna Health Management, Inc. 100% HMO offering single health
service plan - dental
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare of IL (1) (*) Aetna Health Management, Inc. 100% HMO
Illinois, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Dental Care of Kentucky, KY (1) (*) Aetna Health Management, Inc. 100% Dental Plan Organization
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of Central and PA (1) (*) Aetna Health Management, Inc. 100% HMO
Eastern Pennsylvania, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
ccc Primary Investments, Inc. over 63% of Aetna U.S. Healthcare of Georgia, Inc.
9
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Health Plans of Texas, Inc. TX (1) (*) Aetna Health Management, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of Louisiana, LA (1) (*) Aetna Health Management, Inc. 100% HMO
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
MED Southwest, Inc. TX (1) (*) Aetna Health Management, Inc. 55% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Freedom Choice, Inc. PA (1)(*) Aetna Health Plans of Central 100% Third Party Administrator
and Eastern Pennsylvania, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Government Health Plans, CA (1) (*) Aetna Health Management, Inc. 100% Sponsors Champus Business
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of California, CA (1) (*) Aetna Health Management, Inc. 100% HMO
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of New York, NY (1) (*) AUSHC Holdings, Inc. 100% HMO
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of New Jersey, NJ (1) (*) AUSHC Holdings, Inc. 100% HMO
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Southwest Physicians Life TX (1) (*) MED Southwest, Inc. 100% Life and Health Insurer
Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Plans of North TX (1) (*) MED Southwest, Inc. 100% HMO
Texas, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Human Affairs of Alaska, Inc. AK (1) (*) Human Affairs International, 100% Provides Mental Health
Incorporated Services/Managed Mental Health
Services
- ------------------------------------------------------------------------------------------------------------------------------------
Human Affairs International of CA (1) (*) Human Affairs International, 100% Provides Mental Health
California Incorporated Services/Managed Mental Health
Services
- ------------------------------------------------------------------------------------------------------------------------------------
Human Affairs International of TX (1) (*) Human Affairs International, 100% Provides Mental Health
Texas, Inc. Incorporated Services/Managed Mental Health
Services
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Human Affairs Global Services, DE (1) (*) Human Affairs International, 100% Holding Company to service Aetna
Inc. Incorporated agreements for New Zealand
operations
- ------------------------------------------------------------------------------------------------------------------------------------
Human Affairs International of PA (1)(*) Human Affairs International 100% Provides Mental Health
Pennsylvania, Inc. Incorporated Services/Managed Mental Health
Services
- ------------------------------------------------------------------------------------------------------------------------------------
Behavioral Healthcare Solutions, DE (1) (*) Human Affairs International, 100% Mental Health Services
Inc. Incorporated
- ------------------------------------------------------------------------------------------------------------------------------------
Human Affairs International IPA, NY (1) (*) Human Affairs International, 100% Independent Practice Association
Inc. Incorporated
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Retirement Holdings, Inc. CT (1) (*) Aetna Retirement Services, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance and Annuity CT (1) (*) Aetna Retirement Holdings, Inc. 100% Life Insurance, Pensions And
Company Annuities
- ------------------------------------------------------------------------------------------------------------------------------------
Systematized Benefits CT (1) (*) Aetna Retirement Holdings, Inc. 100% Third Party Administrator
Administrators, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Financial Services, Inc. CT (1) (*) Aetna Retirement Holdings, Inc. 100% Broker-Dealer and Investment
Advisor
- ------------------------------------------------------------------------------------------------------------------------------------
Aeltus Investment Management, Inc. CT (1) (*) Aetna Retirement Holdings, Inc. 100% Investment Advisor
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Services, Inc. CT (1) (*) Aetna Retirement Holdings, Inc. 100% Distribute Securities Products -
ALIAC and Outside Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Insurance Agency Holdings CT (1) (*) Aetna Retirement Holdings, Inc. 100% Holding Company
Company, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
FNI International, Inc. CA (1) (*) Aetna Retirement Holdings, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Network Investment CA (1) (*) FNI International, Inc. 100% Broker/Dealer
Corporation
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Insurance Company of America CT (1) (*) Aetna Life Insurance and 100% Write/Reinsure Life and Annuity
Annuity Company Business
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Private Capital Inc. CT (1) (*) Aetna Life Insurance and 100% General Business Corporation
Annuity Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna New Series Fund, Inc. MD (1) (**) Aetna Life Insurance and 100% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Income Shares MA (4) (**) Aetna Life Insurance and 99% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Encore Fund MA (4) (**) Aetna Life Insurance and 100% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna GET Fund MA (4) (**) Aetna Life Insurance and 100% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Portfolios, Inc. MD (1) (**) Aetna Life Insurance and 100% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Variable Fund MA (4) (**) Aetna Life Insurance and 98% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Generation Portfolios, Inc. MD (1) (**) Aetna Life Insurance and 100% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Advisers Fund, MD (1) (**) Aetna Life Insurance and 100% Regulated Investment Company
Inc. Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Series Fund, Inc. MD (1) (**) Aetna Life Insurance and 17%aaa Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Portfolio Partners, Inc. MD (1) (**) Aetna Life Insurance and 100% Regulated Investment Company
Annuity Company (Mutual Fund)
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Management Bermuda (1) (*) Aeltus Investment Management, 100% Holding Company
(Bermuda) Holdings Limited Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aeltus Capital, Inc. CT (1) (*) Aeltus Investment Management, 100% Broker-Dealer Related Functions
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aeltus Trust Company CT (1) (*) Aeltus Investment Management, 100% Fiduciary Powers Granted to
Inc State Bank and Trust Companies
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
aaa Aetna Life Insurance Company owns 1% of this fund.
12
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
China Dynamic Investment Hong Kong (1) (**) Aetna Investment Management 50% Establish and Manage
Management (Hong Kong) Limited (Bermuda) Holdings Limited Collective Investment Scheme
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Insurance Agency, Inc. CT (1) (*) Aetna Insurance Agency 100% Insurance Company
Holdings Company, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Insurance Agency of MA (1) (*) Aetna Insurance Agency 100% Insurance Company
Massachusetts, Inc. Holdings Company, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Insurance Agency of AL (1)(*) Aetna Insurance Agency 100% Insurance Company
Alabama, Inc. holdings Company, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International Holdings Hong Kong (1) (*) Aetna International, Inc. 100% Holding Company for Insurance
(Hong Kong) I Limited and Financial Services
- ------------------------------------------------------------------------------------------------------------------------------------
East Asia Aetna Insurance Company Bermuda (1) (**) Aetna International, Inc. 50% Life Disability and Employee
(Bermuda) Ltd. Benefits Ins. in H.K.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International Fund CT (1) (*) Aetna International, Inc. 100% Investment Management
Management Inc. Services
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Holdings (Cayman) Ltd. Cayman (1) (**) Aetna International, Inc. 100% Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
ALICA Holdings, Inc. CT (1) (*) Aetna International, Inc. 80% Dedicated Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance Company of CT (1) (*) Aetna International, Inc. 100% Life Insurance
America
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International Holdings Hong Kong (1) (*) Aetna International, Inc. 100% Holding Company
(Hong Kong) II Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Internacional Compania, S. Mexico (1) (**) Aetna International, Inc. 68%cc Holding Company
en N.C. de C.V.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Internacional De Mexico Mexico (1) (**) Aetna International, Inc. 100% Mexican Holding Company
S.A. De C.V.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna S.A. Chile (1) (*) Aetna International, Inc. 100% Holding Co.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
cc Aetna International de Mexico, S.A. de C.V. owns 16% of Aetna Internacional
Compania, S. en N. C. de C.V.
13
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Arcella Limited Hong Kong (1) (*) Aetna International, Inc. 100% Investment & Holding Co.
for Aetna's Asia Pacific
Operations
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life & Casualty Bermuda Bermuda (1) (*) Aetna International, Inc. 100% Insurance, Guaranteed and
Limited Indemnity Business
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International Global Luxembourg (1) (*) Aetna International, Inc. 100% Investment Services
Investment Services
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Heart Investment Holdings Taiwan (1) (*) Aetna International, Inc. 80% Holding Company
Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life and Casualty Netherlands Antilles Aetna International, Inc. 100% Finance Investment Company
International Finance N.V. (1) (*)
- ------------------------------------------------------------------------------------------------------------------------------------
Sul America Aetna Seguros de Brazil Aetna International, Inc. 49% Insurance
Previdencia S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Management Australia (1) (*) Aetna International, Inc. 100% Stockbroking
(Australia) Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Capital Holdings, Inc. CT (1) (*) Aetna International, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Securities Investment Taiwan (1) (*) Aetna International, Inc. 80% Securities Investment
Management (Taiwan) Ltd. Advisor
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Capital Management U.K. (1) (*) Aetna International, Inc. 100% Promoter of Offshore Mutual
International Ltd. Funds or other Open-Ended
Investment Vehicles
- ------------------------------------------------------------------------------------------------------------------------------------
AE Five Incorporated CT (1) (*) Aetna International, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Canada Holdings Limited Canada (1) (*) Aetna International, Inc. 100% Investment Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Management Taiwan (1) (*) Aetna International, Inc. 80% Provide Non-Security
(Taiwan) Limited Business and Investment
Advice
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International (N.Z.) New Zealand (1) (*) Aetna International, Inc. 100% Holding Company
Limited
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Investment Management Hong Kong (1) (*) Aetna International, Inc. 100% Investment Holding Company
(F.E.) Holdings Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Phillippine Ventures, Inc. Phillippine (1) (*) Aetna International, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance Inc. Philippines (1) (*) Aetna Phillipine Ventures, Inc. 100% Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Healthcare, Inc. Philippines (1) (*) Aetna Life Insurance Inc. 100% Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Blue Cross (Asia Pacific) Hong Kong (1) (**) Aetna International Holdings 35%dd Underwriter Casualty and
Insurance Ltd. (Hong Kong) I Limited General Insurance in Hong
Kong and Macau
- ------------------------------------------------------------------------------------------------------------------------------------
East Asia Aetna Services Company Hong Kong (1) (**) East Asia Aetna Insurance 100% Management services to
Limited Company (Bermuda) Ltd. associate companies
- ------------------------------------------------------------------------------------------------------------------------------------
The Aetna International Umbrella Luxembourg (1) (***) Aetna Life Insurance Company 04%ee An Undertaking for the
Fund of America Collective Investment in
Transferable Securities
- ------------------------------------------------------------------------------------------------------------------------------------
PT Danamon-Aetna Life Insurance Indonesia (1) (**) Aetna Life Insurance Company 80% Limited Liability Life
Company of America Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
Daya Aetna (Malaysia) Berhad Malaysia (1) (*) Aetna International Holdings 82% Holding Company
(Hong Kong) II Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Universal Insurance Berhad Malaysia (1) (*) Daya Aetna (Malaysia) SDN. BHD. 100% Individual Life, Home
Service, Group and General
Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Heart Co., Ltd. Taiwan (1) (a) Aetna Heart Investment 100% Trading Company - Marketing
Holdings Limited of Gifts and Souvenirs
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
dd East Asia Aetna Insurance Company (Bermuda) Ltd. owns 30% of Blue Cross
(Asia Pacific) Insurance Ltd.
ee Percentage controlled by Aetna Services, Inc. includes ownership by the
following: Aetna Services, Inc. 1%, Aetna Life & Casualty Bermuda Limited
5%, Aetna Investment Management (F.E.) Limited 1% and Aetna Life Insurance
Company of Canada 1% and Aetna Securities Investment Management (Taiwan)
Ltd. 15%
15
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna South Life Agency Co., Ltd. Taiwan (1) (a) Aetna Heart Investment 100% Administrative Support
Holdings Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Huei Hong Securities Co., Ltd. Taiwan (1) (a) Aetna Heart Investment 20% Securities Trading
Holdings Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Heart Culture Company Ltd. Taiwan (1) (a) Aetna Heart Investment 100% Trading Company
Holdings Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Seguros Monterrey Aetna, S.A. Mexico (1) (**) AE Five Incorporated 14%bbb Insurance and Reinsurance
- ------------------------------------------------------------------------------------------------------------------------------------
Fianzas Monterrey Aetna, S.A. Mexico (1) (**) AE Five Incorporated 14%bbb Issuance of Bonds
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna (Netherlands) Holdings B.V. Netherlands (1) (*) Aetna Life and Casualty 100% Finance Company
International Finance N.V.
- ------------------------------------------------------------------------------------------------------------------------------------
Sul America Previdencia Privada Brazil (1) (*) Sul America Aetna Seguros de 100% Pension
Previdencia S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Sul America Servicos Medicos S.A. Brazil (1) (*) Sul America Aetna Seguros de 100% Health Administrator
Previdencia S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Brasilprev Previdencia Privada Brazil (1) (**) Sul America Aetna Seguros de 100% Pension
S.A. Previdencia S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Brasilsaude Companhia de Segoros Brazil (1) (*) Sul America Aetna Seguros de 51% Insurance
Previdencia S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Travelguard Limited Hong Kong (1) (*) Blue Cross (Asia Pacific) 100% Insurance Agent
Insurance Ltd.
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
bbb Aetna Internacional de Mexico, S.A. de C.V. owns 13% of this company and
Aetna Internacional Compania, S en NC de C.V. owns 8% of this company.
16
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Toursafe Limited Hong Kong (1) (*) Blue Cross (Asia Pacific) 100% Insurance Agent
Insurance Ltd.
- ------------------------------------------------------------------------------------------------------------------------------------
Travelsafe Limited Hong Kong (1) (*) Blue Cross (Asia Pacific) 100% Insurance Agent for its
Insurance Ltd. Ultimate Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Multiasistencia, S.A. de C.V. Mexico (1) (**) Aetna Internacional Compania S 49% Administrative Services in
en N.C. de C.V. Connection with Insurance
Claims
- ------------------------------------------------------------------------------------------------------------------------------------
Meximed, S.A. de C.V. Mexico (1) (**) Aetna Internacional Compania S 49% Services for Insureds for
en N.C. de C.V. Hospitals Admissions and
Claims Processing
- ------------------------------------------------------------------------------------------------------------------------------------
Seguros Bancomer, S.A. de C.V. Mexico (1) (**) Aetna Internacional Compania S 49% Insurance and Reinsurance
en N.C. de C.V. Company
- ------------------------------------------------------------------------------------------------------------------------------------
Pensiones Bancomes S.A. de C.V. Mexico (1) (**) Aetna Internacional Compania S 49% Insurance Company
en N.C. de C.V.
- ------------------------------------------------------------------------------------------------------------------------------------
Administradora de Fondos Para el Mexico (1) (**) Aetna Internacional Compania S 49% Retirement Funds Management
Retiro Bancomer, S.A. de C.V. en N.C. de C.V. Company
- ------------------------------------------------------------------------------------------------------------------------------------
Grupo Vamsa, S.A. de C.V. Mexico (1) (**) Aetna Internacional Compania S 49% Legal Administration and
en N.C. de C.V. Financial Services
- ------------------------------------------------------------------------------------------------------------------------------------
Asesores en Promocion Segunomina Mexico (1) (**) Aetna Internacional Compania S 49% Marketing of Seguros
S.A. de C.V. en N.C. de C.V. Products/Payroll Discounts
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Chile Seguros Generales S.A. Chile (1) (*) Aetna S.A. 98% Casualty Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Administradora de Fondos de Chile (1) (*) Aetna S.A. 100% Real Estate Investment Trust
Inversion S.A. Management Co.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Chile Seguros de Vida S.A. Chile (1) (*) Aetna S.A. 100% Life Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Pensiones S.A. Chile (1) (*) Aetna S.A. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Credito Hipotecario S.A. Chile (1) (*) Aetna S.A. 100% Mortgage Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Vida S.A. Argentina (1) (*) Aetna S.A. 60% Health and Life Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International Peru S.A. Peru (1) (*) Aetna S.A. 86%ff Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Salud S.A. Chile (1) (*) Aetna S.A. 90% Health Indemnity - Chile
- ------------------------------------------------------------------------------------------------------------------------------------
Administradora de Fondos de Chile (1) (*) Aetna Pensiones S.A. 62% Pension Funds Management
Pensiones Santa Maria S.A. Company
- ------------------------------------------------------------------------------------------------------------------------------------
Santa Maria Internacional S.A. Chile (1) (*) Administradora de Fondos de 100% Pension Administration
Pensiones Santa Maria S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Pensiones Peru S.A. Peru (1) (**) Santa Maria Internacional S.A. 71%gg Investment
- ------------------------------------------------------------------------------------------------------------------------------------
Administradora de Fondos de Peru (1) (**) Aetna Pensiones Peru S.A. 30%hh Pension Funds Management
Pensiones Integra S.A. Company
- ------------------------------------------------------------------------------------------------------------------------------------
Wiese Aetna Compania de Seguros Peru (1) (*) Aetna International Peru S.A. 34% Insurance and Reinsurance
S.A.
- ------------------------------------------------------------------------------------------------------------------------------------
Immobilaria Padre Marinano S.A. Chile (1) (*) Aetna Credito Hipotecario S.A. 99%ii Real Estate Development
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Health Management Canada, Ontario (1)(*) Aetna Canada Holdings Limited 100% Managed Healthcare
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance Company of Canada (1) (*) Aetna Canada Holdings Limited 100% Life, Accident and Sickness
Canada Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Equinox Financial Group Inc. Canada (1) (*) Aetna Canada Holdings Limited 92%jj Distributor of Life Insurance,
Financial and Related Products
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
ff Aetna Chile Seguros De Vida S.A. and Aetna Chile Seguros Generales S. A.
have combined ownership of 14%.
gg Aetna S.A. owns 29% of this company.
hh Aetna Pensiones Peru S.A. owns 30% of this company.
ii Aetna S.A. owns 1% of this company.
jj Aetna Life Insurance Company of Canada owns 8% of this corporation.
18
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
2733854 Canada Ltd. Canada (1) (*) Aetna Canada Holdings Limited 70%kk Marketing of Life Ins. and
Related Products
- ------------------------------------------------------------------------------------------------------------------------------------
AlphaQuest Capital Management Ontario (1) (***) Aetna Canada Holdings Limited 15% Investment Counselor Portfolio
Limited Manager
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Acceptance Corporation Ontario (1) (*) Aetna Canada Holdings Limited 100% Provision of Financial
Limited Assistance to Agents to Assist
in Growth of Business
- ------------------------------------------------------------------------------------------------------------------------------------
969708 Ontario Limited Ontario (1) (*) Aetna Health Management 100% Holding Company
Canada, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
3378551 Canada Inc.. Canada (1) (**) Aetna Health Management 49% Managed Health Services
Canada, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Benefits Management, Inc. Canada (1) (*) Aetna Life Insurance Company 100% Claims Administration and
of Canada Actuarial Services
- ------------------------------------------------------------------------------------------------------------------------------------
Landex Properties Ltd. British Columbia Aetna Life Insurance Company 100% Real Estate Acquisitions
(1) (*) of Canada
- ------------------------------------------------------------------------------------------------------------------------------------
Mount-Batten Properties Limited Ontario (1) (*) Aetna Life Insurance Company 100% Acquisition, Development and
of Canada Management of Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
3158047 Canada Limited Canada (1) (*) Aetna Life Insurance Company 100% Acquisition, Development and
of Canada Management of Real Estate
- ------------------------------------------------------------------------------------------------------------------------------------
3273806 Canada Limited Canada (1) (*) Aetna Life Insurance Company 100% Real Estate Holding Company
of Canada
- ------------------------------------------------------------------------------------------------------------------------------------
PVS Preferred Vision Services Inc. Canada (1) (**) Aetna Benefits Management, 20% Provider of Ophthalmic,
Inc. Service for Four Major
Shareholders
- ------------------------------------------------------------------------------------------------------------------------------------
Associative Rehabilitation Inc. Ontario (1) (*) 969708 Ontario Limited 100% Managed Health Services
- ------------------------------------------------------------------------------------------------------------------------------------
Churchill Office Park Limited Canada (1) (**) Mount-Batten Properties Limited 45% Real Estate Development of
Ottawa Site
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
kk Equinox Financial Group, Inc. owns 30% of this corporation.
19
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna Health (N.Z.) Limited New Zealand (1) (**) Aetna International (N.Z) 50% Health Insurance Underwriting
Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Life Insurance (N.Z.) New Zealand (1) (*) Aetna Health (N.Z.) Limited 100% Group Benefits/Pension Management
Limited
- ------------------------------------------------------------------------------------------------------------------------------------
First Medical Corporation Limited New Zealand (1) (*) Aetna Health (N.Z.) Limited 100% Indemnity Health Insurance
- ------------------------------------------------------------------------------------------------------------------------------------
Medic Aid Computers Limited New Zealand (1) (*) First Medical Corporation 100% Inactive
Limited
- ------------------------------------------------------------------------------------------------------------------------------------
Medical Aids Hire (1974) Limited New Zealand (1) (*) First Medical Corporation 100% Non-Trading Subsidiary of First
Limited Medical Corporation
- ------------------------------------------------------------------------------------------------------------------------------------
First Health (New Zealand Limited) New Zealand (1) (*) Aetna Health (N.Z.) Limited 100% Super Annuitization/Long Term
Care
- ------------------------------------------------------------------------------------------------------------------------------------
Prime Health Limited New Zealand (1) (*) First Health (New Zealand) 50% Buying and Managing Risk for
Limited Publicly Funded Health Services
and Providing Management Services
and Infrastructure To its Network
of Doctors
- ------------------------------------------------------------------------------------------------------------------------------------
PLJ Holdings Limited Hong Kong (1) (*) Aetna Investment Management 100% Investment Management &
(F.E.) Holdings Limited Securities Trading
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Management Hong Kong (1) (*) Aetna Investment Management 100% Investment Management & Advisory
(F.E.) Limited (F.E.) Holdings Limited Services for Individual Clients
and Investment Funds
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna International Fund Managers Hong Kong (1) (*) Aetna Investment Management 100% Investment & Unit Trust
Limited (F.E.) Holdings Limited Management
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna Investment Management Hong Kong (1) (*) Aetna Investment Management 100% Nominee Services Holding Assets
(F.E.) Nominees Limited (F.E.) Holdings Limited of AIM F.E.'s Customers in Street
Name
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
20
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Kwang HUA Securities Investment & Taiwan (1) (***) Aetna Investment Management 20% Securities Investment &
Trust Co. Ltd. (F.E.) Holdings Limited Trust
- ------------------------------------------------------------------------------------------------------------------------------------
Kwang HUA Securities Investment Taiwan (1) (***) PLJ Holdings Limited 20% Investment Consulting
Consultant Co. Ltd. Company
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Financial DE (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% Holding Company
Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Primary Holdings, Inc. DE (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Dental Plan, Inc. PA (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% Dental
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Dental Plan, Inc. NJ (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% Dental
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Dental Plan, Inc. DE (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% Dental
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Health Insurance Company NY (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% Accident and Health
Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
Corporate Health Insurance MN (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% Accident and Health
Company Insurance Company
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Managed Care, Inc. MD (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% Utilization Review
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. NJ (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. NY (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. CT (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. MA (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. DE (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
21
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna U.S. Healthcare of New NH (1) (*) Aetna U.S. Healthcare Inc. (PA) 100% HMO
Hampshire, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Advent Investments, Inc. DE (1) (*) U.S. Healthcare Financial 100% DE Holding Company
Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Independent Investments, Inc. DE (1) (*) U.S. Healthcare Financial 100% DE Holding Company
Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
United States Physicians Care PA (1) (*) U.S. Healthcare Financial 100% Financial Services to Physicians
Systems, Inc. Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
United States Home Health Care PA (1) (*) U.S. Healthcare Financial 100% Inactive - other Medical Services
Systems, Inc. Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Health Aviation Corp. PA (1) (*) U.S. Healthcare Financial 100% Ownership and Operation of
Services, Inc. Airplanes
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Properties, Inc. PA (1) (*) U.S. Healthcare Financial 100% Holding Company for Real Estate
Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Inteli-Health, Inc. DE (1) (*) U.S. Healthcare Financial 98% Software Development
Services, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
USHC Management Services DE (1) (*) U.S. Healthcare Financial 100% Management and Financial Services
Corporation Services, Inc. to Network Providers
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare Advantage, Inc. DE (1) (*) Advent Investments, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Wissahickon Payment DE (1) (*) Advent Investments, Inc. 100% Third Party Administrator
Administrators, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Advent Financial Services, Inc. DE (1) (*) U.S. Healthcare Advantage, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
Corporate Health Administrators, PA (1) (*) Advent Financial Services, Inc. 100% Third Party Administrator for
Inc. Self-Insured Plans
- ------------------------------------------------------------------------------------------------------------------------------------
Managed Care Coordinators, Inc. DE (1) (*) Advent Financial Services, Inc. 100% Evaluation and Administration of
Multiple Health Plans
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Phoenix Corporation PA (1) (*) Advent Financial Services, Inc. 100% Shell
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
22
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Quality Algorithms, Inc. PA (1) (*) Advent Financial Services, Inc. 100% Services to Analyze the Quality
and Effectiveness of Medical Care
- ------------------------------------------------------------------------------------------------------------------------------------
Workers Comp Advantage, Inc. PA (1) (*) Advent Financial Services, Inc. 100% Case Management and other Medical
Management Services for Employers
on Costs Related to Workers'
Compensation Claims
- ------------------------------------------------------------------------------------------------------------------------------------
Primary Investments, Inc. DE (1) (*) Primary Holdings, Inc. 100% Holding Company
- ------------------------------------------------------------------------------------------------------------------------------------
United States Health Care Systems PA (1) (*) Primary Investments, Inc. 100% HMO
of Pennsylvania, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. VA (1) (*) Primary Investments, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. OH (1) (*) Primary Investments, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare of the Carolinas, NC (1) (*) Primary Investments, Inc. 100% HMO
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare of Georgia, GA (1) (*) Primary Investments, Inc. 63% HMO
Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
Advent HMO Corporation ND (1) (*) Primary Investments, Inc. 100% Inactive
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Health Insurance Company CT (1) (*) Primary Investments, Inc. 100% Accident and Health Insurance
Company
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. AL (1)(*) Primary Investments, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. MI (1) (*) Primary Investments, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
Aetna U.S. Healthcare, Inc. OK (1) (*) Primary Investments, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
U.S. Healthcare, Inc. MO (1) (*) Primary Investments, Inc. 100% HMO
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
23
<PAGE>
September 30, 1997 COMPANY ORGANIZATION LIST
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
COMPANY STATE IMMEDIATE OWNER OWNERSHIP PRINCIPAL BUSINESS
PERCENTAGE+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aetna U.S. Healthcare Holdings, DE (1) (*) Primary Investments, Inc. 100% Holding Company
Inc.
- ----------------------------------------------------------------------------------------------------------- ------------------------
Virginia Mason Health Plan, Inc. WA (1) (*) Primary Investments, Inc. 100% HMO
- ----------------------------------------------------------------------------------------------------------- ------------------------
Aetna U.S. Healthcare of CO (1) (*) Aetna U.S. Healthcare 100% HMO
Colorado, Inc. Holdings, Inc.
- ----------------------------------------------------------------------------------------------------------- ------------------------
</TABLE>
24
<PAGE>
Item 27. Number of Contract Owners
As of September 30,1997, there were 623,598 individuals holding interests
in variable annuity contracts funded through Variable Annuity Account C.
<PAGE>
Item 28. Indemnification
Reference is hereby made to Section 33-771(f) of the Connecticut General
Statutes ("C.G.S.") regarding indemnification of directors and Section 33-776(4)
regarding indemnification of officers, employees and agents of Connecticut
corporations. These statutes provide in general that Connecticut corporations
incorporated prior to January 1, 1997 shall indemnify their officers, directors,
employees and agents against "liability" (defined as the obligation to pay a
judgment, settlement, penalty, fine, excise tax in the case of an employee
benefit plan or reasonable expenses incurred with respect to a proceeding). In
the case of a proceeding by or in the right of the corporation, indemnification
is limited to reasonable expenses incurred in connection with the proceeding
against the corporation to which the individual was named a party. The
corporation's obligation to provide such indemnification does not apply unless
(1) the individual has met the standard of conduct set forth in Section 33-771;
and (2) a determination is made (by majority vote of a quorum of the board of
directors who were not parties to the proceeding, or if a quorum cannot be
obtained, by a committee of the board selected as described in Section
33-775(b)(2); by special legal counsel selected by the board of directors or
members thereof as described in Section 33-775(b)(3); by shareholders) that the
individual met the standard set forth in Section 33-771; 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. Also, unless limited by
its Certificate of Incorporation, a corporation must indemnify an individual who
was wholly successful on the merits or otherwise against reasonable expenses
incurred by him in connection with a proceeding to which he was a party because
of his relationship as director, officer, employee or agent of the corporation.
The statute does specifically authorize a corporation to procure indemnification
insurance on behalf of an individual who is or was a director, officer, employer
or agent of the corporation. Consistent with the statute, Aetna Inc. has
procured insurance from Lloyd's of London and several major United States excess
insurers for its directors and officers and the directors and officers of its
subsidiaries, including the Depositor.
Item 29. Principal Underwriter
(a) In addition to serving as the principal underwriter and depositor for
the Registrant, Aetna Life Insurance and Annuity Company (Aetna) also
acts as the investment adviser, only, for Aetna Series Fund, Inc., and
the principal underwriter and investment adviser for Portfolio
Partners, Inc., Aetna Variable Encore Fund, Aetna Variable Fund, Aetna
Generation Portfolios, Inc., Aetna Income Shares, Aetna Investment
Advisers Fund, Inc., Aetna GET Fund, and Aetna Variable Portfolios,
Inc. (all management investment companies registered under the
Investment Company Act of 1940 (1940 Act)). Additionally, Aetna acts as
the principal underwriter and depositor for Variable Life Account B of
Aetna, Variable Annuity Account B of Aetna and Variable Annuity Account
G of Aetna (separate accounts of Aetna registered as unit investment
trusts under the 1940 Act). Aetna is also the principal underwriter for
Variable Annuity Account I of Aetna Insurance Company of America (AICA)
(a separate account of AICA registered as a unit investment trust under
the 1940 Act).
<PAGE>
(b) See Item 25 regarding the Depositor.
(c) Compensation as of December 31, 1996:
<TABLE>
<CAPTION>
(1) (2) (3) (4) (5)
Name of Net Underwriting Compensation on
Principal Underwriter Discounts and Redemption or Brokerage
Commissions Annuitization Commissions Compensation*
<S> <C> <C> <C> <C>
Aetna Life Insurance $1,325,661 $96,924,599
and Annuity Company
</TABLE>
* Compensation shown in column 5 includes deductions for mortality and
expense risk guarantees and contract charges assessed to cover costs
incurred in the sales and administration of the contracts issued under
Variable Annuity Account C.
Item 30. Location of Accounts and Records
All accounts, books and other documents required to be maintained by
Section 31(a) of the 1940 Act and the rules under it relating to the securities
described in and issued under this Registration Statement are located at the
home office of the Depositor as follows:
Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, Connecticut 06156
Item 31. Management Services
Not applicable
Item 32. Undertakings
Registrant hereby undertakes:
(a) to file a post-effective amendment to this registration statement on
Form N-4 as frequently as is necessary to ensure that the audited
financial statements in the registration statement are never more than
sixteen months old for as long as payments under the variable annuity
contracts may be accepted;
<PAGE>
(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
(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) P. 78,904 at 78,523 (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.
(f) Aetna Life Insurance and Annuity Company represents that the fees and
charges deducted under the contracts covered by this registration
statement, in the aggregate, are reasonable in relation to the services
rendered, the expenses expected to be incurred, and the risks assumed
by the insurance company.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant, Variable Annuity Account C of Aetna Life Insurance and
Annuity Company, has duly caused this Post-Effective Amendment to its
Registration Statement on Form N-4 (File No. 33-91846) to be signed on its
behalf by the undersigned, thereunto duly authorized, in the City of Hartford,
State of Connecticut, on the 30th day of October, 1997.
VARIABLE ANNUITY ACCOUNT C OF AETNA LIFE
INSURANCE AND ANNUITY COMPANY
(Registrant)
By: AETNA LIFE INSURANCE AND ANNUITY COMPANY
(Depositor)
By: Thomas J. McInerney*
------------------------------------------
Thomas J. McInerney
President
As required by the Securities Act of 1933, this Post-Effective Amendment
No. 12 to the Registration Statement has been signed by the following persons in
the capacities and on the dates indicated.
Signature Title Date
Thomas J. McInerney* Director and President )
- ------------------------- (principal executive officer) )
Thomas J. McInerney )
)
)
Timothy A. Holt* Director, Senior Vice President and ) October
- ------------------------- Chief Financial Officer ) 30, 1997
Timothy A. Holt )
)
)
Christopher J. Burns* Director )
- ------------------------- )
Christopher J. Burns )
)
)
J. Scott Fox* Director )
- ------------------------- )
J. Scott Fox )
)
)
John Y. Kim* Director )
- ------------------------- )
John Y. Kim )
)
)
Shaun P. Mathews* Director )
- ------------------------- )
Shaun P. Mathews )
<PAGE>
Glen Salow* Director )
- ------------------------- )
Glen Salow )
)
)
Deborah Koltenuk* Vice President and Treasurer, )
- ------------------------- Corporate Controller )
Deborah Koltenuk )
By: /s/ Julie E. Rockmore
------------------------------------
Julie E. Rockmore
*Attorney-in-Fact
<PAGE>
VARIABLE ANNUITY ACCOUNT C
EXHIBIT INDEX
Exhibit No. Exhibit Page
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 Broker-Dealer Agreement *
99-B.3.2 Alternative Form of Wholesale Agreement and Related *
Selling Agreement
99-B.4.1 Variable Annuity Contract (G-CDA-IB(ATORP) and *
Endorsement (EGET-IC(R))
99-B.4.2 Variable Annuity Contract and Certificate (G-CDA-95(TORP) *
and (GTCC-95(TORP))
99-B.4.3 Variable Annuity Contract (G-CDA-IB(AORP) and Endorsement *
(EGET-IC(R))
99-B.4.4 Variable Annuity Contract and Certificate (G-CDA-95(ORP) *
and (GTCC-95(ORP))
99-B.4.5 Variable Annuity Contract (G-CDA-96(TORP)) *
99-B.4.6 Variable Annuity Contract (G-CDA-96(ORP)) ____
99-B.4.7 Variable Annuity Contract Certificate (GTCC-96(TORP)) ____
99-B.4.8 Variable Annuity Contract Certificate (GTCC-96(ORP)) ____
99-B.4.9 Endorsement (GET 9/96) to Variable Annuity Contract *
G-CDA-95(TORP), GTCC95(TORP), G-CDA-95(ORP) and
GTCC-95(ORP)
99-B.4.10 Form of Endorsement (EORPEX97LAMS) to Contracts G-CDA-96 ____
(ORP) and G-CDA-96 (TORP) and Certificates GTCC-96(ORP)
and GTCC-96(TORP)
99-B.5 Variable Annuity Contract Application (300-MOP-IB) *
*Incorporated by reference
<PAGE>
Exhibit No. Exhibit Page
99-B.6.1 Certification of Incorporation of Aetna Life Insurance *
and Annuity Company
99-B.6.2 Amendment of Certificate of Incorporation of Aetna Life *
Insurance and Annuity Company
99-B.6.3 By-Laws, as amended September 17, 1997, of Aetna Life ____
Insurance and Annuity Company
99-B.8.1 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.8.2 Second Amendment dated January 1, 1996 to 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 Third Amendment dated February 11, 1997 to 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 and January 1,
1996
99-B.8.4 Fourth Amendment dated February 28, 1997 to 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, January 1, 1996
and February 11, 1997
*Incorporated by reference
<PAGE>
Exhibit No. Exhibit Page
99-B.8.5 Fund Participation Agreement between Aetna Life Insurance *
and Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1995, May
1, 1995, January 1, 1996 and March 1, 1996
99-B.8.6 Fifth Amendment, dated as of May 1, 1997, to the Fund *
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1996, May
1, 1995, January 1, 1996 and March 1, 1996
99-B.8.7 Fund Participation Agreement between Aetna Life Insurance *
and Annuity Company, Variable Insurance Products Fund II
and Fidelity Distributors Corporation dated February 1,
1994 and amended on December 15, 1994, February 1, 1995,
May 1, 1995, January 1, 1996 and March 1,1996
99-B.8.8 Fifth Amendment, dated as of May 1, 1997, to the Fund *
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994
and amended on December 15, 1994, February 1, 1996, May
1, 1995, January 1, 1996 and March 1, 1996
99-B.8.9 Service Agreement between Aetna Life Insurance and *
Annuity Company and Fidelity Investments Institutional
Operations Company dated as of November 1, 1995
99-B.8.10 Amendment dated January 1, 1997 to Service Agreement *
between Aetna Life Insurance and Annuity Company and
Fidelity Investments Institutional Operations Company
dated as of November 1, 1995
*Incorporated by reference
<PAGE>
Exhibit No. Exhibit Page
99-B.8.11 Fund Participation Agreement between Aetna Life Insurance *
and Annuity Company and Janus Aspen Series dated April
19, 1994 and amended June 15, 1994, July 30, 1995 and
March 1, 1996
99-B.8.12 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.9 Opinion and Consent of Counsel ____
99-B.10 Consent of Independent Auditors ____
99-B.13 Schedule for Computation of Performance Data *
99-B.15.1 Powers of Attorney *
99-B.15.2 Authorization for Signatures *
27 Financial Data Schedule ____
*Incorporated by reference
-----------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
Hartford, Connecticut 06156
(800) 525-4225
You may call the toll-free number shown
above to get answers to your questions or
help to resolve a complaint.
Aetna Life Insurance and Annuity Company,
herein called Aetna, agrees to pay the
benefits stated in this Contract.
Specifications
- --------------------------------------------------------------------------------
Plan
Higher Education
- --------------------------------------------------------------------------------
Type of Plan
Retirement Plan for Higher Education
- --------------------------------------------------------------------------------
Contract Holder
Specimen
- --------------------------------------------------------------------------------
Contract No.
Specimen
- --------------------------------------------------------------------------------
Effective Date
Specimen
- --------------------------------------------------------------------------------
This Contract is Delivered in Anystate
and is Subject to the Laws of that Jurisdiction
THE VARIABLE FEATURES OF THE GROUP CONTRACT ARE DESCRIBED IN PARTS III AND V.
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.
/s/ Dan Kearney /s/ Susan E. Schechter
President Secretary
Group Combination Annuity Contract
Nonparticipating
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP ANNUITY 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.
G-CDA-96(ORP)
<PAGE>
Specifications
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------------------------------------
Guaranteed There is a guaranteed interest rate for Contribution(s) held in the Fixed Plus Account and
Interest Rate the GA Account. (See Contract Schedule I.)
- -----------------------------------------------------------------------------------------------------------------
Deductions from There will be deductions for mortality and expense risks. There also may be deductions for
the Separate administrative charges and asset based sales charges. (See 3.05 and 5.06.)
Account
- -----------------------------------------------------------------------------------------------------------------
Deduction from Contribution(s) are subject to a deduction for premium taxes, if any. (See 3.01.)
Contribution(s)
</TABLE>
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.
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.
2
<PAGE>
Contract Schedule I
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 daily charge is
at an annual effective rate of [1.25%] for
Annuity mortality and expense risks,
[0.15%] for asset based sales charge and a
daily administrative charge which will not
exceed [0.25%] on an annual basis.
The daily charge for the Aetna GET Fund
Guarantee will be at an annual rate of
[0.25%].
Fixed Plus Account [Is Available]
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest [3%] (effective annual rate of
Rate: return).
Partial Withdrawal: The [20%] limit applicable to partial
withdrawal from the Fixed Plus Account
will be waived when the withdrawal is:
(a) due to the Participant's death, (and
made within [six (6)] months of the
Participant's date of death), before
Annuity payments begin. This partial
withdrawal may only be exercised once;
or
(b) used to purchase Annuity benefits.
Guaranteed Accumulation Account (GA Account) [Is Available]
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest [3%] (effective annual rate of return).
Rate:
i
<PAGE>
Contract Schedule I
Accumulation Period (Cont'd)
Separate Account, Fixed Plus Account and GA Account
- --------------------------------------------------------------------------------
Loans: [Are Available]
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.
Systematic Withdrawal Option (SWO): [Is Available]
The Specified Payment 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
[five years].
The Specified Percentage may not be
greater than [20%].
Estate Conservation Option [Is Available]
(ECO):
Life Expectancy Option (LEO): [Is Available]
See Section 1. - DEFINITIONS for explanations.
ii
<PAGE>
Contract Schedule II
Annuity Period
Separate Account
- --------------------------------------------------------------------------------
Fund Transfers: Maximum number of allowable transfers
in the Annuity Period is [4].
Charges to Separate Account: A daily charge at an annual effective
rate of [1.25%] for Annuity mortality and
expense risks. The administrative charge
is established upon election of an Annuity
option. This charge will not exceed
[0.25%].
Variable Annuity Assumed If a Variable Annuity is chosen, an
Annual Net Return Rate: assumed annual net return rate of [5.0%]
may beelected. If [5.0%] is not elected,
Aetna will use an assumed annual net
return rate of [3.5%].
The assumed annual net return rate
factor for [3.5%] per year is [0.9999058].
The assumed annual net return rate
factor for [5.0%] per year is [0.9998663].
If the portion of a Variable Annuity
payment for any Fund is not to
decrease, the Annuity return factor
under the Separate Account for that
Fund must be:
(a) [4.75%] on an annual basis plus
an annual return of up to [0.25%] to
offset the administrative charge set
at the time Annuity payments commence
if an assumed annual net return rate
of [3.5%] is chosen; or
(b) [6.25%] on an annual basis plus 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: Under the option "Payments for a Stated
Period of Time":
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.
Fixed Annuity
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest [3%] (effective annual rate of return).
Rate:
See Section 1. - DEFINITIONS for explanations.
iii
<PAGE>
TABLE OF CONTENTS
I. DEFINITIONS
- --------------------------------------------------------------------------------
Page
1.01 Accumulation Period ................................................ 6
1.02 Adjusted Current Value ............................................. 6
1.03 Aetna GET Fund Offering Period ..................................... 6
1.04 Aetna GET Fund Guaranteed Period ................................... 6
1.05 Aetna GET Fund Maturity Date ....................................... 6
1.06 Annuitant .......................................................... 6
1.07 Annuity ............................................................ 6
1.08 Beneficiary ........................................................ 6
1.09 Code ............................................................... 6
1.10 Contract Holder .................................................... 6
1.11 Contribution ....................................................... 7
1.12 Current Value ...................................................... 7
1.13 Deposit Period ..................................................... 7
1.14 Fixed Plus Account ................................................. 7
1.15 Fixed Plus Account Guaranteed Interest Rate ........................ 7
1.16 Fixed Annuity ...................................................... 7
1.17 Fund(s) ............................................................ 7
1.18 Fund Transfer(s) ................................................... 7
1.19 General Account .................................................... 7
1.20 Guaranteed Accumulation Account (GA Account) ....................... 7
1.21 GA Account Guaranteed Interest Rate ................................ 8
1.22 Guaranteed Term .................................................... 8
1.23 Individual Account ................................................. 8
1.24 Loan Account ....................................................... 8
1.25 Loan Effective Date ................................................ 9
1.26 Loan Interest Rate ................................................. 9
1.27 Market Value Adjustment (MVA) ...................................... 9
1.28 Matured Term Value ................................................. 9
1.29 Matured Term Value Transfer ........................................ 9
1.30 Maturity Date ...................................................... 9
1.31 Monthly Average Corporates ......................................... 9
1.32 Net Contribution ................................................... 9
1.33 Nonunitized Separate Account ....................................... 9
1.34 Participant ........................................................ 9
1.35 Plan ............................................................... 9
3
<PAGE>
Page
1.36 Reinvestment ........................................................ 10
1.37 Separate Account .................................................... 10
1.38 Valuation Date ...................................................... 10
1.39 Valuation Period .................................................... 10
1.40 Variable Annuity .................................................... 10
II. GENERAL PROVISIONS
- -------------------------------------------------------------------------------
2.01 Change of Contract................................................... 10
2.02 Change of Fund....................................................... 11
2.03 Nonparticipating Contract............................................ 11
2.04 Payments............................................................. 11
2.05 State Laws........................................................... 11
2.06 Control of Contract.................................................. 11
2.07 Designation of Beneficiary........................................... 12
2.08 Misstatements and Adjustments........................................ 12
2.09 Incontestability..................................................... 12
2.10 Grace Period......................................................... 12
2.11 Individual Certificates.............................................. 12
III. CONTRIBUTIONS, CURRENT VALUE, and WITHDRAWAL PROVISIONS
- -------------------------------------------------------------------------------
3.01 Net Contribution(s) ................................................. 13
3.02 Experience Credits .................................................. 13
3.03 Fund Record Units ................................................... 13
3.04 Fund Record Unit Value............................................... 13
3.05 Fund Net Return Factors ............................................. 13
3.06 Market Value Adjustment ............................................. 14
3.07 Fund Transfer(s) .................................................... 16
3.08 Aetna GET Fund Offering Period ...................................... 16
3.09 Aetna GET Fund Guarantee ............................................ 17
3.10 Aetna GET Fund Maturity Date ........................................ 17
3.11 Loans ............................................................... 17
3.12 Notice to the Participant ........................................... 20
3.13 Manner and Timing of Distributions .................................. 20
3.14 Withdrawal .......................................................... 21
3.15 Partial Withdrawal from the Fixed Plus Account ...................... 21
3.16 Payment of Fixed Plus Account Full Withdrawal ....................... 22
3.17 Payment of Minimum Current Value .................................... 22
3.18 Amount Payable at Death (Before Annuity Payments Start) ............. 23
3.19 Reinstatement ....................................................... 24
4
<PAGE>
IV. NON-ANNUITY DISTRIBUTION OPTIONS
- -------------------------------------------------------------------------------
Page
4.01 Distribution Options................................................. 24
4.02 Estate Conservation Option........................................... 25
4.03 Life Expectancy Option............................................... 26
4.04 Systematic Withdrawal Option......................................... 26
V. ANNUITY PROVISIONS
- -------------------------------------------------------------------------------
5.01 General Provisions................................................... 28
5.02 Annuity Options...................................................... 28
5.03 Payments............................................................. 29
5.04 Investment Option.................................................... 30
5.05 Fund Annuity Units................................................... 30
5.06 Fund Annuity Unit Value.............................................. 31
5.07 Fund Annuity Net Return Factor....................................... 31
5.08 Fund Transfers During the Annuity Period............................. 32
5.09 Death Benefit........................................................ 32
5
<PAGE>
I. DEFINITIONS
- -------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
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 1.12) of an Individual Account (See 1.23) plus or minus any
applicable aggregate GA Account Market Value Adjustment. (See 3.07).
1.03 Aetna GET Fund Offering The period, usually from one to three months, during which Participants may transfer or
Period: (Offering Period) deposit amounts to an Aetna GET Fund series. Each Aetna GET Fund series has a specified
Offering Period. Amounts transferred or deposited prior to the date on which the
Guaranteed Period begins are invested in money market instruments.
Aetna reserves the right to state the minimum amount a Participant may transfer or deposit
to each Offering Period. Aetna also reserves the right to extend an Offering Period or
accept Fund transfers or deposits to an Aetna GET Fund series during the series' Guaranteed
Period.
1.04 Aetna GET Fund Guaranteed For each Aetna GET Fund series, the period for which the Aetna Get Fund Guarantee applies.
Period: (Guaranteed Period) The Guaranteed Period ends on the Maturity Date.
1.05 Aetna GET Fund Maturity The date on which a series' Guaranteed Period ends and GET Fund Record Units for the series
Date: (Maturity Date) are liquidated.
1.06 Annuitant: If an Annuity provides lifetime benefits, the person whose life expectancy determines the
amount and/or duration of Annuity benefit payments.
1.07 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).
1.08 Beneficiaries: The person(s) named to receive any benefits which remain under the Contract after the
Participant's death. Participant(s) designate a Beneficiary for their Individual
Account(s). (See 2.07)
1.09 Code: The Internal Revenue Code of 1986, as amended.
1.10 Contract Holder: The entity, named on the cover of this Contract, to which the Contract is issued.
6
<PAGE>
1.11 Contribution: A payment received at Aetna's Home Office and allocated to this Contract.
1.12 Current Value: For an Individual Account (See 1.23), 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 3.03), if any, as of the most recent
Valuation Period.
1.13 Deposit Period: A calendar month, a calendar quarter, or any other period of time specified by Aetna during
which Net Contribution(s), Fund Transfers and Reinvestments are accepted into the GA
Account for one or more Guaranteed Terms.
1.14 Fixed Plus Account: If offered as an investment option under the Contract (see Contract Schedule I) the Fixed
Plus Account is an accumulation option with a guaranteed minimum interest rate. Aetna may
credit a higher rate which is not guaranteed. The portion that may be withdrawn or
transferred in a 12 month period is restricted (See 3.07, 3.15 and 3.16).
1.15 Fixed Plus Account Guaranteed If the Fixed Plus Account is an investment option under the Plan (see Contract Schedule I)
Interest Rate: then Aetna will add interest 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 at a higher
rate determined by its Board of Directors.
1.16 Fixed Annuity: An Annuity with payments that do not vary in amount.
1.17 Fund(s): The open-end registered management investment companies whose shares are purchased by the
Separate Account to fund the benefits provided by the Contract. Each Aetna GET Fund series
is a separate Fund.
1.18 Fund Transfers: The movement of invested amounts among the available Fund(s); the Fixed Plus Account (if
available) and the GA Account (if available).
1.19 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).
1.20 Guaranteed Accumulation If offered as an investment option under the Contract (see Contract Schedule I) the
Account (GA Account): Guaranteed Accumulation Account (GA Account) is 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.
7
<PAGE>
1.21 GA Account Guaranteed If the GA Account is an investment option under the Contract (see Contract Schedule I) then
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 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.
1.22 Guaranteed Term: The period of time for which GA Account Guaranteed Interest Rates are guaranteed on Net
Contributions, Fund 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 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 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 Fund Transfers into any or all of the
available Guaranteed Terms.
1.23 Individual Account: This Contract is issued to the Contract Holder. However, Aetna will maintain Individual
Accounts for each Participant to keep a record of Current Value (See 1.12) and
transactions. These may include:
(a) An Employer Account: This Individual Account will be credited with employer Net
Contribution(s) and transferred amounts of 401(a) funds, attributable to employer
contributions; and
(b) An Employee Account: This Individual Account will be credited with employee Net
Contribution(s) specifically amounts subject to Code Section 414(H) and transferred
amounts of 401(a) funds, attributable to 414(H) contributions and any after tax
contributions.
1.24 Loan Account: For each loan taken by a Participant, the loan amount transferred from the investment
options is credited to the Loan Account.
8
<PAGE>
1.25 Loan Effective Date: The date on which Aetna receives a loan agreement in good order at its home office.
1.26 Loan Interest Rate: The interest rate Aetna charges on a loan. (see Contract Schedule I).
1.27 Market Value Adjustment (MVA): An adjustment to the amount withdrawn or transferred from an 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 3.06. The adjustment is expressed as a percentage of
each dollar being withdrawn.
1.28 Matured Term Value: The amount payable on a GA Account Guaranteed Term's Maturity Date.
1.29 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 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.
1.30 Maturity Date: The last day of a GA Account Guaranteed Term.
1.31 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.
1.32 Net Contribution: A Contribution less any applicable premium taxes.
1.33 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 1.21) greater than three years. The Contract
Holder 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.
1.34 Participant: A person who participates in the Plan named on the cover of this Contract.
1.35 Plan: The Plan named on the cover of this Contract and established under Section 401(a) of the
Code. The Plan is not a part of the Contract and Aetna is not bound by its terms.
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1.36 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 Guaranteed 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.
1.37 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.
1.38 Valuation Date: The date and time on which a Fund annuity unit value and a Fund record unit value are
calculated. Currently, this calculation will be determined at the close of business of the
New York Stock Exchange on any normal business day, Monday through Friday, that the New
York Stock Exchange is open.
1.39 Valuation Period: The period of time commencing at the end of one Valuation Date and ending at the end of the
next Valuation Date.
1.40 Variable Annuity: An Annuity with payments that vary with the net investment results of the Funds available
during the Annuity period.
II. GENERAL PROVISIONS
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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 in writing of any changes.
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2.01 Change of Contract (Cont'd): Aetna may change the tables for determining the amount of Annuity benefit payments
attributable only to Contributions accepted after the effective date of change, 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 days before the
effective date of the change. Aetna may not make Contract changes which adversely affect
the Annuity benefits attributable to Contributions already made to the Contract.
2.02 Change of Fund The assets of the Separate Account are segregated by Fund. If the shares of any Fund are
no longer available for investment by the Separate Account or if in our judgment, further
investment in such shares should become inappropriate in view of the purpose of the
Contract, Aetna may cease to make such Fund shares available for investment under the
Contract prospectively, or Aetna may substitute shares of another Fund for shares already
acquired. Aetna may also, from time to time, add additional Funds. Any elimination,
substitution or addition of Funds will be done in accordance with applicable state and
federal securities laws. Aetna reserves the right to substitute shares of another Fund for
shares already acquired without a proxy vote.
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's 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 This Contract is designed to fund a plan which provides for retirement income.
The Contract Holder may, by written direction to Aetna, allow Participants to select the
investment options of their Employer and/or Employee Accounts. Choices made under this
Contract must be in writing or in a form satisfactory to Aetna. Until receipt of such
choices in its Home Office, Aetna may rely on any previous choices made.
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2.06 Control of Contract (Cont'd): (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 Internal
Revenue Code of 1986, as it may be amended from time to time.
(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. 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 distribution is in
accordance with the terms of the Plan.
(c) Distributions: A Participant may apply for a distribution from his or her Employee
Account or Employer Account. However, the Contract Holder must certify in writing
that the distribution is in accordance with the terms of the Plan.
(d) Participant Rights/Employee Account: 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.
(e) 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 nor keep such records.
2.07 Designation of Beneficiary: The Participant shall designate a Beneficiary. If the Plan is subject to ERISA, the
Contract Holder must certify in writing that the designation is in accordance with the
appropriate REA requirements and 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.
2.10 Grace Period: This Contract will remain in effect even if Contributions are not continued except as
provided in 3.17.
2.11 Individual Certificates: Aetna shall issue certificates to 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.
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III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS
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3.01 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 (if available); and
(b) The current Deposit Period(s) for Guaranteed Terms under the GA Account (if
available); and
(c) The Fund(s) in which the Separate Account invests.
Aetna must be told the percentage of all Net Contributions to allocate to one or more of
the investment options. Aetna reserves the right to require a minimum Contribution amount
per Individual Account.
Aetna reserves the right not to accept any Contribution.
3.02 Experience Credits: Aetna may apply experience credits under this Contract. Any such credits will be computed
as decided by Aetna.
3.03 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 3.04) for the Valuation Period in which the Contribution is received in
good order.
3.04 Fund Record Unit Value: A Fund record unit value is computed by multiplying the net return factor (See 3.05) for
the current Valuation Date by the Fund record unit value for the previous Date. 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.
3.05 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
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3.05 Fund Net Return (c) Taxes (or reserves for taxes) on the Separate Account (if any); divided by
Factors (Cont'd):
(d) The total value of the Fund record units and Fund annuity units of the Separate
Account at the start of the Valuation Period; minus
(e) A Separate Account charge at an annual effective rate as shown on Contract Schedule
I for Annuity mortality and expense risks, asset based sales charge, if any 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; minus
(f) A fee for the Aetna GET Fund Guarantee which is deducted daily during the Guaranteed
Period. The fee, which is determined prior to the beginning of each series' Offering
Period, is as shown on Contract Schedule I.
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.
3.06 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 Fund Transfer;
(2) A full or partial withdrawal; or
(3) A payment of a premium for Annuity Option 1.
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)
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3.06 Market Value Adjustment (MVA) Where:
(Cont'd):
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 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) If a lump-sum distribution or Annuity Option is elected six months or more after
your death, the Beneficiary will receive the Account Value, plus or minus any MVA
that would apply to any portion of the Account allocated to GAA. If a full or
partial withdrawal is made within six months after your death, the Beneficiary will
receive the Account Value, plus any positive MVA that would apply to any portion of
the Account allocated to GAA. The value of the Account is determined as of the
Valuation Date on which proof of death acceptable to us and a request for payment
are received at our Home Office.
(e) After the six month period, the withdrawal or Fund Transfer will be the aggregate
MVA amount (i.e., including all MVAs).
(f) 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 2 or 3.
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3.07 Fund Transfer(s): All or any portion of the Adjusted Current Value of the Individual Account (subject to the
limitations described below) may be transferred from any Fund, the Fixed Plus Account (if
available) or the GA Account (if available):
(a) To any Fund; or
(b) To the Fixed Plus Account (if available); or
(c) To any Guaranteed Term of the GA Account (if available) with a different
classification available in the Current Deposit Period.
Fund Transfer requests can be submitted as a percentage or as a dollar amount. Aetna may
establish a minimum Fund 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.
Fund Transfers from Guaranteed Terms of the GA Account are subject to the MVA provisions of
3.06.
During each rolling twelve (12) month period, up to 20% of the Fixed Plus Account value 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, Fund Transfers or amounts
taken as a loan or used to purchase an Annuity during the twelve (12) month period. Aetna
reserves the right to include amounts paid under ECO, LEO 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 Fund Transfer request is received in good order at
Aetna's Home Office.
The Participant may make an unlimited number of Fund Transfers during the Accumulation
Period.
A Fund Transfer or withdrawal from an Aetna GET Fund series before the Maturity Date will
be based on the GET Fund Record Unit Value for the next Valuation Period following the date
on which Aetna receives a transfer request in good order at its home office.
3.08 Aetna GET Fund Offering Period: Aetna will specify a minimum total asset amount required at the end of an Offering Period
to offer an Aetna GET Fund series. If the minimum is not achieved, Aetna reserves the right
to not start the Guaranteed Period.
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3.08 Aetna GET Fund Offering If an Aetna GET Fund series is terminated, Aetna will send written notification of the
Period (Cont'd): termination to all Participants who have made Fund Transfers or deposits to that Aetna GET
Fund Series. Notice will be mailed no later than 15 calendar days after the end of the
Offering Period. Participants then have 45 days from the end of the Offering Period to
redirect amounts in the terminated Aetna GET Fund series to one or more investment options
available under the Contract. During this time, Funds are invested in money market
instruments. If no election is made by the end of the 45-day Period, at the next Valuation
Period, Aetna will transfer the amount in the terminated Aetna GET Fund series to the
(Aetna Variable Encore Fund).
Aetna reserves the right to specify a maximum total asset amount for an Aetna GET Fund
series. If the maximum is achieved, Aetna also reserves the right to set a date on which it
will stop accepting Fund Transfers or deposits for that Aetna GET Fund series. Aetna will
announce the date on which it will stop accepting Fund Transfers and deposits ten calendar
days prior to that date.
3.09 Aetna GET Fund Guarantee: On the Maturity Date of each Aetna GET Fund series, the GET Fund Record Unit Value for that
series will not be less than the GET Fund Record Unit Value determined at the beginning of
the Guaranteed Period. If necessary, Aetna will transfer funds from its General Account to
the Aetna GET Fund series to offset any shortfall in the GET Fund Record Unit Value. The
Aetna GET Fund Guarantee does not apply to withdrawals or Transfers made before the
Maturity Date.
If Aetna GET Fund Record Units are adjusted at any time during an Aetna GET Fund Guaranteed
Period, the Aetna GET Fund Guarantee will be restated. The restated Aetna GET Fund
Guarantee will be calculated so that it is equivalent to the original Aetna GET Fund
Guarantee for that series.
3.10 Aetna GET Fund Maturity Date: Prior to the Maturity Date for each Aetna GET Fund series, Aetna sends a written notice of
the date to all participants who have Current Value in that series. Participants must then
inform Aetna of the investment option(s) to which to transfer that Current Value. If a
Participant does not make an election, on the Maturity Date Aetna will transfer the Current
Value to the then available Aetna GET Fund series' Offering Period. If no Offering Period
is available, Aetna will transfer 50% of the amount to the (Aetna Variable Fund) and 50% to
the (Aetna Income Shares).
3.11 Loans: If loans are included as an option under the Contract, (see Contract Schedule I) then the
following will apply.
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.
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3.11 Loans (Cont'd): (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 employers 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.
For plans subject to ERISA, the minimum loan amount is $1,000. For plans not subject to
ERISA, the minimum loan amount is defined in the loan agreement. 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: For 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 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 (see
Contract Schedule I).
(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.
(d) Loan repayment: Repayment is as set forth in the loan agreement, or a Participant
may repay a loan in full at any time.
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3.11 Loans (Cont'd): (e) Amount available for partial surrender while a loan is outstanding: While a loan is
outstanding, the amount available for partial surrender is equal to the vested
Individual Account Current Value, including the Loan Account, minus 125% of the
outstanding loan balance.
(f) Full surrenders while a loan is outstanding: If the Participant requests a full
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, then 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, then the surrender
amount cannot exceed the vested Individual Account Current Value, including
the Loan Account, reduced by 125% of the outstanding loan balance.
(g) 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 (f).
(h) 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.
(i) Loan payment default: If Aetna does not receive a loan payment when due, the
defaulted payment is treated as follows:
(1) If the amount of the vested Individual Account Current Value available for
distribution is sufficient to repay (a) the amount of the defaulted payment,
plus (b) any applicable Fixed Plus Account default charge, then that amount is
deducted from the vested Individual Account Current Value.
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3.11 Loans (Cont'd): (2) If the amount of the vested Individual Account Current Value available for
distribution is not sufficient to repay (a) the amount of the defaulted
payment, plus (b) any applicable Fixed Plus Account default charge, until such
time that the amount due can be distributed, the Loan Account continues to
earn interest, and interest is charged on the defaulted payment. At that time,
the amount due is surrendered from the vested Individual Account Current
Value.
3.12 Notice to the Participant: Each year, Aetna will notify the Participant of:
(a) The value of any amounts held in:
(i) The Fixed Plus Account (if available),
(ii) The GA Account (if available),
(iii) The Fund(s) for the Separate Account;
(b) The number of any fund(s) record units;
(c) The fund(s) record unit value(s);
(d) The amount available for withdrawal; and
(e) The Loan Account value.
This information will be as of a date no more than sixty (60) days before the date of the
notice.
3.13 Manner and Timing of (a) As directed by the Contract Holder, a distribution to a Participant or Beneficiary
Distributions: 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. The Participant or Beneficiary
may elect the form of distribution subject to certification in writing by the
Contract Holder that the Participant or Beneficiary is eligible both as to the
timing and form of distribution. All distributions must satisfy the minimum
distribution rules set forth in Code Section 401(a)(9).
(b) The distribution of benefits from the Employee and Employer Accounts must generally
begin no later than April 1 of the calendar year following the calendar year in
which the Participant attains age 70 1/2 or in the case of a governmental or church
plan the calendar year in which the Participant attains age 70 1/2 or retires,
whichever occurs later. 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.
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3.13 Manner and Timing of The entire value of the Individual Account must be distributed, or distribution must
Distributions (Cont'd): be made over the life of the Participant, the joint lives of the Participant and
Beneficiary or over a period that does not extend beyond the life expectancy of the
Participant or the joint life expectancies of the Participant and Beneficiary.
(c) If the Participant does not request commencement of benefits from the Employee and
Employer Accounts 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.
3.14 Withdrawal: (a) The Participant may withdraw any portion or all of an Individual Account Adjusted
Current Value and transfer such amount to another investment provider under the
Plan. The withdrawal and transfer request must be submitted in writing to Aetna.
(b) Except as described in Section 3.17, 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 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.
(d) Any amount withdrawn from the Fixed Plus Account will be subject to the limitations
in 3.15, 3.16 and 3.17.
3.15 Partial Withdrawal from the The amount eligible for partial withdrawal is 20% of the Current Value of the amount held
Fixed Plus Account: in the Fixed Plus Account on the day Aetna's Home Office receives a written request,
reduced by any previous Fund Transfer, partial withdrawal or amounts taken as a loan or
used to purchase Annuity benefits during the prior 12 months. Aetna reserves the right to
include amounts paid under ECO, LEO and SWO for purposes of applying this 20% limit.
However, SWO and LEO are unavailable if a Fixed Plus Account Transfer or withdrawal is
requested within the current 12 month Period.
The 20% limit applicable to partial withdrawals from the Fixed Plus Account will be waived
under certain conditions and will apply when the partial withdrawal is made on a pro rata
basis from all options used under the Participant's Individual Account. (See Contract
Schedule I).
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3.16 Payment of Fixed Plus Account When Aetna receives a full withdrawal request, no additional partial withdrawals or Fund
Full Withdrawal: Transfers from the Fixed Plus Account are permitted during the payout period. If a full
withdrawal is requested, Aetna will pay any Current Value 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 12 months;
(b) One-fourth of the remaining Current Value 12 months later;
(c) One-third of the remaining Current Value 12 months later;
(d) One-half of the remaining Current Value 12 months later; and
(e) The balance of the Current Value 12 months later.
The Fixed Plus Account full withdrawal payment provision will be waived when a withdrawal
is:
(a) Due to the Participant's death before Annuity benefit payments begin;
(b) Used to purchase Annuity benefits;
(c) When the amount in the Fixed Plus Account is $3,500 or less and no amount has been
withdrawn, transferred, taken as a loan or used to purchase Annuity benefits during
the previous 12 months;
(d) Due to hardship when the following conditions are met:
(1) the withdrawal is due to an employer certified hardship;
(2) the amount withdrawn is paid directly to the Participant; and
(3) the amount paid for all partial and full withdrawals due to hardship during
the previous 12-month period does not exceed 10% of the average Current Value
for all Individual Accounts during the same period of time; or
(e) Due to separation from service provided that:
(1) the withdrawal is due to the Participant's separation from service with the
employer;
(2) the employer certifies that the Participant has separated from service;
(3) the amount withdrawn is paid directly to the Participant; and
(4) the amount paid for all partial and full withdrawals due to separation from
service during the previous 12-month period does not exceed 20% of the average
Current Value of all Individual Accounts during that same period of time.
Any full withdrawal from the Fixed Plus Account may be cancelled at any time before the end
of the payment period.
3.17 Payment of Minimum Current If the Individual Accounts Current Value is less than $3,500, and no Contributions have
Value: been received for three (3) years, Aetna may close the Account and pay the Current Value as
directed by the Contract Holder in one lump sum.
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3.18 Amount Payable at Death Aetna will pay any portion of the Individual Account(s) Current Value, to the Beneficiary
(Before Annuity Payments when:
Start):
(a) The Participant dies before Annuity payments start; and
(b) The certified copy of the death certificate is received by Aetna; and
(c) A completed and signed election form is submitted to the Home Office. The form must
include Contract Holder certification that the Beneficiary is eligible for a
distribution under the terms of the Plan.
A guaranteed death benefit is available if the Beneficiary requests either a lump-sum
payment or an Annuity option within six months of the Participant's death.
For each Individual Account, the death benefit is guaranteed to be the greater of:
(a) The Current Value of the Individual Account plus aggregate positive MVA, as
applicable, on the date the notice of death and the request for payment are
received in good order at Aetna's Home Office; or
(b) The total of Net Contribution(s) made to the Individual Account minus the total of
all partial withdrawals, annuitizations made from the Individual Account and any
amount allocated from the Individual Account to the Loan Account.
If the Participant dies before distributions begin in accordance with the provisions of
Code Section 401(a)(9), the entire value of the Account must be distributed by December 31
of the calendar year containing the fifth anniversary of the date of the Participant's
death. Alternatively, if the Participant has a designated Beneficiary, payments may be made
over the life of the Beneficiary or over a period not extending beyond the life expectancy
of the Beneficiary provided distribution to a non-spouse Beneficiary begins by December 31
of the calendar year following the calendar year of the Participant's death. For a spousal
Beneficiary, such payments must begin by the later of December 31 of the calendar year of
the Participant's death or December 31 of the calendar year in which the Participant would
have attained age 70 1/2.
If the Participant dies after distributions begin in accordance with the provisions of Code
Section 401(a)(9), payments to the Beneficiary must be made at least as rapidly as the
method of distribution in effect at the time of the Participant's death. If the minimum
distribution requirements have been met by partial withdrawals based on the participant's
life expectancy or the joint life expectancies of the Participant and Beneficiary, death
benefit payments to the Beneficiary must also satisfy any additional requirements of Code
Section 401(a)(9).
Amounts in the GA Account will be payable as described in Section 3.07(d).
23
<PAGE>
3.19 Reinstatement: All or a portion of the proceeds of a full withdrawal of an Individual Account may be
reinvested within 30 days after the surrender if allowed by law. 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, GA Account, and the Fund(s) in the
same proportion as they were at the time of withdrawal. Any amount reinstated to the GA
Account will be credited to the current Deposit Period. The number of record units
reinstated will be based on the record unit value(s) next computed after receipt at Aetna's
Home Office of the reinstatement request and the amount to be reinvested.
Amounts attributable to an Aetna GET Fund series will be reinstated to the current Offering
Period of the Aetna GET Fund series. If no Aetna GET Fund series Offering Period is
available, amounts withdrawn from the Aetna GET Fund series will be allocated, pro rata,
among all other investment options in which the Individual Account is invested.
Any Individual Account(s) closed because the Current Value was less than $3,500 may not be
reinstated (see 3.17).
A Reinstatement is permitted only once per Individual Account.
IV. NON-ANNUITY DISTRIBUTION OPTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
4.01 Distribution Options: Distribution Options: ECO, LEO and SWO are distribution options under which a portion of
the Individual Account Current Value will automatically be surrendered and distributed each
calendar year. The distributed amount is withdrawn pro rata from each investment option
under the Individual Account. The Contract Holder must certify in writing that
distributions are being made in accordance with the Plan.
Market Value Adjustment: A Market Value Adjustment will not be applied to any portion of
the Current Value which is paid under ECO.
Minimum Current Value: At its discretion, Aetna may require a minimum initial Current Value
for election of a distribution option. If after election of the option the Current Value is
insufficient to make a scheduled payment, Aetna will distribute the entire Individual
Account balance.
Reservations of Rights: Aetna reserves the right to change the terms of ECO, LEO or SWO for
future elections, to discontinue the availability of these options after proper
notification, or to make other distribution options available as allowed by the state in
which this Contract is delivered. Aetna also reserves the right to allow ECO and LEO
payments to be made more frequently than annually.
24
<PAGE>
4.01 Distribution Options (Cont'd): Election and Revocation: The Participant or Beneficiary may elect a distribution option by
submitting a completed and signed election form to Aetna's Home Office. However, the
Contract Holder must certify in writing that the distribution option is in accordance with
the terms of the Plan. If the Individual Account is subject to ERISA, the Contract Holder
must certify in writing that the waiver and spousal consent requirements of Code Section
417 have been satisfied.
Once elected, the Participant or Beneficiary may revoke the option by submitting a written
request to Aetna's Home Office. Any revocation will apply only to amounts not yet paid.
Availability of ECO, LEO and SWO: The Participant may elect any one of the following three
distribution options, if they are available as an option under the Contract (see Contract
Schedule I) and if the Contract Holder certifies that the election is in accordance with
the terms of the Plan. The Beneficiary may elect either ECO or SWO, if they are available
as an option under the Contract (see Contract Schedule I) and if the Contract Holder
certifies that the election is in accordance with the terms of the Plan.
An individual who has revoked ECO, LEO or SWO may not subsequently elect that option again,
nor may the individual elect another withdrawal option unless permitted under the Code
minimum distribution rules.
LEO and SWO are not available if there is an outstanding loan under the Individual Account,
or if a Fixed Plus Account transfer or surrender has occurred within the prior 12 month
period. Payments will cease if a loan is granted while LEO or SWO is in effect.
If LEO is in effect and the Participant dies, or if ECO or SWO is in effect and the
Participant dies before the required beginning date for minimum distributions, payments
will cease. A Beneficiary may elect ECO or SWO provided the election satisfies the Code
minimum distribution rules.
If ECO or SWO is in effect and the Participant dies after the required beginning date for
minimum distributions, payments will continue as permitted under the Code minimum
distribution rules, unless revoked.
4.02 Estate Conservation Option Amount of Distribution: Each year that ECO is in effect, Aetna will calculate and
(ECO): distribute an amount equal to the minimum required distribution 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 year for which payment is to be made by a life
expectancy factor based on expected return multiples in Table V and VI of Section 1.72-9 of
the Income Tax Regulations.
25
<PAGE>
4.02 Estate Conservation Option The Participant may elect either the single or joint life expectancy factor. If the joint
(ECO) (Cont'd): life expectancy factor is elected, the second life must be the Beneficiary under the Plan.
If the Beneficiary selects ECO after the Participant's death, only a single life expectancy
factor may be used. The life expectancy or joint life expectancy factor will be
recalculated each year in accordance with the rules under Code Section 401(a)(9).
Date of Distribution: The Participant shall specify the initial distribution date. The
earliest date is the first day of the calendar year in which the Participant attains age
70 1/2 or, for plans of government or church employers, the date the Participant retires,
whichever is later. If a Beneficiary elects ECO, the earliest date is the date of the
Participant's death. Subsequent distribution will be made annually on such date as Aetna
may designate or allow.
4.03 Life Expectancy Option (LEO): Amount of Distribution: Each year that LEO is in effect, Aetna will calculate and
distribute an amount determined by dividing the Individual Account Current Value as of
December 31 of the year prior to the year for which payment is to be made by a life
expectancy factor based on expected return multiples in Table V and VI of Section 1.72-9 of
the Income Tax Regulations. Payments will be made each year until the year the Participant
attains age 70 1/2, or until the Participant dies, if earlier.
The Participant may elect either the single or joint life expectancy factor. If the joint
life expectancy factor is elected, the second life must be the Beneficiary under the Plan.
The life expectancy or joint life expectancy factor will be recalculated each year in
accordance with the rules under Code Section 401(a)(9), or reduced by one for each calendar
year which has elapsed since the life expectancy was first calculated, as elected by the
Participant.
Date of Distribution: The Participant shall specify the initial distribution date. The
earliest date is the date on which the Participant separates from service with the
employer. Subsequent distribution will be made annually on such date as Aetna may designate
or allow.
4.04 Systematic Withdrawal Option Amount of Distribution: The Participant may elect one of the three payment methods
(SWO): described below.
(1) Specified Payment: Payments of a designated dollar amount. The annual amount may not
be greater than the percentage of the Current Value at time of election as shown in
Contract Schedule I. This annual dollar amount will remain constant, unless a higher
amount is required under Code minimum distribution rules. At its discretion, Aetna
may require a minimum initial payment amount; or
26
<PAGE>
4.04 Systematic Withdrawal Option (2) Specified Period: Payments which are made over a period of time which must be at
(SWO) (Cont'd): least the minimum number of years shown in Contract Schedule I. The annual amount
paid each year is calculated by dividing the Current Value as of December 31 of the
prior year by the number of payment years remaining; or
(3) Specified Percentage: Payment of a designated percentage which cannot be greater
than the percentage of the Current Value at the time of election as shown in
Contract Schedule I. The percentage may be changed by written request. Aetna
reserves the right to limit the number of times the percentage may be changed. The
annual amount is calculated by multiplying the Current Value as of December 31 of
the year prior to the payment by the designated percentage. Payments will be made
each year until the year the Participant attains age 70 1/2.
Minimum Distribution Requirements: If distributions are made under SWO after payments are
required to begin under the minimum distribution requirements of Code Section 401(a)(9),
the amount distributed in any year will be increased if required under the Code minimum
distribution rules.
For this purpose, the minimum required distribution will be determined each year by
dividing the Individual Account Current Value as of December 31 of the year prior to the
year for which payment is to be made by a life expectancy factor, which for the initial
distribution year shall be based on either the single life expectancy factor or joint life
expectancy factor in Table V or VI of Section 1.72.9 of the Income Tax Regulations, as
elected by the Participant. If the joint life expectancy factor is elected, the second life
must be the Beneficiary under the Plan. If a Beneficiary elects SWO after the Participant's
death, only a single life expectancy factor may be used. Minimum distributions for any
subsequent year will be calculated based on such life expectancy factor reduced by one for
each calendar year which has elapsed since the life expectancy was first calculated. If the
specified period method is elected, the maximum specified period will be limited by the
single life expectancy factor or joint life expectancy factor in Table V or VI of Section
1.72-9 of the Income Tax Regulations, as elected by the Participant. If elected by a
Beneficiary, only a single life expectancy may be used.
Date of Distribution: The Participant shall specify the initial distribution date. The
earliest date is the date on which the Participant attains age 59-1/2 or age 55, if
separated from service with the employer at or after age 55. If a Beneficiary elects SWO,
the earliest date is the date of the Participant's death.
SWO payments will be made on a monthly, quarterly, semi-annual or annual basis, as elected
by the Participant or Beneficiary. If SWO payments are made more frequently than annually,
the designated annual amount is divided by the number of payments due each calendar year.
Subsequent distribution will be made periodically on such date as Aetna may designate or
allow.
27
<PAGE>
V. ANNUITY PROVISIONS
- ------------------------------------------------------------------------------------------------------------------------------------
5.01 General Provisions: (a) Upon certification by the Contract Holder of the Participant's total disability,
acceptance of retirement or separation from service, the Participant has the right
to elect an Annuity option. The Participant must transfer any portion of the
Current Value held in an Aetna GET Fund series to another investment option before
an Annuity option is elected.
(b) 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 1, 2, or 3 (See
5.02).
(c) A completed and signed election form must be submitted to the Home Office. The form
must include Contract Holder certification that the Participant is eligible for a
distribution under the terms of the Plan and that the Annuity option chosen is
permitted under the terms of the Plan.
(d) 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 3 is
chosen and the second Annuitant is the spouse of the Participant.
(e) Once elected, an Annuity option may not be revoked, except for Option 1 when elected
on a variable basis.
5.02 Annuity Options: Option 1 - 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.
Option 2 - Life Income based on the life of the Annuitant. Payments will be made until the
death of the Annuitant. When this option is chosen, a choice of the following must be made:
(a) Payments cease at the death of the Annuitant;
(b) Payments may be guaranteed for 5-30 years; or
(c) Payments may be guaranteed for the amount applied to the Annuity option. If the
Annuitant dies prior to the payment of the amount applied to the Annuity option
(less any premium tax), any remaining balance will be paid in one sum to the
Beneficiary. This option is only available on a fixed basis.
28
<PAGE>
5.02 Annuity Options (Cont'd): Option 3 - 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) 100% of the payment to continue after the first death with a guarantee of 5-30 years;
(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; or
(f) 100% of the payment to continue after the first death. Payments are guaranteed for
the amount applied to the Annuity option. If both Annuitants die prior to the total
payment of the amount applied to the Annuity option (less any premium tax), any
remaining balance will be paid in one sum to the Beneficiary. This option is only
available on a fixed basis.
If a fixed Annuity option is chosen under Option 1, Option 2 (a) or (b) or Option 3 (a) or
(d), then the Participant may elect a payment increase of 1, 2 or 3%, compounded annually.
An election of such a payment increase will result in a adjustment of the policy guarantees
by an actuarially equivalent payment factor.
Other Options - Aetna may make other options available as allowed by the laws of the state
in which this Contract is delivered.
5.03 Payments: (a) Upon written direction from the Contract Holder, 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.
(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 in the case of a
governmental or church plan, the year in which the Participant attains age 70 1/2 or
retires, whichever occurs later. 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 April 1 of the calendar year following the calendar year in which the
Participant retires.
(c) Payments will be made on a monthly basis unless the Participant requests otherwise.
If payments are made on a quarterly, semi-annual or annual basis, Aetna will
calculate an actuarially equivalent payment factor.
29
<PAGE>
5.03 Payments (Cont'd): (d) No choice of any Annuity option may be made if the first payment would be less than
$50 per month or if the total payments in a year would be less than $250.
(e) For purposes of calculating the guaranteed first payment of a variable Annuity or
the payments for a fixed Annuity, the Annuitants and second Annuitants adjusted age
will be used.
The Annuitants and second Annuitants 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 Annuitants and second Annuitants 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 Annuitants and second Annuitants age
will be reduced by one additional year for Annuity commencement dates occurring in
each succeeding decade.
(f) If a Fixed Annuity under Option 1, 2 or 3 is elected, Aetna will use the applicable
current settlement option rates if these will provide higher fixed Annuity payments.
5.04 Investment Option: (a) 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). The 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) (at the annual
rate shown on Contract Schedule II) and a daily administrative charge if future variable
Annuity payments are to remain level.
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:
30
<PAGE>
5.05 Fund Annuity Units (Cont'd): (a) The portion of the Current Value (minus any 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 Date 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 Date prior to the due date of the payment is used.
5.06 Fund Annuity Unit Value: For any Valuation Date, a Fund(s) Annuity unit value is equal to:
(a) The value for the previous Valuation Date; 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 values 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 The Annuity net return factor(s) are used to compute all Separate Account Annuity payments
Factor: for any Fund.
The Annuity net return factor(s) for each Fund is equal to 1.0000000 plus the net return
rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by the Separate Account at the end of a
Valuation Period, minus
(b) The value of the shares of the Fund held by the Separate Account at the start of the
Valuation Period, plus or minus
(c) Taxes (or reserves for taxes) on the Separate Account (if any); divided by
(d) The total value of the Fund(s) record units and Fund(s) Annuity units of the
Separate Account at the start of the Valuation Period; minus
(e) A daily charge for Annuity mortality and expense risks, which may include a profit,
(at the annual rate as shown on Contract Schedule II), and a daily administrative
charge.
A net return rate may be more or less than 0%. The value of a share of the Fund is equal to
the net assets of the Fund divided by the number of shares outstanding.
31
<PAGE>
5.08 Fund Transfers During the At the request of the Contract Holder or the Participant if the Contract Holder has
Annuity Period: directed Aetna to accept such a request from the Participant, all or any portion of the
Current Value may be transferred from any variable Fund to any other allowable Fund. Aetna
reserves the right to allow no more than four Funds to be selected at any one time. Fund
Transfers will be processed as of the Valuation Date next following when a transfer request
is received in good order at Aetna's Home Office. The maximum number of allowable transfers
(during the Annuity period) in a calendar year is shown on Contract Schedule II.
Fund Transfer requests must be expressed as a percentage of each Funds allocation to the
Annuity payment. Aetna may establish a minimum transfer amount.
5.09 Death Benefit: Upon the death of the Annuitant(s), any remaining guaranteed payments will continue to the
Beneficiary unless the Beneficiary elects to receive the present value of any remaining
guaranteed payments in a lump sum. Such payments will be paid at least as rapidly as under
the method of distribution then in effect. If the Beneficiary dies while receiving
payments, the present value of any remaining guaranteed payments will be paid in one sum to
the Beneficiary's estate.
The interest rate used to determine the first Annuity payment will be used to calculate the
present value. The present value will be determined as of the Valuation Period in which
proof of death acceptable to Aetna and a request for payment is received at Aetna's Home
Office.
</TABLE>
32
<PAGE>
OPTION 1
Payments for a Stated Period of Time
Amount of 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>
- ---------------------------------------------------------------------------------------------------
Monthly Monthly
Years Payment Years Payment
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
5 17.91 18 5.96
6 15.14 19 5.73
7 13.16 20 5.51
8 11.68 21 5.32
9 10.53 22 5.15
10 9.61 23 4.99
11 8.86 24 4.84
12 8.24 25 4.71
13 7.71 26 4.59
14 7.26 27 4.47
15 6.87 28 4.37
16 6.53 29 4.27
17 6.23 30 4.18
- ---------------------------------------------------------------------------------------------------
</TABLE>
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Monthly Monthly
Years Payment Years Payment
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
5 18.12 18 6.20
6 15.35 19 5.97
7 13.38 20 5.75
8 11.90 21 5.56
9 10.75 22 5.39
10 9.83 23 5.24
11 9.09 24 5.09
12 8.46 25 4.96
13 7.94 26 4.84
14 7.49 27 4.73
15 7.10 28 4.63
16 6.76 29 4.53
17 6.47 30 4.45
- ---------------------------------------------------------------------------------------------------
</TABLE>
33
<PAGE>
OPTION 1
Payments for a Stated Period of Time
Amount of 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>
- ---------------------------------------------------------------------------------------------------
Monthly Monthly
Years Payment Years Payment
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
5 18.74 18 6.94
6 15.99 19 6.71
7 14.02 20 6.51
8 12.56 21 6.33
9 11.42 22 6.17
10 10.51 23 6.02
11 9.77 24 5.88
12 9.16 25 5.76
13 8.64 26 5.65
14 8.20 27 5.54
15 7.82 28 5.45
16 7.49 29 5.36
17 7.20 30 5.28
- ---------------------------------------------------------------------------------------------------
</TABLE>
34
<PAGE>
OPTION 2
Life Income
Amount of 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 Years
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Adjusted Cash
Age of Annuitant None 5 10 15 20 Refund
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
50 $ 4.05 $ 4.05 $ 4.03 $ 3.99 $ 3.93 $ 3.89
51 4.12 4.11 4.09 4.05 3.99 3.94
52 4.19 4.19 4.16 4.11 4.04 4.00
53 4.27 4.26 4.23 4.18 4.10 4.06
54 4.35 4.34 4.31 4.25 4.16 4.12
55 4.44 4.42 4.39 4.32 4.22 4.19
56 4.53 4.51 4.47 4.40 4.29 4.26
57 4.62 4.61 4.56 4.48 4.35 4.33
58 4.72 4.71 4.65 4.56 4.42 4.41
59 4.83 4.81 4.75 4.64 4.49 4.49
60 4.95 4.93 4.86 4.73 4.55 4.57
61 5.07 5.05 4.97 4.83 4.62 4.66
62 5.20 5.17 5.08 4.92 4.69 4.76
63 5.34 5.31 5.20 5.02 4.76 4.85
64 5.49 5.45 5.33 5.12 4.83 4.96
65 5.65 5.61 5.47 5.22 4.89 5.06
66 5.82 5.77 5.61 5.33 4.96 5.18
67 6.01 5.94 5.75 5.44 5.02 5.30
68 6.20 6.13 5.91 5.54 5.08 5.42
69 6.41 6.33 6.07 5.65 5.14 5.56
70 6.64 6.54 6.23 5.76 5.19 5.70
71 6.88 6.76 6.41 5.86 5.24 5.84
72 7.14 7.00 6.59 5.97 5.28 6.00
73 7.43 7.26 6.77 6.06 5.32 6.16
74 7.73 7.53 6.96 6.16 5.35 6.33
75 8.06 7.82 7.14 6.25 5.38 6.51
- -----------------------------------------------------------------------------------------------------------------
</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.
35
<PAGE>
OPTION 2
Life Income
Amount of 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 Years
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Adjusted
Age of Annuitant None 5 10 15 20
- -------------------------------------------------------------------------------------------------
<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
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.
36
<PAGE>
OPTION 2
Life Income
Amount of 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 Years
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Adjusted
Age of Annuitant None 5 10 15 20
- -------------------------------------------------------------------------------------------------
<S> <C> <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 5.93 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
- -------------------------------------------------------------------------------------------------
</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.
37
<PAGE>
OPTION 3
Life Income for Two Annuitants
Amount of 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>
- ------------------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
- ---------------------------------- Option 3d
Second 10 Years
Annuitant Annuitant Option 3a Option 3b Option 3c Guaranteed Option 3e Option 3f
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
55 50 $ 3.69 $ 4.05 $ 4.27 $ 3.69 $ 4.03 $ 3.69
55 55 3.88 4.25 4.47 3.87 4.14 3.87
55 60 3.99 4.44 4.71 3.98 4.20 3.98
60 55 3.99 4.44 4.71 3.98 4.42 3.98
60 60 4.24 4.71 4.99 4.23 4.57 4.23
60 65 4.38 4.97 5.32 4.38 4.65 4.38
65 60 4.38 4.97 5.32 4.38 4.93 4.38
65 65 4.72 5.33 5.70 4.71 5.14 4.72
65 70 4.93 5.68 6.15 4.91 5.27 4.91
70 65 4.93 5.68 6.15 4.91 5.66 4.91
70 70 5.40 6.21 6.70 5.36 5.96 5.38
70 75 5.69 6.68 7.32 5.62 6.13 5.66
75 70 5.69 6.68 7.32 5.62 6.67 5.66
75 75 6.37 7.45 8.15 6.23 7.12 6.33
75 80 6.78 8.11 8.99 6.54 7.36 6.71
- ------------------------------------------------------------------------------------------------------------------------------------
</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.
38
<PAGE>
OPTION 3
Life Income for Two Annuitants
Amount of 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
- ---------------------------------- Option 3d
Second 10 Years
Annuitant Annuitant Option 3a Option 3b Option 3c Guaranteed Option 3e
- -----------------------------------------------------------------------------------------------------------------------
<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 not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
39
<PAGE>
OPTION 3
Life Income for Two Annuitants
Amount of 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
- ---------------------------------- Option 3d
Second 10 Years
Annuitant Annuitant Option 3a Option 3b Option 3c Guaranteed Option 3e
- -----------------------------------------------------------------------------------------------------------------------
<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 sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
40
<PAGE>
- --------------------------------------------------------------------------------
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 GROUP ANNUITY 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.
-----------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
Hartford, Connecticut 06156
(800) 525-4225
You may call the toll-free number shown
above to get answers to your questions or
help to resolve a complaint.
Aetna Life Insurance and Annuity Company,
herein called Aetna, agrees to pay the
benefits stated in the Contract.
- --------------------------------------------------------------------------------
Certificate of Group Annuity To the Certificate Holder:
Coverage
Aetna certifies that coverage is in force
for you under the stated Group Annuity
Contract and Certificate numbers. All data
shown here is taken from Aetna records and
is based upon information furnished by
you.
This Certificate is a summary of the Group
Annuity Contract provisions. It replaces
any and all prior certificates, riders, or
amendments issued to you under the stated
Contract and Certificate numbers. This
Certificate is for information only and is
not a part of the Contract.
THE VARIABLE FEATURES OF THE GROUP
CONTRACT ARE DESCRIBED IN PARTS III AND V.
- --------------------------------------------------------------------------------
Right to Cancel You 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.
/s/ Dan Kearney /s/ Susan E. Schechter
President Secretary
- --------------------------------------------------------------------------------
Contract Holder Group Annuity Contract No.
Specimen Specimen
- --------------------------------------------------------------------------------
Your Name Certificate No.
Specimen Specimen
- --------------------------------------------------------------------------------
Type of Plan
Retirement Plan for Higher Education
- --------------------------------------------------------------------------------
The underlying group combination annuity contract is delivered Anystate
in and is subject to the laws of that jurisdiction.
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP ANNUITY 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.
GTCC-96(TORP)
<PAGE>
Specifications
- --------------------------------------------------------------------------------
Guaranteed There is a guaranteed interest rate for Contribution(s)
Interest Rate held in the Fixed Plus Account and the GA Account. (See
Certificate Schedule I).
- --------------------------------------------------------------------------------
Deductions from There will be deductions for mortality and expense risks.
the Separate There also may be deductions for administrative charges and
Account asset based sales charges. (See 3.05 and 5.06.)
- --------------------------------------------------------------------------------
Deduction from Contribution(s) are subject to a deduction for premium
Contribution(s) taxes, if any. (See 3.02.)
2
<PAGE>
Contract Schedule I
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 daily charge is at an annual
effective rate of [1.25%] for Annuity
mortality and expense risks, [0.15%] for asset
based sales charge and a daily administrative
charge which will not exceed [0.25%] on an
annual basis.
The daily charge for the Aetna GET Fund
Guarantee will be at an annual rate of
[0.25%].
Fixed Plus Account [Is Available]
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest [3%] (effective annual rate of return).
Rate:
Partial Withdrawal: The [20%] limit applicable to partial
withdrawal from the Fixed Plus Account will be
waived when the withdrawal is:
(a) due to the Participant's death, (and made
within [six (6)] months of the
Participant's date of death), before
Annuity payments begin. This partial
withdrawal may only be exercised once; or
(b) used to purchase Annuity benefits.
Guaranteed Accumulation Account (GA Account) [Is Available]
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest [3%] (effective annual rate of return).
Rate:
i
<PAGE>
Contract Schedule I
Accumulation Period (Cont'd)
Separate Account, Fixed Plus Account and GA Account
- --------------------------------------------------------------------------------
Loans: [Are Available]
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.
Systematic Withdrawal Option [Is Available]
(SWO):
The Specified Payment 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
[five years].
The Specified Percentage may not be greater
than [20%].
Estate Conservation Option [Is Available]
(ECO):
Life Expectancy Option (LEO): [Is Available]
See Section 1. - DEFINITIONS for explanations.
ii
<PAGE>
Contract Schedule II
Annuity Period
Separate Account
- --------------------------------------------------------------------------------
Fund Transfers: Maximum number of allowable transfers in the
Annuity Period is [4].
Charges to Separate Account: A daily charge at an annual effective rate of
[1.25%] for Annuity mortality and expense
risks. The administrative charge is
established upon election of an Annuity
option. This charge will not exceed [0.25%].
Variable Annuity Assumed If a Variable Annuity is chosen, an assumed
Annual Net Return Rate: annual net return rate of [5.0%] may be
elected. If [5.0%] is not elected, Aetna will
use an assumed annual net return rate of
[3.5%].
The assumed annual net return rate factor for
[3.5%] per year is [0.9999058].
The assumed annual net return rate factor for
[5.0%] per year is [0.9998663].
If the portion of a Variable Annuity payment
for any Fund is not to decrease, the Annuity
return factor under the Separate Account for
that Fund must be:
(a) [4.75%] on an annual basis plus an annual
return of up to [0.25%] to offset the
administrative charge set at the time
Annuity payments commence if an assumed
annual net return rate of [3.5%] is
chosen; or
(b) [6.25%] on an annual basis plus 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: Under the option "Payments for a Stated Period
of Time":
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.
Fixed Annuity
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest [3%] (effective annual rate of return).
Rate:
See Section 1. - DEFINITIONS for explanations.
iii
<PAGE>
TABLE OF CONTENTS
I. DEFINITIONS
- -------------------------------------------------------------------------------
Page
1.01 Accumulation Period................................................ 6
1.02 Adjusted Current Value............................................. 6
1.03 Aetna GET Fund Offering Period..................................... 6
1.04 Aetna GET Fund Guaranteed Period................................... 6
1.05 Aetna GET Fund Maturity Date....................................... 6
1.06 Annuitant.......................................................... 6
1.07 Annuity............................................................ 6
1.08 Beneficiary........................................................ 6
1.09 Code............................................................... 7
1.10 Contract Holder.................................................... 7
1.11 Contribution....................................................... 7
1.12 Current Value...................................................... 7
1.13 Deposit Period..................................................... 7
1.14 Fixed Plus Account................................................. 7
1.15 Fixed Plus Account Guaranteed Interest Rate........................ 7
1.16 Fixed Annuity...................................................... 7
1.17 Fund(s)............................................................ 7
1.18 Fund Transfer(s)................................................... 7
1.19 General Account.................................................... 8
1.20 Guaranteed Accumulation Account (GA Account)....................... 8
1.21 GA Account Guaranteed Interest Rate................................ 8
1.22 Guaranteed Term.................................................... 8
1.23 Individual Account................................................. 9
1.24 Loan Account....................................................... 9
1.25 Loan Effective Date................................................ 9
1.26 Loan Interest Rate................................................. 9
1.27 Market Value Adjustment (MVA)...................................... 9
1.28 Matured Term Value................................................. 9
1.29 Matured Term Value Transfer........................................ 9
1.30 Maturity Date...................................................... 10
1.31 Monthly Average Corporates......................................... 10
1.32 Net Contribution................................................... 10
1.33 Nonunitized Separate Account....................................... 10
1.34 Participant........................................................ 10
1.35 Plan............................................................... 10
3
<PAGE>
Page
1.36 Reinvestment....................................................... 10
1.37 Separate Account................................................... 11
1.38 Valuation Date..................................................... 11
1.39 Valuation Period................................................... 11
1.40 Variable Annuity................................................... 11
II. GENERAL PROVISIONS
- -------------------------------------------------------------------------------
2.01 Change of Contract................................................. 11
2.02 Change of Fund..................................................... 12
2.03 Nonparticipating Contract.......................................... 12
2.04 Payments........................................................... 12
2.05 State Laws......................................................... 12
2.06 Control of Contract................................................ 12
2.07 Designation of Beneficiary......................................... 13
2.08 Misstatements and Adjustments...................................... 13
2.09 Incontestability................................................... 13
2.10 Grace Period....................................................... 14
2.11 Individual Certificates............................................ 14
III. CONTRIBUTIONS, CURRENT VALUE, and WITHDRAWAL PROVISIONS
- -------------------------------------------------------------------------------
3.01 Limitation on Contributions........................................ 14
3.02 Net Contribution(s)................................................ 14
3.03 Experience Credits................................................. 14
3.04 Fund Record Units.................................................. 14
3.05 Fund Record Unit Value............................................. 15
3.06 Fund Net Return Factors............................................ 15
3.07 Market Value Adjustment............................................ 15
3.08 Fund Transfer(s)................................................... 17
3.09 Aetna GET Fund Offering Period..................................... 18
3.10 Aetna GET Fund Guarantee........................................... 19
3.11 Aetna GET Fund Maturity Date....................................... 19
3.12 Loans.............................................................. 19
3.13 Notice to the Participant.......................................... 22
3.14 Withdrawal Restrictions............................................ 22
3.15 Manner and Timing of Distributions................................. 23
3.16 Withdrawal......................................................... 23
3.17 Partial Withdrawal from the Fixed Plus Account..................... 23
3.18 Payment of Fixed Plus Account Full Withdrawal...................... 24
3.19 Payment of Minimum Current Value................................... 25
4
<PAGE>
Page
3.20 Amount Payable at Death (Before Annuity Payments Start)............ 25
3.21 Reinstatement...................................................... 26
IV. NON-ANNUITY DISTRIBUTION OPTIONS
- ------------------------------------------------------------------------------
4.01 Distribution Options............................................... 27
4.02 Estate Conservation Option......................................... 29
4.03 Life Expectancy Option............................................. 29
4.04 Systematic Withdrawal Option....................................... 30
V. ANNUITY PROVISIONS
- ------------------------------------------------------------------------------
5.01 General Provisions................................................. 31
5.02 Annuity Options.................................................... 32
5.03 Payments........................................................... 33
5.04 Investment Option.................................................. 34
5.05 Fund Annuity Units................................................. 35
5.06 Fund Annuity Unit Value............................................ 35
5.07 Fund Annuity Net Return Factor..................................... 35
5.08 Fund Transfers During the Annuity Period........................... 36
5.09 Death Benefit...................................................... 37
5
<PAGE>
<TABLE>
<S> <C> <C>
I. 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 1.12) of an Individual Account (See 1.19) plus or minus any
applicable aggregate GA Account Market Value Adjustment. (See 3.07).
1.03 Aetna GET Fund Offering The period, usually from one to three months, during which Participants may transfer or
Period: deposit amounts to an Aetna GET Fund series. Each Aetna GET Fund series has a specified
(Offering Period) Offering Period. Amounts transferred or deposited prior to the date on which the Guaranteed
Period begins are invested in money market instruments.
Aetna reserves the right to state the minimum amount a Participant may transfer or deposit
to each Offering Period. Aetna also reserves the right to extend an Offering Period or
accept Fund transfers or deposits to an Aetna GET Fund series during the series' Guaranteed
Period.
1.04 Aetna GET Fund Guaranteed For each Aetna GET Fund series, the period for which the Aetna Get Fund Guarantee applies.
Period: (Guaranteed Period) The Guaranteed Period ends on the Maturity Date.
1.05 Aetna GET Fund Maturity Date: The date on which a series' Guaranteed Period ends and GET Fund Record Units for the series
(Maturity Date) are liquidated.
1.06 Annuitant: If an Annuity provides lifetime benefits, the person whose life expectancy determines the
amount and/or duration of Annuity benefit payments.
1.07 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).
1.08 Beneficiaries: The person(s) named to receive any benefits which remain under the Contract after the
Participant's death. Participant(s) designate a Beneficiary for their Individual
Account(s). (See 2.07)
1.09 Code: The Internal Revenue Code of 1986, as amended.
1.10 Contract Holder: The entity, named on the cover of this Contract, to which the Contract is issued.
6
<PAGE>
1.11 Contribution: A payment received at Aetna's Home Office and allocated to this Contract.
1.12 Current Value: For an Individual Account (See 1.23), 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.
1.13 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 Guaranteed Terms.
1.14 Fixed Plus Account: If offered as an investment option under the Contract (see Contract Schedule I) the Fixed
Plus Account is an accumulation option with a guaranteed minimum interest rate. Aetna may
credit a higher rate which is not guaranteed. The portion that may be withdrawn or
transferred in a 12 month period is restricted (See 3.08, 3.17 and 3.18).
1.15 Fixed Plus Account Guaranteed If the Fixed Plus Account is an investment option under the Plan (see Contract Schedule I)
Interest Rate: then Aetna will add interest 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 at a higher
rate determined by its Board of Directors.
1.16 Fixed Annuity: An Annuity with payments that do not vary in amount.
1.17 Fund(s): The open-end registered management investment companies whose shares are purchased by the
Separate Account to fund the benefits provided by the Contract. Each Aetna GET Fund series
is a separate Fund.
1.18 Fund Transfers: The movement of invested amounts among the available Fund(s); the Fixed Plus Account (if
available) and the GA Account (if available).
1.19 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).
1.20 Guaranteed Accumulation If offered as an investment option under the Contract (see Contract Schedule I) the
Account (GA Account): Guaranteed Accumulation Account (GA Account) is 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.
7
<PAGE>
1.21 GA Account Guaranteed If the GA Account is an investment option under the Contract (see Contract Schedule I) then
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 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.
1.22 Guaranteed Term: The period of time for which GA Account Guaranteed Interest Rates are guaranteed on Net
Contributions, Fund 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 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 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 Fund Transfers into any or all of the
available Guaranteed Terms.
1.23 Individual Account: This Contract is issued to the Contract Holder. However, Aetna will maintain Individual
Accounts for each Participant to keep a record of Current Value (See 1.12) and
transactions. These may include:
(a) An Employer Account: This Individual Account will be credited with employer Net
Contribution(s) and transferred amounts of 403(b) funds, attributable to employer
contributions; and
(b) An Employee Account: This Individual Account will be credited with employee Net
Contribution(s) and transferred amounts of 403(b) funds, attributable to employee
contributions including after tax contributions.
1.24 Loan Account: For each loan taken by a Participant, the loan amount transferred from the investment
options is credited to the Loan Account.
8
<PAGE>
1.25 Loan Effective Date: The date on which Aetna receives a loan agreement in good order at its home office.
1.26 Loan Interest Rate: The interest rate Aetna charges on a loan. (see Contract Schedule I).
1.27 Market Value Adjustment (MVA): An adjustment to the amount withdrawn or transferred from an 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 3.07. The adjustment is expressed as a percentage of
each dollar being withdrawn.
1.28 Matured Term Value: The amount payable on a GA Account Guaranteed Term's Maturity Date.
1.29 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 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.
1.30 Maturity Date: The last day of a GA Account Guaranteed Term.
1.31 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.
1.32 Net Contribution: A Contribution less any applicable premium taxes.
1.33 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 1.21) greater than three years. The Contract
Holder 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.
1.34 Participant: A person who participates in the Plan named on the cover of this Contract.
1.35 Plan: The Plan named on the cover of this Contract and established under Section 403(b) of the
Code. The Plan is not a part of the Contract and Aetna is not bound by its terms.
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1.36 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 Guaranteed 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.
1.37 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.
1.38 Valuation Date: The date and time on which a Fund annuity unit value and a Fund record unit value are
calculated. Currently, this calculation will be determined at the close of business of the
New York Stock Exchange on any normal business day, Monday through Friday, that the New
York Stock Exchange is open.
1.39 Valuation Period: The period of time commencing at the end of one Valuation Date and ending at the end of the
next Valuation Date.
1.40 Variable Annuity: An Annuity with payments that vary with the net investment results of the Funds available
during the Annuity period.
II. GENERAL PROVISIONS
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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 in writing of any changes.
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2.01 Change of Contract (Cont'd): Aetna may change the tables for determining the amount of Annuity benefit payments
attributable only to Contributions accepted after the effective date of change, 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 days before the
effective date of the change. Aetna may not make Contract changes which adversely affect
the Annuity benefits attributable to Contributions already made to the Contract.
2.02 Change of Fund: The assets of the Separate Account are segregated by Fund. If the shares of any Fund are
no longer available for investment by the Separate Account or if in our judgment, further
investment in such shares should become inappropriate in view of the purpose of the
Contract, Aetna may cease to make such Fund shares available for investment under the
Contract prospectively, or Aetna may substitute shares of another Fund for shares already
acquired. Aetna may also, from time to time, add additional Funds. Any elimination,
substitution or addition of Funds will be done in accordance with applicable state and
federal securities laws. Aetna reserves the right to substitute shares of another Fund for
shares already acquired without a proxy vote.
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's 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: This Contract is designed to fund a plan which provides for retirement income.
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2.06 Control of Contract (Cont'd): The Contract Holder may, by written direction to Aetna, allow Participants to select the
investment options of their Employer and/or Employee Accounts. Choices made under this
Contract must be in writing or in a form satisfactory to Aetna. Until receipt of such
choices in its Home Office, Aetna may rely on any previous choices made. An in-service
transfer pursuant to IRS Revenue Ruling 90-24, may be made only by written direction from
the Contract Holder and Participant to Aetna. Checks for in-service transfers will be made
payable only to the acquiring investment provider.
(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 Internal
Revenue Code of 1986, as it may be amended from time to time.
(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. 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
distribution is in accordance with the terms of the Plan.
(c) Distributions: A Participant may apply for a distribution from his or her Employee
Account or Employer Account. However, the Contract Holder must certify in writing
that the distribution is in accordance with the terms of the Plan.
(d) Participant Rights/Employee Account: 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.
(e) 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 nor keep such records.
2.07 Designation of Beneficiary: The Participant shall designate a Beneficiary. If the Plan is subject to ERISA, the
Contract Holder must certify in writing that the designation is in accordance with the
appropriate REA requirements and 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.
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2.10 Grace Period: This Contract will remain in effect even if Contributions are not continued except as
provided in 3.19.
2.11 Individual Certificates: Aetna shall issue certificates to 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.
III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS
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3.01 Limitation on Contributions: The Contribution(s) made to the Employee and Employer Account in any year, other than
transferred amounts, 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.
3.02 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 (if available); and
(b) The current Deposit Period(s) for Guaranteed Terms under the GA Account (if
available); and
(c) The Fund(s) in which the Separate Account invests.
Aetna must be told the percentage of all Net Contributions to allocate to one or more of
the investment options. Aetna reserves the right to require a minimum Contribution amount
per Individual Account.
Aetna reserves the right not to accept any Contribution.
3.03 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 3.05) for the Valuation Period in which the Contribution is received in
good order.
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3.05 Fund Record Unit Value: A Fund record unit value is computed by multiplying the net return factor (See 3.06) for
the current Valuation Date by the Fund record unit value for the previous Date. 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); divided by
(d) The total value of the Fund record units and Fund annuity units of the Separate
Account at the start of the Valuation Period; minus
(e) A Separate Account charge at an annual effective rate as shown on Contract Schedule
I for Annuity mortality and expense risks, asset based sales charge, if any, 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; minus
(f) A fee for the Aetna GET Fund Guarantee which is deducted daily during the Guaranteed
Period. The fee, which is determined prior to the beginning of each series' Offering
Period, is as shown on Contract Schedule I.
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 Fund Transfer;
(2) A full or partial withdrawal; or
(3) A payment of a premium for Annuity Option 1.
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3.07 Market Value Adjustment (MVA) The amount of the withdrawal will be adjusted to a market value amount as described in (b).
(Cont'd):
(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 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.
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3.07 Market Value Adjustment (MVA) (d) If a lump-sum distribution or Annuity Option is elected six months or more after
(Cont'd): your death, the Beneficiary will receive the Individual Account Current Value, plus
or minus any MVA that would apply to any portion of the Account allocated to GAA. If
a full or partial withdrawal or Fund Transfer is made within six months after your
death, the Beneficiary will receive the Individual Account Current Value, plus any
positive MVA that would apply to any portion of the Account allocated to GAA. The
value of the Account is determined as of the Valuation Date on which proof of death
acceptable to us and a request for payment are received at our Home Office.
(e) After the six month period, the withdrawal or Fund Transfer will be the aggregate
MVA amount (i.e., including all MVAs).
(f) 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 2 or 3.
3.08 Fund Transfer(s) All or any portion of the Adjusted Current Value of the Individual Account (subject to the
limitations described below) may be transferred from any Fund, the Fixed Plus Account (if
available) or the GA Account (if available):
(a) To any Fund; or
(b) To the Fixed Plus Account (if available); or
(c) To any Guaranteed Term of the GA Account (if available) with a different
classification available in the Current Deposit Period.
Fund Transfer requests can be submitted as a percentage or as a dollar amount. Aetna may
establish a minimum Fund 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.
Fund Transfers from Guaranteed Terms of the GA Account are subject to the MVA provisions of
3.07.
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3.08 Fund Transfers (Cont'd): During each rolling twelve (12) month period, up to 20% of the Fixed Plus Account value 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, Fund Transfers or amounts
taken as a loan or used to purchase an Annuity during the twelve (12) month period. Aetna
reserves the right to include amounts paid under ECO, LEO 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 Fund Transfer request is received in good order at
Aetna's Home Office.
The Participant may make an unlimited number of Fund Transfers during the Accumulation
Period.
A Fund Transfer or withdrawal from an Aetna GET Fund series before the Maturity Date will
be based on the GET Fund Record Unit Value for the next Valuation Period following the date
on which Aetna receives a transfer request in good order at its home office.
3.09 Aetna GET Fund Offering Period: Aetna will specify a minimum total asset amount required at the end of an Offering Period
to offer an Aetna GET Fund series. If the minimum is not achieved, Aetna reserves the right
to not start the Guaranteed Period.
If an Aetna GET Fund series is terminated, Aetna will send written notification of the
termination to all Participants who have made Fund Transfers or deposits to that Aetna GET
Fund Series. Notice will be mailed no later than 15 calendar days after the end of the
Offering Period. Participants then have 45 days from the end of the Offering Period to
redirect amounts in the terminated Aetna GET Fund series to one or more investment options
available under the Contract. During this time, Funds are invested in money market
instruments. If no election is made by the end of the 45-day period, at the next Valuation
Period, Aetna will transfer the amount in the terminated Aetna GET Fund series to the
(Aetna Variable Encore Fund).
Aetna reserves the right to specify a maximum total asset amount for an Aetna GET Fund
series. If the maximum is achieved, Aetna also reserves the right to set a date on which it
will stop accepting Fund Transfers or deposits for that Aetna GET Fund series. Aetna will
announce the date on which it will stop accepting Fund Transfers and deposits ten calendar
days prior to that date.
3.10 Aetna GET Fund Guarantee: On the Maturity Date of each Aetna GET Fund series, the GET Fund Record Unit Value for that
series will not be less than the GET Fund Record Unit Value determined at the beginning of
the Guaranteed Period. If necessary, Aetna will transfer funds from its General Account to
the Aetna GET Fund series to offset any shortfall in the GET Fund Record Unit Value. The
Aetna GET Fund Guarantee does not apply to withdrawals or Transfers made before the
Maturity Date.
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3.10 Aetna GET Fund Guarantee If Aetna GET Fund Record Units are adjusted at any time during an Aetna GET Fund Guaranteed
(Cont'd): Period, the Aetna GET Fund Guarantee will be restated. The restated Aetna GET Fund
Guarantee will be calculated so that it is equivalent to the original Aetna GET Fund
Guarantee for that series.
3.11 Aetna GET Fund Maturity Date: Prior to the Maturity Date for each Aetna GET Fund series, Aetna sends a written notice of
the date to all participants who have Current Value in that series. Participants must then
inform Aetna of the investment option(s) to which to transfer that Current Value. If a
Participant does not make an election, on the Maturity Date Aetna will transfer the Current
Value to the then available Aetna GET Fund series' Offering Period. If no Offering Period
is available, Aetna will transfer 50% of the amount to the (Aetna Variable Fund) and 50% to
the (Aetna Income Shares).
3.12 Loans: If loans are included as an option under the Contract, (see Contract Schedule I) then the
following will apply.
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 employers 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.
For plans subject to ERISA, the minimum loan amount is $1,000. For plans not subject
to ERISA, the minimum loan amount is defined in the loan agreement. 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.
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3.12 Loans (Cont'd): (b) Loan Interest Rate: For 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 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 (see
Contract Schedule I).
(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.
(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) Amount available for partial surrender while a loan is outstanding: While a loan is
outstanding, the amount available for partial surrender is equal to the vested
Individual Account Current Value, including the Loan Account, minus 125% of the
outstanding loan balance.
(f) Full surrenders while a loan is outstanding: If the Participant requests a full
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, then that amount, minus the
Loan Account balance, is deducted from the vested Individual Account Current
Value and the loan is canceled.
3.12 Loans (Cont'd): (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, then the surrender
amount cannot exceed the vested Individual Account Current Value, including
the Loan Account, reduced by 125% of the outstanding loan balance.
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(g) 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 (f).
(h) 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.
(i) Loan payment default: If Aetna does not receive a loan payment when due, the
defaulted payment is treated as follows:
(1) If the amount of the vested Individual Account Current Value available for
distribution is sufficient to repay (a) the amount of the defaulted payment,
plus (b) any applicable Fixed Plus Account default charge, then that amount is
deducted from the vested Individual Account Current Value.
(2) If the amount of the vested Individual Account Current Value available for
distribution is not sufficient to repay (a) the amount of the defaulted
payment, plus (b) any applicable Fixed Plus Account default charge, until such
time that the amount due can be distributed, the Loan Account continues to
earn interest, and interest is charged on the defaulted payment. At that time,
the amount due is surrendered from the vested Individual Account Current
Value.
3.13 Notice to the Participant: Each year, Aetna will notify the Participant of:
(a) The value of any amounts held in:
(i) The Fixed Plus Account (if available),
(ii) The GA Account (if available),
(iii) The Fund(s) for the Separate Account;
3.13 Notice to the Participant (b) The number of any fund(s) record units;
(Cont'd): (c) The fund(s) record unit value(s);
(d) The amount available for withdrawal; and
(e) The Loan Account value.
This information will be as of a date no more than sixty (60) days before the date of the
notice.
3.14 Withdrawal Restrictions: Limitations apply to withdrawals of any Restricted Amount from this Contract, as required
by Code Section 403(b)(11). The Restricted Amount is the sum of:
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(a) Net Contributions attributable to Participant salary reduction contributions made on
and after January 1, 1989 if any; plus
(b) The net increase, if any, in the Current Value of the Employee Account after
December 31, 1988 attributable to investment gains and losses and credited interest.
The Restricted Amount may be fully or partially surrendered 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);
(e) The withdrawal is otherwise allowed by federal law, regulations or rulings.
or
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 Participant salary reduction
contributions made on and 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.
Also, for all withdrawals, the Contract Holder must certify in writing that they are being
made in accordance with the Plan.
3.14 Withdrawal Restrictions If, pursuant to IRS Revenue Ruling 90-24, Aetna agrees to accept under this Contract
(Cont'd): 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 Manner and Timing of (a) As directed by the Contract Holder, a distribution to a Participant or Beneficiary
Distributions: 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. The Participant or Beneficiary
may elect the form of distribution subject to certification in writing by the
Contract Holder that the Participant or Beneficiary is eligible both as to the
timing and form of distribution. All distributions must satisfy the minimum
distribution rules set forth in Code Section 401(a)(9).
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(b) The distribution of benefits from the Employee and Employer Accounts must generally
begin no later than April 1 of the calendar year following the calendar year in
which the Participant attains age 70 1/2 or in the case of a governmental or church
plan the calendar year in which the Participant attains age 70 1/2 or retires,
whichever occurs later. 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 entire value of the Individual Account must be distributed, or distribution must
be made over the life of the Participant, the joint lives of the Participant and
Beneficiary or over a period that does not extend beyond the life expectancy of the
Participant or the joint life expectancies of the Participant and Beneficiary.
(c) If the Participant does not request commencement of benefits from the Employee and
Employer Accounts 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.
If Aetna maintains separate records of the value as of December 31, 1986, this value is not
required to be taken before the year the Participant attains the age 75. Aetna will
maintain separate records provided the Participant does not take any distribution other
than the minimum distribution required under Code Section 401(a)(9.)
3.16 Withdrawal: (a) The Participant may withdraw any portion or all of an Individual Account Adjusted
Current Value and transfer such amount to another investment provider under the
Plan. The withdrawal and transfer request must be submitted in writing to Aetna.
3.16 Withdrawal (Cont'd): (b) Except as described in Section 3.17, 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 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.
(d) Any amount withdrawn from the Fixed Plus Account will be subject to the limitations
in 3.17, 3.18 and 3.19.
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3.17 Partial Withdrawal from the The amount eligible for partial withdrawal is 20% of the Current Value of the amount held
Fixed Plus Account: in the Fixed Plus Account on the day Aetna's Home Office receives a written request,
reduced by any previous Fund Transfer, partial withdrawal or amounts taken as a loan or used
to purchase Annuity benefits during the prior 12 months. Aetna reserves the right to include
amounts paid under ECO, LEO and SWO for purposes of applying this 20% limit. However, SWO
and LEO are unavailable if a Fixed Plus Account Transfer or withdrawal is requested within
the current 12 month period.
The 20% limit applicable to partial withdrawals from the Fixed Plus Account will be waived
under certain conditions and will apply when the partial withdrawal is made on a pro rata
basis from all options used under the Participant's Individual Account. (See Contract
Schedule I).
3.18 Payment of Fixed Plus Account When Aetna receives a full withdrawal request, no additional partial withdrawals or Fund
Full Withdrawal: Transfers from the Fixed Plus Account are permitted during the payout period. If a full
withdrawal is requested, Aetna will pay any Current Value 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 12 months;
(b) One-fourth of the remaining Current Value 12 months later;
(c) One-third of the remaining Current Value 12 months later;
(d) One-half of the remaining Current Value 12 months later; and
(e) The balance of the Current Value 12 months later.
The Fixed Plus Account full withdrawal payment provision will be waived when a withdrawal
is:
(a) Due to the Participant's death before Annuity benefit payments begin;
(b) Used to purchase Annuity benefits;
23
<PAGE>
3.18 Payment of Fixed Plus Account (c) When the amount in the Fixed Plus Account is $3,500 or less and no amount has been
Full Withdrawal (Cont'd): withdrawn, transferred, taken as a loan or used to purchase Annuity benefits during
the previous 12 months;
(d) Due to hardship when the following conditions are met:
(1) the withdrawal is due to an employer certified hardship;
(2) the amount withdrawn is paid directly to the Participant; and
(3) the amount paid for all partial and full withdrawals due to hardship during
the previous 12-month period does not exceed 10% of the average Current Value
for all Individual Accounts during the same period of time; or
(e) Due to separation from service provided that:
(1) the withdrawal is due to the Participant's separation from service with the
employer;
(2) the employer certifies that the Participant has separated from service;
(3) the amount withdrawn is paid directly to the Participant; and
(4) the amount paid for all partial and full withdrawals due to separation from
service during the previous 12-month period does not exceed 20% of the average
Current Value of all Individual Accounts during that same period of time.
Any full withdrawal from the Fixed Plus Account may be cancelled at any time before the end
of the payment period.
3.19 Payment of Minimum Current If the Individual Accounts Current Value is less than $3,500, and no Contributions have
Value: been received for three (3) years, Aetna may close the Account and pay the Current Value as
directed by the Contract Holder in one lump sum.
3.20 Amount Payable at Death Aetna will pay any portion of the Individual Account(s) Current Value, to the Beneficiary
(Before Annuity Payments when:
Start):
(a) The Participant dies before Annuity payments start; and
(b) The certified copy of the death certificate is received by Aetna; and
(c) A completed and signed election form is submitted to the Home Office. The form must
include Contract Holder certification that the Beneficiary is eligible for a
distribution under the terms of the Plan.
A guaranteed death benefit is available if the Beneficiary requests either a lump-sum
payment or an Annuity option within six months of the Participant's death.
For each Individual Account, the death benefit is guaranteed to be the greater of:
3.20 Amount Payable at Death (a) The Current Value of the Individual Account plus aggregate positive MVA, as
(Before Annuity Payments applicable, on the date the notice of death and the request for payment are received
Start) (Cont'd): in good order at Aetna's Home Office; or
24
<PAGE>
(b) The total of Net Contribution(s) made to the Individual Account minus the total of
all partial withdrawals, annuitizations made from the Individual Account and any
amount allocated from the Individual Account to the Loan Account.
If the Participant dies before distributions begin in accordance with the provisions of
Code Section 401(a)(9), the entire value of the Account must be distributed by December 31
of the calendar year containing the fifth anniversary of the date of the Participant's
death. Alternatively, if the Participant has a designated Beneficiary, payments may be made
over the life of the Beneficiary or over a period not extending beyond the life expectancy
of the Beneficiary provided distribution to a non-spouse Beneficiary begins by December 31
of the calendar year following the calendar year of the Participant's death. For a spousal
Beneficiary, such payments must begin by the later of December 31 of the calendar year of
the Participant's death or December 31 of the calendar year in which the Participant would
have attained age 70 1/2.
If the Participant dies after distributions begin in accordance with the provisions of Code
Section 401(a)(9), payments to the Beneficiary must be made at least as rapidly as the
method of distribution in effect at the time of the Participant's death. If the minimum
distribution requirements have been met by partial withdrawals based on the participant's
life expectancy or the joint life expectancies of the Participant and Beneficiary, death
benefit payments to the Beneficiary must also satisfy any additional requirements of Code
Section 401(a)(9).
Amounts in the GA Account will be payable as described in Section 3.07(d).
3.21 Reinstatement: All or a portion of the proceeds of a full withdrawal of an Individual Account may be
reinvested within 30 days after the surrender if allowed by law. 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, GA Account, and the Fund(s) in the
same proportion as they were at the time of withdrawal. Any amount reinstated to the GA
Account will be credited to the current Deposit Period. The number of record units
reinstated will be based on the record unit value(s) next computed after receipt at Aetna's
Home Office of the reinstatement request and the amount to be reinvested.
3.21 Reinstatement (Cont'd): Amounts attributable to an Aetna GET Fund series will be reinstated to the current Offering
Period of the Aetna GET Fund series. If no Aetna GET Fund series Offering Period is
available, amounts withdrawn from the Aetna GET Fund series will be allocated, pro rata,
among all other investment options in which the Individual Account is invested.
Any Individual Account(s) closed because the Current Value was less than $3,500 may not be
reinstated (see 3.19).
25
<PAGE>
A Reinstatement is permitted only once per Individual Account.
IV. NON-ANNUITY DISTRIBUTION OPTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
4.01 Distribution Options: Distribution Options: ECO, LEO and SWO are distribution options under which a portion of
the Individual Account Current Value will automatically be surrendered and distributed each
calendar year. The distributed amount is withdrawn pro rata from each investment option
under the Individual Account. The Contract Holder must certify in writing that
distributions are being made in accordance with the Plan.
Market Value Adjustment: A Market Value Adjustment will not be applied to any portion of
the Current Value which is paid under ECO.
Minimum Current Value: At its discretion, Aetna may require a minimum initial Current Value
for election of a distribution option. If after election of the option the Current Value is
insufficient to make a scheduled payment, Aetna will distribute the entire Individual
Account balance.
Reservations of Rights: Aetna reserves the right to change the terms of ECO, LEO or SWO for
future elections, to discontinue the availability of these options after proper
notification, or to make other distribution options available as allowed by the state in
which this Contract is delivered. Aetna also reserves the right to allow ECO and LEO
payments to be made more frequently than annually.
Election and Revocation: The Participant or Beneficiary may elect a distribution option by
submitting a completed and signed election form to Aetna's Home Office. However, the
Contract Holder must certify in writing that the distribution option is in accordance with
the terms of the Plan. If the Individual Account is subject to ERISA, the Contract Holder
must certify in writing that the waiver and spousal consent requirements of ERISA Code
Section 205 have been satisfied.
Once elected, the Participant or Beneficiary may revoke the option by submitting a written
request to Aetna's Home Office. Any revocation will apply only to amounts not yet paid.
4.01 Distribution Options (Cont'd): Availability of ECO, LEO and SWO: The Participant may elect any one of the following three
distribution options, if they are available as an option under the Contract (see Contract
Schedule I) and if the Contract Holder certifies that the election is in accordance with
the terms of the Plan. The Beneficiary may elect either ECO or SWO, if they are available
as an option under the Contract (see Contract Schedule I) and if the Contract Holder
certifies that the election is in accordance with the terms of the Plan.
26
<PAGE>
An individual who has revoked ECO, LEO or SWO may not subsequently elect that option again,
nor may the individual elect another withdrawal option unless permitted under the Code
minimum distribution rules.
LEO and SWO are not available if there is an outstanding loan under the Individual Account,
or if a Fixed Plus Account transfer or surrender has occurred within the prior 12 month
period. Payments will cease if a loan is granted while LEO or SWO is in effect.
If LEO is in effect and the Participant dies, or if ECO or SWO is in effect and the
Participant dies before the required beginning date for minimum distributions, payments
will cease. A Beneficiary may elect ECO or SWO provided the election satisfies the Code
minimum distribution rules.
If ECO or SWO is in effect and the Participant dies after the required beginning date for
minimum distributions, payments will continue as permitted under the Code minimum
distribution rules, unless revoked.
4.02 Estate Conservation Option Amount of Distribution: Each year that ECO is in effect, Aetna will calculate and
(ECO): distribute an amount equal to the minimum required distribution 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 year for which payment is to be made by a life
expectancy factor based on expected return multiples in Table V and VI of Section 1.72-9 of
the Income Tax Regulations.
If Aetna maintains separate records of the values as of December 31, 1986, payments made
during or after the year in which the Participant attains age 70 1/2 and before the year
the Participant attains age 75, will only be calculated on amounts contributed after
December 31, 1986, plus all earnings on all amounts 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 Participant may elect either the single or joint life expectancy factor. If the joint
life expectancy factor is elected, the second life must be the Beneficiary under the Plan.
If the Beneficiary selects ECO after the Participant's death, only a single life expectancy
factor may be used. The life expectancy or joint life expectancy factor will be
recalculated each year in accordance with the rules under Code Section 401(a)(9).
4.02 Estate Conservation Option Date of Distribution: The Participant shall specify the initial distribution date. The
(ECO) earliest date is the first day of the calendar year in which the Participant attains age
(Cont'd): 70 1/2 or, for plans of government or church employers, the date the Participant retires,
whichever is later. If a Beneficiary elects ECO, the earliest date is the date of the
Participant's death. Subsequent distribution will be made annually on such date as Aetna
may designate or allow.
27
<PAGE>
4.03 Life Expectancy Option (LEO): Amount of Distribution: Each year that LEO is in effect, Aetna will calculate and
distribute an amount determined by dividing the Individual Account Current Value as of
December 31 of the year prior to the year for which payment is to be made by a life
expectancy factor based on expected return multiples in Table V and VI of Section 1.72-9 of
the Income Tax Regulations. Payments will be made each year until the year the Participant
attains age 70 1/2, or until the Participant dies, if earlier.
The Participant may elect either the single or joint life expectancy factor. If the joint
life expectancy factor is elected, the second life must be the Beneficiary under the Plan.
The life expectancy or joint life expectancy factor will be recalculated each year in
accordance with the rules under Code Section 401(a)(9), or reduced by one for each calendar
year which has elapsed since the life expectancy was first calculated, as elected by the
Participant.
Date of Distribution: The Participant shall specify the initial distribution date. The
earliest date is the date on which the Participant separates from service with the
employer. Subsequent distribution will be made annually on such date as Aetna may designate
or allow.
4.04 Systematic Withdrawal Option Amount of Distribution: The Participant may elect one of the three payment methods
(SWO): described below.
(1) Specified Payment: Payments of a designated dollar amount. The annual amount may not
be greater than the percentage of the Current Value at time of election as shown in
Contract Schedule I. This annual dollar amount will remain constant, unless a higher
amount is required under Code minimum distribution rules. At its discretion, Aetna
may require a minimum initial payment amount; or
(2) Specified Period: Payments which are made over a period of time which must be at
least the minimum number of years shown in Contract Schedule I. The annual amount
paid each year is calculated by dividing the Current Value as of December 31 of the
prior year by the number of payment years remaining; or
4.04 Systematic Withdrawal Option (3) Specified Percentage: Payment of a designated percentage which cannot be greater
(SWO) (Cont'd): than the percentage of the Current Value at the time of election as shown in
Contract Schedule I. The percentage may be changed by written request. Aetna
reserves the right to limit the number of times the percentage may be changed. The
annual amount is calculated by multiplying the Current Value as of December 31 of
the year prior to the payment by the designated percentage. Payments will be made
each year until the year the Participant attains age 70 1/2.
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<PAGE>
Minimum Distribution Requirements: If distributions are made under SWO after payments are
required to begin under the minimum distribution requirements of Code Section 401(a)(9),
the amount distributed in any year will be increased if required under the Code minimum
distribution rules.
For this purpose, the minimum required distribution will be determined each year by
dividing the Individual Account Current Value as of December 31 of the year prior to the
year for which payment is to be made by a life expectancy factor, which for the initial
distribution year shall be based on either the single life expectancy factor or joint life
expectancy factor in Table V or VI of Section 1.72.9 of the Income Tax Regulations, as
elected by the Participant. If the joint life expectancy factor is elected, the second life
must be the Beneficiary under the Plan. If a Beneficiary elects SWO after the Participant's
death, only a single life expectancy factor may be used. Minimum distributions for any
subsequent year will be calculated based on such life expectancy factor reduced by one for
each calendar year which has elapsed since the life expectancy was first calculated. If the
specified period method is elected, the maximum specified period will be limited by the
single life expectancy factor or joint life expectancy factor in Table V or VI of Section
1.72-9 of the Income Tax Regulations, as elected by the Participant. If elected by a
Beneficiary, only a single life expectancy may be used.
Date of Distribution: The Participant shall specify the initial distribution date. The
earliest date is the date on which the Participant attains age 59 1/2 or age 55, if
separated from service with the employer at or after age 55. If a Beneficiary elects SWO,
the earliest date is the date of the Participant's death.
SWO payments will be made on a monthly, quarterly, semi-annual or annual basis, as elected
by the Participant or Beneficiary. If SWO payments are made more frequently than annually,
the designated annual amount is divided by the number of payments due each calendar year.
Subsequent distribution will be made periodically on such date as Aetna may designate or
allow.
V. ANNUITY PROVISIONS
- -----------------------------------------------------------------------------------------------------------------------------------
5.01 General Provisions: (a) Upon certification by the Contract Holder of the Participants' total disability,
acceptance of retirement or separation from service, the Participant has the right
to elect an Annuity option. The Participant must transfer any portion of the Current
Value held in an Aetna GET Fund series to another investment option before an
Annuity option is elected.
29
<PAGE>
(b) 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 1, 2, or 3 (See
5.02).
(c) A completed and signed election form must be submitted to the Home Office. The form
must include Contract Holder certification that the Participant is eligible for a
distribution under the terms of the Plan and that the Annuity option chosen is
permitted under the terms of the Plan.
(d) 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 3 is
chosen and the second Annuitant is the spouse of the Participant.
(e) Once elected, an Annuity option may not be revoked, except for Option 1 when elected
on a variable basis.
5.02 Annuity Options: Option 1 - 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.
Option 2 - Life Income based on the life of the Annuitant. Payments will be made until the
death of the Annuitant. When this option is chosen, a choice of the following must be made:
(a) Payments cease at the death of the Annuitant;
(b) Payments may be guaranteed for 5-30 years; or
(c) Payments may be guaranteed for the amount applied to the Annuity option. If the
Annuitant dies prior to the payment of the amount applied to the Annuity option
(less any premium tax), any remaining balance will be paid in one sum to the
Beneficiary. This option is only available on a fixed basis.
5.02 Annuity Options (Cont'd): Option 3 - 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) 100% of the payment to continue after the first death with a guarantee of 5-30
years;
(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; or
30
<PAGE>
(f) 100% of the payment to continue after the first death. Payments are guaranteed for
the amount applied to the Annuity option. If both Annuitants die prior to the total
payment of the amount applied to the Annuity option (less any premium tax), any
remaining balance will be paid in one sum to the Beneficiary. This option is only
available on a fixed basis.
If a fixed Annuity option is chosen under Option 1, Option 2 (a) or (b) or Option 3 (a) or
(d), then the Participant may elect a payment increase of 1, 2 or 3%, compounded annually.
An election of such a payment increase will result in a adjustment of the policy guarantees
by an actuarially equivalent payment factor.
Other Options - Aetna may make other options available as allowed by the laws of the state
in which this Contract is delivered.
5.03 Payments: (a) Upon written direction from the Contract Holder, 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.
(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 in the case of a
governmental or church plan, the year in which the Participant attains age 70 1/2 or
retires, whichever occurs later. 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 April 1 of the calendar year following the calendar year in which the
Participant retires.
5.03 Payments (Cont'd): (c) Payments will be made on a monthly basis unless the Participant requests otherwise.
If payments are made on a quarterly, semi-annual or annual basis, Aetna will
calculate an actuarially equivalent payment factor.
(d) No choice of any Annuity option may be made if the first payment would be less than
$50 per month or if the total payments in a year would be less than $250.
(e) For purposes of calculating the guaranteed first payment of a variable Annuity or
the payments for a fixed Annuity, the Annuitants and second Annuitants adjusted age
will be used.
31
<PAGE>
The Annuitants and second Annuitants 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 Annuitants and second Annuitants 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 Annuitants and second Annuitants age
will be reduced by one additional year for Annuity commencement dates occurring in
each succeeding decade.
(f) If a Fixed Annuity under Option 1, 2 or 3 is elected, Aetna will use the applicable
current settlement option rates if these will provide higher fixed Annuity payments.
5.04 Investment Option: (a) 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). The 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) (at the annual
rate shown on Contract Schedule II) and a daily administrative charge if future variable
Annuity payments are to remain level.
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 (minus any 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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<PAGE>
5.05 Fund Annuity Units (Cont'd): 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 Date 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 Date prior to the due date of the payment is
used.
5.06 Fund Annuity Unit Value: For any Valuation Date, a Fund(s) Annuity unit value is equal to:
(a) The value for the previous Valuation Date; 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 values 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 The Annuity net return factor(s) are used to compute all Separate Account Annuity payments
Factor: for any Fund.
The Annuity net return factor(s) for each Fund is equal to 1.0000000 plus the net return
rate.
The net return rate is equal to:
(a) The value of the shares of the Fund held by the Separate Account at the end of a
Valuation Period, minus
(b) The value of the shares of the Fund held by the Separate Account at the start of the
Valuation Period, plus or minus
(c) Taxes (or reserves for taxes) on the Separate Account (if any); divided by
(d) The total value of the Fund(s) record units and Fund(s) Annuity units of the
Separate
Account at the start of the Valuation Period; minus
(e) A daily charge for Annuity mortality and expense risks, which may include a profit,
(at the annual rate as shown on Contract Schedule II) and a daily administrative
charge.
5.07 Fund Annuity Net Return A net return rate may be more or less than 0%. The value of a share of the Fund is equal to
Factor the net assets of the Fund divided by the number of shares outstanding.
(Cont'd):
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<PAGE>
5.08 Fund Transfers During the At the request of the Contract Holder or the Participant if the Contract Holder has
Annuity Period: directed Aetna to accept such a request from the Participant, all or any portion of the
Current Value may be transferred from any variable Fund to any other allowable Fund. Aetna
reserves the right to allow no more than four Funds to be selected at any one time. Fund
Transfers will be processed as of the Valuation Date next following when a transfer request
is received in good order at Aetna's Home Office. The maximum number of allowable transfers
(during the Annuity period) in a calendar year is shown on Contract Schedule II.
Fund Transfer requests must be expressed as a percentage of each Funds allocation to the
Annuity payment. Aetna may establish a minimum transfer amount.
5.09 Death Benefit: Upon the death of the Annuitant(s), any remaining guaranteed payments will continue to the
Beneficiary unless the Beneficiary elects to receive the present value of any remaining
guaranteed payments in a lump sum. Such payments will be paid at least as rapidly as under
the method of distribution then in effect. If the Beneficiary dies while receiving
payments, the present value of any remaining guaranteed payments will be paid in one sum to
the Beneficiary's estate.
The interest rate used to determine the first Annuity payment will be used to calculate the
present value. The present value will be determined as of the Valuation Period in which
proof of death acceptable to Aetna and a request for payment is received at Aetna's Home
Office.
</TABLE>
34
<PAGE>
OPTION 1
Payments for a Stated Period of Time
Amount of 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>
- ---------------------------------------------------------------------------------------------------
Monthly Monthly
Years Payment Years Payment
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
5 17.91 18 5.96
6 15.14 19 5.73
7 13.16 20 5.51
8 11.68 21 5.32
9 10.53 22 5.15
10 9.61 23 4.99
11 8.86 24 4.84
12 8.24 25 4.71
13 7.71 26 4.59
14 7.26 27 4.47
15 6.87 28 4.37
16 6.53 29 4.27
17 6.23 30 4.18
- ---------------------------------------------------------------------------------------------------
</TABLE>
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Monthly Monthly
Years Payment Years Payment
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
5 18.12 18 6.20
6 15.35 19 5.97
7 13.38 20 5.75
8 11.90 21 5.56
9 10.75 22 5.39
10 9.83 23 5.24
11 9.09 24 5.09
12 8.46 25 4.96
13 7.94 26 4.84
14 7.49 27 4.73
15 7.10 28 4.63
16 6.76 29 4.53
17 6.47 30 4.45
- ---------------------------------------------------------------------------------------------------
</TABLE>
35
<PAGE>
OPTION 1
Payments for a Stated Period of Time
Amount of 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>
- ---------------------------------------------------------------------------------------------------
Monthly Monthly
Years Payment Years Payment
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
5 18.74 18 6.94
6 15.99 19 6.71
7 14.02 20 6.51
8 12.56 21 6.33
9 11.42 22 6.17
10 10.51 23 6.02
11 9.77 24 5.88
12 9.16 25 5.76
13 8.64 26 5.65
14 8.20 27 5.54
15 7.82 28 5.45
16 7.49 29 5.36
17 7.20 30 5.28
- ---------------------------------------------------------------------------------------------------
</TABLE>
36
<PAGE>
OPTION 2
Life Income
Amount of 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 Years
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Adjusted Cash
Age of Annuitant None 5 10 15 20 Refund
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
50 $ 4.05 $ 4.05 $ 4.03 $ 3.99 $ 3.93 $ 3.89
51 4.12 4.11 4.09 4.05 3.99 3.94
52 4.19 4.19 4.16 4.11 4.04 4.00
53 4.27 4.26 4.23 4.18 4.10 4.06
54 4.35 4.34 4.31 4.25 4.16 4.12
55 4.44 4.42 4.39 4.32 4.22 4.19
56 4.53 4.51 4.47 4.40 4.29 4.26
57 4.62 4.61 4.56 4.48 4.35 4.33
58 4.72 4.71 4.65 4.56 4.42 4.41
59 4.83 4.81 4.75 4.64 4.49 4.49
60 4.95 4.93 4.86 4.73 4.55 4.57
61 5.07 5.05 4.97 4.83 4.62 4.66
62 5.20 5.17 5.08 4.92 4.69 4.76
63 5.34 5.31 5.20 5.02 4.76 4.85
64 5.49 5.45 5.33 5.12 4.83 4.96
65 5.65 5.61 5.47 5.22 4.89 5.06
66 5.82 5.77 5.61 5.33 4.96 5.18
67 6.01 5.94 5.75 5.44 5.02 5.30
68 6.20 6.13 5.91 5.54 5.08 5.42
69 6.41 6.33 6.07 5.65 5.14 5.56
70 6.64 6.54 6.23 5.76 5.19 5.70
71 6.88 6.76 6.41 5.86 5.24 5.84
72 7.14 7.00 6.59 5.97 5.28 6.00
73 7.43 7.26 6.77 6.06 5.32 6.16
74 7.73 7.53 6.96 6.16 5.35 6.33
75 8.06 7.82 7.14 6.25 5.38 6.51
- -----------------------------------------------------------------------------------------------------------------
</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.
37
<PAGE>
OPTION 2
Life Income
Amount of 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 Years
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Adjusted
Age of Annuitant None 5 10 15 20
- -------------------------------------------------------------------------------------------------
<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
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.
38
<PAGE>
OPTION 2
Life Income
Amount of 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 Years
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Adjusted
Age of Annuitant None 5 10 15 20
- -------------------------------------------------------------------------------------------------
<S> <C> <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 5.93 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
- -------------------------------------------------------------------------------------------------
</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.
39
<PAGE>
OPTION 3
Life Income for Two Annuitants
Amount of 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>
- -----------------------------------------------------------------------------------------------------------------------------------
Adjusted Ages Option 3d
- ----------------------------------
Second 10 Years
Annuitant Annuitant Option 3a Option 3b Option 3c Guaranteed Option 3e Option 3f
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
55 50 $ 3.69 $ 4.05 $ 4.27 $ 3.69 $ 4.03 $ 3.69
55 55 3.88 4.25 4.47 3.87 4.14 3.87
55 60 3.99 4.44 4.71 3.98 4.20 3.98
60 55 3.99 4.44 4.71 3.98 4.42 3.98
60 60 4.24 4.71 4.99 4.23 4.57 4.23
60 65 4.38 4.97 5.32 4.38 4.65 4.38
65 60 4.38 4.97 5.32 4.38 4.93 4.38
65 65 4.72 5.33 5.70 4.71 5.14 4.72
65 70 4.93 5.68 6.15 4.91 5.27 4.91
70 65 4.93 5.68 6.15 4.91 5.66 4.91
70 70 5.40 6.21 6.70 5.36 5.96 5.38
70 75 5.69 6.68 7.32 5.62 6.13 5.66
75 70 5.69 6.68 7.32 5.62 6.67 5.66
75 75 6.37 7.45 8.15 6.23 7.12 6.33
75 80 6.78 8.11 8.99 6.54 7.36 6.71
- -----------------------------------------------------------------------------------------------------------------------------------
</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.
40
<PAGE>
OPTION 3
Life Income for Two Annuitants
Amount of 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 Option 3d
- ----------------------------------
Second 10 Years
Annuitant Annuitant Option 3a Option 3b Option 3c Guaranteed Option 3e
- ---------------------------------------------------------------------------------------------------------------------
<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 not differ by sex.
Rates for ages not shown will be provided on request and will be computed
on a basis consistent with the rates in the above tables.
41
<PAGE>
OPTION 3
Life Income for Two Annuitants
Amount of 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 Option 3d
- ----------------------------------
Second 10 Years
Annuitant Annuitant Option 3a Option 3b Option 3c Guaranteed Option 3e
- ------------------------------------------------------------------------------------------------------------------
<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 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.
42
<PAGE>
- -------------------------------------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
Hartford, Connecticut 06156
(800) 525-4225
Certificate of Group Annuity Coverage
- -------------------------------------------------------------------------------
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP ANNUITY 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.
-------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
Hartford, Connecticut 06156
(800) 525-4225
You may call the toll-free number shown above to
get answers to your questions or help to resolve a
complaint.
Aetna Life Insurance and Annuity Company, herein
called Aetna, agrees to pay the benefits stated in
this Contract.
- --------------------------------------------------------------------------------
Certificate of Group To the Certificate Holder:
Annuity Coverage
Aetna certifies that coverage is in force for you
under the stated Group Annuity Contract and
Certificate numbers. All data shown here is taken
from Aetna records and is based upon information
furnished by you.
This Certificate is a summary of the Group Annuity
Contract provisions. It replaces any and all prior
certificates, riders, or amendments issued to you
under the stated Contract and Certificate numbers.
This Certificate is for information only and is
not a part of the Contract.
THE VARIABLE FEATURES OF THE GROUP CONTRACT ARE
DESCRIBED IN PARTS III AND V.
- --------------------------------------------------------------------------------
Right to Cancel You 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.
/s/ Dan Kearney /s/ Susan E. Schechter
President Secretary
- --------------------------------------------------------------------------------
Contract Holder Group Annuity Contract No.
Specimen Specimen
- --------------------------------------------------------------------------------
Your Name Certificate No.
Specimen Specimen
- --------------------------------------------------------------------------------
Type of Plan
Retirement Plan for Higher Education
- --------------------------------------------------------------------------------
The underlying group combination annuity contract is delivered in Anystate
and is subject to the laws of that jurisdiction.
GTCC-96(ORP)
<PAGE>
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP ANNUITY 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.
2
<PAGE>
Specifications
- --------------------------------------------------------------------------------
Guaranteed There is a guaranteed interest rate for Contribution(s)
Interest Rate held in the Fixed Plus Account and the GA Account. (See
Contract Schedule I.)
- --------------------------------------------------------------------------------
Deductions from There will be deductions for mortality and expense risks.
the Separate There also may be deductions for administrative charges
Account and asset based sales charges. (See 3.05 and 5.06.)
- --------------------------------------------------------------------------------
Deduction from Contribution(s) are subject to a deduction for premium
Contribution(s) taxes, if any. (See 3.01.)
3
<PAGE>
Contract Schedule I
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 daily charge is at an
annual effective rate of [1.25%] for Annuity
mortality and expense risks, [0.15%] for
asset based sales charge and a daily
administrative charge which will not exceed
[0.25%] on an annual basis.
The daily charge for the Aetna GET Fund
Guarantee will be at an annual rate of
[0.25%.]
Fixed Plus Account [Is Available]
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest [3%] (effective annual rate of return).
Rate:
Partial Withdrawal: The [20%] limit applicable to partial
withdrawal from the Fixed Plus Account will
be waived when the withdrawal is:
(a) due to the Participant's death, (and made
within [six (6)] months of the
Participant's date of death), before
Annuity payments begin. This partial
withdrawal may only be exercised once; or
(b) used to purchase Annuity benefits.
Guaranteed Accumulation Account (GA Account) [Is Available]
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest [3%] (effective annual rate of return).
Rate:
i
<PAGE>
Contract Schedule I
Accumulation Period (Cont'd)
Separate Account, Fixed Plus Account and GA Account
- --------------------------------------------------------------------------------
Loans: [Are Available]
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.
Systematic Withdrawal Option
(SWO): [Is Available]
The Specified Payment 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
[five years.]
The Specified Percentage may not be
greater than [20%.]
Estate Conservation Option [Is Available]
(ECO):
Life Expectancy Option (LEO): [Is Available]
See Section 1. - DEFINITIONS for explanations.
ii
<PAGE>
Contract Schedule II
Annuity Period
Separate Account
- --------------------------------------------------------------------------------
Fund Transfers: Maximum number of allowable transfers in the
Annuity Period is [4.]
Charges to Separate Account: A daily charge at an annual effective rate of
[1.25%] for Annuity mortality and expense
risks. The administrative charge is
established upon election of an Annuity
option. This charge will not exceed [0.25%.]
Variable Annuity Assumed If a Variable Annuity is chosen, an assumed
Annual Net Return Rate: annual net return rate of [5.0%] may be
elected. If [5.0%] is not elected, Aetna will
use an assumed annual net return rate of
[3.5%.]
The assumed annual net return rate factor for
[3.5%] per year is [0.9999058.]
The assumed annual net return rate factor for
[5.0%] per year is [0.9998663.]
If the portion of a Variable Annuity payment
for any Fund is not to decrease, the Annuity
return factor under the Separate Account for
that Fund must be:
(a) [4.75%] on an annual basis plus an annual
return of up to [0.25%] to offset the
administrative charge set at the time
Annuity payments commence if an assumed
annual net return rate of [3.5%] is
chosen; or
(b) [6.25%] on an annual basis plus 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: Under the option "Payments for a Stated
Period of Time":
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.
Fixed Annuity
- --------------------------------------------------------------------------------
Minimum Guaranteed Interest [3%] (effective annual rate of return).
Rate:
See Section 1. - DEFINITIONS for explanations.
iii
<PAGE>
TABLE OF CONTENTS
I. DEFINITIONS
- --------------------------------------------------------------------------------
Page
1.01 Accumulation Period................................................. 6
1.02 Adjusted Current Value.............................................. 6
1.03 Aetna GET Fund Offering Period...................................... 6
1.04 Aetna GET Fund Guaranteed Period.................................... 6
1.05 Aetna GET Fund Maturity Date........................................ 6
1.06 Annuitant........................................................... 6
1.07 Annuity............................................................. 6
1.08 Beneficiary......................................................... 6
1.09 Code................................................................ 7
1.10 Contract Holder..................................................... 7
1.11 Contribution........................................................ 7
1.12 Current Value....................................................... 7
1.13 Deposit Period...................................................... 7
1.14 Fixed Plus Account.................................................. 7
1.15 Fixed Plus Account Guaranteed Interest Rate......................... 7
1.16 Fixed Annuity....................................................... 7
1.17 Fund(s)............................................................. 7
1.18 Fund Transfer(s).................................................... 7
1.19 General Account..................................................... 8
1.20 Guaranteed Accumulation Account (GA Account)........................ 8
1.21 GA Account Guaranteed Interest Rate................................. 8
1.22 Guaranteed Term..................................................... 8
1.23 Individual Account.................................................. 9
1.24 Loan Account........................................................ 9
1.25 Loan Effective Date................................................. 9
1.26 Loan Interest Rate.................................................. 9
1.27 Market Value Adjustment (MVA)....................................... 9
1.28 Matured Term Value.................................................. 9
3
<PAGE>
Page
1.29 Matured Term Value Transfer......................................... 9
1.30 Maturity Date....................................................... 10
1.31 Monthly Average Corporates.......................................... 10
1.32 Net Contribution.................................................... 10
1.33 Nonunitized Separate Account........................................ 10
1.34 Participant......................................................... 10
1.35 Plan................................................................ 10
1.36 Reinvestment........................................................ 10
1.37 Separate Account.................................................... 11
1.38 Valuation Date...................................................... 11
1.39 Valuation Period.................................................... 11
1.40 Variable Annuity.................................................... 11
II. GENERAL PROVISIONS
- --------------------------------------------------------------------------------
2.01 Change of Contract.................................................. 11
2.02 Change of Fund...................................................... 12
2.03 Nonparticipating Contract........................................... 12
2.04 Payments............................................................ 12
2.05 State Laws.......................................................... 12
2.06 Control of Contract................................................. 12
2.07 Designation of Beneficiary.......................................... 13
2.08 Misstatements and Adjustments....................................... 13
2.09 Incontestability.................................................... 13
2.10 Grace Period........................................................ 14
2.11 Individual Certificates............................................. 14
III. CONTRIBUTIONS, CURRENT VALUE, and WITHDRAWAL PROVISIONS
- --------------------------------------------------------------------------------
3.01 Net Contribution(s)................................................. 14
3.02 Experience Credits.................................................. 14
3.03 Fund Record Units................................................... 14
3.04 Fund Record Unit Value.............................................. 15
3.05 Fund Net Return Factors............................................. 15
4
<PAGE>
Page
3.06 Market Value Adjustment............................................. 15
3.07 Fund Transfer(s).................................................... 17
3.08 Aetna GET Fund Offering Period...................................... 18
3.09 Aetna GET Fund Guarantee............................................ 19
3.10 Aetna GET Fund Maturity Date........................................ 19
3.11 Loans............................................................... 19
3.12 Notice to the Participant........................................... 22
3.13 Manner and Timing of Distributions.................................. 22
3.14 Withdrawal.......................................................... 23
3.15 Partial Withdrawal from the Fixed Plus Account...................... 23
3.16 Payment of Fixed Plus Account Full Withdrawal....................... 24
3.17 Payment of Minimum Current Value.................................... 25
3.18 Amount Payable at Death (Before Annuity Payments Start)............. 25
3.19 Reinstatement....................................................... 26
IV. NON-ANNUITY DISTRIBUTION OPTIONS
- --------------------------------------------------------------------------------
4.01 Distribution Options................................................ 27
4.02 Estate Conservation Option.......................................... 29
4.03 Life Expectancy Option.............................................. 29
4.04 Systematic Withdrawal Option........................................ 30
V. ANNUITY PROVISIONS
- --------------------------------------------------------------------------------
5.01 General Provisions.................................................. 31
5.02 Annuity Options..................................................... 32
5.03 Payments............................................................ 33
5.04 Investment Option................................................... 34
5.05 Fund Annuity Units.................................................. 35
5.06 Fund Annuity Unit Value............................................. 35
5.07 Fund Annuity Net Return Factor...................................... 35
5.08 Fund Transfers During the Annuity Period............................ 36
5.09 Death Benefit....................................................... 37
5
<PAGE>
<TABLE>
<S> <C> <C>
I. 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 1.12) of an Individual Account (See 1.23) plus or
minus any applicable aggregate GA Account Market Value Adjustment. (See
3.07).
1.03 Aetna GET Fund Offering Period: The period, usually from one to three months, during which Participants may
(Offering Period) transfer or deposit amounts to an Aetna GET Fund series. Each Aetna GET
Fund series has a specified Offering Period. Amounts transferred or
deposited prior to the date on which the Guaranteed Period begins are
invested in money market instruments.
Aetna reserves the right to state the minimum amount a Participant may
transfer or deposit to each Offering Period. Aetna also reserves the right
to extend an Offering Period or accept Fund transfers or deposits to an
Aetna GET Fund series during the series' Guaranteed Period.
1.04 Aetna GET Fund Guaranteed For each Aetna GET Fund series, the period for which the Aetna Get Fund
Period: (Guaranteed Period) Guarantee applies. The Guaranteed Period ends on the Maturity Date.
1.05 Aetna GET Fund Maturity Date: The date on which a series' Guaranteed Period ends and GET Fund Record Units
(Maturity Date) for the series are liquidated.
1.06 Annuitant: If an Annuity provides lifetime benefits, the person whose life expectancy
determines the amount and/or duration of Annuity benefit payments.
1.07 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).
1.08 Beneficiaries: The person(s) named to receive any benefits which remain under the Contract
after the Participant's death. Participant(s) designate a Beneficiary for
their Individual Account(s). (See 2.07)
6
<PAGE>
1.09 Code: The Internal Revenue Code of 1986, as amended.
1.10 Contract Holder: The entity, named on the cover of this Contract, to which the Contract is
issued.
1.11 Contribution: A payment received at Aetna's Home Office and allocated to this Contract.
1.12 Current Value: For an Individual Account (See 1.23), 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 3.03), if any, as of the most
recent Valuation Period.
1.13 Deposit Period: A calendar month, a calendar quarter, or any other period of time specified
by Aetna during which Net Contribution(s), Fund Transfers and Reinvestments
are accepted into the GA Account for one or more Guaranteed Terms.
1.14 Fixed Plus Account: If offered as an investment option under the Contract (see Contract Schedule
I) the Fixed Plus Account is an accumulation option with a guaranteed
minimum interest rate. Aetna may credit a higher rate which is not
guaranteed. The portion that may be withdrawn or transferred in a 12 month
period is restricted (See 3.07, 3.15 and 3.16).
1.15 Fixed Plus Account Guaranteed If the Fixed Plus Account is an investment option under the Plan (see
Interest Rate: Contract Schedule I) then Aetna will add interest 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 at a higher rate determined by
its Board of Directors.
1.16 Fixed Annuity: An Annuity with payments that do not vary in amount.
1.17 Fund(s): The open-end registered management investment companies whose shares are
purchased by the Separate Account to fund the benefits provided by the
Contract. Each Aetna GET Fund series is a separate Fund.
1.18 Fund Transfers: The movement of invested amounts among the available Fund(s); the Fixed Plus
Account (if available) and the GA Account (if available).
7
<PAGE>
1.19 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).
1.20 Guaranteed Accumulation If offered as an investment option under the Contract (see Contract Schedule
Account (GA Account): I) the Guaranteed Accumulation Account (GA Account) is 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.
1.21 GA Account Guaranteed If the GA Account is an investment option under the Contract (see Contract
Interest Rate: Schedule I) then 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 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.
1.22 Guaranteed Term: The period of time for which GA Account Guaranteed Interest Rates are
guaranteed on Net Contributions, Fund 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
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 Term are held in the Nonunitized Separate Account.
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1.22 Guaranteed Term (Cont'd): During a Deposit Period, Aetna may make available any number of Guaranteed
Terms. The Participant may allocate Net Contributions and Fund Transfers
into any or all of the available Guaranteed Terms.
1.23 Individual Account: This Contract is issued to the Contract Holder. However, Aetna will
maintain Individual Accounts for each Participant to keep a record of
Current Value (See 1.12) and transactions. These may include:
(a) An Employer Account: This Individual Account will be credited with
employer Net Contribution(s) and transferred amounts of 401(a) funds,
attributable to employer contributions; and
(b) An Employee Account: This Individual Account will be credited with
employee Net Contribution(s) specifically amounts subject to Code
Section 414(H) and transferred amounts of 401(a) funds, attributable
to 414(H) contributions and any after tax contributions.
1.24 Loan Account: For each loan taken by a Participant, the loan amount transferred from the
investment options is credited to the Loan Account.
1.25 Loan Effective Date: The date on which Aetna receives a loan agreement in good order at its home
office.
1.26 Loan Interest Rate: The interest rate Aetna charges on a loan. (see Contract Schedule-I).
1.27 Market Value Adjustment (MVA): An adjustment to the amount withdrawn or transferred from an 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 3.06. The adjustment is expressed as a percentage of each dollar
being withdrawn.
1.28 Matured Term Value: The amount payable on a GA Account Guaranteed Term's Maturity Date.
1.29 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 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.
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1.30 Maturity Date: The last day of a GA Account Guaranteed Term.
1.31 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.
1.32 Net Contribution: A Contribution less any applicable premium taxes.
1.33 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 1.21) greater
than three years. The Contract Holder 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.
1.34 Participant: A person who participates in the Plan named on the cover of this Contract.
1.35 Plan: The Plan named on the cover of this Contract and established under Section
401(a) of the Code. The Plan is not a part of the Contract and Aetna is not
bound by its terms.
1.36 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 Guaranteed
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.
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1.37 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.
1.38 Valuation Date: The date and time on which a Fund annuity unit value and a Fund record unit
value are calculated. Currently, this calculation will be determined at the
close of business of the New York Stock Exchange on any normal business day,
Monday through Friday, that the New York Stock Exchange is open.
1.39 Valuation Period: The period of time commencing at the end of one Valuation Date and ending at
the end of the next Valuation Date.
1.40 Variable Annuity: An Annuity with payments that vary with the net investment results of the
Funds available during the Annuity period.
II. GENERAL PROVISIONS
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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 in writing of any changes.
Aetna may change the tables for determining the amount of Annuity benefit
payments attributable only to Contributions accepted after the effective
date of change, 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 days before the
effective date of the change. Aetna may not make Contract changes which
adversely affect the Annuity benefits attributable to Contributions already
made to the Contract.
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2.02 Change of Fund: The assets of the Separate Account are segregated by Fund. If the shares of
any Fund are no longer available for investment by the Separate Account or
if in our judgment, further investment in such shares should become
inappropriate in view of the purpose of the Contract, Aetna may cease to
make such Fund shares available for investment under the Contract
prospectively, or Aetna may substitute shares of another Fund for shares
already acquired. Aetna may also, from time to time, add additional Funds.
Any elimination, substitution or addition of Funds will be done in
accordance with applicable state and federal securities laws. Aetna
reserves the right to substitute shares of another Fund for shares already
acquired without a proxy vote.
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's 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: This Contract is designed to fund a plan which provides for retirement
income.
The Contract Holder may, by written direction to Aetna, allow Participants
to select the investment options of their Employer and/or Employee
Accounts. Choices made under this Contract must be in writing or in a form
satisfactory to Aetna. Until receipt of such choices in its Home Office,
Aetna may rely on any previous choices made.
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(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 Internal Revenue Code of 1986, as it
may be amended from time to time.
(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. 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 distribution is in accordance with the terms of the Plan.
(c) Distributions: A Participant may apply for a distribution from his
or her Employee Account or Employer Account. However, the Contract
Holder must certify in writing that the distribution is in accordance
with the terms of the Plan.
(d) Participant Rights/Employee Account: 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.
2.06 Control of Contract (Cont'd): (e) 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 nor keep
such records.
2.07 Designation of Beneficiary: The Participant shall designate a Beneficiary. If the Plan is subject to
ERISA, the Contract Holder must certify in writing that the designation is
in accordance with the appropriate REA requirements and 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.
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2.10 Grace Period: This Contract will remain in effect even if Contributions are not continued
except as provided in 3.17.
2.11 Individual Certificates: Aetna shall issue certificates to 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.
III. CONTRIBUTIONS, CURRENT VALUE, AND WITHDRAWAL PROVISIONS
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3.01 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 (if available); and
(b) The current Deposit Period(s) for Guaranteed Terms under the GA
Account (if available); and
(c) The Fund(s) in which the Separate Account invests.
Aetna must be told the percentage of all Net Contributions to allocate to
one or more of the investment options. Aetna reserves the right to require
a minimum Contribution amount per Individual Account.
3.01 Net Contribution(s) (Cont'd): Aetna reserves the right not to accept any Contribution.
3.02 Experience Credits: Aetna may apply experience credits under this Contract. Any such credits
will be computed as decided by Aetna.
3.03 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
3.04) for the Valuation Period in which the Contribution is received in good
order.
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3.04 Fund Record Unit Value: A Fund record unit value is computed by multiplying the net return factor
(See 3.05) for the current Valuation Date by the Fund record unit value for
the previous Date. 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.
3.05 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);
divided by
(d) The total value of the Fund record units and Fund annuity units of
the Separate Account at the start of the Valuation Period; minus
3.05 Fund Net Return Factors (e) A Separate Account charge at an annual effective rate as shown on
(Cont'd): Contract Schedule I for Annuity mortality and expense risks, asset
based sales charge, if any, 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; minus
(f) A fee for the Aetna GET Fund Guarantee which is deducted daily during
the Guaranteed Period. The fee, which is determined prior to the
beginning of each series' Offering Period, is as shown on Contract
Schedule I.
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.
3.06 Market Value Adjustment (MVA): (a) An MVA will be applied to any withdrawal from a GA Account Term
before the Maturity Date due to:
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(1) A Fund Transfer;
(2) A full or partial withdrawal; or
(3) A payment of a premium for Annuity Option 1.
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 will be determined as follows:
3.06 Market Value Adjustment (MVA) (1) At the close of the last business day of each week of the
(Cont'd): 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.
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(d) If a lump-sum distribution or Annuity Option is elected six months or
more after your death, the Beneficiary will receive the Account
Value, plus or minus any MVA that would apply to any portion of the
Account allocated to GAA. If a full or partial withdrawal is made
within six months after your death, the Beneficiary will receive the
Account Value, plus any positive MVA that would apply to any portion
of the Account allocated to GAA. The value of the Account is
determined as of the Valuation Date on which proof of death
acceptable to us and a request for payment are received at our Home
Office.
(e) After the six month period, the withdrawal or Fund Transfer will be
the aggregate MVA amount (i.e., including all MVAs).
(f) 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 2
or 3.
3.07 Fund Transfer(s): All or any portion of the Adjusted Current Value of the Individual Account
(subject to the limitations described below) may be transferred from any
Fund, the Fixed Plus Account (if available) or the GA Account (if available):
3.07 Fund Transfer(s) (Cont'd): (a) To any Fund; or
(b) To the Fixed Plus Account (if available); or
(c) To any Guaranteed Term of the GA Account (if available) with a
different classification available in the Current Deposit Period.
Fund Transfer requests can be submitted as a percentage or as a dollar
amount. Aetna may establish a minimum Fund 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.
Fund Transfers from Guaranteed Terms of the GA Account are subject to the
MVA provisions of 3.06.
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During each rolling twelve (12) month period, up to 20% of the Fixed Plus
Account value 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, Fund Transfers or amounts taken as a loan or used to
purchase an Annuity during the twelve (12) month period. Aetna reserves the
right to include amounts paid under ECO, LEO 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 Fund Transfer request
is received in good order at Aetna's Home Office.
The Participant may make an unlimited number of Fund Transfers during the
Accumulation Period.
A Fund Transfer or withdrawal from an Aetna GET Fund series before the
Maturity Date will be based on the GET Fund Record Unit Value for the next
Valuation Period following the date on which Aetna receives a transfer
request in good order at its home office.
3.08 Aetna GET Fund Offering Period: Aetna will specify a minimum total asset amount required at the end of an
Offering Period to offer an Aetna GET Fund series. If the minimum is not
achieved, Aetna reserves the right to not start the Guaranteed Period.
If an Aetna GET Fund series is terminated, Aetna will send written
notification of the termination to all Participants who have made Fund
Transfers or deposits to that Aetna GET Fund Series. Notice will be mailed
no later than 15 calendar days after the end of the Offering Period.
Participants then have 45 days from the end of the Offering Period to
redirect amounts in the terminated Aetna GET Fund series to one or more
investment options available under the Contract. During this time, Funds
are invested in money market instruments. If no election is made by the end
of the 45-day period, at the next Valuation Period, Aetna will transfer the
amount in the terminated Aetna GET Fund series to the (Aetna Variable Encore
Fund).
Aetna reserves the right to specify a maximum total asset amount for an
Aetna GET Fund series. If the maximum is achieved, Aetna also reserves the
right to set a date on which it will stop accepting Fund Transfers or
deposits for that Aetna GET Fund series. Aetna will announce the date on
which it will stop accepting Fund Transfers and deposits ten calendar days
prior to that date.
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3.09 Aetna GET Fund Guarantee: On the Maturity Date of each Aetna GET Fund series, the GET Fund Record Unit
Value for that series will not be less than the GET Fund Record Unit Value
determined at the beginning of the Guaranteed Period. If necessary, Aetna
will transfer funds from its General Account to the Aetna GET Fund series to
offset any shortfall in the GET Fund Record Unit Value. The Aetna GET Fund
Guarantee does not apply to withdrawals or Transfers made before the
Maturity Date.
If Aetna GET Fund Record Units are adjusted at any time during an Aetna GET
Fund Guaranteed Period, the Aetna GET Fund Guarantee will be restated. The
restated Aetna GET Fund Guarantee will be calculated so that it is
equivalent to the original Aetna GET Fund Guarantee for that series.
3.10 Aetna GET Fund Maturity Date: Prior to the Maturity Date for each Aetna GET Fund series, Aetna sends a
written notice of the date to all participants who have Current Value in
that series. Participants must then inform Aetna of the investment
option(s) to which to transfer that Current Value. If a Participant does
not make an election, on the Maturity Date Aetna will transfer the Current
Value to the then available Aetna GET Fund series' Offering Period. If no
Offering Period is available, Aetna will transfer 50% of the amount to the
(Aetna Variable Fund) and 50% to the (Aetna Income Shares).
3.11 Loans: If loans are included as an option under the Contract, (see Contract
Schedule I) then the following will apply.
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 employers
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.
For plans subject to ERISA, the minimum loan amount is $1,000. For
plans not subject to ERISA, the minimum loan amount is defined in the
loan agreement. The maximum loan amount is the lesser of:
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(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.
3.11 Loans (Cont'd): (b) Loan Interest Rate: For 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 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 (see Contract Schedule I).
(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.
(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) Amount available for partial surrender while a loan is outstanding:
While a loan is outstanding, the amount available for partial
surrender is equal to the vested Individual Account Current Value,
including the Loan Account, minus 125% of the outstanding loan
balance.
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(f) Full surrenders while a loan is outstanding: If the Participant
requests a full surrender from the vested Individual Account Current
Value while a loan is outstanding, one of the following occurs:
3.11 Loans (Cont'd): (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, then 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, then the surrender amount cannot exceed
the vested Individual Account Current Value, including the Loan
Account, reduced by 125% of the outstanding loan balance.
(g) 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 (f).
(h) 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.
(i) Loan payment default: If Aetna does not receive a loan payment when
due, the defaulted payment is treated as follows:
(1) If the amount of the vested Individual Account Current Value
available for distribution is sufficient to repay (a) the
amount of the defaulted payment, plus (b) any applicable Fixed
Plus Account default charge, then that amount is deducted from
the vested Individual Account Current Value.
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3.11 Loans (Cont'd): (2) If the amount of the vested Individual Account Current Value
available for distribution is not sufficient to repay (a) the
amount of the defaulted payment, plus (b) any applicable Fixed
Plus Account default charge, until such time that the amount
due can be distributed, the Loan Account continues to earn
interest, and interest is charged on the defaulted payment. At
that time, the amount due is surrendered from the vested
Individual Account Current Value.
3.12 Notice to the Participant: Each year, Aetna will notify the Participant of:
(a) The value of any amounts held in:
(i) The Fixed Plus Account (if available),
(ii) The GA Account (if available),
(iii) The Fund(s) for the Separate Account;
(b) The number of any fund(s) record units;
(c) The fund(s) record unit value(s);
(d) The amount available for withdrawal; and
(e) The Loan Account value.
This information will be as of a date no more than sixty (60) days before
the date of the notice.
3.13 Manner and Timing of (a) As directed by the Contract Holder, a distribution to a Participant
Distributions: or Beneficiary 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. The Participant or Beneficiary may elect the form of
distribution subject to certification in writing by the Contract
Holder that the Participant or Beneficiary is eligible both as to the
timing and form of distribution. All distributions must satisfy the
minimum distribution rules set forth in Code Section 401(a)(9).
(b) The distribution of benefits from the Employee and Employer Accounts
must generally begin no later than April 1 of the calendar year
following the calendar year in which the Participant attains age 70 1/2
or in the case of a governmental or church plan the calendar year in
which the Participant attains age 70 1/2 or retires, whichever occurs
later. 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.
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3.13 Manner and Timing of The entire value of the Individual Account must be distributed, or
Distributions (Cont'd): distribution must be made over the life of the Participant, the joint
lives of the Participant and Beneficiary or over a period that does
not extend beyond the life expectancy of the Participant or the joint
life expectancies of the Participant and Beneficiary.
(c) If the Participant does not request commencement of benefits from the
Employee and Employer Accounts 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.
3.14 Withdrawal: (a) The Participant may withdraw any portion or all of an Individual
Account Adjusted Current Value and transfer such amount to another
investment provider under the Plan. The withdrawal and transfer
request must be submitted in writing to Aetna.
(b) Except as described in Section 3.17, 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 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.
(d) Any amount withdrawn from the Fixed Plus Account will be subject to
the limitations in 3.15, 3.16 and 3.17.
3.15 Partial Withdrawal from the The amount eligible for partial withdrawal is 20% of the Current Value of
Fixed Plus Account: the amount held in the Fixed Plus Account on the day Aetna's Home Office
receives a written request, reduced by any previous Fund Transfer, partial
withdrawal or amounts taken as a loan or used to purchase Annuity benefits
during the prior 12 months. Aetna reserves the right to include amounts
paid under ECO, LEO and SWO for purposes of applying this 20% limit.
However, SWO and LEO are unavailable if a Fixed Plus Account Transfer or
withdrawal is requested within the current 12 month Period.
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<PAGE>
3.15 Partial Withdrawal from the The 20% limit applicable to partial withdrawals from the Fixed Plus Account
Fixed Plus Account (Cont'd): will be waived under certain conditions and will apply when the partial
withdrawal is made on a pro rata basis from all options used under the
Participant's Individual Account. (See Contract Schedule I).
3.16 Payment of Fixed Plus Account When Aetna receives a full withdrawal request, no additional partial
Full Withdrawal: withdrawals or Fund Transfers from the Fixed Plus Account are permitted
during the payout period. If a full withdrawal is requested, Aetna will pay
any Current Value 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 12 months;
(b) One-fourth of the remaining Current Value 12 months later;
(c) One-third of the remaining Current Value 12 months later;
(d) One-half of the remaining Current Value 12 months later; and
(e) The balance of the Current Value 12 months later.
The Fixed Plus Account full withdrawal payment provision will be waived when
a withdrawal is:
(a) Due to the Participant's death before Annuity benefit payments begin;
(b) Used to purchase Annuity benefits;
(c) When the amount in the Fixed Plus Account is $3,500 or less and no
amount has been withdrawn, transferred, taken as a loan or used to
purchase Annuity benefits during the previous 12 months;
(d) Due to hardship when the following conditions are met:
(1) the withdrawal is due to an employer certified hardship;
(2) the amount withdrawn is paid directly to the Participant; and
(3) the amount paid for all partial and full withdrawals due to
hardship during the previous 12-month period does not exceed
10% of the average Current Value for all Individual Accounts
during the same period of time; or
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<PAGE>
3.16 Payment of Fixed Plus Account (e) Due to separation from service provided that:
Full Withdrawal (Cont'd): (1) the withdrawal is due to the Participant's separation from
service with the employer;
(2) the employer certifies that the Participant has separated from
service;
(3) the amount withdrawn is paid directly to the Participant; and
(4) the amount paid for all partial and full withdrawals due to
separation from service during the previous 12-month period
does not exceed 20% of the average Current Value of all
Individual Accounts during that same period of time.
Any full withdrawal from the Fixed Plus Account may be cancelled at any time
before the end of the payment period.
3.17 Payment of Minimum Current If the Individual Accounts Current Value is less than $3,500, and no
Value: Contributions have been received for three (3) years, Aetna may close the
Account and pay the Current Value as directed by the Contract Holder in one
lump sum.
3.18 Amount Payable at Death Aetna will pay any portion of the Individual Account(s) Current Value, to
(Before Annuity Payments the Beneficiary when:
Start):
(a) The Participant dies before Annuity payments start; and
(b) The certified copy of the death certificate is received by Aetna; and
(c) A completed and signed election form is submitted to the Home
Office. The form must include Contract Holder certification that the
Beneficiary is eligible for a distribution under the terms of the
Plan.
A guaranteed death benefit is available if the Beneficiary requests either a
lump-sum payment or an Annuity option within six months of the Participant's
death.
For each Individual Account, the death benefit is guaranteed to be the
greater of:
(a) The Current Value of the Individual Account plus aggregate positive
MVA, as applicable, on the date the notice of death and the request
for payment are received in good order at Aetna's Home Office; or
25
<PAGE>
3.18 Amount Payable at Death (b) The total of Net Contribution(s) made to the Individual Account minus
(Before Annuity Payments the total of all partial withdrawals, annuitizations made from the
Start) (Cont'd): Individual Account and any amount allocated from the Individual
Account to the Loan Account.
If the Participant dies before distributions begin in accordance with the
provisions of Code Section 401(a)(9), the entire value of the Account must
be distributed by December 31 of the calendar year containing the fifth
anniversary of the date of the Participant's death. Alternatively, if the
Participant has a designated Beneficiary, payments may be made over the life
of the Beneficiary or over a period not extending beyond the life expectancy
of the Beneficiary provided distribution to a non-spouse Beneficiary begins
by December 31 of the calendar year following the calendar year of the
Participant's death. For a spousal Beneficiary, such payments must begin by
the later of December 31 of the calendar year of the Participant's death or
December 31 of the calendar year in which the Participant would have
attained age 70 1/2.
If the Participant dies after distributions begin in accordance with the
provisions of Code Section 401(a)(9), payments to the Beneficiary must be
made at least as rapidly as the method of distribution in effect at the time
of the Participant's death. If the minimum distribution requirements have
been met by partial withdrawals based on the participant's life expectancy
or the joint life expectancies of the Participant and Beneficiary, death
benefit payments to the Beneficiary must also satisfy any additional
requirements of Code Section 401(a)(9).
Amounts in the GA Account will be payable as described in Section 3.07(d).
3.19 Reinstatement: All or a portion of the proceeds of a full withdrawal of an Individual
Account may be reinvested within 30 days after the surrender if allowed by
law. 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, GA Account, and the Fund(s) in the same proportion as
they were at the time of withdrawal. Any amount reinstated to the GA
Account will be credited to the current Deposit Period. The number of
record units reinstated will be based on the record unit value(s) next
computed after receipt at Aetna's Home Office of the reinstatement request
and the amount to be reinvested.
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<PAGE>
3.19 Reinstatement (Cont'd): Amounts attributable to an Aetna GET Fund series will be reinstated to the
current Offering Period of the Aetna GET Fund series. If no Aetna GET Fund
series Offering Period is available, amounts withdrawn from the Aetna GET
Fund series will be allocated, pro rata, among all other investment options
in which the Individual Account is invested.
Any Individual Account(s) closed because the Current Value was less than
$3,500 may not be reinstated (see 3.17).
A Reinstatement is permitted only once per Individual Account.
IV. NON-ANNUITY DISTRIBUTION OPTIONS
- -----------------------------------------------------------------------------------------------------------------------
4.01 Distribution Options: Distribution Options: ECO, LEO and SWO are distribution options under which
a portion of the Individual Account Current Value will automatically be
surrendered and distributed each calendar year. The distributed amount is
withdrawn pro rata from each investment option under the Individual
Account. The Contract Holder must certify in writing that distributions are
being made in accordance with the Plan.
Market Value Adjustment: A Market Value Adjustment will not be applied to
any portion of the Current Value which is paid under ECO.
Minimum Current Value: At its discretion, Aetna may require a minimum
initial Current Value for election of a distribution option. If after
election of the option the Current Value is insufficient to make a scheduled
payment, Aetna will distribute the entire Individual Account balance.
Reservations of Rights: Aetna reserves the right to change the terms of
ECO, LEO or SWO for future elections, to discontinue the availability of
these options after proper notification, or to make other distribution
options available as allowed by the state in which this Contract is
delivered. Aetna also reserves the right to allow ECO and LEO payments to
be made more frequently than annually.
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<PAGE>
4.01 Distribution Options (Cont'd): Election and Revocation: The Participant or Beneficiary may elect a
distribution option by submitting a completed and signed election form to
Aetna's Home Office. However, the Contract Holder must certify in writing that
the distribution option is in accordance with the terms of the Plan. If the
Individual Account is subject to ERISA, the Contract Holder must certify in
writing that the waiver and spousal consent requirements of Code Section 417
have been satisfied.
Once elected, the Participant or Beneficiary may revoke the option by
submitting a written request to Aetna's Home Office. Any revocation will apply
only to amounts not yet paid.
Availability of ECO, LEO and SWO: The Participant may elect any one of the
following three distribution options, if they are available as an option under
the Contract (see Contract Schedule I) and if the Contract Holder certifies
that the election is in accordance with the terms of the Plan. The Beneficiary
may elect either ECO or SWO, if they are available as an option under the
Contract (see Contract Schedule I) and if the Contract Holder certifies that
the election is in accordance with the terms of the Plan.
An individual who has revoked ECO, LEO or SWO may not subsequently elect that
option again, nor may the individual elect another withdrawal option unless
permitted under the Code minimum distribution rules.
LEO and SWO are not available if there is an outstanding loan under the
Individual Account, or if a Fixed Plus Account transfer or surrender has
occurred within the prior 12 month period. Payments will cease if a loan is
granted while LEO or SWO is in effect.
If LEO is in effect and the Participant dies, or if ECO or SWO is in effect and
the Participant dies before the required beginning date for minimum
distributions, payments will cease. A Beneficiary may elect ECO or SWO provided
the election satisfies the Code minimum distribution rules.
If ECO or SWO is in effect and the Participant dies after the required
beginning date for minimum distributions, payments will continue as permitted
under the Code minimum distribution rules, unless revoked.
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<PAGE>
4.02 Estate Conservation Option Amount of Distribution: Each year that ECO is in effect, Aetna will
(ECO): calculate and distribute an amount equal to the minimum required
distribution 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 year for which payment is to be made by a life expectancy factor
based on expected return multiples in Table V and VI of Section 1.72-9 of the
Income Tax Regulations.
The Participant may elect either the single or joint life expectancy factor. If
the joint life expectancy factor is elected, the second life must be the
Beneficiary under the Plan. If the Beneficiary selects ECO after the
Participant's death, only a single life expectancy factor may be used. The life
expectancy or joint life expectancy factor will be recalculated each year in
accordance with the rules under Code Section 401(a)(9).
Date of Distribution: The Participant shall specify the initial distribution
date. The earliest date is the first day of the calendar year in which the
Participant attains age 70 1/2 or, for plans of government or church employers,
the date the Participant retires, whichever is later. If a Beneficiary elects
ECO, the earliest date is the date of the Participant's death. Subsequent
distribution will be made annually on such date as Aetna may designate or
allow.
4.03 Life Expectancy Option (LEO): Amount of Distribution: Each year that LEO is in effect, Aetna will
calculate and distribute an amount determined by dividing the Individual
Account Current Value as of December 31 of the year prior to the year for which
payment is to be made by a life expectancy factor based on expected return
multiples in Table V and VI of Section 1.72-9 of the Income Tax Regulations.
Payments will be made each year until the year the Participant attains age
70 1/2, or until the Participant dies, if earlier.
The Participant may elect either the single or joint life expectancy factor. If
the joint life expectancy factor is elected, the second life must be the
Beneficiary under the Plan. The life expectancy or joint life expectancy factor
will be recalculated each year in accordance with the rules under Code Section
401(a)(9), or reduced by one for each calendar year which has elapsed since the
life expectancy was first calculated, as elected by the Participant
4.03 Life Expectancy Option (LEO) Date of Distribution: The Participant shall specify the initial
(Cont'd): distribution date. The earliest date is the date on which the Participant
separates from service with the employer. Subsequent distribution will be made
annually on such date as Aetna may designate or allow.
29
<PAGE>
4.04 Systematic Withdrawal Option Amount of Distribution: The Participant may elect one of the three payment
(SWO): methods described below.
(1) Specified Payment: Payments of a designated dollar amount. The
annual amount may not be greater than the percentage of the Current
Value at time of election as shown in Contract Schedule I. This
annual dollar amount will remain constant, unless a higher amount is
required under Code minimum distribution rules. At its discretion,
Aetna may require a minimum initial payment amount; or
(2) Specified Period: Payments which are made over a period of time
which must be at least the minimum number of years shown in Contract
Schedule I. The annual amount paid each year is calculated by
dividing the Current Value as of December 31 of the prior year by the
number of payment years remaining; or
(3) Specified Percentage: Payment of a designated percentage which
cannot be greater than the percentage of the Current Value at the
time of election as shown in Contract Schedule I. The percentage may
be changed by written request. Aetna reserves the right to limit the
number of times the percentage may be changed. The annual amount is
calculated by multiplying the Current Value as of December 31 of the
year prior to the payment by the designated percentage. Payments will
be made each year until the year the Participant attains age 70 1/2.
Minimum Distribution Requirements: If distributions are made under SWO after
payments are required to begin under the minimum distribution requirements of
Code Section 401(a)(9), the amount distributed in any year will be increased if
required under the Code minimum distribution rules.
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<PAGE>
4.04 Systematic Withdrawal Option For this purpose, the minimum required distribution will be determined each
(SWO) (Cont'd): year by dividing the Individual Account Current Value as of December 31 of
the year prior to the year for which payment is to be made by a life expectancy
factor, which for the initial distribution year shall be based on either the
single life expectancy factor or joint life expectancy factor in Table V or VI
of Section 1.72.9 of the Income Tax Regulations, as elected by the Participant.
If the joint life expectancy factor is elected, the second life must be the
Beneficiary under the Plan. If a Beneficiary elects SWO after the Participant's
death, only a single life expectancy factor may be used. Minimum distributions
for any subsequent year will be calculated based on such life expectancy factor
reduced by one for each calendar year which has elapsed since the life
expectancy was first calculated. If the specified period method is elected, the
maximum specified period will be limited by the single life expectancy factor
or joint life expectancy factor in Table V or VI of Section 1.72-9 of the
Income Tax Regulations, as elected by the Participant. If elected by a
Beneficiary, only a single life expectancy may be used.
Date of Distribution: The Participant shall specify the initial distribution
date. The earliest date is the date on which the Participant attains age 59 1/2
or age 55, if separated from service with the employer at or after age 55. If a
Beneficiary elects SWO, the earliest date is the date of the Participant's
death.
SWO payments will be made on a monthly, quarterly, semi-annual or annual basis,
as elected by the Participant or Beneficiary. If SWO payments are made more
frequently than annually, the designated annual amount is divided by the number
of payments due each calendar year. Subsequent distribution will be made
periodically on such date as Aetna may designate or allow.
V. ANNUITY PROVISIONS
- -----------------------------------------------------------------------------------------------------------------------
5.01 General Provisions: (a) Upon certification by the Contract Holder of the Participant's total
disability, acceptance of retirement or separation from service, the
Participant has the right to elect an Annuity option. The
Participant must transfer any portion of the Current Value held in an
Aetna GET Fund series to another investment option before an Annuity
option is elected.
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<PAGE>
5.01 General Provisions (Cont'd): (b) 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 1, 2, or 3 (See 5.02).
(c) A completed and signed election form must be submitted to the Home
Office. The form must include Contract Holder certification that the
Participant is eligible for a distribution under the terms of the
Plan and that the Annuity option chosen is permitted under the terms
of the Plan.
(d) 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 3 is chosen and the second
Annuitant is the spouse of the Participant.
(e) Once elected, an Annuity option may not be revoked, except for Option
1 when elected on a variable basis.
5.02 Annuity Options: Option 1 - 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.
Option 2 - Life Income based on the life of the Annuitant. Payments will be
made until the death of the Annuitant. When this option is chosen, a choice
of the following must be made:
(a) Payments cease at the death of the Annuitant;
(b) Payments may be guaranteed for 5-30 years; or
(c) Payments may be guaranteed for the amount applied to the Annuity
option. If the Annuitant dies prior to the payment of the amount
applied to the Annuity option (less any premium tax), any remaining
balance will be paid in one sum to the Beneficiary. This option is
only available on a fixed basis.
Option 3 - 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:
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<PAGE>
5.02 Annuity Options (Cont'd): (a) 100% of the payment to continue after the first death;
(b) 66 2/3% of the payment to continue after the first death;
(c) 50% of the payment to continue after the first death;
(d) 100% of the payment to continue after the first death with a
guarantee of 5-30 years;
(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; or
(f) 100% of the payment to continue after the first death. Payments are
guaranteed for the amount applied to the Annuity option. If both
Annuitants die prior to the total payment of the amount applied to
the Annuity option (less any premium tax), any remaining balance will
be paid in one sum to the Beneficiary. This option is only available
on a fixed basis.
If a fixed Annuity option is chosen under Option 1, Option 2 (a) or (b) or
Option 3 (a) or (d), then the Participant may elect a payment increase of 1, 2
or 3%, compounded annually. An election of such a payment increase will result
in a adjustment of the policy guarantees by an actuarially equivalent payment
factor.
Other Options - Aetna may make other options available as allowed by the laws
of the state in which this Contract is delivered.
5.03 Payments: (a) Upon written direction from the Contract Holder, 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.
(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 in the case of a governmental or church plan, the year in
which the Participant attains age 70 1/2 or retires, whichever occurs
later. 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 April 1 of the calendar year following the calendar
year in which the Participant retires.
5.03 Payments (Cont'd): (c) Payments will be made on a monthly basis unless the Participant
requests otherwise. If payments are made on a quarterly, semi-annual
or annual basis, Aetna will calculate an actuarially equivalent
payment factor.
33
<PAGE>
(d) No choice of any Annuity option may be made if the first payment
would be less than $50 per month or if the total payments in a year
would be less than $250.
(e) For purposes of calculating the guaranteed first payment of a
variable Annuity or the payments for a fixed Annuity, the Annuitants
and second Annuitants adjusted age will be used.
The Annuitants and second Annuitants 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
Annuitants and second Annuitants 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 Annuitants and second
Annuitants age will be reduced by one additional year for Annuity
commencement dates occurring in each succeeding decade.
(f) If a Fixed Annuity under Option 1, 2 or 3 is elected, Aetna will use
the applicable current settlement option rates if these will provide
higher fixed Annuity payments.
5.04 Investment Option: (a) 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.
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<PAGE>
5.04 Investment Option (Cont'd): 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). The 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) (at the
annual rate shown on Contract Schedule II) and a daily administrative charge
if future variable Annuity payments are to remain level.
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 (minus any 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
Date 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 Date prior to the due date of the
payment is used.
5.06 Fund Annuity Unit Value: For any Valuation Date, a Fund(s) Annuity unit value is equal to:
(a) The value for the previous Valuation Date; 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 values 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 The Annuity net return factor(s) are used to compute all Separate Account
Factor: Annuity payments for any Fund.
The Annuity net return factor(s) for each Fund is equal to 1.0000000 plus
the net return rate.
5.07 Fund Annuity Net Return The net return rate is equal to:
Factor (Cont'd):
35
<PAGE>
(a) The value of the shares of the Fund held by the Separate Account at
the end of a Valuation Period, minus
(b) The value of the shares of the Fund held by the Separate Account at
the start of the Valuation Period, plus or minus
(c) Taxes (or reserves for taxes) on the Separate Account (if any);
divided by
(d) The total value of the Fund(s) record units and Fund(s) Annuity units
of the Separate Account at the start of the Valuation Period; minus
(e) A daily charge for Annuity mortality and expense risks, which may
include a profit, (at the annual rate as shown on Contract Schedule
II), and a daily administrative charge.
A net return rate may be more or less than 0%. The value of a share of the
Fund is equal to the net assets of the Fund divided by the number of shares
outstanding.
5.08 Fund Transfers During the At the request of the Contract Holder or the Participant if the Contract
Annuity Period: Holder has directed Aetna to accept such a request from the Participant, all
or any portion of the Current Value may be transferred from any variable
Fund to any other allowable Fund. Aetna reserves the right to allow no more
than four Funds to be selected at any one time. Fund Transfers will be
processed as of the Valuation Date next following when a transfer request is
received in good order at Aetna's Home Office. The maximum number of
allowable transfers (during the Annuity period) in a calendar year is shown
on Contract Schedule II.
Fund Transfer requests must be expressed as a percentage of each Funds
allocation to the Annuity payment. Aetna may establish a minimum transfer
amount.
5.09 Death Benefit: Upon the death of the Annuitant(s), any remaining guaranteed payments will
continue to the Beneficiary unless the Beneficiary elects to receive the
present value of any remaining guaranteed payments in a lump sum. Such
payments will be paid at least as rapidly as under the method of
distribution then in effect. If the Beneficiary dies while receiving
payments, the present value of any remaining guaranteed payments will be
paid in one sum to the Beneficiary's estate.
The interest rate used to determine the first Annuity payment will be used
to calculate the present value. The present value will be determined as of
the Valuation Period in which proof of death acceptable to Aetna and a
request for payment is received at Aetna's Home Office.
</TABLE>
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<PAGE>
OPTION 1
Payments for a Stated Period of Time
Amount of 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>
- ---------------------------------------------------------------------------------------------------
Monthly Monthly
Years Payment Years Payment
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
5 17.91 18 5.96
6 15.14 19 5.73
7 13.16 20 5.51
8 11.68 21 5.32
9 10.53 22 5.15
10 9.61 23 4.99
11 8.86 24 4.84
12 8.24 25 4.71
13 7.71 26 4.59
14 7.26 27 4.47
15 6.87 28 4.37
16 6.53 29 4.27
17 6.23 30 4.18
- ---------------------------------------------------------------------------------------------------
</TABLE>
Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------
Monthly Monthly
Years Payment Years Payment
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
5 18.12 18 6.20
6 15.35 19 5.97
7 13.38 20 5.75
8 11.90 21 5.56
9 10.75 22 5.39
10 9.83 23 5.24
11 9.09 24 5.09
12 8.46 25 4.96
13 7.94 26 4.84
14 7.49 27 4.73
15 7.10 28 4.63
16 6.76 29 4.53
17 6.47 30 4.45
- ---------------------------------------------------------------------------------------------------
</TABLE>
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<PAGE>
OPTION 1
Payments for a Stated Period of Time
Amount of 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>
- ---------------------------------------------------------------------------------------------------
Monthly Monthly
Years Payment Years Payment
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
5 18.74 18 6.94
6 15.99 19 6.71
7 14.02 20 6.51
8 12.56 21 6.33
9 11.42 22 6.17
10 10.51 23 6.02
11 9.77 24 5.88
12 9.16 25 5.76
13 8.64 26 5.65
14 8.20 27 5.54
15 7.82 28 5.45
16 7.49 29 5.36
17 7.20 30 5.28
- ---------------------------------------------------------------------------------------------------
</TABLE>
38
<PAGE>
OPTION 2
Life Income
Amount of 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 Years
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------
Adjusted Cash
Age of Annuitant None 5 10 15 20 Refund
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
50 $ 4.05 $ 4.05 $ 4.03 $ 3.99 $ 3.93 $ 3.89
51 4.12 4.11 4.09 4.05 3.99 3.94
52 4.19 4.19 4.16 4.11 4.04 4.00
53 4.27 4.26 4.23 4.18 4.10 4.06
54 4.35 4.34 4.31 4.25 4.16 4.12
55 4.44 4.42 4.39 4.32 4.22 4.19
56 4.53 4.51 4.47 4.40 4.29 4.26
57 4.62 4.61 4.56 4.48 4.35 4.33
58 4.72 4.71 4.65 4.56 4.42 4.41
59 4.83 4.81 4.75 4.64 4.49 4.49
60 4.95 4.93 4.86 4.73 4.55 4.57
61 5.07 5.05 4.97 4.83 4.62 4.66
62 5.20 5.17 5.08 4.92 4.69 4.76
63 5.34 5.31 5.20 5.02 4.76 4.85
64 5.49 5.45 5.33 5.12 4.83 4.96
65 5.65 5.61 5.47 5.22 4.89 5.06
66 5.82 5.77 5.61 5.33 4.96 5.18
67 6.01 5.94 5.75 5.44 5.02 5.30
68 6.20 6.13 5.91 5.54 5.08 5.42
69 6.41 6.33 6.07 5.65 5.14 5.56
70 6.64 6.54 6.23 5.76 5.19 5.70
71 6.88 6.76 6.41 5.86 5.24 5.84
72 7.14 7.00 6.59 5.97 5.28 6.00
73 7.43 7.26 6.77 6.06 5.32 6.16
74 7.73 7.53 6.96 6.16 5.35 6.33
75 8.06 7.82 7.14 6.25 5.38 6.51
- -----------------------------------------------------------------------------------------------------------------
</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.
39
<PAGE>
OPTION 2
Life Income
Amount of 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 Years
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Adjusted
Age of Annuitant None 5 10 15 20
- -------------------------------------------------------------------------------------------------
<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
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.
40
<PAGE>
OPTION 2
Life Income
Amount of 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 Years
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
Adjusted
Age of Annuitant None 5 10 15 20
- -------------------------------------------------------------------------------------------------
<S> <C> <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 5.93 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
- -------------------------------------------------------------------------------------------------
</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.
41
<PAGE>
OPTION 3
Life Income for Two Annuitants
Amount of 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>
- -----------------------------------------------------------------------------------------------------------------------------------
Adjusted Ages
- ---------------------------------- Option 3d
Second 10 Years
Annuitant Annuitant Option 3a Option 3b Option 3c Guaranteed Option 3e Option 3f
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
55 50 $ 3.69 $ 4.05 $ 4.27 $ 3.69 $ 4.03 $ 3.69
55 55 3.88 4.25 4.47 3.87 4.14 3.87
55 60 3.99 4.44 4.71 3.98 4.20 3.98
60 55 3.99 4.44 4.71 3.98 4.42 3.98
60 60 4.24 4.71 4.99 4.23 4.57 4.23
60 65 4.38 4.97 5.32 4.38 4.65 4.38
65 60 4.38 4.97 5.32 4.38 4.93 4.38
65 65 4.72 5.33 5.70 4.71 5.14 4.72
65 70 4.93 5.68 6.15 4.91 5.27 4.91
70 65 4.93 5.68 6.15 4.91 5.66 4.91
70 70 5.40 6.21 6.70 5.36 5.96 5.38
70 75 5.69 6.68 7.32 5.62 6.13 5.66
75 70 5.69 6.68 7.32 5.62 6.67 5.66
75 75 6.37 7.45 8.15 6.23 7.12 6.33
75 80 6.78 8.11 8.99 6.54 7.36 6.71
- -----------------------------------------------------------------------------------------------------------------------------------
</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.
42
<PAGE>
OPTION 3
Life Income for Two Annuitants
Amount of 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
- ---------------------------------- Option 3d
Second 10 Years
Annuitant Annuitant Option 3a Option 3b Option 3c Guaranteed Option 3e
- ---------------------------------------------------------------------------------------------------------------------
<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 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.
43
<PAGE>
OPTION 3
Life Income for Two Annuitants
Amount of 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
- ---------------------------------- Option 3d
Second 10 Years
Annuitant Annuitant Option 3a Option 3b Option 3c Guaranteed Option 3e
- ---------------------------------------------------------------------------------------------------------------------
<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 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.
44
<PAGE>
- --------------------------------------------------------------------------------
Aetna Life Insurance and Annuity Company
Home Office: 151 Farmington Avenue
Hartford, Connecticut 06156
(800) 525-4225
Certificate of Group Annuity Coverage
- --------------------------------------------------------------------------------
ALL PAYMENTS AND VALUES PROVIDED BY THE GROUP ANNUITY 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.
Aetna Life Insurance and Annuity Company
ENDORSEMENT
The Contract and Certificate are hereby endorsed in the following manner.
The following provisions only apply to Individual Account Current Values
attributable to Net Contributions from exchanged Aetna contracts. No amounts may
be transferred or allocated to the Fixed Account on or after the effective date
of the Contract. All amounts transferred to the Fixed Plus Account from
exchanged Aetna contracts or allocated to the Fixed Plus Account, on or after
the effective date of the Contract will be subject to the Fixed Plus rules
applicable to Individual Account Current Values attributable to Net
Contributions made to the Contract on or after the effective date of the
Contract.
1. Add the following section to Contract Schedule I:
Fixed Account
Minimum Guaranteed Interest Rate:
3% (effective annual rate of return).
2. Add the following Section entitled Separate Account, Fixed Account and GA
Account under Contract Schedule I.
Separate Account, Fixed Account and GA Account
For each withdrawal of Individual Account Current Values (except those
amounts invested in the Fixed Plus Account) attributable to Net
Contributions from Aetna exchanged contracts the Withdrawal Fee will vary
according to the period of time between the Effective Date of the
Individual Account under the exchanged Aetna Contract and the date of
withdrawal as follows:
If the 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 0%
No Withdrawal Fee is deducted from any portion of the Individual Account
Current Value which is paid:
(a) At the death of a Participant before Annuity payments start;
(b) As a premium for an Annuity for a Participant;
(c) When the Individual Account Cash Value is $3,500 or less and no
withdrawals have been taken from the Individual Account within the
prior 12 months. If there is more than one Individual Account under the
Contract for a Participant, then this provision will only apply when
the total in all of the Participant's Individual Accounts is $3,500 or
less;
(d) 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
age 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 Participant's
Individual Account are excluded when calculating the Individual Account
Current value. This provision does not apply to partial withdrawals due
to loan defaults made from Individual Account Current Values and does
not apply to full withdrawal requests; or
(e) 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.
3. Add the following Definition:
Fixed Account: An Accumulation option with a guaranteed minimum interest rate.
Aetna may credit a higher rate which is not guaranteed.
4. Replace the definition entitled Current Value with the following:
Current Value:
For an Individual Account (See 1.23), the Current Value is the total of:
(a) The amount, if any, in the Fixed Account, with interest earned to date;
(b) The amount, if any, in the Fixed Plus Account, with interest earned to date;
(c) The amount, if any, in the GA Account, with interest earned to date; and
EORPEX97LAMS
<PAGE>
(d) The value of all Fund record units, if any, as of the most recent Valuation
Period.
5. Replace the definition of Fund Transfers with the following:
Fund Transfers
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.
6. Add the following paragraph to the section entitled Net Contribution:
The Fixed Account is an investment option available only for Net Contributions
allocated to the Fixed Account under Aetna Contracts that are exchanged into
this Contract.
7. Replace the section entitled Fund Transfer(s) with the following:
Fund Transfer(s):
All or any portion of the Adjusted Current Value of the Individual Account
(subject to the limitations described below) may be transferred from any Fund,
the Fixed Plus Account (if available) or the GA Account (if available):
(a) To any other allowable Fund;
(b) To the Fixed Plus Account (if available); or
(c) To any Guaranteed Term of the GA Account (if available) with a different
classification available in the current Deposit Period.
No Fund Transfers will be allowed into the Fixed Account.
Fund Transfer requests can be submitted as a percentage or as a dollar amount.
Aetna may establish a minimum Fund 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.
Fund Transfers from Guaranteed Terms of the GA Account are subject to the MVA
provisions.
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 option. Transfers will be permitted to the Fixed Plus Account without
regard to this limitation. At its discretion, Aetna may allow Contract Holders
to transfer a larger percentage in a calendar year. If Aetna so allows, Aetna
reserves the right to reinstate the 10% transfer limitation 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, Fund Transfers, loans or amounts used to purchase an
Annuity during the twelve (12) month period. Aetna reserves the right to include
amounts paid under ECO LEO 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 Fund Transfer request is received in good order at
Aetna's Home Office.
The Participant may make an unlimited number of Fund Transfers during the
Accumulation Period.
A Fund Transfer or withdrawal from an Aetna GET Fund series before the Maturity
Date will be based on the GET Fund Record Unit Value for the next Valuation
Period following the date on which Aetna receives a transfer request in good
order at its home office.
8. 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 (if available);
2) The GA Account (if available);
3) The Fixed Account (if available); and
4) The Fund(s) for the Separate Account;
<PAGE>
(b) The number of any fund(s) record units;
(c) The fund(s) record unit value(s);
(d) The amount available for withdrawal; and
(e) The Loan Account value.
This information will be as of a date no more than sixty (60) days before the
date of the notice.
9. Replace the 1st paragraph of the section entitled Reinstatement with the
following:
All or a portion of the proceeds of a full withdrawal of an Individual Account
may be reinvested within 30 days after the surrender if allowed by law. 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 Fixed Account, the GA Account and the Fund(s) in the same
proportion as they were at the time of withdrawal. Any amount reinstated to the
GA Account will be credited to the current Deposit Period. The number of record
units reinstated will be based on the record unit value(s) next computed after
receipt at Aetna's Home Office of the reinstatement request and the amount to be
reinvested.
10. Add the following to the section entitled Withdrawal:
(e) A Withdrawal Fee may apply to withdrawals from the GA Account, the Fixed
Account and/or Funds of Individual Account Current Values attributable to
Net Contributions from exchanged Aetna contracts. For each withdrawal, the
Withdrawal Fee will be determined as shown on the 1st page of this
endorsement.
11. With respect to Individual Account Current Values held in the Fixed Account
and attributable to Net Contributions from the exchanged Aetna contract,
under certain emergency conditions, Aetna may defer payment for a period of
up to 6 months (unless not allowed by state law); or as provided by federal
law. In addition, Aetna may pay any Fixed Account surrender requested from
the Contract, with interest in equal payments over a period not to exceed
60 months, when:
(a) The Fixed Account value for such Contract exceeds $250,000 on the day prior
to the current surrender; and
(b) The sum of the Current Fixed Account surrender and the total of all Fixed
Account surrenders from the Contract within the past 12 calendar months
exceeds 20% of the amount in the Fixed Account on the day prior to the
current surrender
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 3%.
Endorsed and made a part of the Contract on the effective date of the Contract.
Endorsed and made a part of the Certificate on the effective date of the
Certificate.
/s/ Thomas J. McInerney
Thomas J. McInerney
President
Aetna Life Insurance and Annuity Company
(As amended 9/17/97)
BY-LAWS
Aetna Life Insurance and Annuity Company
Hartford Connecticut
**********
ARTICLE I
OFFICES
Section 1. The principal office of the Company shall be in the City of Hartford,
County of Hartford, State of Connecticut.
Section 2. The Company may also have offices at such other places, both within
and without the State of Connecticut, as the Board of Directors may from time to
time determine or the business of the Company may require. Such additional
offices within or without the State of Connecticut may include one or more
regional home offices and, with the approval of the Commissioner of Insurance of
Connecticut, an operational home office.
ARTICLE II
STOCKHOLDERS' MEETINGS
Section 1. The Annual Meeting of the Stockholders of the Company shall be held
at the principal office of the Company or such other place within the State of
Connecticut as may be fixed from time to time by the Board of Directors. The
Annual Meeting shall be held in each year on such day in March or April and at
such hour as the Board of Directors may prescribe.
Section 2. Special meetings of the stockholders may be called by the Board of
Directors, a designated committee of the Board of Directors, or by the President
and shall be held at such time and at such place as shall be specified in such
call.
Section 3. Written notice of each stockholders' meeting stating the place, date
and hour of the meeting and (in the case of a special meeting) the purpose or
purposes for which the meeting is called shall be given by or at the direction
of the Board, the President, the Secretary or any designated committee of the
Board of Directors not less than five (5) days before the date of the meeting to
each stockholder of record entitled to vote at such meeting.
Section 4. The quorum for each meeting of stockholders shall consist of 25% of
the voting power of shares entitled to vote at such meeting.
Section 5. Persons entitled to vote at any stockholders' meeting may vote in
person or by proxy executed in writing by the stockholder or his duly authorized
attorney-in-fact and filed with the Secretary of the Company not less than
<PAGE>
twenty-four (24) hours prior to the meeting.
ARTICLE III
DIRECTORS
Section 1. The Board of Directors shall consist of not less than three and not
more than twenty-one Directors, and the number of directorships at any time
within such minimum and maximum range shall be the number fixed by vote of the
Stockholders or Directors or, in the absence thereof, shall be the number of
Directors elected at the preceding Annual Meeting of Stockholders.
Section 2. Vacancies in the Board of Directors shall be filled for the unexpired
term by majority vote of the remaining Directors, and each person so elected
shall be a Director until his successor is elected by the stockholders at the
next Annual Meeting of Stockholders or at any special meeting of stockholders
called for that purpose and held prior to that Annual Meeting.
Section 3. Regular meetings of the Board shall be held at such place and on such
day and hour at such periodic intervals as the Board may from time to time
designate. Notice of such regular meetings need not be given, but the Secretary
shall notify each Director by mail of the action of the Board designating or
changing the place, period, day, or hour of such regular meetings.
Section 4. Special meetings of the Board shall be held at the call of the
President, the Secretary, or not less than one-third of the Directors then in
office.
Section 5. The Board of Directors of the Company may hold meetings, both regular
and special, either within or without the State of Connecticut.
Section 6. A quorum shall consist of a majority of the Directors at the time in
office, but not less than two Directors nor less than one-third of the number of
Directors provided for by Article II, Section 1.
Section 7. The Board shall fix the compensation of each Director and of each
member of a committee appointed by the Board pursuant to Article IV.
ARTICLE IV
COMMITTEES OF THE BOARD
Section 1. The Board of Directors may appoint, by resolution passed by a
majority of the whole Board, two (2) or more Directors to constitute an
Executive Committee, which Committee, to the extent provided in such resolution,
shall have and exercise all the powers of the Board when it is not in session,
except as otherwise required by law.
Section 2. The Board may also appoint two (2) or more Directors, by resolution
passed by a majority of the whole Board, to constitute other outstanding
committees and one (1) or more temporary committees, investing such committees
with such powers and subjecting them to such conditions as the Board may
prescribe. The Board of Directors may also appoint an advisory committee to any
committee or to the Board itself. The members of such advisory committee need
not be members of the Board of Directors.
2
<PAGE>
Section 3. Each committee shall cause regular minutes of its meetings to be
recorded in books kept for that purpose. All actions of each such committee
shall be reported to the Board. The presence of a majority of the members of
each such committee shall be necessary to constitute a quorum. Each committee
created under this section shall meet at the call of its chairman, the
President, the Secretary, or any member of the committee. The members of each
such committee shall continue in office until their successors are chosen unless
sooner discharged.
ARTICLE V
OFFICERS
Section 1. The officers of the Company shall include a President, chosen from
the Directors, one or more Vice Presidents, a Secretary and a Treasurer, each of
whom shall be chosen by the Board of Directors. The compensation of such
officers shall be fixed by the Board. In addition, the Board may appoint and fix
the compensation of, and may authorize any officer or officers to appoint and to
fix the compensation of, such additional officers as the Board or such
authorized officer or officers deem necessary for the proper conduct of the
business of the Company. Any two (2) or more offices may be held by the same
person except that the President shall not also be the Secretary or the
Assistant Secretary of the Company. Each officer shall hold his office for such
term and shall exercise such powers and perform such duties as shall be
determined from time to time by the Board of Directors or by any officer
authorized by the Board to appoint such officer.
Section 2. The President shall be the chief executive officer of the Company,
shall preside at all meetings of stockholders and the Board of Directors, shall
have general and active management of the business of the Company, and shall see
that all orders and resolutions of the Board of Directors are carried into
effect. The President shall have a vote as a member of the Board of Directors
and shall be an ex officio member of all committees appointed by the Board
(other than advisory committees). He shall have the general duties and powers of
supervision and management usually vested in the office of President of a
company. In the absence of the President, his duties shall be performed and his
powers may be exercised by such other Director or officer as shall be designated
by the Board or (failing such designation) by the Executive Committee.
Section 3. The Secretary shall keep a record of all meetings and acts of the
Board and, except as may be otherwise provided herein or in the vote appointing
a committee, of all committees appointed by the Board, and he shall act as the
clerk and shall be the custodian of the records of all meetings of the
stockholders. He shall have such other authority and responsibility and perform
such other duties as may from time to time be delegated to him by the Board.
Section 4. The Treasurer, except as otherwise required by law, shall have charge
and custody of and be responsible for all funds and securities of the Company;
shall keep or cause to be kept full and accurate accounts of receipts and
disbursements in books belonging to the Company; shall be responsible for
3
<PAGE>
receiving and giving receipts for monies paid to the Company from any source;
shall cause all monies and other valuable effects to be deposited in the name
and to the credit of the Company in such depositories as may be designated by
the Board of Directors, and shall perform such other duties as the Board of
Directors or the President may from time to time require.
Section 5. Each officer shall have such further authority and responsibility and
shall perform such further duties as may from time to time be delegated to him
by the Board or the President.
ARTICLE VI
NOTICES
Section 1. Whenever, under the provisions of the statutes or of the Articles of
Agreement and Incorporation or of these By-Laws, notice is required to be given
to any Director or stockholder, it shall not be construed to mean personal
notice, but such notice may be given in writing, by mail, addressed to such
Director or stockholder, at his address as it appears on the records of the
Company, with postage thereon prepaid, and such notice shall be deemed to be
given at the time when the same shall be deposited in the United States mail.
Notice to Directors may also be given by telegram.
Section 2. Whenever any notice whatever is required to be given under the
provisions of the statutes or the Articles of Agreement and Incorporation or
these By-Laws, a waiver thereof in writing signed by the person or persons
entitled to such notice, whether before or after the time stated therein, shall
be deemed equivalent to the giving of such notice. Attendance at any meeting
shall constitute a waiver of notice unless attendance is for the purpose of
objecting to the transaction of business.
ARTICLE VII
VOTING RIGHTS
Section 1. Contract Owners of and Participants under variable annuity contracts
funded in any Company separate account which is registered with the Securities
and Exchange Commission as a unit investment trust under the Investment Company
Act of 1940 shall be granted rights to direct the Company as to the voting of
any shares held in such account of any company registered under that Act as a
management investment company ("fund") in the manner provided below:
A) Group Contracts:
(1) Each registered owner of a Group Contract shall be entitled to give
directions with respect to that number of votes to be cast by the Company
at meetings of the stockholders of the given fund as shall be determined
by the following calculations:
(a) for each Participant under the contract who is in the Accumulation
Period, an amount equal to that portion of the current value of the
Participant's Individual Account attributable to that fund, divided by
the book value (net asset value) of one share of that fund; plus
4
<PAGE>
(b) for each Annuitant under the contract, an amount equal to the
valuation reserve (established pursuant to the insurance laws of
Connecticut) applicable to that portion of the current value of the
Annuitant's Individual Account under the contract attributable to that
fund, divided by the book value (net asset value) of one share of that
fund.
(2) Unless otherwise provided under the terms of the plan under which a
group contract has been issued, every Participant who has acquired a fully
(100%) vested interest in the benefits provided for him under a Group
Contract shall have the right to instruct the Contract Owner with respect
to the number of votes attributable to his Individual Account. All votes
for which the Contract Owner is entitled to give direction but for which
no instructions have been received will be cast by the Company, at the
direction of the Contract Owner, for or against each proposal to be voted
upon in the same proportion as votes for which instructions have been
received by the Contract Owner.
(B) Individual Contracts
Each registered owner of an Individual Contract shall be entitled to give
directions with respect to that number of votes to be cast by the Company at
meetings of the stockholders of the given fund as shall be determined by the
following calculations:
(a) during the Accumulation Period, an amount equal to that portion of the
current value of the contract attributable to the fund, divided by the
book value (net asset value) of one share of that fund; and
(b) during the Annuity Period, an amount equal to the valuation reserve
(established pursuant to the insurance laws of Connecticut) applicable to
that portion of the contract attributable to that fund, divided by the
book value (net asset value) of one share of that fund.
(C) Votes attributable to Contract Owners who do not direct the Company will be
cast by the company in the same proportion as votes for which directions have
been received by the Company.
(D) In determining the number of votes hereunder, fractional votes will be
recognized. Where the value of the contract relates to two or more funds, the
calculation of votes will be performed separately for each fund.
Section 2. Each Contract Owner and Participant entitled to give directions or
instructions to the Company in connection with any meeting of the stockholders
of any fund will receive a notice of that meeting together with appropriate
solicitation materials and a statement of the number of votes as to which he is
entitled to give directions or instructions.
Section 3. For the purposes of determining (a) those Contract Owners and
Participants entitled to notice of any meeting of the stockholders of any fund,
and (b) the number of fund shares for
5
<PAGE>
which each such Contract Owner and Participant may direct or instruct votes
therefor, the Board of Directors shall set a record date which date may be prior
to, as of, or after the date of the Board meeting at which it is set but in no
event earlier than 40 days prior to the date of the stockholders' meeting.
ARTICLE VIII
GENERAL PROVISIONS
Section 1. The Board of Directors, by resolution, shall declare any and all
dividends to be paid by the Company and fix the record date therefor and the
date on which such dividends are to be paid.
Section 2. The fiscal year of the Company shall begin on the first day of
January and end on the thirty-first day of December of each year.
Section 3. The corporate seal shall contain the words "Aetna Life Insurance and
Annuity Company" in a circle, and the words "Hartford, Conn." within the circle.
The corporate seal shall be in the custody of the Secretary and shall be affixed
by him or by his delegate to documents required to be executed under the seal of
the Company, and shall be affixed to such other documents as the Board of
Directors, or officers acting under its authorization, may from time to time
determine necessary or desirable.
ARTICLE IX
AMENDMENTS
These By-Laws may be amended, added to, or repealed by the holders of a majority
of the outstanding shares of stock entitled to vote at any annual or special
meeting of stockholders, or by a majority of the whole Board of Directors as
then constituted at any meeting of the Board, provided that notice of the
proposal to amend, add to, or repeal the By-Laws is included in the notice of
the meeting of stockholders or Directors at which such action takes place.
6
[AETNA LOGO] 151 Farmington Avenue
[AETNA LETTERHEAD] Hartford, CT 06156-3124
October 30, 1997 Julie E. Rockmore
Counsel
Law Division, RE4A
Investments & Financial Services
(860) 273-4686
Fax: (860) 273-8340
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Re: Aetna Life Insurance and Annuity Company and its Variable Annuity Account C
Post-Effective Amendment No. 12 to Registration Statement on Form N-4
Prospectus Title: Group-Deferred Variable Annuity Contracts for use with
Optional Retirement Programs (Section 403(b) and 401(a))
File Nos.: 33-91846* and 811-2513
Dear Sir or Madam:
The undersigned serves as counsel to Aetna Life Insurance and Annuity Company, a
Connecticut life insurance company (the "Company"). It is my understanding that
the Company, as depositor, has registered an indefinite amount of securities
(the "Securities") under the Securities Act of 1933 (the "Securities Act") as
provided in Rule 24f-2 under the Investment Company Act of 1940 (the "Investment
Company Act").
In connection with this opinion, I have reviewed the N-4 Registration Statement,
as amended to the date hereof, and this Post-Effective Amendment No. 12. I have
also examined originals or copies, certified or otherwise identified to my
satisfaction, of such documents, trust records and other instruments I have
deemed necessary or appropriate for the purpose of rendering this opinion. For
purposes of such examination, I have assumed the genuineness of all signatures
on original documents and the conformity to the original of all copies.
I am admitted to practice law in Connecticut, and do not purport to be an expert
on the laws of any other state. My opinion herein as to any other law is based
upon a limited inquiry thereof which I have deemed appropriate under the
circumstances.
- -----------------
* Pursuant to Rule 429(a) under the Securities Act of 1933, Registrant has
included a combined prospectus under this Registration Statement which includes
all the information which would currently be required in a prospectus relating
to the securities covered by the following earlier Registration Statement:
33-75976.
<PAGE>
Based upon the foregoing, and, assuming the Securities are sold in accordance
with the provisions of the prospectus, I am of the opinion that the Securities
being registered will be legally issued and will represent binding obligations
of the Company.
I consent to the filing of this opinion as an exhibit to the Registration
Statement.
Sincerely,
/s/ Julie E. Rockmore
Julie E. Rockmore
Consent of Independent Auditors
The Board of Directors of Aetna Life Insurance and Annuity Company and
Contractholders of Aetna Variable Annuity Account C:
We consent to the incorporation by reference into Registration Statement
(No. 33-91846) on Form N-4 our reports dated February 7, 1997 and February
14, 1997.
/s/ KPMG Peat Marwick LLP
Hartford, Connecticut
October 30, 1997
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000103007
<NAME> Aetna Variable Annuity Account C
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 7,952,811,278
<INVESTMENTS-AT-VALUE> 8,565,202,363
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,565,202,363
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
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<NET-ASSETS> 8,565,202,363
<DIVIDEND-INCOME> 712,854,599
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 93,446,331
<NET-INVESTMENT-INCOME> 619,408,268
<REALIZED-GAINS-CURRENT> 513,568,522
<APPREC-INCREASE-CURRENT> 18,307,901
<NET-CHANGE-FROM-OPS> 1,151,284,691
<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
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<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
