Registration No. 2-30070
Registration No. 811-1705
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 | |
Pre-Effective Amendment No. | |
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|X|
Post-Effective Amendment No. 62
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AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 | |
|X|
Amendment No. 64
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(Check appropriate box or boxes)
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SEPARATE ACCOUNT A
of
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Exact Name of Registrant)
--------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
(Name of Depositor)
1290 Avenue of the Americas, New York, New York 10104
(Address of Depositor's Principal Executive Offices)
Depositor's Telephone Number, including Area Code: (212) 554-1234
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MARY P. BREEN
VICE PRESIDENT AND ASSOCIATE GENERAL COUNSEL
The Equitable Life Assurance Society of the United States
1290 Avenue of the Americas, New York, New York 10104
(Names and Addresses of Agents for Service)
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Please send copies of all communications to:
PETER E. PANARITES, ESQ.
Freedman, Levy, Kroll & Simonds
1050 Connecticut Avenue, N.W., Suite 825
Washington, D.C. 20036
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<PAGE>
Approximate Date of Proposed Public Offering: Continuous
It is proposed that this filing will become effective (check
appropriate box):
|X| Immediately upon filing pursuant to paragraph (b) of Rule 485.
| | On May 1, 1998 pursuant to paragraph (b) of Rule 485.
| | 60 days after filing pursuant to paragraph (a)(1) of Rule 485.
| | On (date) pursuant to paragraph (a)(1) of Rule 485.
| | 75 days after filing pursuant to paragraph (a)(2) of Rule 485.
| | On (date) pursuant to paragraph (a)(3) of Rule 485.
If appropriate, check the following box:
| | This post-effective amendment designates a new effective date for
previously filed post-effective amendment.
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Title of Securities Being Registered:
Units of interest in Separate Account under variable annuity
contracts.
<PAGE>
NOTE
This Post Effective Amendment No. 62 ("PEA") to the Form N-4 Registration
Statement No. 2-30070 ("Registration Statement") of The Equitable Life Assurance
Society of the United States and its Separate Account A is being filed solely
for the purpose of filing electronically in Edgarized form, the exhibits listed
under Part C. All of such exhibits were previously filed with the Registration
Statement in paper format. The PEA does not amend or delete any other part of
the Registration Statement.
<PAGE>
PART C
OTHER INFORMATION
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This Part C is amended solely for the purpose of adding Edgarized Exhibits 1(a),
1(b), 3(a)-(e), 4(a)-(i), 5(a), 5(b), 9(a)-(c), 10(b) and 13(a)-(c) to Item
24(b), and refiling such exhibits electroncially herewith. No amendment or
deletion is made of any of the other information set forth under Part C of the
Registration Statement.
Item 24. Financial Statements and Exhibits
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(b) Exhibits.
The following exhibits are refiled herewith in EDGAR format:
1. (a) Resolutions of the Board of Directors of The
Equitable Life Assurance Society of the United
States ("Equitable") authorizing the
establishment of the Registrant, previously filed
with this Registration Statement No. 2-30070 on
October 27, 1987, refiled electronically herewith.
(b) Resolutions of the Board of Directors of
Equitable dated October 16, 1986 authorizing the
reorganization of Separate Accounts A, C, D, E, J
and K into one continuing separate account,
previously filed with this Registration Statement
No. 2-30070 on April 24, 1995, refiled electronically
herewith.
3. (a) Sales Agreement, dated September 30, 1991 among
Equitable, Separate Account A and Equitable Variable
Life Insurance Company, as principal underwriter for
the Hudson River Trust, previously filed with this
Registration Statement No. 2-30070 on April 24,
1995, refiled electronically herewith.
(b) Sales Agreement, dated as of July 22, 1992, among
Equitable, Separate Account A and Equitable
Variable Life Insurance Company, as principal
underwriter for the Hudson River Trust,
previously filed with this Registration Statement
No. 2-30070 on April 26, 1993, refiled electronically
herewith.
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<PAGE>
(c) Distribution and Servicing Agreement among Equico
Securities, Inc. (now EQ Financial Consultants, Inc.),
Equitable and Equitable Variable Life Insurance
Company, dated as of May 1, 1994, previously filed
with this Registration Statement No. 2-30070 on
February 14, 1995, refiled electronically herewith.
(d) Distribution Agreement dated as of January 1, 1995 by
and between The Hudson River Trust and Equico
Securities, Inc. (now EQ Financial Consultants, Inc.),
previously filed with this Registration Statement No.
2-30070 on April 24, 1995, refiled electronically
herewith.
(e) Sales Agreement, dated as of January 1, 1995, by and
among Equico Securities, Inc. (now EQ Financial
Consultants, Inc.), Equitable, Separate Account A,
Separate Account No. 301 and Separate Account No. 51,
previously filed with this Registration Statement No.
2-30070 on April 24, 1995, refiled electronically
herewith.
4. (a) Form of Group Annuity Contract No. 11929 CI,
amendments and endorsements thereto; Application for
Group Annuity Contract; Form of Certificate No.
119331; Form of Group Annuity Contract 11930 CT,
endorsements and amendments thereto; Form of
Certificate No.11934 T; Form of Group Annuity Contract
No. 11931 CH, endorsements and amendments thereto;
Form of Certificate No. 11935 CH; Form of Group
Annuity Contract No. 11932 CP, endorsements and
amendments thereto, Form of Certificate No. 11936P;
Form of Group Annuity contract No. 11938 C-C,
amendments and endorsements thereto; Form of
Certificate No. 11938C; Form of Group Annuity
Contract No. 11937C NQ, endorsements and amendments
thereto; Form of Certificate No. 11937 NQ and
amendment thereto; and, Form of Certificate No.
11939C NQ-I; previously filed with this Registration
Statement No. 2-30070 on April 24, 1995, refiled
electronically herewith.
(b) Additional amendments to Group Annuity Contracts and
Certificates listed in Exhibit 4(a) above, previously
filed with this Registration Statement File No.
2-30070 on March 2, 1990, refiled electronically
herewith.
(c) Unit Investment Trust Endorsement, previously filed
with this Registration Statement File No. 2-30070 on
December 21, 1987, refiled electronically herewith.
(d) Form of Individual Annuity Contracts No. 92CTRA, No.
92CTRB, No. 92 EDCB, 92HR1A, 92HR1B, 92IRAA, 92IRAB,
92NQCA, 92NQCB, 92PEDB, 92QPIA, 92SEPA, 92SEPB,
92TSAA, 92TSAB, 92TSUA, 92TSUB, 92UTRA, and forms of
Application No. 180-1000 used with individual qualifed
variable annuity contracts and No. 180-1001 used with
individual non-qualifed variable annuity
contracts, previously filed with this Registration
Statement File No. 2-30070 on May 27, 1992,
refiled electronically herewith.
(e) Form of Group Annuity Contract No. AC0000; Form of
Certificate No. 11993AC; Endorsements applicable to
IRA and SEP Certificates, previously filed with this
Registration Statement File No. 2-30070 on April 24,
1995, refiled electronically herewith.
(f) Form of Group Annuity Contract No. 1050-94IC,
previously filed with this Registration Statement No.
2-30070 on April 24, 1995, refiled eletronically
herewith.
(g) Forms of Group Annuity Certificate Nos. 94ICA and
94ICB, previously filed with this Registration
Statement No. 2-30070 on April 24, 1995, refiled
eletronically herewith.
(h) Forms of Endorsement Nos. 94ENIRAI, 94ENNQI and
94ENMVAI to Contract No. 1050-94IC, previously filed
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<PAGE>
with this Registration Statement No. 2-30070 on April
24, 1995, refiled electronically herewith.
(i) Forms of Data Pages to Endorsement Nos. 94ENIRAI,
94ENNQI and 94ENMVAI, previously filed with this
Registration Statement No. 2-30070 on April 24, 1995,
refiled electronically herewith.
5. (a) Forms of Applications and Requests for Enrollment for
EQUI-VEST Qualified and Non-Qualified plans, previously
filed with this Registration Statement, File No. 2-30070
on October 27, 1987, refiled electronically herewith.
(b) Form of application used with the variable annuity
contracts offered under EQUI-VEST PERSONAL RETIREMENT
PROGRAMS, previously filed with this Registration
Statement No. 2-30070 on April 24, 1995, refiled
electronically herewith.
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<PAGE>
9. (a) Opinion and Consent of Herbert P. Shyer, Esq., Executive
Vice President and General Counsel of Equitable, as to
the legality of the securities being registered,
previously filed with this Registration Statement
No. 2-30070 on December 21, 1987, refiled electronically
herewith.
(b) Opinion and Consent of Jonathan E. Gaines, Esq., Vice
President and Associate General Counsel of Equitable, as
to the legality of the securities being registered,
previously filed with this Registration Statement No.
2-30070 on July 17, 1992, refiled electronically herewith.
(c) Opinion and Consent of Jonathan E. Gaines, Esq., Vice
President and Associate General Counsel of Equitable, as
to the legality of the securities being registered,
previously filed with this Registration Statement No.
2-30070 on April 24, 1995, refiled electronically
herewith.
10. (b) Notice concerning regulatory relief, previously filed with
this Registration Statement No. 2-30070 on May 27, 1992,
refiled electronically herewith.
13. (a) Schedules for computation of Money Market Fund Yield
quotations, previously filed with this Registration
Statement No. 2-30070 on April 28, 1994, refiled
electronically herewith.
(b) Formulae for Determining "30-Day Yields" for Equi-Vest
Series Contracts Invested In One Investment Fund
(Intermediate Government Securities, Quality Bond or High
Yield) of The Hudson River Trust, previously filed with
this Registration Statement No. 2-30070 on April 24, 1995,
refiled electronically herewith.
(c) Separate Account A Performance Values Worksheets One-Year
Standardized Performance, previously filed with this
Registration Statement No. 2-30070 on April 28, 1994,
refiled electronically herewith.
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<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Registrant certifies that it meets the requirements of
Securities Act Rule 485(b) for the effectiveness of this amendment to the
Registration Statement and has duly caused this amendment to the Registration
Statement to be signed on its behalf, in the City and State of New York, on the
10th day of July, 1998.
SEPARATE ACCOUNT A OF
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
(Registrant)
By: The Equitable Life Assurance
Society of the United States
By: /s/ Naomi Weinstein
-------------------------
Naomi Weinstein
Vice President
The Equitable Life Assurance
Society of the United States
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Depositor has duly caused this Registration Statement or
amendment thereto to be signed on its behalf, in the City and State of New York,
on the 10th day of July, 1998.
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
(Depositor)
By: /s/ Naomi Weinstein
------------------------
Naomi Weintein
Vice President
The Equitable Life Assurance
Society of the United States
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, this amendment to the Registration Statement or amendment thereto
has been signed by the following persons in the capacities and on the date
indicated:
PRINCIPAL EXECUTIVE OFFICERS:
Edward D. Miller Chairman of the Board,
Chief Executive Officer and Director
Michael Hegarty President, Chief Operating Officer
and Director
PRINCIPAL FINANCIAL OFFICER:
Stanley B. Tulin Vice Chairman of the Board,
Chief Financial Officer and Director
PRINCIPAL ACCOUNTING OFFICER:
Senior Vice President and Controller
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Alvin H. Fenichel
July 10, 1998
DIRECTORS:
Francoise Colloc'h Donald J. Greene George T. Lowy
Henri de Castries John T. Hartley Edward D. Miller
Joseph L. Dionne John H.F. Haskell, Jr. Didier Pineau-Valencienne
Denis Duverne Michael Hegarty George J. Sella, Jr.
William T. Esrey Mary R. (Nina) Henderson Stanley B. Tulin
Jean-Rene Fourtou W. Edwin Jarmain Dave H. Williams
Norman C. Francis G. Donald Johnston, Jr.
By: /s/ Naomi Weinstein
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Naomi Weinstein
Attorney-in-Fact
July 10, 1998
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EXHIBIT INDEX
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<TABLE>
<CAPTION>
EXHIBIT NO. TAG VALUE
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<S> <C> <C>
1(a) Resolutions of the Board of Directors of The EX-99.1a RESOLUTIONS
Equitable Life Assurance Society of the United
States ("Equitable") authorizing the
establishment of the Registrant.
1(b) Resolutions of the Board of Directors of EX-99.1b RESOLUTIONS
Equitable dated October 16, 1986 authorizing the
reorganization of Separate Accounts A, C, D, E, J
and K into one continuing separate account.
3(a) Sales Agreement dated September 30, 1991 among Equitable, EX-99.3a SALES AGREE
Separate Account A and Equitable Variable Life
Insurance Company, as principal underwriter for the
Hudson River Trust.
3(b) Sales Agreement, dated as of July 22, 1992, among EX-99.3b SALES AGREE
Equitable, Separate Account A and Equitable
Variable Life Insurance Company, as principal
underwriter for the Hudson River Trust.
3(c) Distribution and Servicing Agreement among Equico EX-99.3c DIST AGREE
Securities, Inc. (now EQ Financial Consultants, Inc.),
Equitable and Equitable Variable Life Insurance
Company, dated as of May 1, 1994.
3(d) Distribution Agreement dated as of January 1, 1995 by EX-99.3d DIST AGREE
and between The Hudson River Trust and Equico
Securities, Inc. (now EQ Financial Consultants, Inc.).
3(e) Sales Agreement, dated as of January 1, 1995, by and EX-99.3e SALES AGREE
among Equico Securities, Inc. (now EQ Financial
Consultants, Inc.), Equitable, Separate Account A,
Separate Account No. 301 and Separate Account No. 51.
4(a) Form of Group Annuity Contract No. 11929 CI, EX-99.4a CONTRACTS
amendments and endorsements thereto; Application for
Group Annuity Contract; Form of Certificate No.
119331; Form of Group Annuity Contract 11930 CT,
endorsements and amendments thereto; Form of
Certificate No.11934 T; Form of Group Annuity Contract
No. 11931 CH, endorsements and amendments thereto;
Form of Certificate No. 11935 CH; Form of Group
Annuity Contract No. 11932 CP, endorsements and
amendments thereto, From of Certificate No. 11936P;
Form of Group Annuity contract No. 11938 C-C,
amendments and endorsements thereto; Form of
Certificate No. 11938C; Form of Group Annuity
Contract No. 11937C NQ, endorsements and amendments
thereto; Form of Certificate No. 11937 NQ and
amendment thereto; and, Form of Certificate No.
11939C NQ-I.
4(b) Additional amendments to Group Annuity Contracts and EX-99.4b AMENDMENTS
Certificates listed in Exhibit 4(a) above.
4(c) Unit Investment Trust Endorsement. EX-99.4c ENDORSEMENT
4(d) Form of Individual Annuity Contracts No. 92CTRA, No. EX-99.4d CONTRACTS
92CTRB, No. 92 EDCB, 92HR1A, 92HR1B, 92IRAA, 92IRAB,
92NQCA, 92NQCB, 92PEDB, 92QPIA, 92SEPA, 92SEPB,
92TSAA, 92TSAB, 92TSUA, 92TSUB, 92UTRA, and forms of
Application No. 180-1000 used with individual qualifed
variable annuity contracts and No. 180-1001 used with
individual non-qualifed variable annuity
contracts.
4(e) Form of Group Annuity Contract No. AC0000; Form of EX-99.4e CONTRACTS
Certificate No. 11993AC; Endorsements applicable to
IRA and SEP Certificates.
4(f) Form of group annuity contract no. 1050-94IC. EX-99.4f CONTRACTS
4(g) Forms of group annuity certificate nos. 94ICA and EX-99.4g CERTIFICATE
94ICB.
4(h) Forms of endorsement nos. 94ENIRAI, 94ENNQI and EX-99.4h CERTIFICATE
94ENMVAI to contract no. 1050-94IC
4(i) Forms of data pages to endorsement nos. 94ENIRAI, EX-99.4i DATA PAGES
94ENNQI and 94ENMVAI.
5(a) Forms of Applications and Requests for Enrollment for EX-99.5a APPLICATION
EQUI-VEST Qualified and Non-Qualified Plans.
5(b) Form of application used with the variable annuity EX-99.5b APPLICATION
contracts offered under EQUI-VEST PERSONAL RETIREMENT
PROGRAMS.
9(a) Opinion and Consent of Herbert P. Shyer, Esq., Executive EX-99.9a OPINION
Vice President and General Counsel of Equitable, as to
the legality of the securities being registered.
9(b) Opinion and Consent of Jonathan E. Gaines, Esq., Vice EX-99.9b OPINION
President and Associate General Counsel of Equitable, as
to the legality of the securities being registered.
9(c) Opinion and Consent of Jonathan E. Gaines, Esq., Vice EX-99.9c OPINION
President and Associate General Counsel of Equitable, as
to the legality of the securities being registered.
10(b) Notice concerning regulatory relief. EX-99.10b NOTICE
13(a) Schedules for computation of Money Market Fund Yield EX-99.13a SCHEDULES
quotations.
13(b) Formulae for Determining "30-Day Yields" for EQUI-VEST EX-99.13b FORMULAE
Series Contracts Invested In One Investment Fund
(Intermediate Government Securities, Quality Bond or High
Yield) of The Hudson River Trust.
13(c) Separate Account A Performance Values Worksheets One-Year EX-99.13c PERF VALUE
Standardized Performance.
</TABLE>
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OFFICIAL NOTICE
Res. No. 35-68 adopted by
Board of Directors
July 18, 1968
To: Messrs. McVity (3), Kernan, Sommers, Beesley, Erway, Smith, Secretary
Keehn, Miller, Hering, Stocker and Ferguson, Whitenight
RESOLUTION RE INDIVIDUAL VARIABLE ANNUITIES -
ESTABLISHMENT OF SEPARATE ACCOUNT A AND REGISTRATION THEREOF
UNDER THE INVESTMENT COMPANY ACT OF 1940, ETC.
---------------------------------
RESOLVED, That, pursuant to section 227 of the Insurance Law of
the State of New York, authority is hereby given to establish a separate
account designated "Separate Account A";
FURTHER RESOLVED, That Separate Account A shall constitute a
funding medium in connection with such agreements issued and administered
by the Society as the Society may designate and in furtherance thereof
Separate Account A is hereby empowered to:
(a) received, hold, invest and reinvest amounts arising
from (i) amounts received by the Society pursuant to such
agreements, (ii) such other assets of the Society as the Society may
deem necessary to establish Separate Account A or to support the
operation of such agreements, and (iii) the income and gains
arising from the foregoing;
(b) to the extent required by the Investment Company Act
of 1940, register under such Act and make application for
exemption from such provisions thereof as may appear to be
necessary or desirable;
(c) to the extent required by the Securities Act of 1933,
effect one or more registrations thereunder and in connection with
such registrations file one or more registration statements
thereunder, including any documents required as a part thereof;
(d) provide for investment management services;
(e) provide for the sale of agreements issued and
administered by the Society, to the extent such agreements provide
for allocation of amounts to Separate Account A;
(f) select an independent public accountant to audit the
books and records of Separate Account A; and
(g) perform such additional functions and take such
additional action as may be necessary or desirable to carry out
the foregoing and the intent and purpose thereof or as from time
to time may be authorized by or pursuant to a resolution of the
Board of Directors or any committee thereof;
<PAGE>
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FURTHER RESOLVED, That, pursuant to section 227(6) of the
Insurance Law of the State of New York, Separate Account A shall have a
committee designated the "Separate Account A Committee" ("SAA Committee")
initially to consist of five members to be designated by the Chairman of
the Board, the Vice-Chairman of the Board, or the President of the Society,
each of whom shall serve until the first meeting of persons having voting
rights in respect of Separate Account A, as provided by its Rules and
Regulations to be hereafter adopted or approved, and until his successor
shall qualify, and thereafter the members of the SAA Committee shall be
elected by a plurality of the votes cast by such persons having such voting
rights;
FURTHER RESOLVED, That, pursuant to section 5.5 of the By-Laws of
the Society, as amended, in consideration of each member's agreement to
serve as a member of the SAA Committee at the Society's request and because
of the Society's interest in Separate Account A, the Society shall
indemnify, to the extent permitted by the law of the State of New York and
subject to all applicable requirements thereof, any person made or
threatened to be made a party to any action or proceeding, whether civil or
criminal, by reason of the fact that he, his testator or intestate is or
was a member of the SAA Committee, provided that, unless and until renewed
by resolution of the Board of directors, such indemnification shall be in
respect of action taken or omitted only during the period ending with the
first meeting of persons having voting rights in respect of Separate
Account A;
FURTHER RESOLVED, That the Society shall offer to provide to
Separate Account A services relating to investment management and sales at
rates of compensation for such services as may be approved by the officers
of the Society; and the offices of the Society and each of them is hereby
authorized to execute all agreements on behalf of the Society with respect
thereto containing such provisions as he may deem necessary or appropriate,
including such provisions as shall satisfy the requirements of the
Investment Company Act of 1940 and the regulations issued thereunder;
FURTHER RESOLVED, That, in cooperation with the SAA Committee,
authority is hereby given to effect such registrations with the Securities
and Exchange Commission under the Securities Act of 1933, with respect to
any agreements providing for allocation of amounts to Separate Account A
and related units or interests in Separate Account A which the Society from
time to time may propose to offer in connection with plans and agreements
qualified under sections 401 or 403(a) or purchased under section 403(b) of
the Internal Revenue Code, as the officers of the Society may deem
necessary or appropriate;
FURTHER RESOLVED, That, in connection with such registrations, the
officers of the Society and each of them is hereby authorized, with the
assistance of the Society's special S.E.C. counsel, Freedman, Levy, Kroll &
Simonds, and the Society's independent public accountants, Haskins & Sells,
to prepare, execute and file with the Securities and Exchange Commission,
in the name and on behalf of the Society, such registration statements
under the Securities Act of 1933, including prospectuses, supplements,
exhibits and other documents relating thereto, and amendments to the
foregoing, in such form as the officer executing the same may deem
necessary or appropriate;
<PAGE>
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FURTHER RESOLVED, That Davidson Sommers is hereby appointed as
agent for service under any such registration statement duly authorized to
receive communications and notices from the Securities and Exchange
Commission with respect to the registration statement;
FURTHER RESOLVED, That each officer and each director of the
Society who is or may be required to execute any such registration
statement or any amendment thereof, whether on behalf of the Society or as
an officer or director thereof or by attesting the seal of the Society or
otherwise, is hereby authorized to execute a power of attorney appointing
J. Henry Smith and Davidson Sommers, and each of them, severally, his true
and lawful attorney and agent, with full power of substitution to each, to
execute in his name, place and stead and in any such capacity, said
registration statement and all amendments thereto, and all instruments
necessary or appropriate in connection therewith, to attest the seal of the
Society thereon, and to file the same with the Securities and Exchange
Commission, each of said attorneys and agents, and his or their
substitutes, to be empowered to act with or without the others or other,
and to have full power and authority to do or cause to be done in the name
and on behalf of the Society and said officers and directors, or any one or
more of them, every act and thing with respect thereto as fully and to all
intents and purposes as any such officer or director might or could do in
person;
FURTHER RESOLVED, That, in cooperation with the SAA Committee, the
officers of the Society and each of them is hereby authorized, with the
assistance of counsel and accountants for the Society, to prepare, execute
and file with the Securities and Exchange Commission an application for an
order under section 6(c) of the Investment Company Act of 1940 for such
exemptions from the provisions of such Act as he may deem necessary or
desirable;
FURTHER RESOLVED, That the officers of the Society and each of
them is hereby authorized, with the assistance of counsel and accountants
for the Society, to effect, in the name and on behalf of the Society, all
such registrations, filings and qualifications under the Securities
Exchange Act of 1934 as a broker or dealer and under Blue Sky or Securities
laws and under Insurance Securities laws of such states and other
jurisdictions as he may deem necessary or appropriate, with respect to the
Society and with respect to the Society's agreements providing for
allocation of amounts to Separate Account A and related units or interests
in Separate Account A in connection with plans and agreements qualified
under sections 401 or 403(a) or purchased under section 403(b) of the
Internal Revenue Code; such authorization to include registration, filing
and qualification of the Society and of said agreements and related units
or interests, as well as registration, filing and qualification of
officers, employees and agents of the Society as brokers, dealers, agents,
salesmen, or otherwise; and such authorization shall also include, in
connection therewith, authority to prepare, execute, acknowledge and file
all such applications, applications for exemptions, certificates,
affidavits, covenants, consents to service of process and other instruments
and to take all such action as the officer executing the same or taking
such action may deem necessary or desirable;
<PAGE>
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FURTHER RESOLVED, That the Chairman of the Board, the
Vice-Chairman of the Board, and the President and each of them is hereby
authorized to change the designation of Separate account A and the Separate
Account A Committee, or either of them, to such other designation or
designations as he may deem necessary or desirable; and
FURTHER RESOLVED, That the officers of the Society and each of
them is hereby authorized to execute and deliver all such documents and
papers and to do or cause to be done all such acts and things as he may
deem necessary or desirable to carry out the foregoing resolutions and the
intent and purpose thereof.
JOAN B. MIASTKOWSKI
Assistant Vice President [Equitable Logo]
and Assistant Secretary
I, JOAN B. MIASTKOWSKI, ASSISTANT VICE PRESIDENT AND ASSISTANT
SECRETARY of THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES, do
hereby certify that attached hereto marked "EXHIBIT A" is a true and correct
copy of Resolution No. 86-86, duly adopted by the Board of Directors at a
meeting held on October 16, 1986, at which a quorum was present and acting
throughout; that said resolution has not been amended, annulled, rescinded, or
revoked; and that said resolution is now in full force and effect.
IN WITNESS WHEREOF, I have hereunto affixed my signature and the Seal
of said Society this 26th day of May, 1987.
/s/ Joan B. Miastkowski
-------------------------------
Assistant Vice President
and Assistant Secretary
EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
787 Seventh Avenue, New York,
N.Y. 10019
<PAGE>
Exhibit A
PROPOSED RESOLUTIONS RE
REORGANIZATION OF SEPARATE ACCOUNTS A, C, D, E, J and K
-------------------------------------------------------
WHEREAS, it has been recommended (i) that Equitable reorganize Separate
Accounts A, C, D, E, J and K (the "Separate Accounts") into one separate account
organized as a unit investment trust ("UIT") with an underlying mutual fund (the
"Fund") in the form of a Massachusetts Business Trust, (ii) that Equitable's
Equivest and Equiplan new and existing group deferred variable annuity contracts
for the IRA, TSA and other tax-favored (qualified or non-qualified) markets (the
"Contracts") currently being funded through the Separate Accounts be funded
through the UIT, and (iii) that Equitable continue to perform administrative,
recordkeeping and, along with Equitable Investment Management Corporation,
investment advisory functions for the Contracts and the UIT, all as more fully
set forth in the memorandum dated October 3, 1986, from Executive Vice President
Barth to Senior Executive Vice President and Chief Operating Officer Walsh
submitted to and filed with the records of this meeting; and
WHEREAS, it is necessary or desirable to enter into, amend or terminate
various agreements among Equitable, the Separate Accounts, the Fund, and various
other parties, pursuant to and contingent upon the proposed reorganization;
NOW, THEREFORE, BE IT
RESOLVED, That the proposed reorganization of the Separate Accounts
(the "reorganization"), as set forth in the memorandum of Executive Vice
President Barth, is hereby authorized and approved; and
FURTHER RESOLVED, That all matters contemplated by the reorganization,
including but not limited to:
1) the combination of the Separate Accounts into one separate account
organized as a UIT,
2) organization of the Fund as a Massachusetts Business Trust and the
investment of the assets of the UIT in the Fund, and
3) the retention of administrative, recordkeeping and investment
responsibilities for the Contracts and the Fund by Equitable,
are hereby authorized and approved, subject to any necessary regulatory and
participant approval of the reorganization; and
FURTHER RESOLVED, That all Committees of the Separate Accounts will be
dissolved, effective with and contingent upon the reorganization; and
<PAGE>
-2-
FURTHER RESOLVED, That Deloitte Haskins & Sells shall continue as
independent auditors of the UIT; and
FURTHER RESOLVED, That authority is hereby granted to seek all
necessary regulatory approvals including, without limitation, the amendment of
the registration statements of the Separate Accounts and the filing of exemptive
applications and amendments thereto, and to take all further necessary or
desirable actions in connection with the reorganization and the organization and
registration of the Fund, and the retention of administration of the Contracts
by Equitable; and
FURTHER RESOLVED, That any Executive Vice President is hereby
authorized and directed, on behalf of Equitable, as initial shareholder of the
Fund, in connection with the Initial Special Shareholder's Meeting of the Fund,
to vote shares held by Equitable in the Fund, in accordance with instructions
given by the participants executing the proxies solicited by the Separate
Account Committees and, to the extent instructions are not given, to vote the
proxies as follows:
1) FOR the election of the members of the Board of Directors or
trustees of the fund, the number of members to be 7;
2) FOR the combination of Separate Account C with and into Separate
Account A, and the modernization of investment policies generally,
including addition of provisions for hedging;
3) FOR the selection of Deloitte Haskins & Sells as the independent
auditors of the fund for the year 1987; and
4) FOR approval of the Investment Advisory Agreement of the Fund as
described in the Proxy Statement; and
FURTHER RESOLVED, That any Executive Vice President is authorized, from
time to time, to vote the shares held by Equitable in the Fund, with or, unless
required by law, without participant instructions; and
FURTHER RESOLVED, That amendment or termination of the custody
agreements between the Separate Accounts and their custodians, the Investment
Management Agreements among Equitable, the Separate Accounts and Equitable
Investment Management Corporation and the Sales and Administration Agreements
between Equitable and the Separate Accounts, and/or the entry into new similar
agreements with substantially similar terms among the custodians, Equitable, the
UIT, Equitable Investment Management Corporation and the Fund, as appropriate,
contingent upon the reorganization, is hereby authorized and approved; and
FURTHER RESOLVED, That the entry into Servicing Agreements between the
Equitable and the UIT and the Fund, as appropriate, contingent upon the
reorganization and subject to any necessary approval of the participants, is
hereby authorized and approved; and
FURTHER RESOLVED, That authority is hereby granted to take all actions,
necessary or desirable to operate the UIT, including without limitation, the
creation of new divisions and the modification or elimination of divisions, and
to administer the Contracts.
SALES AGREEMENT
AGREEMENT, dated as of September 30,1991, by and among Equitable
Variable Life Insurance Company ("Equitable Variable"), The Equitable Life
Assurance Society of the United States, ("Equitable"), and Equitable's Separate
Account A ( the "Separate Account").
WITNESSETH:
WHEREAS, Equitable Variable is a principal underwriter of The
Hudson River Trust ( the "Trust"), a series mutual fund whose shareholders are
separate accounts ("Eligible Separate Accounts") of insurance companies
("Participating Insurance Companies"), pursuant to a Distribution Agreement
dated as of September 30, 1991 ("Distribution Agreement");
WHEREAS, such Participating Insurance Companies issue, among other
products, variable life insurance and annuity products ("Variable Products")
whose net premiums, contributions or other considerations are allocated to
Eligible Separate Accounts for investment in the Trust, and shares of the Trust
are not sold except in connection with such Variable Products;
<PAGE>
- 2 -
WHEREAS, the Trust is registered as an open-end investment company
under the Investment Company Act of 1940 ( the "1940 Act");
WHEREAS, the Board of Trustees of the Trust may, in its sole
discretion, determine that certain portfolios shall be available only to certain
types of Variable Products or to a single insurer and its affiliates;
WHEREAS, Equitable issues Variable Products, whose net premiums are
allocated to the Separate Account, and which are eligible for investment in the
Trust's portfolios;
WHEREAS, Equitable will distribute the Variable Products, either
directly or indirectly through one or more affiliated or nonaffiliated
broker-dealers with whom Equitable has selling agreements;
WHEREAS, Equitable and Equitable Variable are each registered as a
broker-dealer under the Securities Exchange Act of 1934 ( the "1934 Act") and
each is a member of the National Association of Securities Dealers, Inc. (the
"NASD");
WHEREAS, Equitable Variable and Equitable wish to define and describe
the conditions under which shares of the Trust will be made available for
investment by the Separate Account.
<PAGE>
- 3 -
NOW THEREFORE, Equitable Variable, Equitable and the Separate Account
hereby agree as follows:
1. The Board of Trustees of the Trust has adopted a Policy on Conflicts
(the "Policy"). This Agreement shall be subject to the provisions of the
Policy, the terms of which shall be incorporated herein by reference, made a
part hereof and controlling. The Policy may be amended or superseded, without
prior notice, and this agreement shall be deemed amended to the extent the
Policy is amended or superseded. Equitable and the Separate Account each
represent and warrant that it will act in a manner consistent with such Policy
as so set forth and as it may be amended or superseded, so long as it owns any
Trust shares. This provision shall survive the termination of this Agreement.
2. Equitable Variable will make available to the Separate Account
shares of the Trust's portfolios in connection with Variable Products funded by
the Separate Account only as set forth on Schedule A hereto. Schedule A may be
modified from time to time by written agreement of the parties.
3. Purchases and redemptions of shares will be at net asset value for
the appropriate portfolio, computed as set forth in the most recent Trust
prospectus and Statement of Additional Information (respectively, "Trust
Prospectus" and "SAI") and any supplements thereto, and shall be submitted by
Equitable to the
<PAGE>
- 4 -
Trust's transfer agent pursuant to procedures and in accordance with payment
provisions adopted by the parties from time to time.
Trust shares may not be sold or transferred except to an Eligible
Separate Account and only in accordance with Schedule A.
4. (a) In good faith and as soon as practicable, Equitable Variable
will provide at Trust expense camera ready copy of the current Prospectus and
SAI and any supplements thereto for printing and distribution by Equitable with
the prospectus for the Variable Products. Equitable Variable will also provide
camera ready copy of Trust proxy materials and semi-annual reports, and any
supplements thereto. Equitable Variable will use its best efforts to coordinate
with Equitable and to provide notice of anticipated filings or supplements.
Equitable may alter the form of the prospectus, SAI, semi-annual reports, proxy
statements or other Trust documents, with the prior approval of the Trust's
officers. Equitable shall bear all costs associated with such alteration of
form. Equitable is not authorized (i) to give any information or make any
representations concerning the Trust, its shares or operations except those
contained in the most recent Trust Prospectus and SAI and any supplements
thereto, or (ii) to use any description of the Trust in any sales literature or
advertising (including brochures, letters, illustrations and other similar
materials, whether transmitted directly to potential purchasers of Variable
<PAGE>
- 5 -
Products or published in print or audio-visual media), except in either case as
Equitable Variable or officers of the Trust may authorize in advance, which
authorization will not be unreasonably withheld or delayed.
Equitable shall indemnify and hold harmless Equitable Variable
from any and all losses, claims, damages or liabilities (or actions in respect
thereof) to which Equitable Variable may be subject, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
result from negligent, improper, fraudulent or unauthorized acts or omissions by
Equitable, its employees, agents or representatives, including but not limited
to improper solicitation of applications for Variable Products.
(b) Equitable Variable will indemnify and hold harmless
Equitable and the Separate Account against any losses, claims, damages or
liabilities, to which Equitable or the Separate Account may become subject,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (i) any untrue statement or alleged
untrue statement of any material fact contained in the Trust Prospectus and/or
SAI or any supplements thereto, (ii) the omission or alleged omission to state
any material fact required to be stated in the Trust Prospectus and/or SAI or
any supplements thereto or necessary to make the statements therein not
misleading, or (iii) other misconduct or negligence of
<PAGE>
- 6 -
Equitable Variable in its capacity as a distributor of the Trust; and will
reimburse Equitable or the Separate Account for any legal or other expenses
reasonably incurred by it in connection with investigating or defending against
such loss, claim, damage, liability or action; provided, however, that Equitable
Variable shall not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in the Trust
Prospectus and/or SAI or any such supplement in good faith reliance upon and in
conformity with written information furnished by Equitable specifically for use
in the preparation thereof.
Equitable Variable shall not indemnify Equitable or the Separate
Account for any action where an applicant for the Variable Products or a
policyholder was not furnished or sent or given, at or prior to written
confirmation of the sale of the Variable Products and at such later times as
required by state or federal securities laws, a copy of the prospectus relating
to the Variable Products together with the Trust Prospectus, any supplements to
the Trust Prospectus Equitable Variable may furnish to Equitable and, if
requested by the applicant from Equitable or required by applicable law, the
Trust SAI and any supplements thereto and, as required by applicable law, the
Trust's annual and semi-annual reports, other required reports and proxy
statements.
<PAGE>
- 7 -
5. This Agreement shall terminate automatically if it shall be
assigned. The Agreement shall also terminate automatically if the Distribution
Agreement shall terminate.
6. This Agreement may not be terminated by any party at any time prior
to April 1, 1992; provided, however, that Equitable Variable may terminate this
Agreement prior to April 1, 1992, without the payment of any penalty, if
Equitable Variable shall cease to be the principal underwriter of the Trust
pursuant to the Distribution Agreement. If Equitable Variable is notified that
the Distribution Agreement will be terminated and that it shall cease to be the
principal underwriter of the Trust, Equitable Variable shall immediately notify
the other parties in writing of such termination, and this Agreement shall
continue in effect until the effective date of the termination of the
Distribution Agreement. This Agreement may be terminated by any party at any
time after March 31, 1992, on one hundred eighty days' written notice to the
other parties, without the payment of any penalty.
7. This Agreement shall be subject to the provisions of the 1940 Act,
the 1934 Act and the Securities Act of 1933 and the rules, regulations, and
rulings thereunder and of the NASD, from time to time in effect, including such
exemptions from the 1940 Act and no action positions as the Securities and
Exchange Commission or its staff may grant, and the terms hereof shall be
interpreted and construed in accordance therewith. Without
<PAGE>
- 8 -
limiting the generality of the foregoing, the term "assigned" shall not include
any transaction exempt from section 15 (b)(2) of the Investment Company Act by
order of the Securities and Exchange Commission or any transaction as to which
the staff of the Securities and Exchange Commission has taken a no action
position.
Equitable shall, in connection with its obligations hereunder,
comply with all laws and regulations applicable thereto, whether Federal or
state, and whether relating to insurance, securities or other general areas,
including but not limited to the record keeping and sales supervision
requirements of such laws and regulations.
Equitable Variable shall immediately notify Equitable of the
issuance by any regulatory body of any stop order with respect to the Trust
Prospectus or SAI or the initiation of any proceeding for that purpose or for
any other purpose relating to the registration or an offering of shares of the
Trust and of any other action or circumstances that may prevent the lawful offer
or sale of shares of the Trust in any state or jurisdiction.
8. Equitable and Equitable Variable shall submit to all regulatory and
administrative bodies having jurisdiction over the operations of Equitable,
Equitable Variable or the Trust, present or future, any information, reports or
other material
<PAGE>
- 9 -
which any such body by reason of this Agreement may request or require as
authorized by applicable laws or regulations.
Equitable Variable shall keep confidential any information about
Equitable's Variable Products or policyowners obtained pursuant to this
Agreement and shall disclose such information only if Equitable has authorized
such disclosure, or if such disclosure is required by state or Federal
regulatory bodies, as authorized by applicable law. Equitable Variable will
notify Equitable of disclosures required by regulatory bodies as soon as
possible.
Equitable Variable agrees that all records and other data
pertaining to the Variable Products are the exclusive property of Equitable and
that any such records and other data, whether maintained in written or
electronic format, shall be furnished to Equitable by Equitable Variable upon
termination of this Agreement for any reason whatsoever. This shall not preclude
Equitable Variable from keeping copies of such data or records for its own files
subject to the provisions of this paragraph.
9. Equitable retains the ultimate right of control over, and
responsibility for, marketing the Variable Products.
<PAGE>
- 10 -
10. Equitable Variable represents that neither Equitable Variable
nor any person employed in any material connection with respect to the services
provided pursuant to this Agreement:
(a) Within the last 10 years has been convicted of any felony
or misdemeanor arising out of conduct involving embezzlement, fraudulent
conversion, or misappropriation of funds or securities, or involving violations
of Secs. 1341, 1342, or 1343 of Title 18, United States Code; or
(b) Within the last 10 years has been found by any state
regulatory authority to have violated or has acknowledged violation of any
provision of any state insurance law involving fraud, deceit or knowing
misrepresentation; or
(c) Within the last 10 years has been found by any federal or
state regulatory authorities to have violated or have acknowledged violation of
any provision of federal or state securities laws involving fraud, deceit or
knowing misrepresentation.
11. Equitable Variable and Equitable each represent that no
commission or other fee shall be charged or paid to any person or entity in
connection with the sale or purchase of the Trust's shares to or from the
Separate Account, other than regular salary or wages.
<PAGE>
- 11 -
12. This Agreement may be executed in multiple counterparts, each
of which shall be deemed an original, but all of which shall constitute one and
the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.
EQUITABLE VARIABLE LIFE
INSURANCE COMPANY
Attest:
/s/ Linda Galasso By: /s/ Mel H. Gregory
- ------------------------- -----------------------------
President
THE EQUITABLE LIFE INSURANCE
SOCIETY OF THE UNITED STATES
Attest:
/s/ Linda Galasso By: /s/ Gordon Dinsmore, Jr.
- ------------------------- ----------------------------
SEPARATE ACCOUNT A
By: THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
as depositor
Attest:
/s/ Linda Galasso By: /s/ Gordon Dinsmore, Jr.
- ------------------------- ----------------------------
0334i
<PAGE>
- 12 -
SCHEDULE A
All Hudson River Trust Portfolios are available to the Separate
Account for premiums and contributions associated with all variable products
funded by the Separate Account.
SALES AGREEMENT
AGREEMENT, dated as of July 22, 1992, by and among Equitable
Variable Life Insurance Company ("Equitable Variable"), The Equitable Life
Assurance Society of the United States, ("Equitable"), and Equitable's Separate
Account A (the "Separate Account").
WITNESSETH:
WHEREAS, Equitable Variable is a principal underwriter of The
Hudson River Trust (the "Trust"), a series mutual fund whose shareholders are
separate accounts ("Eligible Separate Accounts") of insurance companies
("Participating Insurance Companies"), pursuant to a Distribution Agreement
dated as of July 22, 1992 ("Distribution Agreement");
WHEREAS, such Participating Insurance Companies issue, among other
products, variable life insurance and annuity products ("Variable Products")
whose net premiums, contributions or other considerations are allocated to
Eligible Separate Accounts for investment in the Trust, and shares of the Trust
are not sold except in connection with such Variable Products;
<PAGE>
- 2 -
WHEREAS, the Trust is registered as an open-end investment company
under the Investment Company Act of 1940 ( the "1940 Act");
WHEREAS, the Board of Trustees of the Trust may, in its sole
discretion, determine that certain portfolios shall be available only to certain
types of Variable Products or to a single insurer and its affiliates;
WHEREAS, Equitable issues Variable Products, whose net premiums are
allocated to the Separate Account, and which are eligible for investment in the
Trust's portfolios;
WHEREAS, Equitable will distribute the Variable Products, either
directly or indirectly through one or more affiliated or nonaffiliated
broker-dealers with whom Equitable has selling agreements;
WHEREAS, Equitable and Equitable Variable are each registered as a
broker-dealer under the Securities Exchange Act of 1934 ( the "1934 Act") and
each is a member of the National Association of Securities Dealers, Inc. (the
"NASD");
WHEREAS, Equitable Variable and Equitable wish to define and describe
the conditions under which shares of the Trust will be made available for
investment by the Separate Account.
<PAGE>
- 3 -
NOW THEREFORE, Equitable Variable, Equitable and the Separate Account
hereby agree as follows:
1. The Board of Trustees of the Trust has adopted a Policy on Conflicts
(the "Policy"). This Agreement shall be subject to the provisions of the
Policy, the terms of which shall be incorporated herein by reference, made a
part hereof and controlling. The Policy may be amended or superseded, without
prior notice, and this agreement shall be deemed amended to the extent the
Policy is amended or superseded. Equitable and the Separate Account each
represent and warrant that it will act in a manner consistent with such Policy
as so set forth and as it may be amended or superseded, so long as it owns any
Trust shares. This provision shall survive the termination of this Agreement.
2. Equitable Variable will make available to the Separate Account
shares of the Trust's portfolios in connection with Variable Products funded by
the Separate Account only as set forth on Schedule A hereto. Schedule A may be
modified from time to time by written agreement of the parties.
3. Purchases and redemptions of shares will be at net asset value for
the appropriate portfolio, computed as set forth in the most recent Trust
prospectus and Statement of Additional Information (respectively, "Trust
Prospectus" and "SAI") and any supplements thereto, and shall be submitted by
Equitable to the
<PAGE>
- 4 -
Trust's transfer agent pursuant to procedures and in accordance with payment
provisions adopted by the parties from time to time.
Trust shares may not be sold or transferred except to an Eligible
Separate Account and only in accordance with Schedule A.
4. (a) In good faith and as soon as practicable, Equitable Variable
will provide at Trust expense camera ready copy of the current Prospectus and
SAI and any supplements thereto for printing and distribution by Equitable with
the prospectus for the Variable Products. Equitable Variable will also provide
camera ready copy of Trust proxy materials and semi-annual reports, and any
supplements thereto. Equitable Variable will use its best efforts to coordinate
with Equitable and to provide notice of anticipated filings or supplements.
Equitable may alter the form of the prospectus, SAI, semi-annual reports, proxy
statements or other Trust documents, with the prior approval of the Trust's
officers. Equitable shall bear all costs associated with such alteration of
form. Equitable is not authorized (i) to give any information or make any
representations concerning the Trust, its shares or operations except those
contained in the most recent Trust Prospectus and SAI and any supplements
thereto, or (ii) to use any description of the Trust in any sales literature or
advertising (including brochures, letters, illustrations and other similar
materials, whether transmitted directly to potential purchasers of Variable
<PAGE>
- 5 -
Products or published in print or audio-visual media), except in either case as
Equitable Variable or officers of the Trust may authorize in advance, which
authorization will not be unreasonably withheld or delayed.
Equitable shall indemnify and hold harmless Equitable Variable
from any and all losses, claims, damages or liabilities (or actions in respect
thereof) to which Equitable Variable may be subject, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
result from negligent, improper, fraudulent or unauthorized acts or omissions by
Equitable, its employees, agents or representatives, including but not limited
to improper solicitation of applications for Variable Products.
(b) Equitable Variable will indemnify and hold harmless
Equitable and the Separate Account against any losses, claims, damages or
liabilities, to which Equitable or the Separate Account may become subject,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (i) any untrue statement or alleged
untrue statement of any material fact contained in the Trust Prospectus and/or
SAI or any supplements thereto, (ii) the omission or alleged omission to state
any material fact required to be stated in the Trust Prospectus and/or SAI or
any supplements thereto or necessary to make the statements therein not
misleading, or (iii) other misconduct or negligence of
<PAGE>
- 6 -
Equitable Variable in its capacity as a distributor of the Trust; and will
reimburse Equitable or the Separate Account for any legal or other expenses
reasonably incurred by it in connection with investigating or defending against
such loss, claim, damage, liability or action; provided, however, that Equitable
Variable shall not be liable in any such case to the extent that any such loss,
claim, damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in the Trust
Prospectus and/or SAI or any such supplement in good faith reliance upon and in
conformity with written information furnished by Equitable specifically for use
in the preparation thereof.
Equitable Variable shall not indemnify Equitable or the Separate
Account for any action where an applicant for the Variable Products or a
policyholder was not furnished or sent or given, at or prior to written
confirmation of the sale of the Variable Products and at such later times as
required by state or federal securities laws, a copy of the prospectus relating
to the Variable Products together with the Trust Prospectus, any supplements to
the Trust Prospectus Equitable Variable may furnish to Equitable and, if
requested by the applicant from Equitable or required by applicable law, the
Trust SAI and any supplements thereto and, as requried by applicable law, the
Trust's annual and semi-annual reports, other required reports and proxy
statements.
<PAGE>
- 7 -
5. This Agreement shall terminate automatically if it shall be
assigned. The Agreement shall also terminate automatically if the Distribution
Agreement shall terminate.
6. If Equitable Variable is notified that the Distribution Agreement
will be terminated and that it shall cease to be the principal underwriter of
the Trust, Equitable Variable shall immediately notify the other parties in
writing of such termination, and this Agreement shall continue in effect until
the effective date of the termination of the Distribution Agreement. This
Agreement may be terminated by any party at any time on one hundred eighty days'
written notice to the other parties, without the payment of any penalty.
7. This Agreement shall be subject to the provisions of the 1940 Act,
the 1934 Act and the Securities Act of 1933 and the rules, regulations, and
rulings thereunder and of the NASD, from time to time in effect, including such
exemptions from the 1940 Act and no action positions as the Securities and
Exchange Commission or its staff may grant, and the terms hereof shall be
interpreted and construed in accordance therewith. Without limiting the
generality of the foregoing, the term "assigned" shall not include any
transaction exempt from section 15(b)(2) of the Investment Company Act by order
of the Securities and Exchange Commission or any transaction as to which the
staff of the Securities and Exchange Commission has taken a no action position.
<PAGE>
- 8 -
Equitable shall, in connection with its obligations hereunder,
comply with all laws and regulations applicable thereto, whether Federal or
state, and whether relating to insurance, securities or other general areas,
including but not limited to the record keeping and sales supervision
requirements of such laws and regulations.
Equitable Variable shall immediately notify Equitable of the
issuance by any regulatory body of any stop order with respect to the Trust
Prospectus or SAI or the initiation of any proceeding for that purpose or for
any other purpose relating to the registration or an offering of shares of the
Trust and of any other action or circumstances that may prevent the lawful offer
or sale of shares of the Trust in any state or jurisdiction.
8. Equitable and Equitable Variable shall submit to all regulatory and
administrative bodies having jurisdiction over the operations of Equitable,
Equitable Variable or the Trust, present or future, any information, reports or
other material which any such body by reason of this Agreement may request or
require as authorized by applicable laws or regulations.
Equitable Variable shall keep confidential any information about
Equitable's Variable Products or policyowners obtained pursuant to this
Agreement and shall disclose such information only if Equitable has authorized
such disclosure, or
<PAGE>
- 9 -
if such disclosure is required by state or federal regulatory bodies, as
authorized by applicable law. Equitable Variable will notify Equitable of
disclosures required by regulatory bodies as soon as possible.
Equitable Variable agrees that all records and other data
pertaining to the Variable Products are the exclusive property of Equitable and
that any such records and other data, whether maintained in written or
electronic format, shall be furnished to Equitable by Equitable Variable upon
termination of this Agreement for any reason whatsoever. This shall not preclude
Equitable Variable from keeping copies of such data or records for its own files
subject to the provisions of this paragraph.
9. Equitable retains the ultimate right of control over, and
responsibility for, marketing the Variable Products.
10. Equitable Variable represents that neither Equitable Variable nor
any person employed in any material connection with respect to the services
provided pursuant to this Agreement:
(a) Within the last 10 years has been convicted of any felony or
misdemeanor arising out of conduct involving embezzlement, fraudulent
conversion, or misappropriation of funds or securities, or involving violations
of Secs. 1341, 1342, or 1343 of Title 18, United States Code; or
<PAGE>
- 10 -
(b) Within the last 10 years has been found by any state
regulatory authority to have violated or has acknowledged violation of any
provision of any state insurance law involving fraud, deceit or knowing
misrepresentation; or
(c) Within the last 10 years has been found by any federal or
state regulatory authorities to have violated or have acknowledged violation of
any provision of federal or state securities laws involving fraud, deceit or
knowing misrepresentation.
11. Equitable Variable and Equitable each represent that no
commission or other fee shall be charged or paid to any person or entity in
connection with the sale or purchase of the Trust's shares to or from the
Separate Account, other than regular salary or wages.
12. This Agreement may be executed in multiple counterparts, each
of which shall be deemed an original, but all of which shall constitute one and
the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.
EQUITABLE VARIABLE LIFE
INSURANCE COMPANY
Attest:
/s/ Linda Galasso By: /s/ Mel H. Gregory
- ------------------------- -----------------------------
<PAGE>
- 11 -
THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
Attest:
/s/ Linda Galasso By: /s/ Gordon Dinsmore, Jr.
- ------------------------- ----------------------------
SEPARATE ACCOUNT A
By: THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
as depositor
Attest:
/s/ Linda Galasso By: /s/ Gordon Dinsmore, Jr.
- ------------------------- ----------------------------
0334i
08/24/92
<PAGE>
- 12 -
SCHEDULE A
All Hudson River Trust Portfolios are available to the Separate
Account for premiums and contributions associated with all variable products
funded by the Separate Account.
DISTRIBUTION AND SERVICING AGREEMENT
This DISTRIBUTION AND SERVICING AGREEMENT, dated as of May 1, 1994, is
made by and among Equico Securities, Inc. ("Equico"), The Equitable Life
Assurance Society of the United States ("Equitable") and Equitable Variable Life
Insurance Company ("Equitable Variable"), as follows:
WHEREAS, pursuant to a Distribution Agreement, dated as of May 1, 1994,
Equico is the principal underwriter of The Hudson River Trust ("Trust"), a
series mutual fund registered under the Investment Company Act of 1940 ("1940
Act") whose shareholders are separate accounts of Equitable and Equitable
Variable and of other insurance companies;
WHEREAS, both Equitable and Equitable Variable issue variable insurance
contracts ("Variable Contracts") whose net premiums or considerations are
allocated in whole or in part to the respective separate accounts of Equitable
and Equitable Variable for investment in the Trust, for direct investment or for
investment in other funding media ("Separate Accounts");
WHEREAS, units of interest in the Separate Accounts are registered
under the Securities Act of 1933 ("1933 Act") to the extent such registration is
required;
WHEREAS, Equitable and Equitable Variable are each broker-dealers
registered under the Securities Exchange Act of 1934, as amended ("1934 Act"),
and each is a member of the National Association of Securities Dealers, Inc.
("NASD");
<PAGE>
-2-
WHEREAS, the Variable Contracts (including all Variable Contracts
issued by Equitable Variable) are offered and sold by members of Equitable's
agency force, or by insurance brokers under contract with Equitable, who are
also registered representatives of Equico and of Equitable ("Agents");
WHEREAS, Equitable and Equitable Variable each desire to engage Equico,
a wholly-owned subsidiary of Equitable which is a registered broker-dealer under
the 1934 Act and a member of the NASD, to assume the responsibilities set forth
in this Agreement with respect to the distribution of the Variable Contracts,
including in particular the responsibility for compliance with broker-dealer
requirements under federal and any applicable state or foreign securities laws
and the NASD Rules of Fair Practice ("NASD Rules") with respect to the offering
of the Variable Contracts, and Equico desires to assume such responsibilities;
WHEREAS, Equico desires to utilize Equitable's services and personnel
in carrying out certain of its responsibilities under this Agreement, and
Equitable is willing to furnish the same on the terms and conditions hereinafter
set forth;
NOW, THEREFORE, the parties hereto agree as follows:
ARTICLE I
Distribution Responsibility for the Variable Contracts
Sec. 1.1 Equitable and Equitable Variable authorize Equico to act, and
Equico agrees to serve Equitable, as broker-dealer in connection with the
distribution of their respective Variable Contracts to the extent provided in
this
<PAGE>
-3-
Agreement. Equico shall be fully responsible for carrying out all compliance and
supervisory obligations in connection with the distribution of the Variable
Contracts, as required by the NASD Rules and by federal and any applicable state
or foreign securities laws. Equitable shall be fully responsible for
compensating the Agents for their sales of Variable Contracts, as provided in
Section 1.4.
Sec. 1.2 Without limiting the generality of Section 1.1, Equico agrees
that it shall be fully responsible for:
(A) Requiring that each person who is authorized to offer and
sell the Variable Contracts is duly registered as a representative of Equico and
is appropriately licensed, registered or otherwise qualified to offer and sell
the Variable Contracts under the federal securities laws and any applicable
securities laws of each state or other jurisdiction in which the Variable
Contracts offered by such person may be lawfully sold;
(B) Training, supervising and directing the Agents for
purposes of complying on a continuous basis with the NASD Rules and with federal
and state securities laws applicable in connection with the offer and sale of
the Variable Contracts. In this connection, Equico shall:
(i) Establish and implement reasonable written
procedures which provide for diligent supervision of sales practices of the
Agents;
(ii) Require that Agents shall recommend the purchase
of Variable Contracts only upon reasonable grounds to believe that the purchase
is
<PAGE>
-4-
suitable for each prospective purchaser, and verify their compliance with such
requirement;
(iii) Provide a sufficient number of registered
principals and an adequate compliance staff to carry out the responsibilities
set forth herein; and
(iv) Impose disciplinary measures on the Agents.
(C) Oversight of the securities activities of all persons
engaged directly or indirectly in operations of Equico, Equitable and Equitable
Variable related to the offer or sale of the Variable Products, each of whom
shall be considered a "person associated" with Equico, as defined in Section
3(a)(18) of the 1934 Act. Equico shall have full responsibility for each such
person with regard to his or her training, supervision and control, as
contemplated by Section 15 of the 1934 Act, and, in that connection, shall have
the authority to require that disciplinary action be taken with respect to such
persons.
Sec. 1.3 Equico represents that it is a broker-dealer duly registered
under the 1934 Act and is a member in good standing of the NASD and, to the
extent necessary to perform the activities contemplated hereunder, is duly
registered, or otherwise qualified, under the securities laws of every state or
other jurisdiction in which the Variable Contracts are available for sale, and
Equico agrees to maintain such status. Consistent with its designation as
distributor of the Variable Contracts, as provided in Section 1.1 of this
Agreement, Equico acknowledges that it may be deemed to be an "underwriter" or a
"principal underwriter" of the Separate Accounts under the federal securities
laws.
<PAGE>
-5-
Sec. 1.4 Equitable shall have exclusive responsibility for the payment
of commissions or other fees in accordance with the applicable agreements
between each Agent and Equitable relating to the Variable Contracts. All
compensation paid by Equitable to the Agents with respect to sales of the
Variable Contracts shall be paid by Equitable on its own behalf or on behalf of
Equitable Variable (with respect to sales of Variable Contracts issued by
Equitable Variable), and shall be reflected on the books and records of
Equitable and, to the extent related to Variable Contracts issued by Equitable
Variable, on the books and records of Equitable Variable. The responsibility of
Equitable shall include the performance of all activities necessary in order
that the payment of compensation hereunder complies with all applicable federal
securities laws and state securities and insurance laws. Equitable and Equitable
Variable retain the ultimate right to determine the rates of commission and
other fees to be paid to the Agents in connection with their respective Variable
Contracts. Nothing contained in this Agreement shall obligate Equico to pay any
commissions or other fees to Agents or to reimburse any Agents for expenses
incurred by them, nor shall Equico have any responsibility for the adequacy or
accuracy of any amount paid to an Agent in connection with the sale of the
Variable Contracts. Equico shall have no right or interest whatsoever in any
commissions or other fees payable to Agents by Equitable or by Equitable
Variable.
Sec. 1.5 Equitable represents that it is a broker-dealer duly
registered under the 1934 Act and is a member in good standing of the NASD. If
Equitable shall determine, in sole judgment, that such status is not required
for the purpose of properly discharging its responsibility under Section 1.4 of
this Agreement,
<PAGE>
-6-
Equitable may terminate its status as a registered broker-dealer without notice
to the other parties hereto.
Sec. 1.6 Equitable Variable agrees to cooperate fully with Equico and
with Equitable in the proper discharge of the responsibilities allocated to them
under this Article I. While undertaking to provide such cooperation and to
perform various activities on its own behalf hereunder, Equitable Variable
assumes no duties or responsibilities under this Agreement in its capacity as a
registered broker-dealer and, accordingly, shall be under no obligation to
maintain such status.
Sec. 1.7 Equico, Equitable and Equitable Variable shall each cause to
be maintained and preserved such accounts, books and other documents as are
required by the 1934 Act and 1940 Act and any other applicable laws and
regulations. In particular, without limiting the foregoing, Equico shall cause
all the books and records in connection with the offer and sale of the Variable
Contracts to be maintained and preserved in conformity with the requirements of
Rules 17a-3 and 17a-4 under the 1934 Act, to the extent that such requirements
are applicable to the Variable Contracts. The payment of premiums, purchase
payments, commissions and other fees and payments in connection with the
Variable Contracts shall be reflected on the books and records of Equitable and
of Equitable Variable, as provided in Section 1.4 hereof and as may otherwise be
required under applicable NASD regulations and federal and applicable state
securities laws requirements.
Sec. 1.8 Equico, Equitable and Equitable Variable shall each submit to
all regulators and administrative bodies having jurisdiction over the sales of
the
<PAGE>
-7-
Variable Contracts, present or future, any information, reports, or other
material that any such body by reason of this Agreement may request or require
pursuant to applicable laws or regulations. In particular, without limiting the
foregoing, Equitable and Equitable Variable agree that any books and records
which they maintain pursuant to Section 1.5 of this Agreement which are required
to be maintained under Rule 17a-3 or 17a-4 of the 1934 Act shall be subject to
inspection by the Securities and Exchange commission ("SEC") in accordance with
Section 17(a) of the 1934 Act.
Sec. 1.9 Equico and Equitable each agree and understand that all
documents, reports, records, books, files and other materials required under
applicable NASD regulations and federal and state securities laws relative to
the sales of Variable Contracts shall be the property of Equico, with the
exception of those books and records maintained by Equitable pursuant to Section
1.4 which relate to sales compensation and shall be the joint property of
Equitable and Equico. If, however, such documents, reports, records, books,
files and other materials which are the property of Equico are required by
applicable regulation or law to be maintained also by Equitable or by Equitable
Variable, such material shall be the joint property of Equico, Equitable or
Equitable Variable. All other documents, reports, records, books, files and
other materials maintained relative to this Agreement shall be the property of
Equitable or of Equitable Variable, depending upon the identity of the issuer of
the Variable Contracts involved. Upon the termination of this Agreement, all
such material shall be returned to the applicable party.
Sec. 1.10 Equico, Equitable and Equitable Variable from time to time
during the term of this Agreement, shall allocate among themselves, subject to a
right of
<PAGE>
-8-
further delegation, the administrative responsibility for maintaining and
preserving the books, records and accounts kept in connection with the Variable
Contracts; provided, however, in the case of books, records and accounts kept
pursuant to a requirement of applicable law or regulation, the ultimate
responsibility for maintaining and preserving such books, records and accounts
shall be that of the party which is required to maintain or preserve such books,
records and accounts under the applicable law or regulation, and such books,
records and accounts shall be maintained and preserved under the supervision of
that party. Equico, Equitable and Equitable Variable shall cause each other to
be furnished with such reports as each may reasonably request for the purpose of
meeting its respective reporting and recordkeeping requirements under such
regulations and laws and under the insurance laws of the State of New York and
any other applicable states or jurisdictions.
ARTICLE II
Procedures for Sale of Variable Contracts
Sec. 2.1 Equitable and Equitable Variable each represent and warrant
that units of interest of their respective Separate Accounts offered under the
Variable Contracts are registered under the 1933 Act to the extent such
registration is required, that the Separate Accounts are registered under the
1940 Act unless exempt from such registration, and that the Variable Contracts
are qualified to be sold under the insurance laws and any applicable securities
laws of all states and other jurisdictions in which the Variable Contracts are
authorized for sale. Equitable and Equitable Variable each further represent and
warrant that each of them is a life insurance company duly organized under the
laws of the State of
<PAGE>
-9-
New York and in good standing and authorized to conduct business under the laws
of each state in which the Variable Contracts are offered and sold.
Sec. 2.2 Equico will require that the Agents use only the effective
prospectuses, statements of additional information ("SAIs") and other authorized
materials in soliciting and selling the Variable Contracts. Equico is not
authorized to give any information or to make any representations concerning the
Variable Contracts other than those contained in the current prospectus or SAI
therefor filed with the SEC or in such materials as may be authorized by
Equitable or by Equitable Variable.
Sec. 2.3 All applications for Variable Contracts shall be made on
application forms supplied by Equitable or by Equitable Variable, as
appropriate, and all payments collected by Equico shall be remitted by Equico
promptly in full, together with such application or enrollment forms and any
other required documentation, directly to Equitable or to Equitable Variable, as
appropriate, at the address indicated on such application or to such other
address as Equitable or Equitable Variable may, from time to time, designate in
writing. Equico shall review all such applications for suitability. Checks or
money orders in payment on any Variable Contract shall be drawn to the order of
"The Equitable Life Assurance Society of the United States" or "Equitable
Variable Life Insurance Company", as appropriate. All applications for Variable
Contracts shall be subject to acceptance or rejection by Equitable or by
Equitable Variable at their respective discretion.
Sec. 2.4 All money payable in connection with any of the Variable
Contracts, whether as premiums, purchase payments or otherwise, and whether paid
by, or on
<PAGE>
-10-
behalf of any applicant or contractowner, is the property of Equitable or of
Equitable Variable and shall be transmitted promptly in accordance with the
administrative procedures of Equitable and Equitable Variable without any
deduction or offset for any reason, including by example but not limitation, any
deduction or offset for compensation claimed by Equico or payable to the Agents.
No cash payments shall be accepted by Equico in connection with the Variable
Contracts.
Sec. 2.5 Equitable and Equitable Variable shall be responsible for
payment of the costs of printing the prospectuses, SAIs and sales material used
in connection with the solicitation of applications for the Variable Contracts
and to allocate such costs between themselves. Equitable and Equitable Variable
shall provide to Equico copies of such prospectuses, SAIs and sales material in
such number as Equico shall reasonably request. Equitable and Equitable Variable
shall make available to Equico copies of all financial statements and other
documents that Equico shall reasonably request for use in connection with the
distribution of the Variable Contracts.
Sec. 2.6 Notwithstanding anything in this Agreement to the contrary,
Equico may enter into sales agreements with independent broker-dealers for the
sale of the Variable Contracts, subject to the prior written approval of
Equitable and of Equitable Variable of each such sales agreement and the terms
thereof. All such sales agreements entered into by Equico shall provide that
each independent broker-dealer will assume full responsibility for continued
compliance by itself and its associated persons with the NASD Rules and
applicable federal and state securities and insurance laws. All associated
persons of such independent broker-dealer soliciting applications for the
Variable Contracts shall be duly and
<PAGE>
-11-
appropriately licensed or appointed for the sale of the Variable Contracts under
the NASD Rules and federal and state securities and insurance laws in which such
person shall offer or sell the Variable Contracts.
Sec. 2.7 Equitable shall apply for and maintain the proper insurance
licenses for each of the Agents selling the Variable Contracts in all states or
jurisdictions in which the Variable Contracts are offered for sale by such
Agent. Equitable and Equitable Variable reserve the right to refuse to appoint
any proposed agent, or independent broker-dealer, and to terminate an Agent or
independent broker-dealer once appointed. Equitable and Equitable Variable shall
promptly notify Equico of each such termination. Equitable agrees to be
responsible for all licensing or other fees required under pertinent state
insurance laws to properly authorize Agents for the sale of the Variable
Contracts; however, the foregoing shall not limit Equitable's right to collect
such amount from any person or entity other than Equico.
Sec. 2.8 The parties hereto recognize that any person selling the
Variable Contracts as contemplated by this Agreement shall be acting as an
insurance agent of Equitable or of Equitable Variable or as an insurance broker,
and that the rights of Equico to supervise such persons shall be limited to the
extent specifically described herein or required under applicable federal or
state securities laws or NASD regulations. Such persons shall not be considered
employees of Equico and shall be considered agents of Equico only as and to the
extent required by such laws and regulations. Further, it is intended by the
parties hereto that such persons are and shall continue to be considered to have
a common law independent contractor relationship with Equitable and Equitable
Variable and not to be common law employees of Equitable or of Equitable
Variable, unless any contract
<PAGE>
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between Equitable and any person selling the Variable Contracts specifically
provides otherwise.
Sec. 2.9 Consistent with the responsibility of Equico to discharge all
compliance and supervisory obligations relating to the distribution of the
Variable Contracts as provided in this Agreement and consistent with the
authority given to Equico hereunder, Equitable and Equitable Variable shall
retain the ultimate right of control over, and responsibility for, the issuance,
servicing and marketing of their respective Variable Contracts. In that
connection, Equitable and Equitable Variable shall review and approve all
advertising concerning the Variable Contracts issued by each of them; however,
Equico shall be responsible for filing such materials, as required, with the
NASD and with state securities regulators and for obtaining such approvals as
may be necessary.
Sec. 2.10 Unless otherwise agreed in writing by Equitable or by
Equitable Variable, neither Equico nor any Agent nor any independent
broker-dealer shall have an interest in any surrender charges, deductions or
other fees payable to Equitable or to Equitable Variable.
ARTICLE III
Services and Personnel Provided by Equitable
Sec. 3.1 Equitable agrees to furnish compliance and related support
services, including personnel, to assist Equico in the performance of the
services which Equico is required to provide hereunder. In furnishing such
services, all personnel of Equitable shall be subject at all times to the
supervision and control of Equico.
<PAGE>
-13-
ARTICLE IV
Compensation and Expenses
Sec. 4.1 Equico shall be compensated, not less frequently than
quarterly, by Equitable and by Equitable Variable for its services under this
Agreement in an aggregate annual amount which shall be equal to the actual
expenses incurred by Equico to provide compliance and related support services,
plus a percentage of such expenses which shall approximate the annual rate of
profit earned by Equico from its performance of comparable services for
unaffiliated clients.
Sec. 4.2 Equico shall pay the costs and expenses, direct and indirect,
incurred by Equitable in furnishing services and personnel, pursuant to Article
III of this Agreement. In determining the basis for the apportionment of
expenses, specific identification or estimates based on time, company assets,
square footage or any other mutually agreeable method providing for a fair and
reasonable allocation of cost may be used, provided such method is in conformity
with the requirements of Section 1712 of the New York Insurance Law and New York
Insurance Department Regulation No. 33. The charge to Equico for such
apportioned expenses shall be at cost as described in this Section 4.2.
Sec. 4.3 Within 45 days after the end of each calendar quarter, and
more often if desired, Equitable shall submit to Equico a statement of
apportioned expenses showing the basis for such apportionment; and settlement
shall be made within 15 days thereafter. The statement of apportioned expenses
shall set forth in reasonable detail the nature of the expenses being
apportioned and other relevant information to support the charge.
<PAGE>
-14-
Sec. 4.4 To enable Equitable to compensate Agents for the sale of
Variable Contracts issued by Equitable Variable, Equitable Variable shall
furnish Equitable with a schedule of the commissions and other fees payable with
respect to each form of Variable Contract issued by it, together with a list of
rules and procedures applicable to the payment of such compensation. Equitable
Variable agrees to reimburse Equitable for commissions and service fees (not in
excess of the amounts specified by Equitable Variable) paid to the Agents for
the sale of its Variable Contracts pursuant to Section 1.4 of this Agreement.
ARTICLE V
Term of Agreement
Sec. 5.1 Subject to termination as herein provided, this Agreement
shall remain in full force and effect for a two-year period commencing on the
date first above written, and this Agreement shall continue in full force and
effect from year-to-year thereafter, until terminated as herein provided.
Sec. 5.2 This Agreement may be terminated by any party hereto on not
less than 60 days' prior written notice to the other parties or by an agreement
in writing signed by all of the parties hereto, except that data processing
services may not be terminated on less than 180 days' prior written notice, if
requested by Equico in writing promptly following its receipt of written notice
of termination of this Agreement. This Agreement shall automatically be
terminated in the event of its assignment.
Sec. 5.3 Upon termination of this Agreement, all authorizations,
rights, and obligations shall cease except the obligations to settle accounts
hereunder,
<PAGE>
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including the settlement of monies due in connection with Variable Contracts in
effect at the time of termination or issued pursuant to applications received by
Equitable or by Equitable Variable prior to termination.
ARTICLE VI
Miscellaneous
Sec. 6.1 Should an irreconcilable difference of opinion arise between
or among the parties to this Agreement as to the interpretation of any matter
respecting this Agreement, it is hereby mutually agreed that such differences
shall be submitted to arbitration as the sole remedy available to the parties.
Such arbitration shall be in accordance with the rules of the American
Arbitration Association, the arbitrators shall have extensive experience in the
insurance industry, and the arbitration shall take place in New York, New York.
Sec. 6.2 For purposes of this Agreement, the term "Variable Contracts"
shall not include any variable insurance contract issued by Equitable which is
not offered and sold by employees or agents of Equitable.
Sec. 6.3 This Agreement replaces the Sales Agreement, dated December
23, 1985, as amended, between Equitable Variable and Equitable, which shall
terminate on the effective date hereof.
Sec. 6.4 If any provision of this Agreement shall be held or made
invalid by a court decision, statute, rule, or otherwise, the remainder of this
Agreement shall not be affected thereby.
<PAGE>
-16-
Sec. 6.5 This Agreement constitutes the entire agreement between the
parties hereto and may not be modified except in a written instrument executed
by all parties hereto.
Sec. 6.6 This Agreement shall be subject to the provisions of the 1934
Act and, to the extent applicable, the 1940 Act and the rules, regulations and
rulings thereunder and of the NASD, from time-to-time in effect, including such
exemptions from the 1940 Act as the SEC may grant, and the terms hereof shall be
interpreted and construed in accordance therewith.
Sec. 6.7 This Agreement shall be interpreted in accordance with the
laws of the State of New York.
<PAGE>
-17-
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
signed by their respective officials thereunto duly authorized, as of the day
and year first above written.
THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
By: /s/Joseph J. Melone
---------------------------------
Joseph J. Melone
Chairman and
Chief Executive Officer
EQUITABLE VARIABLE LIFE
INSURANCE COMPANY
By: /s/Samuel B. Shlesinger
---------------------------------
Samuel B. Shlesinger
Senior Vice President
EQUICO SECURITIES, INC.
By: /s/Richard V. Silver
---------------------------------
Richard V. Silver
President and
Chief Operating Officer
[5292/430_1]
23208/HWO_1
DISTRIBUTION AGREEMENT
AGREEMENT, dated as of January 1, 1995, by and between The Hudson River
Trust (the "Trust") and Equico Securities, Inc. ("Equico").
W I T N E S S E T H :
WHEREAS, the Trust is a Massachusetts business trust whose shareholders
are and will be separate accounts in unit investment trust form ("Eligible
Separate Accounts") of insurance companies;
WHEREAS, variable insurance and annuity product ("Variable Products")
net premiums, contributions and considerations will be allocated to Eligible
Separate Accounts for investment in the Trust;
WHEREAS, the Trust's shares may not be sold separately from the
Variable Products;
WHEREAS, the Trust desires Equico to undertake marketing activities
with respect to Trust shares;
WHEREAS, the Trust is registered as an open end investment company
under the Investment Company Act of 1940 ("Investment Company Act");
<PAGE>
WHEREAS, the Investment Company Act prohibits any principal underwriter
for a registered open end investment company from offering for sale, selling, or
delivering after sale any security of which such company is the issuer, except
pursuant to a written contract with such company, and Equico will be a principal
underwriter for sale of securities issued by the Trust;
WHEREAS, Equico is registered as a broker-dealer under the Securities
Exchange Act of 1934 ("Securities Exchange Act") and is a member of the National
Association of Securities Dealers, Inc. ("NASD");
NOW THEREFORE, the Trust and Equico agree as follows:
Section 1. The Trust has ratified a Policy on Conflicts (the "Policy"),
which was adopted by the Board of Directors of the Hudson River Fund, Inc.,
predecessor of the Trust. This Agreement shall be subject to the provisions of
the Policy, the terms of which are incorporated herein by reference, made a part
hereof and controlling. The Policy may be amended or superseded, without prior
notice, and this Agreement shall be deemed amended to the extent the Policy is
amended or superseded. Equico represents and warrants that it will act in a
manner consistent with such Policy as so set forth and as it may be amended or
superseded, so long as it is a principal underwriter of the Trust. This
provision shall survive the termination of this Agreement.
Section 2. Equico is hereby authorized, from time to time, to enter
into separate written agreements ("Sales Agreements" or, individually, a "Sales
Agreement"), on terms and conditions not inconsistent with this Agreement, with
insurance companies which have Eligible Separate Accounts and which agree to
participate in the
2
<PAGE>
distribution of Trust shares, directly or through affiliated broker dealers
(collectively, with the insurance companies the "Participating Insurance
Companies"), by means of distribution of Variable Products and to use their best
efforts to solicit applications for Variable Products. Equico may not enter into
any Sales Agreement with any Participating Insurance Company that is more
favorable than that maintained with any other Participating Insurance Company
and Eligible Separate Account, except that not all portfolios of the Trust need
be made available for investment by all Participating Insurance Companies,
Eligible Separate Accounts or Variable Products. Each Sales Agreement shall be
entered into jointly with the Participating Insurance Company and the Eligible
Separate Account.
Section 3. Such Participating Insurance Companies and their agents or
representatives soliciting applications for Variable Products shall be duly and
appropriately licensed, registered or otherwise qualified for the sale of
Variable Products under any applicable insurance laws and any applicable
securities laws of one or more states or other jurisdictions in which Variable
Products may be lawfully sold. Each such Participating Insurance Company shall,
when required by law, be both registered as a broker dealer under the Securities
Exchange Act and a member of the NASD. Each such Participating Insurance Company
shall agree to comply with all laws and regulations, whether federal or state,
and whether relating to insurance, securities or other general areas, including
but not limited to the record-keeping and sales supervision requirements of such
laws and regulations.
Section 4. The Trust's shares are divided into series, each
representing a different portfolio of investments ("Portfolios"). The Trust
Portfolios and any restrictions on availability relating thereto are set forth
in Schedule A hereto, which may be amended from time to time.
3
<PAGE>
Purchases and redemptions of Trust shares shall be at the net asset
value for the appropriate Portfolio, computed as set forth in the most recent
Prospectus and Statement of Additional Information relating to the Trust
contained in its Registration Statement of Form N-1A, File No. 2-94996, or any
amendments thereto (respectively, "Trust Prospectus" and "SAI"), and any
supplements thereto. Trust shares may not be sold or transferred except to an
Eligible Separate Account with the prior approval of the Trust's Board of
Trustees.
Section 5. The Trust shall not pay any compensation to Equico for
services as principal underwriter herein, nor shall the Trust reimburse Equico
for any expenses related to such services. Equico may, but need not, pay or
charge Participating Insurance Companies pursuant to agreements as described in
Section 2.
Section 6. The Trust represents to Equico that the Trust Prospectus and
SAI, as of their respective effective dates, contain all statements and
information which are required to be stated therein by the Securities Act of
1933 and in all respects conform to the requirements thereof, and neither the
Trust Prospectus nor the SAI include any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary to
make the statements therein not misleading; provided, however, that the
foregoing representations shall not apply to information contained in or omitted
from the Trust Prospectus and SAI in reliance upon, and in conformity with,
written information furnished by Equico specifically for use in the preparation
thereof.
In this connection, Equico acknowledges that the day-to-day operations
of the Trust, including without limitation, investment management, securities
brokerage
4
<PAGE>
allocation, cash control, accounting, record keeping and other administrative,
marketing and regulatory compliance functions, are carried on and may in the
future be carried on by The Equitable Life Assurance Society of the United
States ("Equitable"), affiliates of Equitable, and other parties unaffiliated
with Equitable on behalf of the Trust (collectively, the "Preparing Parties"),
under various agreements and arrangements, and that such activities in large
measure provide the basis upon which statements and information are included or
omitted from the Trust Prospectus and SAI. Equico further acknowledges that
because of the foregoing arrangements, the preparation of the Trust Prospectus
and SAI is substantially in the control of the Preparing Parties, subject to the
broad supervisory authority and responsibility of the Trust's Board of Trustees,
and that, essentially, the only Trust Prospectus or SAI information not
independently known to, or prepared by, the Preparing Parties is personal
information as to each Trustee's full name, age, background, business experience
and other personal information that may require disclosures under securities
laws and for which the Preparing Parties necessarily must rely on each such
Trustee to produce.
Section 7. The Trust will periodically prepare Trust Prospectuses
(and, if applicable, SAIs) and any supplements thereto, proxy materials and
annual and semi-annual reports (collectively, the "Documents") and shall make
camera ready copy available to Equico for reproduction by Equico or the
Participating Insurance Companies. Subject to the prior approval of the Trust's
officers, the Trust shall pay the cost of printing and mailing Documents which
are distributed to existing owners of Variable Products, provided that Equico or
the Participating Insurance Companies shall be required to submit documentation
in support of such expenses which is satisfactory to the officers of the Trust.
The Trust shall not pay the cost of printing or mailing Documents except as
specified in this Section 7. The Trust will use its best efforts
5
<PAGE>
to provide notice to Equico of anticipated filings or supplements. Equico or the
Participating Insurance Companies may alter the form of some or all of the
Documents, with the prior approval of the Trust's officers. Any preparation
costs associated with altering the form of the Documents will be borne by Equico
or the Participating Insurance Companies, not the Trust.
Section 8. Equico and officers of the Trust may from time to time
authorize descriptions of the Trust for use in sales literature or advertising
by the Participating Insurance Companies (including brochures, letters,
illustrations and other similar materials, whether transmitted directly to
potential applicants or published in print or audio-visual media), which
authorization will not be unreasonably withheld or delayed.
Section 9. Equico shall furnish to the Trust, at least quarterly,
reports as to the sales of Trust shares made pursuant to this Agreement. These
reports may be combined with any similar report prepared by Equico or any of the
Preparing Parties.
Section 10. Equico shall submit to all regulatory and administrative
bodies having jurisdiction over the operations of Equico, the Trust, or any
Participating Insurance Company, present or future, any information, reports or
other material which any such body by reason of this Agreement may request or
require as authorized by applicable laws or regulations.
Section 11. This Agreement shall be subject to the provisions of the
Investment Company Act, the Securities Exchange Act and the Securities Act of
1933 and the rules, regulations, and rulings thereunder and of the NASD, from
time to time in effect, including such exemptions from the Investment Company
Act and no action
6
<PAGE>
positions as the Securities and Exchange Commission or its staff may grant, and
the terms hereof shall be interpreted and construed in accordance therewith.
Without limiting the generality of the foregoing, (a) the term "assigned" shall
not include any transaction exempted from section 15(b)(2) of the Investment
Company Act and (b) the vote of the persons having voting rights in respect of
the Trust referred to in Section 12 shall be the affirmative votes of the lesser
of (i) the holders of more than 50% of all votes entitled to be cast in respect
of the Trust or (ii) the holders of at least 67% of the votes which are present
at a meeting of such persons if the holders of more than 50% of all votes
entitled to be cast in respect of the Trust are present or represented by proxy
at such meeting, in either case voted in accordance with the provisions of the
Policy.
Section 12. This Agreement shall continue in effect only so long as
such continuance is specifically approved at least annually by a majority of the
Trustees of the Trust who are not interested persons of the Trust or Equico and
by (a) persons having voting rights in respect of the Trust, by the vote stated
in Section 11, voted in accordance with the provisions of the Policy, or (b) the
Board of Trustees of the Trust.
Section 13. This Agreement shall terminate automatically if it shall be
assigned.
7
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.
THE HUDSON RIVER TRUST
Attest:
/s/[Illegible] By: /s/ Barbara Krumsiek
- ------------------ ----------------------
EQUICO SECURITIES, INC.
Attest:
/s/ Loraine Herzog By: /s/ Michael F. McNelis
- ------------------ ----------------------
President and Chief Operating Officer
FFR_1.DOC/20007
1/11/95
8
<PAGE>
Schedule A
Portfolios of The Hudson River Trust
------------------------------------
Common Stock
Money Market
Balanced
Aggressive Stock
High Yield
Global
Conservative Investors
Growth Investors
Government Securities
Quality Bond
Growth and Income
Equity Index
International (as of second quarter of 1995)
Restrictions
------------
None
20007
1/11/95
9
THE HUDSON RIVER TRUST
SALES AGREEMENT
AGREEMENT, dated as of January 1, 1995, by and among Equico Securities,
Inc. ("Equico"), The Equitable Life Assurance Society of the United States
("Equitable"), and Equitable's Separate Account A, Separate Account No. 301 and
Separate Account No. 51 (each, a "Separate Account" and, collectively, the
"Separate Accounts").
W I T N E S S E T H:
WHEREAS, Equico is a principal underwriter of The Hudson River Trust
(the "Trust"), a series mutual fund whose shareholders are separate accounts
("Eligible Separate Accounts") of insurance companies ("Participating Insurance
Companies"), pursuant to a Distribution Agreement ("Distribution Agreement");
WHEREAS, such Participating Insurance Companies issue, among other
products, variable life insurance and annuity products ("Variable Products")
whose net premiums, contributions or other considerations are allocated to
Eligible Separate Accounts for investment in the Trust, and shares of the Trust
are not sold except in connection with such Variable Products;
WHEREAS, the Trust is registered as an open-end investment company
under the Investment Company Act of 1940 (the "1940 Act");
<PAGE>
WHEREAS, the Board of Trustees of the Trust may, in its sole
discretion, determine that certain portfolios shall be available only to certain
types of Variable Products or to a single insurer and its affiliates;
WHEREAS, Insurer issues Variable Products, whose net premiums are
allocated to the Separate Account, and which are eligible for investment in the
Trust's portfolios;
WHEREAS, Broker-Dealer, an affiliate of Insurer, will distribute the
Variable Products, either directly or indirectly under selling agreements with
one or more affiliated or non-affiliated broker-dealers;
WHEREAS, Broker-Dealer and Equico are each registered as a
broker-dealer under the Securities Exchange Act of 1934 (the "1934 Act") and
each is a member of the National Association of Securities Dealers, Inc. (the
"NASD");
WHEREAS, Equico, Insurer and Broker-Dealer wish to define and describe
the conditions under which shares of the Trust will be made available for
investment by the Separate Account.
NOW, THEREFORE, Equico, Insurer, Broker-Dealer and the Separate Account
hereby agree as follows:
1. The Board of Trustees of the Trust has adopted a Policy on Conflicts
(the "Policy"). This Agreement shall be subject to the provisions of the Policy,
the terms of which shall be incorporated herein by reference, made a part
hereof and controlling. The Policy may be amended or superseded, without prior
-2-
<PAGE>
notice, and this Agreement shall be deemed amended to the extent the Policy is
amended or superseded. Insurer, Broker-Dealer and the Separate Account each
represent and warrant that it will act in a manner consistent with such Policy
as so set forth and as it may be amended or superseded, so long as it owns any
Trust shares. This provision shall survive the termination of this Agreement.
2. Equico will make available to the Separate Account shares of the
Trust's portfolios in connection with Variable Products funded by the Separate
Account only as set forth on Schedule A hereto. Schedule A may be modified from
time to time by written agreement of the parties.
3. Purchases and redemptions of shares will be at net asset value for
the appropriate portfolio, computed as set forth in the most recent Trust
prospectus and Statement of Additional Information (respectively, "Trust
Prospectus" and "SAI") and any supplements thereto, and shall be submitted by
Insurer to the Trust's transfer agent pursuant to procedures and in accordance
with payment provisions adopted by the parties from time to time.
Trust shares may not be sold or transferred except to an Eligible
Separate Account and only in accordance with Schedule A.
4. (a) In good faith and as soon as practicable, Equico will provide,
at Trust expense, camera ready copy of the current Trust Prospectus and SAI and
any supplements thereto for distribution by Insurer with the prospectus for the
Variable Products, and camera ready copy of Trust proxy materials, annual and
semi-annual reports, and any supplements thereto. To the extent that the
foregoing documents are distributed by Insurer to existing owners of Variable
-3-
<PAGE>
Products, Equico will request reimbursement from the Trust for the printing and
mailing costs associated with such distribution, upon receipt from Insurer of
adequate documentation for presentation to the Trust. Equico will use its best
efforts to coordinate with Insurer and to provide notice of anticipated filings
or supplements. Insurer may alter the form of the Trust Prospectus, SAI, annual
and semi-annual reports, proxy statements or other Trust documents, with the
prior approval of the Trust's officers. Insurer shall bear all costs associated
with such alteration of form. Insurer is not authorized (i) to give any
information or make any representations concerning the Trust, its shares or
operations except those contained in the most recent Trust Prospectus and SAI
and any supplements thereto, or (ii) to use any description of the Trust in any
sales literature or advertising (including brochures, letters, illustrations and
other similar materials, whether transmitted directly to potential purchasers of
Variable Products or published in print or audio-visual media), except in either
case as Equico or officers of the Trust may authorize in advance, which
authorization will not be unreasonably withheld or delayed.
Insurer and Broker-Dealer shall indemnify and hold harmless Equico
from any and all losses, claims, damages or liabilities (or actions in respect
thereof) to which Equico may be subject, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or result from
negligent, improper, fraudulent or unauthorized acts or omissions by Insurer or
Broker-Dealer or their respective employees, agents or representatives,
including but not limited to improper solicitation of applications for Variable
Products.
(b) Equico will indemnify and hold harmless Insurer, Broker-Dealer
and the Separate Account against any losses, claims, damages or
-4-
<PAGE>
liabilities, to which Insurer or the Separate Account may become subject,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (i) any untrue statement or alleged
untrue statement of any material fact contained in the Trust Prospectus and/or
SAI or any supplements thereto, (ii) the omission or alleged omission to state
any material fact required to be stated in the Trust Prospectus and/or SAI or
any supplements thereto or necessary to make the statements therein not
misleading, or (iii) other misconduct or negligence of Equico in its capacity as
a distributor of the Trust; and will reimburse Insurer, Broker-Dealer or the
Separate Account for any legal or other expenses reasonably incurred by it in
connection with investigating or defending against such loss, claim, damage,
liability or action; provided, however, that Equico shall not be liable in any
such case to the extent that any such loss, claim, damage or liability arises
out of or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission made in the Trust Prospectus and/or SAI or any such
supplement in good faith reliance upon and in conformity with written
information furnished by Insurer or Broker-Dealer specifically for use in the
preparation thereof.
Equico shall not indemnify Insurer, Broker-Dealer or the Separate
Account for any action where an applicant for the Variable Products or a
policyholder was not furnished or sent or given, at or prior to written
confirmation of the sale of the Variable Products and at such later times as
required by state or federal securities laws, a copy of the prospectus relating
to the Variable Products together with the Trust Prospectus, any supplements to
the Trust Prospectus Equico may furnish to Insurer and, if requested by the
applicant from Insurer or required by applicable law, the Trust SAI and any
supplements
-5-
<PAGE>
thereto and, as required by applicable law, the Trust's annual and semi-annual
reports, other required reports and proxy statements.
5. This Agreement shall terminate automatically if it shall be
assigned. The Agreement shall also terminate automatically if the Distribution
Agreement shall terminate.
6. If Equico is notified that the Distribution Agreement will be
terminated and that it shall cease to be the principal underwriter of the Trust,
Equico shall immediately notify the other parties in writing of such
termination, and this Agreement shall continue in effect until the effective
date of the termination of the Distribution Agreement. This Agreement may be
terminated by any party at any time on one hundred eighty days' written notice
to the other parties, without the payment of any penalty.
7. This Agreement shall be subject to the provisions of the 1940 Act,
the 1934 Act and the Securities Act of 1933 and the rules, regulations, and
rulings thereunder and of the NASD, from time to time in effect, including such
exemptions from the 1940 Act and no-action positions as the Securities and
Exchange Commission or its staff may grant, and the terms hereof shall be
interpreted and construed in accordance therewith. Without limiting the
generality of the foregoing, the term "assigned" shall not include any
transaction exempt from section 15(b)(2) of the Investment Company Act by order
of the Securities and Exchange Commission or any transaction as to which the
staff of the Securities and Exchange Commission has taken a no-action position.
-6-
<PAGE>
Insurer and Broker-Dealer shall each, in connection with its
obligations hereunder, comply with all laws and regulations applicable thereto,
whether federal or state, and whether relating to insurance, securities or other
general areas, including but not limited to the record keeping and sales
supervision requirements of such laws and regulations.
Equico shall immediately notify Insurer and Broker-Dealer of the
issuance by any regulatory body of any stop order with respect to the Trust
Prospectus or SAI or the initiation of any proceeding for that purpose or for
any other purpose relating to the registration or an offering of shares of the
Trust and of any other action or circumstances that may prevent the lawful offer
or sale of shares of the Trust in any state or jurisdiction.
8. Insurer, Broker-Dealer and Equico shall submit to all regulatory and
administrative bodies having jurisdiction over the operations of Insurer,
Broker-Dealer, Equico or the Trust, present or future, any information, reports
or other material which any such body by reason of this Agreement may request or
require as authorized by applicable laws or regulations.
Equico shall keep confidential any information about Insurer's
Variable Products or policy owners obtained pursuant to this Agreement and shall
disclose such information only if Insurer or Broker-Dealer has authorized such
disclosure, or if such disclosure is required by state or federal regulatory
bodies, as authorized by applicable law. Equico will notify Insurer and
Broker-Dealer of disclosures required by regulatory bodies as soon as possible.
-7-
<PAGE>
Equico agrees that all records and other data pertaining to the
Variable Products are the exclusive property of Insurer and that any such
records and other data, whether maintained in written or electronic format,
shall be furnished to Insurer by Equico upon termination of this Agreement for
any reason whatsoever. This shall not preclude Equico from keeping copies of
such data or records for its own files subject to the provisions of this
paragraph.
9. Insurer retains the ultimate right of control over, and
responsibility for marketing the Variable Products.
10. Equico represents that neither Equico nor any person employed in
any material connection with respect to the services provided pursuant to this
Agreement:
(a) Within the last 10 years has been convicted of any felony
or misdemeanor arising out of conduct involving embezzlement, fraudulent
conversion, or misappropriation of funds or securities, or involving violations
of Sections 1341, 1342, or 1343 of Title 18, United States Code; or
(b) Within the last 10 years has been found by any state
regulatory authority to have violated or has acknowledged violation of any
provision of any state insurance law involving fraud, deceit or knowing
misrepresentation; or
(c) Within the last 10 years has been found by any federal or
state regulatory authorities to have violated or have acknowledged violation of
-8-
<PAGE>
any provision of federal or state securities laws involving fraud, deceit or
knowing misrepresentation.
11. Equico, Broker-Dealer and Insurer each represent that no commission
or other fee shall be charged or paid to any person or entity in connection with
the sale or purchase of the Trust's shares to or from the Separate Account,
other than regular salary or wages.
12. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the
same instrument.
-9-
<PAGE>
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written. The effective date of
this Agreement shall be the date first above written.
EQUICO SECURITIES, INC.
Attest:
/s/ Loraine Herzog By: /s/ Michael F. McNelis
- ------------------ ----------------------
THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
Attest:
/s/ Linda Galasso By: /s/ Gordon Dinsmore, Jr.
- ----------------- ------------------------
SEPARATE ACCOUNT A,
SEPARATE ACCOUNT 301 and
SEPARATE ACCOUNT NO. 51
By: THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES,
as depositor of each Separate Account
Attest:
/s/ Linda Galasso By: /s/ Gordon Dinsmore, Jr.
- ----------------- ------------------------
FFQ_1DOC/20006
1GG_1.DOC/23920
- ---------------
-10-
<PAGE>
SCHEDULE A
All portfolios of The Hudson River Trust are available to the Separate
Accounts for premiums, contributions and other considerations associated with
all variable products funded by the Separate Accounts.
FFQ_1DOC/20006
1GG_1.DOC/23920
- ---------------
-11-
[EQUITABLE LOGO]
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
1285 AVENUE OF THE AMERICAS, NEW YORK, NEW YORK 10019
EQUI-PENSION-GV CONTRACT
GROUP ANNUITY CONTRACT NO. 11929 CI
CONTRACT HOLDER: UNITED STATES TRUST COMPANY OF NEW YORK
CONTRACT CHANGE DATE: DECEMBER 31, 1984
The Initial Guaranteed Interest Rate is 10% and is effective until December 31,
1980. The Guaranteed Interest Rate after December 31, 1980 for a Class of
Participants will be established before the beginning of each calendar year, but
will not be less than the Minimum Guaranteed Interest Rate for such year and
Class of Participants.
This contract ("the Contract") is issued in consideration of the payment to
Equitable of the contributions made under the Contract.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
The provisions on the following pages are part of the Contract.
FOR THE CONTRACT HOLDER: FOR THE EQUITABLE:
By /s/ Signature Unreadable By /s/ Coy Eklund
President
Title Vice President By /s/ Rodney L. Enochs
Vice President and Secretary
Dated 3/7/80 Date of Issue Mar 7 1980
At New York, New York
(Head Office)
No. 11929CI PARTICIPATING
<PAGE>
This page 2 reserved for information
in connection with the issuance
of certificates under this Contract.
PAGE 2
<PAGE>
This page 3 reserved for information
in connection with the issuance
of certificates under this Contract.
PAGE 3
<PAGE>
PART I -- DEFINITIONS
SECTION 1.01 EMPLOYER
The term "Employer" means the sole proprietor, partnership or corporation which
has adopted a Plan. A sole proprietor is deemed to be his own Employer and a
partnership is deemed to be the Employer of each partner. Any self-employed
individual and any employee of a partnership or corporation who is not covered
under a Plan is deemed to be his own Employer if he elects to be enrolled under
the Contract as a Participant.
SECTION 1.02 PLAN
The term "Plan" means (i) a program established by an Employer which requires
amounts contributed thereunder to be applied to the purchase of individual
retirement annuities within the meaning of Section 408(b) of the Code and (ii) a
written program established by an Employer constituting a "Simplified Employee
Pension" under Section 408(k) of the Code which requires amounts contributed
thereunder to be applied to the purchase of individual retirement annuities
within the meaning of Section 408(b) of the Code.
SECTION 1.03 ANNUITY
The term "Annuity" means an individual retirement annuity meeting the
requirements of Section 408(b) of the Code.
SECTION 1.04 ANNUITY BENEFIT
The term "Annuity Benefit" means a benefit payable by Equitable pursuant to
Section 3.03 of the Contract.
SECTION 1.05 PARTICIPANT
The term "Participant" means a person who has been enrolled by Equitable under
the Contract and for whom the Employer has purchased an Annuity under the
Contract. A person shall become enrolled under the Contract upon receipt by
Equitable of an enrollment form made available by Equitable and completed in a
manner satisfactory to Equitable. A person who has been enrolled under the
Contract shall be a participant-owner under the certificate issued thereunder
and such participant-owner shall thereafter at all times be the annuitant under
the certificate during his lifetime. An Annuity is purchased for a person
enrolled under the Contract upon receipt by Equitable of an initial Contribution
by the Employer.
SECTION 1.06 CONTRIBUTION
The term "Contribution" means a payment made to Equitable for a Participant with
respect to an Annuity purchased for such Participant under the Contract.
Equitable is under no obligation to accept any Contribution less than $20.00.
The aggregate amount of such Contributions shall not exceed $1,500 with respect
to any taxable year of the Participant, except that if such Contributions are
made under a Plan described in clause (ii) of Section 1.02 constituting a
"Simplified Employee Pension", the aggregate amount of such Contributions shall
not exceed $7,500 with respect to any taxable year of the Participant. Amounts
transferred to the Contract from an individual retirement account or annuity
which meets the requirements of Section 408(a) or (b), respectively, of the Code
or from a Pension Plan Endowment contract issued by Equitable as an individual
retirement annuity are not included in such aggregate amount of Contributions.
SECTION 1.07 PARTICIPATION DATE
The term "Participation Date" with respect to a Participant means the date as of
which Equitable has enrolled such Participant under the terms of the Contract.
SECTION 1.08 PARTICIPATION YEAR
The term "Participation Year" with respect to a Participant means the twelve
month period beginning on (i) the Participation Date, and (ii) each anniversary
thereof, unless otherwise agreed to in writing by Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS
Except as provided in Section 1.10, the term "Class of Participants" refers to
all Participants whose Participation Date is in the same calendar year.
SECTION 1.10 GUARANTEED INTEREST RATE
For each Guaranteed Interest Account, the term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in such
Account. Interest accrues daily. The Guaranteed Interest Rate will never be less
than 3% per annum.
Equitable will from time to time establish and make available for new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new Class of Participants will be established effective with the
effective date of the occurrance of (i), (ii) or (iii) above or any combination
thereof.
No. 11929CI Page 4
<PAGE>
DEFINITIONS (continued)
For the calendar year next succeeding the end of the period for which an
established Initial Guaranteed Interest Rate is effective and for each
subsequent calendar year thereafter, Equitable will determine for each
established Class of Participants before the beginning of such calendar year a
Yearly Guaranteed Interest Rate for such Class, which Yearly Guaranteed Interest
Rate will not be lower than the effective Minimum Guaranteed Interest Rate
applicable for such Class for such year. For any established Class of
Participants, Equitable reserves the right to change the Minimum Guaranteed
Interest Rate and the applicable period therefor, provided that any such Minimum
Guaranteed Interest Rate will not be lower than the Minimum Guaranteed Interest
Rte that would have been in effect in the absence of such change. Equitable will
notify each Participant in a Class in writing of any change in the Minimum
Guaranteed Interest Rate at least 15 days prior to its effective date.
SECTION 1.11 RETIREMENT DATE
The term "Retirement Date" means the date on which the Participant is to attain
the retirement age specified in the Participant's enrollment form. Before the
Retirement Date the Participant may elect to change the Retirement Date to
another Retirement Date, which may be any date after the filing of the election
(other than the 29th, 30th, or 31st day of any month). No Retirement Date shall
be earlier than the date of attainment of age 59 years and six months nor shall
be later than the date of attainment of age 70 years and six months. Any
election for such change must be made in writing by the Participant and shall
not take effect until received by Equitable at its Home Office.
SECTION 1.12 NORMAL FORM
The "Normal Form" of an Annuity Benefit under the Contract means, (i) if the
Participant has a living spouse at the Retirement Date, the Fixed Annuity
Benefit payable on the Joint and Survivor Life Annuity Form with such spouse as
the contingent annuitant (100% continuation), and (ii) if the Participant does
not have a living spouse at the Retirement Date, the Fixed Annuity Benefit
payable on the Life Annuity Form.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM
The term "Joint and Survivor Life Annuity Form" means an annuity providing
monthly payments while either of two persons upon whose lives such payments
depends is living. The monthly amount to be continued when only one of the
persons is living will be equal to a percentage of the monthly amount that was
paid while both were living. This percentage may be 50% or any higher percentage
up to and including 100%, as elected by the Participant. The payments commence
on the date as of which the Joint and Survivor Life Annuity Form is purchased
and terminate with the last payment due before the death of the survivor.
SECTION 1.14 LIFE ANNUITY FORM
The term "Life Annuity Form" means an annuity providing fixed monthly payments
during the lifetime of the person upon whose life such payments depend. The
payments commence on the date as of which the Life Annuity Form is purchased and
terminate with the last payment due before the death of such person.
SECTION 1.15 ANNUITY VALUE
The term "Annuity Value" with respect to a Participant's Guaranteed Interest
Account means the amount in such Account pursuant to Section 2.02
SECTION 1.16 CASH VALUE
With respect to a Participant for whom no cash value(s) of existing contract(s)
issued by Equitable is (are) transferred to the Contract pursuant to Section
2.01, the term "Cash Value" with respect to such Participant's Guaranteed
Interest Account means an amount equal to the Annuity Value after either (i) the
later of (a) the completion of five Participation Years with respect to such
Participant and (b) the Participant's attainment of age 59 years and six months,
or (ii) the Participant's attainment of age 70 years and six months. Prior to
such time, the Cash Value of such Participant's Guaranteed Interest Account will
equal the greater of (a) 94% of the Annuity Value of such Account and (b) the
Annuity Value of such Account minus an amount equal to the excess, if any, of
(i) 9% of the total Contributions made on behalf of such Participant during the
current Participation Year and the preceding nine completed Participation Years
over (ii) the cumulative total of any withdrawal charges made pursuant to
Section 2.05.
With respect to a Participant for whom cash value(s) of existing contract(s)
issued by Equitable is (are) transferred to the Contract pursuant to Section
2.01, the term "Cash Value" with respect to such Participant's Guaranteed
Interest Account means an amount equal to the Annuity Value after such
Participant attains age 59 years and six months. Prior to such time, the Cash
Value of such Participant's Guaranteed In-
Page 5
<PAGE>
terest Account will equal the Annuity Value of such Account minus an amount
equal to the lesser of (a) and (b) where:
(a) is the sum of: (1) 2% of the excess, if any, of (i) the first $10,000 of
Separate Account Transfers over (ii) the cumulative total of any previous
withdrawals made pursuant to subsection (a) of the third paragraph of
Section 2.05 and (2) 6% of the excess, if any, of (i) the Annuity Value
over (ii) the total amount of Separate Account Transfers minus the
cumulative total of any withdrawals made pursuant to Section 2.05 (but
such amount shall not be less than zero).
(b) is the excess, if any, of: (1) the sum of (i) 2% of the first $10,000 of
Separate Account Transfers made during the current Participation Year and
the preceding nine Participation Years and (ii) 9% of all other
Contributions (excluding Separate Account Transfers) made on behalf of the
Participant during the current Participation Year and the preceding nine
completed Participation Years over (2) the cumulative total of any
withdrawal charges made pursuant to Section 2.05.
SECTION 1.17 CODE
The term "Code" means the Internal Revenue Code of 1954, as now or hereafter
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.18 SEPARATE ACCOUNT TRANSFERS
The term "Separate Account Transfers" with respect to a Participant means the
amount of cash value(s) transferred to the Contract from separate investment
account(s) maintained by Equitable, pursuant to Section 2.01.
PART II -- PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS
The Employer is to make Contributions from time to time on such dates and in
such amounts as determined by the Employer pursuant to the terms of the Plan or,
if the Employer has no Plan, as determined by the Employer at its sole
discretion. The Employer is to specify the Participant with respect to whom each
such Contribution is being made.
Each Contribution received by Equitable with respect to a participant will,
before its allocation under the Contract, be reduced by the amount of any
applicable taxes, as determined by Equitable, and by the amount of any
applicable deduction in accordance with Section 2.08.
A Participant may, with Equitable's agreement, transfer to the Contract any
amount held with respect to such Participant under an individual retirement
account or annuity meeting the requirements of Section 408(a) or (b),
respectively, of the Code issued by Equitable or otherwise, of a Pension Plan
Endowment contract issued by Equitable as an individual retirement annuity,
except an individual retirement account or annuity contract containing any
"rollover amounts" within the meaning of Section 402(a)(5) of the Code. Any
amount so transferred from an individual retirement account or annuity contract
not issued by Equitable will, before allocation under the Contract, be reduced
by the amount of any applicable taxes, as determined by Equitable.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
SECTION 2.02 GUARANTEED INTEREST ACCOUNT
Equitable maintains a Guaranteed Interest Account under the Contract for each
Participant with respect to whom Contributions are made. Any amount allocated to
the Guaranteed Interest Account becomes part of the general assets of Equitable,
which support the guarantees of the Contract and other contracts.
The amount in a Guaranteed Interest Account at any time is equal to the sum of
all amounts that have been allocated to such Guaranteed Interest Account
pursuant to Section 2.01 and Section 2.03 plus the amount of any interest
accrued but not allocated, less the sum of all amounts that have been withdrawn
pursuant to Section 2.05 and Section 2.06 from such Account and less the sum of
any annual administrative charges accrued but not made. Equitable
Page 6
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
guarantees that the amount in a Guaranteed Interest Account at any time before
the Retirement Date will not be less than the sum of all amounts allocated to
such Account pursuant to Section 2.01 and less the sum of all amounts that have
been withdrawn from such Account pursuant to Section 2.05, all accumulated at 3%
interest, compounded annually. In any Participation Year in which no
Contribution is allocated to the Guaranteed Interest Account, the amount in such
Account at the end of the Participation Year shall not be less than the amount
in such Account at the beginning of the Participation Year less the sum of all
amounts withdrawn from such Account pursuant to Section 2.05, all accumulated at
3% interest, compounded annually.
A Guaranteed Interest Account for a Participant terminates on the earliest of
(i) the Retirement Date, (ii) the death of the Participant, and (iii)
termination of participation pursuant to Section 2.04.
SECTION 2.03 ALLOCATION TO ACCOUNT
Each Contribution made with respect to a Participant pursuant to Section 2.01,
after deduction for any applicable taxes, will be allocated, as of the date by
which Equitable has received such Contribution, to the Guaranteed Interest
Account.
Interest is allocated to the Guaranteed Interest Account at the end of each
Participation Year, at the time of withdrawal pursuant to Sections 2.05 and
2.07, at the time of application of amounts in the Guaranteed Interest Account
to provide Annuity Benefits, and upon termination of participation pursuant to
Section 2.04.
SECTION 2.04 TERMINATION OF PARTICIPATION
On or before a Participant's Retirement Date, such Participant may elect by
written notice to terminate participation under the Contract. Upon receipt of
such notice, Equitable will determine the Cash Value, as of the date Equitable
received such notice, of the Guaranteed Interest Account maintained for such
Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Guaranteed Interest Account, pay
such Annuity Value and terminate such Participant's participation under the
Contract. This right may be exercised with respect to the Participant only if
both (i) no Contributions have been made under the Contract during the last
three completed Participation Years, and (ii) such Annuity Value is $500 or
less. Equitable reserves the right to terminate a Participant's participation
under the Contract if at least 120 days have elapsed since the issue date shown
on the certificate issued to such Participant under the Contract and no
Contributions have been made under the Contract with respect to such
Participant.
Upon payment of such Cash Value or Annuity Value, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Value or Annuity Value arose.
SECTION 2.05 PARTIAL WITHDRAWALS
A Participant may elect by written notice to Equitable to make a partial
withdrawal from the Guaranteed Interest Account maintained for such Participant
before such Participant's Retirement Date.
With respect to partial withdrawals requested by a Participant for whom no cash
value(s) of existing contract(s) issued by Equitable is (are) transferred to the
Contract, Equitable will withdraw from such Account an amount equal to the
lesser of (a) the full amount of partial withdrawal requested or (b) the Annuity
Value of such Account, provided the request for partial withdrawal is made after
either (i) the later of (a) the completion of five Participation years with
respect to such Participant and (b) such Participant's attainment of age 59
years and six months, or (ii) such Participant's attainment of age 70 years and
six months. If a partial withdrawal with respect to such Participant is made
prior to such time, Equitable will withdraw from such Account an amount equal to
the amount of partial withdrawal requested plus a withdrawal charge. Such
withdrawal charge will equal the lesser of (a) 6% of the total amount to be
withdrawn from the Account pursuant to this Section (including such charge) and
(b) the excess, if any, of (i) 9% of the total Contributions made on behalf of
such Participant during the current Participation year and the preceding nine
completed Participation years over (ii) the cumulative total of any prior
withdrawal charges made pursuant to this Section.
With respect to partial withdrawals requested by a Participant for whom cash
value(s) of existing contract(s) issued by Equitable is (are) transferred to the
contract pursuant to Section 2.01, Equitable will withdraw from such Account an
amount equal to the lesser of (a) the full amount of partial withdrawal
requested or (b) the Annuity Value of such Account, provided the request for
partial withdrawal is made
Page 7
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
after such Participant's attainment of age 59 years and six months. If a partial
withdrawal with respect to such Participant is made prior to such time,
Equitable will withdraw from such Account an amount equal to the amount of
partial withdrawal requested plus a withdrawal charge. Such withdrawal charge
will be an amount equal to the sum of the charges described in subsections (a)
and (b) below; provided, however, that in no event will such withdrawal charge
exceed an amount described in subsection (c) below:
(a) With respect to the amount of any withdrawal made up to the excess, if
any, of (1) the cumulative total of all Separate Account Transfers made on
the Participant's behalf over (2) the cumulative total of prior
withdrawals made to which the withdrawal charge described in this
subsection was applied, an amount equal to the lesser of (i) 2% of the
total amount to be withdrawn pursuant to this subsection (including such
charge) and (ii) $200 minus the cumulative total of any prior withdrawal
charges made pursuant to this subsection.
(b) With respect to any withdrawal made to which the withdrawal charge
described in subsection (a) does not apply, 6% of such amount to be
withdrawn (including such charge).
(c) is the excess, if any, of (1) the sum of (i) 2% of the first $10,000 of
Separate Account Transfers made during the current Participation Year and
the preceding nine Participation Years and (ii) 9% of all other
Contributions (excluding Separate Account Transfers) made on behalf of the
Participant during the current Participation Year and the preceding nine
completed Participation Years over (2) the cumulative total of any prior
withdrawal charges made pursuant to this Section.
Upon withdrawal pursuant to either of the preceding two paragraphs, Equitable
will pay the lesser of the Cash Value of such Account or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by such Participant.
Upon any payment to a Participant pursuant to this Section, Equitable will be
released from any and all liability for payments with respect to the
Contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to this Section may be deferred by
Equitable in accordance with the provisions of Section 4.08.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300. If a withdrawal from the Account made pursuant to this
Section would result in an Annuity Value of less than $200, Equitable will
withdraw the Annuity Value of the Account, pay the Cash Value of the Account to
the Participant, and will terminate such Participant's participation under the
Contract.
SECTION 2.06 ANNUAL ADMINISTRATIVE CHARGE
As of the last day of each Participation year before a Participant's Retirement
Date, Equitable will withdraw from the Guaranteed Interest Account maintained
under the Contract, as to the Contributions remitted with respect to such
Participant, an annual administrative charge equal to the lesser of $30 and 2%
of the sum of (i) the Annuity Value of the Guaranteed Interest Account at the
end of that Participation Year and (ii) any withdrawals made from such Account
pursuant to Section 2.05 during that Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Value of such Participant's Account pursuant to Section 3.02, or upon
termination of such Account pursuant to Section 2.04 or Section 2.07 during a
Participation Year, Equitable will withdraw the administrative charge described
in this Section for the applicable part of that Participation Year.
SECTION 2.07 DEATH BENEFIT
If the Employer reports to Equitable, or if Equitable otherwise ascertains, that
a Participant has died while an Account for such Participant is maintained under
the Contract and before such Participant's Retirement Date, Equitable, upon
receipt of due proof of such death, will pay in a single sum to the beneficiary
designated by such Participant to receive such payment the amount of death
benefit payable with respect to such Participant. The amount of the death
benefit with respect to a Participant at any time prior to the Retirement Date
is equal to the greater of (i) the Annuity Value of the Guaranteed Interest
Account maintained under the Contract for such Participant and (ii) the minimum
death benefit with respect to such Participant. Such minimum death benefit is
the sum of all Contributions made with respect to such Participant pursuant to
Section 2.01 (before reduction pursuant to said Section) less an adjustment for
any withdrawals made pursuant to Section 2.05 from the Account maintained under
the Contract for such Participant. Any such withdrawal will reduce the minimum
death benefit (as adjusted by an previous such withdrawal) by an amount which is
in the same proportion as the amount being withdrawn is to the Annuity Value
then in the Guaranteed Interest Account maintained under the Contract for such
Participant. If, in accordance with the provisions of Section 2.01, the cash
value of an Annuity contract issued by Equitable, which provides for a death
benefit before retirement equal to the greater of the contract cash
Page 8
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
value or an alternative amount based on premiums paid or contributions made
under the Annuity contract, is transferred to the Contract, such alternative
amount as of the date of transfer will be included in the "sum of all
Contributions" in lieu of the amount of cash value transferred, for purposes of
the death benefit under the Contract.
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefor, be withdrawn from the Guaranteed
Interest Account maintained with respect to such Participant under the Contract.
Upon such payment, Equitable will be released from any and all liability for
payments with respect to the Contributions from which the Annuity Value arose.
SECTION 2.08 CHANGE OF DEDUCTIONS FOR NEW PARTICIPANTS
Equitable reserves the right to make deductions to the extent permitted by
applicable law from Contributions made on behalf of new Participants at any time
on or after the Contract Change Date, by at least 90 days advance written notice
to the Contract Holder and by amendment to the Contract. Equitable will
thereupon establish a new Contract Change Date which shall be at least 5 years
later.
Equitable may lower the amount of the administrative charge described in Section
2.06 for new Participants at any time, by at least 15 days advance written
notice to the Contract Holder.
SECTION 2.09 CHANGE OF DEDUCTIONS AND CHARGES FOR EXISTING PARTICIPANTS
Equitable may lower the amount of the administrative charge described in Section
2.06 for existing Participants at any time, by at least 15 days advance written
notice to the Contract Holder and to such Participants.
PART III -- ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT
The term "Fixed Annuity Benefit" means an Annuity Benefit under which the
monthly payments with respect to a payee are payable in a specified dollar
amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS
As of a Participant's Retirement Date, provided such Participant is then living,
the Annuity Value of such Participant's Guaranteed Interest Account shall be
applied to provide the Normal Form of Annuity Benefit, unless such Participant
elects (i) to receive the Cash Value of such Account in a single sum or (ii) to
apply such Annuity Value or Cash Value, whichever is applicable pursuant to the
first paragraph of Section 3.03, to provide an Annuity Benefit on any other
annuity form offered by Equitable, as elected by the Participant, subject to
Equitable's rules then in effect and any applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.04 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Value of such Participant's Guaranteed
Interest Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.03 and
3.04. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form.
SECTION 3.03 AMOUNT OF ANNUITY BENEFITS
If a Participant elects pursuant to the first paragraph or third paragraph of
Section 3.02 to receive an Annuity Benefit in lieu of the Cash Value of the
Guaranteed Interest Account, the amount applied to provide the Annuity Benefit
will be (i) the Annuity Value of such Account if the payments under the annuity
form elected are contingent upon the survival of a person, or (ii) the Cash
Value of such Account if the payments under the annuity form elected are not
contingent upon the survival of a person.
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<PAGE>
ANNUITY BENEFITS (continued)
The amount applied to provide an Annuity Benefit shall be reduced by the amount,
as determined by Equitable, of any applicable taxes on annuity considerations.
If such amount is applied on or after the completion of five Participation Years
with respect to such Participant, or if such amount is applied on behalf of a
Participant for whom cash value(s) of existing contract(s) issued by Equitable
was (were) transferred to the Contract pursuant to Section 2.01, the balance
shall purchase the Annuity Benefit on the basis of either (i) the Table of
Guaranteed Annuity Payments shown below or (ii) Equitable's current individual
annuity rates for payment of proceeds, whichever rates would provide a larger
benefit with respect to the payee. If such current individual annuity rates are
used, such Participant's certificate will be replaced by an Equitable
supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a participant for whom no
cash value(s) of existing contract(s) issued by Equitable was (were) transferred
to the Contract, the balance, after any applicable tax on annuity
considerations, shall purchase the Annuity Benefit on the basis of either (i)
the Table of Guaranteed Annuity Payments shown below or (ii) Equitable's current
individual annuity rates applicable to funds which derive from sources outside
Equitable, whichever rates would provide a larger benefit with respect to the
payee. If such current individual annuity rates are used, such Participant's
certificate will be replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Guaranteed Interest Account
maintained for such Participant shall terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form, are based on 3 1/4% interest and the 1971 ELAS Mortality Table.
Equitable may change the monthly income amounts contained in the Tables of
Guaranteed Annuity Payments and the bases for determining such amounts, for new
Participants, by at least 90 days advance notice to the Contract Holder and by
an amendment to the Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/4% interest and the 1971 ELAS Mortality Table.
SECTION 3.04 PAYMENT OF ANNUITY BENEFITS
The entire interest of a Participant will be distributed to such Participant not
later than the close of such Participant's taxable year of attainment of age 70
years and six months, or will be distributed in equal or substantially equal
installments over
(A) the life of such Participant and such Participant's spouse, or
(B) a period not extending beyond the life expectancy of such
Participant or the life expectancy of such Participant or the
life expectancy of such Participant and such Participant's
spouse.
If the Participant dies before such Participant's interest has been distributed
to such Participant, or if distribution has been commenced as provided in the
first paragraph of this Section to such Participant's spouse, and such spouse
dies before the entire interest has been distributed to such spouse, the entire
interest (or the remaining part of such interest if the distribution thereof has
commenced) will, within five years after the death of such Participant (or the
death of such Participant's surviving spouse), be distributed, or applied to the
purchase of an annuity for the beneficiary or beneficiaries of such Participant
(or such Participant,s surviving spouse) which will be payable for the life of
such beneficiary or beneficiaries (or for a term certain not extending beyond
the life expectancy of such beneficiary or beneficiaries) and which annuity will
be immediately distributed to such beneficiary or beneficiaries. The preceding
sentence shall have no application if distributions over a term certain
commenced before the death of the Participant and the term certain is for a
period permitted under the first paragraph of this Section.
Evidence of each payee's survival must be furnished to Equitable either by
personal endorsement of the check drawn for payment or by other means
satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be
Page 10
<PAGE>
ANNUITY BENEFITS (continued)
charged against and underpayments will be added to any payments thereafter
falling due under the Contract with respect to the payee. The liability of
Equitable with respect to a payee is limited to the correct information and the
actual amounts used to provide the benefits then in force with respect to the
payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Upon election by a Participant pursuant to Section 3.02 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.02.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of age of any person upon whose
life an annuity form depends.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM -- 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Male Female Age
Age 60 61 62 63 64 65 66 67 68 69 70
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.58 4.64 4.70 4.76 4.82 4.88 4.94 5.00 5.05 5.11
61 4.55 4.62 4.68 4.74 4.81 4.87 4.93 5.00 5.06 5.12 5.18
62 4.58 4.65 4.72 4.78 4.85 4.92 4.99 5.05 5.12 5.19 5.25
63 4.61 4.68 4.75 4.82 4.89 4.97 5.04 5.11 5.18 5.25 5.32
64 4.64 4.71 4.79 4.86 4.94 5.01 5.09 5.17 5.24 5.32 5.40
65 4.67 4.74 4.82 4.90 4.98 5.06 5.14 5.22 5.30 5.36 5.47
66 4.69 4.77 4.85 4.93 5.02 5.10 5.18 5.27 5.35 5.44 5.53
67 4.72 4.80 4.88 4.97 5.05 5.14 5.23 5.31 5.40 5.50 5.59
68 4.74 4.82 4.91 5.00 5.09 5.18 5.27 5.36 5.45 5.55 5.65
69 4.76 4.85 4.94 5.03 5.12 5.22 5.31 5.41 5.50 5.60 5.73
70 4.78 4.87 4.96 5.06 5.16 5.26 5.36 5.45 5.56 5.65 5.76
</TABLE>
FIXED ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
Age Males Females
- --- ----- -------
60 5.88 4.99
61 6.04 5.11
62 6.21 5.24
63 6.38 5.38
64 6.57 5.53
65 6.77 5.68
66 6.98 5.84
67 7.19 6.01
68 7.42 6.20
69 7.67 6.39
70 7.93 6.67
Page 11
<PAGE>
ANNUITY BENEFITS (continued)
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
PART IV -- GENERAL PROVISIONS
SECTION 4.01 CONTRACT
The Contract constitutes the entire Contract between the parties and the
provisions of the Contract alone will govern with respect to the rights and
obligations of Equitable. The provisions of the Contract will be applied
separately with respect to each Participant. Nothing in the enrollment form
referred to in Section 1.05, the Plan or custodial agreement referred to in
Section 4.10 nor any modification, amendment, or supplement to any such
documents will in any way be construed to enlarge, change, vary or in any other
way affect the obligations of Equitable as expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE
Equitable reserves the right to amend the Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
shall include, but not be limited to, the right to conform the Contract and any
certificate to reflect changes in the Code, or in regulations or published
rulings of the Internal Revenue Service, so that each such certificate will
continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY
The entire interest of any Participant under the Contract is nonforfeitable.
No interest of a Participant under the Contract may be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law, no such amount will in any way
be subject to any claim against such payee.
SECTION 4.04 PARTICIPATION IN SURPLUS
The Contract and all other contracts in the same class of contracts shall be
combined for the purpose of ascertaining the annual surplus of Equitable to be
apportioned to said contracts as a dividend, and the portion of any such
dividend that is to be allocated to the Contract shall be determined by
Equitable. The participation of this class of contracts in annual surplus is,
however, expected to be minimal. Any amount so allocated to the Contract shall
be payable as of January 1 of the calendar year in which a dividend is
apportioned and will be payable in cash and shall be equitably allocated by
Equitable to the Guaranteed Interest Accounts maintained hereunder for
Participants.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.,
SECTION 4.05 BENEFICIARY
Each Participant, as of such Participant's Participation Date is to provide
Equitable with an initial designation of the beneficiary entitled to receive any
death benefit payable with respect to such Participant pursuant to Section 2.07.
The Participant may change such designation from time to time during such
Participant's lifetime and while Accounts for such Participants are being
maintained hereunder. Any such designation or change will be made by written
notice in a form satisfactory to Equitable. A change will, upon receipt at a
designated Equitable Office, take effect as of the time the written notice was
signed, whether or not the Participant is living on the date of receipt, but
without further liability as to any pay-
Page 12
<PAGE>
GENERAL PROVISIONS (continued)
ment or other settlement made by Equitable before receipt of such change.
Unless otherwise specified in the designation, if a Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant, and if more than one survive they
will share equally.
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.07 for which there is no designated beneficiary living at the death of
the Participant will be payable in a single sum to the children of the
Participant who survive the Participant, in equal shares, or should none
survive, then to the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.06 DISQUALIFICATION
In the event that an annuity purchased hereunder with respect to a Participant
fails to qualify as an Annuity as described in Section 1.03, Equitable shall
have the right, upon receiving notice of such fact before the Retirement Date,
to terminate participation with respect to such Participant under the Contract
and pay to such Participant the amount in the Account maintained with respect to
such Participant less a deduction for the appropriate part attributable to such
Participant of any Federal income tax payable by Equitable which would not have
been payable if such Participant had an Annuity under the Contract.
SECTION 4.07 FUTURE PARTICIPANTS
Equitable reserves the right at its sole discretion to curtail or prohibit
further enrollment as Participants under the Contract of any individuals who are
not currently participating under the Contract as of such date of curtailment or
prohibition.
SECTION 4.08 DEFERMENT
Payments by Equitable from the Participant's Guaranteed Interest Account
pursuant to the provisions of Section 2.04, Section 2.05 and Section 2.07, or
any commuted payments arising from a Fixed Annuity Benefit pursuant to Section
3.04, may be deferred for up to six months after receipt of a written request
for such surrender or withdrawal, or receipt of due proof of death of the
Participant, respectively, or receipt of due documentation for such commutation
payment pursuant to Section 3.04. Interest at the current Guaranteed Interest
Rate for such Participant's Guaranteed Interest Account will be allowed on any
such payment deferred for 30 days or more.
SECTION 4.09 ANNUAL NOTICE
At the end of each Participation Year up to and including the Retirement Date,
Equitable will furnish the Participant with a notice showing as of a specified
recent date (1) the Annuity Value of the Guaranteed Interest Account, (2) the
Cash Value of the Guaranteed Interest Account, and (3) the amount of death
benefit payable with respect to the Participant.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY
The sole responsibility of the Contract Holder is to serve as party to the
Contract. The Contract Holder will have no responsibility for the administration
of any Plan, for payments to the Guaranteed Interest Account, or any payments or
other distributions hereunder. Equitable will deal with the Contract Holder in
accordance with the terms and conditions of the custodial agreement pursuant to
which the Contract Holder agreed to act as such and the Contract and in such
manner as the Contract Holder and Equitable may agree, without the consent of
any other person. Any Employer making Contributions under the Contract shall be
deemed to have adopted and accepted the custodial agreement as part of the Plan
with respect to which such Contributions are made.
SECTION 4.11 AGE AND SEX
If the Annuitant's age or sex has been misstated, any benefits will be those
which would have been purchased at the correct age and sex. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
Page 13
<PAGE>
APPLICATION FOR GROUP ANNUITY CONTRACT
To:
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES [EQUITABLE LOGO]
UNITED STATES TRUST COMPANY OF NEW YORK
- --------------------------------------------------------------------------------
(hereinafter called the Applicant)
of 45 Wall Street, New York, New York 10005
- --------------------------------------------------------------------------------
(Applicant's Head Office Address)
HEREBY APPLIES for a Group Annuity contract in the form attached, and approves
and accepts the terms of such Group Annuity contract. This application
supersedes any application for the said contract previously signed by the
Applicant.
This contract will take effect as of March 7, 1980.
----------------
Dated at New York, New York March 7, 1980
--------------------------------------
Signature of
Applicant /s/ Signature Unreadable
-------------------------------------
-----------------------------------------------
-----------------------------------------------
Official Title Vice President
--------------------------------
PF 92.580
<PAGE>
Attached to and made part of Group Annuity Contract No. 11929CI
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective August 15, 1981, said contract is amended as
follows:
1. Contributions made to the contract, less applicable premium taxes, as
determined by Equitable, may be allocated to the Guaranteed Interest Account
or Stock Account maintained for the Participant, or in part to both, as
directed by the Participant.
2. At the Retirement Date, if the Participant is then living, the amount in the
Guaranteed Interest Account and Stock Account will be applied to provide the
Participant with an Annuity Benefit or Cash Value Benefit.
3. ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN A SEPARATE ACCOUNT
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED
ANNUITY BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE
ANNUITY BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT
EXPERIENCE OF THE SEPARATE ACCOUNT. SUCH VARIABLE ANNUITY BENEFIT WILL
INCREASE IF THE AVERAGE DAILY RATE OF INVESTMENT RETURN IN THE SEPARATE
ACCOUNT IS EQUIVALENT TO MORE THAN 6.75% OR 5.25% ANNUALLY AND WILL DECREASE
IF IT IS EQUIVALENT TO LESS THAN 6.75% OR 5.25% ANNUALLY, DEPENDING ON
WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET INVESTMENT RETURN REFERRED TO
IN SECTION 1.20 IS 5% OR 3 1/2%, RESPECTIVELY. THE DAILY RATE OF INVESTMENT
RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75% FOR INVESTMENT
MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND MINIMUM
DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO PROVIDE
FOR TAXES.
THIS CONTRACT MAY NOT BE SUITABLE FOR A PARTICIPANT IF THE ONLY CONTRIBUTION
TO BE MADE ON SUCH PARTICIPANT'S BEHALF IS A SUBSTANTIAL SINGLE SUM
CONTRIBUTION.
PF 14101CI Page 1
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4. The following provisions are added to your Certificate:
To Part 1 of your Certificate
SECTION 1.05A EXISTING PARTICIPANT
The term "Existing Participant" means a Participant for whom Cash Values of
existing annuity contract(s) issued by Equitable is (are) eligible to be
transferred to the Contract pursuant to Section 2.01.
SECTION 1.05B NEW PARTICIPANT
The term "New Participant" means a Participant who is not an Existing
Participant.
SECTION 1.14B ELIGIBLE ANNUITY CERTAIN
The term "Eligible Annuity Certain" means an annuity not involving life
contingencies issued by Equitable which extends beyond the Participant's
attainment of age 59 years and six months and does not permit any prepayment
of the unpaid principal prior to the participant's attainment of age 59 years
and six months.
SECTION 1.19 THE SEPARATE ACCOUNT
The term "Separate Account" means Separate Account A, a separate investment
account maintained by Equitable to which portions of its assets have been
allocated for the Contract and certain other contracts. Equitable reserves
the right to withdraw form the Separate Account and allocate to another
separate account assets determined by Equitable to be associated with the
class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each
investment in the Separate Account, with appropriate adjustments to avoid odd
lots and fractions. On and after the date of any such withdrawal the term
"Separate Account" in the Contract shall mean such other separate account to
which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Account will, at most
times, consist primarily of common stock and other equity-type investment.
Equitable may, however, at its discretion invest the assets of the Separate
Account in any investment permitted by applicable law. Equitable may rely
conclusively on the opinion of counsel (including attorneys in its employ) as
to what investments it is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate the Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or part of its assets in shares or units of
a fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect
to the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration
of the Separate Account under the Investment Company Act of 1940, provided
that such registration or deregistration is in conformity with the
requirements of applicable law; (ii) run the Separate Account under the
direction of a committee, and to discharge such committee at any time; and
(iii) restrict or eliminate any voting rights of participants or other
persons who have voting rights as to the Separate Account.
Assets of the Separate Account attributable to the Contract shall be subject
to a charge at the rate of 1.75% a year, consisting of .15% for investment
management, .35% for financial accounting, .35% for the annuity rate
guarantee and the minimum death benefit, and .90% for expenses and expense
risk. The charge shall be made in accordance with (c) of the Net Investment
Factor provision in Section 1.20.
The assets of the Separate Account are the property of Equitable; however,
the portion of the assets of the Separate Account equal to the reserves and
other contract liabilities with respect to such Account shall not be
chargeable with liabilities arising out of any other business Equitable may
conduct. Equitable reserves the right to transfer assets of the Separate
Account in excess of such reserves and contract liabilities to the general
account of Equitable.
SECTION 1.20 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A
PF 14101CI Page 2
<PAGE>
business day is any day on which there is a sufficient degree of trading in
the portfolio securities of the Separate Account that the Accumulation Unit
Value or Annuity Unit Value might be materially affected by changes in the
value of the portfolio securities in the Separate Account, as determined by
Equitable.
NET INVESTMENT FACTOR: For the Separate Account the Net Investment Factor for
a Valuation Period is (a) divided by (b), minus (c), where
(a) is(1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment
income and the capital gains, realized or unrealized, credited to the
assets of the Separate Account in the Valuation Period for which the Net
Investment Factor is being determined, minus (3) the capital losses,
realized or unrealized, charged against such assets in such Valuation
Period, minus (4) any amount charged against the Separate Account in
such Valuation Period for taxes or for amounts set aside by Equitable as
a reserve for taxes attributable to the maintenance or operation of the
Separate Account;
(b) is the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial accounting, the annuity
rate guarantee and the minimum death benefit, and expenses and expense
risk.
The value of the assets in the Separate Account, referred to above, shall be
taken at their fair market value, or where there is no readily available
market, their fair value, as determined in accordance with accepted
accounting practices and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the
value of the interest of a Participant's Stock Account in the Separate
Account on or before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Value for the
Separate Account has been established at $10.00 as of November 1, 1968. The
New Accumulation Unit Value for each subsequent valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amount payable
from the Separate Account under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value has been
established at $1.00 on November 1, 1968. The New Annuity Unit Value for any
subsequent Valuation Period is the New Annuity Unit Value for the immediately
preceding Valuation Period multiplied by the Adjusted Net Investment Factor
for such subsequent Valuation Period. The Adjusted Net Investment Factor for
a Valuation Period is the Net Investment Factor for such period reduced for
each calendar day in such subsequent Valuation Period by the Net Investment
Factor times (i) .00013366, if the Assumed Base Rate of Net Investment Return
is 5%, and (ii) .00009425, if the Assumed Base Rate of Net Investment Return
shall be 5%, except in states where the rate is not permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average New Annuity Unit Value for a
calendar month is equal to the average of the New Annuity Unit Values of the
Valuation Periods ending in such month.
To Part II of your Certificate
SECTION 2.10 STOCK ACCOUNT
Equitable maintains a Stock Account under the Contract for each Participant
with respect to whom Contributions are made. Any amount allocated to a Stock
Account becomes part of the Separate Account. Any amount withdrawn from a
Stock Account will no longer be part of the Separate Account.
On any date when an amount is allocated to or withdrawn from a Stock Account,
the Stock Ac-
PF 14101CI Page 3
<PAGE>
count will be credited or charged, as the case may be, with a number of
Accumulation Units determined by dividing said amount by the New Accumulation
Unit Value for the Separate Account for the Valuation Period which includes
that date. The number of Accumulation Units in a Stock Account on any date is
equal to (i) the sum of any Accumulation Units that have been credited to the
Stock Account minus (ii) the sum of any Accumulation Units that have been
charged to the Stock Account. The amount in a Stock Account on any date is
equal to the product of (i) the number of Accumulation Units in the Stock
Account on that date and (ii) the Accumulation Unit Value for the Separate
Account for the Valuation Period which includes that date.
SECTION 2.11 TRANSFERS BETWEEN ACCOUNTS
At any time before a Participant's Retirement Date, such Participant, upon
written request, may transfer all or a part of the amounts from the Stock
Account maintained for such Participant to the Guaranteed Interest Account
maintained for such Participant, or may transfer all or a part of the amounts
in the Guaranteed Interest Account maintained for such Participant to the
Stock Account maintained for such Participant. Such transfers will be made as
of the later of (i) the date specified in such request and (ii) the date
Equitable receives such request, and will be subject to Equitable's rules in
effect at the time of transfer.
To Part III of your Certificate
SECTION 3.05 VARIABLE ANNUITY BENEFIT
The term "Variable Annuity Benefit" means an Annuity Benefit under which the
dollar amount of the monthly payments with respect to a payee may increase or
decrease depending on the investment experience of the Separate Account.
The amount of the first, second, and third payments under any Variable
Annuity Benefit provided under the Contract with respect to a payee may
increase or decrease depending on the investment experience of the Separate
Account.
The amount of the first, second, and third payments under any Variable
Annuity Benefit provided under the Contract with respect to a payee is the
monthly amount provided with respect to the payee pursuant to Section 3.03.
The amount of the fourth and each subsequent payment under a Variable Annuity
Benefit will be equal to the number of Annuity Units with respect to such
benefit, multiplied by the Average New Annuity Unit Value for the second
calendar month immediately preceding the date of the payment. The fourth and
subsequent annuity payments under a Variable Annuity Benefit will not be
increased or decreased in amount because of mortality or expense experience.
The number of Annuity Units with respect to a benefit is the number
determined by dividing the amount of the first monthly payment under such
benefit by the New Annuity Unit Value for the Valuation Period which includes
the due date of the first monthly payment.
5. The following sections of your Certificate are amended or modified as
follows:
A. Section 1.15, ANNUITY VALUE, is amended to provide that the "Annuity
Value" with respect to a Participant's Guaranteed Interest Account and
Stock Account shall mean the amounts in such Accounts described in Section
2.02 and 2.10
B. Section 1.16 CASH VALUE, shall read as follows:
SECTION 1.16 CASH VALUE -- NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to a New participant, the term "Cash
Value' with respect to such Participant's Guaranteed Interest Account and
Stock Account means an amount equal to the Annuity Values of such Accounts
after the earliest of the Following occurrences: (i) The later of (a) the
completion of five Participation Years with respect to such Participant
and (b) the Participant's attainment of age 59 years and six months, or
(ii) the Participant's attainment of age 70 years and six months, or (iii)
the completion of 25 Participation Years with respect to such Participant,
or (iv) if the Participant has attained age 55, completed five
Participation Years, and the Cash Values are to be applied to purchase an
Eligible Annuity Certain defined in Section 1.14B. At other times, the sum
of the Cash Values of such Accounts equals the sum of the Annuity Values
of such Accounts, less a withdrawal charge.
PF 14101CI Page 4
<PAGE>
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five
Participation Years with respect to the Participant, the withdrawal charge
equals the lesser of (a) or (b) where:
(a) equals 6% of the sum of the Annuity Values of such Accounts.
(b) is an amount equal to the excess, if any, of (i) 8% of the cumulative
contributions made on behalf of such Participant over (ii) the
cumulative total of any withdrawal charges made pursuant to Sections
2.05 and 2.05A.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five
Participation Years with respect to the Participant, the withdrawal charge
equals the lesser of (a) or (b) where:
(a) equals 6% of the excess of (i) the sum of the Annuity Values of such
Accounts over (ii) the Free Corridor Amount defined in Section 2.05C.
(b) is the excess, if any, of (i) 8% of the total contributions made on
behalf of such Participant during the current Participation Year and
the preceding nine participation Years over (ii) the cumulative total
of any withdrawal charges made pursuant to Sections 2.05 and 2.05A.
The Cash Value of the Guaranteed Interest Account and the Cash Value of
the Stock Account will be in the same proportion as are the Annuity Values
of such Account.
SECTION 1.16B CASH VALUE - EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to an Existing Participant, the term
"Cash Value" with respect to such Participant's Guaranteed Interest
Account and Stock Account means an amount equal to the Annuity Values of
such Accounts after the earliest of the following occurrences: (i) The
Participant's attainment of age 59 years and six months, (ii) the
completion of 20 Participation Years with respect to such Participant, or
(iii) if the Participant has attained age 55 and the Cash Values are to be
applied to purchase an Eligible Annuity Certain defined in Section 1.14B.
At other times, the sum of the Cash Values of such Accounts equals the sum
of the Annuity Values of such Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five
Participation Years with respect to the Participant, the withdrawal charge
equals the sum of the charges described in subsections (a) and (b) below;
provided, however, that such charge does not exceed the amount described
in subsection (c) below where:
(a) is an amount equal to 2% of any Preferred Withdrawal Amounts (defined
in Section 2.05B) that have not previously been withdrawn pursuant to
Section 2.05 and 2.05B.
(b) is an amount equal to 6% of any Regular Withdrawable Amounts (defined
in Section 2.05B) that have not previously been withdrawn pursuant to
Section 2.05 and 2.05B.
(c) is an amount equal to the sum of (a) above, and 6% of the excess, if
any, of (i) the sum of the Annuity Values of such Accounts over (ii)
the cumulative total of Equitable Transferred Funds made with respect
to the Participant that have not previously been withdrawn pursuant
to Section 2.05 and 2.05B.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After five Participation Years have
been completed with respect to the Participant, Equitable (i) will first
withdraw, pursuant to Section 2.05B, the Free Corridor Amount defined in
Section 2.05C and (ii) next withdraw the remaining portion of the sum of
the Annuity Values of such Accounts. A withdrawal charge will apply to the
amount in (ii) above, and will equal the sum of the
PF 14101CI Page 5
<PAGE>
charges described in subsection (a) and (b) of the preceding subsection;
provided, however, that such charge will not exceed an amount equal to the
lesser of the charges defined in (d) and (e) below:
(d) is an amount equal to the sum of (a) in the preceding subsection, and
6% of the excess, in any, of (i) the sum of the Annuity Values of
such Accounts (after withdrawal of the Free Corridor Amount) over
(ii) the cumulative total of Equitable Transferred Funds made on
behalf of the Participant that have not previously been withdrawn
pursuant to Section 2.05 and 2.05B.
(e) is an amount equal to the excess, if any, of (1) the sum of (i) 2% of
the first $10,000 of Equitable Transferred Funds made during the
current Participation Year and the preceding nine Participation Years
and (ii) 8% of all other contributions (excluding Equitable
Transferred Funds) made on behalf of such Participant during the
current Participation Year and the preceding nine completed
Participation Years over (2) the cumulative total of any withdrawal
charges made pursuant to Section 2.05 and 2.05B.
The Cash Value of the Guaranteed Interest Account and the Cash Value of
the Stock Account will be in the same proportion as are the Annuity Values
of such Accounts.
C. Section 1.18, SEPARATE ACCOUNT TRANSFERS, shall read as follows:
SECTION 1.18 EQUITABLE TRANSFERRED FUNDS
The term "Equitable Transferred Funds" with respect to a Participant means
the amount of cash value(s) transferred to the Contract from a contract
issued by Equitable, pursuant to Section 2.01.
D. The second paragraph of Section 2.02, GUARANTEED INTEREST ACCOUNT, is
amended as follows:
a. References to Section 2.05 are replaced by Sections 2.05, 2.05A and
2.05B.
b. The amount in the Guaranteed Interest Account at any time includes
the amount transferred into the Account and does not include amounts
withdrawn or transferred out of such Account.
E. The Sections entitled TERMINATION OF PARTICIPATION (2.04), ANNUAL
ADMINISTRATIVE CHARGE (2.06), DEATH BENEFIT (2.07), ELECTION AND
COMMENCEMENT OF ANNUITY PAYMENTS (3.02), and CONTRACT HOLDER
RESPONSIBILITY (4.10) are amended to change the term "Guaranteed Interest
Account" wherever it appears to "Guaranteed Interest Account and Stock
Account."
F. Section 2.03, ALLOCATION TO ACCOUNT, shall read as follows:
SECTION 2.03 ALLOCATION TO ACCOUNT
Each Contribution made with respect to a Participant pursuant to Section
2.01, after deduction for any applicable taxes, will be allocated, as of
the date by which Equitable has received both such Contribution and
direction as to its allocation, to the Guaranteed Interest Account, or
Stock Account, or in part to each, at the sole direction of the
Participant as specified to Equitable, provided that the percentage
allocated to each Account is a whole number.
Any amount that a Participant has directed to be transferred to the
Guaranteed Interest Account or the Stock Account pursuant to Section 2.11
will be allocated as of the date of such transfer to the appropriate
Account maintained for such Participant.
Interest is allocated to the Guaranteed Interest Account at the end of
each Participation Year, at the time of each transfer or withdrawal
pursuant to Sections 2.05, 2.05A, 2.05B and 2.11 at the time of
application of amounts in the Guaranteed Interest Account to provide
Annuity Benefits, upon termination of participation pursuant to Section
2.04 and upon death of the Participant pursuant to Section 2.07.
PF 14101CI Page 6
<PAGE>
G. Section 2.05, PARTIAL WITHDRAWALS, shall read as follows:
SECTION 2.05 PARTIAL WITHDRAWALS
Subject to any applicable restrictions under the terms of the Plan, a
Participant may elect by written notice to Equitable to make a partial
withdrawal from the Stock Account and the Guaranteed Interest Account
maintained for such Participant before such Participant's Retirement Date.
Upon withdrawal pursuant to Section 2.05, 2.05A or 2.05B, Equitable will
pay the lesser of the sum of the Cash Values of such Accounts or the
amount of partial withdrawal requested to the person entitled to such
payment as designated in writing by such Participant. Unless instructed
otherwise, the amount withdrawn (including the amount of any withdrawal
charge) will be allocated between such Accounts in proportion to the
Annuity Value of each such Account.
Upon any payment to a Participant pursuant to Section 2.05, 2.05A or
2.05B, Equitable will be released from any and all liability for payments
with respect to the Contributions from which the amounts so withdrawn
arose.
Payments to the Participant pursuant to Section 2.05, 2.05A or 2.05B may
be deferred by Equitable in accordance with the provisions of Section
4.08.
Equitable is under no obligation to process any request for partial
withdrawal of less than $300. If a withdrawal from the Accounts made
pursuant to Sections 2.05, 2.05A or 2.05B would result in total Annuity
Values of less than $200, Equitable will so advise the Participant and
reserves the right to withdraw the Annuity Values of the Guaranteed
Interest Account and Stock Account, pay the Annuity Values of such
Accounts to the Participant, and terminate such Participant's
participation under the Contract. If the Participant enrolled in this
Contract on or after the effective date of this rider, the $200 amount
stated above shall be $500.
SECTION 2.05A PARTIAL WITHDRAWALS -- NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
New Participant, Equitable will withdraw from the Stock Account and
Guaranteed Interest Account an amount equal to the lesser of (a) the full
amount of partial withdrawal requested or (b) the sum of the Annuity
Values of such Accounts, provided the request for partial withdrawal is
made after the earliest of the following occurrences: (i) The later of (a)
the completion of five Participation Years with respect to such
Participant and (b) such Participant's attainment of age 59 years and six
months, or (ii) such Participant's attainment of age 70 years and six
months, or (iii) the completion of 25 Participation Years with respect to
such Participant, or (iv) if the Participant has attained age 55, has
completed five Participation Years, and the partial withdrawal is to be
applied to purchase an Eligible Annuity Certain defined in Section 1.14B.
At other times, Equitable will withdraw from such Accounts an amount equal
to the amount of partial withdrawal requested plus a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: If the Participant has not
completed five Participation Years under the Contract, such withdrawal
charge will equal the less of (a) or (b) where:
(a) is an amount equal to 6% of the total amount to be withdrawn from the
account pursuant to this paragraph (including such charge)
(b) is the excess, if any, of (i) 8% of the cumulative total of
Contributions made on behalf of such Participant over (ii) the
cumulative total of any prior withdrawal charges made pursuant to
this Section.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five
Participation Years, with respect to the Participant, there will be no
withdrawal charge if the
PF 14101CI Page 7
<PAGE>
amount of partial withdrawal requested is not greater than the Free
Corridor Amount defined in Section 2.05C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts an
amount equal to the Free Corridor Amount, and (ii) then withdraw an amount
equal to the excess of the amount requested over the Free Corridor Amount,
plus a withdrawal charge. Such withdrawal charge will be equal to the
lesser of (a) or (b) where:
(a) is an amount equal to 6% of the amount withdrawn pursuant to (ii) of
the preceding sentence including such charge, and
(b) is the excess, if any, of (i) 8% of the cumulative total of
contributions made on behalf of such Participant during the current
Participation Year and the nine preceding Participation Years over
(ii) the cumulative total of any prior withdrawal charges made
pursuant to this Section.
SECTION 2.05B PARTIAL WITHDRAWAL -- EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by an
Existing Participant, Equitable will withdraw from the Stock Account and
Guaranteed Interest Account an amount equal to the lesser of (a) the full
amount of partial withdrawal requested or (b) the Annuity Values of such
Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The Participant's attainment of
age 59 years and six months, or (ii) the completion of 20 Participation
Years with respect to such Participant, or (iii) if the Participant has
attained age 55 and the partial withdrawal is to be applied to purchase an
Eligible Annuity Certain defined in Section 1.14B. At other times,
Equitable will withdraw from such Accounts an amount equal to the amount
of partial withdrawal requested plus a withdrawal charge.
PREFERRED WITHDRAWABLE AMOUNT: This is an amount equal to the lesser of
(a) the total of Equitable Transferred Funds made on behalf of the
Participant or (b) $10,000
FREE WITHDRAWABLE AMOUNT: This is an amount equal to the excess , if any,
of (a) the total Equitable Transferred Funds made on behalf of the
Participant over (b) $10,000.
REGULAR WITHDRAWABLE AMOUNT: This is the cumulative total of all
Contributions, other than Equitable Transferred Funds, made on behalf of
the Participant.
ORDER OF WITHDRAWALS: In calculating the withdrawal charge, Equitable will
assume that (a) any Preferred Withdrawable Amounts are first withdrawn,
(b) any Free Withdrawable Amounts are next withdrawn, (c) any Regular
Withdrawable Amounts are next withdrawn, and (d) lastly, any amounts other
than the amounts described in (a), (b), and (c) above are withdrawn.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five
Participation Years with respect to the Participant, the withdrawal charge
equals the sum of the charges described in sub-sections (a), (b), (c) and
(d) below:
(a) With respect to any withdrawals of Preferred Withdrawable Amounts, a
charge of 2% of such withdrawals.
(b) With respect to any withdrawals of Free Withdrawable Amounts, no
charge.
(c) With respect to any withdrawals of Regular Withdrawable Amounts, a
charge of 6% of such withdrawals.
(d) With respect to any withdrawals of amounts other than the amounts in
(a), (b) and (c) above, no charge.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five
Participation Years with respect to the Partici-
PF 14101CI Page 8
<PAGE>
pant,there will be no withdrawal charge if the amount of partial
withdrawal requested is not greater than the Free Corridor Amount defined
in Section 2.05C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (1) first withdraw from such Accounts an
amount equal to the Free Corridor Amount, and (2) then withdraw from such
Accounts an amount equal to the excess of the amount requested over the
Free Corridor Amount, plus a withdrawal charge. Such withdrawal charge
will equal the sum of the charges described in (a), (b), (c), and (d)
above; provided, however, that in no event will such charge exceed an
amount equal to the following: The excess , if any, of (1) the sum of (i)
2% of the first $10,000 of Equitable Transferred Funds made during the
current Participation Year and the preceding nine Participation Years and
(ii) 8% of all other Contributions (excluding Equitable Transferred Funds)
made on behalf of the Participant during the current Participation Year
and the preceding nine completed Participation Years over (2) the
cumulative total of any prior withdrawal charges made pursuant to this
Section.
Whenever an amount is withdrawn from such Accounts that is not greater
than the current Free Corridor Amount, such amount is considered to be (1)
first, a withdrawal of Regular Withdrawable Amounts, (2) next, a
withdrawal of Preferred Withdrawable Amounts, (3) next, a withdrawal of
Free Withdrawable Amounts and (4) lastly, a withdrawal of amounts other
than the amounts in (1), (2) or (3) above. However, no charge will be
assessed with respect to the portion of the withdrawal up to the current
Free Corridor Amount.
SECTION 2.05C FREE CORRIDOR AMOUNT
The term "Free Corridor Amount" with respect to a Participant who has
completed five Participation Years means an amount equal to the excess, if
any, of (i) 10% of the sum of the Annuity Values of the Stock Account and
the Guaranteed Interest Account over (ii) cumulative prior withdrawals
made pursuant to Section 2.05, 2.05A or 2.05B in the current Participation
Year with respect to the Participant.
H. The first paragraph of Section 2.06, ANNUAL ADMINISTRATIVE CHARGE, is
amended by adding the following:
The charge will be allocated between the Stock Account and the Guaranteed
Interest Account in proportion to the Annuity Values of such Accounts at
the end of the Participation Year.
I. Section 2.08, Change of Deductions for New Participants, is deleted as of
August 1, 1981 and Section 2.09, Change of Deductions and Charges for
Existing Participants, shall not apply to Participants enrolled on or
after August 1, 1981.
J. With respect to Section 3.03, AMOUNT OF ANNUITY BENEFITS,
a. Wherever the term "Guaranteed Interest Account" appears, it shall be
changed to "Guaranteed Interest and Stock Account."
b. The second and third sentences of paragraph 2 shall apply to a
Participant who has completed five Participation Years and to an
Existing Participant (as defined in Part 1 of this rider).
c. Paragraph 3 shall apply to a New Participant (as defined in Part 1 of
this rider) before the completion of five Participation Years.
d. The last two paragraphs have been amended to provide that any
Variable Annuity Benefit shall be calculated by Equitable on 1979
ELAS Mortality and an Assumed Base Rate of Net Investment Income
Return of 5% or 3 1/2%, whichever applies pursuant to Section 1.20.
PF 14101CI Page 9
<PAGE>
K. Section 3.04 PAYMENT OF ANNUITY PAYMENTS, is amended by the addition of
the following:
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM --
100% CONTINUATION -- ASSUMED BASE RATE OF NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
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FEMALE AGE
MALE -----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.31 4.35 4.39 4.43 4.47 4.51 4.55 4.59 4.63 4.67 4.71
61 4.35 4.39 4.43 4.48 4.52 4.56 4.61 4.65 4.69 4.73 4.78
62 4.39 4.43 4.48 4.52 4.57 4.61 4.66 4.71 4.75 4.80 4.85
63 4.42 4.47 4.52 4.57 4.62 4.67 4.72 4.77 4.82 4.87 4.92
64 4.46 4.51 4.57 4.62 4.67 4.72 4.77 4.83 4.88 4.94 4.99
65 4.50 4.56 4.61 4.66 4.72 4.78 4.83 4.89 4.95 5.01 5.07
66 4.54 4.60 4.65 4.71 4.77 4.83 4.89 4.95 5.01 5.08 5.14
67 4.58 4.64 4.70 4.76 4.82 4.88 4.95 5.01 5.08 5.15 5.22
68 4.62 4.68 4.77 4.81 4.87 4.95 5.01 5.08 5.15 5.22 5.29
69 4.65 4.72 4.78 4.85 4.92 4.99 5.06 5.14 5.22 5.29 5.37
70 4.69 4.76 4.83 4.90 4.97 5.05 5.12 5.20 5.28 5.36 5.45
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM
-- 100% CONTINUATION -- ASSUMED BASE RATE OF NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
FEMALE AGE
MALE -----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.19 5.23 5.27 5.31 5.34 5.39 5.42 5.46 5.50 5.54 5.58
61 5.23 5.27 5.31 5.35 5.39 5.43 5.47 5.52 5.56 5.60 5.64
62 5.27 5.31 5.35 5.39 5.44 5.48 5.53 5.57 5.62 5.67 5.71
63 5.31 5.35 5.39 5.44 5.49 5.53 5.58 5.63 5.68 5.73 5.78
64 5.34 5.39 5.44 5.48 5.53 5.59 5.64 5.69 5.74 5.79 5.85
65 5.38 5.43 5.48 5.53 5.58 5.64 5.69 5.75 5.80 5.86 5.92
66 5.42 5.47 5.52 5.58 5.63 5.69 5.75 5.81 5.87 5.93 5.99
67 5.45 5.51 5.56 5.62 5.68 5.74 5.80 5.87 5.93 6.00 6.06
68 5.49 5.55 5.61 5.67 5.73 5.80 5.86 5.93 6.00 6.06 6.14
69 5.53 5.59 5.65 5.71 5.78 5.85 5.92 5.99 6.06 6.13 6.21
70 5.56 5.63 5.69 5.76 5.83 5.90 5.97 6.05 6.13 6.21 6.29
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT IF ASSUMED BASE RATE OF NET INVESTMENT RETURN IS
3 1/2% 5%
-------- --------
AGE MALES FEMALES MALES FEMALES
--- ----- ------- ----- -------
60 5.43 4.80 6.36 5.70
61 5.57 4.90 6.50 5.81
62 5.72 5.01 6.65 5.91
63 5.88 5.13 6.81 6.03
64 6.05 5.25 6.97 6.15
65 6.23 5.39 7.16 6.28
66 6.43 5.54 7.35 6.43
67 6.64 5.70 7.56 6.58
68 6.82 5.87 7.79 6.76
69 7.11 6.06 8.03 6.95
70 7.38 6.27 8.30 7.15
Equitable will notify the payee under a Variable Annuity Benefit of the
number of Annuity Units and the Average New Annuity Unit Value used in
determining the amount of each variable payment.
I. Section 4.08 DEFERMENT, shall read as follows:
SECTION 4.08 DEFERMENT
Payments by Equitable from the Participant's Guaranteed Interest Account
pursuant to the provisions of Section 2.04, Sections 2.05, 2.05A and
2.05B, and Section 2.07, or any commuted payments arising from a Fixed
Annuity Benefit pursuant to Section 3.04, may be deferred for up to six
months after receipt of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant,
respectively, or receipt of due documentation for such commutation payment
pursuant to Section 3.04. Interest at the current Guaranteed Interest Rate
for such Participant's Guaranteed Interest Account will be allowed on any
such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the
Participant's Stock Account pursuant to the provisions of Section 2.04,
Sections 2.05, 2.05A and 2.05B, and Section 2.07, or any commuted payments
arising from a Variable Annuity Benefit pursuant to Section 3.04, will be
made within seven days after receipt of a written request for such
surrender or withdrawal, or receipt of due proof of death of the
Participant, respectively, or receipt of due documentation for such
commutation payment pursuant to Section 3.04.
During any period when (i) the sale of securities or the determination of
the New Accumulation Unit Value or the New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or
trading on such Exchange is restricted, or (ii) the Securities and
Exchange Commission may by order permit postponement for the protection of
persons having interests in the Separate Account, Equitable reserves the
right:
PF 14101CI Page 10
<PAGE>
(a) to defer determination of Cash Values or Annuity Values and payment
of Cash Values and Annuity Values, arising from an amount in a
Participant's Stock Account:
(b) to defer payment of any portion of the death benefit arising from an
amount in a Participant's Stock Account;
(c) to defer payment of any variable Annuity Benefit under the Contract
or the application of any such Benefit to provide for any other
payment called for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to
provide any Annuity Benefit permitted under the Contract.
M. Section 4.09, ANNUAL NOTICE, shall read as follows:
SECTION 4.09 ANNUAL NOTICE
At the end of each Participation Year up to an including the Retirement
Date, Equitable will furnish the Participant with a notice showing as of a
specified recent date (1) the Annuity Value of the Guaranteed Interest
Account, (2) the total number of Accumulation Units credited to the Stock
Account, (3) the New Accumulation Unit Value, (4) the sum of the Cash
Values of the Guaranteed Interest Account and the Stock Account and (5)
the amount of death benefit payable with respect to the Participant. After
the Retirement Date Equitable will notify the Participant of the number of
Annuity Units and the Average New Annuity Unit Value used in determining
the amount of each Variable Annuity Benefit payment, if any.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By: /s/ Signature Unreadable By /s/ Coy Eklund
------------------------ --------------
President
Title S/V/P By /s/ Rodney L. Enochs
----- --------------------
Vice President and Secretary
Dated 8/12/81 Date of Issue Aug 12 1981
------- -----------
At N.Y., N.Y.
----------
PF 14101CI Page 11
<PAGE>
Attached to and made part of Group Annuity Contract No. 11929CI
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective January 1, 1982, said contract is amended as
follows:
1. The third sentence of Section 1.01 (Employer) shall read as follows:
Any self-employed individual and any employee of a partnership or
corporation is deemed to be his own Employer if he elects to be enrolled
under the Contract as a Participant; the term "Employer" shall also be
deemed to include the spouse of a Participant if such spouse has no earned
income for the taxable year and if the Participant elects to have such
spouse enrolled under the Contract as a Participant.
2. The first sentence of paragraph two of Section 1.06 (Contribution) shall
read as follows:
The aggregate amount of such Contributions in any taxable year of the
Participant shall not exceed (a) $2,000 with respect to amounts contributed
under a Plan described in clause (i) of Section 1.02 to purchase an
Individual Retirement Annuity and (b) $15,000 with respect to amounts
contributed under a plan described in clause (ii) of Section 1.02
constituting a Simplified Employee Pension.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ [Signature Unreadable] By /s/ Coy Eklund
.................................. ..................................
President
Title Senior Vice President By /s/ Rodney L. Enochs
............................... ..................................
Vice President and Secretary
Dated December 22, 1981 Date of Issue December 22, 1981
............................... .......................
At New York, New York
..................................
PF 14106 CI
<PAGE>
Attached to and made part of Group Annuity Contract No. 11929CI
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective January 1, 1982, said contract is amended by
adding the following to the third paragraph of Section 1.10 (Guaranteed Interest
Rate):
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine for
each established Class of Participants a Guaranteed Interest Rate for such Class
which exceeds the applicable Yearly Guaranteed Interest Rate. Equitable will
notify each Participant in writing of the applicable Guaranteed Interest Rate
and duration.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ [Signature Unreadable] By /s/ Coy Eklund
.................................. ..................................
President
Title Senior Vice President By /s/ Rodney L. Enochs
............................... ..................................
Vice President and Secretary
Dated December 22, 1981 Date of Issue December 22, 1981
............................... .......................
At New York, New York
..................................
<PAGE>
Attached to and made part of Group Annuity Contract No. 11929CI
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective April 15, 1982, said contract and riders are
amended as follows:
o Contributions made to the Contract after deduction of any applicable
taxes, will be allocated to the Stock Account, Money Market Account or the
Guaranteed Interest Account maintained for the Participant, in accordance
with Sections 2.02 and 2.03, or in part to any one, as directed by the
Participant.
o The amount in the Stock Account, Money Market Account and the Guaranteed
Interest Account will be applied at the Retirement Date to provide the
Participant with an Annuity Benefit or a Cash Value Benefit if the
Participant is then living, and
o The Participant will have other rights and benefits as described herein.
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN SEPARATE ACCOUNTS
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF
SEPARATE ACCOUNT A. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE
DAILY RATE OF INVESTMENT RETURN IN SEPARATE ACCOUNT A IS EQUIVALENT TO MORE THAN
6.75% OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75%
OR 5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.16 IS 5% OR 3 1/2%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND
MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO
PROVIDE FOR TAXES.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
The provisions on the following pages are part of the Contract.
PF 14111 CI
<PAGE>
This page 2 reserved for information
in connection with the issuance of
certificates under this Contract.
PAGE 2
<PAGE>
This page 3 reserved for information
in connection with the issuance of
certificates under this Contract.
PAGE 3
<PAGE>
PART I - DEFINITIONS
SECTION 1.01 EMPLOYER
The term "Employer" means the sole proprietor, partnership or corporation which
has adopted a Plan. A sole proprietor is deemed to be his own Employer and a
partnership is deemed to be the Employer of each partner.
SECTION 1.02 PLAN
The term "Plan" means (i) a program established by an individual which requires
amounts contributed thereunder to be applied to the purchase of individual
retirement annuities within the meaning of Section 408(b) of the Code and (ii) a
written program established by an Employer constituting a "Simplified Employee
Pension" under Section 408(k) of the Code which requires amounts contributed
thereunder to be applied to the purchase of individual retirement annuities
within the meaning of Section 408(b) of the Code.
SECTION 1.03 ANNUITY
The term "Annuity" means an individual retirement annuity meeting the
requirements of Section 408(b) of the Code.
PF 14111 CI PAGE 4
<PAGE>
DEFINITIONS (continued)
SECTION 1.04 ANNUITY BENEFIT
The term "Annuity Benefit" means a benefit payable by Equitable pursuant to
Section 3.04 of the Contract.
SECTION 1.05A PARTICIPANT
The term "Participant" means a person who has been enrolled by Equitable under
the Contract pursuant to a Plan for the purpose of purchasing an Annuity under
the Contract. A person shall become enrolled under the Contract upon receipt by
Equitable of an enrollment form made available by Equitable and completed in a
manner satisfactory to Equitable. A person who has been enrolled under the
Contract shall be a Participant-owner under the certificate during his lifetime.
An Annuity is purchased for a person enrolled under the Contract upon receipt by
Equitable of an initial Contribution for the Participant.
SECTION 1.05B EXISTING PARTICIPANT
The term "Existing Participant" means a Participant for whom Cash Values of
existing annuity contract(s) issued by Equitable were eligible to be transferred
to the Contract pursuant to Section 2.01 and who was enrolled under the Contract
on or prior to April 14, 1982.
SECTION 1.05C NEW PARTICIPANT
The term "New Participant" means a Participant who is not an Existing
Participant.
SECTION 1.06 CONTRIBUTION
The term "Contribution" means a payment made to Equitable for a Participant with
respect to an Annuity purchased for such Participant under the Contract.
Equitable is under no obligation to accept any Contribution less than $20.00.
The aggregate amount of such Contributions in any taxable year of the
Participant shall not exceed (a) $2000 with respect to amounts contributed under
a Plan described in clause (i) of Section 1.02 to purchase an Individual
Retirement Annuity and (b) $15,000 with respect to amounts contributed under a
Plan described in clause (ii) of Section 1.02 constituting a Simplified Employer
Pension. Amounts transferred to the Contract from an individual retirement
account or annuity which meets the requirements of Section 408(a) or (b),
respectively, of the Code, from a Pension Plan Endowment contract issued by
Equitable as an individual retirement annuity, or amounts contributed under the
Rollover Contribution Basis pursuant to subsection B of Section 2.01, are not
subject to the above limitations on Contributions.
SECTION 1.07 PARTICIPATION DATE
The term "Participation Date" with respect to a Participant means the date as of
which Equitable has enrolled such Participant under the terms of the Contract.
SECTION 1.08 PARTICIPATION YEAR
The term "Participation Year" with respect to a Participant means the twelve
month period beginning on (i) the Participation Date, and (ii) each anniversary
thereof, unless otherwise agreed to in writing by Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS
Except as provided in Section 1.10, the term "Class of Participants" refers to
all Participants whose Participation Date is in the same calendar year.
SECTION 1.10 GUARANTEED INTEREST RATE
For each Guaranteed Interest Account, the term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in such
Account. Interest accrues daily. The Guaranteed Interest Rate will never be less
than 3% per annum.
Equitable will from time to time establish and make available for new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new Class of Participants will be established effective with the
effective date of the occurrence of (i), (ii) or (iii) above or any combination
thereof.
For the calendar year next succeeding the end of the period for which an
established Initial Guaranteed Interest Rate is effective and for each
subsequent calendar year thereafter, Equitable will determine for each
established Class of Participants before the beginning of such calendar year a
Yearly Guaranteed Interest Rate for such Class, which Yearly Guaranteed Interest
Rate will not be lower than the effective Minimum Guaranteed Interest Rate
applicable for such Class for such year. For any established Class of
Participants, Equitable reserves the right to change the Minimum Guaranteed
Interest Rate and the applicable period therefor, provided that any such Minimum
Guaranteed Interest Rate will not be lower than the Minimum Guaranteed Interest
Rate that would have been in effect in the absence of such
PF 14111 CI PAGE 5
<PAGE>
DEFINITIONS (continued)
change. Equitable will notify each Participant in a Class in writing of the
Yearly Guaranteed Interest Rate or of any change in the Minimum Guaranteed
Interest Rate at least 15 days prior to its effective date.
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine for
each established Class of Participants a Guaranteed Interest Rate for such Class
which exceeds the applicable Yearly Guaranteed Interest Rate. Equitable will
notify each Participant in writing of the applicable Guaranteed Interest Rate
and duration.
SECTION 1.11 RETIREMENT DATE
The term "Retirement Date" means the date on which the Participant is to attain
the retirement age specified in the Participant's enrollment form. Before the
Retirement Date the Participant may elect to change the Retirement Date to
another Retirement Date, which may be any date after the filing of the election
(other than the 29th, 30th, or 31st day of any month). No Retirement Date shall
be earlier than the date of attainment of age 59 years and six months nor shall
be later than the date of attainment of age 70 years and six months. Any
election for such change must be made in writing by the Participant and shall
not take effect until received by Equitable at its Home Office.
SECTION 1.12 NORMAL FORM
The "Normal Form" of an Annuity Benefit under the Contract means, (i) if the
Participant has a living spouse at the Retirement Date, the Fixed Annuity
Benefit payable on the Joint and Survivor Life Annuity Form with such spouse as
the contingent annuitant (100% continuation), and (ii) if the Participant does
not have a living spouse at the Retirement Date, the Fixed Annuity Benefit
payable on the Life Annuity Form.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM
The term "Joint and Survivor Life Annuity Form" means an annuity providing
monthly payments while either of two persons upon whose lives such payments
depends is living. The monthly amount to be continued when only one of the
persons is living will be equal to a percentage of the monthly amount that was
paid while both were living. This percentage may be 50% or any higher percentage
up to and including 100%, as elected by the Participant. The payments commence
on the date as of which the Joint and Survivor Life Annuity Form is purchased
and terminate with the last payment due before the death of the survivor.
SECTION 1.14A LIFE ANNUITY FORM
The term "Life Annuity Form" means an annuity providing fixed monthly payments
during the lifetime of the person upon whose life such payments depend. The
payments commence on the date as of which the Life Annuity Form is purchased and
terminate with the last payment due before the death of such person.
SECTION 1.14B ELIGIBLE ANNUITY CERTAIN
The term "Eligible Annuity Certain" means an annuity not involving life
contingencies issued by Equitable which extends beyond the Participant's
attainment of age 59 years and six months and does not permit any prepayment of
the unpaid principal prior to the participant's attainment of age 59 years and
six months.
SECTION 1.15 THE SEPARATE ACCOUNTS
The term "Separate Accounts" means the following separate investment accounts
maintained by Equitable to which portions of its assets have been allocated for
the Contract and certain other contracts:
Name Investments
---- -----------
Separate Account A Primarily common stock and other equity-type
investments.
Separate Account E Primarily short-term money market instruments.
Equitable reserves the right to withdraw from any Separate Account and allocate
to another separate account assets determined by Equitable to be associated with
the class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid odd lots and
fractions. On and after the date of
PF 14111 CI PAGE 6
<PAGE>
DEFINITIONS (continued)
any such withdrawal the reference in the Contract to such Separate Account shall
mean such other separate account to which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Accounts will, at most
times, consist primarily of the types of investments indicated above. Equitable
may, however, at its discretion invest the assets of any Separate Account in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including attorneys in its employ) as to what investments it
is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate any Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
any Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) run any Separate Account under the direction of a
committee, and to discharge such committee at any time; and (iii) restrict or
eliminate any voting rights of participants or other persons who have voting
rights as to the Separate Accounts.
Assets of the Separate Accounts attributable to the Contract shall be subject to
a charge at the rate of 1.75% a year, consisting of .15% for investment
management, .35% for financial accounting, .35% for the annuity rate guarantee
and the minimum death benefit, and .90% for expenses and expense risk. The
charge shall be made in accordance with (c) of the Net Investment Factor
provision in Section 1.16.
The assets of Separate Accounts are the property of Equitable; however, the
portion of the assets of each Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising out of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of the Separate Accounts in excess of such
reserves and contract liabilities to the general account of Equitable.
SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which there is a
sufficient degree of trading in the portfolio securities of a Separate Account
that the New Accumulation Unit Value or New Annuity Unit Value might be
materially affected by changes in the value of the portfolio securities in a
Separate Account, as determined by the Separate Account Committee or, if there
is no Committee, by Equitable.
NET INVESTMENT FACTOR: For each Separate Account the Net Investment Factor for a
Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment income
and the capital gains, realized or unrealized, credited to the assets of
the Separate Account in the Valuation Period for which the Net Investment
Factor is being determined, minus (3) the capital losses, realized or
unrealized, charged against such assets in such Valuation Period, minus (4)
any amount charged against the Separate Account in such Valuation Period
for taxes or for amounts set aside by Equitable as a reserve for taxes
attributable to the maintenance or operation of the Separate Account;
(b) is the value of the assets in the Separate Account at the close of business
of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial accounting, the annuity rate
guarantee and the minimum death benefit and expenses and expense risk.
The value of the assets in the Separate Accounts, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
PF 14111 CI PAGE 7
<PAGE>
DEFINITIONS (continued)
their fair value, as determined in accordance with accepted accounting practices
and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the value
of the interest of a Participant's Stock Account or Money Market Account on or
before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Values for the
Separate Accounts have been established as follows:
Account Value Date
------- ----- ----
Separate Account A $10.00 As of November 1, 1968
Separate Account E $10.00 As of September 4, 1974
The new Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from Separate Account A under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value for Separate Account
A has been established at $1.00 as of November 1, 1968. The Annuity Unit Value
for any subsequent Valuation Period is the New Annuity Unit Value for the
immediately preceding Valuation Period multiplied by the Adjusted Net Investment
Factor for such subsequent Valuation Period. The Adjusted Net Investment Factor
for a Valuation Period is the Net Investment Factor for such period reduced for
each calendar day in such subsequent Valuation Period by the Net Investment
Factor times (i) .00013366, if the Assumed Base Rate of Net Investment Return is
5%, and (ii) .00009425, if the Assumed Base Rate of Net Investment Return is 3
1/2%. The Assumed Base Rate of Net Investment Return shall be 5%, except in
states where the rate is not permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average Annuity Unit Value for Separate
Account A for a calendar month is equal to the average of the New Annuity Unit
Values for the Valuation Periods ending in such month.
SECTION 1.17 ANNUITY VALUE
The term "Annuity Value" with respect to a Participant's Guaranteed Interest
Account, Stock Account and Money Market Account, means the amount in such
Accounts pursuant to Sections 2.02 and 2.03.
SECTION 1.18A CASH VALUE - NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to a New Participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock Account
and Money Market Account means an amount equal to the Annuity Values of such
Accounts after the earliest of the following occurrences: (i) The later of (a)
the completion of five Participation Years with respect to such Participant and
(b) the Participant's attainment of age 59 years and six months, or (ii) the
Participant's attainment of age 70 years and six months, or (iii) the completion
of 25 Participation Years with respect to such Participant, or (iv) if the
Participant has attained age 55, completed five Participation Years, and the
Cash Values are to be applied to purchase an Eligible Annuity Certain defined in
Section 1.14B. At other times, the sum of the Cash Values of such Accounts
equals the sum of the Annuity Values of such Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five Participation
Years with respect to the Participant, the withdrawal charge equals the lesser
of (a) or (b) where:
(a) equals 6% of the sum of the Annuity Values of such Accounts.
(b) is an amount equal to the excess, if any, of (i) 8% of the cumulative
contributions made on behalf of such Participant over (ii) the cumulative
total of any withdrawal charges made pursuant to Sections 2.07 and 2.07A.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five Participation
Years with respect to the Participant, the withdrawal charge equals the lesser
of (a) or (b) where:
PF 14111 CI PAGE 8
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DEFINITIONS (continued)
(a) equals 6% of the excess of (i) the sum of the Annuity Values of such
Accounts over (ii) the Free Corridor Amount defined in Section 2.07C.
(b) is the excess, if any, of (i) 8% of the total contributions made on behalf
of such Participant during the current Participation Year and the preceding
nine Participation Years over (ii) the cumulative total of any withdrawal
charges made pursuant to Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account and Money
Market Account will be in the same proportion as are the Annuity Values of such
Accounts.
SECTION 1.18B CASH VALUE - EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to an Existing Participant, the term "Cash
Value" with respect to such Participant's Guaranteed Interest Account, Stock
Account and Money Market Account means an amount equal to the Annuity Values of
such Accounts after the earliest of the following occurrences: (i) the
Participant's attainment of age 59 years and six months, (ii) the completion of
20 Participation Years with respect to such Participant, or (iii) if the
Participant has attained age 55 and the Cash Values are to be applied to
purchase an Eligible Annuity Certain defined in Section 1.14B. At other times,
the sum of the Cash Values of such Accounts equals the sum of the Annuity Values
of such Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five Participation
Years with respect to the Participant, the withdrawal charge equals the sum of
the charges described in subsections (a) and (b) below; provided, however, that
such charge does not exceed the amount described in subsection (c) below where:
(a) is an amount equal to 2% of any Preferred Withdrawable Amounts (defined in
Section 2.07B) that have not previously been withdrawn pursuant to Sections
2.07 and 2.07B.
(b) is an amount equal to 6% of any Regular Withdrawable Amounts (defined in
Section 2.07B) that have not previously been withdrawn pursuant to Sections
2.07 and 2.07B.
(c) is an amount equal to the sum of (a) above, and 6% of the excess, if any,
of (i) the sum of the Annuity Values of such Accounts over (ii) the
cumulative total of Equitable Transferred Funds made with respect to the
Participant that have not previously been withdrawn pursuant to Sections
2.07 and 2.07B.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After five Participation Years have been
completed with respect to the Participant, Equitable (i) will first withdraw,
pursuant to Section 2.07B, the Free Corridor Amount defined in Section 2.07C and
(ii) next withdraw the remaining portion of the sum of the Annuity Values of
such Accounts. A withdrawal charge will apply to the amount in (ii) above, and
will equal the sum of the charges described in subsections (a) and (b) of the
preceding subsection; provided, however, that such charge will not exceed an
amount equal to the lesser of the charges defined in (d) and (e) below:
(d) is an amount equal to the sum of (a) in the preceding subsection, and 6% of
the excess, if any, of (i) the sum of the Annuity Values of such Accounts
(after withdrawal of the Free Corridor Amount) over (ii) the cumulative
total of Equitable Transferred Funds made on behalf of the Participant that
have not previously been withdrawn pursuant to Sections 2.07 and 2.07B.
(e) is an amount equal to the excess, if any, of (1) the sum of (i) 2% of the
first $10,000 of Equitable Transferred Funds made during the current
Participation Year and the preceding nine Participation Years and (ii) 8%
of all other contributions (excluding Equitable Transferred Funds) made on
behalf of such Participant during the current Participation Year and the
preceding nine completed Participation Years over (2) the cumulative total
of any withdrawal charges made pursuant to Sections 2.07 and 2.07B.
The Cash Values of the Guaranteed Interest Account, Stock Account and Money
Market Account will be in the same proportion as are the Annuity Values of such
Accounts.
PF 14111 CI PAGE 9
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DEFINITIONS (continued)
SECTION 1.19 CODE
The term "Code" means the Internal Revenue Code of 1954, as now or hereafter
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.20 EQUITABLE TRANSFERRED FUNDS
The term "Equitable Transferred Funds" with respect to a Participant means the
amount of cash value(s) transferred to the Contract from a contract issued by
Equitable pursuant to Section 2.01.
PART II - PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS
Contributions may be made with respect to a Participant on whichever basis, as
described under subsection A and B, below, as specified upon the Participant's
enrollment under the Contract. If Contributions are made by or on behalf of a
Participant under more than one such basis, Equitable will accept such
Contributions if the Participant is separately enrolled under the Contract under
each basis, and in such case separate certificates will be issued under the
Contract for the Participant reflecting amounts accumulated on the Participant's
behalf attributable to Contributions made under each Contribution basis.
Each Contribution received by Equitable with respect to a Participant will,
before its allocation under the Contract, be reduced by the amount of any
applicable taxes, as determined by Equitable.
A. Flexible Contribution Basis
Contributions are to be made from time to time on the dates and in the amounts
determined in accordance with the terms of the Plan. With each Contribution
there shall be specified the Participant with respect to whom such Contribution
is being made and the amount to be allocated to the Stock Account, Money Market
Account and the Guaranteed Interest Account.
A Participant may, with Equitable's agreement, transfer to the Contract any
amount held with respect to such Participant under an individual retirement
account or annuity meeting requirements of Section 408(a) or (b), respectively,
of the Code issued by Equitable or otherwise, or a Pension Plan Endowment
contract issued by Equitable as an individual retirement annuity, except an
individual retirement account or annuity contract containing any "rollover
account" within the meaning of Section 402(a)(5) or 403(b)(8) of the Code. Any
amount so transferred from an individual retirement account or annuity contract
not issued by Equitable will, before allocation under the Contract, by reduced
by the amount of any applicable taxes, as determined by Equitable.
B. Rollover Contribution Basis
A Participant may make one or more Contributions which in whole or in part
consist of or are derived from "rollover amounts" within the meaning of Section
402(a)(5) or 403(b)(8) of the Code.
SECTION 2.02 STOCK AND MONEY MARKET ACCOUNTS
Equitable maintains a Stock Account and Money Market Account under the Contract
for each Participant with respect to whom Contributions are made. Any amount
allocated to the (i) Stock Account becomes part of Separate Account A, and (ii)
Money Market Account becomes part of Separate Account E. Any amount withdrawn
from an Account will no longer be part of the applicable Separate Account.
On any date when an amount is allocated to or withdrawn from an Account, the
Account will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the New Accumulation
Value for the appropriate Separate Account for the Valuation Period which
includes that date. The number of Units in an Account on any date is equal to
(i) the sum of any Accumulation Units that have been credited to the Account
minus (ii) the sum of any Accumulation Units that have been charged to that
Account. The amount in the Stock Account or Money Market Account on any date is
equal to the product of (i) the number of Accumulation Units in such Account on
that date and (ii) the New Accumulation Unit Value for the appropriate Separate
Account for the Valuation Period which includes that date.
SECTION 2.03 GUARANTEED INTEREST ACCOUNT
Equitable maintains a Guaranteed Interest Account under the Contract for each
Participant with respect to whom Contributions are made. Any amount allocated to
the Guaranteed Interest Account becomes part of the general assets of Equitable,
which support the guarantees of the Contract and other contracts.
The amount in a Guaranteed Interest Account at any time is equal to the sum of
all amounts that have been allocated to such Guaranteed Interest Account
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn pursuant to
Section 2.07, 2.07A, and 2.07B, and Section 2.08 from such Ac-
PF 14111 CI PAGE 10
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PARTICIPANT'S ACCOUNT (continued)
count, and transferred pursuant to Section 2.05 from such Guaranteed Interest
Account, and less the sum of any annual administrative charges accrued but not
made. Equitable guarantees that the amount in a Guaranteed Interest Account at
any time before the Retirement Date will not be less than the sum of all amounts
allocated to such Account pursuant to Section 2.04 or transferred to such
Account pursuant to Section 2.05 and less the sum of all amounts that have been
withdrawn from such Account pursuant to Sections 2.07, 2.07A and 2.07B, and
transferred from such Account pursuant to Section 2.05, all accumulated at 3%
interest, compounded annually. In any Participation Year in which no
Contribution is allocated to a Guaranteed Interest Account, the amount in such
Account at the end of the Participation Year shall not be less than the amount
in such Account at the beginning of the Participation Year plus the sum of all
amounts transferred to such Account pursuant to Section 2.05 less the sum of all
amounts withdrawn and transferred out of such Account pursuant to Sections 2.07,
2.07A and 2.07B, and Section 2.05, all accumulated at 3% interest, compounded
annually.
A Guaranteed Interest Account for a Participant terminates on the earliest of
(i) the Retirement Date, (ii) the death of the Participant, and (iii)
termination of participation pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO ACCOUNT
Each Contribution made with respect to a Participant pursuant to Section 2.01,
after deduction for any applicable taxes, will be allocated, as of the date by
which Equitable has received both such Contribution and direction as to its
allocation, to the Guaranteed Interest Account, Stock Account, or Money Market
Account or in part to each, at the sole direction of the Participant as
specified to Equitable, provided that the percentage allocated to each Account
is a whole number.
Any amount that a Participant has directed to be transferred to the Guaranteed
Interest Account or Stock Account pursuant to Section 2.05 will be allocated as
of the date of such transfer to the appropriate Account maintained for such
Participant.
Interest is allocated to the Guaranteed Interest Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05 and 2.07, 2.07A, and 2.07B, at the time of application of amounts
in the Guaranteed Interest Account to provide Annuity Benefits, upon termination
of participation pursuant to Section 2.06, and upon death of the Participant
pursuant to Section 2.09.
SECTION 2.05 TRANSFERS AMONG ACCOUNTS
At any time before a Participant's Retirement Date, such Participant, upon
written request, (i) may transfer all or a part of the amounts from the Stock
Account or Money Market Account maintained for such Participant to the
Guaranteed Interest Account maintained for such Participant, or (ii) may
transfer all or a part of the amounts in the Guaranteed Interest Account or
Money Market Account maintained for such Participant to the Stock Account
maintained for such Participant. Such transfers will be made as of the later of
(i) the date specified in such request and (ii) the date Equitable receives such
request, and will be subject to Equitable's rules in effect at the time of
transfer. No transfers are permitted from the Guaranteed Interest Account or the
Stock Account maintained for the Participant to the Money Market Account.
SECTION 2.06 TERMINATION OF PARTICIPATION
On or before a Participant's Retirement Date, such Participant may elect by
written notice to terminate participation under the Contract. Upon receipt of
such notice, Equitable will determine the Cash Value, as of the date Equitable
received such notice, of the Guaranteed Interest Account, Stock Account and
Money Market Account maintained for such Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Guaranteed Interest Account,
Stock Account and Money Market Account, pay such Annuity Values and terminate
such Participant's participation under the Contract. This right may be exercised
with respect to the Participant only if both (i) no
PF 14111CI PAGE 11
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PARTICIPANT'S ACCOUNT (continued)
Contributions have been made under the Contract during the last three completed
Participation Years, and (ii) the sum of such Annuity Values is $500 or less.
Equitable reserves the right to terminate a Participant's participation under
the Contract if at least 120 days have elapsed since the issue date shown on the
certificate issued to such Participant under the Contract and no Contributions
have been made under the Contract with respect to such Participant.
Upon payment of such Cash Values or Annuity Values, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Values or Annuity Values arose.
SECTION 2.07 PARTIAL WITHDRAWALS
Subject to any applicable restrictions under the terms of the Plan, a
Participant may elect by written notice to Equitable to make a partial
withdrawal from the Stock Account, Money Market Account and the Guaranteed
Interest Account maintained for such Participant before such Participant's
Retirement Date.
Upon withdrawal pursuant to Section 2.07, 2.07A or 2.07B, Equitable will pay the
lesser of the sum of the Cash Values of such Accounts or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by such Participant. Unless instructed otherwise, the amount withdrawn
(including the amount of any withdrawal charge) will be allocated between such
Accounts in proportion to the Annuity Value of each such Account.
Upon any payment to a Participant pursuant to Section 2.07, 2.07A or 2.07B,
Equitable will be released from any and all liability for payments with respect
to the Contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to Section 2.07, 2.07A or 2.07B may be
deferred by Equitable in accordance with the provisions of Section 4.08.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300. If a withdrawal from the Accounts made pursuant to Sections
2.07, 2.07A or 2.07B would result in total Annuity Values of less than $500.
Equitable will so advise the Participant and reserves the right to withdraw the
Annuity Values of the Guaranteed Interest Account, Stock Account and Money
Market Account, pay the Annuity Values of such Accounts to the Participant, and
terminate such Participant's participation under the Contract. If the
Participant was enrolled in this Contract prior to August 15, 1981, the $500
amount stated above shall be $200.
SECTION 2.07A PARTIAL WITHDRAWALS - NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a New
Participant, Equitable will withdraw from the Stock Account, Money Market
Account and Guaranteed Interest Account an amount equal to the lesser of (a) the
full amount of partial withdrawal requested or (b) the sum of the Annuity Values
of such Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The later of (a) the completion of
five Participation Years with respect to such Participant and (b) such
Participant's attainment of age 59 years and six months, or (ii) such
Participant's attainment of age 70 years and six months, or (iii) the completion
of 25 Participation Years with respect to such Participant, or (iv) if the
Participant has attained age 55, has completed five Participation Years, and the
partial withdrawal is to be applied to purchase an Eligible Annuity Certain
defined in Section 1.14B. At other times, Equitable will withdraw from such
Accounts an amount equal to the amount of partial withdrawal requested plus a
withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: If the Participant has not completed
five Participation Years under the Contract, such withdrawal charge will equal
the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the total amount to be withdrawn from the
Accounts (including such charge) pursuant to this paragraph.
(b) is the excess, if any, of (i) 8% of the cumulative total of Contributions
made on behalf of such Participant over (ii) the cumulative total of any
prior withdrawal charges made pursuant to this Section.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five Participation
Years with respect to the Participant, there will be no withdrawal charge if the
amount of partial withdrawal requested
PF 14111CI PAGE 12
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PARTICIPANT'S ACCOUNT (continued)
is not greater than the Free Corridor Amount defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free Corridor
Amount, Equitable will (i) first withdraw from such Accounts an amount equal to
the Free Corridor Amount, and (ii) then withdraw an amount equal to the excess
of the amount requested over the Free Corridor Amount, plus a withdrawal charge.
Such withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the amount withdrawn (including such charge)
pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of contributions
made on behalf of such Participant during the current Participation Year
and the nine preceding Participation Years over (ii) the cumulative total
of any prior withdrawal charges made pursuant to this Section.
SECTION 2.07B PARTIAL WITHDRAWAL - EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by an
Existing Participant, Equitable will withdraw from the Stock Account, Money
Market Account and Guaranteed Interest Account an amount equal to the lesser of
(a) the full amount of partial withdrawal requested or (b) the Annuity Values of
such Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) the Participant's attainment of age
59 years and six months, or (ii) the completion of 20 Participation Years with
respect to such Participant, or (iii) if the Participant has attained age 55 and
the partial withdrawal is to be applied to purchase an Eligible Annuity Certain
defined in Section 1.14B. At other times, Equitable will withdraw from such
Accounts an amount equal to the amount of partial withdrawal requested plus a
withdrawal charge.
PREFERRED WITHDRAWABLE AMOUNT: This is an amount equal to the lesser of (a) the
total of Equitable Transferred Funds made on behalf of the Participant or (b)
$10,000.
FREE WITHDRAWABLE AMOUNT: This is an amount equal to the excess, if any, of (a)
the total Equitable Transferred Funds made on behalf of the Participant over (b)
$10,000.
REGULAR WITHDRAWABLE AMOUNT: This is the cumulative total of all Contributions,
other than Equitable Transferred Funds, made on behalf of the Participant.
ORDER OF WITHDRAWALS: In calculating the withdrawal charge, Equitable will
assume that (a) any Preferred Withdrawable Amounts are first withdrawn, (b) any
Free Withdrawable Amounts are next withdrawn, (c) any Regular Withdrawable
Amounts are next withdrawn, and (d) lastly, any amounts other than the amounts
described in (a), (b), and (c) above are withdrawn.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five Participation
Years with respect to the Participant, the withdrawal charge equals the sum of
the charges described in subsections (a), (b), (c) and (d) below:
(a) With respect to any withdrawals of Preferred Withdrawable Amounts, a charge
of 2% of such withdrawals.
(b) With respect to any withdrawals of Free Withdrawable Amounts, no charge.
(c) With respect to any withdrawals of Regular Withdrawable Amounts, a charge
of 6% of such withdrawals.
(d) With respect to any withdrawals of amounts other than the amounts in (a),
(b) and (c) above, no charge.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five Participation
Years with respect to the Participant, there will be no withdrawal charge if the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free Corridor
Amount. Equitable will (1) first withdraw from such Accounts an amount equal to
the Free Corridor Amount, and (2) then withdraw from such Accounts an amount
equal to the excess of the amount requested over the Free Cor-
PF 14111CI PAGE 13
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PARTICIPANT'S ACCOUNT (continued)
ridor Amount, plus a withdrawal charge. Such withdrawal charge will equal the
sum of the charges described in (a), (b), (c), and (d) above; provided, however,
that in no event will such charge exceed an amount equal to the following: The
excess, if any, of (1) the sum of (i) 2% of the first $10,000 of Equitable
Transferred Funds made during the current Participation Year and the preceding
nine Participation Years and (ii) 8% of all other Contributions (excluding
Equitable Transferred Funds) made on behalf of the Participant during the
current Participation Year and the preceding nine completed Participation Years
over (2) the cumulative total of any prior withdrawal charges made pursuant to
this Section.
Whenever an amount is withdrawn from such Accounts that is not greater than the
current Free Corridor Amount, such amount is considered to be (1) first, a
withdrawal of Regular Withdrawable Amounts, (2) next, a withdrawal of Preferred
Withdrawable Amounts, (3) next, a withdrawal of Free Withdrawable Amounts and
(4) lastly, a withdrawal of amounts other than the amounts in (1), (2), or (3)
above. However, no charge will be assessed with respect to the portion of the
withdrawal up to the current Free Corridor Amount.
SECTION 2.07C FREE CORRIDOR AMOUNT
The term "Free Corridor Amount" with respect to a Participant who has completed
five Participation Years means an amount equal to the excess, if any, of (i) 10%
of the sum of the Annuity Values of the Stock Account, Money Market Account and
the Guaranteed Interest Account over (ii) cumulative prior withdrawals made
pursuant to Section 2.07, 2.07A or 2.07B in the current Participation Year with
respect to the Participant.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE
As of the last day of each Participation Year before a Participant's Retirement
Date, Equitable will withdraw from the Guaranteed Interest Account, Stock
Account and Money Market Account maintained under the Contract, as to the
Contributions remitted with respect to such Participant, an annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i) the
Annuity Values of the Guaranteed Interest Account, Stock Account and Money
Market Account at the end of that Participation Year and (ii) any withdrawals
made from such Accounts pursuant to Section 2.07, 2.07A and 2.07B during that
Participation Year. The charge will be allocated between the Stock Account,
Money Market Account and Guaranteed Interest Account in proportion to the
Annuity Values of each such Account, at the end of the Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Values or Cash Values of such Participant's Account pursuant to Section 3.03, or
upon termination of such Account pursuant to Section 2.06 or Section 2.09 during
a Participation Year, Equitable will withdraw the administrative charge
described in this Section for the applicable part of that Participation Year.
SECTION 2.09 DEATH BENEFIT
If the Employer reports to Equitable, or if Equitable otherwise ascertains, that
a Participant has died while Accounts for such Participant are maintained under
the Contract and before such Participant's Retirement Date, Equitable, upon
receipt of due proof of such death, will pay in a single sum to the beneficiary
designated by such Participant to receive such payment the amount of death
benefit payable with respect to such Participant. The amount of the death
benefit with respect to a Participant at any time prior to the Retirement Date
is equal to the greater of (i) the sum of the Annuity Values of the Guaranteed
Interest Account, Stock Account and Money Market Account maintained under the
Contract for such Participant and (ii) the minimum death benefit with respect to
such Participant. Such minimum death benefit is the sum of all Contributions
made with respect to such Participant pursuant to Section 2.01 (before reduction
of any applicable taxes) less an adjustment for any withdrawals made pursuant to
Sections 2.07, 2.07A and 2.07B from the Accounts maintained under the Contract
for such Participant. Any such withdrawal will reduce the minimum death benefit
(as adjusted by any previous such withdrawal) by an amount which is in the same
proportion as the amount being withdrawn is to the Annuity Values then in the
Guaranteed Interest Account, Stock Account and Money Market Account maintained
under the Contract for such Participant. If, in accordance with the provisions
of Section 2.01, the cash value of an Annuity contract issued by Equitable,
which provides for a death benefit before retirement equal to the greater of the
contract cash value or an alternative amount based on premiums paid or
contributions
PF 14111CI PAGE 14
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PARTICIPANT'S ACCOUNT (continued)
made under the Annuity contract, is transferred to the Contract, such
alternative amount as of the date of transfer will be included in the "sum of
all Contributions" in lieu of the amount of cash value transferred, for purposes
of the death benefit under the Contract.
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefor, be withdrawn from the Guaranteed
Interest Account, Stock Account and Money Market Account maintained with respect
to such Participant under the Contract. Upon such payment, Equitable will be
released from any and all liability for payments with respect to the
Contributions from which the Annuity Values arose.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT
The term "Fixed Annuity Benefit" means an Annuity Benefit under which the
monthly payments with respect to a payee are payable in a specified dollar
amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT
The term "Variable Annuity Benefit" means an Annuity Benefit under which the
dollar amount of the monthly payments with respect to a payee may increase or
decrease depending on the investment experience of Separate Account A.
The amount of the first, second, and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to the payee pursuant to Section 3.04. The amount
of the fourth and each subsequent payment under a Variable Annuity Benefit will
be equal to the number of Annuity Units with respect to such benefit, multiplied
by the Average New Annuity Unit Value for the second calendar month immediately
preceding the date of the payment. The fourth and subsequent annuity payments
under a Variable Annuity Benefit will not be increased or decreased in amount
because of mortality or expense experience. The number of Annuity Units with
respect to a benefit is the number determined by dividing the amount of the
first monthly payment under such benefit by the New Annuity Unit Value for the
Valuation Period which includes the due date of the first monthly payment.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS
As of a Participant's Retirement Date, provided such Participant is then living,
the Annuity Values of such Participant's Guaranteed Interest Account, Stock
Account and Money Market Account shall be applied to provide the Normal Form of
Annuity Benefit, unless such Participant elects (i) to receive the Cash Value of
such Account in a single sum or (ii) to apply such Annuity Value or Cash Value,
whichever is applicable pursuant to the first paragraph of Section 3.04, to
provide an Annuity Benefit on any other annuity form offered by Equitable, as
elected by the Participant, subject to Equitable's rules then in effect and any
applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.06 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Values of such Participant's Guaranteed
Interest Account, Stock Account and Money Market Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form.
PF 14111CI PAGE 15
<PAGE>
ANNUITY BENEFITS (continued)
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS
If a Participant elects pursuant to the first paragraph or third paragraph of
Section 3.03 to receive an Annuity Benefit in lieu of the Cash Values of the
Guaranteed Interest Account, Stock Account and Money Market Account, the amount
applied to provide the Annuity Benefit will be (i) the Annuity Values of such
Accounts if the payments under the annuity form elected are contingent upon the
survival of a person, or (ii) the Cash Values of such Account if the payments
under the annuity form elected are not contingent upon the survival of a person.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If such
amount is applied on or after the completion of five Participation Years with
respect to such Participant, or if such amount is applied on behalf of an
Existing Participant, the balance shall purchase the Annuity Benefit on the
basis of either (i) the Table of Guaranteed Annuity Payments shown below or (ii)
Equitable's current individual annuity rates for payment of proceeds, whichever
rates would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a New Participant, the
balance, after any applicable tax on annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown below or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Guaranteed Interest Account, Stock
Account and Money Market Account maintained for such Participant shall
terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity form, are based on 3 1/4% interest and the 1971 ELAS Mortality Table.
The amounts of income initially provided under the Variable Annuity Benefit
payable on the Life Annuity Form and Joint and Survivor Life Annuity Form are
based on 1979 ELAS mortality and an Assumed Base Rate of Net Investment Return
of 3 1/2% or 5%, whichever applies pursuant to Section 1.16. Equitable may
change the monthly income amounts contained in the Tables of Guaranteed Annuity
Payments and the bases for determining such amounts, for new Participants, by at
least 90 days advance notice to the Contract Holder and by an amendment to the
Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/4% interest and the 1971 ELAS Mortality Table if
such annuity form provides for a Fixed Annuity Benefit, and on 1979 ELAS
Mortality and an Assumed Base Rate of Net Investment Income Return of 5% or
3 1/2%, whichever applies pursuant to Section 1.16, if such annuity form
provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS
The entire interest of a Participant will be distributed to such Participant not
later than the close of such Participant's taxable year of attainment of age 70
years and six months, or will be distributed in equal or substantially equal
installments over:
(a) the life of such Participant and such Participant's spouse, or
(b) a period not extending beyond the life expectancy of such Participant or
the life expectancy of such Participant and such Participant's spouse.
If the Participant dies before such Participant's interest has been distributed
to such Participant, or if distribution has been commenced as provided in the
first paragraph of this Section to such Participant's spouse, and such spouse
dies before the entire interest has been distributed to such spouse, the entire
interest
PF 14111 CI PAGE 16
<PAGE>
ANNUITY BENEFITS (continued)
(or the remaining part of such interest if the distribution thereof has
commenced) will, within five years after the death of such Participant (or the
death of such Participant's surviving spouse), be distributed, or applied to the
purchase of an annuity for the beneficiary or beneficiaries of such Participant
(or such Participant's surviving spouse) which will be payable for the life of
such beneficiary or beneficiaries (or for a term certain not extending beyond
the life expectancy of such beneficiary or beneficiaries) and which annuity will
be immediately distributed to such beneficiary or beneficiaries. The preceding
sentence shall have no application if distributions over a term certain
commenced before the death of the Participant and the term certain is for a
period permitted under the first paragraph of this Section.
Evidence of each payee's survival must be furnished to Equitable either by
personal endorsement of the check drawn for payment or by other means
satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Upon election by a Participant pursuant to Section 3.03 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
PF 14111 CI PAGE 17
<PAGE>
ANNUITY BENEFITS (continued)
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM - 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
- ------------------------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.58 4.64 4.70 4.76 4.82 4.88 4.94 5.00 5.05 5.11
61 4.55 4.62 4.68 4.74 4.81 4.87 4.93 5.00 5.06 5.12 5.18
62 4.58 4.65 4.72 4.78 4.85 4.92 4.99 5.05 5.12 5.19 5.25
63 4.61 4.68 4.75 4.82 4.89 4.97 5.04 5.11 5.18 5.25 5.32
64 4.64 4.71 4.79 4.86 4.94 5.01 5.09 5.17 5.24 5.32 5.40
65 4.67 4.74 4.82 4.90 4.98 5.06 5.14 5.22 5.30 5.38 5.47
66 4.69 4.77 4.85 4.93 5.02 5.10 5.18 5.27 5.35 5.44 5.53
67 4.72 4.80 4.88 4.97 5.06 5.14 5.23 5.31 5.40 5.50 5.59
68 4.74 4.82 4.91 5.00 5.09 5.18 5.27 5.36 5.45 5.55 5.65
69 4.76 4.85 4.94 5.03 5.12 5.22 5.31 5.41 5.50 5.60 5.71
70 4.78 4.87 4.96 5.06 5.16 5.26 5.36 5.45 5.56 5.66 5.76
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM -
100% CONTINUATION - ASSUMED BASE RATE OF NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
- ------------------------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.31 4.35 4.39 4.43 4.47 4.51 4.55 4.59 4.63 4.67 4.71
61 4.35 4.39 4.43 4.48 4.52 4.56 4.61 4.65 4.69 4.73 4.78
62 4.39 4.43 4.48 4.52 4.57 4.61 4.66 4.71 4.75 4.80 4.85
63 4.42 4.47 4.52 4.57 4.62 4.67 4.72 4.77 4.82 4.87 4.92
64 4.46 4.51 4.57 4.62 4.67 4.72 4.77 4.83 4.88 4.94 4.99
65 4.50 4.56 4.61 4.66 4.72 4.78 4.83 4.89 4.95 5.01 5.07
66 4.54 4.60 4.65 4.71 4.77 4.83 4.89 4.95 5.01 5.08 5.14
67 4.58 4.64 4.70 4.76 4.82 4.88 4.95 5.01 5.08 5.15 5.22
68 4.62 4.68 4.77 4.81 4.87 4.95 5.01 5.08 5.15 5.22 5.29
69 4.65 4.72 4.78 4.85 4.92 4.99 5.06 5.14 5.22 5.29 5.37
70 4.69 4.76 4.83 4.90 4.97 5.05 5.12 5.20 5.28 5.36 5.45
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM -
100% CONTINUATION - ASSUMED BASE RATE OF NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
- ------------------------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.19 5.23 5.27 5.31 5.34 5.39 5.42 5.46 5.50 5.54 5.58
61 5.23 5.27 5.31 5.35 5.39 5.43 5.47 5.52 5.56 5.60 5.64
62 5.27 5.31 5.35 5.39 5.44 5.48 5.53 5.57 5.62 5.67 5.71
63 5.31 5.35 5.39 5.44 5.49 5.53 5.58 5.63 5.68 5.73 5.78
64 5.34 5.39 5.44 5.48 5.53 5.59 5.64 5.69 5.74 5.79 5.85
65 5.38 5.43 5.48 5.53 5.58 5.64 5.69 5.75 5.80 5.86 5.92
66 5.42 5.47 5.52 5.58 5.63 5.69 5.75 5.81 5.87 5.93 5.99
67 5.45 5.51 5.56 5.62 5.68 5.74 5.80 5.87 5.93 6.00 6.06
68 5.49 5.55 5.61 5.67 5.73 5.80 5.86 5.93 6.00 6.06 6.14
69 5.53 5.59 5.65 5.71 5.78 5.85 5.92 5.99 6.06 6.13 6.21
70 5.56 5.63 5.69 5.76 5.83 5.90 5.97 6.05 6.13 6.21 6.29
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED ANNUITY BENEFIT VARIABLE ANNUITY BENEFIT IF ASSUME BASE RATE OF NET INVESTMENT RETURN IS
- ------------------------------------------------------------------------------------------------------------------------------------
3 1/2% 5%
- ------------------------------------------------------------------------------------------------------------------------------------
AGE MALES FEMALES MALES FEMALES MALES FEMALES
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
60 5.88 4.99 5.43 4.80 6.36 5.70
61 6.04 5.11 5.57 4.90 6.50 5.81
62 6.21 5.24 5.72 5.01 6.65 5.91
63 6.38 5.38 5.88 5.13 6.81 6.03
64 6.57 5.53 6.05 5.25 6.97 6.15
65 6.77 5.68 6.23 5.39 7.16 6.28
66 6.98 5.84 6.43 5.54 7.35 6.43
67 7.19 6.01 6.64 5.70 7.56 6.58
68 7.42 6.20 6.82 5.87 7.79 6.76
69 7.67 6.39 7.11 6.06 8.03 6.95
70 7.93 6.61 7.38 6.27 8.30 7.15
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average New Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
PF 14111 CI PAGE 18
<PAGE>
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT
The Contract constitutes the entire Contract between the parties and the
provisions of the Contract alone will govern with respect to the rights and
obligations of Equitable. The provisions of the Contract will be applied
separately with respect to each Participant. Nothing in the enrollment form
referred to in Section 1.05, the Plan or custodial agreement referred to in
Section 4.10 nor any modification, amendment, or supplement to any such
documents will in any way be construed to enlarge, change, vary or in any other
way affect the obligations of Equitable as expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE
Equitable reserves the right to amend the Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
shall include, but not be limited to, the right to conform the Contract and any
certificate to reflect changes in the Code, or in regulations or published
rulings of the Internal Revenue Service, so that each such certificate will
continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY
The entire interest of any Participant under the Contract is nonforfeitable.
No interest of a Participant under the Contract may be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law, no such amount will in any way
be subject to any claim against such payee.
SECTION 4.04 PARTICIPATION IN SURPLUS
The Contract and all other contracts in the same class of contracts shall be
combined for the purpose of ascertaining the annual surplus of Equitable to be
apportioned to said contracts as a dividend, and the portion of any such
dividend that is to be allocated to the Contract shall be determined by
Equitable. The participation of this class of contracts in annual surplus is,
however, expected to be minimal. Any amount so allocated to the Contract shall
be payable as of January 1 of the calendar year in which a dividend is
apportioned and will be payable in cash and shall be equitably allocated by
Equitable to the Guaranteed Interest Accounts maintained hereunder for
Participants.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.05 BENEFICIARY
Each Participant, as of such Participant's Participation Date is to provide
Equitable with an initial designation of the beneficiary entitled to receive any
death benefit payable with respect to such Participant pursuant to Section 2.09.
The Participant may change such designation from time to time during such
Participant's lifetime and while Accounts for such Participants are being
maintained hereunder. Any such designation or change will be made by written
notice in a form satisfactory to Equitable. A change will, upon receipt at a
designated Equitable Office, take effect as of the time the written notice was
signed, whether or not the Participant is living on the date of receipt, but
without further liability as to any payment or other settlement made by
Equitable before receipt of such change.
Unless otherwise specified in the designation, if a Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant, and if more than one survive they
will share equally.
PF 14111 CI PAGE 19
<PAGE>
GENERAL PROVISIONS (continued)
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.09 for which there is no designated beneficiary living at the death of
the Participant will be payable in a single sum to the children of the
Participant who survive the Participant, in equal shares, or should none
survive, then to the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.06 DISQUALIFICATION
In the event that an annuity purchased hereunder with respect to a Participant
fails to qualify as an Annuity as described in Section 1.03, Equitable shall
have the right, upon receiving notice of such fact before the Retirement Date,
to terminate participation with respect to such Participant under the Contract
and pay to such Participant the amount in the Account maintained with respect to
such Participant less a deduction for the appropriate part attributable to such
Participant of any Federal income tax payable by Equitable which would not have
been payable if such Participant had an Annuity under the Contract.
SECTION 4.07 FUTURE PARTICIPANTS
Equitable reserves the right at its sole discretion to curtail or prohibit
further enrollment as Participants under the Contract of any individuals who are
not currently participating under the Contract as of such date of curtailment or
prohibition.
SECTION 4.08 DEFERMENT
Payments by Equitable from the Participant's Guaranteed Interest Account
pursuant to the provisions of Section 2.06, Sections 2.07, 2.07A and 2.07B, and
Section 2.09, or any commuted payments arising from a Fixed Annuity Benefit
pursuant to Section 3.05, may be deferred for up to six months after receipt of
a written request for such surrender or withdrawal, or receipt of due proof of
death of the Participant, respectively, or receipt of due documentation for such
commutation payment pursuant to Section 3.05. Interest at the current Guaranteed
Interest Rate for such Participant's Guaranteed Interest Account will be allowed
on any such payment deferred for 30 days or more.
Except as provided in the Section, payments by Equitable from the Participant's
Stock Account or Money Market Account pursuant to the provisions of Section
2.06, Sections 2.07, 2.07A and 2.07B, and Section 2.09, or any commuted payments
arising from a Variable Annuity Benefit pursuant to Section 3.05, will be made
within seven days after receipt of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant, respectively,
or receipt of due documentation for such commutation payment pursuant to Section
3.05.
During any period when (i) the sale of securities or the determination of the
New Accumulation Unit Value or the Average New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or trading
on such Exchange is restricted, or (ii) the Securities and Exchange Commission
may by order permit postponement for the protection of persons having interests
in the Separate Accounts, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of Cash
Values and Annuity Values, arising from an amount in a Participant's Stock
Account or Money Market Account;
(b) to defer payment of any portion of the death benefit arising from an amount
in a Participant's Stock Account or Money Market Account;
(c) to defer the payment of any Variable Annuity Benefit under the Contract or
the application of any such Benefit to provide for any other payment called
for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to provide
any Annuity Benefit permitted under the Contract.
SECTION 4.09 ANNUAL NOTICE
At the end of each Participation Year up to and including the Retirement Date,
Equitable will furnish
PF 14111 CI PAGE 20
<PAGE>
GENERAL PROVISIONS (continued)
the Participant with a notice showing as of a specified recent date (1) the
Annuity Value of the Guaranteed Interest Account, (2) the total number of
Accumulation Units credited to the Stock Account and Money Market Account, (3)
the New Accumulation Unit Values, (4) the sum of the Cash Values of the
Guaranteed Interest Account, Stock Account and Money Market Account and (5) the
amount of death benefit payable with respect to the Participant. After the
Retirement Date Equitable will notify the Participant of the number of Annuity
Units and the Average New Annuity Unit Value used in determining the amount of
each Variable Annuity Benefit payment, if any.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY
The sole responsibility of the Contract Holder is to serve as party to the
Contract. The Contract Holder will have no responsibility for the administration
of any Plan, for payments to the Guaranteed Interest Account, Stock Account or
Money Market Account, or any payments or other distributions hereunder.
Equitable will deal with the Contract Holder in accordance with the terms and
conditions of the custodial agreement pursuant to which the Contract Holder
agreed to act as such and with the Contract and in such manner as the Contract
Holder and Equitable may agree, without the consent of any other person. Any
Employer making Contributions under the Contract shall be deemed to have adopted
and accepted the custodial agreement as part of the Plan with respect to which
such Contributions are made.
SECTION 4.11 AGE AND SEX
If the Annuitant's age or sex has been misstated, any benefits will be those
which would have been purchased at the correct age and sex. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ [Signature Unreadable] By /s/ Coy Eklund
.................................. ..................................
Chairman of the Board
Title Senior Vice President By /s/ Rodney L. Enochs
............................... ..................................
Vice President and Secretary
Dated May 27, 1982 Date of Issue May 1, 1982
............................... .......................
At New York, New York
..................................
PF 14111 CI PAGE 21
<PAGE>
Attached to and made part of Group Annuity Contract No. 11929CI
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective August 26, 1983, said contract and riders
are amended as follows:
1. with respect to Section 1.18A Cash Value -- New Participants
a. the term "25 Participation Years" contained in the paragraph entitled
"No Withdrawal Charge" is changed to "12 Participation Years,"
b. the paragraph entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: Within the first three
Participation Years with respect to the Participant, the withdrawal
charge equals the lesser of (a) or (b) where:
(a) equals 6% of the sum of the Annuity Values of such Accounts.
(b) is an amount equal to the excess, if any, of (i) 8% of the
cumulative contributions made on behalf of such Participant over
(ii) the cumulative total of any withdrawal charges made pursuant
to Sections 2.07 and 2.07A.
c. the paragraph entitled "Withdrawal Charge After Five Years" is replaced
by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After the completion of three
Participation Years with respect to the Participant, the withdrawal
charge equals the lesser of (a) or (b) where:
(a) equals
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Values of such
Accounts over (ii) the Free Corridor Amount defined in Section
2.07C.
(b) is the excess, if any of (i) 8% of the total contributions made on
behalf of such Participant during the current Participation Year
and the preceding nine Participation Years over (ii) the
cumulative total of any withdrawal charges made pursuant to
Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account and
Money Market Account will be in the same proportion as are the Annuity
Values of such Accounts.
PF 17001CI
<PAGE>
2. with respect to Section 1.18B Cash Value -- Existing Participants
a. the term "20 Participation Years" contained in the paragraph entitled
"No Withdrawal Charge" is changed to "12 Participation Years,"
b. the paragraph entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: Within the first three
Participation Years with respect to the Participant, the withdrawal
charge equals the sum of the charges described in subsections (a) and
(b) below; provided, however, that such charge does not exceed the
amount described in subsection (c) below where:
(a) is an amount equal to 2% of any Preferred Withdrawable Amounts
(defined in Section 2.07B) that have not previously been withdrawn
pursuant to Sections 2.07 and 2.07B.
(b) is an amount equal to
6% during the first five Participation Years
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of any Regular Withdrawable Amounts (defined in Section 2.07B)
that have not previously been withdrawn pursuant to Sections 2.07
and 2.07B.
(c) is an amount equal to the sum of (a) above, and 6% of the excess,
if any, of (i) the sum of the Annuity Values of such Accounts over
(ii) the cumulative total of Equitable Transferred Funds made with
respect to the Participant that have not previously been withdrawn
pursuant to Sections 2.07 and 2.07B.
c. the paragraph entitled "Withdrawal Charge After Five Years" is replaced
by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After three Participation Years
have been completed with respect to the Participant, Equitable (i) will
first withdraw, pursuant to Section 2.07B, the Free Corridor Amount
defined in Section 2.07C and (ii) next withdraw the remaining portion
of the sum of the Annuity Values of such Accounts. A withdrawal charge
will apply to the amount in (ii) above, and will equal the sum of the
charges described in subsections (a) and (b) of the preceding
subsection; provided, however, that such charge will not exceed an
amount equal to the lesser of the charges defined in (d) and (e) below:
(d) is an amount equal to the sum of (a) in the preceding subsection,
and
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess, if any, of (i) the sum of the Annuity Values of
such Accounts (after withdrawal of the Free Corridor Amount) over
(ii) the cumulative total of Equitable Transferred Funds made on
behalf of the Participant that have not previously been withdrawn
pursuant to Sections 2.07 and 2.07B.
(e) is an amount equal to the excess, if any, of (1) the sum of (i) 2%
of the first $10,000 of Equitable Transferred Funds made during
the current Participation Year and the preceding nine
Participation Years and (ii) 8% of all other contributions
(excluding Equitable Transferred Funds) made on behalf of such
Participant during the current Participation Year and the
preceding nine completed Participation Years over (2) the
cumulative total of any withdrawal charges made pursuant to
Sections 2.07 and 2.07B.
The Cash Values of the Guaranteed Interest Account, Stock Account and
Money Market Account will be in the same proportion as are the Annuity
Values of such Accounts.
3. with respect to section 2.07A Partial Withdrawals -- New Participants
a. the term "25 Participation Years" contained in the provision entitled
"No Withdrawal Charge" is changed to "12 Participation Years;"
PF 17001CI
<PAGE>
b. the provision entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: If the Participant has not
completed three Participation Years under the Contract, such withdrawal
charge will equal the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the total amount to be withdrawn from
the Accounts (including such charge) pursuant to this paragraph.
(b) is the excess, if any, of (i) 8% if the cumulative total of
Contributions made on behalf of such Participant over (ii) the
cumulative total of any prior withdrawal charges made pursuant to
this Section.
c. the provision entitled "Withdrawal Charge After Five Years" is replaced
by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After the completion of three
Participation Years with respect to the Participant, there will be no
withdrawal charge if the amount of partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts
an amount equal to the Free Corridor Amount, and (ii) then withdraw an
amount equal to the excess of the amount requested over the Free
Corridor Amount, plus a withdrawal charge. Such withdrawal charge will
be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn (including such charge) pursuant to (ii)
of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of
contributions made on behalf of such Participant during the
current Participation Year and the nine preceding Participation
Years over (ii) the cumulative total of any prior withdrawal
charges made pursuant to this Section.
4. with respect to Section 2.07B Partial Withdrawals -- Existing Participants
a the term "20 Participation Years" contained in the provision entitled
"No Withdrawal Charge" is changed to "12 Participation Years;"
b. the provision entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: Within the first three
Participation Years with respect to the Participant, the withdrawal
charge equals the sum of the charges described in subsections (a), (b),
(c) and (d) below:
(a) With respect to any withdrawals of Preferred Withdrawable Amounts,
a charge of 2% of such withdrawals.
(b) With respect to any withdrawals of Free Withdrawable Amounts, no
charge.
(c) With respect to any withdrawals of Regular Withdrawable Amounts, a
charge of 6% of such withdrawals.
(d) With respect to any withdrawals of amounts other than the amounts
in (a), (b) and (c) above, no charge.
c. the provision entitled "Withdrawal Charge After Five Years" is replaced
by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After the completion of three
Participation Years with respect to the Participant, there will be no
withdrawal charge if the amount of partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.07C.
PF 17001CI
<PAGE>
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (1) first withdrawn from such Accounts
an amount equal to the Free Corridor Amount, and (2) then withdraw from
such Accounts and amount equal to the excess of the amount requested
over the Free Corridor Amount, plus a withdrawal charge. Such
withdrawal charge will equal the sum of the charges described in (a),
(b) and (d) above plus with respect to any withdrawals of Regular
Withdrawable Amounts, a charge of
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
provided, however, that in no event will such charge exceed an amount
equal to the following: The excess, if any, of (1) the sum of (i) 2% of
the first $10,000 of Equitable Transferred Funds made during the
current Participation Year and the preceding nine Participation Years
and (ii) 8% of all other Contributions (excluding Equitable Transferred
Funds) made on behalf of the Participant during the current
Participation Year and the preceding nine completed Participation Years
over (2) the cumulative total of any prior withdrawal charges made
pursuant to this Section.
Whenever an amount is withdrawn from such Accounts that is not greater
than the current Free Corridor Amount, such amount is considered to be
(1) first, a withdrawal of Regular Withdrawable Amounts, (2) next, a
withdrawal of Preferred Withdrawable Amounts, (3) next, a withdrawal of
Free Withdrawable Amounts, and (4) lastly, a withdrawal of amounts
other than the amounts in (1), (2), or (3) above. However, no charge
will be assesed with respect to the portion of the withdrawal up to the
current Free Corridor Amount.
5. with respect to Section 2.07C Free Corridor Amount, the term "five
Participation Years" is changed to "three Participation Years."
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ William H. Schroeder By /s/ John B. Carter
------------------------ ------------------------------
President
Title Vice President By /s/ Rodney L. Enochs
--------------------- -------------------------------
Vice President and Secretary
Dated Aug 19, 1983 Date of Issue
--------------------- --------------------
At New York, N.Y.
------------------------
PF 17001CI
<PAGE>
Attached to and made part of Group Annuity Contract No. 11929CI
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective December 12, 1983, said contract and riders
are amended as follows:
1. all references in the contract to the Annuitant's sex are deleted.
2. the phrase "3-1/4% interest and the 1971 ELAS Mortality Table" and the phrase
"1979 ELAS Mortality" appearing in Section 3.04 Amount of Annuity Benefits
shall be changed to "3-1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on a 50-50 split of males
and females" and "the projected 1983 Basic Table adjusted to a unisex basis
based on a 50-50 split of males and females," respectively, wherever they
appear.
3. the Tables of Guaranteed Annuity Payments appearing in Section 3.05 Payment
of Annuity Benefits, are replaced by the following Tables.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM
-- 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
Age
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.54 4.58 4.62 4.66 4.70 4.74 4.77 4.81 4.84 4.88 4.91
61 4.62 4.67 4.71 4.76 4.81 4.84 4.88 4.91 4.95 4.99
62 4.72 4.76 4.81 4.85 4.90 4.94 4.98 5.02 5.06
63 4.81 4.86 4.91 4.96 5.01 5.06 5.10 5.14
64 4.92 4.97 5.02 5.08 5.13 5.17 5.22
65 5.03 5.09 5.15 5.20 5.26 5.31
66 5.15 5.21 5.27 5.33 5.39
67 5.28 5.34 5.40 5.47
68 5.41 5.48 5.55
69 5.56 5.63
70 5.71
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM
100% CONTINUATION -- ASSUMED BASE RATE OF NET INVESTMENT RETURN OF 3-1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
Age
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.40 4.44 4.48 4.51 4.55 4.58 4.61 4.65 4.68 4.71 4.74
61 4.48 4.52 4.56 4.60 4.64 4.67 4.71 4.74 4.78 4.81
62 4.56 4.60 4.65 4.69 4.73 4.77 4.80 4.84 4.88
63 4.65 4.69 4.74 4.78 4.83 4.87 4.91 4.95
64 4.74 4.79 4.84 4.89 4.93 4.98 5.02
65 4.85 4.90 4.95 5.00 5.05 5.10
66 4.95 5.01 5.06 5.11 5.17
67 5.07 5.12 5.18 5.24
68 5.19 5.25 5.32
69 5.32 5.39
70 5.46
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM
100% CONTINUATION -- ASSUMED BASE RATE OF NET
INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
Age
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.27 5.30 5.34 5.37 5.41 5.44 5.47 5.51 5.54 5.57 5.59
61 5.34 5.38 5.42 5.46 5.49 5.53 5.57 5.60 5.63 5.66
62 5.42 5.46 5.50 5.54 5.58 5.62 5.65 5.69 5.73
63 5.50 5.55 5.59 5.63 5.67 5.71 5.75 5.79
64 5.59 5.64 5.69 5.73 5.78 5.82 5.86
65 5.69 5.74 5.79 5.84 5.89 5.93
66 5.79 5.85 5.90 5.95 6.00
67 5.90 5.96 6.02 6.08
68 6.02 6.08 6.15
69 6.15 6.22
70 6.29
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
FIXED ANNUITY BENEFIT INVESTMENT RETURN IS
--------------------- ---------------------------
Age 3 1/2% 5%
- --- ------ --
60 5.29 5.08 5.97
61 5.41 5.19 6.08
62 5.55 5.31 6.20
63 5.69 5.44 6.33
64 5.85 5.58 6.46
65 6.01 5.73 6.61
66 6.19 5.89 6.77
67 6.37 6.06 6.94
68 6.58 6.24 7.12
69 6.79 6.43 7.31
70 7.02 6.64 7.52
PF17006CI
<PAGE>
This amendment was approved by the New York Insurance Department under an
accelerated procedure to assist employers in complying with the United States
Supreme Court decision in Arizona v. Norris. The Department has reserved the
right to require changes in this amendment to comply with applicable New York
law and regulations.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ William H. Schroeder By /s/ John B. Carter
------------------------- -----------------------
President
Title Vice President By /s/ Rodney L. Enochs
----------------- ----------------------
Vice President and Secretary
Dated Dec 15 1983 Date of Issue
------------- ---------------
At New York, N.Y.
--------------
PF17006CI
<PAGE>
Attached to and made part of Group Annuity contract No. 11929CI
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
PART I
IT IS HEREBY AGREED that, effective January 1, 1984, said contract and riders
are amended as follows:
1. The words "(a) $2000 with respect to amounts contributed under a Plan
described in clause (i) of Section 1.02 to purchase an Individual
Retirement Annuity and (b) $15,000 with respect to amounts contributed
under a Plan described in clause (ii) of Section 1.02 constituting a
Simplified Employee Pension" which appear in the first sentence of the
second paragraph of Section 1.06 entitled Contribution are changed to "the
maximum amount permitted to be contributed under the Code for a taxable
year of the Participant under a plan described in clause (i) or (ii) of
Section 1.02, whichever is applicable."
2. Subsection B "Rollover Contribution Basis" of Section 2.01 is amended to read
as follows:
"A Participant may make one or more Contributions which in whole or in part
qualify as "rollover amounts" within the meaning of Section 402(a)(5) or
403(b)(8) of the Code or "rollover contributions" within the meaning of
Section 408(d)(3) of the Code."
3. The second paragraph of the provision entitled "Payment of Annuity
Benefits" is amended to read as follows:
"If the Participant dies before such Participant's interest has been
distributed to such Participant, or if distribution has been commenced as
provided in the first paragraph of this Section to such Participant's
spouse, and such spouse dies before the entire interest has been
distributed to such spouse, the entire interest (or the remaining part of
such interest if the distribution thereof has commenced) will, within five
years after the death of such Participant (or the death of such surviving
spouse), be distributed to the Participant's or surviving spouse's
beneficiary or beneficiaries. The preceding sentence shall have no
application if distributions over a term certain commenced before the death
of the Participant and the term certain is for a period permitted under the
first paragraph of this Section."
PART II
IT IS HEREBY AGREED THAT, effective May 1, 1984 said contract and riders are
amended as follows:
1. The term "Stock Account" has been changed to "Stock Account, Balanced
Account and Aggressive Stock Account" wherever it appears except as
provided in items 4 and 5 of this rider.
2. The Section entitled "The Separate Accounts" is amended as follows:
a. the following Accounts have been added:
Name Investments
---- -----------
Separate Account J Primarily common stocks and other
equity-type investments, publicly traded debt
securities and short term money market instruments.
(Continued on next page)
PF 17010CI
<PAGE>
Name Investments
---- -----------
Separate Account K Primarily common stocks issued by high
quality small and intermediate size
companies with strong growth prospects.
b. The sentences
"Assets of the Separate Accounts attributable to the Contract shall be
subject to a charge at the rate of 1.75% a year, consisting of .15% for
investment management, .35% for financial accounting, .35% for the annuity
rate guarantee and the minimum death benefit, and .90% for expenses and
expense risk. The charge shall be made in connection with (c) of the Net
Investment Factor provision in Section 1.16"
are amended to read as follows:
i. for Participants with a Participation Date prior to May 1, 1984
"Assets of Separate Account A and Separate Account E attributable to the
Contract shall be subject to a charge at the rate of 1.75% a year,
consisting of .15% for investment management, .35% for financial
accounting, .35% for the annuity rate guarantee and the minimum death
benefit, and .90% for expenses and expense risk. Assets of Separate Account
J and Separate Account K attributable to the Contract shall be subject to a
charge at the rate of 1.75% a year, for investment management, financial
accounting, the annuity rate guarantee and the minimum death benefit, and
expenses and expense risk. The percentage allocation of the components of
the charges for Separate Account J and Separate Account K are not
necessarily allocated in the same amounts as for Separate Account A and
Separate Account E. The charge shall be made in connection with (c) of the
Net Investment Factor provision in Section 1.16"
ii. for Participants with a Participation Date on or after May 1, 1984
"Assets of the Separate Accounts attributable to the Contract shall be
subject to a charge at the rate of 1.75% a year, for investment
management, financial accounting, the annuity rate guarantee and the
minimum death benefit, and expenses and expense risk. The charge shall
be made in accordance with (c) of the Net Investment Factor provision
in Section 1.16."
3. The Section entitled "New Accumulation Unit Value" is amended by the addition
of the following Accounts:
Account Value Date
------- ----- ----
Separate Account J $10.00 As of May 1, 1984
Separate Account K $10.00 As of May 1, 1984
4. The title and the first two sentences of the Section entitled "Stock and
Money market Accounts" shall read as follows:
STOCK, BALANCED, AGGRESSIVE STOCK AND MONEY MARKET ACCOUNTS
Equitable maintains a Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account under the Contract for each Participant with
respect to whom Contributions are made. Any amount allocated to the (1) Stock
Account becomes part of Separate Account A, (2) Balanced Account becomes part
of Separate Account J, (3) Aggressive Stock Account becomes part of Separate
Account K, and (4) Money Market Account becomes part of Separate Account E.
(Continued on next page)
PF 17010CI
<PAGE>
5. The Section entitled "Transfers Among Accounts" is amended to read as
follows:
TRANSFERS AMONG ACCOUNTS
At any time before a Participant's Retirement Date, such Participant, upon
written request, may transfer all or part of the amounts maintained for the
Participant to one or more of the other Accounts maintained for such
Participant as follows: (1) amounts in the Guaranteed Interest Account,
Stock Account, Balanced Account and Aggressive Stock Account may be
transferred among such Accounts; (2) amounts in the Money Market Account may
be transferred to the other Accounts. Such transfers will be made as of the
date Equitable receives such request, and will be subject to Equitable's
rules in effect at the time of transfer. No transfers are permitted from the
Guaranteed Interest Account, Stock Account, Balanced Account or Aggressive
Stock Account maintained for the Participant to the Money Market Account.
Notwithstanding the above, transfers to the Balanced Account may be
prohibited by Equitable upon 30 days written notice to the Participant.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ William H. Schroeder By /s/ John B. Carter
-------------------------------- --------------------------------
President
Title Vice President By /s/ Rodney L. Enochs
----------------------------- --------------------------------
Vice President and Secretary
Dated 06/27/84 Date of Issue
----------------------------- ---------------------
At N.Y. N.Y.
------------------------------
PF 17010CI
<PAGE>
Attached to and made part of Group Annuity Contract No. 11929CI
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective January 1, 1986, said contract and riders
are amended as follows:
1. With respect to Section 1.18A CASH VALUE -- NEW PARTICIPANTS, the
provisions entitled "WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS" and
"WITHDRAWAL CHARGE AFTER THREE YEARS" are replaced by the following:
WITHDRAWAL CHARGE: The withdrawal charge equals the lesser of (a) or (b)
where:
(a) equals
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Values of such Accounts
over (ii) the Free Corridor Amount defined in Section 2.07C.
(b) is the excess, if any, of (i) 8% of the total contributions made on
behalf of such Participants during the current Participation Year and
the preceding nine Participation Years over (ii) the cumulative total
of any withdrawal charges made pursuant to Section 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account will be in the
same proportion as are the Annuity Values of such Accounts.
2. With respect to Section 2.07A PARTIAL WITHDRAWALS -- NEW PARTICIPANTS, the
provisions entitled "WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS" and
"WITHDRAWAL CHARGE AFTER THREE YEARS" are replaced by the following.
WITHDRAWAL CHARGE: There will be no withdrawal charge if the amount of
partial withdrawal requested is not greater than the Free Corridor Amount
defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will: (i) first withdraw from such Accounts an
amount equal to the Free Corridor Amount, and (ii) then withdraw an amount
equal to the excess of the amount requested over the Free Corridor Amount,
plus a withdrawal charge. Such withdrawal charge will be equal to the
lesser of (a) or (b) where:
(a) is an amount equal to
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn (including such charge) pursuant to (ii) of the
preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of
contributions made on behalf of such Participant during the current
Participation Year and the nine preceding Participation Years over (ii)
the cumulative total of any prior withdrawal charges made pursuant to
this Section.
3. With respect to Section 2.07C FREE CORRIDOR AMOUNT:
a. the term "who has completed three Participation Years" is changed to
"who has completed three Participation Years of attained age 59-1/2"
b. the following sentence is added:
With respect to a Participant who has not completed three Participation
Years or attained age 59-1/2, the Free Corridor Amount is zero.
4. With respect to Section 2.08 ANNUAL ADMINISTRATIVE CHARGE:
a. the first paragraph is replaced by the following:
As of the last day of each Participation Year before a Participant's
Retirement Date, if the sum of the Annuity Values of the Guaranteed
Interest Account, Stock Account, Balanced Account, Aggressive Stock Account
and Money Market
PF 17015CI
<PAGE>
Account on that date is less than $10,000.00, Equitable will withdraw from
the Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account maintained under the
Contract, as to the Contributions remitted with respect to such
Participant, an annual administrative charge equal to the lesser of $30 or
2% of the sum of (i) the Annuity Values of the Guaranteed Interest Account,
Stock Account, Balanced Account, Aggressive Stock Account and Money Market
Account at the end of that Participation Year and (ii) any withdrawals made
from such Account pursuant to Section 2.07, 2.07A and 2.07B during that
Participation Year. The charge will be allocated between the Stock Account,
Balanced Account, Aggressive Stock Account, Money Market Account and
Guaranteed Interest Account in proportion to the Annuity Values of each
such Account, at the end of the Participation Year.
b. the term "or Section 2.09 during a Participation Year," in the second
paragraph is changed to "or Section 2.09 during a Participation Year, if
the sum of the Annuity Values of the Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account, and Money Market
Account at that date is less than $10,000.00."
VICE PRESIDENT
SPECIMEN AND SECRETARY SPECIMEN PRESIDENT
PF 17015CI
<PAGE>
Attached to and made part of Group Annuity Contract No. 11929CI
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective January 1, 1986 for Participants with a
Participation Date on or after January 1, 1986, said contract and riders are
amended as follows:
1. With respect to the provision entitled NO WITHDRAWAL CHARGE, within the
Section entitled CASH VALUE -- NEW PARTICIPANTS:
the term "the Participant's attainment of age 70 years and six months, or
(iii) the completion of 12 Participation Years with respect to such
Participant, or (iv)" is changed to "the completion of 12 Participation
Years with respect to such Participant, or (iii)"
2. With respect to the provision entitled NO WITHDRAWAL CHARGE within the
Section entitled PARTIAL WITHDRAWAL -- NEW PARTICIPANTS:
the term "such Participant's attainment of age 70 years and six months, or
(iii) the completion of 12 Participation Years with respect to such
Participant, or (iv)" is changed to "the completion of 12 Participation
Years with respect to such Participant, or (iii)"
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By By Specimen
--------------------------------- ---------------------------------
President
Title By Specimen
----------------------------- ---------------------------------
Vice President and Secretary
Dated Date of Issue
----------------------------- ---------------------
At
--------------------------------
PF 17019CI
<PAGE>
Attached to and made part of Group Annuity Contract No. 11929CI
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective January 1, 1985, said contract and riders
are amended as follows:
1. In Section 1.11 entitled "Retirement Date" the third sentence is amended to
read as follows:
"No Retirement Date shall be earlier than the date the Participant attains
age 59 years and six months nor shall be later than the first day of April
following the calendar year in which the Participant attains age 70 years
and six months."
2. Section 1.14B "Eligible Annuity Certain" is amended to read as follows:
"The term "Eligible Annuity Certain" means an annuity not involving life
contingencies issued by Equitable, which annuity shall not provide for
payments beyond the life expectancy of the Participant or the joint life
expectancy of the Participant and the Participant's designated beneficiary.
Such annuity shall extend beyond the Participant's attainment of age 59
years and six months and shall not permit any prepayment of principal prior
to the Participant's attainment of age 59 years and six months. Life
expectancy and joint life expectancy of the Participant and the
Participant's designated beneficiary shall be computed by the use of the
return multiples contained in Section 1.72-9 of the regulations under the
Code."
3. Section 2.01 entitled "Contributions", Subsection B entitled "Rollover
Contribution Basis" is amended to read as follows:
"A Participant may make one or more Contributions which in whole or in part
qualify as "rollover amounts" within the meaning of Sections 402(a)(5),
402(a)(7), 403(a)(4) or 403(b)(8) of the Code or "rollover contributions"
within the meaning of Sections 405(d)(3), 408(d)(3) or 409(b)3(C) of the
Code."
4. In Section 3.05 entitled "Payment of Annuity Benefits" the first two
paragraphs are deleted and replaced with the following:
"The entire interest of a Participant will be distributed to such Participant
by April 1 of the year following the calendar year in which the Participant
attains age 70 years and six months. Or, at the request of the Participant
such entire interest shall be distributed beginning not later than such April
1st in equal or substantially equal amounts over:
(a) the life of such Participant or the joint lives of such Participant and
the Participant's designated beneficiary; or
(b) a period no longer than the life expectancy of such Participant or the
joint life expectancy of such Participant and the Participant's
designated beneficiary.
"Or, a Participant's interest shall begin to be distributed no later than
such April 1st, in such amounts as the Participant may request, provided such
requested amounts are at least equal to the minimum amounts required to be
distributed under the Code and provided further that such requested
distributions are in accordance with Equitable's rules in effect at the time
of each request.
At minimum, the Code requires that if a Participant's interest is to be
distributed in other than a single payment, then the amount to be distributed
each year, beginning by the April 1st of the year following the calendar year
in which the Participant attains age 70 years and six months and thereafter
by each December 31, must be an amount equal to at least the amount obtained
by
PF 17023CI
<PAGE>
dividing such Participant's interest by the Participant's life expectancy or
the joint life expectancy of such Participant and the Participant's
designated beneficiary. A participant may elect to recalculate the
Participant's life expectancy or the joint life expectancy of such
Participant and the Participant's spousal beneficiary annually.
The life expectancy of any non-spousal beneficiary may not be recalculated
after the original determination.
"If The Participant dies after distribution of the Participant's interest
under this Contract begins, then the remaining portion of such interest will
continue to be distributed at least as rapidly as under the method of
distribution used before the Participant's death.
If the Participant dies before payments of the Participant's interest begins,
then either: (a) such entire interest will be distributed within five years
after the Participant's death; or (b) upon the Participant's written request,
distribution will be made to the Participant's designated beneficiary as
follows: (i) the entire interest will be distributed over the life or life
expectancy of the designated beneficiary; and (ii) such distribution will
begin no later than one year after the Participant's death. The designated
beneficiary may elect at any time after the Participant's death to receive
greater payments, provided the income arrangement chosen by the participant
permits such change.
For purposes of this Section 3.05, the life expectancy of the Participant,
the joint life expectancy of the Participant and the Participant's designated
beneficiary, and the life expectancy of the Participant's designated
beneficiary shall be computed by use of the return multiples contained in
Section 1.72-9 of the regulations under the Code."
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By By /s/ John B. Carter
--------------------------------- ---------------------------------
President
Title By /s/Rodney L. Enochs
----------------------------- ---------------------------------
Vice President and Secretary
Dated Date of Issue
----------------------------- ---------------------
At
--------------------------------
PF 17023CI
<PAGE>
Attached to and made part of Group Annuity Contract No. 11929CI between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective July 1, 1986, said contract and riders are
amended as follows:
1. With respect to PART I -- DEFINITIONS, the following section is added:
SECTION 1.14C PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means
an annuity not involving life contingencies issued by Equitable which does
not permit any prepayment of the unpaid principal.
2. With respect to SECTION 1.18 CASH VALUE, the following text replaces the
paragraphs under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
means an amount equal to the Annuity Values of such Accounts after the
earliest of the following occurrences: (i) The later of (a) the completion of
five Participation Years with respect to such Participant and (b) the
Participant's attainment of age 59 years and 6 months, or (ii) the completion
of twelve Participation Years with respect to such Participant, or (iii) the
Participant's attainment of age 55, the completion of five Participation
Years with respect to such Participant and the receipt by Equitable of a
properly completed settlement election form in order to apply the Annuity
Values to purchase an Eligible Annuity Certain, defined in Section 1.14B, or
(iv) the completion of three Participation Years with respect to such
Participant and the receipt by Equitable of a properly completed settlement
election form in order to apply the Annuity Values to purchase a Period
Certain Annuity, defined in Section 1.14C, where the certain period of such
Annuity is at least ten years. At all other times, the sum of the Cash Values
of such Accounts equals the sum of the Annuity Values of such Accounts, less
a withdrawal charge.
3. With respect to SECTION 2.07A PARTIAL WITHDRAWAL CHARGES, the following
paragraph replaces the paragraph under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, Equitable will withdraw from the Stock Account, Balanced
Account, Aggressive Stock Account, Money Market Account and Guaranteed
Interest Account an amount equal to the lesser of (a) the full amount of
partial withdrawal requested or (b) the sum of the Annuity Values of such
Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The later of (a) the completion of
five Participation Years with respect to such Participant and (b) such
Participant's attainment of age 59 years and 6 months, or (ii) the completion
of twelve Participation Years with respect to such Participant, or (iii) the
Participant's attainment of age 55, the completion of five Participation
years with respect to such Participant and the receipt by Equitable of a
properly completed settlement election form in order to apply the Annuity
Values to purchase an Eligible Annuity Certain, defined in Section 1.14B, or
(iv) the completion of three Participation Years with respect to such
Participant and the receipt by Equitable of a properly completed settlement
election form in order to apply the Annuity Values to purchase a Period
Certain Annuity, defined in Section 1.14C, where the certain period of such
Annuity is at least ten years. At all other times, the sum of the Cash Values
of such Accounts equals the sum of the Annuity Values of such Accounts, less
a withdrawal charge.
Agreed to by:
UNITED STATES TRUST COMPANY OF NEW YORK
By________________________________________
Title_____________________________________
Dated_____________________________________
At________________________________________
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
By________________________________________
President
By________________________________________
Vice President and Secretary
Date of Issue_____________________________
PF 17034CI
<PAGE>
[EQUITABLE LOGO]
Participant:
Certificate Number:
Issue Date:
Participation Date:
Retirement Date:
- --------------------------------------------------------------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P O Box 2996,
New York, New York 10116-2996
AGREES
O TO ALLOCATE the Contributions made to the Contract, after deduction of any
applicable taxes, to the Stock Division, Balanced Division, Aggressive Stock
Division and Money Market Division of the Separate Account or to the
Guaranteed Interest Division, in accordance with Sections 2.02, 2.03 and 2.04
or in part to any one, as directed by the Participant.
O TO APPLY the Annuity Account Value at the Retirement Date to provide the
Participant with an Annuity Benefit or a Cash Value benefit if the
Participant is then living, and
O TO PROVIDE the Participant with the other rights and benefits of this
certificate.
These agreements are subject to the provisions of this certificate.
TEN DAYS TO EXAMINE CERTIFICATE - The Participant may terminate participation
under the Contract and cancel this certificate by returning it to Equitable
within ten days after receipt of it. Upon such cancellation, Equitable will
refund any Contribution made to Equitable on behalf of a Participant under the
Contract, plus or minus any investment gain or loss experienced in the
Investment Divisions of the Separate Account from the date such Contribution is
allocated to such Investment Division to the date of such cancellation.
/S/Pauline Sherman /s/Edward D. Miller
Pauline Sherman, Vice President, Edward D. Miller
Secretary & Associate General Counsel President and Chief Executive Officer
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN THE SEPARATE ACCOUNT
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN 1N THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.16 IS 5% OR, 3 1/2%, RESPECTIVELY.
THE DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE NOT
TO EXCEED THE MAXIMUM RATE OF 1.75% FOR INVESTMENT MANAGEMENT, FINANCIAL
ACCOUNTING, THE ANNUITY RATE GUARANTEE, THE MINIMUM DEATH BENEFIT, EXPENSES AND,
EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO PROVIDE FOR TAXES.
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
<PAGE>
CONTENTS
Part I - Definitions Page 2
Part II - Participant's Annuity Account Value Page 7
Part III - Annuity Benefits Page 9
Part IV - General Provisions Page 13
Equitable certifies that the Participant as named on page 3 is included under
the Group Annuity Contract designated on page 3 ("the Contract"), all pertinent
provisions of which are set forth below.
As described in Section 1.10, Equitable will determine, before the beginning of
each calendar year commencing after the period for which the Initial Guaranteed
Interest Rate is effective, the Yearly Guaranteed Interest Rate for the calendar
year for each Class of Participants, which shall not be lower than the Minimum
Guaranteed Interest Rate then in effect. Equitable, from time to time, may
declare a Guaranteed Interest Rate for a Class which exceeds the applicable
Yearly Guaranteed Interest Rate and a period for which such rate applies. A
Guaranteed Interest Rate is subject to annual administrative charges as
described in Section 2.08.
This certificate is valid only if participation under the Contract has not been
terminated as described in the Contract and is subject to amendment as may be
required pursuant to Section 4.02.
EARLY WITHDRAWAL CHARGE. If a Participant terminates participation at any time
after the earliest of the following occurrences: (i) the later of (a) the
attainment of age 59 years and six months or (b) the completion of five
Participation Years, or (ii) the completion of twelve Participation Years, or
(iii) the attainment of age 55, the completion of five Participation Years and
the receipt by Equitable of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase an
Eligible Annuity Certain, defined in Section 1.14B, or (iv) the completion of
three Participation Years and the receipt by Equitable of a properly completed
settlement election form providing for the application of the Annuity Account
Value to purchase a Period Certain Annuity, defined in Section 1.14C, where the
certain period of such annuity is at least ten years, or (v) for certificates
issued prior to January 1, 1986, the attainment of age 70 years and six months,
the Cash Value as provided in Section 1.18 will be equal to the Annuity Account
Value. At other times, the Cash Value may also be reduced by a withdrawal charge
as provided in Section 1.18.
The Contract is issued in consideration of the payment to Equitable of the
Contributions made under the Contract.
The provisions on the following pages are part of this certificate.
PART I - DEFINITIONS
SECTION 1.01 EMPLOYER. The term "Employer" means the sole proprietor,
partnership or corporation which has adopted a Plan. A sole proprietor is deemed
to be his own Employer and a partnership is deemed to be the Employer of each
partner.
SECTION 1.02 PLAN. The term "Plan" means (i) a program established by an
individual which requires amounts contributed thereunder to be applied to the
purchase of individual retirement annuities within the meaning of Section 408(b)
of the Code and (ii) a written program established by an Employer constituting a
"Simplified Employee Pension" under Section 408(k) of the Code which requires
amounts contributed thereunder to be applied to the purchase of individual
retirement annuities within the meaning of Section 408(b) of the Code.
SECTION 1.03 ANNUITY. The term "Annuity" means an individual retirement annuity
meeting the requirements of Section 408(b) of the Code.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Section 3.04 of the Contract.
SECTION 1.05 PARTICIPANT. The term "Participant" means a person who has been
enrolled by Equitable under the Contract pursuant to a Plan for the purpose of
purchasing an Annuity under the Contract. A person shall become enrolled under
the Contract upon receipt by Equitable of an enrollment form made available by
Equitable and completed in a manner satisfactory to Equitable. A person who has
been enrolled under the Contract shall be a Participant-owner under the
certificate during his lifetime. An Annuity is purchased for a person enrolled
under the Contract upon receipt by Equitable of an initial Contribution for the
Participant.
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
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<PAGE>
Page Four
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DEFINITIONS (CONTINUED)
SECTION 1.06 CONTRIBUTION. The term "Contribution" means a payment made to
Equitable for a Participant with respect to an Annuity purchased for such
Participant under the Contract. Equitable is under no obligation to accept any
Contribution less than $20.00.
The aggregate amount of such Contributions in any taxable year of the
Participant shall not exceed the maximum amount permitted to be contributed
under the Code for a taxable year of the Participant under a plan described in
clause (i) or (ii) of Section 1.02, whichever is applicable. Amounts transferred
to the Contract from an individual retirement account or annuity which meets the
requirements of Section 408(a) respectively, of the Code, from a Pension Plan
Endowment contract issued by Equitable as an individual retirement annuity, or
amounts contributed under the Rollover Contribution Basis pursuant to subsection
B of Section 2.01, are not subject to the above limitations on Contributions.
SECTION 1.07 PARTICIPATION DATE. The term "Participation Date" with respect to a
Participant means the date as of which Equitable has enrolled such Participant
under the terms of the Contract.
SECTION 1.08 PARTICIPATION YEAR. The term "Participation Year" with respect to a
Participant means the twelve month period beginning on (i) the Participation
Date, and (ii) each anniversary thereof, unless otherwise agreed to in writing
by Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS. Except as provided in Section 1.10, the term
"Class of Participants" refers to all Participants whose Participation Date is
in the same calendar year.
SECTION 1.10 GUARANTEED INTEREST RATE. For the Guaranteed Interest Division, the
term "Guaranteed Interest Rate" means the effective annual rate at which
interest accrues on the amount in such Division. Interest accrues daily. The
Guaranteed Interest Rate will never be less than 3 % per annum.
Equitable will from time to time establish and make available for new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new class of Participants will be established effective with the
effective date of the occurrence of (i), (ii) or (iii) above or any combination
thereof.
For the calendar year next succeeding the end of the period for which an
established Initial Guaranteed Interest Rate is effective and for each
subsequent calendar year thereafter, Equitable will determine for each
established Class of Participants before the beginning of such calendar year a
Yearly Guaranteed Interest Rate for such Class, which Yearly Guaranteed Interest
Rate will not be lower than the effective Minimum Guaranteed Interest Rate
applicable for such Class for such year. For any established Class of
Participants, Equitable reserves the right to change the Minimum Guaranteed
Interest Rate and the applicable period therefor, provided that any such Minimum
Guaranteed Interest Rate will not be lower than the Minimum Guaranteed Interest
Rate that would have been in effect in the absence of such change. Equitable
will notify each Participant in a Class in writing of the Yearly Guaranteed
Interest Rate or of any change in the Minimum Guaranteed Interest Rate at least
15 days prior to its effective date.
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine for
each established Class of Participants a Guaranteed Interest Rate for such Class
which exceeds the applicable Yearly Guaranteed Interest Rate. Equitable will
notify each Participant in writing of the applicable Guaranteed Interest Rate
and duration.
SECTION 1.11 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Participant is to attain the retirement age specified in the Participant's
enrollment form. Before the Retirement Date the Participant may elect to change
the Retirement Date to another Retirement Date, which may be any date after the
filing of the election (other than the 29th, 30th, or 31st day of any month). No
Retirement Date shall be earlier than the date the Participant attains age 59
years and six months nor shall be later than the first day of April following
the calendar year in which the Participant attains age 70 years and six months.
Any election for such change must be made in writing by the Participant and
shall not take effect until received by Equitable at its Home Office.
SECTION 1.12 NORMAL FORM. The "Normal Form" of an Annuity Benefit under the
Contract means, (i) if the Participant has a living spouse at the Retirement
Date, the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity
Form with such spouse as the contingent annuitant (100% continuation) and (ii)
if the Participant does not have a living spouse at the Retirement Date, the
Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depends is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by the Participant. The payments commence on the date as of which the
Joint and Survivor Life Annuity Form is purchased and terminate with the last
payment due before the death of the survivor.
SECTION 1.14A LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
providing fixed monthly payments during the lifetime of the person upon whose
life such payments depend. The payments commence on the date as of which the
Life Annuity Form is purchased and terminate with the last payment due before
the death of such person.
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
---------
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<PAGE>
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DEFINITIONS (CONTINUED)
SECTION 1.14B ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain"
means an annuity not involving life contingencies issued by Equitable, which
annuity shall not provide for payments beyond the life expectancy of the
Participant or the joint life expectancy of the Participant and the
Participant's designated beneficiary. Such annuity shall extend beyond the
Participant's attainment of age 59 years and six months and shall not permit any
prepayment of principal prior to the Participant's attainment of age 59 years
and six months. Life expectancy and joint life expectancy of the Participant and
the Participant's designated beneficiary shall be computed by the use of the
return multiples contained in Section 1.72-9 of the regulations under the Code.
SECTION 1.15 THE SEPARATE ACCOUNT. The Separate Account is Separate Account A
(in unit investment trust form). Equitable established the Separate Account and
it is maintained in accordance with the laws of New York State. Realized and
unrealized gains and losses from the assets of the Separate Account are credited
or charged against it without regard to Equitable's other income, gains or
losses. Assets are put in the Separate Account to support the certificates
issued under the Contract and other variable annuity contracts and certificates.
Assets may be put in the Separate Account for other purposes, but not to support
contracts or policies other than variable annuities and variable insurance.
The assets of the Separate Account are the property of Equitable. The portion of
its assets equal to the reserves and other contract liabilities with respect to
the Separate Account will not be chargeable with liabilities arising out of any
other business we conduct. Equitable may transfer assets of an Investment
Division in excess of the reserves and other liabilities with respect to such
Investment Division to another Investment Division or to Equitable's General
Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated trust or investment company where each class (or series) represents a
separate portfolio in the trust or investment company. Equitable retains the
right to change the designated trust or investment company or to add designated
trusts or investment companies. The Investment Divisions available on the
Effective Date of this endorsement are the Stock Division, the Money Market
Division, the Balanced Division and the Aggressive Stock Division.
Equitable will value the assets of each Investment Division on each business
day. A business day is any day on which the New York Stock Exchange is open for
trading and there is a sufficient degree of trading in the portfolio securities
in which an Investment Division is invested that the Accumulation Unit Value or
Annuity Unit Value might be materially affected by changes in the value of those
securities, as determined by Equitable.
Equitable may, at its discretion, invest the assets of any Investment Division
in any investment permitted by applicable law. Equitable may rely conclusively
on the opinion of counsel (including attorneys in its employ) as to what
investments it is permitted by law to make.
Equitable reserves the right (i) to cause the registration or deregistration of
the Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) to run the Separate Account under the direction of a
committee, and to discharge such committee at any time; (iii) to restrict or
eliminate any voting rights of Participants or other persons who have voting
rights as to the Separate Account; (iv) to operate the Separate Account by
making direct investments, or in any other form; (v) to add Investment Divisions
(or sub-divisions of Investment Divisions) to, or remove Investment Divisions
(or sub-divisions of Investment Divisions) from the Separate Account; (vi) to
combine any two or more Investment Divisions (or sub-divisions of Investment
Divisions) of the Separate Account; and (vii) to withdraw from any Investment
Division and to allocate to another Investment Division assets determined by
Equitable to be associated with the class of contracts to which the certificates
issued under the Contract belong. The term "Investment Division" in the
certificate shall then refer to any other Investment Division in which the
assets (of a class of contracts to which the certificates issued under the
Contract belong) were placed.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, the Participants will be notified of such
exercise.
Assets of the Investment Divisions attributable to the certificates issued under
the Contract shall be subject to a daily charge at a rate not to exceed the
maximum rate of 1.75% per year for investment management, financial accounting,
the annuity rate guarantee, the minimum death benefit, expenses and expense
risk, but after any deductions to provide for taxes. The charge shall be made in
accordance with (c) of the Net Investment Factor provision in Section 1.16. The
relative proportion of these charges may be modified, but the maximum annual
rate of 1.75% of the value of the assets of the Investment Divisions
attributable to the certificates may not be altered without approval by the
certificate owners.
SECTION 1.16 DEFINITIONS RELATING TO THE INVESTMENT DIVISIONS OF THE SEPARATE
ACCOUNT.
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period.
NET INVESTMENT FACTOR: For the certificates issued under the Contract, the Net
Investment Factor for each Investment Division of the Separate Account for a
Valuation Period is (a) divided by (b), minus (c), where
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
---------
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<PAGE>
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DEFINITIONS (CONTINUED)
(a) is the net asset value of the Investment Division at the end of the
Valuation Period before giving effect to any amounts allocated or
withdrawn from the Investment Division for the Valuation Period, but
after any amounts charged against the Investment Division in the Valuation
Period for investment expenses or taxes.
(b) is the net asset value of the Investment Division at the end of the
preceding Valuation Period (after any amounts allocated or withdrawn for
that Valuation Period).
(c) is the daily asset charge for the certificates issued under the Contract,
reduced by the portion of that charge applicable to investment expenses of
the Investment Division, times the number of calendar days in the
Valuation Period.
The value of the assets in the Investment Divisions, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
their fair value, as determined in accordance with generally accepted accounting
practices and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the
amount a Participant has in an Investment Division of the Separate Account on or
before the Retirement Date.
ACCUMULATION UNIT VALUE: With respect to certificates issued under the Contract,
the initial Accumulation Unit Value associated with each investment option was
established as follows:
Investment Option Value Date Established
----------------- ----- ----------------
Stock $10.00 November 1, 1968
Money Market $10.00 September 4, 1974
Balanced $10.00 May 1, 1984
Aggressive Stock $10.00 May 1, 1984
The Accumulation Unit Value for each subsequent Valuation Period is the
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: With respect to certificates issued under the Contract, the
initial Annuity Unit Value was established at $1.00 as of November 1, 1968. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: With respect to certificates issued under the
Contract, the Average Annuity Unit Value for a calendar month is equal to the
average of the Annuity Unit Values for all Valuation Periods ending in such
month.
SECTION 1.17 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that a Participant has in the Guaranteed Interest Division
and the Investment Divisions of the Separate Account pursuant to Sections 2.02
and 2.03.
SECTION 1.18 CASH VALUE
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value" means
an amount equal to the Annuity Account Value after the earliest of the following
occurrences:
(i) The later of (a) the completion of five Participation Years with respect to
such Participant and (b) the Participant's attainment of age 59 years and six
months, or (ii) the completion of twelve Participation Years with respect to
such Participant, or (iii) the Participant's attainment of age 55, the
completion of five Participation Years with respect to such Participant and the
receipt by Equitable of a properly completed settlement election form providing
for the application of the Annuity Account Value to purchase an Eligible Annuity
Certain, defined in Section 1.14B, or (iv) the completion of three Participation
Years with respect to such Participant and the receipt by Equitable of a
properly completed settlement election form providing for the application of the
Annuity Account Value to purchase a Period Certain Annuity, defined in Section
1.14C, where the certain period of such annuity is at least ten years, or (v)
for certificates issued prior to January 1, 1986, the Participant's attainment
of age 70 years and six months. At other times, the Cash Value equals the
Annuity Account Value less a withdrawal charge.
WITHDRAWAL CHARGE: The withdrawal charge equals the lesser of (a) or (b) where:
(a) equals
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the Annuity Account Value over (ii) the Free Corridor
Amount defined in Section 2.07B.
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
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DEFINITIONS (CONTINUED)
(b) is the excess, if any, of (i) 8% of the total Contributions made on behalf
of such Participant during the current Participation Year and the nine
preceding Participation Years over (ii) the cumulative total of any prior
partial withdrawal charges made pursuant to Section 2.07A.
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of 1954, as
now or hereafter amended, or any corresponding provisions of prior or subsequent
United States revenue laws.
PART II - PARTICIPANT'S ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. Contributions may be made with respect to a
Participant on whichever basis, as described under subsections A and B below, as
specified upon the Participant's enrollment under the Contract. If Contributions
are made by or on behalf of a Participant under more than one such basis,
Equitable will accept such Contributions if the Participant is separately
enrolled under the Contract under each basis, and in such case separate
certificates will be issued under the Contract for the Participant reflecting
amounts accumulated on the Participant's behalf attributable to Contributions
made under each Contribution basis.
Each Contribution received by Equitable with respect to a Participant will,
before its allocation under the Contract, be reduced by the amount of any
applicable taxes, as determined by Equitable.
A. Flexible Contribution Basis
Contributions are to be made from time to time on the dates and in the amounts
determined in accordance with the terms of the Plan. With each Contribution
there shall be specified the Participant with respect to whom such Contribution
is being made and the amount to be allocated to the Stock Division, Balanced
Division, Aggressive Stock Division, Money Market Division and the Guaranteed
Interest Division.
A Participant may, with Equitable's agreement, transfer to the Contract any
amount held with respect to such Participant under an individual retirement
account or annuity meeting the requirements of Section 408(a) or (b),
respectively, of the Code issued by Equitable or otherwise, or a Pension Plan
Endowment contract issued by Equitable as an individual retirement annuity,
except an individual retirement account or annuity contract containing any
"rollover amounts" within the meaning of Section 402(a)(5) or 403(b)(8) of the
Code. Any amount so transferred from an individual retirement account or annuity
contract not issued by Equitable will, before allocation under the Contract, be
reduced by the amount of any applicable taxes, as determined by Equitable.
B. Rollover Contribution Basis
A Participant may make one or more Contributions which in whole or in part
qualify as "rollover amounts" within the meaning of Section 402(a)(5) or
403(b)(8) of the Code or "rollover contributions" within the meaning of Section
408(d)(3) of the Code.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any date when an amount
is allocated to or withdrawn or transferred from an Investment Division, the
Participant will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the Accumulation Unit
Value for the appropriate Investment Division for the Valuation Period which
includes that date. The number of units a Participant has in an Investment
Division on any date is equal to (i) the sum of any Accumulation Units that have
been allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation
Units that have been withdrawn pursuant to Sections 2.07 or 2.08 or transferred
from the Investment Division pursuant to Section 2.05. The amount a Participant
has in an Investment Division on any date is equal to the product of (i) the
number of Accumulation Units that a Participant has in the Investment Division
on that date and (ii) the Accumulation Unit Value for the Investment Division
for the Valuation Period which includes that date.
Participation in the Separate Account under the Contract terminates on the
earliest of (i) the Retirement Date, (ii) the death of the Participant, and
(iii) termination of participation pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of the general assets of Equitable,
which support the guarantees of the Contract and other contracts.
The amount a Participant has in the Guaranteed Interest Division at any time is
equal to the sum of all amounts that have been allocated to the Guaranteed
Interest Division pursuant to Section 2.04 or Section 2.10 plus the amount of
any interest accrued but not allocated, less the sum of all amounts that have
been withdrawn from the Guaranteed Interest Division pursuant to Section 2.07 or
2.08 or transferred from the Guaranteed Interest Division, pursuant to Section
2.05. Interest is allocated to the Guaranteed Interest Division pursuant to
Section 2.04. Equitable guarantees that the rate at which interest accrues will
never be less than 3% per annum.
Participation in the Guaranteed Interest Division terminates on the earliest
of (i) the Retirement Date, (ii) the death of the Participant, and (iii)
termination of participation pursuant to Section 2.06.
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
----------
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<PAGE>
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----------
PARTICIPANT'S ANNUITY ACCOUNT VALUE (CONTINUED)
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made with respect to a
Participant pursuant to Section 2.01, after deduction for any applicable taxes,
will be allocated, as of the date by which Equitable has received at the
Processing Office both such Contribution and direction as to its allocation, to
one or more Investment Divisions, at the sole direction of the Participant as
specified to Equitable, provided that the percentage allocated to each Division
is a whole number and the aggregate percentage is 100%.
Any amount that a Participant has directed to be transferred to one or more
Divisions pursuant to Section 2.05 will be allocated as of the date Equitable
receives at the Processing Office the written request for such transfer to the
appropriate Investment Division.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division at the end of each Participation Year, at the time
of each transfer from the Division pursuant to Section 2.05, at the time of each
withdrawal pursuant to Section 2.07, at the time of application of amounts in
the Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, upon termination of participation pursuant to Section 2.06 and upon death
of the Participant pursuant to Section 2.09.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. At any time before a Participant's
Retirement Date, such Participant, upon written request, may transfer all or
part of the amount the Participant has in a Division to one or more of the
Divisions as follows: (1) amounts in the Guaranteed Interest Division, Stock
Division, Balanced Division and Aggressive Stock Division may be transferred
among such Divisions; (2) amounts in the Money Market Division may be
transferred to other Divisions. Such transfers will be made as of the date
Equitable receives such request at the Processing Office, and will be subject to
Equitable's rules in effect at the time of transfer. No transfers are permitted
to the Money Market Division from the other Divisions. Notwithstanding the
above, transfers to the Balanced Division may be prohibited by Equitable upon 30
days written notice to the Participants.
SECTION 2.06 TERMINATION OF PARTICIPATION. On or before a Participant's
Retirement Date, such Participant may elect by written notice to terminate
participation under the Contract. Equitable will determine the Cash Value under
the Contract as of the date Equitable received such notice at the Processing
Office.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to pay
the Annuity Account Value under the Contract and terminate such Participant's
participation under the Contract. This right may be exercised with respect to
the Participant only if both (i) no Contributions have been made under the
Contract during the last three completed Participation Years, and (ii) the
Annuity Account Value is less than $500. Equitable reserves the right to
terminate a Participant's participation under the Contract if at least 120 days
have elapsed since the issue date shown on the certificate issued to such
Participant under the Contract and no Contributions have been made under the
Contract with respect to such Participant.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount a Participant has in the Divisions and the Annuity Account Value
shall be zero. Equitable will be released from any and all liability for
payments with respect to the Contributions from which the Annuity Account Value
arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions under
the terms of the Plan, a Participant may elect by written notice to Equitable to
make a partial withdrawal from the Divisions before such Participant's
Retirement Date.
Upon receipt of such notice at the Processing Office, Equitable will pay the
lesser of the Cash Value or the amount of partial withdrawal requested to the
person entitled to such payment as designated in writing by such Participant.
The amount paid plus any withdrawal charge applicable pursuant to Section 2.07A
will be withdrawn from the amounts the Participant has in the Divisions. Unless
instructed otherwise, the amount withdrawn (including any withdrawal charge)
will be allocated among the Divisions in proportion to the amounts that the
Participant has in such Divisions.
Upon any partial withdrawal payment, Equitable will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by Equitable in
accordance with the provisions of Section 4.08.
Equitable may decline to accept a request for a partial withdrawal of less than
$300. If a withdrawal made under this Section would result in an Annuity Account
Value of less than $500, Equitable will so advise the Participant and reserves
the right to pay the Annuity Account Value to the Participant, and terminate
such Participant's participation under the Contract. For certificates issued
prior to August 15, 1981, if a withdrawal made under this Section would result
in an Annuity Account Value of less than $200, Equitable will so advise the
Participant and reserves the right to pay the Annuity Account Value to the
Participant, and terminate such participant's participation under the Contract.
SECTION 2.07A PARTIAL WITHDRAWAL CHARGES
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.07B or (b) the Cash Value is equal to the Annuity
Account Value, pursuant to Section 1.18.
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
----------
Page Eight
<PAGE>
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PARTICIPANT'S ANNUITY ACCOUNT VALUE (CONTINUED)
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, Equitable will (i) first withdraw from such Divisions
an amount equal to the Free Corridor Amount, and (ii) then withdraw an amount
equal to the excess of the amount requested over the Free Corridor Amount, plus
a partial withdrawal charge. Such partial withdrawal charge will be equal to the
lesser of (a) or (b) where:
(a) is an amount equal to
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on behalf
of such Participant during the current Participation Year and the nine
preceding Participation Years over (ii) the cumulative total of any prior
partial withdrawal charges made pursuant to this Section.
SECTION 2.07B FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" with respect
to a Participant who has completed three Participation Years or attained age 59
years and six months means an amount equal to the excess, if any, of (i) 10% of
the Annuity Account Value over (ii) cumulative prior withdrawals made pursuant
to Section 2.07 in the current Participation Year with respect to the
Participant. With respect to a Participant who has not completed three
Participation Years or attained age 59 years and six months, the Free Corridor
Amount is zero.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year before a Participant's Retirement Date, Equitable will
withdraw from the Divisions an annual administrative charge equal to the lesser
of $30 or 2% of the sum of (i) the Annuity Account Value and (ii) any
withdrawals pursuant to Section 2.07 during that Participation Year. The charge
will be allocated among the Divisions in proportion to the amounts that the
Participant has in the Divisions.
As of a Participant's Retirement Date and before application of the Annuity
Account Value or Cash Value of the certificate pursuant to Section 3.03, or upon
termination of participation under the Contract pursuant to Section 2.06 or
Section 2.09 during a Participation Year, Equitable will determine the portion
of the administrative charge applicable to the completed portion of the current
Participation Year and withdraw such amount in lieu of the annual administrative
charge described in this Section for the applicable part of that Participation
Year.
As of a Participant's Retirement Date and before application of the Annuity
Account Value or Cash Value pursuant to Section 3.03, or upon termination of
participation pursuant to Section 2.06 or 2.09 during a Participation Year, if
the Annuity Account Value on that date is less than $10,000, Equitable will
withdraw the administrative charge described in this Section for the applicable
part of that Participation Year.
SECTION 2.09 DEATH BENEFIT. If the Employer reports to Equitable, or if
Equitable otherwise ascertains, that a Participant has died while such
Participant has amounts in the Divisions and before such Participant's
Retirement Date, Equitable, upon receipt of due proof of such death, will pay in
a single sum to the beneficiary designated by such Participant to receive such
payment the amount of death benefit payable with respect to such Participant.
The amount of the death benefit with respect to a Participant at any time prior
to the Retirement Date is equal to the greater of (i) the Annuity Account Value
and (ii) the minimum death benefit with respect to such Participant. Such
minimum death benefit is the sum of all Contributions made with respect to such
Participant pursuant to Section 2.01 (before reduction for any applicable taxes)
less any withdrawals made pursuant to Section 2.07. Any such withdrawal will
reduce the minimum death benefit (as adjusted by any previous such withdrawal)
by an amount which is in the same proportion as the amount that was withdrawn is
to the Annuity Account Value. If, in accordance with the provisions of Section
2.01, the cash value of an annuity contract issued by Equitable, which provides
for a death benefit before retirement equal to the greater of the contract cash
value or an alternate amount based on premiums paid or contributions made under
the annuity contract, is transferred to the Contract, such alternative amount as
of the date of transfer, will be included in the "sum of all Contributions" in
lieu of the amount of cash value transferred for purposes of the death benefit
under the Contract.
Upon payment of the death benefit, the amount a Participant has in the Divisions
and the Annuity Account Value shall be zero. Equitable will be released from any
and all liability for payments with respect to the Contributions from which the
Annuity Account Value arose.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
---------
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<PAGE>
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--------
ANNUITY BENEFITS (CONTINUED)
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to a payee pursuant to Section 3.04. The amount of
the fourth and each subsequent payment under a Variable Annuity Benefit will be
equal to the number of Annuity Units with respect to such benefit, multiplied by
the Average Annuity Unit Value for the second calendar month immediately
preceding the due date of the payment. The fourth and subsequent annuity
payments under a Variable Annuity Benefit will not be increased or decreased in
amount because of mortality or expense experience. The number of Annuity Units
with respect to a benefit is the number determined by dividing the amount of the
first monthly payment under such benefit by the Annuity Unit Value for the
Valuation Period which includes the due date of the first monthly payment.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living, the
Annuity Account Value shall be applied to provide the Normal Form of Annuity
Benefit, unless such Participant elects (i) to receive the Cash Value of the
certificate in a single sum or (ii) to apply the Annuity Account Value or Cash
Value, whichever is applicable pursuant to the first paragraph of Section 3.04,
to provide an Annuity Benefit on any other annuity form offered by Equitable, as
elected by the Participant, subject to Equitable's rules then in effect and any
other applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.06 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Value.
Equitable will have the right to require the Participant to furnish pertinent
information to provide an Annuity Benefit, and will be fully protected in
relying on such information and need not inquire as to the accuracy or
completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If a Participant elects pursuant to the
first or third paragraph of Section 3.03 to receive an Annuity Benefit in lieu
of the Cash Value, the amount applied to provide the Annuity Benefit will be (i)
the Annuity Account Value if the payments under the annuity form elected are
contingent upon the survival of a person or (ii) the Cash Value if the payments
under the annuity form elected are not contingent upon the survival of a person.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If such
amount is applied on or after the completion of five Participation Years with
respect to such Participant, the balance shall purchase the Annuity Benefit on
the basis of either (i) the Table of Guaranteed Annuity Payments shown below or
(ii) Equitable's current individual annuity rates for payment of proceeds,
whichever rates would provide a larger benefit with respect to the payee. If
such current individual annuity rates are used, such Participant's certificate
will be replaced by an Equitable supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a Participant, the
balance, after any applicable tax on annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown below or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the amounts the Participant has in the
Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form, are based on 3 1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on a 50-50 split of males and
females. The amounts of income initially provided under the Variable Annuity
Benefit payable on the Life Annuity Form and Joint and Survivor Life Annuity
Form are based on the projected 1983 Basic Table adjusted to a unisex basis
based on a 50-50 split of males and females and an Assumed Base Rate of Net
Investment Return of 3 1/2% or 5%, whichever applies pursuant to Section 1.16.
The Assumed Base Rate of Net Investment Return is 5% for certificates issued for
delivery in New York. Equitable may change the monthly income amounts contained
in the Tables of Guaranteed Annuity Payments and the basis for determining such
amounts, for new Participants, by at least 90 days advance notice to the
Contract Holder and by an amendment to the Contract.
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
---------
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ANNUITY BENEFITS (CONTINUED)
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on a 50-50 split of males and
females if such annuity form provides for a Fixed Annuity Benefit, and on the
projected 1983 Basic Table adjusted to a unisex basis based on a 50-50 split of
males and females and an Assumed Base Rate of Net Investment Income Return of 5%
or 3 1/2%, whichever applies pursuant to Section 1.16, if such annuity form
provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. The entire interest of a Participant
will be distributed to such Participant by April 1 of the year following the
calendar year in which the Participant attains age 70 years and six months. Or,
at the request of the Participant such entire interest shall be distributed
beginning not later than such April 1st in equal or substantially equal amounts
over:
(a) the life of such Participant or the joint lives of such Participant and
the Participant's designated beneficiary; or
(b) a period no longer than the life expectancy of such Participant or the
joint life expectancy of such Participant and the Participant's designated
beneficiary.
Or, a Participant's interest shall begin to be distributed no later than such
April 1st, in such amounts as the Participant may request, provided such
requested amounts are at least equal to the minimum amounts required to be
distributed under the Code and provided further that such requested
distributions are in accordance with Equitable's rules in effect at the time of
each request.
At minimum, the Code requires that if a Participant's interest is to be
distributed in other than a single payment, then the amount to be distributed
each year, beginning by the April 1st of the year following the calendar year in
which the Participant attains age 70 years and six months and thereafter by each
December 31, must be an amount equal to at least the amount obtained by dividing
such Participant's interest by the Participant's life expectancy or the joint
life expectancy of such Participant and the Participant's designated
beneficiary. A participant may elect to recalculate the Participant's life
expectancy or the joint life expectancy of such Participant and the
Participant's spousal beneficiary annually.
The life expectancy of any non-spousal beneficiary may not be recalculated after
the original determination.
If the Participant dies after distribution of the Participant's interest under
this Contract begins, then the remaining portion of such interest will continue
to be distributed at least as rapidly as under the method of distribution used
before the Participant's death.
If the Participant dies before payments of the Participant's interest begins,
then either: (a) such entire interest will be distributed within five years
after the Participant's death; or (b) upon the Participant's written request,
distribution will be made to the Participant's designated beneficiary as
follows: (i) the entire interest will be distributed over the life or life
expectancy of the designated beneficiary; and (ii) such distribution will begin
no later than one year after the Participant's death. The designated beneficiary
may elect at any time after the Participant's death to receive greater payments,
provided the income arrangement chosen by the Participant permits such change.
For purposes of this Section 3.05, the life expectancy of the Participant, the
joint life expectancy of the Participant and the Participant's designated
beneficiary, and the life expectancy of the Participant's designated beneficiary
shall be computed by use of the return multiples contained in Section 1.72-9 of
the regulations under the Code.
Evidence of each payee's survival must be furnished to Equitable either by
personal endorsement of the check drawn for payment or by other means
satisfactory to Equitable.
If a benefit payment under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Upon election by a Participant pursuant to Section 3.03 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
-----------
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Page Twelve
ANNUITY BENEFITS (CONTINUED)
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.03
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM
- 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.54 4.58 4.62 4.66 4.70 4.74 4.77 4.81 4.84 4.88 4.91
61 4.62 4.67 4.71 4.76 4.81 4.84 4.88 4.91 4.95 4.99
62 4.72 4.76 4.81 4.85 4.90 4.94 4.98 5.02 5.06
63 4.81 4.86 4.91 4.96 5.01 5.06 5.10 5.14
64 4.92 4.97 5.02 5.08 5.13 5.17 5.22
65 5.03 5.09 5.15 5.20 5.26 5.31
66 5.15 5.21 5.27 5.33 5.39
67 5.28 5.34 5.40 5.47
68 5.41 5.48 5.55
69 5.56 5.63
70 5.71
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM -
100% CONTINUATION - ASSUMED BASE RATE OF NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.40 4.44 4.58 4.51 4.55 4.58 4.61 4.65 4.68 4.71 4.74
61 4.48 4.52 4.56 4.60 4.64 4.67 4.71 4.74 4.78 4.81
62 4.56 4.60 4.65 4.69 4.73 4.77 4.80 4.84 4.88
63 4.65 4.69 4.74 4.78 4.83 4.87 4.91 4.95
64 4.74 4.79 4.84 4.89 4.93 4.98 5.02
65 4.85 4.90 4.95 5.00 5.05 5.10
66 4.95 5.01 5.06 5.11 5.17
67 5.07 5.12 5.18 5.24
68 5.19 5.25 5.32
69 5.32 5.39
70 5.46
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM -
100% CONTINUATION - ASSUMED BASE RATE OF NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.27 5.30 5.34 5.37 5.41 5.44 5.47 5.51 5.54 5.57 5.59
61 5.34 5.38 5.42 5.46 5.49 5.53 5.57 5.60 5.63 5.66
62 5.42 5.46 5.50 5.54 5.58 5.62 5.65 5.69 5.73
63 5.50 5.55 5.59 5.63 5.67 5.71 5.75 5.79
64 5.59 5.64 5.69 5.73 5.78 5.82 5.86
65 5.69 5.74 5.79 5.84 5.89 5.93
66 5.79 5.85 5.90 5.95 6.00
67 5.90 5.96 6.02 6.08
68 6.02 6.08 6.15
69 6.15 6.22
70 6.29
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
FIXED VARIABLE ANNUITY BENEFIT
ANNUITY IF ASSUMED BASE RATE OF
AGE BENEFIT NET INVESTMENT RETURN IS
- --- ------- ------------------------
3 1/2% 5%
- --------------------------------------------------------------------------------
60 5.29 5.08 5.97
61 5.41 5.19 6.08
62 5.55 5.31 6.20
63 5.69 5.44 6.33
64 5.85 5.58 6.46
65 6.01 5.73 6.61
66 6.19 5.89 6.77
67 6.37 6.06 6.94
68 6.58 6.24 7.12
69 6.79 6.43 7.31
70 7.02 6.64 7.52
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
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<PAGE>
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ANNUITY BENEFITS (CONTINUED)
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. The Contract constitutes the entire Contract between the
parties and the provisions of the Contract alone will govern with respect to the
rights and obligations of Equitable. The provisions of the Contract will be
applied separately with respect to each Participant.
Nothing in the enrollment form referred to in Section 1.05, the Plan or
custodial agreement referred to in Section 4.10 nor any modification, amendment,
or supplement to any such documents will in any way be construed to enlarge,
change, vary or in any other way affect the obligations of Equitable as
expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE. Equitable reserves the right to amend the
Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the Contract and any certificate to reflect changes in
the Code, or in regulations or published rulings of the Internal Revenue Service
so that each such certificate will continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY. The entire interest of any
Participant under the Contract is nonforfeitable.
No interest of a Participant under the Contract may be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law, no such amount will in any way
be subject to any claim against such payee.
SECTION 4.04 PARTICIPATION IN SURPLUS. The Contract and all other contracts in
the same class of contracts shall be combined for the purpose of ascertaining
the annual surplus of Equitable to be apportioned to said contracts as a
dividend and the portion of any such dividend that is to be allocated to the
Contract shall be determined by Equitable. The participation of this class of
contracts in annual surplus is, however, expected to be minimal. Any amount so
allocated to the Contract shall be payable as of January 1 of the calendar year
in which a dividend is apportioned and will be payable in cash and shall be
equitably allocated by Equitable to the Guaranteed Interest Division on behalf
of the Participants.
SECTION 4.05 BENEFICIARY. Each Participant, as of such Participant's
Participation Date, is to provide Equitable with an initial designation of the
beneficiary entitled to receive any death benefit payable with respect to such
Participant pursuant to Section 2.09. The Participant may change such
designation from time to time during such Participant's lifetime and while a
certificate for such Participant is being maintained hereunder. Any such
designation or change will be made by written notice in a form satisfactory to
Equitable. A change will, upon receipt at the Processing Office, take effect as
of the time the written notice was signed, whether or not the Participant is
living on the date of receipt, but without further liability as to any payment
or other settlement made by Equitable before receipt of such change.
Unless otherwise specified in the designation, if a Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant, and if more than one survive they
will share equally.
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.09 for which there is no designated beneficiary living at the death of
the Participant will be payable in a single sum to the children of the
Participant who survive the Participant, in equal shares, or should none
survive, then to the Participant's executors or administrators.
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
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Page Thirteen
<PAGE>
Page Fourteen
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GENERAL PROVISIONS (CONTINUED)
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.06 DISQUALIFICATION. In the event that an annuity purchased hereunder
with respect to a Participant fails to qualify as an Annuity as described in
Section 1.03, Equitable shall have the right, upon receiving notice of such fact
before the Retirement Date, to terminate participation with respect to such
Participant under the Contract and pay to such Participant the Annuity Account
Value less a deduction for the appropriate part attributable to such Participant
of any Federal income tax payable by Equitable which would not have been payable
if such Participant had an Annuity under the Contract.
SECTION 4.07 FUTURE PARTICIPANTS. Equitable reserves the right at its sole
discretion to curtail or prohibit further enrollment as Participants under the
Contract of any individuals who are not currently participating under the
Contract as of such date of curtailment or prohibition.
SECTION 4.08 DEFERMENT. Payments by Equitable from the Guaranteed Interest
Division pursuant to the provisions of Section 2.06, 2.07 and 2.09, or any
commuted payments arising from a Fixed Annuity Benefit pursuant to Section 3.05,
may be deferred for up to six months after receipt of a written request for such
surrender or withdrawal, or receipt of due proof of death of the Participant,
respectively, or receipt of due documentation for such commutation payment
pursuant to Section 3.05. Interest at the current Guaranteed Interest Rate will
be allowed on any such payment deferred for 30 days or more.
During any period when (i) the sale of securities or the determination of the
New Accumulation Unit Value or the Average Annuity Unit Value is not reasonably
practicable because an emergency, defined by the Securities and Exchange
Commission, exists, or the New York Stock Exchange is closed or trading on such
Exchange is restricted, or (ii) the Securities and Exchange Commission may by
order permit postponement for the protection of persons having interests in the
Separate Account, Equitable reserves the right:
(a) to defer determination of Cash Value or Annuity Account Value and payment
of Cash Value and Annuity Account Value, arising from an Investment
Division of the Separate Account;
(b) to defer payment of any portion of the death benefit arising from an
Investment Division of the Separate Account;
(c) to defer the payment of any Variable Annuity Benefit under the Contract or
the application of any such benefit to provide for any other payment
called for under the Contract; or
(d) in the event of (a) above, to defer application of such amounts to provide
any Annuity Benefit permitted under the Contract.
SECTION 4.09 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Participant with a
notice showing as of a specified recent date: (1) the amount the Participant has
in the Guaranteed Interest Division, (2) the total number of Accumulation Units
the Participant has in the Stock Division, Balanced Division, Aggressive Stock
Division and Money Market Division, (3) the Accumulation Unit Values, (4) the
amount the Participant has in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division, (5) the Cash Value and (6) the amount
of death benefit payable with respect to the Participant. After the Retirement
Date, Equitable will notify the Participant of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY. The sole responsibility of the
Contract Holder is to serve as party to the Contract. The Contract Holder will
have no responsibility for the administration of any Plan or Agreement, or for
Contributions or any payments or other distributions hereunder. Equitable will
deal with the Contract Holder in accordance with the terms and conditions of the
custodial agreement pursuant to which the Contract Holder agreed to act as such
and in such manner as the Contract Holder and Equitable agree, without the
consent of any other person. Any Employer making Contributions under the
Contract shall be deemed to have adopted and accepted the custodial agreement as
part of the Plan with respect to which such Contributions are made.
SECTION 4.11 AGE. If the Annuitant's age has been misstated, any benefits will
be those which would have been purchased at the correct age. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
This certificate was approved by the New York Insurance Department under an
accelerated procedure to assist employers in complying with the United States
Supreme Court decision in Arizona v. Norris. The Department has reserved the
right to require changes to comply with applicable New York law and regulations.
NO. 11933I AMENDED BY PF 17006I - PF 17010I - PF 17015I - PF 17019I - PF 17023I
PF 17028I - PF 17034I - PF 17048I
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Page Fourteen
<PAGE>
THE EQUTIABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Your certificate issued under Group Annuity Contract No. 11929CI
is amended as follows:
With respect to the language on the front page, the following
statement is deleted:
"THIS CONRACT MAY NOT BE SUITABLE FOR A PARTICIPANT IF THE ONLY
CONTRIBUTION TO BE MADE ON SUCH PARTICIPANT'S BEHALF IS A
SUBSTANTIAL SINGLE SUM CONTRIBUTION."
SPECIMEN Vice President and Secretary Specimen President
PF 170281
<PAGE>
THE EQUITABLE Life Assurance Society of the United States
Effective January 1, 1985, for Participants with a Participation Date on or
after January 1, 1985, your certificate issued under Group Annuity Contract
11929CI is amended as follows:
1. In Section 1.11 entitled "Retirement Date" the third sentence is amended to
read as follows:
"No Retirement Date shall be earlier than the date the Participant attains
age 59 years and six months nor shall be later than the first day of April
following the calendar year in which the Participant attains age 70 years
and six months."
2. Section 1.14B "Eligible Annuity Certain" is amended to read as follows:
"The term "Eligible Annuity Certain" means an annuity not involving life
contingencies issued by Equitable, which annuity shall not provide for
payments beyond the life expectancy of the Participant or the joint life
expectancy of the Participant or the joint life expectancy of the
Participant and the Participant's designated beneficiary. Such annuity shall
extend beyond the Participant's attainment of age 59 years and six months
and shall not permit any prepayment of principal prior to the Participant's
attainment of age 59 years and six months. Life expectancy and joint life
expectancy of the Participant and the Participant's designated beneficiary
shall be computed by the use of the return multiples contained in Section
1.72-9 of the regulations under the Code."
3. Section 2.01 entitled "Contributions", Subsection B entitled "Rollover
Contribution Basis" is amended to read as follows:
"A Participant may make one or more Contributions which in whole or in part
qualify as "rollover amounts" within the meaning of Sections 402(a)(5),
402(a)(7), 403(a)(4) or 403(b)(8) of the Code or "rollover contributions"
within the meaning of Sections 405(d)(3), 408(d)(3) or 409(b) 3(C) of the
Code."
4. In Section 3.05 entitled "Payment of Annuity Benefits" the first two
paragraphs are deleted and replaced with the following:
"The entire interest of a Participant will be distributed to such
Participant by April 1 of the year following the calendar year in which the
Participant attains age 70 years and six months. Or, at the request of the
Participant such entire interest shall be distributed beginning not later
than such April 1st in equal or substantially equal amounts over:
(a) the life of such Participant or the joint lives of such Participant and
the Participant's designated beneficiary; or
(b) a period no longer than the life expectancy of such Participant or the
joint life expectancy of such Participant and the Participant's
designated beneficiary.
Or, a Participant's interest shall begin to be distributed no later than
such April 1st, in such amounts as the Participant may request, provided
such requested amounts are at least equal to the minimum amounts required to
be distributed under the Code and provided further that such requested
distributions are in accordance with Equitable's rules in effect at the time
of each request.
At minimum, the Code requires that if a Participant's interest is to be
distributed in other than a single payment, then the amount to be
distributed each year, beginning by the April 1st of the year following the
calendar year in which the Participant attains age 70 years and six months
and thereafter by each December 31, must be an amount equal to at least the
amount obtained by
PF 17023I
<PAGE>
dividing such Participant's interest by the Participant's life expectancy or
the joint life expectancy of such Participant and the Participant's
designated beneficiary. A participant may elect to recalculate the
Participant's life expectancy or the joint life expectancy of such
Participant and the Participant's spousal beneficiary annually.
The life expectancy of any non-spousal beneficiary may not be recalculated
after the original determination.
If the Participant dies after distribution of the Participant's interest
under this Contract begins, then the remaining portion of such interest will
continue to be distributed at least as rapidly as under the method of
distribution used before the Participant's death.
If the participant dies before payments of the Participant's interest
begins, then either: (a) such entire interest will be distributed within
five years after the Participant's death; or (b) upon the Participant's
written request, distribution will be made to the Participant's designated
beneficiary as follows: (i) the entire interest will be distributed over the
life or life expectancy of the designated beneficiary; and (ii) such
distribution will begin no later than one year after the Participant's
death. The designated beneficiary may elect at any time after the
Participant's death to receive greater payments, provided the income
arrangement chosen by the Participant permits such change.
For purposes of this Section 3.05, the life expectancy of the Participant,
the joint life expectancy of the Participant and the Participant's
designated beneficiary, and the life expectancy of the Participant's
designated beneficiary shall be computed by use of the return multiples
contained in Section 1.72-9 of the regulations under the Code."
VICE PRESIDENT
SPECIMEN AND SECRETARY SPECIMEN PRESIDENT
PF 17023I
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective July 1, 1986, or your Participation Date, whichever is the later, we
have amended your Certificate issued under Group Annuity Contract No. 11929CI as
follows:
1. With respect to PART I -- DEFINITIONS, the following section is added:
SECTION 1.14C PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means
an annuity not involving life contingencies issued by Equitable which does
not permit any prepayment of the unpaid principal.
2. With respect to SECTION 1.18 CASH VALUE, the following text replaces the
paragraphs under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
means an amount equal to the Annuity Values of such Accounts after the
earliest of the following occurrences:
(i) The later of (a) the completion of five Participation Years with respect
to such Participant and (b) the Participant's attainment of age 59 years and
6 months, or (ii) the completion of twelve Participation Years with respect
to such Participant, or (iii) the Participant's attainment of age 55, the
completion of five Participation Years with respect to such Participant and
the receipt by Equitable of a properly completed settlement election form in
order to apply the Annuity Values to purchase an Eligible Annuity Certain,
defined in Section 1.14B, or (iv) the completion of three Participation Years
with respect to such Participant and the receipt by Equitable of a properly
completed settlement election from in order to apply the Annuity Values to
purchase a Period Certain Annuity, defined in Section 1.14C, where the
certain period of such Annuity is at least ten years. At all other times, the
sum of the Cash Values of such Accounts equals the sum of the Annuity Values
of such Accounts, less a withdrawal charge.
3. With respect to SECTION 2.07A PARTIAL WITHDRAWAL CHARGES, the following
paragraph replaces the paragraph under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, Equitable will withdraw from the Stock Account, Balanced
Account, Aggressive Stock Account, Money Market Account and Guaranteed
Interest Account an amount equal to the lesser of (a) the full amount of
partial withdrawal requested or (b) the sum of the Annuity Values of such
Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The later of (a) the completion of
five Participation Years with respect to such Participant and (b) such
Participant's attainment of age 59 years and 6 months, or (ii) the completion
of twelve Participation Years with respect to such Participant, or (iii) the
Participant's attainment of age 55, the completion of five Participation
years with respect to such Participant and the receipt by Equitable of a
properly completed settlement election form in order to apply the Annuity
Values to purchase an Eligible Annuity Certain, defined in Section 1.14B, or
(iv) the completion of three Participation Years with respect to such
Participant and the receipt by Equitable of a properly completed settlement
election form in order to apply the annuity Values to purchase a Period
Certain Annuity, defined in Section 1.14C, where the certain period of such
Annuity is at least ten years. At all other times, the sum of the Cash Values
of such Accounts equals the sum of the Annuity Values of such Accounts, less
a withdrawal charge.
VICE PRESIDENT
SPECIMEN AND SECRETARY SPECIMEN PRESIDENT
PF 17034I
<PAGE>
[LOGO]
The Equitable Life Assurance Society of The United States
1285 Avenue of the Americas, New York, New York 10019
EQUI-PENSION-GV CONTRACT
GROUP ANNUITY CONTRACT NO. 11930 CT
CONTRACT HOLDER: UNITED STATES TRUST COMPANY OF NEW YORK
CONTRACT CHANGE DATE: DECEMBER 31, 1984
The Initial Guaranteed Interest Rate is 10% and is effective until December 31,
1980. The Guaranteed Interest Rate after December 31, 1980 for a Class of
Participants will be established before the beginning of each calendar year, but
will not be less than the Minimum Guaranteed Interest Rate for such year and
Class of Participants.
This contract ("the Contract") is issued in consideration of the payment to
Equitable of the contributions made under the Contract.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participants is entitled
under the Contract.
The provisions on the following pages are part of the Contract.
FOR THE CONTRACT HOLDER: FOR THE EQUITABLE:
By /s/ [Signature Unreadable] By /s/ Coy Eklund
............................... ..................................
President
Title Senior Vice President By /s/ Rodney L. Enochs
............................... ..................................
Vice President and Secretary
Dated 3/7/80 Date of Issue March 7, 1980
............................... .......................
At New York, New York
..................................
(Head Office)
No. 11930 T PARTICIPATING
<PAGE>
This page 2 reserved for information
in connection with the issuance
of certificates under this Contract.
Page 2
<PAGE>
This page 3 reserved for information
in connection with the issuance
of certificates under this Contract.
Page 3
<PAGE>
PART 1 - DEFINITIONS
SECTION 1.01 EMPLOYER
The term "Employer" means (i) an educational organization employing a regular
faculty which is a State, a political division of a State, or an agency or
instrumentality of any one or more of the foregoing (within the meaning of
Section 170(b)(1)(A)(ii) of the Code) which has entered into Agreements with its
employees, and (ii) an organization described in Section 501(c)(3) of the Code
which is exempt from Federal income tax under Section 501(c) of the Code which
has either entered into Agreements with its employees or has adopted a Plan.
SECTION 1.02 A AGREEMENT
The term "Agreement" means an agreement between an Employer and an employee of
the Employer, within the meaning of Section 1.403(b) - 1(b)(3) of the Federal
income tax regulations, under which the employee agrees to accept a reduction in
salary or to forego an increase in salary and to have such amounts applied under
the Contract for the employee's behalf.
SECTION 1.02 B PLAN
The term "Plan" means a defined contribution pension plan established by an
Employer described in clause (ii) of Section 1.01 which has been determined by
the Internal Revenue Service to meet the requirements for qualification under
Section 401(a) of the Code and which permits or requires amounts contributed
thereunder to be applied under the Contract on behalf of employees covered under
the Plan.
SECTION 1.03 ANNUITY
The term "Annuity" means an annuity purchased in accordance with the terms of
the Agreement or the Plan to the extent the Agreement and the annuity purchased
pursuant thereto meet the requirements of Section 403(b) of the Code or the Plan
meets the requirements of Section 401(a) of the Code, whichever is applicable.
SECTION 1.04 ANNUITY BENEFIT
The term "Annuity Benefit" means a benefit payable by Equitable pursuant to
Section 3.03 of the Contract.
SECTION 1.05 PARTICIPANT
The term "Participant" means a person who has been enrolled by Equitable under
the Contract and for whom the Employer has purchased an Annuity under the
Contract. A person shall become enrolled under the Contract upon receipt by
Equitable of an enrollment form made available by Equitable and completed in a
manner satisfactory to Equitable. An Annuity is purchased for a person enrolled
under the Contract upon receipt by Equitable of an initial Contribution by the
Employer.
SECTION 1.06 CONTRIBUTION
The term "Contribution" means a payment made to Equitable for a Participant with
respect to an Annuity purchased for such Participant under the Contract.
Equitable is under no obligation to accept any Contribution less than $20.00.
SECTION 1.07 PARTICIPATION DATE
The term "Participation Date" with respect to a Participant means the date as of
which Equitable has enrolled such Participant under the terms of the Contract.
SECTION 1.08 PARTICIPATION YEAR
The term "Participation Year" with respect to a Participant means the twelve
month period beginning on (i) the Participation Date, and (ii) each anniversary
thereof, unless otherwise agreed to in writing by Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS
Except as provided in Section 1.10, the term "Class of Participants" refers to
all Participants whose Participation Date is in the same calendar year.
SECTION 1.10 GUARANTEED INTEREST RATE
For each Guaranteed Interest Account, the term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in such
Account. Interest accrues daily. The Guaranteed Interest Rate will never be less
than 3% per annum.
Equitable will from time to time establish and make available for new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new Class of Participants will be established effective with the
effective date of the occurance of (i), (ii) or (iii) above or any combination
thereof.
For the calendar year next succeeding the end of the period for which an
established Initial Guaranteed Interest Rate is effective and for each
subsequent calendar year thereafter, Equitable will determine for each
established Class of Participants before the beginning of such calendar year a
Yearly Guaranteed Interest Rate for such Class, which Yearly Guaranteed In-
No. 11930 T Page 4
<PAGE>
DEFINITIONS (continued)
terest Rate will not be lower than the effective Minimum Guaranteed Interest
Rate applicable for such Class for such year. For any established Class of
Participants, Equitable reserves the right to change the Minimum Guaranteed
Interest Rate and the applicable period therefor, provided that any such Minimum
Guaranteed Interest Rate will not be lower than the Minimum Guaranteed Interest
Rate that would have been in effect in the absence of such change. Equitable
will notify each Participant in a Class in writing of the Yearly Guaranteed
Interest Rate or of any change in the Minimum Guaranteed Interest Rate at least
15 days prior to its effective date.
SECTION 1.11 RETIREMENT DATE
The term "Retirement Date" means the date on which the Participant is to attain
the retirement age specified in the Participant's enrollment form. Before the
Retirement Date the Participant may elect to change the Retirement Date to
another Retirement Date, which may be any date after the filing of the election
(other than 29th, 30th, or 31st day of any month). No Retirement Date shall be
earlier than the date of attainment of age 55 years. Any election for such
change must be made in writing by the Participant and shall not take effect
until received by Equitable at its Home Office.
SECTION 1.12 NORMAL FORM
The "Normal Form" of an Annuity Benefit under the Contract means (i) if the
Participant has a living spouse at the Retirement Date, the Fixed Annuity
Benefit payable on the Joint and Survivor Life Annuity Form with such spouse as
the contingent annuitant (100% continuation), and (ii) if the Participant does
not have a living spouse at the Retirement Date, the Fixed Annuity benefit
payable on the Life Annuity Benefit payable on the Life Annuity Form.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM
The term "Joint and Survivor Life Annuity Form" means an annuity providing
monthly payments while either of two persons upon whose lives such payments
depend is living. The monthly amount to be continued when only one of the
persons is living will be equal to a percentage of the monthly amount that was
paid while both were living. This percentage may be 50% or any higher percentage
up to and including 100% as elected by the Participant. The payments commence on
the date as of which the Joint and Survivor Life Annuity Form is purchased and
terminate with the last payment due before the death of the survivor.
SECTION 1.14 LIFE ANNUITY FORM
The term "Life Annuity Form" means an annuity providing fixed monthly payments
during the lifetime of the person upon whose life such payments depend. The
payments commence on the date as of which the Life Annuity Form is purchased and
terminate with the last payment due before the death of such person.
SECTION 1.15 ANNUITY VALUE
The term "Annuity Value" with respect to a Participant's Guaranteed Interest
Account means the amount in such Account pursuant to Section 2.02.
SECTION 1.16 CASH VALUE
With respect to a Participant for whom no cash value(s) of existing contract(s)
issued by Equitable is (are) transferred to the Contract pursuant to Section
2.01, the term "Cash Value" with respect to such Participant's Guaranteed
Interest Account means an amount equal to the Annuity Value after either (i) the
later of (a) the completion of five Participation Years with respect to such
Participant and (b) the Participant's attainment of age 59 years and six months,
or (ii), the Participant's attainment of age 70 years and six months. Prior to
such time, the Cash Value of such Participant's Guaranteed Interest Account will
equal the greater of (a) 94% of the Annuity Value of such Account and (b) the
Annuity Value of such Account minus an amount equal to the excess, if any, of
(i) 9% of the total Contributions made on behalf of such Participant during the
current Participation Year and the preceding nine completed Participation Years
over (ii) the cumulative total of any withdrawal charges made pursuant to
Section 2.05.
With respect to a Participant for whom cash value(s) of existing contract(s)
issued by Equitable is (are) transferred to the Contract pursuant to Section
2.01, the term "Cash Value" with respect to such Participant's Guaranteed
Interest Account means an amount equal to the Annuity Value after such
Participant attains age 59 years and six months. Prior to such time, the Cash
Value of such Participant's Guaranteed Interest Account will equal the Annuity
Value of such Account minus an amount equal to the lesser of (a) and (b) where:
(a) is the sum of: (1) 2% of the excess, if any, of (i) the first $10,000 of
Separate Account Transfers over (ii) the cumulative total of any previous
withdrawals made pursuant to subsection (a) of the third paragraph of Section
2.05 and (2) 6% of the excess, if any, of (i) the Annuity Value over
No. 11930 T Page 5
<PAGE>
DEFINITIONS (continued)
(ii) the total amount of Separate Account Transfers minus the cumulative
total of any withdrawals made pursuant to Section 2.05 (but such amount
shall not be less than zero).
(b) is the excess, if any if of: (1) the sum of (i) 2% of the first $10,000 of
Separate Account Transfers made during the current Participation Year and
the preceding nine Participation Years and (ii) 9% of all other
Contributions (excluding Separate Account Transfers) made on behalf of the
Participant during the current Participation Year and the preceding nine
completed Participation Years over (2) the cumulative total of any
withdrawal charges made pursuant to Section 2.05.
SECTION 1.17 CODE
The term "Code" means the Internal Revenue Code of 1954, as now or hereafter
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.18 SEPARATE ACCOUNT TRANSFERS
The term "Separate Account Transfers" with respect to a Participant means the
amount of cash value(s) transferred to the Contract from separate investment
account(s) maintained by Equitable, pursuant to Section 2.01.
PART II - PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS
The Employer is to make Contributions from time to time on such dates and in
such amounts as determined by the Employer pursuant to the terms of the Plan or,
if the Employer has no Plan, as determined by the Employer at its sole
discretion. The Employer is to specify the Participant with respect to whom each
such Contribution is being made.
Each Contribution received by Equitable with respect to a Participant will,
before its allocation under the Contract, be reduced by the amount of any
applicable taxes, as determined by Equitable, and by the amount of any
applicable deduction in accordance with Section 2.08.
A Participant may, with Equitable's agreement, transfer to the Contract any
amount held with respect to such Participant under a contract meeting the
requirements of Section 403(b) of the Code or under a Plan of an Employer
described in clause (ii) of Section 1.01 ("Transferred Funds"). Any Transferred
Funds from a contract not issued by Equitable will, before allocation under the
Contract, be reduced by the amount of any applicable taxes, as determined by
Equitable.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
SECTION 2.02 GUARANTEED INTEREST ACCOUNT
Equitable maintains a Guaranteed Interest Account under the Contract for each
Participant with respect to whom Contributions are made. Any amount allocated to
the Guaranteed Interest Account becomes part of the general assets of Equitable,
which support the guarantees of the Contract and other contracts.
The amount in a Guaranteed Interest Account at any time is equal to the sum of
all amounts that have been allocated to such Guaranteed Interest Account
pursuant to Section 2.01 and Section 2.03 plus the amount of any interest
accrued but not allocated, less the sum of all amounts that have been withdrawn
pursuant to Section 2.05 and Section 2.06 from such Account and less the sum of
any annual administrative charges accrued but not made. Equitable guarantees
that the amount in a Guaranteed Interest Account at any time before the
Retirement Date will not be less than the sum of all amounts allocated to such
Account pursuant to Section 2.01 and less the sum of all amounts that have been
withdrawn from such Account pursuant to Section 2.05, all accumulated at 3%
interest, compounded annually. In any Participation Year in which no
Contribution is allocated to the Guaranteed Interest Account, the amount in such
Account at the end of the Participation Year shall not be less than the amount
in such Account at the beginning of the Participation Year
No. 11930 T Page 6
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
less the sum of all amounts withdrawn from such Account pursuant to Section
2.05, all accumulated at 3% interest, compounded annually.
A Guaranteed Interest Account for a Participant terminates on the earliest of
(i) the Retirement Date, (ii) the death of the Participant, and (iii)
termination of participation pursuant to Section 2.04.
SECTION 2.03 ALLOCATION TO ACCOUNT
Each Contribution made with respect to a Participant pursuant to Section 2.01,
after deduction for any applicable taxes, will be allocated, as of the date by
which Equitable has received such Contribution, to the Guaranteed Interest
Account.
Interest is allocated to the Guaranteed Interest Account at the end of each
Participation Year, at the time of withdrawal pursuant to Sections 2.05 and
2.07, at the time of application of amounts in the Guaranteed Interest Account
to provide Annuity Benefits, and upon termination of participation pursuant to
Section 2.04.
SECTION 2.04 TERMINATION OF PARTICIPATION
Subject to any applicable restrictions under the terms of the Agreements or the
Plan, whichever is applicable, on or before a Participant's Retirement Date,
such Participant may elect by written notice to terminate participation under
the Contract. Upon receipt of such notice, Equitable will determine the Cash
Value, as of the date Equitable received such notice, of the Guaranteed Interest
Account maintained for such Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Guaranteed Interest Account, pay
such Annuity Value and terminate such Participant's participation under the
Contract. This right may be exercised with respect to the Participant only if
both (i) no Contributions have been made under the Contract during the last
three completed Participation Years, and (ii) such Annuity Value is $500 or
less. Equitable reserves the right to terminate a Participant's participation
under the Contract if at least 120 days have elapsed since the issue date shown
on the certificate issued to such Participant under the Contract and no
Contributions have been made under the Contract with respect to such
Participant.
Upon payment of such Cash Value or Annuity Value, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Value or Annuity Value arose.
SECTION 2.05 PARTIAL WITHDRAWALS
Subject to any applicable restrictions under the terms of the Agreements or the
Plan, whichever is applicable, a Participant may elect by written notice to
Equitable to make a partial withdrawal from the Guaranteed Interest Account
maintained for such Participant before such Participant's Retirement Date.
With respect to partial withdrawals requested by a Participant for whom no cash
value(s) of existing contract(s) issued by Equitable is (are) transferred to the
Contract, Equitable will withdraw from such Account an amount equal to the
lesser of (a) the full amount of partial withdrawal requested or (b) the Annuity
Value of such Account, provided the request for partial withdrawal is made after
either (i) the later of (a) the completion of five Participation Years with
respect to such Participant and (b) such Participant's attainment of age 59
years and six months, or (ii) such Participant's attainment of age 70 years and
six months. If a partial withdrawal with respect to such Participant is made
prior to such time, Equitable will withdraw from such Account an amount equal to
the amount of partial withdrawal requested plus a withdrawal charge. Such
withdrawal charge will equal the lesser of (a) 6% of the total amount to be
withdrawn from the Account pursuant to this Section (including such charge) and
(b) the excess, if any, of (i) 9% of the total Contributions made on behalf of
such Participant during the current Participation Year and the preceding nine
completed Participation Years over (ii) the cumulative total of any prior
withdrawal charges made pursuant to this Section.
With respect to partial withdrawals requested by a Participant for whom cash
value(s) of existing contract(s) issued by Equitable is (are) transferred to the
Contract pursuant to Section 2.01, Equitable will withdraw from such Account an
amount equal to the lesser of (a) the full amount of partial withdrawal
requested or (b) the Annuity Value of such Account, provided the request for
partial withdrawal is made after such Participant's attainment of age 59 years
and six months. If a partial withdrawal with respect to
No. 11930 T Page 7
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
such Participant is made prior to such time, Equitable will withdraw from such
Account an amount equal to the amount of partial withdrawal requested plus a
withdrawal charge. Such withdrawal charge will be an amount equal to the sum of
the charges described in subsections (a) and (b) below; provided, however, that
in no event will such withdrawal charge exceed an amount described in subsection
(c) below:
(a) With respect to any withdrawal made up to the excess, if any, of (1) the
cumulative total of all Separate Account Transfers made on the
Participant's behalf over (2) the cumulative total of prior withdrawals
made to which the withdrawal charge described in the subsection was
applied, an amount equal to the lesser of (i) 2% of the total amount to be
withdrawn pursuant to this subsection (including such charge) and (ii) $200
minus the cumulative total of any prior withdrawal charges made pursuant to
this subsection.
(b) With respect to any withdrawal made to which the withdrawal charge
described in subsection (a) does not apply, 6% of such amount to be
withdrawn (including such charge).
(c) is the excess, if any, of (1) the sum of (i) 2% of the first $10,000 of
Separate Account Transfers made during the current Participation Year and
the preceding nine Participation Years and (ii) 9% of all other
Contributions (excluding Separate Account Transfers) made on behalf of the
Participant during the current Participation Year and the preceding nine
completed Participation Years over (2) the cumulative total of any prior
withdrawal charges made pursuant to this Section.
Upon withdrawal pursuant to either of the preceding two paragraphs, Equitable
will pay the lesser of the Cash Value of such Account or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by such Participant.
Upon any payment to a Participant pursuant to this Section, Equitable will be
released from any and all liability for payments with respect to the
Contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to this Section may be deferred by
Equitable in accordance with the provisions of Section 4.08.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300. If a withdrawal from the Account made pursuant to this
Section would result in an Annuity Value of less than $200, Equitable will
withdraw the Annuity Value of the Account, pay the Cash Value of the Account to
the Participant, and will terminate such Participant's participation under the
Contract.
SECTION 2.06 ANNUAL ADMINSTRATIVE CHARGE
As of the last day of each Participation Year before a Participant's Retirement
Date, Equitable will withdraw from the Guaranteed Interest Account maintained
under the Contract, as to the Contributions remitted with respect to such
Participant, an annual administrative charge equal to the lesser of $30 or 2% of
the sum of (i) the Annuity Value of the Guaranteed Interest Account at the end
of the Participation Year and (ii) any withdrawals made from such Account
pursuant to Section 2.05 during that Participation Year.
As of Participant's Retirement Date and before application of the Annuity Value
of such Participant's Account pursuant to Section 3.02, or upon termination of
such Account pursuant to Section 2.04 or Section 2.07 during a Participation
Year, Equitable will withdraw the administrative charge described in this
Section for the applicable part of that Participation Year.
SECTION 2.07 DEATH BENEFIT
If the Employer reports to Equitable, or if Equitable otherwise ascertains, that
a Participant has died while an Account for such Participant is maintained under
the Contract and before such Participant's Retirement Date, Equitable, upon
receipt of due proof of such death, will pay in a single sum to the beneficiary
designated by such Participant to receive such payment the amount of death
benefit payable with respect to such Participant. The amount of the death
benefit with respect to a Participant at any time prior to the Retirement Date
is equal to the greater of (i) the Annuity Value of the Guaranteed Interest
Account maintained under the Contract for such Participant or (ii) the minimum
death benefit with respect to such Participant. Such minimum death benefit is
the sum of all Contributions made with respect to such Participant pursuant to
Section 2.01 (before reduction pursuant to said Section) less an adjustment for
any withdrawals made pursuant to Section 2.05 from the Account maintained under
the Contract for such Participant. Any such withdrawal will reduce the minimum
death benefit (as adjusted by any previous such withdrawal) by an amount which
is in the same
No. 11930 T Page 8
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
proportion as the amount being withdrawn is to the Annuity Value then in the
Guaranteed Interest Account maintained under the Contract for such Participant.
If, in accordance with the provisions of Section 2.01, the cash value of an
Annuity contract issued by Equitable, which provides for death benefit before
retirement equal to the greater of the contract cash value or an alternative
amount based on premiums paid or contributions made under the Annuity contract,
is transferred to the Contract, such alternative amount as of the date of
transfer will be included in the "sum of all Contributions" in lieu of the
amount of cash value transferred, for purposes of the death benefit under the
Contract.
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefor, be withdrawn from the Guaranteed
Interest Account maintained with respect to such Participant under the Contract.
Upon such payment, Equitable will be released from any and all liability for
payments with respect to the Contributions from which the Annuity Value arose.
SECTION 2.08 CHANGE OF DEDUCTIONS FOR NEW PARTICIPANTS
Equitable reserves the right to make deductions to the extent permitted by
applicable law from Contributions made on behalf of new Participants at any time
on or after the Contract Change Date, by at least 90 days advance written notice
to the Contract Holder and by amendment to the Contract. Equitable will
thereupon established a new Contract Change Date which shall be at least 5 years
later.
Equitable may lower the amount of the administrative charge described in Section
2.06 for new Participants at any time, by at least 15 days advance written
notice to the Contract Holder.
SECTION 2.09 CHANGE OF DEDUCTIONS AND CHARGES FOR EXISTING PARTICIPANTS
Equitable may lower the amount of the administrative charge described in Section
2.06 for existing Participants at any time, by at least 15 days advance written
notice to the Contract Holder and to such Participants.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT
The term "Fixed Annuity Benefit" means an Annuity Benefit under which the
monthly payments with respect to a payee are payable in specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS
As of a Participant's Retirement Date, provided such Participant is then living,
the Annuity Value of such Participant's Guaranteed Interest Account shall be
applied to provide the Normal Form of Annuity Benefit, unless such Participant
elects (i) to receive the Cash Value of such Account in a single sum or (ii) to
supply such Annuity Value or Cash Value, whichever is applicable pursuant to the
first paragraph of Section 3.03, to provide an Annuity Benefit on any other
annuity form offered by Equitable, as elected by the Participant, subject to
Equitable's rules then in effect and any applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.04 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Value of such Participant's Guaranteed
Interest Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Section 3.03 and
3.04. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form.
No. 11930 T Page 9
<PAGE>
ANNUITY BENEFITS (continued)
SECTION 3.03 AMOUNT OF ANNUITY BENEFITS
If a Participant elects pursuant to the first paragraph and third paragraph of
Section 3.02 to receive an Annuity Benefit in lieu of the Cash Value of the
Guaranteed Interest Account, the amount applied to provide the Annuity Benefit
will be (i) the Annuity Value of such Account if the payments under the annuity
form elected are contingent upon the survival of a person, or (ii) the Cash
Value of such Account if the payments under the annuity form elected are not
contingent upon the survival of a person.
The amount applied to provide an Annuity Benefit shall be reduced by the amount,
as determined by Equitable, of any applicable tax on annuity considerations. If
such amount if applied on or after the completion of five Participation Years
with respect to such Participant, or if such amount is applied on behalf of a
Participant for whom cash value(s) of existing contract(s) issued by Equitable
was(were) transferred to the Contract pursuant to Section 2.01, the balance
shall purchase the Annuity Benefit on the basis of either (i) the Table of
Guaranteed Annuity Payments shown below or (ii) Equitable's current individual
annuity rates for payment of proceeds, whichever rates would provide a larger
benefit with respect to the payee. If such current individual annuity rates are
used, such Participant's certificate will be replaced by an Equitable
supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a Participant for whom no
cash value(s) of existing contract(s) issued by Equitable was(were) transferred
to the Contract, the balance, after any applicable tax on annuity consideration,
shall purchase the Annuity Benefit on the basis of either (i) the Table of
Guaranteed Annuity Payments shown below or (ii) Equitable's current individual
annuity rates applicable to funds which derive from sources outside Equitable,
whichever rates would provide a larger benefit with respect to the payee. If
such current individual annuity rates are used, such Participant's certificate
will be replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Guaranteed Interest Account
maintained for such Participant shall terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form, are based on 3 1/4% interest and the 1971 ELAS Mortality Table.
Equitable may change the monthly income amounts contained in the Tables of
Guaranteed Annuity Payments and the bases for determining such amounts, for new
Participants, by at least 90 days advance notice to the Contract Holder and by
an amendment to the Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/4% interest and the 1971 ELAS Mortality Table.
SECTION 3.04 PAYMENT OF ANNUITY BENEFITS
Evidence of each payee's survival must be furnished to Equitable either by
personal endorsement of the check drawn for payment or by other means
satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
No. 11930 T Page 10
<PAGE>
ANNUITY BENEFITS (continued)
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Upon election by a Participant pursuant to Section 3.02 of annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.02.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM - 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
- ------------------------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.58 4.64 4.70 4.76 4.82 4.88 4.94 5.00 5.05 5.11
61 4.55 4.62 4.68 4.74 4.81 4.87 4.93 5.00 5.06 5.12 5.18
62 4.58 4.65 4.72 4.78 4.85 4.92 4.99 5.05 5.12 5.19 5.25
63 4.61 4.68 4.75 4.82 4.89 4.97 5.04 5.11 5.18 5.25 5.32
64 4.64 4.71 4.79 4.86 4.94 5.01 5.09 5.17 5.24 5.32 5.40
65 4.67 4.74 4.82 4.90 4.98 5.06 5.14 5.22 5.30 5.38 5.47
66 4.69 4.77 4.85 4.93 5.02 5.10 5.18 5.27 5.35 5.44 5.53
67 4.72 4.80 4.88 4.97 5.05 5.14 5.23 5.31 5.40 5.50 5.59
68 4.74 4.82 4.91 5.00 5.09 5.18 5.27 5.36 5.45 5.55 5.65
69 4.76 4.85 4.94 5.03 5.12 5.22 5.31 5.41 5.50 5.60 5.71
70 4.78 4.87 4.96 5.06 5.16 5.26 5.36 5.45 5.56 5.66 5.76
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
FIXED ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
- --------------------------------------------------------------------------------
AGE MALES FEMALES
- --------------------------------------------------------------------------------
60 5.88 4.99
61 6.04 5.11
62 6.21 5.24
63 6.38 5.38
64 6.57 5.53
65 6.77 5.68
66 6.98 5.84
67 7.19 6.01
68 7.42 6.20
69 7.67 6.39
70 7.93 6.61
- --------------------------------------------------------------------------------
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a communication right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
No. 11930 T Page 11
<PAGE>
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT
The Contract constitutes the entire Contract between the parties and the
provisions of the Contract alone will govern with respect to the rights and
obligations of Equitable. The provisions of the Contract will be applied
separately with respect to each Participant. Nothing in the enrollment form
referred to in Section 1.05, the Plan or trust agreement referred to in Section
4.01 nor any modification, amendment, or supplement to any such documents will
in any way be construed to enlarge, change, vary or in any other way affect the
obligations of Equitable as expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE
Equitable reserves the right to amend the Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
shall include, but not be limited to, the right to conform the Contract and any
certificate to reflect changes in the Code, or in regulations or published
filings of the Internal Revenue Service, so that each such certificate will
continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY
The entire interest of any Participant under the Contract is nonforfeitable.
No interest of a Participant under the Contract may be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law, no such amount will in any way
be subject to any claim against such payee.
SECTION 4.04 PARTICIPATION IN SURPLUS
The Contract and all other contracts in the same class of contracts shall be
combined for the purpose of ascertaining the annual surplus of Equitable to be
apportioned to said contracts as a dividend, and the portion of any such
dividend that is to be allocated to the Contract shall be determined by
Equitable. The participation of this class of contracts in annual surplus is,
however, expected to be minimal. Any amount so allocated to the Contract shall
be payable as of January 1 of the calendar year in which a dividend is
apportioned and will be payable in cash and shall be equitably allocated by
Equitable to the Guaranteed Interest Accounts maintained hereunder for
Participants.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.05 BENEFICIARY
Each Participant, as of such Participant's Participation Date is to provide
Equitable with an initial designation of the beneficiary entitled to receive any
death benefit payable with respect to such Participant pursuant to Section 2.07.
The Participant may change such designation from time to time during such
Participant's lifetime and while Accounts for such Participants are being
maintained hereunder. Any such designation or change will be made by written
notice in a form satisfactory to Equitable. A change will, upon receipt at a
designated Equitable Office, take effect as of the time the written notice was
signed, whether or not the Participant is living on the date of receipt, but
without further liability as to any payment or other settlement made by
Equitable before receipt of such change.
Unless otherwise specified in the designation, if a Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant, and if more than one survive they
will share equally.
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.07 for which there is no designated beneficiary living at the death of
the
No. 11930 T Page 12
<PAGE>
GENERAL PROVISIONS (continued)
Participant will be payable in a single sum to the children of the Participant
who survive the Participant, in equal shares, or should none survive, then to
the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.06 DISQUALIFICATION
In the event that an annuity purchased hereunder with respect to a Participant
fails to qualify as an Annuity as described in Section 1.03, Equitable shall
have the right, upon receiving notice of such fact before the Retirement Date,
to terminate participation with respect to such Participant under the Contract
and pay to such Participant the amount in the Account maintained with respect to
such Participant less a deduction for the appropriate part attributable to such
Participant of any Federal income tax payable by Equitable which would not have
been payable if such Participant had an Annuity under the Contract.
SECTION 4.07 FUTURE PARTICIPANTS
Equitable reserves the right at its sole discretion to curtail or prohibit
further enrollment as Participants under the Contract of any individuals who are
not currently participating under the Contract as of such date of curtailment or
prohibition.
SECTION 4.08 DEFERMENT
Payments by Equitable from the Participant's Guaranteed Interest Account
pursuant to the provisions of Section 2.04, Section 2.05 and Section 2.07, or
any commuted payments arising from a Fixed Annuity Benefit pursuant to Section
3.04, may be deferred for up to six months after receipt of a written request
for such surrender or withdrawal, or receipt of due proof of death of the
Participant, respectively, or receipt of due documentation for such commutation
payment pursuant to Section 3.04. Interest at the current Guaranteed Interest
Rate for such Participant's Guaranteed Interest Account will be allowed on any
such payment deferred for 30 days or more.
SECTION 4.09 ANNUAL NOTICE
At the end of each Participation Year up to and including the Retirement Date,
Equitable will furnish the Participant with a notice showing as of a specified
recent date (1) the Annuity Value of the Guaranteed Interest Account, (2) the
Cash Value of the Guaranteed Interest Account, and (3) the amount of death
benefit payable with respect to the Participant.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY
The sole responsibility of the Contract Holder is to serve as party to the
Contract. The Contract Holder will have no responsibility for the administration
of any Plan or Agreement, for payments to the Guaranteed Interest Account, or
any payments or other distributions hereunder. Equitable will deal with the
Contract Holder in accordance with the terms and conditions of the trust
agreement pursuant to which the Contract Holder agreed to act as such and the
Contract and in such manner as the Contract Holder and Equitable may agree,
without the consent of any other person. Any Employer making Contributions under
the Contract shall be deemed to have adopted and accepted the trust agreement as
part of the Plan or Agreements with respect to which such Contributions are
made.
SECTION 4.11 AGE AND SEX
If the Annuitant's age or sex has been misstated, any benefits will be those
which would have been purchased at the correct age and sex. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
No. 11930 T Page 13
<PAGE>
Attached to and made part of Group Annuity Contract No. 11930CT
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective August 15, 1981, said contract is amended as
follows:
1. Contributions made to the contract, less applicable premium taxes, as
determined by Equitable, may be allocated to the Guaranteed Interest
Account or Stock Account maintained for the Participant, or in part to
both, as directed by the Participant.
2. At the Retirement Date, if the Participant is then living, the amount in
the Guaranteed Interest Account and Stock Account will be applied to
provide the Participant with an Annuity Benefit or Cash Value Benefit.
3. ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN A SEPARATE
ACCOUNT MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS
DESCRIBED IN THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED
ANNUITY BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY
VARIABLE ANNUITY BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE
INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT. SUCH VARIABLE ANNUITY
BENEFIT WILL INCREASE IF THE AVERAGE DAILY RATE OF INVESTMENT RETURN IN THE
SEPARATE ACCOUNT IS EQUIVALENT TO MORE THAN 6.75% OR 5.25% ANNUALLY AND
WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR 5.25% ANNUALLY,
DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET INVESTMENT
RETURN REFERRED TO IN SECTION 1.20 IS 5% OR 3-1/2%, RESPECTIVELY. THE DAILY
RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE
AND MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY
DEDUCTIONS TO PROVIDE FOR TAXES.
THIS CONTRACT MAY NOT BE SUITABLE FOR A PARTICIPANT IF THE ONLY
CONTRIBUTION TO BE MADE ON SUCH PARTICIPANT'S BEHALF IS A SUBSTANTIAL
SINGLE SUM CONTRIBUTION.
PF 14102CT PAGE 1
<PAGE>
4. The following provisions are added to your Certificate:
To Part I of your Certificate
SECTION 1.05A EXISTING PARTICIPANT
The term "Existing Participant" means a Participant for whom Cash Values of
existing annuity contracts issued by Equitable is (are) eligible to be
transferred to the Contract pursuant to Section 2.01.
SECTION 1.05B NEW PARTICIPANT
The term "New Participant" means a Participant who is not an Existing
Participant.
SECTION 1.14B ELIGIBLE ANNUITY CERTAIN
The term "Eligible Annuity Certain" means an annuity not involving life
contingencies issued by Equitable which extends beyond the Participant's
attainment of age 59 years and six months and does not permit any prepayment of
the unpaid principal prior to the participant's attainment of age 59 years and
six months.
SECTION 1.19 THE SEPARATE ACCOUNT
The term "Separate Account" means Separate Account A, a separate investment
account maintained by Equitable to which portions of its assets have been
allocated for the Contract and certain other contracts. Equitable reserves the
right to withdraw from the Separate Account and allocate to another separate
account assets determined by Equitable to be associated with the class of
contracts to which the Contract belongs. In any such event, to the extent
practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid lots and
fractions. On and after the date of any such withdrawal the term "Separate
Account" in the Contract shall mean such other separate account to which the
withdrawn assets were allowed.
It is contemplated that investments in the Separate Account will at most times,
consist primarily of common stock and other equity-type investments.
Equitable may, however, at its discretion invest the assets of the Separate
Account in any investment permitted by applicable law. Equitable may rely
conclusively on the opinion of counsel (including attorneys in its employ) as to
what investments it is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate the Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
the Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) run the Separate Account under the direction of a
committee, and to discharge such committee at any time; and (iii) restrict or
eliminate any voting rights of participants or other persons who have voting
rights as to the Separate Account.
Assets of the Separate Account attributable to the Contract shall be subject to
a charge at the rate of 1.75% a year, consisting of .15% for investment
management, .35% for financial accounting, .35% for the annuity rate guarantee
and the minimum death benefit, and .90% for expenses and expense risk. The
charge shall be made in accordance with (c) of the Net Investment Factor
provision in Section 1.20.
The assets of the Separate Account are the property of Equitable; however, the
portion of the assets of the Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising out of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of the Separate Account in excess of such
reserves and contract liabilities to the general account of Equitable.
SECTION 1.20 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such
PF 14102CT PAGE 2
<PAGE>
business day will constitute a Valuation Period. A business day is any day on
which there is a sufficient degree of trading in the portfolio securities of the
Separate Account that the Accumulation Unit Value or Annuity Unit Value might be
materially affected by changes in the value of the portfolio securities in the
Separate Account, as determined by Equitable.
NET INVESTMENT FACTOR: For the Separate Account the Net Investment Factor for a
Valuation Period is (a) divided by (b), minus (c), where:
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment income
and the capital gains, realized or unrealized, credited to the assets of
the Separate Account in the Valuation Period for which the Net Investment
Factor is being determined; minus (3) the capital losses, realized or
unrealized, charged against such assets in such Valuation Period, minus (4)
any amount charged against the Separate Account in such Valuation Period
for taxes or for amounts set aside by Equitable as a reserve for taxes
attributable to the maintenance or operation of the Separate Account;
(b) is the value of the assets in the Separate Account at the close of business
of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial accounting, the annuity rate
guarantee and the minimum death benefit, and expenses and expense risk.
The value of the assets in the Separate Account, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
their fair value, as determined in accordance with accepted accounting practices
and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the value
of the interest of a Participant's Stock Account in the Separate Account on or
before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Value for the
Separate Account has been established at $10.00 as of November 1, 1968. The New
Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from the Separate Account under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value has been established
at $1.00 on November 1, 1968. The New Annuity Unit Value for any subsequent
Valuation Period is the New Annuity Unit Value for the immediately preceding
Valuation Period multiplied by the Adjusted Net Investment Factor for such
subsequent Valuation Period. The Adjusted Net Investment Factor for a Valuation
Period is the Net Investment Factor for such period reduced for each calendar
day in such subsequent Valuation Period by the Net Investment Factor times (i)
.00013366, if the Assumed Base Rate of Net Investment Return is 5%, and (ii)
.00009425, if the Assumed Base Rate of Net Investment Return is 3 1/2%. The
Assumed Base Rate of Net Investment Return shall be 5%, except in states where
the rate is not permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average New Annuity Unit value for a
calendar month is equal to the average of the New Annuity Unit Values for the
Valuation Periods ending in such month.
To Part II of your Certificate
SECTION 2.10 STOCK ACCOUNT
Equitable maintains a Stock Account under the Contract for each Participant with
respect to whom Contributions are made. Any amount allocated to a Stock Account
becomes part of the Separate Account. Any amount withdrawn from a Stock Account
will no longer be part of the Separate Account.
On any date when an amount is allocated to or withdrawn from a Stock Account,
the Stock Ac-
PF 14102CT PAGE 3
<PAGE>
count will be credited or charged, as the case may be, with a number of
Accumulation Units determined by dividing said amount by the New Accumulation
Unit Value for the Separate Account for the Valuation Period which includes that
date. The number of Accumulation Units in a Stock Account on any date is equal
to (i) the sum on any Accumulation Units that have been credited to the Stock
Account minus (ii) the sum of any Accumulation Units that have been charged to
the Stock Account. The amount in a Stock Account on any date is equal to the
product of (i) the number of Accumulation Units in the Stock Account on that
date and (ii) the Accumulation Unit Value for the Separate Account for the
Valuation Period which includes that date.
SECTION 2.11 TRANSFERS BETWEEN ACCOUNTS
At any time before a Participant's Retirement Date, such Participant, upon
written request, may transfer all or a part of the amounts from the Stock
Account maintained for such Participant to the Guaranteed Interest Account
maintained for such Participant, or may transfer all or a part of the amount in
the Guaranteed Interest Account maintained for such Participant to the Stock
Account maintained for such Participant. Such transfers will be made as of the
later of (i) the date specified in such request and (ii) the date Equitable
receives such request, and will be subject to Equitable's rules in effect at the
time of transfer.
To Part III of your Certificate
SECTION 3.05 VARIABLE ANNUITY BENEFIT
The term "Variable Annuity Benefit" means an Annuity Benefit under which the
dollar amount of the monthly payments with respect to a payee may increase or
decrease depending on the investment experience of the Separate Account.
The amount of the first, second, and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to the payee pursuant to Section 3.03. The amount
of the fourth and each subsequent payment under a Variable Annuity Benefit will
be equal to the number of Annuity Units with respect to such benefit, multiplied
by the Average New Annuity Unit Value for the second calendar month immediately
preceding the date of the payment. The fourth and subsequent annuity payments
under a Variable Annuity Benefit will not be increased or decreased in amount
because of mortality or expense experience. The number of Annuity Units with
respect to a benefit is the number determined by dividing the amount of the
first monthly payment under such benefit by the New Annuity Unit Value for the
Valuation Period which includes the due date of the first monthly payment.
5. The following sections of your Certificate are amended or modified as
follows:
A. Section 1.01, EMPLOYER, is amended to read as follows:
SECTION 1.01 EMPLOYER
The term "Employer" means (i) an educational organization employing a
regular faculty which is a State, a political division of a State, or
an agency or instrumentality of any one or more of the foregoing
(within the meaning of Section 170(b)(1)(A)(ii) of the Code), and (ii)
an organization described in Section 501(c)(3) of the Code which is
exempt from Federal income tax under Section 501(c) of the Code.
B. Section 1.02A, AGREEMENT, is amended by the addition of the following:
The term "Agreement' shall also mean any program or arrangement (other
than by use of agreements described above) pursuant to which an
Employer makes contributions to the purchase of an annuity meeting the
requirements of Section 403(b) of the Code.
C. Section 1.15, ANNUITY VALUE, is amended to provide that the "Annuity
Value" with respect to a Participant's Guaranteed Interest Account and
Stock Account shall mean the amounts in such Accounts described in
Section 2.02 and 2.10
D. Section 1.16, CASH VALUE, shall read as follows:
PF 14102CT PAGE 4
<PAGE>
SECTION 1.16 CASH VALUE - NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to a New Participant, the term "Cash
Value" with respect to such Participant's Guaranteed Interest Account and
Stock Account means an amount equal to the Annuity Values of such Account
after the earliest of the following occurrences: (i) The later of (a) the
completion of five Participation Years with respect to such Participant and
(b) the Participant's attainment of age 59 years and six months, or (ii)
the Participant's attainment of age 70 years and six months, or (iii) the
completion of 25 Participation Years with respect to such Participant, or
(iv) if the Participant has attained age 55, completed five Participation
Years, and the Cash Values are to be applied to purchase an Eligible
Annuity Certain defined in Section 1.14B. At other times, the sum of the
Cash Values of such Accounts equals the sum of the Annuity Values of such
Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five
Participation Years with respect to the Participant, the withdrawal charge
equals the lesser of (a) or (b) where:
(a) equals 6% of the sum of the Annuity Values of such Accounts.
(b) is an amount equal to the excess, if any, of (i) 8% of the cumulative
contributions made on behalf of such Participant over (ii) the
cumulative total of any withdrawal charges made pursuant to Sections
2.05 and 2.05A.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five
Participation Years with respect to the Participant, the withdrawal charge
equals the lesser of (a) or (b) where:
(a) equals 6% of the excess of (i) the sum of the Annuity Values of such
Accounts over (ii) the Free Corridor Amount defined in Section 2.05C.
(b) is the excess, if any, of (i) 8% of the total contributions made on
behalf of such Participant during the current Participation Year and
the preceding nine Participation Years over (ii) the cumulative total
of any withdrawal charges made pursuant to Sections 2.05 and 2.05A.
The Cash Value of the Guaranteed Interest Account and the Cash Value of the
Stock Account will be in the same proportion as are the Annuity Values of
such Accounts.
SECTION 1.16B CASH VALUE - EXISTING PARTICPANTS
NO WITHDRAWAL CHARGE: With respect to an Existing Participant, the term
"Cash Value" with respect to such Participant's Guaranteed Interest Account
and Stock Account means an amount equal to the Annuity Values of such
Accounts after the earliest of the following occurrences: (i) The
Participant's attainment of age 59 years and six months, (ii) the
completion of 20 Participation Years with respect to such Participant, or
(iii) if the Participant has Attained age 55 and the Cash Values are to be
applied to purchase an Eligible Annuity Certain defined in Section 1.14B.
At other times, the sum of the Cash Values of such Accounts equals the sum
of the Annuity Values of such Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five
Participation Years with respect to the Participant, the withdrawal charge
equals the sum of the charges described in subsections (a) and (b) below;
provided, however, that such charge does not exceed the amount described in
subsection (c) below where:
(a) is an amount equal to 2% of any Preferred Withdrawable Amounts
(defined in Section 2.05B) that have not previously been withdrawn
pursuant to Section 2.05 and 2.05B.
(b) is an amount equal to 6% of any Regular Withdrawable Amounts (defined
in Sec-
PF 14102CT PAGE 5
<PAGE>
tion 2.05B) that have not previously been withdrawn pursuant to
Section 2.05 and 2.05B.
(c) is an amount equal to the sum of (a) above, and 6% of the excess, if
any, of (i) the sum of the Annuity Values of such Accounts over (ii)
the cumulative total of Equitable Transferred Funds made with respect
to the Participant that have not previously been withdrawn pursuant to
Section 2.05 and 2.05B
WITHDRAWAL CAHRGE AFTER FIVE YEARS: After five Participation Years have
been completed with respect to the Participant, Equitable (i) will first
withdraw, pursuant to Section 2.05B, the Free Corridor Amount defined in
Section 2.05C and (ii) next withdraw the remaining portion of the sum of
the Annuity Values of such Accounts. A withdrawal charge will apply to the
amount in (ii) above, and will equal the sum of the charges described in
subsection (a) and (b) of the preceding subsection; provided, however, that
such charge will not exceed an amount equal to the lesser of the charges
defined in (d) and (e) below:
(d) is an amount equal to the sum of (a) in the preceding subsection, and
6% of the excess, if any, of (i) the sum of the Annuity Values of such
Accounts (after withdrawal of the Free Corridor Amount) over (ii) the
cumulative total of Equitable Transferred Funds made on behalf of the
Participant that have not previously been withdrawn pursuant to
Section 2.05 and 2.05B.
(e) is an amount equal to the excess, if any, of (1) the sum of (i) 2% of
the first $10,000 of Equitable Transferred Funds made during the
current Participation Year and the preceding nine Participation Years
and (ii) 8% of all other contributions (excluding Equitable
Transferred Funds) made on behalf of such Participant during the
current Participation Year and the preceding nine completed
Participation Years over (2) the cumulative total of any withdrawal
charges made pursuant to Sections 2.05 and 2.05B.
The Cash Value of the Guaranteed Interest Account and the Cash Value
of the Stock Account will be in the same proportion as are the Annuity
Values of such Accounts.
E. Section 1.18 SEPARATE ACCOUNT TRANSFERS, shall read as follows:
SECTION 1.18 EQUITABLE TRANSFERRED FUNDS
The term "Equitable Transferred Funds" with respect to a Participant means
the amount of cash value(s) transferred to the Contract from a contract
issued by Equitable, pursuant Section 2.01.
F. The second paragraph of Section 2.02, GUARANTEED INTEREST ACCOUNT, is
amended as follows:
a. References to Section 2.05 are replaced by Sections 2.05, 2.05A and
2.05 B.
b. The amount in the Guaranteed Interest Account at any time includes the
amount transferred into the Account and does not include amounts
withdrawn or transferred out of such Account.
G. The Sections entitled TERMINATION OF PARTICIPATION (20.4), ANNUAL
ADMINISTRATIVE CHARGE (2.06), DEATH BENEFIT (2.07), ELECTION AND
COMMENCEMENT OF ANNUITY PAYMENTS (3.02), and CONTRACT HOLDER RESPONSIBILITY
(4.10) are amended to change the term "Guaranteed Interest Account"
wherever it appears to "Guaranteed Interest Account and Stock Account."
H. Section 2.03, ALLOCATION TO ACCOUNT, shall read as follows:
SECTION 2.03 ALLOCATION TO ACCOUNT
Each Contribution made with respect to a Participant pursuant to Section
2.01, after deduction for any applicable taxes, will be allocated, as of
the date by which Equitable has received both such Contribution and
directions as to its allocation, to the Guaranteed Interest Ac-
PF 14102CT PAGE 6
<PAGE>
count, or Stock Account, or in part to each, at the sole direction of the
Participant as specified to Equitable, provided that the percentage
allocated to each Account is a whole number.
Any amount that a Participant has directed to be transferred to the
Guaranteed Interest Account or the Stock Account pursuant to Section 2.11
will be allocated as of the date of such transfer to the appropriate
Account maintained for such Participant.
Interest is allocated to the Guaranteed Interest Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05, 2.05A, 2.05B and 2.11 at the time of application of amounts
in the Guaranteed Interest Account to provide Annuity Benefits, upon
termination of participation pursuant to Section 2.04, and upon death of
the Participant pursuant to Section 2.07.
I. Section 2.05, PARTIAL WITHDRAWALS, shall read as follows:
SECTION 2.05 PARTIAL WITHDRAWALS
Subject to any applicable restrictions under the terms of the Plan, a
Participant may elect by written notice to Equitable to make a partial
withdrawal from the Stock Account and the Guaranteed Interest Account
maintained for such Participant before such Participant's Retirement Date.
Upon withdrawal pursuant to Section 2.05, 2.05A or 2.05B, Equitable will
pay the lesser of the sum of the Cash Values of such Account or the amount
of partial withdrawal requested to the person entitled to such payment as
designated in writing by such Participant. Unless instructed otherwise, the
amount withdrawn (including the amount of any withdrawal charge) will be
allocated between such Accounts in proportion to the Annuity Value of each
such Account.
Upon any payment to a Participant pursuant to Section 2.05, 2.05A or 2.05B,
Equitable will be released from any and all liability for payments with
respect to the Contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to Section 2.05, 2.05A or 2.05B may be
deferred by Equitable in accordance with the provisions of Section 4.08.
Equitable is under no obligation to process any request for partial
withdrawal of less than $300. If a withdrawal from the Accounts made
pursuant to Sections 2.05, 2.05A or 2.05B would result in total Annuity
Values of less than $200, Equitable will so advise the Participant and
reserves the right to withdraw the Annuity Values of the Guaranteed
Interest Account and Stock Account, pay the Annuity Values of such Accounts
to the Participant, and terminate such Participant's participation under
the Contract. If the Participant enrolled in this Contract on or after the
effective date of this rider, the $200 amount stated above shall be $500.
SECTION 2.05A PARTIAL WITHDRAWALS - NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
New Participant, Equitable will withdraw from the Stock Account and
Guaranteed Interest Account an amount equal to the lesser of (a) the full
amount of partial withdrawal requested or (b) the sum of the Annuity Values
of such Accounts, provided the request for partial withdrawal is made after
the earliest of the following occurrences: (i) The later of (a) the
completion of five Participation Years with respect to such Participant and
(b) such Participant's attainment of age 59 years and six months, or (ii)
such Participant's attainment of age 70 years and six months, or (iii) the
completion of 25 Participation Years with respect to such Participant, or
(iv) if the Participant has attained age 55, has completed five
Participation Years, and the partial withdrawal is to be applied to
purchase an Eligible Annuity Certain defined in Section 1.14B. At other
times, Equitable will withdraw from such Accounts an amount equal to the
amount of partial withdrawal requested plus a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: If the Participant has not
completed five Participation Years under the Con-
PF 14102CT PAGE 7
<PAGE>
tract, such withdrawal charge will equal the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the total amount to be withdrawn from the
Accounts pursuant to this paragraph (including such charge)
(b) is the excess, if any, of (i) 8% of the cumulative total of
Contributions made on behalf of such Participant over (ii) the
cumulative total of any prior withdrawal charges made pursuant to this
Section.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five
Participation Years with respect to the Participant, there will be no
withdrawal charge if the amount of partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.05C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts an
amount equal to the Free Corridor Amount, and (ii) then withdraw an amount
equal to the excess of the amount requested over the Free Corridor Amount,
plus a withdrawal charge. Such withdrawal charge will be equal to the
lesser of (a) or (b) where:
(a) is an amount equal to 6% of the amount withdrawn pursuant to (ii) of
the preceding sentence including such charge, and
(b) is the excess, if any, of (i) 8% of the cumulative total of
contributions made on behalf of such Participant during the current
Participation Year and the nine preceding Participation Years over
(ii) the cumulative total of any prior withdrawal charges made
pursuant to this Section.
SECTION 2.05B PARTIAL WITHDRAWAL - EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by an
Existing Participant, Equitable will withdraw from the Stock Account and
Guaranteed Interest Account an amount equal to the lesser of (a) the full
amount of partial withdrawal requested or (b) the Annuity Values of such
Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The Participant's attainment of
age 59 years and six months, or (ii) the completion of 20 Participation
Years with respect to such Participant, or (iii) if the Participant has
attained age 55 and the partial withdrawal is to be applied to purchase an
Eligible Annuity Certain defined in Section 1.14B. At other times,
Equitable will withdraw from such Accounts an amount equal to the amount of
partial withdrawal requested plus a withdrawal charge.
PREFERRED WITHDRAWABLE AMOUNT: This is an amount equal to the lesser of (a)
the total of Equitable Transferred Funds made on behalf of the Participant
or (b) $10,000.
FREE WITHDRAWABLE AMOUNT: This is an amount equal to the excess, if any, of
(a) the total Equitable Transferred Funds made on behalf of the Participant
over (b) $10,000.
REGULAR WITHDRAWABLE AMOUNT: This is the cumulative total of all
Contributions, other than Equitable Transferred Funds, made on behalf of
the Participant.
ORDER OF WITHDRAWALS: In calculating the withdrawal charge, Equitable will
assume that (a) any Preferred Withdrawable Amounts are first withdrawn, (b)
any Free Withdrawable Amounts are next withdrawn, (c) any Regular
Withdrawable Amounts are next withdrawn, and (d) lastly, any amounts other
than the amounts described in (a), (b), and (c) above are withdrawn.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five
Participation Years with respect to the Participant, the withdrawal charge
equals the sum of the charges described in sub-sections (a), (b), (c) and
(d) below:
PF 14102CT PAGE 8
<PAGE>
(a) With respect to any withdrawals of Preferred Withdrawable Amounts, a
charge of 2% of such withdrawals.
(b) With respect to any withdrawals of Free Withdrawal Amounts, no charge.
(c) With respect to any withdrawals of Regular Withdrawable Amounts, a
charge of 6% of such withdrawals.
(d) With respect to any withdrawals of amounts other than the amounts in
(a), (b) and (c) above, no charge.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five
Participation Years with respect to the Participant, there will be no
withdrawal charge if the amount of partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.05C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (1) first withdraw from such Accounts an
amount equal to the Free Corridor Amount, and (2) then withdraw from such
Accounts an amount equal to the excess of the amount requested over the
Free Corridor Amount, plus a withdrawal charge. Such withdrawal charge will
equal the sum of the charges described in (a), (b), (c), and (d) above;
provided, however, that in no event will such charge exceed an amount equal
to the following: The excess, in any, of (1) the sum of (i) 2% of the first
$10,000 of Equitable Transferred Funds made during the current
Participation Year and the preceding nine Participation Years and (ii) 8%
of all other Contributions (excluding Equitable Transferred Funds) made on
behalf of the Participant during the current Participation Year and the
preceding nine completed Participation Years over (2) the cumulative total
of any prior withdrawal charges made pursuant to this Section.
Whenever an amount is withdrawn from such Accounts that is not greater than
the current Free Corridor Amount, such amount is considered to be (1)
first, a withdrawal of Regular Withdrawable Amounts, (2) next, a withdrawal
of Preferred Withdrawable Amounts, (3) next, a withdrawal of Free
Withdrawable Amounts and (4) lastly, a withdrawal of amounts other than the
amounts in (1), (2), or (3) above. However, no charge will be assessed with
respect to the portion of the withdrawal up to the current Free Corridor
Amount.
SECTION 2.05C FREE CORRIDOR AMOUNT
The term "Free Corridor Amount" with respect to a Participant who has
completed five Participation Years means an amount equal to the excess, if
any, of (i) 10% of the sum of the Annuity Values of the Stock Account and
the Guaranteed Interest Account over (ii) cumulative prior withdrawals made
pursuant to Section 2.05, 2.05A or 2.05B in the current Participation Year
with respect to the Participant.
J. The first paragraph of Section 2.06. ANNUAL ADMINISTRATIVE CHARGE, is
amended by adding the following:
The charge will be allocated between the Stock Account and the Guaranteed
Interest Account in proportion to the Annuity Values of such Accounts at
the end of the Participation Year.
K. Section 2.08, Change of Deductions for New Participants, is deleted as of
August 1, 1981 and Section 2.09, Change of Deductions and Charges for
Existing Participants, shall not apply to Participants enrolled on or after
August 1, 1981.
L. With respect to Section 3.03, AMOUNT OF ANNUITY BENEFITS,
a. Wherever the term "Guaranteed Interest Account" appears, it shall be
changed to "Guaranteed Interest and Stock Account."
b. The second and third sentences of paragraph 2 shall apply to a
Participant who has completed five Participation Years and to an
Existing Participant (as defined in Part I of this rider).
c. Paragraph 3 shall apply to a New Participant (as defined in Part I of
this rider)
PF 14102CT PAGE 9
<PAGE>
before the completion of five Participation Years.
d. The last two paragraphs have been amended to provide that any Variable
Annuity Benefit shall be calculated by Equitable on 1979 ELAS
Mortality and an Assumed Base Rate of Net Investment Income Return of
5% or 3 1/2%, whichever applies pursuant to Section 1.20.
M. Section 3.04, PAYMENT OF ANNUITY PAYMENTS, is amended by the addition of
the following:
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVIOR
LIFE ANNUITY FORM - 100% CONTINUATION-ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
-----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.31 4.35 4.39 4.43 4.47 4.51 4.55 4.59 4.63 4.67 4.71
61 4.35 4.39 4.43 4.48 4.52 4.56 4.61 4.65 4.69 4.73 4.78
62 4.39 4.43 4.48 4.52 4.57 4.61 4.66 4.71 4.75 4.80 4.85
63 4.42 4.47 4.52 4.57 4.62 4.67 4.72 4.77 4.82 4.87 4.92
64 4.46 4.51 4.57 4.62 4.67 4.72 4.77 4.83 4.88 4.94 4.99
65 4.50 4.56 4.61 4.66 4.72 4.78 4.83 4.89 4.95 5.01 5.07
66 4.54 4.60 4.65 4.71 4.77 4.83 4.89 4.95 5.01 5.08 5.14
67 4.58 4.64 4.70 4.76 4.82 4.88 4.95 5.01 5.08 5.15 5.22
68 4.62 4.68 4.77 4.81 4.87 4.95 5.01 5.08 5.15 5.22 5.29
69 4.65 4.72 4.78 4.85 4.92 4.99 5.06 5.14 5.22 5.29 5.37
70 4.69 4.76 4.83 4.90 4.97 5.05 5.12 5.20 5.28 5.36 5.45
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM
-- 100% CONTINUATION--ASSUMED BASE RATE OF NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
-----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.19 5.23 5.27 5.31 5.34 5.39 5.42 5.46 5.50 5.54 5.58
61 5.23 5.27 5.31 5.35 5.39 5.43 5.47 5.52 5.56 5.60 5.64
62 5.27 5.31 5.35 5.39 5.44 5.48 5.53 5.57 5.62 5.67 5.71
63 5.31 5.35 5.39 5.44 5.49 5.53 5.58 5.63 5.68 5.73 5.78
64 5.34 5.39 5.44 5.48 5.53 5.59 5.64 5.69 5.74 5.79 5.85
65 5.38 5.43 5.48 5.53 5.58 5.64 5.69 5.75 5.80 5.86 5.92
66 5.42 5.47 5.52 5.58 5.63 5.69 5.75 5.81 5.87 5.93 5.99
67 5.45 5.51 5.56 5.62 5.68 5.74 5.80 5.87 5.93 6.00 6.06
68 5.49 5.55 5.61 5.67 5.73 5.80 5.86 5.93 6.00 6.06 6.14
69 5.53 5.59 5.65 5.71 5.78 5.85 5.92 5.99 6.06 6.13 6.21
70 5.56 5.63 5.69 5.76 5.83 5.90 5.97 6.05 6.13 6.21 6.29
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT IF ASSUMED BASE RATE OF NET INVESTMENT RETURN IS
3 1/2% 5%
------ --
AGE MALES FEMALES MALES FEMALES
--- ----- ------- ----- -------
60 5.43 4.80 6.36 5.70
61 5.57 4.90 6.50 5.81
62 5.72 5.01 6.65 5.91
63 5.88 5.13 6.81 6.03
64 6.05 5.25 6.97 6.15
65 6.23 5.39 7.16 6.28
66 6.43 5.54 7.35 6.43
67 6.64 5.70 7.56 6.58
68 6.87 5.87 7.79 6.76
69 7.11 6.06 8.03 6.95
70 7.38 6.27 8.30 7.15
Equitable will notify the payee under a Variable Annuity Benefit of the
number of Annuity Units and the Average New Annuity Unit Value used in
determing the amount of each variable payment.
N. Section 4.08, DEFERMENT, shall read as follows:
SECTION 4.08 DEFERMENT
Payments by Equitable from the Participant's Guaranteed Interest Account
pursuant to the provisions of Setion 2.04, Sections 2.05, 2.05A and 2.05B,
and Section 2.07, or any commuted payments arising from a Fixed Annuity
Benefit pursuant to Section 3.04, may be deferred for up to six months
after receipt of a written request for such surrender or withdrawal, or
receipt of due documentation for such commutation payment pursuant to
Section 3.04. Interest at that current Guaranteed Interest Rate for such
Participant's Guaranteed Interest Account will be allowed on any such
payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the
Participant's Stock Account pursuant to the provisions of Section 2.04,
Sections 2.05, 2.05A and 2.05B, and Section 2.07, or any commuted payments
arising
PF 14102CT PAGE 10
<PAGE>
from a Variable Annuity Benefit pursuant to Section 3.04, will be made
within seven days after receipt of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant,
respectively, or receipt of due documentation for such commutation payment
pursuant to Section 3.04.
During any period when (i) the sale of securities or the determination of
the New Accumulation Unit Value or the New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or
trading on such Exchange is restricted, or (ii) the Securities and Exchange
Commission may by order permit postponement for the protection of persons
having interests in the Separate Account, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of
Cash Values and Annuity Values, arising from an amount in a
Participant's Stock Account;
(b) to defer payment of any portion of the death benefit arising from an
amount in a Participant's Stock Account;
(c) to defer the payment of any Variable Annuity Benefit under the
Contract or the application of any such Benefit to provide for any
other payment called for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to
provide any Annuity Benefit permitted under the Contract.
O. Section 4.09, ANNUAL NOTICE, shall read as follows:
SECTION 4.09, ANNUAL NOTICE
At the end of each Participation Year up to and including the Retirement
Date, Equitable will furnish the Participant with a notice showing as of a
specified recent date (1) the Annuity Value of the Guaranteed Interest
Account, (2) the total number of Accumulation Units credited to the Stock
Account, (3) the New Accumulation Unit Value, (4) the sum of the Cash
Values of the Guaranteed Interest Account and the Stock Account and (5) the
amount of death benefit payable with respect to the Participant. After the
Retirement Date Equitable will notify the Participant of the number of
Annuity Units and the Average New Annuity Unit Value used in determining
the amount of each Variable Annuity Benefit payment, if any.
Agreed to by:
UNITED STATES TRUST COMPANY OF NEW YORK
By
----------------------------
Title
-------------------------
Dated
-------------------------
At
-----------------------------
FOR THE EQUITABLE
By /s/ Coy Eklund
----------------------------------------------
President
By /s/ Rodney L. Enochs
----------------------------------------------
Vice President and Secretary
Date of Issue
-----------------------------------
PF 14102CT PAGE 11
<PAGE>
Attached to and made part of Group Annuity Contract No. 11930CT
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective January 1, 1982 said contract is amended by
adding the following to the third paragraph of Section 1.10 (Guaranteed Interest
Rate):
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine for
each established Class of Participants a Guaranteed Interest Rate for such Class
which exceeds the applicable Yearly Guaranteed Interest Rate. Equitable will
notify each Participant in writing of the applicable Guaranteed Interest Rate
and duration.
Agreed to by:
UNITED STATES TRUST COMPANY OF NEW YORK
By /s/ Alfred H. (signature illegible)
-----------------------------------------------------------
Title Senior Vice President
--------------------------------------------------------
Dated Dec. 22, 1981
---------------------------------------------------------
At New York, New York
-----------------------------------------------------------
FOR THE EQUITABLE
By /s/ Coy Eklund
-------------------------------------------------------------
President
By /s/ Rodney L. Enochs
------------------------------------------------------------
Vice President and Secretary
Date of Issue Dec. 22, 1981
------------------------------------------------
14110 CT
<PAGE>
Attached to and made part of Group Annuity contract No. 11930CT
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective April 15, 1982, said contract and riders are
amended as follows:
o Contributions made to the Contract after deduction of any applicable
taxes, will be allocated to the Stock Account, Money Market Account or
the Guaranteed Interest Account maintained for the Participant, in
accordance with Sections 2.02 and 2.03, or in part to any one, as
directed by the Participant.
o The amount in the Stock Account, Money Market Account and the Guaranteed
Interest Account will be applied at the Retirement Date to provide the
Participant with an Annuity Benefit or a Cash Value Benefit if the
Participant is then living, and
o The Participant will have other rights and benefits as described herein.
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN SEPARATE ACCOUNTS
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF
SEPARATE ACCOUNT A. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE
DAILY RATE OF INVESTMENT RETURN IN SEPARATE ACCOUNT A IS EQUIVALENT TO MORE THAN
6.75% OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75%
OR 5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.16 IS 5% OR 3 1/2%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND
MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO
PROVIDE FOR TAXES.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
The provisions on the following pages are part of the Contract.
PF 14112CT
<PAGE>
This page 2 reserved for information
in connection with the issuance of
certificates under this Contract.
PAGE 2
<PAGE>
This page 3 reserved for information
in connection with the issuance of
certificates under this Contract.
PAGE 3
<PAGE>
PART I - DEFINITIONS
SECTION 1.01 EMPLOYER
The term "Employer" means (i) an educational organization employing a regular
faculty which is a State, a political division of a State, or an agency or
instrumentality of any one or more of the foregoing (within the meaning of
Section 170(b)(1)(A)(ii) of the Code), and (ii) an organization described in
Section 501(c)(3) of the Code which is exempt from Federal income tax under
Section 501(c) of the Code.
SECTION 1.02A AGREEMENT
The term "Agreement" means (i) an agreement between an Employer and an employee
of the Employer, within the meaning of Section 1.403(b) - 1(b)(3) of the Federal
income tax regulations, under which the employee agrees to accept a reduction in
salary or to forego an increase in salary and to have such amounts applied under
the contract for the employee's behalf and (ii) any program or arrangement
(other than by use of agreements described above) pursuant to which an Employer
makes Contributions to the purchase of an Annuity meeting the requirements of
Section 403(b) of the Code.
SECTION 1.02B PLAN
The term "Plan" means a defined contribution pension plan established by an
Employer described in clause (ii) of Section 1.01 which has been determined
Page 4
PF14112CT
<PAGE>
DEFINITIONS (continued)
by the Internal Revenue Service to meet the requirements for qualification under
Section 401(a) of the Code and which permits or requires amounts contributed
thereunder to be applied under the Contract on behalf of employees covered under
the Plan.
SECTION 1.03 ANNUITY
The term "Annuity" means an annuity purchased in accordance with the terms of
the Agreement or the Plan to the extent the Agreement and the annuity purchased
pursuant thereto meet the requirements of Section 403(b) of the Code or the Plan
meets the requirements of Section 401(a) of the Code, whichever is applicable.
SECTION 1.04 ANNUITY BENEFIT
The term "Annuity Benefit" means a benefit payable by Equitable pursuant to
Section 3.04 of the Contract.
SECTION 1.05A PARTICIPANT
The term "Participant" means a person who has been enrolled by Equitable under
the Contract and for whom the Employer has purchased an Annuity under the
Contract. A person shall become enrolled under the Contract upon receipt by
Equitable of an enrollment form made available by Equitable and completed in a
manner satisfactory to Equitable. An Annuity is purchased for a person enrolled
under the Contract upon receipt by Equitable of an initial Contribution by the
Employer.
SECTION 1.05B EXISTING PARTICIPANT
The term "Existing Participant" means a Participant for whom Cash Values of
existing annuity contract(s) issued by Equitable were eligible to be transferred
to the Contract pursuant to Section 2.01 and who was enrolled under the Contract
on or prior to April 14, 1982.
SECTION 1.05C NEW PARTICIPANT
The term "New Participant" means a Participant who is not an Existing
Participant.
SECTION 1.06 CONTRIBUTION
The term "Contribution" means a payment made to Equitable for a Participant with
respect to an Annuity purchased for such Participant under the Contract.
Equitable is under no obligation to accept any Contribution less than $20.00.
SECTION 1.07 PARTICIPATION DATE
The term "Participation Date" with respect to a Participant means the date as of
which Equitable has enrolled such Participant under the terms of the Contract.
SECTION 1.08 PARTICIPATION YEAR
The term "Participation Year" with respect to a Participant means the twelve
month period beginning on (i) the Participation Date, and (ii) each anniversary
thereof, unless otherwise agreed to in writing by Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS
Except as provided in Section 1.10, the term "Class of Participants" refers to
all Participants whose Participation Date is in the same calendar year.
SECTION 1.10 GUARANTEED INTEREST RATE
For each Guaranteed Interest Account, the term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in such
Account. Interest accrues daily. The Guaranteed Interest Rate will never be less
than 3% per annum.
Equitable will from time to time establish and make available for new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new Class of Participants will be established effective with the
effective date of the occurrence of (i), (ii) or (iii) above or any combination
thereof.
For the calendar year next succeeding the end of the period for which an
established Initial Guaranteed Interest Rate is effective and for each
subsequent calendar year thereafter, Equitable will determine for each
established Class of Participants before the beginning of such calendar year a
Yearly Guaranteed Interest Rate for such Class, which Yearly Guaranteed Interest
Rate will not be lower than the effective Minimum Guaranteed Interest Rate
applicable for such Class for such year. For any established Class of
Participants, Equitable reserves the right to change the Minimum Guaranteed
Interest Rate and the applicable period therefore provided that any such Minimum
Guaranteed Interest Rate will not be lower than the Minimum Guaranteed Interest
Rate that would have been in effect in the absence of such
PF 14112CT Page 5
<PAGE>
DEFINITIONS (continued)
change. Equitable will notify each Participant in a Class in writing of the
Yearly Guaranteed Interest Rate or of any change in the Minimum Guaranteed
Interest Rate at least 15 days prior to its effective date.
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine for
each established Class of Participants a Guaranteed Interest Rate for such Class
which exceeds the applicable Yearly Guaranteed Interest Rate. Equitable will
notify each Participant in writing of the applicable Guaranteed Interest Rate
and duration.
SECTION 1.11 RETIREMENT DATE
The term "Retirement Date" means the date on which the Participant is to attain
the retirement age specified in the Participant's enrollment form. Before the
Retirement Date the Participant may elect to change the Retirement Date to
another Retirement Date, which may be any date after the filing of the election
(other than the 29th, 30th, or 31st day of any month). No Retirement date shall
be earlier than the date of attainment of age 55 years. Any election for such
change must be made in writing by the Participant and shall not take effect
until received by Equitable at its Home Office.
SECTION 1.12 NORMAL FORM
The "Normal Form" of an Annuity Benefit under the Contract means (i) if the
Participant has a living spouse at the Retirement Date, the Fixed Annuity
Benefit payable on the Joint and Survivor Life Annuity Form with such spouse as
the contingent annuitant (100% continuation), and (ii) if the Participant does
not have a living spouse at the Retirement Date, the Fixed Annuity Benefit
payable on the Life Annuity Form.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM
The term "Joint and Survivor Life Annuity Form" means an annuity providing
monthly payments while either of two persons upon whose lives such payments
depends is living. The monthly amount to be continued when only one of the
persons is living will be equal to a percentage of the monthly amount that was
paid while both were living. This percentage may be 50% or any higher percentage
up to and including 100%, as elected by the Participant. The payments commence
on the date as of which the Joint and Survivor Life Annuity Form is purchased
and terminate with the last payment due before the death of the survivor.
SECTION 1.14A LIFE ANNUITY FORM
The term "Life Annuity Form" means an annuity providing fixed monthly payments
during the lifetime of the person upon whose life such payments depend. The
payments commence on the date as of which the Life Annuity Form is purchased and
terminate with the last payment due before the death of such person.
SECTION 1.14B ELIGIBLE ANNUITY CERTAIN
The term "Eligible Annuity Certain" means an annuity not involving life
contingencies issued by Equitable which extends beyond the Participant's
attainment of age 59 years and six months and does not permit any prepayment of
the unpaid principal prior to the participant's attainment of age 59 years and
six months.
SECTION 1.15 THE SEPARATE ACCOUNTS
The term "Separate Accounts" means the following separate investment accounts
maintained by Equitable to which portions of its assets have been allocated for
the Contract and certain other contracts:
Name Investments
---- -----------
Separate Account A Primarily common stock and other equity-type investments.
Separate Account E Primarily short-term money market instruments
PF 14112CT Page 6
<PAGE>
DEFINITIONS (continued)
Equitable reserves the right to withdraw from any Separate Account and allocate
to another separate account assets determined by Equitable to be associated with
the class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid odd lots and
fractions. On and after the date of any such withdrawal the reference in the
Contract to such Separate Account shall mean such other separate account to
which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Accounts will, at most
times, consist primarily of the types of investments indicated above. Equitable
may, however, at its discretion invest the assets of any Separate Account in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including attorneys in its employ) as to what investments it
is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate any Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
any Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) run any Separate Account under the direction of a
committee, and to discharge such committee at any time; and (iii) restrict or
eliminate any voting rights of participants or other persons who have voting
rights as to the Separate Accounts.
Assets of the Separate Accounts attributable to the Contract shall be subject to
a charge at the rate of 1.75% a year, consisting of .15% for investment
management, .35% for financial accounting, .35% for the annuity rate guarantee
and the minimum death benefit, and .90% for expenses and expense risk. The
charge shall be made in accordance with (c) of the Net Investment Factor
provision in Section 1.16.
The assets of Separate Accounts are the property of Equitable; however, the
portion of the assets of each Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising out of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of the Separate Accounts in excess of such
reserves and contract liabilities to the general account of Equitable.
SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which there is a
sufficient degree of trading in the portfolio securities of a Separate Account
that the New Accumulation Unit Value or New Annuity Unit Value might be
materially affected by changes in the value of the portfolio securities in a
Separate Account, as determined by the Separate Account Committee or, if there
is no Committee, by Equitable.
NET INVESTMENT FACTOR: For each Separate Account the Net Investment Factor for a
Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment income
and the capital gains, realized or unrealized credited to the assets in the
Separate in the Valuation Period for which the Net Investment Factor is
being determined, minus (3) the capital losses, realized or unrealized,
charged against such assets in such Valuation Period minus (4) any amount
charged against the Separate Account in such Valuation period for taxes or
for amounts set aside by Equitable as a reserve for taxes attributable to
the maintenance or operation of the Separate Account;
(b) is the value of he assets in the Separate Account at the close of business
of the preceding Valuation Period; and
PF 14112CT Page 7
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DEFINITIONS (continued)
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial accounting, the annuity rate
guarantee and the minimum death benefit, and expenses and expense risk.
The value of the assets in the Separate Accounts, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
their fair value, as determined in accordance with accepted accounting practices
and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the value
of the interest of a Participant's Stock Account or Money Market Account on or
before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Values for the
Separate Accounts have been established as follows:
Account Value Date
------- ----- ----
Separate Account A $10.00 As of November 1, 1968
Separate Account E $10.00 As of September 4, 1974
The new Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNITY: The Annuity Unit is a unit used in determining amounts payable
from Separate Account A under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value for Separate Account
A has been established at $1.00 as of November 1, 1968. The Annuity Unit Value
for any subsequent Valuation Period is the New Annuity Unit Value for the
immediately preceding Valuation Period multiplied by the Adjusted Net Investment
Factor for such subsequent Valuation Period. The Adjusted Net Investment Factor
for a Valuation Period is the Net Investment Factor for such period reduced for
each calendar day in such subsequent Valuation Period by the Net Investment
Factor times (i) .00013366, if the Assumed Base Rate of Net Investment Return is
5%, and (ii) .00009425, if the Assumed Base Rate of Net Investment Return is 3
1/2%. The Assumed Base Rate of Net Investment Return shall be 5%, except in
states where the rate is not permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average Annuity Unit Value for Separate
Account A for a calendar month is equal to the average of the New Annuity Unit
Values for the Valuation Periods ending in such month.
SECTION 1.17 ANNUITY VALUE
The term "Annuity Value" with respect to a Participant's Guaranteed Interest
Account, Stock Account and Money Market Account, means the amount in such
Accounts pursuant to Sections 2.02 and 2.03.
SECTION 1.18A CASH VALUE - NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to a New Participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock Account
and Money Market Account means an amount equal to the Annuity Values of such
Accounts after the earliest of the following occurrences: (i) The later of (a)
the completion of five Participation Years with respect to such Participant and
(b) the Participant's attainment of age 59 years and six months, or (ii) the
Participant's attainment of age 70 years and six months, or (iii) the completion
of 25 Participation Years with respect to such Participant, or (iv) if the
Participant has attained age 55, completed five Participation Years, and the
Cash Values are to be applied to purchase an Eligible Annuity Certain defined in
Section 1.14B. At other times, the sum of the Cash Values of such Accounts
equals the sum of the Annuity Values of such Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five Participation
Years with respect to the Participant, the withdrawal charge equals the lesser
of (a) or (b) where:
(a) equals 6% of the sum of the Annuity Values of such Accounts.
(b) is an amount equal to the excess, if any, of (i) 8% of the cumulative
contributions made on behalf of such Participant over (ii) the cumulative
total of any withdrawal charges made pursuant to Sections 2.07 and 2.07A.
PF 14112CT Page 8
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DEFINITIONS (continued)
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five Participation
Years with respect to the Participant, the withdrawal charge equals the lesser
of (a) or (b) where:
(a) equals 6% of the excess of (i) the sum of the Annuity Values of such
Accounts over (ii) the Free Corridor Amount defined in Section 2.07C.
(b) is the excess, if any, of (i) 8% of the total contributions made on
behalf of such Participant during the current Participation Year and the
preceding nine Participation Years over (ii) the cumulative total of any
withdrawal charges made pursuant to Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account and Money
Market Account will be in the same proportion as are the Annuity Values of such
Accounts.
SECTION 1.18B CASH VALUE - EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to an Existing Participant, the term "Cash
Value" with respect to such Participant's Guaranteed Interest Account, Stock
Account and Money Market Account means an amount equal to the Annuity Values of
such Accounts after the earliest of the following occurrences: (i) The
Participant's attainment of age 59 years and six months, (ii) the completion of
20 Participation Years with respect to such Participant, or (iii) if the
Participant has attained age 55 and the Cash Values are to be applied to
purchase an Eligible Annuity Certain defined in Section 1.14B. At other times,
the sum of the Cash Values of such Accounts equals the sum of the Annuity Values
of such Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five Participation
Years with respect to the Participant, the withdrawal charge equals the sum of
the charges described in subsections (a) and (b) below; provided, however, that
such charge does not exceed the amount described in subsection (c) below where:
(a) is an amount equal to 2% of any Preferred Withdrawable Amounts (defined
in Section 2.07B) that have not previously been withdrawn pursuant to
Sections 2.07 and 2.07B.
(b) is an amount equal to 6% of any Regular Withdrawable Amounts (defined in
Section 2.07B) that have not previously been withdrawn pursuant to
Sections 2.07 and 2.07B.
(c) is an amount equal to the sum of (a) above, and 6% of the excess, if any,
of (i) the sum of the Annuity Values of such Accounts over (ii) the
cumulative total of Equitable Transferred Funds made with respect to the
Participant that have not previously been withdrawn pursuant to Sections
2.07 and 2.07B.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After five Participation Years have been
completed with respect to the Participant, Equitable (i) will first withdraw,
pursuant to Section 2.07B, the Free Corridor Amount defined in Section 2.07C and
(ii) next withdraw the remaining portion of the sum of the Annuity Values of
such Accounts. A withdrawal charge will apply to the amount in (ii) above, and
will equal the sum of the charges described in subsections (a) and (b) of the
preceding subsection; provided, however, that such charge will not exceed an
amount equal to the lesser of the charge will not exceed an amount equal to the
lesser of the charges defined in (d) and (e) below:
(d) is an amount equal to the sum of (a) in the preceding subsection, and 6%
of the excess, if any, of (i) the sum of the Annuity Values of such
Accounts (after withdrawal of the Free Corridor Amount) over (ii) the
cumulative total of Equitable Transferred Funds made on behalf of the
Participant that have not previously been withdrawn pursuant to Sections
2.07 and 2.07B.
(e) is an amount equal to the excess, if any, of (1) the sum of (i) 2% of the
first $10,000 of Equitable Transferred Funds made during the current
Participation Year and the preceding nine Participation Years and (ii) 8%
of all other contributions (excluding Equitable Transferred Funds) made
on behalf of such Participant during the current Participation Year and
the preceding nine completed Participation Years over (2) the cumulative
total of any withdrawal charges made pursuant to Sections 2.07 and 2.07B.
The Cash Values of the Guaranteed Interest Account Stock Account and Money
Market Account will be in the same proportion as are the Annuity Values of such
Accounts.
PF 14112CT Page 9
<PAGE>
DEFINITIONS (continued)
SECTION 1.19 CODE
The term "Code" means the Internal Revenue Code of 1954, as now or hereafter
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.20 EQUITABLE TRANSFERRED FUNDS
The term "Equitable Transferred Funds" with respect to a Participant means the
amount of cash value(s) transferred to the Contract from a contract issued by
Equitable pursuant to Section 2.01.
PART II - PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS
The Employer is to make Contributions from time to time on such dates and in
such amounts as determined by the Employer pursuant to the terms of the Plan or,
if the Employer has no Plan, as determined by the Employer at its sole
discretion. The Employer is to specify the Participant with respect to whom each
such Contribution is being made and the amount to be allocated to the Stock
Account, Money Market Account and the Guaranteed Interest Account.
Each Contribution received by Equitable with respect to a Participant will,
before its allocation under the Contract, be reduced by the amount of any
applicable taxes, as determined by Equitable.
A Participant may, with Equitable's agreement, transfer to the Contract any
amount held with respect to such Participant under a contract meeting the
requirements of Section 403(b) of the Code or under a Plan of an Employer
described in clause (ii) of Section 1.01 ("Transferred Funds"). Any Transferred
Funds from a contract not issued by Equitable will, before allocation under the
Contract, be reduced by the amount of any applicable taxes, as determined by
Equitable.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
SECTION 2.02 STOCK AND MONEY MARKET ACCOUNTS
Equitable maintains a Stock Account and Money Market Account under the Contract
for each Participant with respect to whom Contributions are made. Any amount
allocated to the (i) Stock Account becomes part of Separate Account A, and (ii)
Money Market Account becomes part of Separate Account E. Any amount withdrawn
from an Account will no longer be part of the applicable Separate Account.
On any date when an amount is allocated to or withdrawn from an Account, the
Account will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the New Accumulation
Value for the appropriate Separate Account for the Valuation Period which
includes that date. The number of Units in an Account on any date is equal to
(i) the sum of any Accumulation Units that have been credited to the Account
minus (ii) the sum of any Accumulation Units that have been charged to that
Account. The amount in the Stock Account or Money Market Account on any date is
equal to the product of (i) the number of Accumulation Units in such Account on
that date and (ii) the New Accumulation Unit Value for the appropriate Separate
Account for the Valuation Period which includes that date.
SECTION 2.03 GUARANTEED INTEREST ACCOUNT
Equitable maintains a Guaranteed Interest Account under the Contract for each
Participant with respect to whom Contributions are made. Any amount allocated to
the Guaranteed Interest Account becomes part of the general assets of Equitable,
which support the guarantees of the Contract and other contracts.
The amount in a Guaranteed Interest Account at any time is equal to the sum of
all amounts that have been allocated to such Guaranteed Interest Account
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn pursuant to
Sections 2.07, 2.07A, and 2.07B, and Section 2.08 from such Account, and
transferred pursuant to Section 2.05 from such Guaranteed Interest Account, and
less the sum of any annual administrative charges accrued but not made.
Equitable guarantees that the amount in a Guaranteed Interest Account at any
time before the Retirement Date will not be less than the sum of all
PF 14112CT Page 10
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PARTICIPANT'S ACCOUNT (continued)
amounts allocated to such Account pursuant to Section 2.04 or transferred to
such Account pursuant to Section 2.05 and less the sum of all amounts that have
been withdrawn from such Account pursuant to Sections 2.07, 2.07A and 2.07B, and
transferred form such Account pursuant to Section 2.05, all accumulated at 3%
interest, compounded annually. In any Participation Year in which no
Contribution is allocated to a Guaranteed Interest Account, the amount in such
Account at the end of the Participation Year shall not be less than the amount
in such Account at the beginning of the Participation Year plus the sum of all
amounts transferred to such Account pursuant to Section 2.05 less the sum of all
amounts withdrawn and transferred out of such Account pursuant to Sections 2.07,
2.07A and 2.07B, and Section 2.05, all accumulated at 3% interest, compounded
annually.
A Guaranteed Interest Account for a Participant terminates on the earliest of
(i) the Retirement Date, (ii) the death of the Participant, and (iii)
termination of participation pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO ACCOUNT
Each Contribution made with respect to a Participant pursuant to Section 2.01,
after deduction for any applicable taxes, will be allocated, as of the date by
which Equitable has received both such Contribution and direction as to its
allocation, to the Guaranteed Interest Account, Stock Account, or Money Market
Account or in part to each, at the sole direction of the Participant as
specified to Equitable, provided that the percentage allocated to each Account
is a whole number.
Any amount that a Participant has directed to be transferred to the Guaranteed
Interest Account or Stock Account pursuant to Section 2.05 will be allocated as
of the date of such transfer to the appropriate Account maintained for such
Participant.
Interest is allocated to the Guaranteed Interest Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05 and 2.07, 2.07A, and 2.07B, at the time of application of amounts
in the Guaranteed Interest Account to provide Annuity Benefits, upon termination
of participation pursuant to Section 2.06, and upon death of the Participant
pursuant to Section 2.09.
SECTION 2.05 TRANSFERS AMONG ACCOUNTS
At any time before a Participant's Retirement Date, such Participant, upon
written request, (i) may transfer all or a part of the amounts from the Stock
Account or Money Market Account maintained for such Participant to the
Guaranteed Interest Account maintained for such Participant, or (ii) may
transfer all or a part of the amounts in the Guaranteed Interest Account or
Money Market Account maintained for such Participant, to the Stock Account
maintained for such Participant. Such transfers will be made as of the later of
(i) the date specified in such request and (ii) the date Equitable receives such
request, and will be subject to Equitable's rules in effect at the time of
transfer. No transfers are permitted from the Guaranteed Interest Account or the
Stock Account maintained for the Participant to the Money Market Account.
SECTION 2.06 TERMINATION OF PARTICIPATION
Subject to any applicable restrictions under the terms of the Agreement or the
Plan, whichever is applicable, on or before a Participant's Retirement Date,
such Participant may elect by written notice to terminate participation under
the Contract. Upon receipt of such notice, Equitable will determine the Cash
Value, as of the date Equitable received such notice, of the Guaranteed
Interest Account, Stock Account, and Money Market Account maintained for such
Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Guaranteed Interest Account,
Stock Account and Money Market Account, pay such Annuity Values and terminate
such Participant's participation under the Contract. This right may be exercised
with respect to the Participant only if both (i) no Contributions have been made
under the Contract during the last three completed Participation Years and (ii)
the sum of such Annuity Values is $500 or less. Equitable reserves the right to
terminate a Participant's participation under the Contract if at least 120 days
have elapsed since the issue date shown on the certificate issued to such
Participant under the
PF 14112CT Page 11
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PARTICIPANT'S ACCOUNT (continued)
Contract and no Contributions have been made under the Contract with respect to
such Participant.
Upon payment of such Cash Values or Annuity Values, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Values or Annuity Values arose.
SECTION 2.07 PARTIAL WITHDRAWALS
Subject to any applicable restrictions under the terms of the Agreements, or the
Plan, whichever is applicable, a Participant may elect by written notice to
Equitable to make a partial withdrawal from the Stock Account, Money Market
Account, and the Guaranteed Interest Account maintained for such Participant
before such Participant's Retirement Date.
Upon withdrawal pursuant to Section 2.07, 2.07A or 2.07B, Equitable will pay the
lesser of the sum of the Cash Values of such Accounts or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by such Participant. Unless instructed otherwise, the amount withdrawn
(including the amount of any withdrawal charge) will be allocated between such
Accounts in proportion to the Annuity Value of each such Account.
Upon any payment to a Participant pursuant to Section 2.07, 207A or 2.07B,
Equitable will be released from any and all liability for payments with respect
to the Contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to Section 2.07, 2.07A or 2.07B may be
deferred by Equitable in accordance with the provisions of Section 4.08.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300. If a withdrawal from the Accounts made pursuant to Sections
2.07, 2.07A or 2.07B would result in total Annuity Values of less than $500,
Equitable will so advise the Participant and reserves the right to withdraw the
Annuity Values of the Guaranteed Interest Account Stock Account and Money Market
Account, pay the Annuity Values of such Accounts to the Participant, and
terminate such Participant's participation under the Contract. If the
Participant was enrolled in this Contract prior to August 15, 1981, the $500
amount stated above shall be $200.
SECTION 2.07A PARTIAL WITHDRAWALS - NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a New
Participant, Equitable will withdraw from the Stock Account, Money Market
Account and Guaranteed Interest Account an amount equal to the lesser of (a) the
full amount of partial withdrawal requested or (b) the sum of the Annuity Values
of such Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The later of (a) the completion of
five Participation Years with respect to such Participant and (b) such
Participant's attainment of age 59 years and six months, or (ii) such
Participant's attainment of age 70 years and six months, or (iii) the completion
of 25 Participation Years with respect to such Participant, or (iv) if the
Participant has attained age 55, has completed five Participation Years, and the
partial withdrawal is to be applied to purchase an Eligible Annuity Certain
defined in Section 1.14B. At other times, Equitable will withdraw from such
Accounts an amount equal to the amount of partial withdrawal requested plus a
withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: If the Participant has not completed
five Participation Years under the Contract, such withdrawal charge will equal
the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the total amount to be withdrawn from the
Accounts (including such charge) pursuant to this paragraph.
(b) is the excess, if any, of (i) 8% of the cumulative total of Contributions
made on behalf of such Participant over (ii) the cumulative total of any
prior withdrawal charges made pursuant to this Section.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five Participation
Years with respect to the Participant, there will be no withdrawal charge if the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free Corridor
Amount Equitable
PF 14112CT Page 12
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PARTICIPANT'S ACCOUNT (continued)
will (i) first withdraw from such Accounts an amount equal to the Free Corridor
Amount, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a withdrawal charge. Such
withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the amount withdrawn (including such charge)
pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of contributions
made on behalf of such Participant during the current Participation Year
and the nine preceding Participation Years over (ii) the cumulative total
of any prior withdrawal charges made pursuant to this Section.
SECTION 2.07B PARTIAL WITHDRAWAL - EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by an
Existing Participant, Equitable will withdraw from the Stock Account, Money
Market Account and Guaranteed Interest Account an amount equal to lesser of (a)
the full amount of partial withdrawal requested or (b) the Annuity Values of
such Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The Participant's attainment of age
59 years and six months, or (ii) the completion of 20 Participation Years with
respect to such Participant, or (iii) if the Participant has attained age 55 and
the partial withdrawal is to be applied to purchase an Eligible Annuity Certain
defined in Section 1.14B. At other times, Equitable will withdraw from such
Accounts an amount equal to the amount of partial withdrawal requested plus a
withdrawal charge.
PREFERRED WITHDRAWABLE AMOUNT: This is an amount equal to the lesser of (a) the
total of Equitable Transferred Funds made on behalf of the Participant or (b)
$10,000.
FREE WITHDRAWABLE AMOUNT: This is an amount equal to the excess, if any, of (a)
the total Equitable Transferred Funds made on behalf of the Participant over (b)
$10,000.
REGULAR WITHDRAWABLE AMOUNT: This is the cumulative total of all Contributions,
other than Equitable Transferred Funds, made on behalf of the Participant.
ORDER OF WITHDRAWALS: In calculating the withdrawal charge, Equitable will
assume that (a) any Preferred Withdrawable Amounts are first withdrawn, (b) any
Free Withdrawable Amounts are next withdrawn, (c) any Regular Withdrawable
Amounts are next withdrawn, and (d) lastly, any amounts other than the amounts
described in (a), (b), and (c) above are withdrawn.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five Participation
Years with respect to the Participant, the withdrawal charge equals the sum of
the charges described in subsections (a), (b), (c) and (d) below:
(a) With respect to any withdrawals of Preferred Withdrawable Amounts, a charge
of 2% of such withdrawals.
(b) With respect to any withdrawals of Free Withdrawable Amounts, no charge.
(c) With respect to any withdrawals of Regular Withdrawable Amounts, a charge
of 6% of such withdrawals.
(d) With respect to any withdrawals of amounts other than the amounts in (a),
(b) and (c) above, no charge.
WITHDRAWAL CHARGE AFTER FIVE YEARS: after the completion of five Participation
Years with respect to the Participant, there will be no withdrawal charge if the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free Corridor
Amount, Equitable will (1) first withdraw from such Accounts an amount equal to
the Free Corridor Amount, and (2) then withdraw from such Accounts an amount
equal to the excess of the amount requested over the Free Corridor Amount, plus
a withdrawal charge. Such withdrawal charge will equal the sum of the charges
described in (a), (b), (c), and (d) above; provided however, that in no event
will such charge exceed an amount equal to the following: The excess, if any, of
PF 14112CT Page 13
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PARTICIPANT'S ACCOUNT (continued)
(1) the sum of (i) 2% of the first $10,000 of Equitable Transferred Funds made
during the current Participation Year and the preceding nine Participation Years
and (ii) 8% of all other Contributions (excluding Equitable Transferred Funds)
made on behalf of the Participant during the current Participation Year and the
preceding nine completed Participation Years over (2) the cumulative total of
any prior withdrawal charges made pursuant to this Section.
Whenever an amount is withdrawn from such Accounts that is not greater than the
current Free Corridor Amount, such amount is considered to be (1) first, a
withdrawal of Regular Withdrawable Amounts, (2) next, a Withdrawal of Preferred
Withdrawable Amounts, (3) next, a withdrawal of Free Withdrawable Amounts and
(4) lastly, a withdrawal of amounts other than the amounts in (1), (2), or (3)
above. However, no charge will be assessed with respect to the portion of the
withdrawal up to the current Free Corridor Amount.
SECTION 2.07C FREE CORRIDOR AMOUNT
The term "Free Corridor Amount" with respect to a Participant who has completed
five Participation Years means an amount equal to the excess, if any, of (i) 10%
of the sum of the Annuity Values of the Stock Account, Money Market Account and
the Guaranteed Interest Account over (ii) cumulative prior withdrawals made
pursuant to Section 2.07, 2.07A or 2.07B in the current Participation Year with
respect to the Participant.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE
As of the last day of each Participation Year before a Participant's Retirement
Date, Equitable will withdraw from the Guaranteed Interest Account, Stock
Account and Money Market Account maintained under the Contract, as to the
Contributions remitted with respect to such Participant, an annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i) the
Annuity Values of the Guaranteed Interest Account, Stock Account and Money
Market Account at the end of that Participation Year and (ii) any withdrawals
made from such Accounts Pursuant to Section 2.07, 2.07A and 2.07B during that
Participation Year. The charge will be allocated between the Stock Account,
Money Market Account and Guaranteed Interest Account in proportion to the
Annuity Values of each such Account, at the end of the Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Values or Cash Values of such Participant's Account pursuant to Section 3.03, or
upon termination of such Account pursuant to Section 2.06 or Section 2.09 during
a Participation Year, Equitable will withdraw the administrative charge
described in this Section for the applicable part of that Participation Year.
SECTION 2.09 DEATH BENEFIT
If the Employer reports to Equitable, or if Equitable otherwise ascertains, that
a Participant has died while Accounts for such Participant are maintained under
the Contract and before such Participant's Retirement Date, Equitable, upon
receipt of due proof of such death, will pay in a single sum to the beneficiary
designated by such Participant to receive such payment the amount of death
benefit payable with respect to such Participant. The amount of the death
benefit with respect to a Participant at any time prior to the Retirement Date
is equal to the greater of (i) the sum of the Annuity Values of the Guaranteed
Interest Account, Stock Account and Money Market Account maintained under the
Contract for such Participant and (ii) the minimum death benefit with respect to
such Participant. Such minimum death benefit is the sum of all Contributions
made with respect to such Participant pursuant to Section 2.01 (before reduction
of any applicable taxes) less an adjustment for any withdrawals made pursuant to
Sections 2.07, 2.07A and 2.07B from the Accounts maintained under the Contract
for such Participant. Any such withdrawal will reduce the minimum death benefit
(as adjusted by any previous such withdrawal) by an amount which is in the same
proportion as the amount being withdrawn is to the Annuity Values then in the
Guaranteed Interest Account, Stock Account and Money Market Account maintained
under the Contract for such Participant. If, in accordance with the provisions
of Section 2.01, the cash value of an Annuity contract issued by Equitable,
which provides for a death benefit before retirement equal to the greater of the
contract cash value or an alternative amount based on premiums paid or
contributions made under the Annuity contract, is transferred to the Contract,
such alternative amount as of the date of transfer will be included in the "sum
of all Contributions" in lieu of the amount of cash value transferred, for
purposes of the death benefit under the Contract.
PF 14112CT Page 14
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefor, be withdrawn from the Guaranteed
Interest Account, Stock Account and Money Market Account maintained with respect
to such Participant under the Contract. Upon such payment, Equitable will be
released from any and all liability for payments with respect to the
Contributions from which the Annuity Values arose.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT
The term "Fixed Annuity Benefit" means an Annuity Benefit under which the
monthly payments with respect to a payee are payable in a specified dollar
amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT
The term "Variable Annuity Benefit" means an Annuity Benefit under which the
dollar amount of the monthly payments with respect to a payee may increase or
decrease depending on the investment experience of Separate Account A.
The amount of the first, second, and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to the payee pursuant to Section 3.04. The amount
of the fourth and each subsequent payment under a Variable Annuity Benefit will
be equal to the number of Annuity Units with respect to such benefit, multiplied
by the Average New Annuity Unit Value for the second calendar month immediately
preceding the date of the payment. the fourth and subsequent annuity payments
under a Variable Annuity Benefit will not be increased or decreased in amount
because of mortality or expense experience. The number of Annuity Units with
respect to a benefit is the number determined by dividing the amount of the
first monthly payment under such benefit by the New Annuity Unit Value for the
Valuation Period which includes the due date of the first monthly payment.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS
As of a Participant's Retirement Date, provided such Participant is then living,
the Annuity Values of such Participant's Guaranteed Interest Account, Stock
Account and Money Market Account shall be applied to provide the Normal Form of
Annuity Benefit, unless such Participant elects (i) to receive the Cash Value of
such Account in a single sum or (ii) to apply such Annuity Value or Cash Value,
whichever is applicable pursuant to the first paragraph of Section 3.04, to
provide an Annuity Benefit on any other annuity form offered by Equitable, as
elected by the Participant, subject to Equitable's rules then in effect and any
applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.06 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Values of such Participant's Guaranteed
Interest Account, Stock Account and Money Market Account
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS If a Participant elects pursuant to the
first paragraph or third paragraph of Section 3.03 to receive an Annuity Benefit
in lieu of the Cash Values of the Guaranteed Interest Account, Stock Account and
Money Market Account, the amount applied to provide the Annuity Benefit will be
(i) the Annuity Values of such Accounts if the payments under the
PF 14112CT Page 15
<PAGE>
ANNUITY BENEFITS (continued)
annuity form elected are contingent upon the survival of a person, or (ii) the
Cash Values of such Account if the payments under the annuity form elected are
not contingent upon the survival of a person.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If such
amount is applied on or after the completion of five Participation Years with
respect to such Participant, or if such amount is applied on behalf of an
Existing Participant, the balance shall purchase the Annuity Benefit on the
basis of either (i) the Table of Guaranteed Annuity Payments shown below or (ii)
Equitable's current individual annuity rates for payment of proceeds, whichever
rates would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a New Participant, the
balance, after any applicable tax on annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown below or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Guaranteed Interest Account, Stock
Account and Money Market Account maintained for such Participant shall
terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form, are based on 3 1/4% interest and the 1971 ELAS Mortality Table.
The amounts of income initially provided under the Variable Annuity Benefit
payable on the Life Annuity Form and Joint and Survivor Life Annuity Form are
based on 1979 ELAS mortality and an Assumed Base Rate of Net Investment Return
of 3 1/2% or 5%, whichever applies pursuant to Section 1.16. Equitable may
change the monthly income amounts contained in the Tables of Guaranteed Annuity
Payments and the bases for determining such amounts, for new Participants, by at
least 90 days advance notice to the Contract Holder and by an amendment to the
Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/4% interest and the 1971 ELAS Mortality Table if
such annuity form provides for a Fixed Annuity Benefit, and on 1979 ELAS
Mortality and an Assumed Base Rate of Net Investment Income Return of 5% of 3
1/2%, whichever applies pursuant to Section 1.16, if such annuity form provides
for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS
Evidence of each payee's survival must be furnished to Equitable either by
personal endorsement of the check drawn for payment or by other means
satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian commit-
PF 14112CT Page 16
<PAGE>
ANNUITY BENEFITS (continued)
tee, or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such a 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Upon election by a Participant pursuant to Section 3.03 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life and annuity form depends.
PF 14112CT Page 17
<PAGE>
ANNUITY BENEFITS (continued)
TABLES OF GUARANTEED ANNUITY PAYMENTS
(BASED ON AGE NEAREST BIRTHDAY ON DUE DATE OF FIRST PAYMENT)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM --
100% CONTINUATION (Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
-----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.58 4.64 4.70 4.76 4.82 4.88 4.94 5.00 5.05 5.11
61 4.55 4.62 4.68 4.74 4.81 4.87 4.93 5.00 5.06 5.12 5.18
62 4.58 4.65 4.72 4.78 4.85 4.92 4.99 5.05 5.12 5.19 5.25
63 4.67 4.68 4.76 4.82 4.89 4.97 5.04 5.11 5.18 5.25 5.32
64 4.64 4.71 4.79 4.86 4.94 5.05 5.09 5.17 5.24 5.32 5.40
65 4.67 4.74 4.82 4.90 4.98 5.06 5.14 5.22 5.30 5.38 5.47
66 4.69 4.77 4.85 4.93 5.02 5.10 5.18 5.27 5.35 5.44 5.53
67 4.72 4.80 4.88 4.97 5.06 5.14 5.23 5.30 5.40 5.50 5.59
68 4.74 4.82 4.98 5.00 5.09 5.18 5.27 5.36 5.45 5.55 5.65
69 4.76 4.85 4.94 5.03 5.12 5.22 5.31 5.47 5.50 5.60 5.71
70 4.78 4.87 4.96 5.06 5.26 5.26 5.3? 5.45 5.56 5.66 5.76
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM --
100% CONTINUATION -- ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
-----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.30 4.35 4.39 4.43 4.47 4.50 4.55 4.59 4.63 4.67 4.71
61 4.35 4.39 4.43 4.48 4.52 4.56 4.64 4.65 4.69 4.73 4.78
62 4.39 4.43 4.48 4.52 4.57 4.67 4.66 4.71 4.75 4.80 4.85
63 4.42 4.47 4.52 4.57 4.62 4.67 4.72 4.77 4.82 4.87 4.92
64 4.46 4.51 4.57 4.62 4.67 4.72 4.77 4.83 4.88 4.94 4.99
65 4.50 4.56 4.61 4.66 4.73 4.76 4.83 4.89 4.95 5.01 5.07
66 4.54 4.60 4.65 4.71 4.77 4.83 4.89 4.95 5.01 5.08 5.14
67 4.58 4.64 4.70 4.76 4.82 4.88 4.95 5.01 5.08 5.15 5.22
68 4.62 4.68 4.77 4.81 4.87 4.95 5.01 5.08 5.15 5.22 5.29
69 4.65 4.72 4.78 4.85 4.92 4.99 5.06 5.14 5.22 5.29 5.37
70 4.69 4.76 4.83 4.90 4.97 5.05 5.12 5.20 5.28 5.36 5.45
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
-----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.19 5.23 5.27 5.31 5.34 5.39 5.42 5.46 5.50 5.54 5.58
61 5.23 5.27 5.31 5.35 5.39 5.43 5.47 5.52 5.56 5.60 5.64
62 5.27 5.31 5.35 5.39 5.44 5.48 5.53 5.57 5.62 5.67 5.71
63 5.31 5.35 5.39 5.44 5.49 5.53 5.58 5.63 5.68 5.73 5.78
64 5.34 5.39 5.44 5.48 5.53 5.59 5.64 5.69 5.74 5.79 5.85
65 5.38 5.43 5.48 5.53 5.58 5.64 5.69 5.75 5.80 5.86 5.92
66 5.42 5.47 5.52 5.58 5.63 5.69 5.75 5.81 5.87 5.93 5.99
67 5.45 5.51 5.56 5.62 5.68 5.74 5.80 5.87 5.93 6.00 6.06
68 5.49 5.55 5.61 5.67 5.73 5.80 5.86 5.93 6.00 6.06 6.00
69 5.53 5.59 5.65 5.71 5.78 5.85 5.92 5.99 6.06 6.13 6.20
70 5.56 5.63 5.69 5.76 5.83 5.90 5.97 6.05 6.13 6.21 6.29
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY
FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT IF ASSUMED
FIXED ANNUITY BENEFIT BASE RATE OF NET INVESTMENT RETURN IS
---------------------- -------------------------------------
3 1/2% 5%
------ --
AGE MALES FEMALES MALES FEMALES MALES FEMALES
--- ----- ------- ----- ------- ----- -------
60 5.88 4.99 5.43 4.80 6.36 5.70
61 6.04 5.11 5.57 4.90 6.50 5.81
62 6.21 5.24 5.72 5.02 6.65 5.91
63 6.38 5.38 5.88 5.13 6.81 6.03
64 6.57 5.53 6.05 5.25 6.97 6.75
65 6.77 5.68 6.23 5.39 7.16 6.28
66 6.98 5.84 6.43 5.54 7.35 6.43
67 7.19 6.01 6.64 5.70 7.56 6.58
68 7.42 6.20 6.87 5.87 7.79 6.76
69 7.67 6.39 7.11 6.06 8.03 6.96
70 7.93 6.61 7.38 6.27 8.30 7.15
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average New Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
PF 14112CT Page 18
<PAGE>
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT
The Contract constitutes the entire Contract between the parties and the
provisions of the Contract alone will govern with respect to the rights and
obligations of Equitable. The provisions of the Contract will be applied
separately with respect to each Participant. Nothing in the enrollment form
referred to in Section 1.05, the Plan or trust agreement referred to in Section
4.10 nor any modification, amendment, or supplement to any such documents will
in any way be construed to enlarge, change, vary or in any other way affect the
obligations of Equitable as expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE
Equitable reserves the right to amend the Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
shall include, but not be limited to, the right to conform the Contract and any
certificate to reflect changes in the Code, or in regulations or published
rulings of the Internal Revenue Service, so that each such certificate will
continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY
The entire interest of any Participant under the Contract is nonforfeitable.
No interest of a Participant under the Contract may be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law, no such amount will in any way
be subject to any claim against such payee.
SECTION 4.04 PARTICIPATION IN SURPLUS
The Contract and all other contracts in the same class of contracts shall be
combined for the purpose of ascertaining the annual surplus of Equitable to be
apportioned to said contracts as a dividend, and the portion of any such
dividend that is to be allocated to the Contract shall be determined by
Equitable. The participation of this class of contracts in annual surplus is,
however, expected to be minimal. Any amount so allocated to the Contract shall
be payable as of January 1 of the calendar year in which a dividend is
apportioned and will be payable in cash and shall be equitably allocated by
Equitable to the Guaranteed Interest Accounts maintained hereunder for
Participants.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.05 BENEFICIARY
Each Participant, as of such Participant's Participation Date is to provide
Equitable with an initial designation of the beneficiary entitled to receive any
death benefit payable with respect to such Participant pursuant to Section 2.09.
The Participants may change such designation form time to time during such
Participant's lifetime and while Accounts for such Participants are being
maintained hereunder. Any such designation or change will be made by written
notice in a form satisfactory to Equitable. A change will, upon receipt at a
designated Equitable Office, take effect as of the time the written notice was
signed, whether or not the Participant is living on the date of receipt, but
without further liability as to any payment or other settlement made by
Equitable before receipt of such change.
Unless otherwise specified in the designation, if a Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant and if more than one survive they
will share equally.
PF 14112CT Page 19
<PAGE>
GENERAL PROVISIONS (continued)
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.09 for which there is no designated beneficiary living at the death of
the Participant will be payable in a single sum to the children of the
Participant who survive the Participant, in equal shares, or should none
survive, then to the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.06 DISQUALIFICATION
In the event that an annuity purchased hereunder with respect to a Participant
fails to qualify as an Annuity as described in Section 1.03, Equitable shall
have the right, upon receiving notice of such fact before the Retirement Date,
to terminate participation with respect to such participant under the Contract
and pay to such Participant the amount in the Account maintained with respect to
such Participant less a deduction for the appropriate part attributable to such
Participant of any Federal income tax payable by Equitable which would not have
been payable if such Participant had an Annuity under the Contract.
SECTION 4.07 FUTURE PARTICIPANTS
Equitable reserves the right at its sole discretion to curtail or prohibit
further enrollment as Participants under the contract of any individuals who are
not currently participating under the Contract as of such date of curtailment or
prohibition.
SECTION 4.08 DEFERMENT
Payments by Equitable from the Participant's Guaranteed Interest Account
pursuant to the provisions of Section 2.06, Sections 2.07, 207A and 2.07B, and
Section 2.09, or any commuted payments arising from a Fixed Annuity Benefit
pursuant to Section 3.05, may be deferred for up to six months after receipt
of a written request for such surrender or withdrawal, or receipt of due proof
of death of the Participant, respectively, or receipt of due documentation for
such commutation payment pursuant to Section 3.05. Interest in the current
Guaranteed Interest Rate for such Participant's Guaranteed Interest Account will
be allowed on any such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable form the Participant's
Stock Account or Money Market Account pursuant to the provisions of Section
2.06, Sections 2.07, 2.07A and 2.07B, and Section 2.09, or any commuted payments
arising from a Variable Annuity Benefit pursuant to Section 3.05. will be made
within seven days after receipt of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant, respectively,
or receipt of due documentation for such commutation payment pursuant to Section
3.05.
During any period when (i) the sale of securities or the determination of the
New Accumulation Unit Value or the Average New Annuity Unit Value is not
reasonably practicable because any emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or trading
on such Exchange is restricted, or (ii) the Securities and Exchange Commission
may by order permit postponement for the protection of persons having interests
in the Separate Accounts, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of Cash
Values and Annuity Values, arising from an amount in a Participant's Stock
Account or Money Market Account;
(b) to defer payment of any portion of the death benefit arising from an amount
in a Participant's Stock Account or Money Market Account;
(c) to defer the payment of any Variable Annuity Benefit under the Contract or
the application of any such Benefit to provide for any other payment called for
by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to provide
any Annuity Benefit permitted under the Contract.
SECTION 4.09 ANNUAL NOTICE
At the end of each Participation Year up to and including the Retirement Date,
Equitable will furnish the Participant with a notice showing as of a specified
recent date (1) the Annuity Value of the Guaranteed
PF 14112CT Page 20
<PAGE>
GENERAL PROVISIONS (continued)
Interest Account, (2) the total number of Accumulation Units credited to the
Stock Account and Money Market Account, (3) the New Accumulation Unit Values,
(4) the sum of the Cash Values of the Guaranteed Interest Account, Stock Account
and Money Market Account and (5) the amount of death benefit payable with
respect to the Participant. After the Retirement Date Equitable will notify the
Participant of the number of Annuity Units and the Average New Annuity Unit
Value used in determining the amount of each Variable Annuity Benefit payment,
if any.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY
The sole responsibility of the Contract Holder is to serve as party to the
Contract. The Contract Holder will have no responsibility for the administration
of any Plan or Agreement, for payments to the Guaranteed Interest Account or
Stock Account, or any payments or other distributions hereunder. Equitable will
deal with the Contract Holder in accordance with the terms and conditions of the
trust agreement pursuant to which the Contract Holder agreed to act as such and
with the Contract and in such manner as the Contract Holder and Equitable may
agree, without the consent of any other person. Any Employer making
Contributions under the Contract shall be deemed to have adopted and accepted
the trust agreement as part of the Plan or Agreement with respect to which such
Contributions are made.
SECTION 4.11 AGE AND SEX
If the Annuitant's age or sex has been misstated, any benefits will be those
which would have been purchased at the correct age and sex. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year and such interest will be deducted from or added to benefits
falling due thereafter.
Agreed to by:
UNITED STATES TRUST COMPANY OF NEW YORK
By /s/ (signature illegible)
---------------------------------------
Title Senior Vice President
------------------------------------
Dated May 27, 1982
------------------------------------
At New York, NY
---------------------------------------
FOR THE EQUITABLE
By /s/ Coy Eklund
--------------------------------------
Chairman of the Board
By /s/ Rodney L. Enochs
--------------------------------------
Vice President and Secretary
Date of Issue May 1, 1982
---------------------------
PF 14112CT Page 21
<PAGE>
Attached to and made part of Group Annuity Contract No. 11930CT
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective August 26, 1983, said contract and riders
are amended as follows:
1. with respect to Section 1.18A Cash Value -- New Participants
a. the term "25 Participation Years" contained in the paragraph entitled
"No Withdrawal Charge" is changed to "12 Participation Years,"
b. the paragraph entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: Within the first three
Participation Years with respect to the Participant, the withdrawal
charge equals the lesser of (a) or (b) where:
(a) equals 6% of the sum of the Annuity Values of such Accounts.
(b) is an amount equal to the excess, if any, of (i) 8% of the
cumulative contributions made on behalf of such Participant over
(ii) the cumulative total of any withdrawal charges made pursuant
to sections 2.07 and 2.07A.
c. the paragraph entitled "Withdrawal Charge After Five Years" is replaced
by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After the completion of three
Participation Years with respect to the Participant, the withdrawal
charge equal the lesser of (a) or (b) where:
(a) equals
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Values of such
Accounts over (ii) the Free Corridor Amount defined in Section
2.07C.
(b) is the excess, if any, of (i) 8% of the total contributions made on
behalf of such Participant during the current Participation Year and
the preceding nine Participation Years over (ii) the cumulative total
of any withdrawal charges made pursuant to Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account and Money
Market Account will be in the same proportion as are the Annuity values of
such Accounts.
PF 17002CT
<PAGE>
2. with respect to Section 1.18B Cash Value -- Existing Participants
a. the term "20 Participation Years" contained in the paragraph entitled
"No Withdrawal Charge" is changed to "12 Participation Years,"
b. the paragraph entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: Within the first three
Participation Years with respect to the Participant, the withdrawal
charge equals the sum of the charges described in subsections (a) and
(b) below; provided, however, that such charge does not exceed the
amount described in subsection (c) below where:
(a) is an amount equal to 2% of any Preferred Withdrawable Amounts
(defined in Section 2.07B) that have not previously been withdrawn
pursuant to Sections 2.07 and 2.07B.
(b) is an amount equal to
6% during the first five Participation Years
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of any Regular Withdrawable Amounts (defined in Section 2.07B)
that have not previously been withdrawn pursuant to Section 2.07
and 2.07B.
(c) is an amount equal to the sum of (a) above, and 6% of the excess,
if any, of (i) the sum of the Annuity Values of such Accounts over
(ii) the cumulative total of Equitable Transferred Funds made with
respect to the Participant that have not previously been withdrawn
pursuant to Sections 2.07 and 2.07B.
c. the paragraph entitled "Withdrawal Charge After Five Years" is replaced
by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After three Participation Years
have been completed with respect to the Participant, Equitable (i) will
first withdraw, pursuant to Section 2.07B, the Free Corridor Amount
defined in Section 2.07C and (ii) next withdraw the remaining portion
of the sum of the Annuity Values of such Accounts. A withdrawal charge
will apply to the amount in (ii) above, and will equal the sum of the
charges described in subsections (a) and (b) of the preceding
subsection; provided, however, that such charge will not exceed an
amount equal to the lesser of the charges defined in (d) and (e) below:
(d) is an amount equal to the sum of (a) in the preceding subsection,
and
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess, if any, of (i) the sum of the Annuity Values of
such Accounts (after withdrawal of the Free Corridor Amount) over
(ii) the cumulative total of Equitable Transferred Funds made on
behalf of the Participant that have not previously been withdrawn
pursuant to Sections 2.07 and 2.07B.
(e) is an amount equal to the excess, if any, of (1) the sum of (i) 2%
of the first $10,000 of Equitable Transferred Funds made during
the current Participation Year and the preceding nine
Participation Years and (ii) 8% of all other contributions
(excluding Equitable Transferred Funds) made on behalf of such
Participant during the current Participation Year and the
preceding nine completed Participation Years over (2) the
cumulative total of any withdrawal charges made pursuant to
Sections 2.07 and 2.07B.
The Cash Values of the Guaranteed Interest Account, Stock Account and
Money Market Account will be in the same proportion as are the Annuity
Values of such accounts.
3. with respect to Section 2.07A Partial Withdrawals -- New Participants
a. the term "25 Participation Years" contained in the provision entitled
"No Withdrawal Charge" is changed to "12 Participation Years;"
PF 17002CT
<PAGE>
b. the provision entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: If the Participant has not
completed three Participation Years under the Contract, such withdrawal
charge will equal the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the total amount to be withdrawn from
the Accounts (including such charge) pursuant to this paragraph.
(b) is the excess, if any, of (i) 8% of the cumulative total of
Contributions made on behalf of such Participant over (ii) the
cumulative total of any prior withdrawal charges made pursuant to
this Section.
c. the provision entitled "Withdrawal Charge After Five Years" is replaced
by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After the completion of three
Participation Years with respect to the Participant, there will be no
withdrawal charge if the amount of partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts
an amount equal to the Free Corridor Amount, and (ii) then withdraw an
amount equal to the excess of the amount requested over the Free
Corridor Amount, plus a withdrawal charge. Such withdrawal charge will
be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn (including such charge) pursuant to (ii)
of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of
contributions made on behalf of such Participant during the
current Participation Year and the nine preceding Participation
Years over (ii) the cumulative total of any prior withdrawal
charges made pursuant to this Section.
4. with respect to Section 2.07B Partial Withdrawals -- Existing Participants
a the term "20 Participation Years" contained in the provision entitled
"No Withdrawal Charge" is changed to "12 Participation Years;"
b. the provision entitled "Withdrawal Charge Within Fist Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: Within the first three
Participation Years with respect to the Participant, the withdrawal
charge equals the sum of the charges described in subsections (a), (b),
(c) and (d) below:
(a) With respect to any withdrawals of Preferred Withdrawable
Amounts, a charge of 2% of such withdrawals.
(b) With respect to any withdrawals of Free Withdrawable Amounts, no
charge.
(c) With respect to any withdrawals of Regular Withdrawable Amounts, a
charge of 6% of such withdrawals.
(d) With respect to any withdrawals of amounts other than the amounts
in (a), (b) and (c) above, no charge.
c. the provision entitled "Withdrawal Charge After Five Years" is replaced
by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After the completion of three
Participation Years with respect to the Participant, there will be no
withdrawal charge if the amount of the partial withdrawal requested is
not greater than the Free Corridor Amount defined in Section 2.07C.
PF17002CT
<PAGE>
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (1) first withdraw from such Accounts
an amount equal to the Free Corridor Amount, and (2) then withdraw from
such Accounts an amount equal to the excess of the amount requested
over the Free Corridor Amount, plus a withdrawal charge. Such
withdrawal charge will equal the sum of the charges described in (a),
(b) and (d) above, plus with respect to any withdrawals of Regular
Withdrawable Amounts, a charge of
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
provided, however, that in no event will such charge exceed an amount
equal to the following: The excess, if any, of (1) the sum of (i) 2% of
the first $10,000 of Equitable Transferred Funds made during the
current Participation Year and the preceding nine Participation Years
and (ii) 8% of all other Contributions (excluding Equitable Transferred
Funds) made on behalf of the Participant during the current
Participation Year and the preceding nine completed Participation Years
over (2) the cumulative total of any prior withdrawal charges made
pursuant to this Section.
Whenever an amount is withdrawn from such Accounts that is not greater
than the current Free Corridor Amount, such amount is considered to be
(1) first, a withdrawal of Regular Withdrawable Amounts, (2) next, a
withdrawal of Preferred Withdrawable Amounts, (3) next, a withdrawal of
Free Withdrawable Amounts, and (4) lastly, a withdrawal of amounts
other than the amounts in (1), (2), or (3) above. However, no charge
will be assessed with respect to the portion of the withdrawal up to
the current Free Corridor Amount.
5. with respect to Section 2.07C Free Corridor Amount, the term "five
Participation Years" is changed to "three Participation Years."
Agreed to by:
UNITED STATES TRUST COMPANY OF NEW YORK FOR THE EQUITABLE
By /s/ William H. Schroeder By /s/ John B. Carter
------------------------------ -------------------------
President
Title Vice President By /s/ Rodney L. Enochs
----------------------------- -------------------------
Vice President and
Secretary
Dated Aug 19, 1983 Date of Issue
----------------------------- ----------------
At New York, N. Y.
--------------------------------
PF 17002CT
<PAGE>
This amendment was approved by the New York Insurance Department under an
accelerated procedure to assist employers in complying with the United States
Supreme Court decision in Arizona v. Norris. The Department has reserved the
right to require changes in this amendment to comply with applicable New York
law and regulations.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ William H. Schroeder By /s/ John B. Carter
------------------------ ------------------
President
Title Vice President By /s/ Rodney L. Enochs
-------------- --------------------
Vice President and Secretary
Dated Dec 15 1983 Date of Issue
----------- ---------------
At New York, N.Y.
--------------
PF17007CT
<PAGE>
Attached to and made part of Group Annuity Contract No. 11930CT
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective December 12, 1983, said contract and riders
are amended as follows:
1. all references in the contract to the Annuitant's sex are deleted.
2. the phrase "3 1/2% interest and the 1971 Equitable Annuity Mortality Table"
and the phrase "1979 Equitable Annuity Mortality" appearing in Section 3.04
Amount of Annuity Benefits shall be changed to "3 1/2% interest and the 1983
Individual Annuity Mortality Table adjusted to a unisex basis based on a
50-50 split of males and females" and "the projected 1983 Basic Table
adjusted to a unisex basis based on a 50-50 split of males and females,"
respectively, wherever they appear.
3. the Tables of Guaranteed Annuity Payments appearing in Section 3.05 Payment
of Annuity Benefits, are replaced by the following Tables.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM
-- 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
Age
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.54 4.58 4.62 4.66 4.70 4.74 4.77 4.81 4.84 4.88 4.91
61 4.62 4.67 4.71 4.76 4.81 4.84 4.88 4.91 4.95 4.99
62 4.72 4.76 4.81 4.85 4.90 4.94 4.98 5.02 5.06
63 4.81 4.86 4.91 4.96 5.01 5.06 5.10 5.14
64 4.92 4.97 5.02 5.08 5.13 5.17 5.22
65 5.03 5.09 5.15 5.20 5.26 5.31
66 5.15 5.21 5.27 5.33 5.39
67 5.28 5.34 5.40 5.47
68 5.41 5.48 5.55
69 5.56 5.63
70 5.71
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM
100% CONTINUATION -- ASSUMED BASE RATE OF NET INVESTMENT RETURN OF 3-1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
Age
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.40 4.44 4.48 4.51 4.55 4.58 4.61 4.65 4.68 4.71 4.74
61 4.48 4.52 4.56 4.60 4.64 4.67 4.71 4.74 4.78 4.81
62 4.56 4.60 4.65 4.69 4.73 4.77 4.80 4.84 4.88
63 4.65 4.69 4.74 4.78 4.83 4.87 4.91 4.95
64 4.74 4.79 4.84 4.89 4.93 4.98 5.02
65 4.85 4.90 4.95 5.00 5.05 5.10
66 4.95 5.01 5.06 5.11 5.17
67 5.07 5.12 5.18 5.24
68 5.19 5.25 5.32
69 5.32 5.39
70 5.46
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM
100% CONTINUATION -- ASSUMED BASE RATE OF NET
INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
Age
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.27 5.30 5.34 5.37 5.41 5.44 5.47 5.51 5.54 5.57 5.59
61 5.34 5.38 5.42 5.46 5.49 5.53 5.57 5.60 5.63 5.66
62 5.42 5.46 5.50 5.54 5.58 5.62 5.65 5.69 5.73
63 5.50 5.55 5.59 5.63 5.67 5.71 5.75 5.79
64 5.59 5.64 5.69 5.73 5.78 5.82 5.86
65 5.69 5.74 5.79 5.84 5.89 5.93
66 5.79 5.85 5.90 5.95 6.00
67 5.90 5.96 6.02 6.08
68 6.02 6.08 6.15
69 6.15 6.22
70 6.24
</TABLE>
PF17007CT
<PAGE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT IF ASSUMED BASE
FIXED ANNUITY BENEFIT RATE OF NET INVESTMENT RETURN IS
--------------------- --------------------------------
Age 3 1/2% 5%
- --- ------ --
60 5.29 5.08 5.97
61 5.41 5.19 6.08
62 5.55 5.31 6.20
63 5.69 5.44 6.33
64 5.85 5.58 6.46
65 6.01 5.73 6.61
66 6.19 5.89 6.77
67 6.37 6.06 6.94
68 6.58 6.24 7.12
69 6.79 6.43 7.31
70 7.02 6.64 7.52
<PAGE>
Attached to and made part of Group Annuity Contract No. 11930CT
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective May 1, 1984 said contract and riders are
amended as follows:
1. The term "Stock Account" has been changed to "Stock Account, Balanced
Account and Aggressive Stock Account" wherever it appears except as
provided in items 4 and 5 of this rider.
2. The Section entitled "The Separate Accounts" is amended as follows:
a. the following Accounts have been added:
Name Investments
---- -----------
Separate Account J Primarily common stocks and other
equity-type investments, publicly
traded debt securities and short-term
money market instruments.
Separate Account K Primarily common stocks issued by
high quality small and intermediate
size companies with strong growth
prospects.
b. The sentences
"Assets of the Separate Accounts attributable to the Contract shall be
subject to a charge at the rate of 1.75% a year, consisting of .15% for
investment management, .35% for financial accounting, .35% for the
annuity rate guarantee and the minimum death benefit, and .90% for
expenses and expense risk. The charge shall be made in connection with
(c) of the Net Investment factor provision in Section 1.16"
are amended to read as follows:
i. for Participants with a Participation Date prior to May 1, 1984
"Assets of Separate Account A and Separate Account E attributable to
the Contract shall be subject to a charge at the rate of 1.75% a year,
consisting of .15% for investment management, .35% for financial
accounting, .35% for the annuity rate guarantee and the minimum death
benefit, and .90% for expenses and expense risk. Assets of Separate
Account J and Separate Account K attributable to the Contract shall be
subject to a charge at the rate 1.75% a year, for investment
management, financial accounting, the annuity rate guarantee and the
minimum death benefit, and expenses and expense risk. The percentage
allocation of the components of the charges for Separate Account J and
Separate Account K are not necessarily allocated in the same amounts as
for Separate Account A and Separate Account E. The charge shall be made
in connection with (c) of the Net Investment Factor provision in
Section 1.16"
ii. for Participants with a Participation Date on or after May 1, 1984
"Assets of the Separate Accounts attributable to the Contract shall be
subject to a charge at the rate of 1.75% a year, for investment
management, financial accounting, the annuity rate guarantee and the
minimum death benefit, and expenses and expense risk. The charge shall
be made in accordance with (c) of the Net Investment Factor provision
in Section 1.16."
PF 17014CT
<PAGE>
3. The Section entitled "New Accumulation Unit Value" is amended by the
addition of the following Accounts:
Account Value Date
------- ----- ----
Separate Account J $10.00 As of May 1, 1984
Separate Account K $10.00 As of May 1, 1984
4. The title and the first two sentences of the Section entitled "Stock and
Money Market Accounts" shall read as follows:
STOCK, BALANCED, AGGRESSIVE STOCK AND MONEY MARKET ACCOUNTS
Equitable maintains a Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account under the Contract for each Participant
with respect to whom Contributions are made. Any amount allocated to the
(1) Stock Account becomes part of Separate Account A, (2) Balanced Account
becomes part of Separate Account J, (3) Aggressive Stock Account becomes
part of Separate Account K, and (4) Money Market Account becomes part of
Separate Account E.
5. The Section entitled "Transfers Among Accounts" is amended to read as
follows:
TRANSFERS AMONG ACCOUNTS
At any time before a Participant's Retirement Date, such Participant, upon
written request, may transfer all or part of the amounts maintained for the
Participant to one or more of the other Accounts maintained for such
Participant as follows:
(1) amounts in the Guaranteed Interest Account, Stock Account, Balanced
Account and Aggressive Stock Account may be transferred among such Accounts;
(2) amounts in the Money Market Account may be transferred to the other
Accounts. Such transfers will be made as of the date Equitable receives such
request, and will be subject to Equitable's rules in effect at the time of
transfer. No transfers are permitted from the Guaranteed Interest Account,
Stock Account, Balanced Account or Aggressive Stock Account maintained for
the Participant to the Money Market Account. Notwithstanding the above,
transfers to the Balanced Account may be prohibited by Equitable upon 30
days written notice to the Participant.
6. The provision entitled "Retirement Date" is amended as follows:
The sentence "No Retirement Date shall be earlier than the date of
attainment of age 55 years" is changed to "No Retirement Date shall be
earlier than the Participant's 55th birthday or later than the Participant's
75th birthday."
7. The provision entitled "Election and Commencement of Annuity Benefits" is
amended by the addition of the following sentence to the end of the fifth
paragraph:
The Participant may only elect an annuity form pursuant to which either (i)
the Annuity Value or Cash Value, whichever is applicable, will be paid to
the Participant and the Participant's beneficiary over a period not
exceeding the joint lives of the Participant and the Participant's spouse or
(ii) more than 50% of the Annuity Value or Cash Value, whichever is
applicable, will be paid to the Participant during the Participant's life.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Agreed to by:
UNITED STATES TRUST COMPANY OF NEW YORK
By /s/ William H. Schroeder
----------------------------------------------
Title Vice President
-------------------------------------------
Dated 06/27/84
-------------------------------------------
At N.Y., N.Y.
-------------------------------------------
FOR THE EQUITABLE
By /s/ John B. Carter
----------------------------------------------
President
By /s/ Rodney L. Enochs
----------------------------------------------
Vice President and Secretary
Date of Issue
------------------------------------
PF 17014CT
<PAGE>
Attached to and made part of Group Annuity Contract No. 11930CT
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective October 1, 1985, said contract and riders
are amended as follows:
Unless otherwise restricted by the Plan, the Participant may get a loan under
the certificate before the Retirement Date. The Participant's total Annuity
Value (including the loan reserve account as described below) will be the sole
security for the loan. A loan is effected on the first day of the month
following the date the Participant's loan agreement form is approved by the
Equitable.
The amount of the loan may not be more than (i) 80% of the total Annuity Value
under the certificate, if such total Annuity Value is greater than or equal to
$3,750 and less than $12,500, (ii) $10,000, if the total Annuity Value is
greater than or equal to $12,500 and less than $20,000, and (iii) 50% of the
total Annuity Value if the total Annuity Value is greater than $20,000, but in
no event shall the loan amount exceed $50,000. The minimum loan permitted is
$3,000. The total Annuity Value is the value as of the loan effective date. Only
one outstanding loan is permitted at a time under a certificate and the
Participant will not be permitted to get a new loan until 60 days has elapsed
since the prior loan was repaid. As a condition for granting a loan, Equitable
will require the Participant to represent that the loan amount requested, when
aggregated with loans (principal plus interest) from all qualified plans of the
Participant's Employer, does not exceed the greater of $10,000 or 50% of the
value of the Participant's non-forfeitable accrued benefits, and in no event
exceeds $50,000. Equitable may also require the Participant to elect out of
federal income tax withholding with respect to any interest and/or loan
principal that would otherwise be subject to withholding.
The loan term will be either (i) 5 years or (ii) 10 years, if the Participant
represents that the purpose of the loan is to acquire, build or substantially
rehabilitate a dwelling unit which within a reasonable period of time is to be
used by the Participant or a member of the Participant's family. In any event,
the loan term may not extend beyond the earlier of (i) the Retirement Date, (ii)
the date Equitable receives written notice to terminate the Participant's
participation under the Contract pursuant to Section 2.06, (iii) the date
Equitable pays a death benefit pursuant to Section 2.09, and (iv) any date
provided for such loans by future federal tax rules. Future federal tax rules
may also impose certain additional requirements to obtain the ten year loan
period described above. These requirements may also apply to existing ten year
loans.
On the loan effective date, Equitable will transfer to a loan reserve account an
amount equal to the sum of (i) the loan amount, which will earn interest at an
effective annual rate of 4% during the loan term and (ii) 25% of the loan
amount, which will earn interest at the Guaranteed Interest Rate, as defined in
the certificate. The Participant may specify which Accounts these amounts are to
be transferred from. In the absence of direction by the Participant, or if the
Participant's directions cover only part of the amount required to be
transferred to the loan reserve account, Equitable will transfer the required
(or additional required) amounts from each Account based on the proportion that
each Acccount's Annuity value bears to the total Annuity Values of all Accounts.
On each loan anniversary (or first business day thereafter, if the loan
anniversary is not a business day), interest earned at 4% during the prior year
will be transferred to the portion of the loan reserve account that earns
interest at the Guaranteed Interest Rate.
Equitable will charge loan interest at an effective annual rate of 6% which is
due on each loan anniversary. If annual loan interest (except interest due at
the end of the loan term) is not received by Equitable's Processing office
within 15 days after the due date, Equitable will deduct and treat as a partial
withdrawal from the portion of the loan reserve account which earns interest at
the Guaranteed Interest Rate an amount sufficient to pay the interest plus any
applicable withdrawal charges and any required income tax withholding.
The loan may be repaid in part on any loan anniversary, and may be repaid in
full at any time on or after the first loan anniversary. However, any payments
received will first be applied to interest due, with the balance applied towards
repayment of the loan. Any partial loan repayment will result in a transfer of
the amount repaid from (i) the portion of the loan reserve account that earns 4%
<PAGE>
to (ii) the portion of the loan reserve account that earns the Guaranteed
Interest Rate. Sixty days after a partial repayment is made, the amount repaid
will be transferred from the loan reserve account to the Guaranteed Interest
Account and may be withdrawn, transferred, or annuitized as described in the
certificate.
No partial withdrawals or transfers from the loan reserve account may be made by
the Participant.
Upon full repayment of the loan by the Participant, Equitable will credit the
Guaranteed Interest Rate to the full loan reserve account. Sixty days after the
loan is fully repaid, any amounts remaining in the loan reserve account will be
transferred to the Guaranteed Interest Account and may be withdrawn, transferred
or annuitized as described in the certificate.
If the remaining loan principal and accrued interest are not paid on or prior to
the end of the loan terms, Equitable will deduct from the loan reserve account
and treat as a partial withdrawal an amount sufficient repay the principal and
accrued interest, plus any applicable withdrawal charges and required income tax
withholding. Sixty days after the end of the loan term, any amounts remaining in
the loan reserve account will be transferred to the Guaranteed Interest account
and may be withdrawn, transferred or annuitized as described in the certificate.
The Section entitled, "Free Corridor Amount", is amended to read as follows:
The term "Free Corridor Amount" with respect to a Participant who has completed
three Participation Years means an amount equal to the excess, if any, of (i)
10% of the sum of (a) the Annuity Values of the Stock Account, Money Market
Account, Guaranteed Interest Account, Balanced Account, and Aggressive Stock
Account and (b) the value of any loan reserve account, held with respect to the
participant over (ii) cumulative prior withdrawals made pursuant to Section
2.07, 207A, or 2.07B or pursuant to the repayment of interest or principal on a
loan, in the current Participation Year with respect to the Participant.
The first sentence of Section 2.08, "Annual Administrative Charge" is replaced
by the following:
As of the last day of each Participation Year before a Participant's Retirement
Date, Equitable will withdraw from the Guaranteed Interest Account, Stock
Account, Money Market Account, Balanced Account, and Aggressive Stock Account
maintained under the Contract, as to the Contributions remitted with respect to
such Participant, an annual administrative charge equal to the lesser of $30 or
2% of the sum of (i) (a) the Annuity Values of the Guaranteed Interest Account,
Stock Account, Money Market Account, Balanced Account and Aggressive Stock
Account and (b) the amount of any loan reserve account held, at the end of that
Participation Year and (ii) any withdrawals made from such Accounts pursuant to
Section 2.07, 2.07A, or 2.07B and from any loan reserve account, during that
Participation Year. The charge will be allocated between (i) the Stock Account,
(ii) Money Market Account, (iii) Balanced Account, (iv) Aggressive Stock Account
and (v) the Guaranteed Interest Account and loan reserve account, in proportion
to the Annuity Values of (i), (ii), (iii), (iv) and (v), at the end of the
Participation Year. The portion of the charge attributable to (v) above will be
first withdrawn from the Guaranteed Interest Account and then, if the Annuity
Value of the Guaranteed Interest Account is not sufficient, the remaining
allocation will be withdrawn from the portion of the portion of the loan reserve
account that earns interest at the Guaranteed Interest Rate.
The Section entitled, "Death Benefit", is amended by adding the words "and from
any loan reserve account" after word "Accounts" in the third sentence of that
Section, and the words "and amounts in the loan reserve account" after the words
"Money Market Account" in the fourth sentence of that section.
This Endorsement shall not change any other provisions of the Contract.
Agreed to by:
UNITED STATES TRUST COMPANY OF NEW YORK
By _________________________________
Title ______________________________
Dated ______________________________
At _________________________________
FOR THE EQUITABLE
By _________________________________
PRESIDENT
By__________________________________
VICE PRESIDENT AND SECRETARY
Date of Issue_______________________
<PAGE>
Attached to and made part of Group Annuity Contract No. 11930CT
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective January 1, 1986, said contract and riders
are amended as follows:
1. With respect to Section 1.18A CASH VALUE - NEW PARTICIPANTS, the provisions
entitled "WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS" and "WITHDRAWAL
CHARGE AFTER THREE YEARS" are replaced by the following:
WITHDRAWAL CHARGE: The withdrawal charge equals the lesser of (a) or (b)
where:
(a) equals
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Values of such Accounts
over (ii) the Free Corridor Amount defined in Section 2.07C.
(b) is the excess, if any, of (i) 8% of the total contributions made on
behalf of such Participants during the current Participation Years over
(ii) the cumulative total of any withdrawal charges made pursuant to
Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account will be in the
same proportion as are the Annuity Values of such Accounts.
2. With respect to Section 2.07A PARTIAL WITHDRAWALS - NEW PARTICIPANTS, the
provisions entitled "WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS" AND
"WITHDRAWAL CHARGE AFTER THREE YEARS" are replaced by the following:
WITHDRAWAL CHARGE: There will be no withdrawal charge if the amount of
partial withdrawal requested is not greater than the Free Corridor Amount
defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts an
amount equal to the Free Corridor Amount, and (ii) then withdraw an amount
equal to the excess of the amount requested over the Free Corridor Amount,
plus a withdrawal charge. Such withdrawal charge will be equal to the lesser
of (a) or (b) where:
(a) is an amount equal to
6% during Participantion Years 1,2,3,4 and 5
5% during Participation Years 6,7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn (including such charge) pursuant to (ii) of
the preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of
contributions made on behalf of such Participant during the current
Participation Year and the nine preceding Participation Years over
(ii) the cumulative total of any prior withdrawal charges made
pursuant to this Section.
3. With respect to Section 2.07C FREE CORRIDOR AMOUNT:
a. the term "who has completed three Participation Years" is changed to
"who has completed three Participation Years or attained age 59-1 2"
b. the following sentence is added:
With respect to a Participant who has not completed three
Participation Years or attained age 59-1/2, the Free Corridor Amount
is zero.
SPECIMEN VICE PRESIDENT AND SECRETARY
SPECIMEN PRESIDENT
PF 17016CT
<PAGE>
Attached to and made part of Group Annuity Contract No. 11930CT
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective January 1, 1986 for Participants with a
Participation Date on or after January 1, 1986, said contract and riders are
amended as follows:
1. With respect to the provision entitled NO WITHDRAWAL CHARGE, within the
Section entitled CASH VALUE -- NEW PARTICIPANTS:
the term "the Participant's attainment of age 70 years and six months, or
(iii) the completion of 12 Participation Years with respect to such
Participant, or (iv)" is changed to "the completion of 12 Participation Years
with respect to such Participant, or (iii)"
2. With respect to the provision entitled NO WITHDRAWAL CHARGE within the
Section entitled PARTIAL WITHDRAWAL -- NEW PARTICIPANTS:
the term "such Participant's attainment of age 70 years and six months, or
(iii) the completion of 12 Participation Years with respect to such
Participant, or (iv)" is changed to "the completion of 12 Participation Years
with respect to such Participant, or (iii)"
Agreed to by:
UNITED STATES TRUST COMPANY FOR THE EQUITABLE
OF NEW YORK
By By SPECIMEN
---------------------------------- ---------------------------------
PRESIDENT
Title By SPECIMEN
------------------------------- ---------------------------------
VICE PRESIDENT AND SECRETARY
Dated Date of Issue
------------------------------ ----------------------
At
--------------------------------
PF 17020CT
<PAGE>
Attached to and part of Group Annuity Contract No. 11930CT
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective January 1, 1985, said contract and riders
are amended as follows:
1. Section 1.02B entitle "Plan" is amended to read as follows:
"The term "Plan" means a program established by an Employer described in
clause (ii) of Section 1.01, for the purchase of Annuities on behalf of
employees under the Contract, which program is not exempt under 29 CFR ss
2510.3-2(f) and is therefore an "employee pension benefit plan" subject to
the requirements of Title I of the Employee Retirement Income Security Act
of 1974 ("ERISA") as it may be amended from time to time."
2. Section 1.03 entitled "Annuity" is amended to read as follows:
"The term "Annuity" means as annuity purchased in accordance with the terms
of an Agreement, Plan, or program, which annuity meets the requirements of
Section 403(b) of the Code."
3. In Section 1.11 entitled "Retirement Date" a new paragraph is added to read
as follows:
"If participation under the Contract is pursuant to the terms of a Plan,
the designation of, and any election to change the Retirement Date under
this Section 1.11 shall be made by the Participant in accordance with this
Section 1.11 and the terms of the Plan."
4. Section 2.06 entitled "Termination of Participation" is amended by the
addition of the following paragraph immediately after the end of the first
paragraph:
"In the event a Participant terminates participation under the Contract
pursuant to this Section 2.06, the Cash Values payable to such Participant
are not reduced by any withdrawal charges (as described in Section 1.18),
and the Participant is not a Participant in a Plan or Program that
restricts or imposes a penalty on such termination, then the Participant
will not be permitted to resume making Contributions under the Contract for
a period of twelve consecutive months following the date of termination.
The Participant may resume making Contributions on the first day of the
month coinciding with or next following the end of the twelve month
period."
5. New Section 3.06 is added to read as follows:
SECTION 3.06. SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS APPLICABLE TO
PLANS.
"If participation under the Contract is pursuant to the terms of a Plan,
then the provisions of this Section 3.06 shall supersede any contrary
provisions in the Contract and Certificate.
"Unless a married Participant and the Participant's spouse elect otherwise
in accordance with the terms of the Plan and as provided in this Section
3.06, as of Participant's Retirement Date, the Annuity Values of a
Participant's Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Accounts shall be paid to the
Participant in the form of a "Qualified Joint and Survivor Annuity." A
"Qualified Joint and Survivor Annuity" is an Annuity Benefit for the life of
the Participant with a survivor annuity for the life of the Participant's
spouse which is not less than 50% and not more than 100% of the annuity
which is payable during the joint lives of the Participant and the
Participant's spouse. If the Participant is not married and does not elect
otherwise, the Annuity Values shall be paid in the form of a life annuity."
"In addition, unless an optional form of benefit is elected pursuant to the
terms of the Plan and this Section 3.06, if a married Participant dies
before pay-
PF 17024CT
<PAGE>
ment of the Participant's Annuity Values or Cash Values have commenced,
then the death benefit described in Section 2.09, shall be paid in the form
of a life annuity for the Participant's spouse."
"The Participant may elect, on a form acceptable to his Employer and
Equitable, within the 90 consecutive day period before the date as of which
payment of the Annuity Values is to commence, not to receive payment in the
form of a Qualified Joint and Survivor Annuity, or, if the Participant is
unmarried, a life annuity, in which case the Participant may elect to
receive the Annuity Values or Cash Values, as the case may be, in any other
form of payment available under the terms of the Plan and this Contract. The
Participant may also elect, on a form acceptable to his Employer and
Equitable, on the first day of the Plan year in which the Participant turns
age 35 (or the date on which the Participant ceases to work for the employer
if earlier) for a Beneficiary other than the Participant's spouse to receive
the death benefit. An election under either of the two preceding sentences
must be consented to by the Participant's spouse in writing before a notary
or a representative of the Plan and must be limited to a benefit for a
specific Beneficiary. However, no spousal consent will be required if the
Participant can prove to the satisfaction of the Employer and Equitable,
that the Participant has no spouse or else that the spouse cannot be
located. Each election to designate a Beneficiary other than the
Participant's spouse must be consented to by the spouse and any election
made under this paragraph to waive the spouse's benefits may be revoked
without the consent of the spouse at any time prior to the date as of which
payments commence. Any consent to waive the spouse's benefits shall be valid
only with regard to the spouse who signs it. Any new waiver or change of
Beneficiary will require a new spousal consent."
"The provision requiring spousal consent in this Section 3.06 shall also
apply with regard to a Participant's election to terminate participation or
make partial withdrawals pursuant to Section 2.06 and 2.07 and with regard
to a Participant's taking a loan against the Cash Values of his Accounts
spouse's written consent, witnessed by a representative of the Plan or
notary, must be given on a form acceptable to the Employer and Equitable,
within the 90 consecutive day period prior to such payment, withdrawal, or
loan, unless the Participant can show that the Participant has no spouse or
that the spouse cannot be located."
"If the Annuity Values applied to provide the spousal benefits on the date
payment is to commence are in the aggregate less than $3,500, Equitable may
choose to make a payment in a single sum rather than in the form of a
Qualified Joint and Survivor Annuity or life annuity as describe herein.
Upon any payment made pursuant to this Section 3.06, Equitable will be
released from any and all liability for payment with respect to the
Contributions made for the Participant."
Agreed to by:
UNITED STATES TRUST COMPANY OF NEW YORK
By________________________________
Title_____________________________
Dated_____________________________
At________________________________
FOR THE EQUITABLE
By /s/ John B. Carter
----------------------------------------------
President
By /s/ Rodney L. Enochs
----------------------------------------------
Vice President and Secretary
Date of Issue_____________________
PF 17024CT
<PAGE>
Attached to and made part of Group Annuity Contract No. 11930CT between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
AND
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective July 1, 1986, said contract and riders are
amended as follows:
With respect to Section 2.08 ANNUAL ADMINISTRATIVE CHARGE, the first paragraph
is replaced by the following paragraph:
As of the last day of each Participation Year before a Participant's
Retirement Date, Equitable will withdraw from the Guaranteed Interest
Account, Stock Account, Money Market Account, Balanced Account and
Aggressive Stock Account maintained under the Contract, as to the
Contributions remitted with respect to such Participant, an annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i)
(a) the Annuity Values of the Guaranteed Interest Account, Stock Account,
Money Market Account, Balanced Account and Aggressive Stock Account and (b)
the amount of any loan reserve account held, at the end of the
Participation Year and (ii) any withdrawals made from such Accounts
pursuant to Section 2.07, 2.07A or 2.07B and from any loan reserve account
during that Participation Year. The charge will be allocated between (i)
the Stock Account, (ii) Money Market Account, (iii) Balanced Account, (iv)
Aggressive Stock Account and (v) the Guaranteed Interest Account and loan
reserve account, in proportion to the Annuity Values of (i), (ii), (iii),
(iv), and (v), at the end of the Participant Year. The portion of the
charge attributable to (v) above will be first withdrawn from the
Guaranteed Interest Account and then, if the Annuity Value of the
Guaranteed Interest Account is not sufficient, the remaining allocation
will be withdrawn from the portion of the loan reserve account that earns
interest at the Guaranteed Interest Rate.
Aggreed to by:
UNITED STATES TRUST COMPANY OF NEW YORK
By__________________________________________
Title_______________________________________
Dated_______________________________________
At__________________________________________
THE EQUITABLE LIFE ASSURANCE SOCIETY
By /s/ John B. Carter
-----------------------------------------
President
By /s/ Rodney L. Enochs
-----------------------------------------
Vice President and Secretary
Date of Issue_______________________________
PF 17032CT
<PAGE>
Attached to and made part of Group Annuity Contract No. 11930CT between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective July 1, 1986, said contract and riders are
amended as follows:
1. With respect to PART I - DEFINITIONS, the following section is added:
SECTION 1.14C PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity"
means an annuity not involving life contingencies issued by Equitable which
does not permit any prepayment of the unpaid principal.
2. With respect to SECTION 1.18 CASH VALUE, the following text replaces the
paragraphs under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
means an amount equal to the Annuity Values of such Accounts after the
earliest of the following occurrences:
(i) The later of (a) the completion of five Participation Years with respect
to such Participant and (b) the Participant's attainment of age 59 years and
6 months, or (ii) the completion of twelve Participation Years with respect
to such Participant, or (iii) the Participant's attainment of age 55, the
completion of five Participation Years with respect to such Participant and
the receipt by Equitable of a properly completed settlement election form in
order to apply the Annuity Values to purchase an Eligible Annuity Certain,
defined in Section 1.14B, or (iv) the completion of three Participation
Years with respect to such Participant and the receipt by Equitable of a
properly completed settlement election form in order to apply the Annuity
Values to purchase Period Certain Annuity, defined I Section 1.14C, where
the certain period of such Annuity is at least ten years. At all other
times, the sum of the Cash Values of such Accounts equals the sum of the
Annuity Values of such Accounts, less a withdrawal charge.
3. With respect to SECTION 2.07A PARTIAL WITHDRAWAL CHARGES, the following
paragraph replaces the paragraph under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, Equitable will withdraw from the Stock Account, Balanced
Account, Aggressive Stock Account, Money Market Account and Guaranteed
Interest Account an amount equal to the lesser of (a) the full amount of
partial withdrawal requested or (b) the sum of the Annuity Values of such
Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The later of (a) the completion
of five Participation Years with respect to such Participant and (b) such
Participant's attainment of age 59 years and 6 months, or (ii) the
completion of twelve Participation Years with respect to such Participant,
or (iii) the Participant's attainment of age 55, the completion of five
Participation years with respect to such Participant and the receipt by
Equitable of a properly completed settlement election form in order to apply
the Annuity Values to purchase an Eligible Annuity Certain, defined in
Section 1.14B, or (iv) the completion of three Participation Years with
respect to such Participant and the receipt by Equitable of a properly
completed settlement election form in order to apply the Annuity Values to
purchase a Period Certain Annuity, defined in Section 1.14C, where the
certain period of such Annuity is at least ten years. At all other times,
the sum of the Cash Values of such Accounts equals the sum of the Annuity
Values of such Accounts equals the sum of the Annuity Values of such
Accounts, less a withdrawal charge.
Agreed to by:
UNITED STATES TRUST COMPANY OF NEW YORK
By____________________________________
Title_________________________________
Dated_________________________________
At____________________________________
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
By____________________________________
President
By____________________________________
Vice President and Secretary
Date of Issue_________________________
PF 17036CT
<PAGE>
Attached to and part of Group Annuity Contract No. 11930CT between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, with respect to Plans issued in conjunction with
optional retirement programs or Plans adopted by universities, said Contract and
riders are amended as follows:
1. With respect to PART I -- DEFINITIONS, SECTION 1.18 CASH VALUE is replaced
by the following section:
SECTION 1.18 CASH VALUE
NO WITHDRAWAL CHARGE: With respect to a Participant, when withdrawals are
permitted under Section 2.07, the term "Cash Value" with respect to such
Participant's Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account means an amount equal to
the Annuity Values of such Accounts after the earliest of the following
occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such participant and (b) the Participant's attainment of age 59
1/2 years, or (ii) the completion of 12 Participation Years with respect to
such Participant, or (iii) the Participant's attainment of age 55, the
completion of five Participation Years with respect to such Participant and
the receipt by Equitable of a properly completed settlement election form
providing for the application of the Annuity Values to purchase an Eligible
Annuity Certain, defined in Section 1.14B or (iv) the completion of three
Participation Years with respect to such Participant and the receipt by
Equitable of a properly completed settlement election form providing for
the application of the Annuity Values to purchase a Period Certain Annuity,
defined in Section 1.14C, where the certain period of such annuity is at
least ten years. At other times, the sum of the Cash Values of such
Accounts equals the sum of the Annuity Values of such Accounts, less
withdrawal charge.
WITHDRAWAL CHARGE: When withdrawals are permitted under Section 2.07, the
withdrawal charge equals the lesser of (a) or (b) where;
(a) equals
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Values of such
Accounts over (ii) the Free Corridor Amount defined in Section 2.07B.
(b) is the excess, if any, of (i) 8% of the total Contributions made on
behalf of such Participant during the current Participation Year and
the preceding nine Participation Years over (ii) the cumulative total
of any withdrawal charges made pursuant to Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account
will be in the same proportion as are the Annuity Values of such
Accounts.
2. With respect to PART II-- PARTICIPANT'S ACCOUNT, SECTION 2.07 PARTIAL
WITHDRAWALS, the first paragraph is amended to read as follows:
PF 17037CT-U
<PAGE>
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions
under the terms of the Agreement or the Plan, whichever is applicable, or
to applicable laws and regulations, a Participant may elect by written
notice to Equitable to make a partial withdrawal from the Stock Account,
Balanced Account, Aggressive Stock Account, Money Market Account and the
Guaranteed Interest Account maintained for such Participant before such
Participant's Retirement Date.
3. With respect to PART II -- PARTICIPANT'S ACCOUNT, SECTION 2.07A PARTIAL
WITHDRAWAL CHARGES is replaced by the following:
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, when and to the extent withdrawals are permitted under Section
2.07, Equitable will withdraw from the Stock Account, Balanced Account,
Aggressive Stock Account, Money Market Account and Guaranteed Interest
Account an amount equal to the lesser of (a) the full amount of partial
withdrawal requested or (b) the sum of the Annuity Values of such Accounts,
provided the request for partial withdrawal is made after the earliest of
the following occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such Participant and (b) such Participant's attainment of age 59
1/2 years, or (ii) the completion of 12 Participation Years with respect to
such Participant, or (iii) the Participant's attainment of age 55, the
completion of five Participation Years with respect to such Participant and
the receipt by Equitable of a properly completed settlement election form
providing for the application of the Annuity Values to purchase an Eligible
Annuity Certain, defined in Section 1.4B, or (iv) the completion of three
Participation Years with respect to such Participant and the receipt by
Equitable of a properly completed settlement election form providing for
the application of the Annuity Values to purchase a Period Certain Annuity,
defined in Section 1.14C, where the certain period of such annuity is at
least ten years. At all other times, the sum of the Cash Values of such
Accounts equals the sum of the Annuity Values of such Accounts, less the
applicable withdrawal charge.
4. With respect to PART II -- PARTICIPANT'S ACCOUNT, SECTION 2.07A PARTIAL
WITHDRAWAL CHARGES, the third paragraph is amended to read as follows:
If the amount of the partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will, when and to the extent withdrawals are
permitted under Section 2.07, (i) first withdraw from such Accounts an
amount equal to the Free Corridor Amount, and (ii) then withdraw an amount
equal to the excess of the amount requested over the Free Corridor Amount,
plus a withdrawal charge. Such withdrawal charge will be equal to the
lesser of (a) or (b) where:
(a) is an amount equal to
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn (including such charge) pursuant to (ii) of
the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on
behalf of such Participant during the current Participation Year and
the preceding nine Participation Years over (ii) the cumulative total
of any withdrawal charges made pursuant this Section.
5. With respect to PART II -- PARTICIPANT'S ACCOUNT, SECTION 2.10 LOANS, the
first sentence is amended to read as follows:
The Participant is eligible for a loan under the Contract before the
Retirement Date, if permitted by the Plan or Agreement and if not
restricted by applicable laws and regulations.
PF 17037CT-U
<PAGE>
With respect to PART III -- ANNUITY BENEFITS, SECTION 3.03 ELECTION AND
COMMENCEMENT OF ANNUITY BENEFITS, the first, second and third paragraphs
are amended to read as follows:
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living,
the Annuity Values of such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market
Account shall be applied to provide the Normal Form of Annuity Benefit,
unless such Participant elects (i) to receive the Cash Value of such
Accounts in a single sum, if such election is permitted by the Plan or
Agreement, (ii) to receive not more than a specific percentage or dollar
amount of the Cash Value of such Accounts in a single sum (if permitted by
the Plan or Agreement) and to apply the remainder of the Cash Value to
provide an Annuity Benefit on any annuity form offered by Equitable, as
elected by the Participant, subject to Equitable's rules then in effect and
any applicable requirements under the Code, if such election is permitted
by the Plan or Agreement or (iii) to apply such Annuity Value or Cash
Value, whichever is applicable pursuant to the first paragraph of Section
3.04, to provide an Annuity Benefit on any other annuity form offered by
Equitable and permitted by the Plan or Agreement, as elected by the
Participant, subject to Equitable's rules then in effect and any applicable
requirements under the Code. A Participant can elect to divide the
applicable value between a partial sum payment and an annuity form, if such
election is in accordance with the Plan or Agreement.
Equitable will provide notice and election forms to a Participant not more
than six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract
pursuant to Section 2.06 before the Retirement Date, an election may be
made to receive an Annuity Benefit in lieu of the Cash Value of such
Participant's Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account, unless such election is
restricted by the Plan.
Agreed to by:
UNITED STATES TRUST COMPANY OF NEW YORK
By________________________________
Title_____________________________
Dated_____________________________
At________________________________
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
By________________________________
President
By________________________________
Vice President and Secretary
Date of Issue_____________________
PF 17037CT-U
<PAGE>
Attached to and made part of Group Annuity Contract No. 11930CT between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective January 1, 1987, said contract and riders
are amended as follows:
1. SECTION 1.11 RETIREMENT DATE is replaced by the following:
SECTION 1.11 RETIREMENT DATE. The term "Retirement Date" means the date on
which the Participant attains the retirement age specified in the
Participant's enrollment form, subject to the terms of the Plan or
Agreement, if applicable. Before the Retirement Date, the Participant may
elect to change the Retirement Date to another Retirement Date, which may
be any date after the filing of the election (other than the 29th, 30th or
31st of any month), subject to the terms of the Plan or Agreement, if
applicable. Any election for such change must be made in writing by the
Participant and shall not take effect until received by Equitable at its
Home Office. No Retirement Date shall be earlier than the Participant's
55th birthday or later than the date specified in the Code.
2. The new section, SECTION 1.11B REQUIRED DISTRIBUTIONS is added following
SECTION 1.11A:
SECTION 1.11B REQUIRED DISTRIBUTIONS. Notwithstanding any provisions to
the contrary, distributions from the certificate must commence as of (i)
the age specified by the Code, or (ii) for benefits accrued prior to
January 1, 1987, no later than attainment of age 75.
If payments have not begun prior to the first Participation Year following
the Participant's attainment of age 70, the Participant will be notified
regarding the minimum distribution required under the Code.
3. SECTION 1.19 CODE is replaced by the following:
SECTION 1.19 CODE. The term "Code" means the Tax Reform Act of 1986, as nor
or hereafter amended, or any corresponding provisions of prior or
subsequent United States revenue laws.
4. SECTION 2.10 LOANS is replaced by the following:
SECTION 2.10A LOANS ESTABLISHED PRIOR TO JANUARY 1, 1987. Unless otherwise
restricted by the Plan, the Participant may get a loan under the
certificate before the Retirement Date. The Participant's total Annuity
Value (including the loan reserve account as described below) will be the
sole security for the loan. A loan is effective on the first day of the
month following the date the Participant's loan agreement form is approved
by Equitable.
The amount of the loan may not be more than (i) 80% of the total Annuity
Value under the certificate, if such total Annuity Value is greater than or
equal to $3,750 and less than $12,500, (ii) $10,000, if the total Annuity
Value is greater than or equal to $12,500 and less than $20,000 and (iii)
50% of the total Annuity Value if the total Annuity Value is greater than
or equal to $20,000, but in no event shall the loan amount exceed $50,000
less the highest outstanding loan balance under the certificate during the
one year period ending the day before the effective date of the loan. The
minimum loan permitted is $3,000. The total Annuity Value is the value as
of the loan effective date. Only one outstanding loan is permitted at a
time under a certificate and the Participant will not be permitted to get a
new loan until sixty days have elapsed since the prior loan, including all
interest due, was repaid. As a condition for granting a loan, Equitable
will require the Participant to represent that the loan amount requested,
when aggregated with loans (principal plus interest) from all qualified
plans of the Participant's Employer, does not exceed the greater of $10,000
or 50% of the value of the Participant's non-forfeitable accrued benefits,
and in no event exceeds $50,000. Equitable may also require the Participant
to elect out of Federal income tax withholding with respect to any interest
and/or loan principal that would otherwise be subject to withholding.
The loan term will be either (i) 5 years or (ii) 10 years, if the
Participant represents that the purpose of the loan is to acquire, build or
substantially rehabilitate a dwelling unit which, within a reasonable
period of time, is to be used by the Participant or a member of the
Participant's family. In any event the loan term may not extend beyond the
earlier of (i) the Retirement date, (ii) the date Equitable receives
written notice to terminate the Participant's participation under the
Contract pursuant to Section 2.06, (iii) the date Equitable pays a death
benefit pursuant to Section 2.09, and (iv) any date provided for such loans
by future Federal tax rules. Future Federal tax rules may also impose
certain additional requirements to obtain the ten year loan period
described above. These requirements may also apply to existing ten year
loans.
On the loan effective date, Equitable will transfer to a loan reserve
account an amount equal to the sum of (i) the loan amount, which will earn
interest at an effective annual rate of 4% during the loan term, and (ii)
25% of the loan amount, which will earn interest at the Guaranteed Interest
Rate, as defined in the certificate. The Participant may specify which
Accounts these amounts are to be transferred from. In the absence of
direction by the Participant, or if the Participant's directions cover only
part of the amount required to be transferred to the loan reserve account,
Equitable will transfer the required (or additional required) amounts from
each Account based on the proportion that each Account's Annuity Value
bears to the total Annuity Value of all Accounts. On each loan anniversary
(or first business day thereafter, if the loan anni-
PF 17039CT Page 1
<PAGE>
versary is not a business day), interest earned at 4% during the prior year
will be transferred to the portion of the loan reserve account that earns
interest at the Guaranteed Interest Rate.
Equitable will charge loan interest at an effective annual rate of 6% which
is due on each loan anniversary. If annual loan interest (except interest
due at the end of the loan term)is not received by Equitable's Processing
Office within fifteen days after the due date, Equitable will deduct and
treat as a partial withdrawal from the portion of the loan reserve account
which earns interest at the Guaranteed Interest Rate an amount sufficient
to pay the interest plus any applicable withdrawal charges and any required
income tax withholding.
The loan may be repaid in part on any loan anniversary, and may be repaid
in full at any time on or after the first loan anniversary. However, any
payments received will first be applied to interest due, with the balance
applied towards repayment of the loan. Any partial loan repayment will
result in a transfer of the amount repaid from (i) the portion of the loan
reserve account that earns 4% to (ii) the portion of the loan reserve
account that earns the Guaranteed Interest Rate. Sixty days after a partial
repayment is made, the amount repaid will be transferred from the loan
reserve account to the Guaranteed Interest Account and may be withdrawn,
transferred, or annuitized as described in the certificate.
No partial withdrawals or transfers from the loan reserve account may be
made by the Participant.
Upon full repayment of the loan by the Participant, Equitable will credit
the Guaranteed Interest Rate to the full loan reserve account. Sixty days
after the loan is fully repaid, any amounts remaining in the loan reserve
account will be transferred to the Guaranteed Interest Account and may be
withdrawn, transferred or annuitized as described in the certificate.
If the remaining loan principal and accrued interest are not paid on or
prior to the end of the loan term, Equitable will deduct from the loan
reserve account and treat as a partial withdrawal an amount sufficient to
repay the principal and accrued interest, plus any applicable withdrawal
charges and required income tax withholding. Sixty days after the end of
the loan term, any amounts remaining in the loan reserve account will be
transferred to the Guaranteed Interest Account and may be withdrawn,
transferred or annuitized as described in the certificate.
Upon annuitization prior to full repayment of the loan by the Participant,
the Annuity Value of the Accounts maintained on behalf of such Participant
will be reduced by the portion of the loan reserve account that earns
interest at an effective annual rate of 4%.
Upon termination of participation prior to full repayment of the loan by
the Participant, Equitable will pay the Cash Value of the Accounts
maintained on behalf of such Participant reduced by the portion of any loan
reserve account that earns interest at an effective annual rate of 4%.
5. The new section, SECTION 2.10B LOANS ESTABLISHED JANUARY 1, 1987 OR LATER
is added following SECTION 2.10A LOANS ESTABLISHED PRIOR TO JANUARY 1,
1987:
SECTION 2.10B LOANS ESTABLISHED JANUARY 1, 1987 OR LATER. Unless otherwise
restricted by the Plan, Agreement or the Code, the Participant may get a
loan under the certificate before the Retirement Date. However, future
restriction in the Code may require revision or withdrawal of the loan
provisions as provided below. The Participant's total Annuity Value
(including the loan reserve account as described below) will be the sole
security for the loan. A loan is effective on the first day of the month
following the date the Participant's loan agreement form is approved by
Equitable.
Beginning the first day of the third month following the effective date of
the loan and quarterly on the first day of the month thereafter, loan
repayments must be made to Equitable. Such payments will be equal to the
sum of (a) and (b) where
(a) is the loan interest, calculated at an effective annual rate of 6%, and
(b) is an amortized portion of loan principal.
By each due date, if the amount of the loan payment is less than the amount
due or the loan payment is not received at Equitable's Processing Office,
Equitable will deduct and treat as a partial withdrawal from the loan
reserve account an amount equal to the interest and principal payments due
plus any applicable withdrawal charges and any required income tax
withholding. Specifically, an amount equal to the principal payment will be
deducted from the portion of the loan reserve account which earns interest
at 4%, and an amount equal to the interest payment plus any applicable
withdrawal charges and required income tax withholding will be deducted
from the portion of the loan reserve account which earns interest at the
Guaranteed Interest Rate. Amounts deducted will be reportable to the IRS
and other appropriate government authorities as taxable distributions. In
addition, the Participant may be subject to a 10% penalty tax on the
taxable portion of the amounts deducted.
The amount of the loan may not be more than (i) 80% of the total Annuity
Value under the certificate, if such total Annuity Value is greater than or
equal to $3,750 and less than $12,500, (ii) $10,000, if the total Annuity
Value is greater than or equal to $12,500 and less than $20,000 and (iii)
50% of the total Annuity Value if the total Annuity Value is greater than
or equal to $20,000, but in no event shall the loan amount exceed $50,000
less the highest outstanding loan balance under the certificate during the
one year period ending the day before the effective date of the loan. The
minimum loan permitted is $3,000. The total Annuity Value is the value as
of the loan effective date. Only one outstanding loan is permitted at a
time under a certificate and the Participant will not be permitted to get a
new loan until sixty days have elapsed since the prior loan was fully
repaid, including all interest due. As a condition for granting a loan,
Equitable will require the Participant to represent that the loan amount
requested, when aggregated with loan (principal plus interest) from all
qualified Plans of the Participant's Employer, does not exceed the greater
of $10,000 or 50% of the value of the Participant's non-forfeitable accrued
benefits, and in no event exceeds $50,000 less the highest outstanding
balance of all loans from qualified Plans during the twelve month period
ending on the day before the effective date of
PF 17039CT Page 2
<PAGE>
the loan. In addition, if participation under the certificate is pursuant
to terms of a Plan established by the employer, the provision of the
certificate requiring spousal consent in order to receive a loan will apply
if the Participant is married.
Equitable may also require the Participant to elect out of Federal income
tax withholding will respect to any interest and/or loan principal that
would otherwise be subject to withholding.
The loan term will be either (i) 5 years or (ii) 10 years, if the
Participant represents that the purpose of the loan is to acquire, build or
substantially rehabilitate a dwelling unit which, within a reasonable
period of time, is to be used as the principal residence of the
Participant. In any event, the loan term may not extend beyond the earlier
of (i) the Retirement date, (ii) the date Equitable receives written notice
to terminate the Participant's participation under the Contract pursuant to
Section 2.06, (iii) the date Equitable pays a death benefit pursuant to
Section 2.09, and (iv) any date provided for such loans by future Federal
tax rules including acceleration of the loan repayment in order that the
operation of the loan provisions do not adversely affect the tax treatment
of the Contract. Future Federal tax rules may also impose certain
additional requirements to obtain the ten year loan period described above
which may apply to existing ten year loans.
On the loan effective date, Equitable will transfer to a loan reserve
account an amount equal to the sum of (i) the loan amount, which will earn
interest at an effective annual rate of 4% during the loan term, and (ii)
25% of the loan amount, which will earn interest at the Guaranteed Interest
Rate, as defined in the certificate. The Participant may specify from which
Accounts these amounts are to be transferred. In the absence of direction
by the Participant, of if the Participant's directions cover only part of
the amount required to be transferred to the loan reserve account,
Equitable will transfer the required (or additional required) amounts from
each Account based on the proportion that each Account's Annuity Value
bears to the total Annuity Value of all Accounts. On the first day of the
third month following the effective date of the loan and quarterly
thereafter (or the first business day thereafter, if such day is not a
business day), interest earned at the rate of 4% annually during the prior
quarter will be transferred to the portion of the loan reserve account that
earns interest at the Guaranteed Interest Rate.
The loan must be repaid in part on each quarterly due date and may be
repaid in full at any time on or after the first loan anniversary and must
include the full interest due. Any payments received will first be applied
to interest due, with the balance applied towards repayment of the loan.
Any partial loan repayment will result in a transfer of an amount equal to
the principal repaid from (i) the portion of the loan reserve account that
earns 4% to (ii) the portion of the loan reserve account that earns the
Guaranteed Interest Rate. Sixty days after a partial repayment is made, the
principal amount repaid will be transferred from the loan reserve account
to the Fixed Income Account and may be withdrawn, transferred or annuitized
as described in the certificate.
No partial withdrawals or transfer from the loan reserve account may be
made by the Participant.
Upon full repayment of the loan by the Participant, Equitable will credit
the Guaranteed Interest Rate to the full loan reserve account. Sixty days
after the loan is fully repaid, any amounts remaining in the loan reserve
account will be transferred to the Fixed Income Account and may be
withdrawn, transferred or annuitized as described in the certificate.
Upon annuitization prior to full repayment of the loan by the Participant,
the Annuity Value of the Accounts maintained on behalf of such Participant
will be reduced by the portion of the loan reserve account that earns
interest at an effective annual rate of 4%.
Upon termination of participation prior to full repayment of the loan by
the Participant, Equitable will pay the Cash Value of the Accounts
maintained on behalf of such Participant reduced by the portion of any loan
reserve account that earns interest at an effective annual rate of 4%.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK
By
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Title
-------------------------------------------
Dated
------------------------------------------
At
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THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
By SPECIMEN
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President
By SPECIMEN
---------------------------------------------
Vice President and Secretary
Date of Issue
----------------------------------
PF 17039CT Page 3
<PAGE>
Participant:
Certificate Number:
[LOGO] Issue Date:
Retirement Date:
The Equitable Life Assurance Society of The United States
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O. New York,
New York 10116
AGREES
o To allocate the Contributions made to the Contract, after deduction of
any applicable taxes, to the Stock Account, Balanced Account,
Aggressive Stock Account, Money Market Account or the Guaranteed
Interest Account maintained for the Participant, in accordance with
Sections 2.02 and 2.03, or in part to any one, as directed by the
Participant.
o To apply the amount in the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and the Guaranteed Interest Account
at the Retirement Date to provide the Participant with an Annuity
Benefit or a Cash Value Benefit if the Participant is then living, and
o To provide the Participant with the other rights and benefits of this
certificate.
These agreements are subject to the provisions of this certificate.
TEN DAYS TO EXAMINE CERTIFICATE - The Participant may terminate participation
under the Contract and cancel this certificate by returning it to Equitable
within ten days after receipt of it. Upon such cancellation, Equitable will
refund any contribution made to Equitable on behalf of a Participant under the
Contract, plus or minus any investment gain or loss experienced in the
Participant's Stock Account, Balanced Account, Aggressive Stock Account, or
Money Market Account from the date such Contribution is allocated to such
Account to the date of such Cancellation.
Vice President and Secretary President
/s/ Rodney L. Enochs /s/ John B. Carter
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN SEPARATE ACCOUNTS
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF
SEPARATE ACCOUNT A. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE
DAILY RATE OF INVESTMENT RETURN IN SEPARATE ACCOUNT A IS EQUIVALENT TO MORE THAN
6.75% OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75%
OR 5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.16 IS 5% OR 3 1/2%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND
MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK. BUT AFTER ANY DEDUCTIONS TO
PROVIDE FOR TAXES.
THIS CONTRACT MAY NOT BE SUITABLE FOR A PARTICIPANT IF THE ONLY CONTRIBUTION TO
BE MADE ON SUCH PARTICIPANT'S BEHALF IS A SUBSTANTIAL SINGLE SUM CONTRIBUTION.
No. 19934T Amended by PF 17007T - PF 17011T - PF 17014T Rev. 6/85 - PF 17016T -
PF 17020T
<PAGE>
Contents
Part I - Definitions Page 2
Part II - Participant's Account Page 7
Part III - Annuity Benefits Page 10
Part IV - General Provisions Page 13
Equitable certifies that the Participant as named on page 3 is included under
the Group Annuity Contract designated on page 3 ("the Contract"), all pertinent
provisions of which are set forth below.
As described in Section 1.10, Equitable will determine, before the beginning of
each calendar year commencing after the period for which the Initial Guaranteed
Interest Rate is effective, the Yearly Guaranteed Interest Rate for the calendar
year for each Class of Participants, which shall not be lower than the Minimum
Guaranteed Interest Rate then in effect. Equitable, from time to time, may
declare a Guaranteed Interest Rate for a Class which exceeds the applicable
Yearly Guaranteed Interest Rate and a period for which such rate applies. A
Guaranteed Interest Rate is subject to annual administrative charges as
described in Section 2.08.
This certificate is valid only if participation under the Contract has not been
terminated as described in the Contract and is subject to amendment as may be
required pursuant to Section 4.02.
EARLY WITHDRAWAL CHARGE. If a Participant terminates participation at any time
after the earliest of the following occurrences: (i) The later of (a) the
attainment of age 59 years and six months or (b) the completion of five
Participation Years, or (ii) the completion of 12 Participation Years, the sum
of the Cash Values of the Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account as
provided in Section 1.18, will be equal to the sum of the Annuity Values of each
such Account. AT other times, the sum of the Cash Values of such Account. At
other times, the sum of the Cash Values of such Accounts may be less than the
sum of the Annuity Values as provided in Section 1.18.
The Contract is issued in consideration of the payment to Equitable of the
Contributions made under the Contract.
The provisions on the following pages are part of this certificate.
PART 1 - DEFINITIONS
SECTION 1.01 EMPLOYER. The term "Employer" means (i) an educational organization
employing a regular faculty which is a State, a political division of a State,
or an agency or instrumentality of any one or more of the foregoing (within the
meaning of Section 170(b)(1)(A)(ii) of the Code, and (ii) an organization
described in Section 501(c)(3) of the Code which is exempt from Federal income
tax under Section 501(c) of the Code.
SECTION 1.02A AGREEMENT. The Term "Agreement" means (i) an agreement between an
Employer and an employee of the Employer, within the meaning of Section
1.403(b)-1(b)(3) of the Federal income tax regulations, under which the employee
agrees to accept a reduction in salary or to forego an increase in salary and to
have such amounts applied under the Contract for the employee's behalf and (ii)
any program or arrangement (other than by use of agreements described above)
pursuant to which an Employer makes Contributions to the purchase of an Annuity
meeting the requirements of Section 403(b) of the Code.
SECTION 1.02B PLAN. The term "Plan" means a defined contribution pension plan
established by an Employer described in clause (ii) of Section 1.01 which has
been determined by the Internal Revenue Service to meet the requirements for
qualification under Section 401(a) of the Code and which permits or requires
amounts contributed thereunder to be applied under the Contract on behalf of
employees covered under the Plan.
SECTION 1.03 ANNUITY. The term "Annuity" means an annuity purchased in
accordance with the terms of the Agreement or the Plan to the extent the
Agreement and the annuity purchased pursuant thereto meet the requirements of
Section 403(b) of the Code or the Plan meets the requirements of Section 401(a)
of the Code, whichever is applicable.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Section 3.04 of the Contract.
No. 19934T Amended by PF 17007T - PF 17011T - PF 17014T Rev. 6/85 - PF 17016T -
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Page Four
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DEFINITIONS (Continued)
SECTION 1.05 PARTICIPANT. The term "Participant" means a person who has been
enrolled by Equitable under the Contract and for whom the Employer has purchased
an Annuity under the Contract. A person shall become enrolled under the Contract
upon receipt by Equitable of an enrollment form made available by Equitable and
completed in a manner satisfactory to Equitable. An Annuity is purchased for a
person enrolled under the Contract upon receipt by Equitable of an initial
Contribution by the Employer.
SECTION 1.06 CONTRIBUTION. The term "Contribution" means a payment made to
Equitable for a Participant with respect to an Annuity purchased for such
Participant under the Contract. Equitable is under no obligation to accept any
Contribution less than $20.00.
SECTION 1.07 PARTICIPATION DATE. The term "Participation Date" with respect to a
Participant means the date as of which Equitable has enrolled such Participant
under the terms of the Contract.
SECTION 1.08 PARTICIPATION YEAR. The term "Participation Year" with respect to a
Participant means the twelve month period beginning on (i) the Participation
Date, and (ii) each anniversary thereof, unless otherwise agreed to in writing
by Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS. Except as provided in Section 1.10, the term
"Class of Participants" refers to all Participants whose Participation Date is
in the same calendar year.
SECTION 1.10. GUARANTEED INTEREST RATE. For each Guaranteed Interest Account,
the term "Guaranteed Interest Rate" means the effective annual rate at which
interest accrues on the amount in such Account. Interest accrues daily. The
Guaranteed Interest Rate will never be less than 3% per annum.
Equitable will from time to time establish and make available for new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new Class of Participants will be established effective with the
effective date of the occurrence of (i), (ii) or (iii) above or any combination
thereof.
For the calendar year next succeeding the end of the period for which an
established Initial Guaranteed Interest Rate is effective and for each
subsequent calendar year thereafter, Equitable will determine for each
established Class of Participants before the beginning of such calendar year a
Yearly Guaranteed Interest Rate for such Class, which Yearly Guaranteed Interest
Rate will not be lower than the Effective Minimum Guaranteed Interest Rate
applicable for such Class for such year. For any established Class of
Participants, Equitable reserves the right to change the Minimum Guaranteed
Interest Rate and the applicable period therefor, provided that any such Minimum
Guaranteed Interest Rate will not be lower than the Minimum Guaranteed Interest
Rate that would have been in effect in the absence of such change. Equitable
will notify each Participant in a Class in writing of the Yearly Guaranteed
Interest Rate or of any change in the Minimum Guaranteed Interest Rate at least
15 days prior to its effective date.
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine for
each established Class of Participants a Guaranteed Interest Rate for such Class
which exceeds the applicable Yearly Guaranteed Interest Rate. Equitable will
notify each Participant in writing of the applicable Guaranteed Interest Rate
and duration.
SECTION 1.11 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Participant is to attain the retirement age specified in the Participant's
enrollment form. Before the Retirement Date the Participant may elect to change
the Retirement Date to another Retirement Date, which may be any date after the
filing of the election (other than the 29th, 30th, or 31st day of any month). No
Retirement Date shall be earlier than the Participant's 55th birthday or later
than the Participant's 75th birthday. Any election for such change must be made
in writing by the Participant and shall not take effect until received by
Equitable at its Home Office.
SECTION 1.12 NORMAL FORM. The "Normal Form" of an Annuity Benefit under the
Contract means, (i) if the Participant has a living spouse at the Retirement
Date, the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity
Form with such spouse as the contingent annuitant (100% continuation), and (ii)
if the Participant does not have a living spouse at the Retirement Date, the
Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depends is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by the Participant. The payments commence on the date as of which the
Joint and Survivor Life Annuity Form is purchased and terminate with the last
payment due before the death of the survivor.
SECTION 1.14A LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
providing fixed monthly payments during the lifetime of the person upon whose
life such payments during the lifetime of the person upon whose life such
payments depend. The payments commence on the date as of which the Life Annuity
Form is purchased and terminate with the last payment due before the death of
such person.
No. 19934T Amended by PF 17007T - PF 17011T - PF 17014T Rev. 6/85 - PF 17016T -
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DEFINITIONS (Continued)
SECTION 1.14B ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain"
means an annuity not involving life contingencies issued by Equitable which
extends beyond the Participant's attainment of age 59 years and six months and
does not permit any prepayment of the unpaid principal prior to the
participant's attainment of age 59 years and six months.
SECTION 1.15 THE SEPARATE ACCOUNTS. The term "Separate Accounts" means the
following separate investment accounts maintained by Equitable to which portions
of its assets have been allocated for the Contract and certain other contracts:
Name Investments
- ---- -----------
Separate Account A Primarily common stock and other equity-type investments.
Separate Account E Primarily short-term money market instruments.
Separate Account J Primarily common stocks and other equity-type investments,
publicly traded debt securities and short-term money market
instruments.
Separate Account K Primarily common stocks issued by high quality small and
intermediate size companies with strong growth prospects.
Equitable reserves the right to withdraw from any Separate Account and allocate
to another separate account assets determined by Equitable to be associated with
the class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid odd lots and
fractions. On and after the date of any such withdrawal the reference in the
Contract to such Separate Account shall mean such other separate account to
which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Accounts will, at most
times, consist primarily of the types of investments indicated above. Equitable
may, however, at its discretion invest the assets of any Separate Account in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including attorneys in its employ) as to what investments it
is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate any Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or a part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
any Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) run any Separate Account under direction of a committee,
and to discharge such committee at any time; and (iii) restrict or eliminate any
voting rights of participants or other persons who have voting rights as to the
Separate Accounts.
Assets of the Separate Accounts attributable to the Contract shall be subject to
a charge at the rate of 1.75% a year, for investment management, financial
accounting, the annuity rate guarantee and the minimum death benefit, and
expenses and expense risk. The charge shall be made in accordance with (c) of
the Net Investment Factor provision in Section 1.16.
The assets of Separate Accounts are the property of Equitable; however, the
portion of the assets of each Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising out of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of the Separate Accounts in excess of such
reserves and, contract liabilities to the general account of Equitable.
SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS.
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A business day is a day on which there is a
sufficient degree of trading in the portfolio securities of a Separate Account
that the New Accumulation Unit Value or New Annuity Unit Value might be
materially affected by changes in the value of the portfolio securities in a
Separate Account, as determined by the Separate Account Committee or, if there
is no Committee, by Equitable.
NET INVESTMENT FACTOR: For each Separate Account the Net Investment Factor for a
Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment income
and the capital gains, realized or unrealized, credited to the assets of
the Separate Account in the Valuation Period for which the Net Investment
Factor is being determined, minus (3) the capital losses, realized or
unrealized, charged against such assets in such Valuation Period, minus
(4) any amount charged against the Separate Account in such Valuation
Period for taxes or for amounts set aside by Equitable as a reserve for
taxes attributable to the maintenance or operation of the Separate
Account;
No. 19934T Amended by PF 17007T - PF 17011T - PF 17014T Rev. 6/85 - PF 17016T -
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DEFINITIONS (Continued)
(b) is the value of the assets in the Separate Account at the close of business
of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial accounting, the annuity rate
guarantee and the minimum death benefit, and expenses and expense risk.
The value of the assets in the Separate Accounts, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
their fair value, as determined in accordance with accepted accounting practices
and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the value
of the interest of a Participant's Stock Account, Balanced Account, Aggressive
Stock Account or Money Market Account on or before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Values for the
Separate Accounts have been established as follows:
Account Value Date
- ------- ----- ----
Separate Account A $10.00 As of November 1, 1968
Separate Account E $10.00 As of September 4, 1974
Separate Account J $10.00 As of May 1, 1984
Separate Account K $10.00 As of May 1, 1984
The new Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from the Separate Account A under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Value for Separate Account A has
been established at $1.00 as of November 1, 1968. The Annuity Value for any
subsequent Valuation Period is the New Annuity Value for the immediately
preceding Valuation Period multiplied by the Adjusted Net Investment Factor for
such subsequent Valuation Period. The Adjusted Net Investment Factor for a
Valuation Period is the Net Investment Factor for such period reduced for each
calendar day in such subsequent Valuation Period by the Net Investment Factor
times (i) .00013366, if the Assumed Base Rate of Net Investment Return is 5%,
and (ii) .00009425, if the Assumed Base Rate of Net Investment Return is 3 1/2%.
The Assumed Base Rate of Net Investment Return shall be 5%, except in states
where the rate is not permitted by law.
AVERAGE NEW ANNUITY VALUE: The Average Annuity Unit Value for Separate Account A
for a calendar month is equal to the average of the New Annuity Unit Values for
the Valuation Periods ending in such month.
SECTION 1.17 ANNUITY VALUE. The term "Annuity Value" with respect to a
Participant's Guaranteed Interest Account, Stock Account, Balanced Account,
means the amount in such Accounts pursuant to Sections 2.02 and 2.03.
SECTION 1.18 CASH VALUE.
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value" with
respect to such Participant's Guaranteed Interest Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account means an
amount equal to the Annuity Values of such Accounts after the earliest of the
following occurrences:
(i) The later of (a) the completion of five Participation Years with respect to
such Participant and (b) the Participant's attainment of age 59 years and six
months, or (ii) the completion of 12 Participation Years with respect to such
Participant, or (iii) if the Participant has attained age 55, completed five
Participation Years, and the Cash Values are to be applied to purchase an
Eligible Annuity Certain defined in Section 1.14B. At other times, the sum of
the Cash Values of such Accounts equal the sum of the Annuity Values of such
Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE: The withdrawal charge equals the lesser of (a) or (b) where:
(a) equals
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Values of such Accounts over
(ii) the Free Corridor Amount defined in Section 2.07B.
(b) is the excess, if any, of (i) 8% of the total contributions made on behalf
of such Participants during the current Participation Year and the preceding
nine Participation Years over (ii) the cumulative total of any withdrawal
charges made pursuant to Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account will be in the same
proportion as are the Annuity Values of such Accounts.
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of 1954, as
now or hereafter amended, or any corresponding provisions of prior or subsequent
United States revenue laws.
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PART II - PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS. The Employer is to make Contributions from time to
time on such dates and in such amounts as determined by the Employer pursuant to
the terms of the Plan or, if the Employer has no Plan, as determined by the
Employer at its sole discretion. The Employer is to specify the Participant with
respect to whom each such Contribution is being made and the amount to be
allocated to the Stock Account, Balanced Account, Aggressive Stock Account,
Money Market Account and the Guaranteed Interest Account.
Each Contribution received by Equitable with respect to Participant will, before
its allocation under the Contract, be reduced by the amount of any applicable
taxes, as determined by Equitable.
A Participant may, with Equitable's agreement, transfer to the Contract any
amount held with respect to such Participant under a contract meeting the
requirements of Section 403(b) of the Code or under a Plan of an Employer
described in clause (ii) of Section 1.01 ("Transferred Funds"). Any Transferred
Funds from a contract not issued by Equitable will, before allocation under the
Contract, be reduced by the amount of any applicable taxes, as determined by
Equitable.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
SECTION 2.02 STOCK, BALANCED, AGGRESSIVE STOCK AND MONEY MARKET ACCOUNTS.
Equitable maintains a Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account under the Contract for each Participant with respect to
whom Contributions are made. Any amount allocated to the (1) Stock Account
becomes part of Separate Account A, (2) Balanced Account becomes part of
Separate Account J, (3) Aggressive Stock Account becomes part of Separate
Account K, and (4) Money Market becomes part of Separate Account E. Any amount
withdrawn from an Account will no longer be part of the applicable Separate
Account.
On any date when an amount is allocated to or withdrawn from an Account, the
Account will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the New Accumulation
Value for the appropriate Separate Account for the Valuation Period which
includes that date. The number of Units in an Account on any date is equal to
(i) the sum of any Accumulation Units that have been credited to the Account
minus (ii) the sum of any Accumulation Units that have been charged to that
Account. The amount in the Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account on any date equal to the product of (i) the
number of Accumulation Units in such Account on that date and (ii) the New
Accumulation Unit Value for the appropriate Separate Account for the Valuation
Period which includes that date.
SECTION 2.03 GUARANTEED INTEREST ACCOUNT
Equitable maintains a Guaranteed Interest Account under the Contract for each
Participant with respect to whom Contributions are made. Any amount allocated to
the Guaranteed Interest Account becomes part of the general assets of Equitable,
which support the guarantees of the Contract and other contracts.
The amount in a Guaranteed Interest Account at any time is equal to the sum of
all amounts that have been allocated to such Guaranteed Interest Account
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn pursuant to
Sections 2.07, 2.07A, and Section 2.08 from such Account, and transferred
pursuant to Section 2.05 from such Guaranteed Interest Account, and less the sum
of any annual administrative charges accrued but not made. Equitable guarantees
that the amount in a Guaranteed Interest Account at any time before the
Retirement Date will not be less than the sum of all amounts allocated to such
Account pursuant to Section 2.04 or transferred to such Account pursuant to
Section 2.05 and less the sum of all amounts that have been withdrawn from such
Account pursuant to Sections 2.07 and 2.07A, and transferred from such Account
pursuant to Section 2.05, all accumulated at 3% interest, compounded annually.
In any Participation Year in which no Contribution is allocated to a Guaranteed
Interest Account, the amount in such Account at the end of the Participation
Year shall not be less than the amount in such Account at the beginning of the
Participation Year plus the sum of all amounts transferred to such Account
pursuant to Section 2.05 less the sum of all amounts withdrawn and transferred
out of such Account pursuant to Sections 2.07, 2.07A, and Section 2.05, all
accumulated at 3% interest, compounded annually.
A Guaranteed Interest Account for a Participant terminates on the earliest of
(i) the Retirement Date, (ii) the death of the Participant, and (iii)
termination of participation pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO ACCOUNT. Each Contribution made with respect to a
Participant pursuant to Section 2.01, after deduction for any applicable taxes,
will be allocated, as of the date by which Equitable has received both such
Contribution and direction as to its allocation, to the Guaranteed Interest
Account, Stock Account, Balanced Account, Aggressive Stock Account or Money
Market Account or in part to each, at the sole direction of the Participant as
specified to Equitable, provided that the percentage allocated to each Account
is a whole number.
Any amount that a Participant has directed to be transferred to the Guaranteed
Interest Account, Stock Account, Balanced Account or Aggressive Stock Account
pursuant to Section 2.05 will be allocated as of the date of such transfer to
the appropriate Account maintained for such Participant.
Interest is allocated to the Guaranteed Interest Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05 and 2.07 and 2.07A, at the time of application of amounts in the
Guaranteed Interest Account to provide Annuity Benefits, upon termination of
participation pursuant to Section 2.06, and upon death of the Participant
pursuant to Section 2.09.
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PARTICIPANT'S ACCOUNT (Continued)
SECTION 2.05 TRANSFERS AMONG ACCOUNTS. At any time before a Participant's
Retirement Date, such Participant, upon written request, may transfer all or
part of the amounts maintained for the Participant to one or more of the other
Accounts maintained for such Participant as follows: (1) amounts in the
Guaranteed Interest Account, Stock Account, Balanced Account and Aggressive
Stock Account may be transferred among such Accounts; (2) amounts in the Money
Market Account may be transferred to the other Accounts. Such transfers will be
made as of the date Equitable receives such request, and will be subject to
Equitable's rules in effect at the time of transfer. No transfers are permitted
from the Guaranteed Interest Account, Stock Account, Balanced Account and
Aggressive Stock Account maintained for the Participant to the Money Market
Account. Notwithstanding the above, transfers to the Balanced Account may be
prohibited by Equitable upon 30 days written notice to the Participant.
SECTION 2.06 TERMINATION OF PARTICIPATION. Subject to any applicable
restrictions under the terms of the Agreement or the Plan, whichever is
applicable, on or before a Participant's Retirement Date, such Participant may
elect by written notice to terminate participation under the Contract. Upon
receipt of such notice, Equitable will determine the Cash Value, as of the date
Equitable received such notice, of the Guaranteed Interest Account, Stock
Account, Balanced Account and Aggressive Stock Account and Money Market Account
maintained for such Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Guaranteed Interest Account,
Stock Account, Balanced Account, Aggressive Stock Account and Money Market
Account, pay such Annuity Values and terminate such Participant's participation
under the Contract. This right may be exercised with respect to the Participant
only if both (i) no Contributions have been made under the Contract during the
last three completed Participation Years, and (ii) the sum of such Annuity
Values is $500 or less. Equitable reserves the right to terminate a
Participant's participation under the Contract if at least 120 days have elapsed
since the issue date shown on the certificate issued to such Participant under
the Contract and no Contributions have been made under the Contract with respect
to such Participant.
Upon payment of such Cash Values or Annuity Values, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Values or Annuity Values arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions under
the terms of the Agreements, or the Plan, whichever is applicable, a Participant
may elect by written notice to Equitable to make a partial withdrawal from the
Stock Account, Balanced Account, Aggressive Stock Account, Money Market Account,
and the Guaranteed Interest Account maintained for such Participant before such
Participant's Retirement Date.
Upon withdrawal pursuant to Section 2.07 or 2.07A, Equitable will pay the lesser
of the sum of the Cash Values of such Accounts or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by such Participant. Unless instructed otherwise, the amount withdrawn
(including the amount of any withdrawal charge) will be allocated between such
Accounts in proportion to the Annuity Value of each such Account.
Upon any payment to a Participant pursuant to Section 2.07 or 2.07A, Equitable
will be released from any and all liability for payments with respect to the
Contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to Section 2.07 or 2.07A may be deferred by
Equitable in accordance with the provisions of Section 4.08.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300. If a withdrawal from the Accounts made pursuant to Section
2.07 or 2.07A would result in total Annuity Values of less than $500, Equitable
will so advise the Participant and reserves the right to withdraw the Annuity
Values of the Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account, pay the Annuity Values of
such Accounts to the Participant, and terminate such Participant's participation
under the contract.
SECTION 2.O7A PARTIAL WITHDRAWAL CHARGES.
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, Equitable will withdraw from the Stock Account, Balanced Account,
Aggressive Stock Account, Money Market Account and Guaranteed Interest Account
an amount equal to the lesser of (a) the full amount of partial withdrawal
requested (b) the sum of the Annuity Values of such Accounts, provided the
request for partial withdrawal is made after the earliest of the following
occurrences: (i) The later of (a) the completion of five Participation Years
with respect to such Participant and (b) such Participant's attainment of age 59
years and six months, or (ii) the completion of 12 Participation Years with
respect to such Participant, or (iii) if the Participant has attained age 55,
has completed five Participation Years, and the partial withdrawal is to be
applied to purchase an Eligible Annuity Certain defined in Section 1.14B. At
other times, Equitable will withdraw from such Accounts an amount equal to the
amount of partial withdrawal requested plus a withdrawal charge.
WITHDRAWAL CHARGE: There will be no withdrawal charge if the amount of partial
withdrawal requested is not greater than the Free Corridor Amount defined in
Section 2.07B.
If the amount of partial withdrawal requested is greater than the Free Corridor
Amount, Equitable will (i) first withdraw from such Accounts an amount equal to
the Free Corridor Amount, and (ii) then withdraw an amount equal to the excess
of the amount requested over the Free Corridor Amount, plus a withdrawal charge.
Such withdrawal charge will be equal to the lesser of (a) or (b) where:
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PARTICIPANT'S ACCOUNT (Continued)
(a) is an amount equal to
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn (including such charge) pursuant to (ii) of the
preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of contributions
made on behalf of such Participant during the current Participation Year and the
nine preceding Participation Years over (ii) the cumulative total of any prior
withdrawal charges made pursuant to this Section.
SECTION 2.07B FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" with respect
to a Participant who has completed three Participation Years or attained age
59 1/2 means an amount equal to the excess, if any, of (i) 10% of the sum of (a)
the Annuity Values of the Stock Account, Money Market Account, Guaranteed
Interest Account, Balanced Account, and Aggressive Stock Account and (b) the
value of any loan reserve account, held with respect to the Participant over
(ii) cumulative prior withdrawals made pursuant to Section 2.07, 2.07A, or 2.07B
or pursuant to the repayment of interest or principal on a loan, in the current
Participation Year with respect to the Participant. With respect to a
Participant who has not completed three Participation Years or attained age
59 1/2, the Free Corridor Amount is zero.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year before a Participant's Retirement Date, Equitable will
withdraw from the Guaranteed Interest Account, Stock Account, Money Market
Account, Balanced Account and Aggressive Stock Account maintained under the
Contract, as to the Contributions remitted with respect to such Participant, an
annual administrative charge equal to the lesser of $30 or 2% of the sum of
(i)(a) the Annuity Values of the Guaranteed Interest Account, Stock Account,
Money Market Account, Balanced Account and Aggressive Stock Account and (b) the
amount of any loan reserve account held, at the end of that Participation Year
and (ii) any withdrawals made from such Accounts pursuant to Section 2.07,
2.07A, or 2.07B and from any loan reserve account, during that Participation
Year. The charge will be allocated between (i) the Stock Account, (ii) Money
Market Account, (iii) Balanced Account, (iv) Aggressive Stock Account and (v)
the Guaranteed Interest Account and loan reserve account, in proportion to the
Annuity Values of (i), (ii), (iii), (iv) and (v), at the end of the
Participation Year. The portion of the charge attributable to (v) above will be
first withdrawn from the Guaranteed Interest Account and then, if the Annuity
Value of the Guaranteed Interest Account is not sufficient, the remaining
allocation will be withdrawn from the portion of the loan reserve account that
earns interest at the Guaranteed Interest Rate. The charge will be allocated
between the Stock Account, Balanced Account, Aggressive Stock Account, Money
Market Account and Guaranteed Interest Account in proportion to the Annuity
Values of each such Account, at the end of the Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Values or Cash Values of such Participant's Account pursuant to Section 3.03, or
upon termination of such Account pursuant to Section 2.06 or Section 2.09 during
a Participation Year, Equitable will withdraw the administrative charge
described in this Section for the applicable part of that Participation Year.
SECTION 2.09 DEATH BENEFIT. If the Employer reports to Equitable, or if
Equitable otherwise ascertains, that a Participant has died while Accounts for
such Participant are maintained under the Contract and before such Participant's
Retirement Date, Equitable, upon receipt of due proof of such death, will pay in
a single sum to the beneficiary designated by such Participant to receive such
payment the amount of death benefit payable with respect to such Participant.
The amount of the death benefit with respect to a Participant at any time prior
to the Retirement Date is equal to the greater of (i) the sum of the Annuity
Values of the Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account maintained under the Contract
for such Participant and (ii) the minimum death benefit with respect to such
Participant. Such minimum death benefit is the sum of all Contributions made
with respect to such Participant pursuant to Section 2.01 (before reduction of
any applicable taxes) less an adjustment for any withdrawals made pursuant to
Sections 2.07 and 2.07A from the Accounts and from any loan reserve account
maintained under the Contract for such Participant. Any such withdrawal will
reduce the minimum death benefit (as adjusted by any previous such withdrawal)
by an amount which is in the same proportion as the amount being withdrawn is to
the Annuity Values then in the Guaranteed Interest Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account and amounts
in the loan reserve account maintained under the Contract for such Participant.
If, in accordance with the provisions of Section 2.01, the cash value of an
Annuity contract issued by Equitable, which provides for a death benefit before
retirement equal to the greater of the contract cash value or an alternative
amount based on premiums paid or contributions made under the Annuity contract,
is transferred to the Contract, such alternative amount as of the date of
transfer will be included in the "sum of all Contributions" in lieu of the
amount of cash value transferred, for purposes of the death benefit under the
Contract.
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefore, be withdrawn from the
Guaranteed Interest Account, Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account maintained with respect to such Participant
under the Contract. Upon such payment, Equitable will be released from any and
all liability for payments with respect to the Contributions from which the
Annuity Value arose.
SECTION 2.10 LOANS. Unless otherwise restricted by the Plan, the Participant may
get a loan under the certificate before the Retirement Date. The Participant's
total Annuity Value (including the loan reserve account as described below) will
be the sole security for the loan. A loan is effective on the first day of the
month following the date the Participant's loan agreement form is approved by
the Equitable.
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PARTICIPANT'S ACCOUNT (Continued)
The amount of the loan may not be more than (i) 80% of the total Annuity Value
under the certificate, if such total Annuity Value is greater than or equal to
$3,750 and less than $12,500, (ii) $10,000, if the total Annuity Value is
greater than or equal to $12,500 and less than $20,000, and (iii) 50% of the
total Annuity Value if the total Annuity Value is greater than $20,000, but in
no event shall the loan amount exceed $50,000. The minimum loan permitted is
$3,000. The total Annuity Value is the value as of the loan effective date. Only
one outstanding loan is permitted at a time under a certificate and the
Participant will not be permitted to get a new loan until 60 days has elapsed
since the prior loan was repaid. As a condition for granting a loan, Equitable
will require the Participant to represent that the loan amount requested, when
aggregated with loans (principal plus interest) from all qualified plans of the
Participant's Employer, does not exceed the greater of $10,000 or 50% of the
value of the Participant's non-forfeitable accrued benefits, and in no event
exceeds $50,000. Equitable may also require the Participant to elect out of
federal income tax withholding with respect to any interest and/or loan
principal that would otherwise be subject to withholding.
The loan term will be either (i) 5 years or (ii) 10 years, if the Participant
represents that the purpose of the loan is to acquire, build or substantially
rehabilitate a dwelling unit which within a reasonable period of time is to be
used by the Participant or a member of the Participant's family. In any event,
the loan term may not extend beyond the earlier of (i) the Retirement Date, (ii)
the date Equitable receives written notice to terminate the Participant's
participation under the Contract pursuant to Section 2.06, (iii) the date
Equitable pays a death benefit pursuant to Section 2.09 and (iv) any date
provided for such loans by future federal tax rules. Future federal tax rules
may also impose certain additional requirements to obtain the ten year loan
period described above. These requirements may also apply to existing ten year
loans.
On the loan effective date, Equitable will transfer to a loan reserve account an
amount equal to the sum of (i) the loan amount, which will earn interest at an
effective annual rate of 4% during the loan term and (ii) 25% of the loan
amount, which will earn interest at the Guaranteed Interest Rate, as defined in
the certificate. The Participant may specify which Accounts these amounts are to
be transferred from. In the absence of direction by the Participant, or if the
Participant's directions cover only part of the amount required to be
transferred to the loan reserve account, Equitable will transfer the required
(or additional required) amounts from each Account based on the proportion that
each Account's Annuity Value bears to the total Annuity Values of all Accounts.
On each loan anniversary (or first business day thereafter, if the loan
anniversary is not a business day), interest earned at 4% during the prior year
will be transferred to the portion of the loan reserve account that earns
interest at the Guaranteed Interest Rate.
Equitable will charge loan interest at an effective annual rate of 6% which is
due on each loan anniversary. If annual loan interest (except interest due at
the end of the loan term) is not received by Equitable's Processing Office
within 15 days after the due date, Equitable will deduct and treat as a partial
withdrawal from the portion of the loan reserve account which earns interest at
the Guaranteed Interest Rate an amount sufficient to pay the interest plus any
applicable withdrawal charges and any required income tax withholding.
The loan may be repaid in part on any loan anniversary, and may be repaid in
full at any time on or after the first loan anniversary. However, any payments
received will first be applied to interest due, with the balance applied towards
repayment of the loan. Any partial loan repayment will result in a transfer of
the amount repaid from (i) the portion of the loan reserve account that earns 4%
to (ii) the portion of the loan reserve account that earns the Guaranteed
Interest Rate. Sixty days after a partial repayment is made, the amount repaid
will be transferred from the loan reserve account to the Guaranteed Interest
Account and may be withdrawn, transferred, or annuitized as described in the
certificate.
No partial withdrawals or transfers from the loan reserve account may be made by
the Participant.
Upon full repayment of the loan by Participant, Equitable will credit the
Guaranteed Interest Rate to the full loan reserve account. Sixty days after the
loan is fully repaid, any amounts remaining in the loan reserve account will be
transferred to the Guaranteed Interest Account and may be withdrawn, transferred
or annuitized as described in the certificate.
If the remaining loan principal and accrued interest are not paid on or prior to
the end of the loan term, Equitable will deduct from the loan reserve account
and treat as a partial withdrawal an amount sufficient to repay the principal
and accrued interest, plus any applicable withdrawal charges and required income
tax withholding. Sixty days after the end of the loan term, any amounts
remaining in the loan reserve account will be transferred to the Guaranteed
Interest Account and may be withdrawn, transferred or annuitized as described in
the certificate.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of Separate Account A.
The amount of the first, second, and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to the payee pursuant to Section 3.04. The amount
of the fourth and each subsequent payment under a Variable Annuity Benefit will
be equal to the number of Annuity Units with respect to such benefit, multiplied
by the Average New Annuity Unit Value for the second calendar month immediately
preceding the date of the payment. The fourth
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ANNUITY BENEFITS (Continued)
and subsequent annuity payments under a Variable Annuity Benefit will not be
increased or decreased in amount because of mortality or expense experience. The
number of Annuity Units with respect to a benefit is the number determined by
dividing the amount of the first monthly payment under such benefit by the New
Annuity Unit Value for the Valuation Period which includes the due date of the
first monthly payment.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of Participant's
Retirement Date, provided such Participant is then living, the Annuity Values of
such Participant's Guaranteed Interest Accounts, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account shall be applied to
provide the Normal Form of Annuity Benefit, unless such Participant elects (i)
to receive the Cash Value of such Account in a single sum or (ii) to apply such
Annuity Value or Cash Value, whichever is applicable pursuant to the first
paragraph of Section 3.04, to provide an Annuity Benefit on any other annuity
form offered by Equitable, as elected by the Participant, subject to Equitable's
rules then in effect and any applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.06 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Values of such Participant's Guaranteed
Interest Account, Stock Account, Balanced Account, Aggressive Stock Account and
Money Market Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form. The Participant may only elect an annuity
form pursuant to which either (i) the Annuity Value or Cash Value, whichever is
applicable, will be paid to the Participant and the Participant's beneficiary
over a period not exceeding the joint lives of the Participant and the
Participant's spouse or (ii) more than 50% of the Annuity Value or Cash Value,
whichever is applicable, will be paid to the Participant during the
Participant's Life.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If a Participant elects pursuant to the
first paragraph or third paragraph of Section 3.03 to receive an Annuity Benefit
in lieu of the Cash Values of the Guaranteed Interest Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account, the amount
applied to provide the Annuity Benefit will be (i) the Annuity Values of such
Accounts if the payments under the annuity form elected are contingent upon the
survival of a person, or (ii) the Cash Values of such Accounts if the payments
under the annuity form elected are not contingent upon the survival of a person.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If such
amount is applied on or after the completion of five Participation Years with
respect to such Participant, the balance shall purchase the Annuity Benefit on
the basis of either (i) the Table of Guaranteed Annuity Payments shown below or
(ii) Equitable's current individual annuity rates for payment of proceeds,
whichever rates would provide a larger benefit with respect to the payee. If
such current individual annuity rates are used, such Participant's certificate
will be replaced by an Equitable supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a Participant, the
balance, after any applicable tax on annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown below or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
maintained for such Participant shall terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form, are based on 3 1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on a 50-50 split of males and
females. The amounts of income initially provided under the Variable Annuity
Benefit payable on the Life Annuity Form and Joint and Survivor Life Annuity
Form are based on the projected 1983 Basic Table adjusted to a unisex basis
based on a 50-50 split of males and females and an Assumed Base Rate of Net
Investment Return of 3 1/2% or 5%, whichever applies pursuant to Section 1.16.
The Assumed Base Rate of Net Investment Return is 5% for certificates issued for
delivery in New York. Equitable may change the monthly income amounts contained
in the Tables of Guaranteed Annuity Payments and the basis for determining such
amounts, for new Participants, by at least 90 days advance notice to the
Contract Holder and by an amendment to the Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on a 50-50 split of males and
females if such annuity form provides for a Fixed Annuity Benefit, and on the
projected 1983 Basic Table adjusted to a unisex basis based on a 50-50 split of
males and females and an Assumed Base Rate of Net Investment Income Return of 5%
or 3 1/2%, whichever applies pursuant to Section 1.16 if such annuity form
provides for a Variable Annuity Benefit.
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<PAGE>
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ANNUITY BENEFITS (CONTINUED)
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's survival must
be furnished to Equitable either by personal endorsement of the check drawn for
payment or by other means satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
If an annuity form made available by Equitable provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Upon election by a Participant pursuant to Section 3.03 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in
an initial payment of less than $20, Equitable may pay the amount to the payee
in a single sum instead of applying it under the annuity form elected pursuant
to Section 3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
<TABLE>
<CAPTION>
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
Age 60 61 62 63 64 65 66 67 68 69 70
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.54 4.58 4.62 4.66 4.70 4.74 4.77 4.81 4.84 4.88 4.91
61 4.62 4.67 4.71 4.76 4.81 4.84 4.88 4.91 4.95 4.99
62 4.72 4.67 4.81 4.85 4.90 4.94 4.98 5.02 5.06
63 4.81 4.86 4.91 4.96 5.01 5.06 5.10 5.14
64 4.92 4.97 5.02 5.08 5.13 5.17 5.22
65 5.03 5.09 5.15 5.20 5.26 5.31
66 5.15 5.21 5.27 5.33 5.39
67 5.28 5.34 5.40 5.47
68 5.41 5.48 5.55
69 5.56 5.63
70 5.71
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION -- ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 3 1/2 %
(Minimum Monthly Income per $1,000 of Annuity Value)
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
Age 60 61 62 63 64 65 66 67 68 69 70
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.40 4.44 4.48 4.51 4.55 4.58 4.61 4.65 4.68 4.71 4.74
61 4.48 4.52 4.56 4.60 4.64 4.67 4.71 4.74 4.78 4.81
62 4.56 4.60 4.65 4.69 4.73 4.77 4.80 4.84 4.88
63 4.65 4.69 4.74 4.78 4.83 4.87 4.91 4.95
64 4.74 4.79 4.84 4.89 4.93 4.98 5.02
65 4.85 4.90 4.95 5.00 5.05 5.10
66 4.95 5.01 5.06 5.11 5.17
67 5.07 5.12 5.18 5.24
68 5.19 5.25 5.32
69 5.32 5.39
70 5.46
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION -- ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 3 1/2 %
(Minimum Monthly Income per $1,000 of Annuity Value)
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
Age 60 61 62 63 64 65 66 67 68 69 70
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.27 5.30 5.34 5.37 5.41 5.44 5.47 5.51 5.54 5.57 5.59
61 5.34 5.38 5.42 5.46 5.49 5.53 5.57 5.60 5.63 5.66
62 5.42 5.46 5.50 5.54 5.58 5.62 5.65 5.69 5.73
63 5.50 5.55 5.59 5.63 5.67 5.71 5.75 5.79
64 5.59 5.64 5.69 5.73 5.78 5.82 5.86
65 5.69 5.74 5.79 5.84 5.89 5.93
66 5.79 5.85 5.90 5.95 6.00
67 5.90 5.96 6.02 6.08
68 6.02 6.08 6.15
69 6.15 6.22
70 6.29
</TABLE>
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ANNUITY BENEFITS (CONTINUED)
<TABLE>
<CAPTION>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
AGE FIXED ANNUITY BENEFIT INVESTMENT RETURN IS
- --- --------------------- ----------------------------
3 1/2% 5%
------ --
<S> <C> <C> <C>
60 5.29 5.08 5.97
61 5.41 5.19 6.08
62 5.55 5.31 6.20
63 5.69 5.44 6.33
64 5.85 5.58 6.46
65 6.01 5.73 6.61
66 6.19 5.89 6.77
67 6.37 6.06 6.94
68 6.58 6.24 7.12
69 6.79 6.43 7.31
70 7.02 6.64 7.52
</TABLE>
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average New Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. The Contract constitutes the entire Contract between the
parties and the provisions of the Contract alone will govern with respect to the
rights and obligations of Equitable. The provisions of the Contract will be
applied separately with respect to each Participant.
Nothing in the enrollment form referred to in Section 1.05, the Plan or trust
agreement referred to in Section 4.10 nor any modification, amendment, or
supplement to any such documents will in any way be construed to enlarge,
change, vary or in any other way affect the obligations of Equitable as
expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE. Equitable reserves the right to amend the
Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the Contract and any certificate to reflect changes in
the Code, or in regulations or published rulings of the Internal Revenue Service
so that each such certificate will continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY. The entire interest of any
Participant under the Contract is nonforfeitable.
No interest of a Participant under the Contract may be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law, no such amount will in any way
be subject to any claim against such payee.
SECTION 4.04 PARTICIPATION IN SURPLUS. The Contract and all other contracts in
the same class of contracts shall be combined for the purpose of ascertaining
the annual surplus of Equitable to be apportioned to said contracts as a
dividend and the portion of any such dividend that is to be allocated to the
Contract shall be determined by Equitable. The participation of this class of
contracts in annual surplus is, however, expected to be minimal. Any amount so
allocated to the Contract shall be payable as of January 1 of the calendar year
in which a dividend is apportioned and will be payable in cash and shall be
equitably allocated by Equitable to the Guaranteed Interest Accounts maintained
hereunder for Participants.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.05 BENEFICIARY. Each Participant, as of such Participant's
Participation Date, is to provide Equitable with an initial designation of the
beneficiary entitled to receive any death benefit payable with respect to such
Participant pursuant to Section 2.09. The Participant may change such
designation from time to time during such Participant's lifetime and while
Accounts for such Participants are being maintained hereunder. Any such
designation or
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GENERAL PROVISIONS (Continued)
change will be made by written notice in a form satisfactory to Equitable. A
change will, upon receipt at a designated Equitable Office, take effect as of
the time the written notice was signed, whether or not the Participant is living
on the date of receipt, but without further liability as to any payment or other
settlement made by Equitable before receipt of such change.
Unless otherwise specified in the designation, if a Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant, and if more than one survive they
will share equally.
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.09 for which there is no designated beneficiary living at the death of
the Participant will be payable in a single sum to the children of the
Participant who survive the Participant, in equal shares, or should none
survive, then to the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is to election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.06 DISQUALIFICATION. In the event that an annuity purchased hereunder
with respect to a Participant fails to qualify as an Annuity as described in
Section 1.03, Equitable shall have the right, upon receiving notice of such fact
before the Retirement Date, to terminate participation with respect to such
Participant under the Contract and pay to such Participant the amount in the
Account maintained with respect to such Participant less a deduction for the
appropriate part attributable to such Participant of any Federal income tax
payable by Equitable which would not have been payable if such Participant had
an Annuity under the Contract.
SECTION 4.07 FUTURE PARTICIPANTS. Equitable reserves the right at its sole
discretion to curtail or prohibit further enrollment as Participants under the
Contract of any individuals who are not currently participating under the
Contract as of such date of curtailment or prohibition.
SECTION 4.08 DEFERMENT. Payments by Equitable from the Participant's Guaranteed
Interest Account pursuant to the provisions of Section 2.06, Sections 2.07 and
2.07A, and Section 2.09, or any commuted payments arising from a Fixed Annuity
Benefit pursuant to Section 3.05, may be deferred for up to six months after
receipt of a written request for such surrender or withdrawal, or receipt of due
proof of death of the Participant, respectively, or receipt of due documentation
for such commutation payment pursuant to Section 3.05. Interest at the current
Guaranteed Interest Rate for such Participant's Guaranteed Interest Account will
be allowed on any such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the Participant's
Stock Account, Balanced Account, Aggressive Stock Account or Money Market
Account pursuant to the provisions of Section 2.06, Sections 2.07 and 2.07A, and
Section 2.09, or any commuted payments arising from a Variable Annuity Benefit
pursuant to Section 3.05, will be made within seven days after receipt of a
written request for such surrender or withdrawal, or receipt of due proof of
death of the Participant, respectively, or receipt of due documentation for such
commutation payment pursuant to Section 3.05.
During any period when (i) the sale of securities or the determination of the
New Accumulation Unit Value or the Average New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or trading
on such Exchange is restricted, or (ii) the Securities and Exchange Commission
may by order permit postponement for the protection of persons having interests
in the Separate Accounts, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of
Cash Values and Annuity Values, arising from an amount in a
Participant's Stock Account, Balanced Account, Aggressive Stock Account
or Money Market Account;
(b) to defer payment of any portion of the death benefit arising from an
amount in a Participant's Stock Account, Balanced Account, Aggressive
Stock Account or Money Market Account;
(c) to defer the payment of any Variable Annuity Benefit under the Contract
or the application of any such Benefit to provide for any other payment
called for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to
provide any Annuity Benefit permitted under the Contract.
SECTION 4.09 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Participant with a
notice showing as of a specified recent date (1) the Annuity Value of the
Guaranteed Interest Account, (2) the total number of Accumulation Units credited
to the Stock Account, Balanced Account, Aggressive Stock Account an Money Market
Account, (3) the New Accumulation Unit Values, (4) the sum of the Cash Values of
the Guaranteed Interest Account, Stock Account, Balanced Account, Aggressive
Stock Account and Money Market Account and (5) the amount of death benefit
payable with respect to the Participant. After the Retirement Date Equitable
will notify the Participant of the number of Annuity Units and the Average New
Annuity Unit Value used in determining the amount of each Variable Annuity
Benefit payment, if any.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY.
The sole responsibility of the Contract Holder is to serve as party to the
Contract. The Contract Holder will have no responsibility for the administration
of any Plan or Agreement, for payments to the Guaranteed Interest Account, Stock
Account, Balanced Account,
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GENERAL PROVISIONS (Continued)
Aggressive Stock Account or Money Market Account, or any payments or other
distributions hereunder. Equitable will deal with the Contract Holder in
accordance with the terms and conditions of the trust agreement pursuant to
which the Contract Holder agreed to act as such and with the Contract and in
such manner as the Contract Holder and Equitable may agree, without the consent
of any other person. Any Employer making Contributions under the Contract shall
be deemed to have adopted and accepted the trust agreement as part of the Plan
or Agreement with respect to which such Contributions are made.
SECTION 4.11 AGE. If the Annuitant's age has been misstated, any benefits will
be those which would have been purchased at the correct age. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
This certificate was approved by the New York Insurance Department under an
accelerated procedure to assist employers in complying with the United States
Supreme Court decision in Arizona v. Norris. The Department has reserved the
right to require changes to comply with applicable New York Law and regulations.
No. 19934T Amended by PF 17007T - PF 17011T - PF 17014T Rev. 6/85 - PF 17016T -
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<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective January 1, 1987, or your Participation Date, whichever is the later,
your Certificate issued under Group Annuity Contract No. 11930CT is amended as
follows:
1. SECTION 1.11 RETIREMENT DATE is replaced by the following:
SECTION 1.11 RETIREMENT DATE. The term "Retirement Date" means the date on
which the Participant attains the retirement age specified in the
Participant's enrollment form, subject to the terms of the Plan or
Agreement, if applicable. Before the Retirement Date, the Participant may
elect to change the Retirement Date to another Retirement Date, which may
be any date after the filing of the election (other than the 29th, 30th or
31st day of any month), subject to the terms of the Plan or Agreement, if
applicable. Any election for such change must be made in writing by the
Participant and shall not take effect until received by Equitable at its
Home Office. No Retirement Date shall be earlier than the Participant's
55th birthday or later than the date specified in the Code.
2. The new section, SECTION 1.11B REQUIRED DISTRIBUTIONS is added following
SECTION 1.11A:
SECTION 1.11B REQUIRED DISTRIBUTIONS. Notwithstanding any provisions to the
contrary, distributions from the certificate must commence as of (i) the
age specified by the Code, or (ii) for benefits accrued prior to January 1,
1987, no later than attainment of age 75.
If payments have not begun prior to the first Participation Year following
the Participant's attainment of age 70, the Participant will be notified
regarding the minimum distribution required under the Code.
3. SECTION 1.19 CODE is replaced by the following:
SECTION 1.19 CODE. The term "Code" means the Tax Reform Act of 1986, as now
or hereafter amended, or any corresponding provisions of prior or
subsequent United States revenue laws.
4. SECTION 2.10 LOANS is replaced by the following:
SECTION 2.10A LOANS ESTABLISHED PRIOR TO JANUARY 1, 1987. Unless otherwise
restricted by the Plan, the Participant may get a loan under the
certificate before the Retirement Date. The Participant's total Annuity
Value (including the loan reserve account as described below) will be the
sole security for the loan. A loan is effective on the first day of the
month following the date the Participant's loan agreement form is approved
by Equitable.
The amount of the loan may not be more than (i) 80% of the total Annuity
Value under the certificate, if such total Annuity Value is greater than or
equal to $3,750 and less than $12,500, (ii) $10,000, if the total Annuity
Value is greater than or equal to $12,500 and less than $20,000 and (iii)
50% of the total Annuity Value if the total Annuity Value is greater than
or equal to $20,000, but in no event shall the loan amount exceed $50,000
less the highest outstanding loan balance under the certificate during the
one year period ending the day before the effective date of the loan. The
minimum loan permitted is $3,000. The total Annuity Value is the value as
of the loan effective date. Only one outstanding loan is permitted at a
time under a certificate and the Participant will not be permitted to get a
new loan until sixty days have elapsed since the prior loan, including all
interest due, was repaid. As a condition for granting a loan, Equitable
will require the Participant to represent that the loan amount requested,
when aggregated with loans (principal plus interest) from all qualified
plans of the Participant's Employer, does not exceed the greater of $10,000
or 50% of the value of the Participant's non-forfeitable accrued benefits,
and in no event exceeds $50,000. Equitable may also require the Participant
to elect out of Federal income tax withholding with respect to any interest
and/or loan principal that would otherwise be subject to withholding.
The loan term will be either (i) 5 years or (ii) 10 years, if the
Participant represents that the purpose of the loan is to acquire, build or
substantially rehabilitate a dwelling unit which, within a reasonable
period of time, is to be used by the Participant or a member of the
Participant's family. In any event, the loan term may not extend beyond the
earlier of (i) the Retirement Date, (ii) the date Equitable receives
written notice to terminate the Participant's participation under the
Contract pursuant to Section 2.06, (iii) the date Equitable pays a death
benefit pursuant to Section 2.09, and (iv) any date provided for such loans
by future Federal tax rules. Future Federal tax rules may also impose
certain additional requirements to obtain the ten year loan period
described above. These requirements may also apply to existing ten year
loans.
On the loan effective date, Equitable will transfer to a loan reserve
account an amount equal to the sum of (i) the loan amount, which will earn
interest at an effective annual rate of 4% during the loan term, and (ii)
25% of the loan amount, which will earn interest at the Guaranteed Interest
Rate, as defined in the certificate. The Participant may specify which
Accounts these amounts are to be transferred from. In the absence of
direction by the Participant, or if the Participant's directions cover only
part of the amount required to be transferred to the loan reserve account,
Equitable will transfer the required (or additional required) amounts from
each Account based on the proportion that each Account's Annuity Value
bears to the total Annuity Value of all Accounts. On each loan anniversary
(or first business day thereafter, if the loan anniversary is not a
business day), interest earned at 4% during the prior year will be
transferred to the portion of the loan reserve account that earns interest
at the Guaranteed Interest Rate.
PF 17039T Page 1
<PAGE>
Equitable will charge loan interest at an effective annual rate of 6% which
is due on each loan anniversary. If annual loan interest (except interest
due at the end of the loan term) is not received by Equitable's Processing
Office within fifteen days after the due date, Equitable will deduct and
treat as a partial withdrawal from the portion of the loan reserve account
which earns interest at the Guaranteed Interest Rate an amount sufficient
to pay the interest plus any applicable withdrawal charges and any required
income tax withholding.
The loan may be repaid in part on any loan anniversary, and may be repaid
in full at any time on or after the first loan anniversary. However, any
payments received will first be applied to interest due, with the balance
applied towards repayment of the loan. Any partial loan repayment will
result in a transfer of the amount repaid from (i) the portion of the loan
reserve account that earns 4% to (ii) the portion of the loan reserve
account that earns the Guaranteed Interest Rate. Sixty days after a partial
repayment is made, the amount repaid will be transferred from the loan
reserve account to the Guaranteed Interest Account and may be withdrawn,
transferred, or annuitized as described in the certificate.
No partial withdrawals or transfers from the loan reserve account may be
made by the Participant.
Upon full repayment of the loan by the Participant, Equitable will credit
the Guaranteed Interest Rate to the full loan reserve account. Sixty days
after the loan is fully repaid, any amounts remaining in the loan reserve
account will be transferred to the Guaranteed Interest Account and may be
withdrawn, transferred or annuitized as described in the certificate.
If the remaining loan principal and accrued interest are not paid on or
prior to the end of the loan term, Equitable will deduct from the loan
reserve account and treat as a partial withdrawal an amount sufficient to
repay the principal and accrued interest, plus any applicable withdrawal
charges and required income tax withholding. Sixty days after the end of
the loan term, any amounts remaining in the loan reserve account will be
transferred to the Guaranteed Interest Account and may be withdrawn,
transferred or annuitized as described in the certificate.
Upon annuitization prior to full repayment of the loan by the Participant,
the Annuity Value of the Accounts maintained on behalf of such Participant
will be reduced by the portion of the loan reserve account that earns
interest at an effective annual rate of 4%.
Upon termination of participation prior to full repayment of the loan by
the Participant, Equitable will pay the Cash Value of the Accounts
maintained on behalf of such Participant reduced by the portion of any loan
reserve account that earns interest at an effective annual rate of 4%.
5. The new section, SECTION 2.10B LOANS ESTABLISHED JANUARY 1, 1987 OR LATER
is added following SECTION 2.10A LOANS ESTABLISHED PRIOR TO JANUARY 1,
1987:
SECTION 2.10B LOANS ESTABLISHED JANUARY 1, 1987 OR LATER. Unless otherwise
restricted by the Plan, Agreement or the Code, the Participant may get a
loan under the certificate before the Retirement Date. However, future
restrictions in the Code may require revision or withdrawal of the loan
provisions as provided below. The Participant's total Annuity Value
(including the loan reserve account as described below) will be the sole
security for the loan. A loan is effective on the first day of the month
following the date the Participant's loan agreement form is approved by
Equitable.
Beginning the first day of the third month following the effective date of
the loan and quarterly on the first day of the month thereafter, loan
payments must be made to Equitable. Such payments will be equal to the sum
of (a) and (b) where
(a) is the loan interest, calculated at an effective annual rate of 6%, and
(b) is an amortized portion of loan principal.
By each due date, if the amount of the loan payment is less than the amount
due or the loan payment is not received at Equitable's Processing Office,
Equitable will deduct and treat as a partial withdrawal from the loan
reserve account an amount equal to the interest and principal payments due
plus any applicable withdrawal charges and any required income tax
withholding. Specifically, an amount equal to the principal payment will be
deducted from the portion of the loan reserve account which earns interest
at 4%, and an amount equal to the interest payment plus any applicable
withdrawal charges and required income tax withholding will be deducted
from the portion of the loan reserve account which earns interest at the
Guaranteed Interest Rate. Amounts deducted will be reportable to the IRS
and other appropriate government authorities as taxable distributions. In
addition, the Participant may be subject to a 10% penalty tax on the
taxable portion of the amounts deducted.
The amount of the loan may not be more than (i) 80% of the total Annuity
Value under the certificate, if such total Annuity Value is greater than or
equal to $3,750 and less than $12,500, (ii) $10,000, if the total Annuity
Value is greater than or equal to $12,500 and less than $20,000 and (iii)
50% of the total Annuity Value if the total Annuity Value is greater than
or equal to $20,000, but in no event shall the loan amount exceed $50,000
less the highest outstanding loan balance under the certificate during the
one year period ending the day before the effective date of the loan. The
minimum loan permitted is $3,000. The total Annuity Value is the value as
of the loan effective date. Only one outstanding loan is permitted at a
time under a certificate and the Participant will not be permitted to get a
new loan until sixty days have elapsed since the prior loan was fully
repaid, including all interest due. As a condition for granting a loan,
Equitable will require the Participant to represent that the loan amount
requested, when aggregated with loans (principal plus interest) from all
qualified Plans of the Participant's Employer, does not exceed the greater
of $10,000 or 50% of the value of the Participant's non-forfeitable accrued
benefits, and in no event exceeds $50,000 less the highest outstanding
balance of all loans from qualified Plans during the twelve month period
ending on the day before the effective date of the loan. In addition, if
participation under the certificate is pursuant to terms of a Plan
established by the
PF 17039T Page 2
<PAGE>
employer, the provisions of the certificate requiring spousal consent in
order to receive a loan will apply if the Participant is married.
Equitable may also require the Participant to elect out of Federal income
tax withholding with respect to any interest and/or loan principal that
would otherwise be subject to withholding.
The loan term will be either (i) 5 years or (ii) 10 years, if the
Participant represents that the purpose of the loan is to acquire, build or
substantially rehabilitate a dwelling unit which, within a reasonable
period of time, is to be used as the principal residence of the
Participant. In any event, the loan term may not extend beyond the earlier
of (i) the Retirement Date, (ii) the date Equitable receives written notice
to terminate the Participant's participation under the Contract pursuant to
Section 2.06, (iii) the date Equitable pays a death benefit pursuant to
Section 2.09, and (iv) any date provided for such loans by future Federal
tax rules including acceleration of the loan repayment in order that the
operation of the loan provisions do not adversely affect the tax treatment
of the Contract. Future Federal tax rules may also impose certain
additional requirements to obtain the ten year loan period described above
which may apply to existing ten year loans.
On the loan effective date, Equitable will transfer to a loan reserve
account an amount equal to the sum of (i) the loan amount, which will earn
interest at an effective annual rate of 4% during the loan term and (ii)
25% of the loan amount, which will earn interest at the Guaranteed Interest
Rate, as defined in the certificate. The Participant may specify from which
Accounts these amounts are to be transferred. In the absence of direction
by the Participant, or if the Participant's directions cover only part of
the amount required to be transferred to the loan reserve account,
Equitable will transfer the required (or additional required) amounts from
each Account based on the proportion that each Account's Annuity Value
bears to the total Annuity Value of all Accounts. On the first day of the
third month following the effective date of the loan and quarterly
thereafter (or the first business day thereafter, if such day is not a
business day), interest earned at the rate of 4% annually during the prior
quarter will be transferred to the portion of the loan reserve account that
earns interest at the Guaranteed Interest Rate.
The loan must be repaid in part on each quarterly due date and may be
repaid in full at any time on or after the first loan anniversary and must
include the full interest due. Any payments received will first be applied
to interest due, with the balance applied towards repayment of the loan.
Any partial loan repayment will result in a transfer of an amount equal to
the principal repaid from (i) the portion of the loan reserve account that
earns 4% to (ii) the portion of the loan reserve account that earns the
Guaranteed Interest Rate. Sixty days after a partial repayment is made, the
principal amount repaid will be transferred from the loan reserve account
to the Fixed Income Account and may be withdrawn, transferred or annuitized
as described in the certificate.
No partial withdrawals or transfers from the loan reserve account may be
made by the Participant.
Upon full repayment of the loan by the Participant, Equitable will credit
the Guaranteed Interest Rate to the full loan reserve account. Sixty days
after the loan is fully repaid, any amounts remaining in the loan reserve
account will be transferred to the Fixed Income Account and may be
withdrawn, transferred or annuitized as described in the certificate.
Upon annuitization prior to full repayment of the loan by the Participant,
the Annuity Value of the Accounts maintained on behalf of such Participant
will be reduced by the portion of the loan reserve account that earns
interest at an effective annual rate of 4%.
Upon termination of participation prior to full repayment of the loan by
the Participant, Equitable will pay the Cash Value of the Accounts
maintained on behalf of such Participant reduced by the portion of any loan
reserve account that earns interest at an effective annual rate of 4%.
VICE PRESIDENT
SPECIMEN AND SECRETARY SPECIMEN PRESIDENT
PF 17039T Page 3
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
For Participants covered under Plans issued in conjunction with optional
retirement programs or Plans adopted by universities effective on your
Participation Date, we have amended your Certificate issued under Group Annuity
Contract No. 11930CT as follows:
1. With respect to PART I-- DEFINITIONS, SECTION 1.18 CASH VALUE is replaced
by the following section:
SECTION 1.18 CASH VALUE.
No Withdrawal Charge: With respect to a Participant, when withdrawals are
permitted under Section 2.07, the term "Cash Value" means an amount equal
to the Annuity Account Value less any outstanding loan after the earliest
of the following occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such Participant and (b) the Participant's attainment of age 59
1/2 years, or (ii) the completion of twelve Participation Years with
respect to such Participant, or (iii) the Participant's attainment of age
55, the completion of five Participation Years with respect to such
Participant and the receipt by Equitable of a properly completed settlement
election form providing for the application of the Annuity Account Value to
purchase an Eligible Annuity Certain, defined in Section 1.14B or (iv) the
completion of three Participation Years with respect to such Participant
and the receipt by Equitable of a properly completed settlement election
form providing for the application of the Annuity Account Value to purchase
a Period Certain Annuity, defined in Section 1.14C, where the certain
period of such annuity is at least ten years. At other times, the Cash
Value equals the Annuity Account Value less any outstanding loan and less a
withdrawal charge.
Withdrawal Charge: When withdrawals are permitted under Section 2.07, the
withdrawal charge equals the lesser of (a) or (b) where;
(a) equals
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Account Value over (ii)
the Free Corridor Amount defined in Section 2.07.
(b) in the excess, if any, of (i) 8% of the total Contributions made on
behalf of such Participant during the current Participation Year and
the preceding nine Participation Years over (ii) the cumulative total
of any withdrawal charges made pursuant to Sections 2.07 and 2.07A.
2. With respect to PART II -- PARTICIPANT'S ACCOUNT, SECTION 2.07 PARTIAL
WITHDRAWALS, the first paragraph is amended to read as follows:
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions
under the terms of the Agreement or the Plan, which ever is applicable, or
to applicable laws and regulations, a Participant may elect by written
notice to Equitable to make a partial withdrawal from the Divisions before
such Participant's Retirement Date.
3. With respect to PART II -- PARTICIPANT'S ACCOUNT, SECTION 2.07A PARTIAL
WITHDRAWAL CHARGES is replaced by the following:
PF 17041T-U
<PAGE>
NO WITHDRAWAL CHARGE: When and to the extent withdrawals are permitted under
Section 2.07, there will be no partial withdrawal charge if (a) the amount of
partial withdrawal requested is not greater than the Free Corridor Amount
defined in Section 2.07B or (b) the Cash Value is equal to the Annuity Account
Value less any outstanding loan, pursuant to Section 1.18.
WITHDRAWAL CHARGE: When and to the exert withdrawals are permitted under Section
2.07, if the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Divisions an amount
equal to the Free Corridor Amount, and (ii) then withdraw an amount equal to the
excess of the amount requested over the Free Corridor Amount, plus a partial
withdrawal charge. Such partial withdrawal charge will be equal to the lesser of
(a) or (b) where:
(a) is an amount equal to
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn in excess of the Free Corridor Amount
(including such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on
behalf of such Participant during the current Participation Year and
the nine preceding Participation Years over (ii) the cumulative total
of any prior partial withdrawal charges made pursuant to this Section.
4. With respect to PART II -- PARTICIPANT'S ACCOUNT, SECTION 2.10A LOANS
ESTABLISHED PRIOR TO JANUARY 1, 1987, the first sentence is amended to read
as follows:
The Participant is eligible for a loan under the Contract before the
Retirement Date, if permitted by the Plan or Agreement and if not
restricted by applicable laws and regulations.
5. With respect to PART II -- PARTICIPANT'S ACCOUNT, SECTION 2.10B LOANS
ESTABLISHED JANUARY 1, 1987 OR LATER, the first sentence is amended to read
as follows:
The Participant is eligible for a loan under the Contract before the
Retirement Date, if permitted by the Plan or Agreement and if not
restricted by applicable laws and regulations.
6. With respect to PART III -- ANNUITY BENEFITS, SECTION 3.03 ELECTION AND
COMMENCEMENT OF ANNUITY BENEFITS, the first, second and third paragraphs
are amended to read as follows:
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living,
the Annuity Account Value less any outstanding loan shall be applied to
provide the Normal Form of Annuity Benefit, unless such Participant elects
(i) to receive the Cash Value of the certificate in a single sum, if such
election is permitted by the Plan or Agreement, (ii) to receive not more
than a specific percentage or dollar amount of the Cash Value of the
certificate in a single sum (if permitted by the Plan or Agreement) and to
apply the remainder of the Cash Value to provide an Annuity Benefit on any
annuity form offered by Equitable, as elected by the Participant, subject
to Equitable's rules then in effect and any applicable requirements under
the Code, if such election is permitted by the Plan or Agreement or (iii)
to apply such Annuity Account Value or Cash Value, whichever is applicable
pursuant to the first paragraph of Section 3.04, to provide an Annuity
Benefit on any other annuity form offered by Equitable and permitted by the
Plan or Agreement, as elected by the Participant, subject to Equitable's
rules then in effect and any other applicable requirements under the Code.
A Participant can elect to divide the applicable value between a partial
sum payment and an annuity form, if such election is in accordance with the
Plan or Agreement.
PF 17041T-U
<PAGE>
Equitable will provide notice and election forms to a Participant not more
than six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract
pursuant to Section 2.06 before the Retirement Date, an election may be
made to receive an Annuity Benefit in lieu of the Cash Value.
VICE PRESIDENT
SPECIMEN AND SECRETARY SPECIMEN PRESIDENT
PF 17041T-U
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
For Participants covered under Plans issued in conjunction with optional
retirement programs or Plans adopted by universities, effective on your
Participation Date, we have amended your Certificate issued under Group Annuity
Contract No. 11930CT as follows:
1. With respect to PART I - DEFINITIONS, SECTION 1.18 CASH VALUE is replaced
by the following section:
SECTION 1.18 CASH VALUE.
NO WITHDRAWAL CHARGE: With respect to a Participant, when withdrawals are
permitted under Section 2.07, the term "Cash Value" with respect to such
Participant's Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account means an amount equal to
the Annuity Values of such Accounts after the earliest of the following
occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such Participant and (b) the Participant's attainment of age
59 1/2 years, or (ii) the completion of 12 Participation Years with respect
to such Participant, or (iii) the Participant's attainment of age 55, the
completion of five Participation Years with respect to such Participant and
the receipt by Equitable of a properly completed settlement election form
providing for the application of the Annuity Values to purchase an Eligible
Annuity Certain, defined in Section 1.14B or (iv) the completion of three
Participation Years with respect to such Participant and the receipt by
Equitable of properly completed settlement election form providing for the
application of the Annuity Values to purchase a Period Certain Annuity,
defined in Section 1.14C, where the certain period of such annuity is at
least ten years. At other times, the sum of the Cash Values of such
Accounts equals the sum of the Annuity Values of such Accounts, less a
withdrawal charge.
WITHDRAWAL CHARGE: When withdrawals are permitted under Section 2.07, the
withdrawal charge equals the lesser of (a) or (b) where;
(a) equals
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6,7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Values of such Accounts
over (ii) the Free Corridor Amount defined in Section 2.07B.
(b) is the excess, if any, of (i) 8% of the total contributions made on
behalf of such Participant during the current Participation Year and
the preceding nine Participation Years over (ii) the cumulative total
of any withdrawal charges made pursuant to Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account will be in the
same proportion as are the Annuity Values of such Accounts.
2. With respect to PART II - PARTICIPANT'S ACCOUNT, SECTION 2.07 PARTIAL
WITHDRAWALS, the first paragraph is amended to read as follows:
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions
under the terms of the Agreement or the Plan, whichever is applicable, or
to applicable laws and regulations, a Participant may elect by written
notice to Equitable to make a partial withdrawal from the Stock Account,
Balanced Account, Aggressive Stock Account, Money Market Account and the
Guaranteed Interest Account maintained for such Participant before such
Participant's Retirement Date.
PF17037T-U
<PAGE>
3. With respect to PART II - PARTICIPANT'S ACCOUNT, SECTION 2.07A PARTIAL
WITHDRAWAL CHARGES is replaced by the following:
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, when and to the extent withdrawals are permitted under Section
2.07, Equitable will withdraw from the Stock Account, Balanced Account,
Aggressive Stock Account, Money Market Account and Guaranteed Interest
Account an amount equal to the lesser of (a) the full amount of partial
withdrawal requested or (b) the sum of the Annuity Values of such Accounts,
provided the request for partial withdrawal is made after the earliest of
the following occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such Participant and (b) such Participant's attainment of age
59 1/2 years, or (ii) the completion of 12 Participation Years with respect
to such Participant, or (iii) the Participant attainment of age 55, the
completion of five Participation Years with respect to such Participant and
the receipt by Equitable of a properly completed settlement election form
providing for the application of the Annuity Values to purchase and
Eligible Annuity Certain, defined in Section 1.14B, or (iv) the completion
of three Participation Years with respect to such Participant and the
receipt by Equitable of a properly completed settlement election form
providing for the application of the Annuity Values to purchase a Period
Certain Annuity, defined in Section 1.14C, where the certain period of such
annuity is at least ten years. At all other times, the sum of the Cash
Values of such Accounts equals the sum of the Annuity Values of such
Accounts, less the applicable withdrawal charge.
4. With respect to PART II - PARTICIPANT'S ACCOUNT, SECTION 2.07A PARTIAL
WITHDRAWAL CHARGES, the third paragraph is amended to read as follows:
If the amount of the partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will, when and to the extent withdrawals are
permitted under Section 2.07, (i) first withdraw from such Accounts an
amount equal to the Free Corridor Amount, and (ii) then withdraw an amount
equal to the excess of the amount requested over the Free Corridor Amount,
plus a withdrawal charge. Such withdrawal charge will be equal to the
lesser of (a) or (b) where:
(a) is an amount equals to
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6,7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn (including such charge) pursuant to (ii) of the
preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on
behalf of such Participant during the current Participation Year and
the preceding nine Participation Years over (ii) the cumulative total
of any withdrawal charges made pursuant to this Section.
5. With respect to PART II - PARTICIPANT'S ACCOUNT, SECTION 2.10 LOANS, the
first sentence is amended to read as follows:
The Participant is eligible for a loan under the Contract before the
Retirement Date, if permitted by the Plan or Agreement and if not
restricted by applicable laws and regulations.
6. With respect to PART III - ANNUITY BENEFITS, SECTION 3.03 ELECTION AND
COMMENCEMENT OF ANNUITY BENEFITS, the first, second and third paragraphs
are amended to read as follows:
PF 17037T-U
<PAGE>
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living, the
Annuity Values of such Participant's Guaranteed Interest Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account shall be
applied to provide the Normal Form of Annuity Benefit, unless such Participant
elects (i) to receive the Cash Value of such Accounts in a single sum, if such
election is permitted by the Plan or Agreement, (ii) to receive not more than a
specific percentage or dollar amount of the Cash Value of such Accounts in a
single sum (if permitted by the Plan or Agreement) and to apply the remainder of
the Cash Value to provide an Annuity Benefit on any annuity form offered by
Equitable, as elected by the Participant, subject to Equitable's rules then in
effect and any applicable requirements under the Code, if such election is
permitted by the Plan or Agreement or (iii) to apply such Annuity Value or Cash
Value, whichever is applicable pursuant to the first paragraph of Section 3.04,
to provide an Annuity Benefit on any other annuity form offered by Equitable and
permitted by the Plan or Agreement, as elected by the Participant, subject to
Equitable's rules then in effect and any applicable requirements under the Code.
A Participant can elect to divide the applicable value between a partial sum
payment and an annuity form, if such election is in accordance with the Plan or
Agreement.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.06 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Value of such Participant's Guaranteed
Interest Account, Stock Account, Balanced Account, Aggressive Stock Account and
Money Market Account, unless such election is restricted by the Plan.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17037T-U
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective July 1, 1986, or your Participation Date, whichever is the later, we
have amended your Certificate issued under Group Annuity Contract No. 11930CT as
follows:
1. With respect to PART 1 -- DEFINITIONS, the following section is added:
SECTION 1.14C PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity"
means an annuity not involving life contingencies issued by Equitable which
does not permit any prepayment of the unpaid principal.
2. With respect to SECTION 1.18 CASH VALUE, the following text replaces the
paragraphs under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market
Account means an amount equal to the Annuity Values of such Accounts after
the earliest of the following occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such Participant and (b) the Participant's attainment of age 59
years and 6 months, or (ii) the completion of twelve Participation Years
with respect to such Participant, or (iii) the Participant's attainment of
age 55, the completion of five Participation Years with respect to such
Participant and the receipt by Equitable of a properly completed settlement
election form in order to apply the Annuity Values to purchase an Eligible
Annuity Certain, defined in Section 1.14B, or (iv) the completion of three
Participation Years with respect to such Participant and the receipt by
Equitable of a properly completed settlement election form in order to
apply the Annuity Values to purchase a Period Certain Annuity, defined in
Section 1.14C, where the certain period of such Annuity is at least ten
years. At all other times, the sum of the Cash Values of such Accounts
equals the sum of the Annuity Values of such Accounts, less a withdrawal
charge.
3. With respect to SECTION 2.07A PARTIAL WITHDRAWAL CHARGES, the following
paragraph replaces the paragraph under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, Equitable will withdraw from the Stock Account, Balanced
Account, Aggressive Stock Account, Money Market Account and Guaranteed
Interest Account an amount equal to the lesser of (a) the full amount of
partial withdrawal requested or (b) the sum of the Annuity Values of such
Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The later of (a) the completion
of five Participation Years with respect to such Participant and (b) such
Participant's attainment of age 59 years and 6 months, or (ii) the
completion of twelve Participation Years with respect to such Participant,
or (iii) the Participant's attainment of age 55, the completion of five
Participation years with respect to such Participant and the receipt by
Equitable of a properly completed settlement election form in order to
apply the Annuity Values to purchase an Eligible Annuity Certain, defined
in Section 1.14B, or (iv) the completion of three Participation Years with
respect to such Participant and the receipt by Equitable of a properly
completed settlement election form in order to apply the Annuity Values to
purchase a Period Certain Annuity, defined in Section 1.14C, where the
certain period of such Annuity is at least ten years. At all other times,
the sum of the Cash Values of such Accounts equals the sum of the Annuity
Values of such Accounts, less a withdrawal charge.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17036T
<PAGE>
The Equitable Life Assurance Society Of The United States
Effective July 1, 1986, or your Participation Date, whichever is the later, your
Certificate issued under Group Annuity Contract No. 11930CT is amended as
follows:
With respect to Section 2.08 ANNUAL ADMINISTRATIVE CHARGE, the first paragraph
is replaced by the following paragraph:
As of the last day of each Participation Year before a Participant's
Retirement Date, Equitable will withdraw from the Guaranteed Interest
Account, Stock Account, Money Market Account, Balanced Account and
Aggressive Stock Account maintained under the Contract, as to the
Contributions remitted with respect to such Participant, an annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i)
(a) the Annuity Values of the Guaranteed Interest Account, Stock Account,
Money Market Account, Balanced Account and Aggressive Stock Account and (b)
the amount of any loan reserve account held, at the end of the
Participation Year and (ii) any withdrawals made from such Accounts
pursuant to Section 2.07, 2.07A or 2.07B and from any loan reserve account,
during that Participation Year. The charge will be allocated between (i)
the Stock Account, (ii) Money Market Account, (iii) Balanced Account, (iv)
Aggressive Stock Account and (v) the Guaranteed Interest Account and loan
reserve account, in proportion to the Annuity Values of (i), (ii), (iii),
(iv), and (v), at the end of the Participation Year. The portion of the
charge attributable to (v) above will be first withdrawn from the
Guaranteed Interest Account and then, if the Annuity Value of the
Guaranteed Interest Account is not sufficient, the remaining allocation
will be withdrawn from the portion of the loan reserve account that earns
interest at the Guaranteed Interest Rate.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17032T
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Your certificate issued under Group Annuity Contract No. 11930CT is amended as
follows:
With respect to the language on the front page, the following statement
is deleted:
"THIS CONTRACT MAY NOT BE SUITABLE FOR A PARTICIPANT IF THE ONLY CONTRIBUTION
TO BE MADE ON SUCH PARTICIPANT'S BEHALF IS A SUBSTANTIAL SINGLE SUM
CONTRIBUTION."
VICE PRESIDENT
SPECIMEN AND SECRETARY SPECIMEN PRESIDENT
PF17029T
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THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective as of January 1, 1985 or your Participation Date, whichever is later,
we have amended the Certificate issued under Group Annuity Contract 11930CT as
follows:
1. Section 1.02B entitled "Plan" is amended to read as follows:
"The term "Plan" means a program established by an Employer described in
clause (ii) of Section 1.01, for the purchase of Annuities on behalf of
employees under the Contract, which program is not exempt under 29 CFR
2510.3-2(f) and is therefore an "employee pension benefit plan" subject to
the requirements of Title I of the Employee Retirement Income Security Act
of 1974 ("ERISA") as it may be amended from time to time."
2. Section 1.03 entitled "Annuity" is amended to read as follows:
"The term "Annuity" means an annuity purchased in accordance with the terms
of an Agreement, Plan, or program, which annuity meets the requirements of
Section 403(b) of the Code."
3. In Section 1.11 entitled "Retirement Date" a new paragraph is added to read
as follows:
"If participation under the Contract is pursuant to the terms of a Plan,
the designation of, and any election to change the Retirement Date under
this Section 1.11 shall be made by the Participant in accordance with this
Section 1.11 and the terms of the Plan."
4. Section 2.06 entitled "Termination of Participation" is amended by the
addition of the following paragraph immediately after the end of the first
paragraph:
"In the event a Participant terminates participation under the Contract
pursuant to this Section 2.06, the Cash Values payable to such Participant
are not reduced by any withdrawal charges (as described in Section 1.18),
and the Participant is not a Participant in a Plan or Program that
restricts or imposes a penalty on such termination, then the Participant
will not be permitted to resume making Contributions under the Contract for
a period of twelve consecutive months following the date of termination.
The Participant may resume making Contributions on the first day of the
month coinciding with or next following the end of the twelve month
period."
5. New Section 3.06 is added to read as follows:
SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS APPLICABLE TO
PLANS.
"If participation under the Contract is pursuant to the terms of a Plan,
then the provisions of this Section 3.06 shall supersede any contrary
provisions in the Contract and Certificate.
"Unless a married Participant and the Participant's spouse elect otherwise
in accordance with the terms of the Plan and as provided in this Section
3.06, as of a Participant's Retirement Date, the Annuity Values of a
Participant's Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Accounts shall be paid to the
Participant in the form of a `Qualified Joint and Survivor Annuity.' A
`Qualified Joint and Survivor Annuity' is an Annuity Benefit for the life
of the Participant with a survivor annuity for the life of the
Participant's spouse which is not less than 50% and not more than 100% of
the annuity which is payable during the joint lives of the Participant and
the Participant's spouse. If the Participant is not married and does not
elect otherwise, the Annuity Values shall be paid in the form of a life
annuity.
"In addition, unless an optional form of benefit is elected pursuant to the
terms of the Plan and this Section 3.06, if a married Participant dies
before payment of the Participant's Annuity Values or Cash Values have
commenced, then the death benefit described in Section 2.09, shall be paid
in the form of a life annuity for the Participant's spouse.
PF 17024T
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"The Participant may elect, on a form acceptable to his Employer and
Equitable, within the 90 consecutive day period before the date as of which
payment of the Annuity Values is to commence, not to receive payment in the
form of a Qualified Joint and Survivor Annuity, or, if the Participant is
unmarried, a life annuity, in which case the Participant may elect to
receive the Annuity Values or Cash Values, as the case may be, in any other
form of payment available under the terms of the Plan and this Contract.
The Participant may also elect, on a form acceptable to his Employer and
Equitable, on the first day of the Plan year in which the Participant turns
age 35 (or the date on which the Participant ceases to work for the
employer if earlier) for a Beneficiary other than the Participant's spouse
to receive the death benefit. An election under either of the two preceding
sentences must be consented to by the Participant's spouse in writing
before a notary or a representative of the Plan and must be limited to a
benefit for a specific Beneficiary. However, no spousal consent will be
required if the Participant can prove to the satisfaction of the Employer
and Equitable, that the Participant has no spouse or else that the spouse
cannot be located. Each election to designate a Beneficiary other than the
Participant's spouse must be consented to by the spouse and any election
made under this paragraph to waive the spouse's benefits may be revoked
without the consent of the spouse at any time prior to the date as of which
payments commence. Any consent to waive the spouse's benefits shall be
valid only with regard to the spouse who signs it. Any new waiver or change
of Beneficiary will require a new spousal consent.
"The provisions requiring spousal consent in this Section 3.06 shall also
apply with regard to a Participant's election to terminate participation or
make partial withdrawals pursuant to Sections 2.06 and 2.07 and with regard
to a Participant's taking a loan against the Cash Values of his Accounts. A
spouse's written consent, witnessed by a representative of the Plan or
notary, must be given on a form acceptable to the Employer and Equitable,
within the 90 consecutive day period prior to such payment, withdrawal, or
loan, unless the Participant can show that the Participant has no spouse or
that the spouse cannot be located.
"If the Annuity Values applied to provide the spousal benefits on the date
payment is to commence are in the aggregate less than $3,500, Equitable may
choose to make payment in a single sum rather than in the form of a
Qualified Joint and Survivor Annuity or life annuity as described herein.
Upon any payment made pursuant to this Section 3.06, Equitable will be
released from any and all liability for payment with respect to the
Contributions made for the Participant."
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17024T
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[EQUITABLE LOGO] THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
1285 AVENUE OF THE AMERICAS, NEW YORK, NEW YORK 10019
EQUI-PENSION-GV CONTRACT
GROUP ANNUITY CONTRACT NO. 11931 CH
CONTRACT HOLDER: UNITED STATES TRUST COMPANY OF NEW YORK
CONTRACT CHANGE DATE: DECEMBER 31, 1984
The Initial Guaranteed Interest Rate is 10% and is effective until December 31,
1980. The Guaranteed Interest Rate after December 31, 1980 for a Class of
Participants will be established before the beginning of each calendar year, but
will not be less than the Minimum Guaranteed Interest Rate for such year and
Class of Participants.
This contract ("the Contract") is issued in consideration of the payment to
Equitable of the contributions made under the Contract.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
The provisions on the following pages are part of the Contract.
FOR THE CONTRACT HOLDER: FOR THE EQUITABLE:
By /s/ [Signature Unreadable] By /s/ Coy Eklund
............................... ..................................
President
Title Vice President By /s/ Rodney L. Enochs
............................... ..................................
Vice President and Secretary
Dated 3/7/80 Date of Issue March 7, 1980
............................... .......................
At New York, New York
..................................
(Head Office)
No 11931 CH PARTICIPATING
<PAGE>
This page 2 reserved for information
in connection with the issuance
of certificates under this Contract.
Page 2
<PAGE>
This page 3 reserved for information
in connection with the issuance
of certificates under this Contract.
Page 3
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PART I - DEFINITIONS
SECTION 1.01 EMPLOYER
The term "Employer" means the sole proprietor or the partnership adopting the
Plan, or any successor unincorporated trade or business that assumes in writing
the obligations of the Plan. The Plan is adopted by the Employer's execution of
the Adoption Statement which constitutes a part of the Plan and pursuant to
which the Employer adopts the Plan. A sole proprietor is deemed to be his own
Employer and a partnership is deemed to be the Employer of each partner.
SECTION 1.02 PLAN
The term "Plan" means the HR-10 Group Annuity/Profit Sharing Plan with Optional
Life Insurance, a master profit sharing plan for self-employed individuals and
their employees sponsored by Equitable which has been determined by the Internal
Revenue Service to meet the requirements for qualification under Section 401(a)
of the Code.
SECTION 1.03 ANNUITY
The term "Annuity" means an annuity purchased in accordance with the terms of
the Plan if the Plan, as adopted by the Employer, meets the requirements for
qualification under Section 401(a) of the Code.
SECTION 1.04 ANNUITY BENEFIT
The TERM "Annuity Benefit" means a benefit payable by Equitable pursuant to
Section 3.03 of the contract.
SECTION 1.05 PARTICIPANT
The term "Participant" means a person who has been enrolled by Equitable under
the Contract and for whom the Employer has purchased an Annuity under the
Contract. A person shall become enrolled under the Contract upon receipt by
Equitable of an enrollment form made available by Equitable and completed in a
manner satisfactory to Equitable. An Annuity is purchased for a person enrolled
under the Contract upon receipt by Equitable of an initial Contribution by the
Employer.
SECTION 1.06 CONTRIBUTION
The term "Contribution" means a payment made to Equitable for a Participant with
respect to an Annuity purchased for such Participant under the Contract.
Equitable is under no obligation to accept any Contribution less than $20.00.
SECTION 1.07 PARTICIPATION DATE
The term "Participation Date" with respect to a Participant means the date as of
which Equitable has enrolled such Participant under the terms of the Contract.
SECTION 1.08 PARTICIPATION YEAR
The term "Participation Year" with respect to a Participant means the twelve
month period beginning on (i) the Participation Date, and (ii) each anniversary
thereof, unless otherwise agreed to in writing by Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS
Except as provided in Section 1.10, the term "Class of Participants" refers to
all Participants whose Participation Date is in the same calendar year.
SECTION 1.10 GUARANTEED INTEREST RATE
For each Guaranteed Interest Account, the term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in such
Account. Interest accrues daily. The Guaranteed Interest Rate will never be less
than 3% per annum.
Equitable will from time to time establish and make available for new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new Class of Participants will be established effective with the
effective date of the occurrance of (i), (ii) or (iii) above or any combination
thereof.
For the calendar year next succeeding the end of the period for which an
established Initial Guaranteed Interest Rate is effective and for each
subsequent calendar year thereafter, Equitable will determine for each
established Class of Participants before the beginning of such calendar year a
Yearly Guaranteed Interest Rate for such Class, which Yearly Guaranteed Interest
Rate will not be lower than the effective Minimum Guaranteed Interest Rate
applicable for such Class for such year. For any established Class of
Participants, Equitable reserves the right to change the Minimum Guaranteed
Interest Rate and the applicable period therefor, provided that any such Minimum
Guaranteed Interest Rate will not be lower than the Minimum Guaranteed Interest
Rate that would have been in effect in the absence of such change. Equitable
will notify each Participant in a Class in writing of the Yearly Guaranteed
Interest Rate or of any change in the Minimum Guaranteed Interest Rate at least
15 days prior to its effective date.
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DEFINITIONS (continued)
SECTION 1.11 RETIREMENT DATE
The term "Retirement Date" means the date on which the Participant is to attain
the retirement age specified in the Participant's enrollment form. Before the
Retirement Date the Participant may elect to change the Retirement Date to
another Retirement Date, which may be any date after the filing of the election
(other than the 29th, 30th, or 31st day of any month). No Retirement Date shall
be earlier than the date of attainment of age 59 years and six months nor shall
be later than the date of attainment of age 70 years and six months. Any
election for such change must be made in writing by the Participant and shall
not take effect until received by Equitable at its Home Office.
SECTION 1.12 NORMAL FORM
The "Normal Form" of an Annuity Benefit under the Contract means, (i) if the
Participant has a living spouse at the Retirement Date, the Fixed Annuity
Benefit payable on the Joint and Survivor Life Annuity Form with such spouse as
the contingent annuitant (100% continuation), and (ii) if the Participant does
not have a living spouse at the Retirement Date, the Fixed Annuity Benefit
payable on the Life Annuity Form.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM
The term "Joint and Survivor Life Annuity Form" means an annuity providing
monthly payments while either of two persons upon whose lives such payments
depends is living. The monthly amount to be continued when only one of the
persons is living will be equal to a percentage of the monthly amount that was
paid while both were living. This percentage may be 50% or any higher percentage
up to and including 100%, as elected by the Participant. The payments commence
on the date as of which the Joint and Survivor Life Annuity Form is purchased
and terminate with the last payment due before the death of the survivor.
SECTION 1.14 LIFE ANNUITY FORM
The term "Life Annuity Form" means an annuity providing fixed monthly payments
during the lifetime of the person upon whose life such payments depend. The
payments commence on the date as of which the Life Annuity Form is purchased and
terminate with the last payment due before the death of such person.
SECTION 1.15 ANNUITY VALUE
The term "Annuity Value" with respect to a Participant's Guaranteed Interest
Account means the amount in such Account pursuant to Section 2.02.
SECTION 1.16 CASH VALUE
With respect to a Participant for whom no cash value(s) of existing contract(s)
issued by Equitable is (are) transferred to the Contract pursuant to Section
2.01, the term "Cash Value" with respect to such Participant's Guaranteed
Interest Account means an amount equal to the Annuity Value after either (i) the
later of (a) the completion of five Participation Years with respect to such
Participant and (b) the Participant's attainment of age 59 years and six months,
or (ii) the Participant's attainment of age 70 years and six months. Prior to
such time, the Cash Value of such Participant's Guaranteed Interest Account will
equal the greater of (a) 94% of the Annuity Value of such Account and (b) the
Annuity Value of such Account minus an amount equal to the excess, if any, of
(i) 9% of the total Contributions made on behalf of such Participant during the
current Participation Year and the preceding nine completed Participation Years
over (ii) the cumulative total of any withdrawal charges made pursuant to
Section 2.05.
With respect to a Participant for whom cash value(s) of existing contract(s)
issued by Equitable is (are) transferred to the Contract pursuant to Section
2.01, the term "Cash Value" with respect to such Participant's Guaranteed
Interest Account means an amount equal to the Annuity Value after such
Participant attains age 59 years and six months. Prior to such time, the Cash
Value of such Participant's Guaranteed Interest Account will equal the Annuity
Value of such Account minus an amount equal to the lesser of (a) and (b) where:
(a) is the sum of: (1) 2% of the excess, if any, of (i) the first $10,000 of
Separate Account Transfers over (ii) the cumulative total of any previous
withdrawals made pursuant to subsection (a) of the third paragraph of
Section 2.05 and (2) 6% of the excess, if any, of (i) the Annuity Value
over (ii) the total amount of Separate Account Transfers minus the
cumulative total of any withdrawals made pursuant to Section 2.05 (but such
amount shall not be less than zero).
(b) is the excess, if any, of: (1) the sum of (i) 2% of the first $10,000 of
Separate Account Transfers made during the current Participation Year and
the preceding nine Participation Years and (ii) 9% of all other
Contributions (excluding Separate Account Transfers) made on behalf of the
Participant during the current Participation
Page 5
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DEFINITIONS (continued)
Year and the preceding nine completed Participation Years over (2) the
cumulative total of any withdrawal charges made pursuant to Section 2.05.
SECTION 1.17 CODE
The term "Code" means the Internal Revenue Code of 1954, as now or hereafter
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.18 SEPARATE ACCOUNT TRANSFERS
The term "Separate Account Transfers" with respect to a Participant means the
amount of cash value(s) transferred to the Contract from separate investment
account(s) maintained by Equitable, pursuant to Section 2.01.
PART II - PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS
The Employer is to make Contributions from time to time on such dates and in
such amounts as determined by the Employer pursuant to the terms of the Plan.
The Employer is to specify the Participant with respect to whom each such
Contribution is being made.
Each Contribution received by Equitable with respect to a Participant will,
before its allocation under the Contract, be reduced by the amount of any
applicable taxes, as determined by Equitable, and by the amount of any
applicable deduction in accordance with Section 2.08.
A Participant may, with Equitable's agreement, transfer to the Contract any
amount held with respect to such Participant under a plan covering self-employed
individuals which has been determined by the Internal Revenue Service to meet
the requirements for qualification under Section 401(a) of the Code, as modified
by Section 401(d) of the Code ("Transferred Funds"). Any Transferred Funds from
a contract not issued by Equitable will, before allocation under the Contract,
be reduced by the amount of any applicable taxes, as determined by Equitable.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
SECTION 2.02 GUARANTEED INTEREST ACCOUNT
Equitable maintains a Guaranteed Interest Account under the Contract for each
Participant with respect to whom Contributions are made. Any amount allocated to
the Guaranteed Interest Account becomes part of the general assets of Equitable,
which support the guarantees of the Contract and other contracts.
The amount in a Guaranteed Interest Account at any time is equal to the sum of
all amounts that have been allocated to such Guaranteed Interest Account
pursuant to Section 2.01 and Section 2.03 plus the amount of any interest
accrued but not allocated, less the sum of all amounts that have been withdrawn
pursuant to Section 2.05 and Section 2.06 from such Account and less the sum of
any annual administrative charges accrued but not made. Equitable guarantees
that the amount in a Guaranteed Interest Account at any time before the
Retirement Date will not be less than the sum of all amounts allocated to such
Account pursuant to Section 2.01 and less the sum of all amounts that have been
withdrawn form such Account pursuant to Section 2.05, all accumulated at 3%
interest, compounded annually. In any Participation Year in which no
Contribution is allocated to the Guaranteed Interest Account, the amount in such
Account at the end of the Participation Year shall not be less than the amount
in such Account at the beginning of the Participation Year less the sum of all
amounts withdrawn from such Account pursuant to Section 2.05, all accumulated at
3% interest, compounded annually.
A Guaranteed Interest Account for a Participant terminates on the earliest of
(i) the Retirement Date, (ii) the death of the Participant, and (iii)
termination of participation pursuant to Section 2.04.
No. 11931 H Page 6
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
SECTION 2.03 ALLOCATION TO ACCOUNT
Such Contribution made with respect to a Participant pursuant to Section
2.01, after deduction for any applicable taxes, will be allocated, as of the
date by which Equitable has received such Contribution, to the Guaranteed
Interest Account.
Interest is allocated to the Guaranteed Interest Account at the end of each
Participation Year, at the time of withdrawal pursuant to Sections 2.05 and
2.07, at the time of application of amounts in the Guaranteed Interest Account
to provide Annuity Benefits, and upon termination of participation pursuant to
Section 2.04.
SECTION 2.04 TERMINATION OF PARTICIPATION
Subject to any applicable restrictions under the terms of the Plan, on or before
a Participant's Retirement Date, such Participant may elect by written notice to
terminate participation under the Contract. Upon receipt of such notice,
Equitable will determine the Cash Value, as of the date Equitable received such
notice, of the Guaranteed Interest Account maintained for such Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Guaranteed Interest Account, pay
such Annuity Value and terminate such Participant's participation under the
Contract. This right may be exercised with respect to the Participant only if
both (i) no Contributions have been made under the Contract during the last
three completed Participation Years, and (ii) such Annuity Value is $500 or
less. Equitable reserves the right to terminate a Participant's participation
under the Contract if at least 120 days have elapsed since the issue date shown
on the certificate issued to such Participant under the Contract and no
Contributions have been made under the Contract with respect to such
Participant.
Upon payment of such Cash Value or Annuity Value, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Value or Annuity Value arose.
SECTION 2.05 PARTIAL WITHDRAWALS
Subject to any applicable restrictions under the terms of the Plan, a
Participant may elect by written notice to Equitable to make a partial
withdrawal from the Guaranteed Interest Account maintained for such Participant
before such Participant's Retirement Date.
With respected to partial withdrawals requested by a Participant for whom no
cash value(s) of existing contract(s) issued by Equitable is (are) transferred
to the Contract, Equitable will withdraw from such Account an amount equal to
the lesser of (a) the full amount of partial withdrawal requested or (b) the
Annuity Value of such Account, provided the request for partial withdrawal is
made after either (i) the later of (a) the completion of five Participation
Years with respect to such Participant and (b) such Participant's attainment of
age 59 years and six months, or (ii) such Participant's attainment of age 70
years and six months. If a partial withdrawal with respect to such Participant
is made prior to such time, Equitable will withdraw from such Account an amount
equal to the amount of partial withdrawal requested plus a withdrawal charge.
Such withdrawal charge will equal the lesser of (a) 6% of the total amount to be
withdrawn from the Account pursuant to this Section (including such charge) and
(b) the excess, if any, of (i) 9% of the total Contributions made on behalf of
such Participant during the current Participation Year and the preceding nine
completed Participation Years over (ii) the cumulative total of any prior
withdrawal charges made pursuant to this Section.
With respect to partial withdrawals requested by a Participant for whom cash
value(s) of existing contract(s) issued by Equitable is (are) transferred to the
Contract pursuant to Section 2.01, Equitable will withdraw from such Account an
amount equal to the lesser of (a) the full amount of partial withdrawal
requested or (b) the Annuity Value of such Account, provided the request for
partial withdrawal is made after such Participant's attainment of age 59 years
and six months. If a partial withdrawal with respect to such Participant is made
prior to such time, Equitable will withdraw from such Account an amount equal to
the amount of partial withdrawal requested plus a withdrawal charge. Such
withdrawal charge will be an amount equal to the sum of the charges described in
subsections (a) and (b) below; provided, however, that in no event will such
withdrawal charge exceed an amount described in subsection (c) below:
(a) With respect to the amount of any withdrawal made up to the excess, if any,
of (1) the cumulative total of all Separate Account Transfers made on the
Participant's behalf over
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PARTICIPANT'S ACCOUNT (continued)
(2) the cumulative total of prior withdrawals made to which the withdrawal
charge described in this subsection was applied, an amount equal to the
lesser of (i) 2% of the total amount to be withdrawn pursuant to this
subsection (including such charge) and (ii) $200 minus the cumulative total
of any prior withdrawal charges made pursuant to this subsection.
(b) With respect to any withdrawal made to which the withdrawal charge
described in subsection (a) does not apply, 6% of such amount to be
withdrawn (including such charge).
(c) is the excess, if any, of (1) the sum of (i) 2% of the first $10,000 of
Separate Account Transfers made during the current Participation Year and
the preceding nine Participation Years and (ii) 9% of all other
Contributions (excluding Separate Account Transfers) made on behalf of the
Participant during the current Participation Year and the preceding nine
completed Participation Years over (2) the cumulative total of any prior
withdrawal charges made pursuant to this Section.
Upon withdrawal pursuant to either of the preceding two paragraphs, Equitable
will pay the lesser of the Cash Value of such Account or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by such Participant.
Upon any payment to a Participant pursuant to this Section, Equitable will be
released from any and all liability for payments with respect to the
Contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to this Section may be deferred by
Equitable in accordance with the provisions of Section 4.08.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300. If a withdrawal from the Account made pursuant to this
Section would result in an Annuity Value of less than $200, Equitable will
withdraw the Annuity Value of the Account, pay the Cash Value of the Account to
the Participant, and will terminate such Participant's participation under the
contract.
SECTION 2.06 ANNUAL ADMINISTRATIVE CHARGE
As of the last day of each Participation Year before a Participant's Retirement
Date, Equitable will withdraw from the Guaranteed Interest Account maintained
under the Contract, as to the Contributions remitted with respect to such
Participant, an annual administrative charge equal to the lesser of $30 and 2%
of the sum of (i) the Annuity Value of the Guaranteed Interest Account at the
end of that Participation Year and (ii) any withdrawals made from such Account
pursuant to Section 2.05 during that Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Value of such Participant's Account pursuant to Section 3.02, or upon
termination of such Account pursuant to Section 2.04 or Section 2.07 during a
Participation Year, Equitable will withdraw the administrative charge described
in this Section for the applicable part of that Participation Year.
SECTION 2.07 DEATH BENEFIT
If the Employer reports to Equitable, or if Equitable otherwise ascertains, that
a Participant has died while an Account for such Participant is maintained under
the Contract and before such Participant's Retirement Date, Equitable, upon
receipt of due proof of such death, will pay in a single sum to the beneficiary
designated by such Participant to receive such payment the amount of death
benefit payable with respect to such Participant. The amount of the death
benefit with respect to a Participant at any time prior to the Retirement Date
is equal to the greater of (i) the Annuity Value of the Guaranteed Interest
Account maintained under the Contract for such Participant and (ii) the minimum
death benefit with respect to such Participant. Such minimum death benefit is
the sum of all Contributions made with respect to such Participant pursuant to
Section 2.01 (before reduction pursuant to said Section) less an adjustment for
any withdrawals made pursuant to Section 2.05 from the Account maintained under
the Contract for such Participant. Any such withdrawal will reduce the minimum
death benefit (as adjusted by any previous such withdrawal) by an amount which
is in the same proportion as the amount being withdrawn is to the Annuity Value
then in the Guaranteed Interest Account maintained under the Contract for such
Participant. If, in accordance with the provisions of Section 2.01, the cash
value of an Annuity contract issued by Equitable, which provides for a death
benefit before retirement equal to the greater of the contract cash value or an
alternative amount based on premiums paid or contributions made under the
Annuity contract, is transferred to the Contract, such alternative amount as of
the date of transfer will be included in the "sum of all Contributions" in lieu
of the amount
Page 8
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PARTICIPANT'S ACCOUNT (continued)
of cash value transferred, for purposes of the death benefit under the Contract.
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefor, be withdrawn from the Guaranteed
Interest Account maintained with respect to such Participant under the Contract.
Upon such payment, Equitable will be released from any and all liability for
payments with respect to the Contributions from which the Annuity Value arose.
SECTION 2.08 CHANGE OF DEDUCTIONS FOR NEW PARTICIPANTS
Equitable reserves the right to make deductions to the extent permitted by
applicable law from Contributions made on behalf of new Participants at any time
on or after the Contract Change Date, by as least 90 days advance written notice
to the Contract Holder and by amendment to the Contract. Equitable will
thereupon establish a new Contract Change Date which shall be at least 5 years
later.
Equitable may lower the amount of the administrative charge described in Section
2.06 for new Participants at any time, by at least 15 days advance written
notice to the Contract Holder.
SECTION 2.09 CHANGE OF DEDUCTIONS AND CHARGES FOR EXISTING PARTICIPANTS
Equitable may lower the amount of the administrative charge described in Section
2.06 for existing Participants at any time, by at 15 days advance written notice
to the Contract Holder and to such Participants.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT
The term "Fixed Annuity Benefit" means an Annuity Benefit under which the
monthly payments with respect to a payee are payable in a specified dollar
amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to a payee pursuant to Section 3.03.
SECTION 3.02 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS
As of a Participant's Retirement Date, provided such Participant is then living,
the Annuity Value of such Participant's Guaranteed Interest Account shall be
applied to provide the Normal Form of Annuity Benefit, unless such Participant
elects(i) to receive the Cash Value of such Account in a single sum or (ii) to
apply such Annuity Value or Cash Value, whichever is applicable pursuant to the
first paragraph of Section 3.03, to provide an Annuity Benefit on any other
annuity form offered by Equitable, as elected by the Participant, subject to
Equitable's rules then in effect and any applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.04 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Value of such Participant's Guaranteed
Interest Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.03 and
3.04. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form.
SECTION 3.03 AMOUNT OF ANNUITY BENEFIT
If a Participant elects pursuant to the first paragraph or third paragraph of
Section 3.02 to receive an Annuity Benefit in lieu of the Cash Value of the
Guaranteed Interest Account, the amount applied to provide the Annuity Benefit
will be (i) the Annuity Value of such Account if the payments under the annuity
form elected are contingent upon the survival of a person, or (ii) the Cash
Value of such Account if the payments under the annuity form elected are not
contingent upon the survival of a person.
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ANNUITY BENEFITS (continued)
The amount applied to provide an Annuity Benefit shall be reduced by the amount,
as determined by Equitable, of any applicable tax on annuity considerations. If
such amount is applied on or after the completion of five Participation Years
with respect to such Participant, or if such amount is applied on behalf of a
Participant for whom cash value(s) of existing contract(s) issued by Equitable
was (were) transferred to the Contract pursuant to Section 2.01, the balance
shall purchase the Annuity Benefit on the basis of either (i) the Table of
Guaranteed Annuity Payments shown below or (ii) Equitable's current individual
annuity rates for payment of proceeds, whichever rates would provide a larger
benefit with respect to the payee. If such current individual annuity rates are
used, such Participant's certificate will be replaced by an Equitable
supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a Participant for whom no
cash value(s) of existing contract(s) issued by Equitable was (were) transferred
to the Contract, the balance, after any applicable tax on annuity
considerations, shall purchase the Annuity Benefit on the basis of either (i)
the Table of Guaranteed Annuity Payments shown below or (ii) Equitable's current
individual annuity rates applicable to funds which derive from sources outside
Equitable, whichever rates would provide a larger benefit with respect to the
payee. If such current individual annuity rates are used, such Participant's
certificate will be replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Guaranteed Interest Account
maintained for such Participant shall terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form, are based on 3 1/4% interest and the 1971 ELAS Mortality Table.
Equitable may change the monthly income amounts contained in the Tables of
Guaranteed Annuity Payments and the bases for determining such amounts, for new
Participants, by at least 90 days advance notice to the Contract Holder and by
an amendment to the Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/4 % interest and the 1971 ELAS Mortality Table.
SECTION 3.04 PAYMENT OF ANNUITY BENEFITS
Evidence of each payee's survival must be furnished to Equitable either by
personal endorsement of the check drawn for payment or by other means
satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of a least one of two persons, a payee for payments thereunder
may elect, without the concurrence of any other person, to receive the commuted
value of any remaining payments, provided no person upon whose life the income
depends is surviving.
Upon election by a Participant pursuant to Section 3.02 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due
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ANNUITY BENEFITS (continued)
after the death of the person or persons upon whose life or lives the income may
depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.02.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
TABLE OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM -- 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Male Female Age
Age 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.58 4.64 4.70 4.76 4.82 4.88 4.94 5.00 5.05 5.11
61 4.55 4.62 4.68 4.74 4.81 4.87 4.93 5.00 5.06 5.12 5.18
62 4.58 4.65 4.72 4.78 4.85 4.92 4.99 5.05 5.12 5.19 5.25
63 4.61 4.68 4.75 4.82 4.89 4.97 5.04 5.11 5.18 5.25 5.32
64 4.64 4.71 4.79 4.86 4.94 5.01 5.09 5.17 5.24 5.32 5.40
65 4.67 4.74 4.82 4.90 4.98 5.06 5.14 5.22 5.30 5.38 5.47
66 4.69 4.77 4.85 4.93 5.02 5.10 5.18 5.27 5.35 5.44 5.53
67 4.72 4.80 4.88 4.97 5.05 5.14 5.23 5.31 5.40 5.50 5.59
68 4.74 4.82 4.91 5.00 5.09 5.18 5.27 5.36 5.45 5.55 5.65
69 4.76 4.85 4.94 5.03 5.12 5.22 5.31 5.41 5.50 5.60 5.71
70 4.78 4.87 4.96 5.06 5.16 5.26 5.36 5.45 5.56 5.66 5.76
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
FIXED ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
- --------------------------------------------------------------------------------
Age Males Females
- --------------------------------------------------------------------------------
60 5.88 4.99
61 6.04 5.11
62 6.21 5.24
63 6.38 5.38
64 6.57 5.53
65 6.77 5.68
66 6.98 5.84
67 7.19 6.01
68 7.42 6.20
69 7.67 6.39
70 7.93 6.61
- --------------------------------------------------------------------------------
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT
The Contract constitutes the entire Contract between the parties and the
provisions of the Contract alone will govern with respect to the rights and
obligations of Equitable. The Provisions of the Contract will be applied
separately with respect to each Participant. Nothing in the enrollment form
referred to in Section 1.05, the Plan or trust agreement referred to in Section
4.10 nor any modification, amendment, or supplement to any such documents will
in any way be construed to enlarge, change, vary or in any other way affect the
obligations of Equitable as expressly provided in the Contract.
Page 11
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GENERAL PROVISION (continued)
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE
Equitable reserves the right to amend the Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
shall include, but not be limited to, the right to conform the Contract and any
certificate to reflect changes in the Code, or in regulations or published
rulings of the Internal Revenue Service, so that each such certificate will
continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY
The entire interest of any Participant under the Contract is nonforfeitable.
No interest of a Participant under the Contract may be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law no such amount will in any way be
subject to any claim against such payee.
SECTION 4.04 PARTICIPATION IN SURPLUS
The Contract and all other contracts in the same class of contracts shall be
combined for the purpose of ascertaining the annual surplus of Equitable to be
apportioned to said contracts as a dividend, and the portion of any such
dividend that is to be allocated to the Contract shall be determined by
Equitable. The participation of this class of contracts in annual surplus is,
however, expected to be minimal. Any amount so allocated to the Contract shall
be payable as of January 1 of the calendar year in which a dividend is
apportioned and will be payable in cash and shall be equitably allocated by
Equitable to the Guaranteed Interest Accounts maintained hereunder for
Participants.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.05 BENEFICIARY
Each participant, as of such Participant's Participation Date is to provide
Equitable with an initial designation of the beneficiary entitled to receive any
death benefit payable with respect to such Participant pursuant to Section 2.07.
The Participant may change such designation from time to time during such
Participant's lifetime and while Accounts for such Participants are being
maintained hereunder. Any such designation or change will be made by written
notice in a form satisfactory to Equitable. A change will, upon receipt at a
designated Equitable Office, take effect as of the time the written notice was
signed, whether or not the Participant is living on the date of receipt, but
without further liability as to any payment or other settlement made by
Equitable before receipt of such change.
Unless otherwise specified in the designation, if a Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant, and if more than one survive they
will share equally.
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.07 for which there is no designated beneficiary living at the death of
the Participant will be payable in a single sum to the children of the
Participant who survive the Participant, in equal shares, or should none
survive, then to the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
Page 12
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GENERAL PROVISIONS (continued)
SECTION 4.06 DISQUALIFICATION
In the event that an annuity purchased hereunder with respect to a
Participant fails to qualify as an Annuity as described in Section 1.03,
Equitable shall have the right, upon receiving notice of such fact before the
Retirement Date, to terminate participation with respect to such Participant
under the Contract and pay to such Participant the amount in the Account
maintained with respect to such Participant less a deduction for the appropriate
part attributable to such Participant of any Federal income tax payable by
Equitable which would not have been payable if such Participant had an Annuity
under the Contract.
SECTION 4.07 FUTURE PARTICIPANTS
Equitable reserves the right at its sole discretion to curtail or prohibit
further enrollment as Participants under the Contract of any individuals who are
not currently participating under the Contract as of such date of curtailment or
prohibition.
SECTION 4.08 DEFERMENT
Payments by Equitable from the Participant's Guaranteed Interest Account
pursuant to the provisions of Section 2.04, Section 2.05 and Section 2.07, or
any commuted payments arising from a Fixed Annuity Benefit pursuant to Section
3.04, may be deferred for up to six months after receipt of a written request
for such surrender or withdrawal, or receipt of due proof of death of the
Participant, respectively, or receipt of due documentation for such commutation
payment pursuant to Section 3.04. Interest at the current Guaranteed Interest
Rate for such Participant's Guaranteed Interest Account will be allowed on any
such payment deferred for 30 days or more.
SECTION 4.09 ANNUAL NOTICE
At the end of each Participation Year up to and including the Retirement Date,
Equitable will furnish the Participant with a notice showing as of a specified
recent date (1) the Annuity Value of the Guaranteed Interest Account, (2) the
Cash Value of the Guaranteed Interest Account, and (3) the amount of death
benefit payable with respect to the Participant.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY
The sole responsibility of the Contract Holder is to serve as party to the
Contract. The Contract Holder will have no responsibility for the administration
of any Plan, for payments to the Guaranteed Interest Account, or any payments or
other distributions hereunder. Equitable will deal with the Contract Holder in
accordance with the terms and conditions of the trust agreement pursuant to
which the Contract Holder agreed to act as such and the Contract and in such
manner as the Contract Holder and Equitable may agree, without the consent of
any other person. Any Employer making Contributions under the Contract shall be
deemed to have adopted and accepted the trust agreement as part of the Plan with
respect to which such Contributions are made.
SECTION 4.11 AGE AND SEX
If the Annuitant's age or sex has been misstated, any benefits will be those
which would have been purchased at the correct age and sex. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
Page 13
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Attached to and made part of Group Annuity Contract No. 11931CH
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective August 15, 1981, said contract is amended as
follows:
1. Contributions made to the contract, less applicable premium taxes, as
determined by Equitable, may be allocated to the Guaranteed Interest Account
or Stock Account maintained for the Participant, or in part to both, as
directed by the Participant.
2. At the Retirement Date, if the Participant is then living, the amount in the
Guaranteed Interest Account and Stock Account will be applied to provide the
Participant with an Annuity Benefit or Cash Value Benefit.
3. ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN A SEPARATE ACCOUNT
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED
ANNUITY BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE
ANNUITY BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT
EXPERIENCE OF THE SEPARATE ACCOUNT. SUCH VARIABLE ANNUITY BENEFIT WILL
INCREASE IF THE AVERAGE DAILY RATE OF INVESTMENT RETURN IN THE SEPARATE
ACCOUNT IS EQUIVALENT TO MORE THAN 6.75% OR 5.25% ANNUALLY AND WILL DECREASE
IF IT IS EQUIVALENT TO LESS THAN 6.75% OR 5.25% ANNUALLY, DEPENDING ON
WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET INVESTMENT RETURN REFERRED TO
IN SECTION 1.20 IS 5% OR 3 1/2%, RESPECTIVELY. THE DAILY RATE OF INVESTMENT
RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75% FOR INVESTMENT
MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND MINIMUM
DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO PROVIDE
FOR TAXES.
THIS CONTRACT MAY NOT BE SUITABLE FOR A PARTICIPANT IF THE ONLY CONTRIBUTION
TO BE MADE ON SUCH PARTICIPANT'S BEHALF IS A SUBSTANTIAL SINGLE SUM
CONTRIBUTION.
PF 14103CH Page 1
<PAGE>
4. The following provisions are added to your Certificate.
To Part 1 of your Certificate
SECTION 1.05A EXISTING PARTICIPANT
The term "Existing Participant" means a Participant for whom Cash Values of
existing annuity contract(s) issued by Equitable is (are) eligible to be
transferred to the Contract pursuant to Section 2.01.
SECTION 1.05B NEW PARTICIPANT
The term "New Participant" means a Participant who is not an Existing
Participant.
SECTION 1.14B ELIGIBLE ANNUITY CERTAIN
The term "Eligible Annuity Certain" means an annuity not involving life
contingencies issued by Equitable which extends beyond the Participant's
attainment of age 59 years and six months and does not permit any prepayment
of the unpaid principal prior to the participant's attainment of age 59 years
and six months.
SECTION 1.19 THE SEPARATE ACCOUNT
The Term "Separate Account" means Separate Account A, a separate investment
account maintained by Equitable to which portions of its assets have been
allocated for the Contract and certain other contracts. Equitable reserves
the right to withdraw from the Separate Account and allocate to another
separate account assets determined by Equitable to be associated with the
class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each
investment in the Separate Account, with appropriate adjustments to avoid odd
lots and fractions. On and after the date of any such withdrawal the term
"Separate Account" in the Contract shall mean such other separate account to
which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Account will, at most
times, consist primarily of common stock and other equity-type investments.
Equitable may, however, at its discretion invest the assets of the Separate
Account in any investment permitted by applicable law. Equitable may rely
conclusively on the opinion of counsel (including attorneys in its employ) as
to what investments it is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate the Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect
to the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration
of the Separate Account under the Investment Company Act of 1940, provided
that such registration or deregistration is in conformity with the
requirements of applicable law; (ii) run the Separate Account under the
direction of a committee, and to discharge such committee at any time; and
(iii) restrict or eliminate any voting rights of participants or other
persons who have voting rights as to the Separate Account.
Assets of the Separate Account attributable to the Contract shall be subject
to a charge at the rate of 1.75% a year, consisting of .15% for investment
management, .35% for financial accounting, .35% for the annuity rate
guarantee and the minimum death benefit, and .90% for expenses and expense
risk. The charge shall be made in accordance with (c) of the Net Investment
Factor provision in Section 1.20.
The assets of the Separate Account are the property of Equitable; however,
the portion of the assets of the Separate Account equal to the reserves and
other contract liabilities with respect to such Account shall not be
chargeable with liabilities arising out of any other business Equitable may
conduct. Equitable reserves the right to transfer assets of the Separate
Account in excess of such reserves and contract liabilities to the general
account of Equitable.
SECTION 1.20 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A
PF 14103CH Page 2
<PAGE>
business day is any day on which there is a sufficient degree of trading in
the portfolio securities of the Separate Account that the Accumulation Unit
Value or Annuity Unit Value might be materially affected by changes in the
value of the portfolio securities in the Separate Account, as determined by
Equitable.
NET INVESTMENT FACTOR: For the Separate Account the Net Investment Factor for
a Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment income
and the capital gains, realized or unrealized, credited to the assets of
the Separate Account in the Valuation Period for which the Net Investment
Factor is being determined, minus (3) the capital losses, realized or
unrealized, charged against such assets in such Valuation Period, minus
(4) any amount charged against the Separate Account in such Valuation
Period for taxes or for amounts set aside by Equitable as a reserve for
taxes attributable to the maintenance or operation of the Separate
Account;
(b) is the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial accounting, the annuity
rate guarantee and the minimum death benefit, and expenses and expense
risk.
The value of the assets in the Separate Account, referred to above, shall
be taken at their fair market value, or where there is no readily
available market, their fair value, as determined in accordance with
accepted accounting practices and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the
value of the interest of a Participant's Stock Account in the Separate
Account on or before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Value for the
Separate Account has been established at $10.00 as of November 1, 1968. The
New Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Value for the immediately preceding Valuation Period multiplied
by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from the Separate Account under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value has been
established at $1.00 on November 1, 1968. The New Annuity Unit Value for any
subsequent Valuation Period is the New Annuity Unit Value for the immediately
Preceding Valuation Period multiplied by the Adjusted Net Investment Factor
for such subsequent Valuation Period. The Adjusted Net Investment Factor for
a Valuation Period is the Net Investment Factor for such period reduced for
each calendar day in such subsequent Valuation Period by the Net Investment
Factor times (i) .00013366, if the Assumed Base Rate of Net Investment Return
is 5%, and (ii) .00009425, if the Assumed Base Rate of Net Investment Return
is 3 1/2%. The Assumed Base Rate of Net Investment Return shall be 5%, except
in states where the rate is not permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average New Annuity Unit Value for a
calendar month is equal to the average of the New Annuity Unit Values for the
Valuation Periods ending in such month.
To Part II of your Certificate
SECOND 2.10 STOCK ACCOUNT
Equitable maintains a Stock Account under the Contract for each Participant
with respect to whom Contributions are made. Any amount allocated to a Stock
Account becomes part of the Separate Account. Any amount withdrawn from a
Stock Account will no longer be part of the Separate Account.
On any date when an amount is allocated to or withdrawn from a Stock Account,
the Stock Ac-
PF 14103CH Page 3
<PAGE>
count will be credited or charged, as the case may be, with a number of
Accumulation Units determined by dividing said amount by the New Accumulation
Unit Value for the Separate Account for the Valuation Period which includes
that date. The number of Accumulation Units in a Stock Account on any date is
equal to (i) the sum of any Accumulation Units that have been credited to the
Stock Account minus (ii) the sum of any Accumulation Units that have been
charged to the Stock Account. The amount in a Stock Account on any date is
equal to the product of (i) the number of Accumulation Units in the Stock
Account on that date and (ii) the Accumulation Unit Value for the Separate
Account for the Valuation Period which includes that date.
SECTION 2.11 TRANSFERS BETWEEN ACCOUNTS
At any time before a Participant's Retirement Date, such Participant, upon
written request, may transfer all or a part of the amounts from the Stock
Account maintained for such Participant to the Guaranteed Interest Account
maintained for such Participant, or may transfer all or a part of the
amounts in the Guaranteed Interest Account maintained for such Participant
to the Stock Account maintained for such Participant. Such transfers will
be made as of the later of (i) the date specified in such request and (ii)
the date Equitable receives such request, and will be subject to
Equitable's rules in effect at the time of transfer.
To Part III of your Certificate
SECTION 3.04 VARIABLE ANNUITY BENEFIT
The term "Variable Annuity Benefit" means an Annuity Benefit under which the
dollar amount of the monthly payments with respect to a payee may increase or
decrease depending on the investment experience of the Separate Account.
The amount of the first, second, and third payments under any Variable
Annuity Benefit provided under the Contract with respect to a payee is the
monthly amount provided with respect to the payee pursuant to Section 3.03.
The amount of the fourth and each subsequent payment under a Variable Annuity
Benefit will be equal to the number of Annuity Units with respect to such
benefit, multiplied by the Average New Annuity Unit Value for the second
calendar month immediately preceding the date of the payment. The fourth and
subsequent annuity payments under a Variable Annuity Benefit will not be
increased or decreased in amount because of mortality or expense experience.
The number of Annuity Units with respect to a benefit is the number
determined by dividing the amount of the first monthly payment under such
benefit by the New Annuity Unit Value for the Valuation Period which includes
the due date of the first monthly payment.
5. The following sections of your Certificate are amended or modified as
follows:
A. Section 1.15, ANNUITY VALUE, is amended to provide that the "Annuity
Value" with respect to a Participant's Guaranteed Interest Account and
Stock Account shall mean the amounts in such Accounts described in Section
2.02 and 2.10.
B. Section 1.16, CASH VALUE, shall read as follows:
SECTION 1.16 CASH VALUE - NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to a New Participant, the term "Cash
Value" with respect to such Participant's Guaranteed Interest Account and
Stock Account means an amount equal to the Annuity Values of such Accounts
after the earliest of the following occurrences: (i) The later of (a) the
completion of five Participation Years with respect to such Participant
and (b) the Participant's attainment of age 59 years and six months, or
(ii) the Participant's attainment of age 70 years and six months, or (iii)
the completion of 25 Participation Years with respect to such Participant,
or (iv) if the Participant has attained age 55, completed five
Participation Years, and the Cash Values are to be applied to purchase an
Eligible Annuity Certain defined in Section 1.14B. At other times, the sum
of the Cash Values of such Accounts equals the sum of the Annuity Values
of such Accounts, less a withdrawal charge.
PF 14103CH Page 4
<PAGE>
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five
Participation Years with respect to the Participant, the withdrawal charge
equals the lesser of (a) or (b) where:
(a) equals 6% of the sum of the Annuity Values of such Accounts.
(b) is an amount equal to the excess, if any, of (i) 8% of the cumulative
contributions made on behalf of such Participant over (ii) the
cumulative total of any withdrawal charges made pursuant to Sections
2.05 and 2.05A.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five
Participation Years with respect to the Participant, the withdrawal charge
equals the lesser of (a) or (b) where:
(a) equals 6% of the excess of (i) the sum of the Annuity Values of such
Accounts over (ii) the Free Corridor Amount defined in Section 2.05C.
(b) is the excess, if any, of (i) 8% of the total contributions made on
behalf of such Participant during the current Participation Year and
the preceding nine Participation Years over (ii) the cumulative total
of any withdrawal charges made pursuant to Sections 2.05 and 2.05A.
The Cash Value of the Guaranteed Interest Account and the Cash Value of
the Stock Account will be in the same proportion as are the Annuity Values
of such Accounts.
SECTION 1.16B CASH VALUE - EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to an Existing Participant, the term
"Cash Value" with respect to such Participant's Guaranteed Interest
Account and Stock Account means an amount equal to the Annuity Values of
such Accounts after the earliest of the following occurrences: (i) The
Participant's attainment of age 59 years and six months, (ii) the
completion of 20 Participation Years with respect to such Participant, or
(iii) if the Participant has attained age 55 and the Cash Values are to be
applied to purchase an Eligible Annuity Certain defined in Section 1.14B.
At other times, the sum of the Cash Values of such Accounts equals the sum
of the Annuity Values of such Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five
Participation Years with respect to the Participant, the withdrawal charge
equals the sum of the charges described in subsections (a) and (b) below;
provided, however, that such charge does not exceed the amount described
in subsection (c) below where:
(a) is an amount equal to 2% of any Preferred Withdrawable Amounts
(defined in Section 2.05B) that have not previously been withdrawn
pursuant to Section 2.05 and 2.05B.
(b) is an amount equal to 6% of any Regular Withdrawable Amounts (defined
in Section 2.05B) that have not previously been withdrawn pursuant to
Section 2.05 and 2.05B.
(c) is an amount equal to the sum of (a) above, and 6% of the excess, if
any, of (i) the sum of the Annuity Values of such Accounts over (ii)
the cumulative total of Equitable Transferred Funds made with respect
to the Participant that have not previously been withdrawn pursuant to
Section 2.05 and 2.05B.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After five Participation Years have
been completed with respect to the Participant, Equitable (i) will first
withdraw, pursuant to Section 2.05B, the Free Corridor Amount defined in
Section 2.05C and (ii) next withdraw the remaining portion of the sum of
the Annuity Values of such Accounts. A withdrawal charge will apply to the
amount in (ii) above, and will equal the sum of the
PF 14103CH Page 5
<PAGE>
charges described in subsection (a) and (b) of the preceding subsection;
provided, however, that such charge will not exceed an amount equal to the
lesser of the charges defined in (d) and (e) below:
(d) is an amount equal to the sum of (a) in the preceding subsection, and
6% of the excess, if any, of (i) the sum of the Annuity Values of such
Accounts (after withdrawal of the Free Corridor Amount) over (ii) the
cumulative total of Equitable Transferred Funds made on behalf of the
Participant that have not previously been withdrawn pursuant to
Sections 2.05 and 2.05B.
(e) is an amount equal to the excess, if any, of (1) the sum of (i) 2% of
the first $10,000 of Equitable Transferred Funds made during the
current Participation Year and the preceding nine Participation Years
and (ii) 8% of all other contributions (excluding Equitable
Transferred Funds) made on behalf of such Participant during the
current Participation Year and the preceding nine completed
Participation Years over (2) the cumulative total of any withdrawal
charges made pursuant to Section 2.05 and 2.05B.
The Cash Value of the Guaranteed Interest Account and the Cash Value of
the Stock Account will be in the same proportion as are the Annuity Values
of such Accounts.
C. Section 1.18, SEPARATE ACCOUNT TRANSFERS, shall read as follows:
SECTION 1.18 EQUITABLE TRANSFERRED FUNDS
The Term "Equitable Transferred Funds" with respect to a Participant means
the amount of cash value(s) transferred to the Contract from a contract
issued by Equitable, pursuant to Section 2.01.
D. The second paragraph of Section 2.02, GUARANTEED INTEREST ACCOUNT, is
amended as follows:
a. References to Section 2.05 are replaced by Sections 2.05, 2.05A and
2.05B.
b. The amount in the Guaranteed Interest Account at any time includes the
amount transferred into the Account and does not include amounts
withdrawn or transferred out of such Account.
E. The Sections entitled TERMINATION OF PARTICIPATION (2.04), ANNUAL
ADMINISTRATIVE CHARGE (2.06), DEATH BENEFIT (2.07), ELECTION AND
COMMENCEMENT OF ANNUITY PAYMENTS (3.02), and CONTRACT HOLDER
RESPONSIBILITY (4.10) are amended to change the term "Guaranteed Interest
Account" wherever it appears to "Guaranteed Interest Account and Stock
Account."
F. Section 2.03, ALLOCATION TO ACCOUNT, shall read as follows:
SECTION 2.03 ALLOCATION TO ACCOUNT
Each Contribution made with respect to a Participant pursuant to Section
2.01, after deduction for any applicable taxes, will be allocated, as of
the date by which Equitable has received both such Contribution and
direction as to its allocation, to the Guaranteed Interest Account, or
Stock Account, or in part to each, at the sole direction of the
Participant as specified to Equitable, provided that the percentage
allocated to each Account is a whole number.
Any amount that a Participant has directed to be transferred to the
Guaranteed Interest Account or the Stock Account pursuant to Section 2.11
will be allocated as of the date of such transfer to the appropriate
Account maintained for such Participant.
Interest is allocated to the Guaranteed Interest Account at the end of
each Participation Year, at the time of each transfer or withdrawal
pursuant to Sections 2.05, 2.05A, 2.05B and 2.11 at the time of
application of amounts in the Guaranteed Interest Account to provide
Annuity Benefits, upon termination of participation pursuant to Section
2.04, and upon death of the Participation pursuant to Section 2.07.
PF 14103CH Page 6
<PAGE>
G. Section 2.05, PARTIAL WITHDRAWALS, shall read as follows:
SECTION 2.05 PARTIAL WITHDRAWALS
Subject to any applicable restrictions under the terms of the Plan, a
Participant may elect by written notice to Equitable to make a partial
withdrawal from the Stock Account and the Guaranteed Interest Account
maintained for such Participant before such Participant's Retirement Date.
Upon withdrawal pursuant to Section 2.05, 2.05A or 2.05B, Equitable will
pay the lesser of the sum of the Cash Values of such Accounts or the
amount of partial withdrawal requested to the person entitled to such
payment as designated in writing by such Participant. Unless instructed
otherwise, the amount withdrawn, (including the amount of any withdrawal
charge) will be allocated between such Accounts in proportion to the
Annuity Value of each such Account.
Upon any payment to a Participant pursuant to Section 2.05, 2.05A or
2.05B, Equitable will be released from any and all liability for payments
with respect to the Contributions from which the amounts so withdrawn
arose.
Payments to the Participant pursuant to Section 2.05, 2.05A or 2.05B may
be deferred by Equitable in accordance with the provisions of Section
4.08.
Equitable is under no obligation to process any request for partial
withdrawal of less than $300. If a withdrawal from the Accounts made
pursuant to Sections 2.05, 2.05A or 2.05B would result in total Annuity
Values of less than $200, Equitable will so advise the Participant and
reserves the right to withdraw the Annuity Values of the Guaranteed
Interest Account and Stock Account, pay the Annuity Values of such
Accounts to the Participant, and terminate such Participant's
participation under the Contract. If the Participant enrolled in this
Contract on or after the effective date of this rider, the $200 amount
stated above shall be $500.
SECTION 2.05A PARTIAL WITHDRAWALS - NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
New Participant, Equitable will withdraw from the Stock Account and
Guaranteed Interest Account an amount equal to the lesser of (a) the full
amount of partial withdrawal requested or (b) the sum of the Annuity
Values of such Accounts, provided the request for partial withdrawal is
made after the earliest of the following occurrences: (i) The later of (a)
the completion of five Participation Years with respect to such
Participant and (b) such Participant's attainment of age 59 years and six
months, or (ii) such Participant's attainment of age 70 years and six
months, or (iii) the completion of 25 Participation Years with respect to
such Participant, or (iv) if the Participant has attained age 55, has
completed five Participation Years, and the partial withdrawal is to be
applied to purchase an Eligible Annuity Certain defined in Section 1.14B.
At other times, Equitable will withdraw from such Accounts an amount equal
to the amount of partial withdrawal requested plus a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: If the Participant has not
completed five Participation Years under the Contract, such withdrawal
charge will equal the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the total amount to be withdrawn from the
Accounts pursuant to this paragraph (including such charge)
(b) is the excess, if any, of (i) 8% of the cumulative total of
Contributions made on behalf of such Participant over (ii) the
cumulative total of any prior withdrawal charges made pursuant to this
Section.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five
Participant Years with respect to the Participant, there will be no
withdrawal charge if the
PF 14103CH Page 7
<PAGE>
amount of partial withdrawal requested is not greater than the Free
Corridor Amount defined in Section 2.05C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts an
amount equal to the Free Corridor Amount, and (ii) then withdraw an amount
equal to the excess of the amount requested over the Free Corridor Amount,
plus a withdrawal charge. Such withdrawal charge will be equal to the
lesser of (a) or (b) where:
(a) is an amount equal to 6% of the amount withdrawn pursuant to (ii) of
the preceding sentence including such charge, and
(b) is the excess, if any, of (i) 8% of the cumulative total of
contributions made on behalf of such Participant during the current
Participation Year and the nine preceding Participation Years over
(ii) the cumulative total of any prior withdrawal charges made
pursuant to this Section.
SECTION 2.05B PARTIAL WITHDRAWAL - EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by an
Existing Participant, Equitable will withdraw from the Stock Account and
Guaranteed Interest Account an amount equal to the lesser of (a) the full
amount of partial withdrawal requested or (b) the Annuity Values of such
Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The Participant's attainment of
age 59 years and six months, or (ii) the completion of 20 Participation
Years with respect to such Participant, or (iii) if the Participant has
attained age 55 and the partial withdrawal is to be applied to purchase an
Eligible Annuity Certain defined in Section 1.14B. At other times,
Equitable will withdraw from such Accounts an amount equal to the amount
of partial withdrawal requested plus a withdrawal charge.
PREFERRED WITHDRAWABLE AMOUNT: This is an amount equal to the lesser of
(a) the total of Equitable Transferred Funds made on behalf of the
Participant or (b) $10,000.
FREE WITHDRAWABLE AMOUNT: This is an amount equal to the excess, if any,
of (a) the total of Equitable Transferred Funds made on behalf of the
Participant over (b) $10,000.
REGULAR WITHDRAWAL AMOUNT: This is the cumulative total of all
Contributions, other than Equitable Transferred Funds, made on behalf of
the Participant.
ORDER OF WITHDRAWALS: In calculating the withdrawal charge, Equitable will
assume that (a) any Preferred Withdrawable Amounts are first withdrawn,
(b) any Free Withdrawable Amounts are next withdrawn, (c) any Regular
Withdrawable Amounts are next withdrawn, and (d) lastly, any amounts other
than the amounts described in (a), (b), and (c) above are withdrawn.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five
Participation Years with respect to the Participant, the withdrawal charge
equals the sum of the charges described in sub-sections (a), (b), (c) and
(d) below:
(a) With respect to any withdrawals of Preferred Withdrawable Amounts, a
charge of 2% of such withdrawals.
(b) With respect to any withdrawals of Free Withdrawable Amounts, no
charge.
(c) With respect to any withdrawals of Regular Withdrawable Amounts, a
charge of 6% of such withdrawals.
(d) With respect to any withdrawals of amounts other than the amounts in
(a), (b) and (c) above, no charge.
WITHDRAWABLE CHARGE AFTER FIVE YEARS: After the completion of five
Participation Years with respect to the Partici-
PF 14103CH Page 8
<PAGE>
pant, there will be no withdrawal charge if the amount of partial
withdrawal requested is not greater than the Free Corridor Amount defined
in Section 2.05C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (1) first withdraw from such Accounts an
amount equal to the Free Corridor Amount, and (2) then withdraw from such
Accounts an amount equal to the excess of the amount requested over the
Free Corridor Amount, plus a withdrawal charge. Such withdrawal charge
will equal the sum of the charges described in (a), (b), (c), and (d)
above; provided, however, that in no event will such charge exceed an
amount equal to the following: The excess, if any, of (1) the sum of (i)
2% of the first $10,000 of Equitable Transferred Funds made during the
current Participation Year and (ii) 8% of all other Contributions
(excluding Equitable Transferred Funds) made on behalf of the Participant
during the current Participation Year and the preceding nine completed
Participation Years over (2) the cumulative total of any prior withdrawal
charges made pursuant to this Section.
Whenever an amount is withdrawn from such Accounts that is not greater
than the current Free Corridor Amount, such amount is considered to be (1)
first, a withdrawal of Regular Withdrawal Amounts, (2) next, a withdrawal
of Preferred Withdrawable Amounts, (3) next, a withdrawal of Free
Withdrawable Amounts and (4) lastly, a withdrawal of amounts other than
the amounts in (1), (2), or (3) above. However, no charge will be assessed
with respect to the portion of the withdrawal up to the current Free
Corridor Amount.
SECTION 2.05C FREE CORRIDOR AMOUNT
The term "Free Corridor Amount" with respect to a Participant who has
completed five Participation Years means an amount equal to the excess, if
any, of (i) 10% of the sum of the Annuity Values of the Stock Account and
the Guaranteed Interest Account over (ii) cumulative prior withdrawals
made pursuant to Section 2.05, 2.05A or 2.05B in the current Participation
Year with respect to the Participant.
H. The first paragraph of Section 2.06, ANNUAL ADMINISTRATIVE CHARGE, is
amended by adding the following:
The charge will be allocated between the Stock Account and the Guaranteed
Interest Account in proportion to the Annuity Values of such Accounts at
the end of the Participation Year.
I. Section 2.08, Change of Deductions for New Participants, is deleted as of
August 1, 1981 and Section 2.09, Change of Deductions and Charges for
Existing Participants, shall not apply to Participants enrolled on or
after August 1, 1981.
J. With respect to Section 3.03, AMOUNT OF ANNUITY BENEFITS,
a. Wherever the term "Guaranteed Interest Account" appears, it shall be
changed to "Guaranteed Interest and Stock Account."
b. The second and third sentences of paragraph 2 shall apply to a
Participant who has completed five Participation Years and to an
Existing Participant (as defined in Part I of this rider).
c. Paragraph 3 shall apply to a New Participant (as defined in Part I of
this rider) before the completion of five Participation Years.
d. The last two paragraphs have been amended to provide that any Variable
Annuity Benefit shall be calculated by Equitable on 1979 ELAS
Mortality and an Assumed Base Rate of Net Investment Income Return of
5% or 3 1/2%, whichever applies pursuant to Section 1.20.
PF 14103CH Page 9
<PAGE>
K. Section 3.04 PAYMENT OF ANNUITY PAYMENTS, is amended by the addition of
the following:
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION -- ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
FEMALE AGE
MALE -----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.31 4.35 4.39 4.43 4.47 4.51 4.55 4.59 4.63 4.67 4.71
61 4.35 4.39 4.43 4.48 4.52 4.56 4.61 4.65 4.69 4.73 4.78
62 4.39 4.43 4.48 4.52 4.57 4.61 4.66 4.71 4.75 4.80 4.85
63 4.42 4.47 4.52 4.57 4.62 4.67 4.72 4.77 4.82 4.87 4.92
64 4.46 4.51 4.57 4.62 4.67 4.72 4.77 4.83 4.88 4.94 4.99
65 4.50 4.56 4.61 4.66 4.72 4.78 4.83 4.89 4.95 5.01 5.07
66 4.54 4.60 4.65 4.71 4.77 4.83 4.89 4.95 5.01 5.08 5.14
67 4.58 4.64 4.70 4.76 4.82 4.88 4.95 5.01 5.08 5.15 5.22
68 4.62 4.68 4.77 4.81 4.87 4.95 5.01 5.08 5.15 5.22 5.29
69 4.65 4.72 4.78 4.85 4.92 4.99 5.06 5.14 5.22 5.29 5.37
70 4.69 4.76 4.83 4.90 4.97 5.05 5.12 5.20 5.28 5.36 5.45
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION -- ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
FEMALE AGE
MALE -----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.19 5.23 5.27 5.31 5.34 5.39 5.42 5.46 5.50 5.54 5.58
61 5.23 5.27 5.31 5.35 5.39 5.43 5.47 5.52 5.56 5.60 5.64
62 5.27 5.31 5.35 5.39 5.44 5.48 5.53 5.57 5.62 5.67 5.71
63 5.31 5.35 5.39 5.44 5.49 5.53 5.58 5.63 5.68 5.73 5.78
64 5.34 5.39 5.44 5.48 5.53 5.59 5.64 5.69 5.74 5.79 5.85
65 5.38 5.43 5.48 5.53 5.58 5.64 5.69 5.75 5.80 5.86 5.92
66 5.42 5.47 5.52 5.58 5.63 5.69 5.75 5.81 5.87 5.93 5.99
67 5.45 5.51 5.56 5.62 5.68 5.74 5.80 5.87 5.93 6.00 6.06
68 5.49 5.55 5.61 5.67 5.73 5.80 5.86 5.93 6.00 6.06 6.14
69 5.53 5.59 5.65 5.71 5.78 5.85 5.92 5.99 6.06 6.13 6.21
70 5.56 5.63 5.69 5.76 5.83 5.90 5.97 6.05 6.13 6.21 6.29
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT IF ASSUMED BASE RATE OF NET INVESTMENT RETURN IS
------------------------------------------------------------------------
3 1/2% 5%
------ --
AGE MALES FEMALES MALES FEMALES
- --- ----- ------- ----- -------
60 5.43 4.80 6.36 5.70
61 5.57 4.90 6.50 5.81
62 5.72 5.01 6.65 5.91
63 5.88 5.13 6.81 6.03
64 6.05 5.25 6.97 6.15
65 6.23 5.39 7.16 6.28
66 6.43 5.54 7.35 6.43
67 6.64 5.70 7.56 6.58
68 6.87 5.87 7.79 6.76
69 7.11 6.06 8.03 6.95
70 7.38 6.27 8.30 7.15
Equitable will notify the payee under a Variable Annuity Benefit of the
number of Annuity Units and the Average New Annuity Unit Value used in
determining the amount of each variable payment.
L. Section 4.08 DEFERMENT, shall read as follows:
SECTION 4.08 DEFERMENT
Payments by Equitable from the Participant's Guaranteed Interest Account
pursuant to the provisions of Section 2.04, Sections 2.05, 2.05A and
2.05B, and Section 2.07, or any commuted payments arising from a Fixed
Annuity Benefit pursuant to Section 3.04, may be deferred for up to six
months after receipt of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant,
respectively, or receipt of due documentation for such commutation payment
pursuant to Section 3.04. Interest at the current Guaranteed Interest
Account will be allowed on any such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the
Participant's Stock Account pursuant to the provisions of Section 2.04,
Sections 2.05, 2.05A and 2.05B, and Section 2.07, or any commuted payments
arising from a Variable Annuity Benefit pursuant to Section 3.04, will be
made within seven days after receipt of a written request for such
surrender or withdrawal, or receipt of due proof of death of the
Participant, respectively, or receipt of due documentation for such
commutation payment pursuant to Section 3.04.
During any period when (i) the sale of securities or the determination of
the New Accumulation Unit Value or the New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or
trading on such Exchange is restricted, or (ii) the Securities and
Exchange Commission may by order permit postponement for the protection of
persons having interests in the Separate Account, Equitable reserves the
right:
PF 14103CH Page 10
<PAGE>
(a) to defer determination of Cash Values or Annuity Values and payment of
Cash Values and Annuity Values, arising from an amount in a
Participant's Stock Account;
(b) to defer payment of any portion of the death benefit arising from an
amount in a Participant's Stock Account;
(c) to defer the payment of any variable Annuity Benefit under the
Contract or the application of any such Benefit to provide for any
other payment called for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to
provide any Annuity Benefit permitted under the Contract.
M. Section 4.09, ANNUAL NOTICE, shall read as follows:
SECTION 4.09 ANNUAL NOTICE
At the end of each Participation Year up to and including the Retirement
Date, Equitable will furnish the Participant with a notice showing as of a
specified recent date (1) the Annuity Value of the Guaranteed Interest
Account, (2) the total number of Accumulation Units credited to the Stock
Account, (3) the New Accumulation Unit Value, (4) the sum of the Cash
Values of the Guaranteed Interest Account and the Stock Account and (5)
the amount of death benefit payable with respect to the Participant. After
the Retirement Date Equitable will notify the Participant of the number of
Annuity Units and the Average New Annuity Unit Value used in determining
the amount of each Variable Annuity Benefit payment, if any.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ Signature Unreadable By /s/ Coy Eklund
----------------------------------- --------------------------------
President
Title S/V/P By /s/ Rodney L. Enochs
------------------------------- --------------------------------
Vice President and Secretary
Dated 8/12/81 Date of Issuance Aug 12 1981
------------------------------- ------------------
At N.Y., N.Y.
-----------------------------------
PF 14103CH Page 11
<PAGE>
Attached to and made part of Group Annuity Contract No. 11931CH
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective April 15, 1982, said contract and riders are
amended as follows:
o Contributions made to the Contract after deduction of any applicable taxes,
will be allocated to the Stock Account, Money Market Account or the Guaranteed
Interest Account maintained for the Participant, in accordance with Sections
2.02 and 2.03, or in part to any one, as directed by the Participant.
o The amount in the Stock Account, Money Market Account and the Guaranteed
Interest Account will be applied at the Retirement Date to provide the
Participant with an Annuity Benefit or a Cash Value Benefit if the Participant
is then living, and
o The Participant will have other rights and benefits as described herein.
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN SEPARATE ACCOUNTS
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF
SEPARATE ACCOUNT A. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE
DAILY RATE OF INVESTMENT RETURN IN SEPARATE ACCOUNT A IS EQUIVALENT TO MORE THAN
6.75% OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75%
OR 5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.16 IS 5% OR 3 1/2%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND
MINIMUM DEATH BENEFIT; EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO
PROVIDE FOR TAXES.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
The provisions on the following pages are part of the Contract.
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This page 2 reserved for information
in connection with the issuance of
certificates under this Contract.
PAGE 2
<PAGE>
This page 3 reserved for information
in connection with the issuance of
certificates under this Contract.
PAGE 3
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PART 1 - DEFINITIONS
SECTION 1.01 EMPLOYER
The term "Employer" means the sole proprietor or the partnership adopting the
Plan, or any successor unincorporated trade or business that assumes in writing
the obligations of the Plan. The Plan is adopted by the Employer's execution of
the Adoption Statement which constitutes a part of the Plan and pursuant to
which the Employer adopts the Plan. A sole proprietor is deemed to be his own
Employer and a partnership is deemed to be the Employer of each partner.
SECTION 1.02 PLAN
The term "Plan" means the HR-10 Group Annuity Pension Plan with Optional Life
Insurance, a master pension plan for self-employed individuals and their
employees sponsored by Equitable which has been determined by the Internal
Revenue Service to meet the requirements for qualification under Section 401(a)
of the Code.
SECTION 1.03 ANNUITY
The term "Annuity" means an annuity purchased in accordance with the terms of
the Plan if the Plan, as adopted by the Employer, meets the requirements for
qualification under Section 401(a) of the Code.
SECTION 1.04 ANNUITY BENEFIT
The term "Annuity Benefit" means a benefit payable by Equitable pursuant to
Section 3.04 of the Contract.
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DEFINITIONS (continued)
SECTION 1.05A PARTICIPANT
The term "Participant" means a person who has been enrolled by Equitable under
the Contract and for whom the Employer has purchased an Annuity under the
Contract. A person shall become enrolled under the Contract upon receipt by
Equitable of an enrollment form made available by Equitable and completed in a
manner satisfactory to Equitable. An Annuity is purchased for a person enrolled
under the Contract upon receipt by Equitable of an initial Contribution by the
Employer.
SECTION 1.05B EXISTING PARTICIPANT
The term "Existing Participant" means a Participant for whom Cash Values of
existing annuity contract(s) issued by Equitable were eligible to be transferred
to the Contract pursuant to Section 2.01 and who was enrolled under the Contract
on or prior to April 14, 1982.
SECTION 1.05C NEW PARTICIPANT
The term "New Participant" means a Participant who is not an Existing
Participant.
SECTION 1.06 CONTRIBUTION
The term "Contribution" means a payment made to Equitable for a Participant with
respect to an Annuity purchased for such Participant under the Contract.
Equitable is under no obligation to accept any Contribution less than $20.00.
SECTION 1.07 PARTICIPATION DATE
The term "Participation Date" with respect to a Participant means the date as of
which Equitable has enrolled such Participant under the terms of the Contract.
SECTION 1.08 PARTICIPATION YEAR
The term "Participation Year" with respect to a Participant means the twelve
month period beginning on (i) the Participation Date, and (ii) each anniversary
thereof, unless otherwise agreed to in writing by Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS
Except as provided in Section 1.10, the term "Class of Participants" refers to
all Participants whose Participation Date is in the same calendar year.
SECTION 1.10 GUARANTEED INTEREST RATE
For each Guaranteed Interest Account, the term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in such
Account. Interest accrues daily. The Guaranteed Interest Rate will never be less
than 3% per annum.
Equitable will from time to time establish and make available for new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new Class of Participants will be established effective with the
effective date of the occurrence of (i), (ii) or (iii) above or any combination
thereof.
For the calendar year next succeeding the end of the period for which an
established Initial Guaranteed interest Rate is effective and for each
subsequent calendar year thereafter, Equitable will determine for each
established Class of Participants before the beginning of such calendar year a
Yearly Guaranteed interest Rate for such Class, which Yearly Guaranteed Interest
Rate will not be lower than the effective Minimum Guaranteed Interest Rate
applicable for such Class for such year. For any established Class of
Participants, Equitable reserves the right to change the Minimum Guaranteed
Interest Rate and the applicable period therefor, provided that any such Minimum
Guaranteed Interest Rate will not be lower than the Minimum Guaranteed Interest
Rate that would have been in effect in the absence of such change. Equitable
will notify each Participant in a Class in writing of the Yearly Guaranteed
Interest Rate or of any change in the Minimum Guaranteed Interest Rate at least
15 days prior to its effective date.
For the period (not to exceed one year) next succeeding the end of the period
for which an established
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DEFINITIONS (continued)
Initial Guaranteed Interest Rate is effective and for each subsequent period
(not to exceed one year) the Equitable may determine for each established Class
of Participants a Guaranteed Interest Rate for such Class which exceeds the
applicable Yearly Guaranteed Interest Rate. Equitable will notify each
Participant in writing of the applicable Guaranteed Interest Rate and duration.
SECTION 1.11 RETIREMENT DATE
The term "Retirement Date" means the date on which the Participant is to attain
the retirement age specified in the Participant's enrollment form. Before the
Retirement Date the Participant may elect to change the Retirement Date to
another Retirement Date, which may be any date after the filing of the election
(other than the 29th, 30th, or 31st day of any month). No Retirement Date shall
be earlier than the date of attainment of age 59 years and six months nor shall
be later than the date of attainment of age 70 years and six months. Any
election for such change must be made in writing by the Participant and shall
not take effect until received by Equitable at its Home Office.
SECTION 1.12 NORMAL FORM
The "Normal Form" of an Annuity Benefit under the Contract means, (i) if the
Participant has a living spouse at the Retirement Date, the Fixed Annuity
Benefit payable on the Joint and Survivor Life Annuity Form with such spouse as
the contingent annuitant (100% continuation), and (ii) if the Participant does
not have a living spouse at the Retirement Date, the Fixed Annuity Benefit
payable on the Life Annuity Form.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM
The term "Joint and Survivor Life Annuity Form" means an annuity providing
monthly payments while either of two persons upon whose lives such payments
depends is living. The monthly amount to be continued when only one of the
persons is living will be equal to a percentage of the monthly amount that was
paid while both were living. This percentage may be 50% or any higher percentage
up to and including 100%, as elected by the Participant. The payments commence
on the date as of which the Joint and Survivor Life Annuity Form is purchased
and terminate with the last payment due before the death of the survivor.
SECTION 1.14A LIFE ANNUITY FORM
The term "Life Annuity Form" means an annuity providing fixed monthly payments
during the lifetime of the person upon whose life such payments depend. The
payments commence on the date as of which the Life Annuity Form is purchased and
terminate with the last payment due before the death of such person.
SECTION 1.14B ELIGIBLE ANNUITY CERTAIN
The term "Eligible Annuity Certain" means an annuity not involving life
contingencies issued by Equitable which extends beyond the Participant's
attainment of age 59 years and six months and does not permit any prepayment of
the unpaid principal prior to the participant's attainment of age 59 years and
six months.
SECTION 1.15 THE SEPARATE ACCOUNTS
The term "Separate Accounts" means the following separate investment accounts
maintained by Equitable to which portions of its assets have been allocated for
the Contract and certain other contracts:
Name Investments
---- -----------
Separate Account A Primarily common
stock and other
equity-type investments.
Separate Account E Primarily short-term money
market instruments.
Equitable reserves the right to withdraw from any Separate Account and allocate
to another separate account assets determined by Equitable to be associated with
the class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid odd lots and
fractions. On and after the date of any such withdrawal the reference in the
Contract to such Separate Account shall mean such other separate account to
which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Accounts will, at most
times, consist primarily of the types of investments indicated above. Equitable
may,
PF 14113CH Page 6
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DEFINITIONS (continued)
however, at its discretion invest the assets of any Separate Account in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including attorneys in its employ) as to what investments it
is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate any Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
any Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) run any Separate Account under the direction of a
committee, and to discharge such committee at any time; and (iii) restrict or
eliminate any voting rights of participants or other person who have voting
rights as to the Separate Accounts.
Assets of the Separate Accounts attributable to the Contract shall be subject to
a charge at the Rate of 1.75% a year, consisting of .15% for investment
management, .35% for financial accounting, .35% for the annuity rate guarantee
and the minimum death benefit, and .90% for expenses and expense risk. The
charge shall be made in accordance with (c) of the Net Investment Factor
provision in Section 1.16.
The assets of Separate Accounts are the property of Equitable; however, the
portion of the assets of each Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising out of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of the Separate Accounts in excess of such
reserves and contract liabilities to the general account of Equitable.
SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS
EVALUATION PERIOD: Each business day together with any non-business day or
consecutive non-busniess day immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which there is a
sufficient degree of trading in the portfolio securities of a Separate Account
that the New Accumulation Unit Value or New Annuity Unit Value might be
materially affected by changes in the value of the portfolio securities in a
Separate Account, as determined by the Separate Account Committee or, if there
is no Committee, by Equitable.
NET INVESTMENT FACTOR: For each Separate Account the Net Investment Factor for a
Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment income and
the capital gains, realized or unrealized, credited to the assets of the
Separate Account in the Valuation Period for which the Net Investment Factor is
being determined, minus (3) the capital losses, realized or unrealized, charged
against such assets in such Valuation Period, minus (4) any amount charged
against the Separate Account in such Valuation Period for taxes or for amounts
set aside by Equitable as a reserve for taxes attributable to the maintenance or
operation of the Separate Account:
(b) is the value of the assets in the Separate Account at the close of business
of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial account, the annuity rate
guarantee and the minimum death benefit, and expenses and expense risk.
The value of the assets in the Separate Accounts, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
their fair value, as determined in accordance with accepted accounting practices
and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the value
of the interest of a Participant's Stock Account or Money Market Account on or
before the Retirement Date.
PF 14113CH Page 7
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DEFINITIONS (continued)
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Values for the
Separate Accounts have been established as follows:
Account Value Date
------- ----- ----
Separate Account A $ 10.00 As of November 1, 1968
Separate Account E $ 10.00 As of September 4, 1974
The new Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from Separate Account A under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value for Separate Account
A has been established at $1.00 as of November 1, 1968. The Annuity Unit Value
for any subsequent Valuation Period is the New Annuity Unit Value for the
immediately preceding Valuation Period multiplied by the Adjusted Net Investment
Factor for such subsequent Valuation Period. The Adjusted Net Investment Factor
for a Valuation period is the Net Investment Factor for such period reduced for
each calendar day in such subsequent Valuation Period by the Net Investment
Factor times (i) .00013366, if the Assumed Base Rate of Net Investment Return is
5%, and (ii) .00009425, if the Assumed Base Rate of Net Investment Return is 3
1/2%. The Assumed Base Rate of Net Investment Return shall be 5%, except in
states where the rate is not permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average Annuity Unit Value for Separate
Account A for a calendar month is equal to the average of the New Annuity Unit
Values of the Valuation Periods ending in such month.
SECTION 1.17 ANNUITY VALUE
The term "Annuity Value" with respect to a Participant's Guaranteed Interest
Account, Stock Account and Money Market Account, means the amount in such
Accounts pursuant to Sections 2.02 and 2.03.
SECTION 1.18A CASH VALUE -- NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to a New Participant, the term "Cash Value"
with respect to a new Participant's Guaranteed Interest Account, Stock Account
and Money Market Account means an amount equal to the Annuity Values of such
Accounts after the earliest of the following occurrences: (i) The later of (a)
the completion of five Participation Years with respect to such Participant and
(b) the Participant's attainment of age 59 years and six months, or (ii) the
Participant's attainment of age 70 years and six months, or (iii) the completion
of 25 Participation Years with respect to such Participant, or (iv) if the
Participant has attained age 55, completed five Participation Years, and the
Cash Values are to be applied to purchase an Eligible Annuity Certain defined in
Section 1.14B. At other times, the sum of the Cash Values of such Accounts
equals the sum of the Annuity Values of such Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five Participation
Years with respect to the Participant, the withdrawal charge equals the lesser
of (a) or (b) where:
(a) equals 6% of the sum of the Annuity Values of such Accounts.
(b) is an amount equal to the excess, if any, of (i) 8% of the cumulative
contributions made on behalf of such Participant over (ii) the cumulative
total of any withdrawal charges made pursuant to Sections 2.07 and 2.07A.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five Participation
Years with respect the Participant, the withdrawal charge equals the lesser of
(a) or (b) where:
(a) equals 6% of the excess of (i) the sum of the Annuity Values of such
Accounts over (ii) the Free Corridor Amount defined in Section 2.07C.
(b) is the excess, if any, of (i) 8% of the total contributions made on behalf
of such Participant during the current Participation Year and the preceding
nine Participation Year over (ii) the cumulative total of any withdrawal
charges made pursuant to Sections 2.97 and 2.07A.
PF 14113CH Page 8
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DEFINITIONS (continued)
The Cash Values of the Guaranteed Interest Account, Stock Account and Money
Market Account will be in the same proportion as are the Annuity Values of such
Accounts.
SECTION 1.18B CASH VALUE -- EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to an Existing Participant, the term "Cash
Value" with respect to such Participant's Guaranteed Interest Account, Stock
Account and Money Market Account means an amount equal to the Annuity Values of
such Accounts after the earliest of the following occurrences: (i) The
Participant's attainment of age 59 years and six months, (ii) the completion of
20 Participation Years with respect to such Participant, or (iii) if the
Participant has attained age 55 and the Cash Values are to be applied to
purchase an Eligible Annuity Certain defined in Section 1.14B. At other times,
the sum of the Cash Values of such Accounts equals the sum of the Annuity Values
of such Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five Participation
Years with respect to the Participant, the withdrawal charge equals the sum of
the charges described in subsections (a) and (b) below; provided, however, that
such charge does not exceed the amount described in subsection (c) below where:
(a) is an amount equal to 2% of any Preferred Withdrawable Amounts (defined in
Section 2.07B) that have not previously been withdrawn pursuant to Sections
2.07 and 2.07B.
(b) is an amount equal to 6% of any Regular Withdrawable Amounts (defined in
Section 2.07B) that have not previously been withdrawn pursuant to Sections
2.07 and 2.07B.
(c) is an amount equal to the sum of (a) above, and 6% of the excess, if any,
of (i) the sum of the Annuity Values of such Accounts over (ii) the
cumulative total of Equitable Transferred Funds made with respect to the
Participant that have not previously been withdrawn pursuant to Sections
2.07 and 2.07B.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After five Participation Years have
been completed with respect to the Participant, Equitable (i) will first
withdraw, pursuant to Section 2.07B, the Free Corridor Amount defined in
Section 2.07C and (ii) next withdraw the remaining portion of the sum of
the Annuity Values of such Accounts. A withdrawal charge will apply to the
amount in (ii) above, and will equal the sum of the charges described in
subsections (a) and (b) of the preceding subsection; provided, however,
that such charge will not exceed an amount equal to the lesser of the
charges defined in (d) and (e) below:
(d) is an amount equal to the sum of (a) in the preceding subsection, and 6% of
the excess, if any, of (i) the sum of the Annuity Values of such Accounts
(after withdrawal of the Free Corridor Amount) over (ii) the cumulative
total of Equitable Transferred Funds made on behalf of the Participant that
have not previously been withdrawn pursuant to Sections 2.07 and 2.07B.
(e) is an amount equal to the excess, if any, of (1) the sum of (i) 2% of the
first $10,000 of Equitable Transferred Funds made during the current
Participation Year and the preceding nine Participation Years and (ii) 8%
of all other contributions (excluding Equitable Transferred Funds) made on
behalf of such Participant during the current Participation Year and the
preceding nine completed Participation Years over (2) the cumulative total
of any withdrawal charges made pursuant to Sections 2.07 and 2.07B.
The Cash Values of the Guaranteed Interest Account, Stock Account and Money
Market Account will be in the same proportion as are the Annuity Values of such
Accounts.
SECTION 1.19 CODE
The term "Code" means the Internal Revenue Code of 1954, as now or hereafter
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.20 EQUITABLE TRANSFERRED FUNDS
The term "Equitable Transferred Funds" with respect to a Participant means the
amount of cash value(s) transferred to the Contract from a contract issued by
Equitable pursuant to Section 2.01.
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PART II -- PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS
The Employer is to make Contributions from time to time on such dates and in
such amounts as determined by the Employer pursuant to the terms of the Plan.
The Employer is to specify the Participant with respect to whom each such
Contribution is being made and the amount to be allocated to the Stock Account,
Money Market Account and the Guaranteed Interest Account.
Each Contribution received by Equitable with respect to a Participant will,
before its allocation under the Contract, be reduced by the amount of any
applicable taxes, as determined by Equitable.
A Participant may, with Equitable's agreement, transfer to the Contract any
amount held with respect to such Participant under a plan covering self-employed
individuals which has been determined by the Internal Revenue Service to meet
the requirements for qualification under Section 401(a) of the Code, as modified
by Section 401(d) of the Code ("Transferred Funds"). Any Transferred Funds from
a contract not issued by Equitable will, before allocation under the Contract,
be reduced by the amount of any applicable taxes, as determined be Equitable.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits which such Participant is entitled
under the Contract.
SECTION 2.02 STOCK AND MONEY MARKET ACCOUNTS
Equitable maintains a Stock Account and Money Market Account under the Contract
for each Participant with respect to whom Contributions are made. Any amount
allocated to the (i) Stock Account becomes part of Separate Account A, and (ii)
Money Market Account becomes part of Separate Account E. Any amount withdrawn
from an Account will no longer be part of the applicable Separate Account.
On any date when an amount is allocated to or withdrawn from an Account, the
Account will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the New Accumulation
Value for the appropriate Separate Account for the Valuation Period which
includes that date. The number of Units in an Account on any date is equal to
(i) the sum of any Accumulation Units that have been credited to the Account
minus (ii) the sum of any Accumulation Units that have been charged to that
Account. The amount in the Stock Account or Money Market Account on any date is
equal to the product of (i) the number of Accumulation Units in such Account on
that date and (ii) the New Accumulation Unit Value for the appropriate Separate
Account for the Valuation Period which includes that date.
SECTION 2.03 GUARANTEED INTEREST ACCOUNT
Equitable maintains a Guaranteed Interest Account under the Contract for each
Participant with respect to whom Contributions are made. Any amount allocated to
the Guaranteed Interest Account becomes part of the general assets of Equitable,
which support the guarantees of the Contract and other contracts.
The amount in a Guaranteed Interest Account at any time is equal to the sum of
all amounts that have been allocated to such Guaranteed Interest Account
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn pursuant to
Sections 2.07, 2.07A, and 2.07B, and Section 2.08 from such Account, and
transferred pursuant to Section 2.05 from such Guaranteed Interest Account, and
less the sum of any annual administrative charges accrued but not made.
Equitable guarantees that the amount in a Guaranteed Interest Account, at any
time before the Retirement Date will not be less than the sum of all amounts
allocated to such Account pursuant to Section 2.04 or transferred to such
Account pursuant to Section 2.05 and less the sum of all amounts that have been
withdrawn from such Account pursuant to Sections 2.07, 2.07A and 2.07B, and
transferred from such Account pursuant to Section 2.05, all accumulated at 3%
interest, compounded annually. In any Participation Year in which no
Contribution is allocated to a Guaranteed Interest Account , the amount in such
Account at the end of the Participation Year shall not be less than the amount
in such Account at the beginning of the Participation Year plus the sum of all
amounts transferred to such Account pursuant to Section 2.05 less the sum of all
amounts withdrawn and transferred out of such Account pursuant to Sections 2.07,
2.07A and 2.07B, and Section 2.05, all accumulated at 3% interest, compounded
annually.
PF 14113CH Page 10
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PART II -- PARTICIPANT'S ACCOUNT (continued)
A Guaranteed Interest Account for a Participant terminated on the earliest of
(i) the Retirement Date, (ii) the death of the Participant, and (iii)
termination of participation pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO ACCOUNT
Each Contribution made with respect to a Participant pursuant to Section 2.01,
after deduction for any applicable taxes, will be allocated, as of the date by
which Equitable has received both such Contribution and direction as to its
allocation, to the Guaranteed Interest Account, Stock Account, or Money Market
Account or in part to each, at the sole direction of the Participant as
specified to Equitable, provided that the percentage allocated to each Account
is a whole number.
Any amount that a Participant has directed to be transferred to the Guaranteed
Interest Account or Stock Account pursuant to Section 2.05 will be allocated as
of the date of such transfer to the appropriate Account maintained for such
Participant.
Interest is allocated to the Guaranteed Interest Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05 and 2.07, 2.07A, and 2.07B at the time of application of amounts
in the Guaranteed Interest Account to provide Annuity Benefits, upon termination
of participation pursuant to Section 2.06, and upon death of the Participant
pursuant to Section 2.09.
SECTION 2.05 TRANSFERS AMONG ACCOUNTS At any time before a Participant's
Retirement Date, such Participant, upon written request, (i) may transfer all or
a part of the amounts from the Stock Account or Money Market Account maintained
for such Participant to the Guaranteed Interest Account maintained for such
Participant, or (ii) may transfer all or a part of the amounts in the Guaranteed
Interest Account or Money Market Account maintained for such Participant to the
Stock Account maintained for such Participant. Such transfers will be made as of
the later of (i) the date specified in such request, and (ii) the date Equitable
receives such request, and will be subject to Equitable's rules in effect at the
time of transfer. No transfers are permitted from the Guaranteed Interest
Account or the Stock Account maintained for the Participant to the Money Market
Account.
SECTION 2.06 TERMINATION OF PARTICIPATION
Subject to any applicable restrictions under the terms of the Plan, on or before
a Participant's Retirement Date, such Participant may elect by written notice to
terminate participation under the Contract. Upon receipt of such notice,
Equitable will determine the Cash Value, as of the date Equitable received such
notice, of the Guaranteed Interest Account, Stock Account and Money Market
Account maintained for such Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Guaranteed interest Account,
Stock Account and Money Market Account, pay such Annuity Values and terminate
such Participant's participation under the Contract. This right may be exercised
with respect to the Participant only if both (i) no Contributions have been made
under the Contract during the last three completed Participation Years, and (ii)
the sum of such Annuity Values is $500 or less. Equitable reserves the right to
terminate a Participant's participation under the Contract if at least 120 days
have elapsed since the issue date shown on the certificate issued to such
Participant under the Contract and no Contributions have been made under the
Contract with respect to such Participant.
Upon payment of such Cash Values or Annuity Values, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Values or Annuity Values arose.
SECTION 2.07 PARTIAL WITHDRAWALS
Subject to any applicable restrictions under the terms of the Plan, a
Participant may elect by written notice to Equitable to make a partial
withdrawal from the Stock Account, Money Market Account and the Guaranteed
Interest Account maintained for such Participant before such Participant's
Retirement Date.
Upon withdrawal pursuant to Section 2.07, 2.07A or 2.07B, Equitable will pay the
lesser of the sum of the Cash Values of such Accounts or the amount of partial
withdrawal requested to the person entitled to
PF 14113CH Page 11
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PARTICIPANT'S ACCOUNT (continued)
such payment as designated in writing by such Participant. Unless instructed
otherwise, the amount withdrawn (including the amount of any withdrawal charge)
will be allocated between such Accounts in proportion to the Annuity Value of
each such Account.
Upon any payment to a Participant pursuant to Section 2.07, 207A, or 2.07B,
equitable will be released from any and all liability for payments with respect
to the Contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to Section 2.07, 207A or 2.07B may be
deferred by Equitable in accordance with the provisions of Section 4.08.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300. If a withdrawal from the Accounts made pursuant to Sections
2.07, 207A or 2.07B would result in total Annuity Values of less than $500,
Equitable will so advise the Participant and reserves the right to withdraw the
Annuity Values of the Guaranteed Interest Account, Stock Account and Money
Market Account, pay the Annuity Values of such Accounts to the Participant, and
terminate such Participant's participation under the Contract. If the
Participant was enrolled in this Contract prior to August 15, 1981, the $500
amount stated above shall be $200.
SECTION 2.07A PARTIAL WITHDRAWALS -- NEW PARTICIPANTS NO WITHDRAWAL CHARGE: With
respect to partial withdrawals requested by a New Participant, Equitable will
withdraw from the Stock Account, Money Market Account and Guaranteed Interest
Account an amount equal to the lesser of (a) the full amount of partial
withdrawal requested or (b) the sum of the Annuity Values of such Accounts,
provided the request for partial withdrawal is made after the earliest of the
following occurrences: (i) The later of (a) the completion of five Participation
Years with respect to such Participant and (b) such Participant's attainment of
age 59 years and six months, or (ii) such Participant's attainment of age 70
years and six months, or (iii) the completion of 25 Participation Years with
respect to such Participant, or (iv) if the Participant has attained age 55, has
completed five Participation Years, and the partial withdrawal is to be applied
to purchase an Eligible Annuity Certain defined in Section 1.14B. At other
times, Equitable will withdraw from such Accounts an amount equal to the amount
of partial withdrawal requested plus a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: If the participant has not completed
five Participation Years under the Contract, such withdrawal charge will equal
the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the total amount to be withdrawn from the
Accounts (including such charge) pursuant to this paragraph.
(b) is the excess, if any, of (i) 8% of the cumulative total of Contributions
made on behalf of such Participant over (ii) the cumulative total of any
prior withdrawal charges made pursuant to this Section.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five Participation
Years with respect to the Participant, there will be no withdrawal charge if the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free Corridor
Amount, Equitable will (i) first withdraw from such Accounts an amount equal to
the Free Corridor Amount, and (ii) then withdraw an amount equal to the excess
of the amount requested over the Free Corridor Amount, plus a withdrawal charge.
Such withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the amount withdrawn (including such charge)
pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of contributions
made on behalf of such Participant during the current Participation Year
and the nine preceding Participation Years over (iii) the cumulative total
of any prior withdrawal charges made pursuant to this Section.
SECTION 2.07B PARTIAL WITHDRAWAL -- EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by an
Existing Participant, Equitable will withdraw from the Stock Account,
PF 14113CH Page 12
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
Money Market Account and Guaranteed Interest Account an amount equal to the
lesser of (a) the full amount of partial withdrawal requested or (b) the Annuity
Values of such Accounts, provided the request for partial withdrawal is made
after the earliest of the following occurrences: (i) The Participant's
attainment of age 59 years and six months, or (ii) the completion of 20
Participation Years with respect to such Participant, or (iii) if the
Participant has attained age 55 and the partial withdrawal is to be applied to
purchase an Eligible Annuity Certain defined in Section 1.14B. At other times,
Equitable will withdraw from such Accounts an amount equal to the amount of
partial withdrawal requested plus a withdrawal charge.
PREFERRED WITHDRAWABLE AMOUNT: This is an amount equal to the lesser of (a) the
total of Equitable Transferred Funds made on behalf of the Participant or (b)
$10,000.
FREE WITHDRAWABLE AMOUNT: This is an amount equal to the excess, if any, of (a)
the total Equitable Transferred Funds made on behalf of the Participant over (b)
$10,000.
REGULAR WITHDRAWABLE AMOUNT: This is the cumulative total of all Contributions,
other than Equitable Transferred Funds, made on behalf of the Participant.
ORDER OF WITHDRAWALS: In calculating the withdrawal charge, Equitable will
assume that (a) any Preferred Withdrawable Amounts are first withdrawn, (b) any
Free Withdrawable Amounts are next withdrawn, (c) any Regular Withdrawable
Amounts are next withdrawn, and (d) lastly, any amounts other than the amounts
described in (a), (b) and (c) above are withdrawn.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five Participation
Years with respect to the Participant, the withdrawal charge equals the sum of
the charges described in subsections (a), (b), (c) and (d) below:
(a) With respect to any withdrawals of Preferred Withdrawable Amounts, a charge
of 2% of such withdrawals.
(b) With respect to any withdrawals of Free Withdrawable Amounts, no charge.
(c) With respect to any withdrawals of Regular Withdrawable Amounts, a charge
of 6% of such withdrawals.
(d) With respect to any withdrawals of amounts other than the amounts in (a),
(b) and (c) above, no charge.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five Participation
Years with respect to the Participant, there will be no withdrawal charge if the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free Corridor
Amount, Equitable will (1) first withdraw from such Accounts an amount equal to
the Free Corridor Amount, and (2) then withdraw from such Accounts an amount
equal to the excess of the amount requested over the Free Corridor Amount, plus
a withdrawal charge. Such withdrawal charge will equal the sum of the charges
described in (a), (b) (c), and (d) above; provided, however, that in no event
will such charge exceed an amount equal to the following: The excess, if any, of
(1) the sum of (i) 2% of the first $10,000 of Equitable Transferred Funds made
during the current Participation Year and the preceding nine Participation Years
and (ii) 8% of all other Contributions (excluding Equitable Transferred Funds)
made on behalf of the Participant during the current Participation Year and the
preceding nine completed Participation Years over (2) the cumulative total of
any prior withdrawal charges made pursuant to this Section.
Whenever an amount is withdrawn from such Accounts that is not greater than the
current Free Corridor Amount, such amount is considered to be (1) first, a
withdrawal of Regular Withdrawable Amounts, (2) next, a withdrawal of Preferred
Withdrawable Amounts, (3) next, a withdrawal of Free Withdrawable Amounts and
(4) lastly, a withdrawal of amounts other than the amounts in (1), (2), or (3)
above. However, no charge will be assessed with respect to the portion of the
withdrawal up to the current Free Corridor Amount.
SECTION 2.07C FREE CORRIDOR AMOUNT
The term "Free Corridor Amount" with respect to a Participant who has completed
five Participation
PF 14113CH Page 13
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
Years means an amount equal to the excess, if any of (i) 10% of the sum of the
Annuity Values of the Stock Account, Money Market Account and the Guaranteed
Interest Account over (ii) cumulative prior withdrawals made pursuant to Section
2.07, 2.07A or 2.07B in the current Participation Year with respect to the
Participant.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE
As of the last day of each Participation Year before a Participant's Retirement
Date, Equitable will withdraw from the Guaranteed Interest Account, Stock
Account and Money Market Account maintained under the Contract, as to the
Contributions remitted with respect to such Participant, and annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i) the
Annuity Values of the Guaranteed Interest Account, Stock Account and Money
Market Account at the end of that Participation Year and (iii) any withdrawals
made from such Accounts pursuant to Section 2.07, 2.07A and 2.07B during that
Participation Year. The charge will be allocated between the Stock Account,
Money Market Account and Guaranteed Interest Account in proportion to the
Annuity Values of each such Account, at the end of the Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Values or Cash Values of such Participant's Account pursuant to Section 3.03, or
upon termination of such Account pursuant to Section 2.06 or Section 2.09 during
a Participation Year, Equitable will withdraw the administrative charge
described in this Section for the applicable part of that Participation Year.
SECTION 2.09 DEATH BENEFIT If the Employer reports to Equitable, or if Equitable
otherwise ascertain, that a Participant has died while Accounts for such
Participant are maintained under the Contract and before such Participant's
Retirement Date, Equitable , upon receipt of due proof of such death, will pay
in a single sum to the beneficiary designated by such Participant to receive
such payment the amount of death benefit payable with respect to such
Participant. The amount of the death benefit with respect to a Participant at
any time prior to the Retirement Date is equal to the greater of (i) the sum of
the Annuity Values of the Guaranteed Interest Account, Stock Account and Money
Market Account maintained under the Contract for such Participant or (ii) the
minimum death benefit with respect to such Participant. Such minimum death
benefit is the sum of all Contributions made with respect to such Participant
pursuant to Section 2.01 (before reduction of any applicable taxes) less an
adjustment for any withdrawals made pursuant to Sections 2.07, 2.07A and 2.07B
from the Accounts maintained under the Contract for such Participant. Any such
withdrawal will reduce the minimum death benefit (as adjusted by any previous
such withdrawal) by an amount which is in the same proportion as the amount
being withdrawn is to the Annuity Values then in the Guaranteed Interest
Account, Stock Account and Money Market Account maintained under the Contract
for such Participant. If, in accordance with the provisions of Section 2.01, the
cash value of the Annuity contract issued by Equitable, which provides for a
death benefit before retirement equal to the greater of the contract cash value
or an alternative amount based on premiums paid or contributions made under the
Annuity contract, is transferred to the Contract, such alternative amount as of
the date of transfer will be included in the "sum of all Contributions" in lieu
of the amount of cash value transferred, for purposes of the death benefit under
the Contract.
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefor, be withdrawn from the Guaranteed
Interest Account, Stock Account and Money Market Account maintained with respect
to such Participant under the Contract. Upon such payment, Equitable will be
released from any and all liability for payments with respect to the
Contributions from which the Annuity Values arose.
PF 14113CH Page 14
<PAGE>
PART III -- ANNUITY BENEFITS
SECTION ___ ___ANNUITY BENEFIT
The term fixed Annuity Benefit" means an Annuity Benefit under which the monthly
payments with respect to ___ payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity provided under the
Contract with respect to pay___ the amount provided with respect to pay__
pursuant to Section 3.03.
SECTION VARIABLE ANNUITY BENEFIT
The term "Variable Annuity Benefit" means an Annuity Benefit under which the
dollar amount of the monthly payment with respect to a payee may increase or
decrease depending on the investment experience of a separate Account A.
The amount of the second, and third payments under any Variable Annuity Benefit
provided under the Contract with respect to a payee is the monthly amount
provided with respect to the payee pursuant to Section 3.04. Amount of the
fourth and each subsequent payable under a Variable Annuity Benefit will be
equal to the number of Annuity Units with respect to __ benefit, multiplied by
the Average ___ Unit Value for the second calendar month immediately preceding
the date of the payment. The __ and subsequent annuity payments under __-able
Annuity Benefit will not be increased or decreased in amount because of
mortality ______. The number of Annuity Units with respect to benefit is the
number determined by ___ amount of the first monthly payment ___ ___ by the New
Annuity Unit Value for ___ Period which includes the due date ___ monthly
payment.
SECTION ___ ____ AND COMMENCEMENT OF ANNUITY BENEFITS
As of a ____ retirement Date, provided such Participant _____, the Annuity
Values of such Participation Guaranteed Interest Account, Stock Account and
Money Market Account shall be applied to provide ___ of Annuity Benefit, unless
such P_____ to receive the Cash Value of such A____ ___ sum or (ii) to apply
such Annuity ___ ___, whichever is applicable pursuant _____ paragraph of
Section 3.04 to provide _____ Benefit on any other annuity form offered _____ as
elected by the Participant, subject to Equitable's rules then in effect and any
applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.06 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Values of such Participant's Guaranteed
Interest Account, Stock Account and Money Market Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Section 3.04 and
3.05. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS
If a Participant elects pursuant to the first paragraph or third paragraph of
Section 3.03 to receive an Annuity Benefit in lieu of the Cash Values of the
Guaranteed Interest Account, Stock Account and Money Market Account, the amount
applied to provide the Annuity benefit will be (i) the Annuity Values of such
Accounts if the payments under the annuity form elected are contingent upon the
survival of a person, or (ii) the Cash Values of such Account if the payments
under the annuity form elected are not contingent upon the survival of a person.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If such
amount is applied on or after the completion of five Participation Years with
respect to such Participant, or if such amount is applied on behalf of an
Existing Participant, the balance shall purchase the Annuity Benefit on the
basis of either (i) the Table of Guaranteed Annuity Payments shown below or (ii)
Equitable's current individual annuity rates for payment of proceeds, whichever
rates would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
PF 14113CH Page 15
<PAGE>
ANNUITY BENEFITS (continued)
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a New Participant, the
balance, after any applicable tax on annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown below or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Guaranteed Interest Account, Stock
Account and Money Market Account maintained for such Participant shall
terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form, are based on 3 1/4% interest and the 1971 ELAS Mortality Table.
The amounts of income initially provided under the Variable Annuity Benefit
payable on the Life Annuity Form and Joint and Survivor Life Annuity Form are
based on 1979 ELAS mortality and an Assumed Base Rate of Net Investment Return
of 3 1/2% or 5%, whichever applies pursuant to Section 1.16. Equitable may
change the monthly income amounts contained in the Tables of Guaranteed Annuity
Payments and the bases for determining such amounts, for new Participants, by at
least 90 days advance notice to the Contract Holder and by an amendment to the
Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/4% interest and the 1971 ELAS Mortality Table if
such annuity form provides for a Fixed Annuity Benefit, and on 1979 ELAS
Mortality and an Assumed Base Rate of Net Investment Income Return of 5%
or 3 1/2%, whichever applies pursuant to Section 1.16, if such annuity form
provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS
Evidence of each payee's survival must be furnished to Equitable either by
personal endorsement of the check drawn for payment or by other means
satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Upon election by a Participant pursuant to Section 3.03 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due
PF 14113CH Page 16
<PAGE>
ANNUITY BENEFITS (continued)
After the death of the person or persons upon whose life or lives the income may
depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payees executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM -- 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
AGE 60 61 62 63 64 65 66 67 68 69 70
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.58 4.64 ` 4.70 4.76 4.82 4.88 4.94 5.00 5.05 5.11
61 4.55 4.62 4.68 4.74 4.81 4.87 4.93 5.00 5.06 5.12 5.18
62 4.58 4.65 4.72 4.78 4.85 4.92 4.99 5.05 5.12 5.19 5.25
63 4.61 4.68 4.75 4.82 4.89 4.97 5.04 5.11 5.18 5.25 5.32
64 4.64 4.71 4.79 4.86 4.94 5.01 5.09 5.17 5.24 5.32 5.40
65 4.67 4.74 4.82 4.90 4.98 5.06 5.14 5.22 5.30 5.38 5.47
66 4.69 4.77 4.85 4.93 5.02 5.10 5.18 5.27 5.35 5.44 5.53
67 4.72 4.80 4.88 4.97 5.05 5.14 5.23 5.31 5.40 5.50 5.59
68 4.74 4.82 4.91 5.00 5.09 5.18 5.27 5.36 5.45 5.55 5.65
69 4.76 4.85 4.94 5.03 5.12 5.22 5.31 5.41 5.50 5.60 5.71
70 4.78 4.87 4.96 5.06 5.16 5.26 5.36 5.45 5.56 5.66 5.76
- -----------------------------------------------------------------------------------------------------------
</TABLE>
PF 14113CH Page 17
<PAGE>
ANNUITY BENEFITS (continued)
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION -- ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
AGE 60 61 62 63 64 65 66 67 68 69 70
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.31 4.35 4.39 4.43 4.47 4.51 4.55 4.59 4.63 4.67 4.71
61 4.35 4.39 4.43 4.48 4.52 4.56 4.61 4.65 4.69 4.73 4.78
62 4.39 4.43 4.48 4.52 4.57 4.61 4.66 4.71 4.75 4.80 4.85
63 4.42 4.47 4.52 4.57 4.62 4.67 4.72 4.77 4.82 4.87 4.92
64 4.46 4.51 4.57 4.62 4.67 4.72 4.77 4.83 4.88 4.94 4.99
65 4.50 4.56 4.61 4.66 4.72 4.78 4.83 4.89 4.95 5.01 5.07
66 4.54 4.60 4.65 4.71 4.77 4.83 4.89 4.95 5.01 5.08 5.14
67 4.58 4.64 4.70 4.76 4.82 4.88 4.95 5.01 5.08 5.15 5.22
68 4.62 4.68 4.77 4.81 4.87 4.95 5.01 5.08 5.15 5.22 5.29
69 4.65 4.72 4.78 4.85 4.92 4.99 5.06 5.14 5.22 5.29 5.37
70 4.69 4.76 4.83 4.90 4.97 5.05 5.12 5.20 5.28 5.36 5.45
- -----------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION -- ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
AGE 60 61 62 63 64 65 66 67 68 69 70
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.19 5.23 5.27 5.31 5.34 5.39 5.42 5.46 5.50 5.54 5.58
61 5.23 5.27 5.31 5.35 5.39 5.43 5.47 5.52 5.56 5.60 5.64
62 5.27 5.31 5.35 5.39 5.44 5.48 5.53 5.57 5.62 5.67 5.71
63 5.31 5.35 5.39 5.44 5.49 5.53 5.58 5.63 5.68 5.73 5.78
64 5.34 5.39 5.44 5.48 5.53 5.59 5.64 5.69 5.74 5.79 5.85
65 5.38 5.43 5.48 5.53 5.58 5.64 5.69 5.75 5.80 5.86 5.92
66 5.42 5.47 5.52 5.58 5.63 5.69 5.75 5.81 5.87 5.93 5.99
67 5.45 5.51 5.56 5.62 5.68 5.74 5.80 5.87 5.93 6.00 6.06
68 5.49 5.55 5.61 5.67 5.73 5.80 5.86 5.93 6.00 6.06 6.14
69 5.53 5.59 5.65 5.71 5.78 5.85 5.92 5.99 6.06 6.13 6.21
70 5.56 5.63 5.69 5.76 5.83 5.90 5.97 6.05 6.13 6.21 6.29
- -----------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
FIXED ANNUITY BENEFIT INVESTMENT RETURN IS
--------------------- --------------------
3 1/2% 5%
------ ----
AGE MALES FEMALES MALES FEMALES MALES FEMALES
--- ----- ------- ----- ------- ----- -------
<S> <C> <C> <C> <C> <C> <C>
60 5.88 4.99 5.43 4.80 6.36 5.70
61 6.04 5.11 5.57 4.90 6.50 5.81
62 6.21 5.24 5.72 5.01 6.65 5.91
63 6.38 5.38 5.88 5.13 6.81 6.03
64 6.57 5.53 6.05 5.25 6.97 6.15
65 6.77 5.68 6.23 5.39 7.16 6.28
66 6.98 5.84 6.43 5.54 7.35 6.43
67 7.19 6.01 6.64 5.70 7.56 6.58
68 7.42 6.20 6.87 5.87 7.79 6.76
69 7.67 6.39 7.11 6.06 8.03 6.95
70 7.93 6.61 7.38 6.27 8.30 7.15
</TABLE>
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average New Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
PART IV -- GENERAL PROVISIONS
SECTION 4.01 CONTRACT
The Contract constitutes the entire Contract between the parties and the
provisions of the Contract alone will govern with respect to the rights and
obligations of Equitable. The provisions of the Contract will be applied
separately with respect to each Participant. Nothing in the enrollment form
referred to in Section 1.05, the Plan or trust agreement referred to in Section
4.10 nor any modification, amendment, or supplement to any such documents will
in any way be construed to enlarge, change, vary or in any other way affect the
obligations of Equitable as expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE
Equitable reserves the right to amend the Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
shall include, but not be limited to, the right to
PF 14113CH Page 18
<PAGE>
GENERAL PROVISIONS (continued)
conform the contract and any certificate to reflect changes in the Code, or in
regulations or published rulings of the Internal Revenue Service, so that each
such certificate will continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available __ a certificate
issued pursuant to the Contract ___ not be less than the minimum benefits
required ___ statute of the state in which the certificate is ____.
SECTION ___ ASSIGNMENTS AND NONTRANSFERABILITY
The en___ ___ of any Participant under the Contract is _____able.
No inter____ Participant under the Contract may be sold, ___ discounted, or
pledged as collateral for a ____ security for the performance of an obligation
___ any other purpose to any person other than ___able.
No amount payable under the Contract may be assigned, ____, or encumbered by the
payee, and , to ____ permitted by law, no such amount will in ___ be subject to
any claim against such payee.
SECTION ______ PARTICIPATION IN SURPLUS
The ___ all other contracts in the same class of con___ shall be combined for
the purpose of ascertain ____ annual surplus of Equitable to be apportioned
_____ contracts as a dividend, and the portion dividend that is to be allocated
to the Contract __ shall be determined by Equitable. The participant __ this
class of contracts in annual surplus ___ ever, expected to be minimal. Any
amount ___ to the Contract shall be payable as of ___ of the calendar year in
which a dividend is ____ and will be payable in cash and shall be ___ allocated
by Equitable to the Guaranteed Interest Accounts maintained hereunder for
Part____.
No Annuity Benefit will enter into the determination of any ___ to be
apportioned to the Contract as a dividend.
SECTION ____ BENEFICIARY
Each Participant as of such Participant's Participation Date is to provide
Equitable with an initial designation beneficiary entitled to receive any death
benefit payable with respect to such Participant pursuant to Section 2.09. The
Participant may change such designation from time to time during such
Participant's lifetime and while Accounts for such Participants are being
maintained hereunder. Any such designation or change will be made by written
notice in a form satisfactory to Equitable. A change will, upon receipt at a
designated Equitable Office, take effect as of the time the written notice was
signed, whether or not the Participant is living on the date receipt, but
without further liability as to any payment or other settlement made by
Equitable before receipt of such change.
Unless otherwise specified in the designation, if a Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant, and if more than one survive they
will share equally.
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.09 for which there is no designated beneficiary living at the death of
the Participant will be payable in a single sum to the children of the
Participant who survive the Participant, in equal shares, or should none
survive, then to the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.06 DISQUALIFICATION
In the event that an annuity purchased hereunder with respect to a Participant
fails to qualify as an Annuity as described in Section 1.03, Equitable shall
have the right, upon receiving notice of such fact before the Retirement Date,
to terminate participation with respect to such Participant under the Contract
and pay to such Participant the amount in the Account maintained with respect to
such Participant less a deduction for the appropriate part attributable to such
Participant of any Federal income tax payable if such Participant had an Annuity
under the Contract.
PF 14113CH Page 19
<PAGE>
GENERAL PROVISIONS (continued)
SECTION 4.07 FUTURE PARTICIPANTS
Equitable reserves the right at its sole discretion to curtail or prohibit
further enrollment as Participants under the Contract of any individuals who are
not currently participating under the Contract as of such date of curtailment or
prohibition.
SECTION 4.08 DEFERMENT
Payment by Equitable from the Participant's Guaranteed Interest Account pursuant
to the Provisions of Section __, Sections 2.07, 2.07A and 2.07B, and Section
2.__ any commuted payments arising from a Fixed Annuity Benefit pursuant to
Section 3.05, may be deferred for up to six months after receipt of a ?? request
for such surrender or withdrawal, or receipt of due proof of death of the
Participant, respectively, or receipt of due documentation for such ?? mutation
payment pursuant to Section 3.05. ?? at the current Guaranteed Interest Rate for
such Participant's Guaranteed Interest Account will be ?? on any such payment
deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the Participant's
Stock Account or Money Market Account pursuant to the provisions of Section
2.06, Sections 2.07, 2.07A and 2.07B, and Section 2.09, or commutation payments
arising from a Variable Annuity benefit pursuant to Section 3.05, will be made
within seven days after receipt of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant, respectively,
receipt of due documentation for such commutation payment pursuant to Section
3.05.
During any ??? when (i) the sale of securities or the determination of the New
Accumulation Unit Value or the ?? New Annuity Unit Value is not reasonably ???
because an emergency, defined by the Securities and Exchange Commission, exists,
or the New York Stock Exchange is closed or trading on such Exchange is
restricted, or (ii) the Securities and Exchange Commission may by order permit
pose ?? for the protection of persons having interests in the Separate Accounts,
Equitable reserves the right
(a) to defer determination of Cash Values or Annuity values and payment of Cash
Values and Annuity Values, arising from an amount in a Participant's Stock
Account or Money Market Account;
(b) to defer payment of any portion of the death benefit arising from an amount
in a Participant's Stock Account or Money Market Account;
(c) to defer the payment of any Variable Annuity Benefit under the Contract or
the application of any such Benefit to provide for any other payment called
for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to provide
any Annuity Benefit permitted under the Contract.
SECTION 4.09 ANNUAL NOTICE
At the end of each Participation Year up to and including the Retirement Date,
Equitable will furnish the Participant with a notice showing as of a specified
recent date (1) the Annuity Value of the Guaranteed Interest Account, (2) the
total number of Accumulation Units credited to the Stock Account and Money
Market Account, (3) the New Accumulation Unit Values, (4) the sum of the Cash
Values of the Guaranteed Interest Account, Stock Account and Money Market
Account and (5) the amount of death benefit payable with respect to the
Participant. After the Retirement Date Equitable will notify the Participant of
the number of Annuity Units and the Average New Annuity Unit Value used in
determining the amount of each Variable Annuity Benefit payment, if any.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY
The sole responsibility of the Contract Holder is to serve as party to the
Contract. The Contract Holder will have no responsibility for the administration
of any Plan, for payments to the Guaranteed Interest Account, Stock Account or
Money Market Account, or any payments or other distributions hereunder.
Equitable will deal with the Contract Holder in accordance with the terms and
conditions of the trust agreement pursuant to which the Contract Holder agreed
to act as such and with the Contract and in such manner as the Contract Holder
and Equitable may agree, without the consent of any other person. Any Employer
making Contributions under the Contract shall be deemed to have adopted and
accepted the trust agreement as part of the Plan with respect to which such
Contributions are made.
SECTION 4.11 AGE AND SEX
If the Annuitant's age or sex has been misstated, any benefits will be those
which would have been purchased at the correct age and sex. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
PF 14113CH Page 20
<PAGE>
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ Signature Unreadable By /s/ Coy Eklund
----------------------------------- --------------------------------
Chairman of the Board
Title Senior Vice President By /s/ Rodney L. Enochs
------------------------------- --------------------------------
Vice President and Secretary
Dated May 27, 1982 Date of Issue MAY 1 1982
------------------------------- ------------------
At New York, N.Y.
-----------------------------------
PF 14113CH Page 21
<PAGE>
Attached to and made part of Group Annuity Contract No. 11931CH
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective January 1, 1982 said contract is amended by
adding the following to the third paragraph of Section 1.10 (Guaranteed Interest
Rate):
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine for
each established Class of Participants a Guaranteed Interest Rate for such Class
which exceeds the applicable Yearly Guaranteed Interest Rate. Equitable will
notify each Participant in writing of the applicable Guaranteed Interest Rate
and duration.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By Sinature not legible By /s/ Coy Eklund
--------------------------------- -------------------------------
President
Title Senior Vice President By /s/ Rodney L. Enochs
------------------------------ -------------------------------
Vice President and Secretary
Dated DEC 22 1981 Date of Issue DEC 22 1981
----------------------------- --------------------
At New York, New York
--------------------------------
PF 14107CH
<PAGE>
Attached to and made part of Group Annuity Contract No. 11931CH
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective August 26, 1983, said contract and riders
are amended as follows:
1. with respect to Section 1.18A Cash Value -- New Participants
a. the term "25 Participation Years" contained in the paragraph entitled
"No Withdrawal Charge" is changed to "12 Participation Years,"
b. the paragraph entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: Within the first three
Participation Years with respect to the Participant, the withdrawal
charge equals the lesser of (a) or (b) where:
(a) equals 6% of the sum of the Annuity Values of such Accounts.
(b) is an amount equal to the excess, if any, of (i) 8% of the
cumulative contributions made on behalf of such Participant over
(ii) the cumulative total of any withdrawal charges made pursuant
to Sections 2.07 and 2.07A.
c. the paragraph entitled "Withdrawal Charge After Five Years" is
replaced by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After the completion of three
Participation Years with respect to the Participant, the withdrawal
charge equals the lesser of (a) or (b) where:
(a) equals
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Values of such
Accounts over (ii) the Free Corridor Amount defined in Section
2.07C.
(b) is the excess, if any, of (i) 8% of the total contributions made
on behalf of such Participant during the current Participation
Year and the preceding nine Participation Years over (ii) the
cumulative total of any withdrawal charges made pursuant to
Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account and
Money Market Account will be in the same proportion as are the Annuity
Values of such Accounts.
PF 17003CH
<PAGE>
2. with respect to Section 1.18B Cash Value -- Existing Participants
a. the term "20 Participation Years" contained in the paragraph entitled
"No Withdrawal Charge" is changed to "12 Participation Years,"
b. the paragraph entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: Within the first three
Participation Years with respect to the Participant, the withdrawal
charge equals the sum of the charges described in subsections (a) and
(b) below; provided, however, that such charge does not exceed the
amount described in subsection (c) below where:
(a) is an amount equal to 2% of any Preferred Withdrawable Amounts
(defined in Section 2.07B) that have not previously been
withdrawn pursuant to Sections 2.07 and 2.07B.
(b) is an amount equal to
6% during the first five Participation Years
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of any Regular Withdrawable Amounts (defined in Section 2.07B)
that have not previously been withdrawn pursuant to Sections
2.07 and 2.07B.
(c) is an amount equal to the sum of (a) above, and 6% of the excess,
if any, if (i) the sum of the Annuity Values of such Accounts
over (ii) the cumulative total of Equitable Transferred Funds
made with respect to the Participant that have not previously
been withdrawn pursuant to Sections 2.07 and 2.07B.
c. the paragraph entitled "Withdrawal Charge After Five Years" is
replaced by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After three Participation Years
have been completed with respect to the Participant, Equitable (i)
will first withdraw, pursuant to Section 2.07B, the Free Corridor
Amount defined in Section 2.07C and (ii) next withdraw the remaining
portion of the sum of the Annuity Values of such Accounts. A
withdrawal charge will apply to the amount in (ii) above, and will
equal the sum of the charges described in subsections (a) and (b) of
the preceding subsection; provided, however, that such charge will not
exceed an amount equal to the lesser of the charges defined in (d) and
(e) below:
(d) is an amount equal to the sum of (a) in the preceding subsection,
and
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess, if any, of (i) the sum of the Annuity Values of
such Accounts (after withdrawal of the Free Corridor Amount) over
(ii) the cumulative total of Equitable Transferred Funds made on
behalf of the Participant that have not previously been withdrawn
pursuant to Sections 2.07 and 2.07B.
(e) is an amount equal to the excess, if any, of (1) the sum of (i)
2% of the first $10,000 of Equitable Transferred Funds made
during the current Participation Year and the preceding nine
Participation Years and (ii) 8% of all other contributions
(excluding Equitable Transferred Funds) made on behalf of such
Participant during the current Participation Year and the
preceding nine completed Participation Years over (2) the
cumulative total of any withdrawal charges made pursuant to
Sections 2.07 and 2.07B.
The Cash Values of the Guaranteed Interest Account, Stock Account and
Money Market Account will be in the same proportion as are the Annuity
Values of such Accounts.
3. with respect to Sections 2.07A Partial Withdrawals -- New Participants
a. the term "25 Participation Years" contained in the provision entitled
"No Withdrawal Charge" is changed to "12 Participation Years;"
PF 17003CH
<PAGE>
b. the provision entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: If the Participant has not
completed three Participation Years under the Contract, such
withdrawal charge will equal the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the total amount to be withdrawn from
the Accounts (including such charge) pursuant to this paragraph.
(b) is the excess, if any, of (i) 8% of the cumulative total of
Contributions made on behalf of such Participant over (ii) the
cumulative total of any prior withdrawal charges made pursuant to
this Section.
c. the provision entitled "Withdrawal Charge After Five Years" is
replaced by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After the completion of three
Participation Years with respect to the Participant, there will be no
withdrawal charge if the amount of partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts
an amount equal to the Free Corridor Amount, and (ii) then withdraw an
amount equal to the excess of the amount requested over the Free
Corridor Amount, plus a withdrawal charge. Such withdrawal charge will
be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn (including such charge) pursuant to (ii)
of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of
contributions made on behalf of such Participant during the
current Participation Year and the nine preceding Participation
Years over (ii) the cumulative total of any prior withdrawal
charges made pursuant to this Section.
4. with respect to Section 2.07B Partial Withdrawals -- Existing Participants
a. the term "20 Participation Years" contained in the provision entitled
"No Withdrawal Charge" is changed to "12 Participation Years;"
b. the provision entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: Within the first three
Participation Years with respect to the Participant, the withdrawal
charge equals the sum of the charges described in subsections (a),
(b), (c) and (d) below:
(a) With respect to any withdrawals of Preferred Withdrawable
Amounts, a charge of 2% of such withdrawals.
(b) With respect to any withdrawals of Free Withdrawable Amounts, no
charge.
(c) With respect to any withdrawals of Regular Withdrawable Amounts,
a charge of 6% of such withdrawals.
(d) With respect to any withdrawals of amounts other than the amounts
in (a), (b) and (c) above, no charge.
c. the provision entitled "Withdrawal Charge After Five Years" is
replaced by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After the completion of three
Participation Years with respect to the Participant, there will be no
withdrawal charge if the amount of partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.07C.
PF 17003CH
<PAGE>
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (1) first withdraw from such Accounts
an amount equal to the Free Corridor Amount, and (2) then withdraw
from such Accounts an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a withdrawal charge.
Such withdrawal charge will equal the sum of the charges described in
(a), (b) and (d) above plus with respect to any withdrawals of Regular
Withdrawable Amounts, a charge of
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
provided, however, that in no event will such charge exceed an amount
equal to the following: The excess, if any, of (1) the sum of (i) 2%
of the first $10,000 of Equitable Transferred Funds made during the
current Participation Year and the preceding nine Participation Years
and (ii) 8% of all other Contributions (excluding Equitable
Transferred Funds) made on behalf of the Participant during the
current Participation Year and the preceding nine completed
Participation Years over (2) the cumulative total of any prior
withdrawal charges made pursuant to this Section.
Whenever an amount is withdrawn from such Accounts that is not greater
than the current Free Corridor Amount, such amount is considered to be
(1) first, a withdrawal of Regular Withdrawable Amounts, (2) next, a
withdrawal of Preferred Withdrawable Amounts, (3) next, a withdrawal
of Free Withdrawable Amounts, and (4) lastly, a withdrawal of amounts
other than the amounts in (1), (2), or (3) above. However, no charge
will be assesed with respect to the portion of the withdrawal up to
the current Free Corridor Amount.
5. with respect to Section 2.07C Free Corridor Amount, the term "five
Participation Years" is changed to "three Participation Years."
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ [Signature Unreadable] By /s/ John B. Carter
............................... ..................................
President
Title Vice President By /s/ Rodney L. Enochs
............................... ..................................
Vice President and Secretary
Dated August 19, 1983 Date of Issue
............................... .......................
At New York, New York
..................................
PF 17003CH
<PAGE>
Attached to and made part of Group Annuity Contract No. 11931CH
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective December 12, 1983, said contract and riders
are amended as follows:
1. all references in the contract to the Annuitant's sex are deleted.
2. the phrase "3 1/4% interest and the 1971 ELAS Mortality Table" and the
phrase "1979 ELAS Mortality" appearing in Section 3.04 Amount of Annuity
Benefits shall be changed to "3 1/2% interest and the 1983 Individual
Annuity Mortality Table adjusted to a unisex basis based on a 50-50 split
of males and females" and "the projected 1983 Basic Table adjusted to a
unisex basis based on a 50-50 split of males and females," respectively,
wherever they appear.
3. the Tables of Guaranteed Annuity Payments appearing in Section 3.05 Payment
of Annuity Benefits, are replaced by the following Tables.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM -- 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
AGE
<TABLE>
<CAPTION>
AGE 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.54 4.58 4.62 4.66 4.70 4.74 4.77 4.81 4.84 4.86 4.91
61 4.62 4.67 4.71 4.76 4.81 4.84 4.88 4.91 4.95 4.99
62 4.72 4.76 4.81 4.85 4.90 4.94 4.98 5.02 5.06
63 4.81 4.86 4.91 4.96 5.01 5.06 5.10 5.14
64 4.92 4.97 5.02 5.08 5.13 5.17 5.22
65 5.03 5.09 5.15 5.20 5.26 5.31
66 5.15 5.21 5.27 5.33 5.39
67 5.28 5.34 5.40 5.47
68 5.41 5.48 5.55
69 5.56 5.63
70 5.71
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM
100% CONTINUATION -- ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
AGE
<TABLE>
<CAPTION>
AGE 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.40 4.44 4.48 4.51 4.55 4.58 4.61 4.65 4.68 4.71 4.74
61 4.48 4.52 4.56 4.60 4.64 4.67 4.71 4.74 4.78 4.81
62 4.56 4.60 4.65 4.69 4.73 4.77 4.80 4.84 4.86
63 4.65 4.69 4.74 4.78 4.83 4.87 4.91 4.95
64 4.74 4.79 4.84 4.89 4.93 4.98 5.02
65 4.85 4.90 4.95 5.00 5.05 5.10
66 4.95 5.01 5.06 5.11 5.17
67 5.07 5.12 5.18 5.24
68 5.19 5.25 5.32
69 5.32 5.39
70 5.46
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM
100% CONTINUATION -- ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
AGE
<TABLE>
<CAPTION>
AGE 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.27 5.30 5.34 5.37 5.41 5.44 5.47 5.51 5.54 5.57 5.59
61 5.34 5.38 5.42 5.46 5.49 5.53 5.57 5.60 5.63 5.66
62 5.42 5.46 5.50 5.54 5.58 5.62 5.65 5.69 5.73
63 5.50 5.55 5.59 5.63 5.67 5.71 5.75 5.79
64 5.59 5.64 5.69 5.73 5.78 5.82 5.86
65 5.69 5.74 5.79 5.84 5.89 5.93
66 5.79 5.85 5.90 5.95 6.00
67 5.90 5.96 6.02 6.08
68 6.02 6.08 6.15
69 6.15 6.22
70 6.29
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY
FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
FIXED ANNUITY BENEFIT INVESTMENT RETURN IS
------------------------- -------------------------------------------
AGE 3 1/2% 5%
- --------- -------- --------
<S> <C> <C> <C>
60 5.29 5.08 5.97
61 5.41 5.19 6.08
62 5.55 5.31 6.20
63 5.69 5.44 6.33
64 5.85 5.58 6.46
65 6.01 5.73 6.61
66 6.19 5.89 6.77
67 6.37 6.06 6.94
68 6.58 6.24 7.12
69 6.79 6.43 7.31
70 7.02 6.64 7.52
</TABLE>
PF17008CH
<PAGE>
This amendment was approved by the New York Insurance Department under an
accelerated procedure to assist employers in complying with the United States
Supreme Court decision in Arizona v. Norris.
The Department has reserved the right to require changes in this amendment to
comply with applicable New York law and regulations.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ William H. Schroeder By /s/ John B. Carter
------------------------------- -----------------------------------
President
Title Vice President By /s/ Rodney L. Enochs
---------------------------- -----------------------------------
Vice President and Secretary
Dated DEC. 15 1983 Date of Issue
---------------------------- ----------------------
At New York, N.Y.
----------------------------
PF17008CH
<PAGE>
Attached to and made part of Group Annuity Contract No. 11931CH
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective May 1, 1984, said contract and riders are
amended as follows:
1. The term "Stock Account" has been changed to "Stock Account, Balanced
Account and Aggressive Stock Account" wherever it appears except as
provided in items 4 and 5 of this rider.
2. The Section entitled "The Separate Accounts" is amended as follows:
a. the following Accounts have been added:
<TABLE>
<CAPTION>
Name Investments
---- -----------
<S> <C>
Separate Account J Primarily common stocks and other equity-type investments, publicly
traded debt securities and short-term money market instruments.
Separate Account K Primarily common stocks issued by high quality small and intermediate size
companies with strong growth prospects.
</TABLE>
b. The sentences
"Assets of the Separate Accounts attributable to the Contract shall
be subject to a charge at the rate of 1.75% a year, consisting of
.15% for investment management, .35% for financial accounting, .35%
for the annuity rate guarantee and the minimum death benefit, and
.90% for expenses and expense risk. The charge shall be made in
connection with (c) of the Net Investment Factor provision in
Section 1.16"
are amended to read as follows:
i. for Participants with a Participation Date prior to May 1,
1984
"Assets of Separate Account A and Separate Account E
attributable to the Contract shall be subject to a charge at
the rate of 1.75% a year, consisting of .15% for investment
management, .35% for financial accounting, .35% for the
annuity rate guarantee and the minimum death benefit, and .90%
for expenses and expense risk. Assets of separate Account J
and Separate Account K attributable to the Contract shall be
subject to a charge at the rate of 1.75% a year, for
investment management, financial accounting, the annuity rate
guarantee and the minimum death benefit, and expenses and
expense risk. The percentage allocation of the components of
the charges for Separate Account J and Separate Account K are
not necessarily allocated in the same amounts as for Separate
Account A and Separate Account E. The charge shall be made in
connection with (c) of the Net Investment Factor provision in
Section 1.16"
ii. for Participants with a Participation Date on or after May 1,
1984
"Assets of the Separate Accounts attributable to the Contract
shall be subject to a charge at the rate of 1.75% a year, for
investment management, financial accounting, the annuity rate
guarantee and the minimum death benefit, and expenses and
expense risk. The charge shall be made in accordance with (c)
of the Net Investment Factor provision in Section 1.16"
PF 17012CH
<PAGE>
3. The Section entitled "New Accumulation Unit Value" is amended by the
addition of the following Accounts:
Account Value Date
------- ----- ----
Separate Account J $10.00 As of May 1, 1984
Separate Account K $10.00 As of May 1, 1984
4. The title and the first two sentences of the Section entitled "Stock and
Money Market Accounts" shall read as follows:
STOCK, BALANCED, AGGRESSIVE STOCK
AND MONEY MARKET ACCOUNTS
Equitable maintains a Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account under the Contract for each Participant
with respect to whom Contributions are made. Any amount allocated to the
(1) Stock Account becomes part of Separate Account A, (2) Balanced Account
becomes part of Separate Account J, (3) Aggressive Stock Account becomes
part of Separate Account K, and (4) Money Market Account becomes part of
Separate Account E.
5. The Section entitled "Transfers Among Accounts" is amended to read as
follows:
TRANSFERS AMONG ACCOUNTS
At any time before a Participant's Retirement Date, such Participant, upon
written request, may transfer all or part of the amounts maintained for
the Participant to one or more of the other Accounts maintained for such
Participant as follows: (1) amounts in the Guaranteed Interest Account,
Stock Account, Balanced Account and Aggressive Stock Account may be
transferred among such Accounts; (2) amounts in the Money Market Account
may be transferred to the other Accounts. Such transfers will be made as
of the date Equitable receives such request, and will be subject to
Equitable rules in effect at the time of transfer. No transfers are
permitted from the Guaranteed Interest Account, Stock Account, Balanced
Account or Aggressive Stock Account maintained for the Participant to the
Money Market Account. Notwithstanding the above, transfers to the Balanced
Account may be prohibited by Equitable upon 30 days written notice to the
Participant.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ William H. Schroeder By /s/ John B. Carter
------------------------ --------------------------------
President
Title Vice President By /s/ Rodney L. Enochs
---------------------- --------------------------------
Dated 06/27/84 Date of Issue
---------------------- -----------------------
At N.Y. N.Y.
-------------------------
PF 17012CH
<PAGE>
Attached to and made part of Group Annuity Contract No. 11931CH between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective July 1, 1986, said contract and riders are
amended as follows:
1. With respect to PART I - DEFINITIONS, the following section is added:
SECTION 1.14C PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity"
means an annuity not involving life contingencies issued by Equitable which
does not permit any prepayment of the unpaid principal.
2. With respect to SECTION 1.18 CASH VALUE, the following text replaces the
paragraphs under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market
Account means an amount equal to the Annuity Values of such Accounts after
the earliest of the following occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such Participant and (b) the Participant's attainment of age 59
years and 6 months, or (ii) the completion of twelve Participation Years
with respect to such Participant, or (iii) the Participant's attainment of
age 55, the completion of five Participation Years with respect to such
Participant and the receipt by Equitable of a properly completed settlement
election form in order to apply the Annuity Values to purchase an Eligible
Annuity Certain, defined in Section 1.14B, or (iv) the completion of three
Participation Years with respect to such Participant and the receipt by
Equitable of a properly completed settlement election form in order to
apply the Annuity Values to purchase a Period Certain Annuity, defined in
Section 1.14C, where the certain period of such Annuity is at least ten
years. At all other times, the sum of the Cash Values of such Accounts
equals the sum of the Annuity Values of such Accounts, less a withdrawal
charge.
3. With respect to SECTION 2.07A PARTIAL WITHDRAWAL CHARGES, the following
paragraph replaces the paragraph under NO WIHTDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, Equitable will withdraw from the Stock Account, Balanced
Account, Aggressive Stock Account, Money Market Account and Guaranteed
Interest Account an amount equal to the lesser of (a) the full amount of
partial withdrawal requested or (b) the sum of the Annuity Values of such
Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The later of (a) the completion
of five Participation Years with respect to such Participant and (b) such
Participant's attainment of age 59 years and 6 months, or (ii) the
completion of twelve Participation Years with respect to such Participant,
or (iii) the Participant's attainment of age 55, the completion of five
Participation years with respect to such Participant and the receipt by
Equitable of a properly completed settlement election form in order to
apply the Annuity Values to purchase an Eligible Annuity Certain, defined
in Section 1.14B, or (iv) the completion of three Participation Years with
respect to such Participant and the receipt by Equitable of a properly
completed settlement election form in order to apply the Annuity Values to
purchase a Period Certain Annuity, defined in Section 1.14C, where the
certain period of such Annuity is at least ten years. At all other times,
the sum of the Cash Values of such Accounts equals the sum of the Annuity
Values of such Accounts, less a withdrawal charge.
Agreed to by:
UNITED STATES TRUST COMPANY OF NEW YORK THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES
By________________________________ By_______________________________
President
Title_____________________________ By_______________________________
Vice President and Secretary
Dated_____________________________ Date of Issue____________________
At________________________________
PF 17035CH
<PAGE>
Participant:
Certificate Number:
[LOGO] Issue Date:
Retirement Date:
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996,
G.P.O. New York, New York 10116
AGREES
o To allocate the Contributions made to the Contract, after deduction of any
applicable taxes, to the Stock Account, Balanced Account, Aggressive Stock
Account, Money Market Account or the Guaranteed Interest Account
maintained for the Participant, in accordance with Sections 2.02 and 2.03,
or in part to any one, as directed by the Participant.
o To apply the amount in the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and the Guaranteed Interest Account at
the Retirement Date to provide the Participant with an Annuity Benefit or
a Cash Value Benefit if the Participant is then living, and
o To provide the Participant with the other rights and benefits of this
certificate.
These agreements are subject to the provisions of this certificate.
TEN DAYS TO EXAMINE CERTIFICATE -- The Participant may terminate participation
under the Contract and cancel this certificate by returning it to Equitable
within ten days after receipt of it. Upon such cancellation, Equitable will
refund any Contribution made to Equitable on behalf of a Participant under the
Contract, plus or minus any investment gain or loss experienced in the
Participant's Stock Account, Balanced Account, Aggressive Stock Account, or
Money Market Account from the date such Contribution is allocated to such
Account to the date of such Cancellation.
/s/ Rodney L. Enochs Vice President /s/ John B. Carter President
and Secretary
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN SEPARATE ACCOUNTS
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF
SEPARATE ACCOUNT A. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE
DAILY RATE OF INVESTMENT RETURN IN SEPARATE ACCOUNT A IS EQUIVALENT TO MORE THAN
6.75% OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75%
OR 5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.16 IS 5% OR 3 1/2%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND
MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO
PROVIDE FOR TAXES.
THIS CONTRACT MAY NOT BE SUITABLE FOR A PARTICIPANT IF THE ONLY CONTRIBUTION TO
BE MADE ON SUCH PARTICIPANT'S BEHALF IS A SUBSTANTIAL SINGLE SUM CONTRIBUTION.
NO. 11935H AMENDED BY PF 17008H - PF 17012H - PF 17017H - PF 17021H
<PAGE>
CONTENTS
Part I - Definitions Page 2
Part II - Participant's Account Page 6
Part III - Annuity Benefits Page 9
Part IV - General Provisions Page 12
Equitable certifies that the Participant as named on page 3 is included under
the Group Annuity Contract designated on page 3 ("the Contract"), all pertinent
provisions of which are set forth below.
As described in Section 1.10, Equitable will determine, before the beginning of
each calendar year commencing after the period for which the Initial Guaranteed
Interest Rate is effective, the Yearly Guaranteed Interest Rate for the calendar
year for each Class of Participants, which shall not be lower than the Minimum
Guaranteed Interest Rate then in effect. Equitable, from time to time, may
declare a Guaranteed Interest Rate for a Class which exceeds the applicable
Yearly Guaranteed Interest Rate and a period for which such rate applies. A
Guaranteed Interest Rate is subject to annual administrative charges described
in Section 2.08.
This certificate is valid only if participation under the Contract has not been
terminated as described in the Contract and is subject to amendment as may be
required pursuant to Section 4.02.
EARLY WITHDRAWAL CHARGE. If a Participant terminates participation at any time
after the earliest of the following occurrences: (i) The later of (a) the
attainment of age 59 years and six months or (b) the completion of five
Participation Years, or (ii) the completion of 12 Participation Years, the sum
of the Cash Values of the Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account as
provided in Section 1.18, will be equal to the sum of the Annuity Values of each
such Account. At other times, the sum of the Cash Values of such Accounts may be
less than the sum of the Annuity Values as provided in Section 1.18.
The Contract is issued in consideration of the payment to Equitable of the
Contributions made under the Contract.
The provisions on the following pages are part of this certificate.
PART I - DEFINITIONS
SECTION 1.10 EMPLOYER. The term "Employer" means the sole proprietor or the
partnership adopting the Plan, or any successor unincorporated trade or business
that assumes in writing the obligations of the Plan. The Plan is adopted by the
Employer's execution of the Adoption Statement which constitutes a part of the
Plan and pursuant to which the Employer adopts the Plan. A sole proprietor is
deemed to be his own Employer and a partnership is deemed to be the Employer of
each partner.
SECTION 1.02 PLAN. The term "Plan" means the HR-10 Group Annuity/Pension Plan
with Optional Life Insurance, a master pension plan for self-employed
individuals and their employees sponsored by Equitable which has been determined
by the Internal Revenue Service to meet the requirements for qualification
under Section 401(a) of the Code.
SECTION 1.03 ANNUITY. The term "Annuity" means an annuity purchased in
accordance with the terms of the Plan if the Plan, as adopted by the Employer,
meets the requirements for qualification under Section 401(a) of the Code.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Section 3.04 of the Contract.
SECTION 1.05 PARTICIPANT. The term "Participant" means a person who has been
enrolled by Equitable under the Contract and for whom the Employer has purchased
an Annuity under the Contract. A person shall become enrolled under the Contract
upon receipt by Equitable of an enrollment form made available by Equitable and
completed in a manner satisfactory to Equitable. An Annuity is purchased for a
person enrolled under the Contract upon receipt by Equitable of an initial
Contribution by the Employer.
SECTION 1.06 CONTRIBUTION. The term "Contribution" means a payment made to
Equitable for a Participant with respect to an Annuity purchased for such
Participant under the Contract. Equitable is under no obligation to accept any
Contribution less than $20.00
NO. 11935H AMENDED BY PF 17008H -
PF 17012H - PF 17017H - PF 17021H --------
Page Two
<PAGE>
Page Four
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DEFINITIONS (CONTINUED)
SECTION 1.07 PARTICIPATION DATE. The Term "Participation Date" with respect to a
Participant means the date as of which Equitable has enrolled such Participant
under the terms of the Contract.
SECTION 1.08 PARTICIPATION YEAR. The term "Participation Year" with respect to
the Participant means the twelve month period beginning on (i) the Participation
Date, and (ii) each anniversary thereof, unless otherwise agreed to in writing
by Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS. Except as provided in Section 1.10, the term
"Class of Participants" refers to all Participants whose Participation Date is
in the same calendar year.
SECTION 1.10 GUARANTEED INTEREST RATE. For each Guaranteed Interest Account, the
term "Guaranteed Interest Rate" means the effective annual rate at which
interest accrues on the amount in such Account. Interest accrues daily. The
Guaranteed Interest Rate will never be less than 3% per annum.
Equitable will from time to time establish and make available for new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new Class of Participants will be established effective with the
effective date of the occurrence of (i), (ii) or (iii) above or any combination
thereof.
For the calendar year next succeeding the end of the period for which an
established Initial Guaranteed Interest Rate is effective and for each
subsequent calendar year thereafter, Equitable will determine for each
established Class of Participants before the beginning of such calendar year a
Yearly Guaranteed Interest Rate for such Class, which Yearly Guaranteed Interest
Rate will not be lower than the effective Minimum Guaranteed Interest Rate
applicable for such Class for such year. For any established Class of
Participants, Equitable reserves the right to change the Minimum Guaranteed
Interest Rate and the applicable period therefor, provided that any such Minimum
Guaranteed Interest Rate will not be lower than the Minimum Guaranteed Interest
Rate that would have been in effect in the absence of such change. Equitable
will notify each Participant in a Class in writing of the Yearly Guaranteed
Interest Rate or of any change in the Minimum Guaranteed Interest Rate at least
15 days prior to its effective date.
For the period (not to exceed one year)next succeeding the end of the period for
which an established Initial Guaranteed Interest Rate is effective and for each
subsequent period (not to exceed one year) the Equitable may determine for each
established Class of Participants a Guaranteed Interest Rate for such Class
which exceeds the applicable Yearly Guaranteed Interest Rate. Equitable will
notify each Participant in writing of the applicable Guaranteed Interest Rate
and duration.
SECTION 1.11 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Participant is to attain the retirement age specified in the Participant's
enrollment form. Before the Retirement Date the Participant may elect to change
the Retirement Date to another Retirement Date, which may be any date after the
filing of the election (other than the 29th, 30th, or 31st day of any month). No
Retirement Date shall be earlier than the date of attainment of age 59 years and
six months nor shall be later than the date of attainment of age 70 years and
six months. Any election for such change must be made in writing by the
Participant and shall not take effect until received by Equitable at its Home
Office.
SECTION 1.12 NORMAL FORM. The "Normal Form" of an Annuity Benefit under the
Contract means, (i) if the Participant has a living spouse at the Retirement
Date, the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity
Form with such spouse as the contingent annuitant (100% continuation), and (ii)
if the Participant does not have a living spouse at the Retirement Date, the
Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depends is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by the Participant. The payments commence on the date as of which the
Joint and Survivor Life Annuity Form is purchased and terminate with the last
payment due before the death of the survivor.
SECTION 1.14A LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
providing fixed monthly payments during the lifetime of the person upon whose
life such payments depend. The payments commence on the date as of which the
Life Annuity Form is purchased and terminate with the last payment due before
the death of such person.
SECTION 1.14B ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain"
means an annuity not involving life contingencies issued by Equitable which
extends beyond the Participant's attainment of age 59 years and six months and
does not permit any prepayment of the unpaid principal prior to the
participant's attainment of age 59 years and six months.
SECTION 1.15 THE SEPARATE ACCOUNTS. The term "Separate Accounts" means the
following separate investment accounts maintained by Equitable to which portions
of its assets have been allocated for the Contract and certain other contracts:
NO. 11935H AMENDED BY PF 17008H -
PF 17012H - PF 17017H - PF 17021H ---------
Page Four
<PAGE>
Page Five
---------
DEFINITIONS (CONTINUED)
Name Investments
- ---- -----------
Separate Account A Primarily common stock and other equity-type
investments.
Separate Account E Primarily short-term money market instruments.
Separate Account J Primarily common stocks and other equity-type
investments, publicly traded debt securities and
short-term money market instruments.
Separate Account K Primarily common stocks issued by high quality small
and intermediate size companies with strong growth
prospects.
Equitable reserves the right to withdraw from any Separate Account and allocate
to another separate account assets determined by Equitable to be associated with
the class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid odd lots and
fractions. On and after the date of any such withdrawal the reference in the
Contract to such Separate Account shall mean such other separate account to
which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Accounts will, at most
times, consist primarily of the types of investments indicated above. Equitable
may, however, at its discretion invest the assets of any Separate Account in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including attorneys in its employ) as to what investments it
is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate any Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or a part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
any Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) run any Separate Account under direction of a committee,
and to discharge such committee at any time; and (iii) restrict or eliminate any
voting rights of participants or other persons who have voting rights as to the
Separate Accounts.
Assets of the Separate Accounts attributable to the Contract shall be subject to
a charge at the rate of 1.75% a year, for investment management, financial
accounting, the annuity rate guarantee and the minimum death benefit, and
expenses and expense risk. The charge shall be made in accordance with (c) of
the Net Investment Factor provision in Section 1.16.
The assets of Separate Accounts are the property of Equitable; however, the
portion of the assets of each Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising out of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of the Separate Accounts in excess of such
reserves and contract liabilities to the general account of Equitable.
SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS.
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which there is a
sufficient degree of trading in the portfolio securities of a Separate Account
that the New Accumulation Unit Value or New Annuity Unit Value might be
materially affected by changes in the value of the portfolio securities in a
Separate Account, as determined by the Separate Account Committee or, if there
is no Committee, by Equitable.
NET INVESTMENT FACTOR: For each Separate Account the Net Investment Factor for a
Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus(2) the investment income
and the capital gains, realized or unrealized, credited to the assets of
the Separate Account in the Valuation Period for which the Net Investment
Factor is being determined, minus (3) the capital losses, realized or
unrealized, charged against such assets in such Valuation Period, minus (4)
any amount charges against the Separate Account in such Valuation Period
for taxes or for amounts set aside by Equitable as a reserve for taxes
attributable to the maintenance or operation of the Separate Account;
(b) is the value of the assets in the Separate Account at the close of business
of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial accounting, the annuity rate
guarantee and the minimum death benefit, and expenses and expense risk.
The value of the assets in the Separate Account, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
their fair value, as determined in accordance with accepted accounting practices
and applicable laws and regulations.
NO. 11935H AMENDED BY PF 17008H - ---------
PF 17012H - PF 17017H - PF 17021H Page Five
<PAGE>
Page Six
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DEFINITIONS (CONTINUED)
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the value
of the interest of a Participant's Stock Account, Balanced Account, Aggressive
Stock Account or Money Market Account on or before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Values for the
Separate Accounts have been established as follows:
Account Value Date
------- ----- ----
Separate Account A $10.00 As of November 1, 1968
Separate Account E $10.00 As of September 4, 1974
Separate Account J $10.00 As of May 1, 1984
Separate Account K $10.00 As of May 1, 1984
The new Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from the Separate Account A Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value for Separate Account
A has been established at $1.00 as of November 1, 1968. The Annuity Unit Value
for any subsequent Valuation Period is the New Annuity Unit Value for the
immediately preceding Valuation Period multiplied by the Adjusted Net Investment
Factor for such subsequent Valuation Period. The Adjusted Net Investment Factor
for a Valuation Period is the Net Investment Factor for such period reduced for
each calendar day in such subsequent Valuation Period by the Net Investment
Factor times (i).00013366, if the Assumed Base Rate of Net Investment Return is
5%, and (ii) .00009425, if the Assumed Base Rate of Net Investment Return is
3 1/2%. The Assumed Base Rate of Net Investment Return shall be 5%, except in
states where the rate is not permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average Annuity Unit Value for Separate
Account A for a calendar month is equal to the average of the New Annuity Unit
Values for the Valuation Periods ending in such month.
SECTION 1.17 ANNUITY VALUE. The term "Annuity Value" with respect to a
Participant's Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account, means the amount in such
Accounts pursuant to Sections 2.02 and 2.03.
SECTION 1.18 CASH VALUE.
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value" with
respect to such Participant's Guaranteed Interest Account, Stock Account,
Balanced Account, Aggressive Stock Account, and Money Market Account means an
amount equal to the Annuity Values of such Accounts after the earliest of the
following occurrences:
(i) The later of (a) the completion of five Participation Years with respect to
such Participant and (b) the Participant's attainment of age 59 years and six
months, or (ii) the completion of 12 Participation Years with respect to such
Participant, or (iii) if the Participant has attained age 55, completed five
Participation Years, and the Cash Values are to be applied to purchase an
Eligible Annuity Certain defined in Section 1.14B. At other times, the sum of
the Cash Values of such Accounts equals the sum of the Annuity Values of such
Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE: The withdrawal charge equals the lesser of (a) or (b) where:
(a) equals
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Values of such Accounts over
(ii) the Free Corridor Amount defined in Section 2.07B.
(b) is the excess, if any, of (i) 8% of the total contributions made on behalf
of such Participants during the current Participation Year and the
preceding nine Participation Years over (ii) the cumulative total of any
withdrawal charges made pursuant to Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account will be in the same
proportion as are the Annuity Values of such Accounts.
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of 1954, as
now or hereafter amended, or any corresponding provisions of prior or subsequent
United States revenue laws.
PART II - PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS. The Employer is to make Contributions from time to
time on such dates and in such amounts as determined by the Employer pursuant to
the terms of the Plan. The Employer is to specify the Participant with respect
to whom each such Contribution is being made and the amount to be allocated to
the Stock Account, Balanced Account, Aggressive Stock Account, Money Market
Account and the Guaranteed Interest Account.
Each Contribution received by Equitable with respect to a Participant will,
before its allocation under the Contract, be reduced by the amount of any
applicable taxes, as determined by Equitable.
NO. 11935H AMENDED BY PF 17008H - --------
PF 17012H - PF 17017H - PF 17021H Page Six
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PARTICIPANT'S ACCOUNT (CONTINUED)
Participant may, with Equitable's agreement, transfer to the Contract any amount
held with respect to such Participant under a plan covering self-employed
individuals which has been determined by the Internal Revenue Service to meet
the requirements for qualification under Section 401 (a) of the Code, as
modified by Section 401(d) of the Code ("Transferred Funds"). Any Transferred
Funds from a contract not issued by Equitable will, before allocation under the
Contract, be reduced by the amount of any applicable taxes, as determined by
Equitable.
Equitable will issue to each Participant an individual certificates setting
forth a statement in substance of the benefits to which such Participant is
entitled under the Contract.
SECTION 2.02 STOCK, BALANCED, AGGRESSIVE STOCK AND MONEY MARKET ACCOUNTS.
Equitable maintains a Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account under the Contract for each Participant with respect to
whom Contributions are made. Any amount allocated to the (1) Stock Account
becomes part of Separate Account A, (2) Balanced Account becomes part of
Separate Account J, (3) Aggressive Stock Account becomes part of Separate
Account K, and (4) Money Market Account becomes part of Separate Account E. Any
amount withdrawn from an Account will no longer be part of the applicable
Separate Account.
On any date when an amount is allocated to or withdrawn from an Account, the
Account will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the New Accumulation
Value for the appropriate Separate Account for the Valuation Period which
includes that date. The number of Units in an Account on any date is equal to
(i) the sum of any Accumulation Units that have been credited to the Account
minus (ii) the sum of any Accumulation Units that have been charged to that
Account. The amount in the Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account on any date is equal to the product of (i) the
number of Accumulation Units in such Account on that date and (ii) the New
Accumulation Unit Value for the appropriate Separate Account for the Valuation
Period which includes that date.
SECTION 2.03 GUARANTEED INTEREST ACCOUNT. Equitable maintains a Guaranteed
Interest Account under the Contract for each Participant with respect to whom
Contributions are made. Any amount allocated to the Guaranteed Interest Account
becomes part of the general assets of Equitable, which support the guarantees of
the Contract and other contracts.
The amount in a Guaranteed Interest Account at any time is equal to the sum of
all amounts that have been allocated to such Guaranteed Interest Account
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn pursuant to
Sections 2.07, 2.07A, and Section 2.08 from such Account, and transferred
pursuant to Section 2.05 from such Guaranteed Interest Account, and less the sum
of any annual administrative charges accrued but not made. Equitable guarantees
that the amount in a Guaranteed Interest Account at any time before the
Retirement Date will not be less than the sum of all amounts allocated to such
Account pursuant to Section 2.04 or transferred to such Account pursuant to
Section 2.05 and less the sum of all amounts that have been withdrawn from such
Account pursuant to Sections 2.07 and 2.07A, and transferred from such Account
pursuant to Section 2.05, all accumulated at 3% interest, compounded annually.
In any Participation Year in which no Contribution is allocated to a Guaranteed
Interest Account, the amount in such Account at the end of the Participation
Year shall not be less than the amount in such Account at the beginning of the
Participation Year plus the sum of all amounts transferred to such Account
pursuant to Section 2.05 less the sum of all amounts withdrawn and transferred
out of such Account pursuant to Sections 2.07, 2.07A, and Section 2.05, all
accumulated at 3% interest, compounded annually.
A Guaranteed Interest Account for a Participant terminates on the earliest of
(i) the Retirement Date, (ii) the death of the Participant, and (iii)
termination of participation pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO ACCOUNT. Each Contribution made with respect to a
Participant pursuant to Section 2.01, after deduction for any applicable taxes,
will be allocated, as of the date by which Equitable has received both such
Contribution and direction as to its allocation, to the Guaranteed Interest
Account, Stock Account, Balanced Account, Aggressive Stock Account or Money
Market Account or in part to each, at the sole direction of the Participant as
specified to Equitable, provided that the percentage allocated to each Account
is a whole number.
Any amount that a Participant has directed to be transferred to the Guaranteed
Interest Account, Stock Account, Balanced Account or Aggressive Stock Account
pursuant to Section 2.05 will be allocated as of the date of such transfer to
the appropriate Account maintained for such Participant.
Interest is allocated to the Guaranteed Interest Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05 and 2.07 and 2.07A, at the time of application of amounts in the
Guaranteed Interest Account to provide Annuity Benefits, upon termination of
participation pursuant to Section 2.06, and upon death of the Participant
pursuant to Section 2.09.
SECTION 2.05 TRANSFERS AMONG ACCOUNTS. At any time before a Participant's
Retirement Date, such Participant, upon written request, may transfer all or
part of the amounts maintained for the Participant to one or more of the other
Accounts maintained for such Participant as follows: (1) amounts in the
Guaranteed Interest Account, Stock Account, Balanced Account and Aggressive
Stock Account may be transferred among such Accounts; (2) amounts in the Money
Market Account may be transferred to the other accounts. Such transfers will be
made as of the date Equitable receives such request, and will be subject to
Equitable's rules in effect at the time of transfer. No transfers are permitted
from the Guaranteed Interest Account, Stock Account, Balanced Account or
Aggressive Stock Account maintained for the Participant to the Money Market
Account. Notwithstanding the above, transfers to the Balanced Account may be
prohibited by Equitable upon 30 days written notice to the Participant.
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PARTICIPANT'S ACCOUNT (CONTINUED)
SECTION 2.06 TERMINATION OF PARTICIPATION. Subject to any applicable
restrictions under the terms of the Plan, on or before a Participant's
Retirement Date, such Participant may elect by written notice to terminate
participation under the Contract. Upon receipt of such notice, Equitable will
determine the Cash Value, as of the date Equitable received such notice, of the
Guaranteed Interest Account, Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account maintained for such Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Guaranteed Interest Account,
Stock Account, Balanced Account, Aggressive Stock Account and Money Market
Account, pay such Annuity Values and terminate such Participant's participation
under the Contract. This right may be exercised with respect to the Participant
only if both (i) no Contributions have been made under the Contract during the
last three completed Participation Years, and (ii) the sum of such Annuity
Values is $500 or less. Equitable reserves the right to terminate a
Participant's participation under the Contract if at least 120 days have elapsed
since the issue date shown on the certificate issued to such Participant under
the Contract and no Contributions have been made under the Contract with respect
to such Participant.
Upon payment of such Cash Values or Annuity Values, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Values or Annuity Values arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions under
the terms of the Plan, a Participant may elect by written notice to Equitable to
make a partial withdrawal from the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and the Guaranteed Interest Account
maintained for such Participant before such Participant's Retirement Date.
Upon withdrawal pursuant to Section 2.07 or 2.07A, Equitable will pay the lesser
of the sum of the Cash Values of such Accounts or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by such Participant. Unless instructed otherwise, the amount withdrawn
(including the amount of any withdrawal charge) will be allocated between such
Accounts in proportion to the Annuity Value of each such Account.
Upon any payment to a Participant pursuant to Section 2.07 or 2.07A, Equitable
will be released from any and all liability for payments with respect to the
Contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to Section 2.07 or 2.07A may be deferred by
Equitable in accordance with the provisions of Section 4.08.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300. If a withdrawal from the Accounts made pursuant to Sections
2.07 or 2.07A would result in total Annuity Values of less than $500, Equitable
will so advise the Participant and reserves the right to withdraw the Annuity
Values of the Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account, pay the Annuity Values of
such Accounts to the Participant, and terminate such Participant's participation
under the contract.
SECTION 2.07A PARTIAL WITHDRAWAL CHARGES.
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, Equitable will withdraw from the Stock Account, Balanced Account,
Aggressive Stock Account, Money Market Account and Guaranteed Interest Account
an amount equal to the lesser of (a) the full amount of partial withdrawal
requested or (b) the sum of the Annuity Values of such Accounts, provided the
request for partial withdrawal is made after the earliest of the following
occurrences: (i) The later of (a) the completion of five Participation Years
with respect to such Participant and (b) such Participant's attainment of age 59
years and six months, or (ii) the completion of 12 Participation Years with
respect to such participant, or (iii) if the Participant has attained age 55,
has completed five Participation Years, and the partial withdrawal is to be
applied to purchase an Eligible Annuity Certain defined in Section 1.14B. At
other times, Equitable will withdraw from such Accounts an amount equal to the
amount of partial withdrawal requested plus a withdrawal charge.
WITHDRAWAL CHARGE: There will be no withdrawal charge if the amount of partial
withdrawal requested is not greater than the Free Corridor Amount defined in
Section 2.07B.
If the amount of partial withdrawal requested is greater than the Free Corridor
Amount, Equitable will (i) first withdraw from such Accounts an amount equal to
the Free Corridor Amount, and (ii) then withdraw an amount equal to the excess
of the amount requested over the Free Corridor Amount, plus a withdrawal charge.
Such withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn (including such charge) pursuant to (ii) of the
preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of contributions
made on behalf of such Participant during the current Participation Year
and the nine preceding Participation Years over (ii) the cumulative total
of any prior withdrawal charges made pursuant to this Section.
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PARTICIPANT'S ACCOUNT (CONTINUED)
SECTION 2.07B FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" with respect
to a Participant who has completed three Participation Years or attained age
59 1/2 means an amount equal to the excess, if any, of (i) 10% of the sum of the
Annuity Values of the Stock Account, Balanced Account, Aggressive Stock Account,
Money Market Account and the Guaranteed Interest Account over (ii) cumulative
prior withdrawals made pursuant to Section 2.07 or 2.07A in the current
Participation Year with respect to the Participant. With respect to a
Participant who has not completed three Participation Years or attained age
59 1/2, the Free Corridor Amount is zero.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year before a Participant's Retirement Date, if the sum of the
Annuity Values of the Guaranteed Interest Account, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account on that date is less
than $10,000.00, Equitable will withdraw from the Guaranteed Interest Account,
Stock Account, Balanced Account, Aggressive Stock Account and Money Market
Account maintained under the Contract, as to the Contributions remitted with
respect to such Participant, an annual administrative charge equal to the lesser
of $30 or 2% of the sum of (i) the Annuity Values of the Guaranteed Interest
Account, Stock Account, Balanced Account, Aggressive Stock Account and Money
Market Account at the end of that Participation Year and (ii) any withdrawals
made from such Accounts pursuant to Section 2.07 and 2.07A during that
Participation Year. The charge will be allocated between the Stock Account,
Balanced Account, Aggressive Stock Account, Money Market Account and Guaranteed
Interest Account in proportion to the Annuity Values of each such Account, at
the end of the Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Values or Cash Values of such Participant's Account Pursuant to Section 3.03, or
upon termination of such Account pursuant to Section 2.06 or Section 2.09 during
a Participation Year, if the sum of the Annuity Values of the Guaranteed
Interest Account, Stock Account, Balanced Account, Aggressive Stock Account, and
Money Market Account at that date is less than $10,000, Equitable will withdraw
the administrative charge described in this Section for the applicable part of
that Participation Year.
SECTION 2.09 DEATH BENEFIT. If the Employer reports to Equitable, or if
Equitable otherwise ascertains, that a Participant has died while Accounts for
such Participant are maintained under the Contract and before such Participant's
Retirement Date, Equitable, upon receipt of due proof of such death, will pay in
a single sum to the beneficiary designated by such Participant to receive such
payment the amount of death benefit payable with respect to such Participant.
The amount of the death benefit with respect to a Participant at any time prior
to the Retirement Date is equal to the greater of (i) the sum of the Annuity
Values of the Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account maintained under the Contract
for such Participant and (ii) the minimum death benefit with respect to such
Participant. Such minimum death benefit is the sum of all Contributions made
with respect to such Participant pursuant to Section 2.01 (before reduction of
any applicable taxes) less an adjustment for any withdrawals made pursuant to
Sections 2.07 and 2.07A from the Accounts maintained under the Contract for such
Participant. Any such withdrawal will reduce the minimum death benefit (as
adjusted by any previous such withdrawal) by an amount which is in the same
proportion as the amount being withdrawn is to the Annuity Values then in the
Guaranteed Interest Account, Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account maintained under the Contract for such
Participant. If, in accordance with the provisions of Section 2.01, the cash
value of an Annuity contract issued by Equitable, which provides for a death
benefit before retirement equal to the greater of the contract cash value or an
alternative amount based on premiums paid or contributions made under the
Annuity contract, is transferred to the Contract, such alternative amount as of
the date of transfer will be included in the "sum of all Contributions" in lieu
of the amount of cash value transferred, for purposes of the death benefit under
the Contract.
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefore, be withdrawn from the
Guaranteed Interest Account, Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account maintained with respect to such Participant
under the Contract. Upon such payment, Equitable will be released from any and
all liability for payments with respect to the Contributions from which the
Annuity Values arose.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of Separate Account A.
The amount of the first, second, and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to the payee pursuant to Section 3.04. The amount
of the fourth and each subsequent payment under a Variable Annuity Benefit will
be equal to the number of Annuity Units with respect to such benefit, multiplied
by the Average New Annuity Unit Value for the second calendar
NO. 11935H AMENDED BY PF 17008H - ---------
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ANNUITY BENEFITS (CONTINUED)
month immediately preceding the date of the payment. The fourth and subsequent
annuity payments under a Variable Annuity Benefit will not be increased or
decreased in amount because of mortality or expense experience. The number of
Annuity Units with respect to a benefit is the number determined by dividing the
amount of the first monthly payment under such benefit by the New Annuity Unit
Value for the Valuation Period which includes the due date of the first monthly
payment.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living, the
Annuity Values of such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
shall be applied to provide the Normal Form of Annuity Benefit, unless such
Participant elects (i) to receive the Cash Value of such Account in a single sum
or (ii) to apply such Annuity Value or Cash Value, whichever is applicable
pursuant to the first paragraph of Section 3.04, to provide an Annuity Benefit
on any other annuity form offered by Equitable, as elected by the Participant,
subject to Equitable's rules then in effect and any applicable requirements
under the Code.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.06 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Values of such Participant's Guaranteed
Interest Account, Stock Account, Balanced Account, Aggressive Stock Account and
Money Market Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If a Participant elects pursuant to the
first paragraph or third paragraph of Section 3.03 to receive an Annuity Benefit
in lieu of the Cash Values of the Guaranteed Interest Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account, the amount
applied to provide the Annuity Benefit will be (i) the Annuity Values of such
Accounts if the payments under the annuity form elected are contingent upon the
survival of a person, or (ii) the Cash Values of such Accounts if the payments
under the annuity form elected are not contingent upon the survival of a person.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If such
amount is applied on or after the completion of five Participation Years with
respect to such Participant, the balance shall purchase the Annuity Benefit on
the basis of either (i) the Table of Guaranteed Annuity Payments shown below or
(ii) Equitable's current individual annuity rates for payment of proceeds,
whichever rates would provide a larger benefit with respect to the payee. If
such current individual annuity rates are used, such Participant's certificate
will be replaced by an Equitable supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a Participant, the
balance, after any applicable tax on annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown below or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
maintained for such Participant shall terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form are based on 3 1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on a 50-50 split of males and
females and an Assumed Base Rate of Net Investment Return of 3 1/2% or 5%,
whichever applies pursuant to Section 1.16. The Assumed Base Rate of Net
Investment Return is 5% for certificates issued for delivery in New York.
Equitable may change the monthly income amounts contained in the Tables of
Guaranteed Annuity Payments and the basis for determining such amounts, for new
Participants, by at least 90 days advance notice to the Contract Holder and by
an amendment to the Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on a 50-50 split of males and
females if such annuity form provides for a Fixed Annuity Benefit, and on the
projected 1983 Basic Table adjusted to a unisex basis based on a 50-50 split of
males and females and an Assumed Base Rate of Net Investment Income Return of 5%
or 3 1/2%, whichever applies pursuant to Section 1.16 if such annuity form
provides for a Variable Annuity Benefit.
NO. 11935H AMENDED BY PF 17008H - --------
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ANNUITY BENEFITS (CONTINUED)
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's survival must
be furnished to Equitable either by personal endorsement of the check drawn for
payment or by other means satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Upon election by a Participant pursuant to Section 3.03 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
<TABLE>
<CAPTION>
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
Age 60 61 62 63 64 65 66 67 68 69 70
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.54 4.58 4.62 4.66 4.70 4.74 4.77 4.81 4.84 4.88 4.91
61 4.62 4.67 4.71 4.76 4.81 4.84 4.88 4.91 4.95 4.99
62 4.72 4.76 4.81 4.85 4.90 4.94 4.98 5.02 5.06
63 4.81 4.86 4.91 4.96 5.01 5.06 5.10 5.14
64 4.92 4.97 5.02 5.08 5.13 5.17 5.22
65 5.03 5.09 5.15 5.20 5.26 5.31
66 5.15 5.21 5.27 5.33 5.39
67 5.28 5.34 5.40 5.47
68 5.41 5.48 5.55
69 5.56 5.63
70 5.71
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION -- ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 3-1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
Age 60 61 62 63 64 65 66 67 68 69 70
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.40 4.44 4.48 4.51 4.55 4.58 4.61 4.65 4.68 4.71 4.74
61 4.48 4.52 4.56 4.60 4.64 4.67 4.71 4.74 4.78 4.81
62 4.56 4.60 4.65 4.69 4.73 4.77 4.80 4.84 4.88
63 4.65 4.69 4.74 4.78 4.83 4.87 4.91 4.95
64 4.74 4.79 4.84 4.89 4.93 4.98 5.02
65 4.85 4.90 4.95 5.00 5.05 5.10
66 4.95 5.01 5.06 5.11 5.17
67 5.07 5.12 5.18 5.24
68 5.19 5.25 5.32
69 5.32 5.39
70 5.46
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION -- ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
Age 60 61 62 63 64 65 66 67 68 69 70
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.27 5.30 5.34 5.37 5.41 5.44 5.47 5.51 5.54 5.57 5.59
61 5.34 5.38 5.42 5.46 5.49 5.53 5.57 5.60 5.63 5.66
62 5.42 5.46 5.50 5.54 5.58 5.62 5.65 5.69 5.73
63 5.50 5.55 5.59 5.63 5.67 5.71 5.75 5.79
64 5.59 5.64 5.69 5.73 5.78 5.82 5.86
65 5.69 5.74 5.79 5.84 5.89 5.93
66 5.79 5.85 5.90 5.95 6.00
67 5.90 5.96 6.02 6.08
68 6.02 6.08 6.15
69 6.15 6.22
70 6.29
</TABLE>
NO. 11935H AMENDED BY PF 17008H - -----------
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<PAGE>
Page Twelve
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ANNUITY BENEFITS (CONTINUED)
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
AGE FIXED ANNUITY BENEFIT INVESTMENT RETURN IS
- --- --------------------- ---------------------------
3 1/2% 5%
------ --
60 5.29 5.08 5.97
61 5.41 5.19 6.08
62 5.55 5.31 6.20
63 5.69 5.44 6.33
64 5.85 5.58 6.46
65 6.01 5.73 6.61
66 6.19 5.89 6.77
67 6.37 6.06 6.94
68 6.58 6.24 7.12
69 6.79 6.43 7.31
70 7.02 6.64 7.52
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average New Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. The Contract constitutes the entire Contract between the
parties and the provisions of the Contract alone will govern with respect to the
rights and obligations of Equitable. The provisions of the Contract will be
applied separately with respect to each Participant. Nothing in the enrollment
form referred to in Section 1.05, the Plan or trust agreement referred to in
Section 4.10 nor any modification, amendment, or supplement to any such
documents will in any way be construed to enlarge, change, vary or in any other
way affect the obligations of Equitable as expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE. Equitable reserves the right to amend the
Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the Contract and any certificate to reflect changes in
the Code, or in regulations or published rulings of the Internal Revenue Service
so that each such certificate will continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY. The entire interest of any
Participant under the Contract is nonforfeitable.
No interest of a Participant under the Contract may be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law, no such amount will in any way
be subject to any claim against such payee.
SECTION 4.04 PARTICIPATION IN SURPLUS. The Contract and all other contracts in
the same class of contracts shall be combined for the purpose of ascertaining
the annual surplus of Equitable to be apportioned to said contracts as a
dividend and the portion of any such dividend that is to be allocated to the
Contract shall be determined by Equitable. The participation of this class of
contracts in annual surplus is, however, expected to be minimal. Any amount so
allocated to the Contract shall be payable as of January 1 of the calendar year
in which a dividend is apportioned and will be payable in cash and shall be
equitably allocated by Equitable to the Guaranteed Interest Accounts maintained
hereunder for Participants.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.05 BENEFICIARY. Each Participant, as of such Participant's
Participation Date, is to provide Equitable with an initial designation of the
beneficiary entitled to receive any death benefit payable with respect to such
Participant pursuant to Section 2.09. The Participant may change such
designation from time to time during such Participant's lifetime and while
Accounts for such Participants are being maintained hereunder. Any such
designation or
NO. 11935H AMENDED BY PF 17008H - -----------
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<PAGE>
Page Thirteen
-------------
GENERAL PROVISIONS (Continued)
change will be made by written notice in a form satisfactory to Equitable. A
change will, upon receipt at a designated Equitable Office, take effect as of
the time the written notice was signed, whether or not the Participant is living
on the date of receipt, but without further liability as to any payment or other
settlement made by Equitable before receipt of such change.
Unless otherwise specified in the designation, if a Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant, and if more than one survive they
will share equally.
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.09 for which there is no designated beneficiary living at the death of
the Participant will be payable in a single sum to the children of the
Participant who survive the Participant, in equal shares, or should none
survive, then to the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is to election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.06 DISQUALIFICATION. In the event that an annuity purchased hereunder
with respect to a Participant fails to qualify as an Annuity as described in
Section 1.03, Equitable shall have the right, upon receiving notice of such fact
before the Retirement Date, to terminate participation with respect to such
Participant under the Contract and pay to such Participant the amount in the
Account maintained with respect to such Participant less a deduction for the
appropriate part attributable to such Participant of any Federal income tax
payable by Equitable which would not have been payable if such Participant had
an Annuity under the Contract.
SECTION 4.07 FUTURE PARTICIPANTS. Equitable reserves the right at its sole
discretion to curtail or prohibit further enrollment as Participants under the
Contract of any individuals who are not currently participating under the
Contract as of such date of curtailment or prohibition.
SECTION 4.08 DEFERMENT. Payments by Equitable from the Participant's Guaranteed
Interest Account pursuant to the provisions of Section 2.06, Sections 2.07 and
2.07A, and Section 2.09, or any commuted payments arising from a Fixed Annuity
Benefit pursuant to Section 3.05, may be deferred for up to six months after
receipt of a written request for such surrender or withdrawal, or receipt of due
proof of death of the Participant, respectively, or receipt of due documentation
for such commutation payment pursuant to Section 3.05. Interest at the current
Guaranteed Interest Rate for such Participant's Guaranteed Interest Account will
be allowed on any such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the Participant's
Stock Account, Balanced Account, Aggressive Stock Account or Money Market
Account pursuant to the provisions of Section 2.06, Sections 2.07 and 2.07A, and
Section 2.09, or any commuted payments arising from a Variable Annuity Benefit
pursuant to Section 3.05, will be made within seven days after receipt of a
written request for such surrender or withdrawal, or receipt of due proof of
death of the Participant, respectively, or receipt of due documentation for such
commutation payment pursuant to Section 3.05.
During any period when (i) the sale of securities or the determination of the
New Accumulation Unit Value or the Average New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or trading
on such Exchange is restricted, or (ii) the Securities and Exchange Commission
may by order permit postponement for the protection of persons having interests
in the Separate Accounts, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of
Cash Values and Annuity Values, arising from an amount in a
Participant's Stock Account, Balanced Account, Aggressive Stock Account
or Money Market Account;
(b) to defer payment of any portion of the death benefit arising from an
amount in a Participant's Stock Account, Balanced Account, Aggressive
Stock Account or Money Market Account;
(c) to defer the payment of any Variable Annuity Benefit under the Contract
or the application of any such Benefit to provide for any other payment
called for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to
provide any Annuity Benefit permitted under the Contract.
SECTION 4.09 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Participant with a
notice showing as of a specified recent date (1) the Annuity Value of the
Guaranteed Interest Account, (2) the total number of Accumulation Units credited
to the Stock Account, Balanced Account, Aggressive Stock Account and Money
Market Account, (3) the New Accumulation Unit Values, (4) the sum of the Cash
Values of the Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account and (5) the amount of death
benefit payable with respect to the Participant. After the Retirement Date
Equitable will notify the Participant of the number of Annuity Units and the
Average New Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY. The sole responsibility of the
Contract Holder is to serve as party to the Contract. The Contract Holder will
have no responsibility for the administration of any Plan, for payments to the
Guaranteed
NO. 11935H AMENDED BY PF 17008H - -------------
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<PAGE>
Page Fourteen
-------------
GENERAL PROVISIONS (CONTINUED)
Interest Account, Stock Account, Balanced Account, Aggressive Stock Account or
Money Market Account, or any payments or other distributions hereunder.
Equitable will deal with the Contract Holder in accordance with the terms and
conditions of the trust agreement pursuant to which the Contract Holder agreed
to act as such and with the Contract and in such manner as the Contract Holder
and Equitable may agree, without the consent of any other person. Any Employer
making Contributions under the Contract shall be deemed to have adopted and
accepted the trust agreement as part of the Plan with respect to which such
Contributions are made.
SECTION 4.11 AGE. If the Annuitant's age has been misstated, any benefits will
be those which would have been purchased at the correct age. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
This certificate was approved by the New York Insurance Department under an
accelerated procedure to assist employers in complying with the United States
Supreme Court decision in Arizona v. Norris. The Department has reserved the
right to require changes to comply with applicable New York law and regulations.
NO. 11935H AMENDED BY PF 17008H - -------------
PF 17012H - PF 17017H - PF 17021H Page Fourteen
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective July 1, 1986, or your Participation Date, whichever is the later, we
have amended your Certificate issued under Group Annuity Contract No. 11931CH as
follows:
1. With respect to PART I - DEFINITIONS, the following section is added:
SECTION 1.14C PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity"
means an annuity not involving life contingencies issued by Equitable which
does not permit any prepayment of the unpaid principal.
2. With respect to SECTION 1.18 CASH VALUE, the following text replaces the
paragraphs under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market
Account means an amount equal to the Annuity Values of such Accounts after
the earliest of the following occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such Participant and (b) the Participant's attainment of age 59
years and 6 months, or (ii) the completion of twelve Participation Years
with respect to such Participant, or (iii) the Participant's attainment of
age 55, the completion of five Participation Years with respect to such
Participant and the receipt by Equitable of a properly completed settlement
election form in order to apply the Annuity Values to purchase an Eligible
Annuity Certain, defined in Section 1.14B, or (iv) the completion of three
Participation Years with respect to such Participant and the receipt by
Equitable of a properly completed settlement election form in order to
apply the Annuity Values to purchase a Period Certain Annuity, defined in
Section 1.14C, where the certain period of such Annuity is at least ten
years. At all other times, the sum of the Cash Values of such Accounts
equals the sum of the Annuity Values of such Accounts, less a withdrawal
charge.
3. With respect to SECTON 2.07A PARTIAL WITHDRAWAL CHARGES, the following
paragraph replaces the paragraph under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, Equitable will withdraw from the Stock Account, Balanced
Account, Aggressive Stock Account, Money Market Account and Guaranteed
Interest Account an amount equal to the lesser of (a) the full amount of
partial withdrawal requested or (b) the sum of the Annuity Values of such
Accounts provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The later of (a) the completion
of five Participation Years with respect to such Participant and (b) such
Participant's attainment of age 59 years and 6 months, or (ii) the
completion of twelve Participation Years with respect to such Participant,
or (iii) the Participant's attainment of age 55, the completion of five
Participation years with respect to such Participant and the receipt by
Equitable of a properly completed settlement election form in order to
apply the Annuity Values to purchase an Eligible Annuity Certain, defined
in Section 1.14B, or (iv) the completion of three Participation Years with
respect to such Participant and the receipt by Equitable of a properly
completed settlement election form in order to apply the Annuity Values to
purchase a Period Certain Annuity, defined in Section 1.14C, where the
certain period of such Annuity is at least ten years. At all other times,
the sum of the Cash Values of such Accounts equals the sum of the Annuity
Values of such Accounts, less a withdrawal charge.
SPECIMEN VICE PRESIDENT SPECIMEN PRESIDENT
AND SECRETARY
PF 17035H
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
1285 AVENUE OF THE AMERCAS, NEW YORK, NEW YORK 10019
[EQUITABLE LOGO]
EQUI-PENSION-GV CONTRACT
GROUP ANNUITY CONTRACT NO. 11932 CP
CONTRACT HOLDER: UNITED STATES TRUST COMPANY OF NEW YORK
CONTRACT CHANGE DATE: DECEMBER 31, 1984
The Initial Guaranteed Interest Rate is 10% and is effective until December 31,
1980. The Guaranteed Interest Rate after December 31, 1980 for a Class of
Participants will be established before the beginning of each calendar year, but
will not be less than the Minimum Guaranteed Interest Rate for such year and
Class of Participants.
This contract ("the Contract") is issued in consideration of the payment to
Equitable of the contributions made under the Contract.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
The provisions on the following pages are part of the Contract.
FOR THE CONTRACT HOLDER: FOR THE EQUITABLE:
By /s/ Alfred H. Antigrolo By /s/ Coy Eklund
--------------------------- ---------------------------------
President
Title Vice President By /s/ Rodney L. Enochs
------------------------ ---------------------------------
Vice President and Secretary
Dated 3/7/80 Date of Issue MAR 7, 1980
------------------------ ----------------------
At New York, New York
---------------------------
(Head Office) PARTICIPATING
NO. 11932 CP
<PAGE>
This page 2 reserved for information
in connection with the issuance
of certificates under this Contract.
PAGE 2
<PAGE>
This Page 3 reserved for information
in connection with the issuance
of certificates under this Contract.
PAGE 3
<PAGE>
PART I - DEFINITIONS
SECTION 1.01 EMPLOYER
The term "Employer" means (i) a State, political subdivision of a State, or an
agency or instrumentality of a State or political subdivision of a State which
has adopted a Plan, or (ii) a rural electric cooperative, as defined in Section
457(d)(9)(B) of the Code, which has adopted a Plan.
SECTION 1.02 PLAN
The term "Plan" means a program constituting an "Eligible State Deferred
Compensation Plan" meeting the requirements of Section 457(b) of the Code which
is established and maintained by an Employer for the benefit of persons
performing services for the Employer and their beneficiaries.
SECTION 1.03 ANNUITY
The term "Annuity" means an annuity purchased in accordance with the terms of
the Plan.
SECTION 1.04 ANNUITY BENEFIT
The term "Annuity Benefit" means a benefit payable by Equitable pursuant to
Section 3.03 of the Contract.
SECTION 1.05 PARTICIPANT
The term "Participant" means a person who has been enrolled by Equitable under
the Contract and for whom the Employer has purchased an Annuity under the
Contract. A person shall become enrolled under the Contract upon receipt by
Equitable of an enrollment form made available by Equitable and completed in a
manner satisfactory to Equitable. An Annuity is purchased for a person enrolled
under the Contract upon receipt by Equitable of an initial Contribution by the
Employer.
SECTION 1.06 CONTRIBUTION
The term "Contribution" means a payment made to Equitable for a Participant with
respect to an Annuity purchased for such Participant under the Contract.
Equitable is under no obligation to accept any Contribution less than $20.00.
SECTION 1.07 PARTICIPATION DATE
The term "Participation Date" with respect to a Participant means the date as of
which Equitable has enrolled such Participant under the terms of the Contract.
SECTION 1.08 PARTICIPATION YEAR
The term "Participation Year" with respect to a Participant means the twelve
month period beginning on (i) the Participation Date, and (ii) each anniversary
thereof, unless otherwise agreed to in writing by Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS
Except as provided in Section 1.10, the term "Class of Participants" refers to
all Participants whose Participation Date is in the same calendar year.
SECTION 1.10 GUARANTEED INTEREST RATE
For each Guaranteed Interest Account, the term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in such
Account. Interest accrues daily. The Guaranteed Interest Rate will never be less
than 3% per annum.
Equitable will from time to time establish and make available for new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new Class of Participants will be established effective with the
effective date of the occurrence of (i), (ii) or (iii) above or any combination
thereof.
For the calendar year next succeeding the end of the period for which an
established Initial Guaranteed Interest Rate is effective and for each
subsequent calendar year thereafter , Equitable will determine for each
established Class of Participants before the beginning of such calendar year a
Yearly Guaranteed Interest Rate for such Class, which Yearly Guaranteed Interest
Rate will not be lower than the effective Minimum Guaranteed Interest Rate
applicable for such Class for such year. For any established Class of
Participants, Equitable reserves the right to change the Minimum Guaranteed
Interest Rate and the applicable period therefor, provided that any such Minimum
Guaranteed Interest Rate will not be lower than the Minimum Guaranteed Interest
Rate that would have been in effect in the absence of such change. Equitable
will notify each Participant in a Class in writing of the Yearly Guaranteed
Interest Rate or of any change in he Minimum Guaranteed Interest Rate at least
15 days prior to its effective date.
SECTION 1.11 RETIREMENT DATE
The term "Retirement Date" means the date on which the Participant is to attain
the retirement age specified in the Participant's enrollment form. Before the
Retirement Date the Participant may elect to change the Retirement Date to
another Retirement Date, which may be any date after the filing of the election
Page 4
<PAGE>
DEFINITIONS (continued)
(other than the 29th, 30th, or 31st day of any month). No Retirement Date shall
be earlier than the Retirement Date provided under the Plan. Any election for
such change must have the consent of the Employer and must be made in writing by
the Participant. Such election shall not take effect until received by Equitable
at its Home Office.
SECTION 1.12 NORMAL FORM
The "Normal Form" of an Annuity Benefit under the Contract means, (i) if the
Participant has a living spouse at the Retirement Date, the Fixed Annuity
Benefit payable on the Joint and Survivor Life Annuity Form with such spouse as
the contingent annuitant (100% continuation), and (ii) if the Participant does
not have a living spouse at the Retirement Date, the Fixed Annuity Benefit
payable on the Life Annuity Form.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM
The term "Joint and Survivor Life Annuity Form" means an annuity providing
monthly payments while either of two persons upon whose lives such payments
depends is living. The monthly amount to be continued when only one of the
persons is living will be equal to a percentage of the monthly amount that was
paid while both were living. This percentage may be 50% or any higher percentage
up to and including 100%, as elected by the Participant. The payments commence
on the date as of which the Joint and Survivor Life Annuity Form is purchased
and terminate with the last payment due before the death of the survivor.
SECTION 1.14 LIFE ANNUITY FORM
The term "Life Annuity Form" means an annuity providing fixed monthly payments
during the lifetime of the person upon whose life such payments depend. The
payments commence on the date as of which the Life Annuity Form is purchased and
terminate with the last payment due before the death of such person.
SECTION 1.15 ANNUITY VALUE
The term "Annuity Value" with respect to a Participant's Guaranteed Interest
Account means the amount in such Account pursuant to Section 2.02.
SECTION 1.16 CASH VALUE With respect to a Participant for whom no cash value(s)
of existing contract(s) issued by Equitable is(are) transferred to the Contract
pursuant to Section 2.01, the term "Cash Value" with respect to such
Participant's Guaranteed Interest Account means an amount equal to the Annuity
Value after either (i) the later of (a) the completion of five Participation
Years with respect to such Participant and (b) the Participant's attainment of
age 59 years and six months, or (ii) the Participant's attainment of age 70
years and six months. Prior to such time, the Cash Value of such Participant's
Guaranteed Interest Account will equal the greater of (a) 94% of the Annuity
Value of such Account and (b) the Annuity Value of such Account minus an amount
equal to the excess, if any, of (i) 9% of the total Contributions made on behalf
of such Participant during the current Participation Year and the preceding nine
completed Participation Years over (ii) the cumulative total of any withdrawal
charges made pursuant to Section 2.05.
With respect to a Participant for whom cash value(s) of existing contract(s)
issued by Equitable is(are) transferred to the Contract pursuant to Section
2.01, the term "Cash Value" with respect to such Participant's Guaranteed
Interest Account means an amount equal to the Annuity Value after such
Participant attains age 59 years and six months. Prior to such time, the Cash
Value of such Participant's Guaranteed Interest Account will equal the Annuity
Value of such Account minus an amount equal to the lesser of (a) and (b) where:
(a) is the sum of: (1) 2% of the excess, if any, of (i) the first $10,000 of
Separate Account Transfers over (ii) the cumulative total of any previous
withdrawals made pursuant to subsection (a) of the third paragraph of
Section 2.05 and (2) 6% of the excess, if any, of (i) the Annuity Value
over (ii) the total amount of Separate Account Transfers minus the
cumulative total of any withdrawals made pursuant to Section 2.05 (but such
amount shall not be less than zero).
(b) is the excess, if any, of: (1) the sum of (i) 2% of the first $10,000 of
Separate Account Transfers made during the current Participation Year and
the preceding nine Participation Years and (ii) 9% of all other
Contributions (excluding Separate Account Transfers) made on behalf of the
Participant during the current Participation Year and the preceding nine
completion Participation Years over (2) the cumulative total of any
withdrawal charges made pursuant to Section 2.05.
Page 5
<PAGE>
DEFINITIONS (continued)
SECTION 1.17 CODE
The term "Code" means the Internal Revenue Code of 1954, as now or hereafter
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.18 SEPARATE ACCOUNT TRANSFERS
The term "Separate Account Transfers" with respect to a Participant means the
amount of cash value(s) transferred to the Contract from separate investment
account(s) maintained by Equitable, pursuant to Section 2.01.
PART II - PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS
The Employer is to make Contributions from time to time on such dates and in
such amounts as determined by the Employer pursuant to the terms of the Plan or,
if the Employer has no Plan, as determined by the Employer at its sole
discretion. The Employer is to specify the Participant with respect to whom each
such Contribution is being made.
Each Contribution received by Equitable with respect to a Participant will,
before its allocation under the Contract, be reduced by the amount of any
applicable taxes, as determined by Equitable, and by the amount of any
applicable deduction in accordance with Section 2.08.
A Participant may, with Equitable's agreement, transfer to the Contract any
amount held with respect to such Participant under a Plan of the Employer or
under an "Eligible State Deferred Compensation Plan" meeting the requirements of
Section 457(b) of the code established and maintained by any other employer
("Transferred Funds"). Any Transferred Funds from a contract not issued by
Equitable will, before allocation under the Contract, be reduced by the amount
of any applicable taxes, as determined by Equitable.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
SECTION 2.02 GUARANTEED INTEREST ACCOUNT
Equitable maintains a Guaranteed Interest Account under the Contract for each
Participant with respect to whom Contributions are made. Any amount allocated to
the Guaranteed Interest Account becomes part of the general assets of Equitable,
which supports the guarantees of the Contract and other contracts.
The amount in a Guaranteed Interest Account at any time is equal to the sum of
all amounts that have been allocated to such Guaranteed Interest Account
pursuant to Section 2.01 and Section 2.03 plus the amount of any interest
accrued but not allocated, less the sum of all amounts that have been withdrawn
pursuant to Section 2.05 and Section 2.06 from such Account and less the sum of
any annual administrative charges accrued but not made. Equitable guarantees
that the amount in a Guaranteed Interest Account at any time before the
Retirement Date will not be less than the sum of all amounts allocated to such
Account pursuant to Section 2.01 and less the sum of all amounts that have been
withdrawn from such Account pursuant to Section 2.05, all accumulated at 3%
interest, compounded annually. In any Participation Year in which no
Contribution is allocated to the Guaranteed Interest Account, the amount in such
Account at the end of the Participation Year shall not be less than the amount
in such Account at the beginning of the Participation Year less the sum of all
amounts withdrawn from such Account pursuant to Section 2.05, all accumulated at
3% interest, compounded annually.
A Guaranteed Interest Account for a Participant terminates on the earliest of
(i) the Retirement Date, (ii) the death of the Participant, and (iii)
termination of participation pursuant to Section 2.04.
Section 2.03 ALLOCATION TO ACCOUNT
Each Contribution made with respect to a Participant pursuant to Section 2.01,
after deduction for any applicable taxes, will be allocated, as of the date by
which Equitable has received such Contribution, to the Guaranteed Interest
Account.
Page 6
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
Interest is allocated to the Guaranteed Interest Account at the end of each
Participation Year, at the time of withdrawal pursuant to Sections 2.05 and
2.07, at the time of application of amounts in the Guaranteed Interest Account
to provide Annuity Benefits, and upon termination of participation pursuant to
Section 2.04.
SECTION 2.04 TERMINATION OF PARTICIPATION
Subject to any applicable restrictions under the terms of the Plan, on or before
a Participant's Retirement Date, such Participant may elect by written notice to
terminate participation under the Contract. Upon receipt of such notice,
Equitable will determine the Cash Value, as of the date Equitable received such
notice, of the Guaranteed Interest Account maintained for such Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Guaranteed Interest Account, pay
such Annuity Value and terminates such Participant's participation under the
Contract. This right may be exercised with respect to the Participant only if
both (i) no Contributions have been made under the Contract during the last
three completed Participation Years, and (ii) such Annuity Value is $500 or
less. Equitable reserves the right to terminate a Participant's participation
under the Contract if at least 120 days have elapsed since the issued date sown
on the certificate issued to such Participant under the Contract and no
Contributions have been made under the Contract with respect to such
Participant.
Upon payment of such Cash Value or Annuity Value, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Value or Annuity Value arose.
SECTION 2.05 PARTIAL WITHDRAWALS
Subject to any applicable restrictions under the terms of the Plan, a
Participant may elect by written notice to Equitable to make a partial
withdrawal from the Guaranteed Interest Account maintained for such Participant
before such Participant's Retirement Date.
With respect to partial withdrawals requested by a Participant for whom no cash
value(s) of existing contract(s) issued by Equitable is (are) transferred to the
Contract, Equitable will withdraw from such Account an amount equal to the
lesser of (a) the full amount of partial withdrawal requested or (b) the Annuity
Value of such Account, provided the request for partial withdrawal is made after
either (i) the later of (a) the completion of five Participation Years with
respect to such Participant and (b) such Participant's attainment of age 59
years and six months, or (ii) such Participant's attainment of age 70 years and
six months. If a partial withdrawal with respect to such Participant is made
prior to such time, Equitable will withdraw from such Account an amount equal to
the amount of partial withdrawal requested plus a withdrawal charge. Such
withdrawal charge will equal the lesser of (a) 6% of the total amount to be
withdrawn from the Account pursuant to this Section (including such charge) and
(b) the excess, if any, of (i) 9% of the total Contributions made on behalf of
such Participant during the current Participation Year and the preceding nine
completed Participation Years over (ii) the cumulative total of any prior
withdrawal charges made pursuant to this Section.
With respect to partial withdrawals requested by a Participant for whom cash
value(s) of existing contract(s) issued by Equitable is (are) transferred to the
Contract pursuant to Section 2.01. Equitable will withdraw from such Account an
amount equal to the lesser of (a) the full amount of partial withdrawal
requested or (b) the Annuity Value of such Account, provided the request for
partial withdrawal is made after such Participant's attainment of age 50 years
and six months. If a partial withdrawal with respect to such Participant is made
prior to such time, Equitable will withdraw from such Account an amount equal to
the amount of partial withdrawal requested plus a withdrawal charge. Such
withdrawal charge will be an amount equal to the sum of the charges described in
subsections (a) and (b) below; provided, however, that in no event will such
withdrawal charge exceed an amount described in subsection (c) below:
(a) With respect to the amount of any withdrawal made up to the excess, if
any, of (1) the cumulative total of all Separate Account Transfers made on
the Participant's behalf over (2) the cumulative total of prior
withdrawals made to which the withdrawal charge described in this
subsection was applied, an amount equal to the lesser of (i) 2% of the
total amount to be
Page 7
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
withdrawn pursuant to this subsection (including such charge) and (ii)
$200 minus the cumulative total of any prior withdrawal charges made
pursuant to this subsection.
(b) With respect to any withdrawal made to which the withdrawal charge
described in subsection (a) does not apply, 6% of such amount to be
withdrawn (including such charge).
(c) is the excess, if any, of (1) the sum of (i) 2% of the first $10,000 of
Separate Account Transfers made during the current Participation Year and
the preceding nine Participation Years and (ii) 9% of all other
Contributions (excluding Separate Account Transfers) made on behalf of the
Participant during the current Participation Year and the preceding nine
completed Participation Years over (2) the cumulative total of any prior
withdrawal charges made pursuant to this Section.
Upon withdrawal pursuant to either of the preceding two paragraphs, Equitable
will pay the lesser of the Cash Value of such Account or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by such Participant.
Upon any payment to a Participant pursuant to this Section, Equitable will be
released from any and all liability for payments with respect to the
Contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to this Section may be deferred by
Equitable in accordance with the provisions of Section 4.08.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300. If a withdrawal from the Account made pursuant to this
Section would result in an Annuity Value of less than $200, Equitable will
withdraw the Annuity Value of the Account, pay the Cash Value of the Account to
the Participant, and will terminate such Participant's participation under the
Contract.
SECTION 2.06 ANNUAL ADMINISTRATIVE CHARGE
As of the last day of each Participation Year before a Participant's Retirement
Date, Equitable will withdraw from the Guaranteed Interest Account maintained
under the Contract, as to the Contributions remitted with respect to such
Participant, an annual administrative charge equal to the lesser of $30 and 2%
of the sum of (i) the Annuity Value of the Guaranteed Interest Account at the
end of that Participation Year and (ii) any withdrawals made from such Account
pursuant to Section 2.05 during that Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Value of such Participant's Account pursuant to Section 3.02, or upon
termination of such Account pursuant to Section 2.04 or Section 2.07 during a
Participation Year, Equitable will withdraw the administrative charge described
in this Section for the applicable part of that Participation Year.
SECTION 2.07 DEATH BENEFIT
If the Employer reports to Equitable, or if Equitable otherwise ascertains, that
a Participant has died while an Account for such Participant is maintained under
the Contract and before such Participant's Retirement Date, Equitable, upon
receipt of due proof of such death, will pay in a single sum to the beneficiary
designated by such Participant to receive such payment the amount of death
benefit payable with respect to such Participant. The amount of the death
benefit with respect to a Participant at any time prior to the Retirement Date
is equal to the greater of (i) the Annuity Value of the Guaranteed Interest
Account maintained under the Contract for such Participant and (ii) the minimum
death benefit with respect to such Participant. Such minimum death benefit is
the sum of all Contributions made with respect to such Participant pursuant to
Section 2.01 (before reduction pursuant to said Section) less an adjustment for
any withdrawals made pursuant to Section 2.05 from the Account maintained under
the Contract for such Participant. Any such withdrawal will reduce the minimum
death benefit (as adjusted by any previous such withdrawal) by an amount which
is in the same proportion as the amount being withdrawn is to the Annuity Value
then in the Guaranteed Interest Account maintained under the Contract for such
Participant. If, in accordance with the provisions of Section 2.01, the cash
value of an Annuity contract issued by Equitable, which provides for a death
benefit before retirement equal to the greater of the contract cash value or an
alternative amount based on premiums paid or contributions made under the
Annuity contract, is transferred to the Contract, such alternative amount as of
the date of transfer will be included in the "sum of all Contributions" in lieu
of the amount of cash value transferred, for purposes of the death benefit under
the Contract.
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<PAGE>
PARTICIPANT'S ACCOUNT (continued)
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefor, be withdrawn from the Guaranteed
Interest Account maintained with respect to such Participant under the Contract.
Upon such payment, Equitable will be released from any and all liability for
payments with respect to the Contributions from which the Annuity Value arose.
SECTION 2.08 CHANGE OF DEDUCTIONS FOR NEW PARTICIPANTS
Equitable reserves the right to make deductions to the extent permitted by
applicable law from Contributions made on behalf of new Participants at any time
on or after the Contract Change Date, by at least 90 days advance written notice
to the Contract Holder and by amendment to the Contract. Equitable will
thereupon established a new Contract Change Date which shall be at least 5 years
later.
Equitable may lower the amount of the administrative charge described in Section
2.06 for new Participants at any time, by at least 15 days advance written
notice to the Contract Holder.
SECTION 2.09 CHANGE OF DEDUCTIONS AND CHARGES FOR EXISTING PARTICIPANTS
Equitable may lower the amount of the administrative charge described in Section
2.06 for existing Participants at any time, by at least 15 days advance written
notice to the Contract Holder and to such Participants.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT
The term "Fixed Annuity Benefit" means an Annuity Benefit under which the
monthly payments with respect to a payee are payable in a specified dollar
amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS
As of a Participant's Retirement Date, provided such Participant is then living,
the Annuity Value of such Participant's Guaranteed Interest Account shall be
applied to provide the Normal Form of Annuity Benefit, unless, subject to any
applicable limitations under the Plan, such Participant elects (i) to receive
the Cash Value of such Account in a single sum or (ii) to apply such Annuity
Value or Cash Value, whichever is applicable pursuant to the first paragraph of
Section 3.03, to provide an Annuity Benefit on any other annuity form offered by
Equitable, as elected by the Participant, subject to Equitable's rules then in
effect and any applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.04 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Value of such Participant's Guaranteed
Interest Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.03 and
3.04. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form.
SECTION 3.03 AMOUNT OF ANNUITY BENEFITS
If a Participant elects pursuant to the first paragraph or third paragraph of
Section 3.02 to receive an Annuity Benefit in lieu of the Cash Value of the
Guaranteed Interest Account, the amount applied to provide the Annuity Benefit
will be (i) the Annuity Value of such Account if the payments under the annuity
form elected are contingent upon the survival of a person, or (ii) the Cash
Value of such Account if the payments under the annuity form elected are not
contingent upon the survival of a person.
The amount applied to provide an Annuity Benefit shall be reduced by the amount,
as determined by
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<PAGE>
ANNUITY BENEFITS (continued)
Equitable, of any applicable tax on annuity considerations. If such amount is
applied on or after the completion of five Participation Years with respect to
such Participant, or if such amount is applied on behalf of a Participant for
whom cash value(s) of existing contract(s) issued by Equitable was (were)
transferred to the Contract pursuant to Section 2.01, the balance shall purchase
the Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown below or (ii) Equitable's current individual annuity rates for
payment of proceeds, whichever rates would provide a larger benefit with respect
to the payee. If such current individual annuity rates are used, such
Participant's certificate will be replaced by an Equitable supplementary
contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a Participant for whom no
cash value(s) of existing contract(s) issued by Equitable was (were) transferred
to the Contract, the balance, after any applicable tax on annuity
considerations, shall purchase the Annuity Benefit on the basis of either (i)
the Table of Guaranteed Annuity Payments shown below or (ii) Equitable's current
individual annuity rates applicable to funds which derive from sources outside
Equitable, whichever rates would provide a larger benefit with respect to the
payee. If such current individual annuity rates are used, such Participant's
certificate will be replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Guaranteed Interest Account
maintained for such Participant shall terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form, are based on 3 1/4% interest and the 1971 ELAS Mortality Table.
Equitable may change the monthly income amounts contained in the Tables of
Guaranteed Annuity Payments and the bases for determining such amounts, for new
Participants, by at least 90 days advance notice to the Contract Holder and by
an amendment to the Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/4% interest and the 1971 ELAS Mortality Table.
SECTION 3.04 PAYMENT OF ANNUITY BENEFITS
Evidence of each payee's survival must be furnished to Equitable either by
personal endorsement of the check drawn for payment or by other means
satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Upon election by a Participant pursuant to Section 3.02 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or per-
Page 10
<PAGE>
ANNUITY BENEFITS (continued)
sons to receive any payments that may become due after the death of the person
or persons upon whose life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.02.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM -
100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Male Female Age
Age 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.58 4.64 4.70 4.76 4.82 4.88 4.94 5.00 5.05 5.11
61 4.55 4.62 4.68 4.74 4.81 4.87 4.93 5.00 5.06 5.12 5.18
62 4.58 4.65 4.72 4.78 4.85 4.92 4.99 5.05 5.12 5.19 5.25
63 4.61 4.68 4.75 4.82 4.89 4.97 5.04 5.11 5.18 5.25 5.32
64 4.64 4.71 4.79 4.86 4.94 5.01 5.09 5.17 5.24 5.32 5.40
65 4.67 4.74 4.82 4.90 4.98 5.06 5.14 5.22 5.30 5.36 5.47
66 4.69 4.77 4.85 4.93 5.02 5.10 5.18 5.27 5.35 5.44 5.53
67 4.72 4.80 4.88 4.97 5.05 5.14 5.23 5.31 5.40 5.50 5.59
68 4.74 4.82 4.91 5.00 5.09 5.18 5.27 5.36 5.45 5.55 5.65
69 4.76 4.85 4.94 5.03 5.12 5.22 5.31 5.41 5.50 5.60 5.71
70 4.78 4.87 4.96 5.06 5.16 5.26 5.36 5.45 5.56 5.65 5.76
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
FIXED ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
Age Males Females
--- ----- -------
60 5.88 4.99
61 6.04 5.11
62 6.21 5.24
63 6.38 5.38
64 6.57 5.53
65 6.77 5.68
66 6.98 5.84
67 7.19 6.01
68 7.42 6.20
69 7.67 6.39
70 7.93 6.61
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT
The Contract constitutes the entire Contract between the parties and the
provisions of the Contract alone will govern with respect to the rights and
obligations of Equitable. The provisions of the Contract will be applied
separately with respect to each Participant. Nothing in the enrollment form
referred to in Section 1.05, the Plan or trust agreement referred to in Section
4.10, nor any modification, amendment, or supplement to any such documents will
in any way be construed to enlarge, change, vary or in any other way affect the
obligations of Equitable as expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be
PAGE 11
<PAGE>
GENERAL PROVISIONS (continued)
waived, except in writing and by an authorized officer of Equitable. The
Contract may be changed by amendment or replacement upon agreement between the
Contract Holder and Equitable without the consent of any other person provided
that such change does not reduce any Annuity Benefit provided before such change
and provided that no rights, privileges or benefits which have accrued to any
Participant under the Contract may be reduced or forfeited except by the express
consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE
Equitable reserves the right to amend the Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
shall include, but not be limited to, the right to conform the Contract and any
certificate to reflect changes in the Code, or in regulations or published
rulings of the Internal Revenue Service, so that each such certificate will
continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY
The entire interest of any Participant under the Contract is nonforfeitable.
No interest of a Participant under the Contract may be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation for any other purpose to any person other than
Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law, no such amount will in any way
be subject to any claim against such payee.
SECTION 4.04 PARTICIPATION IN SURPLUS
The Contract and all other contracts in the same class of contracts shall be
combined for the purpose of ascertaining the annual surplus of Equitable to be
apportioned to said contracts as a dividend, and the portion of any such
dividend that is to be allocated to the Contract shall be determined by
Equitable. The participation of this class of contracts in annual surplus is,
however, expected to be minimal. Any amount so allocated to the Contract shall
be payable as of January 1 of the calendar year in which a dividend is
apportioned and will be payable in cash and shall be equitably allocated by
Equitable to the Guaranteed Interest Accounts maintained hereunder for
Participants.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.05 BENEFICIARY
Each Participant, as of such Participant's Participation Date is to provide
Equitable with an initial designation of the beneficiary entitled to receive any
death benefit payable with respect to such Participant pursuant to Section 2.07.
The Participant may change such designation from time to time during such
Participant's lifetime and while Accounts for such Participants are being
maintained hereunder. Any such designation or change will be made by written
notice in a form satisfactory to Equitable. A change will, upon receipt at a
designated Equitable Office, take effect as of the time the written notice was
signed, whether or not the Participant is living on the date of receipt, but
without further liability as to any payment or other settlement made by
Equitable before receipt of such change.
Unless otherwise specified in the designation, if a Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant, and if more than one survive they
will share equally.
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.07 for which there is no designated beneficiary living at the death of
the Participant will be payable in a single sum to the children of the
Participant who survive the Participant, in equal shares, or should none
survive, then to the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.06 DISQUALIFICATION
In the event that an annuity purchased hereunder
PAGE 12
<PAGE>
GENERAL PROVISIONS (continued)
with respect to a Participant fails to qualify as an Annuity as described in
Section 1.03, Equitable shall have the right, upon receiving notice of such fact
before the Retirement Date, to terminate participation with respect to such
Participant under the Contract and pay to such Participant the amount in the
Account maintained with respect to such Participant less a deduction for the
appropriate part attributable to such Participant of any Federal income tax
payable by Equitable which would not have been payable if such Participant had
an Annuity under the Contract.
SECTION 4.07 FUTURE PARTICIPANTS
Equitable reserves the right at its sole discretion to curtail or prohibit
further enrollment as Participants under the Contract of any individuals who are
not currently participating under the Contract as of such date of curtailment or
prohibition.
SECTION 4.08 DEFERMENT
Payments by Equitable from the Participant's Guaranteed Interest Account
pursuant to the provisions of Section 2.04, Section 2.05 and Section 2.07, or
any commuted payments arising from a Fixed Annuity Benefit pursuant to Section
3.04, may be deferred for up to six months after receipt of a written request
for such surrender or withdrawal, or receipt of due proof of death of the
Participant, respectively, or receipt of due documentation for such commutation
payment pursuant to Section 3.04. Interest at the current Guaranteed Interest
Rate for such Participant's Guaranteed Interest Account will be allowed on any
such payment deferred for 30 days or more.
SECTION 4.09 ANNUAL NOTICE
At the end of each Participation Year up to and including the Retirement Date,
Equitable will furnish the Participant with a notice showing as of a specified
recent date (1) the Annuity Value of the Guaranteed Interest Account, (2) the
Cash Value of the Guaranteed Interest Account, and (3) the amount of death
benefit payable with respect to the Participant.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY
The sole responsibility of the Contract Holder is to serve as party to the
Contract. The Contract Holder will have no responsibility for the administration
of any Plan, for payments to the Guaranteed Interest Account, or any payments or
other distributions hereunder. Equitable will deal with the Contract Holder in
accordance with the terms and conditions of the trust agreement pursuant to
which the Contract Holder agreed to act as such and the Contract and in such
manner as the Contract Holder and Equitable may agree, without the consent of
any other person. Any Employer making Contributions under the Contract shall be
deemed to have adopted and accepted the trust agreement as part of the Plan with
respect to which such Contributions are made.
SECTION 4.11 AGE AND SEX
If the Annuitant's age or sex has been misstated, any benefits will be those
which would have been purchased at the correct age and sex. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
SECTION 4.12 RIGHT OF EMPLOYER
Notwithstanding any other provision of the Contract, except with respect to
amounts attributable to Contributions made by a Participant, if any, as
permitted under the terms of the Plan, the value of the Guaranteed Interest
Account maintained for each Participant shall, until distributed to the
Participant or his beneficiaries in accordance with the terms of the Plan and
the Contract, remain solely the property and rights of the Employer (without
being restricted to the provision of benefits under the Plan) subject only to
claims of the Employer's general creditors. This Section shall be construed and
administered in accordance with Section 457(b)(6) of the Code and the
regulations thereunder.
PAGE 13
<PAGE>
Attached to and made part of Group Annuity Contract No. 11932CP
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective August 15, 1981, said contract is amended as
follows:
1. Contributions made to the contract, less applicable premium taxes, as
determined by Equitable, may be allocated to the Guaranteed Interest
Account or Stock Account maintained for the Participant, or in part to
both, as directed by the Participant.
2. At the Retirement Date, if the Participant is then living, the amount in
the Guaranteed Interest Account and Stock Account will be applied to
provide the Participant with an Annuity Benefit or Cash Value Benefit.
3. ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN A SEPARATE
ACCOUNT MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS
DESCRIBED IN THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED
ANNUITY BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY
VARIABLE ANNUITY BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE
INVESTMENT EXPERIENCE OF THE SEPARATE ACCOUNT. SUCH VARIABLE ANNUITY
BENEFIT WILL INCREASE IF THE AVERAGE DAILY RATE OF INVESTMENT RETURN IN THE
SEPARATE ACCOUNT IS EQUIVALENT TO MORE THAN 6.75% OR 5.25% ANNUALLY AND
WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR 5.25% ANNUALLY,
DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET INVESTMENT
RETURN REFERRED TO IN SECTION 1.20 IS 5% OR 3 1/2%, RESPECTIVELY. THE DAILY
RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE
AND MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY
DEDUCTIONS TO PROVIDE FOR TAXES.
THIS CONTRACT MAY NOT BE SUITABLE FOR A PARTICIPANT IF THE ONLY
CONTRIBUTION TO BE MADE ON SUCH PARTICIPANT'S BEHALF IS A SUBSTANTIAL
SINGLE SUM CONTRIBUTION.
PF 14104CP Page 1
<PAGE>
4. The following provisions are added to your Certificate:
To Part I of your Certificate
SECTION 1.05A EXISTING PARTICIPANT
The term "Existing Participant" means a Participant for whom Cash Values of
existing annuity contract(s) issued by Equitable is (are) eligible to be
transferred to the Contract pursuant to Section 2.01.
SECTION 1.05B NEW PARTICIPANT
The term "New Participant" means a Participant who is not an Existing
Participant.
SECTION 1.14B ELIGIBLE ANNUITY CERTAIN
The term "Eligible Annuity Certain" means an annuity not involving life
contingencies issued by Equitable which extends beyond the Participant's
attainment of age 59 years and six months and does not permit any
prepayment of the unpaid principal prior to the participant's attainment of
age 59 years and six months.
SECTION 1.19 THE SEPARATE ACCOUNT
The term "Separate Account" means Separate Account A, a separate investment
account maintained by Equitable to which portions of its assets have been
allocated for the Contract and certain other contracts. Equitable reserves
the right to withdraw from the Separate Account and allocate to another
separate account assets determined by Equitable to be associated with the
class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations,
the withdrawal shall be made by withdrawing the same percentage of each
investment in the Separate Account, with appropriate adjustments to avoid
odd lots and fractions. On and after the date of any such withdrawal the
term "Separate Account" in the Contract shall mean such other separate
account to which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Account will, at most
times, consist primarily of common stock and other equity-type investments.
Equitable may, however, at its discretion invest the assets of the Separate
Account in any investment permitted by applicable law. Equitable may rely
conclusively on the opinion of counsel (including attorneys in its employ)
as to what investments it is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right
to operate the Separate Account as a unit investment trust, or in any other
form permitted by law, investing all or part of its assets in shares or
units of a fund, the investment adviser of which may be Equitable or
controlled by Equitable. The fund assets would be invested as provided
above with respect to the Separate Account.
Equitable reserves the right: (i) to cause the registration or
deregistration of the Separate Account under the Investment Company Act of
1940, provided that such registration or deregistration is in conformity
with the requirements of applicable law; (ii) run the Separate Account
under the direction of a committee, and to discharge such committee at any
time; and (iii) restrict or eliminate any voting rights of participants or
other persons who have voting rights as to the Separate Account.
Assets of the Separate Account attributable to the Contract shall be
subject to a charge at the rate of 1.75% a year, consisting of .15% for
investment management, .35% for financial accounting, .35% for the annuity
rate guarantee and the minimum death benefit, and .90% for expenses and
expense risk. The charge shall be made in accordance with (c) of the Net
Investment Factor provisions in Section 1.20.
The assets of the Separate Account are the property of Equitable; however,
the portion of the assets of the Separate Account equal to the reserves and
other contract liabilities with respect to such Account shall not be
chargeable with liabilities arising out of any other business Equitable may
conduct. Equitable reserves the right to transfer assets of the Separate
Account in excess of such reserves and contract liabilities to the general
account of Equitable.
SECTION 1.20 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A
PF 14104CP Page 2
<PAGE>
business day is any day on which there is a sufficient degree of trading in
the portfolio securities of the Separate Account that the Accumulation Unit
Value or Annuity Unit Value might be materially affected by changes in the
value of the portfolio securities in the Separate Account, as determined by
Equitable.
NET INVESTMENT FACTOR: For the Separate Account the Net Investment Factor
for a Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment
income and the capital gains, realized or unrealized, credited to the
assets of the Separate Account in the Valuation Period for which the
Net Investment Factor is being determined, minus (3) the capital
losses, realized or unrealized, charged against such assets in such
Valuation Period, minus (4) any amount charged against the Separate
Account in such Valuation Period for taxes or for amounts set aside by
Equitable as a reserve for taxes attributable to the maintenance or
operation of the Separate Account;
(b) is the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial accounting, the annuity
rate guarantee and the minimum death benefit, and expenses and expense
risk.
The value of the assets in the Separate Account, referred to above, shall
be taken at their fair market value, or where there is no readily available
market, their fair value, as determined in accordance with accepted
accounting practices and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the
value of the interest of a Participant's Stock Account in the Separate
Account on or before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Value for
the Separate Account has been established at $10.00 as of November 1, 1968.
The New Accumulation Unit Value for each subsequent Valuation Period is the
New Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation
Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts
payable from the Separate Account under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Value has been established
at $1.00 on November 1, 1968. The New Annuity Unit Value for any subsequent
Valuation Period is the New Annuity Unit Value for the immediately
preceding Valuation Period multiplied by the Adjusted Net Investment Factor
for such subsequent Valuation Period. The Adjusted Net Investment Factor
for a Valuation Period is the Net Investment Factor for such period reduced
for each calendar day in such subsequent Valuation Period by the Net
Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of
Net Investment Return is 3 1/2%. The Assumed Base Rate of Net Investment
Return shall be 5%, except in states where the rate is not permitted by
law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average New Annuity Unit Value for a
calendar month is equal to the average of the New Annuity Unit Values for
the Valuation Periods ending in such month.
To Part II of your Certificate
SECTION 2.10 STOCK ACCOUNT
Equitable maintains a Stock Account under the Contract for each Participant
with respect to whom Contributions are made. Any amount allocated to a
Stock Account becomes part of the Separate Account. Any amount withdrawn
from a Stock Account will no longer be part of the Separate Account.
On any date when an amount is allocated to or withdrawn from a Stock
Account, the Stock Ac-
PF 14104CP Page 3
<PAGE>
count will be credited or charged, as the case may be, with a number of
Accumulation Units determined by dividing said amount by the New
Accumulation Unit Value for the Separate Account for the Valuation Period
which includes that date. The number of Accumulation Units in a Stock
Account on any date is equal to (i) the sum of any Accumulation Units that
have been credited to the Stock Account minus (ii) the sum of any
Accumulation Units that have been charged to the Stock Account. The amount
in a Stock Account on any date is equal to the product of (i) the number of
Accumulation Units in the Stock Account on that date and (ii) the
Accumulation Unit Value for the Separate Account for the Valuation Period
which includes that date.
SECTION 2.11 TRANSFERS BETWEEN ACCOUNTS
At any time before a Participant's Retirement Date, such Participant, upon
written request, may transfer all or a part of the amounts from the Stock
Account maintained for such Participant to the Guaranteed Interest Account
maintained for such Participant, or may transfer all or a part of the
amounts in the Guaranteed Interest Account maintained for such Participant
to the Stock Account maintained for such Participant. Such transfers will
be made as of the later of (i) the date specified in such request and (ii)
the date Equitable receives such request, and will be subject to
Equitable's rules in effect at the time of transfer.
To Part III of your Certificate
SECTION 3.05 VARIABLE ANNUITY BENEFIT
The term "Variable Annuity Benefit" means an Annuity Benefit under which
the dollar amount of the monthly payments with respect to a payee may
increase or decrease depending on the investment experience of the Separate
Account.
The amount of the first, second, and third payments under any Variable
Annuity Benefit provided under the Contract with respect to a payee is the
monthly amount provided with respect to the payee pursuant to Section 3.03.
The amount of the forth and each subsequent payment under a Variable
Annuity Benefit will be equal to the number of Annuity Units with respect
to such benefit, multiplied by the Average New Annuity Unit Value for the
second calendar month immediately preceding the date of the payment. The
fourth and subsequent annuity payments under a Variable Annuity Benefit
will not be increased or decreased in amount because of mortality or
expense experience. The number of Annuity Units with respect to a benefit
is the number determined by dividing the amount of the first monthly
payment under such benefit by the New Annuity Unit Value for the Valuation
Period which includes the due date of the first monthly payment.
5. The following sections of your Certificate are amended or modified as
follows:
A. Section 1.15, ANNUITY VALUE, is amended to provide that the "Annuity
Value" with respect to a Participant's Guaranteed Interest Account and
Stock Account shall mean the amounts in such Accounts described in
Section 2.02 and 2.10.
B. Section 1.16, CASH VALUE, shall read as follows:
SECTION 1.16 CASH VALUE -- NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to a New Participant, the term
"Cash Value" with respect to such Participant's Guaranteed Interest
Account and Stock Account means an amount equal to the Annuity Values
of such Accounts after the earliest of the following occurrences: (i)
The later of (a) the completion of five Participation Years with
respect to such Participant and (b) the Participant's attainment of
age 59 years and six months, or (ii) the Participant's attainment of
age 70 years and six months, or (iii) the completion of 25
Participation Years with respect to such Participant, or (iv) if the
Participant has attained age 55, completed five Participation Years,
and the Cash Values are to be applied to purchase an Eligible Annuity
Certain defined in Section 1.14B. At other times, the sum of the Cash
Values of such Accounts equals the sum of the Annuity Values of such
Accounts, less a withdrawal charge.
PF 14104CP Page 4
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WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five
Participation Years with respect to the Participant, the withdrawal
charge equals the lesser of (a) or (b) where:
(a) equals 6% of the sum of the Annuity Values of such Accounts.
(b) is an amount equal to the excess, if any, of (i) 8% of the
cumulative contributions made on behalf of such Participant over
(ii) the cumulative total of any withdrawal charges made pursuant
to Sections 2.05 and 2.05A.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five
Participation Years with respect to the Participant, the withdrawal
charge equals the lesser or (a) or (b) where:
(a) equals 6% of the excess of (i) the sum of the Annuity Values of
such Accounts over (ii) the Free Corridor Amount defined in
Section 2.05C.
(b) is the excess, if any, of (i) 8% of the total contributions made
on behalf of such Participant during the current Participation
Year and the preceding nine Participation Years over (ii) the
cumulative total of any withdrawal charges made pursuant to
Sections 2.05 and 2.05A.
The Cash Value of the Guaranteed Interest Account and the Cash Value
of the Stock Account will be in the same proportion as are the Annuity
Values of such Accounts.
SECTION 1.16B CASH VALUE -- EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to an Existing Participant, the
term "Cash Value" with respect to such Participant's Guaranteed
Interest Account and Stock Account means an amount equal to the
Annuity Values of such Accounts after the earliest of the following
occurrences: (i) The Participant's attainment of age 59 years and six
months, (ii) the completion of 20 Participation Years with respect to
such Participant, or (iii) if the Participant has attained age 55 and
the Cash Values are to be applied to purchase an Eligible Annuity
Certain defined in Section 1.14B. At other times, the sum of the Cash
Values of such Accounts equals the sum of the Annuity Values of such
Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five
Participation Years with respect to the Participant, the withdrawal
charge equals the sum of the charges described in subsections (a) and
(b) below; provided, however, that such charge does not exceed the
amount described in subsection (c) below where:
(a) is an amount equal to 2% of any Preferred Withdrawable Amounts
(defined in Section 2.05B) that have not previously been
withdrawn pursuant to Section 2.05 and 2.05B.
(b) is an amount equal to 6% of any Regular Withdrawable Amounts
(defined in Section 2.05B) that have not previously been
withdrawn pursuant to Section 2.05 and 2.05B.
(c) is an amount equal to the sum of (a) above, and 6% of the excess,
if any, of (i) the sum of the Annuity Values of such Accounts
over (ii) the cumulative total of Equitable Transferred Funds
made with respect to the Participant that have not previously
been withdrawn pursuant to Section 2.05 and 2.05B.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After five Participation Years
have been completed with respect to the Participant, Equitable (i)
will first withdraw, pursuant to Section 2.05B, the Free Corridor
Amount defined in Section 2.05C and (ii) next withdraw the remaining
portion of the sum of the Annuity Values of such Accounts. A
withdrawal charge will apply to the amount in (ii) above, and will
equal the sum of the
PF 14104CP Page 5
<PAGE>
charges described in subsection (a) and (b) of the preceding
subsection; provided, however, that such charge will not exceed an
amount equal to the lesser of the charges defined in (d) and (e)
below:
(d) is an amount equal to the sum of (a) in the preceding subsection,
and 6% of the excess, if any, of (i) the sum of the Annuity
Values of such Accounts (after withdrawal of the Free Corridor
Amount) over (ii) the cumulative total of Equitable Transferred
Funds made on behalf of the Participant that have not previously
been withdrawn pursuant to Section 2.05 and 2.05B.
(e) is an amount equal to the excess, if any, of (1) the sum of (i)
2% of the first $10,000 of Equitable Transferred Funds made
during the current Participation Year and the preceding nine
Participation Years and (ii) 8% of all other contributions
(excluding Equitable Transferred Funds) made on behalf of such
Participant during the current Participation Year over (2) the
cumulative total of any withdrawal charges made pursuant to
Sections 2.05 and 2.05B.
The Cash Value of the Guaranteed Interest Account and the Cash Value
of the Stock Account will be in the same proportion as are the Annuity
Values of such Accounts.
C. Section 1.18, SEPARATE ACCOUNT TRANSFERS, shall read as follows:
SECTION 1.18 EQUITABLE TRANSFERRED FUNDS The term "Equitable
Transferred Funds" with respect to a Participant means the amount of
cash value(s) transferred to the Contract from a contract issued by
Equitable, pursuant to Section 2.01.
D. The second paragraph of Section 2.02, GUARANTEED INTEREST ACCOUNT, is
amended as follows:
a. References to Section 2.05 are replaced by Sections 2.05, 2.05A
and 2.05B.
b. The amount in the Guaranteed Interest Account at any time
includes the amount transferred into the Account and does not
include amounts withdrawn or transferred out of such Account.
E. The Sections entitled TERMINATION OF PARTICIPATION (2.04), ANNUAL
ADMINISTRATIVE CHARGE (2.06), DEATH BENEFIT (2.07), ELECTION AND
COMMENCEMENT OF ANNUITY PAYMENTS (3.02), CONTRACT HOLDER
RESPONSIBILITY (4.10) and RIGHT OF EMPLOYER (4.12) are amended to
change the term "Guaranteed Interest Account" wherever it appears to
"Guaranteed Interest Account and Stock Account."
F. Section 2.03, ALLOCATION TO ACCOUNT, shall read as follows:
SECTION 2.03 ALLOCATION TO ACCOUNT Each Contribution made with respect
to a Participant pursuant to Section 2.01, after deduction for any
applicable taxes, will be allocated, as of the date by which Equitable
has received both such Contribution and direction as to its
allocation, to the Guaranteed Interest Account, or Stock Account, or
in part to each, at the sole direction of the Participant as specified
to Equitable, provided that the percentage allocated to each Account
is a whole number.
Any amount that a Participant has directed to be transferred to the
Guaranteed Interest Account or the Stock Account pursuant to Section
2.11 will be allocated as of the date of such transfer to the
appropriate Account maintained for such Participant.
Interest is allocated to the Guaranteed Interest Account at the end of
each Participation Year, at the time of each transfer or withdrawal
pursuant to Sections 2.05, 2.05A, 2.05B and 2.11 at the time of
application of amounts in the Guaranteed Interest Account to provide
Annuity Benefits, upon termination of participation pursuant to
Section 2.04, and upon death of the Participation pursuant to Section
2.07.
PF 14104CP Page 6
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G. Section 2.05, PARTIAL WITHDRAWALS, shall read as follows:
SECTION 2.05 PARTIAL WITHDRAWALS
Subject to any applicable restrictions under the terms of the Plan, a
Participant may elect by written notice to Equitable to make a partial
withdrawal from the Stock Account and the Guaranteed Interest Account
maintained for such Participant before such Participant's Retirement
Date.
Upon withdrawal pursuant to Section 2.05, 2.05A or 2.05B, Equitable
will pay the lesser of the sum of the Cash Values of such Accounts or
the amount of partial withdrawal requested to the person entitled to
such payment as designated in writing by such Participant. Unless
instructed otherwise, the amount withdrawn (including the amount of
any withdrawal charge) will be allocated between such Accounts in
proportion to the Annuity Value of each such Account.
Upon any payment to a Participant pursuant to Section 2.05, 2.05A or
2.05B, Equitable will be released from any and all liability for
payments with respect to the Contributions from which the amounts so
withdrawn arose.
Payments to the Participant pursuant to Section 2.05, 2.05A or 2.05B
may be deferred by Equitable in accordance with the provisions of
Section 4.08.
Equitable is under no obligation to process any request for partial
withdrawal of less than $300. If a withdrawal from the Accounts made
pursuant to Sections 2.05, 2.05A or 2.05B would result in total
Annuity Values of less than $200, Equitable will so advise the
Participant and reserves the right to withdraw the Annuity Values of
the Guaranteed Interest Account and Stock Account, pay the Annuity
Values of such Accounts to the Participant, and terminate such
Participant's participation under the Contract. If the Participant
enrolled in this Contract on or after the effective date of this
rider, the $200 amount stated above shall be $500.
SECTION 2.05A PARTIAL WITHDRAWALS -- NEW PARTICIPANT
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by
a New Participant, Equitable will withdraw from the Stock Account and
Guaranteed Interest Account an amount equal to the lesser of (a) the
full amount of partial withdrawal requested or (b) the sum of the
Annuity Values of such Accounts, provided the request for partial
withdrawal is made after the earliest of the following occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such Participant and (b) such Participant's attainment of
age 59 years and six months, or (ii) such Participant's attainment of
age 70 years and six months, or (iii) the completion of 25
Participation Years with respect to such Participant, or (iv) if the
Participant has attained age 55, has completed five Participation
Years, and the partial withdrawal is to be applied to purchase an
Eligible Annuity Certain defined in Section 1.14B. At other times,
Equitable will withdraw from such Accounts an amount equal to the
amount of partial withdrawal requested plus a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: If the Participant has not
completed five Participation Years under the Contract, such withdrawal
charge will equal the lesser of (a) or (b) where:
(a) is a amount equal to 6% of the total amount to be withdrawn from
the Accounts pursuant to this paragraph (including such charge)
(b) is the excess, if any, of (i) 8% of the cumulative total of
Contributions made on behalf of such Participant over (ii) the
cumulative total of any prior withdrawal charges made pursuant to
this Section.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five
Participation Years with respect to the Participant, there will be no
withdrawal charge if the
PF 14104CP Page 7
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amount of partial withdrawal requested is not greater than the Free
Corridor Amount defined in Section 2.05C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts
an amount equal to the Free Corridor Amount, and (ii) then withdraw an
amount equal to the excess of the amount requested over the Free
Corridor Amount, plus a withdrawal charge. Such withdrawal charge will
be equal to the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the amount withdrawn pursuant to (ii)
of the preceding sentence including such charge, and
(b) is the excess, if any, of (i) 8% of the cumulative total of
contributions made on behalf of such Participant during the
current Participation Year and the nine preceding Participation
Years over (ii) the cumulative total of any prior withdrawal
charges made pursuant to this Section.
SECTION 2.05B PARTIAL WITHDRAWAL -- EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by
an Existing Participant, Equitable will withdraw from the Stock
Account and Guaranteed Interest Account an amount equal to the lesser
of (a) the full amount of partial withdrawal requested or (b) the
Annuity Values of such Accounts, provided the request for partial
withdrawal is made after the earliest of the following occurrences:
(i) The Participant's attainment of age 59 years and six months, or
(ii) the completion of 20 Participation Years with respect to such
Participant, or (iii) if the Participant has attained age 55 and the
partial withdrawal is to be applied to the purchase of an Eligible
Annuity Certain defined in Section 1.14B. At other times, Equitable
will withdraw from such Accounts an amount equal to the amount of
partial withdrawal requested plus a withdrawal charge.
PREFERRED WITHDRAWABLE AMOUNT: This is an amount equal to the lesser
of (a) the total of Equitable Transferred Funds made on behalf of the
Participant or (b) $10,000.
FREE WITHDRAWABLE AMOUNT: This is an amount equal to the excess, if
any, of (a) the total Equitable Transferred Funds made on behalf of
the Participant over (b) $10,000.
REGULAR WITHDRAWABLE AMOUNT: This is the cumulative total of all
Contributions, other than Equitable Transferred Funds, made on behalf
of the Participant.
ORDER OF WITHDRAWALS: In calculating the withdrawal charge, Equitable
will assume that (a) any Preferred Withdrawable Amounts are first
withdrawn, (b) any Free Withdrawable Amounts are next withdrawn, (c)
any Regular Withdrawable Amounts are next withdrawn, and (d) lastly,
any amounts other than the amounts described in (a), (b), and (c)
above are withdrawn.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five
Participation Years with respect to the Participant, the withdrawal
charge equals the sum of the charges described in sub-sections (a),
(b), (c) and (d) below:
(a) With respect to any withdrawals of Preferred Withdrawable
Amounts, a charge of 2% of such withdrawals.
(b) With respect to any withdrawals of Free Withdrawable Amounts, no
charge.
(c) With respect to any withdrawals of Regular Withdrawable Amounts,
a charge of 6% of such withdrawals.
(d) With respect to any withdrawals of amounts other than the amounts
in (a), (b) and (c) above, no charge.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five
Participation Years with respect to the Partici-
PF 14104CP Page 8
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pant, there will be no withdrawal charge if the amount of partial
withdrawal requested is not greater than the Free Corridor Amount
defined in Section 2.05C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (1) first withdraw from such Accounts
an amount equal to the Free Corridor Amount, and (2) then withdraw
from such Accounts an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a withdrawal charge.
Such withdrawal charge will equal the sum of the charges described in
(a), (b), (c), and (d) above; provided, however, that in no event,
will such charge exceed an amount equal to the following: The excess,
if any, of (1) the sum of (i) 2% of the first $10,000 of Equitable
Transferred Funds made during the current Participation Year and the
preceding nine Participation Years and (ii) 8% of all other
Contributions (excluding Equitable Transferred Funds) made on behalf
of the Participant during the current Participation Year and the
preceding nine completed Participation Years over (2) the cumulative
total of any prior withdrawal charges made pursuant to this Section.
Whenever an amount is withdrawn from such Accounts that is not greater
than the current Free Corridor Amount; such amount is considered to be
(1) first, a withdrawal of Regular Withdrawable Amounts, (2) next, a
withdrawal of Preferred Withdrawable Amounts, (3) next, a withdrawal
of Free Withdrawable Amounts and (4) lastly, a withdrawal of amounts
other than the amounts in (1), (2), or (3) above. However, no charge
will be assessed with respect to the portion of the withdrawal up to
the current Free Corridor Amount.
SECTION 2.05C FREE CORRIDOR AMOUNT
The term "Free Corridor Amount" with respect to a Participant who has
completed five Participation Years means an amount equal to the
excess, if any, of (i) 10% of the sum of the Annuity Values of the
Stock Account and the Guaranteed Interest Account over (ii) cumulative
prior withdrawals made pursuant to Section 2.05, 2.05A or 2.05B in the
current Participation Year with respect to the Participant.
H. The first paragraph of Section 2.06, ANNUAL ADMINISTRATIVE CHARGE, is
amended by adding the following:
The charge will be allocated between the Stock Account and the
Guaranteed Interest Account in proportion to the Annuity Values of
such Accounts at the end of the Participation Year.
I. Section 2.08, Change of Deductions for New Participants, is deleted as
of August 1, 1981 and Section 2.09, Change of Deductions and Charges
for Existing Participants, shall not apply to Participants enrolled on
or after August 1, 1981.
J. With respect to Section 3.03, AMOUNT OF ANNUITY BENEFITS,
a. Wherever the term "Guaranteed Interest Account" appears, it shall
be changed to "Guaranteed Interest and Stock Account."
b. The second and third sentences of paragraph 2 shall apply to a
Participant who has completed five Participation Years and to an
Existing Participant (as defined in Part I of this rider).
c. Paragraph 3 shall apply to a New Participant (as defined in Part
I of this rider) before the completion of five Participation
Years.
d. The last two paragraphs have been amended to provide that any
Variable Annuity Benefit shall be calculated by Equitable on 1979
ELAS Mortality and an Assumed Base Rate of Net Investment Income
Return of 5% or 3 1/2%, whichever applies pursuant to Section
1.20.
PF 14104CP Page 9
<PAGE>
K. Section 3.04, PAYMENT OF ANNUITY PAYMENTS, is amended by the addition
of the following:
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION -- ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 3 1/2%
(MINIMUM MONTHLY INCOME PER $1,000 OF ANNUITY VALUE)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
FEMALE AGE
MALE ---------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
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<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.31 4.35 4.39 4.43 4.47 4.51 4.55 4.59 4.63 4.67 4.71
61 4.35 4.39 4.43 4.48 4.52 4.56 4.61 4.65 4.69 4.73 4.78
62 4.39 4.43 4.48 4.52 4.57 4.61 4.66 4.71 4.75 4.80 4.85
63 4.42 4.47 4.52 4.57 4.62 4.67 4.72 4.77 4.82 4.87 4.92
64 4.46 4.51 4.57 4.62 4.67 4.72 4.77 4.83 4.88 4.94 4.99
65 4.50 4.56 4.61 4.66 4.72 4.78 4.83 4.89 4.95 5.01 5.07
66 4.54 4.60 4.65 4.71 4.77 4.83 4.89 4.95 5.01 5.08 5.14
67 4.58 4.64 4.70 4.76 4.82 4.88 4.95 5.01 5.08 5.15 5.22
68 4.62 4.68 4.77 4.81 4.87 4.95 5.01 5.08 5.15 5.22 5.29
69 4.65 4.72 4.78 4.85 4.92 4.99 5.06 5.14 5.22 5.29 5.37
70 4.69 4.76 4.83 4.90 4.97 5.05 5.12 5.20 5.28 5.36 5.45
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION -- ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 5%
(MINIMUM MONTHLY INCOME PER $1,000 OF ANNUITY VALUE)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
FEMALE AGE
MALE ---------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.19 5.23 5.27 5.31 5.34 5.39 5.42 5.46 5.50 5.54 5.58
61 5.23 5.27 5.31 5.35 5.39 5.43 5.47 5.52 5.56 5.60 5.64
62 5.27 5.31 5.35 5.39 5.44 5.48 5.53 5.57 5.62 5.67 5.71
63 5.31 5.35 5.39 5.44 5.49 5.53 5.58 5.63 5.68 5.73 5.78
64 5.34 5.39 5.44 5.48 5.53 5.59 5.64 5.69 5.74 5.79 5.85
65 5.38 5.43 5.48 5.53 5.58 5.64 5.69 5.75 5.80 5.86 5.92
66 5.42 5.47 5.52 5.58 5.63 5.69 5.75 5.81 5.87 5.93 5.99
67 5.45 5.51 5.56 5.62 5.68 5.74 5.80 5.87 5.93 6.00 6.06
68 5.49 5.55 5.61 5.67 5.73 5.80 5.86 5.93 6.00 6.06 6.14
69 5.53 5.59 5.65 5.71 5.78 5.85 5.92 5.99 6.06 6.13 6.21
70 5.56 5.63 5.69 5.76 5.83 5.90 5.97 6.05 6.13 6.21 6.29
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY
FORM
(MINIMUM MONTHLY INCOME PER $1,000 OF ANNUITY VALUE)
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
INVESTMENT RETURN IS
--------------------------------
3 1/2% 5%
---------- ----------
AGE MALES FEMALES MALES FEMALES
- ----------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
60 5.43 4.80 6.36 5.70
61 5.57 4.90 6.50 5.81
62 5.72 5.01 6.65 5.91
63 5.88 5.13 6.81 6.03
64 6.05 5.25 6.97 6.15
65 6.23 5.39 7.16 6.28
66 6.43 5.54 7.35 6.43
67 6.64 5.70 7.56 6.58
68 6.87 5.87 7.79 6.76
69 7.11 6.06 8.03 6.95
70 7.38 6.27 8.30 7.15
</TABLE>
Equitable will notify the payee under a Variable Annuity Benefit of
the number of Annuity Units and the Average New Annuity Unit Value
used in determining the amount of each variable payment.
L. Section 4.08, DEFERMENT, shall read as follows:
SECTION 4.08 DEFERMENT
Payments by Equitable from the Participant's Guaranteed Interest
Account pursuant to the provisions of Section 2.04, Sections 2.05,
2.05A and 2.05B, and Section 2.07, or any commuted payments arising
from a Fixed Annuity Benefit pursuant to Section 3.04, may be deferred
for up to six months after receipt of a written request for such
surrender or withdrawal, or receipt of due proof of death of the
Participant, respectively, or receipt of due documentation for such
commutation payment pursuant to Section 3.04. Interest at the current
Guaranteed Interest Rate for such Participant's Guaranteed Interest
Account will be allowed on any such payment deferred for 30 days or
more.
Except as provided in this Section, payments by Equitable from the
Participant's Stock Account pursuant to the provisions of Section
2.04, Sections 2.05, 2.05A and 2.05B, and Section 2.07, or any
commuted payments arising from a Variable Annuity Benefit pursuant to
Section 3.04, will be made within seven days after receipt of a
written request for such surrender or withdrawal, or receipt of due
proof of death of the Participant, respectively, or receipt of due
documentation for such commutation payment pursuant to Section 3.04.
During any period when (i) the sale of securities or the determination
of the New Accumulation Unit Value or the New Annuity Unit Value is
not reasonably practicable because an emergency, defined by the
Securities and Exchange Commission, exists, or the New York Stock
Exchange is closed or trading on such Exchange is restricted, or (ii)
the Securities and Exchange Commission may by order permit
postponement for the protection of persons having interests in the
Separate Account, Equitable reserves the right:
PF 14104CP Page 10
<PAGE>
(a) to defer determination of Cash Values or Annuity Values and
payment of Cash Values and Annuity Values, arising from an amount
in a Participant's Stock Account;
(b) to defer payment of any portion of the death benefit arising from
an amount in a Participant's Stock Account;
(c) to defer the payment of any Variable Annuity Benefit under the
Contract or the application of any such Benefit to provide for
any other payment called for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts
to provide any Annuity Benefit permitted under the Contract.
M. Section 4.09, ANNUAL NOTICE, shall read as follows:
SECTION 4.09 ANNUAL NOTICE
At the end of each Participation Year up to and including the
Retirement Date, Equitable will furnish the Participant with a notice
showing as of a specified recent date (1) the Annuity Value of the
Guaranteed Interest Account, (2) the total number of Accumulation
Units credited to the Stock Account, (3) the New Accumulation Unit
Value, (4) the sum of the Cash Values of the Guaranteed Interest
Account and the Stock Account and (5) the amount of death benefit
payable with respect to the Participant. After the Retirement Date
Equitable will notify the Participant of the number of Annuity Units
and the Average New Annuity Unit Value used in determining the amount
of each Variable Annuity Benefit payment, if any.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ Signature Unreadable By /s/ Coy Eklund
---------------------------------- ---------------------------------------
President
Title S/V/P By /s/ Rodney L. Enochs
------------------------------ ---------------------------------------
Vice President and Secretary
Dated 8/12/81 Date of Issuance AUG 12 1981
------------------------------ -------------------------
At N.Y. N.Y.
---------------------------------
PF 14104CP Page 11
<PAGE>
Attached to and made part of Group Annuity Contract No. 11932CP
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective January 1, 1982 said contract is amended by
adding the following to the third paragraph of Section 1.10 (Guaranteed Interest
Rate):
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine for
each established Class of Participants a Guaranteed Interest Rate for such Class
which exceeds the applicable Yearly Guaranteed Interest Rate. Equitable will
notify each Participant in writing of the applicable Guaranteed Interest Rate
and duration.
<TABLE>
<CAPTION>
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
<S> <C>
By /s/ Signature Unreadable By /s/ Coy Eklund
---------------------------------------------- ----------------------------------------------
President
Title Senior Vice President By /s/ Rodney L. Enochs
------------------------------------------ ----------------------------------------------
Vice President and Secretary
Dated DEC 22 1981 Date of Issuance DEC 22 1981
------------------------------------------ --------------------------------
At New York, New York
---------------------------------------------
</TABLE>
PF 14109CP
<PAGE>
Attached to and made part of Group Annuity Contract No. 11932CP
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective April 15, 1982, said contract and riders are
amended as follows:
o Contributions made to the Contract after deduction of any applicable taxes,
will be allocated to the Stock Account, Money Market Account or the
Guaranteed Interest Account maintained for the Participant, in accordance
with Sections 2.02 and 2.03, or in part to any one, as directed by the
Participant.
o The amount in the Stock Account, Money Market Account and the Guaranteed
Interest Account will be applied at the Retirement Date to provide the
Participant with an Annuity Benefit or a Cash Value Benefit if the
Participant is then living, and
o The Participant will have other rights and benefits as described herein.
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN SEPARATE ACCOUNTS
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF
SEPARATE ACCOUNT A. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE
DAILY RATE OF INVESTMENT RETURN IN SEPARATE ACCOUNT A IS EQUIVALENT TO MORE THAN
6.75% OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75%
OR 5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.16 IS 5% OR 3 1/2%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND
MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO
PROVIDE FOR TAXES.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
The provisions on the following pages are part of the Contract.
PF 14114CP
<PAGE>
This page 2 reserved for information
in connection with the issuance of
certificates under this Contract.
PAGE 2
<PAGE>
This page 3 reserved for information
in connection with the issuance of
certificates under this Contract.
PAGE 3
<PAGE>
DEFINITIONS (continued)
change. Equitable will notify each Participant in a Class in writing of the
Yearly Guaranteed Interest Rate or of any change in the Minimum Guaranteed
Interest Rate at least 15 days prior to its effective date.
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine for
each established Class of Participants a Guaranteed Interest Rate for such Class
which exceeds the applicable Yearly Guaranteed Interest Rate. Equitable will
notify each Participant in writing of the applicable Guaranteed Interest Rate
and duration.
SECTION 1.11 RETIREMENT DATE
The term "Retirement Date" means the date on which the Participant is to attain
the retirement age specified in the Participant's enrollment form. Before the
Retirement Date the Participant may elect to change the Retirement Date to
another Retirement Date, which may be any date after the filing of the election
(other than the 29th, 30th, or 31st day of any month). No Retirement Date shall
be earlier than the Retirement Date provided under the Plan. Any election for
such change must be made in writing by the Participant and shall not take effect
until received by Equitable at its Home Office.
SECTION 1.12 NORMAL FORM
The "Normal Form" of an Annuity Benefit under the Contract means, (i) if the
Participant has a living spouse at the Retirement Date, the Fixed Annuity
Benefit payable on the Joint and Survivor Life Annuity Form with such spouse as
the contingent annuitant (100% continuation), and (ii) if the Participant does
not have a living spouse at the Retirement Date, the Fixed Annuity Benefit
Payable on the Life Annuity Form.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM
The term "Joint and Survivor Life Annuity Form" means an annuity providing
monthly payments while either of two persons upon whose lives such payments
depends is living. The monthly amount to be continued when only one of the
persons is living will be equal to a percentage of the monthly amount that was
paid while both were living. This percentage may be 50% or any higher percentage
up to and including 100%, as elected by the Participant. The payments commence
on the date as of which the Joint and Survivor Life Annuity Form is purchased
and terminate with the last payment due before the death of the survivor.
SECTION 1.14A LIFE ANNUITY FORM
The term "Life Annuity Form" means an annuity providing fixed monthly payments
during the lifetime of the person upon whose life such payments depend. The
payments commence on the date as of which the Life Annuity Form is purchased and
terminate with the last payment due before the death of such person.
SECTION 1.14B ELIGIBLE ANNUITY CERTAIN
The term "Eligible Annuity Certain" means an annuity not involving life
contingencies issued by Equitable which extends beyond the Participant's
attainment of age 59 years and six months and does not permit any prepayment of
the unpaid principal prior to the participant's attainment of age 59 years and
six months.
SECTION 1.15 THE SEPARATE ACCOUNTS
The term "Separate Accounts" means the following separate investment accounts
maintained by Equitable to which portions of its assets have been allocated for
the Contract and certain other contracts:
Name Investments
---- -----------
Separate Account A Primarily common stock and other equity-type
investments.
Separate Account E Primarily short-term money market instruments.
Equitable reserves the right to withdraw from any Separate Account and allocate
to another separate account assets determined by Equitable to be associated with
the class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid odd lots and
fractions. On and after the date of
PF 14114CP Page 6
<PAGE>
DEFINITIONS (continued)
any such withdrawal the reference in the Contract to such Separate Account shall
mean such other separate account to which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Accounts will, at most
times, consist primarily of the types of investments indicated above. Equitable
may, however, at its discretion invest the assets of any Separate Account in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including attorneys in its employ) as to what investments
it is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate any Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
any Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) run any Separate Account under the direction of a
committee, and to discharge such committee at any time; and (iii) restrict or
eliminate any voting rights of participants or other persons who have voting
rights as to the Separate Accounts.
Assets of the Separate Accounts attributable to the Contract shall be subject to
a charge at the rate of 1.75% a year, consisting of .15% for investment
management, .35% for financial accounting, .35% for the annuity rate guarantee
and the minimum death benefit, and .90% for expenses and expense risk. The
charge shall be made in accordance with (c) of the Net Investment Factor
provision in Section 1.16.
The assets of Separate Accounts are the property of Equitable; however, the
portion of the assets of each Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising out of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of the Separate Accounts in excess of such
reserves and contract liabilities to the general account of Equitable.
SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which there is a
sufficient degree of trading in the portfolio securities of a Separate Account
that the New Accumulation Unit Value or New Annuity Unit Value might be
materially affected by changes in the value of the portfolio securities in a
Separate Account, as determined by the Separate Account Committee or, if there
is no Committee, by Equitable.
NET INVESTMENT FACTOR: For each Separate Account the Net Investment Factor for a
Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment income
and the capital gains, realized or unrealized, credited to the assets of
the Separate Account in the Valuation Period for which the Net Investment
Factor is being determined, minus (3) the capital losses, realized or
unrealized, charged against such assets in such Valuation Period, minus (4)
any amount charged against the Separate Account in such Valuation Period
for taxes or for amounts set aside by Equitable as a reserve for taxes
attributable to the maintenance or operation of the Separate Account;
(b) is the value of the assets in the Separate Account at the close of business
of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial accounting, the annuity rate
guarantee and the minimum death benefit, and expenses and expense risk.
The value of the assets in the Separate Accounts, referred to above, shall be
taken at their fair market value, or where there is no readily available
market.
PF 14114CP Page 7
<PAGE>
DEFINITIONS (continued)
their fair value, as determined in accordance with accepted accounting practices
and applicable laws and regulations.
ACCUMULATION UNIT: The accumulation Unit is a unit used in determining the value
of the interest of a Participant's Stock Account or Money Market Account on or
before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Values for the
Separate Accounts have been established as follows:
Account Value Date
------- ----- ----
Separate Account A $10.00 As of November 1, 1968
Separate Account E $10.00 As of September 4, 1974
The new Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from Separate Account A under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value for Separate Account
A has been established at $1.00 as of November 1, 1968. The Annuity Unit Value
for any subsequent Valuation Period is the New Annuity Unit Value for the
immediately preceding Valuation Period multiplied by the Adjusted Net Investment
Factor for such subsequent Valuation Period. The Adjusted Net Investment Factor
for a Valuation Period is the Net Investment Factor for such period reduced for
each calendar day in such subsequent Valuation Period by the Net Investment
Factor times (i) .00013366, if the Assumed Base Rate of Net Investment Return is
5%, and (ii) .00009425, if the Assumed Base Rate of Net Investment Return is 3
1/2%. The Assumed Base Rate of Net Investment Return shall be 5%, except in
states where the rate is not permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average Annuity Unit Value for Separate
Account A for a calendar month is equal to the average of the New Annuity Unit
Values for the Valuation Periods ending in such month.
SECTION 1.17 ANNUITY VALUE
The term "Annuity Value" with respect to a Participant's Guaranteed Interest
Account, Stock Account and Money Market Account, means the amount in such
Accounts pursuant to Sections 2.02 and 2.03.
SECTION 1.18A CASH VALUE - NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to a New Participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock Account
and Money Market Account means an amount equal to the Annuity Values of such
Accounts after the earliest of the following occurrences: (i) The later of (a)
the completion of five Participation Years with respect to such Participant and
(b) the Participant's attainment of age 59 years and six months, of (ii) the
Participant's attainment of age 70 years and six months, or (iii) the completion
of 25 Participation Years with respect to such Participant, or (iv) if the
Participant has attained age 55, completed five Participation Years, and the
Cash Values are to be applied to purchase an Eligible Annuity Certain defined in
Section 1.14B. At other times, the sum of the Cash Values of such Accounts
equals the sum of the Annuity Values of such Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five Participation
Years with respect to the Participant, the withdrawal charge equals the lesser
of (a) or (b) where:
(a) equals 6% of the sum of the Annuity Values of such Accounts.
(b) is an amount equal to the excess, if any, of (i) 8% of the cumulative
contributions made on behalf of such Participant over (ii) the cumulative
total of any withdrawal charges made pursuant to Sections 2.07 and 2.07A.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five Participation
Years with respect to the Participant, the withdrawal charge equals the lesser
of (a) or (b) where:
PF 14114CP Page 8
<PAGE>
DEFINITIONS (continued)
(a) equals 6% of the excess of (i) the sum of the Annuity Values of such
Accounts over (ii) the Free Corridor Amount defined in Section 2.07C.
(b) is the excess, if any, of (i) 8% of the total contributions made on behalf
of such Participant during the current Participation Year and the preceding
nine Participation Years over (ii) the cumulative total of any withdrawal
charges made pursuant to Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account and Money
Market Account will be in the same proportion as are the Annuity Values of such
Accounts.
SECTION 1.18B CASH VALUE - EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to an Existing Participant, the term "Cash
Value" with respect to such Participant's Guaranteed Interest Account, Stock
Account and Money Market Account means an amount equal to the Annuity Values of
such Accounts after the earliest of the following occurrences: (i) The
Participant's attainment of age 59 years and six months, (ii) the completion of
20 Participation Years with respect to such Participant, or (iii) if the
Participant has attained age 55 and the Cash Values are to be applied to
purchase an Eligible Annuity Certain defined in Section 1.14B. At other times,
the sum of the Cash Values of such Accounts equals the sum of the Annuity Values
of such Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five Participation
Years with respect to the Participant, the withdrawal charge equals the sum of
the charges described in subsections (a) and (b) below; provided, however, that
such charge does not exceed the amount described in subsection (c) below where:
(a) is an amount equal to 2% of any Preferred Withdrawable Amounts (defined in
Section 2.07B) that have not previously been withdrawn pursuant to Sections
2.07 and 2.07B.
(b) is an amount equal to 6% of any Regular Withdrawable Amounts (defined in
Section 2.07B) that have not previously been withdrawn pursuant to Sections
2.07 and 2.07B.
(c) is an amount equal to the sum of (a) above, and 6% of the excess, if any,
of (i) the sum of the Annuity Values of such Accounts over (ii) the
cumulative total of Equitable Transferred Funds made with respect to the
Participant that have not previously been withdrawn pursuant to Sections
2.07 and 2.07B.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After five Participation Years have been
completed with respect to the Participant, Equitable (i) will first withdraw,
pursuant to Section 2.07B, the Free Corridor Amount defined in Section 2.07C and
(ii) next withdraw the remaining portion of the sum of the Annuity Values of
such Accounts. A withdrawal charge will apply to the amount in (ii) above, and
will equal the sum of the charges described in subsections (a) and (b) of the
preceding subsection; provided, however, that such charge will not exceed an
amount equal to the lesser of the charges defined in (d) and (e) below:
(d) is an amount equal to the sum of (a) in the preceding subsection, and 6% of
the excess, if any, of (i) the sum of the Annuity Values of such Accounts
(after withdrawal of the Free Corridor Amount) over (ii) the cumulative
total of Equitable Transferred Funds made on behalf of the Participant that
have not previously been withdrawn pursuant to Sections 2.07 and 2.07B.
(e) is an amount equal to the excess, if any, of (1) the sum of (i) 2% of the
first $10,000 of Equitable Transferred Funds made during the current
Participation Year and the preceding nine Participation Years and (ii) 8%
of all other contributions (excluding Equitable Transferred Funds) made on
behalf of such Participant during the current Participation Year and the
preceding nine completed Participation Years over (2) the cumulative total
of any withdrawal charges made pursuant to Sections 2.07 and 2.07B.
The Cash Values of the Guaranteed Interest Account, Stock Account and Money
Market Account will be in the same proportion as are the Annuity Values of such
Accounts.
PF 14114CP Page 9
<PAGE>
DEFINITIONS (continued)
SECTION 1.19 CODE
The term "Code" means the Internal Revenue Code of 1954, as now or hereafter
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.20 EQUITABLE TRANSFERRED FUNDS
The term "Equitable Transferred Funds" with respect to a Participant means the
amount of cash value(s) transferred to the Contract from a contract issued by
Equitable, pursuant to Section 2.01.
PART II - PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS
The Employer is to make Contributions from time to time on such dates and in
such amounts as determined by the Employer pursuant to the terms of the Plan or,
if the Employer has no Plan, as determined by the Employer at its sole
discretion. The Employer is to specify the Participant with respect to whom each
such Contribution is being made and the amount to be allocated to the Stock
Account, Money Market Account and the Guaranteed Interest Account.
Each Contribution received by Equitable with respect to a Participant will,
before its allocation under the Contract, be reduced by the amount of any
applicable taxes, as determined by Equitable.
A Participant may, with Equitable's agreement, transfer to the Contract any
amount held with respect to such Participant under a Plan of the Employer or
under an "Eligible State Deferred Compensation Plan" meeting the requirements of
Section 457(b) of the Code established and maintained by an other employer
("Transferred Funds"). Any Transferred Funds from a contract not issued by
Equitable will, before allocation under the Contract, be reduced by the amount
of any applicable taxes, as determined by Equitable.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
SECTION 2.02 STOCK AND MONEY MARKET ACCOUNTS
Equitable maintains a Stock Account and Money Market Account under the Contract
for each Participant with respect to whom Contributions are made. Any amount
allocated to the (i) Stock Account becomes part of Separate Account A, and (ii)
Money Market Account becomes part of Separate Account E. Any amount withdrawn
from an Account will no longer be part of the applicable Separate Account.
On any date when an amount is allocated to or withdrawn from an Account, the
Account will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the New Accumulation
Value for the appropriate Separate Account for the Valuation Period which
includes that date. The number of Units in an Account on any date is equal to
(i) the sum of any Accumulation Units that have been credited to the Account
minus (ii) the sum of any Accumulation Units that have been charged to that
Account. The amount in the Stock Account or Money Market Account on any date is
equal to the product of (i) the number of Accumulation Units in such Account on
that date and (ii) the New Accumulation Unit Value for the appropriate Separate
Account for the Valuation Period which includes that date.
SECTION 2.03 GUARANTEED INTEREST ACCOUNT
Equitable maintains a Guaranteed Interest Account under the Contract for each
Participant with respect to whom Contributions are made. Any amount allocated to
the Guaranteed Interest Account becomes part of the general assets of Equitable,
which support the guarantees of the Contract and other contracts.
The amount in a Guaranteed Interest Account at any time is equal to the sum of
all amounts that have been allocated to such Guaranteed Interest Account
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn pursuant to
Sections 2.07, 2.07A, and 2.07B, and Section 2.08 from such Ac-
PF 14114CP Page 10
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
count, and transferred pursuant to Section 2.05 from such Guaranteed Interest
Account, and less the sum of any annual administrative charges accrued but not
made. Equitable guarantees that the amount in a Guaranteed Interest Account at
any time before the Retirement Date will not be less than the sum of all amounts
allocated to such Account pursuant to Section 2.04 or transferred to such
Account pursuant to Section 2.05 and less the sum of all amounts that have been
withdrawn from such Account pursuant to Sections 2.07, 2.07A and 2.07B, and
transferred from such Account pursuant to Section 2.05, all accumulated at 3%
interest, compounded annually. In any Participation Year in which no
Contribution is allocated to a Guaranteed Interest Account, the amount in such
Account at the end of the Participation Year shall not be less than the amount
in such Account at the beginning of the Participation Year plus the sum of all
amounts transferred to such Account pursuant to Section 2.05 less the sum of all
amounts withdrawn and transferred out of such Account pursuant to Sections
2.07, 2.07A and 2.07B, and Section 2.05, all accumulated at 3% interest,
compounded annually.
A Guaranteed Interest Account for a Participant terminates on the earliest of
(i) the Retirement Date, (ii) the death of the Participant, and (iii)
termination of participation pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO ACCOUNT
Each Contribution made with respect to a Participant pursuant to Section 2.01,
after deduction for any applicable taxes, will be allocated, as of the date by
which Equitable has received both such Contribution and direction as to its
allocation, to the Guaranteed Interest Account, Stock Account, or Money Market
Account or in part to each, at the sole direction of the Participant as
specified to Equitable, provided that the percentage allocated to each Account
is a whole number.
Any amount that a Participant has directed to be transferred to the Guaranteed
Interest Account or Stock Account pursuant to Section 2.05 will be allocated as
of the date of such transfer to the appropriate Account maintained for such
Participant.
Interest is allocated to the Guaranteed Interest Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05 and 2.07, 2.07A, and 2.07B, at the time of application of amounts
in the Guaranteed Interest Account to provide Annuity Benefits, upon termination
of participation pursuant to Section 2.06, and upon death of the Participant
pursuant to Section 2.09.
SECTION 2.05 TRANSFERS AMONG ACCOUNTS
At any time before a Participant's Retirement Date, such Participant, upon
written request, (i) may transfer all or a part of the amounts from the Stock
Account or Money Market Account maintained for such Participant to the
Guaranteed Interest Account maintained for such Participant, or (ii) may
transfer all or a part of the amounts in the Guaranteed Interest Account or
Money Market Account maintained for such Participant to the Stock Account
maintained for such Participant. Such transfers will be made as of the later of
(i) the date specified in such request and (ii) the date Equitable receives such
request, and will be subject to Equitable's rules in effect at the time of
transfer. No transfers are permitted from the Guaranteed Interest Account or the
Stock Account maintained for the Participant to the Money Market Account.
SECTION 2.06 TERMINATION OF PARTICIPATION
Subject to any applicable restrictions under the terms of the Plan, on or before
a Participant's Retirement Date, such Participant may elect by written notice to
terminate participation under the Contract. Upon receipt of such notice,
Equitable will determine the Cash Value, as of the date Equitable received such
notice, of the Guaranteed Interest Account, Stock Account and Money Market
Account maintained for such Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Guaranteed Interest Account,
Stock Account and Money Market Account, pay such Annuity Values and terminate
such Participant's participation under the Contract. This right may be exercised
with respect to the Participant only if both (i) no
PF 14114CP Page 11
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
Contributions have been made under the Contract during the last three completed
Participation Years, and (ii) the sum of such Annuity Values is $500 or less.
Equitable reserves the right to terminate a Participant's participation under
the Contract if at least 120 days have elapsed since the issue date shown on the
certificate issued to such Participant under the Contract and no Contributions
have been made under the Contract with respect to such Participant.
Upon payment of such Cash Values or Annuity Values, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Values or Annuity Values arose.
SECTION 2.07 PARTIAL WITHDRAWALS
Subject to any applicable restrictions under the terms of the Plan, a
Participant may elect by written notice to Equitable to make a partial
withdrawal from the Stock Account, Money Market Account and the Guaranteed
Interest Account maintained for such Participant before such Participant's
Retirement Date.
Upon withdrawal pursuant to Section 2.07, 2.07A or 2.07B, Equitable will pay the
lesser of the sum of the Cash Values of such Accounts or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by such Participant. Unless instructed otherwise, the amount withdrawn
(including the amount of any withdrawal charge) will be allocated between such
Accounts in proportion to the Annuity Value of each such Account.
Upon any payment to a Participant pursuant to Section 2.07, 2.07A or 2.07B,
Equitable will be released from any and all liability for payments with respect
to the Contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to Section 2.07, 2.07A or 2.07B may be
deferred by Equitable in accordance with the provisions of Section 4.08.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300. If a withdrawal from the Accounts made pursuant to Sections
2.07, 2.07A or 2.07B would result in total Annuity Values of less than $500,
Equitable will so advise the Participant and reserves the right to withdraw the
Annuity Values of the Guaranteed Interest Account, Stock Account and Money
Market Account, pay the Annuity Values of such Accounts to the Participant, and
terminate such Participant's participation under the Contract. If the
Participant was enrolled in this Contract prior to August 15, 1981, the $500
amount stated above shall be $200.
SECTION 2.07A PARTIAL WITHDRAWALS -- NEW PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a New
Participant, Equitable will withdraw from the Stock Account, Money Market
Account and Guaranteed Interest Account an amount equal to the lesser of (a) the
full amount of partial withdrawal requested or (b) the sum of the Annuity Values
of such Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The later of (a) the completion of
five Participation Years with respect to such Participant and (b) such
Participant's attainment of age 59 years and six months, or (ii) such
Participant's attainment of age 70 years and six months, or (iii) the completion
of 25 Participation Years with respect to such Participant, or (iv) if the
Participant has attained age 55, has completed five Participation Years, and the
partial withdrawal is to be applied to purchase an Eligible Annuity Certain
defined in Section 1.14B. At other times, Equitable will withdraw from such
Accounts an amount equal to the amount of partial withdrawal requested plus a
withdrawal charge.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: If the Participant has not completed
five Participation Years under the Contract, such withdrawal charge will equal
the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the total amount to be withdrawn from the
Accounts (including such charge) pursuant to this paragraph.
(b) is the excess, if any, of (i) 8% of the cumulative total of Contributions
made on behalf of such Participant over (ii) the cumulative total of any
prior withdrawal charges made pursuant to this Section.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five Participation
Years with respect to the Participant, there will be no withdrawal charge if the
amount of partial withdrawal requested
PF 14114CP Page 12
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
is not greater than the Free Corridor Amount defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free Corridor
Amount, Equitable will (i) first withdraw from such Accounts an amount equal to
the Free Corridor Amount, and (ii) then withdraw an amount equal to the excess
of the amount requested over the Free Corridor Amount, plus a withdrawal charge.
Such withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the amount withdrawn (including such charge)
pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of contributions
made on behalf of such Participant during the current Participation Year
and the nine preceding Participation Years over (ii) the cumulative tota of
any prior withdrawal charges made pursuant to this Section.
SECTION 2.07B PARTIAL WITHDRAWAL -- EXISTING PARTICIPANTS
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by an
Existing Participant, Equitable will withdraw from the Stock Account, Money
Market Account and Guaranteed Interest Account an amount equal to the lesser of
(a) the full amount of partial withdrawal requested or (b) the Annuity Values of
such Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The Participant's attainment of age
59 years and six months, or (ii) the completion of 20 Participation Years with
respect to such Participant, or (iii) if the Participant has attained age 55 and
the partial withdrawal is to be applied to purchase an Eligible Annuity Certain
defined in Section 1.14B. At other times, Equitable will withdraw from such
Accounts an amount equal to the amount of partial withdrawal requested plus a
withdrawal charge.
PREFERRED WITHDRAWABLE AMOUNT: This is an amount equal to the lesser of (a) the
total of Equitable Transferred Funds made on behalf of the Participant or (b)
$10,000.
FREE WITHDRAWABLE AMOUNT: This is an amount equal to the excess, if any, of (a)
the total Equitable Transferred Funds made on behalf of the Participant over (b)
$10,000.
REGULAR WITHDRAWABLE AMOUNT: This is the cumulative total of all Contributions,
other than Equitable Transferred Funds, made on behalf of the Participant.
ORDER OF WITHDRAWALS: In calculating the withdrawal charge, Equitable will
assume that (a) any Preferred Withdrawable Amounts are first withdrawn, (b) any
Free Withdrawable Amounts are next withdrawn, (c) any Regular Withdrawable
Amounts are next withdrawn, and (d) lastly, any amounts other than the amounts
described in (a), (b), and (c) above are withdrawn.
WITHDRAWAL CHARGE WITHIN FIRST FIVE YEARS: Within the first five Participation
Years with respect to the Participant, the withdrawal charge equals the sum of
the charges described in subsections (a), (b), (c) and (d) below:
(a) With respect to any withdrawals of Preferred Withdrawable Amounts, a charge
of 2% of such withdrawals.
(b) With respect to any withdrawals of Free Withdrawable Amounts, no charge.
(c) With respect to any withdrawals of Regular Withdrawable Amounts, a charge
of 6% of such withdrawals.
(d) With respect to any withdrawals of amounts other than the amounts in (a),
(b) and (c) above, no charge.
WITHDRAWAL CHARGE AFTER FIVE YEARS: After the completion of five Participation
Years with respect to the Participant, there will be no withdrawal charge if the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free Corridor
Amount, Equitable will (1) first withdraw from such Accounts an amount equal to
the Free Corridor Amount, and (2) then withdraw from such Accounts an amount
equal to the excess of the amount requested over the Free Cor-
PF 14114CP Page 13
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
ridor Amount, plus a withdrawal charge. Such withdrawal charge will equal the
sum of the charges described in (a), (b), (c), and (d) above; provided, however,
that in no event will such charge exceed an amount equal to the following: The
excess, if any, of (1) the sum of (i) 2% of the first $10,000 of Equitable
Transferred Funds made during the current Participation Year and the preceding
nine Participation Years and (ii) 8% of all other Contributions (excluding
Equitable Transferred Funds) made on behalf of the Participant during the
current Participation Year and the preceding nine completed Participation Years
over (2) the cumulative total of any prior withdrawal charges made pursuant to
this Section.
Whenever an amount is withdrawn from such Accounts that is not greater than the
current Free Corridor Amount, such amount is considered to be (1) first, a
withdrawal of Regular Withdrawable Amounts, (2) next, a withdrawal of Preferred
Withdrawable Amounts, (3) next, a withdrawal of Free Withdrawable Amounts and
(4) lastly, a withdrawal of amounts other than the amounts in (1), (2) or (3)
above. However, no charge will be assessed with respect to the portion of the
withdrawal up to the current Free Corridor Amount.
SECTION 2.07C FREE CORRIDOR AMOUNT
The term "Free Corridor Amount" with respect to a Participant who has completed
five Participation Years means an amount equal to the excess, if any, of (i) 10%
of the sum of the Annuity Values of the Stock Account, Money Market Account and
the Guaranteed Interest Account over (ii) cumulative prior withdrawals made
pursuant to Section 2.07, 2.07A or 2.07B in the current Participation Year with
respect to the Participant.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE
As of the last day of each Participation Year before a Participant's Retirement
Date, Equitable will withdraw from the Guaranteed Interest Account, Stock
Account and Money Market Account maintained under the Contract, as to the
Contributions remitted with respect to such Participant, an annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i) the
Annuity Values of the Guaranteed Interest Account, Stock Account and Money
Market Account at the end of that Participation Year and (ii) any withdrawals
made from such Accounts pursuant to Section 2.07, 2.07A and 2.07B during that
Participation Year. The charge will be allocated between the Stock Account,
Money Market Account and Guaranteed Interest Account in proportion to the
Annuity Values of each such Account, at the end of the Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Values or Cash Values of such Participant's Account pursuant to Section 3.03, or
upon termination of such Account pursuant to Section 2.06 or Section 2.09 during
a Participation Year, Equitable will withdraw the administrative charge
described in this Section for the applicable part of that Participation Year.
SECTION 2.09 DEATH BENEFIT
If the Employer reports to Equitable, or if Equitable otherwise ascertains, that
a Participant has died while Accounts for such Participant are maintained under
the Contract and before such Participant's Retirement Date, Equitable, upon
receipt of due proof of such death, will pay in a single sum to the beneficiary
designated by such Participant to receive such payment the amount of death
benefit payable with respect to such Participant. The amount of the death
benefit with respect to a Participant at any time prior to the Retirement Date
is equal to the greater of (i) the sum of the Annuity Values of the Guaranteed
Interest Account, Stock Account and Money Market Account maintained under the
Contract for such Participant and (ii) the minimum death benefit with respect to
such Participant. Such minimum death benefit is the sum of all Contributions
made with respect to such Participant pursuant to Section 2.01 (before reduction
of any applicable taxes) less an adjustment for any withdrawals made pursuant to
Sections 2.07, 2.07A and 2.07B from the Accounts maintained under the Contract
for such Participant. Any such withdrawal will reduce the minimum death benefit
(as adjusted by any previous such withdrawal) by an amount which is in the same
proportion as the amount being withdrawn is to the Annuity Values then in the
Guaranteed Interest Account, Stock Account and Money Market Account maintained
under the Contract for such Participant. If, in accordance with the provisions
of Section 2.01, the cash value of an Annuity contract issued by Equitable,
which provides for a death benefit before retirement equal to the greater of the
contract cash value or an alternative amount based on premiums paid or
contributions
PF 14114CP Page 14
<PAGE>
PARTICIPANT'S ACCOUNT (continued)
made under the Annuity contract, is transferred to the Contract, such
alternative amount as of the date of transfer will be included in the "sum of
all Contributions" in lieu of the amount of cash value transferred, for purposes
of the death benefit under the Contract.
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefore, be withdrawn from the
Guaranteed Interest Account, Stock Account and Money Market Account maintained
with respect to such Participation under the Contract. Upon such payment,
Equitable will be released from any and all liability for payments with respect
to the Contributions from which the Annuity Values arose.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT
The term "Fixed Annuity Benefit" means an Annuity Benefit under which the
monthly payments with respect to a payee are payable in a specified dollar
amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT
The term "Variable Annuity Benefit" means an Annuity Benefit under which the
dollar amount of the monthly payments with respect to a payee may increase or
decrease depending on the investment experience of Separate Account A.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to the payee pursuant to Section 3.04. The amount
of the fourth and each subsequent payment under a Variable Annuity Benefit will
be equal to the number of Annuity Units with respect to such benefit, multiplied
by the Average New Annuity Unit Value for the second calendar month immediately
preceding the date of the payment. The fourth and subsequent annuity payments
under a Variable Annuity Benefit will not be increased or decreased in amount
because of mortality or expense experience. The number of Annuity Units with
respect to a benefit is the number determined by dividing the amount of the
first monthly payment under such benefit by the New Annuity Unit Value for the
Valuation Period which includes the due date of the first monthly payment.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS
As of a Participant's Retirement Date, provided such Participant is then living,
the Annuity Values of such Participant's Guaranteed Interest Account, Stock
Account and Money Market Account shall be applied to provide the Normal Form of
Annuity Benefit, unless such Participant elects (i) to receive the Cash Value of
such Account in a single sum or (ii) to apply such Annuity Value or Cash Value,
whichever is applicable pursuant to the first paragraph of Section 3.04, to
provide an Annuity Benefit on any other annuity form offered by Equitable, as
elected by the Participant, subject to Equitable's rules then in effect and any
applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.06 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Values of such Participant's Guaranteed
Interest Account, Stock Account and Money Market Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. Equitable may offer annuity forms other than the Life Annuity Form or
Joint Survivor Life Annuity Form.
PF 14114CP Page 15
<PAGE>
ANNUITY BENEFITS (continued)
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS
If a Participant elects pursuant to the first paragraph or third paragraph of
Section 3.03 to receive an Annuity Benefit in lieu of the Cash Values of the
Guaranteed Interest Account, Stock Account and Money Market Account, the amount
applied to provide the Annuity Benefit will be (i) the Annuity Values of such
Accounts if the payments under the annuity form elected are contingent upon the
survival of a person, or (ii) the Cash Values of such Account if the payments
under the annuity form elected are not contingent upon the survival of a person.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If such
amount is applied on or after the completion of five Participation Years with
respect to such Participant, or if such amount is applied on behalf of an
Existing Participant, the balance shall purchase the Annuity Benefit on the
basis of either (i) the Table of Guaranteed Annuity Payments shown below or (ii)
Equitable's current individual annuity rates for payment of proceeds, whichever
rates would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a New Participant, the
balance, after any applicable tax on annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown below or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Guaranteed Interest Account, Stock
Account and Money Market Account maintained for such Participant shall
terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form, are based on 3 1/4% interest and the 1971 ELAS Mortality Table.
The amounts of income initially provided under the Variable Annuity Benefit
payable on the Life Annuity Form and Joint and Survivor Life Annuity Form are
based on 1979 ELAS mortality and an Assumed Base Rate of Net Investment Return
of 3 1/2% or 5%, whichever applies pursuant to Section 1.16. Equitable may
change the monthly income amounts contained in the Tables of Guaranteed Annuity
Payments and the bases for determining such amounts, for new Participants, by at
least 90 days advance notice to the Contract Holder and by an amendment to the
Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/4% interest and the 1971 ELAS Mortality Table if
such annuity form provides for a Fixed Annuity Benefit, and on 1979 ELAS
Mortality and an Assumed Base Rate of Net Investment Income Return of 5% or
3 1/2%, whichever applies pursuant to Section 1.16, if such annuity form pro-
vides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS
Evidence of each payee's survival must be furnished to Equitable either by
personal endorsement of the check drawn for payment or by other means
satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incor-
PF 14114CP Page 16
<PAGE>
ANNUITY BENEFITS (continued)
rect, such benefit will not be invalidated, but an adjustment on the basis of
the correct information will be made in the amount of the benefit payments, or
any amount used to provide the benefit, or any combination thereof. Overpayments
by Equitable will be charged against and underpayments will be added to any
payments thereafter falling due under the Contract with respect to the payee.
The liability of Equitable with respect to a payee is limited to the correct
information and the actual amounts used to provide the benefits then in force
with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Upon election by a Participant pursuant to Section 3.03 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment of such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
PF 14114CP Page 17
<PAGE>
<TABLE>
<CAPTION>
ANNUITY BENEFITS (continued)
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM - 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
-------------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
AGE 60 61 62 63 64 65 66 67 68 69 70
--------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.58 4.64 4.70 4.76 4.82 4.88 4.94 5.00 5.05 5.11
61 4.55 4.62 4.68 4.74 4.81 4.87 4.93 5.00 5.06 5.12 5.18
62 4.58 4.65 4.72 4.78 4.85 4.92 4.99 5.05 5.12 5.19 5.25
63 4.61 4.68 4.75 4.82 4.89 4.97 5.04 5.11 5.18 5.25 5.32
64 4.64 4.71 4.79 4.86 4.94 5.01 5.09 5.17 5.24 5.32 5.40
65 4.67 4.74 4.82 4.90 4.98 5.06 5.14 5.22 5.30 5.38 5.47
66 4.69 4.77 4.85 4.93 5.02 5.10 5.18 5.27 5.35 5.44 5.53
67 4.72 4.80 4.88 4.97 5.05 5.14 5.23 5.31 5.40 5.50 5.59
68 4.74 4.82 4.91 5.00 5.09 5.18 5.27 5.36 5.45 5.55 5.65
69 4.76 4.85 4.94 5.03 5.12 5.22 5.31 5.41 5.50 5.60 5.71
70 4.78 4.87 4.96 5.06 5.16 5.26 5.36 5.45 5.56 5.66 5.76
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM - 100% CONTINUATION - ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
-------------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
AGE 60 61 62 63 64 65 66 67 68 69 70
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.31 4.35 4.39 4.43 4.47 4.51 4.55 4.59 4.63 4.67 4.71
61 4.35 4.39 4.43 4.48 4.52 4.56 4.61 4.65 4.69 4.73 4.78
62 4.39 4.43 4.48 4.52 4.57 4.61 4.66 4.71 4.75 4.80 4.85
63 4.42 4.47 4.52 4.57 4.62 4.67 4.72 4.77 4.82 4.87 4.92
64 4.46 4.51 4.57 4.62 4.67 4.72 4.77 4.83 4.88 4.94 4.99
65 4.50 4.56 4.61 4.66 4.72 4.78 4.83 4.89 4.95 5.01 5.07
66 4.54 4.60 4.65 4.71 4.77 4.83 4.89 4.95 5.01 5.08 5.14
67 4.58 4.64 4.70 4.76 4.82 4.88 4.95 5.01 5.08 5.15 5.22
68 4.62 4.68 4.77 4.81 4.87 4.95 5.01 5.08 5.15 5.22 5.29
69 4.65 4.72 4.78 4.85 4.92 4.99 5.06 5.14 5.22 5.29 5.37
70 4.69 4.76 4.83 4.90 4.97 5.05 5.12 5.20 5.28 5.36 5.45
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM - 100% CONTINUATION - ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
-------------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
AGE 60 61 62 63 64 65 66 67 68 69 70
-------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.19 5.23 5.27 5.31 5.34 5.39 5.42 5.46 5.50 5.54 5.58
61 5.23 5.27 5.31 5.35 5.39 5.43 5.47 5.52 5.56 5.60 5.64
62 5.27 5.31 5.35 5.39 5.44 5.48 5.53 5.57 5.62 5.67 5.71
63 5.31 5.35 5.39 5.44 5.49 5.53 5.58 5.63 5.68 5.73 5.78
64 5.34 5.39 5.44 5.48 5.53 5.59 5.64 5.69 5.74 5.79 5.85
65 5.38 5.43 5.48 5.53 5.58 5.64 5.69 5.75 5.80 5.86 5.92
66 5.42 5.47 5.52 5.58 5.63 5.69 5.75 5.81 5.87 5.93 5.99
67 5.45 5.51 5.56 5.62 5.68 5.74 5.80 5.87 5.93 6.00 6.06
68 5.49 5.55 5.61 5.67 5.73 5.80 5.86 5.93 6.00 6.06 6.14
69 5.53 5.59 5.65 5.71 5.78 5.85 5.92 5.99 6.06 6.13 6.21
70 5.56 5.63 5.69 5.76 5.83 5.90 5.97 6.05 6.13 6.21 6.29
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY
FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
FIXED ANNUITY BENEFIT INVESTMENT RETURN IS
--------------------- ---------------------------
3 1/2% 5%
------ ---
Age Males Females Males Females Males Females
--- ----- ------- ----- ------- ----- -------
<S> <C> <C> <C> <C> <C> <C>
60 5.88 4.99 5.43 4.80 6.36 5.70
61 6.04 5.11 5.57 4.90 6.50 5.81
62 6.21 5.24 5.72 5.01 6.65 5.91
63 6.38 5.38 5.88 5.13 6.81 6.03
64 6.57 5.53 6.05 5.25 6.97 6.15
65 6.77 5.68 6.23 5.39 7.16 6.28
66 6.98 5.84 6.43 5.54 7.35 6.43
67 7.19 6.01 6.64 5.70 7.56 6.58
68 7.42 6.20 6.87 5.87 7.79 6.76
69 7.67 6.39 7.11 6.06 8.03 6.95
70 7.93 6.61 7.38 6.27 8.30 7.15
</TABLE>
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average New Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
PF 14114CP Page 18
<PAGE>
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT
The Contract constitutes the entire Contract between the parties and the
provisions of the Contract alone will govern with respect to the rights and
obligations of Equitable. The provisions of the Contract will be applied
separately with respect to each Participant. Nothing in the enrollment form
referred to in Section 1.05, the Plan or trust agreement referred to in Section
4.10 nor any modification, amendment, or supplement to any such documents will
in any way be construed to enlarge, change, vary or in any other way affect the
obligations of Equitable as expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE
Equitable reserves the right to amend the Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
shall include, but not be limited to, the right to conform the Contract and any
certificate to reflect changes in the Code, or in regulations or published
rulings of the Internal Revenue Service, so that each such certificate will
continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY
The entire interest of any Participant under the Contract is nonforfeitable.
No interest of a Participant under the Contract may be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law, no such amount will in any way
be subject to any claim against such payee.
SECTION 4.04 PARTICIPATION IN SURPLUS
The Contract and all other contracts in the same class of contracts shall be
combined for the purpose of ascertaining the annual surplus of Equitable to be
apportioned to said contracts as a dividend, and the portion of any such
dividend that is to be allocated to the Contract shall be determined by
Equitable. The participation of this class of contracts in annual surplus is,
however, expected to be minimal. Any amount so allocated to the Contract shall
be payable as of January 1 of the calendar year in which a dividend is
apportioned and will be payable in cash and shall be equitably allocated by
Equitable to the Guaranteed Interest Accounts maintained hereunder for
Participants.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.05 BENEFICIARY
Each Participant, as of such Participant's Participation Date is to provide
Equitable with an initial designation of the beneficiary entitled to receive any
death benefit payable with respect to such Participant pursuant to Section 2.09.
The Participant may change such designation from time to time during such
Participant's lifetime and while Accounts for such Participants are being
maintained hereunder. Any such designation or change will be made by written
notice in a form satisfactory to Equitable. A change will, upon receipt at a
designated Equitable Office, take effect as of the time the written notice was
signed, whether or not the Participant is living on the date of receipt, but
without further liability as to any payment or other settlement made by
Equitable before receipt of such change.
Unless otherwise specified in the designation, if a Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant, and if more than one survive they
will share equally.
PF 14114CP Page 19
<PAGE>
GENERAL PROVISIONS (continued)
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.09 for which there is no designated beneficiary living at the death of
the Participant will be payable in a single sum to the children of the
Participant who survive the Participant, in equal shares, or should none
survive, then to the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.06 DISQUALIFICATION
In the event that an annuity purchased hereunder with respect to a Participant
fails to qualify as an Annuity as described in Section 1.03, Equitable shall
have the right, upon receiving notice of such fact before the Retirement Date,
to terminate participation with respect to such Participant under the Contract
and pay to such Participant the amount in the Account maintained with respect to
such Participant less a deduction for the appropriate part attributable to such
Participant of any Federal income tax payable by Equitable which would not have
been payable if such Participant had an Annuity under the Contract.
SECTION 4.07 FUTURE PARTICIPANTS
Equitable reserves the right at its sole discretion to curtail or prohibit
further enrollment as Participants under the Contract of any individuals who are
not currently participating under the Contract as of such date of curtailment or
prohibition.
SECTION 4.08 DEFERMENT
Payments by Equitable from the Participant's Guaranteed Interest Account
pursuant to the provisions of Section 2.06, Sections 2.07, 2.07A and 2.07B, and
Section 2.09, or any commuted payments arising from a Fixed Annuity Benefit
pursuant to Section 3.05, may be deferred for up to six months after receipt of
a written request for such surrender or withdrawal, or receipt of due proof of
death of the Participant, respectively, or receipt of due documentation for such
commutation payment pursuant to Section 3.05. Interest at the current Guaranteed
Interest Rate for such Participant's Guaranteed Interest Account will be allowed
on any such payment deferred for 30 days or more.
Except as provided in the Section, payments by Equitable from the Participant's
Stock Account or Money Market Account pursuant to the provisions of Section
2.06, Sections 2.07, 2.07A and 2.07B, and Section 2.09, or any commuted payments
arising from a Variable Annuity Benefit pursuant to Section 3.05, will be made
within seven days after receipt of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant, respectively,
or receipt of due documentation for such commutation payment pursuant to Section
3.05.
During any period when (i) the sale of securities or the determination of the
New Accumulation Unit Value or the Average New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or trading
on such Exchange is restricted, or (ii) the Securities and Exchange Commission
may by order permit postponement for the protection of persons having interests
in the Separate Accounts, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of Cash
Values and Annuity Values, arising from an amount in a Participant's Stock
Account or Money Market Account;
(b) to defer payment of any portion of the death benefit arising from an amount
in a Participant's Stock Account or Money Market Account;
(c) to defer the payment of any Variable Annuity Benefit under the Contract or
the application of any such Benefit to provide for any other payment called
for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to provide
any Annuity Benefit permitted under the Contract.
SECTION 4.09 ANNUAL NOTICE
At the end of each Participation Year up to and including the Retirement Date,
Equitable will furnish
PF 14114CP Page 20
<PAGE>
GENERAL PROVISIONS (continued)
the Participant with a notice showing as of a specified recent date (1) the
Annuity Value of the Guaranteed Interest Account, (2) the total number of
Accumulation Units credited to the Stock Account and Money Market Account, (3)
the New Accumulation Unit Values, (4) the sum of the Cash Values of the
Guaranteed Interest Account, Stock Account and Money Market Account and (5) the
amount of death benefit payable with respect to the Participant. After the
Retirement Date Equitable will notify the Participant of the number of Annuity
Units and the Average New Annuity Unit Value used in determining the amount of
each Variable Annuity Benefit payment, if any.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY
The sole responsibility of the Contract Holder is to serve as party to the
Contract. The Contract Holder will have no responsibility for the administration
of any Plan, for payments to the Guaranteed Interest Account, Stock Account or
Money Market Account, or any payments or other distributions hereunder.
Equitable will deal with the Contract Holder in accordance with the terms and
conditions of the custodial agreement pursuant to which the Contract Holder
agreed to act as such and with the Contract and in such manner as the Contract
Holder and Equitable may agree, without the consent of any other person. Any
Employer making Contributions under the Contract shall be deemed to have adopted
and accepted the custodial agreement as part of the Plan with respect to which
such Contributions are made.
SECTION 4.11 AGE AND SEX
If the Annuitant's age or sex has been misstated, any benefits will be those
which would have been purchased at the correct age and sex. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
SECTION 4.12 RIGHT OF EMPLOYER
Notwithstanding any other provision of the Contract, except with respect to
amounts attributable to Contributions made by a Participant, if any, as
permitted under the terms of the Plan, the value of the Accounts maintained for
each Participant shall, until distributed to the Participant or his
beneficiaries in accordance with the terms of the Contract, remain solely the
property and rights of the Employer (without being restricted to the provision
of the benefits under the Plan) subject only to claims of the Employer's general
creditors. This Section shall be construed and administered in accordance with
Section 457(b)(6) of the Code and the regulations thereunder.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ [Signature unreadable] By /s/ Coy Eklund
--------------------------- ------------------------------
Chairman of the Board
Title Senior Vice President By /s/ Rodney L. Enochs
------------------------- ------------------------------
Vice President and Secretary
Dated May 27, 1982 Date of Issue May 1, 1982
------------------------- ----------------
At New York, NY
-------------------------
PF 14114CP Page 21
<PAGE>
Attached to and made part of Group Annuity Contract No. 11932CP
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective August 26, 1983, said contract and riders
are amended as follows:
1. with respect to Section 1.18A Cash Value - New Participants
a. the term "25 Participation Years" contained in the paragraph entitled
"No Withdrawal Charge" is changed to "12 Participation Years,"
b. the paragraph entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: Within the first three
Participation Years with respect to the Participant, the withdrawal charge
equals the lesser of (a) or (b) where:
(a) equals 6% of the sum of the Annuity Values of such Accounts.
(b) is an amount equal to the excess, if any, of (i) 8% of the cumulative
contributions made on behalf of such Participant over (ii) the
cumulative total of any withdrawal charges made pursuant to Sections
2.07 and 2.07A.
c. the paragraph entitled "Withdrawal Charge After Five Years" is
replaced by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After the completion of three
Participation Years with respect to the Participant, the withdrawal charge
equals the lesser of (a) or (b) where:
(a) equals
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Values of such Accounts
over (ii) the Free Corridor Amount defined in Section 2.07C.
(b) is the excess, if any, of (i) 8% of the total contributions made on
behalf of such Participant during the current Participation Year and
the preceding nine Participation Years over (ii) the cumulative total
of any withdrawal charges made pursuant to Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account and Money
Market Account will be in the same proportion as are the Annuity Values of such
Accounts.
PF 17004CP
<PAGE>
2. with respect to Section 1.18B Cash Value-Existing Participants
a. the term "20 Participation Years" contained in the paragraph entitled
"No Withdrawal Charge" is changed to "12 Participation Years,"
b. the paragraph entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: Within the first three
Participation Years with respect to the Participant, the withdrawal charge
equals the sum of the charges described in subsections (a) and (b) below;
provided, however, that such charge does not exceed the amount described in
subsection (c) below where:
(a) is an amount equal to 2% of any Preferred Withdrawable Amounts
(defined in Section 2.07B) that have not previously been withdrawn
pursuant to Sections 2.07 and 2.07B.
(b) is an amount equal to
6% during the first five Participation Years
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of any Regular Withdrawable Amounts (defined in Section 2.07B) that
have not previously been withdrawn pursuant to Sections 2.07 and
2.07B.
(c) is an amount equal to the sum of (a) above, and 6% of the excess, if
any, of (i) the sum of the Annuity Values of such Accounts over (ii)
the cumulative total of Equitable Transferred Funds made with respect
to the Participant that have not previously been withdrawn pursuant to
Sections 2.07 and 2.07B.
c. the paragraph entitled "Withdrawal Charge After Five Years" is replaced by
the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After three Participation Years have
been completed with respect to the Participant, Equitable (i) will first
withdraw, pursuant to Section 2.07B, the Free Corridor Amount defined in
Section 2.07C and (ii) next withdraw the remaining portion of the sum of
the Annuity Values of such Accounts. A withdrawal charge will apply to the
amount in (ii) above, and will equal the sum of the charges described in
subsections (a) and (b) of the preceding subsection: provided, however,
that such charge will not exceed an amount equal to the lesser of the
charges defined in (d) and (e) below:
(d) is an amount equal to the sum of (a) in the preceding subsection and
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess, if any, of (i) the sum of the Annuity Values of such
Accounts (after withdrawal of the Free Corridor Amount) over (ii) the
cumulative total of Equitable Transferred Funds made on behalf of the
Participant that have not previously been withdrawn pursuant to
Sections 2.07 and 2.07B.
(e) is an amount equal to the excess, if any, of (1) the sum of (i) 2% of
the first $10,000 of Equitable Transferred Funds made during the
current Participation Year and the preceding nine Participation Years
and (ii) 8% of all other contributions (excluding Equitable
Transferred Funds) made on behalf of such Participant during the
current Participation Year and the preceding nine completed
Participation Years over (2) the cumulative total of any withdrawal
charges made pursuant to Sections 2.07 and 2.07B.
The Cash Values of the Guaranteed Interest Account, Stock and Money Market
Account will be in the same proportion as are the Annuity Values of such
Accounts.
3. with respect to Section 2.07A Partial Withdrawals - New Participants
a. the term "25 Participation Years" contained in the provision entitled
"No Withdrawal Charge" is changed to "12 Participation Years;"
PF 17004CP
<PAGE>
b. the provision entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: If the Participant has not
completed three Participation Years under the Contract, such
withdrawal charge will equal the lesser of (a) or (b) where:
(a) is an amount equal to 6% of the total amount to be withdrawn from
the Accounts (including such charge) pursuant to this paragraph.
(b) is the excess, if any, of (i) 8% of the cumulative total of
Contributions made on behalf of such Participant over (ii) the
cumulative total of any prior withdrawal charges made pursuant to
this Section.
c. the provision entitled "Withdrawal Charge After Five Years" is
replaced by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After the completion of three
Participation Years with respect to the Participant, there will be no
withdrawal charge if the amount of partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.07C.
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts
an amount equal to the Free Corridor Amount, and(ii) then withdraw an
amount equal to the excess of the amount requested over the Free
Corridor Amount, plus a withdrawal charge. Such withdrawal charge will
be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn (including such charge) pursuant to (ii) of
the preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of
contributions made on behalf of such Participant during the
current Participation Year and the nine preceding Participation
Years over (ii) the cumulative total of any prior withdrawal
charges made pursuant to this Section.
4. with respect to Section 2.07B Partial Withdrawals - Existing Participants
a. the term "20 Participation Years" contained in the provision entitled
"No Withdrawal Charge" is changed to "12 Participation Years;"
b. the provision entitled "Withdrawal Charge Within First Five Years" is
replaced by the following:
WITHDRAWAL CHARGE WITHIN FIRST THREE YEARS: Within the first three
Participation Years with respect to the Participant, the withdrawal
charge equals the sum of the charges described in subsections (a),
(b), (c) and (d) below:
(a) With respect to any withdrawals of Preferred Withdrawable
Amounts, a charge of 2% of such withdrawals.
(b) With respect to any withdrawals of Free Withdrawable Amounts, no
charge.
(c) With respect to any withdrawals of Regular Withdrawable Amounts,
a charge of 6% of such withdrawals.
(d) With respect to any withdrawals of amounts other than the amounts
in (a), (b) and (c) above, no charge.
c. the provision entitled "Withdrawal Charge After Five Years" is
replaced by the following:
WITHDRAWAL CHARGE AFTER THREE YEARS: After the completion of three
Participation Years with respect to the Participant, there will be no
withdrawal charge if the amount of partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.07C.
PF 17004CP
<PAGE>
If the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (1) first withdraw from such Accounts an
amount equal to the Free Corridor Amount, and (2) then withdraw from such
Accounts an amount equal to the excess of the amount requested over the
Free Corridor Amount, plus a withdrawal charge. Such withdrawal charge will
equal the sum of the charges described in (a),(b) and (d) above plus with
respect to any withdrawals of Regular Withdrawable Amounts, a charge of
6% during Participation Years 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
provided, however, that in no event will such charge exceed an amount equal
to the following: The excess, if any, of (1) the sum of (i) 2% of the first
$10,000 of Equitable Transferred Funds made during the current
Participation Year and the preceding nine Participation Years and (ii) 8%
of all other Contributions (excluding Equitable Transferred Funds) made on
behalf of the Participant during the current Participation Year and the
preceding nine completed Participation Years over (2) the cumulative total
of any prior withdrawal charges made pursuant to this Section.
Whenever an amount is withdrawn from such Accounts that is not greater than
the current Free Corridor Amount, such amount is considered to be (1)
first, a withdrawal of Regular Withdrawable Amounts, (2) next, a withdrawal
of Preferred Withdrawable Amounts, (3) next, a withdrawal of Free
Withdrawable Amounts, and (4) lastly, a withdrawal of amounts other than
the amounts in (1), (2), or (3) above. However, no charge will be assessed
with respect to the portion of the withdrawal up to the current Free
Corridor Amount.
5. with respect to Section 2.07C Free Corridor Amount, the term "five
Participation years" is changed to "three Participation Years."
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ [Signature Unreadable] By /s/ John B. Carb
---------------------------------- -------------------------------------
President
Title Vice President By /s/ Rodney L. Enochs
------------------------------ -------------------------------------
Vice President and Secretary
Dated Aug. 19, 1983 Date of Issue
------------------------------ --------------------------
At New York, N.Y.
---------------------------------
PF 17004CP
<PAGE>
Attached to and made part of Group Annuity Contract No. 11932CP
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective December 12, 1983, said contract and riders
are amended as follows:
1. all references in the contract to the Annuitant's sex are deleted.
2. the phrase "3 1/4% interest and the 1971 ELAS Mortality Table" and the
phrase "1979 ELAS Mortality" appearing in Section 3.04 Amount of Annuity
Benefits shall be changed to "3 1/2% interest and the 1983 Individual
Annuity Mortality Table adjusted to a unisex basis based on a 50-50 split
of males and females" and "the projected 1983 Basic Table adjusted to a
unisex basis based on a 50-50 split of males and females," respectively,
wherever they appear.
3. the Tables of Guaranteed Annuity Payments appearing in Section 3.05 Payment
of Annuity Benefits, are replaced by the following Tables.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM -- 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
Age
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.54 4.58 4.62 4.66 4.70 4.74 4.77 4.81 4.84 4.88 4.91
61 4.62 4.67 4.71 4.76 4.81 4.84 4.88 4.91 4.95 4.99
62 4.72 4.76 4.81 4.85 4.90 4.94 4.98 5.02 5.06
63 4.81 4.86 4.91 4.96 5.01 5.06 5.10 5.14
64 4.92 4.97 5.02 5.06 5.13 5.17 5.22
65 5.03 5.09 5.15 5.20 5.26 5.31
66 5.15 5.21 5.27 5.33 5.39
67 5.28 5.34 5.40 5.47
68 5.41 5.48 5.55
69 5.56 5.63
70 5.71
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT
AND SURVIVOR LIFE ANNUITY FORM
100% CONTINUATION -- ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
Age
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.40 4.44 4.48 4.51 4.55 4.58 4.61 4.65 4.68 4.71 4.74
61 4.48 4.52 4.56 4.60 4.64 4.67 4.71 4.74 4.78 4.81
62 4.56 4.60 4.65 4.69 4.73 4.77 4.80 4.84 4.88
63 4.65 4.69 4.74 4.78 4.83 4.87 4.91 4.95
64 4.74 4.79 4.84 4.89 4.93 4.98 5.02
65 4.85 4.90 4.95 5.00 5.05 5.10
66 4.95 5.01 5.06 5.11 5.17
67 5.07 5.12 5.18 5.24
68 5.19 5.25 5.32
69 5.32 5.39
70 5.46
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT
AND SURVIVOR LIFE ANNUITY FORM
100% CONTINUATION -- ASSUMED BASE RATE OF
NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
Age
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.27 5.30 5.34 5.37 5.41 5.44 5.47 5.51 5.54 5.57 5.59
61 5.34 5.38 5.42 5.46 5.49 5.53 5.57 5.60 5.63 5.66
62 5.42 5.46 5.50 5.54 5.58 5.62 5.65 5.69 5.73
63 5.50 5.55 5.59 5.63 5.67 5.71 5.75 5.79
64 5.59 5.64 5.69 5.73 5.78 5.82 5.86
65 5.69 5.74 5.79 5.84 5.89 5.93
66 5.79 5.85 5.90 5.95 6.00
67 5.90 5.96 6.02 6.08
68 6.02 6.08 6.15
69 6.15 6.22
70 6.29
<CAPTION>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY
FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
FIXED ANNUITY BENEFIT INVESTMENT RETURN IS
------------------------------------ ----------------------------------------
Age 3 1/2% 5%
- ----------- ----------------- -----------------
<S> <C> <C> <C>
60 5.29 5.08 5.97
61 5.41 5.19 6.08
62 5.55 5.31 6.20
63 5.69 5.44 6.33
64 5.85 5.58 6.46
65 6.01 5.73 6.61
66 6.19 5.89 6.77
67 6.37 6.06 6.94
68 6.58 6.24 7.12
69 6.79 6.43 7.31
70 7.02 6.64 7.52
</TABLE>
PF17009CP
<PAGE>
This amendment was approved by the New York Insurance Department under an
accelerated procedure to assist employers in complying with the United
States Supreme Court decision in Arizona v. Norris.
The Department has reserved the right to require changes in this
amendment to comply with applicable New York law and regulations.
Agreed to by:
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ William H. Schroeder By /s/ John B. Carter
------------------------------- ----------------------------------
Title Vice President By /s/ Rodney L. Enochs
---------------------------- -----------------------------------
Vice President and Secretary
Dated 12/15/83 Date of Issue
-------------------------- -----------------------
At New York, N.Y.
------------------------------
PF17009CP
<PAGE>
Attached to and made part of Group Annuity Contract No. 11932CP
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective May 1, 1984, said contract and riders are
amended as follows:
1. The term "Stock Account" has been changed to "Stock Account, Balanced
Account and Aggressive Stock Account" wherever it appears except as
provided in items 4 and 5 of this rider.
2. The Section entitled "The Separate Accounts" is amended as follows:
a. the following Accounts have been added:
Name Investments
---- -----------
Separate Account J Primarily common stocks and other
equity-type investments, publicly
traded debt securities and short-term
money market instruments.
Separate Account K Primarily common stocks issued by
high quality small and intermediate size
companies with strong growth prospects.
b. The sentences
"Assets of the Separate Accounts attributable to the Contract shall be
subject to a charge at the rate of 1.75% a year, consisting of .15%
for investment management, .35% for financial accounting, .35% for the
annuity rate guarantee and the minimum death benefit, and .90% for
expenses and expense risk. The charge shall be made in connection with
(c) of the Net Investment Factor provision in Section 1.16"
are amended to read as follows:
i. for Participants with a Participation Date prior to May 1, 1984
"Assets of Separate Account A and Separate Account E attributable
to the Contract shall be subject to a charge at the rate of 1.75%
a year, consisting of .15% for investment management, .35% for
financial accounting, .35% for the annuity rate guarantee and the
minimum death benefit, and .90% for expenses and expense risk.
Assets of Separate Account J and Separate Account K attributable
to the Contract shall be subject to a charge at the rate of 1.75%
a year, for investment management, financial accounting, the
annuity rate guarantee and the minimum death benefit, and
expenses and expense risk. The percentage allocation of the
components of the charges for Separate Account J and Separate
Account K are not necessarily allocated in the same amounts as
for Separate Account A and Separate Account E. The charge shall
be made in connection with (c) of the Net Investment Factor
provision in Section 1.16."
ii. for Participants with a Participation Date on or after May 1,
1984
"Assets of the Separate Accounts attributable to the Contract
shall be subject to a charge at the rate of 1.75% a year, for
investment management, financial accounting, the annuity rate
guarantee and the minimum death benefit, and expenses and expense
risk. The charge shall be made in accordance with (c) of the Net
Investment Factor provision in Section 1.16."
<PAGE>
3. The Section entitled "New Accumulation Unit Value" is amended by the
addition of the following Accounts:
Account Value Date
------- ----- ----
Separate Account J $10.00 As of May 1, 1984
Separate Account K $10.00 As of May 1, 1984
4. The title and the first two sentences of the Section entitled "Stock and
Money Market Accounts" shall read as follows:
STOCK, BALANCED, AGGRESSIVE STOCK AND MONEY MARKET ACCOUNTS
Equitable maintains a Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account under the Contract for each Participant
with respect to whom Contributions are made. Any amount allocated to the
(1) Stock Account becomes part of Separate Account A, (2) Balanced Account
becomes part of Separate Account J, (3) Aggressive Stock Account becomes
part of Separate Account K, and (4) Money Market Account becomes part of
Separate Account E.
5. The Section entitled "Transfers Among Accounts" is amended to read as
follows:
TRANSFERS AMONG ACCOUNTS
At any time before a Participant's Retirement Date, such Participant, upon
written request, may transfer all or part of the amounts maintained for the
Participant to one or more of the other Accounts maintained for such
Participant as follows: (1) amounts in the Guaranteed Interest Account,
Stock Account, Balanced Account and Aggressive Stock Account may be
transferred among such Accounts; (2) amounts in the Money Market Account
may be transferred to the other Accounts. Such transfers will be made as of
the date Equitable receives such request, and will be subject to
Equitable's rules in effect at the time of transfer. No transfers are
permitted from the Guaranteed Interest Account, Stock Account, Balanced
Account or Aggressive Stock Account maintained for the Participant to the
Money Market Account. Notwithstanding the above, transfers to the Balanced
Account may be prohibited by Equitable upon 30 days written notice to the
Participant.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Agreed to by
UNITED STATES TRUST COMPANY
OF NEW YORK FOR THE EQUITABLE
By /s/ William H. Schroeder By /s/ John B. Carter
------------------------------ -----------------------------------
Vice President President
Title By /s/ Rodney L. Enochs
----------------------------- -----------------------------------
Vice President and Secretary
Dated 06/27/84 Date of Issue
----------------------------- -----------------------
At NY, NY
---------------------------------
PF17013CP
<PAGE>
Attached to and made part of Group Annuity Contract No. 11932CP between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective July 1, 1986, said contract and riders are
amended as follows:
1. With respect to PART I -- DEFINITIONS, the following section is added:
SECTION 1.14C PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means
an annuity not involving life contingencies issued by Equitable which does
not permit any prepayment of the unpaid principal.
2. With respect to SECTION 1.18 CASH VALUE, the following text replaces the
paragraphs under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
means an amount equal to the Annuity Values of such Accounts after the
earliest of the following occurrences:
(i) The later of (a) the completion of five Participation Years with respect
to such Participant and (b) the Participant's attainment of age 59 years and
6 months, or (ii) the completion of twelve Participation Years with respect
to such Participant or (iii) the Participant's attainment of age 55, the
completion of five Participation Years with respect to such Participant and
the receipt by Equitable of a properly completed settlement election form in
order to apply the Annuity Values to purchase an Eligible Annuity Certain,
defined in Section 1.14B, or (iv) the completion of three Participation Years
with respect to such Participant and the receipt by Equitable of a properly
completed settlement election form in order to apply the Annuity Values to
purchase a Period Certain Annuity, defined in Section 1.14C, where the
certain period of such Annuity is at least ten years. At all other times, the
sum of the Cash Values of such Accounts equals the sum of the Annuity Values
of such Accounts, less a withdrawal charge.
3. With respect to SECTION 2.07A PARTIAL WITHDRAWAL CHARGES, the following
paragraph replaces the paragraph under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, Equitable will withdraw from the Stock Account, Balanced
Account, Aggressive Stock Account, Money Market Account and Guaranteed
Interest Account an amount equal to the lesser of (a) the full amount of
partial withdrawal requested or (b) the sum of the Annuity Values of such
Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The later of (a) the completion of
five Participation Years with respect to such Participant and (b) such
Participant's attainment of age 59 years and 6 months, or (ii) the completion
of twelve Participation Years with respect to such Participant, or (iii) the
Participant's attainment of age 55, the completion of five Participation
years with respect to such Participant and the receipt by Equitable of a
properly completed settlement election form in order to apply the Annuity
Values to purchase an Eligible Annuity Certain, defined in Section 1.14B, or
(iv) the completion of three Participation Years with respect to such
Participant and the receipt by Equitable of a properly completed settlement
election form in order to apply the Annuity Values to purchase a Period
Certain Annuity, defined in Section 1.14C, where the certain period of such
Annuity is at least ten years. At all other times, the sum of the Cash Values
of such Accounts equals the sum of the Annuity Values of such Accounts, less
a withdrawal charge.
Agreed to by:
UNTIED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
OF NEW YORK SOCIETY OF THE UNITED STATES
By By
--------------------------------- ---------------------------------
President
Title By
------------------------------ ---------------------------------
Vice President and Secretary
Dated Date of Issue
------------------------------ ----------------------
At
--------------------------------
PF 17033CP
<PAGE>
Attached to and made part of Group Annuity Contract No. 11932CP between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, with respect to Certificates issued under the Contract
in the state of New York effective January 1, 1987, said Contract and riders are
amended as follows:
1. With respect to the front page, the third paragraph is replaced by the
following:
THE ANNUITY BENEFITS PAYABLE UNDER THE CONTRACT ARE FIXED ANNUITY BENEFITS.
2. With respect to PART I - DEFINITIONS, SECTION 1.12 NORMAL FORM is amended to
read as follows:
PART 1 - DEFINITIONS, SECTION 1.12 NORMAL FORM. The "Normal Form" of an
Annuity Benefit under the Contract means a Period Certain Annuity.
3. With respect to PART I - DEFINITIONS, SECTION 1.13 JOINT AND SURVIVOR LIFE
ANNUITY FORM is deleted.
4. With respect to PART I - DEFINITIONS, SECTION 1.14A LIFE ANNUITY FORM is
deleted.
5. With respect to PART I - DEFINITIONS, SECTION 1.14C PERIOD CERTAIN ANNUITY is
amended to read as follows:
SECTION 1.14C PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means
an annuity not involving life contingencies issued by Equitable that does not
permit any prepayment of the unpaid principal. Any installment payments shall
be made over a period which does not exceed the remaining life expectancy of
the Participant.
6. With respect to PART I - DEFINITIONS, SECTION 1.16 DEFINITIONS RELATING TO
THE SEPARATE ACCOUNTS, the first paragraph is replaced by the following:
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which there is a
sufficient degree of trading in the portfolio securities of a Separate
Account that the New Accumulation Unit Value might be materially affected by
changes in the value of the portfolio securities in a Separate Account, as
determined by the Separate Account Committee or, if there is no Committee, by
Equitable.
7. With respect to PART I - DEFINITIONS, SECTION 1.16 DEFINITIONS RELATING TO
THE SEPARATE ACCOUNTS, the last three paragraphs are deleted.
8. With respect to PART I - DEFINITIONS, SECTION 1.18 CASH VALUE, the following
text replaces the paragraphs under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
means an amount equal to the Annuity Values of such Accounts after the
earliest of the following occurrences:
(i) The later of (a) the completion of five Participation Years with respect
to such Participant and (b) the Participant's attainment of age 59 years and
6 months, or (ii) the completion of twelve Participation Years with respect
to such Participant, or (iii) the Participant's attainment of age 55, the
completion of five Participation Years with respect to such Participant and
the receipt by Equitable of a properly completed settlement election form in
order to apply the Annuity Values to purchase an Eligible Annuity Certain,
defined in Section 1.14B, or (iv) the completion of three Participation
PF 17062CP
<PAGE>
Years with respect to such Participant and the receipt by Equitable of a
properly completed settlement election form in order to apply the Annuity
Values to purchase a Period certain Annuity, defined in Section 1.14C, where
the certain period of such annuity is at least 10 years, or (v) the receipt
by Equitable of a properly completed settlement election form in order to
apply the Annuity Values to purchase a Period Certain Annuity, defined in
Section 1.14C, where the certain period of such annuity is at least 15
years. At other times, the sum of the Cash Values of such Accounts equals
the sum of the Annuity Values of such Accounts, less a withdrawal charge.
9. With respect to PART II - PARTICIPANT'S ACCOUNT, SECTION 2.07A PARTIAL
WITHDRAWAL CHARGES, the following paragraph replaces the paragraph under NO
WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
means an amount equal to the Annuity Values of such Accounts after the
earliest of the following occurrences:
(i) The later of (a) the completion of five Participation Years with respect
to such Participant and (b) the Participant's attainment of age 59 years and
6 months, or (ii) the completion of twelve Participation Years with respect
to such Participant, or (iii) the Participant's attainment of age 55, the
completion of five Participation Years with respect to such Participant and
the receipt by Equitable of a properly completed settlement election form in
order to apply the Annuity Values to purchase an Eligible Annuity Certain,
defined in Section 1.14B, or (iv) the completion of three Participation
Years with respect to such Participant and the receipt by Equitable of a
properly completed settlement election form in order to apply the Annuity
Values to purchase a Period Certain Annuity, defined in Section 1.14C, where
the certain period of such annuity is at least 10 years, or (v) the receipt
by Equitable of a properly completed settlement election from in order to
apply the Annuity is at least 10 years, or (v) the receipt by Equitable of a
properly completed settlement election form in order to apply the Annuity
Values to purchase a Period Certain Annuity, defined in Section 1.14C, where
the certain period of such annuity is at least 15 years. At other times,
Equitable will withdraw from such Accounts an amount equal to the amount of
partial withdrawal requested plus a withdrawal charge.
10. With respect to PART III - ANNUITY BENEFITS, SECTION 3.02 VARIABLE ANNUITY
BENEFIT is deleted.
11. With respect to PART III - ANNUITY BENEFITS, SECTION 3.03 ELECTION AND
COMMENCEMENT OF ANNUITY BENEFITS, is amended to read as follows:
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living, the
Annuity Values of such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
shall be applied to provide the Normal Form of Annuity Benefit, unless such
Participant elects to receive the Cash Value of such Account in a single sum
subject to Equitable's rules then in effect and any applicable requirements
under the Code.
Equitable will provide notice and election forms to a Participant not more
than six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract
pursuant to Section 2.06 before the Retirement Date, an election may be made
to receive an Annuity Benefit in lieu of the Cash Values of such
Participant's Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock and Money Market Account.
Equitable will have the right to require the Participant to furnish
pertinent facts and determinations to provide an Annuity Benefit, and will
be fully protected in relying on such information and need not inquire as to
the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04
and 3.05.
12. With respect to PART III - ANNUITY BENEFITS, SECTION 3.04 AMOUNT OF ANNUITY
BENEFITS is amended to read as follows:
PF 17062CP
<PAGE>
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If a Participant elects pursuant to
the first paragraph or third paragraph of Section 3.03 to receive an Annuity
Benefit in lieu of the Cash Values of the Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market
Account, the amount applied to provide the Annuity Benefit will be the Cash
Values of such Accounts.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If
such amount is applied with respect to such Participant, the balance shall
purchase the Annuity Benefit on the basis of either (i) the Table of
Guaranteed Annuity Payments shown below or (ii) Equitable's current
individual annuity rates for payment of proceeds, whichever rates would
provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant
to either of the preceding two paragraphs, the Guaranteed Interest Account,
Stock Account, Balanced Account, Aggressive Stock Account and Money Market
Account maintained for such Participant shall terminate. The Table of
Guaranteed Annuity Payments sets forth the minimum amount of monthly income
that $1,000 of Annuity Value will provide under the Contract, as indicated,
as a Period Certain Annuity. The amounts of income provided under the Fixed
Annuity Benefit payable on the Period Certain Annuity are based on 3 1/2%
interest. Equitable may change the monthly income amounts contained in the
Table of Guaranteed Annuity Payments and the basis for determining such
amounts, for new Participants, by at least 90 days advance notice to the
Contract Holder and by an amendment to the Contract.
Amounts required for periods certain not shown in the Table will be
calculated by Equitable on 3 1/2% interest.
13. With respect to PART III - ANNUITY BENEFITS, SECTION 3.05 PAYMENT OF ANNUITY
BENEFITS is amended to read as follows:
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's survival
must be furnished to Equitable either by personal endorsement of the check
drawn for payment or by other means satisfactory to Equitable. If a benefit
payable under the Contract was based on information that is subsequently
found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the
amount of the benefit payments, or any amount used to provide the benefit,
or any combination thereof. Overpayments by Equitable will be charged
against and underpayments will be added to any payments thereafter falling
due under the Contract with respect to the payee. The liability of
Equitable with respect to a payee is limited to the correct information and
the actual amounts used to provide the benefits then in force with respect
to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled
to receive any payment under the Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii) another person or
an institution is then maintaining or has custody of such payee, and (iii)
no guardian, committee, or other representative of the estate of such payee
has been appointed, Equitable may make the payments (in the case of a minor,
at a rate not exceeding $50 a month) to such other person or institution,
and will thereupon be fully discharged from all liability with respect
thereto.
Upon election by a Participant pursuant to Section 3.03 of a Period Certain
Annuity, such Participant may designate (with the right to change such
designation) a person or persons to receive any payments that become due
after the death of the Participant.
The payee may designate (with the right to change such designation and
without the concurrence for any other person) a person or persons to receive
any payments or installments payable after such payee's death, if the
absence of such a designation would result in a single sum payment to such
payee's executors or administrators in accordance with the following
paragraph.
If at the death of any payee there is no designated person living entitled
to receive any remaining payments or installments, Equitable will pay in a
single sum to such payee's executors or administrators the commuted value of
any remaining payments or installments.
PF 17062CP
<PAGE>
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000 or would result in
an initial payment of less than $20, Equitable may pay the amount to the
payee in a single sum instead of applying it under the annuity form elected
pursuant to Section 3.03.
TABLE OF GUARANTEED ANNUITY PAYMENTS
FIXED ANNUITY BENEFIT PAYABLE ON THE
PERIOD CERTAIN ANNUITY
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
PERIOD CERTAIN PERIOD CERTAIN
(IN YEARS) MONTHLY INCOME (IN YEARS) MONTHLY INCOME
- ------------------------- ------------------------ ----------------------- -----------------------
<S> <C> <C> <C>
1 $84.65 11 $ 9.09
2 $43.06 12 $ 8.46
3 $29.19 13 $ 7.94
4 $22.27 14 $ 7.49
5 $18.12 15 $ 7.10
6 $15.35 16 $ 6.76
7 $13.38 17 $ 6.47
8 $11.90 18 $ 6.20
9 $10.75 19 $ 5.97
10 $ 9.83 20 $ 5.75
</TABLE>
Any ? change, revocation, or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
14. With respect to PART IV - GENERAL PROVISIONS, SECTION 4.01 CONTRACT, a
fourth paragraph is added as follows:
? ? subject to the rules and regulations of the Deferred Compensation Board
of the State of New York, ? regulations are made a part of such Contract.
15. With respect to PART IV - GENERAL PROVISIONS, SECTION 4.08 DEFERMENT is
replaced by the following:
SECTION 4.08 DEFERMENT. Payments by Equitable from the Participant's
Guaranteed Interest Account pursuant to the provisions of Section 2.06,
Sections 2.07 and 2.07A, and Section 2.09, or any commuted payments arising
from a Fixed Annuity Benefit pursuant to Section 3.05, may be deferred for
up to six months after receipt of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant,
respectively, or receipt of due ? for such commutation payments pursuant to
Section 3.05. Interest at the current Guaranteed Interest Rate for such
Participant's Guaranteed Interest Account will be allowed on any such
payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the
Participant's Stock Account, Balanced Account, Aggressive Stock Account or
Money Market Account pursuant to the provisions of Section 2.06, Sections
2.07 and 2.07A and Section 2.09 will be made within seven days after receipt
of a written request for such surrender or withdrawal upon receipt of proof
of death of the Participant, respectively, or receipt of due documentation
for such commutation payment pursuant to Section 3.05.
During the period when (i) the sale of securities or the determination of
the New Accumulation Unit Value is not reasonably practicable because an
emergency, defined by the Securities and Exchange Commission, exists, or the
New
PF 17062CP
<PAGE>
York Stock Exchange is closed or trading on such Exchange is restricted, or
(ii) the Securities and Exchange Commission may by order permit postponement
for the protection of persons having interests in the Separate Accounts,
Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of
Cash Values and Annuity Values arising from an amount in a Participant's
Stock Account, Balanced Account, Aggressive Stock Account or Money
Market Account;
(b) to defer payment of any portion of the death benefit arising from an
amount in a Participant's Stock Account, Balanced Account, Aggressive
Stock Account or Money Market Account;
(c) in the event of (a) above, to defer application of such amounts to
provide any Annuity Benefit permitted under the Contract.
16. With respect to PART IV - GENERAL PROVISIONS, SECTION 4.09 ANNUAL NOTICE is
amended to read as follows:
SECTION 4.09 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Participant with a
notice showing as of a specified recent date (1) the Annuity Value of the
Guaranteed Interest Account, (2) the total number of Accumulation Units
credited to the Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account, (3) the New Accumulation Unit Values, (4) the sum
of the Cash Values of the Guaranteed Interest Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account and (5)
the amount of death benefit payable with respect to the Participant.
17. With respect to PART IV - GENERAL PROVISIONS, the following section is
added:
SECTION 4.09A QUARTERLY NOTICE. At least once during each calendar quarter
up to and including the Retirement Date, Equitable will furnish the
Participant with a notice showing the Annuity Values of the Guaranteed
Interest Account, Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
OF NEW YORK SOCIETY OF THE UNITED STATES
By By SPECIMEN
---------------------------------- ---------------------------------
President
Title By SPECIMEN
------------------------------- ----------------------------------
Vice President and Secretary
Dated Date of Issue
------------------------------- -----------------------
At
----------------------------------
PF 17062CP
<PAGE>
Participant:
Certificate Number:
THE EQUITABLE [LOGO] Issue Date:
Participation Date:
Retirement Date:
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O. New
York, New York 10116
AGREES
o To allocate the Contributions made to the Contract, after deduction of any
applicable taxes, to the Stock Account, Balanced Account, Aggressive Stock
Account, Money Market Account or the Guaranteed Interest Account maintained
for the Participant, in accordance with Sections 2.02 and 2.03, or in part
to any one, as directed by the Participant.
o To apply the amount in the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and the Guaranteed Interest Account at
the Retirement Date to provide the Participant with an Annuity Benefit or a
Cash Value Benefit if the Participant is then living, and
o To provide the Participant with the other rights and benefits of this
certificate.
These agreements are subject to the provisions of this certificate.
TEN DAYS TO EXAMINE CERTIFICATE - The Participant may terminate participation
under the Contract and cancel this certificate by returning it to Equitable
within ten days after receipt of it. Upon such cancellation, Equitable will
refund any Contribution made to Equitable on behalf of a Participant under the
Contract, plus or minus any investment gain or loss experienced in the
Participant's Stock Account, Balanced Account, Aggressive Stock Account, or
Money Market Account from the date such Contribution is allocated to such
Account to the date of such Cancellation.
/s/ Rodney L. Enochs /s/ John B. Carter
Vice President President
and Secretary
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN SEPARATE ACCOUNTS
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF
SEPARATE ACCOUNT A. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE
DAILY RATE OF INVESTMENT RETURN IN SEPARATE ACCOUNT A IS EQUIVALENT TO MORE THAN
6.75% OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75%
OR 5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT REFERRED TO IN SECTION 1.16 IS 5% OR 3 1/2%, RESPECTIVELY. THE DAILY
RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75% FOR
INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND
MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO
PROVIDE FOR TAXES.
THIS CONTRACT MAY NOT BE SUITABLE FOR A PARTICIPANT IF THE ONLY CONTRIBUTION TO
BE MADE ON SUCH PARTICIPANT'S BEHALF IS A SUBSTANTIAL SINGLE SUM CONTRIBUTION.
NO. 11936P AMENDED BY PF 17009P - PF 17013P - PF 17018P - PF 17022P
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CONTENTS
Part I - Definitions Page 2
Part II - Participant's Account Page 6
Part III - Annuity Benefits Page 9
Part IV - General Provisions Page 12
Equitable certifies that the Participant as named on page 3 is included under
the Group Annuity Contract designated on page 3 ("the Contract"), all pertinent
provisions of which are set forth below.
As described in Section 1.10, Equitable will determine, before the beginning of
each calendar year commencing after the period for which the Initial Guaranteed
Interest Rate is effective, the Yearly Guaranteed Interest Rate for the calendar
year for each Class of Participants, which shall not be lower than the Minimum
Guaranteed Interest Rate then in effect. Equitable, from time to time, may
declare a Guaranteed Interest Rate for a Class which exceeds the applicable
Yearly Guaranteed Interest Rate and a period for which such rate applies. A
Guaranteed Interest Rate is subject to annual administrative charges as
described in Section 2.08.
This certificate is valid only if participation under the Contract has not been
terminated as described in the Contract and is subject to amendment as may be
required pursuant to Section 4.02.
EARLY WITHDRAWAL CHARGE. If a Participant terminates participation at any time
after the earliest of the following occurrences: (i) The later of (a) the
attainment of age 59 years and six months or (b) the completion of five
Participation Years, or (ii) the completion of 12 Participation Years, the sum
of the Cash Values of the Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account as
provided in Section 1.18, will be equal to the sum of the Annuity Values of each
such Account. At other times, the sum of the Cash Values of such Accounts may be
less than the sum of the Annuity Values as provided in Section 1.18.
The Contract is issued in consideration of the payment to Equitable of the
Contributions made under the Contract.
The provisions on the following pages are part of this certificate.
PART I - DEFINITIONS
SECTION 1.01 EMPLOYER. The term "Employer" means (i) a State, political
subdivision of a State, or an agency or instrumentality of a State or political
subdivision of a State which has adopted a Plan, or (ii) a rural electric
cooperative, as defined in Section 457(d)(9)(B) of the Code, which has adopted a
Plan.
SECTION 1.02 PLAN. The term "Plan" means a program constituting an "Eligible
State Deferred Compensation Plan" meeting the requirements of Section 457(b) of
the Code which is established and maintained by an Employer for the benefit of
persons performing services for the Employer and their beneficiaries.
SECTION 1.03 ANNUITY. The term "Annuity" means an annuity purchased in
accordance with the terms of the Plan.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Section 3.04 of the Contract.
SECTION 1.05 PARTICIPANT. The term "Participant" means a person who has been
enrolled by Equitable under the Contract and for whom the Employer has purchased
an Annuity under the Contract. A person shall become enrolled under the Contract
upon receipt by Equitable of an enrollment form made available by Equitable and
completed in a manner satisfactory to Equitable. An Annuity is purchased for a
person enrolled under the Contract upon receipt by Equitable of an initial
Contribution by the Employer.
SECTION 1.06 CONTRIBUTION. The term "Contribution" means a payment made to
Equitable for a Participant with respect to an Annuity purchased for such
Participant under the Contract. Equitable is under no obligation to accept any
Contribution less than $20.00
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DEFINITIONS (CONTINUED)
SECTION 1.07 PARTICIPATION DATE. The term "Participation Date" with respect to a
Participant means the date as of which Equitable has enrolled such Participant
under the terms of the Contract.
SECTION 1.08 PARTICIPATION YEAR. The term "Participation Year" with respect to a
Participant means the twelve month period beginning on (i) the Participant Date,
and (ii) each anniversary thereof, unless otherwise agreed to in writing by
Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS. Except as provided in Section 1.10, the term
"Class of Participants" refers to all Participants whose Participation Date is
in the same calendar year.
SECTION 1.10 GUARANTEED INTEREST RATE. For each Guaranteed Interest Account, the
term "Guaranteed Interest Rate" means the effective annual rate at which
interest accrues on the amount in such Account. Interest accrues daily. The
Guaranteed Interest Rate will never be less than 3% per annum.
Equitable will from time to time establish and make available for new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new Class of Participants will be established effective with the
effective date of the occurrence of (i), (ii) or (iii) above or any combination
thereof.
For the calendar year next succeeding the end of the period for which an
established Initial Guaranteed Interest Rate is effective and for each
subsequent calendar year thereafter, Equitable will determine for each
established Class of Participants before the beginning of such calendar year a
Yearly Guaranteed Interest Rate for such Class, which Yearly Guaranteed Interest
Rate will not be lower than the effective Minimum Guaranteed Interest Rate
applicable for such Class for such year. For any established Class of
participants, Equitable reserves the right to change the Minimum Guaranteed
Interest Rate and the applicable period therefor, provided that any such Minimum
Guaranteed Interest Rate will not be lower than the Minimum Guaranteed Interest
Rate that would have been in effect in the absence of such change. Equitable
will notify each Participant in a Class in writing of the Yearly Guaranteed
Interest Rate or of any change in the Minimum Guaranteed Interest Rate at least
15 days prior to its effective date.
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine for
each established Class of Participants a Guaranteed Interest Rate for such Class
which exceeds the applicable Yearly Guaranteed Interest Rate. Equitable will
notify each Participant in writing of the applicable Guaranteed Interest Rate
and duration.
SECTION 1.11 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Participant is to attain the retirement age specified in the Participant's
enrollment form. Before the Retirement Date the Participant may elect to change
the Retirement Date to another Retirement Date, which may be any date after the
filing of the election (other than the 29th, 30th, or 31st day of any month). No
Retirement Date shall be earlier than the Retirement Date provided under the
Plan. Any election for such change must be made in writing by the Participant
and shall not take effect until received by Equitable at its Home Office.
SECTION 1.12 NORMAL FORM. The "Normal Form" of an Annuity Benefit under the
Contract means, (i) if the Participant has a living spouse at the Retirement
Date, the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity
Form with such spouse as the contingent annuitant (100% continuation), and (ii)
if the Participant does not have a living spouse at the Retirement Date, the
Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.13 JOINT AND SURVIVOR LIFE AND ANNUITY FORM. The term "Joint and
Survivor Life Annuity Form" means an annuity providing monthly payments while
either of two persons upon whose lives such payments depends is living. The
monthly amount to be continued when only one of the persons is living will be
equal to a percentage of the monthly amount that was paid while both were
living. This percentage may be 50% or any higher percentage up to and including
100%, as elected by the Participant. The payments commence on the date as of
which the Joint and Survivor Life Annuity Form is purchased and terminate with
the last payment due before the death of the survivor.
SECTION 1.14A LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
providing fixed monthly payments during the lifetime of the person upon whose
life such payments depend. The payments commence on the date as of which the
Life Annuity Form is purchased and terminate with the last payment due before
the death of such person.
SECTION 1.14B ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain"
means an annuity not involving life contingencies issued by Equitable which
extends beyond the Participant's attainment of age 59 years and six months and
does not permit any prepayment of the unpaid principal prior to the
participant's attainment of age 59 years and six months.
SECTION 1.15 THE SEPARATE ACCOUNTS. The term "Separate Account" means the
following separate investment accounts maintained by Equitable to which portions
of its assets have been allocated for the Contract and certain other contracts:
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DEFINITIONS (CONTINUED)
Name Investments
- ---- -----------
Separate Account A Primarily common stock and other equity-type
investments.
Separate Account E Primarily short-term money market instruments.
Separate Account J Primarily common stocks and other equity-type
investments, publicly traded debt securities
and short-term money market instruments.
Separate Account K Primarily common stocks issued by high
quality small and intermediate size companies
with strong growth prospects.
Equitable reserves the right to withdraw from any Separate Account and allocate
to another separate account assets determined by Equitable to be associated with
the class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid odd lots and
fractions. On and after the date of any such withdrawal the reference in the
Contract to such Separate Account shall mean such other separate account to
which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Accounts will, at most
times, consist primarily of the types of investments indicated above. Equitable
may, however, at its discretion invest the assets of any Separate Account in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including attorneys in its employ) as to what investments it
is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate any Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or a part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
any Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) run any Separate Account under direction of a committee,
and to discharge such committee at any time; and (iii) restrict or eliminate any
voting rights participants or other persons who have voting rights as to the
Separate Accounts.
Assets of the Separate Accounts attributable to the Contract shall be subject to
a charge at the rate of 1.75% a year, for investment management, financial
accounting, the annuity rate guarantee and the minimum death benefit, and
expenses and expense risk. The charge shall be made in accordance with (c) of
the Net Investment Factor provision in Section 1.16.
The assets of Separate Accounts are the property of Equitable; however, the
portion of the assets of each Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising out of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of the Separate Accounts in excess of such
reserves and contract liabilities to the general account of Equitable.
SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS.
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which there is a
sufficient degree of trading in the portfolio securities of a Separate Account
that the New Accumulation Unit Value or New Annuity Unit Value might be
materially affected by changes in the value of the portfolio securities in a
Separate Account, as determined by the Separate Account Committee or, if there
is no Committee, by Equitable.
NET INVESTMENT FACTOR: For each Separate Account the Net Investment Factor for a
Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment income
and the capital gains, realized or unrealized, credited to the assets of
the Separate Account in the Valuation Period for which the Net Investment
Factor is being determined, minus (3) the capital losses, realized or
unrealized, charged against such assets in such Valuation Period, minus (4)
any amount charged against the Separate Account in such Valuation Period
for taxes or for amounts set aside by Equitable as a reserve for taxes
attributable to the maintenance or operation of the Separate Account;
(b) is the value of the assets in the Separate Account at the close of business
of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial accounting, the annuity rate
guarantee and the minimum death benefit, and expenses and expense risk.
The value of the assets in the Separate Accounts, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
their fair value, as determined in accordance with accepted accounting practices
and applicable laws and regulations.
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DEFINITIONS (CONTINUED)
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the value
of the interest of a Participant's Stock Account, Balanced Account, Aggressive
Stock Account or Money Market Account on or before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Values for the
Separate Accounts have been established as follows:
Account Value Date
------- ----- ----
Separate Account A $10.00 As of November 1, 1968
Separate Account E $10.00 As of September 4, 1974
Separate Account J $10.00 As of May 1, 1984
Separate Account K $10.00 As of May 1, 1984
The New Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from the Separate Account A under A Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value for Separate Account
A has been established at $1.00 as of November 1, 1968. The Annuity Unit Value
for any subsequent Valuation Period is the New Annuity Unit Value for the
immediately preceding Valuation Period multiplied by the Adjusted Net Investment
Factor for such subsequent Valuation Period. The Adjusted Net Investment Factor
for a Valuation Period is the Net Investment Factor for such period reduced for
each calendar day in such subsequent Valuation Period by the Net Investment
Factor times (i) .00013366, if the Assumed Base Rate of Net Investment Return is
5%, and (ii) .00009425, if the Assumed Base Rate of Net Investment Return is
3 1/2%. The Assumed Base Rate of Net Investment Return shall be 5%, except in
states where the rate is not permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average Annuity Unit Value for Separate
Account A for a calendar month is equal to the average of the New Annuity Unit
Values for the Valuation Period s ending in such month.
SECTION 1.17 ANNUITY VALUE. The term "Annuity Value" with respect to a
Participant's Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account, means the amount in such
Accounts pursuant to Sections 2.02 and 2.03.
SECTION 1.18 CASH VALUE.
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value" with
respect to such Participant's Guaranteed Interest Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account means an
amount equal to the Annuity Values of such Accounts after the earliest of the
following occurrences:
(i) The later of (a) the completion of five Participation Years with respect
to such Participant and (b) the Participant's attainment of age 59 years
and six months, or (ii) the completion of 12 Participation Years with
respect to such Participant, or (iii) if the Participant has attained age
55, completed five Participation Years, and the Cash Values are to be
applied to purchase an Eligible Annuity Certain defined in Section 1.14B.
At other times, the sum of the Cash Values of such Accounts equal the sum
of the Annuity Values of such Accounts, less a withdrawal charge.
WITHDRAWAL CHARGE: The withdrawal charge equals the lesser of (a) or (b) where:
(a) equals
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Values of such
Accounts over (ii)the Free Corridor Amount defined in Section 2.07B.
(b) is the excess, if any, of (i) 8% of the total contributions made on behalf
of such Participants during the current Participation Year and the
preceding nine Participation Years over (ii) the cumulative total of any
withdrawal charges made pursuant to Sections 2.07 and 2.07A.
The Cash Values of the Guaranteed Interest Account, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account will be in the same
proportion as are the Annuity Values of such Accounts.
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of 1954, as
now or hereafter amended, or any corresponding provisions of prior or subsequent
United States revenue laws.
PART II - PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS. The Employer is to make Contributions from time to
time on such dates and in such amounts as determined by the Employer pursuant to
the terms of the Plan or, if the Employer has no Plan, as determined by the
Employer at its sole discretion. The Employer is to specify the Participant with
respect to whom each such Contribution is being made and the amount to be
allocated to the Stock Account, Balanced Account, Aggressive Stock Account,
Money Market Account and the Guaranteed Interest Account.
Each Contribution received by Equitable with respect to a Participant will,
before its allocation under the Contract, be reduced by the amount of any
applicable taxes, as determined by Equitable.
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PARTICIPANT'S ACCOUNT (CONTINUED)
Participant may, with Equitable's agreement, transfer to the Contract any amount
held with respect to such Participant under a Plan of the Employer or under an
"Eligible State Deferred Compensation Plan" meeting the requirements of Section
457(b) of the Code established and maintained by another employer ("Transferred
Funds"). Any Transferred Funds from a contract not issued by Equitable will,
before allocation under the Contract, be reduced by the amount of any applicable
taxes, as determined by Equitable.
Equitable will issue to each Participant an individual certificate setting forth
a statement in substance of the benefits to which such Participant is entitled
under the Contract.
SECTION 2.02 STOCK, BALANCED, AGGRESSIVE STOCK AND MONEY MARKET ACCOUNTS.
Equitable maintains a Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account under the Contract for each Participant with respect to
whom Contributions are made. Any amount allocated to the (1) Stock Account
becomes part of Separate Account A, (2) Balanced Account becomes part of
Separate Account J, (3) Aggressive Stock Account becomes part of Separate
Account K, and (4) Money Market Account becomes part of Separate Account E. Any
amount withdrawn from an Account will no longer be part of the applicable
Separate Account.
On any date when an amount is allocated to or withdrawn from an Account, the
Account will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the New Accumulation
Value for the appropriate Separate Account for the Valuation Period which
includes that date. The number of Units in an Account on any date is equal to
(i) the sum of any Accumulation Units that have been credited to the Account
minus (ii) the sum of any Accumulation Units that have been charged to that
Account. The amount in the Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account on any date is equal to the product of (i) the
number of Accumulation Units in such Account on that date and (ii) the New
Accumulation Unit Value for the appropriate Separate Account for the Valuation
Period which includes that date.
SECTION 2.03 GUARANTEED INTEREST ACCOUNT.
Equitable maintains a Guaranteed Interest Account under the Contract for each
Participant with respect to whom Contributions are made. Any amount allocated to
the Guaranteed Interest Account becomes part of the general assets of Equitable,
which support the guarantees of the Contract and other contracts.
The amount in a Guaranteed Interest Account at any time is equal to the sum of
all amounts that have been allocated to such Guaranteed Interest Account
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn pursuant to
Sections 2.07, 2.07A, and Section 2.08 from such Account, and transferred
pursuant to Section 2.05 from such Guaranteed Interest Account, and less the sum
of any annual administrative charges accrued but not made. Equitable guarantees
that the amount in a Guaranteed Interest Account at any time before the
Retirement Date will not be less than the sum of all amounts allocated to such
Account pursuant to Section 2.04 or transferred to such Account pursuant to
Section 2.05 and less the sum of all amounts that have been withdrawn from such
Account pursuant to Sections 2.07 and 2.07A, and transferred from such Account
pursuant to Section 2.05, all accumulated at 3% interest, compounded annually.
In any Participation Year in which no Contribution is allocated to a Guaranteed
Interest Account, the amount in such Account at the end of the Participation
Year shall not be less than the amount in such Account at the beginning of the
Participation Year plus the sum of all amounts transferred to such Account
pursuant to Section 2.05 less the sum of all amounts withdrawn and transferred
out of such Account pursuant to Sections 2.07, 2.07A, and Section 2.05, all
accumulated at 3% interest, compounded annually.
A Guaranteed Interest Account for a Participant terminates on the earliest of
(i) the Retirement Date, (ii) the death of the Participant, and (iii)
termination of participation pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO ACCOUNT. Each Contribution made with respect to a
Participant pursuant to Section 2.01, after deduction for any applicable taxes,
will be allocated, as of the date by which Equitable has received both such
Contribution and direction as to its allocation, to the Guaranteed Interest
Account, Stock Account, Balanced Account, Aggressive Stock Account or Money
Market Account or in part to each, at the sole direction of the Participant as
specified to Equitable, provided that the percentage allocated to each Account
is a whole number.
Any amount that a Participant has directed to be transferred to the Guaranteed
Interest Account, Stock Account, Balanced Account or Aggressive Stock Account
pursuant to Section 2.05 will be allocated as of the date of such transfer to
the appropriate Account maintained for such Participant.
Interest is allocated to the Guaranteed Interest Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05 and 2.07 and 2.07A, at the time of application of amounts in the
Guaranteed Interest Account to provide Annuity Benefits, upon termination of
participation pursuant to Section 2.06, and upon death of the Participant
pursuant to Section 2.09.
SECTION 2.05 TRANSFERS AMONG ACCOUNTS. At any time before a Participant's
Retirement Date, such Participant, upon written request, may transfer all or
part of the amounts maintained for the Participant to one or more of the other
Accounts maintained for such Participant as follows: (1) amounts in the
Guaranteed Interest Account, Stock Account, Balanced Account and Aggressive
Stock Account may be transferred among such Accounts; (2) amounts in the Money
Market Account may be transferred to the other Accounts. Such transfers will be
made as of the date Equitable receives such request, and will be subject to
Equitable's rules in effect at the time of transfer. No transfers are permitted
from the Guaranteed Interest Account, Stock Account, Balanced Account or
Aggressive Stock Account maintained for the Participant to the Money Market
Account. Notwithstanding the above, transfers to the Balanced Account may be
prohibited by Equitable upon 30 days written notice to the Participant.
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PARTICIPANT'S ACCOUNT (CONTINUED)
SECTION 2.06 TERMINATION OF PARTICIPATION. Subject to any applicable
restrictions under the terms of the Plan, on or before a Participant's
Retirement Date, such Participant may elect by written notice to terminate
participation under the Contract. Upon receipt of such notice, Equitable will
determine the Cash Value, as of the date Equitable received such notice, of the
Guaranteed Interest Account, Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account maintained for such Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Guaranteed Interest Account,
Stock Account, Balanced Account, Aggressive Stock Account and Money Market
Account, pay such Annuity Values and terminate such Participant's participation
under the Contract. This right may be exercised with respect to the Participant
only if both (i) no Contributions have been made under the Contract during the
last three completed Participation Years, and (ii) the sum of such Annuity
Values is $500 or less. Equitable reserves the right to terminate a
Participant's participation under the Contract if at least 120 days have elapsed
since the issue date shown on the certificate issued to such Participant under
the Contract and no Contributions have been made under the Contract with respect
to such Participant.
Upon payment of such Cash Values or Annuity Values, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Values or Annuity Values arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions under
the terms of the Plan, a Participant may elect by written notice to Equitable to
make a partial withdrawal from the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and the Guaranteed Interest Account
maintained for such Participant before such Participant's Retirement Date.
Upon withdrawal pursuant to Section 2.07 or 2.07A, Equitable will pay the lesser
of the sum of the Cash Values of such Accounts or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by such Participant. Unless instructed otherwise, the amount withdrawn
(including the amount of any withdrawal charge) will be allocated between such
Accounts in proportion to the Annuity Value of each such Account.
Upon any payment to a Participant pursuant to Section 2.07 or 2.07A, Equitable
will be released from any and all liability for payments with respect to the
Contributions from which the amounts so withdrawn arose.
Payments to the Participant pursuant to Section 2.07 or 2.07A may be deferred by
Equitable in accordance with the provisions of Section 4.08.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300. If a withdrawal from the Accounts made pursuant to Sections
2.07 or 2.07A would result in total Annuity Values of less than $500, Equitable
will so advise the Participant and reserves the right to withdraw the Annuity
Values of the Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account, pay the Annuity Values of
such Accounts to the Participant, and terminate such Participant's participation
under the contract.
SECTION 2.07A PARTIAL WITHDRAWAL CHARGES.
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, Equitable will withdraw from the Stock Account, Balanced Account,
Aggressive Stock Account, Money Market Account and Guaranteed Interest Account
an amount equal to the lesser of (a) the full amount of partial withdrawal
requested or (b) the sum of the Annuity Values of such Accounts, provided the
request for partial withdrawal is made after the earliest of the following
occurrences: (i) The later of (a) the completion of five Participation Years
with respect to such Participant and (b) such Participant's attainment of age 59
years and six months, or (ii) the completion of 12 Participation Years with
respect to such Participant, or (iii) if the Participant has attained age 55,
has completed five Participation Years, and the partial withdrawal is to be
applied to purchase an Eligible Annuity Certain defined in Section 1.14B. At
other times, Equitable will withdraw from such Accounts an amount equal to the
amount of partial withdrawal requested plus a withdrawal charge.
WITHDRAWAL CHARGE: There will be no withdrawal charge if the amount of partial
withdrawal requested is not greater than the Free Corridor Amount defined in
Section 2.07B.
If the amount of partial withdrawal requested is greater than the Free Corridor
Amount, Equitable will (i) first withdraw from such Accounts an amount equal to
the Free Corridor Amount, and (ii) then withdraw an amount equal to the excess
of the amount requested over the Free Corridor Amount, plus a withdrawal charge.
Such withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Participation Years 1, 2, 3, 4 and 5
5% during Participation Years 6, 7 and 8
4% during Participation Year 9
3% during Participation Year 10
2% during Participation Year 11
1% during Participation Year 12
0% thereafter
of the amount withdrawn (including such charge) pursuant to
(ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the cumulative total of contributions
made on behalf of such Participant during the current Participation Year and the
nine preceding Participation Years over (ii) the cumulative total of any prior
withdrawal charges made pursuant to this Section.
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PARTICIPANT'S ACCOUNT (CONTINUED)
SECTION 2.07B FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" with respect
to a Participant who has completed three Participation Years or attained age
59 1/2 means an amount equal to the excess, if any, of (i) 10% of the sum of the
Annuity Values of the Stock Account, Balanced Account, Aggressive Stock Account,
Money Market Account and the Guaranteed Interest Account over (ii) cumulative
prior withdrawals made pursuant to Section 2.07 or 2.07A in the current
Participation Year with respect to the Participant. With respect to a
Participant who has not completed three Participation Years or attained age
59 1/2, the Free Corridor Amount is zero.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year before a Participant's Retirement Date, Equitable will
withdraw from the Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account maintained under the Contract,
as to the Contributions remitted with respect to such Participant, an annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i) the
Annuity Values of the Guaranteed Interest Account, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account at the end of that
Participation Year and (ii) any withdrawals made from such Accounts pursuant to
Section 2.07 and 2.07A during that Participation Year. The charge will be
allocated between the Stock Account, Balanced Account, Aggressive Stock Account,
Money Market Account and Guaranteed Interest Account in proportion to the
Annuity Value of each such Account, at the end of the Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Values or Cash Values of such Participant's Account pursuant to Section 3.03, or
upon termination of such Account pursuant to Section 2.06 or Section 2.09 during
a Participation Year, Equitable will withdraw the administrative charge
described in this Section for the applicable part of that Participation Year.
SECTION 2.09 DEATH BENEFIT. If the Employer reports to Equitable, or if
Equitable otherwise ascertains, that a Participant has died while Accounts for
such Participant are maintained under the Contract and before such Participant's
Retirement Date, Equitable, upon receipt of due proof of such death, will pay in
a single sum to the beneficiary designated by such Participant to receive such
payment the amount of death benefit payable with respect to such Participant.
The amount of the death benefit with respect to a Participant at any time prior
to the Retirement Date is equal to the greater of (i) the sum of the Annuity
Values of the Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account maintained under the Contract
for such Participant and (ii) the minimum death benefit with respect to such
Participant. Such minimum death benefit is the sum of all Contributions made
with respect to such Participant pursuant to Section 2.01 (before reduction of
any applicable taxes) less an adjustment for any withdrawals made pursuant to
Sections 2.07 and 2.07A from the Accounts maintained under the Contract for such
Participant. Any such withdrawal will reduce the minimum death benefit (as
adjusted by any previous such withdrawal) by an amount which is in the same
proportion as the amount being withdrawn is to the Annuity Values then in the
Guaranteed Interest Account, Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account maintained under the Contract for such
Participant. If, in accordance with the provisions of Section 2.01, the cash
value of an Annuity contract issued by Equitable, which provides for a death
benefit before retirement equal to the greater of the contract cash value or an
alternative amount based on premiums paid or contributions made under the
Annuity contract, is transferred to the Contract, such alternative amount as of
the date of transfer will be included in the "sum of all Contributions" in lieu
of the amount of cash value transferred, for purposes of the death benefit under
the Contract.
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefore, be withdrawn from the
Guaranteed Interest Account, Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account maintained with respect to such Participant
under the Contract. Upon such payment, Equitable will be released from any and
all liability for payments with respect to the Contributions from which the
Annuity Values arose.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of Separate Account A.
The amount of the first, second, and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to the payee pursuant to Section 3.04. The amount
of the fourth and each subsequent payment under a Variable Annuity Benefit will
be equal to the number of Annuity Units with respect to such benefit, multiplied
by the Average New Annuity Unit Value for the second calendar
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ANNUITY BENEFITS (CONTINUED)
month immediately preceding the date of the payment. The fourth and subsequent
annuity payments under a Variable Annuity Benefit will not be increased or
decreased in amount because of mortality or expense experience. The number of
Annuity Units with respect to a benefit is the number determined by dividing the
amount of the first monthly payment under such benefit by the New Annuity Unit
Value for the Valuation Period which includes the due date of the first monthly
payment.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living, the
Annuity Values of such Participant's Guaranteed Interest Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account shall be
applied to provide the Normal Form of Annuity Benefit, unless such Participant
elects (i) to receive the Cash Value of such Account in a single sum or (ii) to
apply such Annuity Value or Cash Value, whichever is applicable pursuant to the
first paragraph of Section 3.04, to provide an Annuity Benefit on any other
annuity form offered by Equitable, as elected by the Participant, subject to
Equitable's rules then in effect and any applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.06 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Values of such Participant's Guaranteed
Interest Account, Stock Account, Balanced Account, Aggressive Stock Account and
Money Market Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS.
If a Participant elects pursuant to the first paragraph or third paragraph of
Section 3.03 to receive an Annuity Benefit in lieu of the Cash Values of the
Guaranteed Interest Account, Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account, the amount applied to provide the Annuity
Benefit will be (i) the Annuity Values of such Accounts if the payments under
the annuity form elected are contingent upon the survival of a person, or (ii)
the Cash Values of such Accounts if the payments under the annuity form elected
are not contingent upon the survival of a person.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If such
amount is applied on or after the completion of five Participation Years with
respect to such Participant, the balance shall purchase the Annuity Benefit on
the basis of either (i) the Table of Guaranteed Annuity Payments shown below or
(ii) Equitable's current individual annuity rates for payment of proceeds,
whichever rates would provide a larger benefit with respect to the payee. If
such current individual annuity rates are used, such Participant's certificate
will be replaced by an Equitable supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a Participant, the
balance, after any applicable tax on annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown below or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
maintained for such Participant shall terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form, are based on 3 1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on a 50-50 split of males and
females. The amounts of income initially provided under the Variable Annuity
Benefit payable on the Life Annuity Form and Joint and Survivor Life Annuity
Form are based on the projected 1983 Basic Table adjusted to a unisex basis
based on a 50-50 split of males and females and an Assumed Base Rate of Net
Investment Return of 3 1/2% or 5%, whichever applies pursuant to Section 1.16.
The Assumed Base Rate of Net Investment Return is 5% for certificates issued for
delivery in New York. Equitable may change the monthly income amounts contained
in the Tables of Guaranteed Annuity Payments and the basis for determining such
amounts, for new Participants, by at least 90 days advance notice to the
Contract Holder and by an amendment to the Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on a 50-50 split of males and
females if such annuity form provides for a Fixed Annuity Benefit, and on the
projected 1983 Basic Table adjusted to a unisex basis based on a 50-50 split of
males and females and an Assumed Base Rate of Net Investment Income Return of 5%
or 3 1/2%, whichever applies pursuant to Section 1.16, if such annuity form
provides for a Variable Annuity Benefit.
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ANNUITY BENEFITS (CONTINUED)
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's survival must
be furnished to Equitable either by personal endorsement of the check drawn for
payment or by other means satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Upon election by a Participant pursuant to Section 3.03 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
<TABLE>
<CAPTION>
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM - 100% CONTINUATION
(Minimum Monthly Income Per $1,000 of Annuity Value)
- ------- ------- ------ ------- ------ ------- -------- ------ ------- ------- ------ -------
Age 60 61 62 63 64 65 66 67 68 69 70
- ------- ------- ------ ------- ------ ------- -------- ------ ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.54 4.58 4.62 4.66 4.70 4.74 4.77 4.81 4.84 4.88 4.91
61 4.62 4.67 4.71 4.76 4.81 4.84 4.88 4.91 4.95 4.99
62 4.72 4.76 4.81 4.85 4.90 4.94 4.98 5.02 5.06
63 4.81 4.86 4.91 4.96 5.01 5.06 5.10 5.14
64 4.92 4.97 5.02 5.08 5.13 5.17 5.22
65 5.03 5.09 5.15 5.20 5.26 5.31
66 5.15 5.21 5.27 5.33 5.39
67 5.28 5.34 5.40 5.47
68 5.41 5.48 5.55
69 5.56 5.63
70 5.71
- ------- ------- ------ ------- ------ ------- -------- ------ ------- ------- ------ -------
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM-100% CONTINUATION-ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income Per $1,000 of Annuity Value)
- ------- ------- ------ ------- ------ ------- -------- ------ ------- ------- ------ -------
Age 60 61 62 63 64 65 66 67 68 69 70
- ------- ------- ------ ------- ------ ------- -------- ------ ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.40 4.44 4.48 4.51 4.55 4.58 4.61 4.65 4.68 4.71 4.74
61 4.48 4.52 4.56 4.60 4.64 4.67 4.71 4.74 4.78 4.81
62 4.56 4.60 4.65 4.69 4.73 4.77 4.80 4.84 4.88
63 4.65 4.69 4.74 4.78 4.83 4.87 4.91 4.95
64 4.74 4.79 4.84 4.89 4.93 4.98 5.02
65 4.85 4.90 4.95 5.00 5.05 5.10
66 4.95 5.01 5.06 5.11 5.17
67 5.07 5.12 5.18 5.24
68 5.19 5.25 5.32
69 5.32 5.39
70 5.46
- ------- ------- ------ ------- ------ ------- -------- ------ ------- ------- ------ -------
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM-100% CONTINUATION-ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income Per $1,000 of Annuity Value)
- ------- ------- ------ ------- ------ ------- -------- ------ ------- ------- ------ -------
Age 60 61 62 63 64 65 66 67 68 69 70
- ------- ------- ------ ------- ------ ------- -------- ------ ------- ------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.27 5.30 5.34 5.37 5.41 5.44 5.47 5.51 5.54 5.57 5.59
61 5.34 5.38 5.42 5.46 5.49 5.53 5.57 5.60 5.63 5.66
62 5.42 5.46 5.50 5.54 5.58 5.62 5.65 5.69 5.73
63 5.50 5.55 5.59 5.63 5.67 5.71 5.75 5.79
64 5.59 5.64 5.69 5.73 5.78 5.82 5.86
65 5.69 5.74 5.79 5.84 5.89 5.93
66 5.79 5.85 5.90 5.95 6.00
67 5.90 5.96 6.02 6.08
68 6.02 6.08 6.15
69 5.56 5.63
70 6.29
- ------- ------- ------ ------- ------ ------- -------- ------ ------- ------- ------ -------
</TABLE>
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ANNUITY BENEFITS (CONTINUED)
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
Age Fixed Annuity Benefit INVESTMENT RETURN IS
--- --------------------- ---------------------------
3 1/2% 5%
------ --
60 5.29 5.08 5.97
61 5.41 5.19 6.08
62 5.55 5.31 6.20
63 5.69 5.44 6.33
64 5.85 5.58 6.46
65 6.01 5.73 6.61
66 6.19 5.89 6.77
67 6.37 6.06 6.94
68 6.58 6.24 7.12
69 6.79 6.43 7.31
70 7.02 6.64 7.52
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average New Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. The Contract constitutes the entire Contract between the
parties and provisions of the Contract alone will govern with respect to the
rights and obligations of Equitable. The provisions of the Contract will be
applied separately with respect to each Participant.
Nothing in the enrollment form referred to in Section 1.05, the Plan or trust
agreement referred to in Section 4.10 nor any modification, amendment, or
supplement to any such documents will in any way be construed to enlarge,
change, vary or in any other way affect the obligations of Equitable as
expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE. Equitable reserves the right to amend the
Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such rights shall include, but not be limited
to, the right to conform the Contract and any certificate to reflect changes in
the Code, or in regulations or published rulings of the Internal Revenue Service
so that each such certificate will continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY. The entire interest of any
Participant under the Contract is nonforfeitable.
No interest of a Participant under the Contract may be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law, no such amount will in any way
be subject to any claim against such payee.
SECTION 4.04 PARTICIPATION IN SURPLUS. The Contract and all other contracts in
the same class of contracts shall be combined for the purpose of ascertaining
the annual surplus of Equitable to be apportioned to said contracts as a
dividend and the portion of any such dividend that is to be allocated to the
Contract shall be determined by Equitable. The participation of this class of
contracts in annual surplus is, however, expected to be minimal. Any amount so
allocated to the Contract shall be payable as of January 1 of the calendar year
in which a dividend is apportioned and will be payable in cash and shall be
equitably allocated by Equitable to the Guaranteed Interest Accounts maintained
hereunder for Participants.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.05 BENEFICIARY. Each Participant, as of such Participant's
Participation Date, is to provide Equitable with an initial designation of the
beneficiary entitled to receive any death benefit payable with respect to such
Participant pursuant to Section 2.09. The Participant may change such
designation from time to time during such Participant's lifetime and while
Accounts for such Participants are being maintained hereunder. Any such
designation or
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GENERAL PROVISIONS (CONTINUED)
change will be made by written notice in a form satisfactory to Equitable. A
change will, upon receipt at a designated Equitable Office, take effect as of
the time the written notice was signed, whether or not the Participant is living
on the date of receipt, but without further liability as to any payment or other
settlement made by Equitable before receipt of such change.
Unless otherwise specified in the designation, if a Participant has designated
two or more persons as beneficiary, the beneficiary will be the designated
person or persons who survive the Participant, and if more than one survive they
will share equally.
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.09 for which there is no designated beneficiary living at the death of
the Participant will be payable in a single sum to the children of the
Participant who survive the Participant, in equal shares, or should none
survive, then to the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.06 DISQUALIFICATION. In the event that an annuity purchased hereunder
with respect to a Participant fails to qualify as an Annuity as described in
Section 1.03, Equitable shall have the right, upon receiving notice of such fact
before the Retirement Date, to terminate participation with respect to such
Participant under the Contract and pay to such Participant the amount in the
Account maintained with respect to such Participant less a deduction for the
appropriate part attributable to such Participant of any Federal income tax
payable by Equitable which would not have been payable if such Participant had
an Annuity under the Contract
SECTION 4.07 FUTURE PARTICIPANTS. Equitable reserves the right at its sole
discretion to curtail or prohibit further enrollment as Participants under the
Contract of any individuals who are not currently participating under the
Contract as of such date of curtailment or prohibition.
SECTION 4.08 DEFERMENT. Payments by Equitable from the Participant's Guaranteed
Interest Account pursuant to the provisions of Section 2.06, Sections 2.07 and
2.07A, and Section 2.09, or any commuted payments arising from a Fixed Annuity
Benefit pursuant to Section 3.05, may be deferred for up to six months after
receipt of a written request for such surrender or withdrawal, or receipt of due
proof of death of the Participant, respectively, or receipt of due documentation
for such commutation payment pursuant to Section 3.05. Interest at the current
Guaranteed Interest Rate for such Participant's Guaranteed Interest Account will
be allowed on any such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the Participant's
Stock Account, Balanced Account, Aggressive Stock Account or Money Market
Account pursuant to the provisions of Section 2.06, Sections 2.07 and 2.07A, and
Section 2.09, or any commuted payments arising from a Variable Annuity Benefit
pursuant to Section 3.05, will be made within seven days after receipt of a
written request for such surrender or withdrawal, or receipt of due proof of
death of the Participant, respectively, or receipt of due documentation for such
commutation payment pursuant to Section 3.05.
During any period when (i) the sale of securities or the determination of the
New Accumulation Unit Value or the Average New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or trading
on such Exchange is restricted, or (ii) the Securities and Exchange Commission
may by order permit postponement for the protection of persons having interests
in the Separate Accounts, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of
Cash Values and Annuity Values, arising from an amount in a
Participant's Stock Account, Balanced Account, Aggressive Stock Account
or Money Market Account;
(b) to defer payment of any portion of the death benefit arising from an
amount in a Participant's Stock Account, Balanced Account, Aggressive
Stock Account or Money Market Account;
(c) to defer the payment of any Variable Annuity Benefit under the Contract
or the application of any such Benefit to provide for any other payment
called for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to
provide any Annuity Benefit permitted under the Contract.
SECTION 4.09 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Participant with a
notice showing as of a specified recent date (1) the Annuity Value of the
Guaranteed Interest Account, (2) the total number of Accumulation Units credited
to the Stock Account, Balanced Account, Aggressive Stock Account and Money
Market Account, (3) the New Accumulation Unit Values, (4) the sum of the Cash
Values of the Guaranteed Interest Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account and (5) the amount of death
benefit payable with respect to the Participant. After the Retirement Date
Equitable will notify the Participant of the number of Annuity Units and the
Average New Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY. The sole responsibility of the
Contract Holder is to serve as party to the Contract. The Contract Holder will
have no responsibility for the administration of any Plan, for payments to the
Guaranteed
NO. 11936P AMENDED BY PF 17009P - -------------
PF 17013P - PF 17018P - PF 17022P Page Thirteen
<PAGE>
Page Fourteen
-------------
GENERAL PROVISIONS (CONTINUED)
Interest Account, Stock Account, Balanced Account, Aggressive Stock Account or
Money Market Account, or any payments or other distributions hereunder.
Equitable will deal with the Contract Holder in accordance with the terms and
conditions of the custodial agreement pursuant to which the Contract Holder
agreed to act as such and with the Contract and in such manner as the Contract
Holder and Equitable may agree, without the consent of any other person. Any
Employer making Contributions under the Contract shall be deemed to have adopted
and accepted the custodial agreement as part of the Plan with respect to which
such Contributions are made.
SECTION 4.11 AGE. If the Annuitant's age has been misstated, any benefits will
be those which would have been purchased at the correct age. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
SECTION 4.12 RIGHT OF EMPLOYER. Notwithstanding any other provision of the
Contract, except with respect to amounts attributable to Contributions made by a
Participant, if any, as permitted under the terms of the Plan, the value of the
Accounts maintained for each Participant shall, until distributed to the
Participant or his beneficiaries in accordance with the terms of the Plan and
the Contract, remain solely the property and rights of the Employer (without
being restricted to the provision of benefits under the Plan) subject only to
claims of the Employer's general creditors. This Section shall be construed and
administered in accordance with Section 457(b)(6) of the Code and the
regulations thereunder.
This certificate was approved by the New York Insurance Department under an
accelerated procedure to assist employers in complying with the United States
Supreme Court decision in Arizona v. Norris. The Department has reserved the
right to require changes to comply with applicable New York law and regulations.
NO. 11936P AMENDED BY PF 17009P - -------------
PF 17013P - PF 17018P - PF 17022P Page Fourteen
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
For Participants in the State of New York, effective on your Participation Date,
we have amended your Certificate issued under Group Annuity Contract No. 11932CP
as follows:
1. With respect to the front page, the last paragraph is replaced by the
following:
THE ANNUITY BENEFITS PAYABLE UNDER THE CONTRACT ARE FIXED ANNUITY BENEFITS.
2. With respect to Page Three, the TABLE OF GUARANTEED VALUES, the Guaranteed
Paid-Up Monthly Annuity at Age 65 Values for the Fixed Benefit Life Annuity
Form With 10 Years of Payments Guaranteed is deleted.
3. With respect to PART I -- DEFINITIONS, SECTION 1.12 NORMAL FORM is amended
to read as follows:
PART I -- DEFINITIONS, SECTION 1.12 NORMAL FORM. The "Normal Form" of an
Annuity Benefit under the Contract means a Period Certain Annuity.
4. With respect to PART I -- DEFINITIONS, SECTION 1.13 JOINT AND SURVIVOR LIFE
ANNUITY FORM is deleted.
5. With respect to PART I -- DEFINITIONS, SECTION 1.14A LIFE ANNUITY FORM is
deleted.
6. With respect to PART I -- DEFINITIONS, SECTION 1.14C PERIOD CERTAIN ANNUITY
is amended to read as follows:
SECTION 1.14C PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity"
means an annuity not involving life contingencies issued by Equitable that
does not permit any prepayment of the unpaid principal. Any installment
payments shall be made over a period which does not exceed the remaining
life expectancy of the Participant.
7. With respect to PART I -- DEFINITIONS, SECTION 1.16 DEFINITIONS RELATING TO
THE SEPARATE ACCOUNTS, the first paragraph is replaced by the following:
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period.
8. With respect to PART I -- DEFINITIONS, SECTION 1.16 DEFINITIONS RELATING TO
THE SEPARATE ACCOUNTS, the last three paragraphs are deleted.
9. With respect to PART I -- DEFINITIONS, SECTION 1.18 CASH VALUE, the
following text replaces the paragraphs under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value"
means an amount equal to the Annuity Account Value after the earliest of
the following occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such Participant and (b) the Participant's attainment of age 59
years and 6 months, or (ii) the completion of twelve Participation Years
with respect to such Participant, or (iii) the Participant's attainment of
age 55, the completion of five Participation Years with respect to such
Participant and the receipt by Equitable of a properly completed settlement
election form in order to apply the Annuity Account Value to purchase an
Eligible Annuity Certain, defined in Section 1.14B, or (iv) the completion
of three Participation Years with respect to such Participant and the
receipt by Equitable of properly completed settlement election form in
order to apply the Annuity Account Value to purchase a Period Certain
Annuity, defined in Section 1.14C, where the
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<PAGE>
certain period of such annuity is at least 10 years, or (v) the receipt by
Equitable of a properly completed settlement election form in order to
apply the Annuity Account Value to purchase a Period Certain Annuity,
defined in Section 1.14C, where the certain period of such annuity is at
least 15 years. At other times, the Cash Value equals the Annuity Account
Value and less a withdrawal charge.
10. With respect to PART II -- PARTICIPANTS ACCOUNT, SECTION 2.07A PARTIAL
WITHDRAWAL CHARGES, the following paragraph replaces the paragraph under NO
WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free
Corridor Amount defined in Section 2.07B or (b) the Cash Value is equal to
the Annuity Account Value, pursuant to Section 1.18.
11. With respect to PART III -- ANNUITY BENEFITS, SECTION 3.02 VARIABLE ANNUITY
BENEFIT is deleted.
12. With respect to PART III -- ANNUITY BENEFITS, SECTION 3.03 ELECTION AND
COMMENCEMENT OF ANNUITY BENEFITS, is amended to read as follows:
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living,
the Annuity Account Value shall be applied to provide the Normal Form of
Annuity Benefit, unless such Participant elects to receive the Cash Value
of the certificate in a single sum, subject to Equitable's rules then in
effect and any applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more
than six months before such Participant's Retirement Date.
If a Participant elects to terminate Participation under the Contract
pursuant to Section 2.06 before the Retirement Date, an election may be
made to receive an Annuity Benefit in lieu of the Cash Value.
Equitable will have the right to require the Participant to furnish
pertinent facts and determinations to provide an Annuity Benefit, and will
be fully protected in relying on such information and need not inquire as
to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04
and 3.05.
13. With respect to PART III -- ANNUITY BENEFITS, SECTION 3.04 AMOUNT OF
ANNUITY BENEFITS is amended to read as follows:
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If a Participant elects pursuant
to the first paragraph or third paragraph of Section 3.03 to receive an
Annuity Benefit in lieu of the Cash Value, the amount applied to provide
the Annuity Benefit will be the Cash Value.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If
such amount is applied with respect to such Participant, the balance shall
purchase the Annuity Benefit on the basis of either (i) the Table of
Guaranteed Annuity Payments shown below or (ii) Equitable's current
individual annuity rates for payment of proceeds, whichever rates would
provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant
to either of the preceding two paragraphs, the amounts the Participant has
in the Divisions and the Annuity Account Value shall be zero.
The Table of Guaranteed Annuity Payments sets forth the minimum amount of
monthly income that $1,000 of Annuity
PF 17040P
<PAGE>
Account Value will provide under the Contract, as indicated, as a Period
Certain Amount. The amounts of income provided under the Fixed Annuity
Benefit payable on the Period Certain Annuity are based on 3 1/2% interest.
Equitable may change the monthly income amounts contained in the Table of
Guaranteed Annuity Payments and the basis for determining such amounts, for
new Participants, by at least 90 days advance notice to the Contract Holder
and by an amendment to the Contract.
Amounts required for periods certain not shown in the Table will be
calculated by Equitable on 3 1/2% interest.
14. With respect to PART III -- ANNUITY BENEFITS, SECTION 3.05 PAYMENT OF
ANNUITY BENEFITS, is amended to read as follows:
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's survival
must be furnished to Equitable either by personal endorsement of the check
drawn for payment or by other means satisfactory to Equitable. If a benefit
payable under the Contract was based on information that is subsequently
found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the
amount of the benefit payments, or any amount used to provide the benefit,
or any combination thereof. Over payments by Equitable will be charged
against and underpayments will be added to any payments thereafter falling
due under the Contract with respect to the payee. The liability of
Equitable with respect to a payee is limited to the correct information and
the actual amounts used to provide the benefits then in force with respect
to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled
to receive any payment under the Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii) another person or
an institution is then maintaining or has custody of such payee, and (iii)
no guardian, committee, or other representative of the estate of such payee
has been appointed, Equitable may make the payments (in the case of a
minor, at a rate not exceeding $50 a month) to such the person or
institution, and will thereupon be fully discharged from all liability with
respect thereto.
Upon election by a Participant pursuant to Section 3.03 of a Period
Certain Annuity, such Participant may designate (with the right to change
such designation) a person or persons to receive any payments that may
become due after the death of the Participant.
The payee may designate (with the right to change such designation and
without the concurrence for any other person) a person or persons to
receive any payments or installments payable after such payee's death, if
the absence of such a designation would result in a single sum payment to
such payee's executors or administrators in accordance with the following
paragraph.
If at the death of a payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a
single sum to such payee's executors or administrators the commuted value
of any remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate
basis.
If the amount to be applied hereunder is less than $2,00 or would result in
an initial payment of less than $20, Equitable may pay the amount to the
payee in a single sum instead of applying it under the annuity form elected
pursuant to Section 3.03.
PF 17040P
<PAGE>
TABLE OF GUARANTEED ANNUITY PAYMENTS
FIXED ANNUITY BENEFIT PAYABLE ON THE
PERIOD CERTAIN ANNUITY
(Minimum Monthly Income per $1,000 of Annuity Account Value)
PERIOD CERTAIN PERIOD CERTAIN
(IN YEARS) MONTHLY INCOME (IN YEARS) MONTHLY INCOME
---------- -------------- ---------- --------------
1 $84.65 11 $ 9.09
2 $43.06 12 $ 8.46
3 $29.19 13 $ 7.94
4 $22.27 14 $ 7.49
5 $18.12 15 $ 7.10
6 $15.35 16 $ 6.76
7 $13.38 17 $ 6.47
8 $11.90 18 $ 6.20
9 $10.75 19 $ 5.97
10 $ 9.83 20 $ 5.75
Any election, change, revocation, or designation shall be made, and will
take effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable
may defer payment in accordance with Section 4.08.
15. With respect to PART IV-- GENERAL PROVISIONS, SECTION 4.01 CONTRACT, a
fourth paragraph is added as follows:
The Contract is subject to the rules and regulations of the Deferred
Compensation Board of the State of New York, and said rules and regulations
are made a part thereof.
16. With respect to PART IV-- GENERAL PROVISIONS, SECTION 4.08 DEFERMENT is
replaced by the following:
SECTION 4.08 DEFERMENT. Payments by Equitable from the Participant's
Guaranteed Interest Division pursuant to the provisions of Section 2.06,
Sections 2.07, 207A and Section 2.09, or any commuted payments arising from
a Fixed Annuity Benefit pursuant to Section 3.05, may be deferred for up to
six months after receipt of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant,
respectively, or receipt of due documentation for such commutation payments
pursuant to Section 3.05. Interest at the current Guaranteed Interest Rate
will be allowed on any such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the amounts
the Participant has in the Separate Account Investment Division, pursuant
to the provisions of Section 2.06, Sections 2.07, 2.07A and Section 2.09,
will be made within seven days after receipt of a written request for such
surrender or withdrawal, or receipt of due proof of death of the
Participant, respectively, or receipt of due documentation for such
commutation payment pursuant to Section 3.05.
During any period when (i) the sale of securities or the determination of
the New Accumulation Unit Value is not reasonably practicable because an
emergency, defined by the Securities and Exchange Commission, exists, or
the New York Stock Exchange is closed or trading on such Exchange is
restricted, or (ii) the Securities and Exchange Commission may, by order,
permit postponement for the protection of persons having interests in the
Separate Account, Equitable reserves the right:
<PAGE>
(a) to defer determination of Cash Value or Annuity Account Value and
payment of Cash Value and Annuity Account Value, arising from an
Investment Division of the Separate Account;
(b) to defer payment of any portion of the death benefit arising from an
Investment Division of the separate Account; or
(c) in the event of (a) above, to defer application of such amounts to
provide any Annuity Benefit permitted under the Contract.
17. With respect to PART IV -- GENERAL PROVISIONS, SECTION 4.09 ANNUAL NOTICE
is amended to read as follows:
SECTION 4.09 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Participant with
a notice showing as of a specified recent date (1) the amount the
Participant has in the Guaranteed Interest Division, (2) the total number
of Accumulation Units the Participant has in the Stock Division, Balanced
Division, Aggressive Stock Division and Money Market Division, (3) the
Accumulation Unit Values, (4) the amount the Participant has in the Stock
Division, Balanced Division, Aggressive Stock Division and Money Market
Division, (5) the Cash Value and (6) the amount of death benefit payable
with respect to the Participant.
18. With respect to PART IV -- GENERAL PROVISIONS, the following section is
added:
SECTION 4.09A QUARTERLY NOTICE. At least once during each calendar quarter
up to and including the Retirement Date, Equitable will furnish the
Participant with a notice showing the Annuity Value in the Guaranteed
Interest Division, Stock Division, Balanced Division, Aggressive Stock
Division and Money Market Division.
Vice President
SPECIMEN and Secretary SPECIMEN President
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<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
For Participants in the State of New York, effective January 1, 1987, or your
Participation Date, whichever is the later, we have amended your Certificate
issued under Group Annuity Contract No. 11932CP as follows:
1. With respect to the front page, the last paragraph is replaced by the
following:
THE ANNUITY BENEFITS PAYABLE UNDER THE CONTRACT ARE FIXED ANNUITY
BENEFITS.
2. With respect to Page Three, the TABLE OF GUARANTEED VALUES, the Guaranteed
Paid-Up Monthly Annuity at Age 65 Values for the Fixed Benefit Life
Annuity Form With 10 Years of Payments Guaranteed is deleted.
3. With respect to PART I -- DEFINITIONS, SECTION 1.12 NORMAL FORM is amended
to read as follows:
PART 1 -- DEFINITIONS, SECTION 1.12 NORMAL FORM. The "Normal Form" of an
Annuity Benefit under the Contract means a Period Certain Annuity.
4. With respect to PART I -- DEFINITIONS, SECTION 1.13 JOINT AND SURVIVOR
LIFE ANNUITY FORM is deleted.
5. With respect to PART I -- DEFINITIONS, SECTION 1.14A LIFE ANNUITY FORM is
deleted.
6. With respect to PART I -- DEFINITIONS, SECTION 1.14C PERIOD CERTAIN
ANNUITY is amended to read as follows:
SECTION 1.14C PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity"
means an annuity not involving life contingencies issued by Equitable that
does not permit any prepayment of the unpaid principal. Any installment
payments shall be made over a period which does not exceed the remaining
life expectancy of the Participant.
7. With respect to PART I -- DEFINITIONS, SECTION 1.16 DEFINITIONS RELATING
TO THE SEPARATE ACCOUNTS, the first paragraph is replaced by the
following:
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which there is
a sufficient degree of trading in the portfolio securities of a Separate
Account that the New Accumulation Unit Value might be materially affected
by changes in the value of the portfolio securities in a Separate Account,
as determined by the Separate Account Committee or, if there is no
Committee, by Equitable.
8. With respect to PART I -- DEFINITIONS, SECTION 1.16 DEFINITIONS RELATING TO
THE SEPARATE ACCOUNTS, the last three paragraphs are deleted.
9. With respect to PART I -- DEFINITIONS, SECTION 1.18 CASH VALUE, the
following text replaces the paragraphs with NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market
Account means an amount equal to the Annuity Values of such Accounts after
the earliest of the following occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such Participant and (b) the Participant's attainment of age 59
years and 6 months, or (ii) the completion of twelve Participation Years
with respect to such Participant, or (iii) the Participant's attainment of
age 55, the completion of five Participation Years with respect to such
Participant and the receipt by Equitable of a properly completed
settlement election form in order to apply the Annuity Values to purchase
an Eligible Annuity Certain, defined in Section 1.14B, or (iv) the
completion of three Participation
<PAGE>
Years with respect to such Participant and the receipt by Equitable of a
properly completed settlement election form in order to apply the Annuity
Values to purchase a Period Certain Annuity, defined in Section 1.14C,
where the certain period of such annuity is at least 10 years, or (v) the
receipt by Equitable of a properly completed settlement election form in
order to apply the Annuity Values to purchase a Period Certain Annuity,
defined in Section 1.14C, where the certain period of such annuity is at
least 15 years. At other times, the sum of the Cash Values of such
Accounts equals the sum of the Annuity Values of such Accounts, less a
withdrawal charge.
10. With respect to PART II -- PARTICIPANT'S ACCOUNT, SECTION 2.07A PARTIAL
WITHDRAWAL CHARGES, the following paragraph replaces the paragraph under
NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market
Account means an amount equal to the Annuity Values of such Accounts after
the earliest of the following occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such Participant and (b) the Participant's attainment of age 59
years and 6 months, or (ii) the completion of twelve Participation Years
with respect to such Participant, or (iii) the Participant's attainment of
age 55, the completion of five Participation Years with respect to such
Participant and the receipt by Equitable of a properly completed
settlement election form in order to apply the Annuity Values to purchase
an Eligible Annuity Certain, defined in Section 1.14B, or (iv) the
completion of three Participation Years with respect to such Participant
and the receipt by Equitable of a properly completed settlement election
form in order to apply the Annuity Values to purchase a Period Certain
Annuity, defined in Section 1.14C, where the certain period of such
annuity is at least 10 years, or (v) the receipt by Equitable of a
properly completed settlement election form in order to apply the Annuity
Values to purchase a Period Certain Annuity, defined in Section 1.14C,
where the certain period of such annuity is at least 15 years. At other
times, Equitable will withdraw from such Accounts an amount equal to the
amount of partial withdrawal requested plus a withdrawal charge.
11. With respect to PART III -- ANNUITY BENEFITS, SECTION 3.02 VARIABLE
ANNUITY BENEFIT is deleted.
12. With respect to PART III -- ANNUITY BENEFITS, SECTION 3.03 ELECTION AND
COMMENCEMENT OF ANNUITY BENEFITS, is amended to read as follows:
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living,
the Annuity Values of such Participant's Guaranteed Interest Account,
Stock Account, Balanced Account, Aggressive Stock Account and Money Market
Account shall be applied to provide the Normal Form of Annuity Benefit,
unless such Participant elects to receive the Cash Value of such Account
in a single sum subject to Equitable's rules then in effect and any
applicable requirements under the Code.
Equitable will provide notice and election forms to a Participant not more
than six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract
pursuant to Section 2.06 before the Retirement Date, an election may be
made to receive an Annuity Benefit in lieu of the Cash Values of such
Participant's Guaranteed Interest Account, Stock Account, Balanced
Account, Aggressive Stock and Money Market Account.
Equitable will have the right to require the Participant to furnish
pertinent facts and determinations to provide an Annuity Benefit, and will
be fully protected in relying on such information and need not inquire as
to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04
and 3.05.
13. With respect to PART III -- ANNUITY BENEFITS, SECTION 3.04 AMOUNT OF
ANNUITY BENEFITS is amended to read as follows:
<PAGE>
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If a Participant elects pursuant
to the first paragraph or third paragraph of Section 3.03 to receive an
Annuity Benefit in lieu of the Cash Values of the Guaranteed Interest
Account, Stock Account, Balanced Account, Aggressive Stock Account and
Money Market Account, the amount applied to provide the Annuity Benefit
will be the Cash Values of such Accounts.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If
such amount is applied with respect to such Participant, the balance shall
purchase the Annuity Benefit on the basis of either (i) the Table of
Guaranteed Annuity Payments shown below or (ii) Equitable's current
individual annuity rates for payment of proceeds, whichever rates would
provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant
to either of the preceding two paragraphs, the Guaranteed Interest
Account, Stock Account, Balanced Account, Aggressive Stock Account and
Money Market Account maintained for such Participant shall terminate. The
Table of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the
Contract, as indicated, as a Period Certain Annuity. The amounts of income
provided under the Fixed Annuity Benefit payable on the Period Certain
Annuity are based on 3 1/2% interest. Equitable may change the monthly
income amounts contained in the Table of Guaranteed Annuity Payments and
the basis for determining such amounts, for new Participants, by at least
90 days advance notice to the Contract Holder and by an amendment to the
Contract.
Amounts required for periods certain not shown in the Table will be
calculated by Equitable on 3 1/2% interest.
14. With respect to PART III -- ANNUITY BENEFITS, SECTION 3.05 PAYMENT OF
ANNUITY BENEFITS, is amended to read as follows:
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's
survival must be furnished to Equitable either by personal endorsement of
the check drawn for payment or by other means satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated,
but an adjustment on the basis of the correct information will be made in
the amount of the benefit payments, or any amount used to provide the
benefit, or any combination thereof. Overpayments by Equitable will be
charged against and underpayments will be added to any payments thereafter
falling due under the Contract with respect to the payee. The liability of
Equitable with respect to a payee is limited to the correct information
and the actual amounts used to provide the benefits then in force with
respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee
entitled to receive any payment under the Contract is physically or
mentally incompetent to receive such payment or is a minor, (ii) another
person or an institution is then maintaining or has custody of such payee,
and (iii) no guardian, committee, or other representative of the estate of
such payee has been appointed, Equitable may make the payments (in the
case of a minor, at a rate not exceeding $50 a month) to such other person
or institution, and will thereupon be fully discharged from all liability
with respect thereto.
Upon election by a Participant pursuant to Section 3.03 of a Period
Certain Annuity, such Participant may designate (with the right to change
such designation) a person or persons to receive any payments that may
become due after the death of the Participant.
The payee may designate (with the right to change such designation and
without the concurrence for any other person) a person or persons to
receive any payments or installments payable after such payee's death, if
the absence of such a designation would result in a single sum payment to
such payee's executors or administrators in accordance with the following
paragraph.
If at the death of any payee there is no designated person living entitled
to receive any remaining payments or installments, Equitable will pay in a
single sum to such payee's executors or administrators the commuted value
of any remaining payments or installments.
<PAGE>
The commuted value of any such remaining payments will be determined on
the basis of compound interest at the rate utilized in the actuarial rate
basis.
If the amount to be applied hereunder is less than $2,000 or would result
in an initial payment of less than $20, Equitable may pay the amount to
the payee in a single sum instead of applying it under the annuity form
elected pursuant to Section 3.03.
TABLE OF GUARANTEED ANNUITY PAYMENTS
FIXED ANNUITY BENEFIT PAYABLE ON THE PERIOD CERTAIN ANNUITY
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
PERIOD CERTAIN PERIOD CERTAIN
(IN YEARS) MONTHLY INCOME (IN YEARS) MONTHLY INCOME
-------------- -------------- -------------- --------------
<S> <C> <C> <C>
1 $84.65 11 $9.09
2 $43.06 12 $8.46
3 $29.19 13 $7.94
4 $22.27 14 $7.49
5 $18.12 15 $7.10
6 $15.35 16 $6.76
7 $13.38 17 $6.47
8 $11.90 18 $6.20
9 $10.75 19 $5.97
10 $ 9.83 20 $5.75
</TABLE>
Any election, change, revocation, or designation shall be made, and will
take effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable
may defer payment in accordance with Section 4.08.
15. With respect to PART IV -- GENERAL PROVISIONS, SECTION 4.01 CONTRACT, a
fourth paragraph is added as follows:
The Contract is subject to the rules and regulations of the Deferred
Compensation Board of the State of New York, and said rules and
regulations are made a part thereof.
16. With respect to PART IV -- GENERAL PROVISIONS, SECTION 4.08 DEFERMENT is
replaced by the following:
SECTION 4.08 DEFERMENT. Payments by Equitable from the Participant's
Guaranteed Interest Account pursuant to the provisions of Section 2.06,
Sections 2.07 and 2.07A, and Section 2.09, or any commuted payments
arising from a Fixed Annuity Benefit pursuant to Section 3.05, may be
deferred for up to six months after receipt of a written request for such
surrender or withdrawal, or receipt of due proof of death of the
Participant, respectively, or receipt of due documentation for such
commutation payments pursuant to Section 3.05. Interest at the current
Guaranteed Interest Rate for such Participant's Guaranteed Interest
Account will be allowed on any such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the
Participant's Stock Account, Balanced Account, Aggressive Stock Account or
Money Market Account pursuant to the provisions of Section 2.06, Sections
2.07 and 2.07A and Section 2.09 will be made within seven days after
receipt of a written request for such surrender or withdrawal, or receipt
of due proof of death of the Participant, respectively, or receipt of due
documentation for such commutation payment pursuant to Section 3.05.
During any period when (i) the sale of securities or the determination of
the New Accumulation Unit Value is not reasonably practicable because an
emergency, defined by the Securities and Exchange Commission, exists, or
the New
<PAGE>
York Stock Exchange is closed or trading on such Exchange is restricted,
or (ii) the Securities and Exchange Commission may by order permit
postponement for the protection of persons having interests in the
Separate Accounts, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment
of Cash Values and Annuity Values, arising from an amount in a
Participant's Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account;
(b) to defer payment of any portion of the death benefit arising from an
amount in a Participant's Stock Account, Balanced Account,
Aggressive Stock Account or Money Market Account;
(c) in the event of (a) above, to defer application of such amounts to
provide any Annuity Benefit permitted under the Contract.
17. With respect to PART IV -- GENERAL PROVISIONS, SECTION 4.09 ANNUAL NOTICE
is amended to read as follows:
SECTION 4.09 ANNUAL NOTICE. At the end of each Participation Year up to
and including the Retirement Date, Equitable will furnish the Participant
with a notice showing as of a specified recent date (1) the Annuity Value
of the Guaranteed Interest Account, (2) the total number of Accumulation
Units credited to the Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account, (3) the New Accumulation Unit Values,
(4) the sum of the Cash Values of the Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market
Account and (5) the amount of death benefit payable with respect to the
Participant.
18. With respect to PART IV -- GENERAL PROVISIONS, the following section is
added:
SECTION 4.09A QUARTERLY NOTICE. At least once during each calendar quarter
up to and including the Retirement Date, Equitable will furnish the
Participant with a notice showing the Annuity Values of the Guaranteed
Interest Account, Stock Account, Balanced Account, Aggressive Stock
Account and Money Market Account.
VICE PRESIDENT
SPECIMEN AND SECRETARY SPECIMEN PRESIDENT
<PAGE>
Attached to and made part of Group Annuity Contract No. 11932CP between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, effective July 1, 1986, said contract and riders are
amended as follows:
1. With respect to PART I -- DEFINITIONS, the following section is added:
SECTION 1.14C PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity"
means an annuity not involving life contingencies issued by Equitable which
does not permit any prepayment of the unpaid principal.
2. With respect to SECTION 1.18 CASH VALUE, the following text replaces the
paragraphs under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to a Participant, the term "Cash Value"
with respect to such Participant's Guaranteed Interest Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market
Account means an amount equal to the Annuity Values of such Accounts after
the earliest of the following occurrences:
(i) The later of (a) the completion of five Participation Years with
respect to such Participant and (b) the Participant's attainment of age 59
years and 6 months, or (ii) the completion of twelve Participation Years
with respect to such Participant, or (iii) the Participant's attainment of
age 55, the completion of five Participation Years with respect to such
Participant and the receipt by Equitable of a properly completed settlement
election form in order to apply the Annuity Values to purchase an Eligible
Annuity Certain, defined in Section 1.14B, or (iv) the completion of three
Participation Years with respect to such Participant and the receipt by
Equitable of a properly completed settlement election form in order to
apply the Annuity Values to purchase a Period Certain Annuity, defined in
Section 1.14C, where the certain period of such Annuity is at least ten
years. At all other times, the sum of the Cash Values of such Accounts
equals the sum of the Annuity Values of such Accounts, less a withdrawal
charge.
3. With respect to SECTION 2.07A PARTIAL WITHDRAWAL CHARGES, the following
paragraph replaces the paragraph under NO WITHDRAWAL CHARGE:
NO WITHDRAWAL CHARGE: With respect to partial withdrawals requested by a
Participant, Equitable will withdraw from the Stock Account, Balanced
Account, Aggressive Stock Account, Money Market Account and Guaranteed
Interest Account an amount equal to the lesser of (a) the full amount of
partial withdrawal requested or (b) the sum of the Annuity Values for such
Accounts, provided the request for partial withdrawal is made after the
earliest of the following occurrences: (i) The later of (a) the completion
of five Participation Years with respect to such Participant and (b) such
Participant's attainment of age 59 years and 6 months, or (ii) the
completion of twelve Participation Years with respect to such Participant,
or (iii) the Participant's attainment of age 55, the completion of five
Participation years with respect to such Participant and the receipt by
Equitable of a properly completed settlement election form in order to
apply the Annuity Values to purchase an Eligible Annuity Certain, defined
in Section 1.14B, or (iv) the completion of three Participation Years with
respect to such Participant and the receipt by Equitable of a properly
completed settlement election form in order to apply the Annuity Values to
purchase a Period Certain Annuity, defined in Section 1.14C, where the
certain period of such Annuity is at least ten years. At all other times,
the sum of the Cash Values of such Accounts equals the sum of the Annuity
Values of such Accounts, less a withdrawal charge.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
OF NEW YORK SOCIETY OF THE UNITED STATES
By ________________________________ By ______________________________
President
Title _____________________________ By ______________________________
Vice President and Secretary
Dated _____________________________ Date of Issue ___________________
At ________________________________
PF 17033CP
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective July 1, 1986, or your Participation Date, whichever is the later, we
have amended your Certificate issued under Group Annuity Contract No. 11932CP as
follows:
1. With respect to PART I - Definitions, the following section is added:
SECTION 1.14C PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity"
means an annuity not involving life contingencies providing a fixed sum
payable for a fixed period. The payments commence on the date as of which
the Period Certain Annuity is purchased and terminate with the last payment
at the end of such period.
2. With respect to SECTION 1.18 CASH VALUES:
The term "an Eligible Annuity Certain defined in Section 1.14B" is replaced
by "an Eligible Annuity Certain defined in Section 1.14B, or (iv) the
completion of 3 Participation Years with respect to such Participant, and
the partial withdrawal is to be applied to purchase a Period Certain
Annuity, payable for not less than 10 years, as defined in Section 1.14C".
3. With respect to SECTION 2.07A PARTIAL WITHDRAWAL CHARGES:
The term "an Eligible Annuity Certain Defined in Section 1.14B" is replaced
by "an Eligible Annuity Certain defined in Section 1.14B, or (iv) the
completion of 3 Participation Years with respect to such Participant, and
the partial withdrawal is to be applied to purchase a Period Certain
Annuity, payable for not less than 10 years, as defined in Section 1.14C".
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17033P
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Your certificate issued under Group Annuity Contract No. 11932CP is amended as
follows:
With respect to the language on the front page, the following statement
is deleted:
"THIS CONTRACT MAY NOT BE SUITABLE FOR A PARTICIPANT IF THE ONLY
CONTRIBUTION TO BE MADE ON SUCH PARTICIPANT'S BEHALF IS A SUBSTANTIAL
SINGLE SUM CONTRIBUTION."
Vice President
SPECIMEN and Secretary SPECIMEN President
PF17031P
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O. New York,
New York 10016
Group Annuity Contract Between
The Equitable Life Assurance Society of the United States
and
United States Trust Company of New York
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
AGREES
o TO ALLOCATE the Contributions made to the Contract to the Stock Account,
Balanced Account, Aggressive Stock Account, Money Market Account or the Fixed
Income Account maintained for the Participant, in accordance with Sections
2.02 and 2.03, or in part to any one, as directed by the Owner,
o TO APPLY the amount in the Stock Account, Balanced Account, Aggressive Stock
Account, Money Market Account and the Fixed Income Account at the Retirement
Date to provide the Participant with an Annuity Benefit or a Cash Value
benefit if the Participant is then living, and
o TO PROVIDE the Owner with the other rights and benefits of this certificate.
The agreements are subject to the provisions of this certificate.
TEN DAYS TO EXAMINE CERTIFICATE - The Owner may terminate participation under
the Contract and cancel this certificate by returning it to Equitable within ten
days after receipt of it. Upon such cancellation, Equitable will refund any
Contribution made to Equitable on behalf of a Participant under the Contract,
plus or minus any investment gain or loss experienced in the Participant's Stock
Account, Balanced Account, Aggressive Stock Account or Money Market Account from
the date such Contribution is allocated to such Account to the date of such
cancellation.
SPECIMEN Vice President SPECIMEN President
and Secretary
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN SEPARATE ACCOUNTS
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF
SEPARATE ACCOUNT A. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE
DAILY RATE OF INVESTMENT RETURN IN SEPARATE ACCOUNT A IS EQUIVALENT TO MORE THAN
6.75% OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75%
OR 5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.16 IS 5% OR 3 1/2%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND
MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO
PROVIDE FOR TAXES.
NO. 11938C-C
<PAGE>
CONTENTS
Part I - Definitions Page 2
Part II - Participant's Account Page 5
Part III - Annuity Benefits Page 8
Part IV - General Provisions Page 11
Equitable certifies that the Participant as named on Page 3 of the Certificate
is included under the Group Annuity Contract ("the Contract") designated on Page
3 of the certificate, all pertinent provisions of which are set forth below.
The Contact is issued in consideration of the payment to Equitable of the
Contributions made under the Contract.
The provisions on the following pages are part of this certificate.
PART I - DEFINITIONS
SECTION 1.01 EMPLOYER. The term "Employer" means the employer adopting the Plan,
or any employer that assumes in writing the obligation of the Plan. A sole
proprietor is deemed to be his or her own Employer and a partnership is deemed
to be the Employer of each partner.
SECTION 1.02 PLAN. The term "Plan" means a defined contribution plan adopted by
the Employer that is intended to meet the requirements for qualification under
Section 401(a) of the Code.
SECTION 1.02A TRUSTEED PLAN. The term "Trusteed Plan" means a Plan under which
there is maintained a trust forming a part of the Plan (other than the trust
agreement described in Section 4.10 of this Contract).
SECTION 1.02B TRUSTEE. The term "Trustee" means the person or persons named as
trustee under a Trusteed Plan and such Trustee's successors.
SECTION 1.03 ANNUITY. The term "Annuity" means an annuity purchased in
accordance with the terms of the Plan and which is intended to meet the
requirements for qualification under Section 401(a) of the Code.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Section 3.04.
SECTION 1.05 PARTICIPANT. The term "Participant" means a person who has been
enrolled by Equitable under the Contract and for whom the Employer has purchased
an Annuity under the Contract. A person shall become enrolled under the Contract
upon receipt by Equitable of an enrollment form made available by Equitable and
completed in a manner satisfactory to Equitable.
SECTION 1.05A OWNER. The term "Owner" means the Owner of a certificate issued
under the Contract is as stated in the enrollment form, or later changed.
Notwithstanding any provisions in the certificate to the contrary, only the
Owner can exercise all the rights under the certificate while the Participant is
living. The Owner does not need the consent of anyone who has only a conditional
or future ownership interest in a certificate.
While the Participant is living, an Owner of a certificate issued on behalf of
the Participant may change the Owner by written notice satisfactory to
Equitable. The change will take effect on the date the Owner signs the notice,
except it will not apply to any payment Equitable makes or other actions
Equitable takes before Equitable receives the notice.
SECTION 1.06 CONTRIBUTION. The term "Contribution" means a payment made to
Equitable for a Participant with respect to an Annuity purchased for such
Participant under the Contract. Equitable is under no obligation to accept any
Contribution less than $20.00.
SECTION 1.07 PARTICIPATION DATE. The term "Participation Date" with respect to a
Participant means the date as of which Equitable has enrolled such Participant
under the terms of the Contract as shown on Page 3 of the certificate.
SECTION 1.08 PARTICIPATION YEAR. The term "Participation Year" with respect to
the Participant means the twelve month period beginning on (i) the Participation
Date and (ii) each anniversary thereof, unless otherwise agreed to in writing by
Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS. The term "Class of Participants" refers to
all Participants whose Participation Date is in the same calendar year.
11938C-C --------
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<PAGE>
Page Three
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DEFINITIONS (CONTINUED)
SECTION 1.10 GUARANTEED INTEREST RATE. With regard to a Fixed Income Account,
the term "Guaranteed Interest Rate" means the effective annual rate at which
interest accrues on the amounts in such Account. Interest accrues daily. The
Guaranteed Interest Rate will never be less than 4% per annum.
For each Class of Participants, Equitable will from time to time establish and
make available for new Participants (i) an Initial Guaranteed Interest Rate,
(ii) one or more minimum Guaranteed Interest Rates and (iii) the applicable
effective period(s) for such Rates. A new Class of Participants will be
established effective with the effective date of the occurrence of (i), (ii) or
(iii) above or any combination thereof.
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) Equitable may determine for each
established Class of Participants a Guaranteed Interest Rate and duration which
exceeds the applicable minimum Guaranteed Interest Rate. Equitable will notify
each Participant in writing of the applicable Guaranteed Interest Rate and
duration.
Equitable reserves the right to combine one or more Classes of Participants into
a single Class of Participants, provided such Classes were initially established
during a continuous period of time.
SECTION 1.11 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Participant attains the retirement age specified in the Participant's
enrollment form pursuant to the terms of the Plan. Before the Retirement Date,
the Participant may elect to change the Retirement Date to any other Retirement
Date permitted under the Plan, which may be any date after the filing of the
election other than the 29th, 30th, or 31st day of any month. Any election for
such change must be made in writing by the Participant and shall not take effect
until received by Equitable at its Processing Office.
SECTION 1.12 NORMAL FORM. The "Normal Form" of an Annuity Benefit under the
Contract means the Fixed Annuity Benefit payable on the Life Annuity Form as
defined in Sections 3.01 and 1.14, with 10 years of payments guaranteed.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depends is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by the Owner. The payments commence on the date as of which the Joint
and Survivor Life Annuity Form is purchased and terminate with the last payment
due before the death of the survivor.
SECTION 1.14 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
providing fixed monthly payments during the lifetime of the person upon whose
life such payments depend. The payments commence on the date as of which the
Life Annuity Form is purchased and terminate with the last payment due before
the death of such person.
SECTION 1.14A ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain"
means an annuity not involving life contingencies issued by Equitable, which
annuity may not provide for payments beyond the life expectancy of the
Participant or the joint and last survivor life expectancy of the Participant
and the Participant's designated beneficiary. Such annuity shall extend beyond
the Participant's attainment of 59 years and six months and shall not permit any
prepayment of principal prior to the Participant's attainment of age 59 years
and six months. Life expectancy and joint and last survivor life expectancy are
computed by the use of the return multiples contained in section 1.72-9 of the
regulations under the Code. If the Participant's spouse is not the designated
beneficiary, at least 50 percent of the present value of the amount available
for distribution under an Eligible Annuity Certain must be paid within the life
expectancy of the Participant.
SECTION 1.14B PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by Equitable that does not
permit any prepayment of the unpaid principal.
SECTION 1.15 THE SEPARATE ACCOUNTS. The terms "Separate Accounts" means the
following separate investment accounts maintained by Equitable to which portions
of its assets have been allocated for the Contract and certain other contracts:
Name Investments
---- -----------
Separate Account A Primarily common stock and other equity-type
investments
Separate Account E Primarily short-term money market instruments.
Separate Account J Primarily common stocks and other equity-type
investments, publicly traded debt securities and
short-term money market instruments.
Separate Account K Primarily common stocks issued by high quality
small and intermediate size companies with strong
growth prospects.
Equitable reserves the right to withdraw from any Separate Account and allocate
to another Separate Account assets determined by Equitable to be associated with
the class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid odd lots and
fractions. On and after the date of any such withdrawal the reference in the
Contract to such Separate Account shall mean such other Separate Account to
which the withdrawal assets were allocated.
11938C-C ----------
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<PAGE>
Page Four
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DEFINITIONS (CONTINUED)
It is contemplated that investments in the Separate Accounts will, at most
times, consist primarily of the types of investments indicated above. Equitable
may, however, at its discretion invest the assets of any Separate Account in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including attorneys in its employ) as to what investments it
is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate any Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or a part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
any Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) run any Separate Account under direction of a committee,
and to discharge such committee at any time; and (iii) restrict or eliminate any
voting rights of participants or other persons who have voting rights as to the
Separate Accounts.
Assets of the Separate Accounts attributable to the Contract shall be subject to
a charge at the rate of 1.75% a year, for investment management, financial
accounting, the annuity rate guarantee and the minimum death benefit, and
expenses and expense risk. The charge shall be made in accordance with (c) of
the Net Investment Factor provision in Section 1.16.
The assets of the Separate Accounts are the property of Equitable; however, the
portion of the assets of each Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising out of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of a Separate Account in excess of such
reserves and contract liabilities to another Separate Account or to the general
account of Equitable.
SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS.
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which there is a
sufficient degree of trading in the portfolio securities of a Separate Account
that the New Accumulation Unit Value or New Annuity Value might be materially
affected by changes in the value of the portfolio securities in a Separate
Account, as determined by the Separate Account Committee or, if there is no
committee, by Equitable.
NET INVESTMENT FACTOR: For each Separate Account the Net Investment Factor for a
Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment income
and the capital gains, realized or unrealized, credited to the assets of
the Separate Account in the Valuation Period for which the Net Investment
Factor is being determined, minus (3) the capital losses, realized or
unrealized, charged against such assets in such Valuation Period, minus (4)
any amount charged against the Separate Account in such Valuation Period
for taxes or for amounts set aside by Equitable as a reserve for taxes
attributable to the maintenance or operation of the Separate Account;
(b) is the value of the assets in the Separate Account at the close of business
of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial accounting, the annuity rate
guarantee and the minimum death benefit, and expenses and expense risk.
The value of the assets in the Separate Accounts, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
their fair value, as determined in accordance with accepted accounting practices
and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the value
of a Participant's interest in the Stock Account, Balanced Account, Aggressive
Stock Account or Money Market Account on or before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Values for the
Separate Accounts have been established as follows:
Account Value Date
------- ----- ----
Separate Account A $10.00 As of November 1, 1968
Separate Account E $10.00 As of September 4, 1974
Separate Account J $10.00 As of May 1, 1984
Separate Account K $10.00 As of May 1, 1984
The New Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from Separate Account A under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value for Separate Account
A has been established at $1.00 as of November 1, 1968. The Annuity Unit Value
for any subsequent Valuation
NO. 11938C-C ---------
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<PAGE>
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DEFINITIONS (CONTINUED)
Period is the New Annuity Unit Value for the immediately preceding Valuation
Period multiplied by the Adjusted Net Investment Factor for such subsequent
Valuation Period. The Adjusted Net Investment Factor for a Valuation Period is
the Net Investment Factor for such period reduced for each calendar day in such
subsequent Valuation Period by the Net Investment Factor times (i) .00013366, if
the Assumed Base Rate of Net Investment Return is 5%, and (ii) .00009425, if the
Assumed Base Rate of Net Investment Return is 3 1/2%. The Assumed Base Rate of
Net Investment Return shall be 5%, except in states where the rate is not
permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average New Annuity Unit Value for Separate
Account A for a calendar month is equal to the average of the New Annuity Unit
Values for the Valuation Periods ending in such month.
SECTION 1.17 ANNUITY VALUE. The term "Annuity Value" with respect to a
Participant's Fixed Income Account, Stock Account, Balanced Account, Aggressive
Stock Account and Money Market Account, means the amount in such Accounts
pursuant to Sections 2.02 and 2.03.
SECTION 1.18 CASH VALUE.
With respect to the Participant, the term "Cash Value" with respect to such
Participant's Fixed Income Account, Stock Account, Balanced Account, Aggressive
Stock Account, and Money Market Account means an amount equal to the greater of
(i) or (ii) below:
(i) the Annuity Value of such Accounts less 6% of the Contributions made during
the current and five prior Participation Years, which had not been
previously withdrawn pursuant to Section 2.07A.
(ii) the sum of (a) the Free Corridor Amount as defined in Section 2.07B and (b)
94% of (the Annuity Value of such Accounts less the Free Corridor Amount).
SECTION 1.18A CODE. The term "Code" means the Internal Revenue Code of 1954, as
now or hereafter amended.
PART II - PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS. The Employer or the Trustee is to make Contributions
from time to time on such dates and in such amounts as determined by the
Employer or the Trustee pursuant to the terms of the Plan. The Employer or the
Trustee is to specify the Participant with respect to whom each such
Contribution is being made and the amount to be allocated to the Stock Account,
Balanced Account, Aggressive Stock Account, Money Market Account and the Fixed
Income Account.
If the Plan provides, and subject to any Code restrictions, the Owner may, with
Equitable's agreement, transfer to the Contract any amount held with respect to
such Participant under a plan which is intended to meet the requirements for
qualification under Section 401(a) of the Code ("Transferred Funds").
Equitable will issue for each Participant an individual certificate setting
forth a statement in substance of the benefits to which such Participant is
entitled under the Contract.
SECTION 2.02 STOCK, BALANCED, AGGRESSIVE STOCK AND MONEY MARKET ACCOUNTS.
Equitable maintains a Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account under the Contract for each Participant with respect to
whom Contributions are made. Any amount allocated to the (1) Stock Account
becomes part of Separate Account A, (2) Balanced Account becomes part of
Separate Account J, (3) Aggressive Stock Account becomes part of Separate
Account K and (4) Money Market Account becomes part of Separate Account E. Any
amount withdrawn from an Account will no longer be part of the applicable
Separate Account.
On any date when an amount is allocated to or withdrawn from an Account, the
Account will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the New Accumulation
Unit Value for the appropriate Separate Account for the Valuation Period which
includes that date. The number of Units in an Account on any date is equal to
(i) the sum of any Accumulation Units that have been allocated to the Account
minus (ii) the sum of any Accumulation Units that have been withdrawn from that
Account. The amount in the Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account on any date is equal to the product of (i) the
number of Accumulation Units in such Account on that date and (ii) the New
Accumulation Unit Value for the appropriate Account for the Valuation Period
which includes that date.
SECTION 2.03 FIXED INCOME ACCOUNT. Equitable maintains a Fixed Income Account
under the Contract for each Participant with respect to whom Contributions are
made. Any amount allocated to the Fixed Income Account becomes part of the
general assets of Equitable, which supports the guarantees of the Contract and
other contracts.
The amounts in the Fixed Income Account at any time is equal to the sum of all
amounts that have been allocated to such Fixed Income Account pursuant to
Section 2.04 plus the amount of any interest accrued but not allocated, less the
sum of all amounts that have been withdrawn pursuant to Sections 2.07, 2.07A,
and Section 2.08 from such Account, and transferred pursuant to Section 2.05
from the Fixed Income Account, and less the sum of any annual administrative
charges accrued but not made. Equitable
11938C-C ---------
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PARTICIPANT'S ACCOUNT (CONTINUED)
guarantees that the amount in the Fixed Income Account at any time before the
Retirement Date will not be less than the sum of all amounts allocated to such
Account pursuant to Section 2.04 or transferred to such Account pursuant to
Section 2.05 and less the sum of all amounts that have been withdrawn from such
Account pursuant to Sections 2.07 and 2.07A, and transferred from such Account
pursuant to Section 2.05, all accumulated at 4% interest, compounded annually.
In any Participation Year in which no Contribution is allocated to the Fixed
Income Account, the amount in such Account at the end of the Participation Year
shall not be less than the amount in such Account at the beginning of the
Participation Year plus the sum of all amounts transferred to such Account
pursuant to Section 2.05 less the sum of all amounts withdrawn and transferred
out of such Account pursuant to Sections 2.07, 2.07A, and Section 2.05, all
accumulated at 4% interest, compounded annually.
The Fixed Income Account for a Participant terminates on the earliest of (i) the
Retirement Date, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO ACCOUNT. Each Contribution made with respect to a
Participant pursuant to Section 2.01 will be allocated, as of the date by which
Equitable has received both such Contribution and direction as to its
allocation, to the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account or Money Market Account or in part to each, at the sole
direction of the Owner as specified to Equitable, unless the Owner transfers to
the Participant the right to allocate Contributions to such Accounts maintained
for such Participant, provided that the percentage allocated to each Account is
a whole number.
Any amount that the Owner has directed to be transferred to the Fixed Income
Account, Stock Account, Balanced Account or Aggressive Stock Account pursuant to
Section 2.05 will be allocated as of the date of such transfer to the
appropriate Account maintained for such Participant.
Interest is allocated to the Fixed Income Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05 and 2.07, at the time of application of amounts in the Fixed
Income Account to provide Annuity Benefits, upon termination of participation
pursuant to Section 2.06, and upon death of the Participant pursuant to Section
2.09.
SECTION 2.05 TRANSFERS AMONG ACCOUNTS. At any time before a Participant's
Retirement Date, the Owner, unless the Owner transfers to the Participant the
right to transfer all or part of the amounts maintained for the Participant to
one or more of the other Accounts maintained for such Participant, upon written
request, may transfer all or part of the amounts maintained for the Participant
to one or more of the other Accounts maintained for such Participant as follows:
(1) amounts in the Fixed Income Account, Stock Account, Balanced Account and
Aggressive Stock Account may be transferred among such Accounts; (2) amounts in
the Money Market Account may be transferred to the other Accounts. Such
transfers will be made as of the date Equitable receives such request, and will
be subject to Equitable's rules in effect at the time of transfer. No transfers
are permitted from the Fixed Income Account, Stock Account, Balanced Account or
Aggressive Stock Account maintained for the Participant to the Money Market
Account. Notwithstanding the above, transfers to the Balanced Account may be
prohibited by Equitable upon 30 days written notice to the Owner.
SECTION 2.06 TERMINATION OF PARTICIPATION. Subject to any applicable
restrictions under the terms of the Plan, on or before a Participant's
Retirement Date, the Owner may elect by written notice to terminate
participation under the Contract. Upon receipt of such notice, Equitable will
determine the Cash Value, as of the date Equitable received such notice, of the
Fixed Income Account, Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account maintained for such Participant.
The payment of such Cash Value to the Owner may be deferred by Equitable in
accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
pay to the Owner such Annuity Values and terminate such Participant's
participation under the Contract. This right may be exercised with respect to
the Participant only if both (i) no Contributions have been made under the
Contract during the last three Participation Years, and (ii) the sum of the
Annuity Values is $500 or less. Equitable reserves the right to terminate a
Participant's participation under the Contract if at least 120 days have elapsed
since the issue date shown on the certificate issued to such Participant under
the Contract and no Contributions have been made under the Contract with respect
to such Participant.
Upon payment of such Cash Values or Annuity Values, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Values or Annuity Values arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions under
the terms of the Plan, the Owner may elect by written notice to Equitable to
make a partial withdrawal from the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and the Fixed Income Account maintained for
such Participant before such Participant's Retirement Date.
Upon withdrawal pursuant to Section 2.07, Equitable will pay the lesser of the
sum of the Cash Values of such Accounts or the amount of partial withdrawal
requested to the person entitled to such payment as designated in writing by the
Owner. Unless instructed otherwise, the amount withdrawn (including the amount
of any withdrawal charge) will be allocated between such Accounts in proportion
to the Annuity Value of each such Account.
Upon any payment made at the direction of the Owner pursuant to Section 2.07,
Equitable will be released from any and all liability for payments with respect
to the Contributions from which the amounts so withdrawn arose.
11938C-C --------
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PARTICIPANT'S ACCOUNT (CONTINUED)
Payments made at the direction of the Owner pursuant to Section 2.07 may be
deferred by Equitable in accordance with the provisions of Section 4.06.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300.
SECTION 2.07A PARTIAL WITHDRAWAL CHARGES.
With respect to partial withdrawals requested by the Owner, there will be no
withdrawal charge if the amount of the partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.07B. In that case,
Equitable will withdraw from the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account, and Fixed Income Account and pay, at the
direction of the Owner, an amount equal to the partial withdrawal requested.
However, if the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts an amount
equal to the Free Corridor Amount, and (ii) then withdraw an amount equal to the
excess of the amount requested over the Free Corridor Amount, plus a withdrawal
charge, if applicable. Such withdrawal charge will be calculated in the
following manner:
(a) Withdrawals of Contributions made on behalf of the Participant during the
current and five prior Participation Years will be subject to a charge of
6% of the amount withdrawn (including such charge).
(b) Withdrawals of other amounts will not be subject to any withdrawal charges.
Equitable will pay, at the direction of the Owner, the lesser of a) the amount
requested or b) the sum of Cash Values of the Accounts maintained on the
Participant's behalf.
For purposes of determining withdrawal charges described in this Section,
amounts withdrawn up to the Free Corridor Amount will not be considered a
withdrawal of any Contributions. Any excess withdrawals, i.e. those pursuant to
item (ii) above, shall be considered withdrawals of Contributions in the order
received, with the older Contributions first.
SECTION 2.07B FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" with respect
to the Owner means an amount equal to the excess, if any, of (i) 10% of the sum
of the Annuity Values of the Stock Account, Balanced Account, Aggressive Stock
Account, Money Market Account and the Fixed Income Account over (ii) cumulative
prior withdrawals made pursuant to Section 2.07 in the current Participation
Year with respect to the Participant.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year before a Participant's Retirement Date, Equitable will
withdraw from the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account maintained under the Contract,
as to the Contributions remitted with respect to such Participant, an annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i) the
Annuity Values of the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account at the end of that
Participation Year and (ii) any withdrawals made from such Accounts pursuant to
Section 2.07 during that Participation Year.
The charge will be allocated among the Stock Account, Aggressive Stock Account,
Money Market Account and Fixed Income Account in proportion to the Annuity
Values of each such Account, at the end of the Participation Year. As of a
Participant's Retirement Date and before application of the Annuity Values or
Cash Values of such Participant's account pursuant to Section 3.03, or upon
termination of such Account pursuant to Section 2.06 or Section 2.09 during a
Participation Year, Equitable will withdraw the administrative charge described
in this Section for the applicable part of that Participation Year.
SECTION 2.09 DEATH BENEFIT. If a Participant dies while Accounts for such
Participant are maintained under the Contract, Equitable, upon receipt of due
proof of such death, will pay to the beneficiary the death benefit payable with
respect to such Participant.
If the beneficiary under the certificate is the Trustee, the Trustee may,
subject to the terms of the Plan, change the beneficiary within 31 days after
the Equitable receives due proof of the Participant's death. The change shall be
made in the same manner and subject to the same provisions as apply to a change
of beneficiary during the Participant's lifetime.
If the Trustee changes the beneficiary of the certificate after the death of the
Participant according to the terms of the Plan, the Trustee may elect an Annuity
Benefit on any annuity form offered by Equitable, subject to Equitable's rules
then in effect, for the benefit of the beneficiary. The beneficiary may not
revoke or change any election made by the Trustee. If the Trustee does not make
an election, the beneficiary may make such election for the beneficiary's own
benefit.
If the beneficiary under the certificate is not the Trustee, and the Participant
is married at the time of death of such Participant, Equitable will pay the
death benefit under the certificate to the spouse of the Participant in the form
of a Life Annuity, unless the spouse of the Participant makes an election for a
single sum payment or for an Annuity Benefit on any other annuity form offered
by the Equitable, subject to Equitable's rules then in effect.
If the Equitable determines that the Participant is married at the time of
death, the beneficiary under the certificate is not the spouse of such
Participant and the spouse of such Participant has not given written consent to
the designation of another beneficiary, Equitable shall have the right to pay
the death benefit to the spouse of such Participant instead of the named
beneficiary, if such action is required to comply with Federal law.
The amount of the death benefit with respect to a Participant at any time prior
to the Retirement Date is equal to the greater of (i) the sum of the Annuity
Values of the Fixed Income Account, Stock
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PARTICIPANT'S ACCOUNT (CONTINUED)
Account, Balanced Account, Aggressive Stock Account and Money Market Account
maintained under the Contract for such Participant and (ii) the minimum death
benefit with respect to such Participant. Such minimum death benefit is the sum
of all Contributions made with respect to such Participant pursuant to Section
2.01 less an adjustment for any withdrawals made pursuant to Section 2.07 from
the Accounts maintained under the Contract for such Participant. Any such
withdrawal will reduce the minimum death benefit (as adjusted by any previous
such withdrawal) by an amount which is in the same proportion as the amount
being withdrawn is to the Annuity Values then in the Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
maintained under the Contract for such Participant.
The amount of any death benefit payable with respect to a Participant, to the
extent such Account is sufficient therefore, will be withdrawn from the Fixed
Income Account, Stock Account, Balanced Account, Aggressive Stock Account and
Money Market Account maintained with respect to such Participant under the
Contract. Upon such payment, Equitable will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Values arose.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of Separate Account A.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to the payee pursuant to Section 3.04. The amount
of the fourth and each subsequent payment under a Variable Annuity Benefit will
be equal to the number of Annuity Units with respect to such benefit, multiplied
by the Average New Annuity Unit Value for the second calendar month immediately
preceding the date of the payment. The fourth and subsequent annuity payments
under a Variable Annuity Benefit will not be increased or decreased in amount
because of mortality or expense experience. The number of Annuity Units with
respect to a benefit is the number determined by dividing the amount of the
first monthly payment under such benefit by the New Annuity Unit Value for the
Valuation Period which includes the due date of the first monthly payment.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living, the
Annuity Values of such Participant's Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock and Money Market Account shall be applied to
provide the Normal Form of Annuity Benefit, unless the owner on behalf of the
Participant and, if applicable, the Participant's spouse elects (i) to receive
the Cash Value of such Accounts in a single sum or (ii) to apply such Annuity
Value or Cash Value, whichever is applicable pursuant to the first paragraph of
Section 3.04, to provide an Annuity Benefit on any other annuity form offered by
Equitable, subject to Equitable's rules then in effect, the terms of the Plan,
and any applicable requirements under the Code.
Equitable will provide notice and election forms to the Owner not more than six
months before the Participant's Retirement Date.
If the Owner elects to terminate a Participant's participation under the
Contract pursuant to Section 2.06 before the Retirement Date, an election may be
made to receive an Annuity Benefit in lieu of the Cash Values of such
Participant's Fixed Income Account, Stock Account, Balanced Account, Aggressive
Stock Account and Money Market Account.
Equitable has the right to require the Owner to furnish pertinent information to
provide an Annuity Benefit, and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If the Owner elects to receive an
Annuity Benefit in lieu of the Cash Values of the Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
the amount applied to provide the Annuity Benefit will be (i) the Annuity Values
of such Accounts, if the payments under the annuity form elected are contingent
upon the survival of a person, or (ii) the Cash Values of such Accounts if the
payments under the annuity form elected are not contingent upon the survival of
a person. If such amount is applied on or after the completion of five
Participation Years with respect to such Participant: (1) the balance, less any
Contribution made on behalf of the Participant during the current and five prior
Participation Years, shall purchase the Annuity Benefit on the basis of either
(i) the Table of Guaranteed Annuity Payments shown herein or (ii) Equitable's
current individual annuity rates for payment of
11938C-C ----------
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ANNUITY BENEFITS (CONTINUED)
proceeds whichever rates would provide a larger benefit with respect to payee;
(2) any Contributions made on behalf of the Participant during the current and
five prior Participation Years shall purchase the Annuity Benefit on the basis
of either (i) the Table of Guaranteed Annuity payments shown herein or (ii)
Equitable's current individual rates applicable to funds which derive from
sources outside Equitable, whichever rates would provide a larger benefit with
respect to the payee. If such current individual annuity rates are used, such
Participant's certificate will be replaced by an Equitable supplementary
contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a Participant, the
balance, after any applicable tax on annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown herein or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account maintained
for such Participant shall terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form are based on 3 1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on a 50-50 split of males and
females. The amounts of income initially provided under the Variable Annuity
Benefit payable on the Life Annuity Form and Joint and Survivor Life Annuity
Form are based on the projected 1983 Basic Table adjusted to a unisex basis
based on a 50-50 split of males and females and an Assumed Based Rate of Net
Investment Return of 3 1/2% or 5%, whichever applies pursuant to Section 1.16.
The Assumed Base Rate of Net Investment Return is 5% for certificates issued for
delivery in New York. Equitable may change the monthly income amounts contained
in the Tables of Guaranteed Annuity Payments and the basis for determining such
amounts, for new Participants, by at least 90 days advance notice to the
Contract Holder and by an amendment to the Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on a 50-50 split of males and
females if such annuity form provides for a Fixed Annuity Benefit, and on the
projected 1983 Basic Table adjusted to a unisex basis based on a 50-50 split of
males and females and an Assumed Base Rate of Net Investment Income Return of 5%
or 3 1/2%, whichever applies pursuant to Section 1.16, if such annuity form
provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's survival must
be furnished to Equitable either by personal endorsement of the check drawn for
payment or by other means satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. The amount of the overpayments by Equitable will be charged
against, and the amount of the underpayments will be added to, any payments
thereafter falling due under the Contract with respect to the payee. The
liability of Equitable with respect to a payee is limited to the correct
information and the actual amounts used to provide the benefits then in force
with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, or (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may, unless the Plan to provide to the contrary, make the payments (in
the case of a minor, at a rate not exceeding $200 a month) to such other person
or institution, and will thereupon be fully discharged from all liability with
respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person to receive the
commuted value of any remaining payments, provided no person upon whose life the
income depends is surviving.
Upon election by the Owner on behalf of the Participant and, if applicable, the
Participant's spouse, pursuant to Section 3.03 of an annuity form providing
payments for a period certain, such Owner may designate (with the right to
change such designation, in accordance with the terms of the Plan) a person or
persons to receive any payments that may become due after the death of the
person or persons upon whose life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person, unless the Plan provides to the contrary) a
person or persons to receive any payments or installments payable after such
payee's death, if the absence of such a designation would result in a single sum
payment to such payee's executors or administrators in accordance with the
following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable
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ANNUITY BENEFITS (CONTINUED)
will pay in a single sum to such payee's executors or administrators the
commuted value of any remaining payments or installments.
The commuted value of any such remaining payments or installments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis.
If the amount to be applied hereunder is less than $3,500, Equitable may pay the
amount to the payee in a single sum instead of applying it under the annuity
form elected pursuant to Section 3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
<TABLE>
<CAPTION>
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM - 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
------ -------- -------- -------- ------- -------- -------- -------- -------- --------- --------- --------
Age 60 61 62 63 64 65 66 67 68 69 70
------ -------- -------- -------- ------- -------- -------- -------- -------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.54 4.58 4.62 4.66 4.70 4.74 4.77 4.81 4.84 4.88 4.91
61 4.62 4.67 4.71 4.76 4.81 4.84 4.88 4.91 4.95 4.99
62 4.72 4.76 4.81 4.85 4.90 4.94 4.98 5.08 5.06
63 4.81 4.86 4.91 4.96 5.01 5.06 5.10 5.14
64 4.92 4.97 5.02 5.08 5.13 5.17 5.22
65 5.03 5.09 5.15 5.20 5.26 5.31
66 5.15 5.21 5.27 5.33 5.39
67 5.28 5.34 5.40 5.47
68 5.41 5.48 5.55
69 5.56 5.63
70 5.71
------ -------- -------- -------- ------- -------- -------- -------- -------- --------- --------- --------
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM-100% CONTINUATION - ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
------ -------- -------- -------- ------- -------- -------- -------- -------- --------- --------- --------
Age 60 61 62 63 64 65 66 67 68 69 70
------ -------- -------- -------- ------- -------- -------- -------- -------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.40 4.44 4.58 4.51 4.55 4.58 4.61 4.65 4.68 4.71 4.74
61 4.48 4.52 4.56 4.60 4.64 4.67 4.71 4.74 4.78 4.81
62 4.56 4.60 4.65 4.69 4.73 4.77 4.80 4.84 4.85
63 4.65 4.69 4.74 4.78 4.83 4.87 4.91 4.95
64 4.74 4.79 4.84 4.89 4.93 4.98 5.02
65 4.85 4.90 4.95 5.00 5.05 5.10
66 4.95 5.01 5.06 5.11 5.17
67 5.07 5.12 5.18 5.24
68 5.19 5.25 5.32
69 5.32 5.39
70 5.46
------ -------- -------- -------- ------- -------- -------- -------- -------- --------- --------- --------
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM-100% CONTINUATION - ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
------ -------- -------- -------- ------- -------- -------- -------- -------- --------- --------- --------
Age 60 61 62 63 64 65 66 67 68 69 70
------ -------- -------- -------- ------- -------- -------- -------- -------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.27 5.30 5.34 5.37 5.41 5.44 5.47 5.51 5.54 5.57 5.59
61 5.34 5.38 5.42 5.46 5.49 5.53 5.57 5.60 5.63 5.66
62 5.42 5.46 5.50 5.54 5.58 5.62 5.65 5.69 5.73
63 5.50 5.55 5.59 5.63 5.67 5.71 5.75 5.79
64 5.59 5.64 5.69 5.73 5.78 5.82 5.86
65 5.69 5.74 5.79 5.84 5.89 5.93
66 5.79 5.85 5.90 5.95 6.00
67 5.90 5.96 6.02 6.08
68 6.02 6.08 6.15
69 6.15 6.22
70 6.29
------ -------- -------- -------- ------- -------- -------- -------- -------- --------- --------- --------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
Age FIXED ANNUITY BENEFIT INVESTMENT RETURN IS
--- --------------------- ---------------------------
3 1/2% 5%
----- ----
60 5.29 5.08 5.97
61 5.41 5.19 6.08
62 5.55 5.31 6.20
63 5.69 5.44 6.33
64 5.85 5.58 6.46
65 6.01 5.73 6.61
66 6.19 5.89 6.77
67 6.37 6.06 6.94
68 6.58 6.24 7.12
69 6.79 6.43 7.31
70 7.02 6.64 7.52
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average New Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
11938C-C --------
Page Ten
<PAGE>
Page Eleven
-----------
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. The Contract constitutes the entire agreement between the
parties and the provisions of the Contract alone will govern with respect to the
rights and obligations of Equitable. The provisions of the Contract will be
applied separately with respect to each Participant. Nothing in the enrollment
form referred to in Section 1.05, the Plan or trust agreement referred to in
Section 4.10 nor any modification, amendment, or supplement to any such
documents will in any way be construed to enlarge, change, vary or in any other
way affect the obligations of Equitable as expressly provided in the Contract.
The Contract may not be modified by Equitable, nor many any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE. Equitable reserves the right to amend the
Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the Contract and any certificate to reflect changes in
the Code, or in regulations or published rulings of the Internal Revenue Service
so that each such certificate will continue to be an Annuity.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY. The entire interest of any
Participant under the Contract is nonforfeitable.
If the Owner is the Trustee, the Trustee may assign the interest of a
Participant under the Contract. However, while the Contract is part of a plan
that is intended to meet the requirements for qualification under Section 401(a)
of the Code, the Trustee may assign the interest of a Participant under the
Contract only if permitted by that plan. Equitable will not be bound by such an
assignment unless the assignment is written and received by Equitable. The
rights of the Participant, the Owner, the Trustee and the Employer will be
subject to such an assignment. Equitable assumes no responsibility for the
validity of any assignment.
If the Owner is other than the Trustee, no interest of a Participant under the
Contract may be sold, assigned, discounted, or pledged as collateral for a loan
or as security for the performance of an obligation or for any other purpose to
any person other than Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law, no such amount will in any way
be subject to any claim against such payee.
Notwithstanding the foregoing, the provisions of this Section 4.03 shall not be
construed so as to prevent compliance with a "qualified domestic relations
order" (as that term is defined in Section 414(p) of the Code).
SECTION 4.04 PARTICIPATION IN SURPLUS. The Contract and all other contracts in
the same class of contracts shall be combined for the purpose of ascertaining
the annual surplus of Equitable to be apportioned to said contracts as a
dividend and the portion of any such dividend that is to be allocated to the
Contract shall be determined by Equitable. The participation of this class of
contracts in annual surplus is, however, expected to be minimal. Any amount so
allocated to the Contract shall be payable as of January 1 of the calendar year
in which a dividend is apportioned and will be payable in cash and shall be
equitably allocated by Equitable to the Fixed Income Accounts maintained
hereunder for each Participant.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.05 BENEFICIARY. The Owner, as of the Participant's Participation Date,
is to provide Equitable with an initial designation of the beneficiary entitled
to receive any death benefit payable with respect to such Participation pursuant
to Section 2.09. The Owner may change such designation from time to time during
the Participant's lifetime and while Accounts for such Participant are being
maintained hereunder. If the beneficiary is the Trustee, the Trustee will have
the right within 31 days of the day Equitable receives due proof of death of
such Participant and pursuant to the provisions of the Plan, to change the
beneficiary entitled to receive the death benefit with respect to the
Participant.
If the Trustee is not the beneficiary, the beneficiary will be the spouse of the
Participant for any married Participant, unless the spouse has given written and
witnessed consent to the designation of another beneficiary, or the Participant
can establish that the spouse cannot be located in accordance with the Plan and
the requirements of the Code. Such spousal consent must be on file with the
Trustee while the certificate is owned by the Trustee. If the Trustee is not the
Owner, such spousal consent must be presented to Equitable with the change of
beneficiary request or with proof of the death of the Participant and the
election for an Annuity Benefit.
SECTION 4.06 DISQUALIFICATION. In the event that an annuity purchased hereunder
with respect to the Participant fails to qualify as an Annuity as described in
Section 1.03, Equitable shall have the right, upon receiving notice of such fact
before the Retirement Date, to terminate participation with respect to such
Participant under the Contract and pay at the direction of the Owner the amount
in the Account maintained with respect to such Participant
11938C-C -----------
Page Eleven
<PAGE>
Page Twelve
-----------
GENERAL PROVISIONS (CONTINUED)
less a deduction for the appropriate part attributable to the Owner for any
Federal income tax payable by Equitable which would not have been payable if the
Owner had an Annuity under the Contract.
SECTION 4.07 FUTURE PARTICIPANTS. Equitable reserves the right at its sole
discretion to curtail or prohibit further enrollment as Participants under the
Contract of any individuals who are not currently participating under the
Contract as of such date of curtailment or prohibition.
SECTION 4.08 DEFERMENT. Payments by Equitable from the Participant's Fixed
Income Account pursuant to the provisions of Sections 2.06, 2.07, 2.07A and
2.09, or any commuted payments arising from a Fixed Annuity Benefit pursuant to
Section 3.05, may be deferred for up to six months after receipt of a written
request for such surrender or withdrawal, or receipt of due proof of death of
the Participant, respectively, or receipt of due documentation for such
commutation payment pursuant to Section 3.05. Interest at the current Guaranteed
Interest Rate for such Participant's Fixed Income Account will be allowed on any
such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the Participant's
Stock Account, Balanced Account, Aggressive Stock Account or Money Market
Account pursuant to the provisions of Sections 2.06, 2.07, 2.07A and 2.09, or
any commuted payments arising from a Variable Annuity Benefit pursuant to
Section 3.05, will be made within seven days after receipt of a written request
for such surrender or withdrawal, or receipt of due proof of death of the
Participant, respectively, or receipt of due documentation for such commutation
payment pursuant to Section 3.05.
During any period when (i) the sale of securities or the determination of the
New Accumulation Unit Value or the Average New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or trading
on such Exchange is restricted, or (ii) the Securities and Exchange Commission
may by order permit postponement for the protection of persons having interests
in the Separate Accounts, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of Cash
Values and Annuity Values, arising from an amount in a Participant's Stock
Account, Balanced Account, Aggressive Stock Account or Money Market
Account;
(b) to defer payment of any portion of the death benefit arising from an amount
in a Participant's Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account;
(c) to defer the payment of any Variable Annuity Benefit under the Contract or
the application of any such Variable Annuity Benefit to provide for any
other payment called for by the Contract; or
(d) in the event of (a) above, to defer application of such amount to provide
any Annuity Benefit permitted under the Contract.
SECTION 4.09 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Owner with a notice
showing as of a specified recent date (1) the Annuity Value of the Fixed Income
Account, (2) the total number of Accumulation Units credited to the Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
(3) the New Accumulation Unit Values, (4) the sum of the Cash Values of the
Fixed Income Account, Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account and (5) the amount of death benefit payable with
respect to the Participant. After the Retirement Date, Equitable will notify the
Participant of the number of Annuity Units and the Average New Annuity Unit
Value used in determining the amount of each Variable Annuity Benefit payment,
if any.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY. The sole responsibility of the
Contract Holder is to serve as party to the Contract. The Contract Holder will
have no responsibility for the administration of any Plan, for payments to the
Fixed Income Account, Stock Account, Balanced Account, Aggressive Stock Account
or Money Market Account, or any payments or other distributions hereunder.
Equitable will deal with the Contract Holder in accordance with the terms and
conditions of the trust agreement pursuant to which the Contract Holder agreed
to act as such and with the Contract and in such manner as the Contract Holder
and Equitable may agree, without the consent of any other person. Any Employer
or Trustee making Contributions under the Contract shall be deemed to have
adopted and accepted the trust agreement as part of the Plan with respect to
which such Contributions are made.
SECTION 4.10A TRUSTEE'S RESPONSIBILITY. The Trustee shall hold this certificate
on behalf of the Participant and the Participant's beneficiaries as an asset of
the trust, unless the Contract is distributed to the Participant pursuant to the
terms of the Plan. The Trustee shall be responsible for transferring all
payments made under this certificate to the Participant and the Participant's
beneficiaries in accordance with the terms of the Plan and the applicable
provisions of the Code. Equitable shall make no payment hereunder without
written instructions from the Trustee, and Equitable shall be fully discharged
of any liability therefor to the extent such payments are made to and at the
direction of the Trustee.
SECTION 4.11 AGE. If the Participant's age has been misstated, any benefits will
be those which would have been purchased at the correct age. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
11938C-C -----------
Page Twelve
<PAGE>
Attached to and made part of Group Annuity Contract No. 11938C-C between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
UNITED STATES TRUST COMPANY OF NEW YORK
IT IS HEREBY AGREED that, with respect to HR-10 Plans, said contract and riders
are amended as follows:
With respect to PART II - PARTICIPANT'S ACCOUNTS, SECTION 2.08 ANNUAL
ADMINISTRATIVE CHARGE is amended to read as follows:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year before a Participant's Retirement Date, if the sum of the
Annuity Values of the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account on that date is less than
$10,000.00, Equitable will withdraw from the Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
maintained under the Contract, as to the Contributions remitted with respect to
such Participant, an annual administrative charge equal to the lesser of $30 or
2% of the sum of (i) the Annuity Values of the Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account at
the end of that Participation Year and (ii) any withdrawals made from such
Account pursuant to Section 2.07 and 2.07A during that Participation Year. The
charge will be allocated among the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and Fixed Income Account in proportion to
the Annuity Values of each such Account, at the end of the Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Values or Cash Values of such Participant's Account pursuant to Section 3.03 or
upon termination of such Account pursuant to Section 2.06 or Section 2.09 during
a Participation Year, if the sum of the Annuity Values of the Fixed Income
Account, Stock Account, Balanced Account, Aggressive Stock Account, and Money
Market Account at that date is less than $10,000.00, Equitable will withdraw the
administrative charge described in this Section for the applicable part of that
Participation Year.
<TABLE>
<CAPTION>
Agreed to by: THE EQUITABLE LIFE ASSURANCE
UNITED STATES TRUST COMPANY SOCIETY OF THE UNITED STATES
OF NEW YORK
<S> <C>
By By
-------------------------------------------- ---------------------------------------------
President
Title By
----------------------------------------- ---------------------------------------------
Vice President and Secretary
Dated Date of Issue
----------------------------------------- ----------------------------------
At
--------------------------------------------
</TABLE>
PF 17054C-C
<PAGE>
PARTICIPANT:
CERTIFICATE NUMBER:
[THE EQUITABLE LOGO] ISSUE DATE:
PARTICIPATION DATE:
RETIREMENT DATE:
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996,
G.P.O. New York, New York 10116
AGREES
o TO ALLOCATE the Contributions made to the Contract to the Stock Account,
Balanced Account, Aggressive Stock Account, Money Market Account or the
Fixed Income Account maintained for the Participant, in accordance with
Sections 2.02 and 2.03, or in part to any one, as directed by the Owner,
o TO APPLY the amount in the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and the Fixed Income Account at the
Retirement Date to provide the Participant with an Annuity Benefit or a
Cash Value benefit if the Participant is then living, and
o TO PROVIDE the Owner with the other rights and benefits of this
certificate.
The agreements are subject to the provisions of this certificate.
TEN DAYS TO EXAMINE CERTIFICATE - The Owner may terminate participation under
the Contract and cancel this certificate by returning it to Equitable within ten
days after receipt of it. Upon such cancellation, Equitable will refund any
Contribution made to Equitable on behalf of a Participant under the Contract,
plus or minus any investment gain or loss experienced in the Participant's Stock
Account, Balanced Account, Aggressive Stock Account or Money Market Account from
the date such Contribution is allocated to such Account to the date of such
cancellation.
VICE PRESIDENT
SPECIMEN AND SECRETARY SPECIMEN PRESIDENT
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN SEPARATE ACCOUNTS
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF
SEPARATE ACCOUNT A. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE
DAILY RATE OF INVESTMENT RETURN IN SEPARATE ACCOUNT A IS EQUIVALENT TO MORE THAN
6.75% OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75%
OR 5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.16 IS 5% OR 3 1/2%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND
MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO
PROVIDE FOR TAXES.
No. 11938C
<PAGE>
CONTENTS
Part I - Definitions Page 2
Part II - Participant's Account Page 6
Part III - Annuity Benefits Page 9
Part IV - General Provision Page 12
Equitable certifies that the Participant as named on page 3 is included under
the Group Annuity Contract designated on page 3 ("the Contract"), all pertinent
provisions of which are set forth below.
The Contract is issued in consideration of the payment to Equitable of the
Contributions made under the Contract.
The provisions on the following pages are part of this certificate.
PART I - DEFINITIONS
SECTION 1.01 EMPLOYER. The term "Employer" means the employer adopting the plan,
or any employer that assumes in writing the obligations of the Plan. A sole
proprietor is deemed to be his or her own Employer and a partnership is deemed
to be the Employer of each partner.
SECTION 1.02 PLAN. The term "Plan" means a defined contribution plan adopted by
the Employer that is intended to meet the requirements for qualification under
Section 401(a) of the Code.
SECTION 1.02A TRUSTEED PLAN. The term "Trusteed Plan" means a Plan under which
there is maintained a trust forming a part of the Plan (other than the trust
agreement described in Section 4.10 of this Contract).
SECTION 1.02B TRUSTEE. The term "Trustee" means the person or persons named as
trustee under a Trusteed Plan and such trustee's successors.
SECTION 1.03 ANNUITY. The term "Annuity" means an annuity purchased in
accordance with the terms of the Plan and which is intended to meet the
requirements for qualification under Section 401(a) of the Code.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Section 3.04.
SECTION 1.05 PARTICIPANT. The term "Participant" means a person who has been
enrolled by Equitable under the Contract and for whom the Employer has purchased
an Annuity under the Contract. A person shall become enrolled under the Contract
upon receipt by Equitable of an enrollment form made available by Equitable and
completed in a manner satisfactory to Equitable.
SECTION 1.05A OWNER. The Owner of a certificate issued under the Contract is as
stated in the enrollment form, or later changed. Notwithstanding any provisions
in the certificate to the contrary, only the Owner can exercise all the rights
under the certificate while the Participant is living. The Owner does not need
the consent of anyone who has only a conditional or future ownership interest in
a certificate.
While the Participant is living, an Owner of a certificate issued on behalf of
the Participant may change the Owner by written notice satisfactory to
Equitable. The change will take effect on the date the Owner signs the notice,
except it will not apply to any payment Equitable makes or other actions
Equitable takes before Equitable receives the notice.
SECTION 1.06 CONTRIBUTION. The term "Contribution" means a payment made to
Equitable for a Participant with respect to an Annuity purchased for such
Participant under the Contract. Equitable is under no obligation to accept any
Contribution less than $20.00.
SECTION 1.07 PARTICIPATION DATE. The term "Participation Date" with respect to a
Participant means the date as of which Equitable has enrolled such Participant
under the Contract as shown on Page 3 of this certificate.
SECTION 1.08 PARTICIPATION YEAR. The term "Participation Year" with respect to
the Participant means the twelve month period beginning on (i) the Participation
Date and (ii) each anniversary thereof, unless otherwise agreed to in writing by
Equitable.
SECTION 1.09 CLASS OF PARTICIPANTS. The term "Class of Participants" refers to
all Participants whose Participation Date is in the same calendar year.
----------
Page Three
<PAGE>
Page Four
---------
DEFINITIONS (CONTINUED)
SECTION 1.10 GUARANTEED INTEREST RATE. With regard to a Fixed Income Account,
the term "Guaranteed Interest Rate" means the effective annual rate at which
interest accrues on the amounts in such Account. Interest accrues daily. The
Guaranteed Interest Rate will never be less than 4% per annum.
For each Class of Participants, Equitable will from time to time establish and
make available for new Participants (i) an Initial Guaranteed Interest Rate,
(ii) one or more minimum Guaranteed Interest Rates and (iii) the applicable
effective period(s) for such Rates. A new Class of Participants will be
established effective with the effective date of the occurrence of (i), (ii) or
(iii) above or any combination thereof.
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) Equitable may determine for each
established Class of Participants a Guaranteed Interest Rate and duration which
exceeds the applicable minimum Guaranteed Interest Rate. Equitable will notify
each Participant in writing of the applicable Guaranteed Interest Rate and
duration.
Equitable reserves the right to combine one or more Classes of Participants into
a single Class of Participants, provided such Classes were initially established
during a continuous period of time.
SECTION 1.11 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Participant attains the retirement age specified in the Participant's
enrollment form pursuant to the terms of the Plan. Before the Retirement Date,
the Participant may elect to change the Retirement Date to any other Retirement
Date permitted under the Plan, which may be any date after the filing of the
election other than the 29th, 30th, or 31st day of any month. Any election for
such change must be made in writing by the Participant and shall not take effect
until received by Equitable at its Processing Office.
SECTION 1.12 NORMAL FORM. The "Normal Form" of an annuity Benefit under the
Contract means the Fixed Annuity Benefit payable on the Life Annuity Form as
defined in Sections 3.01 and 1.14, with 10 years of payments guaranteed.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depends is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by the Owner. The payments commence on the date as of which the Joint
and Survivor Life Annuity Form is purchased and terminate with the last payment
due before the death of the survivor.
SECTION 1.14 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
providing fixed monthly payments during the lifetime of the person upon whose
life such payments depend. The payments commence on the date as of which the
Life Annuity Form is purchased and terminate with the last payment due before
the death of such person.
SECTION 1.14A ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain"
means an annuity not involving life contingencies issued by Equitable, which
annuity may not provide for payments beyond the life expectancy of the
Participant or the joint and last survivor life expectancy of the Participant
and the Participant's designated beneficiary. Such annuity shall extend beyond
the Participant's attainment of 59 years and six months and shall not permit any
prepayment of principal prior to the Participant's attainment of age 59 years
and six months. Life expectancy and joint and last survivor life expectancy are
computed by the use of the return multiples contained in section 1.72-9 of the
regulations under the Code. If the Participant's spouse is not the designated
beneficiary, at least 50 percent of the present value of the amount available
for distribution under an Eligible Annuity Certain must be paid within the life
expectancy of the Participant.
SECTION 1.14B PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by Equitable that does not
permit any prepayment of the unpaid principal.
SECTION 1.15 THE SEPARATE ACCOUNTS. The term "Separate Accounts" means the
following separate investment accounts maintained by Equitable to which portions
of its assets have been allocated for the Contract and certain other contracts:
Name Investments
---- -----------
Separate Account A Primarily common stock and other equity-type investments.
Separate Account E Primarily short-term money market instruments.
Separate Account J Primarily common stocks and other equity-type investments,
publicly traded debt securities and short-term money market
instruments.
Separate Account K Primarily common stocks issued by high quality small and
intermediate size companies with strong growth prospects.
Equitable reserves the right to withdraw from any Separate Account and allocate
to another Separate Account assets determined by Equitable to be associated with
the class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid odd lots and
fractions. On and after the date of any such withdrawal
---------
Page Four
<PAGE>
Page Five
---------
DEFINITIONS (CONTINUED)
the reference in the Contract to such Separate Account shall mean such other
Separate Account to which the withdrawal assets were allocated.
It is contemplated that investments in the Separate Accounts will, at most
times, consist primarily of the types of investments indicated above. Equitable
may, however, at its discretion invest the assets of any Separate Account in any
investment permitted by applicable law. Equitable may relay conclusively on the
opinion of counsel (including attorneys in its employ) as to what investments it
is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate any Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or a part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
any Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) run any Separate Account under direction of a committee,
and to discharge such committee at any time; and (iii) restrict or eliminate any
voting rights of participants or other persons who have voting rights as to the
Separate Accounts.
Assets of the Separate Accounts attributable to the Contract shall be subject to
a charge at the rate of 1.75% a year, for investment management, financial
accounting, the annuity rate guarantee and the minimum death benefit, and
expenses and expense risk. The charge shall be made in accordance with (c) of
the Net Investment Factor provision in Section 1.16.
The assets of the Separate Accounts are the property of Equitable; however, the
portion of the assets of each Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising out of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of a Separate Account in excess of such
reserves and contract liabilities to another Separate account or to the general
account of Equitable.
SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS.
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which there is a
sufficient degree of trading in the portfolio securities of a Separate Account
that the New Accumulation Unit Value or New Annuity Value might be materially
affected by changes in the value of the portfolio securities in a Separate
Account, as determined by the Separate Account Committee or, if there is no
committee, by Equitable.
NET INVESTMENT FACTOR: For each Separate Account the Net Investment Factor for a
Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment
income and the capital gains, realized or unrealized, credited to the
assets of the Separate Account in the Valuation Period for which the
Net Investment Factor is being determined, minus (3) the capital
losses, realized or unrealized, charged against such assets in such
Valuation Period, minus (4) any amount charged against the Separate
Account in such Valuation Period for taxes or for amounts set aside by
Equitable as a reserve for taxes attributable to the maintenance or
operation of the Separate Account;
(b) is the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period of
.00004837 for investment management, financial accounting, the annuity
rate guarantee and the minimum death benefit, and expenses and expense
risk.
The value of the assets in the Separate Accounts, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
their fair value, as determined in accordance with accepted accounting practices
and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the value
of a Participant's interest in the Stock Account, Balanced Account, Aggressive
Stock Account or Money Market Account on or before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Values for the
Separate Accounts have been established as follows:
Account Value Date
------ ----- ----
Separate Account A $10.00 As of November 1, 1968
Separate Account E $10.00 As of September 4, 1974
Separate Account J $10.00 as of May 1, 1984
Separate Account K $10.00 As of May 1, 1984
The New Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from Separate Account A under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value for Separate Account
A has been established at $1.00 as of November 1, 1968. The Annuity Unit Value
for any subsequent Valuation
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DEFINITIONS (CONTINUED)
Period is the New Annuity Unit value for the immediately preceding Valuation
Period multiplied by the Adjusted Net Investment Factor for such subsequent
Valuation Period. The Adjusted Net Investment Factor for a Valuation Period is
the Net Investment Factor for such period reduced for each calendar day in such
subsequent Valuation Period by the Net Investment Factor times (i) .00013366, if
the Assumed Base Rate of Net Investment Return is 5%, and (ii) .00009425, if the
Assumed Base Rate of Net Investment Return is 3 1/2%. The Assumed Base Rate of
Net Investment Return shall be 5%, except in states where the rate is not
permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average New Annuity Unit Value for Separate
Account A for a calendar month is equal to the average of the New Annuity Unit
Values for the Valuation Periods ending in such month.
SECTION 1.17 ANNUITY VALUE. The term "Annuity Value" with respect to a
Participant's Fixed Income Account, Stock Account, Balanced Account, Aggressive
Stock Account and Money Market Account, means the amount in such Accounts
pursuant to `Sections 2.02 and 2.03.
SECTION 1.18 CASH VALUE
With respect to the Participant, the term "Cash Value" with respect to such
Participant's Fixed Income Account, Stock Account, Balanced Account, Aggressive
Stock Account, and Money Market Account means an amount equal to the greater of
(i) or (ii) below:
(i) the Annuity Value of such Accounts less 6% of the Contributions made during
the current and five prior Participation Years, which had not been
previously withdrawn pursuant to Section 2.07A.
(ii) the sum of (a) the Free Corridor Amount as defined in Section 2.07B and (b)
94% of (the Annuity Value of such Accounts less the Free Corridor Amount).
SECTION 1.18A CODE. The term "Code" means the Internal Revenue Code of 1954, as
now or hereafter amended.
PART II -- PARTICIPANT'S ACCOUNT
SECTION 2.01 CONTRIBUTIONS. The Employer or the Trustee is to make Contributions
from time to time on such dates and in such amounts as determined by the
Employer or the Trustee pursuant to the terms of the Plan. The Employer or the
Trustee is to specify the Participant with respect to whom each such
Contribution is being made and the amount to be allocated to the Stock Account,
Balanced Account, Aggressive Stock Account, Money Market Account and the Fixed
Income Account.
If the Plan provides, and subject to any Code restriction, the Owner may, with
Equitable's agreement, transfer to the Contract any amount held with respect to
such Participant under a plan which is intended to meet the requirements for
qualification under Section 401(a) of the Code ("Transferred Funds").
Equitable will issue for each Participant an individual certificate setting
forth a statement in substance of the benefits to which such Participant is
entitled under the Contract.
SECTION 2.02 STOCK, BALANCED, AGGRESSIVE STOCK AND MONEY MARKET ACCOUNTS.
Equitable maintains a Stock Account, Balanced Account, Aggressive Stock Account
and Money market Account under the Contract for each participant with respect to
who Contributions are made. Any amount allocated to the (1) Stock Account
becomes part of Separate Account A, (2) Balanced Account becomes part of
Separate Account J, (3) Aggressive Stock Account becomes part of Separate
Account K, and (4) Money Market Account becomes part of Separate Account E. Any
amount withdrawn from an Account will no longer be part of the applicable
Separate Account.
On any date when an amount is allocated to or withdrawn from an Account, the
Account will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the New Accumulation
Unit Value for the appropriate Account for the Valuation Period which includes
that date. The number of Units in an Account on any date is equal to (i) the sum
of any Accumulation Units that have been allocated to the Account minus (ii) the
sum of any Accumulation Units that have been withdrawn from that Account. The
amount in the Stock Account, Balanced Account, Aggressive Stock Account or Money
Market Account on any date is equal to the product of (i) the number of
Accumulation Units in such Account on that date and (ii) the New Accumulation
Unit Value for the appropriate Account for the Valuation Period which includes
that date.
SECTION 2.03 FIXED INCOME ACCOUNT. Equitable maintains a Fixed Income Account
under the Contract for each Participant with respect to whom Contributions are
made. Any amount allocated to the Fixed Income Account becomes part of the
general assets of Equitable, which supports the guarantees of the Contract and
other contracts.
The amount in the Fixed Income Account at any time is equal to the sum of all
amounts that have been allocated to such Fixed Income Account pursuant to
Section 2.04 plus the amount of any interest accrued but not allocated, less the
sum of all amounts that have been withdrawn pursuant to Sections 2.07, 2.07A,
and Section 2.08 from such Account, and transferred pursuant to Section 2.05
from the Fixed Income Account, and less the sum of any annual administrative
charges accrued but not made. Equitable
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Page Seven
PARTICIPANT'S ACCOUNT (CONTINUED)
guarantees that the amount in the Fixed Income Account at any time before the
Retirement Date will not be less than the sum of all amounts allocated to such
Account pursuant to Section 2.04 or transferred to such Account pursuant to
Section 2.05 and less the sum of all amounts that have been withdrawn from such
Account pursuant to Sections 2.07 and 2.07A, and transferred from such Account
pursuant to Section 2.05, all accumulated at 4% interest, compounded annually.
In any Participation Year in which no Contribution is allocated to the Fixed
Income Account, the amount in such Account at the end of the Participation Year
shall not be less than the amount in such Account at the beginning of the
Participation Year plus the sum of all amounts transferred to such Account
pursuant to Section 2.05 less the sum of all amounts withdrawn and transferred
out of such Account pursuant to Sections 2.07, 2.07A, and Section 2.05, all
accumulated at 4% interest, compounded annually.
The Fixed Income Account for a participant terminates on the earliest of (i) the
Retirement Date, (ii) the death of the Participant and (iii)termination of
participation pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO ACCOUNT. Each Contribution made with respect to a
Participant pursuant to Section 2.01 will be allocated, as of the date by which
Equitable has received both such Contribution and direction as to its
allocation, to the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account or Money Market Account or in part to each, at the sole
direction of the Owner as specified to Equitable, unless the Owner transfers to
the Participant the right to allocate contributions to such Accounts maintained
for such Participant, provided that the percentage allocated to each Account is
a whole number.
Any amount that the Owner has directed to be transferred to the Fixed Income
Account, Stock Account, Balanced Account or Aggressive Stock Account pursuant to
Section 2.05 will be allocated as of the date of such transfer to the
appropriate Account maintained for such Participant.
Interest is allocated to the Fixed Income Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05 and 2.07, at the time of application of amounts in the Fixed
Income Account to provide Annuity Benefits, upon termination of participation
pursuant to Section 2.06, and upon death of the Participant pursuant to Section
2.09.
SECTION 2.05 TRANSFERS AMONG ACCOUNTS. At any time before a Participant's
Retirement Date, the Owner, unless the Owner transfers to the Participant the
right to transfer all or part of the amounts maintained for the Participant to
one or more of the other Accounts maintained for such Participant, upon written
request, may transfer all or part of the amounts maintained for the Participant
to one or more of the other Accounts maintained for such Participant as follows:
(1) amounts in the Fixed Income Account, Stock Account, Balanced Account and
Aggressive Stock Account may be transferred among such Accounts; (2) amounts in
the Money Market Account may be transferred to the other Accounts. Such
transfers will be made as of the date Equitable receives such request, and will
be subject to Equitable's rules in effect at the time of transfer. No transfers
are permitted from the Fixed Income Account, Stock Account, Balanced Account or
Aggressive Stock Account maintained for the Participant to the Money Market
Account. Notwithstanding the above, transfers to the Balanced Account may be
prohibited by Equitable upon 30 days written notice to the Owner.
SECTION 2.06 TERMINATION OF PARTICIPATION. Subject to any applicable
restrictions under the terms of the Plan, on or before a Participant's
Retirement Date, the Owner may elect by written notice to terminate
participation under the Contract. Upon receipt of such notice, Equitable will
determine the Cash Value, as of the date Equitable received such notice, of the
Fixed Income Account, Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account maintained for such Participant.
The payment of such Cash Value to the Owner may be deferred by Equitable in
accordance with the provisions of Section 4.08.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Annuity Value of the Participant's Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
pay to the Owner such Annuity Values and terminate such Participant's
participation under the Contract. This right may be exercised with respect to
the Participant only if both (i) no Contributions have been made under the
Contract during the last three Participation Years, and (ii) the sum of the
Annuity Values is $500 or less. Equitable reserves the right to terminate a
Participant's participation under the Contract if at least 120 days have elapsed
since the issue date shown on the certificate issued to such Participant under
the Contract and no Contributions have been made under the Contract with respect
to such Participant.
Upon payment of such Cash Values or Annuity Values, Equitable will be released
from any and all liability for payments with respect to the Contributions from
which the Cash Values or Annuity Values arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions under
the terms of the Plan, the Owner may elect by written notice to Equitable to
make a partial withdrawal from the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and the Fixed Income Account maintained for
such Participant before such Participant's Retirement Date.
Upon withdrawal pursuant to Section 2.07, Equitable will pay the lesser of the
sum of the Cash Values of such Accounts or the amount of partial withdrawal
requested to the person entitled to such payment as designated in writing by the
Owner. Unless instructed otherwise, the amount withdrawn (including the amount
of any withdrawal charge) will be allocated between such Accounts in proportion
to the Annuity Value of each such Account.
Upon any payment made at the direction of the Owner pursuant to Section 2.07,
Equitable will be released from any and all liability for payments with respect
to the Contributions from which the amounts so withdrawn arose.
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PARTICIPANT'S ACCOUNT (CONTINUED)
Payments made at the direction of the Owner pursuant to Section 2.07 may be
deferred by Equitable in accordance with the provisions of Section 4.06.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300.
SECTION 2.07A PARTIAL WITHDRAWAL CHARGES.
With respect to partial withdrawals requested by the Owner, there will be no
withdrawal charge if the amount of the partial withdrawal requested is not
greater than the Free Corridor Amount define in Section 2.07B. In that case,
Equitable will withdraw from the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account, and Fixed Income Account and pay at the
direction of the Owner an amount equal to the partial withdrawal requested.
However, if the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts an amount
equal to the Free Corridor Amount, and (ii) then withdraw an amount equal to the
excess of the amount requested over the Free Corridor Amount, plus a withdrawal
charge, if applicable. Such withdrawal charge will be calculated in the
following manner:
(a) Withdrawals of Contributions made on behalf of the Participant during
the current and five prior Participation Years will be subject to a
charge of 6% of the amount withdrawn (including such charge).
(b) Withdrawals of other amounts will not be subject to any withdrawal
charges.
Equitable will pay at the direction of the Owner the lesser of a) the amount
requested or b) the sum of Cash Values of the Accounts maintained on the
Participant's behalf.
For purposes of determining withdrawal charges described in this Section,
amounts withdrawn up to the Free Corridor Amount will not be considered a
withdrawal of any Contributions. Any excess withdrawals, i.e., those pursuant to
item (ii) above, shall be considered withdrawals of Contributions in the order
received, with the older Contributions first.
SECTION 2.07B FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" with respect
to the Owner means an amount equal to the excess, if any, of (i) 10% of the sum
of the Annuity Values of the Stock Account, Balanced Account, Aggressive Stock
Account, Money Market Account and the Fixed Income Account over (ii) cumulative
prior withdrawals made pursuant to Section 2.07 in the current Participation
Year with respect to the Participant.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year before a Participant's Retirement Date, Equitable will
withdraw from the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account maintained under the Contract,
as to the Contributions remitted with respect to such Participant, an annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i) the
Annuity Values of the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account at the end of that
Participation Year and (ii) any withdrawals made from such Accounts pursuant to
Section 2.07 during that Participation Year.
The charge will be allocated among the Stock Account, Balanced Account,
Aggressive Stock Account, Money Market Account and Fixed Income Account in
proportion to the Annuity Values of each such Account, at the end of the
Participation Year. As of a Participant's Retirement Date and before application
of the Annuity Values or Cash Values of such Participant's account pursuant to
Section 3.03, or upon termination of such account pursuant to Section 2.06 or
Section 2.09 during a Participation Year, Equitable will withdraw the
administrative charge described in this Section for the applicable part of that
Participation Year.
SECTION 2.09 DEATH BENEFIT. If a Participant dies while Accounts for such
Participant are maintained under the Contract, Equitable, upon receipt of due
proof of such death, will pay to the beneficiary the death benefit payable with
respect to such Participant.
If the beneficiary under the certificate is the Trustee, the Trustee may,
subject to the terms of the Plan, change the beneficiary within 31 days after
Equitable receives due proof of the Participant's death. The change shall be
made in the same manner and subject to the same provisions as apply to a change
of beneficiary during the Participant's lifetime.
If the Trustee changes the beneficiary of the certificate after the death of the
Participant according to the terms of the Plan, the Trustee may elect an Annuity
Benefit on any annuity form offered by Equitable, subject to Equitable's rules
then in effect, for the benefit of the beneficiary. The beneficiary may not
revoke or change any election made by the Trustee. If the Trustee does not make
an election, the beneficiary may make such election for the beneficiary's own
benefit.
If the beneficiary under the certificate is not the Trustee, and the Participant
is married at the time of death of such Participant, Equitable will pay the
death benefit under the certificate to the spouse of the Participant in the form
of a Life Annuity, unless the spouse of the Participant makes an election for a
single sum payment or for an Annuity Benefit on any other annuity form offered
by the Equitable, subject to Equitable's rules then in effect.
If the Equitable determines that the Participant is married at the time of
death, the beneficiary under the certificate is not the spouse of such
Participant and the spouse of such Participant has not given written consent to
the designation of another beneficiary, Equitable shall have the right to pay
the death benefit to the spouse of such Participant instead of the named
beneficiary, if such action is required to comply with Federal law.
The amount of the death benefit with respect to a Participant at any time prior
to the Retirement Date is equal to the greater of (i) the
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PARTICIPANT'S ACCOUNT (CONTINUED)
sum of the Annuity Values of the Fixed Income Account, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account maintained under the
Contract for such Participant and (ii) the minimum death benefit with respect to
such Participant. Such minimum death benefit is the sum of all Contributions
made with respect to such Participant pursuant to Section 2.01 less an
adjustment for any withdrawals made pursuant to Section 2.07 from the Accounts
maintained under the Contract for such Participant. Any such withdrawal will
reduce the minimum death benefit (as adjusted by any previous such withdrawal)
by an amount which is in the same proportion as the amount being withdrawn is to
the Annuity Values then in the Fixed Income Account, Stick Account, Balanced
Account, Aggressive Stock Account and Money Market Account maintained under the
Contract for such Participant.
The amount of any death benefit payable with respect to a Participant, to the
extent such Account is sufficient therefore, will be withdrawn from the Fixed
Income Account, Stock Account, Balanced Account, Aggressive Stock Account and
Money Market Account maintained with respect to such Participant under the
Contract. Upon such payment, Equitable will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Values arose.
PART III -- ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of Separate Account A.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to the payee pursuant to Section 3.04. The amount
of the fourth and each subsequent payment under a Variable Annuity Benefit will
be equal to the number of Annuity Units with respect to such Benefit, multiplied
by the Average New Annuity Unit Value for the second calendar month immediately
preceding the date of the payment. The fourth and subsequent annuity payments
under a Variable Annuity Benefit will not be increased or decreased in amount
because of mortality or expense experience. The number of Annuity Units with
respect to a benefit is the number determined by dividing the amount of the
first monthly payment under such benefit by the New Annuity Unit Value for the
Valuation Period which includes the due date of the first monthly payment.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living, the
Annuity Values of such Participant's Fixed Income Account, Stock Account
Balanced Account, Aggressive Stock Account and Money Market Account shall be
applied to provide the Normal Form of Annuity Benefit, unless the Owner on
behalf of the Participant and, if applicable, the Participant's spouse elects
(i) to receive the Cash Value of such Accounts in a single sum or (ii) to apply
such Annuity Value or Cash Value, whichever is applicable pursuant to the first
paragraph of Section 3.04, to provide an Annuity benefit on any other annuity
form offered by Equitable, subject to Equitable's rules then in effect, the
terms of the Plan, and any applicable requirements under the Code.
Equitable will provide notice and election forms to the Owner not more than six
months before the Participant's Retirement Date.
If the Owner elects to terminate a Participant's participation under the
Contract pursuant to Section 2.06 before the Retirement Date, an election may be
made to receive an Annuity Benefit in lieu of the Cash Values of such
Participant's Fixed Income Account, Stock Account, Balanced Account, Aggressive
Stock Account and Money Market Account.
Equitable has the right to require the Owner to furnish pertinent information to
provide an Annuity Benefit, and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If the Owner elects to receive an
Annuity Benefit in lieu of the Cash Values of the Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money market Account,
the amount applied to provide the Annuity Benefit will be (i) the Annuity Values
of such Accounts, if the payments under the annuity form elected are contingent
upon the survival of a person, or (ii) the Cash Values of such Accounts if the
payments under the annuity form elected are not contingent upon the survival of
a person. If such amount is applied on or after the completion of five
Participation Years with respect to such Participant: (1) the balance, less any
Contribution made on behalf of the Participant during the current and five prior
Participation Years, shall purchase the Annuity Benefit on the basis of either
(i) the Table of Guaranteed Annuity Payments shown herein or (ii) Equitable's
current individual annuity rates for payment of proceeds, whichever rates would
provide a larger benefit with respect to the payee; (2) any Contributions made
on behalf of the Participant
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ANNUITY BENEFITS (CONTINUED)
during the current and five prior Participation Years shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed annuity payments
shown herein or (ii) Equitable's current individual rates applicable to funds
which derive from sources outside Equitable, whichever rates would provide a
larger benefit with respect to the payee. If such current individual annuity
rates are used, such Participant's certificate will be replaced by an Equitable
supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a Participant, the
balance, after any applicable tax on annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown herein or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account maintained
for such Participant shall terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form or the Joint and Survivor Life
Annuity Form (100% continuation). The amounts of income provided under the Fixed
Annuity Benefit payable on the Life Annuity Form and Joint and Survivor Life
Annuity Form, are based on 3 1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on a 50-50 split of males and
females. The amounts of income initially provided under the Variable Annuity
Benefit payable on the Life Annuity Form and Joint and Survivor Life Annuity
Form are based on the projected 1983 Basic Table adjusted to a unisex basis
based on a 50-50 split of males and females and an Assumed Base Rate of Net
Investment Return of 3 1//2% or 5%, whichever applies pursuant to Section 1.16.
The Assumed Base Rate of Net Investment Return is 5% for certificates issued for
delivery in New York. Equitable may change the monthly income amounts contained
in the Tables of Guaranteed Annuity Payments and the basis for determining such
amounts, for new Participants, by at least 90 days advance notice to the
Contract Holder and by an amendment to the Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/2% interest and the 1983 Individual Annuity
Mortality Table adjusted to a unisex basis based on 50-50 split of males and
females if such annuity form provides for a Fixed Annuity Benefit, and on the
projected 1983 Basic Table adjusted to a unisex basis based on a 50-50 split of
males and females and an Assumed Base Rate of Net Investment Income Return of 5%
or 3 1/2%, whichever applies pursuant to Section 1.16, if such annuity form
provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's survival must
be furnished to Equitable either by personal endorsement of the check drawn for
payment or by other means satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. The amount of the overpayments by Equitable will be charged
against and the amount of the underpayments will be added to any payments
thereafter falling due under the Contract with respect to the payee. The
liability of Equitable with respect to a payee is limited to the correct
information and the actual amounts used to provide the benefits then in force
with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, or (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may, unless the Plan provides to the contrary, make the payments (in
the case of a minor, at a rate not exceeding $200 a month) to such other person
or institution, and will thereupon be fully discharged from all liability with
respect thereto.
If an annuity form made available by Equitable provides for payment for a period
certain, such as 120 or 180 months, and thereafter during the remaining lifetime
of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person to receive the
commuted value of any remaining payments, provided no person upon whose life the
income depends is surviving.
Upon election by the Owner on behalf of the Participant and, if applicable, the
Participant's spouse, pursuant to Section 3.03 of an annuity form providing
payments for a period certain, such Owner may designate (with the right to
change such designation, in accordance with the terms of the Plan) a person or
persons to receive any payments that may become due after the death of the
person or persons upon whose life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person, unless the Plan provides to the contrary) a
person or persons to receive any payments or installments payable after such
payee's death, if the absence of such a designation would result in a single sum
payment to such payee's executors or administrators in accordance with the
following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
Page Ten
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<PAGE>
Page Eleven
-----------
ANNUITY BENEFITS (CONTINUED)
The commuted value of any such remaining payments or installments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis.
If the amount to be applied hereunder is less than $3,500, Equitable may pay the
amount to the payee in a single sum instead of applying it under the annuity
form elected pursuant to Section 3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.54 4.58 4.62 4.66 4.70 4.74 4.77 4.81 4.84 4.88 4.91
61 4.62 4.67 4.71 4.76 4.81 4.84 4.88 4.91 4.95 4.99
62 4.72 4.76 4.81 4.85 4.90 4.94 4.98 5.02 5.06
63 4.81 4.86 4.91 4.96 5.01 5.06 5.10 5.14
64 4.92 4.97 5.02 5.08 5.13 5.17 5.22
65 5.03 5.09 5.15 5.20 5.26 5.31
66 5.15 5.21 5.27 5.33 5.39
67 5.28 5.34 5.40 5.47
68 5.41 5.48 5.55
69 5.56 5.63
70 5.71
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION -- ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.40 4.44 4.58 4.51 4.55 4.58 4.61 4.65 4.68 4.71 4.74
61 4.48 4.52 4.56 4.60 4.64 4.67 4.71 4.74 4.78 4.81
62 4.56 4.60 4.65 4.69 4.73 4.77 4.80 4.84 4.85
63 4.65 4.69 4.74 4.78 4.83 4.87 4.91 4.95
64 4.74 4.79 4.84 4.89 4.93 4.98 5.02
65 4.85 4.90 4.95 5.00 5.05 5.10
66 4.95 5.01 5.06 5.11 5.17
67 5.07 5.12 5.18 5.24
68 5.19 5.25 5.32
69 5.32 5.39
70 5.46
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM -- 100% CONTINUATION -- ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.27 5.30 5.34 5.37 5.41 5.44 5.47 5.51 5.54 5.57 5.59
61 5.34 5.38 5.42 5.46 5.49 5.53 5.57 5.60 5.63 5.66
62 5.42 5.46 5.50 5.54 5.58 5.62 5.65 5.69 5.73
63 5.50 5.55 5.59 5.63 5.67 5.71 5.75 5.79
64 5.59 5.64 5.69 5.73 5.78 5.82 5.86
65 5.69 5.74 5.79 5.84 5.89 5.93
66 5.79 5.85 5.90 5.95 6.00
67 5.90 5.96 6.02 6.08
68 6.02 6.08 6.15
69 6.15 6.22
70 6.29
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
AGE FIXED ANNUITY BENEFIT INVESTMENT RETURN IS
--- -------------------- ---------------------------
3 1/2% 5%
------ ---
60 5.29 5.08 5.97
61 5.41 5.19 6.08
62 5.55 5.31 6.20
63 5.69 5.44 6.33
64 5.85 5.58 6.46
65 6.01 5.73 6.61
66 6.19 5.89 6.77
67 6.37 6.06 6.94
68 6.58 6.24 7.12
69 6.79 6.43 7.31
70 7.02 6.64 7.52
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average New Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.08.
-----------
Page Eleven
<PAGE>
Page Twelve
-----------
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. The Contract constitutes the entire agreement between the
parties and the provisions of the Contract alone will govern with respect to the
rights and obligations of Equitable. The provisions of the Contract will be
applied separately with respect to each Participant. Nothing in the enrollment
form referred to in Section 1.05, the Plan or trust agreement referred to in
Section 4.10 nor any modification, amendment, or supplement to any such
documents will in any way be construed to enlarge, change, vary or in any other
way affect the obligations of Equitable as expressly provided in the Contract.
The Contract may not be modified by Equitable, nor may any of Equitable's rights
or requirements be waived, except in writing and by an authorized officer of
Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the express consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE. Equitable reserves the right to amend the
Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the Contract and any certificate to reflect changes in
the Code, or in regulations or published rulings of the Internal Revenue
Service.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY. The entire interest of any
Participant under the Contract is nonforfeitable.
If the Owner is the Trustee, the Trustee may assign the interest of a
Participant under the Contract. However, while the Contract is part of a plan
that is intended to meet the requirements for qualification under Section 401(a)
of the Code, the Trustee may assign the interest of a Participant under the
Contract only if permitted by that plan. Equitable will not be bound by such an
assignment unless the assignment is written and received by Equitable. The
rights of the Participant, the Owner, the Trustee and the Employer will be
subject to such an assignment. Equitable assumes no responsibility for the
validity of any assignment.
If the Owner is other than the Trustee, no interest of a Participant under the
Contract may be sold, assigned, discounted, or pledged as collateral for a loan
or as security for the performance of an obligation or for any other purpose to
any person other than Equitable.
No amount payable under the Contract may be assigned, commuted, or encumbered by
the payee, and, to the extent permitted by law, no such amount will in any way
be subject to any claim against such payee.
Notwithstanding the foregoing, the provisions of this Section 4.03 shall not be
construed so as to prevent compliance with a "qualified domestic relations
order" (as that term is defined in Section 414(p) of the Code).
SECTION 4.04 PARTICIPATION IN SURPLUS. The Contract and all other contracts in
the same class of contracts shall be combined for the purpose of ascertaining
the annual surplus of Equitable to be apportioned to said contracts as a
dividend and the portion of any such dividend that is to be allocated to the
Contract shall be determined by Equitable. The participation of this class of
contracts in annual surplus is, however, expected to be minimal. Any amount so
allocated to the Contract shall be payable as of January 1 of the calendar year
in which a dividend is apportioned and will be payable in cash and shall be
equitably allocated by Equitable to the Fixed Income Accounts maintained
hereunder for each Participant.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.05 BENEFICIARY. The Owner, as of the Participant's Participation Date,
is to provide Equitable with an initial designation of the beneficiary entitled
to receive any death benefit payable with respect to such Participant pursuant
to Section 2.09. The Owner may change such designation from time to time during
the Participant's lifetime and while Accounts for such Participant are
maintained hereunder. If the Beneficiary is the Trustee, the Trustee will have
the right within 31 days of the day Equitable receives due proof of death of
such Participant and pursuant to the provisions of the Plan, to change the
beneficiary entitled to receive the death benefits with respect to the
Participant.
If the Trustee is not the beneficiary, the beneficiary will be the spouse of the
Participant for any married Participant, unless the spouse has given written and
witnessed consent to the designation of another beneficiary, or the Participant
can establish that the spouse cannot be located in accordance with the Plan and
the requirements of the Code. Such spousal consent must be on file with the
Trustee while the certificate is owned by the Trustee. If the Trustee is not the
Owner, such spousal consent must be presented to Equitable with the change of
beneficiary request or with proof of the death of the Participant and the
election for an Annuity Benefit.
SECTION 4.06 DISQUALIFICATION. In the event that an annuity purchased hereunder
with respect to a Participant fails to qualify as an Annuity as described in
Section 1.03, Equitable shall have the right, upon receiving notice of such fact
before the Retirement Date, to terminate participation with respect to such
Participant under the Contract and pay at the direction of the Owner the amount
in the Account maintained with respect to such Participant less a deduction for
the appropriate part attributable to the Owner of any Federal income tax payable
by Equitable which would not have been payable if the Owner had an Annuity under
the Contract.
-----------
No. 11938C Page Twelve
<PAGE>
Page Thirteen
-------------
GENERAL PROVISIONS (CONTINUED)
SECTION 4.07 FUTURE PARTICIPANTS. Equitable reserves the right at its sole
discretion to curtail or prohibit further enrollment as Participants under the
Contract of any individuals who are not currently participating under the
Contract as of such date of curtailment or prohibition.
SECTION 4.08 DEFERMENT. Payments by Equitable from the Participant's Fixed
Income Account pursuant to the provisions of Sections 2.06, 2.07, 207A and
2.09, or any commuted payments arising from a Fixed Annuity Benefit pursuant to
Section 3.05, may be deferred for up to six months after receipt of a written
request for such surrender or withdrawal, or receipt of due proof of death of
the Participant, respectively, or receipt of due documentation for such
commutation payment pursuant to Section 3.05. Interest at the current Guaranteed
Interest Rate for such Participant's Fixed Income Account will be allowed on any
such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the Participant's
Stock Account, Balanced Account, Aggressive Stock Account or Money Market
Account pursuant to the provisions of Sections 2.06, 2.07A and 2.09, or any
commuted payments arising from a Variable Annuity Benefit pursuant to Section
3.05, will be made within seven days after receipt of a written request for such
surrender or withdrawal, or receipt of due proof of death of the Participant,
respectively, or receipt of due documentation for such commutation payment
pursuant to Section 3.05.
During any period when (i) the sale of securities or the determination of the
New Accumulation Unit Value or the Average New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or trading
on such Exchange is restricted, or (ii) the Securities and Exchange Commission
may by order permit postponement for the protection of persons having interests
in the Separate Accounts, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of
Cash Values and Annuity Values, arising from an amount in a
Participant's Stock Account, Balanced Account, Aggressive Stock Account
or Money Market Account;
(b) to defer payment of any portion of the death benefit arising from an
amount in a Participant's Stock Account, Balanced Account, Aggressive
Stock Account or Money Market Account;
(c) to defer the payment of any Variable Annuity Benefit under the Contract
or the application of any such Variable Annuity Benefit to provide for
any other payment called for by the Contract; or
(d) in the event of (a) above, to defer application of such amount to
provide any Annuity Benefit permitted under the Contract.
SECTION 4.09 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Owner with a notice
showing as of a specified recent date (1) the Annuity Value of the Fixed Income
Account, (2) the total number of Accumulation Units credited to the Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
(3) the new Accumulation Unit Values, (4) the sum of the Cash Values of the
Fixed Income Account, Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account and (5) the amount of death benefit payable with
respect to the Participant. After the Retirement Date, Equitable will notify the
Participant of the number of Annuity Units and the Average New Annuity Unit
Value used in determining the amount of each Variable Annuity Benefit payment,
if any.
SECTION 4.10 CONTRACT HOLDER RESPONSIBILITY. The sole responsibility of the
Contract Holder is to serve as party to the Contract. The Contract Holder will
have no responsibility for the administration of any Plan, for payments to the
Fixed Income Account, Stock Account, Balanced Account, Agggressive Stock Account
or Money Market Account, or any payments or other distributions hereunder.
Equitable will deal with the Contract Holder in accordance with the terms and
conditions of the trust agreement pursuant to which the Contract Holder agreed
to act as such and with the Contract and in such manner as the Contract Holder
and Equitable may agree, without the consent of any other person. Any Employer
or Trustee making Contributions under the Contract shall be deemed to have
adopted and accepted the trust agreement as part of the Plan with respect to
which such Contributions are made.
SECTION 4.10A TRUSTEE'S RESPONSIBILITY. The Trustee shall hold this certificate
on behalf of the Participant and the Participant's beneficiaries as an asset of
the trust, unless the Contract is distributed to the Participant pursuant to the
terms of the Plan. The Trustee shall be responsible for transferring all
payments made under this certificate to the Participant and the Participant's
beneficiaries in accordance with the terms of the Plan and the applicable
provisions of the Code. Equitable shall make no payment hereunder without
written instructions from the Trustee, and Equitable shall be fully discharged
of any liability therefor to the extent such payments are made to and at the
direction of the Trustee.
SECTION 4.11 AGE. If the Participant's age has been misstated, any benefits will
be those which would have been purchased at the correct age. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
No. 11938C Page Thirteen
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
For Participants in HR-10 Plans, effective on your Participation Date, we have
amended your Certificate issued under Group Annuity Contract No. 11938C-C as
follows:
With respect to PART II - PARTICIPANT'S ACCOUNTS, SECTION 2.08 ANNUAL
ADMINISTRATIVE CHARGE is amended to read as follows:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year before a Participant's Retirement Date, if the sum of the
Annuity Values of the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account on that date is less than
$10,000.00, Equitable will withdraw from the Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
maintained under the Contract, as to the Contributions remitted with respect to
such Participant, an annual administrative charge equal to the lesser of $30 or
2% of the sum of (i) the Annuity Values of the Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account at
the end of that Participation Year and (ii) any withdrawals made from such
Accounts pursuant to Section 2.07 and 2.07A during that Participation Year. The
charge will be allocated among the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and Fixed Income Account in proportion to
the Annuity Values of each such Account, at the end of the Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Values or Cash Values of such Participant's Account pursuant to Section 3.03 or
upon termination of such Account pursuant to Section 2.06 or Section 2.09 during
a Participation Year, if the sum of the Annuity Values of the Fixed Income
Account, Stock Account, Balanced Account, Aggressive Stock Account, and Money
Market Account at that date is less than $10,000.00, Equitable will withdraw the
administrative charge described in this Section for the applicable part of that
Participation Year.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17051C
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O. New York,
New York 10116
Group Annuity Contract Between
The Equitable Life Assurance Society of the United States
and
Rhode Island Hospital Trust
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
AGREES
O To allocate the Contributions made to the Contract to the Stock Account,
Balanced Account, Aggressive Stock Account, Money Market Account or the Fixed
Income Account maintained for the Participant, in accordance with Sections
2.02 and 2.03, or in part to any one, as directed by the Participant.
o To apply the amount in the Stock Account, Balanced Account, Aggressive Stock
Account, Money Market Account and the Fixed Income Account at the Retirement
Date to provide the Participant with an Annuity Benefit or a Cash Value
Benefit if the Participant is then living, and
o To provide the Participant with the other rights and benefits of this
certificate.
These agreements are subject to the provisions of this certificate.
TEN DAYS TO EXAMINE CERTIFICATE - The Participant may terminate participation
under the Contract and cancel this certificate by returning it to Equitable
within ten days after receipt of it. Upon such cancellation, Equitable will
refund any Contribution made to Equitable on behalf of a Participant under the
Contract, plus or minus any investment gain or loss experienced in the
Participant's Stock Account, Balanced Account, Aggressive Stock Account, or
Money Market Account from the date such Contribution is allocated to such
Account to the date of such Cancellation.
/s/John B. Carter
President
/s/Rodney L. Enochs
Vice President
and Secretary
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN SEPARATE ACCOUNTS
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF
SEPARATE ACCOUNT A. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE
DAILY RATE OF INVESTMENT RETURN IN SEPARATE ACCOUNT A IS EQUIVALENT TO MORE THAN
6.75% OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75%
OR 5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.15 IS 5% OR 3 1/2%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND
MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO
PROVIDE FOR TAXES.
NO. 11937C NQ
<PAGE>
CONTENTS
Part I - Definitions Page 2
Part II - Participant's Account Page 5
Part III - Annuity Benefits Page 8
Part IV - General Provisions Page 11
Equitable certifies that the Participant as named on Page 3 is included under
the Group Annuity Contract designated on Page 3 ("the Contract"), all pertinent
provisions of which are set forth below.
The Contract is issued in consideration of the payment to Equitable of the
Contributions made under the Contract.
The provisions on the following pages are part of this certificate.
PART I - DEFINITIONS
SECTION 1.01 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Part III of the Contract.
SECTION 1.02 PARTICIPANT. The term "Participant" means a person who has been
enrolled by Equitable under the Contract. A person shall become enrolled under
the Contract upon receipt by Equitable of an enrollment form made available by
Equitable and completed in a manner satisfactory to Equitable.
SECTION 1.03 OWNER. The Owner of a certificate issued under the Contract is the
Participant unless otherwise stated in the enrollment form, or later changed.
Notwithstanding any provisions in the certificate to the contrary, only the
Owner can exercise all the rights under the certificate while the Participant is
living. The Owner does not need the consent of anyone who has only a conditional
or future ownership interest in a certificate.
While the Participant is living, an Owner of a certificate issued on behalf of
the Participant may change the Owner by written notice satisfactory to
Equitable. The change will take effect on the date the Owner signs the notice,
except it will not apply to any payment Equitable makes or other actions
Equitable takes before Equitable receives the notice.
SECTION 1.04 ASSIGNMENTS. A certificate issued under the Contract may not be
assigned as collateral or security for a loan. Otherwise, the Participant may
assign this certificate before the Retirement Date but Equitable will not be
bound by an assignment unless it is in writing and Equitable has received it.
The Participant's rights and those of any of persons referred to in the
certificate will be subject to the assignment. Equitable assumes no
responsibility for the validity of any assignment.
No amounts payable under a certificate to a payee other than the Owner may be
assigned by that payee, nor will they be subject to the claims of creditors or
to legal process, except to the extent permitted by law.
SECTION 1.05 CONTRIBUTION. The term "Contribution" means a payment made to
Equitable for a Participant with respect to an annuity purchased for such
Participant under the Contract Equitable is under no obligation to accept any
Contribution less than $50.00.
SECTION 1.06 PARTICIPATION DATE. The term "Participation Date" with respect to a
Participant means the date as of which Equitable has enrolled such Participant
under the terms of the Contract, as shown on Page 3 of the certificate.
SECTION 1.07 PARTICIPATION YEAR. The term "Participation Year" with respect to a
Participant means the twelve month period beginning on (i) the Participation
Date, and (ii) each anniversary thereof, unless otherwise agreed to in writing
by Equitable.
SECTION 1.08 CLASS OF PARTICIPANTS. Except as provided in Section 1.09, the term
"Class of Participants" refers to all Participants whose Participation Date is
in the same calendar year.
SECTION 1.09 GUARANTEED INTEREST RATE. In regard to a Fixed Income Account, the
term "Guaranteed Interest Rate" means the effective annual rate at which
interest accrues on the amount in such Account. Interest accrues daily. The
Guaranteed Interest Rate will never be less than 4% per annum.
Equitable will from time to time establish and make available to new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new Class of Participants will
--------
No. 11937C NQ Page Two
<PAGE>
Page Three
----------
DEFINITIONS (CONTINUED)
be established effective with the effective date of the occurrence of (ii) or
(iii) above or any combination thereof.
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine for
each established Class of Participants a Guaranteed Interest Rate and duration
for such Class which exceeds the applicable Minimum Guaranteed Interest Rate.
Equitable will notify each Participant in writing of the applicable Guaranteed
Interest Rate and duration.
Equitable reserves the right to combine one or more Classes of Participants into
a single Class of Participants, provided such Classes were initially established
during a continuous period of time.
SECTION 1.10 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Participant is to attain the retirement age specified in the Participant's
enrollment form. Before the Retirement Date the Participant may elect to change
the Retirement Date to another Retirement Date, which may be any date after the
filing of the election (other than the 29th, 30th, or 31st day of any month). No
Retirement Date shall be later than the date the Participant attains age 85. Any
election for such change must be made in writing by the Participant and shall
not take effect until received by Equitable at its Processing Office.
SECTION 1.11 NORMAL FORM. The "Normal Form" of an Annuity Benefit under the
Contract means the Fixed Annuity Benefit payable on the Life Annuity Form, as
defined in Sections 3.01 and 1.12, with 10 years of payments guaranteed.
SECTION 1.12 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
providing fixed monthly payments during the lifetime of the person upon whose
life such payments depend. The payments commence on the date as of which the
Life Annuity Form is purchased and terminate with the last payment due before
the death of such person.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by the Participant. The payments commence on the date as of which the
Joint and Survivor Life Annuity Form is purchased and terminate with the last
payment due before the death of the survivor.
SECTION 1.14 THE SEPARATE ACCOUNTS. The term "Separate Accounts" means the
following separate investment accounts maintained by Equitable to which portions
of its assets have been allocated for the Contract and certain other contracts:
Name Investments
---- -----------
Separate Account A Primarily common stock and other equity-type investments.
Separate Account E Primarily short-term money market instruments.
Separate Account J Primarily common stocks and other equity-type investments,
publicly traded debt securities and short-term money market
instruments.
Separate Account K Primarily common stocks issued by high quality small and
intermediate size companies with strong growth prospects.
Equitable reserves the right to withdraw from any Separate Account and allocate
to another separate account assets determined by Equitable to be associated with
the class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid odd lots and
fractions. On and after the date of any such withdrawal the reference in the
Contract to such Separate Account shall mean such other separate account to
which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Accounts will, at most
times, consist primarily of the types of investments indicated above. Equitable
may, however, at its discretion invest the assets of any Separate Account in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including attorneys in its employ) as to what investments it
is permitted by law to make.
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DEFINITIONS (CONTINUED)
In lieu of making such investments directly, Equitable reserves the right to
operate any Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
any Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) run any Separate Account under direction of a committee,
and to discharge such committee at any time; and (iii) restrict or eliminate any
voting rights of participants or other persons who have voting rights as to the
Separate Accounts.
Assets of the Separate Accounts attributable to the Contract shall be subject to
a charge at the rate of 1.75% a year, for investment management, financial
accounting, the annuity rate guarantee and the minimum death benefit, and
expenses and expense risk. The charge shall be made in accordance with (c) of
the Net Investment Factor provision in Section 1.15.
The assets of Separate Accounts are the property of Equitable; however, the
portion of the assets of each Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising our of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of the Separate Accounts in excess of such
reserves and contract liabilities to the general account of Equitable.
SECTION 1.15 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS.
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business days immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which the New York
Stock Exchange is open.
NET INVESTMENT FACTOR: For each Separate Account the Net Investment Factor for a
Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of assets in the Separate Account at the close of business
of the preceding Valuation Period plus (2) the investment income and the
capital gains, realized or unrealized, credited to the assets of the
Separate Account in the Valuation Period for which the Net Investment
Factor is being determined, minus (3) the capital losses, realized or
unrealized, charged against such assets in such Valuation Period, minus (4)
any amount charged against the Separate Account in such Valuation Period
for taxes or for amounts set aside by Equitable as a reserve for taxes
attributable to the maintenance or operation of the Separate Account.
(b) is the value of the assets in the Separate Account at the close of business
of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period, of
.00004837 for investment management, financial accounting, the annuity rate
guarantee and the minimum death benefit, and expenses and expense risk.
The value of the assets in the Separate Accounts, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
their fair value, as determined in accordance with accepted accounting practices
and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the value
of the interest of a Participant's Stock Account. Balanced Account, Aggressive
Stock Account or Money Market Account on or before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Values for the
Separate Accounts have been established as follows:
Account Value Date
------- ----- ----
Separate Account A $10.00 As of November 1, 1968
Separate Account E $10.00 As of September 4, 1974
Separate Account J $10.00 As of May 1, 1984
Separate Account K $10.00 As of May 1, 1984
The New Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from Separate Account A under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value for Separate Account
A has been established at $1.00 as of November 1, 1968. The Annuity Unit Value
for any subsequent Valuation Period is the New Annuity Unit Value for the
immediately preceding Valuation Period multiplied by the Adjusted Net Investment
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DEFINITIONS (CONTINUED)
Factor for such subsequent Valuation Period. The Adjusted Net Investment Factor
for a Valuation Period is the Net Investment Factor for such period reduced for
each calendar day in such subsequent Valuation Period by the Net Investment
Factor times (i) .00013366, if the Assumed Base Rate of Net Investment Return is
5%, and (ii) .00009425, if the Assumed Base Rate of Net Investment Return is
3 1/2%. The Assumed Base Rate of Net Investment Return shall be 5%, except in
states where the rate is not permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average New Annuity Unit Value for Separate
Account A for a calendar month is equal to the average of the New Annuity Unit
Values for the Valuation Periods ending in such month.
SECTION 1.16 ANNUITY VALUE. The term "Annuity Value" with respect to a
Participant's Fixed Income Account, Stock Account, Balanced Account, Aggressive
Stock Account and Money Market Account, means the amount in such Accounts
pursuant to Sections 2.02 and 2.03.
SECTION 1.17 CASH VALUE. With respect to a Participant, the term "Cash Value"
with respect to such Participant's Fixed Income Account, Stock Account, Balanced
Account, Aggressive Stock Account, and Money Market Account means an amount
equal to the greater of (i) or (ii) below:
(i) the Annuity Value of such Accounts less 6% of the Contributions made during
the current and five prior Participation Years which had not been
previously withdrawn pursuant to Section 2.07A.
(ii) the sum of (a) the Free Corridor Amount as defined in Section 2.07B and (b)
94% of (the Annuity Value of such Accounts less the Free Corridor Amount).
SECTION 1.18 CODE. The term "Code" means the Internal Revenue Code of 1954, as
now or hereafter amended, or any corresponding provisions of prior or subsequent
United States revenue laws.
PART II - PARTICIPANT'S ACCOUNTS
SECTION 2.01 CONTRIBUTIONS. Contributions may be made with respect to a
Participant on whichever basis, as described under subsections A and B below, is
specified upon the Participant's enrollment under the Contract. If Contributions
are made by or on behalf of a Participant under more than one such basis,
Equitable will accept such Contributions if the Participant is separately
enrolled under the Contract under each basis, and in such case separate
certificates will be issued under the Contract for the Participant reflecting
amounts accumulated on the Participant's behalf attributable to Contributions
made under each Contribution basis.
A. Post-August 13, 1982 Basis
Contributions are to be made from time to time at the Participant's discretion.
With each Contribution, the Participant with respect to whom such Contribution
is being made and the amounts to be allocated to the Stock Account, Money Market
Account, Fixed Income Account, Balanced Account and Aggressive Stock Account
shall be specified.
A Participant may transfer to the Contract under this basis any amount held with
respect to such Participant under a deferred annuity contract, where such
transferred amount represents amounts invested in or credited to investments in
annuity contracts after August 13, 1982.
B. Pre-August 14, 1982 Basis
A Participant may transfer to the Contract under this basis any amount held with
respect to such Participant under a deferred annuity contract where such
transferred amount represents amounts invested in or credited to investments in
annuity contracts prior to August 14, 1982. New Contributions cannot be made
under this basis.
SECTION 2.02 STOCK, BALANCED, AGGRESSIVE STOCK AND MONEY MARKET ACCOUNTS.
Equitable maintains a Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account under the Contract for each Participant with respect to
whom Contributions are made. Any amount allocated to the (1) Stock Account
becomes part of Separate Account A. (2) Balanced Account becomes part of
Separate Account J. (3) Aggressive Stock Account becomes part of Separate
Account K. and (4) Money Market Account becomes part of Separate Account E. Any
amount withdrawn from an Account will no longer be part of the applicable
Separate Account.
On any date when an amount is allocated to or withdrawn from an Account, the
Account will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the New Accumulation
Unit Value for the appropriate Separate Account for the Valuation Period which
includes that date. The number of Units in an Account on any date is equal to
(i) the sum of any Accumulation Units that have been credited to the Account
minus (ii) the sum of any Accumulation Units that have been charged to that
Account. The amount in the Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account on any date is equal to the product of (i) the
number of Accumulation Units in such Account on that date and (ii) the New
Accumulation Unit Value for the appropriate Separate Account for the Valuation
Period which includes that date, less any administrative charge accrued but not
made.
SECTION 2.03 FIXED INCOME ACCOUNT. Equitable maintains a Fixed Income Account
under the Contract for each Participant with respect to whom Contributions are
made. Any amount allocated to the Fixed Income Account becomes part of the
general assets of Equitable, which support the guarantees of the Contract and
other contracts.
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PARTICIPANT'S ACCOUNT (CONTINUED)
The amount in a Fixed Income Account at any time is equal to the sum of all
amounts that have been allocated to such Fixed Income Account pursuant to
Section 2.04 plus the amount of any interest accrued but not allocated, less the
sum of all amounts that have been withdrawn pursuant to Sections 2.07, 2.07A,
and Section 2.08 from such Account, and transferred pursuant to Section 2.05
from such Fixed Income Account, and less any annual administrative charges
accrued but not made. Equitable guarantees that the amount in a Fixed Income
Account at any time before the Retirement Date will not be less than the sum of
all amounts allocated to such Account pursuant to Section 2.04 or transferred to
such Account pursuant to Section 2.05 and less the sum of all amounts that have
been withdrawn from such Account pursuant to Sections 2.07, 2.07A and 2.08 all
accumulated at 4% interest, compounded annually. In any Participation Year in
which no Contribution is allocated to a Fixed Income Account, the amount in such
Account at the end of the Participation Year shall in no event be less than the
amount in such Account at the beginning of the Participation Year plus the sum
of all amounts transferred to such Account pursuant to Section 2.05 less the sum
of all amounts withdrawn and transferred out of such Account pursuant to
Sections 2.07, 2.07A, and Section 2.05, all accumulated at 3% interest,
compounded annually.
A Fixed Income Account for a Participant terminates on the earliest of (i) the
Retirement Date, (ii) the death of the Participant, and (iii) termination of
participation pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO ACCOUNT. Each Contribution made with respect to a
Participant pursuant to Section 2.01, will be allocated, as of the date by which
Equitable has received at its Processing Office both such Contribution and
direction as to its allocation, to the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account or Money Market Account or in part to
each, at the sole direction of the Participant as specified to Equitable,
provided that the percentage allocated to each Account is a whole number.
Any amount that a Participant has directed to be transferred to the Fixed Income
Account, Stock Account, Balanced Account or Aggressive Stock Account pursuant to
Section 2.05 will be allocated as of the date of such transfer to the
appropriate Account maintained for such Participant.
Interest is allocated to the Fixed Income Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05 and 2.07 and 2.07A, at the time of application of amounts in the
Fixed Income Account to provide Annuity Benefits, upon termination of
participation pursuant to Section 2.06, and upon death of the Participant
pursuant to Section 2.09.
SECTION 2.05 TRANSFERS AMONG ACCOUNTS. At any time before a Participant's
Retirement Date, such Participant may transfer all or part of the amounts
maintained for the Participant to one or more of the other Accounts maintained
for such Participant as follows: (1) amounts in the Fixed Income Account, Stock
Account, Balanced Account and Aggressive Stock Account may be transferred among
such Accounts; (2) amounts in the Money Market Account may be transferred to the
other Accounts. Such transfers will be made as of the date Equitable receives
such request at its Processing Office and will be subject to Equitable's rules
in effect at the time of transfer. No transfers are permitted from the Fixed
Income Account, Stock Account, Balanced Account or Aggressive Stock Account
maintained for the Participant to the Money Market Account. Notwithstanding the
above, transfers to the Balanced Account may be prohibited by Equitable upon 30
days written notice to the Participant.
SECTION 2.06 TERMINATION OF PARTICIPATION. On or before a Participant's
Retirement Date, such Participant may elect by written notice to terminate
participation under the Contract. Upon receipt of such notice at its Processing
Office, Equitable will determine the Cash Value, as of the date Equitable
received such notice, of the Fixed Income Account, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account maintained for such
Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.06.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Cash Value of the Participant's Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
pay such Cash Values and terminate such Participant's participation under the
Contract. This right may be exercised with respect to the Participant only if
either (i) no Contributions have been made under the Contract on the
Participant's behalf during the last two completed Participation Years, and the
sum of such Annuity Values is $1,000 or less, or (ii) the Participant has
completed at least three Participation Years and the sum of such Annuity Values
is $1,000 or less. Equitable reserves the right to terminate a Participant's
participation under the Contract if at least 120 days have elapsed since the
issue date shown on the certificate issued to such Participant under the
Contract and no Contributions have been made under the Contract with respect to
such Participant.
Upon payment of such Cash Values, Equitable will be released from any and all
liability for payments with respect to the Contributions from which the Cash
Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. A Participant may elect by written notice to
Equitable to make a partial withdrawal from the Stock Account, Balanced Account,
Aggressive Stock Account,
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PARTICIPANT'S ACCOUNT (CONTINUED)
Money Market Account and the Fixed Income Account maintained for such
Participant before such Participant's Retirement Date.
Upon withdrawal pursuant to Section 2.07 or 2.07A, Equitable will pay the lesser
of the sum of the Cash Values of such Accounts or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by such Participant. Unless instructed otherwise, the amount withdrawn
(including the amount of any withdrawal charge) will be allocated between such
Accounts in proportion to the Annuity Value of each such Account.
Upon any payment on behalf of a Participant pursuant to Section 2.07 or 2.07A,
Equitable will be released from any and all liability for payments with respect
to the Contributions from which the amounts so withdrawn arose.
Payments on behalf of the Participant pursuant to Section 2.07 or 2.07A may be
deferred by Equitable in accordance with the provisions of Section 4.06.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300.
SECTION 2.07A PARTIAL WITHDRAWAL CHARGES.
With respect to partial withdrawals requested by a Participant, there will be no
withdrawal charge if the amount of the partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.07B. Equitable will
withdraw from the Stock Account, Balanced Account, Aggressive Stock Account,
Money Market Account, and Fixed Income Account and pay to the Participant an
amount equal to the partial withdrawal requested.
However, if the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts an amount
equal to the Free Corridor Amount, and (ii) then withdraw an amount equal to the
excess of the amount requested over the Free Corridor Amount, plus a withdrawal
charge, if applicable. Such withdrawal charge will be calculated in the
following manner:
(a) Withdrawals of Contributions made on behalf of the Participant during the
current and five prior Participation Years will be subject to a charge of
6% of the amount withdrawn (including such charge).
(b) Withdrawals of other amounts will not be subject to any withdrawal charges.
Equitable will pay the Participant the lesser of a) the amount requested or
b)the sum of the Cash Values of the Accounts maintained on the Participant's
behalf.
For purposes of determining withdrawal charges described in this Section,
amounts withdrawn up to the Free Corridor Amount will not be considered a
withdrawal of any Contributions. Any excess withdrawals, i.e. those pursuant to
item (ii) above, shall be considered withdrawals of older contributions first
and more recent contributions next.
SECTION 2.07B FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" with respect
to a Participant means an amount equal to the excess, if any, of (i) 10% of the
sum of the Annuity Values of the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and the Fixed Income Account over (ii)
cumulative prior withdrawals made pursuant to Section 2.07 or 2.07A in the
current Participation Year with respect to the Participant.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year before a Participant's Retirement Date, Equitable will
withdraw from the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account maintained under the Contract
as to the Contributions remitted with respect to such Participant an annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i) the
Annuity Values of the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account at the end of that
Participation Year and (ii) any withdrawals made from such Accounts pursuant to
Section 2.07 and 2.07A during that Participation Year. The charge will be
allocated between the Stock Account, Balanced Account, Aggressive Stock Account,
Money Market Account and Fixed Income Account in proportion to the Annuity
Values of each such Account, at the end of the Participation year.
As of a Participant's Retirement Date and before application of the Annuity
Values or Cash Values of such Participant's Account pursuant to Section 3.03, or
upon termination of such Account pursuant to Section 2.06 or Section 2.09 during
a Participation Year, Equitable will withdraw the administrative charge
described in this Section for the applicable part of that Participation Year.
SECTION 2.09 DEATH BENEFIT. If Equitable ascertains that a Participant has died
while Accounts for such Participant are maintained under the Contract and before
such Participant's Retirement Date, Equitable, upon receipt of due proof of such
death, will pay in a single sum to the beneficiary designated by such
Participant to receive such payment the amount of death benefit payable with
respect to such Participant. The amount of the death benefit with respect to a
Participant at any time prior to the Retirement Date is equal to the greater of
(i) the sum of the Annuity Values of the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account maintained
under the
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PARTICIPANT'S ACCOUNT (CONTINUED)
Contract for such Participant and (ii) the minimum death benefit with respect to
such Participant. Such minimum death benefit is the sum of all Contributions
made with respect to such Participant pursuant to Section 2.01 less an
adjustment for any withdrawals made pursuant to Sections 2.07 and 2.07A from the
Accounts maintained under the Contract for such Participant. Any such withdrawal
will reduce the minimum death benefit (as adjusted by any previous such
withdrawal) by an amount which is in the same proportion as the amount being
withdrawn is to the Annuity Values then in the Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
maintained under the Contract for such Participant.
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefore, be withdrawn from the Fixed
Income Account, Stock Account, Balanced Account, Aggressive Stock Account and
Money Market Account maintained with respect to such Participant under the
Contract. Upon such payment, Equitable will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Values arose.
SECTION 2.10 OWNER DEATH DISTRIBUTION RULES.
Upon the death of a certificate Owner before a Participant's Retirement Date:
(i) If the Owner is the Participant, Equitable will pay the death benefit in
accordance with Section 2.09.
(ii) If the Owner is not the Participant, the designated beneficiary will
succeed as Owner, notwithstanding the existence of any co-owner. The entire
interest in the Accounts maintained for such Participant - subject to any
applicable withdrawal charges as described in the certificate - must be
distributed either: a) within 5 years after the Owner's death, or b) within
1 year after the Owner's death as a life annuity or installment option, for
a period of not longer than the life expenctancy of the designated
beneficiary.
However, if the designated beneficiary is the Owner's spouse, the entire
interest in the Accounts maintained for such Participant must then be
distributed not later than 5 years after the spouse's death.
If payments under an Annuity Benefit had commenced prior to the Owner's death,
such payments will continue to be made over a period not longer than the period
provided for under the Annuity Benefit elected.
If the Participant dies before the entire interest in the Accounts maintained
for such Participant under the Contract is distributed, Equitable will pay the
death benefit in Section 2.09.
The designated beneficiary is the same as the beneficiary who is entitled to the
death benefit upon the Participant's death.
Where more than one Owner is named, the date of death of the Owner will be
deemed to be the date of death of the first Owner to die.
SECTION 2.11 CONTRIBUTION LIMIT. Equitable may refuse to accept a Contribution
made with respect to a Participant if the total prior Contributions made with
respect to the Participant exceed (or if acceptance of such Contribution would
cause the total Contributions to exceed) the following:
(i) $500,000, if the Participant's current age last birthday is 75 or less.
(ii) $250,000, if the Participant's current age last birthday is 76 - 79.
Equitable may refuse to accept any Contribution made with respect to a
Participant if such Participant's current age last birthday is 80 or greater.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of Separate Account A.
The amount of the first, second, and third payments under any variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to the payee pursuant to Section 3.04. The amount
of the fourth and each subsequent payment under a Variable Annuity Benefit will
be equal to the number of Annuity Units with respect to such benefit, multiplied
by the Average New Annuity Unit Value for the second calendar month immediately
preceding the date of the payment. The fourth and subsequent annuity payments
under a Variable Annuity Benefit will not be increased or decreased in amount
because of mortality or expense experience. The number of Annuity Units with
respect to a benefit is the number determined by dividing the amount of the
first monthly payment under such benefit by the New Annuity Unit Value for the
Valuation Period which includes the due date of the first monthly payment.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living, the
Annuity Values of such Participant's Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account shall
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ANNUITY BENEFITS (CONTINUED)
be applied to provide the Normal Form of Annuity Benefit, unless such
Participant elects (i) to receive the Cash Value of such Account in a single sum
or (ii) to apply such Annuity Value or Cash Value, whichever is applicable
pursuant to the first paragraph of Section 3.04, to provide an Annuity Benefit
on any other annuity form offered by Equitable, as elected by the Participant,
subject to Equitable's rules then in effect.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.06 before the Retirement Date, an election may be made to receive
an Annuity Benefit lieu of the Cash Values of such Participant's Fixed Income
Account, Stock Account, Balanced Account, Aggressive Stock Account and Money
Market Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If a Participant elects to receive an
Annuity Benefit in lieu of the Cash Values of the Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
the amount applied to provide the Annuity Benefit will be (i) the Annuity Values
of such Accounts if the payments under the annuity form elected are contingent
upon the survival of a person, or (ii) the Cash Values of such Accounts if the
payments under the annuity form elected are not contingent upon the survival of
a person.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If such
amount is applied on or after the completion of five Participation Years with
respect to such Participant: (1) The balance, less any Contribution made on
behalf of the Participant during the current and five prior Participation Years,
shall purchase the Annuity Benefit on the basis of either (i) the Table of
Guaranteed Annuity Payments shown herein or (ii) Equitable's current individual
annuity rates for payment of proceeds, whichever rates would provide a larger
benefit with respect to the payee. (2) Any Contributions made on behalf of the
Participant during the current and five prior Participation Years shall purchase
the Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
payments shown herein or (ii) Equitable's current individual rates applicable to
funds which derive from sources outside Equitable, whichever rates would provide
a larger benefit with respect to the payee. If such current individual annuity
rates are used, such Participant's certificate will be replaced by an Equitable
supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a Participant, the
balance, after any applicable tax on annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown herein or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account maintained
for such Participant shall terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form with 10 years of payments guaranteed
or the Joint and Survivor Life Annuity Form (100% continuation). The amounts of
income provided under the Fixed Annuity Benefit payable on the Life Annuity Form
with 10 years of payments guaranteed and Joint and Survivor Life Annuity Form
are based on 3 1/2% interest and the 1971 Equitable Annuity Mortality Table. The
amounts of income initially provided under the Variable Annuity Benefit payable
on the Life Annuity Form and Joint and Survivor Life Annuity Form are based on
the 1979 Equitable Annuitant Mortality Table and an Assumed Base Rate of Net
Investment Return of 3 1/2% or 5%, whichever applies pursuant to Section 1.15.
Equitable may change the monthly income amounts contained in the Tables of
Guaranteed Annuity Payments and the basis for determining such amounts, for new
Participants, by at least 90 days advance notice to the Contract Holder and by
an amendment to the Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/2% interest and the 1971 Equitable Annuity
Mortality Table if such annuity form provides for a Fixed Annuity Benefit, and
on the 1979 Equitable Annuitant Mortality Table and an Assumed Base Rate of Net
Investment Return of 5% or 3 1/2%, whichever applies pursuant to Section 1.15,
if such annuity form provides for a Variable Annuity Benefit.
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ANNUITY BENEFITS (CONTINUED)
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's survival must
be furnished to Equitable either by personal endorsement of the check drawn for
payment or by other means satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$50 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
Upon election by a Participant pursuant to Section 3.03 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis
originally used to determine such payments.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
<TABLE>
<CAPTION>
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM WITH 10 YEARS OF PAYMENTS GUARANTEED -
100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
------------------------------------------------------------------------------------------------------------------------------
FEMALE AGE
MALE -----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.65 4.71 4.77 4.83 4.89 4.94 5.00 5.06 5.11 5.17 5.22
61 4.68 4.74 4.81 4.87 4.93 4.99 5.05 5.11 5.17 5.23 5.29
62 4.71 4.78 4.84 4.91 4.97 5.04 5.10 5.17 5.23 5.29 5.35
63 4.74 4.81 4.88 4.94 5.01 5.08 5.15 5.22 5.29 5.36 5.42
64 4.77 4.84 4.91 4.98 5.05 5.13 5.20 5.27 5.35 5.42 5.49
65 4.79 4.87 4.94 5.02 5.09 5.17 5.25 5.33 5.40 5.48 5.56
66 4.82 4.89 4.97 5.05 5.13 5.21 5.29 5.38 5.46 5.54 5.62
67 4.84 4.92 5.00 5.08 5.17 5.25 5.34 5.42 5.51 5.60 5.69
68 4.86 4.94 5.03 5.11 5.20 5.29 5.38 5.47 5.56 5.66 5.75
69 4.88 4.97 5.05 5.14 5.23 5.32 5.42 5.52 5.61 5.71 5.81
70 4.90 4.99 5.08 5.17 5.26 5.36 5.46 5.56 5.66 5.76 5.87
------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM - 100% CONTINUATION - ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
- ----------------------------------------------------------------------------------------------------------------------------------
FEMALE AGE
MALE -----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.31 4.35 4.39 4.43 4.47 4.51 4.55 4.59 4.63 4.67 4.71
61 4.35 4.39 4.43 4.48 4.52 4.56 4.61 4.65 4.69 4.73 4.78
62 4.39 4.43 4.48 4.52 4.57 4.61 4.66 4.71 4.75 4.80 4.85
63 4.42 4.47 4.52 4.57 4.62 4.67 4.72 4.77 4.82 4.87 4.92
64 4.46 4.51 4.57 4.62 4.67 4.72 4.77 4.83 4.88 4.94 4.99
65 4.50 4.56 4.61 4.66 4.72 4.78 4.83 4.89 4.95 5.01 5.07
66 4.54 4.60 4.65 4.71 4.77 4.83 4.89 4.95 5.01 5.08 5.14
67 4.58 4.64 4.70 4.76 4.82 4.88 4.95 5.01 5.08 5.15 5.22
68 4.62 4.68 4.77 4.81 4.87 4.95 5.01 5.08 5.15 5.22 5.29
69 4.65 4.72 4.78 4.85 4.92 4.99 5.06 5.14 5.22 5.29 5.37
70 4.69 4.76 4.83 4.90 4.97 5.05 5.12 5.20 5.28 5.36 5.45
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
--------
No. 11937C NQ Page Ten
<PAGE>
Page Eleven
-----------
ANNUITY BENEFITS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM - 100% CONTINUATION - ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
- ----------------------------------------------------------------------------------------------------------------------------------
FEMALE AGE
MALE -----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.19 5.23 5.27 5.31 5.34 5.39 5.42 5.46 5.50 5.54 5.58
61 5.23 5.27 5.31 5.35 5.39 5.43 5.47 5.52 5.56 5.60 5.64
62 5.27 5.31 5.35 5.39 5.44 5.48 5.53 5.57 5.62 5.67 5.71
63 5.31 5.35 5.39 5.44 5.49 5.53 5.58 5.63 5.68 5.73 5.78
64 5.34 5.39 5.44 5.48 5.53 5.59 5.64 5.69 5.74 5.79 5.85
65 5.38 5.43 5.48 5.53 5.58 5.64 5.69 5.75 5.80 5.86 5.92
66 5.42 5.47 5.52 5.58 5.63 5.69 5.75 5.81 5.87 5.93 5.99
67 5.45 5.51 5.56 5.62 5.68 5.74 5.80 5.87 5.93 6.00 6.06
68 5.49 5.55 5.61 5.67 5.73 5.80 5.86 5.93 6.00 6.06 6.14
69 5.53 5.59 5.65 5.71 5.78 5.85 5.92 5.99 6.06 6.13 6.21
70 5.56 5.63 5.69 5.76 5.83 5.90 5.97 6.05 6.13 6.21 6.29
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT
FIXED ANNUITY BENEFIT IF ASSUMED BASE RATE OF NET
WITH 10 YEARS OF PAYMENTS INVESTMENT RETURN IS
GUARANTEED 3 1/2% 5%
-------------------------- ------ --
AGE MALES FEMALES MALES FEMALES MALES FEMALES
--- ----- ------- ----- ------- ----- -------
<S> <C> <C> <C> <C> <C> <C>
60 5.77 5.06 5.43 4.80 6.36 5.70
61 5.89 5.16 5.57 4.90 6.50 5.81
62 6.02 5.28 5.72 5.01 6.65 5.91
63 6.16 5.40 5.88 5.13 6.81 6.03
64 6.29 5.52 6.05 5.25 6.97 6.15
65 6.44 5.66 6.23 5.39 7.16 6.28
66 6.59 5.80 6.43 5.54 7.35 6.43
67 6.74 5.94 6.64 5.70 7.56 6.58
68 6.90 6.10 6.87 5.87 7.79 6.76
69 7.06 6.26 7.11 6.06 8.03 6.95
70 7.23 6.43 7.38 6.27 8.30 7.15
</TABLE>
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average New Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.06.
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. The Contract constitutes the entire Contract between the
parties and the provisions of the Contract alone will govern with respect to the
rights and obligations of Equitable. The provisions of the Contract will be
applied separately with respect to each Participant.
Nothing in the enrollment form referred to in Section 1.02 nor any modification,
amendment, or supplement to any such document will in any way be construed to
enlarge, change, vary or in any other way affect the obligations of Equitable as
expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the expressed consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE. Equitable reserves the right to amend the
Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the Contract and any certificate to reflect changes in
the Code, or in regulations or published rulings of the Internal Revenue Service
so that each such certificate will continue to be an "annuity" as defined in
Section 72 of the Code.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 PARTICIPATION IN SURPLUS. The Contract and all other contracts in
the same class of contracts shall be combined for the purpose of ascertaining
the annual surplus of Equitable to be apportioned to said contracts as a
dividend and the portion of any such dividend that is to be allocated to the
Contract shall be determined by Equitable. The participation of this class of
contracts in annual surplus is, however, expected to be minimal. Any amount so
allocated to the Contract shall be payable as of January 1 of the calendar year
in which a dividend is apportioned and will be payable in cash and shall be
equitably allocated by Equitable to the Fixed Income Accounts maintained
hereunder for Participants.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.04 BENEFICIARY. Each Participant, as of the Participant's
Participation Date, is to name a beneficiary entitled to receive any death
benefit payable with respect to such Participant pursuant to Section 2.09. The
Participant may change such beneficiary from time to time while Accounts for the
Participant are being maintained hereunder. Any such change will be made by
-----------
No. 11937C NQ Page Eleven
<PAGE>
Page Twelve
-----------
GENERAL PROVISIONS (CONTINUED)
written notice in a form satisfactory to Equitable. A change will, upon receipt
at a designated Equitable Office, take effect as of the time the written notice
was signed, whether or not the Participant is living on the date of receipt, but
without further liability as to any payment or other settlement made by
Equitable before receipt of such change.
Unless otherwise specified in the enrollment form, if a Participant has named
two or more persons as beneficiary, the beneficiary will be the named person or
persons who survive the Participant, and if more than one survive they will
share equally.
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.09 for which there is no named beneficiary living at the death of the
Participant will be payable in a single sum to the children of the Participant
who survive the Participant, in equal shares, or should none survive, then to
the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.05 FUTURE PARTICIPANTS AND CONTRIBUTIONS. Equitable reserves the right
at its sole discretion to (i) curtail or prohibit further enrollment as
Participants under the Contract of any individuals who are not currently
participating under the Contract as of such date of curtailment or prohibition,
and (ii) prohibit future Contributions under the Contract upon written notice to
existing Participants.
SECTION 4.06 DEFERMENT. Payments by Equitable from the Participant's Fixed
Income Account pursuant to the provisions of Section 2.06, Sections 2.07 and
2.07A, and Section 2.09, or any commuted payments arising from a Fixed Annuity
Benefit pursuant to Section 3.05, may be deferred for up to six months after
receipt of a written request for such surrender or withdrawal, or receipt of due
documentation for such commutation payment pursuant to Section 3.05. Interest at
the current Guaranteed Interest Rate for such Participant's Fixed Income Account
will be allowed on any such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the Participant's
Stock Account, Balanced Account, Aggressive Stock Account or Money Market
Account pursuant to the provisions of Section 2.06, Sections 2.07 and 2.07A, and
Section 2.09, or any commuted payments arising from a Variable Annuity Benefit
pursuant to Section 3.05, will be made within seven days after receipt, at
Equitable's Processing Office, of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant, respectively,
or receipt of due documentation for such commutation payment pursuant to Section
3.05.
During any period when (i) the sale of securities or the documentation of the
New Accumulation Unit Value or the Average New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or trading
on such Exchange is restricted, or (ii) the Securities and Exchange Commission
may by order permit postponement for the protection of persons having interests
in the Separate Accounts, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of Cash
Values and Annuity Values, arising from an amount in a Participant's Stock
Account, Balanced Account, Aggressive Stock Account or Money Market
Account;
(b) to defer payment of any portion of the death benefit arising from an amount
in a Participant's Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account;
(c) to defer the payment of any Variable Annuity Benefit under the Contract or
the application of any such Benefit to provide for any other payment called
for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to provide
any Annuity Benefit permitted under the Contract.
SECTION 4.07 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Participant with a
notice showing as of a specified recent date (1) the Annuity Value of the Fixed
Income Account, (2) the total number of Accumulation Units credited to the Stock
Account, Balanced Account, Aggressive Stock Account and Money market Account,
(3) the New Accumulation Unit Values, (4) the sum of the Cash Values of the
Fixed Income Account, Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account and (5) the amount of death benefit payable with
respect to the Participant. After the Retirement Date Equitable will notify the
Participant of the number of Annuity Units and the Average New Annuity Unit
Value used in determining the amount of each Variable Annuity Benefit payment,
if any.
SECTION 4.08 CONTRACT HOLDER RESPONSIBILITY. The sole responsibility of the
Contract Holder is to serve as party to the Contract. The Contract Holder will
have no responsibility for the administration of any Plan or Agreement, for
payments to
-----------
No. 11937C NQ Page Twelve
<PAGE>
Page Thirteen
-------------
GENERAL PROVISIONS (CONTINUED)
the Fixed Income Account, Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account, or any payments or other distributions
hereunder. Equitable will deal with the Contract Holder in accordance with the
terms and conditions of the trust agreement pursuant to which the Contract
Holder agreed to act as such and with the Contract and in such manner as the
Contract Holder and Equitable may agree, without the consent of any other
person.
SECTION 4.09 AGE AND SEX. If the age or sex of any person upon whose life an
Annuity Benefit depends has been misstated, any benefits will be those which
would have been purchased at the correct age and sex. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
-------------
No. 11937C NQ Page Thirteen
<PAGE>
Attached to and made part of Group Annuity Contract No. 11937CNQ
between
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
and
RHODE ISLAND HOSPITAL TRUST
IT IS HEREBY AGREED that, effective July 1, 1986 said contract is amended as
follows:
With respect to Section 2.07 PARTIAL WITHDRAWALS, the following sentence is
added:
For New Participants whose Participation Date is on or after July 1, 1986:
If a withdrawal from the Accounts made pursuant to Sections 2.07 or 2.07A would
result in total Annuity values of less than $500, Equitable will so advise the
Participant and reserves the right to withdraw the Annuity Values of the Fixed
Income Account, Stock Account, Balanced Account, Aggressive Stock Account and
Money Market Account, pay the Annuity Values of such Accounts to the
Participant, and terminate such Participant's participation under the contract.
Agreed to by:
RHODE ISLAND
HOSPITAL TRUST
FOR THE EQUITABLE
By __________________________________ By /s/ John B. Carter
----------------------------------
President
Title _______________________________ By /s/ Rodney L. Enochs
----------------------------------
Vice President and Secretary
Dated________________________________ Date of Issue ______________________
At __________________________________
PF17026CNQ
<PAGE>
OWNER:
PARTICIPANT:
CERTIFICATE NUMBER:
[EQUITABLE LOGO] ISSUE DATE:
PARTICIPATION DATE:
RETIREMENT DATE:
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O.
New York, New York 10116
SPECIMEN
AGREES
o TO ALLOCATE the Contributions made to the Contract to the Stock Account,
Balanced Account, Aggressive Stock Account, Money Market Account or the Fixed
Income Account maintained for the Participant, in accordance with Sections
2.02 and 2.03, or in part to any one, as directed by the Participant.
o TO APPLY the amount in the Stock Account, Balanced Account, Aggressive Stock
Account, Money Market Account and the Fixed Income Account at the Retirement
Date to provide the Participant with an Annuity Benefit or a Cash Value
Benefit if the Participant is then living, and
o TO PROVIDE the Participant with the other rights and benefits of this
certificate.
These agreements are subject to the provisions of this certificate.
TEN DAYS TO EXAMINE CERTIFICATE - The Participant may terminate participation
under the Contract and cancel this certificate by returning it to Equitable
within ten days after receipt of it. Upon such cancellation, Equitable will
refund any Contribution made to Equitable on behalf of a Participant under the
Contract, plus or minus any investment gain or loss experienced in the
Participant's Stock Account, Balanced Account, Aggressive Stock Account, or
Money Market Account from the date such Contribution is allocated to such
Account to the date of such Cancellation.
/s/ John B. Carter
President
/s/ Rodney L. Enochs
Vice President
and Secretary
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN SEPARATE ACCOUNTS
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF
SEPARATE ACCOUNT A. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE
DAILY RATE OF INVESTMENT RETURN IN SEPARATE ACCOUNT A IS EQUIVALENT TO MORE THAN
6.75% OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75%
OR 5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.15 IS 5% OR 3 1/2%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND
MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO
PROVIDE FOR TAXES.
No. 11937 NQ
<PAGE>
CONTENTS
Part I - Definitions Page 2
Part II - Participant's Account Page 6
Part III - Annuity Benefits Page 9
Part IV - General Provisions Page 12
Equitable certifies that the Participant as named on Page 3 is included under
the Group Annuity Contract designated on Page 3 ("the Contract"), all pertinent
provisions of which are set forth below.
The Contract is issued in consideration of the payment to Equitable of the
Contributions made under the Contract.
The provisions on the following pages are part of this certificate.
PART I - DEFINITIONS
SECTION 1.01 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Part III of the Contract.
SECTION 1.02 PARTICIPANT. The term "Participant" means a person who has been
enrolled by Equitable under the Contract. A person shall become enrolled under
the Contract upon receipt by Equitable of an enrollment form made available by
Equitable and completed in a manner satisfactory to Equitable.
SECTION 1.03 OWNER. The Owner of a certificate issued under the Contract is the
Participant unless otherwise stated in the enrollment form, or later changed.
Notwithstanding any provisions in the certificate to the contrary, only the
Owner can exercise all the rights under the certificate while the Participant is
living. The Owner does not need the consent of anyone who has only a conditional
or future ownership interest in a certificate.
While the Participant is living, an Owner of a certificate issued on behalf of
the Participant may change the Owner by written notice satisfactory to
Equitable. The change will take effect on the date the Owner signs the notice,
except it will not apply to any payment Equitable makes or other actions
Equitable takes before Equitable receives the notice.
SECTION 1.04 ASSIGNMENTS. A certificate issued under the Contract may not be
assigned as collateral or security for a loan. Otherwise, the Participant may
assign this certificate before the Retirement Date but Equitable will not be
bound by an assignment unless it is in writing and Equitable has received it.
The Participant's rights and those of any of persons referred to in the
certificate will be subject to the assignment. Equitable assumes no
responsibility for the validity of any assignment.
No amounts payable under a certificate to a payee other than the Owner may be
assigned by that payee, nor will they be subject to the claims of creditors or
to legal process, except to the extent permitted by law.
SECTION 1.05 CONTRIBUTION. The term "Contribution" means a payment made to
Equitable for a Participant with respect to an annuity purchased for such
Participant under the Contract. Equitable is under no obligation to accept any
Contribution less than $50.00.
SECTION 1.06 PARTICIPATION DATE. The term "Participation Date" with respect to a
Participant means the date as of which Equitable has enrolled such Participant
under the terms of the Contract, as shown on Page 3 of the certificate.
SECTION 1.07 PARTICIPATION YEAR. The term "Participation Year" with respect to a
Participant means the twelve month period beginning on (i) the Participation
Date, and (ii) each anniversary thereof, unless otherwise agreed to in writing
by Equitable.
SECTION 1.08 CLASS OF PARTICIPANTS. Except as provided in Section 1.09, the term
"Class of Participants" refers to all Participants whose Participation Date is
in the same calendar year.
SECTION 1.09 GUARANTEED INTEREST RATE. In regards to a Fixed Income Account, the
term "Guaranteed Interest Rate" means the effective annual rate at which
interest accrues on the amount in such Account. Interest accrues daily. The
Guaranteed Interest Rate will never be less than 4% per annum.
Equitable will from time to time establish and make available for new
Participants (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates. A new Class of Participants will
--------
No. 11937 NQ Page Two
<PAGE>
Page Four
---------
DEFINITIONS (CONTINUED)
be established effective with the effective date of the occurrence of (i), (ii)
or (iii) above or any combination thereof.
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine for
each established Class of Participants a Guaranteed Interest Rate and duration
for such Class which exceeds the applicable Minimum Guaranteed Interest Rate.
Equitable will notify each Participant in writing of the applicable Guaranteed
Interest Rate and duration.
Equitable reserves the right to combine one or more Classes of Participants into
a single Class of Participants, provided such Classes were initially established
during a continuous period of time.
SECTION 1.10 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Participant is to attain the retirement age specified in the Participant's
enrollment form. Before the Retirement Date the Participant may elect to change
the Retirement Date to another Retirement Date, which may be any date after the
filing of the election (other than the 29th, 30th, or 31st day of any month). No
Retirement Date shall be later than the date the Participant attains age 85. Any
election for such change must be made in writing by the Participant and shall
not take effect until received by Equitable at its Processing Office.
SECTION 1.11 NORMAL FORM. The "Normal Form" of an Annuity Benefit under the
Contract means the Fixed Annuity Benefit payable on the Life Annuity Form, as
defined in Sections 3.01 and 1.12, with 10 years of payments guaranteed.
SECTION 1.12 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
providing fixed monthly payments during the lifetime of the person upon whose
life such payments depend. The payments commence on the date as of which the
Life Annuity Form is purchased and terminate with the last payment due before
the death of such person.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by the Participant. The payments commence on the date as of which the
Joint and Survivor Life Annuity Form is purchased and terminate with the last
payment due before the death of the survivor.
SECTION 1.14 THE SEPARATE ACCOUNTS. The term "Separate Accounts" means the
following separate investment accounts maintained by Equitable to which portions
of its assets have been allocated for the Contract and certain other contracts:
Name Investments
---- -----------
Separate Account A Primarily common stock and other
equity-type investments.
Separate Account E Primarily short-term money market
instruments.
Separate Account J Primarily common stocks and other
equity-type investments, publicly traded
debt securities and short-term money
market instruments.
Separate Account K Primarily common stocks issued by high
quality small and intermediate size
companies with strong growth prospects.
Equitable reserves the right to withdraw from any Separate Account and allocate
to another separate account assets determined by Equitable to be associated with
the class of contracts to which the Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid odd lots and
fractions. On and after the date of any such withdrawal the reference in the
Contract to such Separate Account shall mean such other separate account to
which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Accounts will, at most
times, consist primarily of the types of investments indicated above. Equitable
may, however, at its discretion invest the assets of any Separate Account in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including attorneys in its employ) as to what investments it
is permitted by law to make.
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DEFINITIONS (CONTINUED)
In lieu of making such investments directly, Equitable reserves the right to
operate any Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or a part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
any Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) run any Separate Account under direction of a committee,
and to discharge such committee at any time; and (iii) restrict or eliminate any
voting rights of participants or other persons who have voting rights as to the
Separate Accounts.
Assets of the Separate Accounts attributable to the Contract shall be subject to
a charge at the rate of 1.75% a year, for investment management, financial
accounting, the annuity rate guarantee and the minimum death benefit, and
expenses and expense risk. The charge shall be made in accordance with (c) of
the Net Investment Factor provision in Section 1.15.
The assets of Separate Accounts are the property of Equitable; however, the
portion of the assets of each Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising out of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of the Separate Accounts in excess of such
reserves and contract liabilities to the general account of Equitable.
SECTION 1.15 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS.
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business days immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which the New York
Stock Exchange is open.
NET INVESTMENT FACTOR: For each Separate Account the Net Investment Factor for a
Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period plus (2) the investment income
and the capital gains, realized or unrealized, credited to the assets of
the Separate Account in the Valuation Period for which the Net Investment
Factor is being determined, minus (3) the capital losses, realized or
unrealized, charged against such assets in such Valuation Period, minus
(4) any amount charged against the Separate Account in such Valuation
Period for taxes or for amounts set aside by Equitable as a reserve for
taxes attributable to the maintenance or operation of the Separate
Account;
(b) is the value of the assets in the Separate Account at the close of
business of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period, of
.00004837 for investment management, financial accounting, the annuity
rate guarantee and the minimum death benefit, and expenses and expense
risk.
The value of the assets in the Separate Accounts, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
their fair value, as determined in accordance with accepted accounting practices
and applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the value
of the interest of a Participant's Stock Account, Balanced Account, Aggressive
Stock Account or Money Market Account on or before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Values for the
Separate Accounts have been established as follows:
Account Value Date
------- ----- ----
Separate Account A $10.00 As of November 1, 1968
Separate Account E $10.00 As of September 4, 1974
Separate Account J $10.00 As of May 1, 1984
Separate Account K $10.00 As of May 1, 1984
The New Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from Separate Account A under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value for Separate Account
A has been established at $1.00 as of November 1, 1968. The Annuity Unit Value
for any subsequent Valuation Period is the New Annuity Unit Value for the
immediately preceding Valuation Period multiplied by the Adjusted Net Investment
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DEFINITIONS (CONTINUED)
Factor for such subsequent Valuation Period. The Adjusted Net Investment Factor
for a Valuation Period is the Net Investment Factor for such period reduced for
each calendar day in such subsequent Valuation Period by the Net Investment
Factor times (i) .00013366, if the Assumed Base Rate of Net Investment Return is
5%, and (ii) .00009425, if the Assumed Base Rate of Net Investment Return is 3
1/2%. The Assumed Base Rate of Net Investment Return shall be 5%, except in
states where the rate is not permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average Annuity Unit Value for Separate
Account A for a calendar month is equal to the average of the New Annuity Unit
Values for the Valuation Periods ending in such month.
SECTION 1.16 ANNUITY VALUE. The term "Annuity Value" with respect to a
Participant's Fixed Income Account, Stock Account, Balanced Account, Aggressive
Stock Account and Money Market Account, means the amount in such Accounts
pursuant to Sections 2.02 and 2.03.
SECTION 1.17 CASH VALUE. With respect to a Participant, the term "Cash Value"
with respect to such Participant's Fixed Income Account, Stock Account, Balanced
Account, Aggressive Stock Account, and Money Market Account means an amount
equal to the greater of (i) or (ii) below:
(i) the Annuity Value of such Accounts less 6% of the Contributions made
during the current and five prior Participation Years, which had not been
previously withdrawn pursuant to Section 2.07A.
(ii) the sum of (a) the Free Corridor Amount as defined in Section 2.07B and
(b) 94% of (the Annuity Value of such Accounts less the Free Corridor
Amount).
SECTION 1.18 CODE. The term "Code" means the Internal Revenue Code of 1954, as
now or hereafter amended, or any corresponding provisions of prior or subsequent
United States revenue laws.
PART II - PARTICIPANT'S ACCOUNTS
SECTION 2.01 CONTRIBUTIONS. Contributions may be made with respect to a
Participant on whichever basis, as described under subsections A and B below, is
specified upon the Participant's enrollment under the Contract. If Contributions
are made by or on behalf of a Participant under more than one such basis,
Equitable will accept such Contributions if the Participant is separately
enrolled under the Contract under each basis, and in such case separate
certificates will be issued under the Contract for the Participant reflecting
amounts accumulated on the Participant's behalf attributable to Contributions
made under each Contribution basis.
A. Post-August 13, 1982 Basis
Contributions are to be made from time to time at the Participant's discretion.
With each Contribution, the Participant with respect to whom such Contribution
is being made and the amounts to be allocated to the Stock Account, Money Market
Account, Fixed Income Account, Balanced Account and Aggressive Stock Account
shall be specified.
A Participant may transfer to the Contract under this basis any amount held with
respect to such Participant under a deferred annuity contract, where such
transferred amount represents amounts invested in or credited to investments in
annuity contracts after August 13, 1982.
B. Pre-August 14, 1982 Basis
A Participant may transfer to the Contract under this basis any amount held with
respect to such Participant under a deferred annuity contract where such
transferred amount represents amounts invested in or credited to investments in
annuity contracts prior to August 14, 1982. New Contributions cannot be made
under this basis
SECTION 2.02 STOCK, BALANCED, AGGRESSIVE STOCK AND MONEY MARKET ACCOUNTS.
Equitable maintains a Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account under the Contract for each Participant with respect to
whom Contributions are made. Any amount allocated to the (1) Stock Account
becomes part of Separate Account A, (2) Balanced Account becomes part of
Separate Account J, (3) Aggressive Stock Account becomes part of Separate
Account K, and (4) Money Market Account becomes part of Separate Account E. Any
amount withdrawn from an Account will no longer be part of the applicable
Separate Account.
On any date when an amount is allocated to or withdrawn from an Account, the
Account will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the New Accumulation
Unit Value for the appropriate Separate Account for the Valuation Period which
includes that date. The number of Units in an Account on any date is equal to
(i) the sum of any Accumulation Units that have been credited to the Account
minus (ii) the sum of any Accumulation Units that have been charged to that
Account. The amount in the Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account on any date is equal to the product of (i) the
number of Accumulation Units in such Account on that date and (ii) the New
Accumulation Unit Value for the appropriate Separate Account for the Valuation
Period which includes that date, less any administrative charge accrued but not
made.
SECTION 2.03 FIXED INCOME ACCOUNT. Equitable maintains a Fixed Income Account
under the Contract for each Participant with respect to whom Contributions are
made. Any amount allocated to the Fixed Income Account becomes part of the
general assets of Equitable, which support the guarantees of the Contract and
other contracts.
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PARTICIPANT'S ACCOUNT (CONTINUED)
The amount in a Fixed Income Account at any time is equal to the sum of all
amounts that have been allocated to such Fixed Income Account pursuant to
Section 2.04 plus the amount of any interest accrued but not allocated, less the
sum of all amounts that have been withdrawn pursuant to Sections 2.07, 2.07A,
and Section 2.08 from such Account, and transferred pursuant to Section 2.05
from such Fixed Income Account, and less any annual administrative charges
accrued but not made. Equitable guarantees that the amount in a Fixed Income
Account at any time before the Retirement Date will not be less than the sum of
all amounts allocated to such Account pursuant to Section 2.04 or transferred to
such Account pursuant to Section 2.05 and less the sum of all amounts that have
been withdrawn from such Account pursuant to Sections 2.07, 2.07A and 2.08, and
transferred from such Account pursuant to Section 2.05, all accumulated at 4%
interest, compounded annually. In any Participation Year in which no
Contribution is allocated to a Fixed Income Account, the amount in such Account
at the end of the Participation Year shall in no event be less than the amount
in such Account at the beginning of the Participation Year plus the sum of all
amounts transferred to such Account pursuant to Section 2.05 less the sum of all
amounts withdrawn and transferred out of such Account pursuant to Sections 2.07,
2.07A, and Section 2.05, all accumulated at 3% interest, compounded annually.
A Fixed Income Account for a Participant terminates on the earliest of (i) the
Retirement Date, (ii) the death of the Participant, and (iii) termination of
participation pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO ACCOUNT. Each Contribution made with respect to a
Participant pursuant to Section 2.01, will be allocated, as of the date by which
Equitable has received at its Processing Office both such Contribution and
direction as to its location, to the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account or Money Market Account or in part to
each, at the sole direction of the Participant as specified to Equitable,
provided that the percentage allocated to each Account is a whole number.
Any amount that a Participant has directed to be transferred to the Fixed Income
Account, Stock Account, Balanced Account or Aggressive Stock Account pursuant to
Section 2.05 will be allocated as of the date of such transfer to the
appropriate Account maintained for such Participant.
Interest is allocated to the Fixed Income Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05 and 2.07 and 2.07A, at the time of application of amounts in the
Fixed Income Account to provide Annuity Benefits, upon termination of
participation pursuant to Section 2.06, and upon death of the Participant
pursuant to Section 2.09.
SECTION 2.05 TRANSFERS AMONG ACCOUNTS. At any time before a Participant's
Retirement Date, such Participant may transfer all or part of the amounts
maintained for the Participant to one or more of the other Accounts maintained
for such Participant as follows: (1) amounts in the Fixed Income Account, Stock
Account, Balanced Account and Aggressive Stock Account may be transferred among
such Accounts; (2) amounts in the Money Market Account may be transferred to the
other Accounts. Such transfers will be made as of the date Equitable receives
such request at its Processing Office and will be subject to Equitable's rules
in effect at the time of transfer. No transfers are permitted from the Fixed
Income Account, Stock Account, Balanced Account or Aggressive Stock Account
maintained for the Participant to the Money Market Account. Notwithstanding the
above, transfers to the Balanced Account may be prohibited by Equitable upon 30
days written notice to the Participant.
SECTION 2.06 TERMINATION OF PARTICIPATION. On or before a Participant's
Retirement Date, such Participant may elect by written notice to terminate
participation under the Contract. Upon receipt of such notice at its Processing
Office, Equitable will determine the Cash Value, as of the date Equitable
received such notice, of the Fixed Income Account, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account maintained for such
Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.06.
Prior to a Participant's Retirement Date, Equitable reserves the right to
withdraw the Cash Value of the Participant's Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
pay such Cash Values and terminate such Participant's participation under the
Contract. This right may be exercised with respect to the Participant only if
either (i) no Contributions have been made under the Contract on the
Participant's behalf during the last two completed Participation Years, and the
sum of such Annuity Values is $1,000 or less, or (ii) the Participant has
completed at least three Participation Years and the sum of such Annuity Values
is $1,000 or less. Equitable reserves the right to terminate a Participant's
participation under the Contract if at least 120 days have elapsed since the
issue date shown on the certificate issued to such Participant under the
Contract and no Contributions have been made under the Contract with respect to
such Participant.
Upon payment of such Cash Values, Equitable will be released from any and all
liability for payments with respect to the Contributions from which the Cash
Values arose.
SECTION 2.07 PARTIAL WITHDRAWLS. A Participant may elect by written notice to
Equitable to make a partial withdrawal from the Stock Account, Balanced Account,
Aggressive Stock Account,
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PARTICIPANT'S ACCOUNT (CONTINUED)
Money Market Account and the Fixed Income Account maintained for such
Participant before such Participant's Retirement Date.
Upon withdrawal pursuant to Section 2.07 or 2.07A, Equitable will pay the lesser
of the sum of the Cash Values of such Accounts or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by such Participant. Unless instructed otherwise, the amount withdrawn
(including the amount of any withdrawal charge) will be allocated between such
Accounts on proportion to the Annuity Value of each such Account.
Upon any payment on behalf of a Participant pursuant to Section 2.07 or 2.07A,
Equitable will be released from any and all liability for payments with respect
to the Contributions from which the amounts so withdrawn arose.
Payments on behalf of the Participant pursuant to Section 2.07 or 2.07A may be
deferred by Equitable in accordance with the provisions of Section 4.06.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300.
SECTION 2.07A PARTIAL WITHDRAWAL CHARGES.
With respect to partial withdrawals requested by a Participant, there will be no
withdrawal charge if the amount of the partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.07B. Equitable will
withdraw from the Stock Account, Balanced Account, Aggressive Stock Account,
Money Market Account, and Fixed Income Account and pay to the Participant an
amount equal to the partial withdrawal requested.
However, if the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts an amount
equal to the Free Corridor Amount, and (ii) then withdraw an amount equal to the
excess of the amount requested over the Free Corridor Amount, plus a withdrawal
charge, if applicable. Such withdrawal charge will be calculated in the
following manner:
(a) Withdrawals of Contributions made on behalf of the Participant during the
current and five prior Participation Years will be subject to a charge of
6% of the amount withdrawn (including such charge).
(b) Withdrawals of other amounts will not be subject to any withdrawal
charges.
Equitable will pay the Participant the lesser of a) the amount requested or b)
the sum of the Cash Values of the Accounts maintained on the Participant's
behalf.
For purposes of determining withdrawal charges described in this Section,
amounts withdrawn up to the Free Corridor Amount will not be considered a
withdrawal of any Contributions. Any excess withdrawals, i.e. those pursuant to
item (ii) above, shall be considered withdrawals of older contributions first
and more recent contributions next.
SECTION 2.07B FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" with respect
to a Participant means an amount equal to the excess, if any, of (i) 10% of the
sum of the Annuity Values of the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and the Fixed Income Account over (ii)
cumulative prior withdrawals made pursuant to Section 2.07 or 2.07A in the
current Participation Year with respect to the Participant.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year before a Participant's Retirement Date, Equitable will
withdraw from the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account maintained under the Contract,
as to the Contributions remitted with respect to such Participant, an annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i) the
Annuity Values of the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account at the end of that
Participation Year and (ii) any withdrawals made from such Accounts pursuant to
Section 2.07 and 2.07A during that Participation Year. The charge will be
allocated between the Stock Account, Balanced Account, Aggressive Stock Account,
Money Market Account and Fixed Income Account in proportion to the Annuity
Values of each such Account, at the end of the Participation Year.
As of a Participant's Retirement Date and before application of the Annuity
Values or Cash Values of such Participant's Account pursuant to Section 3.03, or
upon termination of such Account pursuant to Section 2.06 or Section 2.09 during
a Participation Year, Equitable will withdraw the administrative charge
described in this Section for the applicable part of that Participation Year.
SECTION 2.09 DEATH BENEFIT. If Equitable ascertains that a Participant has died
while Accounts for such Participant are maintained under the Contract and before
such Participant's Retirement Date, Equitable, upon receipt of due proof of such
death, will pay in a single sum to the beneficiary designated by such
Participant to receive such payment the amount of death benefit payable with
respect to such Participant. The amount of the death benefit with respect to a
Participant at any time prior to the Retirement Date is equal to the greater of
(i) the sum of the Annuity Values of the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account maintained
under the
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PARTICIPANT'S ACCOUNT (CONTINUED)
Contract for such Participant and (ii) the minimum death benefit with respect to
such Participant. Such minimum death benefit is the sum of all Contributions
made with respect to such Participant pursuant to Section 2.01 less an
adjustment for any withdrawals made pursuant to Sections 2.07 and 2.07A from the
Accounts maintained under the Contract for such Participant. Any such withdrawal
will reduce the minimum death benefit (as adjusted by any previous such
withdrawal) by an amount which is in the same proportion as the amount being
withdrawn is to the Annuity Values then in the Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account
maintained under the Contract for such Participant.
The amount of any death benefit payable with respect to a Participant will, to
the extent such Account is sufficient therefore, be withdrawn from the Fixed
Income Account, Stock Account, Balanced Account, Aggressive Stock Account and
Money Market Account maintained with respect to such Participant under the
Contract. Upon such payment, Equitable will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Values arose.
SECTION 2.10 OWNER DEATH DISTRIBUTION RULES.
Upon the death of a certificate Owner before a Participant's Retirement Date:
(i) If the Owner is the Participant, Equitable will pay the death benefit in
accordance with Section 2.09.
(ii) If the Owner is not the Participant, the designated beneficiary will
succeed as Owner, notwithstanding the existence of any co-owner. The
entire interest in the Accounts maintained for such Participant--subject
to any applicable withdrawal charges as described in the certificate--must
be distributed either: a) within 5 years after the Owner's death, or b)
within 1 year after the Owner's death as a life annuity or installment
option, for a period of not longer than the life expectancy of the
designated beneficiary.
However, if the designated beneficiary is the Owner's spouse, the entire
interest in the Accounts maintained for such Participant must then be
distributed no later than 5 years after the spouse's death.
If payments under an Annuity Benefit had commenced prior to the Owner's death,
such payments will continue to be made over a period not longer than the period
provided for under the Annuity Benefit elected.
If the Participant dies before the entire interest in the Accounts maintained
for such Participant under the Contract is distributed, Equitable will pay the
death benefit in Section 2.09.
The designated beneficiary is the same as the beneficiary who is entitled to the
death benefit upon the Participant's death.
Where more than one Owner is named, the date of death of the Owner will be
deemed to be the date of death of the first Owner to die.
SECTION 2.11 CONTRIBUTION LIMIT. Equitable may refuse to accept a Contribution
made with respect to a Participant if the total prior Contributions made with
respect to the Participant exceed (or if acceptance of such Contribution would
cause the total Contributions to exceed) the following:
(i) $500,000, if the Participant's current age last birthday is 75 or less.
(ii) $250,000, if the Participant's current age last birthday is 76-79.
Equitable may refuse to accept any Contribution made with respect to a
Participant if such Participant's current age last birthday is 80 or greater.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of Separate Account A.
The amount of the first, second, and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to the payee pursuant to Section 3.04. The amount
of the fourth and each subsequent payment under a Variable Annuity Benefit will
be equal to the number of Annuity Units with respect to such benefit, multiplied
by the Average New Annuity Unit Value for the second calendar month immediately
preceding the date of the payment. The fourth and subsequent annuity payments
under a Variable Annuity Benefit will not be increased or decreased in amount
because of mortality or expense experience. The number of Annuity Units with
respect to a benefit is the number determined by dividing the amount of the
first monthly payment under such benefit by the New Annuity Unit Value for the
Valuation Period which includes the due date of the first monthly payment.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living, the
Annuity Values of such Participant's Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account shall
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ANNUITY BENEFITS (CONTINUED)
be applied to provide the Normal Form of Annuity Benefit, unless such
Participant elects (i) to receive the Cash Value of such Account in a single sum
or (ii) to apply such Annuity Value or Cash Value, whichever is applicable
pursuant to the first paragraph of Section 3.04, to provide an Annuity Benefit
on any other annuity form offered by Equitable, as elected by the Participant,
subject to Equitable's rules then in effect.
Equitable will provide notice and election forms to a Participant not more than
six months before such Participant's Retirement Date.
If a Participant elects to terminate participation under the Contract pursuant
to Section 2.06 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Values of such Participant's Fixed Income
Account, Stock Account, Balanced Account, Aggressive Stock Account and Money
Market Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If a Participant elects to receive an
Annuity Benefit in lieu of the Cash Values of the Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
the amount applied to provide the Annuity Benefit will be (i) the Annuity Values
of such Accounts if the payments under the annuity form elected are contingent
upon the survival of a person, or (ii) the Cash Values of such Accounts if the
payments under the annuity form elected are not contingent upon the survival of
a person.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If such
amount is applied on or after the completion of five Participation Years with
respect to such Participant: (1) The balance, less any Contribution made on
behalf of the Participant during the current and five prior Participation Years,
shall purchase the Annuity Benefit on the basis of either (i) the Table of
Guaranteed Annuity Payments shown herein or (ii) Equitable's current individual
annuity rates for payments of proceeds, whichever rates would provide a larger
benefit with respect to the payee, (2) Any Contributions made on behalf of the
Participant during the current and five prior Participation Years shall purchase
the Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown herein or (ii) Equitable's current individual rates applicable to
funds which derive from sources outside Equitable, whichever rates would provide
a larger benefit with respect to the payee. If such current individual annuity
rates are used, such Participant's certificate will be replaced by an Equitable
supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to a Participant, the
balance, after any applicable tax on annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown herein or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, such Participant's certificate will be
replaced by an Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account maintained
for such Participant shall terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form with 10 years of payments guaranteed
or the Joint and Survivor Life Annuity Form (100% continuation). The amounts of
income provided under the Fixed Annuity Benefit payable on the Life Annuity Form
with 10 years of payments guaranteed and Joint and Survivor Life Annuity Form
are based on 3 1/2% interest and the 1971 Equitable Annuity Mortality Table. The
amounts of income initally provided under the Variable Annuity Benefit payable
on the Life Annuity Form and Joint and Survivor Life Annuity Form are based on
the 1979 Equitable Annuitant Mortality Table and an Assumed Base Rate of Net
Investment Return of 3 1/2% or 5%, whichever applies pursuant to Section 1.15.
Equitable may change the monthly income amounts contained in the Tables of
Guaranteed Annuity Payments and the basis for determining such amounts, for new
Participants, by at least 90 days advance notice to the Contract Holder and by
an amendment to the Contract.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/2% interest and the 1971 Equitable Annuity
Mortality Table if such annuity form provides for a Fixed Annuity Benefit, and
on the 1979 Equitable Annuitant Mortality Table and an Assumed Base Rate of Net
Investment Return of 5% or 3 1/2%, whichever applies pursuant to Section 1.15,
if such annuity form provides for a Variable Annuity Benefit.
--------
No. 11937 NQ Page Ten
<PAGE>
Page Eleven
-----------
ANNUITY BENEFITS (CONTINUED)
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's survival must
be furnished to Equitable either by personal endorsement of the check drawn for
payment or by other means satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian,
committee, or other representative of the estate of such payee has been
appointed, Equitable may make the payments (in the case of a minor, at a rate
not exceeding $50 a month) to such other person or institution, and will
thereupon be fully discharged from all liability with respect thereto.
Upon election by a Participant pursuant to Section 3.03 of an annuity form
providing payments for a period certain, such Participant may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis
originally used to determine such payments.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM WITH 10 YEARS OF PAYMENTS GUARANTEED --
100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.65 4.71 4.77 4.83 4.89 4.94 5.00 5.06 5.11 5.17 5.22
61 4.68 4.74 4.81 4.87 4.93 4.99 5.05 5.11 5.17 5.23 5.29
62 4.71 4.78 4.84 4.91 4.97 5.04 5.10 5.17 5.23 5.29 5.35
63 4.74 4.81 4.88 4.94 5.01 5.08 5.15 5.22 5.29 5.36 5.42
64 4.77 4.84 4.91 4.98 5.05 5.13 5.20 5.27 5.35 5.42 5.49
65 4.79 4.87 4.94 5.02 5.09 5.17 5.25 5.33 5.40 5.48 5.56
66 4.82 4.89 4.97 5.05 5.13 5.21 5.29 5.38 5.46 5.54 5.62
67 4.84 4.92 5.00 5.08 5.17 5.25 5.34 5.42 5.51 5.60 5.69
68 4.86 4.94 5.03 5.11 5.20 5.29 5.38 5.47 5.56 5.66 5.75
69 4.88 4.97 5.05 5.14 5.23 5.32 5.42 5.52 5.61 5.71 5.81
70 4.90 4.99 5.08 5.17 5.26 5.36 5.46 5.56 5.66 5.76 5.87
- ----------------------------------------------------------------------------------------------------------
</TABLE>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM--100% CONTINUATION--ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.31 4.35 4.39 4.43 4.47 4.51 4.55 4.59 4.63 4.67 4.71
61 4.35 4.39 4.43 4.48 4.52 4.56 4.61 4.65 4.69 4.73 4.78
62 4.39 4.43 4.48 4.52 4.57 4.61 4.66 4.71 4.75 4.80 4.85
63 4.42 4.47 4.52 4.57 4.62 4.67 4.72 4.77 4.82 4.87 4.92
64 4.46 4.51 4.57 4.62 4.67 4.72 4.77 4.83 4.88 4.94 4.99
65 4.50 4.56 4.61 4.66 4.72 4.78 4.83 4.89 4.95 5.01 5.07
66 4.54 4.60 4.65 4.71 4.77 4.83 4.89 4.95 5.01 5.08 5.14
67 4.58 4.64 4.70 4.76 4.82 4.88 4.95 5.01 5.08 5.15 5.22
68 4.62 4.68 4.77 4.81 4.87 4.95 5.01 5.08 5.15 5.22 5.29
69 4.65 4.72 4.78 4.85 4.92 4.99 5.06 5.14 5.22 5.29 5.37
70 4.69 4.76 4.83 4.90 4.97 5.05 5.12 5.20 5.28 5.36 5.45
- ----------------------------------------------------------------------------------------------------------
</TABLE>
-----------
No. 11937 NQ Page Eleven
<PAGE>
Page Twelve
-----------
ANNUITY BENEFITS (CONTINUED)
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM--100% CONTINUATION--ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.19 5.23 5.27 5.31 5.34 5.39 5.42 5.46 5.50 5.54 5.58
61 5.23 5.27 5.31 5.35 5.39 5.43 5.47 5.52 5.56 5.60 5.64
62 5.27 5.31 5.35 5.39 5.44 5.48 5.53 5.57 5.62 5.67 5.71
63 5.31 5.35 5.39 5.44 5.49 5.53 5.58 5.63 5.68 5.73 5.78
64 5.34 5.39 5.44 5.48 5.53 5.59 5.64 5.69 5.74 5.79 5.85
65 5.38 5.43 5.48 5.53 5.58 5.64 5.69 5.75 5.80 5.86 5.92
66 5.42 5.47 5.52 5.58 5.63 5.69 5.75 5.81 5.87 5.93 5.99
67 5.45 5.51 5.56 5.62 5.68 5.74 5.80 5.87 5.93 6.00 6.06
68 5.49 5.55 5.61 5.67 5.73 5.80 5.86 5.93 6.00 6.06 6.14
69 5.53 5.59 5.65 5.71 5.78 5.85 5.92 5.99 6.06 6.13 6.21
70 5.56 5.63 5.69 5.76 5.83 5.90 5.97 6.05 6.13 6.21 6.29
- ----------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY
FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
<TABLE>
<CAPTION>
FIXED ANNUITY BENEFIT VARIABLE ANNUITY BENEFIT
WITH 10 YEARS OF IF ASSUMED BASE RATE OF NET
PAYMENTS INVESTMENT RETURN IS
GUARANTEED -------------------------------------------
------------------------- 3 1/2% 5%
------ --
MALES FEMALES MALES FEMALES MALES FEMALES
----- ------- ----- ------- ----- -------
<S> <C> <C> <C> <C> <C> <C>
60 5.77 5.06 5.43 4.80 6.36 5.70
61 5.89 5.16 5.57 4.90 6.50 5.81
62 6.02 5.28 5.72 5.01 6.65 5.91
63 6.16 5.40 5.88 5.13 6.81 6.03
64 6.29 5.52 6.05 5.25 6.97 6.15
65 6.44 5.66 6.23 5.39 7.16 6.28
66 6.59 5.80 6.43 5.54 7.35 6.43
67 6.74 5.94 6.64 5.70 7.56 6.58
68 6.90 6.10 6.87 5.87 7.79 6.76
69 7.06 6.26 7.11 6.06 8.03 6.95
70 7.23 6.43 7.38 6.27 8.30 7.15
</TABLE>
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average New Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.06.
PART IV - GENERAL PROVISIONS.
SECTION 4.01 CONTRACT. The Contract constitutes the entire Contract between the
parties and the provisions of the Contract alone will govern with respect to the
rights and obligations of Equitable. The provisions of the Contract will be
applied separately with respect to each Participant.
Nothing in the enrollment form referred to in Section 1.02 nor any modification,
amendment, or supplement to any such document will in any way be construed to
enlarge, change, vary or in any other way affect the obligations of Equitable as
expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Contract Holder and Equitable without the consent of any
other person provided that such change does not reduce any Annuity Benefit
provided before such change and provided that no rights, privileges or benefits
which have accrued to any Participant under the Contract may be reduced or
forfeited except by the expressed consent of such Participant.
SECTION 4.02 STATUTORY COMPLIANCE. Equitable reserves the right to amend the
Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the Contract and any certificate to reflect changes in
the Code, or in regulations or published rulings of the Internal Revenue Service
so that such certificate will continue to be an "annuity" as defined in Section
72 of the Code.
Any Annuity Benefit, Cash Value or death benefit available under a certificate
issued pursuant to the Contract shall not be less than the minimum benefits
required by any statute of the state in which the certificate is delivered.
SECTION 4.03 PARTICIPATION IN SURPLUS. The Contract and all other contracts in
the same class of contracts shall be combined for the purpose of ascertaining
the annual surplus of Equitable to be apportioned to said contracts as a
dividend and the portion of any such dividend that is to be allocated to the
Contract shall be determined by Equitable. The participation of this class of
contracts in annual surplus is, however, expected to be minimal. Any amount so
allocated to the Contract shall be payable as of January 1 of the calendar year
in which a dividend is apportioned and will be payable in cash and shall be
equitably allocated by Equitable to the Fixed Income Accounts maintained
hereunder for Participants.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.04 BENEFICIARY. Each Participant, as of the Participant's
Participation Date, is to name a beneficiary entitled to receive any death
benefit payable with respect to such Participant pursuant to Section 2.09. The
Participant may change such beneficiary from time to time while Accounts for the
Participant are being maintained hereunder. Any such change will be made by
-----------
No. 11937 NQ Page Twelve
<PAGE>
Page Thirteen
-------------
GENERAL PROVISIONS (CONTINUED)
written notice in a form satisfactory to Equitable. A change will, upon receipt
at a designated Equitable Office, take effect as of the time the written notice
was signed, whether or not the Participant is living on the date of receipt, but
without further liability as to any payment or other settlement made by
Equitable before receipt of such change.
Unless otherwise specified in the enrollment form, if a Participant has named
two or more persons as beneficiary, the beneficiary will be the named person or
persons who survive the Participant, and if more than one survive they will
share equally.
Any part of a death benefit payable with respect to a Participant pursuant to
Section 2.09 for which there is no named beneficiary living at the death of the
Participant will be payable in a single sum to the children of the Participant
who survive the Participant, in equal shares, or should none survive, then to
the Participant's executors or administrators.
If a Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of a
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.05 FUTURE PARTICIPANTS AND CONTRIBUTIONS. Equitable reserves the right
at its sole discretion to (i) curtail or prohibit further enrollment as
Participants under the Contract of any individuals who are not currently
participating under the Contract as of such date of curtailment or prohibition,
and (ii) prohibit future Contributions under the Contract upon written notice to
existing Participants.
SECTION 4.06 DEFERMENT. Payments by Equitable from the Participant's Fixed
Income Account pursuant to the provisions of Section 2.06, Sections 2.07 and
2.07A, and Section 2.09, or any commuted payments arising from a Fixed Annuity
Benefit pursuant to Section 3.05, may be deferred for up to six months after
receipt of a written request for such surrender or withdrawal, or receipt of due
proof of death of the Participant, respectively, or receipt of due documentation
for such commutation payment pursuant to Section 3.05. Interest at the current
Guaranteed Interest Rate for such Participant's Fixed Income Account will be
allowed on any such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the Participant's
Stock Account, Balanced Account, Aggressive Stock Account or Money Market
Account pursuant to the provisions of Section 2.06, Sections 2.07 or 2.07A, and
Section 2.09, or any commuted payments arising from a Variable Annuity Benefit
pursuant to Section 3.05, will be made within seven days after receipt, at
Equitable's Processing Office, of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant, respectively,
or receipt of due documentation for such commutation payment pursuant to Section
3.05.
During any period when (i) the sale of securities or the determination of the
New Accumulation Unit Value or the Average New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or trading
on such Exchange is restricted, or (ii) the Securities and Exchange Commission
may by order permit postponement for the protection of persons having interests
in the Separate Accounts, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of
Cash Values and Annuity Values, arising from an amount in the
Participant's Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account;
(b) to defer payment of any portion of the death benefit arising from an
amount in a Participant's Stock Account, Balanced Account, Aggressive
Stock Account or Money Market Account;
(c) to defer the payment of any Variable Annuity Benefit under the
Contract or the application of any such Benefit to provide for any
other payment called for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to
provide any Annuity Benefit permitted under the Contract.
SECTION 4.07 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Participant with a
notice showing as of a specified recent date (1) the Annuity Value of the Fixed
Income Account, (2) the total number of Accumulation Units credited to the Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
(3) the New Accumulation Unit Values, (4) the sum of the Cash Values of the
Fixed Income Account, Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account and (5) the amount of death benefit payable with
respect to the Participant. After the Retirement date Equitable will notify the
Participant of the number of Annuity Units and the Average New Annuity Unit
Value used in determining the amount of each Variable Annuity Benefit payment,
if any.
SECTION 4.08 CONTRACT HOLDER RESPONSIBILITY. The sole responsibility of the
Contract Holder is to serve as party to the Contract. The Contract Holder will
have no responsibility for the administration of any Plan or Agreement, for
payments to
-------------
No. 11937 NQ Page Thirteen
<PAGE>
Page Fourteen
-------------
GENERAL PROVISIONS (CONTINUED)
the Fixed Income Account, Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account, or any payments or other distributions
hereunder. Equitable will deal with the Contract Holder in accordance with the
terms and conditions of the trust agreement pursuant to which the Contract
Holder agreed to act as such and with the Contract and in such manner as the
Contract Holder and Equitable may agree, without the consent of any other
person.
SECTION 4.09 AGE AND SEX. If the age or sex of any person upon whose life an
Annuity Benefit depends has been misstated, any benefits will be those which
would have been purchased at the correct age and sex. Any overpayments or
underpayments made by Equitable will be charged or credited with interest at the
rate of 6% per year, and such interest will be deducted from or added to
benefits falling due thereafter.
-------------
No. 11937 NQ Page Fourteen
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Section 2.07 is modified by adding the following after the last sentence:
If a withdrawal from the Accounts made pursuant to Sections 2.07 or 2.07A
would result in total Annuity Values of less than $500, Equitable will so
advise the Participant and reserves the right to withdraw the Annuity
Values of the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account, pay the Annuity values
of such Accounts to the Participant, and terminate such Participant's
participation under the contract.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF17026 NQ
<PAGE>
OWNER:
PARTICIPANT:
CONTRACT NUMBER:
[THE EQUITABLE LOGO] ISSUE DATE:
PARTICIPATION DATE:
RETIREMENT DATE:
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996,
G.P.O. New York, New York 10116
AGREES
O To allocate the Contributions made to this Contract to the Stock Account,
Balanced Account, Aggressive Stock Account, Money Market Account or the
Fixed Income Account maintained for the Participant, in accordance with
Sections 2.02 and 2.03, or in part to any one, as directed by the
Participant.
O To apply the amount in the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and the Fixed Income Account at the
Retirement Date to provide the Participant with an Annuity Benefit or a
Cash Value Benefit if the Participant is then living, and
O To provide the Participant with the other rights and benefits of this
Contract.
These agreements are subject to the provisions of this Contract.
TEN DAYS TO EXAMINE CONTRACT - The Participant may terminate participation under
the Contract and cancel this Contract by returning it to Equitable within ten
days after receipt of it. Upon such cancellation, Equitable will refund any
Contribution made to Equitable on behalf of the Participant under the Contract,
plus or minus any investment gain or loss experienced in the Participant's Stock
Account, Balanced Account, Aggressive Stock Account, or Money Market Account
from the date such Contribution is allocated to such Account to the date of such
Cancellation.
VICE PRESIDENT
AND SECRETARY PRESIDENT
ASSETS HELD IN CONNECTION WITH THE CONTRACT MAY BE HELD IN SEPARATE ACCOUNTS
MAINTAINED BY EQUITABLE AND MAY INCREASE OR DECREASE IN VALUE AS DESCRIBED IN
THE CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF
SEPARATE ACCOUNT A. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE
DAILY RATE OF INVESTMENT RETURN IN SEPARATE ACCOUNT A IS EQUIVALENT TO MORE THAN
6.75% OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75%
OR 5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.15 IS 5% OR 3 1/2%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE OF 1.75%
FOR INVESTMENT MANAGEMENT, FINANCIAL ACCOUNTING, THE ANNUITY RATE GUARANTEE AND
MINIMUM DEATH BENEFIT, EXPENSES AND EXPENSE RISK, BUT AFTER ANY DEDUCTIONS TO
PROVIDE FOR TAXES.
NO. 11939C NQ-I INDIVIDUAL DEFERRED
ANNUITY CONTRACT
<PAGE>
CONTENTS
Part I - Definitions Page 2
Part II - Participant's Accounts Page 6
Part III - Annuity Benefits Page 9
Part IV - General Provisions Page 12
Equitable certifies that the Participant is as named on Page 3 of this
Individual Annuity Contract, all pertinent provisions of which are set forth
below.
The Contract is issued in consideration of the payment to Equitable of the
Contributions made under the Contract.
The provisions on the following pages are part of this Contract. A copy of the
application is incorporated in and made part of this Contract.
PART I - DEFINITIONS
SECTION 1.01 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Part III of the Contract.
SECTION 1.02 PARTICIPANT. The term "Participant" means a person who is the
annuitant under the Contract. A person shall become the Participant under the
Contract upon receipt by Equitable of an application made available by Equitable
and completed in a manner satisfactory to Equitable.
SECTION 1.03 OWNER. The Owner of the Contract is the Participant unless
otherwise stated in the application, or later changed. Notwithstanding any
provisions in the Contract to the contrary, only the Owner can exercise all the
rights under the Contract while the Participant is living. The Owner does not
need the consent of anyone who has only a conditional or future ownership
interest in the Contract.
While the Participant is living, the Owner of the Contract issued on behalf of
the Participant may change the Owner by written notice satisfactory to
Equitable. The change will take effect on the date the Owner signs the notice,
except it will not apply to any payment Equitable makes or other actions
Equitable takes before Equitable receives the notice.
SECTION 1.04 ASSIGNMENTS. This Contract may not be assigned as collateral or
security for a loan. Otherwise, the Participant may assign this Contract before
the Retirement Date but Equitable will not be bound by an assignment unless it
is in writing and Equitable has received it. The Participant's rights and those
of any persons referred to in the Contract will be subject to the assignment.
Equitable assumes no responsibility for the validity of any assignment.
No amounts payable under the Contract to a payee other than the Owner may be
assigned by that payee, nor will they be subject to the claims of creditors or
to legal process, except to the extent permitted by law.
SECTION 1.05 CONTRIBUTION. The term "Contribution" means a payment made to
Equitable for the Participant with respect to this annuity Contract purchased
for the Participant. Equitable is under no obligation to accept any Contribution
less than $50.00.
SECTION 1.06 PARTICIPATION DATE. The term "Participation Date" with respect to
the Participant means the date as of which Equitable has accepted the
Participant under the terms of this Contract, as shown on Page 3 of this
Contract.
SECTION 1.07 PARTICIPATION YEAR. The term "Participation Year" with respect to
the Participant means the twelve month period beginning on (i) the Participation
Date, and (ii) each anniversary thereof, unless otherwise agreed to in writing
by Equitable.
SECTION 1.09 GUARANTEED INTEREST RATE. In regard to the Fixed Income Account,
the term "Guaranteed Interest Rate" means the effective annual rate at which
interest accrues on the amount in such Account. Interest accrues daily. The
Guaranteed Interest Rate will never be less than 4% per annum.
Equitable will from time to time establish and make available for the
Participant (i) an Initial Guaranteed Interest Rate, (ii) one or more Minimum
Guaranteed Interest Rates and (iii) the applicable effective period(s) for such
Rates.
NO. 11939C NQ-I --------
Page Two
<PAGE>
Page Four
---------
DEFINITIONS (CONTINUED)
For the period (not to exceed one year) next succeeding the end of the period
for which an established Initial Guaranteed Interest Rate is effective and for
each subsequent period (not to exceed one year) the Equitable may determine a
Guaranteed Interest Rate and duration which exceeds the applicable Minimum
Guaranteed Interest Rate. Equitable will notify the Participant in writing of
the applicable Guaranteed Interest Rate and duration.
SECTION 1.10 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Participant is to attain the retirement age specified in the Participant's
application. Before the Retirement Date the Participant may elect to change the
Retirement Date to another Retirement Date, which may be any date after the
filing of the election (other than the 29th, 30th, or 31st day of any month). No
Retirement Date shall be later than the date the Participant attains age 85. Any
election for such change must be made in writing by the Participant and shall
not take effect until received by Equitable at its Processing Office.
SECTION 1.11 NORMAL FORM. The "Normal Form" of an Annuity Benefit under this
Contract means the Fixed Annuity Benefit payable on the Life Annuity Form, as
defined in Sections 3.01 and 1.12, with 10 years of payments guaranteed.
SECTION 1.12 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
providing fixed monthly payments during the lifetime of the person upon whose
life such payments depend. The payments commence on the date as of which the
Life Annuity Form is purchased and terminate with the last payment due before
the death of such person or the end of a chosen certain period, whichever is
later.
SECTION 1.13 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by the Participant. The payments commence on the date as of which the
Joint and Survivor Life Annuity Form is purchased and terminate with the last
payment due before the death of the survivor.
SECTION 1.14 THE SEPARATE ACCOUNTS. The term "Separate Accounts" means the
following separate investment accounts maintained by Equitable to which portions
of its assets have been allocated for this Contract and certain other contracts:
NAME INVESTMENTS
---- -----------
Separate Account A Primarily common stock and other equity-type investments.
Separate Account E Primarily short-term money market instruments.
Separate Account J Primarily common stocks and other equity-type investments,
publicly traded debt securities and short-term money market
instruments.
Separate Account K Primarily common stocks issued by high quality small and
intermediate size companies with strong growth prospects.
Equitable reserves the right to withdraw from any Separate Account and allocate
to another Separate Account assets determined by Equitable to be associated with
the class of contracts to which this Contract belongs. In any such event, to the
extent practicable and permissible under applicable laws and regulations, the
withdrawal shall be made by withdrawing the same percentage of each investment
in the Separate Account, with appropriate adjustments to avoid odd lots and
fractions. On and after the date of any such withdrawal the reference in this
Contract to such Separate Account shall mean such other Separate Account to
which the withdrawn assets were allocated.
It is contemplated that investments in the Separate Accounts will, at most
times, consist primarily of the types of investments indicated above. Equitable
may, however, at its discretion invest the assets of any Separate Account in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including attorneys in its employ) as to what investments it
is permitted by law to make.
In lieu of making such investments directly, Equitable reserves the right to
operate any Separate Account as a unit investment trust, or in any other form
permitted by law, investing all or a part of its assets in shares or units of a
fund, the investment adviser of which may be Equitable or controlled by
Equitable. The fund assets would be invested as provided above with respect to
the Separate Account.
Equitable reserves the right: (i) to cause the registration or deregistration of
any Separate Account under the Investment Company Act of 1940, provided that
such registration or deregistration is in conformity with the requirements of
applicable law; (ii) to run any Separate
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DEFINITIONS (CONTINUED)
Account under direction of a committee, and to discharge such committee at any
time; and (iii) to restrict or eliminate any voting rights of participants or
other persons who have voting rights as to the Separate Accounts.
Assets of the Separate Accounts attributable to the Contract shall be subject to
a charge at the rate of 1.75% a year, for investment management, financial
accounting, the annuity rate guarantee and the minimum death benefit, and
expenses and expense risk. The charge shall be made in accordance with (c) of
the Net Investment Factor provision in Section 1.15.
The assets of Separate Accounts are the property of Equitable; however, the
portion of the assets of each Separate Account equal to the reserves and other
contract liabilities with respect to such Account shall not be chargeable with
liabilities arising out of any other business Equitable may conduct. Equitable
reserves the right to transfer assets of the Separate Accounts in excess of such
reserves and contract liabilities to the general account of Equitable.
SECTION 1.15 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS.
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business days immediately preceding such business day will
constitute a Valuation Period. A business day is any day on which the New York
Stock Exchange is open.
NET INVESTMENT FACTOR: For each Separate Account, the Net Investment Factor for
a Valuation Period is (a) divided by (b), minus (c), where
(a) is (1) the value of assets in the Separate Account at the close of business
of the preceding Valuation Period plus (2) the investment income and the
capital gains, realized or unrealized, credited to the assets of the
Separate Account in the Valuation Period for which the Net Investment
Factor is being determined, minus (3) the capital losses, realized or
unrealized, charged against such assets in such Valuation Period, minus (4)
any amount charged against the Separate Account in such Valuation Period
for taxes or for amounts set aside by Equitable as a reserve for taxes
attributable to the maintenance or operation of the Separate Account;
(b) is the value of the assets in the Separate Account at the close of business
of the preceding Valuation Period; and
(c) is the daily charge, for each calendar day in such Valuation Period, of
.00004837 for investment management financial accounting, the annuity rate
guarantee and the minimum death benefit, and expenses and expense risk.
The value of the assets in the Separate Accounts, referred to above, shall be
taken at their fair value, or where there is no readily available market, their
fair value, as determined in accordance with accepted accounting practices and
applicable laws and regulations.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the value
of the interest of a Participant's Stock Account, Balanced Account, Aggressive
Account or Money Market Account on or before the Retirement Date.
NEW ACCUMULATION UNIT VALUE: The initial New Accumulation Unit Values for the
Separate Accounts have been established as follows:
Account Value Date
------- ----- ----
Separate Account A $10.00 As of November 1, 1968
Separate Account E $10.00 As of September 4, 1974
Separate Account J $10.00 As of May 1, 1984
Separate Account K $10.00 As of May 1, 1984
The New Accumulation Unit Value for each subsequent Valuation Period is the New
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such subsequent Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from Separate Account A under a Variable Annuity Benefit.
NEW ANNUITY UNIT VALUE: The initial New Annuity Unit Value for Separate Account
A has been established at $1.00 as of November 1, 1968. The Annuity Unit Value
for any subsequent Valuation Period is the New Annuity Unit Value for the
immediately preceding Valuation Period multiplied by the Adjusted Net Investment
Factor for such subsequent Valuation Period. The Adjusted Net Investment Factor
for a Valuation Period is the Net Investment Factor for such period reduced for
each calendar day in such subsequent Valuation Period by the Net Investment
Factor times (i) .00013366, if the Assumed Base Rate of Net Investment Return is
5%, and (ii) .00009425, if the Assumed Base Rate of Net Investment Return is
3 1/2%. The Assumed Base Rate of Net Investment Return shall be 5%, except in
states where the rate is not permitted by law.
AVERAGE NEW ANNUITY UNIT VALUE: The Average Annuity Unit Value for Separate
Account A for a calendar month is equal to the average of the New Annuity Unit
Values for the Valuation Periods ending in such month.
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DEFINITIONS (CONTINUED)
SECTION 1.16 ANNUITY VALUE. The term "Annuity Value" with respect to the
Participant's Fixed Income Account, Stock Account, Balanced Account, Aggressive
Stock Account and Money Market Account, means the amount in such Accounts
pursuant to Sections 2.02 and 2.03.
SECTION 1.17 CASH VALUE. With respect to the Participant, the term "Cash Value"
with respect to the Participant's Fixed Income Account, Stock Account, Balanced
Account, Aggressive Stock Account, and Money Market Account, means an amount
equal to the greater of (i) or (ii) below:
(i) the Annuity Value of such Accounts less 6% of the Contributions made during
the current and five prior Participation Years, which had not been
previously withdrawn pursuant to Section 2.07A.
(ii) the sum of (a) the Free Corridor Amount as defined in Section 2.07B and (b)
94% of (the Annuity Value of such Accounts less the Free Corridor Amount).
SECTION 1.18 CODE. The term "Code" means the Internal Revenue Code of 1954, as
now or hereafter amended, or any corresponding provisions of prior or subsequent
United States revenue laws.
PART II - PARTICIPANT'S ACCOUNTS
SECTION 2.01 CONTRIBUTIONS. Contributions may be made with respect to the
Participant on whichever basis, as described under subsections A and B below, is
specified upon the Participant's acceptance under the Contract. If Contributions
are made by or on behalf of the Participant under more than one such basis,
Equitable will accept such Contributions if the Participant has been issued a
separate Contract under each basis, and in such case separate Contracts for the
Participant will reflect amounts accumulated on the Participant's behalf
attributable to Contributions made under each Contribution basis.
A. Post-August 13, 1982 Basis
Contributions are to be made from time to time at the Participant's discretion.
With each Contribution, the amounts to be allocated to the Stock Account, Money
Market Account, Fixed Income Account, Balanced Account and Aggressive Stock
Account shall be specified.
The Participant may transfer to the Contract under this basis any amount held
with respect to the Participant under a deferred annuity contract, where such
transferred amount represents amounts invested in or credited to investments in
annuity contracts after August 13, 1982.
B. Pre-August 14, 1982 Basis
The Participant may transfer to the Contract under this basis any amount held
with respect to the Participant under a deferred annuity contract where such
transferred amount represents amounts invested in or credited to investments in
annuity contracts prior to August 14, 1982. New contributions cannot be made
under this basis.
SECTION 2.02 STOCK, BALANCED, AGGRESSIVE STOCK AND MONEY MARKET ACCOUNTS.
Equitable maintains a Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account under the Contract for the Participant. Any amount
allocated to the (1) Stock Account becomes part of Separate Account A, (2)
Balanced Account becomes part of Separate Account J, (3) Aggressive Stock
Account becomes part of Separate Account K, and (4) Money Market Account becomes
part of Separate Account E. Any amount withdrawn from an Account will no longer
be part of the applicable Separate Account.
On any date when an amount is allocated to or withdrawn from an Account, the
Account will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the New Accumulation
Unit value for the appropriate Separate Account for the Valuation Period which
includes that date. The number of Units in an Account on any date is equal to
(i) the sum of any Accumulation Units that have been credited to the Account
minus (ii) the sum of any Accumulation Units that have been charged to that
Account. The amount in the Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account on any date is equal to the product of (i) the
number of Accumulation Units in such Account on that date and (ii) the New
Accumulation Unit Value for the appropriate Separate Account for the Valuation
Period which includes that date, less any administrative charge accrued but not
made.
SECTION 2.03 FIXED INCOME ACCOUNT. Equitable maintains a Fixed Income Account
under the Contract for the Participant with respect to whom Contributions are
made. Any amount allocated to the Fixed Income Account becomes part of the
general assets of Equitable, which support the guarantees of this contract and
other contracts.
The amount in a Fixed Income Account at any time is equal to the sum of all
amounts that have been allocated to such Fixed Income Account pursuant to
Section 2.04 plus the amount of any interest accrued but not allocated, less the
sum of all amounts that have been withdrawn pursuant to Sections 2.07, 2.07A,
and Section 2.08 from such Account, and transferred pursuant to Section 2.05
from such Fixed Income Account, and less any annual administrative charges
accrued but not made. Equitable guarantees that the amount in a Fixed
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PARTICIPANT'S ACCOUNTS (CONTINUED)
Income Account at any time before the Retirement Date will not be less than the
sum of all amounts allocated to such Account pursuant to Section 2.04 or
transferred to such Account pursuant to Section 2.05 and less the sum of all
amounts that have been withdrawn from such Account pursuant to Sections 2.07,
2.07A and 2.08, and transferred from such Account pursuant to Section 2.05, all
accumulated at 4% interest, compounded annually. In any Participation Year in
which no Contribution is allocated to a Fixed Income Account, the amount in such
Account at the end of the Participation Year shall in no event be less than the
amount in such Account at the beginning of the Participation Year plus the sum
of all amounts transferred to such Account pursuant to Section 2.05 less the sum
of all amounts withdrawn and transferred out of such Account pursuant to
Sections 2.07, 2.07A, and Section 2.05, all accumulated at 4% interest,
compounded annually.
A Fixed Income Account for the Participant terminates on the earliest of (i) the
Retirement Date, (ii) the death of the Participant, and (iii) termination of
participation pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO ACCOUNT. Each Contribution made with respect to the
Participant pursuant to Section 2.01, will be allocated, as of the date by which
Equitable has received at its Processing Office both such Contribution and
direction as to its allocation, to the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account or Money Market Account or in part to
each, at the sole direction of the Participant as specified to Equitable,
provided that the percentage allocated to each Account is a whole number.
Any amount that the Participant has directed to be transferred to the Fixed
Income Account, Stock Account, Balanced Account or Aggressive Stock Account
pursuant to Section 2.05 will be allocated as of the date of such transfer to
the appropriate Account maintained for the Participant.
Interest is allocated to the Fixed Income Account at the end of each
Participation Year, at the time of each transfer or withdrawal pursuant to
Sections 2.05 and 2.07 and 2.07A, at the time of application of amounts in the
Fixed Income Account to provide Annuity Benefits, upon termination of
participation pursuant to Section 2.06, and upon death of the Participant
pursuant to Section 2.09.
SECTION 2.05 TRANSFERS AMONG ACCOUNTS. At any time before the Participant's
Retirement Date, the Participant may transfer all or part of the amounts
maintained for the Participant to one or more of the other Accounts maintained
for the Participant as follows: (1) amounts in the Fixed Income Account, Stock
Account, Balanced Account and Aggressive Stock Account may be transferred among
such Accounts; (2) amounts in the Money Market Account may be transferred to the
other Accounts. Such transfers will be made as of the date Equitable receives
such request at its Processing Office and will be subject to Equitable's rules
in effect at the time of transfer. No transfers are permitted from the Fixed
Income Account, Stock Account, Balanced Account or Aggressive Stock Account
maintained for the Participant to the Money Market Account. Notwithstanding the
above, transfers to the Balanced Account may be prohibited by Equitable upon 30
days written notice to the Participant.
SECTION 2.06 TERMINATION OF PARTICIPATION. On or before the Participant's
Retirement Date, the Owner may elect by written notice to terminate this
Contract. Upon receipt of such notice at its Processing Office, Equitable will
determine the Cash Value, as of the date Equitable received such notice of the
Fixed Income Account, Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account maintained for the Participant.
The payment of such Cash Value to the Participant may be deferred by Equitable
in accordance with the provisions of Section 4.06.
Prior to the Participant's Retirement Date, Equitable reserves the right to
withdraw the Cash Value of the Participant's Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
pay such Cash Values and terminate the Contract. This right may be exercised
with respect to the Participant only if no Contributions have been made to the
Contract on the Participant's behalf during the last three completed
Participation Years, and the sum of such Annuity Values is $500 or less.
Equitable reserves the right to terminate this Contract if at least 120 days
have elapsed since the issue date shown on Page 3 of the Contract and no
Contributions have been made to the Contract by or on behalf of the Participant.
Upon payment of the Cash Values, Equitable will be released from any and all
liability for payments with respect to the Contributions from which the Cash
Values arose.
SECTION 2.07 PARTIAL WITHDRAWALS. The Owner may elect by written notice to
Equitable to make a partial withdrawal from the Stock Account, Balanced Account,
Aggressive Stock Account, Money Market Account and the Fixed Income Account
maintained for the Participant before such Participant's Retirement Date.
Upon withdrawal pursuant to Section 2.07 or 2.07A Equitable will pay the lesser
of the sum of the Cash Values of the Accounts or the amount of partial
withdrawal requested to the person entitled to such payment as designated in
writing by the Participant. Unless instructed otherwise, the amount withdrawn
(including the amount of any withdrawal charge) will be allocated between such
Accounts in proportion to the Annuity Value of each such Account.
Upon any payment on behalf of the Participant pursuant to Section 2.07 or 2.07A,
Equitable will be released from any and all liability for payments with respect
to the Contributions from which the amounts so withdrawn arose.
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PARTICIPANT'S ACCOUNTS (CONTINUED)
Payments on behalf of the Participant pursuant to Section 2.07 or 2.07A may be
deferred by Equitable in accordance with the provisions of Section 4.06.
Equitable is under no obligation to process any request for partial withdrawal
of less than $300. If a withdrawal from the Accounts made pursuant to Section
2.07 would result in total Annuity Values of less than $500 and no Contributions
have been made to the Contract for the three prior Participation Years,
Equitable will so advise the Participant and reserves the right to withdraw the
Annuity Values of the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account, pay the Annuity Values of
such Accounts to the Participant, and terminate this Contract.
SECTION 2.07A PARTIAL WITHDRAWAL CHARGES. With respect to partial withdrawals
requested by the Participant, there will be no withdrawal charge if the amount
of the partial withdrawal requested is not greater than the Free Corridor Amount
defined in Section 2.07B. Equitable will withdraw from the Stock Account,
Balanced Account, Aggressive Stock Account, Money Market Account, and Fixed
Income Account and pay to the Participant an amount equal to the partial
withdrawal requested.
However, if the amount of partial withdrawal requested is greater than the Free
Corridor Amount, Equitable will (i) first withdraw from such Accounts an amount
equal to the Free Corridor Amount, and (ii) then withdraw an amount equal to the
excess of the amount requested over the Free Corridor Amount, plus a withdrawal
charge, if applicable. Such withdrawal charge will be calculated in the
following manner:
(a) Withdrawals of Contributions made on behalf of the Participant during the
current and five prior Participation Years will be subject to a charge of
6% of the amount withdrawn (including such charge).
(b) Withdrawals of other amounts will not be subject to any withdrawal charges.
Equitable will pay the Participant the lesser of (a) the amount requested or (b)
the sum of the Cash Values of the Accounts maintained on the Participant's
behalf.
For purposes of determining withdrawal charges described in this Section,
amounts withdrawn up to the Free Corridor Amount will not be considered a
withdrawal of any Contributions. Any excess withdrawals, i.e. those pursuant to
item (ii) above, shall be considered withdrawals of older contributions first
and more recent contributions next.
SECTION 2.07B FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" with respect
to the Participant means an amount equal to the excess, if any, of (i) 10% of
the sum of the Annuity Values of the Stock Account, Balanced Account, Aggressive
Stock Account, Money Market Account and the Fixed Income Account over (ii)
cumulative prior withdrawals made pursuant to Section 2.07 or 2.07A in the
current Participation Year with respect to the Participant.
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year before the Participant's Retirement Date, if the sum of the
Annuity Values of the Fixed Income Account, Stock Account, Balanced Account,
Aggressive Stock Account and Money Market Account on that date is less than
$10,000, Equitable will withdraw from the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account maintained
under the Contract, as to the Contributions remitted with respect to the
Participant, an annual administrative charge equal to the lesser of $30 or 2% of
the sum of (i) the Annuity Values of the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account at the end
of that Participation Year and (ii) any withdrawals made from such Accounts
pursuant to Section 2.07 or 2.07A during that Participation Year. The charge
will be allocated between the Stock Account, Balanced Account, Aggressive Stock
Account, Money Market Account and Fixed Income Account in proportion to the
Annuity Values of each such Account, at the end of the Participation Year.
As of the Participant's Retirement Date and before application of the Annuity
Values or Cash Values of the Participant's Account pursuant to Section 3.03, or
upon termination of such Account pursuant to Section 2.06 or Section 2.09 during
a Participation Year, if the sum of the Annuity Values of the Fixed Income
Account, Stock Account, Balanced Account, Aggressive Stock Account, and Money
Market Account at that date is less than $10,000, Equitable will withdraw the
administrative charge described in this Section for the applicable part of that
Participation Year.
SECTION 2.09 DEATH BENEFIT. If Equitable ascertains that the Participant has
died while Accounts for the Participant are maintained under the Contract and
before the Participant's Retirement Date, Equitable, upon receipt of due proof
of such death, will pay in a single sum to the beneficiary designated by the
Participant to receive such payment the amount of death benefit payable with
respect to the Participant. The amount of the death benefit with respect to the
Participant at any time prior to the Retirement Date is equal to the greater of
(i) the sum of the Annuity Values of the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account maintained
under the
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PARTICIPANT'S ACCOUNT (CONTINUED)
Contract for the Participant and (ii) the minimum death benefit with respect to
the Participant. Such minimum death benefit is the sum of all Contributions made
with respect to the Participant pursuant to Section 2.01 less an adjustment for
any withdrawals made pursuant to Section 2.07 or 2.07A from the Accounts
maintained under the Contract for the Participant. Any such withdrawal will
reduce the minimum death benefit (as adjusted by any previous such withdrawal)
by an amount which is in the same proportion as the amount being withdrawn is to
the Annuity Values then in the Fixed Income Account, Stock Account, Balanced
Account, Aggressive Stock Account and Money Market Account maintained under the
Contract for the Participant.
The amount of any death benefit payable with respect to the Participant will, to
the extent such Account is sufficient therefore, be withdrawn from the Fixed
Income Account, Stock Account, Balanced Account, Aggressive Stock Account and
Money Market Account maintained with respect to the Participant under the
Contract. Upon such payment, Equitable will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Values arose.
SECTION 2.10 OWNER DEATH DISTRIBUTION RULES. Upon the death of the Contract
Owner before the Participant's Retirement Date:
(i) If the Owner is the Participant, Equitable will pay the death benefit in
accordance with Section 2.09.
(ii) If the Owner is not the Participant, the designated beneficiary will
succeed as Owner, notwithstanding the existence of any co-owner. The entire
interest in the Accounts maintained for the Participant - subject to any
applicable withdrawal charges as described in the Contract - must be
distributed either: (a) within 5 years after the Owner's death, or (b)
within 1 year after the Owner's death as a life annuity or installment
option, for a period of not longer than the life expectancy of the
designated beneficiary.
However, if the designated beneficiary is the Owner's spouse, the entire
interest in the Accounts maintained for the Participant must then be
distributed no later than 5 years after the spouse's death.
If payments under an Annuity Benefit had commenced prior to the Owner's death,
such payments will continue to be made over a period not longer than the period
provided for under the Annuity Benefit elected.
If the Participant dies before the entire interest in the Accounts maintained
for the Participant under the Contract is distributed, Equitable will pay the
death benefit in Section 2.09.
The designated beneficiary is the same as the beneficiary who is entitled to the
death benefit upon the Participant's death.
Where more than one Owner is named, the date of death of the Owner will be
deemed to be the date of death of the first Owner to die.
SECTION 2.11 CONTRIBUTION LIMIT. Equitable may refuse to accept a Contribution
made with respect to the Participant if the total prior Contributions made with
respect to the Participant exceed (or if acceptance of such Contribution would
cause the total Contributions to exceed) the following:
(i) $500,000, if the Participant's current age last birthday is 75 or less.
(ii) $250,000, if the Participant's current age last birthday is 76-79.
Equitable may refuse to accept any Contribution made with respect to the
Participant if the Participant's current age last birthday is 80 or greater.
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of Separate Account A.
The amount of the first, second, and third payments under any Variable Annuity
Benefit provided under the Contract with respect to a payee is the monthly
amount provided with respect to the payee pursuant to Section 3.04. The amount
of the fourth and each subsequent payment under a Variable Annuity Benefit will
be equal to the number of Annuity Units with respect to such benefit, multiplied
by the Average New Annuity Unit Value for the second calendar month immediately
preceding the date of the payment. The fourth and subsequent annuity payments
under a Variable Annuity Benefit will not be increased or decreased in amount
because of mortality or expense experience. The number of Annuity Units with
respect to a benefit is the number determined by dividing the amount of the
first monthly payment under such benefit by the New Annuity Unit Value for the
Valuation Period which includes the due date of the first monthly payment.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of the
Participant's Retirement Date, provided the Participant is then living, the
Annuity Values of the Participant's Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account shall be
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ANNUITY BENEFITS (CONTINUED)
applied to provide the Normal Form of Annuity Benefit, unless the Participant
elects (i) to receive the Cash Value of such Account in a single sum or (ii) to
apply such Annuity Value or Cash Value, whichever is applicable pursuant to the
first paragraph of Section 3.04, to provide an Annuity Benefit on any other
annuity form offered by Equitable, as elected by the Participant, subject to
Equitable's rules then in effect.
Equitable will provide notice and election forms to the Participant not more
than six months before the Participant's Retirement Date.
If the Participant elects to terminate participation under the Contract pursuant
to Section 2.06 before the Retirement Date, an election may be made to receive
an Annuity Benefit in lieu of the Cash Values of the Participant's Fixed Income
Account, Stock Account, Balanced Account, Aggressive Stock Account and Money
Market Account.
Equitable will have the right to require the Participant to furnish pertinent
facts and determinations to provide an Annuity Benefit, and will be fully
protected in relying on such information and need not inquire as to the accuracy
or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If the Participant elects to receive an
Annuity Benefit in lieu of the Cash Values of the Fixed Income Account, Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
the amount applied to provide the Annuity Benefit will be (i) the Annuity Values
of such Accounts if the payments under the annuity form elected are contingent
upon the survival of a person, or (ii) the Cash Values of such Accounts if the
payments under the annuity form elected are not contingent upon the survival of
a person.
The amount applied to provide an Annuity Benefit shall be reduced by any
applicable tax on annuity considerations, as determined by Equitable. If such
amount is applied on or after the completion of five Participation Years: (1)
The balance, less any Contribution made on behalf of the Participant during the
current and five prior Participation Years, shall purchase the Annuity Benefit
on the basis of either (i) the Table of Guaranteed Annuity Payments shown herein
or (ii) Equitable's current individual annuity rates for payment of proceeds,
whichever rates would provide a larger benefit with respect to the payee. (2)
Any Contributions made on behalf of the Participant during the current and five
prior Participation Years shall purchase the Annuity Benefit on the basis of
either (i) the Table of Guaranteed Annuity payments shown herein or (ii)
Equitable's current individual rates applicable to funds which derive from
sources outside Equitable, whichever rates would provide a larger benefit with
respect to the payee. If such current individual annuity rates are used, this
Contract will be replaced by an Equitable supplementary contract.
If the amount applied to provide an Annuity Benefit is applied before the
completion of five Participation Years with respect to the Participant, the
balance, after any applicable tax annuity considerations, shall purchase the
Annuity Benefit on the basis of either (i) the Table of Guaranteed Annuity
Payments shown herein or (ii) Equitable's current individual annuity rates
applicable to funds which derive from sources outside Equitable, whichever rates
would provide a larger benefit with respect to the payee. If such current
individual annuity rates are used, this Contract will be replaced by an
Equitable supplementary contract.
After such application of an amount to provide an Annuity Benefit pursuant to
either of the preceding two paragraphs, the Fixed Income Account, Stock Account,
Balanced Account, Aggressive Stock Account and Money Market Account maintained
for the Participant shall terminate.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on either the Life Annuity Form with 10 years of payments guaranteed
or the Joint and Survivor Life Annuity Form (100% continuation). The amounts of
income provided under the Fixed Annuity Benefit payable on the Life Annuity Form
with 10 years of payments guaranteed and Joint and Survivor Life Annuity Form
are based on 3 1/2% interest and the 1971 Equitable Annuity Mortality Table. The
amounts of income initially provided under the Variable Annuity Benefit payable
on the Life Annuity Form and Joint and Survivor Life Annuity Form are based on
the 1979 Equitable Annuitant Mortality Table and an Assumed Base Rate of Net
Investment Return of 3 1/2% or 5%, whichever applies pursuant to Section 1.15.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on 3 1/2% interest and the 1971 Equitable Annuity
Mortality Table if such annuity form provides for a Fixed Annuity Benefit, and
on the 1979 Equitable Annuitant Mortality Table and an Assumed Base Rate of Net
Investment Return of 5% or 3 1/2%, whichever applies pursuant to Section 1.15,
if such annuity form provides for a Variable Annuity Benefit.
No. 11939C NQ-I ---------
Page Ten
<PAGE>
Page Eleven
-----------
ANNUITY BENEFITS (CONTINUED)
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's survival must
be furnished to Equitable either by personal endorsement of the check drawn for
payment or by other means satisfactory to Equitable.
If a benefit payable under the Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by Equitable will be charged against and
underpayments will be added to any payments thereafter falling due under the
Contract with respect to the payee. The liability of Equitable with respect to a
payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under the Contract.
If Equitable receives evidence satisfactory to it that (i) a payee entitled to
receive any payment under the Contract is physically or mentally incompetent to
receive such payment or is a minor, (ii) another person or an institution is
then maintaining or has custody of such payee, and (iii) no guardian, committee,
or other representative of the estate of such payee has been appointed,
Equitable may make the payments (in the case of a minor, at a rate not exceeding
$200 a month) to such other person or institution, and will thereupon be fully
discharged from all liability with respect thereto.
Upon election by the Participant pursuant to Section 3.03 of an annuity form
providing payments for a period certain, the Participant may designate (with the
right to change such designation) a person or persons to receive any payments
that may become due after the death of the person or persons upon whose life or
lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's executors or
administrators in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, Equitable will pay in a single
sum to such payee's executors or administrators the commuted value of any
remaining payments or installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis
originally used to determine such payments.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected pursuant to
Section 3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
Equitable will require satisfactory evidence of the age of any person upon whose
life an annuity form depends.
<TABLE>
<CAPTION>
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM WITH 10 YEARS OF PAYMENTS GUARANTEED -
100% CONTINUATION
(Minimum Monthly Income per $1,000 of Annuity Value)
- ---------- ----------------------------------------------------------------------------------------------------------------------
FEMALE AGE
MALE ----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.65 4.71 4.77 4.83 4.89 4.94 5.00 5.06 5.11 5.17 5.22
61 4.68 4.74 4.81 4.87 4.93 4.99 5.05 5.11 5.17 5.23 5.29
62 4.71 4.78 4.84 4.91 4.97 5.04 5.10 5.17 5.23 5.29 5.35
63 4.74 4.81 4.88 4.94 5.01 5.08 5.15 5.22 5.29 5.36 5.42
64 4.77 4.84 4.91 4.98 5.05 5.13 5.20 5.27 5.35 5.42 5.49
65 4.79 4.87 4.94 5.02 5.09 5.17 5.25 5.33 5.40 5.48 5.56
66 4.82 4.89 4.97 5.05 5.13 5.21 5.29 5.38 5.46 5.54 5.62
67 4.84 4.92 5.00 5.08 5.17 5.25 5.34 5.42 5.51 5.60 5.69
68 4.86 4.94 5.03 5.11 5.20 5.29 5.38 5.47 5.56 5.66 5.75
69 4.88 4.97 5.05 5.14 5.23 5.32 5.42 5.52 5.61 5.71 5.81
70 4.90 4.99 5.08 5.17 5.26 5.36 5.46 5.56 5.66 5.76 5.87
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
</TABLE>
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM--100% CONTINUATION--ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 3 1/2%
(Minimum Monthly Income per $1,000 of Annuity Value)
- ---------- ----------------------------------------------------------------------------------------------------------------------
MALE FEMALE AGE
----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.31 4.35 4.39 4.43 4.47 4.51 4.55 4.59 4.63 4.67 4.71
61 4.35 4.39 4.43 4.48 4.52 4.56 4.61 4.65 4.69 4.73 4.78
62 4.39 4.43 4.48 4.52 4.57 4.61 4.66 4.71 4.75 4.80 4.85
63 4.42 4.47 4.52 4.57 4.62 4.67 4.72 4.77 4.82 4.87 4.92
64 4.46 4.51 4.57 4.62 4.67 4.72 4.77 4.83 4.88 4.94 4.99
65 4.50 4.56 4.61 4.66 4.72 4.78 4.83 4.89 4.95 5.01 5.07
66 4.54 4.60 4.65 4.71 4.77 4.83 4.89 4.95 5.01 5.08 5.14
67 4.58 4.64 4.70 4.76 4.82 4.88 4.95 5.01 5.08 5.15 5.22
68 4.62 4.68 4.77 4.81 4.87 4.95 5.01 5.08 5.15 5.22 5.29
69 4.65 4.72 4.78 4.85 4.92 4.99 5.06 5.14 5.22 5.29 5.37
70 4.69 4.76 4.83 4.90 4.97 5.05 5.12 5.20 5.28 5.36 5.45
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
</TABLE>
No. 11939C NQ-I -----------
Page Eleven
<PAGE>
Page Twelve
-----------
ANNUITY BENEFITS (CONTINUED)
<TABLE>
<CAPTION>
VARIABLE ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM--100% CONTINUATION--ASSUMED BASE RATE
OF NET INVESTMENT RETURN OF 5%
(Minimum Monthly Income per $1,000 of Annuity Value)
- ---------- ----------------------------------------------------------------------------------------------------------------------
FEMALE AGE
MALE ----------------------------------------------------------------------------------------------------------------------
AGE 60 61 62 63 64 65 66 67 68 69 70
---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 5.19 5.23 5.27 5.31 5.34 5.39 5.42 5.46 5.50 5.54 5.58
61 5.23 5.27 5.31 5.35 5.39 5.43 5.47 5.52 5.56 5.60 5.64
62 5.27 5.31 5.35 5.39 5.44 5.48 5.53 5.57 5.62 5.67 5.71
63 5.31 5.35 5.39 5.44 5.49 5.53 5.58 5.63 5.68 5.73 5.78
64 5.34 5.39 5.44 5.48 5.53 5.59 5.64 5.69 5.74 5.79 5.85
65 5.38 5.43 5.48 5.53 5.58 5.64 5.69 5.75 5.80 5.86 5.92
66 5.42 5.47 5.52 5.58 5.63 5.69 5.75 5.81 5.87 5.93 5.99
67 5.45 5.51 5.56 5.62 5.68 5.74 5.80 5.87 5.93 6.00 6.06
68 5.49 5.55 5.61 5.67 5.73 5.80 5.86 5.93 6.00 6.06 6.14
69 5.53 5.59 5.65 5.71 5.78 5.85 5.92 5.99 6.06 6.13 6.21
70 5.56 5.63 5.69 5.76 5.83 5.90 5.97 6.05 6.13 6.21 6.29
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
</TABLE>
<TABLE>
<CAPTION>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY
FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
FIXED ANNUITY BENEFIT INVESTMENT RETURN IS
WITH 10 YEARS OF PAYMENTS -----------------------------------------------------
GUARANTEED 3 1/2% 5%
------------------------------- ------ --
MALES FEMALES MALES FEMALES MALES FEMALES
----- ------- ----- ------- ----- -------
<S> <C> <C> <C> <C> <C> <C>
60 5.77 5.06 5.43 4.80 6.36 5.70
61 5.89 5.16 5.57 4.90 6.50 5.81
62 6.02 5.28 5.72 5.01 6.65 5.91
63 6.16 5.40 5.88 5.13 6.81 6.03
64 6.29 5.52 6.05 5.25 6.97 6.15
65 6.44 5.66 6.23 5.39 7.16 6.28
66 6.59 5.80 6.43 5.54 7.35 6.43
67 6.74 5.94 6.64 5.70 7.56 6.58
68 6.90 6.10 6.87 5.87 7.79 6.76
69 7.06 6.26 7.11 6.06 8.03 6.95
70 7.23 6.43 7.38 6.27 8.30 7.15
</TABLE>
Equitable will notify the payee under a Variable Annuity Benefit of the number
of Annuity Units and the Average New Annuity Unit Value used in determining the
amount of each variable payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary.
If a commutation right under an Annuity Benefit is exercised, Equitable may
defer payment in accordance with Section 4.06.
PART IV - GENERAL PROVISIONS.
SECTION 4.01 CONTRACT. The Contract constitutes the entire agreement between the
parties and the provisions of the Contract alone will govern with respect to the
rights and obligations of Equitable. A copy of the application is incorporated
in and made a part of this Contract.
Nothing in the application referred to in Section 1.02 nor any modification,
amendment, or supplement to any such document will in any way be construed to
enlarge, change, vary or in any other way affect the obligations of Equitable as
expressly provided in the Contract.
The Contract may not be modified as to Equitable, nor may any of Equitable's
rights or requirements be waived, except in writing and by an authorized officer
of Equitable. The Contract may be changed by amendment or replacement upon
agreement between the Owner and Equitable without the consent of any other
person provided that such change does not reduce any Annuity Benefit provided
before such change and provided that no rights, privileges or benefits which
have accrued to the Participant under the Contract may be reduced or forfeited
except by the expressed consent of the Participant.
SECTION 4.02 STATUTORY COMPLIANCE. Equitable reserves the right to amend the
Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the Contract to reflect changes in the Code, or in
regulations or published rulings of the Internal Revenue Service so that the
Contract will continue to be an "annuity" as defined in Section 72 of the Code.
Any Annuity benefit, Cash Value or death benefit available under the Contract
shall not be less than the minimum benefits required by any statute of the state
in which the Contract is delivered.
SECTION 4.03 PARTICIPATION IN SURPLUS. The Contract and all other contracts in
the same class of contracts shall be combined for the purpose of ascertaining
the annual surplus of Equitable to be apportioned to said contracts as a
dividend and the portion of any such dividend that is to be allocated to the
Contract shall be determined by Equitable. The participation of this class of
contracts in annual surplus is, however, expected to be minimal. Any amount so
allocated to the Contract shall be payable as of January 1 of the calendar year
in which a dividend is apportioned and will be payable in cash and shall be
allocated by Equitable to the Fixed Income Account maintained hereunder for the
Participant.
No Annuity Benefit will enter into the determination of any surplus to be
apportioned to the Contract as a dividend.
SECTION 4.04 BENEFICIARY. The Participant, as of the Participation Date, is to
name a beneficiary entitled to receive any death benefit payable with respect to
the Participant pursuant to Section 2.09. The Participant may change such
beneficiary from time to time while Accounts for the Participant are being
maintained hereunder. Any such change will be made by written notice in a form
satisfactory to Equitable. A change will, upon receipt at Equitable's Processing
Office, take effect as of the time the written notice was signed, whether or not
the Participant is living on the date of receipt, but without further liability
as to any payment or other settlement made by Equitable before receipt of such
change.
No. 11939C NQ-I -----------
Page Twelve
<PAGE>
Page Thirteen
-------------
GENERAL PROVISIONS (CONTINUED)
Unless otherwise specified in the application, if the Participant has named two
or more persons as beneficiary, the beneficiary will be the named person or
persons who survive the Participant, and if more than one survive they will
share equally.
Any part of a death benefit payable with respect to the Participant pursuant to
Section 2.09 for which there is no named beneficiary living at the death of the
Participant will be payable in a single sum to the children of the Participant
who survive the Participant, in equal shares, or should none survive, then to
the Participant's executors or administrators.
If the Participant so elects in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on the form of annuity elected by the Participant, with respect to the
beneficiary, subject to Equitable's rules then in effect. If at the death of the
Participant there is no election in effect to apply the single sum death benefit
to provide an Annuity Benefit, the beneficiary may make such an election.
SECTION 4.05 FUTURE CONTRIBUTIONS. Equitable reserves the right at its sole
discretion to prohibit further Contributions under the Contract upon written
notice to the Participant.
SECTION 4.06 DEFERMENT. Payments by Equitable from the Participant's Fixed
Income Account pursuant to the provisions of Section 2.06, Sections 2.07 and
2.07A, and Section 2.09, or any commuted payments arising from a Fixed Annuity
Benefit pursuant to Section 3.05, may be deferred for up to six months after
receipt of a written request for such surrender or withdrawal, or receipt of due
proof of death of the Participant, respectively, or receipt of due documentation
for such commutation payment pursuant to Section 3.05. Interest at the current
Guaranteed Interest Rate for the Participant's Fixed Income Account will be
allowed on any such payment deferred for 30 days or more.
Except as provided in this Section, payments by Equitable from the Participant's
Stock Account, Balanced Account, Aggressive Stock Account or Money Market
Account pursuant to the provisions of Section 2.06, Sections 2.07 and 2.07A, and
Section 2.09, or any commuted payments arising from a Variable Annuity Benefit
pursuant to Section 3.05, will be made within seven days after receipt, at
Equitable's Processing Office, of a written request for such surrender or
withdrawal, or receipt of due proof of death of the Participant, respectively,
or receipt of due documentation for such commutation payment pursuant to Section
3.05.
During any period when (i) the sale of securities or the determination of the
New Accumulation Unit Value or the Average New Annuity Unit Value is not
reasonably practicable because an emergency, defined by the Securities and
Exchange Commission, exists, or the New York Stock Exchange is closed or trading
on such Exchange is restricted, or (ii) the Securities and Exchange Commission
may by order permit postponement for the protection of persons having interests
in the Separate Accounts, Equitable reserves the right:
(a) to defer determination of Cash Values or Annuity Values and payment of Cash
Values and Annuity Values, arising from an amount in the Participant's
Stock Account, Balanced Account, Aggressive Stock Account or Money Market
Account;
(b) to defer payment of any portion of the death benefit arising from an amount
in a Participant's Stock Account, Balanced Account, Aggressive Stock
Account or Money Market Account;
(c) to defer the payment of any Variable Annuity Benefit under the Contract or
the application of any such Benefit to provide for any other payment called
for by the Contract; or
(d) in the event of (a) above, to defer application of such amounts to provide
any Annuity Benefit permitted under the Contract.
SECTION 4.07 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Participant with a
notice showing as of a specified recent date (1) the Annuity Value of the Fixed
Income Account, (2) the total number of Accumulation Units credited to the Stock
Account, Balanced Account, Aggressive Stock Account and Money Market Account,
(3) the New Accumulation Unit Values, (4) the sum of the Cash Values of the
Fixed Income Account, Stock Account, Balanced Account, Aggressive Stock Account
and Money Market Account and (5) the amount of death benefit payable with
respect to the Participant. After the Retirement Date, Equitable will notify the
Participant of the number of Annuity Units and the Average New Annuity Unit
Value used in determining the amount of each Variable Annuity Benefit payment,
if any.
SECTION 4.08 AGE AND SEX. If the age or sex of the Participant has been
misstated, any benefits will be those which would have been purchased at the
correct age and sex. Any overpayments or underpayments made by Equitable will be
charged or credited with interest at the rate of 6% per year, and such interest
will be deducted from or added to benefits falling due thereafter.
No. 11939C NQ-I -------------
Page Thirteen
ESTELLA A. DEVIAN
Assistant Vice President
[EQUITABLE LOGO]
JAN 12 1990
Mr. Fredric L. Bodner, JD
Chief, Health and Life
Policy Bureau
Agency Building One
Nelson A. Rockefeller Plaza
Albany, New York 12257
Re: Minumum Distribution Endorsements for use with our Group Annuity Contracts
and Certificates
Dear Mr. Bodner:
We are filing herewith for your approval the following contract endorsements:
<TABLE>
<CAPTION>
For Use With Contract Description of
Endorsement No. Group Annuity Contract Approved On Tax Qualified Market
- -------------- ---------------------- ----------- ------------------------------
<S> <C> <C> <C>
PF17110CI 11929CI 2/29/80 IRA/SEP
PF17111CT 11930CT 2/29/80 TSA
PF17112CT-U 11930CT 2/29/80 TSA-University
PF17113CH 11931CH 2/29/80 Non-Corporate Keogh/HR10
PF17114CP 11932CP 11/24/86 Employee Deferred Compensation
PF17115C-C 11938C-C 3/09/87 Corporate Trusteed
PF17116C-C 11938C-C 3/09/87 Trusteed HR-10 Plans
</TABLE>
We are also filing for your approval the following certificate endorsements:
<TABLE>
<CAPTION>
For Use With
Group Annuity Certificate Description of
Endorsement No. Certificate Approved On Tax Qualified Market
- -------------- ----------------- ----------- ------------------------------
<S> <C> <C> <C>
PF17110I 11933I 4/19/82 IRA/SEP
PF17111T 11934T 4/19/82 TSA
PF17112T-U 11934T 4/19/82 TSA-University
PF17113H 11935H 4/19/82 Trusteed Non-Corporate Keogh/HR-10
PF17114P 11936P 4/19/82 Employee Deferred Compensation
PF17115C 11938C 3/09/87 Corporate Trusteed
PF17116C 11938C 3/09/87 Trusteed HR-10 Plan
</TABLE>
These endorsements permit partial distributions to comply with the minimum
distribution requirements of Internal Revenue Code 401(2)(9) even though these
distributions may be after the Participant has attained the Retirement Date
under the certificate.
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES Two Penn Plaza, New York, N.Y. 10121
<PAGE>
Mr. Bodner
- 2 -
If you have questions concerning these endorsements, please call me collect at
(212) 714-5301 or Manager Robert Heck at (212) 714-5247.
Sincerely,
/s/ Estella A. Devian
Estella A. Devian
Assistant Vice President
7263L
<PAGE>
ESTELLA A. DEVIAN
Assistant Vice President
[EQUITABLE LOGO]
DEC 28 1989
Mr. Fredric L. Bodner, JD
Chief, Health and Life
Policy Bureau
Agency Building One
Nelson A. Rockefeller Plaza
Albany, New York 12257
Re: Minumum Distribution Endorsements for use with our Group Annuity Contracts
and Certificates
Dear Mr. Bodner:
We are filing herewith for your approval the following contract endorsements:
<TABLE>
<CAPTION>
For Use With Contract Description of
Endorsement No. Group Annuity Contract Approved On Tax Qualified Market
- -------------- ---------------------- ----------- ------------------------------
<S> <C> <C> <C>
PF17110CI 11929CI 2/29/80 IRA/SEP
PF17111CT 11930CT 2/29/80 TSA
PF17112CT-U 11930CT 2/29/80 TSA-University
PF17113CH 11931CH 2/29/80 Non-Corporate Keogh/HR10
PF17114CP 11932CP 11/24/86 Employee Deferred Compensation
PF17115C-C 11938C-C 3/09/87 Corporate Trusteed
PF17116C-C 11938C-C 3/09/87 Trusteed HR-10 Plans
</TABLE>
We are also filing for your approval the following certificate endorsements:
<TABLE>
<CAPTION>
For Use With
Group Annuity Certificate Description of
Endorsement No. Certificate Approved On Tax Qualified Market
- -------------- ----------------- ----------- ------------------------------
<S> <C> <C> <C>
PF17110I 11933I 4/19/82 IRA/SEP
PF17111T 11934T 4/19/82 TSA
PF17112T-U 11934T 4/19/82 TSA-University
PF17113H 11935H 4/19/82 Trusteed Non-Corporate Keogh/HR-10
PF17114P 11936C 4/19/82 Employee Deferred Compensation
PF17115C 11938C 3/09/87 Corporate Trusteed
PF17116C 11938C 3/09/87 Trusteed HR-10 Plan
</TABLE>
These endorsements permit partial distributions to comply with the minimum
distribution requirements of Internal Revenue Code 401(2)(9) even though these
distributions may be after the Participant has attained the Retirement Date
under the certificate.
THE EQUITABLE LIFE ASSURANCE SOCIETY
OF THE UNITED STATES Two Penn Plaza, New York, N.Y. 10121
<PAGE>
Mr. Bodner
- 2 -
If you have questions concerning these endorsements, please call me collect at
(212) 714-5301 or Manager Robert Heck at (212) 714-5247.
Sincerely,
/s/ Estella A. Devian
Estella A. Devian
Assistant Vice President
7263L
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective November 1, 1989, Equitable hereby amends Group Annuity Contract No.
11929CI as follows:
1. A new section, SECTION 1.11A REQUIRED DISTRIBUTIONS, is added as follows:
SECTION 1.11A REQUIRED DISTRIBUTIONS. Notwithstanding any provisions in the
certificate to the contrary, distributions from the contract which are
intended to satisfy the minimum distribution requirements set forth in the
Code and the regulations must be equal to a least the amounts and must be
taken at least as frequently as specified in the Code and the regulations.
2. In SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT, the phrase "on
or before the Retirement Date" is deleted from the definition of
"Accumulation Unit."
3. SECTION 1.19 CODE is replaced by the following:
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of 1986,
as now or hereafter amended, or any corresponding provisions of prior or
subsequent United States revenue laws.
4. In SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the second paragraph
is replaced by the following:
Participation in the Separate Account under the Contract terminates on the
earliest of (i) election and commencement of annuity benefits pursuant to
Section 3.03, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
5. In SECTION 2.03 GUARANTEED INTEREST DIVISION, the third paragraph is replaced
by the following:
Participation in the Guaranteed Interest Division under the Contract
terminates on the earliest of (i) election and commencement of annuity
benefits pursuant to Section 3.03, (ii) the death of the Participant and
(iii) termination of participation pursuant to Section 2.06.
6. In SECTION 2.05 TRANSFERS AMONG DIVISIONS, the first sentence is changed to
the following:
The Participant, upon written request, may transfer all or part of the amount
the Participant has in a Division to one or more of the Divisions as follows:
(1) amounts in the Guaranteed Interest Division, Stock Division, Balanced
Division and Aggressive Stock Division may be transferred among such
Divisions; and (2) amounts in the Money Market Division may be transferred to
other Divisions.
7. In SECTION 2.06 TERMINATION OF PARTICIPATION, the following changes are made:
(a) The first sentence of the first paragraph is changed to the following:
Subject to any applicable restrictions under the terms of the Plan, the
Participant may elect by written notice to terminate participation under
the Contract.
(b) The phrase "Prior to a Participant's Retirement Date" is deleted from
the first sentence of the third paragraph.
8. In SECTION 2.07 PARTIAL WITHDRAWALS, the phrase "before such Participant's
Retirement Date" is deleted from the first paragraph.
9. SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE is replaced by the following:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year, if the Annuity Account Value on that date is less than
$10,000, Equitable will withdraw from the Divisions an annual administrative
charge equal to the lesser of $30 or 2% of the sum of (i) the Annuity Account
Value and (ii) any withdrawals pursuant to Section 2.07 during that
Participation Year. The charge will be allocated among the Divisions in
proportion to the amounts that the Participant has in the Divisions.
If the Annuity Account Value is less than $10,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section
3.03 or (b) the date of termination of participation under the Contract
pursuant to Section 2.06 or 2.09, Equitable will determine the portion of the
administrative charge applicable to the completed portion of the current
Participation Year and withdraw such amount in lieu of the annual
administrative charge described in this Section for the applicable part of
that Participation Year.
PF 17110CI
<PAGE>
10. In SECTION 2.09 DEATH BENEFIT, the following phrases are deleted from the
first paragraph: "and before such Participant's Retirement Date," and "at
any time prior to the Retirement Date."
11. In SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS, the following
changes are made:
(a) The first paragraph is replaced by the following:
As of a Participant's Retirement Date, provided such Participant is then
living, the Annuity Account Value shall be applied to provide the Normal
Form of Annuity Benefit, unless such Participant elects (i) to receive the
Cash Value of the certificate in a single sum, (ii) to apply the Annuity
Account Value or Cash Value, whichever is applicable pursuant to the first
paragraph of Section 3.04, to provide an Annuity Benefit on any other form
offered by Equitable, as elected by the Participant or (iii) to take partial
withdrawals in amounts and at times as required by the Code, pursuant to
Section 1.11A, subject to Equitable's rules then in effect and any other
applicable requirements under the Code.
(b) The phrase "before the Retirement Date" is deleted from the third
paragraph.
12. In SECTION 3.05 PAYMENT OF ANNUITY BENEFITS, the following changes are made:
(a) The first paragraph is deleted and the second paragraph is replaced by
the following:
A Participant's entire interest shall be distributed beginning not later
than April 1 of the year following the calendar year in which the
Participant attains age 70 years and six months. Distributions may be
made in such amounts as the Participant may request, provided such
requested amounts are at least equal to the minimum amounts required to
be distributed under the Code and provided further that such requested
distributions are in accordance with Equitable's rules in effect at the
time of each request.
(b) Item (ii) in the sixth paragraph is replaced by the following:
(ii) such distribution will begin no later than one year after the
Participant's death, unless the Participant's spouse is the designated
beneficiary, in which case distributions must begin no later than the
date on which the Participant would have attained age 70 years and six
months.
13. In SECTION 4.05 BENEFICIARY, the following sentence is added to the end of
the last paragraph:
Any such election must meet the minimum distribution requirements under the
Code, as described in Section 1.11A.
14. In SECTION 4.06 DISQUALIFICATION, the phrase "before the Retirement Date" is
deleted.
15. In SECTION 4.09 ANNUAL NOTICE, the phrase "up to and including the
Retirement Date" is deleted.
Agreed to by:
THE EQUITABLE LIFE ASSURANCE
UNITED STATES TRUST COMPANY SOCIETY OF THE UNITED STATES
By ___________________________________ By _________________________________
President
Title ________________________________ By _________________________________
Vice President and Secretary
Dated ________________________________ Date of Issue ______________________
At ___________________________________
PF 17110CI
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective November 1, 1989, Equitable hereby amends Group Annuity Contract No.
11930CT as follows:
1. In SECTION 1.11A RETIREMENT DATE, the third and fourth sentences of the
first paragraph are changed to the following:
Any election for such change must be made in writing by the Participant
and shall not take effect until received by Equitable at its Processing
Office. No Retirement Date shall be earlier than the Participant's 55th
birthday or later than the date specified in the Code.
2. SECTION 1.11B REQUIRED DISTRIBUTIONS is replaced by the following:
SECTION 1.11B REQUIRED DISTRIBUTIONS. Notwithstanding any provisions in
the certificate to the contrary, distributions from the contract which are
intended to satisfy the minimum distribution requirements set forth in the
Code and the regulations must be equal to at least the amounts and must be
taken at least as frequently as specified in the Code and the regulations.
For benefits accrued prior to January 1, 1987, distributions must commence
no later than the attainment of age 75.
3. In SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT, the phrase
"on or before the Retirement Date" is deleted from the definition of
"Accumulation Unit."
4. SECTION 1.19 CODE is replaced by the following:
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of
1986, as now or hereafter amended, or any corresponding provisions of
prior or subsequent United States revenue laws.
5. In SECTION 2.01 CONTRIBUTIONS, the phrase "or under a Plan of an Employer
described in clause (ii) of Section 1.01" is deleted from the first
sentence of the third paragraph.
6. In SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the second
paragraph is replaced by the following:
Participation in the Separate Account under the Contract terminates on the
earliest of (i) election and commencement of annuity benefits pursuant to
Section 3.03, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
7. In SECTION 2.03 GUARANTEED INTEREST DIVISION, the third paragraph is
replaced by the following:
Participation in the Guaranteed Interest Division under the Contract
terminates on the earliest of (i) election and commencement of annuity
benefits pursuant to Section 3.03, (ii) the death of the Participant and
(iii) termination of participation pursuant to Section 2.06.
8. In SECTION 2.05 TRANSFERS AMONG DIVISIONS, the first sentence is changed
to the following:
The Participant, upon written request, may transfer all or part of the
amount the Participant has in a Division to one or more of the Divisions
as follows: (1) amounts in the Guaranteed Interest Division, Stock
Division, Balanced Division and Aggressive Stock Division may be
transferred among such Divisions; and (2) amounts in the Money Market
Division may be transferred to other Divisions.
9. In SECTION 2.06 TERMINATION OF PARTICIPATION, the following changes are
made:
(a) The first sentence of the first paragraph is changed to the
following:
Subject to any applicable restrictions under the terms of the
Agreement or the Plan, the Participant may elect by written notice
to terminate Participation under the Contract.
(b) The phrase "Prior to a Participant's Retirement Date" is deleted
from the first sentence of the fourth paragraph.
PF 17111CT
<PAGE>
10. In SECTION 2.07 PARTIAL WITHDRAWALS, the phrase "before such Participant's
Retirement Date" is deleted from the first paragraph.
11. In SECTION 2.09 DEATH BENEFIT, the following phrases are deleted from the
first paragraph: "and before such Participant's Retirement Date" and "at
any time prior to the Retirement Date."
12. In SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS, the
following changes are made:
(a) The first paragraph is replaced by the following:
As of a Participant's Retirement Date, provided such Participant is
then living, the Annuity Account Value less any outstanding loan
shall be applied to provide the Normal Form of Annuity Benefit,
unless such Participant elects (i) to receive the Cash Value of the
certificate in a single sum, (ii) to apply the Annuity Account Value
less any outstanding loan or Cash Value, whichever is applicable
pursuant to the first paragraph of Section 3.04, to provide an
Annuity Benefit on any other form offered by Equitable, as elected
by the Participant or (iii) to take partial withdrawals in amounts
and at times as required by the Code, pursuant to Section 1.11B,
subject to Equitable's rules then in effect and any other applicable
requirements under the Code.
(b) The phrase "before the Retirement Date" is deleted from the third
paragraph.
(c) The phrase "any shorter period which meets the minimum distribution
rules under the Code, or" is added to the end of item (i) in the
fifth paragraph.
13. In SECTION 4.05 BENEFICIARY, the following sentence is added to the end of
the last paragraph:
Any such election must meet the minimum distribution requirements under
the Code, as described in Section 1.11B.
14. In SECTION 4.06 DISQUALIFICATION, the phrase "before the Retirement Date"
is deleted.
15. In SECTION 4.09 ANNUAL NOTICE, the phrase "up to and including the
Retirement Date" is deleted.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
By By
----------------------------------- -----------------------------------
President
Title By
--------------------------------- -----------------------------------
Vice President and Secretary
Dated Date of Issue
--------------------------------- ------------------------
At
------------------------------------
PF 17111CT
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
This endorsement is issued only to Participants covered under Plans issued in
conjunction with Optional Retirement or Tax-Sheltered Annuity Programs or Plans
adopted by Universities. To the extent that any of the provisions modified
herein have been previously modified in Rider PF 17041T-U, this endorsement
shall govern.
Effective November 1, 1989, Equitable hereby amends Group Annuity Contract No.
11930CT as follows:
1. In SECTION 1.11A RETIREMENT DATE, the third and fourth sentences of the
first paragraph are changed to the following:
Any election for such change must be made in writing by the Participant
and shall not take effect until received by Equitable at its Processing
Office. No Retirement Date shall be earlier than the Participant's 55th
birthday or later than the date specified in the Code.
2. SECTION 1.11B REQUIRED DISTRIBUTIONS is replaced by the following:
SECTION 1.11B REQUIRED DISTRIBUTIONS. Notwithstanding any provisions in
the certificate to the contrary, distributions from the contract which are
intended to satisfy the minimum distribution requirements set forth in the
Code and the regulations must be equal to at least the amounts and must be
taken at least as frequently as specified in the Code and the regulations.
For benefits accrued prior to January 1, 1987, distributions must commence
no later than the attainment of age 75.
3. In SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT, the phrase
"on or before the Retirement Date" is deleted from the definition of
"Accumulation Unit."
4. SECTION 1.19 CODE is replaced by the following:
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of
1986, as now or hereafter amended, or any corresponding provisions of
prior or subsequent United States revenue laws.
5. In SECTION 2.01 CONTRIBUTIONS, the phrase "or under a Plan of an Employer
described in clause (ii) of Section 1.01" is deleted from the first
sentence of the third paragraph.
6. In SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the second
paragraph is replaced by the following:
Participation in the Separate Account under the Contract terminates on the
earliest of (i) election and commencement of annuity benefits pursuant to
Section 3.03, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
7. In SECTION 2.03 GUARANTEED INTEREST DIVISION, the third paragraph is
replaced by the following:
Participation in the Guaranteed Interest Division under the Contract
terminates on the earliest of (i) election and commencement of annuity
benefits pursuant to Section 3.03, (ii) the death of the Participant and
(iii) termination of participation pursuant to Section 2.06.
8. In SECTION 2.05 TRANSFERS AMONG DIVISIONS, the first sentence is changed
to the following:
The Participant, upon written request, may transfer all or part of the
amount the Participant has in a Division to one or more of the Divisions
as follows: (1) amounts in the Guaranteed Interest Division, Stock
Division, Balanced Division and Aggressive Stock Division may be
transferred among such Divisions; and (2) amounts in the Money Market
Division may be transferred to other Divisions.
9. In SECTION 2.06 TERMINATION OF PARTICIPATION, the following changes are
made:
(a) The first sentence of the first paragraph is changed to the
following:
Subject to any applicable restrictions under the terms of the
Agreement or the Plan, the Participant may elect by written notice
to terminate Participation under the Contract.
(b) The phrase "Prior to a Participant's Retirement Date" is deleted
from the first sentence of the fourth paragraph.
PF 17112CT-U
<PAGE>
10. In SECTION 2.07 PARTIAL WITHDRAWALS, the first paragraph is replaced by
the following:
Subject to any applicable restrictions under the terms of the Agreement or
the Plan, whichever is applicable, or to applicable laws or regulations, a
Participant may elect by written notice to Equitable to make a partial
withdrawal from the Divisions.
11. In SECTION 2.09 DEATH BENEFIT, the following phrases are deleted from the
first paragraph: "and before such Participant's Retirement Date" and "at
any time prior to the Retirement Date."
12. In SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS, the
following changes are made:
(a) The first paragraph is replaced by the following:
As of a Participant's Retirement Date, provided such Participant is
then living, the Annuity Account Value less any outstanding loan
shall be applied to provide the Normal Form of Annuity Benefit,
unless such Participant elects (i) to receive the Cash Value of the
certificate in a single sum, if such election is permitted by the
Plan or Agreement, (ii) to receive not more than a specific
percentage or dollar amount of the Cash Value of the certificate in
a single sum (if permitted by the Pan or Agreement) and to apply the
remainder of the Cash Value to provide an Annuity Benefit on any
annuity form offered by Equitable, as elected by the Participant,
(iii) to apply the Annuity Account Value less any outstanding loan
or Cash Value, whichever is applicable pursuant to the first
paragraph of Section 3.04, to provide an Annuity Benefit on any
other from offered by Equitable and permitted by the Plan or
Agreement, as elected by the Participant or (iv) to take partial
withdrawals in amounts and at times as required by the Code,
pursuant to Section 1.11B (if permitted by the Plan or Agreement),
subject to Equitable's rules then in effect and any other applicable
requirements under the Code. A Participant may elect to divide the
applicable value between a partial sum payment and an annuity form,
if such election is in accordance with the Plan or Agreement.
(b) The phrase "before the Retirement Date" is deleted from the third
paragraph.
(c) The phrase "any shorter period which meets the minimum distribution
rules under the Code, or" is added to the end of item (i) in the
fifth paragraph.
13. In SECTION 4.05 BENEFICIARY, the following sentence is added to the end of
the last paragraph:
Any such election must meet the minimum distribution requirements under
the Code, as described in Section 1.11B.
14. In SECTION 4.06 DISQUALIFICATION, the phrase "before the Retirement Date"
is deleted.
15. In SECTION 4.09 ANNUAL NOTICE, the phrase "up to and including the
Retirement Date" is deleted.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
By By
----------------------------------- -----------------------------------
President
Title By
--------------------------------- -----------------------------------
Vice President and Secretary
Dated Date of Issue
--------------------------------- ------------------------
At
------------------------------------
PF 17112CT-U
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective November 1, 1989, Equitable hereby amends Group Annuity Contract No.
11931CH as follows:
1. SECTION 1.02 PLAN is replaced by the following:
SECTION 1.02A PLAN. The term "Plan" means the Non-Trusteed Money
Purchase/Profit Sharing Prototype Plan For Unincorporated Employers,
sponsored by Equitable, which has been determined by the Internal Revenue
Service to meet the requirements for qualification under Section 4.01(a)
of the Code.
2. A new section, SECTION 1.11A REQUIRED DISTRIBUTIONS, is added as follows:
SECTION 1.11A REQUIRED DISTRIBUTIONS. Notwithstanding any provisions in
the certificate to the contrary, distributions from the contract which are
intended to satisfy the minimum distribution requirements set forth in the
Code and the regulations must be equal to at least the amounts and must be
taken at least as frequently as specified in the Code and the regulations.
3. In SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS, the phrase
"on or before the Retirement Date" is deleted from the definition of
"Accumulation Unit."
4. SECTION 1.19 CODE is replaced by the following:
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of
1986, as now or hereafter amended, or any corresponding provisions of
prior or subsequent United States revenue laws.
5. In SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the second
paragraph is replaced by the following:
Participation in the Separate Account under the Contract terminates on the
earliest of (i) election and commencement of annuity benefits pursuant to
Section 3.03, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
6. In SECTION 2.03 GUARANTEED INTEREST DIVISION, the third paragraph is
replaced by the following:
Participation in the Guaranteed Interest Division under the Contract
terminates on the earliest of (i) election and commencement of annuity
benefits pursuant to Section 3.03, (ii) the death of the Participant and
(iii) termination of participation pursuant to Section 2.06.
7. In SECTION 2.05 TRANSFERS AMONG DIVISIONS, the first sentence is changed
to the following:
The Participant, upon written request, may transfer all or part of the
amount the Participant has in a Division to one or more of the Divisions
as follows: (1) amounts in the Guaranteed Interest Division, Stock
Division, Balanced Division and Aggressive Stock Division may be
transferred among such Divisions, and (2) amounts in the Money Market
Division may be transferred to other Divisions.
8. In SECTION 2.06 TERMINATION OF PARTICIPATION, the following changes are
made:
(a) The first sentence of the first paragraph is changed to the
following:
Subject to any applicable restrictions under the terms of the Plan,
the Participant may elect by written notice to terminate
participation under the Contract.
(b) The phrase "Prior to a Participant's Retirement Date" is deleted
from the first sentence of the third paragraph.
PF 17113CH
<PAGE>
9. In SECTION 2.07 PARTIAL WITHDRAWALS, the phrase, "before such
Participant's Retirement Date" is deleted from the first paragraph.
10. SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE is replaced by the following:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year, if the Annuity Account Value on that date is less than
$10,000, Equitable will withdraw from the Divisions an annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i)
the Annuity Account Value and (ii) any withdrawals pursuant to Section
2.07 during that Participation Year. The charge will be allocated among
the Divisions in proportion to the amounts that the Participant has in the
Divisions.
If the Annuity Account Value is less than $10,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section
3.03 or (b) the date of termination of participation under the Contract
pursuant to Section 2.06 or 2.09, Equitable will determine the portion of
the administrative charge applicable to the completed portion of the
current Participation Year and withdraw such amount in lieu of the
administrative charge described in this Section for the applicable part of
that Participation Year.
11. In SECTION 2.09 DEATH BENEFIT, the following phrases are deleted from the
first paragraph: "and before such Participant's Retirement Date," and "at
any time prior to the Retirement Date."
12. In SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS, the
following changes are made:
(a) The first paragraph is replaced by the following:
As of a Participant's Retirement Date, provided such Participant is
then living, the Annuity Account Value shall be applied to provide
the Normal Form of Annuity Benefit, unless such Participant elects
(i) to receive the Cash Value of the certificate in a single sum,
(ii) to apply the Annuity Account Value or Cash Value, whichever is
applicable pursuant to the first paragraph of Section 3.04, to
provide an Annuity Benefit on any other form offered by Equitable,
as elected by the Participant or (iii) to take partial withdrawals
in amounts and at times as required by the Code, pursuant to Section
1.11A, subject to Equitable's rules then in effect and any other
applicable requirements under the Code.
(b) The phrase "before the Retirement Date" is deleted from the third
paragraph.
13. In SECTION 4.05 BENEFICIARY, the following sentence is added to the end of
the last paragraph:
Any such election must meet the minimum distribution requirements under
the Code, as described in Section 1.11A.
14. In SECTION 4.06 DISQUALIFICATION, the phrase "before the Retirement Date"
is deleted.
15. In SECTION 4.09 ANNUAL NOTICE, the phrase "up to and including the
Retirement Date" is deleted.
<TABLE>
<CAPTION>
Agreed to by:
THE EQUITABLE LIFE ASSURANCE
UNITED STATES TRUST COMPANY SOCIETY OF THE UNITED STATES
<S> <C>
By By
-------------------------------------------- ---------------------------------------------
President
Title By
----------------------------------------- ---------------------------------------------
Vice President and Secretary
Dated Date of Issue
----------------------------------------- ----------------------------------
At
--------------------------------------------
</TABLE>
PF 17113CH
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective November 1, 1989, Equitable hereby amends Group Annuity Contract No.
11932CP as follows:
1. A new section, SECTION 1.11A REQUIRED DISTRIBUTIONS, is added as follows:
SECTION 1.11A REQUIRED DISTRIBUTIONS, Notwithstanding any provisions in
the certificate to the contrary, distributions from the contract which are
intended to satisfy the minimum distribution requirements set forth in the
Code and the regulations must be equal to at least the amounts and must be
taken at least as frequently as specified in the Code and the regulations.
2. In SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT, the phrase
"on or before the Retirement Date" is deleted from the definition of
"Accumulation Unit."
3. SECTION 1.19 CODE is replaced by the following:
SECTION 1.19 CODE, The term "Code" means the Internal Revenue Code of
1986, as now or hereafter amended, or any corresponding provisions of
prior or subsequent United States revenue laws.
4. In SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the second
paragraph is replaced by the following:
Participation in the Separate Account under the Contract terminates on the
earliest of (i) election and commencement of annuity benefits pursuant to
Section 3.03, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
6. In SECTION 2.05 TRANSFERS AMONG DIVISIONS, the first sentence is changed
to the following:
The Participant, upon written request, may transfer all or part of the
amount the Participant has in a Division to one or more of the Divisions
as follows: (1) amounts in the Guaranteed Interest Division, Stock
Division, Balanced Division and Aggressive Stock Division may be
transferred among such Divisions; and (2) amounts in the Money Market
Division may be transferred to other Divisions.
7. In SECTION 2.06 TERMINATION OF PARTICIPATION, the following changes are
made:
(a) The first sentence of the first paragraph is changed to the following:
Subject to any applicable restrictions under the terms of the Plan, the
Participant may elect by written notice to terminate participation under
the Contract.
(b) The phrase "Prior to a Participant's Retirement Date" is deleted from
the first sentence of the third paragraph.
8. In SECTION 2.07 PARTIAL WITHDRAWALS, the phrase "before such Participant's
Retirement Date" is deleted from the first paragraph.
PF17114CP
<PAGE>
9. In SECTION 2.09 DEATH BENEFIT, the following phrases are deleted from the
first paragraph: "and before such Participant's Retirement Date" and "at
any time prior to the Retirement Date."
10. In SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS, the
following changes are made:
(a) The first paragraph is replaced by the following:
As of a Participant's Retirement Date, provided such Participant is then
living, the Annuity Account Value shall be applied to provide the Normal
Form of Annuity Benefit, unless such Participant elects (i) to receive the
Cash Value of the certificate in a single sum, (ii) to apply the Annuity
Account Value or Cash Value, whichever is applicable pursuant to the first
paragraph of Section 3.04, to provide an Annuity Benefit on any other form
offered by Equitable, as elected by the Participant or (iii) to take
partial withdrawals in amounts and at times as required by the Code,
pursuant to Section 1.11A, subject to Equitable's rules then in effect and
any other applicable requirements under the Code.
(b) The phrase "before the Retirement Date" is deleted from the third
paragraph.
11. In SECTION 4.05 BENEFICIARY, the following sentence is added to the end of
the last paragraph:
Any such election must meet the minimum distribution requirements under
the Code, as described in Section 1.11A.
12. In SECITON 4.06 DISQUALIFICATION, the phrase "before the Retirement Date"
is deleted.
13. In SECTION 4.09 ANNUAL NOTICE, the phrase "up to and including the
Retirement Date" is deleted.
Agreed to by:
THE EQUITABLE LIFE ASSURANCE
UNITED STATES TRUST COMPANY SOCIETY OF THE UNITED STATES
By_____________________________ By_____________________________
President
Title__________________________ By_____________________________
Vice President and Secretary
Dated__________________________ Date of Issue__________________
At_____________________________
PF17114CP
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective November 1, 1989, Equitable hereby amends Group Annuity Contract No.
11938C-C as follows:
1. A new section, SECTION 1.11A REQUIRED DISTRIBUTIONS, is added as follows:
SECTION 1.11A REQUIRED DISTRIBUTIONS. Notwithstanding any provisions in the
certificate to the contrary, distributions from the contract which are
intended to satisfy the minimum distribution requirements set forth in the
Code and the regulations must be equal to at least the amounts and must be
taken at least as frequently as specified in the Code and the regulations.
2. In SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT, the phrase "on
or before the Retirement Date" is deleted from the definition of
"Accumulation Unit."
3. In SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the second paragraph
is replaced by the following:
Participation in the Separate Account under the Contract terminates on the
earliest of (i) election and commencement of annuity benefits pursuant to
Section 3.03, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
4. In SECTION 2.03 GUARANTEED INTEREST DIVISION, the third paragraph is replaced
by the following:
Participation in the Guaranteed Interest Division under the Contract
terminates on the earliest of (i) election and commencement of annuity
benefits pursuant to Section 3.03, (ii) the death of the Participant and
(iii) termination of participation pursuant to Section 2.06.
5. In SECTION 2.05 TRANSFERS AMONG DIVISIONS, the phrase "At any time before a
Participant's Retirement Date" is deleted from the first paragraph.
6. In SECTION 2.06 TERMINATION OF PARTICIPATION, the following changes are made:
(a) The first sentence of the first paragraph is changed to the following:
Subject to any applicable restrictions under the terms of the Plan, the
Participant may elect by written notice to terminate participation under the
Contract.
(b) The phrase "Prior to a Participant's Retirement Date" is deleted from the
first sentence of the third paragraph.
7. In SECTION 2.07 PARTIAL WITHDRAWALS, the phrase "before such Participant's
Retirement Date" is deleted from the first paragraph.
8. In SECTION 2.09 DEATH BENEFIT, the phrase "and before such Participant's
Retirement Date" is deleted from the first paragraph and the phrase "at any
time prior to the Retirement Date" is deleted from the sixth paragraph.
9. In SECTION 2.09 DEATH BENEFIT, the following sentence is added to the end of
the third paragraph and the end of the fourth paragraph:
Any election for an Annuity Benefit must meet the minimum distribution
requirements under the Code.
PF 17115C-C
<PAGE>
10. In SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS, the following
changes are made:
(a) The first paragraph is replaced by the following:
As of a Participant's Retirement Date, provided such Participant is then
living, the Annuity Account Value less any outstanding loan shall be applied
to provide the Normal Form of Annuity Benefit, unless such Participant
elects (i) to receive the Cash Value of the certificate in a single sum,
(ii) to apply the Annuity Account Value less any outstanding loan or Cash
Value, whichever is applicable pursuant to the first paragraph of Section
3.04, to provide an Annuity Benefit on any other form offered by Equitable,
as elected by the Participant or (iii) to take partial withdrawals in
amounts and at times as required by the Code, pursuant to Section 1.11A,
subject to Equitable's rules then in effect and any other applicable
requirements under the Code.
(b) The phrase "before the Retirement Date" is deleted from the third
paragraph.
(c) The phrase "any shorter period which meets the minimum distribution
rules under the Code, or" is added to the end of item (i) in the fifth
paragraph.
11. In SECTION 4.06 DISQUALIFICATION, the phrase "before the Retirement Date" is
deleted.
12. In SECTION 4.09 ANNUAL NOTICE, the phrase "up to and including the
Retirement Date" is deleted.
Agreed to by:
THE EQUITABLE LIFE ASSURANCE
UNITED STATES TRUST COMPANY SOCIETY OF THE UNITED STATES
By___________________________________ By __________________________________
President
Title _______________________________ By __________________________________
Vice President and Secretary
Dated _______________________________ Date of Issue _______________________
At __________________________________
PF 17115C-C
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
For Participants in HR-10 Plans, effective November 1, 1989, we have amended
Group Annuity Contract No. 11938C-C as follows:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE is replaced by the following:
As of the last day of each Participation Year, if the Annuity Account Value on
that date is less than $10,000, Equitable will withdraw from the Divisions an
annual administrative charge equal to the lesser of $30 or 2% of the sum of (i)
the Annuity Account Value and (ii) any withdrawals pursuant to Section 2.07
during that Participation Year. The charge will be allocated among the Divisions
in proportion to the amounts that the Participant has in the Divisions. For this
purpose, any loan reserve account will be deemed to be included within the
Guaranteed Interest Division. The portion of the charge attributable to the
Guaranteed Interest Division and any loan reserve account will be first
withdrawn from the Guaranteed Interest Division and then, if the amount a
Participant has in the Guaranteed Interest Division is not sufficient, the
remaining allocation will be withdrawn from the portion of the loan reserve
account that earns interest at the most current rate credited to the Guaranteed
Interest Division.
If the Annuity Account Value is less than $10,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of participation under the Contract pursuant to
Section 2.06 or 2.09, Equitable will determine the portion of the administrative
charge applicable to the completed portion of the current Participation Year and
withdraw such amount in lieu of the annual administrative charge described in
this Section for the applicable part of that Participation Year.
Agreed to by:
THE EQUITABLE LIFE ASSURANCE
UNITED STATES TRUST COMPANY SOCIETY OF THE UNITED STATES
By_________________________ By____________________________
President
Title______________________ By____________________________
Vice President and Secretary
Dated______________________ Date of Issue_________________
At_________________________
PF 17116C-C
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective November 1, 1989, Equitable hereby amends your certificate issued
under Group Annuity Contract No. 11929CI as follows:
1. A new section, SECTION 1.11A REQUIRED DISTRIBUTIONS, is added as follows:
SECTION 1.11A REQUIRED DISTRIBUTIONS. Notwithstanding any provisions in the
certificate to the contrary, distributions from the contract which are
intended to satisfy the minimum distribution requirements set forth in the
Code and the regulations must be equal to at least the amounts and must be
taken at least as frequently as specified in the Code and the regulations.
2. In SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT, the phrase "on
or before the Retirement Date" is deleted from the definition of
"Accumulation Unit."
3. SECTION 1.19 CODE is replaced by the following:
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of 1986,
as now or hereafter amended, or any corresponding provisions of prior or
subsequent United States revenue laws.
4. In SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the second paragraph
is replaced by the following:
Participation in the Separate Account under the Contract terminates on the
earliest of (i) election and commencement of annuity benefits pursuant to
Section 3.03, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
5. In SECTION 2.03 GUARANTEED INTEREST DIVISION, the third paragraph is replaced
by the following:
Participation in the Guaranteed Interest Division under the Contract
terminates on the earliest of (i) election and commencement of annuity
benefits pursuant to Section 3.03, (ii) the death of the Participant and
(iii) termination of participation pursuant to Section 2.06.
6. In SECTION 2.05 TRANSFERS AMONG DIVISIONS, the first sentence is changed to
the following:
The Participant, upon written request, may transfer all or part of the amount
the Participant has in a Division to one or more of the Divisions as follows:
(1) amounts in the Guaranteed Interest Division, Stock Division, Balanced
Division and Aggressive Stock Division may be transferred among such
Divisions; and (2) amounts in the Money Market Division may be transferred to
other Divisions.
7. In SECTION 2.06 TERMINATION OF PARTICIPATION, the following changes are made:
(a) The first sentence of the first paragraph is changed to the following:
Subject to any applicable restrictions under the terms of the Plan, the
Participant may elect by written notice to terminate participation under the
Contract.
(b) The phrase "Prior to a Participant's Retirement Date" is deleted from
the first sentence of the third paragraph.
8. In SECTION 2.07 PARTIAL WITHDRAWALS, the phrase "before such Participant's
Retirement Date" is deleted from the first paragraph.
9. SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE is replaced by the following:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year, if the Annuity Account Value on that date is less than
$10,000, Equitable will withdraw from the Divisions an annual administrative
charge equal to the lesser of $30 or 2% of the sum of (i) the Annuity Account
Value and (ii) any withdrawals pursuant to Section 2.07 during that
Participation Year. The charge will be allocated among the Divisions in
proportion to the amounts that the Participant has in the Divisions.
If the Annuity Account Value is less than $10,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section
3.03 or (b) the date of termination of participation under the Contract
pursuant to Section 2.06 or 2.09, Equitable will determine the portion of the
administrative charge applicable to the completed portion of the current
Participation Year and withdraw such amount in lieu of the annual
administrative charge described in this Section for the applicable part of
that Participation Year.
PF 17110I
<PAGE>
10. In SECTION 2.09 DEATH BENEFIT, the following phrases are deleted from the
first paragraph: "and before such Participant's Retirement Date," and "at
any time prior to the Retirement Date."
11. In SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS, the following
changes are made:
(a) The first paragraph is replaced by the following:
As of a Participant's Retirement Date, provided such Participant is then
living, the Annuity Account Value shall be applied to provide the Normal
Form of Annuity Benefit, unless such Participant elects (i) to receive the
Cash Value of the certificate in a single sum, (ii) to apply the Annuity
Account Value or Cash Value, whichever is applicable pursuant to the first
paragraph of Section 3.04, to provide an Annuity Benefit on any other form
offered by Equitable, as elected by the Participant or (iii) to take partial
withdrawals in amounts and at times as required by the Code, pursuant to
Section 1.11A, subject to Equitable's rules then in effect and any other
applicable requirements under the Code.
(b) The phrase "before the Retirement Date" is deleted from the third
paragraph.
12. In SECTION 3.05 PAYMENT OF ANNUITY BENEFITS, the following changes are made:
(a) The first paragraph is deleted and the second paragraph is replaced by
the following:
A Participant's entire interest shall be distributed beginning not later
than April 1 of the year following the calendar year in which the
Participant attains age 70 years and six months. Distributions may be made
in such amounts as the participant may request, provided such requested
amounts are at least equal to the minimum amounts required to be distributed
under the Code and provided further that such requested distributions are in
accordance with Equitable's rules in effect at the time of each request.
(b) Item (ii) in the sixth paragraph is replaced by the following:
(ii) such distribution will begin no later than one year after the
Participant's death, unless the Participant's spouse is the designated
beneficiary, in which case distributions must begin no later than the date
on which the Participant would have attained age 70 years and six months.
13. In SECTION 4.05 BENEFICIARY, the following sentence is added to the end of
the last paragraph:
Any such election must meet the minimum distribution requirements under the
Code, as described in Section 1.11A.
14. In SECTION 4.06 DISQUALIFICATION, the phrase "before the Retirement Date" is
deleted.
15. In SECTION 4.09 ANNUAL NOTICE, the phrase "up to and including the
Retirement Date" is deleted.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17110I
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective November 1, 1989, Equitable hereby amends your certificate issued
under Group Annuity Contract No. 11930CT as follows:
1. In SECTION 1.11A RETIREMENT DATE, the third and fourth sentences of the
first paragraph are changed to the following:
Any election for such change must be made in writing by the Participant and
shall not take effect until received by Equitable at its Processing Office.
No Retirement Date shall be earlier than the Participant's 55th birthday or
later than the date specified in the Code.
2. SECTION 1.11B REQUIRED DISTRIBUTIONS is replaced by the following:
SECTION 1.11B REQUIRED DISTRIBUTIONS. Notwithstanding any provisions in the
certificate to the contrary, distributions from the contract which are
intended to satisfy the minimum distribution requirements set forth in the
Code and the regulations must be equal to at least the amounts and must be
taken at least as frequently as specified in the Code and the regulations.
For benefits accrued prior to January 1, 1987, distributions must commence
no later than the attainment of age 75.
3. In SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT, the phrase
"on or before the Retirement Date" is deleted from the definition of
"Accumulation Unit."
4. SECTION 1.19 CODE is replaced by the following:
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of 1986,
as now or hereafter amended, or any corresponding provisions of prior or
subsequent United States revenue laws.
5. In SECTION 2.01 CONTRIBUTIONS, the phrase "or under a Plan of an Employer
described in clause (ii) of Section 1.01" is deleted from the first
sentence of the third paragraph.
6. In SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the second paragraph
is replaced by the following:
Participation in the Separate Account under the Contract terminates on the
earliest of (i) election and commencement of annuity benefits pursuant to
Section 3.03, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
7. In SECTION 2.03 GUARANTEED INTEREST DIVISION, the third paragraph is
replaced by the following:
Participation in the Guaranteed Interest Division under the Contract
terminates on the earliest of (i) election and commencement of annuity
benefits pursuant to Section 3.03, (ii) the death of the Participant and
(iii) termination of participation pursuant to Section 2.06.
8. In SECTION 2.05 TRANSFERS AMONG DIVISIONS, the first sentence is changed to
the following:
The Participant, upon written request, may transfer all or part of the
amount the Participant has in a Division to one or more of the Divisions as
follows: (1) amounts in the Guaranteed Interest Division, Stock Division,
Balanced Division and Aggressive Stock Division may be transferred among
such Divisions; and (2) amounts in the Money Market Division may be
transferred to other Divisions.
9. In SECTION 2.06 TERMINATION OF PARTICIPATION, the following changes are
made:
(a) The first sentence of the first paragraph is changed to the following:
Subject to any applicable restrictions under the terms of the
Agreement or the Plan, the Participant may elect by written notice to
terminate Participation under the Contract.
(b) The Phrase "Prior to a Participant's Retirement Date" is deleted from
the first sentence of the fourth paragraph.
PF 17111T
<PAGE>
10. In SECTION 2.07 PARTIAL WITHDRAWALS, the phrase "before such Participant's
Retirement Date" is deleted from the first paragraph.
11. In SECTION 2.09 DEATH BENEFIT, the following phrases are deleted from the
first paragraph: "and before such Participant's Retirement Date" and "at
any time prior to the Retirement Date."
12. In SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS, the
following changes are made:
(a) The first paragraph is replaced by the following:
As of a Participant's Retirement Date, provided such Participant is
then living, the Annuity Account Value less any outstanding loan shall
be applied to provide the Normal Form of Annuity Benefit, unless such
Participant elects (i) to receive the Cash Value of the certificate in
a single sum, (ii) to apply the Annuity Account Value less any
outstanding loan or Cash Value, whichever is applicable pursuant to
the first paragraph of Section 3.04, to provide an Annuity Benefit on
any other form offered by Equitable, as elected by the Participant or
(iii) to take partial withdrawals in amounts and at times as required
by the Code, pursuant to Section 1.11B, subject to Equitable's rules
then in effect and any other applicable requirements under the Code.
(b) The phrase "before the Retirement Date" is deleted from the third
paragraph.
(c) The phrase "any shorter period which meets the minimum distribution
rules under the Code, or" is added to the end of item (i) in the fifth
paragraph.
13. In SECTION 4.05 BENEFICIARY, the following sentence is added to the end of
the last paragraph:
Any such election must meet the minimum distribution requirements under the
Code, as described in Section 1.11B.
14. In SECTION 4.06 DISQUALIFICATION, the phrase "before the Retirement Date"
is deleted.
15. In SECTION 4.09 ANNUAL NOTICE, the phrase "up to and including the
Retirement Date" is deleted.
SPECIMEN Vice President SPECIMEN President
and Secretary
PF 17111T
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
This endorsement is issued only to Participants covered under Plans issued in
conjunction with Optional Retirement or Tax-Sheltered Annuity Programs or Plans
adopted by Universities. To the extent that any of the provisions modified
herein have been previously modified in Rider PF 17041T-U, this endorsement
shall govern.
Effective November 1, 1989, Equitable hereby amends your certificate issued
under Group Annuity Contract No. 11930CT as follows:
1. In SECTION 1.11A RETIREMENT DATE, the third and fourth sentences of the first
paragraph are changed to the following:
Any election for such change must be made in writing by the Participant and
shall not take effect until received by Equitable at its Processing Office.
No Retirement Date shall be earlier than the Participant's 55th birthday or
later than the date specified in the Code.
2. SECTION 1.11B REQUIRED DISTRIBUTIONS is replaced by the following:
SECTION 1.11B REQUIRED DISTRIBUTIONS. Notwithstanding any provisions in the
certificate to the contrary, distributions from the contract which are
intended to satisfy the minimum distribution requirements set forth in the
Code and the regulations must be equal to at least the amounts and must be
taken at least as frequently as specified in the Code and the regulations.
For benefits accrued prior to January 1, 1987, distributions must commence no
later than the attainment of age 75.
3. In SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT, the phrase "on
or before the Retirement Date" is deleted from the definition of
"Accumulation Unit."
4. SECTION 1.19 CODE is replaced by the following:
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of 1986,
as now or hereafter amended, or any corresponding provisions of prior or
subsequent United States revenue laws.
5. In SECTION 2.01 CONTRIBUTIONS, the phrase "or under a Plan of an Employer
described in clause (ii) of Section 1.01" is deleted from the first sentence
of the third paragraph.
6. In SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the second paragraph
is replaced by the following:
Participation in the Separate Account under the Contract terminates on the
earliest of (i) election and commencement of annuity benefits pursuant to
Section 3.03, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
7. In SECTION 2.03 GUARANTEED INTEREST DIVISION, the third paragraph is replaced
by the following:
Participation in the Guaranteed Interest Division under the Contract
terminates on the earliest of (i) election and commencement of annuity
benefits pursuant to Section 3.03, (ii) the death of the participant and
(iii) termination of participation pursuant to Section 2.06.
8. In SECTION 2.05 TRANSFERS AMONG DIVISIONS, the first sentence is changed to
the following:
The Participant, upon written request, may transfer all or part of the amount
the Participant has in a Division to one or more of the Divisions as follows:
(1) amounts in the Guaranteed Interest Division, Stock Division, Balanced
Division and Aggressive Stock Division may be transferred among such
Divisions; and (2) amounts in the Money Market Division may be transferred to
other Divisions.
9. In SECTION 2.06 TERMINATION OF PARTICIPATION, the following changes are made:
(a) The first sentence of the first paragraph is changed to the following:
Subject to any applicable restrictions under the terms of the Agreement
or the Plan, the Participant may elect by written notice to terminate
Participation under the Contract.
(b) The phrase "Prior to a Participant's Retirement Date" is deleted from
the first sentence of the fourth paragraph.
PF 17112T-U
<PAGE>
10. In SECTION 2.07 PARTIAL WITHDRAWALS, the first paragraph is replaced by the
following:
Subject to any applicable restrictions under the terms of the Agreement or
the Plan, whichever is applicable, or to applicable laws or regulations, a
Participant may elect by written notice to Equitable to make a partial
withdrawal from the Divisions.
11. In SECTION 2.09 DEATH BENEFIT, the following phrases are deleted from the
first paragraph: "and before such Participant's Retirement Date," and "at
any time prior to the Retirement Date."
12. In SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS, the
following changes are made:
(a) The first paragraph is replaced by the following:
As of a Participant's Retirement Date, provided such Participant is then
living, the Annuity Account Value less any outstanding loan shall be
applied to provide the Normal Form of Annuity Benefit, unless such
Participant elects (i) to receive the Cash Value of the certificate in a
single sum, if such election is permitted by the Plan or Agreement, (ii) to
receive not more than a specific percentage or dollar amount of the Cash
Value of the certificate in a single sum (if permitted by the Plan or
Agreement) and to apply the remainder of the Cash Value to provide an
Annuity Benefit on any annuity form offered by Equitable, as elected by the
Participant, (iii) to apply the Annuity Account Value less any outstanding
loan or Cash Value, whichever is applicable pursuant to the first paragraph
of Section 3.04, to provide an Annuity Benefit on any other form offered by
Equitable and permitted by the Plan or Agreement, as elected by the
Participant or (iv) to take partial withdrawals in amounts and at times as
required by the Code, pursuant to Section 1.11B (if permitted by the Plan
or Agreement), subject to Equitable's rules then in effect and any other
applicable requirements under the Code. A Participant may elect to divide
the applicable value between a partial sum payment and an annuity form, if
such election is in accordance with the Plan or Agreement.
(b) The phrase "before the Retirement Date" is deleted from the third
paragraph.
(c) the phrase "any shorter period which meets the minimum distribution
rules under the Code, or" is added to the end of item (i) in the fifth
paragraph.
13. In SECTION 4.05 BENEFICIARY, the following sentence is added to the end of
the last paragraph:
Any such election must meet the minimum distribution requirements under the
Code, as described in Section 1.11B.
14. In SECTION 4.06 DISQUALIFICATION, the phrase "before the Retirement Date"
is deleted.
15. In SECTION 4.09 ANNUAL NOTICE, the phrase "up to and including the
Retirement Date" is deleted.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17112T-U
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective November 1, 1989, Equitable hereby amends your certificate issued
under Group Annuity Contract No. 11931CH as follows:
1. SECTION 1.02 PLAN is replaced by the following:
SECTION 1.02A PLAN. The term "Plan" means the Non-Trusted Money
Purchase/Profit Sharing Prototype Plan For Unincorporated Employers,
sponsored by Equitable, which has been determined by the Internal Revenue
Service to meet the requirements for qualification under Section 401(a) of
the Code.
2. A new section, SECTION 1.11A REQUIRED DISTRIBUTIONS, is added as follows:
SECTION 1.11A REQUIRED DISTRIBUTIONS. Notwithstanding any provisions in the
certificate to the contrary, distributions from the contract which are
intended to satisfy the minimum distribution requirements set forth in the
Code and the regulations must be equal to at least the amounts and must be
taken at least as frequently as specified in the Code and the regulations.
3. In SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNTS, the phrase
"on or before the Retirement Date" is deleted from the definition of
"Accumulation Unit."
4. SECTION 1.19 CODE is replaced by the following:
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of 1986,
as now or hereafter amended, or any corresponding provisions of prior or
subsequent United States revenue laws.
5. In SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the second paragraph
is replaced by the following:
Participation in the Separate Account under the Contract terminates on the
earliest of (i) election and commencement of annuity benefits pursuant to
Section 3.03, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
6. In SECTION 2.03 GUARANTEED INTEREST DIVISION, the third paragraph is
replaced by the following:
Participation in the Guaranteed Interest Division under the Contract
terminates on the earliest of (i) election and commencement of annuity
benefits pursuant to Section 3.03, (ii) the death of the Participant and
(iii) termination of participation pursuant to Section 2.06.
7. In SECTION 2.05 TRANSFERS AMONG DIVISIONS, the first sentence is changed to
the following:
The Participant, upon written request, may transfer all or part of the
amount the Participant has in a Division to one or more of the Divisions as
follows: (1) amounts in the Guaranteed Interest Division, Stock Division,
Balanced Division and Aggressive Stock Division may be transferred among
such Divisions; and (2) amounts in the Money Market Division may be
transferred to other Divisions.
8. In SECTION 2.06 TERMINATION OF PARTICIPATION, the following changes are
made:
(a) The first sentence of the first paragraph is changed to the following:
Subject to any applicable restrictions under the terms of the Plan,
the Participant may elect by written notice to terminate participation
under the Contract.
(b) The phrase "Prior to a Participant's Retirement Date" is deleted from
the first sentence of the third paragraph.
PF 17113H
<PAGE>
9. In SECTION 2.07 PARTIAL WITHDRAWALS, the phrase "before such Participant's
Retirement Date" is deleted from the first paragraph.
10. SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE is replaced by the following:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each
Participation Year, if the Annuity Account Value on that date is less than
$10,000, Equitable will withdraw from the Divisions an annual
administrative charge equal to the lesser of $30 or 2% of the sum of (i)
the Annuity Account Value and (ii) any withdrawals pursuant to Section 2.07
during that Participation Year. The charge will be allocated among the
Divisions in proportion to the amounts that the Participant has in the
Divisions.
If the Annuity Account Value is less than $10,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section
3.03 or (b) the date of termination of participation under the Contract
pursuant to Section 2.06 or 2.09, Equitable will determine the portion of
the administrative charge applicable to the completed portion of the
current Participation Year and withdraw such amount in lieu of the annual
administrative charge described in this Section for the applicable part of
that Participation Year.
11. In SECTION 2.09 DEATH BENEFIT, the following phrases are deleted from the
first paragraph: "and before such Participant's Retirement Date," and "at
any time prior to the Retirement Date."
12. In SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS, the
following changes are made:
(a) The first paragraph is replaced by the following:
As of a Participant's Retirement Date, provided such Participant is then
living, the Annuity Account Value shall be applied to provide the Normal
Form of Annuity Benefit, unless such Participant elects to (i) to receive
the Cash Value of the certificate in a single sum, (ii) to apply the
Annuity Account Value or Cash Value, whichever is applicable pursuant to
the first paragraph of Section 3.04, to provide an Annuity Benefit on any
other form offered by Equitable, as elected by the Participant or (iii) to
take partial withdrawals in amounts and at times as required by the Code,
pursuant to Section 1.11A, subject to Equitable's rules then in effect and
any other applicable requirements under the Code.
(b) The phrase "before the Retirement Date" is deleted from the third
paragraph.
13. In SECTION 4.05 BENEFICIARY, the following sentence is added to the end of
the last paragraph:
Any such election must meet the minimum distribution requirements under the
Code, as described in Section 1.11 A.
14. In SECTION 4.06 DISQUALIFICATION, the phrase "before the Retirement Date"
is deleted.
15. In SECTION 4.09 ANNUAL NOTICE, the phrase "up to and including the
Retirement Date" is deleted.
/s/ Pauline Sherman /s/ Edward D. Miller
Pauline Sherman, Vice President, Edward D. Miller, President and
Secretary and Associate General Counsel Chief Executive Officer
PF 17113H
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective November 1, 1989, Equitable hereby amends your certificate issued
under Group Annuity Contract No. 11938CP as follows:
1. A new section, SECTION 1.11A REQUIRED DISTRIBUTIONS, is added as follows:
SECTION 1.11A REQUIRED DISTRIBUTIONS. Notwithstanding any provisions in the
certificate to the contrary, distributions from the contract which are
intended to satisfy the minimum distribution requirements set forth in the
Code and the regulations must be equal to at least the amounts and must be
taken at least as frequently as specified in the Code and the regulations.
2. In SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT, the phrase
"on or before the Retirement Date" is deleted from the definition of
"Accumulation Unit."
3. SECTION 1.19 CODE is replaced by the following:
SECTION 1.19 CODE. The term "Code" means the Internal Revenue Code of 1986,
as now or hereafter amended, or any corresponding provisions of prior or
subsequent United States revenue laws.
4. In SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the second paragraph
is replaced by the following:
Participation in the Separate Account under the Contract terminates on the
earliest of (i) election and commencement of annuity benefits pursuant to
Section 3.03, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
5. In SECTION 2.03 GUARANTEED INTEREST DIVISION, the third paragraph is
replaced by the following:
Participation in the Guaranteed Interest Division under the contract
terminates on the earliest of (i) election and commencement of annuity
benefits pursuant to Section 3.03, (ii) the death of the Participant and
(iii) termination of participation pursuant to Section 2.06.
6. In SECTION 2.05 TRANSFERS AMONG DIVISIONS, the first sentence is changed to
the following:
The Participant, upon written request, may transfer all or part of the
amount the Participant has in a Division to one or more of the Divisions as
follows: (1) amounts in the Guaranteed Interest Division, Stock Division,
Balanced Division and Aggressive Stock Division may be transferred among
such Divisions; and (2) amounts in the Money Market Division may be
transferred to other Divisions.
7. In SECTION 2.06 TERMINATION OF PARTICIPATION, the following changes are
made:
(a) The first sentence of the first paragraph is changed to the following:
Subject to any applicable restrictions under the terms of the Plan,
the Participant may elect by written notice to terminate participation
under the Contract.
(b) The phrase "Prior to a Participant's Retirement Date" is deleted from
the first sentence of the third paragraph.
8. In SECTION 2.07 PARTIAL WITHDRAWALS, the phrase "before such Participant's
Retirement Date" is deleted from the first paragraph.
PF 17114P
<PAGE>
9. In SECTION 2.09 DEATH BENEFIT, the following phrases are deleted from the
first paragraph: "and before such Participant's Retirement Date" and "at
any time prior to the Retirement Date."
10. In SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS, the
following changes are made:
(a) The first paragraph is replaced by the following:
As of a Participant's Retirement Date, provided such participant is
then living, the Annuity Account Value shall be applied to provide the
Normal Form of Annuity Benefit, unless such Participant elects (i) to
receive the Cash Value of the certificate in a single sum, (ii) to
apply the Annuity Account Value or Cash Value, whichever is applicable
pursuant to the first paragraph of Section 3.04, to provide an Annuity
Benefit on any other form offered by Equitable, as elected by the
Participant or (iii) to take partial withdrawals in amounts and at
times as required by the Code, pursuant to Section 1.11A, subject to
Equitable's rules then in effect and any other applicable requirements
under the Code.
(b) The phrase "before the Retirement Date" is deleted from the third
paragraph.
11. In SECTION 4.05 BENEFICIARY, the following sentence is added to the end of
the last paragraph:
Any such election must meet the minimum distribution requirements under the
Code, as described in Section 1.11A.
12. In SECTION 4.06 DISQUALIFICATION, the phrase "before the Retirement Date"
is deleted.
13. In SECTION 4.09 ANNUAL NOTICE, the phrase "up to and including the
Retirement date" is deleted.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17114P
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective November 1, 1989, Equitable hereby amends your certificate issued
under Group Annuity Contract No. 11938C-C as follows:
1. A new section, SECTION 1.11A REQUIRED DISTRIBUTIONS, is added as follows:
SECTION 1.11A REQUIRED DISTRIBUTIONS. Notwithstanding any provisions in the
certificate to the contrary, distributions from the contract which are
intended to satisfy the minimum distribution requirements set forth in the
Code and the regulations must be equal to at least the amounts and must be
taken at least as frequently as specified in the Code and the regulations.
2. In SECTION 1.16 DEFINITIONS RELATING TO THE SEPARATE ACCOUNT, the phrase
"on or before the Retirement Date" is deleted from the definition of
"Accumulation Unit."
3. In SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the second paragraph
is replaced by the following:
Participation in the Separate Account under the Contract terminates on the
earliest of (i) election and commencement of annuity benefits pursuant to
Section 3.03, (ii) the death of the Participant and (iii) termination of
participation pursuant to Section 2.06.
4. In SECTION 2.03 GUARANTEED INTEREST DIVISION, the third paragraph is
replaced by the following:
Participation in the Guaranteed Interest Division under the Contract
terminates on the earliest of (i) election and commencement of annuity
benefits pursuant to Section 3.03, (ii) the death of the Participant and
(iii) termination of participation pursuant to Section 2.06.
5. In SECTION 2.05 TRANSFERS AMONG DIVISIONS, the phrase "At any time before a
Participant's Retirement Date" is deleted from the first paragraph.
6. In SECTION 2.06 TERMINATION OF PARTICIPATION, the following changes are
made:
(a) The first sentence of the first paragraph is changed to the following:
Subject to any applicable restrictions under the terms of the Plan,
the Participant may elect by written notice to terminate participation
under the Contract.
(b) The phrase "Prior to a Participant's Retirement Date" is deleted from
the first sentence of the third paragraph.
7. In SECTION 2.07 PARTIAL WITHDRAWALS, the phrase "before such Participant's
Retirement Date" is deleted from the first paragraph.
8. In SECTION 2.09 DEATH BENEFIT, the phrase "and before such Participant's
Retirement Date" is deleted from the first paragraph and the phrase "at any
time prior to the Retirement Date" is deleted from the sixth paragraph.
9. In SECTION 2.09 DEATH BENEFIT, the following sentence is added to the end
of the third paragraph and the end of the fourth paragraph:
Any election for an Annuity Benefit must meet the minimum distribution
requirements under the Code.
PF 17115C
<PAGE>
10. In SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS, the
following changes are made:
(a) The first paragraph is replaced by the following:
As of a Participant's Retirement Date, provided such Participant is
then living, the Annuity Account Value less any outstanding loan shall
be applied to provide the Normal Form of Annuity Benefit, unless such
Participant elects (i) to receive the Cash Value of the certificate in
a single sum, (ii) to apply the Annuity Account Value less any
outstanding loan or Cash Value, whichever is applicable pursuant to
the first paragraph of Section 3.04, to provide an Annuity Benefit on
any other form offered by Equitable, as elected by the Participant or
(iii) to take partial withdrawals in amounts and at times as required
by the Code, pursuant to Section 1.11A, subject to Equitable's rules
then in effect and any other applicable requirements under the Code.
(b) The phrase "before the Retirement Date" is deleted from the third
paragraph.
(c) The phrase "any shorter period which meets the minimum distribution
rules under the Code, or" is added to the end of item (i)in the fifth
paragraph.
11. In SECTION 4.06 DISQUALIFICATION, the phrase "before the Retirement Date"
is deleted.
12. In SECTION 4.09 ANNUAL NOTICE, the phrase "up to and including the
Retirement Date" is deleted.
SPECIMEN Vice President SPECIMEN President
and Secretary
PF 17115C
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
For Participants in HR-10 Plans, effective November 1, 1989, we have amended
your Certificate issued under Group Annuity Contract No. 11938C-C as follows:
SECTION 2.08 ANNUAL ADMINSTRATIVE CHARGE is replaced by the following:
As of the last day of each Participation Year, if the Annuity Account Value on
that date is less than $10,000, Equitable will withdraw from the Divisions an
annual administrative charge equal to the lesser of $30 or 2% of the sum of (i)
the Annuity Account Value and (ii) any withdrawals pursuant to Section 2.07
during that Participation Year. The charge will be allocated among the Divisions
in proportion to the amounts that the Participant has in the Divisions. For this
purpose, any loan reserve account will be deemed to be included within the
Guaranteed Interest Division. The portion of the charge attributable to the
Guaranteed Interest Division and any loan reserve account will be first
withdrawn from the Guaranteed Interest Division and then, if the amount a
Participant has in the Guaranteed Interest Division is not sufficient, the
remaining allocation will be withdrawn from the portion of the loan reserve
account that earns interest at the most current rate credited to the Guaranteed
Interest Division.
If the Annuity Account Value is less than $10,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of participation under the Contract pursuant to
Section 2.06 or 2.09, Equitable will determine the portion of the administrative
charge applicable to the completed portion of the current Participation Year and
withdraw such amount in lieu of the annual administrative charge described in
this Section for the applicable part of that Participation Year.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF17116C
<PAGE>
Estella A. Devian
Assistant Vice President
THE EQUITABLE
DEC 28 1989
Mr. Fredric L. Bodner, JD
Chief, Health & Life
Policy Bureau
Agency Building One
Nelson A. Rockefeller Plaza
Albany, New York 12257
Re: Group Annuity Riders PF17100C, PF17100C-C, PF17101C and PF17101C-C
Dear Mr. Bodner:
We are hereby filing for approval Riders PF17100C and PF17101C which are to be
used with our qualified trusteed Group Annuity Certificate 11938C approved on
March 9, 1987 (File No. 87030090-0093), and Riders PF17100C-C and PF17101C-C
which are to be used with Group Annuity Contract 11938C-C which was approved on
March 9, 1987 (File No. 87030090-0093).
Rider PF17100C provides for partial vesting and will be given upon request to
both new and in force qualified trusteed corporate and unincorporated
certificate owners in plans which do not provide for full and immediate vesting
and therefore require reallocation of forfeitures. Rider PF17101C creates a
single suspense account certificate to receive the forfeitures under the plan.
Riders PF17100C-C and PF17101C-C similarly amend the Group Annuity Contract.
We would appreciate receiving your approval as soon as possible. If you have any
questions concerning these riders, please call Manager Robert Heck collect at
(212) 714-5287.
Sincerely,
/s/ Estella A. Devian
Estella A. Devian
Assistant Vice President
jg/7285L
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Two Penn Plaza, New York, N.Y. 10121
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
This rider is designed for certificates issued in connection with plans which do
not provide for full and immediate vesting and therefore require reallocation of
forfeitures. The following provisions apply only if a Suspense Account
Certificate (Group Annuity Certificate No. 11938C with this rider and Rider No.
PF 17101C appended) has been issued under the Plan.
Effective immediately, Equitable hereby amends your certificate issued under
Group Annuity Contract No. 11938C-C as follows:
1. A new section, SECTION 1.19 SUSPENSE ACCOUNT CERTIFICATE, is added as
follows:
SECTION 1.19 SUSPENSE ACCOUNT CERTIFICATE. The term "Suspense Account
Certificate" means a certificate issued for the purpose of investing
amounts which have been forfeited, as provided in the Plan, until such
amounts can be reallocated to the other certificates in accordance with the
terms of the Plan.
2. A new section, SECTION 1.20 INTER-CERTIFICATE TRANSFER, is added as
follows:
SECTION 1.20 INTER-CERTIFICATE TRANSFER. The term "Inter-certificate
Transfer" means a transfer of (i) funds which have been forfeited, as
provided in the Plan, from one certificate to the Suspense Account
Certificate; or (ii) from the Suspense Account Certificate to one or more
other certificates for the purpose of reallocating forfeitures under the
plan.
3. A new section, SECTION 2.07C DISTRIBUTIONS OF FORFEITURES, is added as
follows:
SECTION 2.07C DISTRIBUTIONS OF FORFEITURES. If the Participant terminates
participation pursuant to Section 2.06 or requests a partial withdrawal
pursuant to Section 2.07, and the Owner notifies Equitable (on a form
acceptable to Equitable) that a forfeiture has occurred under the terms of
the Plan, the Owner may make: (i) an Inter-certificate Transfer to the
Suspense Account Certificate of an amount equal to the forfeiture; or (ii)
a partial withdrawal pursuant to Section 2.07 of an amount equal to the
forfeiture. Equitable is not responsible for calculating the amount of the
forfeiture.
Such Inter-certificate Transfer or partial withdrawal will count toward the
available Free Corridor Amount as defined in Section 2.07B. There will be
no charge made in conjunction with an Inter-certificate Transfer. However,
to the extent that the amount of any partial withdrawal made pursuant to
Section 2.07 exceeds the Free Corridor Amount, Equitable will apply any
applicable partial withdrawal charges, pursuant to Section 2.07A.
If (a) the Owner has made (i) an Inter-certificate Transfer or (ii) a
partial withdrawal, in accordance with Section 2.07C; (b) there is still
Annuity Account Value; and (c) the Owner has not made any election under
Section 3.03 or any other Section of the certificate, then following
receipt of a properly completed change of ownership form, Equitable will
change ownership of the certificate to the Participant, pursuant to Section
1.05A, who shall then be entitled to exercise all rights under the
certificate; provided, however, that no new Contributions may be made at
any time after such change of ownership. In any event, Equitable will not
be responsible for any tax consequences which may occur as a result of new
Contributions.
4. With respect to SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY, the first
sentence is replaced by the following:
Subject to any restrictions under the Plan, the entire interest of any
Participant under the Contract is nonforfeitable.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17100C
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
This rider is designed for certificates issued in connection with plans which do
not provide for full and immediate vesting and therefore require reallocation of
forfeitures. The following provisions apply only if a Suspense Account
Certificate (Group Annuity Certificate No. 11938C with this rider and Rider No.
PF 17101C appended) has been issued under the Plan.
Effective immediately, Equitable hereby amends Group Annuity Contract No.
11938C-C as follows:
1. A new section, SECTION 1.19 SUSPENSE ACCOUNT CERTIFICATE, is added as
follows:
SECTION 1.19 SUSPENSE ACCOUNT CERTIFICATE. The term "Suspense Account
Certificate" means a certificate issued for the purpose of investing
amounts which have been forfeited, as provided in the Plan, until such
amounts can be reallocated to the other certificates in accordance with the
terms of the Plan.
2. A new section, SECTION 1.20 INTER-CERTIFICATE TRANSFER, is added as
follows:
SECTION 1.20 INTER-CERTIFICATE TRANSFER. The term "Inter-certificate
Transfer" means a transfer of funds (i) which have been forfeited, as
provided in the Plan, from one certificate to the Suspense Account
Certificate; or (ii) from the Suspense Account Certificate to one or more
other certificates for the purpose of reallocating forfeitures under the
Plan.
3. A new section, SECTION 2.07C DISTRIBUTIONS OF FORFEITURES, is added as
follows:
SECTION 2.07C DISTRIBUTIONS OF FORFEITURES. If the Participant terminates
participation pursuant to Section 2.06 or requests a partial withdrawal
pursuant to Section 2.07, and the Owner notifies Equitable (on a form
acceptable to Equitable) that a forfeiture has occurred under the terms of
the Plan, the Owner may make: (i) an Inter-certificate Transfer to the
Suspense Account Certificate of an amount equal to the forfeiture; or (ii)
a partial withdrawal pursuant to Section 2.07 of an amount equal to the
forfeiture. Equitable is not responsible for calculating the amount of the
forfeiture.
Such Inter-certificate Transfer or partial withdrawal will count toward the
available Free Corridor Amount as defined in Section 2.07B. There will be
no charge made in conjunction with an Inter-certificate Transfer. However,
to the exetent that the amount of such partial withdrawal exceeds the Free
Corridor Amount, Equitable will apply any applicable partial withdrawal
charges, pursuant to Section 2.07A.
If (a) the Owner has made (i) an Inter-certificate Transfer or (ii) a
partial withdrawal, in accordance with Section 2.07C; (b) there is still
Annuity Account Value; and (c) the Owner has not made any election under
Section 3.03 or any other Section of the certificate, then following
receipt of a properly completed change of ownership form, Equitable will
change ownership of the certificate to the Participant, pursuant to Section
1.05A, who shall then be entitled to exercise all rights under the
certificate; provided, however, that no new Contributions may be made at
any time after such change of ownership. In any event, Equitable will not
be responsible for any tax consequences which may occur as a result of new
Contributions.
4. With respect to SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY, the first
sentence is replaced by the following:
Subject to any restrictions under the Plan, the entire interest of any
Participant under the Contract is nonforfeitable.
Agreed to by:
UNITED STATES TRUST COMPANY
By_____________________________________
Title _________________________________
Dated _________________________________
At ____________________________________
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
By /s/ John B. Carter
------------------------------------
John B. Carter
President
By /s/ Benjamin H. Walker
------------------------------------
Benjamin H. Walker
Vice President and Secretary
Date of Issue _________________________
PF 17100C-C
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective immediately, Equitable hereby amends your certificate issued under
Group Annuity Contract No. 11938C-C as follows:
1. Notwithstanding anything in the certificate to the contrary, Contributions
may only be allocated to the Guaranteed Interest Division. No Contributions
may be allocated, or subsequently transferred, to any of the Separate
Account Investment Divisions.
2. A new section, SECTION 1.06A INITIAL DEPOSIT, is added as follows:
SECTION 1.06A INITIAL DEPOSIT. The term "Initial Deposit" means a required
initial payment made to Equitable by the Owner with respect to a Suspense
Account Certificate. The Initial Deposit, the amount of which will be
determined by Equitable, will be held under the Suspense Account
Certificate from the issue date until participation under the Suspense
Account Certificate is terminated in order to maintain a minimum Annuity
Account Value. Upon termination of participation under the Suspense Account
Certificate, the entire Annuity Account Value will be paid to the Owner.
3. The following paragraph is added after the second paragraph of SECTION
2.07A PARTIAL WITHDRAWAL CHARGES:
Any applicable withdrawal charge will be waived on any amount withdrawn if
that amount is reallocated as a Contribution to the remaining certificates
issued under the Plan, as provided for by the Plan. If any amount withdrawn
is not reallocated to the remaining certificates, the applicable withdrawal
charge will be deducted from the Annuity Account Value.
4. With respect to SECTION 2.09 DEATH BENEFIT, the phrase "made pursuant to
Section 2.07" is deleted from the penultimate paragraph.
5. In SECTION 4.10A TRUSTEE'S RESPONSIBILITY, the phrase "or ownership has
been assigned to the Participant pursuant to Section 2.07C' is added to the
end of the first sentence.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17101C
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
This endorsement applies only for certificates issued as Suspense Account
Certificates.
Effective immediately, Equitable hereby amends Group Annuity Contract No.
11938C-C as follows:
1. Notwithstanding anything in the certificate to the contrary, Contributions
may only be allocated to the Guranteed Interest Division. No Contributions
may be allocated, or subsequently transferred, to any of the Separate
Account Investment Divisions.
2. A new Section, SECTION 1.06A INITIAL DEPOSIT, is added as follows:
SECTION 1.06A INITIAL DEPOSIT. The term "Initial Deposit" means a required
initial payment made to Equitable by the Owner with respect to a Suspense
Account Certificate. The Initial Deposit, the amount of which will be
determined by Equitable, will be held under the Suspense Account
Certificate from the issue date until participation under the Suspense
Account Certificate is terminated in order to maintain a minimum Annuity
Account Value. Upon termination of participation under the Suspense Account
Certificate, the entire Annuity Account Value will be paid to the Owner.
3. The following paragraph is added after the second paragraph of SECTION
2.07A PARTIAL WITHDRAWAL CHARGES:
Any applicable withdrawal charge will be waived on any amount withdrawn if
that amount is reallocated as a Contribution to the remaining certificates
issued under the Plan, as provided for by the Plan. If any amount withdrawn
is not reallocated to the remaining certificates, the applicable withdrawal
charge will be deducted from the Annuity Account Value.
4. With respect to SECTION 2.09 DEATH BENEFIT, the phrase "made pursuant to
Section 2.07" is deleted from the penultimate paragraph.
5. In SECTION 4.10A TRUSTEE'S RESPONSIBILITY, the phrase "or ownership has
been assigned to the Participant pursuant to Section 2.07C" is added to the
end of the first sentence.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
OF NEW YORK SOCIETY OF THE UNITED STATES
By By /s/ John B. Carter
------------------------------------- ---------------------------------
President
Title
-----------------------------------
By /s/ Benjamin H. Walker
Dated ---------------------------------
----------------------------------- Vice President and Secretary
At Date of Issue
-------------------------------------- -----------------------
PF 17101C-C
<PAGE>
Estella A. Devian
Assistant Vice President
THE EQUITABLE
SEP 29 1989
Mr. Fredric L. Bodner, JD
Chief, Health & Life
Policy Bureau
Agency Building One
Nelson A. Rockefeller Plaza
Albany, New York 12257
Re: Administrative Charge Waiver Endorsement For Group Annuities
Dear Fred:
We are filing for your approval the following endorsements:
<TABLE>
<CAPTION>
Form Number For Use With Approval Date
- ----------- ------------ -------------
<S> <C> <C>
PF 17104C Group Annuity Certificate No. 11938C 3-9-87 (File No. 87030090-0093)
PF 17104C-C Group Annuity Contract No. 11938C-C 3-9-87 "
PF 17105P Group Annuity Certificate No. 11936P 4-19-82 (File No. 82010997)
PF 17105CP Group Annuity Contract No. 11932CP 2-29-80 (File No. 80020034)
PF 17106T Group Annuity Certificate No. 11934T 4-19-82 (File No. 82010990-1001,
82041322)
PF 17106CT Group Annuity Contract No. 11930CT 2-29-80 (File No. 80020031-38)
</TABLE>
The endorsements provide for the waiver of the annual administrative charge
described in Section 2.08 of the above-referenced certificates/contracts for
Participants with annuity account values of $25,000 or more. Previously, all
Participants under these contracts were required to pay the annual
administrative charge.
If you have any questions, please call me collect at (212) 714-5301. I look
forward to receiving your approval.
Very truly yours,
/s/ Estella A. Devian
Estella A. Devian
Assistant Vice President
jg/7133L
1/9/90 Jack Fitzgerald will review immediately
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES .
Two Penn Plaza, New York, N.Y. 10121
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective on October 1, 1989, for any Participant under a Trusteed Plan
maintained by a corporation, we have amended your Certificate issued under Group
Annuity contract No. 11938C-C as follows:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE is replaced by the following:
As of the last day of each Participation Year, if the Annuity Account Value on
that date is less than $25,000, Equitable will withdraw from the Divisions an
annual administrative charge equal to the lesser of $30 or 2% of the sum of (i)
the Annuity Account Value and (ii) any withdrawals pursuant to Section 2.07
during that Participation Year. The charge will be allocated among the Divisions
in proportion to the amounts that the Participant has in the Divisions. For this
purpose, any loan reserve account will be deemed to be included within the
Guaranteed Interest Division. The portion of the charge attributable to the
Guaranteed Interest Division and any loan reserve account will be first
withdrawn from the Guaranteed Interest Division and then, if the amount a
Participant has in the Guaranteed Interest Division is not sufficient, the
remaining allocation will be withdrawn from the portion of the loan reserve
account that earns interest at the most current rate credited to the Guaranteed
Interest Division.
If the Annuity Account Value is less than $25,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of participation under the Contract pursuant to
Section 2.06 or 2.09, Equitable will determine the portion of the administrative
charge applicable to the completed portion of the current Participation Year and
withdraw such amount in lieu of the annual administrative charge described in
this Section for the applicable part of that Participation Year.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17104C
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective on October 1, 1989, for any Participant under a Trusteed Plan
maintained by a corporation, we have amended your Group Annuity Contract No.
11938C-C as follows:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE is replaced by the following:
As of the last day of each Participation Year, if the Annuity Account Value on
that date is less than $25,000, Equitable will withdraw from the Divisions an
annual administrative charge equal to the lesser of $30 or 2% of the sum of (i)
the Annuity Account Value and (ii) any withdrawals pursuant to Section 2.07
during that Participation Year. The charge will be allocated among the Divisions
in proportion to the amounts that the Participant has in the Divisions. For this
purpose, any loan reserve account will be deemed to be included within the
Guaranteed Interest Division. The portion of the charge attributable to the
Guaranteed Interest Division and any loan reserve account will be first
withdrawn from the Guaranteed Interest Division and then, if the amount a
Participant has in the Guaranteed Interest Division is not sufficient, the
remaining allocation will be withdrawn from the portion of the loan reserve
account that earns interest at the most current rate credited to the Guaranteed
Interest Division.
If the Annuity Account Value is less than $25,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of participation under the Contract pursuant to
Section 2.06 or 2.09, Equitable will determine the portion of the administrative
charge applicable to the completed portion of the current Participation Year and
withdraw such amount in lieu of the annual administrative charge described in
this Section for the applicable part of that Participation Year.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
By By SPECIMEN
---------------------------- ------------------------------
President
Title By SPECIMEN
------------------------- ------------------------------
Vice President and Secretary
Dated Date of Issue
------------------------- -------------------
At
----------------------------
PF 17104C-C
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective October 1, 1989, we have amended your Certificate issued under Group
Annuity Contract No. 11932CP as follows:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE, is replaced by the following:
As of the last day of each Participation Year, if the Annuity Account Value on
that date is less than $25,000, Equitable will withdraw from the Divisions an
annual administrative charge equal to the lesser of $30 or 2% of the sum of (i)
the Annuity Account value and (ii) any withdrawals pursuant to Section 2.07
during that Participation Year. The charge will be allocated among the Divisions
in proportion to the amounts that the Participant has in the Divisions.
If the Annuity Account Value is less than $25,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of participation under the Contract pursuant to
Section 2.06 or 2.09, Equitable will determine the portion of the administrative
charge applicable to the completed portion of the current Participation Year and
withdraw such amount in lieu of the annual administrative charge described in
this Section for the applicable part of that Participation Year.
/s/ Molly K. Heines /s/ Joseph J. Melone
Molly K. Heines Joseph J. Melone
Vice President and Secretary Chairman of the Board
PF 17105P
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective on October 1, 1989, we have amended your Group Annuity Contract No.
11932CP as follows:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE is replaced by the following:
As of the last day of each Participation Year, if the Annuity Account Value on
that date is less than $25,000, Equitable will withdraw from the Divisions an
annual administrative charge equal to the lesser of $30 or 2% of the sum of (i)
the Annuity Account Value and (ii) any withdrawals pursuant to Section 2.07
during that Participation Year. The charge will be allocated among the Divisions
in proportion to the amounts that the Participant has in the Divisions.
If the Annuity Account Value is less than $25,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of participation under the Contract pursuant to
Section 2.06 or 2.09, Equitable will determine the portion of the administrative
charge applicable to the completed portion of the current Participation Year and
withdraw such amount in lieu of the annual administrative charge described in
this Section for the applicable part of that Participation Year.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
By By SPECIMEN
---------------------------- ----------------------------------
President
Title By SPECIMEN
---------------------------- ---------------------------------
Vice President and Secretary
Dated Date of Issue
------------------------- ----------------------
At
----------------------------
PF 17105CP
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective on October 1, 1989, we have amended your Certificate issued under
Group Annuity contract No. 11930CT as follows:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE is replaced by the following:
As of the last day of each Participation Year, if the Annuity Account Value on
that date is less than $25,000, Equitable will withdraw from the Divisions an
annual administrative charge equal to the lesser of $30 or 2% of the sum of (i)
the Annuity Account Value and (ii) any withdrawals pursuant to Section 2.07
during that Participation Year. The charge will be allocated among the Divisions
in proportion to the amounts that the Participant has in the Divisions. For this
purpose, any loan reserve account will be deemed to be included within the
Guaranteed Interest Division. The portion of the charge attributable to the
Guaranteed Interest Division and any loan reserve account will be first
withdrawn from the Guaranteed Interest Division and then, if the amount a
Participant has in the Guaranteed Interest Division is not sufficient, the
remaining allocation will be withdrawn from the portion of the loan reserve
account that earns interest at the Guaranteed Interest Rate.
If the Annuity Account Value is less than $25,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of participation under the Contract pursuant to
Section 2.06 or 2.09, Equitable will determine the portion of the administrative
charge applicable to the completed portion of the current Participation Year and
withdraw such amount in lieu of the annual administrative charge described in
this Section for the applicable part of that Participation Year.
Vice President
SPECIMEN and Secretary SPECIMEN President
PF 17106T
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective on October 1, 1989, we have amended your Group Annuity Contract No.
11930CT as follows:
SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE is replaced by the following:
As of the last day of each Participation Year, if the Annuity Account Value on
that date is less than $25,000, Equitable will withdraw from the Divisions an
annual administrative charge equal to the lesser of $30 or 2% of the sum of (i)
the Annuity Account Value and (ii) any withdrawals pursuant to Section 2.07
during that Participation Year. The charge will be allocated among the Divisions
in proportion to the amounts that the Participant has in the Divisions. For this
purpose, any loan reserve account will be deemed to be included within the
Guaranteed Interest Division. The portion of the charge attributable to the
Guaranteed Interest Division and any loan reserve account will be first
withdrawn from the Guaranteed Interest Division and then, if the amount a
Participant has in the Guaranteed Interest Division is not sufficient, the
remaining allocation will be withdrawn from the portion of the loan reserve
account that earns interest at the Guaranteed Interest Rate.
If the Annuity Account Value is less than $25,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of participation under the Contract pursuant to
Section 2.06 or 2.09, Equitable will determine the portion of the administrative
charge applicable to the completed portion of the current Participation Year and
withdraw such amount in lieu of the annual administrative charge described in
this Section for the applicable part of that Participation Year.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
SOCIETY OF THE UNITED STATES
By By SPECIMEN
---------------------------- ----------------------------------
President
Title By SPECIMEN
---------------------------- ---------------------------------
Vice President and Secretary
Dated Date of Issue
------------------------- ----------------------
At
----------------------------
PF 17106CT
<PAGE>
[EQUITABLE LOGO]
JAN 20 1989
Mr. John S. Fitzgerald, JD, CLU, JD
Senior Insurance Policy Examiner
Insurance Department
Agency Building One
Empire State Plaza
Albany, New York 12257
Re: Riders PF 17075C-C and PF 17075C
Dear Mr. Bodner:
We are filing for your approval Rider PF 17075C-C and Rider PF 17075C, to be
used with Group Annuity Contract No. 11938C-C, and Group Annuity Certificate
11938C, respectively. These riders contain provisions which will permit
Participants under this contract to take out loans against their annuity account
values. These loans will have an adjustable loan interest rate.
These riders replace the previously filed Riders 17074C-C and PF 17074C, which
were filed on August 30, 1988 (your file no. 88090127-28). Riders 17074C-C and
PF 17074C are hereby withdrawn.
I look forward to receiving your approval of these riders. If you have any
questions, please call Alex Unger at (212) 714-4482.
Very truly yours,
/s/ Estella A. Devian
Estella A. Devian
Assistant Vice President
1bc/6765L-2
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES o Two Penn Plaza,
New York, NY 10121
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Equitable has amended your Certificate issued under Group Annuity Contract No.
11938C-C as follows:
1. SECTION 1.17 ANNUITY ACCOUNT VALUE is replaced by the following:
SECTION 1.17 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that a Participant has in the Guaranteed Interest Division,
the Investment Divisions of the Separate Account and any loan reserve account.
2. SECTION 1.18 CASH VALUE is replaced by the following:
SECTION 1.18 CASH VALUE. With respect to the Participant, the term "Cash Value"
means an amount equal to the greater of (i) or (ii), less any outstanding loan,
where
(i) is Annuity Account Value less 6% of the Contributions made during the
current and five prior Participation Years, which had not been previously
withdrawn pursuant to Section 2.07A, and
(ii) is the sum of (a) the Free Corridor Amount as defined in Section 2.07B and
(b) 94% of the Annuity Account Value less the Free Corridor Amount.
3. SECTION 1.18A CODE is replaced by the following:
SECTION 1.18A CODE. The term "Code" means the Internal Revenue Code of 1986, as
now or hereafter amended.
4. With respect to SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the first
paragraph is replaced by the following:
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any date when an amount
is allocated to or withdrawn or transferred from an Investment Division, the
Participant will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the Accumulation Unit
Value for the appropriate Investment Division for the Valuation Period which
includes that date. The number of units a Participant has in an Investment
Division on any date is equal to (i) the sum of any Accumulation Units that have
been allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation
Units that have been withdrawn pursuant to Sections 2.07, 2.08 or 2.10 or
transferred from the Investment Division pursuant to Section 2.05. The amount a
Participant has in an Investment Division on any date is equal to the product
(i) the number of Accumulation Units that a Participant has in the Investment
Division on that date and (ii) the Accumulation Unit Value for the Investment
Division for the Valuation Period which includes that date.
5. With respect to SECTION 2.03 GUARANTEED INTEREST DIVISION, the second
paragraph is replaced by the following:
The amount a Participant has in the Guaranteed Interest Division at any time is
equal to the sum of all amounts that have been allocated to the Guaranteed
Interest Division pursuant to Section 2.04 or 2.10 plus the amount of any
interest accrued but not allocated, less the sum of all amounts that have been
withdrawn from the Guaranteed Interest Division pursuant to Section 2.07, 2.08
or 2.10 or transferred from the Guaranteed Interest Division, pursuant to
Section 2.05. Interest is allocated to the Guaranteed Interest Division pursuant
to Section 2.04. Equitable guarantees that the rate at which interest accrues
will never be less than 4% per annum.
6. With respect to SECTION 2.04 ALLOCATION TO DIVISIONS, the second and third
paragraphs are replaced by the following:
Any amount that a Participant has directed to be transferred to one or more
Divisions pursuant to Section 2.05 or 2.10 will be allocated as of the date
Equitable receives at the Processing Office the written request for such
transfer to the appropriate Investment Division.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division at the end of each Participation Year, at the time
of each transfer from the Division pursuant to Section 2.05 or 2.10, at the time
of each withdrawal pursuant to Section 2.07, at the time of application of
amounts in the Guaranteed Interest Division to provide Annuity Benefits pursuant
to Section 3.04, upon termination of participation pursuant to Section 2.06 and
upon death of the Participation pursuant to Section 2.09.
7. With respect to SECTION 2.06 TERMINATION OF PARTICIPATION, the third
paragraph is replaced by the following:
Prior to a Participant's Retirement Date, Equitable reserves the right to pay
the Annuity Account Value less any outstanding loan under the Contract and
terminate such Participant's participation under the Contract. This right may be
exercised with respect to the Participant only if both (i) no Contributions have
been made under the Contract during the last three completed Participation
Years, and (ii) the Annuity Account Value is less than $500. Equitable reserves
the right to terminate a Participant's participation under the Contract if at
least 120 days have elapsed since the issue date shown on the certificate issued
to such Participant under the Contract and no Contributions have been made under
the Contract with respect to such Participant.
8. With respect to SECTION 2.07 PARTIAL WITHDRAWALS, the fourth paragraph is
replaced by the following:
Equitable may decline to accept a request for a partial withdrawal of less than
$300. If a withdrawal made under this Section would result in an Annuity Account
Value of less than $500, Equitable will so advise the Participant and reserves
the right to pay the Annuity Account Value less any outstanding loan to the
Participant, and terminate such Participant's participation under the Contract.
9. With respect to SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE, the first
paragraph is replaced by the following:
PF 17075C ________
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SECTION 2.08 ANNUAL ADMINISTRATIVE CHARGE. AS of the last day of each
Participation Year before a Participant's Retirement Date, Equitable will
withdraw from the Divisions an annual administrative charge equal to the lesser
of $30 or 2% of the sum of (i) the Annuity Account Value and (ii) any
withdrawals pursuant to Section 2.07 during that Participation Year. The charge
will be allocated among the Divisions in proportion to the amounts that the
Participant has in the Divisions. For this purpose, any loan reserve account
will be deemed to be included within the Guaranteed Interest Division. The
portion of the charge attributable to the Guaranteed Interest Division and any
loan reserve account will be first withdrawn from the Guaranteed Interest
Division and then, if the amount a Participant has in the Guaranteed Interest
Division is not sufficient, the remaining allocation will be withdrawn from the
portion of the loan reserve account that earns interest at the most current rate
credited to the Guaranteed interest Division.
10. With respect to SECTION 2.09 DEATH BENEFIT, the sixth paragraph is replaced
by the following:
The amount of the death benefit with respect to a Participant at any time prior
to the Retirement Date is equal to the greater of (i) the Annuity Account Value
less any outstanding loan and (ii) the minimum death benefit with respect to
such Participant. Such minimum death benefit is the sum of all Contributions
made with respect to such Participant pursuant to Section 2.01 less any
outstanding loan and less any withdrawals made pursuant to Section 2.07. Any
such withdrawal will reduce the minimum death benefit (as adjusted by any
previous such withdrawal) by an amount which is in the same proportion as the
amount being withdrawn is to the Annuity Account Value.
11. A new section, SECTION 2.10 LOANS, is added as follows:
SECTION 2.10 LOANS. Unless otherwise restricted by the Plan or the Code, the
Participant may apply for and receive a loan under the certificate before the
Retirement Date if an agreement between the Trustee and Equitable relating to
such loans ("Trustee Agreement") has been executed and is in effect on the Loan
Effective Date, as defined below. However, future amendments of or changes in
the Code may require revision or elimination of the loan provisions as provided
below.
A loan is effective ("Loan Effective Date") on the first day of the month
following the date on which the Participant's loan agreement and application
form ("Loan Agreement"), properly completed and signed by the Participant, is
approved by the Trustee and accepted by Equitable at Equitable's Processing
Office. The provisions of the certificate requiring spousal consent in order to
receive a loan will apply if the Participant is married.
The maximum amount of principal loaned to the Participant ("loan amount") may
not be more than (i) 80% of the Annuity Account Value under the certificate, if
such Annuity Account Value is between $3,750 and $12,500, (ii) $10,000, if the
Annuity Account Value is between $12,500 and $20,000, and (iii) 50% of the
Annuity Account Value if the Annuity Account Value is greater than or equal to
$20,000, but in no event shall the loan amount exceed $50,000 less the excess
(if any) of the highest outstanding balance of all loans from qualified plans
and any Code s.403(b) tax-sheltered annuities ("403(b) annuities") of the
Employer during the one-year period ending on the day before the Loan Effective
Date, over the outstanding balance of all loans from qualified plans and 403(b)
annuities of the Employer on the Loan Effective Date. The minimum loan amount
permitted is $3,000.
On the Loan Effective Date, Equitable will transfer to a loan reserve account an
amount equal to the sum of (i) the loan amount, which will earn interest at an
effective annual rate of not less than the rate we charge for loan interest
reduced by 2% during the loan term and (ii) 25% of the loan amount, which will
earn interest at the most current rate credited to the Guaranteed Interest
Division. The excess of the loan interest we charge over the amount of interest
we credit to the loan reserve account as set forth in (i) above will be retained
by Equitable as a service charge.
The Participant may specify from which Divisions these amounts are to be
transferred. In the absence of direction by the Participant, or if the
Participant's directions cover only part of the amount required to be
transferred to the loan reserve account, Equitable will transfer the required
(or additional required) amounts from each Division in proportion to the amount
the Participant has in such Divisions. Except as hereinafter provided, the funds
in the loan reserve account, including the interest credited thereon , are not
available for transfer or withdrawal until the loan is repaid and the funds are
released.
Beginning on a date designated by Equitable which shall be no later than the
first day of the third month following the Loan Effective Date and quarterly
thereafter, the amount of interest earned at the effective annual rate of not
less than the rate we charge for loan interest reduced by 2% during the prior
quarter will be transferred to the portion of the loan reserve account that
earns interest at the most current rate credited to the Guaranteed Interest
Division.
Upon full repayment of the loan by the Participant, Equitable will credit the
most current rate credited to the Guaranteed Interest Division to the full loan
reserve account. Sixty day after the loan is fully repaid, any amount remaining
in the loan reserve account will be transferred to the Guaranteed Interest
Division and may be withdrawn, transferred or annuitized as described in the
certificate.
Beginning on a date designated by Equitable which shall be no later than the
first day of the third month following the Loan Effective Date and not less
frequently than quarterly thereafter (each, a "Loan Repayment Date"),
substantially level loan payments for the duration of the Loan Term, as
hereinafter defined, must be made to Equitable. Such payments will be equal to
the sum of (a) and (b) where
(a) is the loan interest, calculated at the rate described below, computed as of
the applicable Loan Repayment Date, and
(b) is an amortized portion of the loan amount.
PF 17075C ________
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Interest on a loan accrues daily at an adjustable loan interest rate. Equitable
will determine the rate at the beginning of each Loan Year, as defined below
(each, a "date of determination"), subject to the following paragraphs. This
rate will apply to any outstanding loan amount under the certificate during the
Loan Year next following the date of determination.
The maximum loan interest rate for a twelve month period ending on the day
before an anniversary of the Loan Effective Date ("Loan Year") shall be the
greater of: (1) the "Published Monthly Average," as defined below, for the
calendar month that ends two months before the date of determination; or (2) 5%.
"Published Monthly Average" means the Monthly Average Corporate yield shown in
Moody's Corporate Bond Yield Averages published by Moody's Investors Service,
Inc., or any successor thereto. If such averages are no longer published, we
will use such other averages as may be established by regulation by the
insurance supervisory official of the jurisdiction in which the Contract, under
which this certificate is issued, is delivered. In no event will the loan
interest rate for a Participation Year be greater than the maximum rate
permitted by applicable law. We reserve the right to establish a rate lower than
the maximum.
No change in the rate shall be less than 1/2 of 1% a year. We may increase the
rate whenever the maximum rate as determined by clause (1) of the preceding
paragraph increases by 1/2 of 1% or more. We will reduce the rate to or below
the maximum rate as determined by clause (1) of the preceding paragraph if such
maximum is lower than the rate being charged by 1/2 of 1% or more.
We will notify you of the initial loan interest rate when you take a loan. We
will also give you advance written notice within 30 days of any increase or
decrease in the interest rate of any outstanding loan.
Upon receipt at our Processing Office of a surrender request for a certificate
with a loan outstanding, Equitable will deduct the unpaid loan balance,
including accrued interest and any applicable withdrawal charges from the
surrender proceeds. Should death be the cause of certificate termination,
Equitable will deduct any unpaid loan balance (including accrued interest) from
the death benefit proceeds.
On any Loan Repayment Date following the first anniversary of the Loan Effective
Date, additional loan payments may be made with the regular loan payment. The
loan, including the full amount of interest due thereon, may be repaid in full
on the first loan anniversary date or any time thereafter. Any loan repayment
accepted will be applied first to repay the interest due and then to reduce the
loan amount. Any partial loan repayment will result in a transfer of an amount
equal to the principal repaid from (i) the portion of the loan reserve account
that earns interest at the effective annual rate of not less than the rate we
charge for loan interest reduced by 2% to (ii) the portion of the loan reserve
account that earns interest at the most current rate credited to the Guaranteed
interest Division. Sixty days after a partial repayment is made, the principal
amount repaid will be transferred from the portion of the loan reserve account
that earns interest at the most current rate credited to the Guaranteed Interest
Division to the Guaranteed Interest Division and may be withdrawn, transferred
or annuitized as described elsewhere herein. Any late loan repayment or any loan
repayment in an amount which is less than the amount due will result in a
declaration of default with respect to the unpaid portion of the loan amount due
on that Loan Repayment Date.
The loan term ("Loan Term") will be either (i) ten years, if the Participant
represents that the purpose of the loan is to acquire a dwelling unit which,
within a reasonable period of time, is to be used as the principal residence of
the Participant or (ii) five years. In any event, the Loan Term may not extend
beyond the earliest of (i) the Retirement Date, (ii) the date of the termination
of the certificate, (iii) the date of the termination of the Trustee Agreement,
(iv) the date the Trustee notifies Equitable that the Participant has died, (v)
the date the Participant terminates his or her employment or (vi) any date
provided for such loans by future Federal tax rules, including acceleration of
the loan repayment in order that the operation of the loan provisions does not
adversely affect the tax treatment of the certificate.
12. SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS is replaced by
the following:
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living, the
Annuity Account Value less any outstanding loan shall be applied to provide the
Normal Form of Annuity Benefit, unless the Owner on behalf of the Participant
and, if applicable , the Participant's spouse elects (i) to receive the Cash
Value of the certificate in a single sum or (ii) to apply the Annuity Account
Value less any outstanding loan or Cash Value, whichever is applicable pursuant
to the first paragraph of Section 3.04, to provide an Annuity Benefit on any
other annuity form offered by Equitable, subject to Equitable's rules then in
effect, the terms of the Plan, and any other applicable requirements under the
Code.
Equitable will provide notice and election forms to the Owner not more-than six
months before the Participant's Retirement Date.
If the Owner elects to terminate a Participant's participation under the
Contract pursuant to Section 2.06 before the Retirement Date, an election may be
made to receive an Annuity Benefit in lieu of the Cash Value.
Equitable will have the right to require the Owner to furnish pertinent
information to provide an Annuity Benefit, and will be fully protected in
relying on such information and need not inquire as to the accuracy or
completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form. The Participant may only elect an annuity
form pursuant to which either (i) the Annuity Account Value less any outstanding
loan or Cash Value, whichever is applicable, will be paid to the Participant and
the Participant's beneficiary over a period not exceeding the joint lives of the
Participant and the Participant's spouse or (ii) more than 50%
PF 17075C __________
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of the Annuity Account Value less any outstanding loan or Cash Value, whichever
is applicable, will be paid to the Participant during the Participant's life.
13. With respect to SECTION 3.04 AMOUNT OF ANNUITY BENEFITS, the first paragraph
is replaced by the following:
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If the Owner elects pursuant to the
first or third paragraph of Section 3.03 to receive an Annuity Benefit in lieu
of the Cash Value, the amount applied to provide the Annuity Benefit will be (i)
the Annuity Account Value less any outstanding loan if the payments under the
annuity form elected are contingent upon the survival of a person or (ii) the
Cash Value if the payments under the annuity form elected are not contingent
upon the survival of a person. If such amount is applied on or after the
completion of five Participation Years with respect to such Participant: (1) the
balance, less any Contribution made on behalf of the Participant during the
current and five prior Participation Years, shall purchase the Annuity Benefit
on the basis of either (i) the Table of Guaranteed Annuity Payments shown herein
or (ii) Equitable's current individual annuity rates for payment of proceeds,
whichever rates would provide a larger benefit with respect to the payee; (2)
any Contributions made on behalf of the Participant during the current and five
prior Participation Years shall purchase the Annuity Benefit on the basis of
either (i) the Table of Guaranteed Annuity Payments shown herein or (ii)
Equitable's current individual rates applicable to funds which derive from
sources outside Equitable, whichever rates would provide a larger benefit with
respect to the payee. If such current individual annuity rates are used, such
Participant's certificate will be replaced by an Equitable supplementary
contract.
14. A new section, SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS
APPLICABLE TO PLANS, is added as follows:
SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS APPLICABLE TO PLANS.
If participation under the Contract is pursuant to the terms of a Plan, then the
provisions of this Section shall supersede any contrary provisions in the
Contract and certificate.
Unless a married Participant and the Participant's spouse elect otherwise in
accordance with the terms of the Plan and as provided in this Section, as of a
Participant's Retirement Date, the Annuity Account Value shall be applied to
provide a "Qualified Joint and Survivor Annuity." A "Qualified Joint and
Survivor Annuity" is an Annuity Benefit for the life of the Participant with a
survivor annuity for the life of the Participant's spouse which is not less than
50% and not more than 100% of the annuity which is payable during the joint
lives of the Participant and the Participant's spouse. If the Participant is not
married and does not elect otherwise, the Annuity Account Value shall be applied
to provide a life annuity.
In addition, unless an optional form of benefit is elected pursuant to the terms
of the Plan and this Section, if a married Participant dies before payment of
the Participant's Annuity Account Value or Cash Value has commenced, then the
death benefit described in Section 2.09 shall be applied to provide a life
annuity for the Participant's spouse.
The Participant may elect, on a form acceptable to the Employer and Equitable,
within the 90 consecutive day period before the date as of which payment of an
annuity is to commence, not to receive payment in the form of a Qualified Joint
and Survivor Annuity, or, if the Participant is unmarried, a life annuity, in
which case the Participant may elect to apply the Annuity Account Value or Cash
Value, as the case may be, in any other form of payment available under the
terms of the Plan and the Contract. The Participant may also elect, on a form
acceptable to the Employer and Equitable, on the first day of the Plan year in
which the Participant attains age 35 (or the date on which the Participant
ceases to work for the Employer if earlier), for a beneficiary other than the
Participant's spouse to receive the death benefit. An election under either of
the two preceding sentences must be consented to by the Participant's spouse in
writing before a notary or a representative of the Plan and must be limited to a
benefit for a specific beneficiary. However, no spousal consent will be required
if the Participant can prove to the satisfaction of the Employer and Equitable,
that the Participant has no spouse or else that the spouse cannot be located.
Each election to designate a beneficiary other than the Participant's spouse
must be consented to by the spouse and any election made under this paragraph to
waive the spouse's benefits may be revoked without the consent of the spouse at
any time prior to the date as of which payments commence. Any consent to waive
the spouse's benefits shall be valid only with regard to the spouse who signs
it. Any new waiver or change of beneficiary will require a new spousal consent.
The provisions requiring spousal consent in this Section shall also apply with
regard to a Participant's election to terminate participation or make partial
withdrawals pursuant to Sections 2.06 and 2.07 and with regard to a
Participant's application for a loan. A spouse's written consent, witnessed by a
representative of the Plan or a notary, must be given on a form acceptable to
the Employer and Equitable, within the 90 consecutive day period prior to such
payment, withdrawal or loan, unless the Participant can show that the
Participant has no spouse or that the spouse cannot be located.
If the Annuity Account Value applied to provide the spousal benefits on the date
payment is to commence is in the aggregate less than $3,500, Equitable may
choose to make payment in a single sum rather than the form of a Qualified Joint
and Survivor Annuity or life annuity as described herein. Upon any payment made
pursuant to this Section, Equity will be released from any and all liability for
payment with respect to the Contributions made for the Participant.
15. SECTION 4.06 DISQUALIFICATION is replaced by the following:
PF 17075C _________
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SECTION 4.06 DISQUALIFICATION. In the event that an annuity purchased hereunder
with respect to a Participant fails to qualify as an Annuity described in
Section 1.03, Equitable shall have the right, upon receiving notice of such fact
before the Retirement Date, to terminate participation with respect to such
Participant under the Contract and pay at the direction of the Owner the Annuity
Account Value less any outstanding loan and less a deduction for the appropriate
part attributable to the Owner of any Federal income tax payable by Equitable
which would not have been payable if the Owner had an Annuity under the
Contract.
16. SECTION 4.09 ANNUAL NOTICE is replaced by the following:
SECTION 4.09 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Participant with a
notice showing as of a specified recent date: (1) the amount the Participant has
in the Guaranteed Interest Division, (2) the total number of Accumulation Units
the Participant has in the Stock Division, Balanced Division, Aggressive Stock
Division, and Money Market Division, (3) the Accumulation Unit Value, (4) the
amount the Participant has in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division, (5) the amount in the loan reserve
account, (6) the Cash Value and (7) the amount of death benefit payable with
respect to the Participant. After the Retirement Date, Equitable will notify the
Participant of the number of Annuity Units and the Average Annuity Unit Value
used in determining the amount of each Variable Annuity Benefit payment, if any.
SPECIMEN Vice President SPECIMEN President
and Secretary
PF 17075C _________
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<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Equitable has amended Group Annuity Contract No. 11938C-C as follows:
1. SECTION 1.17 ANNUITY ACCOUNT VALUE is replaced by the following:
SECTION 1.17 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that a Participant has in the Guaranteed Interest Division,
the Investment Divisions of the Separate Account and any loan reserve account.
2. SECTION 1.18 CASH VALUE is replaced by the following:
SECTION 1.18 CASH VALUE. With respect to the Participant, the term "Cash Value"
means an amount equal to the greater of (i) or (ii), less any outstanding loan,
where
(i) is the Annuity Account Value less 6% of the Contributions made during the
current and five prior Participation Years, which had not been previously
withdrawn pursuant to Section 2.07A, and
(ii) is the sum of (a) the Free Corridor Amount as defined in Section 2.07B and
(b) 94% of the Annuity Account Value less the Free Corridor Amount.
3. SECTION 1.18A CODE is replaced by the following:
SECTOIN 1.18A CODE. The term "Code" means the Internal Revenue Code of 1986, as
now or hereafter amended.
4. With respect to SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS, the first
paragraph is replaced by the following:
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any date when an amount
is allocated to or withdrawn or transferred from an Investment Division, the
Participant will be credited or charged, as the case may be, with the number of
Accumulation Units determined by dividing said amount by the Accumulation Unit
Value for the appropriate Investment Division for the Valuation Period which
includes that date. The number of units a Participant has in an Investment
Division on any date is equal to (i) the sum of any Accumulation Units that have
been allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation
Units that have been withdrawn pursuant to Sections 2.07, 2.08 or 2.10 or
transferred from the Investment Division pursuant to Section 2.05. The amount a
Participant has in an Investment Division on any date is equal to the product of
(i) the number of Accumulation Units that a Participant has in the Investment
Division on that date and (ii) the Accumulation Unit Value for the Investment
Division for the Valuation Period which includes that date.
5. With respect to SECTION 2.03 GUARANTEED INTEREST DIVISION, the second
paragraph is replaced by the following:
The amount a Participant has in the Guaranteed Interest Division at any time is
equal to the sum of all amounts that have been allocated to the Guaranteed
Interest Division pursuant to Section 2.04 or 2.10 plus the amount of any
interest accrued but not allocated, less the sum of all amounts that have been
withdrawn from the Guaranteed Interest Division pursuant to Section 2.07, 2.08
or 2.10 or transferred from the Guaranteed Interest Division, pursuant to
Section 2.05. Interest is allocated to the Guaranteed Interest Division pursuant
to Section 2.04. Equitable guarantees that the rate at which interest accrues
will never be less than 4% per annum.
6. With respect to SECTION 2.04 ALLOCATION TO DIVISIONS, the second and third
paragraphs are replaced by the following:
Any amount that a Participant has directed to be transferred to one or more
Divisions pursuant to Section 2.05 or 2.10 will be allocated as of the date
Equitable receives at the Processing Office the written request for such
transfer to the appropriate Investment Division.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division at the end of each Participation Year, at the time
of each transfer from the Division pursuant to Section 2.05 or 2.10, at the time
of each withdrawal pursuant to Section 2.07, at the time of application of
amounts in the Guaranteed Interest Division to provide Annuity Benefits pursuant
to Section 3.04, upon termination of participation pursuant to Section 2.06 and
upon death of the Participant pursuant to Section 2.09.
7. With respect to SECTION 2.06 TERMINATION OF PARTICIPATION, the third
paragraph is replaced by the following:
Prior to a Participant's Retirement Date, Equitable reserves the right to pay
the Annuity Account Value less any outstanding loan under the Contract and
terminate such Participant's participation under the Contract. This right may be
exercised with respect to the Participant only if both (i) no Contributions have
been made under the Contract during the last three completed Participation
Years, and (ii) the Annuity Account value is less than $500. Equitable reserves
the right to terminate a Participant's participation under the Contract if at
least 120 days have elapsed since the issue date shown on the certificate issued
to such Participant under the Contract and no Contributions have been made under
the Contract with respect to such Participant.
8. With respect to SECTION 2.07 PARTIAL WITHDRAWALS, the fourth paragraph is
replaced by the following:
Equitable may decline to accept a request for a partial withdrawal of less than
$300. If a withdrawal made under this Section would result in an Annuity Account
Value of less than $500, Equitable will so advise the Participant and reserves
the right to pay the Annuity Account Value less any outstanding loan to the
Participant, and terminate such Participant's participation under the Contract.
9. With respect to SECTION 2.08 ANNUAL ADMINSTRATIVE CHARGE, the first paragraph
is replaced by the following:
PF17075C-C
---------
Page One
<PAGE>
Page Two
---------
SECTION 2.08 ANNUAL ADMINSTRATIVE CHARGE. As of the last day of each
Participation Year before a Participant's Retirement Date, Equitable will
withdraw from the Divisions an annual administrative charge equal to the lesser
of $30 or 2% of the sum of (i) the Annuity Account Value and (ii) any
withdrawals pursuant to Section 2.07 during that Participation Year. The charge
will be allocated among the Divisions in proportion to the amounts that the
Participant has in the Divisions. For this purpose, any loan reserve account
will be deemed to be included within the Guaranteed Interest Division. The
portion of the charge attributable to the Guaranteed Interest Division and any
loan reserve account will be first withdrawn from the Guaranteed Interest
Division and then, if the amount a Participant has in the Guaranteed Interest
Division is not sufficient, the remaining allocation will be withdrawn from the
portion of the loan reserve account that earns interest at the most current rate
credited to the Guaranteed Interest Division.
10. With respect to SECTION 2.09 DEATH BENEFIT, the sixth paragraph is replaced
by the following:
The amount of the death benefit with respect to a Participant at any time prior
to the Retirement Date is equal to the greater of (i) the Annuity Account Value
less any outstanding loan and (ii) the minimum death benefit with respect to
such Participant. Such minimum death benefit is the sum of all Contributions
made with respect to such Participant pursuant to Section 2.01 less any
outstanding loan and less any withdrawals made pursuant to Section 2.07. Any
such withdrawal will reduce the minimum death benefit (as adjusted by any
Previous such withdrawal) by an amount which is in the same proportion as the
amount being withdrawn is to the Annuity Account Value.
11. A new section, SECTION 2.10 LOANS, is added as follows:
SECTION 2.10 LOANS. Unless otherwise restricted by the Plan or the Code, the
Participant may apply for and receive a loan under the certificate before the
Retirement Date if an agreement between the Trustee and Equitable relating to
such loans ("Trustee Agreement") has been executed and is in effect on the Loan
Effective Date, as defined below. However, future amendments of or changes in
the Code may require revision or elimination of the loan provisions as provided
below.
A loan is effective ("Loan Effective Date") on the first day of the month
following the date on which the Participant's loan agreement and application
form ("Loan Agreement"), properly completed and signed by the Participant, is
approved by the Trustee and accepted by Equitable at Equitable's Processing
Office. The provisions of the certificate requiring spousal consent in order to
receive a loan will apply if the Participant is married.
The maximum amount of principal loaned to the Participant ("loan amount") may
not be more than (i) 80% of the Annuity Account Value under the certificate, if
such Annuity Account Value is between $3,750 and $12,500, (ii) $10,000, if the
Annuity Account Value is between $12,500 and $20,000, and (iii) 50% of the
Annuity Account Value if the Annuity Account Value is greater than or equal to
$20,000, but in no event shall the loan amount exceed $50,000 less the excess
(if any) of the highest outstanding balance of all loans from qualified plans
and any Code s403(b) tax-sheltered annuities ("403(b) annuities") of the
Employer during the one-year period ending on the day before the Loan Effective
Date, over the outstanding balance of all loans from qualified plans and 403(b)
annuities of the Employer on the Loan Effective Date. The minimum loan amount
permitted is $3,000.
On the Loan Effective Date, Equitable will transfer to a loan reserve account an
amount equal to the sum of (i) the loan amount, which will earn interest at an
effective annual rate of not less than the rate we charge for loan interest
reduced by 2% during the loan term and (ii) 25% of the loan amount, which will
earn interest at the most current rate credited to the Guaranteed Interest
Division. The excess of the loan interest we charge over the amount of interest
we credit to the loan reserve account as set forth in (i) above will be retained
by Equitable as a service charge.
The Participant may specify from which Divisions these amounts are to be
transferred. In the absence of direction by the Participant, or if the
Participant's directions cover only part of the amount required to be
transferred to the loan reserve account, Equitable will transfer the required
(or additional required) amounts from each Division in proportion to the amount
the Participant has in such Divisions. Except as hereinafter provided, the funds
in the loan reserve account, including the interest credited thereon, are not
available for transfer or withdrawal until the loan is repaid and the funds are
released.
Beginning on a date designated by Equitable, which shall be no later than the
first day of the third month following the Loan Effective Date and quarterly
thereafter, the amount of interest earned at the effective annual rate of not
less than the rate we charge for loan interest reduced by 2% during the prior
quarter will be transferred to the portion of the loan reserve account that
earns interest at the most current rate credited to the Guaranteed Interest
Division.
Upon full repayment of the loan by the Participant, Equitable will credit the
most current rate credited to the Guaranteed Interest Division to the full loan
reserve account. Sixty days after the loan is fully repaid, any amounts
remaining in the loan reserve account will be transferred to the Guaranteed
Interest Division and may be withdrawn, transferred or annuitized as described
in the certificate.
Beginning on a date designated by Equitable which shall be no later than the
first day of the third month following the Loan Effective Date and not less
frequently than quarterly thereafter (each, a "Loan Repayment Date"),
substantially level loan payments for the duration of the Loan Term, as
hereinafter defined, must be made to Equitable. Such payments will be equal to
the sum of (a) and (b) where
(a) is the loan interest, calculated at the rate described below, computed as of
the applicable Loan Repayment Date, and
(b) is an amortized portion of the loan amount.
---------
PF 17075C-C Page Two
<PAGE>
Page Three
----------
Interest on a loan accrues daily at an adjustable loan interest rate. Equitable
will determine the rate at the beginning of each Loan Year, as defined below
(each, a "date of determination"), subject to the following paragraphs. This
rate will apply to any outstanding loan amount under the certificate during the
Loan Year next following the date of determination.
The maximum loan interest rate for a twelve month period ending on the day
before an anniversary of the Loan Effective Date ("Loan Year") shall be the
greater of: (1) the "Published Monthly Average," as defined below, for the
calendar month that ends two months before the date of determination; or (2) 5%.
"Published Monthly Average" means the Monthly Average Corporate yield shown in
Moody's Corporate Bond Yield Averages published by Moody's Investors Service,
Inc., or any successor thereto. If such averages are no longer published, we
will use such other averages as may be established by regulation by the
insurance supervisory official of the jurisdiction in which the Contract, under
which this certificate is issued, is delivered. In no event will the loan
interest rate for a Participation Year be greater than the maximum rate
permitted by applicable law. We reserve the right to establish a rate lower than
the maximum.
No change in the rate shall be less than 1/2 of 1% a year. We may increase the
rate whenever the maximum rate as determined by clause (1) of the preceding
paragraph increases by 1/2 of 1% or more. We will reduce the rate to or below
the maximum rate as determined by clause (1) of the preceding paragraph if such
maximum is lower than the rate being charged by 1/2 of 1% or more.
We will notify you of the initial loan interest rate when you take a loan. We
will also give you advance written notice within 30 days of any increase or
decrease in the interest rate of any outstanding loan.
Upon receipt at our Processing Office of a surrender request for a certificate
with a loan outstanding, Equitable will deduct the unpaid loan balance,
including accrued interest and any applicable withdrawal charges from the
surrender proceeds. Should death be the cause of certificate termination,
Equitable will deduct any unpaid loan balance (including accrued interest) from
the death benefit proceeds.
On any Loan Repayment Date following the first anniversary of the Loan Effective
Date, additional loan payments may be made with the regular loan payment. The
loan, including the full amount of interest due thereon, may be repaid in full
on the first loan anniversary date or any time thereafter. Any loan repayment
accepted will be applied first to repay the interest due and then to reduce the
loan amount. Any partial loan repayment will result in a transfer of an amount
equal to the principal repaid from (i) the portion of the loan reserve account
that earns interest at the effective annual rate of not less than the rate we
charge for loan interest reduced by 2% to (ii) the portion of the loan reserve
account that earns interest at the most current rate credited to the Guaranteed
Interest Division. Sixty days after a partial repayment is made, the principal
amount repaid will be transferred from the portion of the loan reserve account
that earns interest at the most current rate credited to the Guaranteed Interest
Division and may be withdrawn, transferred or annuitized as described elsewhere
herein. Any late loan repayment or any loan repayment in an amount which is less
than the amount due will result in a declaration of default with respect to the
unpaid portion of the loan amount due on that Loan Repayment Date.
The loan term ("Loan Term") will be either (i) ten years, if the Participant
represents that the purpose of the loan is to acquire a dwelling unit which,
within a reasonable period of time, is to be used as the principal residence of
the Participant or (ii) five years. In any event, the Loan Term may not extend
beyond the earliest of (i) Retirement Date, (ii) the date of the termination of
the certificate, (iii) the date of the termination of the Trustee Agreement,
(iv) the date the Trustee notifies Equitable that the Participant has died, (v)
the date the Participant terminates his or her employment or (vi) any date
provided for such loans by future Federal tax rules, including acceleration of
the loan repayment in order that the operation of the loan provisions does not
adversely affect the tax treatment of the certificate.
12. SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS is replaced by
the following:
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of a
Participant's Retirement Date, provided such Participant is then living, the
Annuity Account Value less any outstanding loan shall be applied to provide the
Normal Form of Annuity Benefit, unless the Owner on behalf of the Participant
and, if applicable, the Participant's spouse elects (i) to receive the Cash
Value of the certificate in a single sum or (ii) to apply the Annuity Account
Value less any outstanding loan or Cash Value, whichever is applicable pursuant
to the first paragraph of Section 3.04, to provide an Annuity Benefit on any
other annuity form offered by Equitable, subject to Equitable's rules then in
effect, the terms of the Plan, and any other applicable requirements under the
Code.
Equitable will provide notice and election forms to the Owner not more than six
months before the Participant's Retirement Date.
If the Owner elects to terminate a Participant's participation under the
Contract pursuant to Section 2.06 before the Retirement Date, an election may be
made to receive an Annuity Benefit in lieu of the Cash Value.
Equitable will have the right to require the Owner to furnish pertinent
information to provide an Annuity Benefit, and will be fully protected in
relying on such information and need not inquire as to the accuracy or
completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. Equitable may offer annuity forms other than the Life Annuity Form or
Joint and Survivor Life Annuity Form. The Participant may only elect an annuity
form pursuant to which either (i) the Annuity Account Value less any outstanding
loan or Cash Value, whichever is applicable, will be paid to the Participant and
Participant's beneficiary over a period not exceeding the joint lives of the
Participant and the Participant's spouse or (ii) more than 50%
----------
PF 17075C-C Page Three
<PAGE>
Page Four
---------
of the Annuity Account Value less any outstanding loan or Cash Value, whichever
is applicable, will be paid to the Participant during the Participant's life.
13. With respect to SECTION 3.04 AMOUNT OF ANNUITY BENEFITS, the first paragraph
is replaced by the following:
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If the Owner elects pursuant to the
first or third paragraph of Section 3.03 to receive an Annuity Benefit in lieu
of the Cash Value, the amount applied to provide the Annuity Benefit will be (i)
the Annuity Account Value less any outstanding loan if the payments under the
annuity form elected are contingent upon the survival of a person or (ii) the
Cash Value if the payments under the annuity form elected are not contingent
upon the survival of a person. If such amount is applied on or after the
completion of five Participation Years with respect to such Participant: (1) the
balance, less any Contribution made on behalf of the Participant during the
current and five prior Participation Years, shall purchase the Annuity Benefit
on the basis of either (i) the Table of Guaranteed Annuity Payments shown herein
or (ii) Equitable's current individual annuity rates for payment of proceeds,
whichever rates would provide a larger benefit with respect to the payee; (2)
any Contributions made on behalf of the Participant during the current and five
prior Participation Years shall purchase the Annuity Benefit on the basis of
either (i) the Table of Guaranteed Annuity Payments shown herein or (ii)
Equitable's current individual rates applicable to funds which derive from
sources outside Equitable, whichever rates would provide a larger benefit with
respect to the payee. If such current individual annuity rates are used, such
Participant's certificate will be replaced by an Equitable supplementary
contract.
14. A new section, SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS
APPLICABLE TO PLANS, is added as follows:
SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS APPLICABLE TO PLANS.
If participation under the Contract is pursuant to the terms of a Plan, then the
provisions of this Section shall supersede any contrary provisions in the
Contract and certificate.
Unless a married Participant and the Participant's spouse elect otherwise in
accordance with the terms of the Plan and as provided in this Section, as of a
Participant's Retirement Date, the Annuity Account Value shall be applied to
provide a "Qualified Joint and Survivor Annuity." A "Qualified Joint and
Survivor Annuity" is an Annuity Benefit for the life of the Participant with a
survivor annuity for the life of the Participant's spouse which is not less than
50% and not more than 100% of the annuity which is payable during the joint
lives of the Participant and the Participant's spouse. If the Participant is not
married and does not elect otherwise, the Annuity Account Value shall be applied
to provide a life annuity.
In addition, unless an optional form of benefit is elected pursuant to the terms
of the Plan and this Section, if a married Participant dies before payment of
the Participant's Annuity Account Value or Cash Value has commenced, then the
death benefit described in Section 2.09 shall be applied to provide a life
annuity for the Participant's spouse.
The Participant may elect, on a form acceptable to the Employer and Equitable,
within the 90 consecutive day period before the date as of which payment of an
annuity is to commence, not to receive payment in the form of a Qualified Joint
and Survivor Annuity, or, if the Participant is unmarried, a life annuity, in
which case the Participant may elect to apply the Annuity Account Value or Cash
Value, as the case may be, in any other form of payment available under the
terms of the Plan and the Contract. The Participant may also elect, on a form
acceptable to the Employer and Equitable, on the first day of the Plan year in
which the Participant attains age 35 (or the date on which the Participant
ceases to work for the Employer if earlier), for a beneficiary other than the
Participant's spouse to receive the death benefit. An election under either of
the two preceding sentences must be consented to by the Participant's spouse in
writing before a notary or a representative of the Plan and must be limited to a
benefit for a specific beneficiary. However, no spousal consent will be required
if the Participant can prove to the satisfaction of the Employer and Equitable,
that the Participant has no spouse or else that the spouse cannot be located.
Each election to designate a beneficiary other than the Participant's spouse
must be consented to by the spouse and any election made under this paragraph to
waive the spouse's benefits may be revoked without the consent of the spouse at
any time prior to the date as of which payments commence. Any consent to waive
the spouse's benefits shall be valid only with regard to the spouse who signs
it. Any new waiver or change of beneficiary will require a new spousal consent.
The provisions requiring spousal consent in the Section shall also apply with
regard to a Participant's election to terminate participation or make partial
withdrawals pursuant to Sections 2.06 and 2.07 and with regard to a
Participant's application for a loan. A spouse's written consent, witnessed by a
representative of the Plan or notary, must be given on a form acceptable to the
Employer and Equitable, within the 90 consecutive day period prior to such
payment, withdrawal or loan, unless the Participant can show that the
Participant has no spouse or that spouse cannot be located.
If the Annuity Account Value applied to provide the spousal benefits on the date
payment is to commence is in the aggregate less than $3,500, Equitable may
choose to make payment in a single sum rather than in the form of a Qualified
Joint and Survivor Annuity or life annuity as described herein. Upon any payment
made pursuant to this Section, Equitable will be released from any and all
liability for payment with respect to the Contributions made for the
Participant.
15. SECTION .406 DISQUALIFICATION is replaced by the following:
---------
PF 17075C-C Page Four
<PAGE>
Page Five
---------
SECTION 4.06 DISQUALIFICATION. In the event that an annuity purchased hereunder
with respect to a Participant fails to qualify as an Annuity described in
Section 1.03, Equitable shall have the right, upon receiving notice of such fact
before the Retirement Date, to terminate participation with respect to such
Participant under the Contract and pay at the direction of the Owner the Annuity
Account Value less any outstanding loan and less a deduction for the appropriate
part attributable to the Owner of any Federal income tax payable by Equitable
which would not have been payable if the Owner had an Annuity under the
Contract.
16. SECTION 4.09 ANNUAL NOTICE is replaced by the following:
SECTION 4.09 ANNUAL NOTICE. At the end of each Participation Year up to and
including the Retirement Date, Equitable will furnish the Participant with a
notice showing as of a specified recent date: (1) the amount the Participant has
in the Guaranteed Interest Division, (2) the total number of Accumulation Units
the Participant has in the Stock Division, Balanced Division, Aggressive Stock
Division and Money Market Division, (3) the Accumulation Unit Value, (4) the
amount the Participant has in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division, (5) the amount in the loan reserve
account, (6) the Cash Value and (7) the amount of death benefit payable with
respect to the Participant. After the Retirement Date, Equitable will notify the
Participant of the number of Annuity Units and the Average Annuity Unit Value
used in determining the amount of each Variable Annuity Benefit payment, if any.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
OF NEW YORK SOCIETY OF THE UNITED STATES
By ___________________________ By_____________________________________
President
Title_________________________ By_____________________________________
Vice President and Secretary
Dated_________________________ Date of Issue__________________________
At____________________________
---------
PF 17075C-C Page Five
<PAGE>
[Equitable LOGO]
January 18, 1989
Mr. Fredric L. Bodner, JD
Chief, Health & Life
Policy Bureau
Agency Building One
Nelson A. Rockefeller Plaza
Albany, New York 12257
Re: Endorsements PF 17080C-C, PF 17081C-C, PF 17080C and PF 17081C
Dear Mr. Bodner:
We are filing for your approval Endorsements PF 17080C-C and PF 17081C-C for use
with Group Annuity Contract No. 11938C-C, (approved by the Department on
March 9, 1987), and Endorsements PF 17080C and PF 17081C for use with Group
Annuity Certificate No. 11938C, (approved by the Department on March 9, 1987),
issued under Group Annuity Contract No. 11938C-C. These endorsements exempt
certain Participants, as explained below, from the payment of surrender charges
and partial withdrawal charges.
Endorsements PF 17080C-C and PF 17080C will be issued in the Qualified Trusteed
market to both Corporate and Non-Corporate (Keogh/HR10) plans, and is applicable
to any Participant who has attained the age of 59 1/2 years and has been a
Participant for a minimum of five years. Endorsements PF 17081C-C and PF 17081C
will be issued to Corporate plans only, and are applicable to any Participant
who has attained the age of 59 1/2 years and is retired or has terminated
employment with the employer.
If you have any questions regarding these endorsements, please call Bob Heck
collect at (212) 714-5247. I look forward to receiving your approval.
Sincerely,
/s/ Estella A. Devian
Estella A. Devian
Assistant Vice President
1bc/6765L
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES O Two Penn Plaza, New
York 10121
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective immediately, your Certificate issued under Group Annuity Contract No.
11938C-C is hereby amended as follows:
1. With respect to SECTION 1.18 CASH VALUE, the following new paragraph is
added at the end of the section:
No Withdrawal Charge: With respect to a Participant who has been a
Participant for at least five Participation Years and who has attained
the age of 59 1/2 years, the term "Cash Value" means an amount equal
to the Annuity Account Value.
2. With respect to SECTION 2.07A PARTIAL WITHDRAWAL CHARGES, the following new
paragraph is added at the end of the section:
With respect to partial withdrawals requested by the Owner, there will
be no partial withdrawal charge for any Participant who has been a
Participant for at least five Participation Years and who has attained
the age of 59 1/2 years.
Vice President
/s/ Benjamin H. Walker and Secretary /s/ John B. Carter President
PF 17080C
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective immediately, Equitable hereby amends Group Annuity Contract 11938C-C
as follows:
1. With respect to SECTION 1.18 CASH VALUE, the following new paragraph is
added at the end of the section:
No Withdrawal Charge: With respect to a Participant who has been a
Participant for at least five Participation Years and who has attained
the age of 59 1/2 years, the term "Cash Value" means an amount equal
to the Annuity Account Value.
2. With respect to SECTION 2.07A PARTIAL WITHDRAWAL CHARGES, the following new
paragraph is added at the end of the section:
With respect to partial withdrawals requested by the Owner, there will
be no partial withdrawal charge for any Participant who has been a
Participant for at least five Participation Years and who has attained
the age of 59 1/2 years.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
OF NEW YORK SOCIETY OF THE UNITED STATES
By By /s/ John B. Carter
-------------------------- ---------------------------------
Title President
-----------------------
Dated
---------------------- By /s/ Benjamin H. Walker
At ---------------------------------
-------------------------- Vice President and Secretary
Date of Issue
---------------------
PF 17080C-C
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective immediately, Equitable hereby amends Group Annuity Contract 11938C-C
as follows:
1. With respect to SECTION 1.18 CASH VALUE, the following new paragraph is added
at the end of the section:
No Withdrawal Charge: With respect to a Participant under a Trusteed Plan
maintained by a corporation which Participant has attained the age of
59 1/2 years, the term "Cash Value" means an amount equal to the Annuity
Account Value for withdrawals due to retirement or termination of
employment. The Participant's retirement or termination of employment must
be verified by the Trustee. Such verification should be in the form of a
statement signed by the Trustee and accompanying the request for
withdrawal. The request for withdrawal must be signed by both the
Participant and the Trustee. The withdrawal charge will be imposed if this
verification is not received at our Processing Office together with the
withdrawal request.
2. With respect to SECTION 2.07A PARTIAL WITHDRAWAL CHARGES, the following new
paragraph is added at the end of the section:
With respect to partial withdrawals requested by the Owner, there will be
no partial withdrawal charge for any Participant under a Trusteed Plan
maintained by a corporation if the Participant has attained the age of
59 1/2 years and if the partial withdrawal is requested due to retirement
or termination of employment. The Participant's retirement or termination
of employment must be verified by the Trustee. Such verification should be
in the form of a statement signed by the Trustee and accompanying the
request for withdrawal. The request for withdrawal must be signed by
both the Participant and the Trustee. The partial withdrawal charge will
be imposed if this verification is not received at our Processing Office
together with the withdrawal request.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
OF NEW YORK SOCIETY OF THE UNITED STATES
By By /s/ John B. Carter
------------------------- ----------------------------------
President
Title By /s/ Benjamin H. Walker
---------------------- ----------------------------------
Vice President and Secretary
Dated Date of Issue
----------------------- -----------------------
At
-------------------------
PF 17081C-C
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective immediately, your certificate issued under Group Annuity Contract
11938C-C is hereby amended as follows:
1. With respect to SECTION 1.18 CASH VALUE, the following new paragraph is added
at the end of the section:
No Withdrawal Charge: With respect to a Participant under a Trusteed Plan
maintained by a corporation which Participant has attained the age of 59 1/2
years, the term "Cash Value" means an amount equal to the Annuity Account
Value for withdrawals due to retirement or termination of employment. The
Participant's retirement or termination of employment must be verified by
the Trustee. Such verification should be in the form of a statement signed
by the Trustee and accompanying the request for withdrawal. The request for
withdrawal must be signed by both the Participant and the Trustee. The
withdrawal charge will be imposed if this verification is not received at
our Processing Office together with the withdrawal request.
2. With respect to SECTION 2.07A PARTIAL WITHDRAWAL CHARGES, the following new
paragraph is added at the end of the section:
With respect to partial withdrawals requested by the Owner, there will be
no partial withdrawal charge for any Participant under a Trusteed Plan
maintained by a corporation if the Participant has attained the age of
59 1/2 years and if the partial withdrawal is requested due to retirement
or termination of employment. The Participant's retirement or termination
of employment must be verified by the Trustee. Such verification should be
in the form of a statement signed by the Trustee and accompanying the
request for withdrawal. The request for withdrawal must be signed by both
the Participant and the Trustee. The partial withdrawal charge will be
imposed if this verification is not received at our Processing Office
together with the withdrawal request.
Vice President
/s/ Benjamin H. Walker and Secretary /s/John B. Carter President
PF 17081C
<PAGE>
{EQUITABLE LOGO]
January 5, 1989
Mr. Frederic L. Bodner, JD
Chief, Health & Life
Policy Bureau
Agency Building One
Nelson A. Rockefeller Plaza
Albany, New York 12257
Re: Endorsements PF 17082CT and PF 17082T
Dear Mr. Bodner:
We are filing for your approval Endorsement PF 17082CT for use with Group
Annuity Contract No. 11930CT (approved by the Department on February 29, 1980)
and Endorsement PF 17082T for use with Group Annuity Certificate No. 11934T
(approved by the Department on April 19, 1982), issued under Group Annuity
Contract No. 11930CT. These endorsements exempt certain Participants, as
explained below, from the payment of surrender charges and partial withdrawal
charges.
Endorsements PF 17082CT and PF 17082T will be issued in the Tax Sheltered
Annuity market and are applicable to any Participant who has attained the age of
59 1/2 years, has been a Participant for a minimum of five years and is
separated from service.
This form is exempt from Flesch Score requirements.
If you have any questions regarding these endorsements, please call Bob Heck
collect at (212) 714-5247. I look forward to receiving your approval.
Sincerely,
/s/ Estella A. Devian
Estella A. Devian
Assistant Vice President
1bc/6760L
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective immediately, Equitable hereby amends Group Annuity Contract 11930CT as
follows:
1. With respect to section entitled "Early Withdrawal Charges" on Page Two, the
following item is added following item (v):
or (vi) the attainment of age 55 years, the completion of five
Participation years and separation from service.
2. With respect to SECTION 1.18 CASH VALUE, the following item is added
following item (v) of the paragraph entitled "No Withdrawal Charge":
or (vi) the attainment of 55 years, the completion of five Participation
Years and separation from service.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
OF NEW YORK SOCIETY OF THE UNITED STATES
By By /s/ John B. Carter
------------------------- ----------------------------------
President
Title By /s/ Benjamin H. Walker
---------------------- ----------------------------------
Vice President and Secretary
Date Date of Issue
----------------------- -----------------------
At
-------------------------
PF 17082CT
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective immediately, Equitable hereby amends your certificate issued under
Group Annuity Contract 11930CT as follows:
1. With respect to section entitled "Early Withdrawal Charges" on Page Two, the
following item is added following item (v):
or (vi) the attainment of age 55 years, the completion of five
Participation Years and separation from service.
2. With respect to SECTION 1.18 CASH VALUE, the following item is added
following item (v) of the paragraph entitled "No Withdrawal Charge":
or (vi) the attainment of age 55 years, the completion of five
Participation Years and separation from service.
SPECIMEN Vice President SPECIMEN President
and Secretary
PF 17082T
<PAGE>
[NEW YORK STATE EMBLEM]
STATE OF NEW YORK
INSURANCE DEPARTMENT
AGENCY BUILDING ONE
THE GOVERNOR NELSON A. ROCKEFELLER
JAMES P. CORCORAN EMPIRE STATE PLAZA
SUPERINTENDENT OF ALBANY, NEW YORK 12257
INSURANCE
September 28, 1989
Refer to: John S. Fitzgerald
File No. 89090578-79; 88080528-30
Ms. Estella A. Devian
Assistant Vice President
Equitable Life Assurance Society of the
United States
2 Penn Plaza
New York, New York 10121
RE: PF 17073CP-NY
PF 17073P-NY
Dear Ms. Devian:
In your submittal letter of September 21, 1989, you advised that these
endorsements intended for the Internal Revenue Code Section 457 public employee
deferred compensation market are only slightly revised from the previously
approved endorsements, bearing the same policy form numbers, approved on April
17, 1989, file numbers 88080528-29. The only revision to the endorsements now
allows the contract holder to transfer all of the assets of the plan currently
issued under the contract to another funding vehicle after five years (or such
shorter period as may be mutually agreed upon) without incurring any withdrawal
charges. The revised endorsements also allow the contract holder the option of
renewing its agreement with Equitable for a mutually agreed upon period not to
exceed five years. The previous endorsements provided for a five year contract
term and a five year renewal period.
Because the previously approved versions of the endorsements were
never issued, we can approve these revised versions on a substitution basis.
We have substituted the revised copy of the above captioned forms,
forwarded with your letter September 21, 1989, for the ones previously
approved on April 17, 1989. Enclosed please find a duplicate copy of each form
bearing our stamp of approval dated April 17, 1989.
Very truly yours,
/s/ Fredric L. Bodner
Fredric L. Bodner, JD
Chief, Health & Life Policy Bureau
/amm
encls.
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
This endorsement is issued specifically for purposes of compliance with the
regulations of the New York State Deferred Compensation Board ("Regulations").
If those Regulations are withdrawn, superseded or otherwise modified such that
the need for this endorsement no longer exists, the provisions of this
endorsement will cease to apply.
For Plans established by Employers in the State of New York, Group Annuity
Contract 11932CP is hereby amended as follows:
1. The following paragraph is added to the "EARLY WITHDRAWAL CHARGE" provision
on Page Two of the Contract:
The above statements notwithstanding, after the completion of a period agreed
upon by the Employer and Equitable not to exceed five Participation Years from
the date as of which an agreement is entered into between the Employer and
Equitable ("period") and after the completion of each successive period, any
assets of the Plan which are currently invested in certificates issued under the
Contract will be transferred as soon as administratively practicable to a
successor funding agency designated by the Employer unless, not later than 7
days before the date on which a transfer would otherwise occur, the Employer, in
accordance with the procedures specified in Section 9003.2 of the Regulations,
notifies Equitable to renew that agreement. Such funds will be transferred in a
single sum and no early withdrawal charges, surrender charges, market value
adjustments or other fees will be applied in connection with such a transfer.
Equitable will not be responsible for the validity of any certification made by
the Employer.
2. With respect to SECTION 1.10 GUARANTEED INTEREST RATE, the second paragraph
is replaced by the following:
Equitable will from time to time establish and make available for new
Participants in Plans established by Employers in the State of New York (i) an
Initial Guaranteed Interest Rate, (ii) one or more Minimum Guaranteed Interest
Rates and (iii) the applicable effective period(s) for such Rates. A new Class
of Participants may be established effective with the effective date of the
occurrence of (i), (ii) or (iii) above or any combination thereof.
3. With respect to SECTION 1.18 CASH VALUE, the paragraph below is added
following the first paragraph:
The above statements notwithstanding, after the completion of a period agreed
upon by the Employer and Equitable not to exceed five Participation Years from
the date as of which an agreement is entered into between the Employer and
Equitable ("period") and after the completion of each successive period, any
assets of the Plan which are currently invested in certificates issued under the
Contract will be transferred as soon as administratively practicable to a
successor funding agency designated by the Employer unless, not later than 7
days before the date on which a transfer would otherwise occur, the Employer, in
accordance with the procedures specified in Section 9003.2 of the Regulations,
notifies Equitable to renew that agreement. Such funds will be transferred in a
single sum and early withdrawal charges, surrender charges, market value
adjustments or other fees will be applied in connection with such a transfer.
Equitable will not be responsible for the validity of any certification made by
the Employer.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
OF NEW YORK SOCIETY OF THE UNITED STATES
By By /s/ John B. Carter
------------------------- ----------------------------------
President
Title By /s/ Benjamin H. Walker
---------------------- ----------------------------------
Vice President and Secretary
Date Date of Issue
----------------------- -----------------------
At
-------------------------
PF 17073CP-NY
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
This endorsement is issued specifically for purposes of compliance with the
regulations of the New York State Deferred Compensation Board ("Regulations").
If those Regulations are withdrawn, superseded or otherwise modified such that
the need for this endorsement no longer exists, the provisions of this
endorsement will cease to apply.
For Plans established by Employers in the State of New York, Group Annuity
Contract 11932CP is hereby amended as follows:
1. The following paragraph is added to the "EARLY WITHDRAWAL CHARGE" provision
on Page Two of the Contract:
The above statements notwithstanding, after the completion of a period agreed
upon by the Employer and Equitable not to exceed five Participation Years from
the date as of which an agreement is entered into between the Employer and
Equitable ("period") and after the completion of each successive period, any
assets of the Plan which are currently invested in certificates issued under the
Contract will be transferred as soon as administratively practicable to a
successor funding agency designated by the Employer unless, not later than 7
days before the date on which a transfer would otherwise occur, the Employer, in
accordance with the procedures specified in Section 9003.2 of the Regulations,
notifies Equitable to renew that agreement. Such funds will be transferred in a
single sum and no early withdrawal charges, surrender charges, market value
adjustments or other fees will be applied in connection with such a transfer.
Equitable will not be responsible for the validity of any certification made by
the Employer.
2. With respect to SECTION 1.10 GUARANTEED INTEREST RATE, the second paragraph
is replaced by the following:
Equitable will from time to time establish and make available for new
Participants in Plans established by Employers in the State of New York (i) an
Initial Guaranteed Interest Rate, (ii) one or more Minimum Guaranteed Interest
Rates and (iii) the applicable effective period(s) for such Rates. A new Class
of Participants may be established effective with the effective date of the
occurrence of (i), (ii) or (iii) above or any combination thereof.
3. With respect to SECTION 1.18 CASH VALUE, the paragraph below is added
following the first paragraph:
The above statements notwithstanding, after the completion of a period agreed
upon by the Employer and Equitable not to exceed five Participation Years from
the date as of which an agreement is entered into between the Employer and
Equitable ("period") and after the completion of each successive period, any
assets of the Plan which are currently invested in certificates issued under the
Contract will be transferred as soon as administratively practicable to a
successor funding agency designated by the Employer unless, not later than 7
days before the date on which a transfer would otherwise occur, the Employer, in
accordance with the procedures specified in Section 9003.2 of the Regulations,
notifies Equitable to renew that agreement. Such funds will be transferred in a
single sum and early withdrawal charges, surrender charges, market value
adjustments or other fees will be applied in connection with such a transfer.
Equitable will not be responsible for the validity of any certification made by
the Employer.
Agreed to by:
UNITED STATES TRUST COMPANY THE EQUITABLE LIFE ASSURANCE
OF NEW YORK SOCIETY OF THE UNITED STATES
By By /s/ John B. Carter
------------------------- ----------------------------------
President
Title By /s/ Benjamin H. Walker
---------------------- ----------------------------------
Vice President and Secretary
Date Date of Issue
----------------------- -----------------------
At
-------------------------
PF 17073CP-NY
<PAGE>
[EQUITABLE LOGO]
AUG 28 1989
Mr. Ralph D. Spaulding
Insurance Department
Agency Building One
Empire State Plaza
Albany, New York 12257
Re: PF 17085C-NQ, Filing for delivery
Your File No. 89060005
Dear Mr. Spaulding:
On June 8, 1989, your department approved our filing of PF 17085NQ (File No.
8906005). This form is for use with our Group Annuity Certificate No. 11940NQ,
issued under Group Annuity Contract No. 11937C-NQ.
We neglected to file for delivery the corresponding contract form, PF 17085C-NQ,
for use with Group Annuity Contract No. 11937C-NQ. It has been filed and
approved in Rhode Island, the home state of the contract holder, and will be
issued there.
I apologize for any inconvenience this oversight may have caused. If you have
any questions, please call Alex Unger at (212) 714-4482. I look forward to
receiving your approval.
Very truly yours,
/s/ Estella A. Devian
Estella A. Devian
Assistant Vice President
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Two Penn Plaza, New York, NY 10121
EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective April 7, 1989, this endorsement is made part of Group Annuity Contract
No. 11937CNQ.
The Contract Holder is changed from Rhode Island Hospital Trust National Bank to
Bank of New England -- Old Colony, N.A. All references in the Contract and any
riders or endorsements issued under the Contract to Rhode Island Hospital Trust
are hereby changed to Bank of New England -- Old Colony, N.A.
Agreed to by:
BANK OF NEW ENGLAND -- THE EQUITABLE LIFE ASSURANCE
OLD COLONY, N.A. SOCIETY OF THE UNITED STATES
By By /s/ John B. Carter
----------------------------------- --------------------------------
Title John B. Carter
--------------------------------- President
Dated
--------------------------------- By /s/ Benjamin H. Walker
At --------------------------------
------------------------------------ Benjamin H. Walker
Vice President and Secretary
Date of Issue
---------------------
PF 17085CNQ
<PAGE>
[EQUITABLE LOGO]
ESTELLA A. DEVIAN
Assistant Vice President
May 23, 1989
Mr. Frederic L. Bodner, JD
Chief, Health & Life
Policy Bureau
Agency Building One
Nelson A. Rockefeller Plaza
Albany, New York 12257
Re: Endorsement PF 17085NQ
Dear Mr. Bodner:
We are filing for your approval Endorsement PF 17085NQ for use with Group
Annuity Certificate No. 11937NQ (approved by the Department on December 6,
1985), issued under Group Annuity Contract No. 11937C-NQ. This endorsement
changes the contract holder named on page 3 of the certificate from Rhode
Island Hospital Trust National Bank to Bank of New England - Old Colony, N.A.
This form is exempt from Flesch score requirements.
If you have any questions regarding this endorsement, please call Alex Unger
collect at (212) 714-4482. I look forward to receiving your approval.
Very truly yours,
/s/ Estella A. Devian
Estella A. Devian
Assistant Vice President
1bc/6965L
<PAGE>
ESTELLA A. DEVIAN
Assistant Vice President
[EQUITABLE LOGO]
Feb 20 1990
Mr. Frederic L. Bodner, JD
Chief, Health & Life
Policy Bureau
Agency Building One
Nelson A. Rockefeller Plaza
Albany, New York 12257
Re: Endorsement PF 17085NQ
File No. 89060005
Dear Mr. Bodner:
We are refiling for your approval Endorsement PF 17085NQ for use with Group
Annuity Certificate No. 11937NQ (approved by the Department on December 6,
1985), issued under Group Annuity Contract No. 11937C-NQ. This endorsement
changes the contract holder named on page 3 of the certificate from Rhode Island
Hospital Trust National Bank to Bank of New England - Old Colony, N.A. This
Endorsement was previously filed by the Deparmtnent on June 8, 1989 with an
Effective Date of April 7, 1989. This Endorsement to the Group Annuity Contract
was not signed until December 1989 with an Effective Date of December 1. No
other changes have been made in the Endorsement. We apologize for any
inconvenience this refiling may cause.
This form is exempt from Flesch score requirements.
If you have any questions regarding this endorsement, please call Robert Heck
collect at (212) 714-5247. I look forward to receiving your approval.
Very truly yours,
/s/ Estella A. Devian
Estella A. Devian
Assistant Vice President
jg/7355L
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Two Penn Plaza, New York, N.Y. 10121
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Effective April 7, 1989, your certificate issued under Group Annuity Contract
11937CNQ as been amended as follows:
On Page 3 or your certificate, the identity of the contract holder is changed
from RHODE ISLAND HOSPITAL TRUST COMPANY to BANK OF NEW ENGLAND - OLD COLONY,
N.A.
SPECIMEN Vice President SPECIMEN President
and Secretary
PF 17085NQ
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Unit Investment In this endorsement "we" and "our" mean the
Trust Endorsement Equitable Life Assurance Society of the United
States. "You" means the owner of the Contract at
the time the owner's right is exercised.
- --------------------------------------------------------------------------------
EFFECTIVE DATE: DECEMBER 18, 1987
This endorsement is made part of Individual Annuity Contract No. 112-94T as of
the Effective Date. It should be attached to and kept with your Contract.
On the Effective Date of this endorsement we exercise our right under the
Contract to operate Separate Accounts A and E as a unit investment trust. As a
result, Separate Account E has been combined with and into Separate Account A.
Separate Account A is now operating in unit investment trust form. It is
referred to herein as "the Separate Account". The Separate Account is made up of
investment divisions.
The investment assets of the former Separate Account A have been exchanged for
shares of the stock portfolio of The Equitable Trust (the "Trust"). Those shares
are held by the stock investment division of the Separate Account.
The investment assets of the former Separate Account E have been exchanged for
shares of the money market portfolio of the Trust. Those shares are held by the
money market division of the Separate Account.
As a result of this change in operations, as of the Effective Date of this
endorsement, the Contract to which the endorsement is attached is amended as
follows:
1. With respect to the first page of the Contract, the agreement and the first
paragraph are replaced by the following:
EQUITABLE
AGREES, subject to the provisions of this Contract, to allocate the single
premium and to pay benefits in the manner hereinafter described.
After the deductions specified on page two, the balance of the single
premium will be allocated to
THE STOCK DIVISION, or to
THE MONEY MARKET OF THE
SEPARATE ACCOUNT,
or will be divided between the Stock Division and the Money Market
Division, in accordance with the Allocation to Investment Divisions
provision on page two. Before the Retirement Date, amounts may be
transferred between the Stock Division and the Money Market Division in
accordance with the Transfers Between Investment Divisions provision on
page seven. An administrative charge is made in each Contract Year before
the Retirement Date as provided on page two.
2. With respect to the first page of the Contract, the third and fourth
paragraphs are replaced by the following:
If the Annuitant is living at the Retirement Date and another mode of
settlement has not been elected, the Cash Value of the amount the Annuitant
has in the Stock Division will be applied to purchase a variable annuity,
and the Cash Value of the amount the Annuitant has in the Money Market
Division will be applied to purchase a fixed annuity, in accordance with
the Annuity Commencing on Retirement Date provision on page seven. The
Annuity will be payable monthly commencing on the Retirement Date. Payments
will be made for 10 years certain and thereafter for the remaining lifetime
of the Annuitant.
The amount of each annuity payment will be equal to the sum of any fixed
annuity payment and any variable annuity payment. The amount of any
variable annuity payments may increase or decrease, depending on the
investment experience of the Stock Division of the Separate Account. Such
payments will increase if the average daily rate of investment return in
the Stock Division is equivalent to more than 3 1/2% annually, and will
decrease if it is equivalent to less than 3 1/2% annually. The daily rate
of investment return is before deduction of charges equivalent to a maximum
charge of 1% annually, but after any deductions to provide for taxes. These
charges include a daily charge for death benefits, mortality risk, expenses
and expense risk, plus the investment advisory fee charges and direct
operating expense charges of the Trust.
3. With respect to the first page of the Contract, the last six sentences are
replaced by the following:
Deferred Life Annuity, 10 Years Certain, On a Fixed or Variable or
Combination Fixed and Variable Basis, Death Benefit Before Retirement Date.
Premiums payable Until Retirement Date or Until Prior Death. Cash Value
Based on Stock Division or Money Market Division of the Separate Account or
Both. Nonparticipating. THE CASH VALUE AND VARIABLE ANNUITY PAYMENTS MAY
INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
4. With respect to Page Two of the Contract, the section entitled GUIDE TO
CONTRACT PROVISIONS is replaced by the following:
GUIDE TO CONTRACT PROVISIONS
Page
The Single Premium........................................................2
Owner.....................................................................5
Non-transferability.......................................................5
Beneficiary...............................................................5
General Provisions........................................................5
The Separate Account......................................................6
Cash Value................................................................7
Transfers Between Investment Divisions....................................7
S 17060T Rev. 10/87 Unit Investment Trust Endorsement
Page 1
<PAGE>
Death Benefit Before Retirement Date......................................7
Annuity Commencing on Retirement Date.....................................7
Optional Retirement Date..................................................7
Non-Qualification.........................................................7
Optional Modes of Settlement...........................................8-11
A copy of the application will be found following page four.
5. With respect to Page Two of the Contract, the section entitled ALLOCATION
TO SEPARATE ACCOUNTS is replaced by the following:
ALLOCATION TO THE INVESTMENT DIVISIONS. After deduction of the above
charges the balance of the premium will be applied to purchase Accumulation
Units in the Stock Division or in the Money Market Division or will be
divided between the two Investment Divisions in accordance with the
allocation percentages specified on page three. The number of Accumulation
Units purchased in each Investment Division is equal to the amount so
applied to that Investment Division, divided by the Accumulation Unit Value
of the Investment Division for the date on which the premium is received at
the Processing Office or, if later, the Date of Issue of this Contract. The
Accumulation Unit Value for either Investment Division may increase or
decrease, depending on the investment experience of the Investment
Division, but the number of Accumulation Units which have already been
purchased will not change because of any subsequent change in an
Accumulation Unit Value.
If Equitable's rules permit, proceeds of Contracts funded in Equitable's
Investment Divisions of the Separate Account for qualified plans may be
applied under this Contract without deductions to purchase Accumulation
Units in the Stock Division or the Money Market Division or in both
Investment Divisions, in accordance with the same allocation percentages as
apply to the single premium and in the same manner as the premium. The date
the amount is applied shall be the date on which appropriate Equitable
requirements to make available the proceeds are met, including receipt by
Equitable of a specific request for such application, signed by the Owner.
The amount applied shall be deemed to be a premium only for purposes of the
Death Benefit Before Retirement Date provision.
6. With respect to Page Two of the Contract, the section entitled
ADMINISTRATIVE CHARGE is replaced by the following:
ADMINISTRATIVE CHARGE. At the end of each Contract Year before the
Retirement Date, the total number of Accumulation Units then credited to
this Contract will be reduced to reflect an annual charge for
administrative expenses. The annual charge will be $15, or if less, 2% of
the sum of (a) the total Cash Value of this Contract at the end of the
Contract Year, and (b) the total withdrawal, if any, made during the
Contract Year. The charge will be allocated between the Investment
Divisions in proportion to their contract Cash Values. A proportionate
reduction for part of a Contract Year will be made before determination of
the Cash Value, if this Contract is surrendered for its total Cash Value,
the Annuitant dies or annuity payments commence during a Contract Year.
7. With respect to Page Five of the Contract, the section entitled DEFERMENT
is replaced by the following:
DEFERMENT. The payment of the total Cash Value or a partial withdrawal will
be made within seven days after receipt or written request for surrender or
withdrawal during the lifetime of the Annuitant, and the payment of the
Death Benefit will be made within seven days after receipt of due proof of
death of the Annuitant, except as provided in this provision.
Equitable reserves the right to defer determination and payment of the
total Cash Value, any partial withdrawal, the Death Benefit, and the
determination and application or payment of any amount under the Variable
Benefit Options of the Optional Modes of Settlement during (1) any period
when the sale of securities or the determination of an Accumulation Unit
Value or the Annuity Unit Value is not reasonably practicable because the
New York Stock Exchange is closed or conditions are such that, under rules
and regulations adopted by the Securities and Exchange Commission, trading
on such exchange is deemed to be restricted or an emergency is deemed to
exist, or (2) any other period during which the Securities and Exchange
Commission may, by order, permit postponement for the protection of persons
having interests in the Stock Division or the Money Market Division of the
Separate Account.
8. With respect to Page Five of the Contract, the section entitled ANNUAL
NOTICE is replaced by the following:
ANNUAL NOTICE. With respect to each Contract Year before the Retirement
Date, Equitable will furnish the Owner with a notice showing as of a
specified recent date the number of Accumulation Units credited under this
Contract and the Accumulation Unit Values credited under this Contract for
the Stock Division or the Money Market Division of the Separate Account.
9. With respect to Page Six of the Contract, the section entitled THE SEPARATE
ACCOUNTS is replaced by the following:
THE SEPARATE ACCOUNT. The Separate Account is Separate Account A (in unit
investment trust form). Equitable established the Separate Account and it
is maintained in accordance with the laws of New York State. Realized and
unrealized gains and losses from the assets of the Separate Account are
credited or charged against it without regard to Equitable's other income,
gains or losses. Assets are put in the Separate Account to support the
Contract and other variable annuity contracts and certificates. Assets may
be put in the Separate Account for other purposes, but not to support
contracts or policies other than variable annuities and variable insurance.
The assets of the Separate Account are the property of Equitable. The
portion of its assets equal to the reserves and other contract liabilities
with respect to the Separate Account will not be chargeable with
liabilities arising out of any other business we conduct. Equitable may
transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another
Investment Division or to Equitable's General Account.
S 17060T Rev. 10/87 Unit Investment Trust Endorsement
Page 2
<PAGE>
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of
a designated trust or investment company where each class (or series)
represents a separate portfolio in the trust or investment company.
Equitable retains the right to change the designated trust or investment
company or to add designated trusts or investment companies. The Investment
Divisions available on the Effective Date of this endorsement are the Stock
Division and the Money Market Division.
Equitable will value the assets of each Investment Division on each
business day. A business day is any day on which Equitable is open, the New
York Stock Exchange is open for trading and there is a sufficient degree of
trading in the portfolio securities in which an Investment Division is
invested that the Accumulation Unit Value or Annuity Unit Value might be
materially affected by changes in the value of those securities, as
determined by Equitable.
Equitable may, at it discretion, invest the assets of any Investment
Division in any investment permitted by applicable law. Equitable may rely
conclusively on the opinion of counsel (including attorneys in its employ)
as to what investments it is permitted by law to make.
Equitable reserves the right (i) to cause the registration or
deregistration of the Separate Account under the Investment Company Act of
1940, provided that such registration or deregistration is in conformity
with the requirements of applicable law; (ii) to run the Separate Account
under the direction of a committee, and to discharge such committee at any
time; (iii) to restrict or eliminate any voting rights of Annuitants or
other persons who have voting rights as to the Separate Account; (iv) to
operate the Separate Account by making direct investments, or in any other
form; (v) to add Investment Divisions (or sub-divisions of Investment
Divisions) to, or remove Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; (vi) to combine any two or
more Investment Divisions (or sub-divisions of Investment Divisions)of the
Separate Account; and (vii) to withdraw from any Investment Division and to
allocate to another Investment Division assets determined by Equitable to
be associated with this Contract. The term "Investment Division" in the
Contract shall then refer to any other Investment Division in which the
assets were placed.
If the exercise of these rights results in a material change in the
underlying investments of an Investment Division, the Annuitants will be
notified of such exercise.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for taxes) at a
rate not to exceed .74% per year for death benefits, mortality risk,
expenses and expense risk. The charge shall be made in accordance with (c)
of the Net Investment Factor provision below. The relative proportion of
these charges may be modified. This daily charge, plus the investment
advisory fee charges and direct operating expense charges of the Trust (or
any other designated trust or investment company), shall not in the
aggregate exceed a total annual rate of 1.0% of the value of the assets of
the Investment Divisions attributable to the Contract. The maximum rate may
not be altered without approval by the Contract Owner.
10. With respect to Page Six of the Contract, the section entitled DEFINITIONS
RELATING TO THE SEPARATE ACCOUNTS is replaced by the following:
DEFINITIONS RELATING TO THE INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT.
VALUATION PERIOD: Each business day together with any non-business day or
consecutive non-business day immediately preceding such business day will
constitute a Valuation Period.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for
each Investment Division of the Separate Account for a Valuation Period is
(a) dividend by (b), minus (c), where
(a) is the net asset value of the shares of the Trust (or any other
designated trust or investment company) that belong to the Investment
Division at the end of the Valuation Period (including the per share
amount of any dividend or capital gain distribution paid to the
Investment Division in the current Valuation Period), before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period, but after any amounts charged
against the Investment Division in the Valuation Period for taxes.
(b) is the net asset value of the shares of the Trust (or any other
designated trust or investment company) that belonged to the
Investment Division at the end of the preceding Valuation Period,
after giving effect to any amounts allocated to or withdrawn from the
Investment Division for that Valuation Period.
(c) is the daily asset charge for this Contract times the number of
calendar days in the Valuation Period.
The net asset value of the shares of a trust or investment company held by
an Investment Division shall be the value reported to Equitable by that
trust or investment company.
ACCUMULATION UNIT: The Accumulation Unit is a unit used in determining the
amount an Annuitant has in an Investment Division of the Separate Account
on or before the Retirement Date.
ACCUMULATION UNIT VALUE: With respect to this Contract, the initial
Accumulation Unit Value associated with each investment option was
established as follows:
Investment Option Value Date Established
----------------- ----- ----------------
Stock $10.00 November 1, 1968
Money Market $10.00 September 4, 1974
The Accumulation Unit Value for each subsequent Valuation Period is the
Accumulation Unit Value for the immediately preceding Valuation Period
multiplied by the Net Investment Factor for such Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts
payable from the Stock Division of the Separate Account under the Variable
Benefit Options of the Optional Modes of Settlement.
S 17060T Rev. 10/87 Unit Investment Trust Endorsement
Page 3
<PAGE>
ANNUITY UNIT VALUE: With respect to this Contract, the initial Annuity Unit
Value was established at $1.00 as of November 1, 1968. The Annuity Unit
Value for any subsequent Valuation Period is the Annuity Unit Value for the
immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for
such period, reduced for each calendar day in such subsequent Valuation
Period by the Net Investment Factor, times (i) .00009425 in order to
recognize the Assumed Base Rate of Net Investment Return of 3 1/2% per year
used in the determination of the number of Annuity Units.
AVERAGE ANNUITY UNIT VALUE: With respect to this Contract, the Average
Annuity Unit Value for a calendar month is equal to the average of the
Annuity Unit Values for all Valuation Periods ending in such month.
11. With respect to Page Seven of the Contract, the section entitled CASH VALUE
is replaced by the following:
CASH VALUE. The total Cash Value of this Contract at any time, on or before
the Retirement Date is equal to the sum of the Cash Value of the amount the
Annuitant has in the Stock Division and the Cash Value of the amount the
Annuitant has in the Money Market Division, each of which is equal to the
total number of Accumulation Units credited to this Contract for the
Investment Division as of the date the Cash Value is determined (after any
reduction as specified in the Administrative Charge provision on page two),
multiplied by the Accumulation Unit Value for the Investment Division on
such date.
On or before the Retirement Date, while the Annuitant is living, the Owner
may surrender this Contract for its total Cash Value determined as of the
date of receipt of written request for surrender at the Processing Office.
On or before the Retirement Date, while the Annuitant is living, the Owner
may make a partial withdrawal from the total Cash Value of the Contract
upon written request to Equitable. A partial withdrawal will not be
permitted by Equitable unless (1) the amount of the partial withdrawal
requested is at least $300, and (2) the total Cash Value of the Contract
after the withdrawal is at least $200. Unless otherwise specified by the
Owner, the amount to be withdrawn from each Investment Division shall be in
the same proportion to the Cash Value of the as the amount of the partial
withdrawal requested is to the total Cash Value. A partial withdrawal will
result in a reduction in the number of Accumulation Units credited to an
Investment Division, from which a withdrawal is made equal to the amount
withdrawn from such Investment Division divided by the Accumulation Unit
Value of the Investment Division, for the date on which written request for
withdrawal is received at the Processing Office. A partial withdrawal will
result in a reduction of the Death Benefit, as described in the provision
below.
12. With respect to Page Seven of the Contract, the section entitled TRANSFERS
BETWEEN SEPARATE ACCOUNTS is replaced by the following:
TRANSFERS BETWEEN INVESTMENT DIVISIONS. At any time before the Retirement
Date, while the Annuitant is living, the Owner, upon written request, may
transfer all or part of the Cash Value from one Investment Division to the
other, provided that if less than all of the Contract Cash Value in an
Investment Division is transferred to the other Investment Division, the
amount transferred must be at least $300. In the event of a transfer, the
number of Accumulation Units credited to the Investment Division from which
the transfer is made will be reduced by a number determined by dividing the
amount transferred by the Accumulation Unit Value for such Investment
Division for the date on which the Owner's written request for the transfer
is received at the Processing Office, and the number of Accumulation Units
credited to the Investment Division to which the transfer is being made
will be increased by a number determined by dividing the amount transferred
by the Accumulation Unit Value for such Investment Division for such date.
Equitable reserves the right to limit the number of transfers between
Investment Divisions, but will not limit transfers to less than two in a
Contract Year.
13. With respect to Page Seven of the Contract, the section entitled ANNUITY
COMMENCING ON RETIREMENT DATE is replaced by the following:
ANNUITY COMMENCING ON RETIREMENT DATE. On the Retirement Date, if the
Annuitant is then living and the Owner has not surrendered this Contract
for its total Cash Value or elected some other mode or modes of settlement,
the Cash Value of the amount the Annuitant has in the Money Market Division
on that date will be applied under the Fixed Benefit Life Income Option and
the Cash Value of the amount the Annuitant has in the Stock Division on
that date will be applied under the Variable Benefit Life Income Option of
the Optional Modes of Settlement provision to provide a monthly annuity
payable for 10 years certain and thereafter for the remaining lifetime of
the Annuitant.
14. With respect to Page Eight of the Contract, the first sentence in the
section entitled FIXED BENEFIT OPTIONS is replaced by the following:
Payments under the Fixed Benefit Options will not be affected by the
investment experience of an Investment Division after proceeds are applied
under such options.
15. With respect to Page Eight of the Contract, the first paragraph in the
section entitled VARIABLE BENEFIT OPTIONS is replaced by the following:
Under Options D and E the amount of the initial monthly installment will be
determined by the Table of Initial Installments on page eleven, except that
a higher initial installment, as determined by Equitable, may be payable.
The amount of the second and third monthly installments will be the same as
the amount of the initial monthly installment. The amount of the fourth or
any subsequent monthly installment will be the number of Annuity Units
multiplied by the Average Annuity Unit Value for the second calendar month
S 17060T Rev. 10/87 Unit Investment Trust Endorsement
Page 4
<PAGE>
immediately preceding the due date of the installment. The number of
Annuity Units is equal to the amount of the first installment divided by
the Annuity Unit Value for the due date of the first installment. The
fourth and subsequent monthly installments may increase or decrease in
amount, depending on the investment experience of the Stock Division.
Installments under a Variable Benefit Option will not be increased or
decreased in amount because of mortality or expense experience.
16. With respect to the last page of the Contract, the last six sentences are
replaced by the following:
Deferred Life Annuity, 10 Years Certain, On a Fixed or Variable or
Combination Fixed and Variable Basis, Death Benefit Before Retirement Date.
Premiums payable Until Retirement Date or Until Prior Death. Cash Value
Based on Stock Division or Money Market Division of the Separate Account or
Both. Non-participating. THE CASH VALUE AND VARIABLE ANNUITY PAYMENTS MAY
INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
17. All other references in the Contract to "Separate Account A", "Separate
Account E" or "Separate Account" are changed to "the Stock Division", "the
Money Market Division" or "Investment Division", respectively.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
By SPECIMEN By SPECIMEN
---------------------------------- -------------------------------------
President Vice President and Secretary
Date of Issue
-----------------------
S 17060T Rev. 10/87 Unit Investment Trust Endorsement
Page 5
Annuitant: JOHN DOE
Contract Number: 00 000 000
Issue Date: FEB 28, 1992
Contract Date: FEB 28, 1992
Retirement Date: JAN 1, 2020
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O. New York,
New York 10116
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division of the Separate Account (referred to
in this Contract as the "Investment Divisions") or to the Guaranteed Interest
Division, in accordance with Sections 2.02, 2.03 and 2.04, as directed by the
Owner, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide you with
an Annuity Benefit or a Cash Value if you are then living, and
o TO PROVIDE the Owner with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract, "we", "our" and "us" mean The
Equitable Life Assurance Society of the United States. "You" and "your" mean the
Annuitant, with respect to a right exercised by the Owner on behalf of the
Annuitant.
TEN DAYS TO EXAMINE CONTRACT--The Owner may cancel this Contract by returning it
to us within ten days after receipt of it. Upon such cancellation, we will
refund any Contribution made to us under this Contract.
/s/ Molly K. Heines /s/ Richard H. Jenrette
Vice President and Secretary Chairman of the Board
and Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASED RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.24 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISKS, EXPENSES AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92CTRA
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
DEFINITIONS Page
Section 1.01 - Annuitant..........................................4
1.02 - Annuity............................................4
1.03 - Annuity Account Value..............................4
1.04 - Annuity Benefit....................................4
1.05 - Cash Value.........................................4
1.06 - Class of Contracts.................................4
1.07 - Code...............................................4
1.08 - Contract Date......................................4
1.09 - Contract Year......................................4
1.10 - Contribution.......................................4
1.11 - Divisions..........................................4
1.12 - Eligible Annuity Certain...........................5
1.13 - Employer...........................................5
1.14 - Guaranteed Interest Rate...........................5
1.15 - Joint and Survivor Life
Annuity Form....................................5
1.16 - Life Annuity Form..................................5
1.17 - Normal Form........................................5
1.18 - Owner..............................................5
1.19 - Period Certain Annuity.............................5
1.20 - Plan...............................................5
1.21 - Processing Office..................................5
1.22 - Retirement Date....................................5
1.23 - Separate Account...................................5
1.24 - Separate Account Definitions.......................6
1.25 - Transaction Date...................................7
1.26 - Trust..............................................7
1.27 - Trustee............................................7
1.28 - Trusteed Plan......................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions......................................7
2.02 - Separate Account Investment
Divisions.......................................7
2.03 - Guaranteed Interest Division.......................8
2.04 - Allocation to Divisions............................8
2.05 - Transfers Among Divisions..........................8
2.06 - Termination of this Contract.......................8
2.07 - Partial Withdrawals................................9
2.08 - Charges for Partial Withdrawals....................9
2.09 - Free Corridor Amount...............................9
2.10 - Loans.............................................10
2.11 - Annual Administrative Charge......................11
2.12 - Death Benefit.....................................11
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit.............................12
3.02 - Variable Annuity Benefit..........................12
3.03 - Election and Commencement
of Annuity Benefits............................12
3.04 - Amount of Annuity Benefits........................13
3.05 - Payment of Annuity Benefits.......................13
3.06 - Special Annuity and Spousal
Consent Provisions.............................16
GENERAL PROVISIONS
Section 4.01 - Contract..........................................16
4.02 - Statutory Compliance..............................16
4.03 - Assignments and
Nontransferability................................17
4.04 - Beneficiary.......................................17
4.05 - Disqualification..................................17
4.06 - Future Contributions..............................17
4.07 - Deferment.........................................17
4.08 - Annual Notice.....................................17
4.09 - Trustee's Responsibility..........................17
4.10 - Age...............................................18
No. 92CTRA Page 2
<PAGE>
OWNER: TRUSTEES OF THE ABC PLAN
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 000 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28, 1992
RETIREMENT DATE: JAN 1, 2020
INITIAL GUARANTEED INTEREST RATE: 7.50% TO MAR 31, 1992
MINIMUM GUARANTEED INTEREST RATE: 6.00% TO DEC 31, 1992
3.00% AFTER DEC 31, 1992
BENEFICIARY: JANE DOE
FORM NUMBER: 92CTRA
********************************************************************************
TABLE OF GUARANTEED VALUES
ISSUE AGE 38 MALE $1,000 ANNUAL CONTRIBUTION
NUMBER OF YEARS GUARANTEED GUARANTEED PAID-UP MONTHLY
SINCE FIRST CONTRIBUTION CASH VALUE ANNUITY AT AGE 65
- -------------------------- ---------- -------------------------
1 983 6.62
2 1,958 16.20
3 2,963 26.67
4 3,998 36.83
5 5,064 46.70
6 6,162 56.28
7 7,349 65.58
8 8,580 74.61
9 9,848 83.38
10 11,154 91.89
11 12,500 100.16
12 13,886 108.18
13 15,313 115.97
14 16,783 123.53
15 18,298 131.18
16 19,857 138.63
17 21,464 145.90
18 23,118 152.80
19 24,853 159.69
20 26,639 166.03
24 (Age 62) 34,697 189.57
27 (Age 65) 41,098 205.49
THE TABLES ILLUSTRATE MINIMUM GUARANTEED VALUES AND ASSUME A HYPOTHETICAL $1,000
CONTRIBUTION MADE ANNUALLY ON THE FIRST OF THE MONTH FOLLOWING THE CONTRACT
DATE. THE GUARANTEED CASH VALUE TABLE REFLECTS AN ANNUAL ADMINISTRATIVE CHARGE
(SEE SECTION 2.11) AND A WITHDRAWAL CHARGE OF UP TO 6% OF THE CONTRIBUTIONS MADE
IN THE CURRENT AND 5 PRIOR CONTRACT YEARS (SEE SECTION 1.05). THE TABLES ASSUME
THAT 100% OF ALL CONTRIBUTIONS AND EARNINGS ARE ALLOCATED TO AND REMAIN IN THE
GUARANTEED INTEREST DIVISION.
YOUR ACTUAL GUARANTEED VALUES MAY DIFFER FROM THOSE SHOWN ABOVE, DEPENDING ON
THE LEVEL AND FREQUENCY OF YOUR CONTRIBUTIONS.
THE GUARANTEED PAID-UP MONTHLY ANNUITY SHOWN ABOVE WILL BE REDUCED BY ANY CHARGE
WE MAKE FOR ANY APPLICABLE TAXES (SEE SECTION 3.04). OTHER FORMS OF ANNUITY
BENEFITS MAY BE AVAILABLE; HOWEVER, ANY ANNUITY BENEFIT CONTRACT ELECTED AS A
SETTLEMENT WILL BE SUBJECT TO A CHARGE (SEE SECTION 3.04).
* ASSUMES FIXED BENEFIT JOINT AND SURVIVOR LIFE ANNUITY (100% CONTINUATION TO
SURVIVOR) WITH JOINT ANNUITANT THE SAME AGE AS THE ANNUITANT.
No. 92CTRA Page 3
<PAGE>
- --------------------------------------------------------------------------------
PART I - DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means the individual shown on Page
3 of this Contract for whom this Contract has been purchased.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the terms of a Plan.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts in the Guaranteed Interest Division, and the Investment
Divisions of the Separate Account pursuant to Sections 2.02 and 2.03 and any
loan reserve provision, described in Section 2.10.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract. Various Sections of this
Contract (Sections 1.15, 1.16, 1.17, 3.01 and 3.02) refer to "monthly payments"
to be made under an Annuity Benefit. The Owner may wish to have your Annuity
Benefit paid at other intervals, such as quarterly, semi-annually, or annually,
instead of monthly. The Owner may elect this at the time the Annuity Benefit
form is elected as described in Section 3.03; in that event, all references in
this Contract to "monthly payments" will be deemed to mean payments at the
frequency you elect subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means an amount equal to the
greater of (i) or (ii), less any outstanding loan, where
(i) is the Annuity Account Value less 6% of the Contributions made during the
current and five prior Contract Years, which had not been previously
withdrawn pursuant to Section 2.07, and
(ii) is the sum of (a) the Free Corridor Amount as defined in Section 2.09 and
(b) 94% of the Annuity Account Value less the Free Corridor Amount.
NO WITHDRAWAL CHARGE: If you have attained the age of 59 years and 6 months, the
term "Cash Value" means an amount equal to he Annuity Account Value for
withdrawals due to retirement or termination of employment. Your retirement or
termination of employment must be verified by the Trustee. Such verification
should be in the form of a statement signed by the Trustee and accompanying the
request for withdrawal. The request for withdrawal must be signed by both you
and the Trustee. The withdrawal charge will be imposed if this verification is
not received at our Processing Office together with the withdrawal request.
However, if the Annuitant is age 60 or older on the Contract Date and it is
Contract Year 5, item (ii)(b) above will be 95% of the Annuity Account Value
less the Free Corridor Amount.
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year. The term "Contract"
means this Contract.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
now or hereafter amended, or any corresponding provisions of prior or subsequent
United States revenue laws.
SECTION 1.08 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.09 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.10 CONTRIBUTION. The term "Contribution" means a payment made to us on
your behalf with respect to this Contract. We are under no obligation to accept
any Contribution less than $20.00.
SECTION 1.11 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following divisions described in this
Contract:
(i) the Guaranteed Interest Division, and
(ii) the Investment Divisions of the Separate Account.
No. 92CTRA Page 4
<PAGE>
SECTION 1.12 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us which extends beyond
your attainment of age 59 years and 6 months and does not permit any prepayment
of the unpaid principal (that is, no withdrawal or single sum payment) prior to
your attainment of age 59 years and 6 months.
SECTION 1.13 EMPLOYER. The term "Employer" means the corporate employer adopting
the Plan, or any such employer that assumes in writing the obligations of the
Plan.
SECTION 1.14 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the interest that we credit at effective annual rates in the Guaranteed Interest
Division. The initial rate to apply is shown on Page 3 of this Contract. Section
2.03 describes the determination of the rate to apply thereafter.
SECTION 1.15 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected. The payments commence on the date as of which the Joint and Survivor
Life Annuity Form is purchased and terminate with the last payment due before
the death of the survivor.
SECTION 1.16 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.17 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means, (i) if you have a living spouse at your Retirement Date,
the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form
with your spouse as the contingent annuitant (with 100% of the monthly payment
continued to your spouse), and (ii) if you do not have a living spouse at your
Retirement Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.18 OWNER. The term "Owner" of the Contract is the person or entity as
stated on Page 3 of this Contract. Notwithstanding any provisions in this
Contract to the contrary, only the Owner can exercise all the rights under this
Contract while you are living. When exercising such right, the Owner does not
need the consent of anyone who has only a conditional or future ownership
interest in this Contract unless the Owner delegates rights to such person.
Under this Contract the Owner is the Trustee, defined in Section 1.27.
While you are living, the Owner of this Contract on your behalf may change the
Owner by written notice satisfactory to us. The change will take effect on the
date the Owner signs the notice, except it will not apply to any payment we make
or other actions we take before we receive the notice.
SECTION 1.19 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal, (that is, you cannot elect to receive part
of your payments as a single sum payment with the remainder paid in monthly
annuity payments).
SECTION 1.20 PLAN. The term "Plan" means a defined contribution plan adopted by
the Employer that is intended to meet the requirements for qualification under
Section 401(a) of the Code.
SECTION 1.21 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P.O. Box 2996, G.P.O., New York, New York 10116, or
such other location as we shall designate by advance written notice to the
Owner, the Employer or the Plan's trustee, as applicable, and to you.
SECTION 1.22 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain the retirement age as shown on Page 3 of this Contract. Before the
Retirement Date an election may be made to change the Retirement Date to another
Retirement Date permitted under the Plan, which may be any date after the filing
of the election other than the 29th, 30th or 31st day of any month. The
Retirement Date selected, either initially, or by later change, must be in
accordance with the terms of the Plan. No Retirement Date shall be later than
the date you attain age 70 years and 6 months. Any election for such change must
be made in writing by you and shall not take effect until received by us at our
Processing Office.
SECTION 1.23 SEPARATE ACCOUNT. The term "Separate Account" means Separate
Account A which is organized as a unit investment trust, a type of investment
company. We established the Separate Account and it is maintained in accordance
with the laws of New York State. Realized and unrealized gains and losses from
the assets of the Separate Account are credited to or charged against it without
regard to our other income, gains or losses. Assets are put in the Separate
Account to support this Contract and other variable annuity contracts and
No. 92CTRA Page 5
<PAGE>
certificates. Assets may be put in the Separate Account for other purposes, but
not to support contracts or policies other than variable annuities or variable
life insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust or investment company where each class (or series) represents a
separate portfolio in the Trust. We reserve the right to change the designated
trust or investment company or to add designated trusts or investment companies.
The Investment Divisions available are the Stock Division, the Money Market
Division, the Balanced Division and the Aggressive Stock Division. The
Guaranteed Interest Division is not part of the Separate Account, but rather is
an asset of our General Account.
We will value the assets of each Investment Division on each business Day. A
business day is any day on which we are open, the New York Exchange is open for
trading and there is a sufficient degree of trading in the portfolio securities
in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any of the Owner's voting rights as to the Separate
Account;
(iv) operate the Separate Account by making direct investments, or in any other
form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to, or
remove Investment Divisions (or sub-divisions of Investment Divisions)
from the Separate Account (the term "Investment Division" in this Contract
shall then refer to any other Investment Division in which the assets, of
a class of contracts to which this Contract belongs, were placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
class of contracts to which this contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, the Owner and you will be notified of
such exercise, as required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for applicable tax
charge) at a rate not to exceed 1.49% per year for each of the Stock, Money
Market and Balanced Divisions, and 1.34% per year for the Aggressive Stock
Division, for financial accounting, death benefits, mortality risk, expenses and
expense risk. The charge shall be made in accordance with Subsection (c) of the
Net Investment Factor provision in Section 1.24. The relative proportion of
these charges may be modified. This daily charge, plus the investment advisory
fee charges and direct operating expense charges of the Trust, shall not exceed
a total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract.
SECTION 1.24 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any consecutive preceding
nonbusiness days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
No. 92CTRA Page 6
<PAGE>
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share value
reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
any amounts allocated or withdrawn for that Valuation Period).
(c) is the daily Separate Account charge for the expenses of this Contract
times the number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is the unit which is purchased in an
Investment Division where Contributions are invested and which is used in
determining the amount in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity
Benefits as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first contribution was put into the Stock
Division, the Annuity Unit Value was at $1.26 and $1.52 for contracts with
Assumed Base Rates of Net Investment Return of 5% and 3.5% a year, respectively.
The Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit
Value for the immediately preceding Valuation Period multiplied by the Adjusted
Net Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Value for all Valuation
Periods ending in such month.
SECTION 1.25 TRANSACTION DATE. The term "Transaction Date" means the business
day we receive a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone, as
described in Section 2.05, the Transaction Date is the business day the
telephone transaction is received.
SECTION 1.26 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
SECTION 1.27 TRUSTEE. The term "Trustee" means the person or persons named as
trustee under a Trusteed Plan and such trustee's successors. Under this
Contract, the Trustee is the Owner.
SECTION 1.28 TRUSTEED PLAN. The term "Trusteed Plan" means a Plan under which
there is maintained a trust forming a part of the Plan.
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PART II - ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. The Employer or the Trustee, as applicable, is to
make Contributions from time to time on such dates and in such amounts as
determined by the Employer pursuant to the terms of the Plan. The Employer or
the Trustee is to specify the amount allocated to each Division. Each
contribution, received by us will, before its allocation under this Contract, be
reduced by the amount of any applicable tax charge as determined by us.
Contributions will be allocated to the Division in accordance with instructions
received on the application unless later changed.
Pursuant to the terms of the Plan, we will accept rollover contributions and
transfers made on your behalf from a plan qualified under 401(a) of the Code or
from a conduit individual retirement arrangement as described in Section 408 of
the Code.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to, or withdrawn or transferred from, an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing
No. 92CTRA Page 7
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said amount by the Accumulation Unit Value for the appropriate Investment
Division for the Valuation Period which includes that date. The number of units
in an Investment Division on any date is equal to (i) the sum of any
Accumulation Units that have been allocated pursuant to Section 2.04 minus (ii)
the sum of any Accumulation Units that have been withdrawn pursuant to Section
2.07, 2.08, 2.10 or 2.11 or transferred from the Investment Division pursuant to
Section 2.05. The amount in an Investment Division on any date is equal to the
product of (i) the number of Accumulation Units in the Investment Division on
that date and (ii) the Accumulation Unit Value for the Investment Division for
the Valuation Period which includes that date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) Election and Commencement of Annuity Benefits pursuant to
Section 3.03, (ii) receipt of due proof of your death, or (iii) termination of
this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 or Section 2.10 plus the amount of any interest accrued
but not allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Section 2.07, 2.08, 2.10 or 2.11 or
transferred from the Guaranteed Interest Division pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date
pursuant to Section 2.04.
We will credit the amount in the Guaranteed Interest Division with interest at
effective annual rates that we determine. For each Class of Contracts we
determine a yearly guaranteed interest rate that will remain in effect
throughout the next year. We guarantee that this yearly guaranteed interest rate
will never be less than 3%.
Participation in the Guaranteed Interest Division under this Contract terminates
on the earliest of (i) Election and Commencement of Annuity Benefits pursuant to
Section 3.03, (ii) receipt of due proof of your death, or (iii) termination of
this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, as specified to us in writing. Allocation percentages must be in
whole numbers and the sum must equal 100. The allocation is made as of the
Transaction Date on which we have received both such Contribution and such
direction. Contributions made to an Investment Division purchase Accumulation
Units in that Investment Division, using the Accumulation Unit Value next
computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon termination of this Contract pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.12.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. Upon written request or through the use
of a touch tone telephone, the Owner may transfer all or part of the amounts in
a Division to one or more of the Divisions as follows: (1) amounts in the
Guaranteed Interest Division, Stock Division, Balanced Division and Aggressive
Stock Division may be transferred among such Divisions; and (2) amounts in the
Money Market Division may be transferred to other Divisions. Written
authorization for touch tone telephone initiated transfers is only required when
authorization for telephone transfers is requested. (Upon advance written notice
to the Owner, we reserve the right to discontinue the acceptance of transfer
requests through the use of a touch tone telephone.) All transfers will be made
on the Transaction Date and will be subject to our rules in effect at the time
of transfer. With respect to the Investment Divisions, the transfer will be made
at the Accumulation Unit Value next computed after the Transaction Date. No
transfers are permitted to the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. Subject to any restrictions under the
terms of the Plan, including the spousal consent rules set forth in Section
3.06, the Owner may elect by written notice to terminate this Contract. We will
determine the Cash Value of this Contract as of the Transaction Date.
If this Contract is terminated, surrendered or exchanged prior to the Retirement
Date, any applicable tax charges we have paid may be deducted. If we have
previously deducted charges for applicable taxes from Contributions pursuant to
Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
this Contract.
The payment of such Cash Value may be deferred by us in accordance with the
provisions of Section 4.07.
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Subject to the terms of the Plan, we reserve the right to pay the Annuity
Account Value less any outstanding loan under this Contract and terminate this
Contract if (i) no Contributions are made on your behalf during the last three
completed Contract Years, and the Annuity Account Value is less than $500 or
(ii) a partial withdrawal is made that would result in your Annuity Account
Value falling below $500. We reserve the right to terminate this Contract if no
contributions have been made within 120 days of the Contract Date.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions under this Contract and the Annuity Account Value
with respect to this Contract shall be zero. We will be released from any and
all liability for payments with respect to the Contributions from which the
Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any restrictions under the terms of
the Plan, the Owner may elect, by written notice to us, to make a partial
withdrawal from the Divisions. Partial withdrawals are subject to the spousal
consent rules set forth in Section 3.06.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to the Owner (or such other person designated by
the Owner to us in advance via written instructions). The amount paid plus any
withdrawal charge applicable pursuant to Section 2.08 will be withdrawn from the
amounts in the Divisions. Unless instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise the Owner and reserve the right to pay the
Annuity Account Value less any outstanding loan, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS. There will be no partial
withdrawal charge if the amount of the partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.09.
However, if the amount of partial withdrawal requested is greater than the Free
Corridor Amount, we will (i) first withdraw from the Divisions an amount equal
to the excess of the amount requested over the Free Corridor Amount, and (ii)
then withdraw an amount equal to the excess of the amount requested over the
Free Corridor Amount, plus a withdrawal charge, if applicable. Such withdrawal
charge will be calculated in the following manner:
(a) Withdrawals of Contributions made on your behalf during the current and
five prior Contract Years will be subject to a charge of 6% of the amount
withdrawn (including such charge).
(b) Withdrawals of other amounts will not be subject to any withdrawal charges.
For purposes of determining withdrawal charges described in this Section,
amounts withdrawn up to the Free Corridor Amount will not be considered a
withdrawal of any Contributions. Any excess withdrawals, i.e. those pursuant to
item (ii) above, shall be considered withdrawals of Contributions in the order
received, with the older Contributions first.
With respect to partial withdrawals requested by the Owner, there will be no
partial withdrawal charge if (i) you have completed at least 5 Contract Years
and you have attained the age of 59 years and 6 months or (ii) you have attained
age 59 years and 6 months and have retired or terminated employment. Your
retirement or termination of employment must be verified by the Trustee. Such
verification should be in the form of a statement signed by the Trustee and
accompanying the request for withdrawal. The request for withdrawal must be
signed by both you and the Trustee. The partial withdrawal charge will be
imposed if this verification is not received at our Processing Office together
with the withdrawal request.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to this Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means an
amount equal to the excess, if any, of (i) 10% of the Annuity Account Value on
the Transaction Date over (ii) cumulative prior withdrawals made pursuant to
Section 2.07 in the current Contract Year.
No. 92CTRA Page 9
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SECTION 2.10 LOANS. Unless otherwise restricted by the Plan, or the Code, the
Owner may get a loan under this Contract on your behalf before the Election and
Commencement of Annuity Benefits, if an agreement between the Owner and us
relating to such loan ("Trustee Agreement") has been executed and is in effect
on the "Loan Effective Date", as defined below. Plan loans are subject to the
spousal consent rules set forth in Section 3.06. Future restrictions in the Code
may require revision or withdrawal of the loan provisions as provided below. The
Annuity Account Value (including the loan reserve account as described below)
will be the sole security for the loan.
If your loan agreement and application form ("Loan Agreement") is properly
completed and signed by you, approved by the Owner, accepted by us and received
at the Processing Office by the 15th of the month, the loan is effective on the
first day of the following month. If your Loan Agreement is properly completed
and signed by you, approved by the Owner, accepted by us and received at the
Processing Office after the 15th of the month, the loan is effective on the
first day of the second month following.
The Owner may establish a reasonable interest rate for the loan provided that
such rate is not (1) less than an effective annual rate of 6% or (2) greater
than the maximum rate permitted by applicable laws.
Beginning the first day of the third month following the effective date of the
loan and quarterly on the first day of the month thereafter, loan repayments
must be made to us. Loan requests shall be amortized in substantially level
payments over the term of the loan. If the effective annual rate of the loan is
6%, such repayments will be equal to the sum of (a) and (b) where
(a) is the loan interest, calculated at an effective annual rate of 6%; and
(b) is an amortized portion of the loan principal.
If the effective annual rate of the loan is greater than 6%, such payments will
be equal to the sum of (a), (b) and (c) where
(a) is the loan interest, calculated at an effective annual rate of 6%,
(b) is an amortized portion of the loan principal, and
(c) is the loan interest, calculated at the effective annual rate determined by
the Owner less the loan interest calculated at an effective annual rate of
6% ("Excess Interest").
Any Excess Interest received by us will be allocated among the Divisions in
accordance with Section 2.04 and may be withdrawn, transferred or annuitized as
described in this Contract.
By each due date, if the amount of the loan payment is less than the amortized
loan interest and principal due calculated at an effective annual rate of 6% or
the loan repayment is not received at our Processing Office, we will deduct and
treat as a partial withdrawal from the loan reserve account an amount equal to
the amortized interest and principal payments due plus any applicable withdrawal
charges and any required income tax withholding. Specifically, an amount equal
to the principal payment will be deducted from the portion of the loan reserve
account which earns interest at an effective annual rate of 4%, and an amount
equal to the interest payment, calculated at the effective annual rate of 6%,
plus any applicable withdrawal charges and required income tax withholding will
be deducted from the portion of the loan reserve account which earns interest at
the Guaranteed Interest Rate.
Amounts deducted, if the amount of the loan repayment is less than the amount
due or the loan payment is not received at our Processing Office, may be
reportable to the IRS and other appropriate government authorities as taxable
distributions. In addition, you may be subject to a 10% penalty tax on the
taxable portion of the amounts deducted.
The amount of the loan may not be more than 50% of the Annuity Account Value. In
no event shall the loan amount exceed $50,000 less the highest outstanding
balance under this Contract during the one year period ending the day before the
effective date of the loan. The minimum loan permitted is $1,000. For this
purpose, the Annuity Account Value is taken as of the Loan Effective Date. Only
one outstanding loan is permitted at a time under this Contract. As a condition
for granting a loan, we will require you to represent that the loan amount
requested, when aggregated with loans (principal plus interest) from all
qualified plans of your Employer, does not exceed 50% of the value of your
nonforfeitable accrued benefits, and in no event exceeds $50,000 less the
highest outstanding balance of all loans from qualified plans during the one
year period ending on the day before the effective date of the loan. The
provisions of this Contract require spousal consent in order to receive a loan
if you are married.
No. 92CTRA Page 10
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The loan term will be either (i) ten years, if you represent that the purpose of
the loan is to acquire, build or substantially rehabilitate a dwelling unit
which, within a reasonable period of time, is to be used as your principal
residence or (ii) five years. In any event, the loan term may not extend beyond
the earlier of
(i) the Election and Commencement of Annuity Benefits pursuant to Section
3.03,
(ii) the date we receive written notice to terminate this Contract pursuant to
Section 2.06,
(iii) the date we pay a death benefit pursuant to Section 2.12, and
(iv) any date provided for such loans by future Federal tax rules including
acceleration of the loan repayment in order that the operation of the
loan provisions do not adversely affect the tax treatment of this
Contract.
Future Federal tax rules may also impose certain additional requirements to
obtain the ten year loan period described above which may apply to existing ten
year loans.
On the Loan Effective Date, we will transfer to a loan reserve account an amount
equal to the sum of (i) the loan amount, which will earn interest at the
effective annual rate of 4% during the loan term and (ii) 25% of the loan
amount, which will earn interest at the Guaranteed Interest Rate, as defined in
this Contract. With the Owner's approval you may specify from which Divisions
these amounts are to be transferred. In the absence of direction from the Owner,
or if your directions cover only part of the amount required to be transferred
to the loan reserve account, we will transfer the required (or additional
required) amounts from each Division in proportion to the amount that you have
in such Division. On the first day of the third month following the effective
date of the loan and quarterly thereafter (or first business day thereafter, if
such day is not a business day), the amount of interest earned at 4% annually
during the prior quarter will be transferred to the portion of the loan reserve
account that earns interest at the Guaranteed Interest Rate.
The loan must be repaid in part on each quarterly due date and may be repaid in
full at any time on or after the first loan anniversary and must include the
full interest due. Any payments received will first be applied to interest due,
with the balance applied towards repayment of the loan. Any partial loan
repayment will result in a transfer of the amount equal to the principal repaid
from (i) the portion of the loan reserve account that earns interest at the
effective annual rate of 4% to (ii) the Guaranteed Interest Division and may be
withdrawn, transferred or annuitized as described in this Contract.
Partial withdrawals or transfers may not be made from the loan reserve account.
Upon full repayment of the loan, any amounts remaining in the loan reserve
account will be transferred to the Guaranteed Interest Division and may be
withdrawn, transferred or annuitized as described in this Contract.
Upon termination of this Contract pursuant to Section 2.06 or 2.12 or
annuitization pursuant to Section 3.04 prior to the full repayment of the loan,
the loan reserve account shall be zero.
SECTION 2.11 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $25,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts in the Divisions.
For this purpose, any loan reserve account is included within the Guaranteed
Interest Division. The portion of the charge attributable to the Guaranteed
Interest Division and any loan reserve account will be first withdrawn from the
Guaranteed Interest Division and then, if the amount in the Guaranteed Interest
Division is not sufficient, the remaining allocation will be withdrawn from the
portion of the loan reserve account that earns interest at the Guaranteed
Interest Rate.
If the Annuity Account Value is less than $25,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of this Contract pursuant to Section 2.06 or
2.12, we will prorate the Annual Administrative Charge applicable to the
completed portion of the current Contract Year and withdraw such amount in lieu
of the Annual Administrative Charge described in this Section for the applicable
part of that Contract Year.
If the Annuity Account Value is $25,000 or greater at the end of a Contract
Year, the Annual Administrative charge is zero.
SECTION 2.12 DEATH BENEFIT. If we ascertain that you have died while you have
amounts in the Divisions, we will, upon receipt of due proof of your death, and
subject to the terms of the Plan including the spousal survivor benefit rules
set forth in Section 3.06, pay to the beneficiary designated to receive such
payment under Section 4.04 of this Contract, the death benefit payable.
If the beneficiary under this Contract is the Trustee, the Trustee may, subject
to the terms of the Plan, change the beneficiary within 31 days after we receive
due proof of your death. The change shall be made in the same manner and subject
to the same provisions as apply to a change of beneficiary during your lifetime.
No. 92CTRA Page 11
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If the Trustee changes the beneficiary of this Contract after your death
according to the terms of the Plan, the Trustee may elect an Annuity Benefit on
any annuity form offered by us or one of our affiliated or subsidiary life
insurance companies, subject to our rules then in effect, for the benefit of the
beneficiary. The beneficiary may not revoke or change any election made by the
Trustee. If the Trustee does not make an election, the beneficiary may make such
election for the beneficiary's own benefit. Any election of an Annuity Benefit
must meet the minimum distribution requirements as described in Section 3.05.
If the beneficiary under this Contract is not the Trustee, and you are married
at the time of your death, we will pay the death benefit under this Contract to
your spouse in the form of a Life Annuity, unless your spouse makes an election
for a single sum payment or for an Annuity Benefit on any other annuity form
offered by us, subject to our rules then in effect. Any election of an Annuity
Benefit must meet the minimum distribution requirements as described in Section
3.05.
The amount of the death benefit is equal to the greater of (i) the Annuity
Account Value less any outstanding loan and (ii) the minimum death benefit. Such
minimum death benefit is the sum of all Contributions made pursuant to Section
2.01 (before reduction for any applicable tax charge) less any outstanding loan
and less any withdrawals made pursuant to Section 2.07. Any such withdrawal will
reduce the minimum death benefit (as adjusted by any previous such withdrawal)
by an amount which is in the same proportion as the amount being withdrawn is to
the Annuity Account Value.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value shall be zero. We will be released from any and all
liability from which the Annuity Account Value arose.
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PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of Net
Investment Return referred to in Section 1.24 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.23, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounting, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the terms of this Contract with respect to a payee is the
monthly amount provided with respect to a payee pursuant to the fourth paragraph
of Section 3.04. The amount of the fourth and each subsequent payment under a
Variable Annuity Benefit will be equal to the number of Annuity Units with
respect to such benefit, multiplied by the Average Annuity Unit Value for the
second calendar month immediately preceding the due date of the payment. The
number of Annuity Units with respect to a benefit is the number determined by
dividing the amount of the first monthly payment under such benefit by the
Annuity Unit Value for the Valuation Period which includes the due date of the
first monthly payment. (As described in Section 3.05, we will notify the payee
how each Variable Annuity payment is determined.)
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. Subject to the terms
of the Plan, including the spousal consent and survivor rules described in
Section 3.06, as of your Retirement Date, provided you are then living, the
Annuity Account Value less any outstanding loan shall be applied to provide the
Normal Form of Annuity Benefit, unless an election is made (i) to receive the
Cash Value of this Contract in a single sum, (ii) to apply the Annuity Account
Value, (less any outstanding loan as set forth in Section 2.10) or Cash Value,
whichever is applicable pursuant to the first paragraph of Section 3.04, to
provide an Annuity Benefit on any other form offered by us or one of our
affiliated or subsidiary life insurance companies, or (iii) to take partial
withdrawals in amounts and at times as required by the minimum distribution
rules of Section 401(a)(9) of the Code and applicable Treasury Regulations,
pursuant to Section 3.05, subject to our rules then in effect and any other
applicable requirements under the Code.
No. 92CTRA Page 12
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We will provide notice and election forms to the Owner not more than six months
before your Retirement Date.
If an election is made to terminate this Contract pursuant to Section 2.06, an
election may be made to receive an Annuity Benefit in lieu of the Cash Value.
We will have the right to require pertinent information to provide an Annuity
Benefit, and will be fully protected in relying on such information and need not
inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If, pursuant to the first or third
paragraph of Section 3.03, an election is made to receive an Annuity Benefit in
lieu of the Cash Value, the amount applied to provide the Annuity Benefit will
be (i) the Annuity Account Value less any outstanding loan if the annuity form
elected involves life contingencies or (ii) the Cash Value if the annuity form
elected does not involve life contingencies.
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charges from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to this Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your Contract will be governed by our
supplementary contract then in effect.
The amount to be applied to provide an Annuity Benefit will, in addition to any
tax charge reduction, be reduced by an administrative charge. The amount of such
charge will be determined from time to time in accordance with our general
practices applicable on a uniform basis to all contracts of the same type as
this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts in
the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated, on the Joint and Survivor Life Annuity Form (with 100%
of the amount of your payment continued to your spouse). The amount of income
provided under the Fixed Annuity Benefit payable on the Joint and Survivor Life
Annuity Form, is based on 3.5% interest and the 1983 Individual Annuity
Mortality Table "a" adjusted to a unisex basis based on a 50-50 split of males
and females at age zero. The amounts of income initially provided under the
Variable Annuity Benefit payable on the Life Annuity Form are based on a 50-50
split of males and females at age zero and an Assumed Base Rate of Net
Investment Return of 3.5% or 5%, whichever applies pursuant to Section 1.24.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us on 3.5% interest and the 1983 Individual Annuity Mortality
Table "a" adjusted to a unisex basis based on a 50-50 split of males and females
at age zero if such annuity form provides for a Fixed Annuity Benefit, and on
the projected 1983 Basic Table "a" adjusted to a unisex basis based on a 50-50
split of males and females at age zero and an Assumed Base Rate of Net
Investment Income Return of 5% or 3.5%, whichever applies pursuant to Section
1.24, if such annuity form provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Your entire interest in this Contract
will be distributed or begin to be distributed, in accordance with Section
401(a)(9) of the Code and the applicable Treasury Regulations thereunder, no
later than the first day of April following the calendar year in which you
attain age 70 years and 6 months ("Required Beginning Date") or such later date
as specified in such Section or regulations. Your entire interest may be
distributed, as you elect, over (a) your life, or the lives of you and your
designated beneficiary, or (b) a period certain not extending beyond your life
expectancy, or the joint and last survivor expectancy of you and your designated
beneficiary. Distributions must be made in periodic payments at intervals of no
longer than one year. In addition, payments must be either nonincreasing or they
may increase only as provided in Q & A F-3 of Section 1.401(a)(9)-1 of the
Proposed Treasury Regulations, or any successor Regulation thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental death
benefit requirements of Section 401(a)(9)(G) of the Code, and applicable
Treasury Regulations, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
No. 92CTRA Page 13
<PAGE>
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Table V and VI of Treasury Regulation Section 1.72-9. Unless
you otherwise elect prior to the time distributions are required to begin, those
life expectancies shall be recalculated annually. Such election shall be
irrevocable and shall apply to all subsequent years. The life expectancy of a
non-spouse beneficiary may not be recalculated. Instead, life expectancy will be
calculated using the attained age of such beneficiary during the calendar year
in which you attain age 70 years and 6 months, and payments for subsequent years
shall be calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy was
first calculated.
If you die after distribution of your interest described in this Contract has
begun, the remaining portion of such interest will continue to be distributed as
rapidly as under the method of distribution being used prior to your death.
If you die before distribution of your interest begins, distribution of your
entire interest shall be completed no later than December 31 of the calendar
year containing the fifth anniversary of your death, except to the extent that
an election is made to receive death benefit distributions in accordance with
(1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then your entire
interest may be distributed over the life of, or over a period certain not
greater than the life expectancy of, the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar year
immediately following the calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date
distributions that are required to begin in accordance with (1) above shall
not be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of your death or (B) December 31 of
the calendar year in which you would have attained age 70 years and 6
months.
For purposes of determining the "period certain" referred to in the
immediately preceding paragraph, life expectancy is computed by use of the
expected return multiples in Tables V and VI of Treasury Regulation Section
1.72-9. For purposes of distributions beginning after your death, unless
otherwise elected by the surviving spouse by the time distributions are
required to begin, life expectancies shall be recalculated annually. Such
election shall be irrevocable by the surviving spouse and shall apply to
all subsequent years. In the case of any other designated beneficiary, life
expectancies shall be calculated using the attained age of such beneficiary
during the calendar year in which distributions are required to begin
pursuant to this Section, and payments for any subsequent calendar year
shall be calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy was
first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under the terms of this Contract was based on information
that is subsequently found to be incorrect, benefits will not be invalidated,
but an adjustment on the basis of the correct information will be made in the
amount of the benefit payments, or any amount used to provide the benefit, or
any combination thereof. Overpayments by us will be charged against and
underpayments will be added to any payments thereafter falling due under the
terms of this Contract with respect to a payee, affecting as many such payments
as are necessary to correct the overpayment or underpayment. Our liability with
respect to a payee is limited to the correct information and the actual amounts
used to provide the benefits then in force with respect to the payee under this
Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii) another person or an
institution is then maintaining or has custody of such payee, and (iii) no
guardian, committee, or other representative of the estate of such payee has
been appointed, we may, unless the Plan provides to the contrary, make the
payments (in the case of a minor, at a rate not exceeding $200 a month) to such
other person or institution, and will thereupon be fully discharged from all
liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
No. 92CTRA Page 14
<PAGE>
Upon an election, pursuant to Section 3.03, of an annuity form providing
payments for a period certain, such Owner may designate (in accordance with the
terms of the Plan and with the right to change such designation in accordance
with the terms of the Plan) a payee to receive any payments that may become due
after the death of the person or persons upon whose life or lives the income may
depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person unless the Plan provides to the contrary) a
person or persons to receive any payments or installments payable after such
payee's death, if the absence of such a designation would result in a single sum
payment to such payee's estate in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments. The commuted value of any such remaining payments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT
AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- ----------------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE
ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- -------------------------------------------------------------
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
INVESTMENT RETURN IS
Age 3.5% 5%
- -------------------------------------------------------------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
- -------------------------------------------------------------
We will, with respect to each payment under a Variable Annuity Benefit, notify
the payee of the number of Annuity Units and the Average Annuity Unit Value used
in determining the amount of each variable payment. Such notice will be mailed
with each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary as
described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
No. 92CTRA Page 15
<PAGE>
SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS. If you are married,
your interest in this Contract shall be paid in the Normal Form joint and
survivor annuity, and if you are unmarried, your interest shall be paid in the
Normal Form life annuity, unless you elect otherwise as described in this
Section. If you are married and die before payment of your interest has
commenced, your interest shall be paid to your surviving spouse in the form of a
life annuity, unless at the time of your death there was a contrary election
made pursuant to this Section. The foregoing notwithstanding, your surviving
spouse may elect, before payment is to commence, to have payment made in any
form permitted under the terms of this Contract.
You may elect, at any time within the 90 consecutive day period before the first
day of the first period for which your interest is paid as an annuity or in any
other form, not to have your interest paid in the Normal Form in which case it
shall be paid in any other form elected under the terms of this Contract. If
such interest is to be paid to your spouse upon your death, you may elect,
during the period beginning on the first day of the plan year of the Plan in
which you attain age 35 (or, if you separate from service prior to that plan
year, beginning on the date of separation) and ending with your death, for a
beneficiary other than your spouse to receive payment of the value of your
interest. In addition, if you will not yet attain age 35 by the end of any
current plan year, you may make a special qualified election to designate a
beneficiary other than your spouse to receive payment of the value of your
interest. Such special qualified election shall be effective for the period
beginning on the date of such election and ending on the first day of the plan
year in which you will attain age 35. Amounts payable in accordance with this
Section will be automatically reinstated as of the first day of the plan year in
which you attain age 35 unless a new election designating a beneficiary other
than the spouse is made in accordance with the requirements of this Section.
Any election described in the foregoing paragraph must be consented to by your
spouse in writing before a notary public or a representative of the Plan, unless
you can prove that there is no spouse or that the spouse cannot be located.
Also, if you have become legally separated from your spouse or have been
abandoned (within the meaning of local law) and have a court order to such
effect, spousal consent is not required unless a qualified domestic relations
order provides otherwise. Your election must designate a specific beneficiary
(including any class of beneficiaries or any contingent beneficiaries) that may
not be changed without further consent of the spouse, unless the spouse's
consent expressly permits designation by you without further consent of the
spouse. The spouse's consent under this Section shall acknowledge the effect of
the election. In addition, the spouse's consent (or the establishment that the
consent of the spouse may not be obtained) shall only be valid with respect to
such spouse. Your waiver of the Normal Form joint and survivor annuity shall not
be effective unless the election designates a form of benefit payment which may
not be changed without spousal consent (or the spouse expressly permits
designations by you without any further spousal consent). A consent that permits
designations by you without any requirement of further consent by such spouse
must acknowledge that the spouse has the right to limit consent to a specific
beneficiary, and a specific form of benefit where applicable, and that the
spouse voluntarily elects to relinquish either or both of such rights. If you
make an election under this Section you may revoke that election, without
spousal consent, at any time before the first day of the first period for which
an amount is paid as an annuity or in any other form.
The provision requiring spousal consent in this Section shall also apply with
regard to your election to terminate this Contract or make partial withdrawals
pursuant to Sections 2.06 and 2.07 and with respect to a beneficiary designation
set forth in Section 4.04. Spousal consent, as described in this Section, is
also required in the 90 day period before a Plan loan is granted to you pursuant
to Section 2.10.
If the Annuity Account Value applied to provide the spousal benefits on the date
payment is to commence is in the aggregate less than $3,500, we may choose to
make payment in a single sum rather than in the form of a Qualified Joint and
Survivor Annuity or Life Annuity as described herein. Upon any payment made
pursuant to this Section, we will be released from any and all liability for
payment with respect to the Contributions made for you.
- -------------------------------------------------------------------------------
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the terms of this Contract alone will govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between the
Owner and us without the consent of any other person, provided the change does
not reduce any annuity benefit.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend the terms of
this Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall
No. 92CTRA Page 16
<PAGE>
include, but not be limited to, the right to conform this Contract to reflect
changes in the Code, applicable Treasury Regulations or in regulations or
published rulings of the Internal Revenue Service so that this Contract will
continue to be an Annuity under a qualified plan.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY. No interest of yours or of a
beneficiary under this Contract may be transferred to any person other than us
upon the surrender of this Contract. Except as permitted under Section
401(a)(13) of the Code, no right or interest of you or any other payee or
beneficiary in this Contract shall be (a) assignable; (b) subject to any lien;
or (c) liable for, or subject to, any obligation or liability of any person. The
preceding sentence shall not apply to an assignment, transfer or attachment
pursuant to a qualified domestic relations order, as defined in Section 414(p)
of the Code.
SECTION 4.04 BENEFICIARY. The Owner, as of the Contract Date, is to provide us
with an initial designation of the beneficiary entitled to receive any death
benefit payable with respect to you pursuant to Section 2.12. Subject to the
Plan and spousal consent and survivor rules of Section 3.06, you may change such
designation from time to time during your lifetime and while this Contract is in
force. If the beneficiary is the Trustee, the Trustee will have the right within
31 days of the day we receive due proof of your death and pursuant to the
provisions of the Plan, to change the beneficiary entitled to receive your death
benefits.
If the Trustee is not the beneficiary, the beneficiary will be your spouse
unless he or she has given duly witnessed written consent to the designation of
another beneficiary as described in Section 3.06, or you establish prior to your
death that he or she cannot be located. Such spousal consent must be on file
with the Trustee while this Contract is owned by the Trustee. If the Trustee is
not the Owner, such spousal consent must be presented to us with the change of
beneficiary request or with proof of your death and election of an Annuity
Benefit.
SECTION 4.05 DISQUALIFICATION. In the event that the Plan fails to qualify as a
Plan under Section 401(a) of the Code and applicable Treasury Regulations, we
reserve the right, upon receiving notice of such fact, to transfer the Annuity
Account Value under this Contract to another annuity contract issued by us on
your life, or one of our affiliated subsidiary life insurance corporations, or
to terminate this Contract and pay to the Owner the Annuity Account Value less
deduction for applicable taxes, solely at our option.
In the event that this Contract fails to qualify as an Annuity under a qualified
Plan as described in Section 1.02, we shall have the right, upon receiving
notice of such fact, to terminate this Contract and pay at the direction of the
Owner the Annuity Account Value less any outstanding loan and less a deduction
for the appropriate part attributable to the Owner of any Federal income tax
payable which would not have been payable if you had an Annuity.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to the Employer, we
reserve the right at our sole discretion to limit Contributions under this
Contract.
SECTION 4.07 DEFERMENT. Applications of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities Exchange
Commission, by order, permits us to defer payments in order to protect persons
with interests in the Investment Divisions. We can defer payment of any portion
of your Annuity Account Value in the Guaranteed Interest Division for up to six
months while you are living.
SECTION 4.08. ANNUAL NOTICE. At the end of each Contract Year, we will furnish
you with a notice showing the following:
(1) the amount in the Guaranteed Interest Division,
(2) the total number of Accumulation Units in the Stock Division, Balanced
Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Value,
(4) the amount in the Stock Division, Balanced Division, Aggressive Stock
Division and Money Market Division,
(5) the amount in the loan reserve account,
(6) the Cash Value, and
(7) the amount of death benefit.
No. 92CTRA Page 17
<PAGE>
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
After your Retirement Date, we will notify you of the number of Annuity Units
and the Average Annuity Unit Value used in determining the amount of each
Variable Annuity Benefit payment, if any.
SECTION 4.09 TRUSTEE'S RESPONSIBILITY. The Trustee shall hold this Contract on
your behalf and your beneficiaries as an asset of the trust, unless this
Contract is distributed to you pursuant to the terms of the Plan. The Trustee
shall be responsible for transferring all payment made under this Contract to
the Annuitant and the Annuitant's beneficiaries in accordance with the terms of
the Plan and the applicable provisions of the Code. We shall make no payment
hereunder without written instructions from the Trustee, and we shall be fully
discharged of any liability therefor to the extent such payments are made to and
at the direction of the Trustee.
SECTION 4.10 AGE. If your age has been misstated, any benefits will be those
which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
No. 92CTRA Page 18
<PAGE>
- -------------------------------------------------------------------------------
APPLICATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996,
New York, New York 10116-2996
QUALIFIED VARIABLE ANNUITY CONTRACT APPLICATION FOR:
EQUITABLE'S INDIVIDUAL QUALIFIED DEFERRED VARIABLE ANNUITY
- -------------------------------------------------------------------------------
1. TYPE OF PURCHASE (Complete One Plan Only)
a. | | TSA Public School (GV-PS-I)
b. | | TSA 501(c)(3) Organization (GV-501-I)
c. | | TSA University (GV-PS-U-I)
d. | | IRA Individual (including IRA to IRA transfers)
(GV-IRA 4971)
e. | | IRA Unit Billed (including IRA to IRA transfers) (GV-IRA 4971)
f. | | IRA QUALIFIED PLAN ROLLOVER--(QP IRA)
(Distribution from a Qualified Plan)
(GV-IRA 4971-71)
g. | | EDC (Public Employee Deferred Compensation (GV-EDC 4991)
h. | | EDC (Tax Exempt Organization)(GV-EDC 4991-SU-080)
i. | | SEP (Simplified Employee Pension)(GV-SEP 4981)
j. | | SARSEP (Salary Reduction SEP) ____________
k. |x| CORPORATE TRUSTEED (GV-CORP 4941-41)
l. | | KEOGH/HR-10 TRUSTEE (GV HR-10 4911-11)
(trustee owned)
m. | | Keogh/HR-10 (GV-HR-10 4911)
(not trustee owned) (issued to existing units only)
- -------------------------------------------------------------------------------
DO NOT COMPLETE THIS SECTION IF BOX 1.d OR 1.f CHECKED ABOVE
2. EMPLOYER/PLAN NAME
|A|B|C| | C|O|M|P|A|N|Y| | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | | EXISTING UNIT NO. | | | | | | | - | | |X| NEW UNIT |0|0|0|1|2|3|-|4|5|6|
(FOR NEW UNIT BILLED IRA, EDC, TSA, SEP, SARSEP,
OR TRUSTEED PLANS. FORM 983-135B IS REQUIRED.)
- -------------------------------------------------------------------------------
4. PROPOSED ANNUITANT Print name to appear on Contract.
|J|o|h|n| | | | | | | | | | | | | | | | | | |O|E | | | | | | |
First Middle Initial Last
a. |x| Mr. | | Mrs. | | Miss | | Ms. | | Other _______
b. Date of Birth: Year 1954 Month JANUARY Day 27
----- -------- ----
c. Age at Nearest Birthday: 38 d. |x| Male | | Female
------
e. Annuitant's Mailing Address: f. State of Residence: N.J.
----
No., St. |1|7| |E|L|M| |S|T|R|E|E|T| | | | | | | | | | | | |
City |A|N|Y|T|O|W|N| | | | | | | | | | | | | | | | | |
State |U|S| Zip Code |0|2|0|0|0|-|0|0|0|1|
g. Telephone Number (101) 222-3456 |x| Home | | Work
h. Social Security No. (Required): |1|2|3|-|4|5|-|6|7|8|9|
i. Are you associated with or employed by a member of National Association
of Securities Dealers, Inc. (NASD)? | | Yes |x| No
5. OWNER (Print Name) - If Trusteed or EDC Plan Print Name of Owner; for all
other Markets Print Name of Annuitant.
JOHN DOE
------------------------------------------------------------
a. Title
----------------------------------------------------
6. RETIREMENT AGE 65
--------------------------------------------
7. BENEFICIARY -- Include FULL NAME and RELATIONSHIP to Annuitant. (For Death
Benefit upon Annuitant's death before Retirement Date.) BENEFICIARY MUST BE
THE OWNER FOR EDC PURCHASES AND FOR MOST TRUSTEED PLANS.)
JANE DOE - WIFE
-----------------------------------------------------------
-----------------------------------------------------------
-----------------------------------------------------------
8. CONTRIBUTION ALLOCATION
Guaranteed Interest Division 20%
--
Stock Division 20%
--
Money Market Division 20%
--
Balanced Division 20%
--
Aggressive Stock Division 20%
--
(PERCENTAGES IN WHOLE NUMBERS) Total 100%
9. CONTRIBUTIONS (NOT REQUIRED FOR 1.F)
a. Reminder Notice (Billing) Required | | Yes |x| No
IF YES, complete b-c-d-e
b. REMINDER DATE Required for Individual IRA or
otherwise must agree with existing unit or attached
983-135B. MONTH _________ DAY _________
c. REMINDER FREQUENCY
| | Annual | |Semi-Annual
| | Quarterly | |Monthly
Available for TSA, EDC, SARSEP AND CORPORATE
TRUSTEED AND UNIT BILLED IRA ONLY:
| | Semi-Monthly | | Bi-Weekly
d. REMINDER AMOUNT $______________________
e. BILLING MONTHS TO BE EXCLUDED - TSA ONLY
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
10. EXPECTED FIRST CONTRACT YEAR
CONTRIBUTION. $ 1000
-----------
If an advanced billing and/or contract date are requested, complete #9b and
#12.
- --------------------------------------------------------------------------------
(FOR PROCESSING OFFICE USE)
Unit Name ____________________________ Reminder Date__________________________
Cert. or App# ________________________ Amendment Required_____________________
EDC Emp. Add._________________________ Emp. Fed. ID # ________________________
Frequency ____________________________ Contract Date _________________________
Receipt Date Batch # Inquiry # Processor
- --------------------------------------------------------------------------------
180-1000
<PAGE>
10. Did you receive the Separate Account Prospectus? |x|Yes | |No
Date shown on Prospectus January 1, 1992
-----------------------------
Date of any supplement to Prospectus
--------------------
11. Items (a) through (f) are to be answered by the annuitant. We are required
by the NASD to ask these questions.
(a) Name of Employer: ABC COMPANY
----------------------------------
(b) Address of Employer:
10 MAIN STREET
------------------------------------------------------
ANYTOWN, NJ
------------------------------------------------------
(c) Occupation SALES
-------------------------------------------
(d) Assuming the contract applied for will be issued, will any existing
insurance or annuity be replaced or changed (or has it been)?
| | Yes |x| No
(e) Estimated Family Annual Income $100,000
-----------------------
(f) Estimated Net Worth $250,000
-----------------------
(g) Investment Objective: | | Income |x| Income & Growth
| | Aggressive Growth | | Growth | | Safety Of Principal
12. SPECIAL INSTRUCTIONS
- --------------------------------------------------------------
- --------------------------------------------------------------
- --------------------------------------------------------------
- --------------------------------------------------------------
- --------------------------------------------------------------
13. AMOUNT PAID WITH THIS FORM: $ 1000
---------
(If a check is submitted with this request, no advanced Contract Date is
permitted.) BACKDATING IS NOT PERMITTED.
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the contract is not issued. The Contract Date
will be the date of receipt by Equitable of this application, properly
signed and completed, and Contribution at Equitable's Processing Office.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGREEMENT
All information and statements furnished in this application are true and
complete to the best of my knowledge and belief. I understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations.
IT IS UNDERSTOOD THAT THE ANNUITY ACCOUNT VALUE ATTRIBUTABLE TO ALLOCATIONS TO
THE INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT AND VARIABLE ANNUITY BENEFIT
PAYMENTS MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
UNDER THE PENALTIES OF PERJURY I (WE) CERTIFY THAT THE SOCIAL SECURITY NUMBER(S)
OR TAX IDENTIFICATION NUMBER(S) PROVIDED ON THIS FORM IS (ARE) TRUE, CORRECT AND
COMPLETE.
- --------------------------------------------------------------------------------
LAWS IN YOUR STATE MAY MAKE IT A CRIME TO FILL OUT AN INSURANCE OR
ANNUITY APPLICATION WITH INFORMATION YOU KNOW IS FALSE
OR TO LEAVE OUT MATERIAL FACTS
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X_________________________________ Date __________ City ___________ State_______
Signature of Annuitant
X_________________________________ Date __________ City ___________ State_______
Signature of Authorized Individual (REQUIRED FOR EDC AND
TRUSTEED) OR OWNER
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AGENT'S SECTION
Will any existing Insurance or annuity be replaced or changed (or has it been),
assuming the Contract will be issued? | | Yes | | No | |
| | I (we) certify that a prospectus for the Contract has been given to the
proposed Annuitant and that no written sales materials other than those approved
by The Equitable have been used.
EQUI-VEST issues must adequately reflect the commission interest of all Agents
on previous contracts.
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<S> <C> <C> <C> <C> <C> <C>
Print Agent's Name(s) Initial of Last Agent Agent Agency District Agent's
(Service Agent first) Name Number % Code Manager Code Signature
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</TABLE>
<TABLE>
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<S> <C> <C> <C> <C>
FOR AGENCY COMPLIANCE FILE: INITIALS OF AGENCY EQS ______ Date ______ District EQS ________ Date ________
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</TABLE>
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(For ASU Use)
ASU Code and App. No ________________________________
ASU Rec'd ___________________________________________
ASU Rec'd ___________________________________________
Date to Proc. Off ________________________Campaign | |
Agent(s) shown above is Equity Qualified and is licensed in the state where the
request is signed. Above Agent information verified by ASM (Registered Rep)
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Application reviewed by _________________________________
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180-1000
<PAGE>
[EQUITABLE LOGO]
Owner:
Annuitant:
Contract Number:
Issue Date:
Contract Date:
Retirement Date:
- --------------------------------------------------------------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P O Box 2996, New York,
New York 10116-2996
AGREES
o TO ALLOCATE the Contributions made to the Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division of the Separate Account (referred to
in this Contract as the "Investment Divisions")or to the Guaranteed Interest
Division, in accordance with Sections 2.02, 2.03 and 2.04, as directed by the
Owner, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide you with
an Annuity Benefit or a Cash Value benefit if you are then living, and
o TO PROVIDE the Owner with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract, "we", "our" and "us" mean The
Equitable Life Assurance Society of the United States. "You" and "your" mean the
Annuitant, with respect to a right exercised by the Owner on behalf of the
Annuitant.
TEN DAYS TO EXAMINE CONTRACT - The Owner may cancel this Contract by returning
it to us within ten days after receipt of it. Upon such cancellation, we will
refund any Contribution made to us under this Contract, plus or minus any
investment gain or loss experienced in the Investment Divisions of the Separate
Account from the date such Contribution is allocated to such Investment Division
to the date we receive the returned Contract.
/s/ Pauline Sherman /s/ Edward D. Miller
Pauline Sherman, Vice President, Secretary & Edward D. Miller
Associate General Counsel President and Chief
Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.24 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISKS, EXPENSES AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92CTRB
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
DEFINITIONS Page
Section 1.01 - Annuitant....................................................4
1.02 - Annuity......................................................4
1.03 - Annuity Account Value........................................4
1.04 - Annuity Benefit..............................................4
1.05 - Cash Value...................................................4
1.06 - Class of Contracts...........................................4
1.07 - Code.........................................................4
1.08 - Contract Date................................................4
1.09 - Contract Year................................................4
1.10 - Contribution.................................................4
1.11 - Divisions....................................................4
1.12 - Eligible Annuity Certain.....................................5
1.13 - Employer.....................................................5
1.14 - Guaranteed Interest Rate.....................................5
1.15 - Joint and Survivor Life
Annuity Form.................................................5
1.16 - Life Annuity Form............................................5
1.17 - Normal Form..................................................5
1.18 - Owner........................................................5
1.19 - Period Certain Annuity.......................................5
1.20 - Plan.........................................................5
1.21 - Processing Office............................................5
1.22 - Retirement Date..............................................5
1.23 - Separate Account.............................................5
1.24 - Separate Account
Definitions..................................................6
1.25 - Transaction Date.............................................7
1.26 - Trust........................................................7
1.27 - Trustee......................................................7
1.28 - Trusteed Plan................................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions................................................7
2.02 - Separate Account
Investment Divisions.........................................7
2.03 - Guaranteed Interest
Division.....................................................8
2.04 - Allocation to Divisions......................................8
2.05 - Transfers Among Divisions....................................8
2.06 - Termination of this Contract.................................8
2.07 - Partial Withdrawals..........................................9
2.08 - Charges for Partial Withdrawals..............................9
2.09 - Free Corridor Amount.........................................9
2.10 - Loans.......................................................10
2.11 - Annual Administrative Charge................................11
2.12 - Death Benefit...............................................11
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit.......................................12
3.02 - Variable Annuity Benefit....................................12
3.03 - Election and Commencement
Of Annuity Benefits.........................................12
3.04 - Amount of Annuity Benefits..................................13
3.05 - Payment of Annuity Benefits.................................13
3.06 - Special Annuity and Spousal
Consent Provisions..........................................16
GENERAL PROVISIONS
Section 4.01 - Contract....................................................16
4.02 - Statutory Compliance........................................16
4.03 - Assignments and
Nontransferability..........................................17
4.04 - Beneficiary.................................................17
4.05 - Disqualification............................................17
4.06 - Future Contributions........................................17
4.07 - Deferment...................................................17
4.08 - Annual Notice...............................................17
4.09 - Trustee's Responsibility....................................18
4.10 - Age.........................................................18
No. 92CTRB Page 2
<PAGE>
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PART I - DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means the individual shown on Page
3 of this Contract for whom this Contract has been purchased.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the terms of a Plan.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts in the Guaranteed Interest Division, and the Investment
Divisions of the Separate Account pursuant to Sections 2.02 and 2.03 and any
loan reserve provision, described in Section 2.10.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract. Various Sections of this
Contract (Sections 1.15, 1.16, 1.17, 3.01 and 3.02) refer to "monthly payments"
to be made under an Annuity Benefit. The Owner may wish to have your Annuity
Benefit paid at other intervals, such as quarterly, semi-annually, or annually,
instead of monthly. The Owner may elect this at the time the Annuity Benefit
form is elected as described in Section 3.03; in that event, all references in
this Contract to "monthly payments" will be deemed to mean payments at the
frequency you elect subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means an amount equal to the
greater of (i) or (ii), less any outstanding loan, where
(i) is the Annuity Account Value less 6% of the Contributions made during the
current and five prior Contract Years, which had not been previously
withdrawn pursuant to Section 2.07, and
(ii) is the sum of (a) the Free Corridor Amount as defined in Section 2.09 and
(b) 94% of the Annuity Account Value less the Free Corridor Amount.
NO WITHDRAWAL CHARGE: If you have attained the age of 59 years and 6 months, the
term "Cash Value" means an amount equal to the Annuity Account Value for
withdrawals due to retirement or termination of employment. Your retirement or
termination of employment must be verified by the Trustee. Such verification
should be in the form of a statement signed by the Trustee and accompanying the
request for withdrawal. The request for withdrawal must be signed by both you
and the Trustee. The withdrawal charge will be imposed if this verification is
not received at our Processing Office together with the withdrawal request.
However, if the Annuitant is age 60 or older on the Contract Date and it is
Contract Year 5, item (ii)(b) above will be 95% of the Annuity Account Value
less the Free Corridor Amount.
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year. The term "Contract"
means this Contract.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
now or hereafter amended, or any corresponding provisions of prior or subsequent
United States revenue laws.
SECTION 1.08 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.09 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.10 CONTRIBUTION. The term "Contribution" means a payment made to us on
your behalf with respect to this Contract. We are under no obligation to accept
any Contribution less than $20.00.
SECTION 1.11 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following divisions described in this
Contract:
(i) the Guaranteed Interest Division, and
(ii) the Investment Divisions of the Separate Account.
No. 92CTRB Page 4
<PAGE>
SECTION 1.12 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us which extends beyond
your attainment of age 59 years and 6 months and does not permit any prepayment
of the unpaid principal (that is, no withdrawal or single sum payment) prior to
your attainment of age 59 years and 6 months.
SECTION 1.13 EMPLOYER. The term "Employer" means the corporate employer adopting
the Plan, or any such employer that assumes in writing the obligations of the
Plan.
SECTION 1.14 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the interest that we credit at effective annual rates in the Guaranteed Interest
Division. The initial rate to apply is shown on Page 3 of this Contract. Section
2.03 describes the determination of the rate to apply thereafter.
SECTION 1.15 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected. The payments commence on the date as of which the Joint and Survivor
Life Annuity Form is purchased and terminate with the last payment due before
the death of the survivor.
SECTION 1.16 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.17 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means, (i) if you have a living spouse at your Retirement Date,
the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form
with your spouse as the contingent annuitant (with 100% of the monthly payment
continued to your spouse), and (ii) if you do not have a living spouse at your
Retirement Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.18 OWNER. The term "Owner" of the Contract is the person or entity as
stated on Page 3 of this Contract. Notwithstanding any provisions in this
Contract to the contrary, only the Owner can exercise all the rights under this
Contract while you are living. When exercising such right, the Owner does not
need the consent of anyone who has only a conditional or future ownership
interest in this Contract unless the Owner delegates rights to such person.
Under this Contract the Owner is the Trustee, defined in Section 1.27.
While you are living, the Owner of this Contract on your behalf may change the
Owner by written notice satisfactory to us. The change will take effect on the
date the Owner signs the notice, except it will not apply to any payment we make
or other actions we take before we receive the notice.
SECTION 1.19 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal, (that is, you cannot elect to receive part
of your payments as a single sum payment with the remainder paid in monthly
annuity payments).
SECTION 1.20 PLAN. The term "Plan" means a defined contribution plan adopted by
the Employer that is intended to meet the requirements for qualification under
Section 401(a) of the Code.
SECTION 1.21 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P O Box 2996, New York, New York 10116-2996, or such
other location as we shall designate by advance written notice to the Owner, the
Employer or the Plan's trustee, as applicable, and to you.
SECTION 1.22 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain the retirement age as shown on Page 3 of this Contract. Before the
Retirement Date an election may be made to change the Retirement Date to another
Retirement Date permitted under the Plan, which may be any date after the filing
of the election other than the 29th, 30th or 31st day of any month. The
Retirement Date selected, either initially or by later change, must be in
accordance with the terms of the Plan. No Retirement Date shall be later than
the date you attain age 70 years and 6 months. Any election for such change must
be made in writing by you and shall not take effect until received by us at our
Processing Office.
SECTION 1.23 SEPARATE ACCOUNT. The term "Separate Account" means Separate
Account A which is organized as a unit investment trust, a type of investment
company. We established the Separate Account and it is maintained in accordance
with the laws of New York State. Realized and unrealized gains and losses from
the assets of the Separate Account are credited to or charged against it without
regard to our other income, gains or losses. Assets are put in the Separate
Account to support this Contract and other variable annuity contracts and
certificates. Assets may be put in the Separate Account for other purposes, but
not to support contracts or policies other than variable annuities or variable
life insurance.
No. 92CTRB Page 5
<PAGE>
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust or investment company where each class (or series) represents a
separate portfolio in the Trust. We reserve the right to change the designated
trust or investment company or to add designated trusts or investment companies.
The Investment Divisions available are the Stock Division, the Money Market
Division, the Balanced Division and the Aggressive Stock Division. The
Guaranteed Interest Division is not part of the Separate Account, but rather is
an asset of our General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any of the Owner's voting rights as to the Separate
Account;
(iv) operate the Separate Account by making direct investments, or in any other
form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to, or
remove Investment Divisions (or sub-divisions of Investment Divisions)
from the Separate Account (the term "Investment Division" in this Contract
shall then refer to any other Investment Division in which the assets, of
a class of contracts to which this Contract belongs, were placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
class of contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, the Owner and you will be notified of
such exercise, as required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for applicable tax
charge) at a rate not to exceed 1.49% per year for each of the Stock, Money
Market and Balanced Divisions, and 1.34% per year for the Aggressive Stock
Division, for financial accounting, death benefits, mortality risk, expenses and
expense risk. The charge shall be made in accordance with Subsection (c) of the
Net Investment Factor provision in Section 1.24. The relative proportion of
these charges may be modified. This daily charge, plus the investment advisory
fee charges and direct operating expense charges of the Trust, shall not exceed
a total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract.
SECTION 1.24 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any consecutive preceding
nonbusiness days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
No. 92CTRB Page 6
<PAGE>
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment Division
for the Valuation Period. For this purpose, we use the share value reported
to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
any amounts allocated or withdrawn for that Valuation Period).
(c) is the daily Separate Account charge for the expenses of this Contract times
the number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is the unit which is purchased in an
Investment Division where Contributions are invested and which is used in
determining the amount in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first contribution was put into the Stock
Division, the Annuity Unit Value was at $1.26 and $1.52 for contracts with
Assumed Base Rates of Net Investment Return of 5% and 3.5% a year, respectively.
The Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit
Value for the immediately preceding Valuation Period multiplied by the Adjusted
Net Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods ending in such month.
SECTION 1.25 TRANSACTION DATE. The term "Transaction Date" means the business
day we receive a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone, as
described in Section 2.05, the Transaction Date is the business day the
telephone transaction is received.
SECTION 1.26 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
SECTION 1.27 TRUSTEE. The term "Trustee" means the person or persons named as
trustee under a Trusteed Plan and such Trustee's successors. Under this
Contract, the Trustee is the Owner.
SECTION 1.28 TRUSTEED PLAN. The term "Trusteed Plan" means a Plan under which
there is maintained a trust forming a part of the Plan.
- --------------------------------------------------------------------------------
PART II - ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. The Employer or the Trustee, as applicable, is to
make Contributions from time to time on such dates and in such amounts as
determined by the Employer pursuant to the terms of the Plan. The Employer or
the Trustee is to specify the amount allocated to each Division. Each
contribution, received by us will, before its allocation under this Contract, be
reduced by the amount of any applicable tax charge as determined by us.
Contributions will be allocated to the Division in accordance with instructions
received on the application unless later changed.
Pursuant to the terms of the Plan, we will accept rollover contributions and
transfers made on your behalf from a plan qualified under 401(a) of the Code or
from a conduit individual retirement arrangement as described in Section 408 of
the Code.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to, or withdrawn or transferred from, an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing said amount by
the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units in an Investment
Division on any date is equal to (i) the sum of any
No. 92CTRB Page 7
<PAGE>
Accumulation Units that have been allocated pursuant to Section 2.04 minus (ii)
the sum of any Accumulation Units that have been withdrawn pursuant to Sections
2.07, 2.08, 210 or 2.11 or transferred from the Investment Division pursuant to
Section 2.05. The amount in an Investment Division on any date is equal to the
product of (i) the number of Accumulation Units in the Investment Division on
that date and (ii) the Accumulation Unit Value for the Investment Division for
the Valuation Period which includes that date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) Election and Commencement of Annuity Benefits pursuant to
Section 3.03, (ii) receipt of due proof of your death, or (iii) termination of
this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 or Section 2.10 plus the amount of any interest accrued
but not allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Section 2.07, 2.08, 2.10 or 2.11 or
transferred from the Guaranteed Interest Division pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date
pursuant to Section 2.04.
We will credit the amount in the Guaranteed Interest Division with interest at
effective annual rates that we determine. For each Class of Contracts we
determine a yearly guaranteed interest rate that will remain in effect
throughout the next year. We guarantee that this yearly guaranteed interest rate
will never be less than 3%.
Participation in the Guaranteed Interest Division under this Contract terminates
on the earliest of (i) Election and Commencement of Annuity Benefits pursuant to
Section 3.03, (ii) receipt of due proof of your death, or (iii) termination of
this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, as specified to us in writing. Allocation percentages must be in
whole numbers and the sum must equal 100. The allocation is made as of the
Transaction Date on which we have received both such Contribution and such
direction. Contributions made to an Investment Division purchase Accumulation
Units in that Investment Division, using the Accumulation Unit Value next
computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon termination of this Contract pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.12.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. Upon written request or through the use
of a touch tone telephone, the Owner may transfer all or part of the amounts in
a Division to one or more of the Divisions as follows: (1) amounts in the
Guaranteed Interest Division, Stock Division, Balanced Division and Aggressive
Stock Division may be transferred among such Divisions; and (2) amounts in the
Money Market Division may be transferred to other Divisions. Written
authorization for touch tone telephone initiated transfers is only required when
authorization for telephone transfers is requested. (Upon advance written notice
to the Owner, we reserve the right to discontinue the acceptance of transfer
requests through the use of a touch tone telephone.) All transfers will be made
on the Transaction Date and will be subject to our rules in effect at the time
of transfer. With respect to the Investment Divisions, the transfer will be made
at the Accumulation Unit Value next computed after the Transaction Date. No
transfers are permitted to the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. Subject to any restrictions under the
terms of the Plan, including the spousal consent rules set forth in Section
3.06, the Owner may elect by written notice to terminate this Contract. We will
determine the Cash Value of this Contract as of the Transaction Date.
If this Contract is terminated, surrendered or exchanged prior to the Retirement
Date, any applicable tax charges we have paid may be deducted. If we have
previously deducted charges for applicable taxes from Contributions pursuant to
Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
this Contract.
The payment of such Cash Value may be deferred by us in accordance with the
provisions of Section 4.07.
No. 92CTRB Page 8
<PAGE>
Subject to the terms of the Plan, we reserve the right to pay the Annuity
Account Value less any outstanding loan under this Contract and terminate this
Contract if (i) no Contributions are made on your behalf during the last three
completed Contract Years, and the Annuity Account Value is less than $500 or
(ii) a partial withdrawal is made that would result in your Annuity Account
Value falling below $500. We reserve the right to terminate this Contract if no
contributions have been made within 120 days of the Contract Date.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions under this Contract and the Annuity Account Value
with respect to this Contract shall be zero. We will be released from any and
all liability for payments with respect to the Contributions from which the
Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any restrictions under the terms of
the Plan, the Owner may elect, by written notice to us, to make a partial
withdrawal from the Divisions. Partial withdrawals are subject to the spousal
consent rules set forth in Section 3.06.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to the Owner (or such other person designated by
the Owner to us in advance via written instructions). The amount paid plus any
withdrawal charge applicable pursuant to Section 2.08 will be withdrawn from the
amounts in the Divisions. Unless instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise the Owner and reserve the right to pay the
Annuity Account Value less any outstanding loan, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS. There will be no partial
withdrawal charge if the amount of the partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.09.
However, if the amount of partial withdrawal requested is greater than the Free
Corridor Amount, we will (i) first withdraw from such Divisions an amount equal
to the excess of the amount requested over the Free Corridor Amount, and (ii)
then withdraw an amount equal to the excess of the amount requested over the
Free Corridor Amount, plus a withdrawal charge, if applicable. Such withdrawal
charge will be calculated in the following manner:
(a) Withdrawals of Contributions made on your behalf during the current and five
prior Contract Years will be subject to a charge of 6% of the amount
withdrawn (including such charge).
(b) Withdrawals of other amounts will not be subject to any withdrawal charges.
For purposes of determining withdrawal charges described in this Section,
amounts withdrawn up to the Free Corridor Amount will not be considered a
withdrawal of any Contributions. Any excess withdrawals, i.e. those pursuant to
item (ii) above, shall be considered withdrawals of Contributions in the order
received, with the older Contributions first.
With respect to partial withdrawals requested by the Owner, there will be no
partial withdrawal charge if (i) you have completed at least 5 Contract Years
and you have attained the age of 59 years and 6 months or (ii) you have attained
age 59 years and 6 months and have retired or terminated employment. Your
retirement or termination of employment must be verified by the Trustee. Such
verification should be in the form of a statement signed by the Trustee and
accompanying the request for withdrawal. The request for withdrawal must be
signed by both you and the Trustee. The partial withdrawal charge will be
imposed if this verification is not received at our Processing Office together
with the withdrawal request.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to your Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means an
amount equal to the excess, if any, of (i) 10% of the Annuity Account Value on
the Transaction Date over (ii) cumulative prior withdrawals made pursuant to
Section 2.07 in the current Contract Year.
No. 92CTRB Page 9
<PAGE>
SECTION 2.10 LOANS. Unless otherwise restricted by the Plan, or the Code, the
Owner may get a loan under this Contract on your behalf before the Election and
Commencement of Annuity Benefits, if an agreement between the Owner and us
relating to such loan ("Trustee Agreement") has been executed and is in effect
on the "Loan Effective Date", as defined below. Plan loans are subject to the
spousal consent rules set forth in Section 3.06. Future restrictions in the Code
may require revision or withdrawal of the loan provisions as provided below. The
Annuity Account Value (including the loan reserve account as described below)
will be the sole security for the loan.
If your loan agreement and application form ("Loan Agreement") is properly
completed and signed by you, approved by the Owner, accepted by us and received
at the Processing Office by the 15th of the month, the loan is effective on the
first day of the following month. If your Loan Agreement is properly completed
and signed by you, approved by the Owner, accepted by us and received at the
Processing Office after the 15th of the month, the loan is effective on the
first day of the second month following.
The Owner may establish a reasonable interest rate for the loan provided that
such rate is not (1) less than an effective annual rate of 6% or (2) greater
than the maximum rate permitted by applicable laws.
Beginning the first day of the third month following the effective date of the
loan and quarterly on the first day of the month thereafter, loan repayments
must be made to us. Loan requests shall be amortized in substantially level
payments over the term of the loan. If the effective annual rate of the loan is
6%, such repayments will be equal to the sum of (a) and (b) where
(a) is the loan interest, calculated at an effective annual rate of 6%, and
(b) is an amortized portion of the loan principal.
If the effective annual rate of the loan is greater than 6%, such payments will
be equal to the sum of (a), (b) and (c) where
(a) is the loan interest, calculated at an effective annual rate of 6%,
(b) is an amortized portion of the loan principal, and
(c) is the loan interest, calculated at the effective annual rate determined by
the Owner less the loan interest calculated at an effective annual rate of
6% ("Excess Interest").
Any Excess Interest received by us will be allocated among the Divisions in
accordance with Section 2.04 and may be withdrawn, transferred or annuatized as
described in this Contract.
By each due date, if the amount of the loan payment is less than the amortized
loan interest and principal due calculated at an effective annual rate of 6% or
the loan repayment is not received at our Processing Office, we will deduct and
treat as a partial withdrawal from the loan reserve account an amount equal to
the amortized interest and principal payments due plus any applicable withdrawal
charges and any required income tax withholding. Specifically, an amount equal
to the principal payment will be deducted from the portion of the loan reserve
account which earns interest at an effective annual rate of 4%, and an amount
equal to the interest payment, calculated at the effective annual rate of 6%,
plus any applicable withdrawal charges and required income tax withholding will
be deducted from the portion of the loan reserve account which earns interest at
the Guaranteed Interest Rate.
Amounts deducted, if the amount of the loan repayment is less than the amount
due or the loan payment is not received at our Processing Office, may be
reportable to the IRS and other appropriate government authorities as taxable
distributions. In addition, you may be subject to a 10% penalty tax on the
taxable portion of the amounts deducted.
The amount of the loan may not be more than 50% of the Annuity Account Value. In
no event shall the loan amount exceed $50,000 less the highest outstanding
balance under this Contract during the one year period ending the day before the
effective date of the loan. The minimum loan permitted is $1,000. For this
purpose, the Annuity Account Value is taken as of the Loan Effective Date. Only
one outstanding loan is permitted at a time under this Contract. As a condition
for granting a loan, we will require you to represent that the loan amount
requested, when aggregated with loans (principal plus interest) from all
qualified plans of your Employer, does not exceed 50% of the value of your
nonforfeitable accrued benefits, and in no event exceeds $50,000 less the
highest outstanding balance of all loans from qualified plans during the one
year period ending on the day before the effective date of the loan. The
provisions of this Contract require spousal consent in order to receive a loan
if you are married.
No. 92CTRB Page 10
<PAGE>
The loan term will be either (i) ten years, if you represent that the purpose of
the loan is to acquire, build or substantially rehabilitate a dwelling unit
which, within a reasonable period of time, is to be used as your principal
residence or (ii) five years. In any event, the loan term may not extend beyond
the earlier of
(i) the Election and Commencement of Annuity Benefits pursuant to Section
3.03,
(ii) the date we receive written notice to terminate this Contract pursuant to
Section 2.06,
(iii) the date we pay a death benefit pursuant to Section 2.12, and
(iv) any date provided for such loans by future Federal tax rules including
acceleration of the loan repayment in order that the operation of the loan
provisions do not adversely affect the tax treatment of this Contract.
Future Federal tax rules may also impose certain additional requirements to
obtain the ten year loan period described above which may apply to existing ten
year loans.
On the Loan Effective Date, we will transfer to a loan reserve account an amount
equal to the sum of (i) the loan amount, which will earn interest at the
effective annual rate of 4% during the loan term and (ii) 25% of the loan
amount, which will earn interest at the Guaranteed Interest Rate, as defined in
this Contract. With the Owner's approval you may specify from which Divisions
these amounts are to be transferred. In the absence of direction from the Owner,
or if your directions cover only part of the amount required to be transferred
to the loan reserve account, we will transfer the required (or additional
required) amounts from each Division in proportion to the amount that you have
in such Division. On the first day of the third month following the effective
date of the loan and quarterly thereafter (or first business day thereafter, if
such day is not a business day), the amount of interest earned at 4% annually
during the prior quarter will be transferred to the portion of the loan reserve
account that earns interest at the Guaranteed Interest Rate.
The loan must be repaid in part on each quarterly due date and may be repaid in
full at any time on or after the first loan anniversary and must include the
full interest due. Any payments received will first be applied to interest due,
with the balance applied towards repayment of the loan. Any partial loan
repayment will result in a transfer of the amount equal to the principal repaid
from (i) the portion of the loan reserve account that earns interest at the
effective annual rate of 4% to (ii) the Guaranteed Interest Division and may be
withdrawn, transferred or annuitized as described in this Contract.
Partial withdrawals or transfers may not be made from the loan reserve account.
Upon full repayment of the loan, any amounts remaining in the loan reserve
account will be transferred to the Guaranteed Interest Division and may be
withdrawn, transferred or annuitized as described in this Contract.
Upon termination of this Contract pursuant to Section 2.06 or 2.12 or
annuitization pursuant to Section 3.04 prior to the full repayment of the loan,
the loan reserve account shall be zero.
SECTION 2.11 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $25,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts in the Divisions.
For this purpose, any loan reserve account is included within the Guaranteed
Interest Division. The portion of the charge attributable to the Guaranteed
Interest Division and any loan reserve account will be first withdrawn from the
Guaranteed Interest Division and then, if the amount in the Guaranteed Interest
Division is not sufficient, the remaining allocation will be withdrawn from the
portion of the loan reserve account that earns interest at the Guaranteed
Interest Rate.
If the Annuity Account Value is less than $25,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of this Contract pursuant to Section 2.06 or
2.12, we will prorate the Annual Administrative Charge applicable to the
completed portion of the current Contract Year and withdraw such amount in lieu
of the Annual Administrative Charge described in this Section for the applicable
part of that Contract Year.
If the Annuity Account Value is $25,000 or greater at the end of a Contract
Year, the Annual Administrative charge is zero.
SECTION 2.12 DEATH BENEFIT. If we ascertain that you have died while you have
amounts in the Divisions, we will, upon receipt of due proof of your death, and
subject to the terms of the Plan including the spousal survivor benefit rules
set forth in Section 3.06, pay to the beneficiary designated to receive such
payment under Section 4.04 of this Contract, the death benefit payable.
If the beneficiary under this Contract is the Trustee, the Trustee may, subject
to the terms of the Plan, change the beneficiary within 31 days after we receive
due proof of your death. The change shall be made in the same manner and subject
to the same provisions as apply to a change of beneficiary during your lifetime.
No. 92CTRB Page 11
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If the Trustee changes the beneficiary of this Contract after your death
according to the terms of the Plan, the Trustee may elect an Annuity Benefit on
any annuity form offered by us or one of our affiliated or subsidiary life
insurance companies, subject to our rules then in effect, for the benefit of the
beneficiary. The beneficiary may not revoke or change any election made by the
Trustee. If the Trustee does not make an election, the beneficiary may make such
election for the beneficiary's own benefit. Any election of an Annuity Benefit
must meet the minimum distribution requirements as described in Section 3.05.
If the beneficiary under this Contract is not the Trustee, and you are married
at the time of your death, we will pay the death benefit under this Contract to
your spouse in the form of a Life Annuity, unless your spouse makes an election
for a single sum payment or for an Annuity Benefit on any other annuity form
offered by us, subject to our rules then in effect. Any election of an Annuity
Benefit must meet the minimum distribution requirements as described in Section
3.05.
The amount of the death benefit is equal to the greater of (i) the Annuity
Account Value less any outstanding loan and (ii) the minimum death benefit. Such
minimum death benefit is the sum of all Contributions made pursuant to Section
2.01 (before reduction for any applicable tax charge) less any outstanding loan
and less any withdrawals made pursuant to Section 2.07. Any such withdrawal will
reduce the minimum death benefit (as adjusted by any previous such withdrawal)
by an amount which is in the same proportion as the amount being withdrawn is to
the Annuity Account Value.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value shall be zero. We will be released from any and all
liability from which the Annuity Account Value arose.
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PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of Net
Investment Return referred to in Section 1.24 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.23, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounting, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the terms of this Contract with respect to a payee is the
monthly amount provided with respect to a payee pursuant to the fifth paragraph
of Section 3.04. The amount of the fourth and each subsequent payment under a
Variable Annuity Benefit will be equal to the number of Annuity Units with
respect to such benefit, multiplied by the Average Annuity Unit Value for the
second calendar month immediately preceding the due date of the payment. The
number of Annuity Units with respect to a benefit is the number determined by
dividing the amount of the first monthly payment under such benefit by the
Annuity Unit Value for the Valuation Period which includes the due date of the
first monthly payment. (As described in Section 3.05, we will notify the payee
how each Variable Annuity payment is determined.)
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. Subject to the terms
of the Plan, including the spousal consent and survivor rules described in
Section 3.06, as of your Retirement Date, provided you are then living, the
Annuity Account Value less any outstanding loan shall be applied to provide the
Normal Form of Annuity Benefit, unless an election is made (i) to receive the
Cash Value of this Contract in a single sum, (ii) to apply the Annuity Account
Value, (less any outstanding loan as set forth in Section 2.10) or Cash Value,
whichever is applicable pursuant to the first paragraph of Section 3.04, to
provide an Annuity Benefit on any other form offered by us or one of our
affiliated or subsidiary life insurance companies, or (iii) to take partial
withdrawals in amounts and at times as required by the minimum distribution
rules of Section 401(a)(9) of the Code and applicable Treasury Regulations,
pursuant to Section 3.05, subject to our rules then in effect and any other
applicable requirements under the Code.
No. 92CTRB Page 12
<PAGE>
We will provide notice and election forms to the Owner not more than six months
before your Retirement Date.
If an election is made to terminate this Contract pursuant to Section 2.06, an
election may be made to receive an Annuity Benefit in lieu of the Cash Value.
We will have the right to require pertinent information to provide an Annuity
Benefit, and will be fully protected in relying on such information and need not
inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If, pursuant to the first or third
paragraph of Section 3.03, an election is made to receive an Annuity Benefit in
lieu of the Cash Value, the amount applied to provide the Annuity Benefit will
be (i) the Annuity Account Value less any outstanding loan if the annuity form
elected involves life contingencies or (ii) the Cash Value if the annuity form
elected does not involve life contingencies.
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charges from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to this Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your Contract will be governed by our
supplementary contract then in effect.
The amount to be applied to provide an Annuity Benefit will, in addition to any
tax charge reduction, be reduced by an administrative charge. The amount of such
charge will be determined from time to time in accordance with our general
practices applicable on a uniform basis to all contracts of the same type as
this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts in
the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated, on the Joint and Survivor Life Annuity Form (with 100%
of the amount of your payment continued to your spouse). The amount of income
provided under the Fixed Annuity Benefit payable on the Joint and Survivor Life
Annuity Form, is based on 3.5% interest and the 1983 Individual Annuity
Mortality Table "a" adjusted to a unisex basis based on a 50-50 split of males
and females at age zero. The amounts of income initially provided under the
Variable Annuity Benefit payable on the Life Annuity Form are based on a 50-50
split of males and females at age zero and an Assumed Base Rate of Net
Investment Return of 3.5% or 5%, whichever applies pursuant to Section 1.24.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us on 3.5% interest and the 1983 Individual Annuity Mortality
Table "a" adjusted to a unisex basis based on a 50-50 split of males and females
at age zero if such annuity form provides for a Fixed Annuity Benefit, and on
the projected 1983 Basic Table "a" adjusted to a unisex basis based on a 50-50
split of males and females at age zero and an Assumed Base Rate of Net
Investment Income Return of 5% or 3.5%, whichever applies pursuant to Section
1.24, if such annuity form provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Your entire interest in this Contract
will be distributed or begin to be distributed, in accordance with Section
401(a)(9) of the Code and the applicable Treasury Regulations thereunder, no
later than the first day of April following the calendar year in which you
attain age 70 years and 6 months ("Required Beginning Date") or such later date
as specified in such Section or regulations. Your entire interest may be
distributed, as you elect, over (a) your life, or the lives of you and your
designated beneficiary, or (b) a period certain not extending beyond your life
expectancy, or the joint and last survivor expectancy of you and your designated
beneficiary. Distributions must be made in periodic payments at intervals of no
longer than one year. In addition, payments must be either nonincreasing or they
may increase only as provided in Q & A F-3 of Section 1.401(a)(9)-1 of the
Proposed Treasury Regulations, or any successor Regulation thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 40(a)(9) of the Code, including the incidental death
benefit requirements of Section 401(a)(9)(G) of the Code, and applicable
Treasury Regulations, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the. Proposed Treasury Regulations, or
any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
No. 92CTRB Page 13
<PAGE>
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless you otherwise elect prior to the time distributions are required to
begin, those life expectancies shall be recalculated annually. Such election
shall be irrevocable and shall apply to all subsequent years. The life
expectancy of a non-spouse beneficiary may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such beneficiary during
the calendar year in which you attain age 70 years and 6 months, and payments
for subsequent years shall be calculated based on such life expectancy reduced
by one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If you die after distribution of your interest described in this Contract has
begun, the remaining portion of such interest will continue to be distributed at
least as rapidly as under the method of distribution being used prior to your
death.
If you die before distribution of your interest begins, distribution of your
entire interest shall be completed no later than December 31 of the calendar
year containing the fifth anniversary of your death, except to the extent that
an election is made to receive death benefit distributions in accordance with
(1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then your entire
interest may be distributed over the life of, or over a period certain not
greater than the life expectancy of, the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar year
immediately following the calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date
distributions that are required to begin in accordance with (1) above shall
not be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of your death or (B) December 31 of
the calendar year in which you would have attained age 70 years and 6
months.
For purposes of determining the "period certain" referred to in the
immediately preceding paragraph, life expectancy is computed by use of the
expected return multiples in Tables V and VI of Treasury Regulation Section
1.72-9. For purposes of distributions beginning after your death, unless
otherwise elected by the surviving spouse by the time distributions are
required to begin, life expectancies shall be recalculated annually. Such
election shall be irrevocable by the surviving spouse and shall apply to all
subsequent years. In the case of any other designated beneficiary, life
expectancies shall be calculated using the attained age of such beneficiary
during the calendar year in which distributions are required to begin
pursuant to this Section, and payments for any subsequent calendar year
shall be calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy was
first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under the terms of this Contract was based on information
that is subsequently found to be incorrect, benefits will not be invalidated,
but an adjustment on the basis of the correct information will be made in the
amount of the benefit payments, or any amount used to provide the benefit, or
any combination thereof. Overpayments by us will be charged against and
underpayments will be added to any payments thereafter falling due under the
terms of this Contract with respect to a payee, affecting as many such payments
as are necessary to correct the overpayment or underpayment. Our liability with
respect to a payee is limited to the correct information and the actual amounts
used to provide the benefits then in force with respect to the payee under this
Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii) another person or an
institution is then maintaining or has custody of such payee, and (iii) no
guardian, committee, or other representative of the estate of such payee has
been appointed, we may, unless the Plan provides to the contrary, make the
payments (in the case of a minor, at a rate not exceeding %200 a month) to such
other person or institution, and will thereupon be fully discharged from all
liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
No. 92CTRB Page 14
<PAGE>
Upon an election, pursuant to Section 3.03, of an annuity form providing
payments for a period certain, such Owner may designate (in accordance with the
terms of the Plan and with the right to change such designation in accordance
with the terms of the Plan) a payee to receive any payments that may become due
after the death of the person or persons upon whose life or lives the income may
depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person unless the Plan provides to the contrary) a
person or persons to receive any payments or installments payable after such
payee's death, if the absence of such a designation would result in a single sum
payment to such payee's estate in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments, The commuted value of any such remaining payments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
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TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT
AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
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Age 60 61 62 63 64 65 66 67 68 69 70
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE
ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- --------------------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
INVESTMENT RETURN IS
Age 3.5% 5%
- --------------------------------------------------------------------------------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
- --------------------------------------------------------------------------------
We will, with respect to each payment under a Variable Annuity Benefit, notify
the payee of the number of Annuity Units and the Average Annuity Unit Value used
in determining the amount of each variable payment. Such notice will be mailed
with each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary as
described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
No. 92CTRB Page 15
<PAGE>
SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS. If you are married,
your interest in this Contract shall be paid in the Normal Form joint and
survivor annuity, and if you are unmarried, your interest shall be paid in the
Normal Form life annuity, unless you elect otherwise as described in this
Section. If you are married and die before payment of your interest has
commenced, your interest shall be paid to your surviving spouse in the form of a
life annuity, unless at the time of your death there was a contrary election
made pursuant to this Section. The foregoing notwithstanding, your surviving
spouse may elect, before payment is to commence, to have payment made in any
form permitted under the terms of this Contract.
You may elect, at any time within the 90 consecutive day period before the first
day of the first period for which your interest is paid as an annuity or in any
other form, not to have your interest paid in the Normal Form in which case it
shall be paid in any other form elected under the terms of this Contract. If
such interest is to be paid to your spouse upon your death, you may elect,
during the period beginning on the first day of the plan year of the Plan in
which you attain age 35 (or, if you separate from service prior to that plan
year, beginning on the date of separation) and ending with your death, for a
beneficiary other than your spouse to receive payment of the value of your
interest. In addition, if you will not yet attain age 35 by the end of any
current plan year, you may make a special qualified election to designate a
beneficiary other than your spouse to receive payment of the value of your
interest. Such special qualified election shall be effective for the period
beginning on the date of such election and ending on the first day of the plan
year in which you will attain age 35. Amounts payable in accordance with this
Section will be automatically reinstated as of the first day of the plan year in
which you attain age 35 unless a new election designating a beneficiary other
than the spouse is made in accordance with the requirements of this Section.
Any election described in the foregoing paragraph must be consented to by your
spouse in writing before a notary public or a representative of the Plan, unless
you can prove that there is no spouse or that the spouse cannot be located.
Also, if you have become legally separated from your spouse or have been
abandoned (within the meaning of local law) and have a court order to such
effect, spousal consent is not required unless a qualified domestic relations
order provides otherwise. Your election must designate a specific beneficiary
(including any class of beneficiaries or any contingent beneficiaries) that may
not be changed without further consent of the spouse, unless the spouse's
consent expressly permits designation by you without further consent of the
spouse. The spouse's consent under this Section shall acknowledge the effect of
the election. In addition, the spouse's consent (or the establishment that the
consent of the spouse may not be obtained) shall only be valid with respect to
such spouse. Your waiver of the Normal Form joint and survivor annuity shall not
be effective unless the election designates a form of benefit payment which may
not be changed without spousal consent (or the spouse expressly permits
designations by you without any further spousal consent). A consent that permits
designations by you without any requirement of further consent by such spouse
must acknowledge that the spouse has the right to limit consent to a specific
beneficiary, and a specific form of benefit where applicable, and that the
spouse voluntarily elects to relinquish either or both of such rights. If you
make an election under this Section you may revoke that election, without
spousal consent, at any time before the first day of the first period for which
an amount is paid as an annuity or in any other form.
The provision requiring spousal consent in this Section shall also apply with
regard to your election to terminate this Contract or make partial withdrawals
pursuant to Sections 2.06 and 2.07 and with respect to a beneficiary designation
set forth in Section 4.04. Spousal consent, as described in this Section, is
also required in the 90 day period before a Plan loan is granted to you pursuant
to Section 2.10.
If the Annuity Account Value applied to provide the spousal benefits on the date
payment is to commence is in the aggregate less than $3,500, we may choose to
make payment in a single sum rather than in the form of a Qualified Joint and
Survivor Annuity or Life Annuity as described herein. Upon any payment made
pursuant to this Section, we will be released from any and all liability for
payment with respect to the Contributions made for you.
- --------------------------------------------------------------------------------
PART IV - General PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the terms of this Contract alone will govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between the
Owner and us without the consent of any other person, provided the change does
not reduce any annuity benefit.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend the terms of
this Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform this Contract to reflect changes in the Code,
applicable Treasury Regulations or in regulations or published rulings of the
Internal Revenue Service so that this Contract will continue to be an Annuity
under a qualified plan.
No. 92CTRB Page 16
<PAGE>
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY. No interest of yours or of a
beneficiary under this Contract may be transferred to any person other than us
upon the surrender of this Contract. Except as permitted under Section
401(a)(13) of the Code, no right or interest of you or any other payee or
beneficiary in this Contract shall be (a) assignable; (b) subject to any lien;
or (c) liable for, or subject to, any obligation or liability of any person. The
preceding sentence shall not apply to an assignment, transfer or attachment
pursuant to a qualified domestic relations order, as defined in Section 414(p)
of the Code.
SECTION 4.04 BENEFICIARY. The Owner, as of the Contract Date, is to provide us
with an initial designation of the beneficiary entitled to receive any death
benefit payable with respect to you pursuant to Section 2.12. Subject to the
Plan and spousal consent and survivor rules of Section 3.06, you may change such
designation from time to time during your lifetime and while this Contract is in
force. If the beneficiary is the Trustee, the Trustee will have the right within
31 days of the day we receive due proof of your death and pursuant to the
provisions of the Plan, to change the beneficiary entitled to receive your death
benefits.
If the Trustee is not the beneficiary, the beneficiary will be your spouse
unless he or she has given duly witnessed written consent to the designation of
another beneficiary as described in Section 3.06, or you establish prior to your
death that he or she cannot be located. Such spousal consent must be on file
with the Trustee while this Contract is owned by the Trustee. If the Trustee is
not the Owner, such spousal consent must be presented to us with the change of
beneficiary request or with proof of your death and election of an Annuity
Benefit.
SECTION 4.05 DISQUALIFICATION. In the event that the Plan fails to qualify as a
Plan under Section 401(a) of the Code and applicable Treasury Regulations, we
reserve the right, upon receiving notice of such fact, to transfer the Annuity
Account Value under this Contract to another annuity contract issued by us on
your life, or one of our affiliated subsidiary life insurance corporations, or
to terminate this Contract and pay to the Owner the Annuity Account Value less
deduction for applicable taxes, solely at our option.
In the event that this Contract fails to qualify as an Annuity under a qualified
Plan as described in Section 1.02, we shall have the right, upon receiving
notice of such fact, to terminate this Contract and pay at the direction of the
Owner the Annuity Account Value less any outstanding loan and less a deduction
for the appropriate part attributable to the Owner of any Federal income tax
payable which would not have been payable if you had an Annuity.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to the, Employer, we
reserve the right at our sole discretion to limit Contributions under this
Contract.
SECTION 4.07 DEFERMENT. Applications of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities Exchange
Commission, by order, permits us to defer payments in order to protect persons
with interests in the Investment Divisions. We can defer payment of any portion
of your Annuity Account Value in the Guaranteed Interest Division for up to six
months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year, we will furnish
you with a notice showing the following:
(1) the amount in the Guaranteed Interest Division,
(2) the total number of Accumulation Units in the Stock Division, Balanced
Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Value,
(4) the amount in the Stock Division, Balanced Division, Aggressive Stock
Division and Money Market Division,
(5) the amount in the loan reserve account,
(6) the Cash Value, and
(7) the amount of death benefit.
No. 92CTRB Page 17
<PAGE>
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
After your Retirement Date, we will notify you of the number of Annuity Units
and the Average Annuity Unit Value used in determining the amount of each
Variable Annuity Benefit payment, if any.
SECTION 4.09 TRUSTEE'S RESPONSIBILITY. The Trustee shall hold this Contract on
your behalf and your beneficiaries as an asset of the trust, unless this
Contract is distributed to you pursuant to the terms of the Plan. The Trustee
shall be responsible for transferring all payment made under this Contract to
the Annuitant and the Annuitant's beneficiaries in accordance with the terms of
the Plan and the applicable provisions of the Code. We shall make no payment
hereunder without written instructions from the Trustee, and we shall be fully
discharged of any liability therefor to the extent such payments are made to and
at the direction of the Trustee.
SECTION 4.10 AGE. If your age has been misstated, any benefits will be those
which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
No. 92CTRB Page 18
<PAGE>
- -------------------------------------------------------------------------------
APPLICATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996,
New York, New York 10116-2996
QUALIFIED VARIABLE ANNUITY CONTRACT APPLICATION FOR:
EQUITABLE'S INDIVIDUAL QUALIFIED DEFERRED VARIABLE ANNUITY
- -------------------------------------------------------------------------------
1. TYPE OF PURCHASE (Complete One Plan Only)
a. | | TSA Public School (GV-PS-I)
b. | | TSA 501(c)(3) Organization (GV-501-I)
c. | | TSA University (GV-PS-U-I)
d. | | IRA Individual (including IRA to IRA transfers)
(GV-IRA 4971)
e. | | IRA Unit Billed (including IRA to IRA transfers) (GV-IRA 4971)
f. | | IRA QUALIFIED PLAN ROLLOVER--(QP IRA)
(Distribution from a Qualified Plan)
(GV-IRA 4971-71)
g. | | EDC (Public Employee Deferred Compensation (GV-EDC 4991)
h. |X| EDC (Tax Exempt Organization)(GV-EDC 4991-SU-080)
i. | | SEP (Simplified Employee Pension)(GV-SEP 4981)
j. | | SARSEP (Salary Reduction SEP) ____________
k. | | CORPORATE TRUSTEED (GV-CORP 4941-41)
l. | | KEOGH/HR-10 TRUSTEE (GV HR-10 4911-11)
(trustee owned)
m. | | Keogh/HR-10 (GV-HR-10 4911)
(not trustee owned) (issued to existing units only)
- -------------------------------------------------------------------------------
DO NOT COMPLETE THIS SECTION IF BOX 1.d OR 1.f CHECKED ABOVE
2. EMPLOYER/PLAN NAME
|A|B|C| | C|O|M|P|A|N|Y| | | | | | | | | | | | | | | | | | | | | | | | | | |
3. | | EXISTING UNIT NO. | | | | | | | - | | |X| NEW UNIT |0|0|0|1|2|3|-|4|5|6|
(FOR NEW UNIT BILLED IRA, EDC, TSA, SEP, SARSEP,
OR TRUSTEED PLANS. FORM 983-135B IS REQUIRED.)
- -------------------------------------------------------------------------------
4. PROPOSED ANNUITANT Print name to appear on Contract.
|J|o|h|n| | | | | | | | | | | | | | | | | | |O|E | | | | | | |
First Middle Initial Last
a. |x| Mr. | | Mrs. | | Miss | | Ms. | | Other _______
b. Date of Birth: Year 1954 Month JANUARY Day 27
----- -------- ----
c. Age at Nearest Birthday: 38 d. |x| Male | | Female
------
e. Annuitant's Mailing Address: f. State of Residence: N.J.
----
No., St. |1|7| |E|L|M| |S|T|R|E|E|T| | | | | | | | | | | | |
City |A|N|Y|T|O|W|N| | | | | | | | | | | | | | | | | |
State |U|S| Zip Code |0|2|0|0|0|-|0|0|0|1|
g. Telephone Number (101) 222-3456 |x| Home | | Work
h. Social Security No. (Required): |1|2|3|-|4|5|-|6|7|8|9|
i. Are you associated with or employed by a member of National Association
of Securities Dealers, Inc. (NASD)? | | Yes |x| No
5. OWNER (Print Name) - If Trusteed or EDC Plan Print Name of Owner; for all
other Markets Print Name of Annuitant.
JOHN DOE
------------------------------------------------------------
a. Title
----------------------------------------------------
6. RETIREMENT AGE 65
--------------------------------------------
7. BENEFICIARY -- Include FULL NAME and RELATIONSHIP to Annuitant. (For Death
Benefit upon Annuitant's death before Retirement Date.) BENEFICIARY MUST BE
THE OWNER FOR EDC PURCHASES AND FOR MOST TRUSTEED PLANS.)
JANE DOE - WIFE
-----------------------------------------------------------
-----------------------------------------------------------
-----------------------------------------------------------
8. CONTRIBUTION ALLOCATION
Guaranteed Interest Division 20%
--
Stock Division 20%
--
Money Market Division 20%
--
Balanced Division 20%
--
Aggressive Stock Division 20%
--
(PERCENTAGES IN WHOLE NUMBERS) Total 100%
9. CONTRIBUTIONS (NOT REQUIRED FOR 1.F)
a. Reminder Notice (Billing) Required | | Yes |x| No
IF YES, complete b-c-d-e
b. REMINDER DATE Required for Individual IRA or
otherwise must agree with existing unit or attached
983-135B. MONTH _________ DAY _________
c. REMINDER FREQUENCY
| | Annual | |Semi-Annual
| | Quarterly | |Monthly
Available for TSA, EDC, SARSEP AND CORPORATE
TRUSTEED AND UNIT BILLED IRA ONLY:
| | Semi-Monthly | | Bi-Weekly
d. REMINDER AMOUNT $______________________
e. BILLING MONTHS TO BE EXCLUDED - TSA ONLY
- ----------------------------------------------------------
- ----------------------------------------------------------
- ----------------------------------------------------------
10. EXPECTED FIRST CONTRACT YEAR
CONTRIBUTION. $ 1000
-----------
If an advanced billing and/or contract date are requested, complete #9b and
#12.
- --------------------------------------------------------------------------------
(FOR PROCESSING OFFICE USE)
Unit Name ____________________________ Reminder Date__________________________
Cert. or App# ________________________ Amendment Required_____________________
EDC Emp. Add._________________________ Emp. Fed. ID # ________________________
Frequency ____________________________ Contract Date _________________________
Receipt Date Batch # Inquiry # Processor
- --------------------------------------------------------------------------------
180-1000
<PAGE>
10. Did you receive the Separate Account Prospectus? |x|Yes | |No
Date shown on Prospectus January 1, 1992
-----------------------------
Date of any supplement to Prospectus
--------------------
11. Items (a) through (f) are to be answered by the annuitant. We are required
by the NASD to ask these questions.
(a) Name of Employer: ABC COMPANY
----------------------------------
(b) Address of Employer:
10 MAIN STREET
------------------------------------------------------
ANYTOWN, NJ
------------------------------------------------------
(c) Occupation SALES
-------------------------------------------
(d) Assuming the contract applied for will be issued, will any existing
insurance or annuity be replaced or changed (or has it been)?
| | Yes |x| No
(e) Estimated Family Annual Income $100,000
-----------------------
(f) Estimated Net Worth $250,000
-----------------------
(g) Investment Objective: | | Income |x| Income & Growth
| | Aggressive Growth | | Growth | | Safety Of Principal
12. SPECIAL INSTRUCTIONS
- --------------------------------------------------------------
- --------------------------------------------------------------
- --------------------------------------------------------------
- --------------------------------------------------------------
- --------------------------------------------------------------
13. AMOUNT PAID WITH THIS FORM: $ 1000
---------
(If a check is submitted with this request, no advanced Contract Date is
permitted.) BACKDATING IS NOT PERMITTED.
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the contract is not issued. The Contract Date
will be the date of receipt by Equitable of this application, properly
signed and completed, and Contribution at Equitable's Processing Office.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGREEMENT
All information and statements furnished in this application are true and
complete to the best of my knowledge and belief. I understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations.
IT IS UNDERSTOOD THAT THE ANNUITY ACCOUNT VALUE ATTRIBUTABLE TO ALLOCATIONS TO
THE INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT AND VARIABLE ANNUITY BENEFIT
PAYMENTS MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
UNDER THE PENALTIES OF PERJURY I (WE) CERTIFY THAT THE SOCIAL SECURITY NUMBER(S)
OR TAX IDENTIFICATION NUMBER(S) PROVIDED ON THIS FORM IS (ARE) TRUE, CORRECT AND
COMPLETE.
- --------------------------------------------------------------------------------
LAWS IN YOUR STATE MAY MAKE IT A CRIME TO FILL OUT AN INSURANCE OR
ANNUITY APPLICATION WITH INFORMATION YOU KNOW IS FALSE
OR TO LEAVE OUT MATERIAL FACTS
- --------------------------------------------------------------------------------
X_________________________________ Date __________ City ___________ State_______
Signature of Annuitant
X_________________________________ Date __________ City ___________ State_______
Signature of Authorized Individual (REQUIRED FOR EDC AND
TRUSTEED) OR OWNER
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGENT'S SECTION
Will any existing Insurance or annuity be replaced or changed (or has it been),
assuming the Contract will be issued? | | Yes | | No | |
| | I (we) certify that a prospectus for the Contract has been given to the
proposed Annuitant and that no written sales materials other than those approved
by The Equitable have been used.
EQUI-VEST issues must adequately reflect the commission interest of all Agents
on previous contracts.
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Print Agent's Name(s) Initial of Last Agent Agent Agency District Agent's
(Service Agent first) Name Number % Code Manager Code Signature
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FOR AGENCY COMPLIANCE FILE: INITIALS OF AGENCY EQS ______ Date ______ District EQS ________ Date ________
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
(For ASU Use)
ASU Code and App. No ________________________________
ASU Rec'd ___________________________________________
ASU Rec'd ___________________________________________
Date to Proc. Off ________________________Campaign | |
Agent(s) shown above is Equity Qualified and is licensed in the state where the
request is signed. Above Agent information verified by ASM (Registered Rep)
- --------------------------------------------------------------------------------
Application reviewed by _________________________________
- --------------------------------------------------------------------------------
180-1000
<PAGE>
Owner: ABC STATE DEFERRED COMPENSATION PROGRAM
Annuitant: JOHN DOE
Contract Number: 00 000 000
Issue Date: FEB 28, 1992
Contract Date: FEB 28, 1992
Retirement Date: JAN 1, 2020
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O. New York,
New York 10116
AGREES
o TO ALLOCATE the Contributions made to this Contract after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division of the Separate Account (referred
to in this Contract as the "Investment Divisions") or to the Guaranteed
Interest Division, in accordance with Sections 2.02, 2.03 and 2.04 as
directed by you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide the
Annuitant with an Annuity Benefit or a Cash Value benefit if the Annuitant
is then living, and
o TO PROVIDE you with the other rights and benefits of this Contract.
This is the entire Contract. These agreements are subject to the provisions of
this Contract. In this Contract, "we", "our" and "us" mean The Equitable Life
Assurance Society of the United States. "You" and "your" mean the Employer at
the time a right is exercised by the Employer.
TEN DAYS TO EXAMINE CONTRACT - You may cancel this Contract by returning it to
us within ten days after receipt of it. Upon such cancellation, we will refund
any Contribution made to us on the Annuitant's behalf under this Contract.
/s/ Molly K. Heines /s/ Richard H. Jenrette
Vice President and Secretary Chairman of the Board
and Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
FOR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.24 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISKS, EXPENSES AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92 EDCA
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
- -------------------------------------------------------------------------------
TABLE OF CONTENTS
Definitions Page
Section 1.01 - Annuitant................................4
1.02 - Annuity..................................4
1.03 - Annuity Account Value....................4
1.04 - Annuity Benefit..........................4
1.05 - Cash Value...............................4
1.06 - Class of Contracts.......................5
1.07 - Code.....................................5
1.08 - Contract.................................5
1.09 - Contract Date............................5
1.10 - Contract Year............................5
1.11 - Contribution.............................5
1.12 - Divisions................................5
1.13 - Eligible Annuity Certain.................5
1.14 - Employer.................................5
1.15 - Guaranteed Interest Rate.................5
1.16 - Joint and Survivor Life
Annuity Form.............................5
1.17 - Life Annuity Form........................5
1.18 - Normal Form..............................5
1.19 - Period Certain Annuity...................5
1.20 - Plan.....................................5
1.21 - Processing Office........................6
1.22 - Retirement Date..........................6
1.23 - Separate Account.........................6
1.24 - Separate Account Definitions.............7
1.25 - Substituted Beneficiary..................7
1.26 - Transaction Date.........................7
1.27 - Trust....................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions............................8
2.02 - Separate Account Investment
Divisions................................8
2.03 - Guaranteed Interest Division.............8
2.04 - Allocation to Divisions..................8
2.05 - Transfers Among Divisions................9
2.06 - Termination of this Contract.............9
2.07 - Partial Withdrawals......................9
2.08 - Charges for Partial
Withdrawals..............................9
2.09 - Free Corridor Amount....................10
2.10 - Annual Administrative
Charge..................................10
2.11 - Death Benefit...........................10
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit...................10
3.02 - Variable Annuity Benefit................11
3.03 - Election and Commencement of
Annuity Benefits........................11
3.04 - Amount of Annuity Benefits..............11
3.05 - Payment of Annuity Benefits.............12
GENERAL PROVISIONS
Section 4.01 - Contract................................14
4.02 - Statutory Compliance....................14
4.03 - Nonforfeitability, Nontransfer-
ability and Assignments.................14
4.04 - Beneficiary.............................15
4.05 - Disqualification of
Plan or Contract........................15
4.06 - Future Contributions....................15
4.07 - Deferment...............................15
4.08 - Annual Notice...........................15
4.09 - Age.....................................15
4.10 - Ownership Right of Employer.............15
No. 92 EDCA Page 2
<PAGE>
<TABLE>
<CAPTION>
OWNER: ABC STATE DEFERRED COMPENSATION PROGRAM
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28, 1992
RETIREMENT DATE: JAN 1, 2020
INITIAL GUARANTEED INTEREST RATE: 7.50% TO MAR 31, 1992
MINIMUM GUARANTEED INTEREST RATE: 6.00% TO DEC 31, 1992
3.00% AFTER DEC 31, 1992
BENEFICIARY: JANE DOE
FORM NUMBER: 92 EDCA
- ---------------------------------------------------------------------------------------------------------------
TABLE OF GUARANTEED VALUES
ISSUE AGE 38 MALE $1000 ANNUAL CONTRIBUTION
NUMBER OF YEARS GUARANTEED GUARANTEED PAID-UP MONTHLY
SINCE FIRST CONTRIBUTION CASH VALUE ANNUITY AT AGE 65*
------------------------ ---------- ------------------
<S> <C> <C> <C>
1 976 6.62
2 1,946 16.20
3 2,944 26.67
4 3,998 38.83
5 5,064 46.70
6 6,220 56.28
7 7,362 65.58
8 8,538 74.61
9 9,841 83.38
10 11,204 91.89
11 12,628 100.16
12 14,117 108.18
13 15,673 115.97
14 17,143 123.53
15 18,658 131.18
16 20,217 138.63
17 21,824 145.90
18 23,478 152.80
19 25,213 159.69
20 26,999 166.03
24 (Age 62) 34,697 189.57
27 (Age 65) 41,098 205.49
</TABLE>
THE TABLES ILLUSTRATE MINIMUM GUARANTEED VALUES AND ASSUME A HYPOTHETICAL $1,000
CONTRIBUTION MADE ANNUALLY ON THE FIRST OF THE MONTH FOLLOWING THE CONTRACT
DATE. THE GUARANTEED CASH VALUE TABLE REFLECTS AN ANNUAL ADMINISTRATIVE CHARGE
(SEE SECTION 2.10) AND A WITHDRAWAL CHARGE OF UP TO 6% OF THE ANNUITY ACCOUNT
VALUE (SEE SECTION 1.05). THE TABLES ASSUME THAT 100% OF ALL CONTRIBUTIONS AND
EARNINGS ARE ALLOCATED TO AND REMAIN IN THE GUARANTEED INTEREST DIVISION.
YOUR ACTUAL GUARANTEED VALUES MAY DIFFER FROM THOSE SHOWN ABOVE, DEPENDING ON
THE LEVEL AND FREQUENCY OF YOUR CONTRIBUTIONS.
THE GUARANTEED PAID-UP MONTHLY ANNUITY SHOWN ABOVE WILL BE REDUCED BY ANY CHARGE
WE MAKE FOR ANY APPLICABLE TAXES (SEE SECTION 3.04). OTHER FORMS OF ANNUITY
BENEFITS MAY BE AVAILABLE; HOWEVER, ANY ANNUITY BENEFIT CONTRACT ELECTED AS A
SETTLEMENT WITHIN 5 YEARS OF THE CONTRACT DATE WILL BE SUBJECT TO A CHARGE (SEE
SECTION 3.04).
*ASSUMES FIXED BENEFIT JOINT AND SURVIVOR LIFE ANNUITY (100% CONTINUATION TO
SURVIVOR) WITH JOINT ANNUITANT THE SAME AGE AS THE ANNUITANT.
No. 92 EDCA Page 2
<PAGE>
PART I - DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means an individual who
participates in a Plan, or, if the Plan permits, a beneficiary under the Plan,
as shown on Page 3 of this Contract, and on whose behalf this Contract is
purchased and is maintained.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the terms of the Plan.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account pursuant to Sections 2.02 and 2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.16, 1.17, 1.18, 1.19, 3.01, and 3.02) refer to monthly
payments to be made under an Annuity Benefit. You may elect to have the Annuity
Benefit paid at other intervals, such as quarterly, semi-annually, or annually,
instead of monthly. You may elect this at the time you elect the Annuity Benefit
form as described in Section 3.03; in that event, all references in this
Contract to monthly payments will be deemed to mean payments at the frequency
you elect, subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less any applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where:
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Account Value over (ii) the
Free Corridor Amount defined in Section 2.09.
(b) is the excess, if any, of (i) 8% of the total Contributions made on the
Annuitant's behalf during the current Contract Year and the nine preceding
Contract Years over (ii) the cumulative total of any prior partial
withdrawal charges made pursuant to Section 2.08.
However, notwithstanding the above, if the Annuitant is age 60 or older on the
Contract Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of
the excess of the Annuity Account Value over the Free Corridor Amount.
A withdrawal charge will not apply, which means the Cash Value will equal the
Annuity Account Value upon any of the following occurrences:
(i) the later of the completion of at least five Contract Years and the
Annuitant's attainment of age 59 years and 6 months, or
(ii) the completion of at least twelve Contract Years, or
(iii) a request is made for a refund of a Contribution in excess of the amount
that may be contributed under Section 457 of the Code within one month of
the date on which the Contribution is made, or
(iv) the Annuitant's attainment of age 55, his completion of at least five
Contract Years and the receipt by us of a properly completed settlement
election form providing for the application of the Annuity Account Value
to purchase an Eligible Annuity Certain, defined in Section 1.13, or
(v) the Annuitant's completion of at least three Contract Years and the
receipt by us of a properly completed settlement election form providing
for the application of the Annuity Account Value to purchase a Period
Certain Annuity, defined in Section 1.19, where the certain period of
such annuity is at least ten years, or
(vi) the receipt by us of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase a
life annuity distribution, pursuant to the terms of this Contract, or
(vii) the Annuitant dies and a death benefit is payable to the beneficiary.
No. 92 EDCA Page 4
<PAGE>
The above statements notwithstanding, we reserve the right to modify or waive
any early withdrawal charges in order to comply with any applicable state or
local legal or regulatory requirements. Any such modification or waiver will
apply equally to all Annuitants under a Plan subject to such a state or local
legal or regulatory requirement.
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made to us
pursuant to the terms of the Plan to this Contract. We are under no obligation
to accept any Contribution less than $20.00.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following divisions described in this
Contract:
(i) the Guaranteed Interest Division, and
(ii) the Investment Divisions of the Separate Account.
SECTION 1.13 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
a Period Certain Annuity issued by us which extends beyond the Annuitant's
attainment of age 59 years and 6 months and does not permit any prepayment of
the unpaid principal (that is, no withdrawal or single sum payment) prior to
your attainment of age 59 years and 6 months.
SECTION 1.14 EMPLOYER. The term "Employer" means one of the following types of
entity which is eligible to adopt, has adopted, and maintains a Plan: (i) a
State, a political subdivision of a State, or an agency or instrumentality of a
State or political subdivision of a State, or (ii) any other organization exempt
from tax under the Code which has adopted and maintains a Plan for a select
group of management or highly compensated employees within the meaning of the
Employee Retirement Income Security Act of 1974, as amended. The Employer is the
Owner of and beneficiary under this Contract.
SECTION 1.15 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrued on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on Page 3 of
this Contract. Section 2.03 describes the determination of the rate to apply
thereafter.
SECTION 1.16 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.17 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose Life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.18 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means (i) if the Annuitant has a living spouse at the Retirement
Date, the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity
Form with such spouse as the contingent annuitant (with 100% of the monthly
payment amount continued to the spouse), and (ii) if the Annuitant does not have
a living spouse at the Retirement Date, the Fixed Annuity Benefit payable on the
Life Annuity Form.
SECTION 1.19 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
the payment as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 1.20 PLAN. The term "Plan" refers to an "Eligible Deferred Compensation
Plan" meeting the requirements of Section 457(b) of the Code and applicable
Treasury Regulations which is established and maintained by an Employer for the
benefit of individuals performing services for the Employer and their
beneficiaries.
No. 92 EDCA Page 5
<PAGE>
SECTION 1.21 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P.O. Box 2996, GPO, New York, New York 10116, or such
other location as we shall designate by advance written notice to the Employer
or the Plan's Trustee, as applicable.
SECTION 1.22 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Annuitant attains the retirement age as shown on Page 3 of this Contract.
Before the Retirement Date the Employer may elect to change the Retirement Date
to another Retirement Date, which may be any date after the filing of the
election (other than the 29th, 30th, or 31st day of any month). No Retirement
Date shall be earlier than the Retirement Date provided under the Plan nor shall
it be later than the date the Annuitant attains age 70 years and 6 months. Any
election for such change must be made in writing by you and shall not take
effect until received by us at the Processing Office.
SECTION 1.23 SEPARATE ACCOUNT. The term "Separate Account" means Separate
Account A which is organized as a unit investment trust, a type of investment
company. We established the Separate Account and it is maintained in accordance
with the laws of New York State. Realized and unrealized gains and losses from
the assets of the Separate Account are credited to or charged against it without
regard to our other income, gains or losses. Assets are put in the Separate
Account to support this Contract and other variable annuity contracts and
certificates. Assets may be put in the Separate Account for other purposes, but
not to support contracts or policies other than variable annuities or variable
life insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
such Trust. We reserve the right to change the designated trust or investment
company or to add designated trusts or investment companies. The Investment
Divisions available are the Stock Division, the Money Market Division, the
Balanced Division and the Aggressive Stock Division. The Guaranteed Interest
Division is not part of the Separate Account, but rather is an asset of our
General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to:
(i) cause the registration or deregistration of the Separate Account under
the Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any
other form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to,
or remove Investment Divisions (or sub-divisions of Investment Divisions)
from the Separate Account (the term "Investment Division" in this
Contract shall then refer to any other Investment Division in which the
assets, of a class of contracts to which this Contract belongs, were
placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
class of contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
No. 92 EDCA Page 6
<PAGE>
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for applicable tax
charges) at a rate not to exceed 1.49% per year for each of the Stock, Money
Market and Balanced Divisions, and 1.34% per year for the Aggressive Stock
Division, for financial accounting, death benefits, mortality risk, expenses and
expense risk. The charge shall be made in accordance with Subsection (c) of the
Net Investment Factor provision in Section 1.24. The relative proportion of
these charges may be modified. This daily charge, plus the investment advisory
fee charges and direct operating expense charges of the Trust, shall not exceed
a total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract.
SECTION 1.24 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c) where
(a) is the value of the Investment Division's shares of the Corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share
value reported to us by the Trust.
(b) is the value of the Investment Division's shares of the Corresponding
portfolio of the Trust at the end of the preceding Valuation Period
(after taking into account any amounts allocated or withdrawn for that
Valuation Period).
(c) is the daily Separate Amount charge for the expenses of this Contract
times, the number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where Contributions made on the Annuitant's behalf are
invested and which is used in determining the amount in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for that Investment Division for such Valuation Period.
ANNUITY UNIT: The "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: An "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first Contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base Rates of Net Investment Return of 5% and 3.5% a year, respectively. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods ending in such month.
SECTION 1.25 SUBSTITUTED BENEFICIARY. The term "Substituted Beneficiary" refers
to the beneficiary designated under the Plan by the Annuitant to receive death
benefits payable under the Plan, where the Employer has elected, pursuant to
Section 4.04 to designate such person to receive the death benefit payable under
Section 2.11.
SECTION 1.26 TRANSACTION DATE. The term "Transaction Date" means the business
day we receive a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone, as
described in Section 2.05, the Transaction Date is the business day the
telephone transaction is received.
SECTION 1.27 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
No. 92 EDCA Page 7
<PAGE>
PART II - ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. You are to make Contributions form time to time on
such dates and in such amounts as you determine pursuant to the terms of the
Plan. Contributions will be allocated to the Divisions in accordance with the
instructions received on the application, unless later changed.
Each Contribution received by us on the Annuitant's behalf will, before its
allocation under this Contract, be reduced by the amount of any applicable tax
charge, as determined by us.
If the Plan permits, we will accept transfers made from another eligible
deferred compensation plan meeting the requirements of Section 457 of the Code
or other funds invested under the Employer's Plan.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to, or withdrawn or transferred from, an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing said amount by
the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units in an Investment
Division on any date is equal to (i) the sum of any Accumulation Units that have
been allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation
Units that have been withdrawn pursuant to Sections 2.07 or 2.08 or transferred
from the Investment Division pursuant to Section 2.05. The amount in an
Investment Division on any date is equal to the product of (i) the number of
Accumulation Units in the Investment Division on that date and (ii) the
Accumulation Unit Value for the Investment Division for the Valuation Period
which includes that date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) Election and Commencement of Annuity Benefits pursuant to
Section 3.03, (ii) receipt of due proof of the Annuitant's death or (iii)
Termination of this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Sections 2.07, 2.08 or 2.10 or
transferred from the Guaranteed Interest Division pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date
pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under the terms of this
Contract terminates on the earliest of (i) Election and Commencement of Annuity
Benefits pursuant to Section 3.03, (ii) receipt of due proof of Annuitant's
death or (iii) Termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction for any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date. If your Plan permits, and you
provide us with advance written instructions to do so, we will accept allocation
instructions directly from the Annuitant.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application on amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon termination of this Contract pursuant to Section 2.06 and (vi)
upon the Annuitant's death pursuant to Section 2.11.
No. 92 EDCA Page 8
<PAGE>
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request or through
the use of a touch tone telephone, transfer all of part of the amount you have
in a Division to one or more of the Divisions as follows: (1) amounts in the
Guaranteed Interest Division, Stock Division, Balanced Division and Aggressive
Stock Division may be transferred among such Divisions; and (2) amounts in the
Money Market Division may be transferred to other Divisions. Written
authorization for touch tone telephone initiated transfers is only required when
authorization for telephone transfers is requested. Upon advance written notice
to you, we reserve the right to discontinue the acceptance of transfer requests
through the use of a touch tone telephone. If the Plan permits and you provide
us with advance written instructions to do so, we will accept transfer
instructions directly from the Annuitant. All transfers will be effective on the
Transaction Date and will be subject to our rules in effect at the time of
transfer. With respect to the Investment Divisions, the transfer will be made at
the Accumulation Unit Value next computed after the Transaction Date. No
transfers are permitted to the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. Subject to any restrictions under the
terms of the Plan, you may elect by written notice to terminate this Contract.
We will determine the Cash Value of this Contract as of the Transaction Date.
If this Contract is terminated, surrendered or exchanged prior to the
Annuitant's Retirement Date, any applicable tax charges we have paid may be
deducted. If we previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on terminations, unless a change in applicable law has occurred with
respect to this Contract.
Cash Value payments may be deferred by us in accordance with the provisions of
Section 4.07.
Subject to the terms of the Plan, we reserve the right to pay the Annuity
Account Value under this Contract and terminate this Contract if (i) you make no
Contributions during the last three completed Contract Years, or (ii) you make a
partial withdrawal that would result in the Annuitant's Annuity Account Value
falling below $500. We also reserve the right to terminate this Contract if no
Contributions have been made within 120 days from the Contract Date shown on
Page 3 of this Contract.
We will pay the Cash Value or Annuity Account Value, as applicable, directly to
you unless you give us written notice at the time of termination that you
request us to make payment to the Annuitant or another person, and that such
payment is permissible under the Plan.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions under this Contract and the Annuity Account Value
with respect to this Contract shall be zero. We will be released from any and
all liability for payments with respect to the Contributions from which the
Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any restrictions under the terms of
the Plan, you may elect by written notice to us to make a partial withdrawal
from the Divisions.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to you. The amount paid plus any withdrawal
charge applicable pursuant to Section 2.08 will be withdrawn from the amounts
you have in the Divisions. Unless instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts that you have in such Divisions.
We will pay the Cash Value or Annuity Account Value, as applicable, directly to
you unless you give us written notice at the time of the withdrawal that you
request us to make payment to the Annuitant or another person, and that such
payment is permissible under the Plan.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal less than $300. If a
withdrawal under this Section would result in an Annuity Account Value of less
than $500, we will so advise you and reserve the right to pay the Annuity
Account Value to you, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE FOR PARTIAL WITHDRAWALS: There will be no charge for a
partial withdrawal if (a) the amount of partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.09 or (b) the Cash
Value is equal to the Annuity Account Value, pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount in proportion to the amount you have in
them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
No. 92 EDCA Page 9
<PAGE>
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on the
Annuitant's behalf during the current Contract Year and the nine preceding
Contract Years over (ii) the cumulative total of any prior partial
withdrawal charges made pursuant to this Section.
If withdrawals are made from this Contract prior to the Annuitant's Retirement
Date, any applicable tax charges we have paid with respect to this Contract may
be deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to this Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means if the
Annuitant has completed three Contract Years or attained age 59 years and 6
months an amount equal to the excess, if any, of (i) 10% of the sum of the
Annuity Account Value on the Transaction Date over (ii) cumulative prior
withdrawals made pursuant to Section 2.07 in the current Contract Year. If the
Annuitant has not completed three Contract Years or attained age 59 years and 6
months, the Free Corridor Amount is zero.
SECTION 2.10 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $25,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts you have in the
Divisions.
If the Annuity Account Value is $25,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
If the Annuity Account Value is less than $25,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of this Contract pursuant to Sections 2.06 or
2.11, we will prorate the Annual Administrative Charge applicable to the
completed portion of the current Contract Year and withdraw such amount in lieu
of the Annual Administrative Charge described in this Section for the applicable
part of that Contract Year.
SECTION 2.11 DEATH BENEFIT. Upon receipt of due proof of the Annuitant's death,
we will pay to you as beneficiary in a single sum the amount of the death
benefit. You may change the beneficiary or the payment method of the death
benefit as permitted by the Plan, pursuant to Section 4.04. The amount of the
death benefit is equal to the greater of (i) the Annuity Account Value and (ii)
the minimum death benefit. Such minimum death benefit is the sum of all
Contributions made by you pursuant to Section 2.01 (before reduction for any
applicable tax charge) less any withdrawals made pursuant to Section 2.07. Any
such withdrawal will reduce the minimum death benefit (as adjusted by any
previous such withdrawal) by an amount which is in the same proportion as the
amount that was withdrawn is to the Annuity Account Value. If, in accordance
with the provisions in Section 2.01, the cash value of another annuity contract
issued by us or one of our affiliated or subsidiary life insurance companies,
which provides for a death benefit before retirement equal to the greater of the
contract cash value or an alternate amount based on premiums paid or
contributions made under the annuity contract, is transferred to this Contract,
such cash value or alternative amount as of the date of transfer will be
included in the "sum of all Contributions" in lieu of the amount of cash value
transferred for purposes of the death benefit under this Contract.
We will pay the death benefit to the beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to the
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value under this Contract shall be zero. We will be released
from any and all liability for payments with respect to the Contributions from
which the Annuity Account Value arose.
- -------------------------------------------------------------------------------
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
No. 92 EDCA Page 10
<PAGE>
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
with respect to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of net
investment return referred to in Section 1.24 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.23, not to exceed the maximum rate of 1.75% after any deductions to
provide for tax charges. These charges include a daily charge for financial
accounting, death benefits, mortality risk, expenses and expense risk, plus the
investment advisory fee charges and direct operating expense charges of the
Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the terms of this Contract with respect to a payee is the
monthly amount provided with respect to the payee pursuant to the fourth
paragraph of section 3.04. The amount of the fourth and each subsequent payment
under a Variable Annuity Benefit will be equal to the number of Annuity Units
with respect to such benefit, multiplied by the Average Annuity Unit Value for
the second calendar month immediately preceding the due date of the payment. The
number of Annuity Units with respect to a benefit is the number determined by
dividing the amount of the first monthly payment under such benefit by the
Annuity Unit Value for the Valuation Period which includes the due date of the
first monthly payment. (As described in Section 3.05, we will notify the payee
how each Variable Annuity payment is determined.)
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of the
Annuitant's Retirement Date, provided the Annuitant is then living, the Annuity
Account Value shall be applied to provide the Normal Form of Annuity Benefit,
unless you elect, subject to the terms of the Plan and the provisions of the
Code, (i) to have the Cash Value paid in a single sum, (ii) to apply the Annuity
Account Value or Cash Value, whichever is applicable pursuant to the first
paragraph of Section 3.04, to provide an Annuity Benefit on any other form
offered by us or one of our affiliated or subsidiary life insurance companies,
as elected by you or (iii) to take partial withdrawals in amounts and at times
as required by the distribution rules of Section 457(d) and 401(a)(9) of the
Code and applicable Treasury Regulations, pursuant to Section 3.05, and subject
to our rules then in effect.
Notice and election forms will be provided to you not more than six months prior
to the Retirement Date. (On your prior written request we will also provide
notice and election forms directly to the Annuitant.)
If you elect prior to the Annuitant's Retirement Date to terminate this Contract
pursuant to Section 2.06, you may elect to have an Annuity Benefit paid in lieu
of the Cash Value.
If your Plan permits and you provide us written instructions to do so in advance
of payment, we will make payment of the Cash Value, Annuity Benefits or partial
withdrawals directly to the Annuitant, Substituted Beneficiary or other payee
designated by you.
We will have the right to require you to furnish pertinent information to
provide an Annuity Benefit, and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect pursuant to the first or
third paragraph of Section 3.03 to have paid an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the annuity form elected involves life contingencies,
or (ii) the Cash Value if the annuity form elected does not involve life
contingencies.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any applicable taxes on annuity considerations, as we determine. If we have
previously deducted charges for applicable taxes from Contributions as provided
in Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to this Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, this Contract will be governed by our
supplementary contract then in effect.
No. 92 EDCA Page 11
<PAGE>
If an amount is applied to an Annuity Benefit, the amount to be applied will, in
addition to any tax charge reduction, be reduced by an administrative charge.
The amount of such charge will be determined from time to time in accordance
with our general practices applicable on a uniform basis to all contracts of the
same type as this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated, on either the Life Annuity Form or the Joint and
Survivor Life Annuity Form (with 100% of the amount of your payment continued to
your spouse). The amount of income provided under the Fixed Annuity Benefit
payable on the Life Annuity Form and Joint and Survivor Life Annuity Form, is
based on 3.5% interest and the 1983 Individual Annuity Mortality Table "a"
adjusted to a unisex basis based on a 50-50 split of males and females. The
amounts of income initially provided under the Variable Annuity Benefit payable
on the Life Annuity Form and Joint Survivor Life Annuity Form are based on a
50-50 split of males and females at age zero and an Assumed Base Rate of Net
Investment Return of 3.5% or 5%, whichever applies pursuant to Section 1.23.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us on 3.5% interest and the 1983 Individual Annuity Mortality
Table "a" adjusted to a unisex basis based on a 50-50 split of males and females
at age zero if such annuity form provides for a Fixed Annuity Benefit, and on
the projected 1983 Basic Table "a" adjusted to a unisex basis based on a 50-50
split of males and females at age zero and an Assumed Base Rate of Net
Investment Income Return of 5% or 3.5%, whichever applies pursuant to Section
1.23, if such annuity form provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Pursuant to Sections 457(d) and
401(a)(9) of the Code, and subject to the terms of the Plan, the entire interest
of the Annuitant will be distributed or begin to be distributed, no later than
the first day of April following the calendar year in which the Annuitant
attains 70 years and 6 months ("Required Beginning Date"). The entire interest
may be distributed, as elected pursuant to the Plan and this Contract, over (a)
the life of the Annuitant, or the lives of the Annuitant and a designated
beneficiary, or (b) a period certain not extending beyond the Annuitant's life
expectancy, or the joint and last survivor life expectancy of the Annuitant and
a designated beneficiary. Distributions must be made in periodic payments at
intervals of no longer than one year. In addition, payments must be either
nonincreasing or they may increase only as provided in Q&A F-3 of Section
1.401(a)(9)-1 of the Proposed Treasury Regulations, or any successor Regulation
thereto. All distributions made hereunder shall be made in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental death
benefit requirements of Section 401(a)(9)(G) of the Code, and applicable
Treasury Regulations, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless otherwise elected prior to the time distributions are required to begin,
those life expectancies shall be recalculated annually. Such election shall be
irrevocable and shall apply to all subsequent years. The life expectancy of a
non-spouse beneficiary may not be recalculated. Instead, life expectancy will be
calculated using the attained age of such beneficiary during the calendar year
in which the Annuitant attains age 70 years and 6 months, and payments for
subsequent years shall be calculated based on such life expectancy reduced by
one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If the Annuitant dies after distribution of the interest described in the first
paragraph of this Section has begun, the remaining portion of such interest will
continue to be distributed at least as rapidly as under the method of
distribution being used prior to the Annuitant's death.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, and distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
If the Annuitant dies before distribution of the interest described in the first
paragraph of this Section begins, distribution of the entire interest shall be
completed no later than December 31 of the calendar year containing the fifth
anniversary of the Annuitant's death, except to the extent that an election is
made to receive death benefit distributions in accordance with (1) or (2) below:
(1) If the Annuitant's interest is payable to a designated beneficiary, then
the entire interest may be distributed over a period certain not greater
than the life expectancy of the designated beneficiary. Such distributions
must commence on or before December 31 of the calendar year immediately
following the calendar year of the Annuitant's death. If the designated
beneficiary is not the Annuitant's surviving spouse, a period certain
Annuity Benefit cannot exceed 15 years, (even if life expectancy is greater
than 15 years).
(2) If the designated beneficiary is he Annuitant's surviving spouse, the date
distributions that are required to begin in accordance with (1) above shall
not be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of the Annuitant's death or (B)
December 31 of the calendar year in which the Annuitant would have attained
age 70 years and 6 months.
No. 92 EDCA Page 12
<PAGE>
For purposes of determining the "period certain" referred to in the immediately
preceding paragraph, life expectancy is computed by use of the expected return
multiples in Tables V and VI of Treasury Regulation Section 1.72-9. For purposes
of distributions beginning after the Annuitant's death,, unless otherwise
elected by the surviving spouse by the time distributions are required to begin,
life expectancies shall be recalculated annually. Such election shall be
irrevocable by the surviving spouse and shall apply to all subsequent years. In
the case of any other designated beneficiary, life expectancies shall be
calculated using the attained age of such beneficiary during the calendar year
in which distributions are required to begin pursuant to this Section, and
payments for any subsequent calendar year shall be calculated based on such life
expectancy reduced by one for each calendar year which has elapsed since the
calendar year life expectancy was first calculated.
Distributions under this Section are considered to have begun if distributions
are made because the Required Beginning Date was reached, or, if prior to the
Required Beginning Date, distributions irrevocably commence to an individual
over a period permitted an in an annuity form acceptable under Section
1.401(a)(9) of the Proposed Treasury Regulations or any successor Regulation
thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under the terms of this Contract was based on information
that is subsequently found to be incorrect, the benefit will not be invalidated,
but an adjustment on the basis of the correct information will be made in the
amount of the benefit payments, or any amount used to provide the benefit, or
any combination thereof. Overpayments by us will be charged against, and
underpayments will be added to, any payments thereafter falling due under this
Contract with respect to the payee, affecting as many such payments as are
necessary to correct the overpayment or underpayment. Our liability, with
respect to the payee, is limited to the correct information and the actual
amounts used to provide the benefits then in force with respect to the payee
under this Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under this Contract is physically or mentally incompetent to receive
such payment or is a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments (in the case of a minor, at a rate not exceeding $200 a month) to
such other person or institution, and will thereupon be fully discharged from
all liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Pursuant to Section 3.03, upon the election of an annuity form providing payment
for a period certain, you (or the Annuitant, if you have advised us in writing
that it is permitted under the terms of the Plan) may designate (with the right
to change such designation) a payee to receive any payments that may become due
after the death of the person or persons upon whose life or lives the income may
depend.
Subject to the terms of the Plan, the payee may designate (with the right to
change such designation and without the concurrence of any other person) a
person or persons to receive any payments or installments payable after such
payee's death, if the absence of such a designation would result in a single sum
payment to such payee's estate in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis
applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
period due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
No. 92 EDCA Page 13
<PAGE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT
AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
Age 60 61 62 63 64 65 66 67 68 69 70
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
- ----------- ---------- --------- ---------- ---------- --------- ---------- ---------- ---------- --------- ---------- ----------
</TABLE>
ANNUITY BENEFIT PAYABLE
ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
INVESTMENT RETURN IS
Age 3.5% 5%
- ------------- ------------------------ ----------------------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
We will, with respect to each payment of a Variable Annuity Benefit, notify the
payee of the number of Annuity Units and the Average Annuity Unit Value used in
determining the amount of each variable payment. Such notice will be mailed with
each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary as
described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
- -------------------------------------------------------------------------------
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. The Contract constitutes the entire Contract between the
parties and the terms of this Contract alone will govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between the
Owner and us without the consent of any other person.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend the term of
this Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform this Contract to reflect changes in the Code,
applicable Treasury Regulations or in regulations or published rulings of the
Internal Revenue Service so that this Contract will continue to be an Annuity
utilized to fund a plan qualifying under Section 457 of the Code.
SECTION 4.03 NONFORFEITABILITY, NONTRANSFERABILITY AND ASSIGNMENTS. The entire
interest under this Contract is nonforfeitable except by surrender to us.
Any interest under the terms of this Contract may not be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
us.
No amount payable under the terms of this Contract may be assigned or commuted,
unless specifically provided for under the terms of this Contract, or encumbered
by the payee, and, to the extent permitted by law, no such amount will in any
way be subject to any claim against such payee.
No. 92 EDCA Page 14
<PAGE>
SECTION 4.04 BENEFICIARY. You, as beneficiary, are entitled to receive any death
benefit payable under this Contract pursuant to Section 2.11. Upon the
Annuitant's death you may, by written request to our Processing Office, at any
time up to and including provision of due proof of such death, change the
beneficiary designation for the Section 2.11 death benefit from you to the
Substitute Beneficiary.
Subject to the terms of the Plan, the Substitute Beneficiary may elect to
receive the death benefit payable under Section 2.11 in the form of an Annuity
Benefit rather than as a single sum. Any such election must meet the minimum
distribution rules of Sections 457(d) and 401(a)(9) of the Code and applicable
Treasury Regulations, as described in Section 3.05.
SECTION 4.05 DISQUALIFICATION OF PLAN OR CONTRACT. In the event that the Plan
fails to qualify as an Eligible Deferred Compensation Plan under Section 457 of
the Code and applicable Treasury Regulations, we reserve the right, upon
receiving notice of such fact, to transfer the Annuity Account Value under this
Contract to another annuity contract issued by us or one of our affiliated or
subsidiary life insurance companies on the life of the Annuitant, or to
terminate this Contract and pay to the Annuity Account Value less a deduction
for applicable taxes, solely at our option.
In the event that this Contract fails to qualify as an Annuity as described in
Section 1.02, we will have the right, upon receiving notice of such fact, to
terminate this Contract and pay to you the Annuity Account Value less a
deduction for the appropriate part attributable to you of any income tax payable
by you which would not have been payable if you had an Annuity.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to you, we reserve the
right to limit Contributions under this Contract if required by law.
SECTION 4.07 DEFERMENT. Applications of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of the Annuity Account Value (less
any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payments in order to protect
persons with interests in the Investment Divisions. We can defer payment of any
portion of the Annuity Account Value in the Guaranteed Interest Division for up
to six months while the Annuitant is living.
SECTION 4.08. ANNUAL NOTICE. At the end of each Contract Year, we will furnish
you with a notice showing the following:
(1) the amount in the Guaranteed Interest Division,
(2) the total number of Accumulation Units in the Stock Division, Balanced
Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Value,
(4) the amount you have in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division,
(5) the Cash Value, and
(6) the amount of death benefit payable with respect to the Annuitant.
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
After your Retirement Date, we will notify the Employer of the number of Annuity
Units and the Average Annuity Unit Value used in determining the amount of each
Variable Annuity Benefit payment, if any.
SECTION 4.09 AGE. If the Annuitant's age has been misstated, any benefits will
be those which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
SECTION 4.10 OWNERSHIP RIGHT OF EMPLOYER. Notwithstanding any other provision of
the terms of this Contract, until amounts under this Contract are distributed or
made available to the Annuitant or the Annuitant's beneficiary in accordance
with the terms of this Contract and the terms of the Plan, this Contract remains
solely the property of the Employer subject only to claims of the Employer's
general creditors. This Section shall be construed and administered in
accordance with Section 457(b)(6) of the Code and the regulations thereunder.
No. 92 EDCA Page 15
<PAGE>
APPLICATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, New York,
New York 10116-2996
QUALIFIED VARIABLE ANNUITY CONTRACT APPLICATION FOR:
EQUITABLE'S INDIVIDUAL QUALIFIED DEFERRED VARIABLE ANNUITY
-------------------------------------------------------------------------------
TYPE OF PURCHASE (Complete One Plan Only)
A. |_| TSA PUBLIC SCHOOL (GV-PS-I)
B. |_| TSA 501(c)(3) ORGANIZATION (GV-501-I)
C. |_| TSA University (GV-PS-U-I)
D. |_| IRA Individual (including IRA to IRA transfers) (GV-IRA 4971)
E. |_| IRA Unit Billed (including IRA to IRA transfers) (GV-IRA 4971)
F. |_| IRA QUALIFIED PLAN ROLLOVER-- (QP IRA) (Distribution from a Qualified
Plan) (GV-IRA 4971-71)
G. |X| EDC (Public Employee Deferred Compensation) (GV-EDC 4991)
H. |_| EDC (Tax Exempt Organization) (GV-EDC 4991-SU-808)
I. |_| SEP (Simplified Employee Pension) (GV-SEP 4981)
J. |_| SARSEP (Salary Reduction SEP) _________________________________________
K. |_| CORPORATE TRUSTEED (GV-CORP 4941-41)
L. |_| KEOGH/HR-10 TRUSTEE (GV HR-10 4911-11)
(trustee owned)
M. |_| KEOGH/HR-10 (GV-HR-10 4911)
(not trustee owned) (issued to existing units only)
- --------------------------------------------------------------------------------
DO NOT COMPLETE THIS SECTION IF BOX 1.D OR 1.F CHECKED ABOVE
2. EMPLOYER/PLAN NAME
|A|B|C|_|S|T|A|T|E|_|D|E|F|E|R|R|E|D|_|C|O|M|P|E|N|S|A|T|I|O|N|_|P|R|O|G|R|A|M|
3. |_| EXISTING UNIT NO. |_|_|_|_|_|_|-|_|_|_|
|_| NEW UNIT |_|_|_|_|_|_|-|_|_|_|
(FOR NEW UNIT BILLED IRA, EDC, TSA, SEP, SARSEP, OR TRUSTEED PLANS,
FORM 983-135B IS REQUIRED.)
- --------------------------------------------------------------------------------
4. PROPOSED ANNUITANT Print name to appear on Contract.
|J|O|H|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|D|O|E|_|_|_|_|_|
First Middle Initial Last
A. |X| Mr. |_| Mrs. |_| Ms. |_| Other ____
B. Date of Birth: Year 1954 Month JANUARY Day 27
---- ------- --
C. Age at Nearest Birthday: 38 D. |X| Male |_| Female
----
E. Annuitant's Mailing Address: F. State of Residence: N.J.
--------
No. St. |1|7|_|E|L|M|_|S|T|R|E|E|T|_|_|_|_|_|_|_|_|_|_|_|_|
City |A|N|Y|T|O|W|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |U|S| Zip Code |0|2|0|0|0|-|0|0|0|1|
G. Telephone Number (101) 222 - 3456 |X| Home |_| Work
H. Social Security No. (Required): |1|2|3|-|4|5|-|6|7|8|9|
I. Are you associated with or employed by a member of National
Association of Securities Dealers, Inc. (NASD)? |_| Yes |X| No
5. OWNER (Print Name) -- If Trusteed or EDC Plan Print Name of Owner; for all
other Markets Print Name of Annuitant.
JOHN DOE
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a. Title _________________________________________
6. RETIREMENT AGE __65_______________________________
7. BENEFICIARY -- Include FULL NAME and RELATIONSHIP to Annuitant. (For Death
Benefit upon Annuitant's death before Retirement Date.) (BENEFICIARY MUST
BE THE OWNER FOR EDC PURCHASES AND FOR MOST TRUSTEED PLANS).
ABC STATE DEFERRED COMPENSATION PROGRAM - EMPLOYER
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8. CONTRIBUTION ALLOCATION
Guaranteed Interest Division ____%
Stock Division ____%
Money Market Division ____%
Balanced Division ____%
Aggressive Stock Division ____%
(PERCENTAGES IN WHOLE NUMBERS) Total 100%
9. CONTRIBUTIONS (NOT REQUIRED FOR 1.F)
A. Reminder Notice (Billing) Required |_| Yes |_| No
IF YES, COMPLETE B-C-D-E
B. REMINDER DATE Required for Individual IRA or otherwise must agree with
existing unit or attached 983-135B. MONTH _________ DAY __________
C. REMINDER FREQUENCY
|_| Annual |_| Semi-Annual
|_| Quarterly |_| Monthly
Available for TSA, EDC, SARSEP AND CORPORATE TRUSTEED AND UNIT BILLED
IRA ONLY:
|_| Semi-Monthly |_| Bi-Weekly
D. REMINDER AMOUNT $_____________________________________________________
E. BILLING MONTHS TO BE EXCLUDED - TSA ONLY
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10. EXPECTED FIRST CONTRACT YEAR
Contribution. $1000
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If an advanced billing and/or contract date are requested, complete #9b and
#12.
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(FOR PROCESSING OFFICE USE)
Unit Name ____________________________ Reminder Date ________________________
Cert. or App# ________________________ Amendment Required____________________
EDC Emp. Add. ________________________ Emp. Fed. ID# ________________________
Frequency ____________________________ Contract Date ________________________
Receipt Date Batch # Inquiry # Processor
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180-1000B
<PAGE>
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10. Did you receive the Separate Account Prospectus? |X| Yes |_| No
Date shown on Prospectus January 1, 1992
Date of any supplement to Prospectus ______________________________________
11. Items (a) through (f) are to be answered by the annuitant. We are
required by the NASD to ask these questions.
(a) Name of Employer: ABC Company
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(b) Address of Employer:
10 Main Street
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Anytown, NJ
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(c) Occupation Sales
-------------------------------------------------------------
(d) Assuming the contract applied for will be issued, will any existing
insurance or annuity be replaced or changed (or has it been)?
|_| Yes |x| No
(e) Estimated Family Annual Income $100,000
(f) Estimated Net Worth $250,000
(g) Investment Objective: |_| Income |X| Income & Growth
|_| Aggressive Growth |_| Growth |_| Safety of Principal
12. SPECIAL INSTRUCTIONS
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13. AMOUNT PAID WITH THIS FORM: $1000
-----------------------------------------------
(If a check is submitted with this request, no advanced Contract Date is
permitted.) BACKDATING IS NOT PERMITTED.
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the contract is not issued. The Contract Date will
be the date of receipt by Equitable of this application, properly signed and
completed, and Contribution at Equitable's Processing Office.
================================================================================
AGREEMENT
All information and statements furnished in this application are true and
complete to the best of my knowledge and belief. I understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations.
IT IS UNDERSTOOD THAT THE ANNUITY ACCOUNT VALUE ATTRIBUTABLE TO ALLOCATIONS TO
THE INVESTMENT FUNDS OF THE SEPARATE ACCOUNT AND VARIABLE ANNUITY BENEFIT
PAYMENTS MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
UNDER THE PENALTIES OF PERJURY I (WE) CERTIFY THAT THE SOCIAL SECURITY NUMBER(S)
OR TAX IDENTIFICATION NUMBER(S) PROVIDED ON THIS FORM IS (ARE) TRUE, CORRECT AND
COMPLETE.
- --------------------------------------------------------------------------------
LAWS IN YOUR STATE MAY MAKE IT A CRIME TO FILL OUT AN INSURANCE OR ANNUITY
APPLICATION WITH INFORMATION YOU KNOW IS FALSE OR TO LEAVE OUT MATERIAL FACTS.
- --------------------------------------------------------------------------------
x__________________________________ Date_______ City __________ State __________
Signature of Annuitant
x__________________________________ Date_______ City __________ State __________
Signature of Authorized Individual
(REQUIRED FOR EDC AND TRUSTEED) OR Owner
================================================================================
AGENT'S SECTION
Will any existing insurance or annuity be replaced or changed (or has it been),
assuming the Contract will be issued? |_| Yes |_| No
|_| I (we) certify that a prospectus for the Contract has been given to the
proposed Annuitant and that no written sales materials other than those approved
by The Equitable have been used.
EQUI-VEST issues must adequately reflect the commission interest of all Agents
on previous contracts.
- --------------------------------------------------------------------------------
Print Agent's Name(s) Initial of Agent Agent Agency District Agent's
(Service Agent first) Last Name Number % Code Manager Code Signature
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
For Agency Compliance File: Initials of Agency EQS_ Date_ District EQS_ Date_
- --------------------------------------------------------------------------------
(FOR ASU USE)
ASU Code and App. No. __________________________________________________________
ASU Rec'd. _____________________________________________________________________
Date to Proc. Off. ________________________________________________ Campaign |_|
Agent(s) shown above is Equity Qualified and is licensed in the state where the
request is signed. Above Agent information verified by ASM (Registered Rep)
- --------------------------------------------------------------------------------
Application reviewed by ________________________________________________________
- --------------------------------------------------------------------------------
180-1000B
<PAGE>
[THE EQUITABLE LOGO]
Owner:
Annuitant:
Contract Number:
Issue Date:
Contract Date:
Retirement Date:
- --------------------------------------------------------------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P O Box 2996,
New York, New York 10116-2996
AGREES
o TO ALLOCATE the Contributions made to this Contract after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division of the Separate Account (referred
to in this Contract as the "Investment Divisions") or to the Guaranteed
Interest Division, in accordance with Sections 2.02, 2.03 and 2.04, as
directed by you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide the
Annuitant with an Annuity Benefit or a Cash Value benefit if the Annuitant
is then living, and
o TO PROVIDE you with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract, "we", "our" and "us" mean The
Equitable Life Assurance Society of the United States. "You" and "your" mean the
Employer at the time a right is exercised by the Employer.
TEN DAYS TO EXAMINE CONTRACT -- You may cancel this Contract by returning it to
us within ten days after receipt of it. Upon such cancellation, we will refund
any Contribution made to us on the Annuitant's behalf under this Contract, plus
or minus any investment gain or loss experienced in the Investment Divisions of
the Separate Account from the date such Contribution was allocated to such
Investment Division to the date we receive the returned Contract.
/s/Pauline Sherman /s/Edward D. Miller
Pauline Sherman Edward D. Miller
Vice President, Secretary & President and
Associate General Counsel Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.24 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISKS, EXPENSES AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92 EDCB
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
DEFINITIONS Page
Section 1.01 - Annuitant ................................................4
1.02 - Annuity ..................................................4
1.03 - Annuity Account Value ....................................4
1.04 - Annuity Benefit ..........................................4
1.05 - Cash Value ...............................................4
1.06 - Class of Contracts........................................5
1.07 - Code .....................................................5
1.08 - Contract..................................................5
1.09 - Contract Date ............................................5
1.10 - Contract Year ............................................5
1.11 - Contribution .............................................5
1.12 - Divisions.................................................5
1.13 - Eligible Annuity Certain..................................5
1.14 - Employer..................................................5
1.15 - Guaranteed Interest Rate..................................5
1.16 - Joint and Survivor Life Annuity Form......................5
1.17 - Life Annuity Form.........................................5
1.18 - Normal Form...............................................5
1.19 - Period Certain Annuity ...................................5
1.20 - Plan......................................................5
1.21 - Processing Office.........................................6
1.22 - Retirement Date ..........................................6
1.23 - Separate Account .........................................6
1.24 - Separate Account Definitions..............................7
1.25 - Substituted Beneficiary ..................................7
1.26 - Transaction Date .........................................7
1.27 - Trust ....................................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions ............................................8
2.02 - Separate Account Investment Divisions.....................8
2.03 - Guaranteed Interest Division .............................8
2.04 - Allocation to Divisions ..................................8
2.05 - Transfers Among Divisions ................................9
2.06 - Termination of this Contract .............................9
2.07 - Partial Withdrawals ......................................9
2.08 - Charges for Partial Withdrawals ..........................9
2.09 - Free Corridor Amount ....................................10
2.10 - Annual Administrative Charge ............................10
2.11 - Death Benefit............................................10
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit ...................................10
3.02 - Variable Annuity Benefit.................................11
3.03 - Election and Commencement of Annuity Benefits............11
3.04 - Amount of Annuity Benefits...............................11
3.05 - Payment of Annuity Benefits .............................12
GENERAL PROVISIONS
Section 4.01 - Contract.................................................14
4.02 - Statutory Compliance ....................................14
4.03 - Nonforfeitability, Nontransferability and Assignments....14
4.04 - Beneficiary .............................................15
4.05 - Disqualification of Plan or Contract.....................15
4.06 - Future Contributions ....................................15
4.07 - Deferment ...............................................15
4.08 - Annual Notice............................................15
4.09 - Age......................................................15
4.10 - Ownership Right of Employer..............................15
No. 92 EDCB Page 2
<PAGE>
PART I -- DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means an individual who
participates in a Plan or, if the Plan permits, a beneficiary under the Plan, as
shown on Page 3 of this Contract, and on whose behalf this Contract is purchased
and is maintained.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the terms of the Plan.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account pursuant to Sections 2.02 and 2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.16, 1.17, 1.18, 1.19, 3.01, and 3.02) refer to monthly
payments to be made under an Annuity Benefit. You may elect to have the Annuity
Benefit paid at other intervals, such as quarterly, semi-annually, or annually,
instead of monthly. You may elect this at the time you elect the Annuity Benefit
form as described in Section 3.03; in that event, all references in this
Contract to monthly payments will be deemed to mean payments at the frequency
you elect, subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less any applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where:
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Account Value over (ii) the
Free Corridor Amount defined in Section 2.09.
(b) is the excess, if any, of (i) 8% of the total Contributions made on the
Annuitant's behalf during the current Contract Year and the nine preceding
Contract Years over (ii) the cumulative total of any prior partial
withdrawal charges made pursuant to Section 2.08.
However, notwithstanding the above, if the Annuitant is age 60 or older on the
Contract Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of
the excess of the Annuity Account Value over the Free Corridor Amount.
A withdrawal charge will not apply, which means the Cash Value will equal the
Annuity Account Value upon any of the following occurrences:
(i) the later of the completion of at least five Contract Years and the
Annuitant's attainment of age 59 years and 6 months, or
(ii) the completion of at least twelve Contract Years, or
(iii) a request is made for a refund of a Contribution in excess of the amount
that may be contributed under Section 457 of the Code within one month
of the date on which the Contribution is made, or
(iv) the Annuitant's attainment of age 55, his completion of at least five
Contract Years and the receipt by us of a properly completed settlement
election form providing for the application of the Annuity Account Value
to purchase an Eligible Annuity Certain, defined in Section 1.13, or
(v) the Annuitant's completion of at least three Contract Years and the
receipt by us of a properly completed settlement election form providing
for the application of the Annuity Account Value to purchase a Period
Certain Annuity, defined in Section 1.19, where the certain period of
such annuity is at least ten years, or
(vi) the receipt by us of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase a
life annuity distribution, pursuant to the terms of this Contract, or
(vii) the Annuitant dies and a death benefit is payable to the beneficiary.
No. 92 EDCB Page 4
<PAGE>
The above statements notwithstanding, we reserve the right to modify or waive
any early withdrawal charges in order to comply with any applicable state or
local legal or regulatory requirements. Any such modification or waiver will
apply equally to all Annuitants under a Plan subject to such a state or local
legal or regulatory requirement.
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made to us
pursuant to the terms of the Plan to this Contract. We are under no obligation
to accept any Contribution less than $20.00.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following divisions described in this
Contract:
(i) the Guaranteed Interest Division, and
(ii) the Investment Divisions of the Separate Account.
SECTION 1.13 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
a Period Certain Annuity issued by us which extends beyond the Annuitant's
attainment of age 59 years and 6 months and does not permit any prepayment of
the unpaid principal (that is, no withdrawal or single sum payment) prior to
your attainment of age 59 years and 6 months.
SECTION 1.14 EMPLOYER. The term "Employer" means one of the following types of
entity which is eligible to adopt, has adopted, and maintains a Plan: (i) a
State, a political subdivision of a State, or an agency or instrumentality of a
State or political subdivision of a State, or (ii) any other organization exempt
from tax under the Code which has adopted and maintains a Plan for a select
group of management or highly compensated employees within the meaning of the
Employee Retirement Income Security Act of 1974, as amended. The Employer is the
Owner of and beneficiary under this Contract.
SECTION 1.15 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrued on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on Page 3 of
this Contract. Section 2.03 describes the determination of the rate to apply
thereafter.
SECTION 1.16 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.17 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.18 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means (i) if the Annuitant has a living spouse at the Retirement
Date, the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity
Form with such spouse as the contingent annuitant (with 100% of the monthly
payment amount continued to the spouse), and (ii) if the Annuitant does not have
a living spouse at the Retirement Date, the Fixed Annuity Benefit payable on the
Life Annuity Form.
SECTION 1.19 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
the payments as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 1.20 PLAN. The term "Plan" refers to an "Eligible Deferred Compensation
Plan" meeting the requirements of Section 457(b) of the Code and applicable
Treasury Regulations which is established and maintained by an Employer for the
benefit of individuals performing services for the Employer and their
beneficiaries.
No. 92 EDCB Page 5
<PAGE>
SECTION 1.21 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P O Box 2996, New York, New York 10116-2996, or such
other location as we shall designate by advance written notice to the Employer
or the Plan's Trustee, as applicable.
SECTION 1.22 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Annuitant attains the retirement age as shown on Page 3 of this Contract.
Before the Retirement Date the Employer may elect to change the Retirement Date
to another Retirement Date, which may be any date after the filing of the
election (other than the 29th, 30th, or 31st day of any month). No Retirement
Date shall be earlier than the Retirement Date provided under the Plan nor shall
it be later than the date the Annuitant attains age 70 years and 6 months. Any
election for such change must be made in writing by you and shall not take
effect until received by us at the Processing Office.
SECTION 1.23 SEPARATE ACCOUNT. The term "Separate Account" means Separate
Account A which is organized as a unit investment trust, a type of investment
company. We established the Separate Account and it is maintained in accordance
with the laws of New York State; Realized and unrealized gains and losses from
the assets of the Separate Account are credited to or charged against it without
regard to our other income, gains or losses. Assets are put in the Separate
Account to support this Contract and other variable annuity contracts and
certificates. Assets may be put in the Separate Account for other purposes, but
not to support contracts or policies other than variable annuities or variable
life insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
such Trust. We reserve the right to change the designated trust or investment
company or to add designated trusts or investment companies. The Investment
Divisions available are the Stock Division, the Money Market Division, the
Balanced Division and the Aggressive Stock Division. The Guaranteed Interest
Division is not part of the Separate Account, but rather is an asset of our
General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under
the Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any
other form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to,
or remove Investment Divisions (or sub-divisions of Investment
Divisions) from the Separate Account (the term "investment Division" in
this Contract shall then refer to any other Investment Division in which
the assets, of a class of contracts to which this Contract belongs, were
placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
class of contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
No. 92 EDCB Page 6
<PAGE>
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for applicable tax
charges) at a rate not to exceed 1.49% per year for each of the Stock, Money
Market and Balanced Divisions, and 1.34% per year for the Aggressive Stock
Division, for financial accounting, death benefits, mortality risk, expenses and
expense risk. The charge shall be made in accordance with Subsection (c) of the
Net Investment Factor provision in Section 1.24. The relative proportion of
these charges may be modified. This daily charge, plus the investment advisory
fee charges and direct operating expense charges of the Trust, shall not exceed
a total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract.
SECTION 1.24 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share
value reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period
(after taking into account any amounts allocated or withdrawn for that
Valuation Period).
(c) is the daily Separate Account charge for the expenses of this Contract,
times the number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where Contributions made on the Annuitant's behalf are
invested and which is used in determining the amount in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for that Investment Division for such Valuation Period.
ANNUITY UNIT: The "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: An "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first Contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base Rates of Net Investment Return of 5% and 3.5% a year, respectively. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation'
Periods ending in such month.
SECTION 1.25 SUBSTITUTED BENEFICIARY. The term "Substituted Beneficiary" refers
to the beneficiary designated under the Plan by the Annuitant to receive death
benefits payable under the Plan, where the Employer has elected, pursuant to
Section 4.04 to designate such person to receive the death benefit payable under
Section 2.11.
SECTION 1.26 TRANSACTION DATE. The term "Transaction Date" means the business
day we receive a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone, as
described in Section 2.05, the Transaction Date is the business day the
telephone transaction is received.
SECTION 1.27 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
No. 92 EDCB Page 7
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PART II -- ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. You are to make Contributions from time to time on
such dates and in such amounts as you determine pursuant to the terms of the
Plan; Contributions will be allocated to the Divisions in accordance with the
instructions received on the application, unless later changed.
Each Contribution received by us on the Annuitant's behalf will, before its
allocation under this Contract, be reduced by the amount of any applicable tax
charge, as determined by us.
If the Plan permits, we will accept transfers made from another eligible
deferred compensation plans meeting the requirements of Section 457 of the Code
or other funds invested under the Employer's Plan.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to, or withdrawn or transferred from, an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing said amount by
the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units in an Investment
Division on any date is equal to (i) the sum of any Accumulation Units that have
been allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation
Units that have been withdrawn pursuant to Sections 2.07 or 2.08 or transferred
from the Investment Division pursuant to Section 2.05. The amount in an
Investment Division on any date is equal to the product of (i) the number of
Accumulation Units in the Investment Division on that date and (ii) the
Accumulation Unit Value for the Investment Division for the Valuation Period
which includes that date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) Election and Commencement of Annuity Benefits pursuant to
Section 3.03, (ii) receipt of due proof of the Annuitant's death or (iii)
Termination of this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Sections 2.07, 2.08 or 2.10 or
transferred from the Guaranteed Interest Division pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date
pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under the terms of this
Contract terminates on the earliest of (i) Election and Commencement of Annuity
Benefits pursuant to Section 3.03, (ii) receipt of due proof of the Annuitant's
death or (iii) Termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction for any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date. If your Plan permits, and you
provide us with advance written instructions to do so, we will accept allocation
instructions directly from the Annuitant.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon Termination of this Contract pursuant to Section 2.06 and (vi)
upon the Annuitant's death pursuant to Section 2.11.
No. 92 EDCB Page 8
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SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request or through
the use of a touch tone telephone, transfer all or part of the amount you have
in a Division to one or more of the Divisions as follows: (1) amounts in the
Guaranteed Interest Division, Stock Division, Balanced Division and Aggressive
Stock Division may be transferred among such Divisions; and (2) amounts in the
Money Market Division may be transferred to other Divisions. Written
authorization for touch tone telephone initiated transfers is only required when
authorization for telephone transfers is requested. Upon advance written notice
to you, we reserve the right to discontinue the acceptance of transfer requests
through the use of a touch tone telephone. If the Plan permits and you provide
us with advance written instructions to do so, we will accept transfer
instructions directly from the Annuitant. All transfers will be effective on the
Transaction Date and will be subject to our rules in effect at the time of
transfer. With respect to the Investment Divisions, the transfer will be made at
the Accumulation Unit Value next computed after the Transaction Date. No
transfers are permitted to the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. Subject to any restrictions under the
terms of the Plan, you may elect by written notice to terminate this Contract.
We will determine the Cash Value of this Contract as of the Transaction Date.
If this Contract is terminated, surrendered or exchanged prior to the
Annuitant's Retirement Date, any applicable tax charges we have paid may be
deducted. If we previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on terminations, unless a change in applicable law has occurred with
respect to this Contract.
Cash Value payments may be deferred by us in accordance with the provisions of
Section 4.07.
Subject to the terms of the Plan, we reserve the right to pay the Annuity
Account Value under this Contract and terminate this Contract if (i) you make no
Contributions during the last three completed Contract Years, or (ii) you make a
partial withdrawal that would result in the Annuitant's Annuity Account Value
falling below $500. We also reserve the right to terminate this Contract if no
Contributions have been made within 120 days from the Contract Date shown on
Page 3 of this Contract.
We will pay the Cash Value or Annuity Account Value, as applicable, directly to
you unless you give us written notice at the time of termination that you
request us to make payment to the Annuitant or another person, and that such
payment is permissible under the Plan.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions under this Contract and the Annuity Account Value
with respect to this Contract shall be zero. We will be released from any and
all liability for payments with respect to the Contributions from which the
Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any restrictions under the terms of
the Plan, you may elect by written notice to us to make a partial withdrawal
from the Divisions.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to you. The amount paid plus any withdrawal
charge applicable pursuant to Section 2.08 will be withdrawn from the amounts
you have in the Divisions. Unless instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts that you have in such Divisions.
We will pay the Cash Value or Annuity Account Value, as applicable, directly to
you unless you give us written notice at the time of the withdrawal that you
request us to make payment to the Annuitant or another person, and that such
payment is permissible under the Plan.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise you and reserve the right to pay the
Annuity Account Value to you, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE FOR PARTIAL WITHDRAWALS: There will be no charge for a
partial withdrawal if (a) the amount of partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.09 or (b) the Cash
Value is equal to the Annuity Account Value, pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount in proportion to the amount you have in
them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
No. 92 EDCB Page 9
<PAGE>
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on the
Annuitant's behalf during the current Contract Year and the nine preceding
Contract Years over (ii) the cumulative total of any prior partial
withdrawal charges made pursuant to this Section.
If withdrawals are made from this Contract prior to the Annuitant's Retirement
Date, any applicable tax charges we have paid with respect to this Contract may
be deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to this Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means if the
Annuitant has completed three Contract Years or attained age 59 years and 6
months an amount equal to the excess, if any, of (i) 10% of the sum of the
Annuity Account Value on the Transaction Date over (ii) cumulative prior
withdrawals made pursuant to Section 2.07 in the current Contract Year. If the
Annuitant has not completed three Contract Years or attained age 59 years and 6
months, the Free Corridor Amount is zero.
SECTION 2.10 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $25,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts you have in the
Divisions.
If the Annuity Account Value is $25,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
If the Annuity Account Value is less than $25,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of this Contract pursuant to Sections 2.06 or
2.11, we will prorate the Annual Administrative Charge applicable to the
completed portion of the current Contract Year and withdraw such amount in lieu
of the Annual Administrative Charge described in this Section for the applicable
part of that Contract Year.
SECTION 2.11 DEATH BENEFIT. Upon receipt of due proof of the Annuitant's death,
we will pay to you as beneficiary in a single sum the amount of the death
benefit. You may change the beneficiary or the payment method of the death
benefit as permitted by the Plan, pursuant to Section 4.04. The amount of the
death benefit is equal to the greater of (i) the Annuity Account Value and (ii)
the minimum death benefit. Such minimum death benefit is the sum of all
Contributions made by you pursuant to Section 2.01 (before reduction for any
applicable tax charge) less any withdrawals made pursuant to Section 2.07. Any
such withdrawal will reduce the minimum death benefit (as adjusted by any
previous such withdrawal) by an amount which is in the same proportion as the
amount that was withdrawn is to the Annuity Account Value. If, in accordance
with the provisions of Section 2.01, the cash value of another annuity contract
issued by us or one of our affiliated or subsidiary life insurance companies,
which provides for a death benefit before retirement equal to the greater of the
contract cash value or an alternate amount based on premiums paid or
contributions made under the annuity contract, is transferred to this Contract,
such cash value or alternative amount as of the date of transfer will be
included in the "sum of all Contributions" in lieu of the amount of cash value
transferred for purposes of the death benefit under this Contract.
We will pay the death benefit to the beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to the
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value under this Contract shall be zero. We will be released
from any and all liability for payments with respect to the Contributions from
which the Annuity Account Value arose.
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PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
No. 92 EDCB Page 10
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The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
with respect to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of net
investment return referred to in Section 1.24 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.23, not to exceed the maximum rate of 1.75% after any deductions to
provide for tax charges. These charges include a daily charge for financial
accounting, death benefits, mortality risk, expenses and expense risk, plus the
investment advisory fee charges and direct operating expense charges of the
Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the terms of this Contract with respect to a payee is the
monthly amount provided with respect to the payee pursuant to the fifth
paragraph of Section 3.04. The amount of the fourth and each subsequent payment
under a Variable Annuity Benefit will be equal to the number of Annuity Units
with respect to such benefit, multiplied by the Average Annuity Unit Value for
the second calendar month immediately preceding the due date of the payment. The
number of Annuity Units with respect to a benefit is the number determined by
dividing the amount of the first monthly payment under such benefit by the
Annuity Unit Value for the Valuation Period which includes the due date of the
first monthly payment. (As described in Section 3.05, we will notify the payee
how each Variable Annuity payment is determined.)
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of the
Annuitant's Retirement Date, provided the Annuitant is then living, the Annuity
Account Value shall be applied to provide the Normal Form of Annuity Benefit,
unless you elect, subject to the terms of the Plan and the provisions of the
Code, (i) to have the Cash Value paid in a single sum, (ii) to apply the Annuity
Account Value or Cash Value, whichever is applicable pursuant to the first
paragraph of Section 3.04, to provide an Annuity Benefit on any other form
offered by us or one of our affiliated or subsidiary life insurance companies,
as elected by you or (iii) to take partial withdrawals in amounts and at times
as required by the distribution rules of Section 457(d) and 401(a)(9) of the
Code and applicable Treasury Regulations, pursuant to Section 3.05, and subject
to our rules then in effect.
Notice and election forms will be provided to you not more than six months prior
to the Retirement Date. (On your prior written request we will also provide
notice and election forms directly to the Annuitant).
If you elect prior to the Annuitant's Retirement Date to terminate this Contract
pursuant to Section 2.06, you may elect to have an Annuity Benefit paid in lieu
of the Cash Value.
If your Plan permits and you provide us written instructions to do so in advance
of payment, we will make payment of the Cash Value, Annuity Benefits or partial
withdrawals directly to the Annuitant, Substituted Beneficiary or other payee
designated by you.
We will have the right to require you to furnish pertinent information to
provide an Annuity Benefit, and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect pursuant to the first or
third paragraph of Section 3.03 to have paid an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the annuity form elected involves life contingencies,
or (ii) the Cash Value if the annuity form elected does not involve life
contingencies.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any applicable taxes on annuity considerations, as we determine. If we have
previously deducted charges for applicable taxes from Contributions as provided
in Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to this Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, this Contract will be governed by our
supplementary contract then in effect.
No. 92 EDCB Page 11
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If an amount is applied to provide an Annuity Benefit, the amount to be applied
will, in addition to any tax charge reduction, be reduced by an administrative
charge. The amount of such charge will be determined from time to time in
accordance with our general practices applicable on a uniform basis to all
contracts of the same type as this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated, on either the Life Annuity Form or the Joint and
Survivor Life Annuity Form (with 100% of the amount of your payment continued to
your spouse). The amount of income provided under the Fixed Annuity Benefit
payable on the Life Annuity Form and Joint and Survivor Life Annuity Form, is
based on 3.5% interest and the 1983 Individual Annuity Mortality Table "a"
adjusted to a unisex basis based on a 50-50 split of males and females. The
amounts of income initially provided under the Variable Annuity Benefit payable
on the Life Annuity Form and Joint and Survivor Life Annuity Form are based on a
50-50 split of males and females at age zero and an Assumed Base Rate of Net
Investment Return of 3.5% or 5%, whichever applies pursuant to Section 1.23.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us on 3.5% interest and the 1983 Individual Annuity Mortality
Table "a" adjusted to a unisex basis based on a 50-50 split of males and females
at age zero if such annuity form provides for a Fixed Annuity Benefit, and on
the projected 1983 Basic Table "a" adjusted to a unisex basis based on a 50-50
split of males and females at age zero and an Assumed Base Rate of Net
Investment Income Return of 5% or 3.5%, whichever applies pursuant to Section
1.23, if such annuity form provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Pursuant to Sections 457(d) and
401(a)(9) of the Code, and subject to the terms of the Plan, the entire interest
of the Annuitant will be distributed or begin to be distributed, no later than
the first day of April following the calendar year in which the Annuitant
attains 70 years and 6 months ("Required Beginning Date"). The entire interest
may be distributed, as elected pursuant to the Plan and this Contract, over (a)
the life of the Annuitant, or the lives of the Annuitant and a designated
beneficiary, or (b) a period certain not extending beyond the Annuitant's life
expectancy, or the joint and last survivor life expectancy of the Annuitant and
a designated beneficiary. Distributions must be made in periodic payments at
intervals of no longer than one year. In addition, payments must be either
nonincreasing or they may increase only as provided in Q & A F-3 of Section
1.401(a)(9)-1 of the Proposed Treasury Regulations, or any successor Regulation
thereto. All distributions made hereunder shall be made in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental death
benefit requirements of Section 401(a)(9)(G) of the Code, and applicable
Treasury Regulations, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless otherwise elected prior to the time distributions are required to begin,
those life expectancies shall be recalculated annually. Such election shall be
irrevocable and shall apply to all subsequent years. The life expectancy of a
non-spouse beneficiary may not be recalculated. Instead, life expectancy will be
calculated using the attained age of such beneficiary during the calendar year
in which the Annuitant attains age 70 years and 6 months, and payments for
subsequent years shall be calculated based on such life expectancy reduced by
one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If the Annuitant dies after distribution of the interest described in the first
paragraph of this Section has begun, the remaining portion of such interest will
continue to be distributed at least as rapidly as under the method of
distribution being used prior to the Annuitant's death.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
If the Annuitant dies before distribution of the interest described in the first
paragraph of this Section begins, distribution of the entire interest shall be
completed no later than December 31 of the calendar year containing the fifth
anniversary of the Annuitant's death, except to the extent that an election is
made to receive death benefit distributions in accordance with (1) or (2) below:
(1) If the Annuitant's interest is payable to a designated beneficiary, then
the entire interest may be distributed over a period certain not greater
than the life expectancy of the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar
year immediately following the calendar year of the Annuitant's death.
If the designated beneficiary is not the Annuitant's surviving spouse,
a period certain Annuity Benefit cannot exceed 15 years, (even if life
expectancy is greater than 15 years).
(2) If the designated beneficiary is the Annuitant's surviving spouse, the
date distributions that are required to begin in accordance with (1)
above shall not be earlier than the later of (A) December 31 of the
calendar year immediately following the calendar year of the Annuitant's
death or (B) December 31 of the calendar year in which the Annuitant
would have attained age 70 years and 6 months.
No. 92 EDCB Page 12
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For purposes of determining the "period certain" referred to in the immediately
preceding paragraph, life expectancy is computed by use of the expected return
multiples in Tables V and VI of Treasury Regulation Section 1.72-9. For purposes
of distributions beginning after the Annuitant's death, unless otherwise elected
by the surviving spouse by the time distributions are required to begin, life
expectancies shall be recalculated annually. Such election shall be irrevocable
by the surviving spouse and shall apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies shall be calculated using
the attained age of such beneficiary during the calendar year in which
distributions are required to begin pursuant to this Section, and payments for
any subsequent calendar year shall be calculated based on such life expectancy
reduced by one for each calendar year which has elapsed since the calendar year
life expectancy was first calculated.
Distributions under this Section are considered to have begun if distributions
are made because the Required Beginning Date was reached, or, if prior to the
Required Beginning Date, distributions irrevocably commence to an individual
over a period permitted and in an annuity form acceptable under Section
1.401(a)(9) of the Proposed Treasury Regulations or any successor Regulation
thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under the terms of this Contract was based on information
that is subsequently found to be incorrect, the benefit will not be invalidated,
but an adjustment on the basis of the correct information will be made in the
amount of the benefit payments, or any amount used to provide the benefit, or
any combination thereof. Overpayments by us will be charged against, and
underpayments will be added to, any payments thereafter falling due under this
Contract with respect to the payee, affecting as many such payments as are
necessary to correct the overpayment or underpayment. Our liability, with
respect to a payee, is limited to the correct information and the actual amounts
used to provide the benefits then in force with respect to the payee under this
Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under this Contract is physically or mentally incompetent to receive
such payment or is a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments (in the case of a minor, at a rate not exceeding $200 a month) to
such other person or institution, and will thereupon be fully discharged from
all liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Pursuant to Section 3.03, upon the election of an annuity form providing
payments for a period certain, you (or the Annuitant, if you have advised us in
writing that it is permitted under the terms of the Plan) may designate (with
the right to change such designation) a payee to receive any payments that may
become due after the death of the person or persons upon whose life or lives the
income may depend.
Subject to the terms of the Plan, the payee may designate (with the right to
change such designation and without the concurrence of any other person) a
person or persons to receive any payments or installments payable after such
payee's death, if the absence of such a designation would result in a single sum
payment to such payee's estate in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis
applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
No. 92 EDCB Page 13
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TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE
JOINT AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE
ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- --------------------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT
IF ASSUMED BASE RATE OF NET
INVESTMENT RETURN IS
Age 3.5% 5%
- --------------------------------------------------------------------------------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
- --------------------------------------------------------------------------------
We will, with respect to each payment of a Variable Annuity Benefit, notify the
payee of the number of Annuity Units and the Average Annuity Unit Value used in
determining the amount of each variable payment. Such notice will be mailed with
each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
- --------------------------------------------------------------------------------
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the terms of this Contract alone will govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between the
Owner and us without the consent of any other person.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend the terms of
this Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform this Contract to reflect changes in the Code,
applicable Treasury Regulations, or in regulations or published rulings of the
Internal Revenue Service so that this Contract will continue to be an Annuity
utilized to fund a plan qualifying under Section 457 of the Code.
SECTION 4.03 NONFORFEITABILITY, NONTRANSFERABILITY AND ASSIGNMENTS. The entire
interest under this Contract is nonforfeitable except by surrender to us.
Any interest under the terms of this Contract may not be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
us.
No amount payable under the terms of this Contract may be assigned or commuted,
unless specifically provided for under the terms of this Contract, or encumbered
by the payee, and, to the extent permitted by law, no such amount will in any
way be subject to any claim against such payee.
No. 92 EDCB Page 14
<PAGE>
SECTION 4.04 BENEFICIARY. You, as beneficiary, are entitled to receive any death
benefit payable under this Contract pursuant to Section 2.11. Upon the
Annuitant's death you may, by written request to our Processing Office, at any
time up to and including provision of due proof of such death, change the
beneficiary designation for the Section 2.11 death benefit from you to the
Substitute Beneficiary.
Subject to the terms of the Plan, the Substitute Beneficiary may elect to
receive the death benefit payable under Section 2.11 in the form of an Annuity
Benefit rather than as a single sum. Any such election must meet the minimum
distribution rules of Sections 457(d) and 401(a)(9) of the Code and applicable
Treasury Regulations, as described in Section 3.05.
SECTION 4.05 DISQUALIFICATION OF PLAN OR CONTRACT. In the event that the Plan
fails to qualify as an Eligible Deferred Compensation Plan under Section 457 of
the Code and applicable Treasury Regulations, we reserve the right, upon
receiving notice of such fact, to transfer the Annuity Account Value under this
Contract to another annuity contract issued by us or one of our affiliated or
subsidiary life insurance companies on the life of the Annuitant, or to
terminate this Contract and pay to you the Annuity Account Value less a
deduction for applicable taxes, solely at our option.
In the event that this Contract fails to qualify as an Annuity as described in
Section 1.02, we will have the right, upon receiving notice of such fact, to
terminate this Contract and pay to you the Annuity Account Value less a
deduction for the appropriate part attributable to you of any income tax payable
by you which would not have been payable if you had an Annuity.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to you, we reserve the
right to limit Contributions under this Contract if required by law.
SECTION 4.07 DEFERMENT. Applications of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of the Annuity Account Value (less
any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payments in order to protect
persons with interests in the Investment Divisions. We can defer payment of any
portion of the Annuity Account Value in the Guaranteed Interest Division for up
to six months while the Annuitant is living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year, we will furnish
you with a notice showing the following:
(1) the amount in the Guaranteed Interest Division,
(2) the total number of Accumulation Units in the Stock Division, Balanced
Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Value,
(4) the amount you have in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division,
(5) the Cash Value, and
(6) the amount of death benefit payable with respect to the Annuitant.
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify the Employer of the number of Annuity
Units and the Average Annuity Unit Value used in determining the amount of each
Variable Annuity Benefit payment, if any.
SECTION 4.09 AGE. If the Annuitant's age has been misstated, any benefits will
be those which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
SECTION 4.10 OWNERSHIP RIGHT OF EMPLOYER. Notwithstanding any other provision of
the terms of this Contract, until amounts under this Contract are distributed or
made available to the Annuitant or the Annuitant's beneficiary in accordance
with the terms of this Contract and the terms of the Plan, this Contract remains
solely the property of the Employer subject only to claims of the Employer's
general creditors. This Section shall be construed and administered in
accordance with Section 457(b)(6) of the Code and the regulations thereunder.
No. 92 EDCB Page 15
<PAGE>
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 92HR1A
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28, 1992
RETIREMENT DATE: JAN 1, 2020
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O. New York,
New York 10116
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division of the Separate Account (referred to
in this Contract as the "Investment Divisions") or to the Guaranteed Interest
Division, in accordance with Sections 2.02, 2.03 and 2.04, as directed by
you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide you with
an Annuity Benefit or a Cash Value benefit if you are then living, and
o TO PROVIDE you with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract, "we", "our" and "us" mean The
Equitable Life Assurance Society of the United States. "You" and "your" mean the
Annuitant (Owner) at the time a right is exercised by the Annuitant (Owner).
TEN DAYS TO EXAMINE CONTRACT -- You may cancel this contract by returning it to
us within ten days after receipt of it. Upon such cancellation, we will refund
any Contribution made to us on your behalf under this Contract
SPECIMEN SPECIMEN
/s/Molly K. Heines /s/Richard H. Jenrette
Chairman of the Board
Vice President and Secretary and Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT FACTOR REFERRED TO IN SECTION 1.24 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSE AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92HR1A
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are parts of this Contract.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
DEFINITIONS Page
Section 1.01 - Annuitant..........................................4
1.02 - Annuity............................................4
1.03 - Annuity Account Value..............................4
1.04 - Annuity Benefit....................................4
1.05 - Cash Value.........................................4
1.06 - Class of Contracts.................................5
1.07 - Code...............................................5
1.08 - Contract...........................................5
1.09 - Contract Date......................................5
1.10 - Contract Year......................................5
1.11 - Contribution.......................................5
1.12 - Divisions..........................................5
1.13 - Eligible Annuity Certain...........................5
1.14 - Employer...........................................5
1.15 - Guaranteed Interest Rate...........................5
1.16 - Joint and Survivor Life Annuity Form...............5
1.17 - Life Annuity Form..................................5
1.18 - Normal Form........................................5
1.19 - Period Certain Annuity.............................5
1.20 - Plan...............................................5
1.21 - Processing Office..................................6
1.22 - Retirement Date....................................6
1.23 - Separate Account...................................6
1.24 - Separate Account Definitions.......................7
1.25 - Transaction Date...................................7
1.26 - Trust..............................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions......................................8
2.02 - Separate Account Investment Divisions..............8
2.03 - Guaranteed Interest Division.......................8
2.04 - Allocation to Divisions............................8
2.05 - Transfers Among Divisions..........................8
2.06 - Termination of this Contract.......................9
2.07 - Partial Withdrawals................................9
2.08 - Charges for Partial Withdrawals....................9
2.09 - Free Corridor Amount..............................10
2.10 - Annual Administrative Charge......................10
2.11 - Death Benefit.....................................10
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit.............................11
3.02 - Variable Annuity Benefit..........................11
3.03 - Election and Commencement of Annuity Benefits.....11
3.04 - Amount of Annuity Benefits........................11
3.05 - Payment of Annuity Benefits.......................12
3.06 - Special Annuity and Spousal Consent Provisions....14
GENERAL PROVISIONS
Section 4.01 - Contract..........................................15
4.02 - Statutory Compliance..............................15
4.03 - Assignments and Nontransferability................15
4.04 - Beneficiary.......................................15
4.05 - Disqualification..................................16
4.06 - Future Contributions..............................16
4.07 - Deferment.........................................16
4.08 - Annual Notice.....................................16
4.09 - Age...............................................16
No. 92HR1A Page 2
<PAGE>
OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28, 1992
RETIREMENT DATE: JAN 1, 2020
INITIAL GUARANTEED INTEREST RATE: 7.50% TO MAR 31, 1992
MINIMUM GUARANTEED INTEREST RATE: 6.00% TO DEC 31, 1992
3.00% AFTER DEC 31, 1992
BENEFICIARY: JANE DOE
FORM NUMBER: 92HR1A
- --------------------------------------------------------------------------------
TABLE OF GUARANTEED VALUES
ISSUE AGE 38 MALE $1,000 ANNUAL CONTRIBUTION
NUMBER OF YEARS GUARANTEED GUARANTEED PAID-UP MONTHLY
SINCE FIRST CONTRIBUTION CASH VALUE ANNUITY AT AGE 65
- ----------------------- ---------- -----------------
1 977 6.63
2 1,946 16.20
3 2,944 26.67
4 3,998 36.84
5 5,064 46.70
6 6,220 56.28
7 7,362 65.59
8 8,538 74.62
9 9,841 83.38
10 11,204 91.90
11 12,629 100.16
12 14,118 108.18
13 15,673 115.97
14 17,144 123.54
15 18,658 131.18
16 20,218 138.64
17 21,824 145.90
18 23,479 152.80
19 25,213 159.70
20 27,000 166.03
24 (Age 62) 34,697 189.57
27 (Age 65) 41,098 205.49
THE TABLES ILLUSTRATE MINIMUM GUARANTEED VALUES AND ASSUME A HYPOTHETICAL $1,000
CONTRIBUTION MADE ANNUALLY ON THE FIRST OF THE MONTH FOLLOWING THE CONTRACT
DATE. THE GUARANTEED CASH VALUE TABLE REFLECTS AN ANNUAL ADMINISTRATIVE CHARGE
(SEE SECTION 2.10) AND A WITHDRAWAL CHARGE OF UP TO 6% OF THE ANNUITY ACCOUNT
VALUE (SEE SECTION 1.05). THE TABLES ASSUME THAT 100% OF ALL CONTRIBUTIONS AND
EARNINGS ARE ALLOCATED TO AND REMAIN IN THE GUARANTEED INTEREST DIVISION.
YOUR ACTUAL GUARANTEED VALUES MAY DIFFER FROM THOSE SHOWN ABOVE, DEPENDING ON
THE LEVEL AND FREQUENCY OF YOUR CONTRIBUTIONS.
THE GUARANTEED PAID-UP MONTHLY ANNUITY SHOWN ABOVE WILL BE REDUCED BY ANY CHARGE
WE MAKE FOR ANY APPLICABLE TAXES (SEE SECTION 3.04). OTHER FORMS OF ANNUITY
BENEFITS MAY BE AVAILABLE; HOWEVER, ANY ANNUITY BENEFIT CONTRACT ELECTED AS A
SETTLEMENT WILL BE SUBJECT TO A CHARGE (SEE SECTION 3.04).
*ASSUMES FIXED BENEFIT JOINT AND SURVIVOR LIFE ANNUITY (100% CONTINUATION TO
SURVIVOR) WITH JOINT ANNUITANT THE SAME AGE AS THE ANNUITANT.
No. 92HR1A Page 3
<PAGE>
- --------------------------------------------------------------------------------
PART I -- DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means the Owner of this Contract,
as shown on Page 3 of this Contract, and on whose behalf this Contract is
purchased and is maintained and who exercises all rights under the terms of this
Contract.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the terms of the Plan.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account pursuant to Sections 2.02 and 2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract.
Various sections of this Contract (Sections 1.16, 1.17, 1.18, 3.01 and 3.02)
refer to monthly payments to be made under an Annuity Benefit. You may wish to
have your Annuity Benefit paid at other intervals, such as quarterly,
semi-annually, or annually, instead of monthly. You may elect this at the time
you elect the Annuity Benefit form as described in Section 3.03; in that event,
all references in this Contract to monthly payments will be deemed to mean
payments at the frequency you elect, subject to our rules at the time of
election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less an applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where:
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the excess of (i) the Annuity Account Value over (ii) the Free
Corridor Amount defined in Section 2.09; and
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the Current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior partial withdrawal
charges made pursuant to Section 2.08.
However, notwithstanding the above, if you are age 60 years or older on the
Contract Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of
the excess of the Annuity Account Value over the Free Corridor Amount.
However, a withdrawal charge will not apply, which means the Cash Value will
equal the Annuity Account Value, upon any of the following occurrences:
(i) your attainment of age 59 years and 6 months and your completion of at
least five Contract Years, or
(ii) your completion of at least twelve Contract Years, or
(iii) your attainment of age 55 years, your completion of at least five
Contract Years and the receipt by us of a properly completed settlement
election form providing for the application of the Annuity Account Value
to purchase an Eligible Annuity Certain, defined in Section 1.13, or
(iv) your completion of at least three Contract Years and the receipt by us
of a properly completed settlement election form providing for the
application of the Annuity Account Value to purchase a Period Certain
Annuity, defined in Section 1.19, where the certain period of such
annuity is at least ten years, or
(v) the receipt by us of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase a
life annuity distribution option, pursuant to the terms of this
Contract, or
(vi) you die and the withdrawal is made by the beneficiary.
No. 92HR1A Page 4
<PAGE>
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us both the application for this Contract, properly signed and completed, and
a Contribution.
SECTION 1.10 CONTRACT YEAR. The term Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made to us
for you with respect to an Annuity purchased for you under Plan. We are under no
obligation to accept any Contribution less than $20.00.
SECTION 1.12 DIVISIONS. The term "Division" or "Divisions" mean, singly or
severally as the case may be, the following divisions described in this
Contract:
(i) the Guaranteed Interest Division, and
(ii) the Investment Divisions of the Separate Account.
SECTION 1.13 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us which extends beyond
your attainment of age 59 years and 6 months and does not permit any prepayment
of the unpaid principal (that is, no withdrawal or single sum payment) prior
to your attainment of age 59 years and 6 months.
SECTION 1.14 EMPLOYER. The term "Employer" means the sole proprietor or the
partnership adopting the Plan, or any successor unincorporated trade or business
that assumes in writing the obligations of the Plan.
SECTION 1.15 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on Page 3 of
this Contract. Section 2.03 describes determination of the rate to apply
thereafter.
SECTION 1.16 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.17 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.18 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means (i) if you have a living spouse at the Retirement Date, the
Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form with
such spouse as the contingent annuitant (with 100% of the monthly payment amount
continued to your spouse), and (ii) if you do not have a living spouse at the
Retirement Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.19 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
your payments as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 1.20 PLAN. The term "Plan" means the Standardized Non-Trusteed Defined
Contribution Plan for Unincorporated Employers, a prototype plan for
self-employed individuals and their employees which is sponsored by us.
No. 92HR1A Page 5
<PAGE>
SECTION 1.21 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P.O. Box 2996, G.P.O., New York, New York 10116, or
such other location as we shall designate by advance written notice to the
Employer or the trustee, as applicable, and to you.
SECTION 1.22 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain the retirement age as sown on Page 3 of this Contract. Before the
Retirement Date you may elect to change the Retirement Date to another
Retirement Date, which may be any date after the filing of the election (other
than the 29th, 30th or 31st day of any month). No Retirement Date shall be
earlier than the date you attain age 59 years and 6 months nor shall it be later
than the date you attain age 70 years and 6 months. Any election for such change
must be made in writing by you and shall not take effect until received by us at
our Processing Office.
SECTION 1.23 SEPARATE ACCOUNT. The term "Separate Account" means our Separate
Account A which is organized as a unit investment trust, a type of investment
company. We have established the Separate Account and it is maintained in
accordance with the laws of New York State. Realized and unrealized gains and
losses from the assets of the Separate Account are credited or charged against
it without regard to our other income, gains or losses. Assets are put in the
Separate Account to support this Contract and other variable annuity contracts
and certificates. Assets may be put in the Separate Account for other purposes,
but not to support contracts or policies other than variable annuities and
variable life insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
such Trust. We reserve the right to change the designated trust or investment
company or to add designated trusts or investment companies. The Investment
Divisions available are the Stock Division, the Money Market Division, the
Balanced Division and the Aggressive Stock Division. The Guaranteed Interest
Division is not part of the Separate Account but rather is an asset of our
General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under
the Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any
other form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to,
or remove Investment Divisions (or sub-divisions of Investment
Divisions) from the Separate Account (the term "Investment Division" in
this Contract shall then refer to any other Investment Division in which
the assets, of a Class of Contracts to which this Contract belongs, were
placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
No. 92HR1A Page 6
<PAGE>
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for applicable tax
charges) at a rate not to exceed 1.49% per year for each of the Stock, Money
Market and Balanced Divisions, and 1.34% per year for the Aggressive Stock
Division, for financial accounting, death benefits, mortality risk, expenses and
expense risk. The charge shall be made in accordance with Subsection (c) of the
Net Investment Factor provision in Section 1.24. The relative proportion of
these charges may be modified. This daily charge, plus the investment advisory
fee charges and direct operating expense charges of the Trust, shall not exceed
a total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract.
SECTION 1.24 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period giving effect
to any amounts allocated to or withdrawn from the Investment Division
for the Valuation Period. For this purpose, we use the share value
reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period
(after any amounts allocated or withdrawn for that Valuation Period).
(c) is the daily Separate Account charge for the expenses of this Contract,
times the number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where your Contributions are invested and which is used in
determining the amount you have in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for that Investment Division for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base Rates of Net Investment Return of 5% and 3.5% a year, respectively. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods ending in such month.
SECTION 1.25 TRANSACTION DATE. The term "Transaction Date" means the business
day we receive a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone as
described in Section 2.05, the term Transaction Date means the business day the
telephone transaction is received.
SECTION 1.26 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
No. 92HR1A Page 7
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PART II -- ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. The Employer is to make Contributions from time to
time on such dates and in such amounts as determined by the Employer pursuant to
the terms of the Plan or Agreement. Contributions will be allocated to the
Divisions in accordance with the instructions received on the application,
unless later changed.
Each Contribution received by us with respect to you will, before its allocation
under this Contract, be reduced by the amount of any applicable tax charge, as
determined by us.
Pursuant to the terms of the Plan, we will accept rollover contributions and
transfers made on your behalf from a plan qualified under Section 401(a) of the
Code or from a conduit individual retirement arrangement as described in Section
408 of the Code.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to, or withdrawn or transferred from, an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing said amount by
the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units in an Investment
Division on any date is equal to (i) the sum of any Accumulation Units that have
been allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation
Units that have been withdrawn pursuant to Section 2.07 or 2.10 or transferred
from the Investment Division pursuant to Section 2.05. The amount in an
Investment Division on any date is equal to the product of (i) the number of
Accumulation Units in the Investment Division on that date, and (ii) the
Accumulation Unit Value for the Investment Division for the Valuation Period
which includes that date.
Participation in the Separate Account under the terms of this Contract
terminates on the earliest of (i) Election and the Commencement of Annuity
Benefits pursuant to Section 3.03, (ii) receipt of due proof of your death, or
(iii) Termination of this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Section 2.07, 2.10 or 2.11 or
transferred from the Guaranteed Interest Division, pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date
pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under the terms of this
Contract terminates on the earliest (i) Election and Commencement of Annuity
Benefits pursuant to Section 3.03, (ii) receipt of due proof of your death, or
(iii) Termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon Termination of this Contract pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.11.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request or through
the use of a touch tone telephone, transfer all or part of the amount you have
in a Division to one or more of the Divisions as follows: (1) amounts in the
Guaranteed Interest Division, Stock Division, Balanced Division and Aggressive
Stock Division may be transferred among such Divisions; (2) amounts in the Money
Market Division may be
No. 92HR1A Page 8
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transferred to other Divisions. Written authorization for touch tone telephone
initiated transfers is only required when authorization for telephone transfers
is requested. (Upon advance written notice to you, we reserve the right to
discontinue the acceptance of transfer requests through the use of a touch tone
telephone.) All transfers will be effective on the Transaction Date and will be
subject to our rules in effect at the time of transfer. With respect to the
Investment Divisions, the transfer will be made at the Accumulation Unit Value
next computed after the Transaction Date. No transfers are permitted to the
Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. Subject to any restrictions under the
terms of the Plan, including the spousal consent rules set forth in Section
3.06, you may elect, by written notice, to terminate this Contract. We will
determine the Cash Value under this Contract as of the Transaction Date.
If this Contract is terminated, surrendered or exchanged prior to your
Retirement Date, any applicable tax charges we have paid may be deducted. If we
have previously deducted charges for applicable taxes from Contributions
pursuant to Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in a applicable law has occurred with respect to
your Contract.
The payment of such Cash Value may be deferred by us in accordance with the
provisions of Section 4.07. If no tax has been previously deducted or if such a
tax is due at termination, we will deduct the amount due.
Subject to the terms of the Plan, we reserve the right to pay the Annuity
Account Value under this Contract and terminate this Contract if (i) no
Contributions are made on your behalf during the last three completed Contract
Years, and the Annuity Account Value is less than $500 or (ii) a partial
withdrawal is made that would result in your Annuity Account Value falling below
$500. We also reserve the right to terminate this Contract if no Contributions
have been made within 120 days from the Contract Date shown on Page 3 of this
Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions and the Annuity Account Value shall be zero. We will
be released from any and all liability for payments with respect to the
Contributions from which the Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions under
the terms of the Plan, you may elect, by written notice to us, to make a partial
withdrawal from the Divisions. Partial withdrawals are subject to spousal
consent rules set forth in Section 3.06.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to the person entitled to receive such payment
as designated in writing by you. The amount paid plus any withdrawal charge
applicable pursuant to Section 2.08 will be drawn from the amounts you have in
the Divisions. Unless instructed otherwise, the amount withdrawn (including any
withdrawal charge) will be allocated among the Divisions in proportion to the
amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise you and reserve the right to pay the
Annuity Account Value to you, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.09 or (b) the Cash Value is equal to the Annuity
Account Value pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount in proportion to the amount you have in
them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
No. 92HR1A Page 9
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of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior partial withdrawal
charges made pursuant to this Section.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to your Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means if you
have completed three Contract Years or attained age 59 years and 6 months, an
amount equal to the excess, if any, of (i) 10% of the sum of the Annuity Account
Value on the Transaction Date over (ii) cumulative prior withdrawals made
pursuant to Section 2.07 in the current Contract Year. If you have not completed
three Contract Years or attained age 59 years and 6 months, the Free Corridor
Amount is zero.
SECTION 2.10 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $10,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts that you have in
the Divisions.
If the Annuity Account Value is less than $10,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of this Contract pursuant to Section 2.06 or
2.11, we will prorate the Annual Administrative Charge applicable to the
completed portion of the Current Contract Year and withdraw such amount in lieu
of the full Annual Administrative Charge described in this Section for the
applicable part of that Contract Year.
If the Annuity Account Value is $10,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
SECTION 2.11 DEATH BENEFIT. Upon receipt of due proof of your death we will pay
(subject to the terms of the Plan, in the spousal survivor benefit rules set
forth in Section 3.06) to the beneficiary designated to receive such payment,
pursuant to Section 4.04 of this Contract, the amount of death benefit payable.
The amount of the death benefit is equal to the greater of (i) the Annuity
Account Value and (ii) your minimum death benefit. Such minimum death benefit is
the sum of all Contributions made pursuant to Section 2.01 (before reduction for
any applicable tax charge) less any withdrawals made pursuant to Section 2.07.
Any such withdrawal will reduce your minimum death benefit (as adjusted by any
previous withdrawal) by an amount which is in the same proportion as the amount
that was withdrawn is to the Annuity Account Value. If, in accordance with the
provisions of Section 2.01, the cash value of another annuity contract issued by
us or one of our affiliated or subsidiary life insurance companies, which
provides for a death benefit before retirement equal to the greater of the
contract cash value or an alternate amount based on premiums paid or
contributions made under the annuity contract, is transferred to this Contract,
such cash value or alternative amount as of the date of transfer will be
included in the "sum of all Contributions" in lieu of the amount of cash value
transferred for purposes of the death benefit under this Contract.
We will pay the death benefit to the beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to the
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit, subject to the
minimum distribution requirement of the Code as described in Section 3.06 and
our rules then in effect.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value shall be zero. We will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Account Value arose.
No. 92HR1A Page 10
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PART III -- ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of Net
Investment Return referred to in Section 1.24 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.23, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounts, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the terms of this Contract with respect to a payee is the
monthly amount provided pursuant to the fourth paragraph of Section 3.04. The
amount of the fourth and each subsequent payment under a Variable Annuity
Benefit will be equal to the number of Annuity Units with respect to such
benefit, multiplied by the Average Annuity Unit Value for the second calendar
month immediately preceding the due date of the payment. The number of Annuity
Units with respect to a benefit is the number determined by dividing the amount
of the first monthly payment by the Annuity Unit Value for the Valuation Period
which includes the due date of the first monthly payment. (As described in
Section 3.05, we will notify the payee how each Variable Annuity Payment is
determined.)
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of your
Retirement Date, provided you are then living, the Annuity Account Value shall
be applied to provide the Normal Form of Annuity Benefit, unless you elect (i)
to receive the Cash Value in a single sum or (ii) to apply the Annuity Account
Value or Cash Value, whichever is applicable pursuant to the first paragraph of
Section 3.04, to provide an Annuity Benefit on any other annuity form offered by
us, or one of our affiliated or subsidiary life insurance companies, as elected
by you, or (iii) to take partial withdrawals pursuant to Section 2.07 in the
amounts and at times as required by the minimum distribution rules of Section
401(a)(9) of the Code and applicable Treasury Regulations, pursuant to Sections
2.07 and 3.05, subject to our rules then in effect and any other applicable
requirements under the Code.
We will provide notice and election forms to you not more than six months before
your Retirement Date.
If you elect to terminate this Contract, pursuant to Section 2.06, an election
may be made to receive an Annuity Benefit in lieu of the Cash Value.
We will have the right to require you to furnish pertinent information to
provide an Annuity Benefit, and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies. An election to receive Annuity Benefits in accordance
with this Section is subject to the spousal consent and spousal survivor rules
set forth in Section 3.06 of this Contract.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect, pursuant to the first or
third paragraph of Section 3.03, to receive an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the annuity form elected involves life contingencies or
(ii) the Cash Value if the payments under the annuity form elected does not
involve life contingencies.
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charges from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to your Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your Contract will be governed by our
supplementary contract then in effect.
No. 92HR1A Page 11
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The amount to be applied to provide an Annuity Benefit will, in addition to any
tax charge reduction, be reduced by an administrative charge. The amount of such
charge will be determined from time to time in accordance with our general
practices applicable on a uniform basis to all contracts of the same type as
this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated, on either the Life Annuity Form or the Joint and
Survivor Life Annuity Form (with 100% of the amount of your payment continued to
your spouse). The amounts of income provided under the Fixed Annuity Benefit
payable on the Life Annuity Form and Joint and Survivor Life Annuity Form, are
based on 3.5% interest and the 1983 Individual Annuity Mortality Table "a"
adjusted to a unisex basis based on a 50-50 split of males and females. The
amounts of income initially provided under the Variable Annuity Benefit payable
on the Life Annuity Form are based on a 50-50 split of males and females and an
Assumed Base Rate of Net Investment Return of 3.5% or 5%, whichever applies
pursuant to Section 1.24.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us on 3.5% interest and the 1983 Individual Annuity Mortality
Table "a" adjusted to a unisex basis based on a 50-50 split of males and females
if such annuity from provides for a Fixed Annuity Benefit, and on the projected
1983 Basic Table "a" adjusted to a unisex basis based on a 50-50 split of males
and females and an Assumed Base Rate of Net Investment Income Return of 5% or
3.5%, whichever applies pursuant to Section 1.24, if such annuity form provides
for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Your entire interest in this Contract
will be distributed or begin to be distributed in accordance with Section
401(a)(9) of the Code and the applicable Treasury Regulations thereunder, no
later than the first day of April following the calendar year in which you
attain age 70 years and 6 months ("Required Beginning Date") or such later date
as specified in such section or regulations. Your entire interest may be
distributed, as you elect over (a) the life, or the lives of you and or your
designated beneficiary, or (b) a period certain not extending beyond your life
expectancy, or the joint and last survivor expectancy of you and your designated
beneficiary. Distributions must be made in periodic payments at intervals of no
longer than one year. In addition, payments must be either nonincreasing or they
may increase only as provided in Q & A F-3 of Section 1.401(a)(9)-1 of the
proposed Treasury Regulations, or any successor Regulation thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental death
benefit requirements of Section 401(a)(9)(G) of the Code, and applicable
Treasury Regulations, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless you otherwise elect prior to the time distributions are required to
begin, those life expectancies shall be recalculated annually. Such election
shall be irrevocable and shall apply to all subsequent years. The life
expectancy of a non-spouse beneficiary may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such beneficiary during
the calendar year in which you attain age 70 years and 6 months, and payments
for subsequent years shall be calculated based on such life expectancy reduced
by one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If you die after distribution of your interest in this Contract has begun, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to your death.
If you die before distribution of your interest in this Contract begins,
distribution of your entire interest shall be completed no later than December
31 of the calendar year containing the fifth anniversary of your death, except
to the extent that an election is made to receive death benefit distributions in
accordance with (1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then your entire
interest may be distributed over the life of, or over a period certain not
greater than the life expectancy of, the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar year
immediately following the calendar year of your death.
No. 92HR1A Page 12
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(2) If the designated beneficiary is your surviving spouse, the date
distributions that are required to begin in accordance with (1) above shall
not be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of your death or (B) December 31 of
the calendar year in which you would have attained age 70 years and 6
months.
For purposes of determining the "period certain" referred to in the
immediately preceding paragraph, life expectancy is computed by use of the
expected return multiples in Tables V and VI of Treasury Regulation Section
1.72-9. For purposes of distributions beginning after your death, unless
otherwise elected by the surviving spouse by the time distributions are
required to begin, life expectancies shall be recalculated annually. Such
election shall be irrevocable by the surviving spouse and shall apply to
all subsequent years. In the case of any other designated beneficiary, life
expectancies shall be calculated using the attained age of such beneficiary
during the calendar year in which distributions are required to begin
pursuant to this Section, and payments for any subsequent calendar year
shall be calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy was
first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under the terms of this Contract was based on information
that is subsequently found to be incorrect, your benefit will not be
invalidated, but an adjustment on the basis of the correct information will be
made in the amount of the benefit payments, or any amount used to provide the
benefit, or any combination thereof. Overpayments by us will be charged against
and underpayments will be added to any payment thereafter falling due under the
terms of this Contract with respect to the payee, affecting as many such
payments as are necessary to correct the overpayment or underpayment. Our
liability, with respect to a payee, is limited to the correct information and
the actual amounts used to provide the benefits then in force with respect to
the payee under this Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii) another person or an
institution is then maintaining or has custody of such payee, and (iii) no
guardian, committee or other representative of the estate of such payee has been
appointed, we may make the payments (in the case of a minor, at a rate not
exceeding $200 a month) to such other person or institution, and will thereupon
be fully discharged from all liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one or two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Pursuant to Section 3.03, upon your election of an annuity form providing
payments for a period certain, you may designate (with the right to change such
designation) a payee to receive any payments that may become due after the death
of the person or persons upon whose life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's estate in
accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis
applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
No. 92HR1A Page 13
<PAGE>
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
- --------------------------------------------------------------------------------
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
------------------------------------------------------------
VARIABLE ANNUITY BENEFIT
PAYABLE ON THE LIFE ANNUITY FORM
IF ASSUMED BASE RATE OF NET
INVESTMENT RETURN IS
Age 3.5% 5.0%
------------------------------------------------------------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
-----------------------------------------------------------
We will, with respect to each payment under a Variable Annuity Benefit, notify
the payee of the number of Annuity Units and the Average Unit Value used in
determining the amount of each variable payment. Such notice will be mailed with
each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS. If you are married,
your interest in this Contract shall be paid in the Normal Form joint and
survivor annuity, and if you are unmarried, your interest shall be paid in the
Normal Form life annuity, unless you elect otherwise as described in this
Section. If you are married and die before payment of your interest has
commenced, your interest shall be paid to your surviving spouse in the form of a
life annuity, unless at the time of your death there was a contrary election
made pursuant to this Section. The foregoing notwithstanding, your surviving
spouse may elect, before payment is to commence, to have payment made in any
form permitted under the terms of this Contract.
You may elect, at any time within the 90 consecutive day period before the first
day of the first period for which your interest is paid as an annuity or in any
other form, not to have your interest paid in the Normal Form in which case it
shall be paid in any other form elected under the terms of this Contract. If
such interest is to be paid to your spouse upon your death, you may elect,
during the period beginning on the first day of the plan year of the Plan in
which you attain age 35 years (or if you separate from Service prior to that
plan year, beginning on the date of separation) and ending with your death, for
a beneficiary other than your spouse to receive payment of the value of your
interest. In addition, if you will not yet attain age 35 years by the end of any
current plan year, you may make a special qualified election to designate a
beneficiary other than your spouse to receive payment of the value of your
interest. Such special qualified election shall be effective for the period
beginning on the date of such election and ending on the first day of the plan
year in which you will attain age 35. Amounts payable in accordance with this
Section will be automatically reinstated as of the first day of the plan year in
which you attain age 35 unless a new election designating a beneficiary other
than the spouse is made in accordance with the requirements of this Section.
No. 92HR1A Page 14
<PAGE>
Any election described in the foregoing paragraph must be consented to by your
spouse in writing before a notary or a representative of the Plan unless you can
prove that there is no spouse or that the spouse cannot be located. Also, if you
have become legally separated from your spouse or have been abandoned (within
the meaning of local law) and have a court order to such effect, spousal consent
is not required unless a qualified domestic relations order provides otherwise.
Your election must designate a specific beneficiary (including any class of
beneficiaries or any contingent beneficiaries) that may not be changed without
further consent of the spouse, unless the spouse's consent expressly permits
designation by you without further consent of the spouse. The spouse's consent
under this Section shall acknowledge the effect of the election. In addition,
the spouse's consent (or the establishment that the consent of the spouse may
not be obtained) shall only be valid with respect to such spouse. Your waiver of
the Normal Form joint and survivor annuity shall not be effective unless the
election designates a form of benefit payment which may not be changed without
spousal consent (or the spouse expressly permits designations by you without any
further spousal consent). A consent that permits designations by you without any
requirement of further consent by such spouse must acknowledge that the spouse
has the right to limit consent to a specific beneficiary, and a specific form of
benefit where applicable, and that the spouse voluntarily elects to relinquish
either or both of such rights. If you make an election under this Section, you
may revoke that election, without spousal consent, at any time before the first
day of the first period for which an amount is paid as an annuity or in any
other form.
The provision requiring spousal consent in this Section shall also apply with
regard to your election to terminate this Contract or make partial withdrawals
pursuant to Sections 2.06 and 2.07, with respect to death benefits under Section
2.11 with respect to the Election and Commencement of Annuity Benefits pursuant
to Section 3.03, and with respect to a beneficiary designation set forth in
Section 4.04.
If the Annuity Account Value applied to provide the spousal benefits on the date
payment is to commence is in the aggregate less than $3,500, we may choose to
make payment in a single sum rather than in the form of a Qualified Joint and
Survivor Life Annuity or Life Annuity as described herein. Upon any payment made
pursuant to this Section, we will be released from any and all liability for
payment with respect to the Contributions made for you.
- --------------------------------------------------------------------------------
PART IV -- GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the terms of this Contract alone will govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend the terms of
this Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the terms of this Contract to reflect changes in the
Code, applicable Treasury Regulations, or regulations or published rulings of
the Internal Revenue Service so this Contract will continue to be an Annuity
used to fund a plan qualified under Section 401(a) of the Code.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY. No interest of yours or of a
beneficiary under this Contract may be transferred to any person other than us
upon the surrender of this Contract. Except as permitted under Section
401(a)(13) of the Code, no right or interest of you or any other payee or
beneficiary in this Contract shall be (a) assignable; (b) subject to any lien;
or (c) liable for, or subject to, any obligation or liability of any person. The
preceding sentence shall not apply to an assignment, transfer or attachment
pursuant to a qualified domestic relations order, as defined in Section 414(p)
of the Code.
SECTION 4.04 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any death benefit
payable pursuant to Section 2.11. Subject to the spousal consent and survivor
rules of Section 3.06, you may change such designation from time to time during
your lifetime and while this Contract is in force. Any such designation or
change will be made by written notice in a form satisfactory to us. A change
will, upon receipt at the Processing Office, take effect as of the time the
written notice was signed, whether or not you are living on the date of receipt,
but without further liability as to any payment or other settlement made by us
before receipt of such change.
Unless otherwise specified in the designation, if you have designated two or
more persons as beneficiary, the beneficiary will be the designated person or
persons who survive you, and if more than one survive they will share equally.
No. 92HR1A Page 15
<PAGE>
Any part of a death benefit payable pursuant to Section 2.11 for which there is
no designated beneficiary living at your death will be payable in a single sum
to your children who survive you, in equal shares, or should none survive, then
to your estate.
If you elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity previously elected by you, with respect to the beneficiary,
subject to our rules then in effect. If at your death there is no election in
effect to apply the single sum death benefit to provide an Annuity Benefit, the
beneficiary may make such an election. Any such election must meet the minimum
distribution requirements under the Code, as described in Section 3.05. The
foregoing notwithstanding, any designation of beneficiary is subject to the
Spousal Consent rules set forth in Section 3.06.
SECTION 4.05 DISQUALIFICATION. In the event that this Contract fails to qualify
as an Annuity as described in Section 1.02, we will have the right, upon
receiving notice of such fact before the Retirement Date, to terminate this
Contract and pay to you the Annuity Account Value less a deduction for the
appropriate part attributable to you of any Federal income tax payable which
would not have been payable if you had an Annuity.
In the event that the Plan fails to qualify as a Plan under Section 401(a) of
the Code and applicable Treasury Regulations, we reserve the right, upon
receiving notice of such fact, to transfer the Annuity Account Value under this
Contract to another annuity contract issued by us, an affiliate or subsidiary,
on your life, or to terminate this Contract and pay to you the Annuity Account
Value less deduction for applicable taxes, solely at our option.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to the Employer, we
reserve the right at our sole discretion to limit contributions to this
Contract.
SECTION 4.07 DEFERMENT. Applications of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities Exchange
Commission, by order, permits us to defer payments in order to protect persons
with interests in the Investment Divisions. We can defer payments of any portion
of your Annuity Account Value in the Guaranteed Interest Division for up to six
months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year, we will furnish
you with a notice showing the following:
(1) the amount you have in the Guaranteed Interest Division,
(2) the total number of Accumulation Units you have in the Stock Division,
Balanced Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Values,
(4) the amount you have in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division,
(5) the Cash Value, and
(6) the amount of your death benefit.
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.09 AGE. If your age has been misstated, any benefits will be those
which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
No. 92HR1A Page 16
<PAGE>
- --------------------------------------------------------------------------------
APPLICATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
PROCESSING OFFICE: INDIVIDUAL ANNUITY CENTER, P.O. BOX 2996,
NEW YORK, NEW YORK 10116-2996
QUALIFIED VARIABLE ANNUITY CONTRACT APPLICATION FOR:
EQUITABLE'S INDIVIDUAL QUALIFIED DEFERRED VARIABLE ANNUITY
- --------------------------------------------------------------------------------
TYPE OF PURCHASE (Complete One Plan Only)
A. |_| TSA PUBLIC SCHOOL (GV-PS-I)
B. |_| TSA 501(C)(3) ORGANIZATION (GV-501-I)
C. |_| TSA University (GV-PS-U-I)
D. |_| IRA Individual (Including IRA to IRA transfers) (GV-IRA 4971)
E. |_| IRA Unit Billed (Including IRA to IRA transfers) (GV-IRA 4971)
F. |_| IRA QUALIFIED PLAN ROLLOVER-- (QP IRA) (Distribution from a Qualified
Plan) (GV-IRA 4971-71)
G. |_| EDC (Public Employee Deferred Compensation) (GV-EDC 4991)
H. |_| EDC (Tax Exempt Organization) (GV-EDC 4991-SU-080)
I. |_| SEP (Simplified Employee Pension) (GV-SEP 4981)
J. |_| SARSEP (Salary Reduction SEP) _________________________________________
K. |_| CORPORATE TRUSTEED (GV-CORP 4941-41)
L. |_| KEOGH/HR-10 TRUSTEE (GV HR-10 4911-11)
(trustee owned)
M. |X| KEOGH/HR-10 (GV-HR-10 4911)
(not trustee owned) (issued to existing units only)
- --------------------------------------------------------------------------------
DO NOT COMPLETE THIS SECTION IF 1.D OR 1.F CHECKED ABOVE
2. EMPLOYER/PLAN NAME
|A|B|C|_|C|O|M|P|A|N|Y|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
3. |_| EXISTING UNIT NO. |_|_|_|_|_|_|-|_|_|_|
|x| NEW UNIT |0|0|0|1|2|3|-|4|5|6|
(FOR NEW UNIT BILLED IRA, EDC, TSA, SEP, SARSEP, OR TRUSTEED PLANS. FORM
983-135B IS REQUIRED)
- --------------------------------------------------------------------------------
4. PROPOSED ANNUITANT Print name to appear on Contract.
|J|O|H|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|D|O|E|_|_|_|_|_|
FIRST MIDDLE INITIAL LAST
A. |X| MR. |_| MRS. |_| MS. |_| OTHER ____
B. Date of Birth: Year 1954 Month JANUARY Day 27
---- ------- --
C. Age at Nearest Birthday: 38 D. |X| Male |_| Female
----
E. Annuitant's Mailing Address: F. State of Residence: N.J.
----
No., St. |1|7|_|E|L|M|_|S|T|R|E|E|T|_|_|_|_|_|_|_|_|_|_|_|_|
City |A|N|Y|T|O|W|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |U|S| Zip Code |0|2|0|0|0|-|0|0|0|1|
G. Telephone Number (101) 222 - 3456 |X| Home |_| Work
H. Social Security No. (Required): |1|2|3|-|4|5|-|6|7|8|9|
I. Are you associated with or employed by a member of National
Association of Securities Dealers, Inc.(NASD)? |_| Yes |X| No
5. OWNER (Print Name) -- If Trusteed or EDC Plan Print Name of Owner, for all
other Markets Print Name of Annuitant.
JOHN DOE
-----------------------------------------------------------------------------
a. Title ____________________________________________________________________
6. RETIREMENT AGE 65
---------------------------------------------------------------
7. BENEFICIARY -- Include FULL NAME and RELATIONSHIP to Annuitant. (For Death
Benefit upon Annuitant's death before Retirement Date.) (BENEFICIARY MUST
BE THE OWNER FOR EDC PURCHASES AND FOR MOST TRUSTEED PLANS.)
JANE DOE - WIFE
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
8. CONTRIBUTION ALLOCATION
Guaranteed Interest Division 20%
-----
Stock Division 20%
-----
Money Market Division 20%
-----
Balanced Division 20%
-----
Aggressive Stock Division 20%
-----
(PERCENTAGES IN WHOLE NUMBERS) Total 100%
9. CONTRIBUTIONS (NOT REQUIRED FOR 1.F)
A. Reminder Notice (Billing) Required |_| Yes |X| No
IF YES, COMPLETE B-C-D-E
B. REMINDER DATE Required for Individual IRA or otherwise must agree
with existing unit or attached 983-135B. MONTH _________ DAY __________
C. REMINDER FREQUENCY
|_| Annual |_| Semi-Annual
|_| Quarterly |_| Monthly
Available for TSA, EDC, SARSEP AND CORPORATE TRUSTEED AND UNIT BILLED IRA
ONLY:
|_| Semi-Monthly |_| Bi-Weekly
D. REMINDER AMOUNT $_________________________________
E. BILLING MONTHS TO BE EXCLUDED - TSA ONLY
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
10.EXPECTED FIRST CONTRACT YEAR
Contribution. $1000
----------------------------------------------------------------
IF AN ADVANCED BILLING AND/OR CONTRACT DATE ARE REQUESTED, COMPLETE #9B
AND #12.
- --------------------------------------------------------------------------------
(FOR PROCESSING OFFICE USE)
Unit Name ___________________________ Reminder Date ___________________________
Cert. or App# _______________________ Amendment Required_______________________
EDC Emp. Add. _______________________ Emp. Fed. ID# ___________________________
Frequency ___________________________ Contract Date ___________________________
- --------------------------------------------------------------------------------
Receipt Date Batch # Inquiry # Processor
- --------------------------------------------------------------------------------
180-1000
<PAGE>
- --------------------------------------------------------------------------------
10. Did you receive the Separate Account Prospectus? |X| Yes |_| No
Date shown on Prospectus January 1, 1992
----------------------------------------------------
Date of any supplement to Prospectus _______________________________________
11. Items (a) through (f) are to be answered by the annuitant. We are
required by the NASD to ask these questions.
(a) Name of Employer: ABC Company
------------------------------------------------------
(b) Address of Employer:
10 Main Street
---------------------------------------------------------------------------
Anytown, NJ
---------------------------------------------------------------------------
(c) Occupation Sales
-------------------------------------------------------------
(d) Assuming the contract applied for will be issued, will any existing
insurance or annuity be replaced or changed (or has it been)?
| | Yes |X| No
(e) Estimated Family Annual Income $100,000
----------------------------------------
(f) Estimated Net Worth $250,000
-----------------------------------------------------
(g) Investment Objective: |_| Income |X| Income & Growth
|_| Aggressive Growth |_| Growth |_| Safety of Principal
12. SPECIAL INSTRUCTIONS
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
13. Amount paid with this form: $1000
(If a check is submitted with this request, no advanced Contract Date is
permitted.) BACKDATING IS NOT PERMITTED.
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the certificate is not issued. The Contract Date
will be the date of receipt by Equitable of this application, properly signed
and completed, and Contribution at Equitable's Processing Office.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGREEMENT
All information and statements furnished in this application are true and
complete to the best of my knowledge and belief. I understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations.
IT IS UNDERSTOOD THAT THE ANNUITY ACCOUNT VALUE ATTRIBUTABLE TO ALLOCATIONS TO
THE INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT AND VARIABLE ANNUITY BENEFIT
PAYMENTS MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
UNDER THE PENALTIES OF PERJURY I (WE) CERTIFY THAT THE SOCIAL SECURITY NUMBER(S)
OR TAX IDENTIFICATION NUMBER(S) PROVIDED ON THIS FORM IS (ARE) TRUE, CORRECT AND
COMPLETE.
- --------------------------------------------------------------------------------
LAWS IN YOUR STATE MAY MAKE IT A CRIME TO FILL OUT AN INSURANCE OR ANNUITY
APPLICATION WITH INFORMATION YOU KNOW IS FALSE OR TO LEAVE OUT MATERIAL FACTS.
- --------------------------------------------------------------------------------
X__________________________________ Date_______ City __________ State __________
Signature of Annuitant
X__________________________________ Date_______ City __________ State __________
Signature of Authorized Individual (REQUIRED FOR EDC AND
TRUSTEED) OR OWNER
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGENT'S SECTION
Will any existing insurance or annuity be replaced or changed (or has it been),
assuming the Contract will be issued? | | Yes | | No
|_| I (we) certify that a prospectus for the Contract has been given to the
proposed Annuitant and that no written sales materials other than those approved
by Equitable have been used.
EQUI-VEST issues must adequately reflect the commission interest of all Agents
on previous contracts.
- --------------------------------------------------------------------------------
Print Agent's Name(s) Initial of Agent Agent Agency District Agent's
(Service Agent first) Last Name Number % Code Manager Code Signature
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FOR AGENCY COMPLIANCE FILE: INITIALS OF AGENCY EQS___ Date ___ District EQS ___
Date ____
- --------------------------------------------------------------------------------
(FOR ASU USE)
ASU Code and App. No. __________________________________________________________
ASU Rec'd. _____________________________________________________________________
Date to Proc. Off. ________________________________________________ Campaign |_|
Agent(s) shown above is Equity Qualified and is licensed in the state where the
request is signed. Above Agent information verified by ASM (Registered Rep)
- --------------------------------------------------------------------------------
Application reviewed by ________________________________________________________
- --------------------------------------------------------------------------------
180-1000
<PAGE>
Owner: [THE EQUITABLE LOGO]
Annuitant:
Contract Number:
Issue Date:
Contract Date:
Retirement Date:
- --------------------------------------------------------------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P O Box 2996, New York,
New York 10116-2996
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division of the Separate Account (referred
to in this Contract as the "Investment Divisions") or to the Guaranteed
Interest Division, in accordance with Sections 2.02, 2.03 and 2.04, as
directed by you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide you
with an Annuity Benefit or a Cash Value benefit if you are then living, and
o TO PROVIDE you with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract, "we", "our" and "us" mean The
Equitable Life Assurance Society of the United States. "You" and "your" mean the
Annuitant (Owner) at the time a tight is exercised by the Annuitant (Owner).
TEN DAYS TO EXAMINE CONTRACT -- You may cancel this Contract by returning it to
us within ten days after receipt of it. Upon such cancellation, we will refund
any Contribution made to us on your behalf under this Contract, plus or minus
any investment gain or loss experienced in the Investment Divisions of the
Separate Account from the date such Contribution is allocated to such Investment
Division to the date we receive the returned Contract.
/s/ Pauline Sherman /s/ Edward D. Miller
Pauline Sherman, Vice President, Secretary & Edward D. Miller
Associate General Counsel President and Chief Executive
Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT FACTOR REFERRED TO IN SECTION 1.24 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
NO. 92HR1B
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
DEFINITIONS Page
Section 1.01 - Annuitant..........................................4
1.02 - Annuity............................................4
1.03 - Annuity Account Value..............................4
1.04 - Annuity Benefit....................................4
1.05 - Cash Value.........................................4
1.06 - Class of Contracts.................................5
1.07 - Code...............................................5
1.08 - Contract...........................................5
1.10 - Contract Year......................................5
1.11 - Contribution.......................................5
1.12 - Divisions..........................................5
1.13 - Eligible Annuity Certain...........................5
1.14 - Employer...........................................5
1.15 - Guaranteed Interest Rate...........................5
1.16 - Joint and Survivor Life
Annuity Form.......................................5
1.17 - Life Annuity Form..................................5
1.18 - Normal Form........................................5
1.19 - Period Certain Annuity ............................5
1.20 - Plan...............................................5
1.21 - Processing Office..................................6
1.22 - Retirement Date....................................6
1.23 - Separate Account...................................6
1.24 - Separate Account
Definitions........................................7
1.25 - Transaction Date ..................................7
1.26 - Trust .............................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions......................................8
2.02 - Separate Account
Investment Divisions...............................8
2.03 - Guaranteed Interest ...............................8
Division...........................................8
2.04 - Allocation to Divisions............................8
2.05 - Transfers Among Divisions..........................8
2.06 - Termination of this Contract.......................9
2.07 - Partial Withdrawals................................9
2.08 - Charges for Partial
Withdrawals........................................9
2.09 - Free Corridor Amount..............................10
2.10 - Annual Administrative Charge .....................10
2.11 - Death Benefit.....................................10
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit ............................11
3.02 - Variable Annuity Benefit..........................11
3.03 - Election and Commencement
of Annuity Benefits...............................11
3.04 - Amount of Annuity Benefits........................11
3.05 - Payment of Annuity Benefits ......................12
3.06 - Special Annuity and Spousal
Consent Provisions................................14
GENERAL PROVISIONS
Section 4.01 - Contract..........................................15
4.02 - Statutory Compliance..............................15
4.03 - Assignments and
Nontransferability................................15
4.04 - Beneficiary ......................................15
4.05 - Disqualification..................................16
4.06 - Future Contributions .............................16
4.07 - Deferment ........................................16
4.08 - Annual Notice.....................................16
4.09 - Age...............................................16
NO. 92HR1B Page 2
<PAGE>
- --------------------------------------------------------------------------------
PART I -- DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means the Owner of this Contract,
as shown on Page 3 of this Contract, and on whose behalf this Contract is
purchased and is maintained and who exercises all rights under the terms of this
Contract.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the terms of the Plan.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account pursuant to Sections 2.02 and 2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract.
Various sections of this Contract (Sections 1.16, 1.17, 1.18, 3.01 and 3.02)
refer to monthly payments to be made under an Annuity Benefit. You may wish to
have your Annuity Benefit paid at other intervals, such as quarterly,
semi-annually, or annually, instead of monthly. You may elect this at the time
you elect the Annuity Benefit form as described in Section 3.03; in that event,
all references in this Contract to monthly payments will be deemed to mean
payments at the frequency you elect, subject to our rules at the time of
election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less an applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where:
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
O% thereafter
of the excess of (i) the Annuity Account Value over (ii) the Free Corridor
Amount defined in Section 2.09; and
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the Current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior partial withdrawal
charges made pursuant to Section 2.08.
However, notwithstanding the above, if you are age 60 years or older on the
Contract Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of
the excess of the Annuity Account Value over the Free Corridor Amount.
However, a withdrawal charge will not apply, which means the Cash Value will
equal the Annuity Account Value, upon any of the following occurrences:
(i) your attainment of age 59 years and 6 months and your completion of at
least five Contract Years, or
(ii) your completion of at least twelve Contract Years, or
(iii) your attainment of age 55 years, your completion of at least five Contract
Years and the receipt by us of a properly completed settlement election
form providing for the application of the Annuity Account Value to
purchase an Eligible Annuity Certain, defined in Section 1.13, or
(iv) your completion of at least three Contract Years and the receipt by us of
a properly completed settlement election form providing for the
application of the Annuity Account Value to purchase a Period Certain
Annuity, defined in Section 1.19, where the certain period of such annuity
is at least ten years, or
(v) the receipt by us of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase a
life annuity distribution option, pursuant to the terms of this Contract,
or
(vi) you die and the withdrawal is made by the beneficiary.
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SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.O8 CONTRACT. The term "Contract" means this Contract.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made to us
for you with respect to an Annuity purchased for you under the Plan. We are
under no obligation to accept any Contribution less than $20.00.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following divisions described in this
Contract:
(i) the Guaranteed Interest Division, and
(ii) the Investment Divisions of the Separate Account.
SECTION 1.13 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us which extends beyond
your attainment of age 59 years and 6 months and does not permit any prepayment
of the unpaid principal (that is, no withdrawal or single sum payment) prior to
your attainment of age 59 years and 6 months.
SECTION 1.14 EMPLOYER. The term "Employer" means the sole proprietor or the
partnership adopting the Plan, or any successor unincorporated trade or business
that assumes in writing the obligations of the Plan.
SECTION 1.15 GUARANTEED INTEREST RATE. The term "Guaranteed interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on Page 3 of
this Contract. Section 2.03 describes determination of the rate to apply
thereafter.
SECTION 1.16 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.17 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.18 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means (i) if you have a living spouse at the Retirement Date, the
Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form with
such spouse as the contingent annuitant (with 100% of the monthly payment amount
continued to your spouse), and (ii) if you do not have a living spouse at the
Retirement Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.19 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
your payments as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 1.20 PLAN. The term "Plan" means the Standardized Non-Trusteed Defined
Contribution Plan for Unincorporated Employers, a prototype plan for
self-employed individuals and their employees which is sponsored by us.
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SECTION 1.21 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P O Box 2996, New York, New York 10116-2996, or such
other location as we shall designate by advance written notice to the Employer
or the trustee, as applicable, and to you.
SECTION 1.22 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain the retirement age as shown on Page 3 of this Contract. Before the
Retirement Date you may elect to change the Retirement Date to another
Retirement Date, which may be any date after the filing of the election (other
than the 29th, 30th or 31st day of any month). No Retirement Date shall be
earlier than the date you attain age 59 years and 6 months nor shall it be later
than the date you attain age 70 years and 6 months. Any election for such change
must be made in writing by you and shall not take effect until received by us at
our Processing Office.
SECTION 1.23 SEPARATE ACCOUNT. The term "Separate Account" means our Separate
Account A which is organized as a unit investment trust, a type of investment
company. We have established the Separate Account and it is maintained in
accordance with the laws of New York State. Realized and unrealized gains and
losses from the assets of the Separate Account are credited or charged against
it without regard to our other income, gains or losses. Assets are put in the
Separate Account to support this Contract and other variable annuity contracts
and certificates. Assets may be put in the Separate Account for other purposes,
but not to support contracts or policies other than variable annuities and
variable life insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
such Trust. We reserve the right to change the designated trust or investment
company or to add designated trusts or investment companies. The Investment
Divisions available are the Stock Division, the Money Market Division, the
Balanced Division and the Aggressive Stock Division. The Guaranteed Interest
Division is not part of the Separate Account but rather is an asset of our
General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any other
form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to,
or remove Investment Divisions (or sub-divisions of Investment Divisions)
from the Separate Account (the term "Investment Division" in this Contract
shall then refer to any other Investment Division in which the assets, of
a Class of Contracts to which this Contract belongs, were placed);
(vi) combine any two or more` Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
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If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for applicable tax
charges) at a rate not to exceed 1.49% per year for each of the Stock, Money
Market and Balanced Divisions, and 1.34% per year for the Aggressive Stock
Division, for financial accounting, death benefits, mortality risk, expenses and
expense risk. The charge shall be made in accordance with Subsection (c) of the
Net Investment Factor provision in Section 1.24. The relative proportion of
these charges may be modified. This daily charge, plus the investment advisory
fee charges and direct operating expense charges of the Trust, shall not exceed
a total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract.
SECTION 1.24 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share
value reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
any amounts allocated or withdrawn for that Valuation Period).
(c) is the daily Separate Account charge for the expenses of this Contract,
times the number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where your Contributions are invested and which is used in
determining the amount you have in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for that Investment Division for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base Rates of Net Investment Return of 5% and 3.5% a year, respectively. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods ending in such month.
SECTION 1.25 TRANSACTION DATE. The term "Transaction Date" means the business
day we receive a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone as
described in Section 2.05, the term Transaction Date means the business day the
telephone transaction is received.
SECTION 1.26 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
NO. 92HR1B Page 7
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PART II -- ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. The Employer is to make Contributions from time to
time on such dates and in such amounts as determined by the Employer pursuant to
the terms of the Plan or Agreement. Contributions will be allocated to the
Divisions in accordance with the instructions received on the application,
unless later changed.
Each Contribution received by us with respect to you will, before its allocation
under this Contract, be reduced by the amount of any applicable tax charge, as
determined by us.
Pursuant to the terms of the Plan, we will accept rollover contributions and
transfers made on your behalf from a plan qualified under Section 401(a) of the
Code or from a conduit individual retirement arrangement as described in Section
408 of the Code.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to, or withdrawn or transferred from, an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing said amount by
the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units in an Investment
Division on any date is equal to (i) the sum of any Accumulation Units that have
been allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation
Units that have been withdrawn pursuant to Section 2.07 or 2.10 or transferred
from the Investment Division pursuant to Section 2.05. The amount in an
Investment Division on any date is equal to the product of (i) the number of
Accumulation Units in the Investment Division on that date, and (ii) the
Accumulation Unit Value for the Investment Division for the Valuation Period
which includes that date.
Participation in the Separate Account under the terms of this Contract
terminates on the earliest of (i) Election and Commencement of Annuity Benefits
pursuant to Section 3.03, (ii) receipt of due proof of your death, or (iii)
Termination of this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Section 2.07, 2.10 or 2.11 or
transferred from the Guaranteed Interest Division, pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date
pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under the terms of this
Contract terminates on the earliest of (i) Election and Commencement of Annuity
Benefits pursuant to Section 3.03, (ii) receipt of due proof of your death, or
(iii) Termination of this Contract pursuant to. Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon Termination of this Contract pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.11.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request or through
the use of a touch tone telephone, transfer all or part of the amount you have
in a Division to one or more of the Divisions as follows: (1) amounts in the
Guaranteed Interest Division, Stock Division, Balanced Division and Aggressive
Stock Division may be transferred among such Divisions; (2) amounts in the Money
Market Division may be transferred to other Divisions. Written authorization for
touch tone telephone initiated transfers is only required when authorization for
telephone transfers is requested. (Upon advance written notice to you, we
reserve the right to discontinue the acceptance of transfer requests through the
use of a touch tone telephone.) All transfers will be effective on the
Transaction Date and will be subject to our rules in effect at the time of
transfer. With respect to the Investment Divisions, the transfer will be made at
the Accumulation Unit Value next computed after the Transaction Date. No
transfers are permitted to the Money Market Division from the other Divisions.
NO. 92HR1B Page 8
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SECTION 2.06 TERMINATION OF THIS CONTRACT. Subject to any restrictions under the
terms of the Plan, including the spousal consent rules set forth in Section
3.06, you may elect, by written notice, to terminate this Contract. We will
determine the Cash Value under this Contract as of the Transaction Date.
If this Contract is terminated, surrendered or exchanged prior to your
Retirement Date, any applicable tax charges we have paid may be deducted. If we
have previously deducted charges for applicable taxes from Contributions
pursuant to Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
your Contract.
The payment of such Cash Value may be deferred by us in accordance with the
provisions of Section 4.07. If no tax has been previously deducted or if such a
tax is due at termination, we will deduct the amount due.
Subject to the terms of the Plan, we reserve the right to pay the Annuity
Account Value under this Contract and terminate this Contract if (i) no
Contributions are made on your behalf during the last three completed Contract
Years, and the Annuity Account Value is less than $500 or (ii) a partial
withdrawal is made that would result in your Annuity Account Value falling below
$500. We also reserve the right to terminate this Contract if no Contributions
have been made within 120 days from the Contract Date shown on Page 3 of this
Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions and the Annuity Account Value shall be zero. We will
be released from any and all liability for payments with respect to the
Contributions from which the Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions under
the terms of the Plan, you may elect, by written notice to us, to make a partial
withdrawal from the Divisions. Partial withdrawals are subject to spousal
consent rules set forth in Section 3.06.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to the person entitled to receive such
payment as designated in writing by you. The amount paid plus any withdrawal
charge applicable pursuant to Section 2.08 will be withdrawn from the amounts
you have in the Divisions. Unless instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise you and reserve the right to pay the
Annuity Account Value to you, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.09 or (b) the Cash Value is equal to the Annuity
Account Value pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount in proportion to the amount you have in
them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
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of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior partial withdrawal
charges made pursuant to this Section.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to your Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means if you
have completed three Contract Years or attained age 59 years and 6 months, an
amount equal to the excess, if any, of (i) 10% of the sum of the Annuity Account
Value on the Transaction Date over (ii) cumulative prior withdrawals made
pursuant to Section 2.07 in the current Contract Year. If you have not completed
three Contract Years or attained age 59 years and 6 months, the Free Corridor
Amount is zero.
SECTION 2.10 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $10,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts that you have in
the Divisions.
If the Annuity Account Value is less than $10,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of termination of this Contract pursuant to Section 2.06 or
2.11, we will prorate the Annual Administrative Charge applicable to the
completed portion of the Current Contract Year and withdraw such amount in lieu
of the full Annual Administrative Charge described in this Section for the
applicable part of that Contract Year.
If the Annuity Account Value is $10,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
SECTION 2.11 DEATH BENEFIT. Upon receipt of due proof of your death we will pay
(subject to the terms of the Plan, in the spousal survivor benefit rules set
forth in Section 3.06) to the beneficiary designated to receive such payment,
pursuant to Section 4.04 of this Contract, the amount of death benefit payable.
The amount of the death benefit is equal to the greater of (i) the Annuity
Account Value and (ii) your minimum death benefit. Such minimum death benefit is
the sum of all Contributions made pursuant to Section 2.01 (before reduction for
any applicable tax charge) less any withdrawals made pursuant to Section 2.07.
Any such withdrawal will reduce your minimum death benefit (as adjusted by any
previous withdrawal) by an amount which is in the same proportion as the amount
that was withdrawn is to the Annuity Account Value. If, in accordance with the
provisions of Section 2.01, the cash value of another annuity contract issued by
us or one of our affiliated or subsidiary life insurance companies, which
provides for a death benefit before retirement equal to the greater of the
contract cash value or an alternate amount based on premiums paid or
contributions made under the annuity contract, is transferred to this Contract,
such cash value or alternative amount as of the date of transfer will be
included in the "sum of all Contributions" in lieu of the amount of cash value
transferred for purposes of the death benefit under this Contract.
We will pay the death benefit to the beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to the
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit, subject to the
minimum distribution requirement of the Code as described in Section 3.06 and
our rules then in effect.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value shall be zero. We will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Account Value arose.
NO. 92HR1B Page 10
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PART III -- ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of Net
Investment Return referred to in Section 1.24 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.23, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounts, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the terms of this Contract with respect to a payee is the
monthly amount provided pursuant to the fifth paragraph of Section 3.04. The
amount of the fourth and each subsequent payment under a Variable Annuity
Benefit will be equal to the number of Annuity Units with respect to such
benefit, multiplied by the Average Annuity Unit Value for the second calendar
month immediately preceding the due date of the payment. The number of Annuity
Units with respect to a benefit is the number determined by dividing the amount
of the first monthly payment by the Annuity Unit Value for the Valuation Period
which includes the due date of the first monthly payment. (As described in
Section 3.05, we will notify the payee how each Variable Annuity Payment is
determined.)
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of your
Retirement Date, provided you are then living, the Annuity Account Value shall
be applied to provide the Normal Form of Annuity Benefit, unless you elect (i)
to receive the Cash Value in a single sum or (ii) to apply the Annuity Account
Value or Cash Value, whichever is applicable pursuant to the first paragraph of
Section 3.04, to provide an Annuity Benefit on any other annuity form offered by
us, or one of our affiliated or subsidiary life insurance companies, as elected
by you, or (iii) to take partial withdrawals pursuant to Section 2.07 in the
amounts and at times as required by the minimum distribution rules of Section
401(a)(9) of the Code and applicable Treasury Regulations, pursuant to Sections
2.07 and 3.05, subject to our rules then in effect and any other applicable
requirements under the Code.
We will provide notice and election forms to you not more than six months before
your Retirement Date.
If you elect to terminate this Contract, pursuant to Section 2.06, an election
may be made to receive an Annuity Benefit in lieu of the Cash Value.
We will have the right to require you to furnish pertinent information to
provide an Annuity Benefit, and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies. An election to receive Annuity Benefits in accordance
with this Section is subject to the spousal consent and spousal survivor rules
set forth in Section 3.06 of this Contract.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect, pursuant to the first or
third paragraph of Section 3.03, to receive an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the annuity form elected involves life contingencies or
(ii) the Cash Value if the payments under the annuity form elected does not
involve life contingencies.
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charges from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to your Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your Contract will be governed by our
supplementary contract then in effect.
NO. 92HR1B Page 11
<PAGE>
The amount to be applied to provide an Annuity Benefit will, in addition to any
tax charge reduction, be reduced by an administrative charge. The amount of such
charge will be determined from time to time in accordance with our general
practices applicable on a uniform basis to all contracts of the same type as
this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated, on either the Life Annuity Form or the Joint and
Survivor Life Annuity Form (with 100% of the amount of your payment continued
to your spouse). The amounts of income provided under the Fixed Annuity Benefit
payable on the Life Annuity Form and Joint and Survivor Life Annuity Form, are
based on 3.5% interest and the 1983 Individual Annuity Mortality Table "a"
adjusted to a unisex basis based on a 50-50 split of males and females. The
amounts of income initially provided under the Variable Annuity Benefit payable
on the Life Annuity Form are based on a 50-50 split of males and females and an
Assumed Base Rate of Net Investment Return of 3.5% or 5%,whichever applies
pursuant to Section 1.24.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us on 3.5% interest and the 1983 Individual Annuity Mortality
Table "a" adjusted to a unisex basis based on a 50-50 split of males and females
if such annuity form provides for a Fixed Annuity Benefit, and on the projected
1983 Basic Table "a" adjusted to a unisex basis based on a 50-50 split of males
and females and an Assumed Base Rate of Net Investment Income Return of 5% or
3.5%, whichever applies pursuant to Section 1.24, if such annuity form provides
for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Your entire interest in this Contract
will be distributed or begin to be distributed in accordance with Section
401(a)(9) of the Code and the applicable Treasury Regulations thereunder, no
later than the first day of April following the calendar year in which you
attain age 70 years and 6 months ("Required Beginning Date") or such later date
as specified in such section or regulations. Your entire interest may be
distributed, as you elect over (a) the life, or the lives of you and or your
designated beneficiary, or (b) a period certain not extending beyond your life
expectancy, or the joint and last survivor expectancy of you and your designated
beneficiary. Distributions must be made in periodic payments at intervals of no
longer than one year. In addition, payments must be either non-increasing or
they may increase only as provided in Q & A F-3 of Section 1.401(a)(9)-1 of the
proposed Treasury Regulations, or any successor Regulation thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental death
benefit requirements of Section 401(a)(9)(G)of the Code, and applicable Treasury
Regulations, including the minimum distribution incidental benefit requirement
of Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or any successor
Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless you otherwise elect prior to the time distributions are required to
begin, those life expectancies shall be recalculated annually. Such election
shall be irrevocable and shall apply to all subsequent years. The life
expectancy of a non-spouse beneficiary may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such beneficiary during
the calendar year in which you attain age 70 years and 6 months, and payments
for subsequent years shall be calculated based on such life expectancy reduced
by one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If you die after distribution of your interest in this Contract has begun, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to your death.
If you die before distribution of your interest in this Contract begins,
distribution of your entire interest shall be completed no later than December
31 of the calendar year containing the fifth anniversary of your death, except
to the extent that an election is made to receive death benefit distributions in
accordance with (1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then your entire
interest may be distributed over the life of, or over a period certain not
greater than the life expectancy of, the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar year
immediately following the calendar year of your death.
NO. 92HR1B Page 12
<PAGE>
(2) If the designated beneficiary is your surviving spouse, the date
distributions that are required to begin in accordance with (1) above shall
not be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of your death or (B) December 31 of
the calendar year in which you would have attained age 70 years and 6
months.
For purposes of determining the "period certain" referred to in the
immediately preceding paragraph, life expectancy is computed by use of the
expected return multiples in Tables V and VI of Treasury Regulation Section
1.72-9. For purposes of distributions beginning after your death, unless
otherwise elected by the surviving spouse by the time distributions are
required to begin, life expectancies shall be recalculated annually. Such
election shall be irrevocable by the surviving spouse and shall apply to all
subsequent years. In the case of any other designated beneficiary, life
expectancies shall be calculated using the attained age of such beneficiary
during the calendar year in which distributions are required to begin
pursuant to this Section, and payments for any subsequent calendar year
shall be calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy was
first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under the terms of this Contract was based on information
that is subsequently found to be incorrect, your benefit will not be
invalidated, but an adjustment on the basis of the correct information will be
made in the amount of the benefit payments, or any amount used to provide the
benefit, or any combination thereof. Overpayments by us will be charged against
and underpayments will be added to any payment thereafter falling due under the
terms of this Contract with respect to the payee, affecting as many such
payments as are necessary to correct the overpayment or underpayment. Our
liability, with respect to a payee, is limited to the correct information and
the actual amounts used to provide the benefits then in force with respect to
the payee under this Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii)) another person or an
institution is then maintaining or has custody of such payee, and (iii) no
guardian, committee or other representative of the estate of such payee has been
appointed, we may make the payments (in the case of a minor, at a rate not
exceeding $200 a month) to such other person or institution, and will thereupon
be fully discharged from all liability with respect hereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one or two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Pursuant to Section 3.03, upon your election of an annuity form providing
payments for a period certain, you may designate (with the right to change such
designation) a payee to receive any payments that may become due after the death
of the person or persons upon whose life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable` after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's estate in
accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis
applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
NO. 92HR1B Page 13
<PAGE>
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
- --------------------------------------------------------------------------------
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR
LIFE ANNUITY FORM
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 OF Annuity Account Value)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
- --------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE
ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- --------------------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED
BASE RATE OF NET INVESTMENT RETURN IS
Age 3.5% 5.0%
- --------------------------------------------------------------------------------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
- --------------------------------------------------------------------------------
We will, with respect to each payment under a Variable Annuity Benefit, notify
the payee of the number of Annuity Units and the Average Annuity Unit Value used
in determining the amount of each variable payment. Such notice will be mailed
with each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS. If you are married,
your interest in this Contract shall be paid in the Normal Form joint and
survivor annuity, and if you are unmarried, your interest shall be paid in the
Normal Form life annuity, unless you elect otherwise as described in this
Section. If you are married and die before payment of your interest has
commenced, your interest shall be paid to your surviving spouse in the form of a
life annuity, unless at the time of your death there was a contrary election
made pursuant to this Section. The foregoing notwithstanding, your surviving
spouse may elect, before payment is to commence, to have payment made in any
form permitted under the terms of this Contract.
You may elect, at any time within the 90 consecutive day period before the first
day of the first period for which your interest is paid as an annuity or in any
other form, not to have your interest paid in the Normal Form in which case it
shall be paid in any other form elected under the terms of this Contract. If
such interest is to be paid to your spouse upon your death, you may elect,
during the period beginning on the first day of the plan year of the Plan in
which you attain age 35 years (or if you separate from Service prior to that
plan year, beginning on the date of separation) and ending with your death, for
a beneficiary other than your spouse to receive payment of the value of your
interest. In addition, if you will not yet attain age 35 years by the end of any
current plan year, you may make a special qualified election to designate a
beneficiary other than your spouse to receive payment of the value of your
interest. Such special qualified election shall be effective for the period
beginning on the date of such election and ending on the first day of the plan
year in which you will attain age 35. Amounts payable in accordance with this
Section will be automatically reinstated as of the first day of the plan year in
which you attain age 35 unless a new election designating a beneficiary other
than the spouse is made in accordance with the requirements of this Section.
NO. 92HR1B Page 14
<PAGE>
Any election described in the foregoing paragraph must be consented to by your
spouse in writing before a notary or a representative of the Plan unless you can
prove that there is no spouse or that the spouse cannot be located. Also, if you
have become legally separated from your spouse or have been abandoned (within
the meaning of local law) and have a court order to such effect, spousal consent
is not required unless a qualified domestic relations order provides otherwise.
Your election must designate a specific beneficiary (including any class of
beneficiaries or any contingent beneficiaries) that may not be changed without
further consent of the spouse, unless the spouse's consent expressly permits
designation by you without further consent of the spouse. The spouse's consent
under this Section shall acknowledge the effect of the election. In addition,
the spouse's consent (or the establishment that the consent of the spouse may
not be obtained) shall only be valid with respect to such spouse. Your waiver of
the Normal Form joint and survivor annuity shall not be effective unless the
election designates a form of benefit payment which may not be changed without
spousal consent (or the spouse expressly permits designations by you without any
further spousal consent). A consent that permits designations by you without any
requirement of further consent by such spouse must acknowledge that the spouse
has the right to limit consent to a specific beneficiary, and a specific form of
benefit where applicable, and that the spouse voluntarily elects to relinquish
either or both of such rights. If you make an election under this Section, you
may revoke that election, without spousal consent, at any time before the first
day of the first period for which an amount is paid as an annuity or in any
other form.
The provision requiring spousal consent in this Section shall also apply with
regard to your election to terminate this Contract or make partial withdrawals
pursuant to Sections 2.06 and 2.07, with respect to death benefits under Section
2.11 with respect to the Election and Commencement of Annuity Benefits pursuant
to Section 3.03, and with respect to a beneficiary designation set forth in
Section 4.04.
If the Annuity Account Value applied to provide the spousal benefits on the date
payment is to commence is in the aggregate less than $3,500, we may choose to
make payment in a single sum rather than in the form of a Qualified Joint and
Survivor Life Annuity or Life Annuity as described herein. Upon any payment made
pursuant to this Section, we will be released from any and all liability for
payment with respect to the Contributions made for you.
- --------------------------------------------------------------------------------
PART IV -- GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the terms of this Contract alone will govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend the terms of
this Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the terms of this Contract to reflect changes in the
Code, applicable Treasury Regulations, or regulations or published rulings of
the Internal Revenue Service so this Contract will continue to be an Annuity
used to fund a plan qualified under Section 401(a) of the Code.
SECTION 4.03 ASSIGNMENTS AND NON-TRANSFERABILITY. No interest of yours or of a
beneficiary under this Contract may be transferred to any person other than us
upon the surrender of this Contract. Except as permitted under Section
401(a)(13) of the Code, no right or interest of you or any other payee or
beneficiary in this Contract shall be (a) assignable; (b) subject to any lien;
or (c) liable for, or subject to, any obligation or liability of any person. The
preceding sentence shall not apply to an assignment, transfer or attachment
pursuant to a qualified domestic relations order, as defined in Section 414(p)
of the Code.
SECTION 4.04 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any death benefit
payable pursuant to Section 2.11. Subject to the spousal consent and survivor
rules of Section 3.06, you may change such designation from time to time during
your lifetime and while this Contract is in force. Any such designation or
change will be made by written notice in a form satisfactory to us. A change
will, upon receipt at the Processing Office, take effect as of the time the
written notice was signed, whether or not you are living on the date of receipt,
but without further liability as to any payment or other settlement made by us
before receipt of such change.
Unless otherwise specified in the designation, if you have designated two or
more persons as beneficiary, the beneficiary will be the designated person or
persons who survive you, and if more than one survive they will share equally.
NO. 92HR1B Page 15
<PAGE>
Any part of a death benefit payable pursuant to Section 2.11 for which there is
no designated beneficiary living at your death will be payable in a single sum
to your children who survive you, in equal shares, or should none survive, then
to your estate.
If you elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity previously elected by you, with respect to the beneficiary,
subject to our rules then in effect. If at your death there is no election in
effect to apply the single sum death benefit to provide an Annuity Benefit, the
beneficiary may make such an election. Any such election must meet the minimum
distribution requirements under the Code, as described in Section 3.05. The
foregoing notwithstanding, any designation of beneficiary is subject to the
Spousal Consent rules set forth in Section 3.06.
SECTION 4.05 DISQUALIFICATION. In the event that this Contract fails to qualify
as an Annuity as described in Section 1.02, we will have the right, upon
receiving notice of such fact before the Retirement Date, to terminate this
Contract and pay to you the Annuity Account Value less a deduction for the
appropriate part attributable to you of any Federal income tax payable which
would not have been payable if you had an Annuity.
In the event that the Plan fails to qualify as a Plan under Section 401(a) of
the Code and applicable Treasury Regulations, we reserve the right, upon
receiving notice of such fact, to transfer the Annuity Account Value under this
Contract to another annuity contract issued by us, an affiliate or subsidiary,
on your life, or to terminate this Contract and pay to you the Annuity Account
Value less deduction for applicable taxes, solely at our option.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to the Employer, we
reserve the right at our sole discretion to limit contributions to this
Contract.
SECTION 4.07 DEFERMENT. Applications of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities Exchange
Commission, by order, permits us to defer payments in order to protect persons
with interests in the Investment Divisions. We can defer payments of any portion
of your Annuity Account Value in the Guaranteed Interest Division for up to six
months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year, we will furnish
you with a notice showing the following:
(1) the amount you have in the Guaranteed Interest Division,
(2) the total number of Accumulation Units you have in the Stock Division,
Balanced Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Values,
(4) the amount you have in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division,
(5) the Cash Value, and
(6) the amount of your death benefit.
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.09 AGE. If your age has been misstated, any benefits will be those
which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
NO. 92HR1B Page 16
<PAGE>
OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28,1992
RETIREMENT DATE: JAN 1, 2020
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O. New York,
New York 10116
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division (referred to in this Contract as the
"Investment Divisions") or to the Guaranteed Interest Division, in accordance
with Sections 2,02, 2.03 and 2.04 as directed by you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide the
Annuitant with an Annuity Benefit or a Cash Value benefit if the Annuitant is
then living, and
o TO PROVIDE the Annuitant with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract "we", "our", and "us" mean The
Equitable Life Assurance Society of the United States ("Equitable"). "You" and
"your" mean the Annuitant at the time a right is exercised by the Annuitant.
TEN DAYS TO EXAMINE CONTRACT--You may cancel this Contract by returning it to us
within ten days after receipt of it. Upon such cancellation, we will refund any
Contribution made to us under this Contract.
/s/ Molly K. Heines /s/ Richard H. Jenrette
Vice President and Secretary Chairman of the Board and
Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.22 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGE AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92 IRAA
<PAGE>
The Contract is issued in consideration of the payment to us of the
Contributions made under the terms of the Contract.
The provisions on the following pages are part of this Contract. A copy of the
application is incorporated in and made part of this Contract.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
DEFINITIONS Page
Section 1.01 - Annuitant..........................................4
1.02 - Annuity............................................4
1.03 - Annuity Account Value..............................4
1.04 - Annuity Benefit....................................4
1.05 - Cash Value.........................................4
1.06 - Class of Contracts.................................4
1.07 - Code...............................................4
1.08 - Contract...........................................4
1.09 - Contract Date......................................4
1.10 - Contract Year......................................4
1.11 - Contribution.......................................4
1.12 - Divisions..........................................5
1.13 - Eligible Annuity Certain...........................5
1.14 - Guaranteed Interest Rate...........................5
1.15 - Joint and Survivor Life
Annuity Form....................................5
1.16 - Life Annuity Form..................................5
1.17 - Normal Form........................................5
1.18 - Period Certain Annuity.............................5
1.19 - Processing Office..................................5
1.20 - Retirement Date....................................5
1.21 - Separate Account...................................5
1.22 - Separate Account Definitions.......................6
1.23 - Transaction Date...................................7
1.24 - Trust..............................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contribution.......................................7
2.02 - Separate Account Investment
Divisions.......................................7
2.03 - Guaranteed Interest Division.......................7
2.04 - Allocation to Divisions............................7
2.05 - Transfers Among Divisions..........................8
2.06 - Termination of this Contract.......................8
2.07 - Partial Withdrawals................................8
2.08 - Charges for Partial Withdrawals....................8
2.09 - Free Corridor Amount...............................8
2.10 - Annual Administrative Charge.......................9
2.11 - Death Benefit......................................9
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit..............................9
3.02 - Variable Annuity Benefit...........................9
3.03 - Election and Commencement
of Annuity Benefits............................10
3.04 - Amount of Annuity Benefits........................10
3.05 - Payment of Annuity Benefits.......................10
GENERAL PROVISIONS
Section 4.01 - Contract..........................................12
4.02 - Statutory Compliance..............................13
4.03 - Nonforfeitability,
Nontransferability, and
Assignments....................................13
4.04 - Beneficiary.......................................13
4.05 - Disqualification..................................13
4.06 - Future Contributions..............................13
4.07 - Deferment.........................................13
4.08 - Annual Notice.....................................13
4.09 - Age and Sex.......................................13
No. 92 IRAA Page 2
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OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28,1992
RETIREMENT DATE: JAN 1, 2020
INITIAL GUARANTEED INTEREST RATE: 7.50% to MAR 31, 1992
MINIMUM GUARANTEED INTEREST RATE: 6.00% TO DEC 31, 1992
3.00% AFTER DEC 31, 1992
BENEFICIARY: JANE DOE
FORM NUMBER: 92IRAA
- --------------------------------------------------------------------------------
TABLE OF GUARANTEED VALUES
ISSUE AGE 38 MALE $1000 ANNUAL CONTRIBUTION
NUMBER OF YEARS GUARANTEED GUARANTEED PAID-UP MONTHLY
SINCE FIRST CONTRIBUTION CASH VALUE ANNUITY AT AGE 65
- ------------------------ ---------- -----------------
1 983 6.61
2 1,958 16.17
3 2,963 26.62
4 3,998 36.76
5 5,064 46.61
6 6,220 56.96
7 7,362 67.37
8 8,538 77.25
9 9,870 86.97
10 11,263 95.47
11 12,719 103.72
12 14,242 111.73
13 15,832 119.50
14 17,337 127.05
15 18,887 134.38
16 20,484 141.49
17 22,129 148.40
18 23,822 155.10
19 25,567 161.61
20 27,364 167.94
24 (Age 62) 35,108 191.43
27 (Age 65) 41,547 207.32
THE TABLES ILLUSTRATE MINIMUM GUARANTEED VALUES AND ASSUME A HYPOTHETICAL $1,000
CONTRIBUTION MADE ANNUALLY ON THE FIRST OF THE MONTH FOLLOWING THE CONTRACT
DATE. THE GUARANTEED CASH VALUE TABLE REFLECTS AN ANNUAL ADMINISTRATIVE CHARGE
(SEE SECTION 2.10) AND A WITHDRAWAL CHARGE OF UP TO 6% OF THE ACCOUNT VALUE (SEE
SECTION 1.05). THE TABLES ASSUME THAT 100% OF ALL CONTRIBUTIONS AND EARNINGS ARE
ALLOCATED TO AND REMAIN IN THE GUARANTEED INTEREST DIVISION.
YOUR ACTUAL GUARANTEED VALUES MAY DIFFER FROM THOSE SHOWN ABOVE, DEPENDING ON
THE LEVEL AND FREQUENCY OF YOUR CONTRIBUTIONS.
THE GUARANTEED PAID-UP MONTHLY ANNUITY SHOWN ABOVE WILL BE REDUCED BY ANY CHARGE
WE MAKE FOR ANY APPLICABLE TAXES (SEE SECTION 3.04). OTHER FORMS OF ANNUITY
BENEFITS MAY BE AVAILABLE; HOWEVER, ANY ANNUITY BENEFIT CONTRACT ELECTED AS A
SETTLEMENT WILL BE SUBJECT TO A CHARGE (SEE SECTION 3.04).
*ASSUMES FIXED BENEFIT JOINT AND SURVIVOR LIFE ANNUITY (100% CONTINUATION TO
SURVIVOR) WITH JOINT ANNUITANT THE SAME AGE AS THE ANNUITANT.
No. 92 IRAA Page 3
<PAGE>
- --------------------------------------------------------------------------------
PART I--DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means the person who owns this
Contract as shown on page 3 and who exercises all rights under the terms of this
Contract.
SECTION 1.02 ANNUITY. The Term "Annuity" means an individual retirement annuity
contract meeting the requirements of Section 408(b) of the Code.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account, pursuant to Sections 2.02 and
2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.15, 1.16, 3.01, and 3.02) refer to monthly payments to be
made under an Annuity Benefit. You may wish to have your Annuity Benefit paid at
other intervals, such as quarterly, semi-annually, or annually, instead of
monthly. You may elect this at the time you elect the Annuity Benefit form
described in Section 3.03; in that event, all references in this Contract to
monthly payments will be deemed to mean payments at the frequency you elect,
subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less any applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the excess of (i) the Annuity Account Value over (ii) the Free Corridor
Amount defined in Section 2.09; and
(b) is the excess, if any, of (i) 8% of the total Contributions made during
the Current Contract Year and the nine preceding Contract Years over (ii)
the cumulative total of any prior charges for partial withdrawals made
pursuant to Section 2.08.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
A withdrawal charge will not apply, which means the Cash Value will equal the
Annuity Account Value upon any of the following occurrences:
(i) your attainment of age 59 and 6 months and your completion of at least
five Contract Years, or
(ii) a request is made for a refund of a contribution in excess of amounts
allowed to be contributed under Section 408 of the Code within one month
of the date on which the contribution is made, or
(iii) you die and a distribution is made to the beneficiary, or
(iv) your attainment of age 55, your completion of at least five Contract Years
and you use the amount withdrawn to purchase from us an Eligible Annuity
Certain, or
(v) your completion of at least three Contract Years and you use the amount
withdrawn to purchase from us a Period Certain Annuity of at least 10
years, or
(vi) your Annuity Account Value is applied to the election of a Life Annuity
Form or Joint and Survivor Life Annuity Form distribution option, or
(vii) your completion of at least twelve Contract Years.
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract, which is
intended to qualify as an individual retirement annuity contract under Section
408(b) of the Code. This Contract is established for the exclusive benefit of
you or your beneficiaries.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both an application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made in cash
or by check to us with respect to this Contract. We are under no obligation to
ac-
No. 92 IRAA Page 4
<PAGE>
cept any Contribution less than $20.00
Except in the case of a rollover contribution (as permitted by Sections
402(a)(5), 402(a)(6), 402(a)(7), 403(a)(4), 402(b)(8), or 408(d)(3) of the
Code), no Contributions will be accepted unless they are in cash, and the total
of such Contributions shall not exceed $2,000 for any taxable year. In addition,
amounts directly transferred to this Contract, from an individual retirement
account, or annuity contract meeting the requirements of Section 408 of the Code
are also not subject to the $2,000 limit on contributions.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following Divisions described in this
Contract:
(a) the Guaranteed Interest Division, and
(b) the Investment Division of the Separate Account.
SECTION 1.13 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us, which extends beyond
your attainment of age 59 and 6 months and does not permit any prepayment of the
unpaid principal (that is no withdrawal or single sum payment) prior to your
attainment of age 59 and 6 months.
SECTION 1.14 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on page 3 of
this Contract. Section 2.03 describes the determination of the rate to apply
thereafter.
SECTION 1.15 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.16 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.17 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means, (i) if you have a living spouse at your Retirement Date,
the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form
with your spoons as the contingent annuitant (with 100% of the monthly payment
amount continued to your spouse), and (ii) if you do not have a living spouse at
the Retirement Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.18 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
your payments as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 1.19 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P.O. Box 2996, G.P.O., New York, New York 10116, or
such other location as we shall designate by advance written notice to you.
SECTION 1.20 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain your retirement age as shown on page 3 of this Contract. Before the
Retirement Date you may elect to change the Retirement Date to another
Retirement Date, which may be any date after the filing of the election (other
than the 29th, 30th, or 31st day of any month). No Retirement Date shall be
earlier than the date you attain age 59 and 6 months nor shall be later than the
first day of April following the calendar year in which you attain age 70 and 6
months. Any election for such change must be made in writing by you and shall
not take effect until received by us at our Processing Office.
SECTION 1.21 SEPARATE ACCOUNT. The term "Separate Account" means our Separate
Account A, which is organized as a unit investment trust (a type of investment
company). We established the Separate Account and it is maintained in accordance
with the laws of New York State. Realized and unrealized gains and losses from
the assets of the Separate Account are credited to or charged against it without
regard to our other income, gains or losses. Assets are put in the Separate
Account to support this Contract and other variable annuity contracts. Assets
may be put in the Separate Account for other purposes, but not to support
contracts or policies other than variable annuities and variable life insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these Contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
the Trust. We reserve the right to change the designated Trust or to add
designated trusts or investment companies. The Investment Divisions available
are the Stock Division, the Money Market Division, the Balanced Division and the
Aggressive Stock Division. The Guaranteed Interest Division is not part
No. 92 IRAA Page 5
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of the Separate Account, but rather is an asset of our General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which Equitable is open, the New York Stock Exchange
is open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments it is
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such a committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any other
form;
(v) add Investment Divisions (or subdivisions of Investment Divisions) to, or
remove Investment Divisions (or subdivisions of Investment Divisions) from
the Separate Account (the term "Investment Division" in this Contract
shall then refer to any other Investment Division in which the assets of a
Class of Contracts to which this Contract belongs, were placed);
(vi) combine any two or more Investment Divisions (or subdivisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for any applicable
tax charges) at a rate not to exceed 1.49% per year for each of the Stock, Money
Market and Balanced Divisions, and 1.34% per year, for the Aggressive Stock
Division, for financing accounting, death benefits, mortality risk, expenses and
expense risks. The charge shall be made in accordance with Subsection (c) of the
Net Investment Factor provision in Section 1.22. The relative proportion of
these charges may be modified. The daily charge, plus the investment advisory
fee charges and direct operating expense charges of the Trust shall not exceed a
total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract. The maximum rate may not be altered
without your approval.
SECTION 1.22 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For the Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share
value reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
taking into account any amounts allocated or withdrawn for that Valuation
Period).
(c) is the daily asset charge for the expenses of this Contract, times the
number of calendar days in the Valuation Period.
ACCUMULATION UNIT: an "Accumulation Unit" is a unit which is purchased in an
Investment Division where your Contributions are invested and which is used in
determining the amount you have in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first Contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base Rates of Net Investment Return of 5% and 3.5% a year, respectively. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for
No. 92 IRAA Page 6
<PAGE>
a Valuation Period is the Net Investment Factor for such period reduced for each
calendar day in such subsequent Valuation Period by the Net Investment Factor
times (i) .00013366, if the Assumed Base Rate of Net Investment Return is 5% and
(ii) .00009425, if the Assumed Base Rate of Net Investment Return is 3.5%. The
Assumed Base Rate of Net Investment Return shall be 5%, except in states where
the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods ending in such month.
SECTION 1.23 TRANSACTION DATE. The term "Transaction Date" means the business
day we receive a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone as
described in Section 2.05, the term "Transaction Date" means the business day
the telephone transaction is received.
SECTION 1.24 Trust. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
- --------------------------------------------------------------------------------
PART II--ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. Contributions under this Contract are not fixed and
may be made at any time and in any amount subject to the limits described in
Section 1.11 of this Contract. (If you make a Contribution which qualifies as a
qualified plan rollover within the meaning of Section 402(a)(5) or 403(b)(8) of
the Code, and such amount will be commingled with other Contributions under this
Contract, such rollover contributions may not be rolled over to a qualified plan
at a future date, unless otherwise provided by the Code).
Each Contribution received by us will, before its allocation under this
Contract, be reduced by the amount of any applicable tax charge, as determined
by us.
Contributions will be allocated to the Division in accordance with the
instructions received on your application, unless later changed.
Except in the case of a rollover Contribution (as permitted by 402(a)(5),
402(a)(6), 402(a)(7), 403(a)(4), 403(b)(8), or 408(d)(3) of the Code), no
Contributions will be accepted unless they are in cash, and the total of such
Contributions shall not exceed $2,000 for any taxable year. Amounts transferred
to this Contract from an individual retirement account or annuity contract
meeting the requirements of Section 408 of the Code are not subject to the
$2,000 limit on contributions.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to or withdrawn or transferred from an Investment
Division, you will be credited or charged, as the case may be, with the number
of Accumulation Units determined by dividing said amount by the Accumulation
Unit Value for the appropriate Investment Division for the Valuation Period
which includes that date. The number of units you have in an Investment Division
on any date is equal to (i) the sum of any Accumulation Units that have been
allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation Units
have been withdrawn pursuant to Sections 2.07 or 2.08 or transferred from the
Investment Division pursuant to Section 2.05. The amount in an Investment
Division on any date is equal to the product of (i) the number of Accumulation
Units in the Investment Division on the date and (ii) the Accumulation Unit
Value for the Investment Division for the Valuation Period which includes that
date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) your election and commencement of Annuity Benefits pursuant to
Section 3.03, (ii) receipt of due proof of your death, or (iii) Termination of
this Contract, pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Section 2.07, 2.08, or 2.10 or
transferred from the Guaranteed Interest Division, pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date,
pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts, we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under this Contract terminates
on the earliest of (i) your election and commencement of annuity benefits
pursuant to Section 3.03, (ii) receipt of due proof of your death, and (iii)
Termination of this Contract, pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction
No. 92 IRAA Page 7
<PAGE>
Date on which we have received both such Contribution and such direction.
Contributions made to an Investment Division purchase Accumulation Units in that
Investment Division, using the Accumulation Unit Value next computed after the
Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon Termination of this Contract pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.11.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request, or
through the use of a touch tone telephone, transfer all or part of the amount
you have in a Division to one or more of the Divisions as follows: (1) amounts
in the Guaranteed Interest Division, Stock Division, Balanced Division and
Aggressive Stock Division may be transferred among such Divisions; (2) amounts
in the Money Market Division may be transferred to other Divisions. Written
authorization for touch tone telephone initiated transfers is only required when
authorization for telephone transfer is requested. Upon advance written notice
to you, we reserve the right to discontinue the acceptance of transfer requests
through the use of a touch tone telephone. All transfers will be effective on
the Transaction Date and will be subject to our rules in effect at the time of
transfer. With respect to the Investment Division; the transfer will be made at
the Accumulation Unit Value next computed after the Transaction Date. No
transfers are permitted to the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. You may elect by written notice to
terminate this Contract. We will determine the Cash Value as of the Transaction
Date we receive your written election.
If this Contract is terminated, surrendered or exchanged prior to your
Retirement Date, any applicable tax charges we have paid may be deducted. If we
have previously deducted charges for applicable taxes from Contributions
pursuant to Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
your Contract.
The payment of such Cash Value may be deferred by us in accordance with the
provisions of Section 4.07.
We reserve the right to pay the Annuity Account Value under the Contract and
terminate this Contract. This right may be exercised if (i) no Contributions are
made on your behalf during the last three completed Contract Years and the
Annuity Account Value is less than $500, or (ii) a partial withdrawal that would
result in your Annuity Account Value falling below $500. We also reserve the
right to terminate this Contract if no Contributions have been made within 120
months of the Contract Date shown on page 3 of this Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount you have in the Divisions and the Annuity Account Value shall be
zero. We will be released from any and all liability for payments with respect
to the Contributions from which the Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. You may elect, by written notice to us, to
make a partial withdrawal from the Divisions.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to the person entitled to such payment as
designated in writing by you. The amount paid plus any withdrawal charge
applicable pursuant to Section 2.08 will be withdrawn from the amounts you have
in the Divisions. Unless we are instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from and any all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise you and reserve the right to pay the
Annuity Account Value to you, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.09 or (b) the Cash Value is equal to the Annuity
Account Value, pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount, in proportion to the amount you have
in them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the amount withdrawn in excess of the Free Corridor
No. 92 IRAA Page 8
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Amount (including such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior partial withdrawal
charges made pursuant to this Section.
However, notwithstanding the above, if your are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to your contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means, if you
have completed three Contract Years or attained age 59 and 6 months, an amount
equal to the excess, if any, of (i) 10% of the sum of the Annuity Account Value
on the Transaction Date over (ii) cumulative prior withdrawals made pursuant to
Section 2.07 in the current Contract year. If you have not completed three
Contract years or attained age 59 and 6 months, the Free Corridor Amount is
zero.
SECTION 2.10 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $10,000, we will
withdrawn from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value, including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts that you have in
the Divisions.
If the Annuity Account Value is less than $10,000, on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03,
or (b) the date of Termination of this Contract pursuant to Section 2.06 or
2.11, we will prorate the Annual Administrative Charge applicable to the
completed portion of the Current Contract Year and withdraw such amount in lieu
of the Annual Administrative Charge applicable to the completed portion of the
Current Contract Year and withdraw such amount in lieu of the full Annual
Administrative Charge described in this Section for the applicable part of that
Contract Year.
If the Annuity Account Value is $10,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
SECTION 2.11 DEATH BENEFIT. Upon receipt of due proof of your death , we will
pay to the beneficiary designated by you to receive such payment, pursuant to
Section 4.04 of this contract, the amount of death benefit payable. The amount
of the death benefit is equal to the greater of (i) the Annuity Account Value
and (ii) the minimum death benefit. Such minimum death benefit is the sum of all
Contributions made pursuant to Section 2.01 (before reduction for any applicable
tax charge) less any withdrawals made pursuant to Section 2.07. Any such
withdrawal will reduce the minimum death benefit (as adjusted by any previous
such withdrawal) by an amount which is in the same proportion as the amount that
was withdrawn is to the Annuity Account Value. If, in accordance with the
provisions of Section 3.02, the Cash Value of another annuity contract issued by
us, or one of our affiliated or subsidiary life insurance companies, which
provides for a death benefit before retirement equal to the greater of the
contract Cash Value or an alternate amount based on premiums paid or
Contributions made under the annuity contract is transferred to this Contract,
such Cash Value or alternative amount as of the date of transfer will be
included in the "sum of all Contributions" in lieu of the amount of Cash Value
transferred for purposes of the death benefit under this Contract.
We will pay the death benefit to your beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also, in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to your
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value will be zero. We will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Account Value arose.
- --------------------------------------------------------------------------------
PART III--ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The Amount of each monthly payment under any Fixed Annuity Benefit provided
under this Contract with respect to a payee is the amount provided pursuant to
Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed based rate of net
investment return referred to in Section 1.22 is 5% or 3.5%, respectively. The
daily rate of investment return is
No. 92 IRAA Page 9
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before deduction of charges, as described in Section 1.21, not to exceed the
maximum rate of 1.75% after any deductions to provide for any applicable tax
charge. These charges include a daily charge for financial accounting, death
benefits, mortality risk, expenses and expense risk, plus the investment
advisory fee charges and direct operating expense charges of the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under this Contract with respect to a payee is the monthly
amount provided with respect to a payee pursuant to the fourth paragraph of
Section 3.04. The amount of the fifth and each subsequent payment under a
Variable Annuity Benefit will be equal to the number of Annuity Units with
respect to such benefit, multiplied by the Average Annuity Unit Value for the
second calendar month immediately preceding the due date of the payment. The
number of Annuity Units with respect to a benefit is the number determined by
dividing the amount of the first monthly payment under such benefit by the
Annuity Unit Value for the Valuation Period which includes the due date of the
first monthly payment. (As described in Section 3.05, we will notify the payee
how each Variable Annuity payment is determined).
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of your
Retirement Date, provided you are then living, the Annuity Account Value shall
be applied to provide the Normal Form of Annuity Benefit, unless you elect (i)
to receive the Cash Value of this Contract in a single sum or (ii) to apply the
Annuity Account Value or Cash Value, whichever is applicable pursuant to the
first paragraph of Section 3.04, to provide an Annuity Benefit on any other form
offered by us, or one of our affiliated or subsidiary life insurance companies,
as elected by you, or (iii) to take partial withdrawals in amounts and at times
as required by the Code, pursuant to Sections 2.07 and 3.05, subject to our
rules then in effect and any other applicable requirements under the Code.
We will provide notice and election forms to you not more than six months before
your Retirement Date.
If you elect to terminate this Contract, prior to the Retirement Date, pursuant
to Section 2.06, an election may be made to receive an Annuity Benefit in lieu
of the Cash Value.
We will have the right to require you to furnish pertinent information to
provide an Annuity Benefit and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form, issued by us or one of our affiliated or subsidiary
life insurance companies.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect, pursuant to the first or
third paragraph of Section 3.03, to receive an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the annuity form elected involves life contingencies or
(ii) the Cash Value, if the Annuity Form elected does not involve life
contingencies.
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine, If we have
previously deducted any applicable tax charge from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to your Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below, or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your contract will be governed by our
supplementary contract then in effect.
If an amount is applied to provide an Annuity Benefit, the amount to be applied
will, in addition to any tax charge reduction, be reduced by an administrative
charge. The amount of such charge will be determined from time to time in
accordance with our general practices applicable on a uniform basis to all
contracts of the same type as this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under this Contract, as
indicated, on the Joint and Survivor Life Annuity Form (with 100% of the amount
of your payment continued to your spouse). The amounts of income provided under
the Fixed Annuity Benefit payable on the Life Annuity Form and Joint and
Survivor Life Annuity Form are based on 3.5% interest and the 1983 Individual
Annuity Table "a". The amount of income initially provided under the Variable
Annuity Benefit payable on the Life Annuity Form and the Joint and Survivor Life
Annuity Form are based on the 1983 Individual Annuity Table "a" and an Assumed
Base Rate of Net Investment Income Return of 3.5% or 5%, whichever applies
pursuant to Section 1.22.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us based on 3.5% interest and the 1983 Individual Annuity Table
"a" if such annuity form provides for a Fixed Annuity Benefit, and on the same
such Table and an Assumed Base Rate of Net Investment Income Return of 3.5% or
5%, which applies pursuant to Section 1.22 if such annuity form provides for a
Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Your entire interest in this Contract
will be distributed or begin to be distributed, in accordance with Section
401(a)(9) of the Code and the applicable Treasury Regulations thereunder no
later than the first day of April following the calendar year in which you
attain age 70 and 6 months ("Required Beginning Date"). Your entire interest may
be distributed, as you elect, over (a) your life, or the lives of you and your
designated beneficiary, or (b) a period certain not extending beyond your life
expectancy, or the joint and last survivor expectancy of you and your designed
benefi-
No. 92 IRAA Page 10
<PAGE>
ciary. Distributions must be made in periodic payments at intervals of no longer
than one year. In addition, payments must be either non-increasing or they may
increase only as provided in Q&A F-3 of Section 1.401(a)(9)-1 of the proposed
Treasury Regulations, or any successor Regulation thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental death
benefit requirements of Section 401(a)(9)(G) of the Code, and applicable
Treasury Regulations, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless you otherwise elect prior to the time distributions are required to
begin, those life expectancies shall be recalculated annually. Such election
shall be irrevocable and shall apply to all subsequent years. The life
expectancy of a non-spouse beneficiary may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such beneficiary during
the calendar year in which you attain age 70 and 6 months, and payments for
subsequent years shall be calculated based on such life expectancy reduced by
one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If you die after distribution of your interest in this Contract has begun, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to your death.
If you die before distribution of your interest begins, distribution of your
entire interest shall be completed no later than December 31 of the calendar
year containing the fifth anniversary of your death, except to the extent that
an election is made to receive death benefit distributions in accordance with
(1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then your entire
interest may be distributed over the life of, or over a period certain not
greater than the life expectancy of, the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar year
immediately following the calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date that
distributions are required to begin in accordance with (1) above shall not
be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of your death or (B) December 31 of
the calendar year in which you would have attained age 70 and 6 months.
For purposes of determining the "period certain" referred to in the immediately
preceding paragraph, life expectancy is computed by use of the expected return
multiples in Tables V and VI of Treasury Regulation Section 1.72-9. For purposes
of distributions beginning after your death, unless otherwise elected by the
surviving spouse by the time distributions are required to begin, life
expectancies shall be recalculated annually. Such election shall be irrevocable
by the surviving spouse and shall apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies shall be calculated using
the attained age of such beneficiary during the calendar year in which
distributions are required to begin, pursuant to this Section, and payments for
any subsequent calendar year shall be calculated based on life expectancy
reduced by one for each calendar year which has elapsed since the calendar year
life expectancy was first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date, distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under this Contract was based on information that is
subsequently found to be incorrect, your benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by us will be charged against and
underpayments will be added to any payments thereafter falling due under this
Contract with respect to the payee, affecting as many such payments as are
necessary to correct the overpayment or underpayment. Our liability with respect
to a payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under this
Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under this Contract is physically or mentally incompetent to receive
such payment or is a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments (in the case of a minor, at a rate not exceeding $200 a month) to
such other person or institution, and will thereupon be fully discharged from
all liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, the payee thereunder
may elect, without the concurrence of any other person, to receive the
No. 92 IRAA Page 11
<PAGE>
commuted value of any remaining payments, provided no person upon whose life the
income depends is surviving.
Pursuant to Section 3.03, upon your election of an annuity form providing
payments for a period certain, you may designate (with the right to change such
designation) a payee or payees to receive any payments that may become due after
the death of the person or persons upon whose life or lives the income may
depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's estate in
accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments. The commuted value of any such remaining payments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
We will, with respect to each payment under a Variable Annuity Benefit, notify
the payee of the number of Annuity Units and the Average Annuity Unit Value used
in determining the amount of each variable payment. Such notice will be mailed
with each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
TABLES OF
GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT
AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.51 4.56 4.61 4.66 4.71 4.76 4.81 4.85 4.90 4.94 4.99
61 4.59 4.65 4.70 4.75 4.81 4.86 4.91 4.96 5.01 5.06
62 4.69 4.74 4.80 4.85 4.91 4.97 5.02 5.07 5.13
63 4.78 4.84 4.90 4.96 5.02 5.08 5.14 5.20
64 4.88 4.95 5.01 5.08 5.14 5.20 5.27
65 4.99 5.06 5.13 5.20 5.27 5.34
66 5.11 5.18 5.26 5.33 5.41
67 5.24 5.31 5.39 5.47
68 5.37 5.45 5.54
69 5.51 5.60
70 5.67
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1000 of Annuity Value)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED BASE
RATE OF NET INVESTMENT RETURN IS:
3.5% 5.0%
AGE MALES FEMALES MALES FEMALES
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
60 5.57 5.00 6.46 5.89
61 5.71 5.11 6.60 6.00
62 5.86 5.23 6.75 6.11
63 6.03 5.36 6.92 6.24
64 6.20 5.49 7.09 6.37
65 6.39 5.64 7.28 6.51
66 6.58 5.79 7.47 6.66
67 6.80 5.96 7.69 6.83
68 7.02 6.13 7.92 7.00
69 7.27 6.32 8.16 7.19
70 7.53 6.53 8.42 7.40
- -------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire agreement between
the parties and the provisions of this Contract alone govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified nor may any of our rights or requirements be
waived, except in writing and by an authorized officer of Equitable. This
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person.
No. 92 IRAA Page 12
<PAGE>
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend this Contract
without the consent of any other person in order to comply with applicable laws
and regulations. Such rights shall include, but not be limited to, the right to
conform this Contract to reflect changes in the Code, applicable Treasury
Regulations, or published rulings of the Internal Revenue Service so that this
Contract will continue to be an Annuity.
SECTION 4.03 NONFORFEITABILITY, NONTRANSFERABILITY, AND ASSIGNMENTS. Your entire
interest under the Contract is nonforfeitable. This Contract is nontransferable
except by surrender to us. Your interest under this Contract may not be sold,
assigned, discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under this Contract may be assigned, commuted, or encumbered
by the payee, unless otherwise permitted as described herein, and, to the extent
permitted by law, no such amount will in any way be subject to any claim against
such payee.
SECTION 4.04 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any death benefit
payable pursuant to Section 2.11. You may change such designation from time to
time during your lifetime and while this Contract is in force. Any such
designation or change will be made by written notice in a form satisfactory to
us. A change will, upon receipt at the Processing Office, take effect as of the
time the written notice was signed, whether or not you are living on the
Transaction Date, but without further liability as to any payment or other
settlement made by us before receipt of such change.
Unless otherwise specified in the designation, if you have designated two or
more persons as beneficiary, the beneficiary will be the designated person or
persons who survive you, and if more than one survive, they will share equally.
Any part of a death benefit payable pursuant to Section 2.11 for which there is
no designated beneficiary living at your death will be payable in a single sum
to your children who survive you, in equal shares, or should none survive, then
to your estate.
In you elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity elected by you, with respect to the beneficiary, subject to our
rules then in effect. If at your death there is no election in effect to apply
the single sum death benefit to provide an Annuity Benefit, the beneficiary may
make such an election. Any such election must meet the minimum distribution
requirements under the Code, as described in Section 3.05.
SECTION 4.05 DISQUALIFICATION. In the event that this Contract fails to qualify
as an Annuity, we will have the right, upon receiving notice of such fact, prior
to the Retirement Date, to terminate this Contract and pay to you the Annuity
Account Value less a deduction for the appropriate part attributable to you of
any Federal income tax payable which would not have been payable if you had an
Annuity.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to you, we reserve the
right, at our sole discretion, to limit Contributions under this Contract, as
required by law or if such Contributions are in excess of the maximum amounts as
permitted under the Code.
SECTION 4.07 DEFERMENT. Application of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payment in order to protect
persons with interests in the Investment Divisions. We can defer payment of any
portion of your Annuity Account Value in the Guaranteed Interest Division for up
to six months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year we will furnish you
with a notice showing the following:
(1) the amount you have in the Guaranteed Interest Division,
(2) the total number of Accumulation Units you have in the Stock Division,
Balanced Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Values,
(4) the amount you have in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division,
(5) the Annuity Account Value,
(6) the Cash Value, and
(7) the amount of death benefit payable with respect to you.
We will also furnish annual calendar year reports concerning the status of the
Annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.09 AGE AND SEX. If your age or sex has been misstated, any benefits
will be those which would have been purchased at the correct age or sex. Any
overpayments or underpayments made by us will be charged or credited with
interest at the rate of 6% per year, and such interest will be deducted from or
added to benefits falling due thereafter.
No. 92 IRAA Page 13
<PAGE>
Owner: [EQUITABLE LOGO]
Annuitant:
Contract Number:
Issue Date:
Contract Date:
Retirement Date:
- --------------------------------------------------------------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P O Box 2996, New York,
New York 10116-2996
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division (referred to in this Contract as the
"Investment Divisions") or to the Guaranteed Interest Division, in accordance
with Sections 2.02, 2.03 and 2.04 as directed by you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide the
Annuitant with an Annuity Benefit or a Cash Value benefit if the Annuitant is
then living, and
o TO PROVIDE the Annuitant with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract "we", "our", and "us" mean The
Equitable Life Assurance Society of the United States ("Equitable"). "You" and
"your" mean the Annuitant at the time a right is exercised by the Annuitant.
TEN DAYS TO EXAMINE CONTRACT - You may cancel this Contract by returning it to
us within ten days after receipt of it. Upon such cancellation, we will refund
any Contribution made to us under this Contract, plus or minus any investment
gain or loss experienced in the Investment Divisions of the Separate Account
from the date such Contribution is allocated to such Investment Division to the
date we receive the returned Contract.
/s/Molly K. Heines /s/Joseph J. Melone
Molly K. Heines Joseph J. Melone
Vice President and Secretary Chairman of the Board and Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.22 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGE AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92 IRAB
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The Contract is issued in consideration of the payment to us of the
Contributions made under the terms of the Contract.
The provisions on the following pages are part of this Contract. A copy of the
application is incorporated in and made part of this Contract.
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TABLE OF CONTENTS
DEFINITIONS Page
Section 1.01 - Annuitant...................................................4
1.02 - Annuity.....................................................4
1.03 - Annuity Account Value.......................................4
1.04 - Annuity Benefit.............................................4
1.05 - Cash Value..................................................4
1.06 - Class of Contracts..........................................4
1.07 - Code........................................................4
1.08 - Contract....................................................4
1.09 - Contract Date...............................................4
1.10 - Contract Year...............................................4
1.11 - Contribution................................................4
1.12 - Divisions...................................................5
1.13 - Eligible Annuity Certain....................................5
1.14 - Guaranteed Interest Rate....................................5
1.15 - Joint and Survivor Life
Annuity Form................................................5
1.16 - Life Annuity Form...........................................5
1.17 - Normal Form.................................................5
1.18 - Period Certain Annuity......................................5
1.19 - Processing Office...........................................5
1.20 - Retirement Date.............................................5
1.21 - Separate Account............................................5
1.22 - Separate Account
Definitions.................................................6
1.23 - Transaction Date............................................7
1.24 - Trust.......................................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions...............................................7
2.02 - Separate Account
Investment Divisions........................................7
2.03 - Guaranteed Interest Division................................7
2.04 - Allocation to Divisions.....................................7
2.05 - Transfers Among Divisions...................................8
2.06 - Termination of this Contract................................8
2.07 - Partial Withdrawals.........................................8
2.08 - Charges for Partial Withdrawals.............................8
2.09 - Free Corridor Amount........................................9
2.10 - Annual Administrative Charge................................9
2.11 - Death Benefit...............................................9
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit.......................................9
3.02 - Variable Annuity Benefit....................................9
3.03 - Election and Commencement
of Annuity Benefits........................................10
3.04 - Amount of Annuity Benefits.................................10
3.05 - Payment of Annuity Benefits................................10
GENERAL PROVISIONS
Section 4.01 - Contract...................................................12
4.02 - Statutory Compliance.......................................13
4.03 - Nonforfeitability,
Nontransferability, and Assignments........................13
4.04 - Beneficiary................................................13
4.05 - Disqualification...........................................13
4.06 - Future Contributions.......................................13
4.07 - Deferment..................................................13
4.08 - Annual Notice..............................................13
4.09 - Age and Sex................................................13
No. 92 IRAB Page 2
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PART I - DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means the person who owns this
Contract as shown on page 3 and who exercises all rights under the terms of this
Contract.
SECTION 1.02 ANNUITY. The term "Annuity" means an individual retirement annuity
contract meeting the requirements of Section 408(b) of the Code.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account, pursuant to Sections 2.02 and
2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.15, 1.16, 3.01, and 3.02) refer to monthly payments to be
made under an Annuity Benefit. You may wish to have your Annuity Benefit paid at
other intervals, such as quarterly, semiannually, or annually, instead of
monthly. You may elect this at the time you elect the Annuity Benefit form
described in Section 3.03; in that event, all references in this Contract to
monthly payments will be deemed to mean payments at the frequency you elect,
subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less any applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the excess of (i) the Annuity Account Value over (ii) the Free Corridor
Amount defined in Section 2.09; and
(b) is the excess, if any, of (i) 8% of the total Contributions made during the
Current Contract Year and the nine preceding Contract Years over (ii) the
cumulative total of any prior charges for partial withdrawals made pursuant
to Section 2.08.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
A withdrawal charge will not apply, which means the Cash Value will equal the
Annuity Account Value upon any of the following occurrences:
(i) your attainment of age 59 and 6 months and your completion of at least
five Contract Years, or
(ii) a request is made for a refund of a contribution in excess of amounts
allowed to be contributed under Section 408 of the Code within one month
of the date on which the contribution is made, or
(iii) you die and a distribution is made to the beneficiary, or
(iv) your attainment of age 55, your completion of at least five Contract Years
and you use the amount withdrawn to purchase from us an Eligible Annuity
Certain, or
(v) your completion of at least three Contract Years and you use the amount
withdrawn to purchase from us a Period Certain Annuity of at least 10
years, or
(vi) your Annuity Account Value is applied to the election of a Life Annuity
Form or Joint and Survivor Life Annuity Form distribution option, or
(vii) your completion of at least twelve Contract Years.
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract, which is
Intended to qualify as an individual retirement annuity contract under Section
408(b) of the Code. This Contract is established for the exclusive benefit of
you or your beneficiaries.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both an application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made in cash
or by check to us with respect to this Contract. We are under no obligation to
accept any Contribution less than $20.00.
No. 92 IRAB Page 4
<PAGE>
Except in the case of a rollover contribution (as permitted by Sections
402(a)(5), 402(a)(6), 402(a)(7), 403(a)(4), 402(b)(8), or 408(d)(3) of the
Code), no Contributions will be accepted unless they are in cash, and the total
of such Contributions shall not exceed $2,000 for any taxable year. In addition,
amounts directly transferred to this Contract, from an individual retirement
account, or annuity contract meeting the requirements of Section 408 of the Code
are also not subject to the $2,000 limit on contributions.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following Divisions described in this
Contract:
(a) the Guaranteed Interest Division, and
(b) the Investment Divisions of the Separate Account.
SECTION 1.13 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us, which extends beyond
your attainment of age 59 and 6 months and does not permit any prepayment of the
unpaid principal (that is no withdrawal or single sum payment) prior to your
attainment of age 59 and 6 months.
SECTION 1.14 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on page 3 of
this Contract. Section 2.03 describes the determination of the rate to apply
thereafter.
SECTION 1.15 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.16 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.17 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means, (i) if you have a living spouse at your Retirement Date,
the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form
with your spouse as the contingent annuitant (with 100% of the monthly payment
amount continued to your spouse), and (ii) if you do not have a living spouse at
the Retirement Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.18 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
your payments as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 1.19 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P O Box 2996, New York, New York 10116-2996, or such
other location as we shall designate by advance written notice to you.
SECTION 1.20 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain your retirement age as shown on page 3 of this Contract. Before the
Retirement Date you may elect to change the Retirement Date to another
Retirement Date, which may be any date after the filing of the election (other
than the 29th, 30th, or 31st day of any month). No Retirement Date shall be
earlier than the date you attain age 59 and 6 months nor shall be later than the
first day of April following the calendar year in which you attain age 70 and
6 months. Any election for such change must be made in writing by you and shall
not take effect until received by us at our Processing Office.
SECTION 1.21 SEPARATE ACCOUNT. The term "Separate Account" means our Separate
Account A, which is organized as a unit investment trust (a type of investment
company). We established the Separate Account and it is maintained in accordance
with the laws of New York State. Realized and unrealized gains and losses from
the assets of the Separate Account are credited to or charged against it without
regard to our other income, gains or losses. Assets are put in the Separate
Account to support this Contract and other variable annuity contracts. Assets
may be put in the Separate Account for other purposes, but not to support
contracts or policies other than variable annuities and variable life insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these Contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
the Trust. We reserve the right to change the designated Trust or to add
designated trusts or investment companies. The Investment Divisions available
are the Stock Division, the Money Market Division, the Balanced Division and the
Aggressive Stock Division. The Guaranteed Interest Division is not part of the
Separate Account, but rather is an asset of our General Account.
No. 92 IRAB Page 5
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We will value the assets of each Investment Division on each business day. A
business day is any day on which Equitable is open, the New York Stock Exchange
is open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments it is
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such a committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any other
form;
(v) add Investment Divisions (or subdivisions of Investment Divisions) to, or
remove Investment Divisions (or subdivisions of Investment Divisions) from
the Separate Account (the term "Investment Division" in this Contract
shall then refer to any other Investment Division in which the assets of a
Class of Contracts to which this Contract belongs, were placed);
(vi) combine any two or more Investment Divisions (or subdivisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for any applicable
tax charges) at a rate not to exceed 1.49% per year for each of the Stock, Money
Market and Balanced Divisions, and 1.34% per year, for the Aggressive Stock
Division, for financial accounting, death benefits, mortality risk, expenses and
expense risks. The charge shall be made in accordance with Subsection (c) of the
Net Investment Factor provision in Section 1.22. The relative proportion of
these charges may be modified. The daily charge, plus the investment advisory
fee charges and direct operating expense charges of the Trust shall not exceed a
total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract. The maximum rate may not be altered
without your approval.
SECTION 1.22 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment Division
for the Valuation Period. For this purpose, we use the share value reported
to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
taking into account any amounts allocated or withdrawn for that Valuation
Period).
(c) is the daily asset charge for the expenses of this Contract, times the
number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where your Contributions are invested and which is used in
determining the amount you have in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first Contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base Rates of Net Investment Return of 5% and 3.5% a year, respectively. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
No. 92 IRAB Page 6
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AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods ending in such month.
SECTION 1.23 TRANSACTION DATE. The term "Transaction Date" means the business
day we receive a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone as
described in Section 2.05, the term "Transaction Date" means the business day
the telephone transaction is received.
SECTION 1.24 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
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PART II - ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. Contributions under this Contract are not fixed and
may be made at any time and in any amount subject to the limits described in
Section 1.11 of this Contract. (If you make a Contribution which qualifies as a
qualified plan rollover within the meaning of Section 402(a)(5) or 403(b)(8) of
the Code, and such amount will be commingled with other Contributions under this
Contract, such rollover contributions may not be rolled over to a qualified plan
at a future date, unless otherwise provided by the Code).
Each Contribution received by us will, before its allocation under this
Contract, be reduced by the amount of any applicable tax charge, as determined
by us.
Contributions will be allocated to the Division in accordance with the
instructions received on your application, unless later changed.
Except in the case of a rollover Contribution (as permitted by 402(a)(5),
402(a)(6), 402(a)(7), 403(a)(4), 403(b)(8), or 408(d)(3) of the Code), no
Contributions will be accepted unless they are in cash, and the total of such
Contributions shall not exceed $2,000 for any taxable year. Amounts transferred
to this Contract from an individual retirement account or annuity contract
meeting the requirements of Section 408 of the Code are not subject to the
$2,000 limit on contributions.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to or withdrawn or transferred from an Investment
Division, you will be credited or charged, as the case may be, with the number
of Accumulation Units determined by dividing said amount by the Accumulation
Unit Value for the appropriate Investment Division for the Valuation Period
which includes that date. The number of units you have in an Investment Division
on any date is equal to (i) the sum of any Accumulation Units that have been
allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation Units
that have been withdrawn pursuant to Sections 2.07 or 2.08 or transferred from
the Investment Division pursuant to Section 2.05. The amount in an Investment
Division on any date is equal to the product of (i) the number of Accumulation
Units in the Investment Division on that date and (ii) the Accumulation Unit
Value for the Investment Division for the Valuation Period which includes that
date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) your election and commencement of Annuity Benefits pursuant to
Section 3.03, (ii) receipt of due proof of your death, or (iii) Termination of
this Contract, pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Section 2.07, 2.08, or 2.10 or
transferred from the Guaranteed Interest Division, pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date,
pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts, we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under this Contract terminates
on the earliest of (i) your election and commencement of annuity benefits
pursuant to Section 3.03, (ii) receipt of due proof of your death, and (iii)
Termination of this Contract, pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date.
No. 92 IRAB Page 7
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Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon Termination of this Contract pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.11.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request, or
through the use of a touch tone telephone, transfer all or part of the amount
you have in a Division to one or more of the Divisions as follows: (1) amounts
in the Guaranteed Interest Division, Stock Division, Balanced Division and
Aggressive Stock Division may be transferred among such Divisions; (2) amounts
in the Money Market Division may be transferred to other Divisions. Written
authorization for touch tone telephone initiated transfers is only required when
authorization for telephone transfers is requested. Upon advance written notice
to you, we reserve the right to discontinue the acceptance of transfer requests
through the use of a touch tone telephone. All transfers will be effective on
the Transaction Date and will be subject to our rules in effect at the time of
transfer. With respect to the Investment Division, the transfer will be made at
the Accumulation Unit Value next computed after the Transaction Date. No
transfers are permitted to the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. You may elect by written notice to
terminate this Contract. We will determine the Cash Value as of the Transaction
Date we receive your written election.
If this Contract is terminated, surrendered or exchanged prior to your
Retirement Date, any applicable tax charges we have paid may be deducted. If we
have previously deducted charges for applicable taxes from Contributions
pursuant to Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
your Contract.
The payment of such Cash Value may be deferred by us in accordance with the
provisions of Section 4.07.
We reserve the right to pay the Annuity Account Value under the Contract and
terminate this Contract. This right may be exercised if (i) no Contributions are
made on your behalf during the last three completed Contract Years and the
Annuity Account Value is less than $500, or (ii) a partial withdrawal that would
result in your Annuity Account Value falling below $500. We also reserve the
right to terminate this Contract if no Contributions have been made within 120
days of the Contract Date shown on page 3 of this Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount you have in the Divisions and the Annuity Account Value shall be
zero. We will be released from any and all liability for payments with respect
to the Contributions from which the Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. You may elect, by written notice to us, to
make a partial withdrawal from the Divisions.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to the person entitled to such payment as
designated in writing by you. The amount paid plus any withdrawal charge
applicable pursuant to Section 2.08 will be withdrawn from the amounts you have
in the Divisions. Unless we are instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise you and reserve the right to pay the
Annuity Account Value to you, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.09 or (b) the Cash Value is equal to the Annuity
Account Value, pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount, in proportion to the amount you have
in them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior partial withdrawal charges
made pursuant to this Section.
No. 92 IRAB Page 8
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However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to your contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means, if you
have completed three Contract Years or attained age 59 and 6 months, an amount
equal to the excess, if any, of (i) 10% of the sum of the Annuity Account Value
on the Transaction Date over (ii) cumulative prior withdrawals made pursuant to
Section 2.07 in the current Contract Year. If you have not completed three
Contract Years or attained age 59 and 6 months, the Free Corridor Amount is
zero.
SECTION 2.10 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $10,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value, including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts that you have in
the Divisions.
If the Annuity Account Value is less than $10,000, on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03,
or (b) the date of Termination of this Contract pursuant to Section 2.06 or
2.11, we will prorate the Annual Administrative Charge applicable to the
completed portion of the Current Contract Year and withdraw such amount in lieu
of the full Annual Administrative Charge described in this Section for the
applicable part of that Contract Year.
If the Annuity Account Value is $10,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
SECTION 2.11 DEATH BENEFIT. Upon receipt of due proof of your death, we will pay
to the beneficiary designated by you to receive such payment, pursuant to
Section 4.04 of this Contract, the amount of death benefit payable. The amount
of the death benefit is equal to the greater of (i) the Annuity Account Value
and (ii) the minimum death benefit. Such minimum death benefit is the sum of all
Contributions made pursuant to Section 2.01 (before reduction for any applicable
tax charge) less any withdrawals made pursuant to Section 2.07. Any such
withdrawal will reduce the minimum death benefit (as adjusted by any previous
such withdrawal) by an amount which is in the same proportion as the amount that
was withdrawn is to the Annuity Account Value. If, in accordance with the
provisions of Section 2.01, the Cash Value of another annuity contract issued by
us, or one of our affiliated or subsidiary life insurance companies, which
provides for a death benefit before retirement equal to the greater of the
contract Cash Value or an alternate amount based on premiums paid or
Contributions made under the annuity contract is transferred to this Contract,
such Cash Value or alternative amount as of the date of transfer will be
included in the "sum of all Contributions" in lieu of the amount of Cash Value
transferred for purposes of the death benefit under this Contract.
We will pay the death benefit to your beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also, in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to your
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value will be zero. We will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Account Value arose.
- --------------------------------------------------------------------------------
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under this Contract with respect to a payee is the amount provided pursuant to
Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of net
investment return referred to in Section 1.22 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.21, not to exceed the maximum rate of 1.75% after
No. 92 IRAB Page 9
<PAGE>
any deductions to provide for any applicable tax charge. These charges include a
daily charge for financial accounting, death benefits, mortality risk, expenses
and expense risk, plus the investment advisory fee charges and direct operating
expense charges of the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under this Contract with respect to a payee is the monthly
amount provided with respect to a payee pursuant to the fifth paragraph of
Section 3.04. The amount of the fourth and each subsequent payment under a
Variable Annuity Benefit will be equal to the number of Annuity Units with
respect to such benefit, multiplied by the Average Annuity Unit Value for the
second calendar month immediately preceding the due date of the payment. The
number of Annuity Units with respect to a benefit is the number determined by
dividing the amount of the first monthly payment under such benefit by the
Annuity Unit Value for the Valuation Period which includes the due date of the
first monthly payment. (As described in Section 3.05, we will notify the payee
how each Variable Annuity payment is determined).
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of your
Retirement Date, provided you are then living, the Annuity Account Value shall
be applied to provide the Normal Form of Annuity Benefit, unless you elect (i)
to receive the Cash Value of this Contract in a single sum or (ii) to apply the
Annuity Account Value or Cash Value, whichever is applicable pursuant to the
first paragraph of Section 3.04, to provide an Annuity Benefit on any other form
offered by us, or one of our affiliated or subsidiary life insurance companies,
as elected by you, or (iii) to take partial withdrawals in amounts and at times
as required by the Code, pursuant to Sections 2.07 and 3.05, subject to our
rules then in effect and any other applicable requirements under the Code.
We will provide notice and election forms to you not more than six months before
your Retirement Date.
If you elect to terminate this Contract, prior to the Retirement Date, pursuant
to Section 2.06, an election may be made to receive an Annuity Benefit in lieu
of the Cash Value.
We will have the right to require you to furnish pertinent information to
provide an Annuity Benefit and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form, issued by us or one of our affiliated or subsidiary
life insurance companies.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect, pursuant to the first or
third paragraph of Section 3.03, to receive an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the annuity form elected involves life contingencies or
(ii) the Cash Value, if the Annuity Form elected does not involve life
contingencies.
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charge from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to your Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below, or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your contract will be governed by our
supplementary contract then in effect.
If an amount is applied to provide an Annuity Benefit, the amount to be applied
will, in addition to any tax charge reduction, be reduced by an administrative
charge. The amount of such charge will be determined from time to time in
accordance with our general practices applicable or a uniform basis to all
contracts of the same type as this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero. The
Tables of Guaranteed Annuity Payments set forth the minimum amount of monthly
income that $1,000 of Annuity Value will provide under this Contract, as
indicated, on the Joint and Survivor Life Annuity Form (with 100% of the amount
of your payment continued to your spouse). The amounts of income provided under
the Fixed Annuity Benefit payable on the Life Annuity Form and Joint and
Survivor Life Annuity Form are based on 3.5% interest and the 1983 Individual
Annuity Table "a". The amount of income initially provided under the Variable
Annuity Benefit payable on the Life Annuity Form and the Joint and Survivor Life
Annuity Form are based on the 1983 Individual Annuity Table "a" and an Assumed
Base Rate of Net Investment Income Return of 3.5% or 5%, whichever applies
pursuant to Section 1.22.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us based on 3.5% interest and the 1983 Individual Annuity Table
"a" if such annuity form provides for a Fixed Annuity Benefit, and on the same
such Table and an Assumed Base Rate of Net Investment Income Return of 3.5% or
5%, whichever applies pursuant to Section 1.22 if such annuity form provides for
a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Your entire interest in this Contract
will be distributed or begin to be distributed, in accordance with Section
401(a)(9) of the Code and the applicable Treasury Regulations thereunder no
later than the first day of April following the calendar year in which you
attain age 70 and 6 months ("Required Beginning Date"). Your entire interest may
be distributed, as you elect, over (a) your life, or the lives of you and your
designated beneficiary, or (b) a period certain not extending beyond your life
expectancy, or the joint and last survivor expectancy of you and your designated
beneficiary. Distributions must be made in periodic payments at intervals of no
longer than one year. In
No. 92 IRAB Page 10
<PAGE>
addition, payments must be either non-increasing or they may increase only as
provided in Q & A F-3 of Section 1.401(a)(9)-1 of the proposed Treasury
Regulations, or any successor Regulation thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental death
benefit requirements of Section 401(a)(9)(G) of the Code, and applicable
Treasury Regulations, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless you otherwise elect prior to the time distributions are required to
begin, those life expectancies shall be recalculated annually. Such election
shall be irrevocable and shall apply to all subsequent years. The life
expectancy of a non-spouse beneficiary may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such beneficiary during
the calendar year in which you attain age 70 and 6 months, and payments for
subsequent years shall be calculated based on such life expectancy reduced by
one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If you die after distribution of your interest in this Contract has begun, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to your death.
If you die before distribution of your interest begins, distribution of your
entire interest shall be completed no later than December 31 of the calendar
year containing the fifth anniversary of your death, except to the extent that
an election is made to receive death benefit distributions in accordance with
(1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then your entire
interest may be distributed over the life of, or over a period certain not
greater than the life expectancy of, the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar year
immediately following the calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date that
distributions are required to begin in accordance with (1) above shall not
be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of your death or (B) December 31 of
the calendar year in which you would have attained age 70 and 6 months.
For purposes of determining the "period certain" referred to in the immediately
preceding paragraph, life expectancy is computed by use of the expected return
multiples in Tables V and VI of Treasury Regulation Section 1.72-9. For purposes
of distributions beginning after your death, unless otherwise elected by the
surviving spouse by the time distributions are required to begin, life
expectancies shall be recalculated annually. Such election shall be irrevocable
by the surviving spouse and shall apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies shall be calculated using
the attained age of such beneficiary during the calendar year in which
distributions are required to begin, pursuant to this Section, and payments for
any subsequent calendar year shall be calculated based on life expectancy
reduced by one for each calendar year which has elapsed since the calendar year
life expectancy was first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date, distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under this Contract was based on information that is
subsequently found to be incorrect, your benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by us will be charged against and
underpayments will be added to any payments thereafter falling due under this
Contract with respect to the payee, affecting as many such payments as are
necessary to correct the overpayment or underpayment. Our liability with respect
to a payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under this
Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under this Contract is physically or mentally incompetent to receive
such payment or is a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments (in the case of a minor, at a rate not exceeding $200 a month) to
such other person or institution, and will thereupon be fully discharged from
a11 liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, the payee thereunder
may elect, without the concurrence of any other person, to receive the commuted
value of any remaining payments, provided no person upon whose life the income
depends is surviving.
No. 92 IRAB Page 11
<PAGE>
Pursuant to Section 3.03, upon your election of an annuity form providing
payments for a period certain, you may designate (with the right to change such
designation) a payee or payees to receive any payments that may become due after
the death of the person or persons upon whose life or lives the income may
depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's estate in
accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments. The commuted value of any such remaining payments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
We will, with respect to each payment under a Variable Annuity Benefit, notify
the payee of the number of Annuity Units and the Average Annuity Unit Value used
in determining the amount of each variable payment. Such notice will be mailed
with each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT
AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.51 4.56 4.61 4.66 4.71 4.76 4.81 4.85 4.90 4.94 4.99
61 4.59 4.65 4.70 4.75 4.81 4.86 4.91 4.96 5.01 5.06
62 4.69 4.74 4.80 4.85 4.91 4.97 5.02 5.07 5.13
63 4.78 4.84 4.90 4.96 5.02 5.08 5.14 5.20
64 4.88 4.95 5.01 5.08 5.14 5.20 5.27
65 4.99 5.06 5.13 5.20 5.27 5.34
66 5.11 5.18 5.26 5.33 5.41
67 5.24 5.31 5.39 5.47
68 5.37 5.45 5.54
69 5.51 5.60
70 5.67
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE
ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Value)
- --------------------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED BASE
RATE OF NET INVESTMENT RETURN IS:
3.5% 5.0%
Age Males Females Males Females
- --------------------------------------------------------------------------------
60 5.57 5.00 6.46 5.89
61 5.71 5.11 6.60 6.00
62 5.86 5.23 6.75 6.11
63 6.03 5.36 6.92 6.24
64 6.20 5.49 7.09 6.37
65 6.39 5.64 7.28 6.51
66 6.58 5.79 7.47 6.66
67 6.80 5.96 7.69 6.83
68 7.02 6.13 7.92 7.00
69 7.27 6.32 8.16 7.19
70 7.53 6.53 8.42 7.40
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire agreement between
the parties and the provisions of this Contract alone govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified nor may any of our rights or requirements be
waived, except in writing and by an authorized officer of Equitable. This
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person.
No. 92 IRAB Page 12
<PAGE>
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend this Contract
without the consent of any other person in order to comply with applicable laws
and regulations. Such rights shall include, but not be limited to, the right to
conform this Contract to reflect changes in the Code, applicable Treasury
Regulations, or published rulings of the Internal Revenue Service so that this
Contract will continue to be an Annuity.
SECTION 4.03 NONFORFEITABILITY, NONTRANSFERABILITY, AND ASSIGNMENTS. Your entire
interest under the Contract is nonforfeitable. This Contract is nontransferable
except by surrender to us. Your interest under this Contract may not be sold,
assigned, discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under this Contract may be assigned, commuted, or encumbered
by the payee, unless otherwise permitted as described herein, and, to the extent
permitted by law, no such amount will in any way be subject to any claim against
such payee.
SECTION 4.04 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any death benefit
payable pursuant to Section 2.11. You may change such designation from time to
time during your lifetime and while this Contract is in force. Any such
designation or change will be made by written notice in a form satisfactory to
us. A change will, upon receipt at the Processing Office, take effect as of the
time the written notice was signed, whether or not you are living on the
Transaction Date, but without further liability as to any payment or other
settlement made by us before receipt of such change.
Unless otherwise specified in the designation, if you have designated two or
more persons as beneficiary, the beneficiary will be the designated person or
persons who survive you, and if more than one survive, they will share equally.
Any part of a death benefit payable pursuant to Section 2.11 for which there is
no designated beneficiary living at your death will be payable in a single sum
to your children who survive you, in equal shares, or should none survive, then
to your estate.
If you elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity elected by you, with respect to the beneficiary, subject to our
rules then in effect. If at your death there is no election in effect to apply
the single sum death benefit to provide an Annuity Benefit, the beneficiary may
make such an election. Any such election must meet the minimum distribution
requirements under the Code, as described in Section 3.05.
SECTION 4.05 DISQUALIFICATION. In the event that this Contract fails to qualify
as an Annuity, we will have the right, upon receiving notice of such fact, prior
to the Retirement Date, to terminate this Contract and pay to you the Annuity
Account Value less a deduction for the appropriate part attributable to you of
any Federal income tax payable which would not have been payable if you had an
Annuity.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to you, we reserve the
right, at our sole discretion, to limit Contributions under this Contract, as
required by law or if such Contributions are in excess of the maximum amounts as
permitted under the Code.
SECTION 4.07 DEFERMENT. Application of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payment in order to protect
persons with interests in the Investment Divisions. We can defer payment of any
portion of your Annuity Account Value in the Guaranteed Interest Division for up
to six months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year we will furnish you
with a notice showing the following:
(1) the amount you have in the Guaranteed Interest Division,
(2) the total number of Accumulation Units you have in the Stock Division,
Balanced Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Values,
(4) the amount you have in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division,
(5) the Annuity Account Value,
(6) the Cash Value, and
(7) the amount of death benefit payable with respect to you.
We will also furnish annual calendar year reports concerning the status of the
Annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.09 AGE AND SEX. If your age or sex has been misstated, any benefits
will be those which would have been purchased at the correct age or sex. Any
overpayments or underpayments made by us will be charged or credited with
interest at the rate of 6% per year, and such interest will be deducted from or
added to benefits falling due thereafter.
No. 92 IRAB Page 13
<PAGE>
Owner: [EQUITABLE LOGO]
Annuitant:
Contract Number:
Issue Date:
Contract Date:
Retirement Date:
- --------------------------------------------------------------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P O Box 2996,
New York, New York 10116-2996
AGREES
o TO ALLOCATE the Contributions made to this Contract after deduction of
any applicable tax charge, to the Stock Division, Balanced Division,
Aggressive Stock Division, Money Market Division of the Separate Account
(referred to in this Contract as the Investment Divisions of the Separate
Account) or to the Guaranteed Interest Division, in accordance with
Sections 2.02, 2.03 and 2.04 or in part to any one, as directed by you.
o TO APPLY the Annuity Account Value at the Retirement Date to provide an
Annuity Benefit or a Cash Value benefit if the Annuitant is then living,
and
o TO PROVIDE you with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract, "we", "our" and "us" mean The
Equitable Life Assurance Society of the United States. "You" and "your" mean the
Owner, at the time a right is exercised by the Owner.
TEN DAYS TO EXAMINE CONTRACT - You may cancel this Contract by returning it to
us within ten days after receipt of it. Upon such cancellation, we will refund
any Contribution made to us under this Contract.
/s/Molly K. Heines /s/Joseph J. Melone
Molly K. Heines Joseph J. Melone
Vice President and Secretary Chairman of the Board
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.23 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92NQCA
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
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TABLE OF CONTENTS
PART I - DEFINITIONS Page
Section 1.01 - Annuitant....................................................4
1.02 - Annuity Account Value........................................4
1.03 - Annuity Benefit..............................................4
1.04 - Cash Value...................................................4
1.05 - Class of Contracts...........................................4
1.06 - Code.........................................................4
1.07 - Contract.....................................................4
1.08 - Contract Date................................................4
1.09 - Contract Year................................................4
1.10 - Contribution.................................................4
1.11 - Deposit Option Benefits......................................4
1.12 - Divisions....................................................4
1.13 - Free Corridor Amount.........................................4
1.14 - Guaranteed Interest Rate.....................................5
1.15 - Joint and Survivor Life Annuity Form.........................5
1.16 - Life Annuity Form............................................5
1.17 - Normal Form..................................................5
1.18 - Owner........................................................5
1.19 - Period Certain Annuity.......................................5
1.20 - Processing Office............................................5
1.21 - Retirement Date..............................................5
1.22 - Separate Account.............................................5
1.23 - Separate Account Definitions.................................6
1.24 - Transaction Date.............................................7
1.25 - Trust........................................................7
PART II - ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions................................................7
2.02 - Separate Account Investment Divisions........................7
2.03 - Guaranteed Interest Division.................................8
2.04 - Allocation to Divisions......................................8
2.05 - Transfers Among Divisions....................................8
2.06 - Termination of this Contract.................................8
2.07 - Partial Withdrawals..........................................9
2.08 - Charges for Partial Withdrawals..............................9
2.09 - Annual Administrative Charge................................10
2.10 - Death Benefit...............................................10
2.11 - Owner Death Benefit Distribution Rules.....................10
2.12 - Contribution Limit..........................................11
PART III - ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit.......................................11
3.02 - Variable Annuity Benefit....................................11
3.03 - Election and Commencement of Annuity Benefits...............11
3.04 - Amount of Annuity Benefits..................................12
3.05 - Payment of Annuity Benefits.................................12
PART IV - GENERAL PROVISIONS
Section 4.01 - Contract....................................................14
4.02 - Statutory Compliance........................................14
4.03 - Beneficiary.................................................14
4.04 - Future Contributions........................................14
4.05 - Deferment...................................................14
4.06 - Annual Notice...............................................14
4.07 - Assignments.................................................15
4.08 - Age and Sex.................................................15
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PART I - DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means the individual shown on page
3 of this Contract.
SECTION 1.02 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts in the Guaranteed Interest Division and the Investment
Divisions of the Separate Account pursuant to Sections 2.02 and 2.03.
SECTION 1.03 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract. Various Sections of this
Contract (Sections 1.15, 1.16, 3.01 and 3.02) refer to monthly payments to be
made under an Annuity Benefit. An election may be to have your Annuity Benefit
paid at other intervals, such as quarterly, semi-annually, or annually, instead
of monthly. This election may be made at the time the Annuity Benefit form as
described in Section 3.03 is elected: in that event, all references in this
Contract to monthly payments will be deemed to mean payments at the frequency
you elected, subject to our rule at the time of election.
SECTION 1.04 CASH VALUE. The term "Cash Value" means an amount equal to the
greater of (i) or (ii) below:
(i) the Annuity Account Value less 6% of the Contributions made during the
current and five prior Contract Years, which had not been previously
withdrawn pursuant to Sections 2.07 and 2.08.
(ii) the sum of (a) the Free Corridor Amount as defined in Section 1.13 and
(b) 94% of the Annuity Account Value less the Free Corridor Amount.
However, if the Annuitant was age 59 or older on the Contract Date and it is
Contract Year 5, item (ii) (b) above will be 95% of the Annuity Account Value
less the Free Corridor Amount. If it is Contract Year 6, item (ii) (b) above
will be 96% of the Annuity Account Value less the Free Corridor Amount.
SECTION 1.05 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
contracts with a Contract Date in the same calendar year.
SECTION 1.06 CODE. The term "Code" means the Internal Revenue Code of 1986, as
now or hereafter amended, or any corresponding provisions of prior or subsequent
United States revenue laws.
SECTION 1.07 CONTRACT. The term "Contract" means this Contract.
SECTION 1.08 CONTRACT DATE. The term "Contract Date" means the Date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.09 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereof,
unless otherwise agreed to in writing by us.
SECTION 1.10 CONTRIBUTION. The term "Contribution" means a payment made to us
for the Annuitant with respect to an Annuity purchased under this Contract. We
are under no obligation to accept an Initial Contribution of less than $1,000.00
or, for Payroll Deductions and any Subsequent Contributions, a Contribution of
less than $50.00.
SECTION 1.11 DEPOSIT OPTION BENEFIT. The term "Deposit Option Benefit" means a
benefit derived from amounts on deposit for a period approved by us, subject to
our rules then in effect and any other applicable requirements under the Code.
Interest payments will be made at the end of each one, three, six or twelve
month interval, as elected by you, and provided that the amount of each payment
made at the end of the designated interval is at least $20. We reserve the right
to change the payment frequency for payments of less than $20.
SECTION 1.12 DIVISION. The term "Division" or "Divisions" mean, singly or
severally as the case may be, the following divisions described in this
Contract:
(i) the Guaranteed Interest Division, and
(ii) the Investment Divisions of the Separate Account.
SECTION 1.13 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means an
amount equal to the excess, if any, of (i) 10% of the Annuity Account Value on
the Transaction Date over (ii) cumulative prior withdrawals made pursuant to
Section 2.07 or 2.08 in the current Contract Year.
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SECTION 1.14 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on Page 3 of
this Contract. Section 2.03 describes the determination of the rate to apply
thereafter.
SECTION 1.15 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected. The payments commence on the date as of which the Joint and Survivor
Life Annuity Form is purchased and terminate with the last payment due before
the death of the survivor.
SECTION 1.16 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.17 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means the Fixed Annuity Benefit payable on the Life Annuity Form,
as defined in Sections 3.01 and 1.16, with 10 years of payments guaranteed (10
years certain period). In addition, if the Annuitant dies before the certain
period has ended, payments will continue to the beneficiary designated to
receive such payments for the balance of the certain period.
SECTION 1.18 OWNER. The Owner of this Contract is the person shown as "Owner" on
page 3 unless otherwise stated in the application, or later changed.
Notwithstanding any provisions in this Contract to the contrary, only the Owner
can exercise the rights under this Contract.
While the Annuitant is living, the Owner of this Contract may change the Owner
by written notice satisfactory to us. The change will take effect on the date
the Owner signs the notice, except it will not apply to any payment we make or
other actions we take before we receive the notice.
SECTION 1.19 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
your payments as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 1.20 PROCESSING OFFICE. The term "Processing Office" means Equitable
Individual Annuity Center, P O Box 2996, New York, New York 10116-2996, or such
other location as we shall designate upon advance written notice to you.
SECTION 1.21 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Annuitant attains the retirement age shown on Page 3 of this Contract.
Before the Retirement Date the Annuitant may elect to change the Retirement Date
to another Retirement Date, which may be any date after the filing of the
election (other than the 29th, 30th or 31st day of any month). Any election for
such change must be made in writing by you and shall not take effect until
received by us at our Processing Office.
SECTION 1.22 SEPARATE ACCOUNT. The term "Separate Account" means Separate
Account A which is organized as a unit investment trust, a type of investment
company. We established the Separate Account and it is maintained in accordance
with the laws of New York State. Realized and unrealized gains and losses from
the assets of the Separate Account are credited to or charged against it without
regard to our other income, gains or losses. Assets are put in the Separate
Account to support this Contract and other variable annuity contracts and
certificates. Assets may be put in the Separate Account for other purposes, but
not to support contracts or policies other than variable annuities and variable
life insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions" Each Investment Division
may invest its assets in a separate class (or series) of shares of a designated
Trust where each class (or series) represents a separate portfolio in the Trust
or investment company. We reserve the right to change the Trust or to add a
Trust. The Investment Divisions are the Stock Division, the Money Market
Division, the Balanced Division and the Aggressive Stock Division. The
Guaranteed Interest Division is not a part of the Separate Account A but rather
is an asset of our General Account.
No. 92NQCA Page 5
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We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under
the Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any
other form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to,
or remove Investment Divisions (or sub-divisions of Investment Divisions)
from the Separate Account (the term "Investment Division" in this
Contract shall then refer to any other Investment Division in which the
assets, of a Class of Contracts to which this Contract belongs, were
placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for taxes) at a rate
not to exceed 1.49% per year for each of the Stock, Money Market and Balanced
Divisions, and 1.34% per year for the Aggressive Stock Division, for financial
accounting, death benefits, mortality risk, expenses and expense risk. The
charge shall be made in accordance with (c) of the Net Investment Factor
provision in Section 1.23. The relative proportion of these charges may be
modified. This daily charge, plus the investment advisory fee charges and direct
operating expense charges of the Trust, shall not in the aggregate exceed a
total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract.
SECTION 1.23 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Is each business day together with any consecutive preceding
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share
value reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period
(after any amounts allocated to or withdrawn for that Valuation Period).
(c) is the daily Separate Account charge for the expenses of
this Contract, times the number of calendar days in the
Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in the
Investment Division where Contributions are invested and are used in determining
the amount in an Investment Division.
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ACCUMULATION UNIT VALUE: The "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for that Investment Division for such Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base rates of 5% and 3.5% a year, respectively. The Annuity Unit Value for any
subsequent Valuation Period is the Annuity Unit Value for the immediately
preceding Valuation Period multiplied by the Adjusted Net Investment Factor for
such subsequent Valuation Period. The Adjusted Net Investment Factor for a
Valuation Period is the Net Investment Factor for such period reduced for each
calendar day in such subsequent Valuation Period by the Net Investment Factor
times (i) .00013366, if the Assumed Base Rate of Net Investment Return is 5%,
and (ii) .00009425, if the Assumed Base Rate of Net Investment Return is 3.5%.
The Assumed Base Rate of Net Investment Return shall be 5%, except in states
where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: With respect to this Contract, the Average Annuity
Unit Value for a calendar month is equal to the average of the Annuity Unit
Values for all Valuation Periods ending in such month.
SECTION 1.24 TRANSACTION DATE. The Transaction Date is the business day we
receive a Contribution or a written contract transaction request providing the
information we need at the Processing Office. In the case of a transfer request
initiated through the use of a touch tone telephone as described in Section
2.05, the Transaction Date is the business day the telephone transaction is
received.
SECTION 1.25 TRUST. The term "Trust" means the designated trust or investment
company in which assets of the Separate Account are invested.
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PART II - ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. Contributions made by you can be classified, as
described under subsections A and B below, as specified on the application for
this Contract. If Contributions are made under more than one classification,
separate Contracts will be issued for each classification.
A. Post-August 13, 1982 Classification
All Contributions of new funds as well as any Contributions resulting from a
transfer to this Contract from a deferred annuity contract, other than those
described in subsection B below will be treated as within this classification.
B. Pre-August 14, 1982 Classification
Amounts transferred to this Contract through a tax free exchange of a deferred
annuity contract, where such transferred amount represents amounts invested in
or credited to investments in annuity contracts prior to August 14, 1982 will be
treated as within this classification.
Each Contribution received by us will, before its allocation under this
Contract, be reduced by the amount of any applicable tax charge, as determined
by us. Contributions will be allocated to the Division in accordance with
instructions received in your application, unless later changed.
If the Annuitant was age 57 or younger on the Contract Date, no additional
Contributions are permitted under the Contract after completion of the Contract
Year in which the Annuitant attains age 59. If the Annuitant was age 58 or older
on the Contract Date, no additional Contributions are permitted under the
Contract after the first anniversary of the Contract Date.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to or withdrawn or transferred from an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing said amount by
No. 92NQCA Page 7
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the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units in an Investment
Division on any date is equal to (i) the sum of any Accumulation Units that have
been allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation
Units that have been withdrawn pursuant to Sections 2.07 or 2.09 or transferred
from the Investment Division pursuant to Section 2.05. The amount in an
Investment Division on any date is equal to the product of (i) the number of
Accumulation Units in the Investment Division on that date and (ii) the
Accumulation Unit Value for the Investment Division for the Valuation Period
which includes that date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) the election and commencement of Annuity Benefits pursuant to
Section 3.03, (ii) receipt of due proof of the Annuitant's death, or (iii)
termination of this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Section 2.07 or 2.09 or transferred
from the Guaranteed Interest Division, pursuant to Section 2.05. Interest is
allocated to the Guaranteed Interest Division on a Transaction Date pursuant to
Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division terminates on the earliest of
(i) the Retirement Date, (ii) receipt of due proof of the Annuitant's death, or
(iii) termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01, is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction. Allocation percentages must be in whole
numbers and the sum must equal 100%. The allocation is made as of the
Transaction Date on which we have received both such Contribution and such
direction. Contributions made to an investment Division purchase Accumulation
Units in that Investment Division, using the Accumulation Unit Value next
computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) at the time of application of amounts in the Guaranteed Interest
Division to provide forms of benefits offered by us pursuant to Section 3.03,
(vi) upon termination of participation pursuant to Section 2.06, (vii) upon the
Annuitant's death pursuant to Section 2.10, and (viii) at the end of the period
during which payments pursuant to the provisions of Section 2.06, 2.07 and 2.10,
or any commuted payments arising from a Fixed Annuity Benefit pursuant to
Section 3.05, were deferred pursuant to Section 4.05.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request, or
through the use of a touch tone telephone, transfer all or part of the amount
you have in a Division to one or more of the Divisions as follows: (1) amounts
in the Guaranteed Interest Division, Stock Division, Balanced Division and
Aggressive Stock Division may be transferred among such Divisions; (2) amounts
in the Money Market Division may be transferred to other Divisions. Written
authorization for touch tone telephone initiated transfers is only required when
authorization for telephone transfers is requested. Upon advance written notice
to you we reserve the right to discontinue acceptance of transfer requests
through the use of touch tone telephones. All transfers will be made on the
Transaction Date and will be subject to our rules in effect at the time of
transfer. With respect to the Investment Divisions, the transfers will be made
at the Accumulation Unit Value next computed after the Transaction Date. No
transfers are permitted to the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. On or before the Retirement Date, and
while the Annuitant is alive, you may elect by written notice to terminate this
Contract. We will determine the Cash Value under this Contract as of the
Transaction Date. Such cash value will be subject to the termination charge
described below:
If you terminate this Contract, we will pay you the greater of (i) the
Annuity Account Value after the withdrawal charge has been imposed as
described in 2.08, or (ii) the Free Corridor amount, plus 94% of your
remaining Annuity Account Value.
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For purposes of calculating the Withdrawal Charge, (1) the oldest Contribution
will be treated as the first withdrawn and the most recent Contributions will be
treated next, and (2) amounts withdrawn up to the Free Corridor Amount will not
be considered a withdrawal of any of your Contributions.
No Withdrawal Charge will be applied if the amount withdrawn is applied to the
election of a life annuity distribution option, or if the Annuitant dies and the
death benefit is withdrawn by the beneficiary specified to us.
If this Contract is terminated prior to the Retirement Date, any applicable tax
charges we have paid may be deducted. If we have previously deducted charges for
applicable taxes from Contributions pursuant to Section 2.01, we will not again
deduct charges for the same taxes on termination, unless a change in applicable
law has occurred with respect to this Contract.
The payment of such Cash Value to you may be deferred by us in accordance with
the provisions of Section 4.05. If no tax has been previously deducted or if
such a tax is due at termination, we will deduct the amount due.
Prior to the Retirement Date, we reserve the right to pay the Annuity Account
Value under this Contract and terminate this Contract if (i) no Contributions
are made during the last three completed Contract Years, and the Annuity Account
Value is less than $500, or (ii) after three Contract Years and the Annuity
Account Value is less than $500. We also reserve the right to terminate this
Contract if no Contributions have been made within 120 days of the Contract Date
shown on Page 3 of this Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions and the Annuity Account Value shall be zero. We will
be released from any and all liability for payments with respect to the
Contributions from which the Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. You may elect by written notice to us to make
a partial withdrawal from the Divisions before the Retirement Date while the
Annuitant is alive.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested by you. The amount paid plus any withdrawal
charge applicable pursuant to Section 2.08 will be withdrawn from the amounts
you have in the Divisions. Unless instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.05.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise you and reserve the right to pay the
Annuity Account Value to you, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS. There will be no withdrawal charge
(i) if the amount of the partial withdrawal requested is not greater than the
Free Corridor Amount defined in Section 1.13, (ii) the amount withdrawn is
applied to the election of a life annuity distribution option, or (iii) a death
benefit is withdrawn by the beneficiary.
However, if the amount of partial withdrawal requested is greater than the Free
Corridor Amount, we will (i) first withdraw from such Divisions an amount equal
to the Free Corridor Amount, and (ii) then withdraw an amount equal to the
excess of the amount requested over the Free Corridor Amount, plus a withdrawal
charge, if applicable. Such withdrawal charge will be calculated in the
following manner:
(a) Withdrawals of Contributions made by you during the current and five
prior Contract Years will be subject to a charge of 6% of the amount
withdrawn (including such charge).
(b) Withdrawals of other amounts will not be subject to any withdrawal
charges.
We will pay you the lesser of (a) the amount requested or (b) the Cash Value.
For purposes of determining withdrawal charges described in this Section,
amounts withdrawn up to the Free Corridor Amount will not be considered a
withdrawal of any Contributions. Any excess withdrawals, i.e. those pursuant to
item (ii) in the immediate preceding paragraph, shall be considered withdrawals
of older contributions first and more recent contributions next.
No. 92NQCA Page 9
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If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to this contract.
SECTION 2.09 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year before your Retirement Date, we will withdraw from the Divisions an Annual
Administrative Charge equal to the lesser of $30 or 2% of the Annuity Account
Value including the amount of the sum of (i) the Annuity Account Value and (ii)
any withdrawals pursuant to Section 2.07 during that Contract Year. The charge
will be allocated among the Divisions in proportion to the amounts that you have
in the Divisions.
As of the Retirement Date and before application of the Annuity Account Value or
Cash Value pursuant to Section 3.03, or upon termination of this Contract
pursuant to Section 2.06 or Sections 2.10 and 2.11 during a Contract Year, if
the Annuity Account Value is less than $10,000, we will withdraw the Annual
Administrative Charge described in this Section for the applicable part of that
Contract Year.
However, if the Annuity Account Value is $10,000 or greater at the end of the
Contract Year, the Annual Administrative Charge is zero.
SECTION 2.10 DEATH BENEFIT. If we ascertain that the Annuitant has died, upon
receipt of due proof of such death, we will pay to the beneficiary you
designated pursuant to Section 4.03 to receive such payment, the amount of death
benefit payable under this Contract.
The amount of the death benefit under this Contract is equal to the greater of
(i) the Annuity Account Value and (ii) the minimum death benefit under this
Contract. Such minimum death benefit is the sum of all contributions made
pursuant to Section 2.01 (before reduction for any applicable tax charge), less
any withdrawals made pursuant to Section 2.07. Any such withdrawal will reduce
the minimum death benefit (as adjusted by any previous such withdrawal) by an
amount which is in the same proportion as the amount that was withdrawn is to
the Annuity Account Value.
We will pay the death benefit to the beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.03. Also in accordance with the last paragraph of Section 4.03, if no such
election is in effect at the Annuitant's death, we will pay the death benefit to
the beneficiary in a single sum, unless the beneficiary elects before we pay the
death benefit (i) to apply the death benefit to an Annuity Benefit on any
annuity form offered by us; (ii) to apply the death benefit to provide any other
form of benefit payment offered by us; or (iii) to apply the death benefit to
provide any combination of forms of benefit payment offered by us. All benefit
payment elections will be subject to our rules then in effect and any other
applicable requirements under the Code.
Upon payment of the death benefit, the amount in the Divisions and the Annuity
Account Value with respect to this Contract shall be zero. We will be released
from any and all liability for payments with respect to the Contributions from
which the Annuity Account Value arose.
SECTION 2.11 OWNER DEATH DISTRIBUTION RULES. Upon the death of the Owner before
an Annuitant's Retirement Date:
(i) if you are both the Owner and the Annuitant, we will pay the death
benefit in accordance with Sections 2.10 and 4.03.
(ii) If you are not the Annuitant, the designated beneficiary will succeed as
Owner, notwithstanding the existence of any co-owner. The entire amount
in the Divisions subject to any applicable withdrawal charges as
described in the Contract must either: a) be completely distributed by
the fifth anniversary of your death, or b) within 1 year after your death
as a life annuity or installment option, for a period of not longer than
the life expectancy of the designated beneficiary.
However, if the designated beneficiary is your spouse, the entire amount the
Annuitant has in the Divisions must then be distributed no later than 5 years
after the spouse's death.
If payments under an Annuity Benefit had commenced prior to your death, such
payments will continue to be made over a period not longer than the period
provided for under the Annuity Benefit elected.
If the Annuitant dies before the entire amount the Annuitant has in the
Divisions is distributed, we will pay the death benefit in Section 2.10.
No. 92NQCA Page 10
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The designated beneficiary is the same as the beneficiary who is entitled to the
death benefit upon your death.
Where more than one Owner is named, the date of death of the Owner will be
deemed to be the date of death of the first Owner to die.
SECTION 2.12 CONTRIBUTION LIMIT. We may refuse to accept a Contribution made
with respect to an Annuitant if the total prior Contributions made exceed (or if
acceptance of such Contribution would cause the total Contributions to exceed)
the following:
(i) $500,000, if the Annuitant's current age last birthday is 75 or less.
(ii) $250,000, if the Annuitant's current age last birthday is 76-79.
We may refuse to accept any Contribution made with respect to an Annuitant if
such Annuitant's current age last birthday is 80 or greater.
- --------------------------------------------------------------------------------
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under this Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of net
investment return referred to in Section 1.23 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.22, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounting, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under this Contract with respect to a payee is the monthly
amount provided with respect to a payee pursuant to the 5th paragraph of Section
3.04. The amount of the fourth and each subsequent payment under a Variable
Annuity Benefit will be equal to the number of Annuity Units with respect to
such benefit, multiplied by the Average Annuity Unit Value for the second
calendar month immediately preceding the due date of the payment. The number of
Annuity Units with respect to a benefit is the number determined by dividing the
amount of the first monthly payment by the Annuity Unit Value for the Valuation
Period which includes the due date of the first monthly payment. (As described
in Section 3.05, we will notify the payee how each variable Annuity Payment is
determined).
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of the
Annuitant's Retirement Date, provided the Annuitant is then living, the Annuity
Account Value shall be applied to provide the Normal Form of Annuity Benefit,
unless you elect, (i) to receive the Cash Value of the Contract in a single sum,
(ii) to apply the Annuity Account Value or Cash Value, whichever is applicable
pursuant to the first paragraph of Section 3.04, to provide an Annuity Benefit
on any other form offered by us or one of our affiliated or subsidiary life
insurance companies, as elected by you, or (iii) to apply the Cash Value to
provide any other form of benefit payment offered by us, subject to our rules
then in effect.
We will provide notice and election forms to you not more than six months before
the Retirement Date.
If you elect to terminate this Contract pursuant to Section 2.06 before the
Retirement Date, an election may be made to receive any form of benefit payment
offered by us, subject to our rules then in effect and any other applicable
requirements under the Code.
No. 92NQCA Page 11
<PAGE>
We will have the right to require you to furnish pertinent information to
provide an Annuity Benefit, and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect pursuant to the first or
third paragraph of Section 3.03 to have an Annuity Benefit paid in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the annuity form elected involves life contingencies or
(ii) the Cash Value if the annuity form elected does not involve life
contingencies.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any applicable taxes on annuity considerations, as we determine. If we have
previously deducted charges for applicable taxes from contributions as provided
in Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to this Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your Contract will be governed by our
supplementary contract then in effect.
The amount to be applied to provide an Annuity Benefit will in addition to any
tax charge reduction, be reduced by an administrative charge. The amount of such
charge will be determined from time to time in accordance with our general
practices applicable on a uniform basis to all contracts of the same type as
this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated on the Life Annuity Form with Ten Years Certain. The
amount of income provided under the Fixed Annuity Benefit payable on the Life
Annuity Form with Ten Years Certain is based on 3.5% interest and the 1983
Individual Annuity Table "a". The amounts of income initially provided under the
Variable Annuity Benefit payable on the Life Annuity Form with Ten Years Certain
is based on the 1983 Individual Annuity Table "a" and on an Assumed Base Rate of
Net Investment Return of 3.5% or 5%, whichever applies pursuant to Section 1.22.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us based on 3.5% interest and the 1983 Individual Annuity Table
"a" if such annuity form provides for a Fixed Annuity Benefit and on the same
such Table and an Assumed Base Rate of Net Investment Income Return of 3.5% or
5%, whichever applies, pursuant to Section 1.22, if such annuity form provides
for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's survival must
be furnished to us either by personal endorsement of the check drawn for payment
or by other means satisfactory to us.
If a benefit payable under this Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by us will be charged against and
underpayments will be added to any payments thereafter falling due under the
terms of this Contract with respect to the payee affecting as many such payments
as are necessary to correct the overpayment or underpayment. Our liability with
respect to a payee is limited to the correct information and the actual amounts
used to provide the benefits then in force with respect to the payee under the
terms of this Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii) another person or an
institution is then maintaining or has custody of such payee, and (iii) no
guardian, committee, or other representative of the estate of such payee has
been appointed, we may make the payments (in the case of a minor, at a rate not
exceeding $200 a month) to such other person or institution, and will thereupon
be fully discharged from all liability with respect thereto.
Upon your election pursuant to Section 3.03 of an annuity form providing
payments for a period certain, you may designate (with the right to change such
designation) a payee to receive any payments that may become due after the death
of the person or persons upon, whose life or lives the income may depend.
No. 92NQCA Page 12
<PAGE>
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's estate in
accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis
originally used to determine such payments.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
- --------------------------------------------------------------------------------
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE
LIFE ANNUITY FORM WITH TEN YEARS CERTAIN
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
Monthly Income Monthly Income
Age Males Females Age Males Females
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
60 5.42 4.93 73 7.40 6.76
61 5.54 5.04 74 7.57 6.95
62 5.67 5.14 75 7.75 7.15
63 5.80 5.25 76 7.92 7.34
64 5.94 5.37 77 8.09 7.54
65 6.08 5.50 78 8.26 7.74
66 6.23 5.63 79 8.42 7.94
67 6.38 5.77 80 8.57 8.14
68 6.54 5.92 81 8.71 8.32
69 6.71 6.07 82 8.85 8.50
70 6.88 6.23 83 8.98 8.67
71 7.05 6.40 84 9.09 8.83
72 7.22 6.58 85 9.20 8.97
- ------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE
ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT PAYABLE ON THE
LIFE ANNUITY FORM WITH TEN YEARS CERTAIN
IF ASSUMED BASE RATE OF RETURN IS:
3.5% 5.0%
---- ----
Age Males Females Males Females
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
60 5.42 4.93 6.28 5.80
61 5.54 5.04 6.40 5.90
62 5.67 5.14 6.52 6.00
63 5.80 5.25 6.64 6.11
64 5.94 5.37 6.78 6.22
65 6.08 5.50 6.92 6.34
66 6.23 5.63 7.06 6.47
67 6.38 5.77 7.21 6.60
68 6.54 5.92 7.36 6.74
69 6.71 6.07 7.52 6.89
70 6.88 6.23 7.68 7.05
- ----------------------------------------------------------------------------------------------------------
</TABLE>
We will with respect to each payment under a Variable Annuity Benefit, notify
the payee of the number of Annuity Units and the Average Annuity Unit Value used
in determining the amount of each variable payment. Such notice will be mailed
with each payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary as described in Section
4.03.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.05.
No. 92NQCA Page 13
<PAGE>
- --------------------------------------------------------------------------------
PART V - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the provisions of this Contract alone will govern with respect to
our rights and obligations. A copy of the application is incorporated in and
made part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person who has a contingent or
additional interest in this Contract.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend this Contract
without the consent of any other person in order to comply with applicable laws
and regulations. Such right shall include, but not be limited to, the right to
conform this Contract and any certificate to reflect changes in the Code,
applicable Treasury Regulations, or published rulings of the Internal Revenue
Service so this Contract will continue to be an "annuity" as described in
Section 72 of the Code.
SECTION 4.03 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any death benefit
payable pursuant to Section 2.10 unless otherwise specified in the application
the person designated as beneficiary on the death of the Annuitant under Section
2.10 will also be the designated beneficiary who succeeds as "Owner" on your
death while the Annuitant is alive under Section 2.11. You may change such
designation from time to time during the Annuitant's lifetime and while the
Contract is in force. Any such designation or change will be made by written
notice in a form satisfactory to us. A change will, upon receipt at the
Processing Office, take effect as of the date the written notice was signed,
whether or not you are living on the date of receipt, but without further
liability as to any payment or other settlement made by us before receipt of
such change.
Unless otherwise specified in the application, if you have named two or more
persons as beneficiary, the beneficiary will be the named person or persons who
survive you, and if more than one survive they will share equally.
Any part of a death benefit payable pursuant to Section 2.10 for which there is
no named beneficiary living at your death will be payable in a single sum to
your children, who survive you, in equal shares, or should none survive, then to
your estate.
If you so elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity elected by you, with respect to the beneficiary, subject to our
rules then in effect. If at your death there is no election in effect to apply
the single sum death benefit to provide an Annuity Benefit, the beneficiary may
make such an election.
SECTION 4.04 FUTURE CONTRIBUTIONS. We reserve the right at our sole discretion
to limit Contributions under this Contract.
SECTION 4.05 DEFERMENT. Application of proceeds to a variable annuity, payment
of a death benefit when Section 2.10 or any payment required under Section 2.11
and payment of any portion of your Annuity Account Value (less any applicable
withdrawal charge) will be made within seven days after the Transaction Date.
Payments or applications of proceeds from the Investment Divisions can be
deferred for any period during which (1) the New York Stock Exchange has been
closed or trading on it is restricted, (2) sales of securities or determination
of the fair value of an Investment Division's assets is not reasonably
practicable because of an emergency, or (3) the Security and Exchange
Commission, by order, permits us to defer payment in order to protect persons
with interests in the Investment Divisions. We can defer payment of any portion
of your Annuity Account Value in the Guaranteed Interest Division for up to six
months while you are living.
SECTION 4.06 ANNUAL NOTICE. At the end of each Contract Year up to and including
the Retirement Date, we will furnish you with a notice showing the following:
(1) the amount in the Guaranteed Interest Division,
(2) the total number of Accumulation Units in the Stock Division, Balanced
Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Value,
No. 92NQCA Page 14
<PAGE>
(4) the amount in the Stock Division, Balanced Division, Aggressive Stock
Division and Money Market Division.
(5) the Cash Value, and
(6) the amount of the death benefit.
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.07 ASSIGNMENTS. This Contract may not be assigned as collateral or
security for a loan. Otherwise, you may assign this Contract before the
Retirement Date but we will not be bound by an assignment unless it is in
writing and we have received it. Your rights and those of any other persons
referred to in this Contract will be subject to the assignment. We assume no
responsibility for the validity of any assignment.
No amounts payable under this Contract to a payee other than you may be
assigned, unless permitted herein, by that payee, nor will they be subject to
the claims of creditors or to legal process, except to the extent permitted by
law.
SECTION 4.08 AGE AND SEX. If the age or sex of any person upon whose life an
Annuity Benefit depends has been misstated, any benefits will be those which
would have been purchased at the correct age and sex. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
No. 92NQCA Page 15
<PAGE>
Owner:
Annuitant:
Contract Number:
Issue Date:
Contract Date:
Retirement Date:
- -------------------------------------------------------------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P O Box 2996, New York,
New York 10116-2996
AGREES
o TO ALLOCATE the Contributions made to this Contract after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division, Money Market Division of the Separate Account (referred to
in this Contract as the Investment Divisions of the Separate Account) or to
the Guaranteed Interest Division, in accordance with Sections 2.02, 2.03
and 2.04 or in part to any one, as directed by you.
o TO APPLY the Annuity Account Value at the Retirement Date to provide an
Annuity Benefit or a Cash Value benefit if the Annuitant is then living,
and
o TO PROVIDE you with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract, "we", "our" and "us" mean The
Equitable Life Assurance Society of the United States. "You" and "your" mean the
Owner, at the time a right is exercised by the Owner.
TEN DAYS TO EXAMINE CONTRACT - You may cancel this Contract by returning it to
us within ten days after receipt of it. Upon such cancellation, we will refund
any Contribution made to us under this Contract, plus or minus any investment
gain or loss experienced in the Investment Divisions of the Separate Account
from the date such Contribution is allocated to such Investment Division to the
date we receive the returned Contract.
/s/ Molly K. Heines /s/ Joseph J. Melone
Molly K. Heines Joseph J. Melone
Vice President and Secretary Chairman of the Board
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.23 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92NQCB
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
- -------------------------------------------------------------------------------
TABLE OF CONTENTS
PART I - DEFINITIONS Page
Section 1.01 - Annuitant.............................................. 4
1.02 - Annuity Account Value ................................. 4
1.03 - Annuity Benefit ....................................... 4
1.04 - Cash Value............................................. 4
1.05 - Class of Contracts..................................... 4
1.06 - Code................................................... 4
1.07 - Contract............................................... 4
1.08 - Contract Date.......................................... 4
1.09 - Contract Year.......................................... 4
1.10 - Contribution .......................................... 4
1.11 - Deposit Option Benefits ............................... 4
1.12 - Divisions.............................................. 4
1.13 - Free Corridor Amount .................................. 4
1.14 - Guaranteed Interest Rate............................... 5
1.15 - Joint and Survivor Life
Annuity Form .......................................... 5
1.16 - Life Annuity Form...................................... 5
1.17 - Normal Form............................................ 5
1.18 - Owner.................................................. 5
1.19 - Period Certain Annuity ................................ 5
1.20 - Processing Office...................................... 5
1.21 - Retirement Date ....................................... 5
1.22 - Separate Account ...................................... 5
1.23 - Separate Account
Definitions............................................ 6
1.24 - Transaction Date ...................................... 7
1.25 - Trust ................................................. 7
PART II - ANNUITY ACCOUNT VALUE
Section 2.01- Contributions .......................................... 7
2.02 - Separate Account
Investment Divisions .................................. 7
2.03 - Guaranteed Interest Division .......................... 8
2.04 - Allocation to Divisions ............................... 8
2.05 - Transfers Among Divisions ............................. 8
2.06 - Termination of this Contract .......................... 8
2.07 - Partial Withdrawals ................................... 9
2.08 - Charges for Partial Withdrawals ....................... 9
2.09 - Annual Administrative Charge ..........................10
2.10 - Death Benefit..........................................10
2.11 - Owner Death Benefit
Distribution Rules.....................................10
2.12 - Contribution Limit.....................................11
PART III - ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit .................................11
3.02 - Variable Annuity Benefit...............................11
3.03 - Election and Commencement
of Annuity Benefits ...................................1l
3.04 - Amount of Annuity Benefits.............................12
3.05 - Payment of Annuity Benefits ...........................12
PART IV - GENERAL PROVISIONS
Section 4.01 - Contract...............................................14
4.02 - Statutory Compliance ..................................14
4.03 - Beneficiary ...........................................14
4.04 - Future Contributions ..................................14
4.05 - Deferment .............................................14
4.06 - Annual Notice..........................................14
4.07 - Assignments ...........................................15
4.08 - Age and Sex ...........................................15
No. 92NQCB Page 2
<PAGE>
PART I - DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means the individual shown on page
3 of this Contract.
SECTION 1.02 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts in the Guaranteed Interest Division and the Investment
Divisions of the Separate Account pursuant to Sections 2.02 and 2.03.
SECTION 1.03 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract. Various Sections of this
Contract (Sections 1.15, 1.16, 3.01 and 3.02) refer to monthly payments to be
made under an Annuity Benefit. An election may be to have your Annuity Benefit
paid at other intervals, such as quarterly, semi-annually, or annually, instead
of monthly. This election may be made at the time the Annuity Benefit form as
described in Section 3.03 is elected: in that event, all references in this
Contract to monthly payments will be deemed to mean payments at the frequency
you elected, subject to our rule at the time of election.
SECTION 1.04 CASH VALUE. The term "Cash Value" means an amount equal to the
greater of (i) or (ii) below:
(i) the Annuity Account Value less 6% of the Contributions made during the
current and five prior Contract Years, which had not been previously
withdrawn pursuant to Sections 2.07 and 2.08.
(ii) the sum of (a) the Free Corridor Amount as defined in Section 1.13 and (b)
94% of the Annuity Account Value less the Free Corridor Amount.
However, if the Annuitant was age 59 or older on the Contract Date and it is
Contract Year 5, item (ii) (b) above will be 95% of the Annuity Account Value
less the Free Corridor Amount. If it is Contract Year 6, item (ii) (b) above
will be 96% of the Annuity Account Value less the Free Corridor Amount.
SECTION 1.05 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
contracts with a Contract Date in the same calendar year.
SECTION 1.06 CODE. The term "Code" means the Internal Revenue Code of 1986, as
now or hereafter amended, or any corresponding provisions of prior or subsequent
United States revenue laws.
SECTION 1.07 CONTRACT. The term "Contract" means this Contract.
SECTION 1.08 CONTRACT DATE. The term "Contract Date" means the Date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.09 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereof,
unless otherwise agreed to in writing by us.
SECTION 1.10 CONTRIBUTION. The term "Contribution" means a payment made to us
for the Annuitant with respect to an Annuity purchased under this Contract. We
are under no obligation to accept an Initial Contribution of less than $1,000.00
or, for Payroll Deductions and any Subsequent Contributions, a Contribution of
less than $50.00.
SECTION 1.11 DEPOSIT OPTION BENEFIT. The term "Deposit Option Benefit" means a
benefit derived from amounts on deposit for a period approved by us, subject to
our rules then in effect and any other applicable requirements under the Code.
Interest payments will be made at the end of each one, three, six or twelve
month interval, as elected by you, and provided that the amount of each payment
made at the end of the designated interval is at least $20. We reserve the right
to change the payment frequency for payments of less than $20.
SECTION 1.12 DIVISION. The term "Division" or "Divisions" mean, singly or
severally as the case may be, the following divisions described in this
Contract:
(i) the Guaranteed Interest Division, and
(ii) the Investment Divisions of the Separate Account.
SECTION 1.13 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means an
amount equal to the excess, if any, of (i) 10% of the Annuity Account Value on
the Transaction Date over (ii) cumulative prior withdrawals made pursuant to
Section 2.07 or 2.08 in the current Contract Year.
No. 92NQCB Page 4
<PAGE>
SECTION 1.14 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on Page 3 of
this Contract. Section 2.03 describes the determination of the rate to apply
thereafter.
SECTION 1.15 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected. The payments commence on the date as of which the Joint and Survivor
Life Annuity Form is purchased and terminate with the last payment due before
the death of the survivor.
SECTION 1.16 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.17 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means the Fixed Annuity Benefit payable on the Life Annuity Form,
as defined in Sections 3.01 and 1.16, with 10 years of payments guaranteed (10
years certain period). In addition, if the Annuitant dies before the certain
period has ended, payments will continue to the beneficiary designated to
receive such payments for the balance of the certain period.
SECTION 1.18 OWNER. The Owner of this Contract is the person shown as "Owner" on
page 3 unless otherwise stated in the application, or later changed.
Notwithstanding any provisions in this Contract to the contrary, only the Owner
can exercise the rights under this Contract.
While the Annuitant is living, the Owner of this Contract may change the Owner
by written notice satisfactory to us. The change will take effect on the date
the Owner signs the notice, except it will not apply to any payment we make or
other actions we take before we receive the notice.
SECTION 1.19 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
your payments as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 1.20 PROCESSING OFFICE. The term "Processing Office" means Equitable
Individual Annuity Center, P O Box 2996, New York, New York 10116-2996, or such
other location as we shall designate upon advance written notice to you.
SECTION 1.21 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Annuitant attains the retirement age shown on Page 3 of this Contract.
Before the Retirement Date the Annuitant may elect to change the Retirement Date
to another Retirement Date, which may be any date after the filing of the
election (other than the 29th, 30th or 31st day of any month). Any election for
such change must be made in writing by you and shall not take effect until
received by us at our Processing Office.
SECTION 1.22 SEPARATE ACCOUNT. The term "Separate Account" means Separate
Account A which is organized as a unit investment trust, a type of investment
company. We established the Separate Account and it is maintained in accordance
with the laws of New York State. Realized and unrealized gains and losses from
the assets of the Separate Account are credited to or charged against it without
regard to our other income, gains or losses. Assets are put in the Separate
Account to support this Contract and other variable annuity contracts and
certificates. Assets may be put in the Separate Account for other purposes, but
not to support contracts or policies other than variable annuities and variable
life insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions" Each Investment Division
may invest its assets in a separate class (or series) of shares of a designated
Trust where each class (or series) represents a separate portfolio in the Trust
or investment company. We reserve the right to change the Trust or to add a
Trust. The Investment Divisions are the Stock Division, the Money Market
Division, the Balanced Division and the Aggressive Stock Division. The
Guaranteed Interest Division is not a part of the Separate Account A but rather
is an asset of our General Account.
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We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any other
form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to, or
remove Investment Divisions (or sub-divisions of Investment Divisions)
from the Separate Account (the term "Investment Division" in this Contract
shall then refer to any other Investment Division in which the assets, of
a Class of Contracts to which this Contract belongs, were placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for taxes) at a rate
not to exceed 1.49% per year for each of the Stock, Money Market and Balanced
Divisions, and 1.34% per year for the Aggressive Stock Division, for financial
accounting, death benefits, mortality risk, expenses and expense risk. The
charge shall be made in accordance with (c) of the Net Investment Factor
provision in Section 1.23. The relative proportion of these charges may be
modified. This daily charge, plus the investment advisory fee charges and direct
operating expense charges of the Trust, shall not in the aggregate exceed a
total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract.
SECTION 1.23 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Is each business day together with any consecutive preceding
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share value
reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
any amounts allocated to or withdrawn for that Valuation Period).
(c) is the daily Separate Account charge for the expenses of this Contract,
times the number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in the
Investment Division where Contributions are invested and are used in determining
the amount in an Investment Division.
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ACCUMULATION UNIT VALUE: The "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for that Investment Division for such Valuation Period.
ANNUITY UNIT: The Annuity Unit is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base rates of 5% and 3.5% a year, respectively. The Annuity Unit Value for any
subsequent Valuation Period is the Annuity Unit Value for the immediately
preceding Valuation Period multiplied by the Adjusted Net Investment Factor for
such subsequent Valuation Period. The Adjusted Net Investment Factor for a
Valuation Period is the Net Investment Factor for such period reduced for each
calendar day in such subsequent Valuation Period by the Net Investment Factor
times (i) .00013366, if the Assumed Base Rate of Net Investment Return is 5%,
and (ii) .00009425, if the Assumed Base Rate of Net Investment Return is 3.5%.
The Assumed Base Rate of Net Investment Return shall be 5%, except in states
where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: With respect to this Contract, the Average Annuity
Unit Value for a calendar month is equal to the average of the Annuity Unit
Values for all Valuation Periods ending in such month.
SECTION 1.24 TRANSACTION DATE. The Transaction Date is the business day we
receive a Contribution or a written contract transaction request providing the
information we need at the Processing Office. In the case of a transfer request
initiated through the use of a touch tone telephone as described in Section
2.05, the Transaction Date is the business day the telephone transaction is
received.
SECTION 1.25 TRUST. The term "Trust" means the designated trust or investment
company in which assets of the Separate Account are invested.
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PART II - ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. Contributions made by you can be classified, as
described under subsections A and B below, as specified on the application for
this Contract. If Contributions are made under more than one classification,
separate Contracts will be issued for each classification.
A. Post-August 13, 1982 Classification
All Contributions of new funds as well as any Contributions resulting from a
transfer to this Contract from a deferred annuity contract, other than those
described in subsection B below will be treated as within this classification.
B. Pre-August 14, 1982 Classification
Amounts transferred to this Contract through a tax free exchange of a deferred
annuity contract, where such transferred amount represents amounts invested in
or credited to investments in annuity contracts prior to August 14, 1982 will be
treated as within this classification.
Each Contribution received by us will, before its allocation under this
Contract, be reduced by the amount of any applicable tax charge, as determined
by us. Contributions will be allocated to the Division in accordance with
instructions received in your application, unless later changed.
If the Annuitant was age 57 or younger on the Contract Date, no additional
Contributions are permitted under the Contract after completion of the Contract
Year in which the Annuitant attains age 59. If the Annuitant was age 58 or older
on the Contract Date, no additional Contributions are permitted under the
Contract after the first anniversary of the Contract Date.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to or withdrawn or transferred from an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing said amount by
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the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units in an Investment
Division on any date is equal to (i) the sum of any Accumulation Units that have
been allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation
Units that have been withdrawn pursuant to Sections 2.07 or 2.09 or transferred
from the Investment Division pursuant to Section 2.05. The amount in an
Investment Division on any date is equal to the product of (i) the number of
Accumulation Units in the Investment Division on that date and (ii) the
Accumulation Unit Value for the Investment Division for the Valuation Period
which includes that date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) the election and commencement of Annuity Benefits pursuant to
Section 3.03, (ii) receipt of due proof of the Annuitant's death, or (iii)
termination of this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Section 2.07 or 2.09 or transferred
from the Guaranteed Interest Division, pursuant to Section 2.05. Interest is
allocated to the Guaranteed Interest Division on a Transaction Date pursuant to
Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division terminates on the earliest of
(i) the Retirement Date, (ii) receipt of due proof of the Annuitant's death, or
(iii) termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01, is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction. Allocation percentages must be in whole
numbers and the sum must equal 100%. The allocation is made as of the
Transaction Date on which we have received both such Contribution and such
direction. Contributions made to an Investment Division purchase Accumulation
Units in that Investment Division, using the Accumulation Unit Value next
computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) at the time of application of amounts in the Guaranteed Interest
Division to provide forms of benefits offered by us pursuant to Section 3.03,
(vi) upon termination of participation pursuant to Section 2.06, (vii) upon the
Annuitant's death pursuant to Section 2.10, and (viii) at the end of the period
during which payments pursuant to the provisions of Section 2.06, 2.07 and 2.10,
or any commuted payments arising from a Fixed Annuity Benefit pursuant to
Section 3.05, were deferred pursuant to Section 4.05.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request, or
through the use of a touch tone telephone, transfer all or part of the amount
you have in a Division to one or more of the Divisions as follows: (1) amounts
in the Guaranteed Interest Division, Stock Division, Balanced Division and
Aggressive Stock Division may be transferred among such Divisions; (2) amounts
in the Money Market Division may be transferred to other Divisions. Written
authorization for touch tone telephone initiated transfers is only required when
authorization for telephone transfers is requested. Upon advance written notice
to you we reserve the right to discontinue acceptance of transfer requests
through the use of touch tone telephones. All transfers will be made on the
Transaction Date and will be subject to our rules in effect at the time of
transfer. With respect to the Investment Divisions, the transfers will be made
at the Accumulation Unit Value next computed after the Transaction Date. No
transfers are permitted to the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. On or before the Retirement Date, and
while the Annuitant is alive, you may elect by written notice to terminate this
Contract. We will determine the Cash Value under this Contract as of the
Transaction Date. Such cash value will be subject to the termination charge
described below:
If you terminate this Contract, we will pay you the greater of (i) the
Annuity Account Value after the withdrawal charge has been imposed as
described in 2.08, or (ii) the Free Corridor amount, plus 94% of your
remaining Annuity Account Value.
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For purposes of calculating the Withdrawal Charge, (1) the oldest Contribution
will be treated as the first withdrawn and the most recent Contributions will be
treated next, and (2) amounts withdrawn up to the Free Corridor Amount will not
be considered a withdrawal of any of your Contributions.
No Withdrawal Charge will be applied if the amount withdrawn is applied to the
election of a life annuity distribution option, or if the Annuitant dies and the
death benefit is withdrawn by the beneficiary specified to us.
If this Contract is terminated prior to the Retirement Date, any applicable tax
charges we have paid may be deducted. If we have previously deducted charges for
applicable taxes from Contributions pursuant to Section 2.01, we will not again
deduct charges for the same taxes on termination, unless a change in applicable
law has occurred with respect to this Contract.
The payment of such Cash Value to you may be deferred by us in accordance with
the provisions of Section 4.05. If no tax has been previously deducted or if
such a tax is due at termination, we will deduct the amount due.
Prior to the Retirement Date, we reserve the right to pay the Annuity Account
Value under this Contract and terminate this Contract if (i) no Contributions
are made during the last three completed Contract Years, and the Annuity Account
Value is less than $500, or (ii) after three Contract Years and the Annuity
Account Value is less than $500. We also reserve the right to terminate this
Contract if no Contributions have been made within 120 days of the Contract Date
shown on Page 3 of this Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions and the Annuity Account Value shall be zero. We will
be released from any and all liability for payments with respect to the
Contributions from which the Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. You may elect by written notice to us to make
a partial withdrawal from the Divisions before the Retirement Date while the
Annuitant is alive.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested by you. The amount paid plus any withdrawal
charge applicable pursuant to Section 2.08 will be withdrawn from the amounts
you have in the Divisions. Unless instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.05.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise you and reserve the right to pay the
Annuity Account Value to you, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS. There will be no withdrawal charge
(i) if the amount of the partial withdrawal requested is not greater than the
Free Corridor Amount defined in Section 1.13, (ii) the amount withdrawn is
applied to the election of a life annuity distribution option, or (iii) a death
benefit is withdrawn by the beneficiary.
However, if the amount of partial withdrawal requested is greater than the Free
Corridor Amount, we will (i) first withdraw from such Divisions an amount equal
to the Free Corridor Amount, and (ii) then withdraw an amount equal to the
excess of the amount requested over the Free Corridor Amount, plus a withdrawal
charge, if applicable. Such withdrawal charge will be calculated in the
following manner:
(a) Withdrawals of Contributions made by you during the current and five prior
Contract Years will be subject to a charge of 6% of the amount withdrawn
(including such charge).
(b) Withdrawals of other amounts will not be subject to any withdrawal charges.
We will pay you the lesser of (a) the amount requested or (b) the Cash Value.
For purposes of determining withdrawal charges described in this Section,
amounts withdrawn up to the Free Corridor Amount will not be considered a
withdrawal of any Contributions. Any excess withdrawals, i.e. those pursuant to
item (ii) in the immediate preceding paragraph, shall be considered withdrawals
of older contributions first and more recent contributions next.
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If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to this contract.
SECTION 2.09 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year before your Retirement Date, we will withdraw from the Divisions an Annual
Administrative Charge equal to the lesser of $30 or 2% of the Annuity Account
Value including the amount of the sum of (i) the Annuity Account Value and (ii)
any withdrawals pursuant to Section 2.07 during that Contract Year. The charge
will be allocated among the Divisions in proportion to the amounts that you have
in the Divisions.
As of the Retirement Date and before application of the Annuity Account Value or
Cash Value pursuant to Section 3.03, or upon termination of this Contract
pursuant to Section 2.06 or Sections 2.10 and 2.11 during a Contract Year, if
the Annuity Account Value is less than $10,000, we will withdraw the Annual
Administrative Charge described in this Section for the applicable part of that
Contract Year.
However, if the Annuity Account Value is $10,000 or greater at the end of the
Contract Year, the Annual Administrative Charge is zero.
SECTION 2.10 DEATH BENEFIT. If we ascertain that the Annuitant has died, upon
receipt of due proof of such death, we will pay to the beneficiary you
designated pursuant to Section 4.03 to receive such payment, the amount of death
benefit payable under this Contract.
The amount of the death benefit under this Contract is equal to the greater of
(i) the Annuity Account Value and (ii) the minimum death benefit under this
Contract. Such minimum death benefit is the sum of all contributions made
pursuant to Section 2.01 (before reduction for any applicable tax charge), less
any withdrawals made pursuant to Section 2.07. Any such withdrawal will reduce
the minimum death benefit (as adjusted by any previous such withdrawal) by an
amount which is in the same proportion as the amount that was withdrawn is to
the Annuity Account Value.
We will pay the death benefit to the beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.03. Also in accordance with the last paragraph of Section 4.03, if no such
election is in effect at the Annuitant's death, we will pay the death benefit to
the beneficiary in a single sum, unless the beneficiary elects before we pay the
death benefit (i) to apply the death benefit to an Annuity Benefit on any
annuity form offered by us; (ii) to apply the death benefit to provide any other
form of benefit payment offered by us; or (iii) to apply the death benefit to
provide any combination of forms of benefit payment offered by us. All benefit
payment elections will be subject to our rules then in effect and any other
applicable requirements under the Code.
Upon payment of the death benefit, the amount in the Divisions and the Annuity
Account Value with respect to this Contract shall be zero. We will be released
from any and all liability for payments with respect to the Contributions from
which the Annuity Account Value arose.
SECTION 2.11 OWNER DEATH DISTRIBUTION RULES. Upon the death of the Owner before
an Annuitant's Retirement Date:
(i) If you are both the Owner and the Annuitant, we will pay the death benefit
in accordance with Sections 2.10 and 4.03.
(ii) If you are not the Annuitant, the designated beneficiary will succeed as
Owner, notwithstanding the existence of any co-owner. The entire amount in
the Divisions subject to any applicable withdrawal charges as described in
this Contract must either: a) be completely distributed by the fifth
anniversary of your death, or b) within 1 year after your death as a life
annuity or installment option, for a period of not longer than the life
expectancy of the designated beneficiary.
However, if the designated beneficiary is your spouse, the entire amount the
Annuitant has in the Divisions must then be distributed no later than 5 years
after the spouse's death.
If payments under an Annuity Benefit had commenced prior to your death, such
payments will continue to be made over a period not longer than the period
provided for under the Annuity Benefit elected.
If the Annuitant dies before the entire amount the Annuitant has in the
Divisions is distributed, we will pay the death benefit in Section 2.10.
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The designated beneficiary is the same as the beneficiary who is entitled to the
death benefit upon your death.
Where more than one Owner is named, the date of death of the Owner will be
deemed to be the date of death of the first Owner to die.
SECTION 2.12 CONTRIBUTION LIMIT. We may refuse to accept a Contribution made
with respect to an Annuitant if the total prior Contributions made exceed (or if
acceptance of such Contribution would cause the total Contributions to exceed)
the following:
(i) $500,000, if the Annuitant's current age last birthday is 75 or less.
(ii) $250,000, if the Annuitant's current age last birthday is 76-79.
We may refuse to accept any Contribution made with respect to an Annuitant if
such Annuitant's current age last birthday is 80 or greater.
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PART III -- ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under this Contract with respect to a payee is the amount provided with respect
to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of net
investment return referred to in Section 1.23 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.22, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounting, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under this Contract with respect to a payee is the monthly
amount provided with respect to a payee pursuant to the 5th paragraph of Section
3.04. The amount of the fourth and each subsequent payment under a Variable
Annuity Benefit will be equal to the number of Annuity Units with respect to
such benefit, multiplied by the Average Annuity Unit Value for the second
calendar month immediately preceding the due date of the payment. The number of
Annuity Units with respect to a benefit is the number determined by dividing the
amount of the first monthly payment by the Annuity Unit Value for the Valuation
Period which includes the due date of the first monthly payment. (As described
in Section 3.05, we will notify the payee how each variable Annuity Payment is
determined).
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of the
Annuitant's Retirement Date, provided the Annuitant is then living, the Annuity
Account Value shall be applied to provide the Normal Form of Annuity Benefit,
unless you elect, (i) to receive the Cash Value of the Contract in a single sum,
(ii) to apply the Annuity Account Value or Cash Value, whichever is applicable
pursuant to the first paragraph of Section 3.04, to provide an Annuity Benefit
on any other form offered by us or one of our affiliated or subsidiary life
insurance companies, as elected by you, or (iii) to apply the Cash Value to
provide any other form of benefit payment offered by us, subject to our rules
then in effect.
We will provide notice and election forms to you not more than six months before
the Retirement Date.
If you elect to terminate this Contract pursuant to Section 2.06 before the
Retirement Date, an election may be made to receive any form of benefit payment
offered by us, subject to our rules then in effect and any other applicable
requirements under the Code.
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We will have the right to require you to furnish pertinent information to
provide an Annuity Benefit, and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS, If you elect pursuant to the first or
third paragraph of Section 3.03 to have an Annuity Benefit paid in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the annuity form elected involves life contingencies or
(ii) the Cash Value if the annuity form elected does not involve life
contingencies.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any applicable taxes on annuity considerations, as we determine. If we have
previously deducted charges for applicable taxes from contributions as provided
in Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to this Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your Contract will be governed by our
supplementary contract then in effect.
The amount to be applied to provide an Annuity Benefit will in addition to any
tax charge reduction, be reduced by an administrative charge. The amount of such
charge will be determined from time to time in accordance with our general
practices applicable on a uniform basis to all contracts of the same type as
this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated on the Life Annuity Form with Ten Years Certain. The
amount of income provided under the Fixed Annuity Benefit payable on the Life
Annuity Form with Ten Years Certain is based on 3.5% interest and the 1983
Individual Annuity Table "a". The amounts of income initially provided under the
Variable Annuity Benefit payable on the Life Annuity Form with Ten Years Certain
is based on the 1983 Individual Annuity Table "a" and on an Assumed Base Rate of
Net Investment Return of 3.5% or 5%, whichever applies pursuant to Section 1.22.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us based on 3.5% interest and the 1983 Individual Annuity Table
"a" if such annuity form provides for a Fixed Annuity Benefit and on the same
such Table and an Assumed Base Rate of Net Investment Income Return of 3.5% or
5%, whichever applies, pursuant to Section 1.22, if such annuity form provides
for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Evidence of each payee's survival must
be furnished to us either by personal endorsement of the check drawn for payment
or by other means satisfactory to us.
If a benefit payable under this Contract was based on information that is
subsequently found to be incorrect, such benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by us will be charged against and
underpayments will be added to any payments thereafter falling due under the
terms of this Contract with respect to the payee affecting as many such payments
as are necessary to correct the overpayment or underpayment. Our liability with
respect to a payee is limited to the correct information and the actual amounts
used to provide the benefits then in force with respect to the payee under the
terms of this Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii) another person or an
institution is then maintaining or has custody of such payee, and (iii) no
guardian, committee, or other representative of the estate of such payee has
been appointed, we may make the payments (in the case of a minor, at a rate not
exceeding $200 a month) to such other person or institution, and will thereupon
be fully discharged from all liability with respect thereto.
Upon your election pursuant to Section 3.03 of an annuity form providing
payments for a period certain, you may designate (with the right to change such
designation) a payee to receive any payments that may become due after the death
of the person or persons upon, whose life or lives the income may depend.
No. 92NQCB Page 12
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The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's estate in
accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis
originally used to determine such payments.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
- -------------------------------------------------------------------------------
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE
LIFE ANNUITY FORM WITH TEN YEARS CERTAIN
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- -------------------------------------------------------------------------------
Monthly Income Monthly Income
Age Males Females Age Males Females
- ---------- ------------- -------------- -------- -------------- ---------------
60 5.42 4.93 73 7.40 6.76
61 5.54 5.04 74 7.57 6.95
62 5.67 5.14 75 7.75 7.15
63 5.80 5.25 76 7.92 7.34
64 5.94 5.37 77 8.09 7.54
65 6.08 5.50 78 8.26 7.74
66 6.23 5.63 79 8.42 7.94
67 6.38 5.77 80 8.57 8.14
68 6.54 5.92 81 8.71 8.32
69 6.71 6.07 82 8.85 8.50
70 6.88 6.23 83 8.98 8.67
71 7.05 6.40 84 9.09 8.83
72 7.22 6.58 85 9.20 8.97
- ---------- ------------- -------------- -------- -------------- ---------------
ANNUITY BENEFIT PAYABLE
ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- -------------------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT PAYABLE ON THE
LIFE ANNUITY FORM WITH TEN YEARS CERTAIN
IF ASSUMED BASE RATE OF RETURN 1S:
3.5% 5.0%
Age Males Females Males Females
- --------------- ------------ --------------- ---------------- -----------------
60 5.42 4.93 6.28 5.80
61 5.54 5.04 6.40 5.90
62 5.67 5.14 6.52 6.00
63 5.80 5.25 6.64 6.11
64 5.94 5.37 6.78 6.22
6.08 5.50 6.92 6.34
65
66 6.23 5.63 7.06 6.47
67 6.38 5.77 7.21 6.60
68 6.54 5.92 7.36 6.74
69 6.71 6.07 7.52 6.89
70 6.88 6.23 7.68 7.05
- --------------- ------------ --------------- ---------------- -----------------
We will with respect to each payment under a Variable Annuity Benefit, notify
the payee of the number of Annuity Units and the Average Annuity Unit Value used
in determining the amount of each variable payment. Such notice will be mailed
with each payment.
Any election, change, revocation or designation shall be made, and will take
effect, in the same manner as a change of beneficiary as described in Section
4.03.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.05.
No. 92NQCB Page 13
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- -------------------------------------------------------------------------------
PART IV -- GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the provisions of this Contract alone will govern with respect to
our rights and obligations. A copy of the application is incorporated in and
made part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person who has a contingent or
additional interest in this Contract.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend this Contract
without the consent of any other person in order to comply with applicable laws
and regulations. Such right shall include, but not be limited to, the right to
conform this Contract and any certificate to reflect changes in the Code,
applicable Treasury Regulations, or published rulings of the Internal Revenue
Service so this Contract will continue to be an "annuity" as described in
Section 72 of the Code.
SECTION 4.03 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any death benefit
payable pursuant to Section 2.10 unless otherwise specified in the application
the person designated as beneficiary on the death of the Annuitant under Section
2.10 will also be the designated beneficiary who succeeds as "Owner" on your
death while the Annuitant is alive under Section 2.11. You may change such
designation from time to time during the Annuitant's lifetime and while the
Contract is in force. Any such designation or change will be made by written
notice in a form satisfactory to us. A change will, upon receipt at the
Processing Office, take effect as of the date the written notice was signed,
whether or not you are living on the date of receipt, but without further
liability as to any payment or other settlement made by us before receipt of
such change.
Unless otherwise specified in the application, if you have named two or more
persons as beneficiary, the beneficiary will be the named person or persons who
survive you, and if more than one survive they will share equally.
Any part of a death benefit payable pursuant to Section 2.10 for which there is
no named beneficiary living at your death will be payable in a single sum to
your children, who survive you, in equal shares, or should none survive, then to
your estate.
If you so elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity elected by you, with respect to the beneficiary, subject to our
rules then in effect. If at your death there is no election in effect to apply
the single sum death benefit to provide an Annuity Benefit, the beneficiary may
make such an election.
SECTION 4.04 FUTURE CONTRIBUTIONS. We reserve the right at our sole discretion
to limit Contributions under this Contract.
SECTION 4.05 DEFERMENT. Application of proceeds to a variable annuity, payment
of a death benefit when Section 2.10 or any payment required under Section 2.11
and payment of any portion of your Annuity Account Value (less any applicable
withdrawal charge) will be made within seven days after the Transaction Date.
Payments or applications of proceeds from the Investment Divisions can be
deferred for any period during which (1) the New York Stock Exchange has been
closed or trading on it is restricted, (2) sales of securities or determination
of the fair value of an Investment Division's assets is not reasonably
practicable because of an emergency, or (3) the Security and Exchange
Commission, by order, permits us to defer payment in order to protect persons
with interests in the Investment Divisions. We can defer payment of any portion
of your Annuity Account Value in the Guaranteed Interest Division for up to six
months while you are living.
SECTION 4.06 ANNUAL NOTICE. At the end of each Contract Year up to and including
the Retirement Date, we will furnish you with a notice showing the following:
(1) the amount in the Guaranteed Interest Division,
(2) the total number of Accumulation Units in the Stock Division, Balanced
Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Value,
No. 92NQCB Page 14
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(4) the amount in the Stock Division, Balanced Division, Aggressive Stock
Division and Money Market Division.
(5) the Cash Value, and
(6) the amount of the death benefit.
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.07 ASSIGNMENTS. This Contract may not be assigned as collateral or
security for a loan. Otherwise, you may assign this Contract before the
Retirement Date but we will not be bound by an assignment unless it is in
writing and we have received it. Your rights and those of any other persons
referred to in this Contract will be subject to the assignment. We assume no
responsibility for the validity of any assignment.
No amounts payable under this Contract to a payee other than you may be
assigned, unless permitted herein, by that payee, nor will they be subject to
the claims of creditors or to legal process, except to the extent permitted by
law.
SECTION 4.08 AGE AND SEX. If the age or sex of any person upon whose life an
Annuity Benefit depends has been misstated, any benefits will be those which
would have been purchased at the correct age and sex. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
No. 92NQCB Page 15
<PAGE>
OWNER: ALL STATE DEFERRED COMPENSATION PROGRAM
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: JAN 1, 1992
CONTRACT DATE: JAN 1, 1992
RETIREMENT DATE: JAN 1, 2020
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O.
New York, New York 10116
AGREES
o TO ALLOCATE the Contributions made to this Contract after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division of the Separate Account (referred to
in this Contract as the "Investment Divisions") or the Guaranteed Interest
Division, in accordance with Sections 2.02, 2.03 and 2.04, as directed by
you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide the
Annuitant with an Annuity Benefit or a Cash Value benefit if the Annuitant is
then living, and
o TO PROVIDE you with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract, "we", "our" and "us" mean The
Equitable Life Assurance Society of the United States. "You" and "your" mean the
Employer at the time a right is exercised by the Employer.
TEN DAYS TO EXAMINE CONTRACT -- The Employer may cancel this Contract by
returning it to us within ten days after receipt of it. Upon such cancellation,
we will refund any Contribution made to us on the Annuitant's behalf under this
Contract, plus or minus any investment gain or loss experienced in the
Investment Divisions of the Separate Account from the date such Contribution was
allocated to such Investment Division to the date we receive the returned
contract.
/s/ Molly K. Heines /s/ Richard H. Jenrette
Vice President and Secretary Chairman of the Board
And Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE ANNUITY BENEFITS PAYABLE UNDER THE CONTRACT ARE FIXED ANNUITY BENEFITS.
No. 92 PEDB
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
- -------------------------------------------------------------------------------
TABLE OF CONTENTS
DEFINITIONS Page
Section 1.01 - Annuitant..........................................4
1.02 - Annuity............................................4
1.03 - Annuity Account Value..............................4
1.04 - Annuity Benefit....................................4
1.05 - Cash Value.........................................4
1.06 - Class of Contracts.................................5
1.07 - Code...............................................5
1.08 - Contract...........................................5
1.09 - Contract Date......................................5
1.10 - Contract Year......................................5
1.11 - Contribution.......................................5
1.12 - Divisions..........................................5
1.13 - Eligible Annuity Certain...........................5
1.14 - Employer...........................................5
1.15 - Guaranteed Interest Rate...........................5
1.16 - Normal Form........................................5
1.17 - Period Certain Annuity.............................5
1.18 - Plan...............................................5
1.19 - Processing Office..................................5
1.20 - Retirement Date....................................6
1.21 - Separate Account...................................6
1.22 - Separate Accounts Definitions......................7
1.23 - Substituted Beneficiary............................7
1.24 - Transaction Date...................................7
1.25 - Trust..............................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions......................................7
2.02 - Separate Account Investment
Divisions.......................................8
2.03 - Guaranteed Interest Division.......................8
2.04 - Allocation to Divisions............................8
2.05 - Transfers Among Divisions..........................8
2.06 - Termination of this Contract.......................8
2.07 - Partial Withdrawals................................9
2.08 - Charges for Partial
Withdrawals........................................9
2.09 - Free Corridor Amount...............................9
2.10 - Annual Administrative Charge......................10
2.11 - Death Benefit.....................................10
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit.............................10
3.02 - Election and Commencement of
Annuity Benefits...............................10
3.03 - Amount of Annuity Benefits........................11
3.04 - Payment of Annuity Benefits.......................11
GENERAL PROVISIONS
Section 4.01 - Contract..........................................13
4.02 - Statutory Compliance..............................13
4.03 - Nonforfeitability, Nontransferability
and Assignments...................................13
4.04 - Beneficiary.......................................14
4.05 - Disqualification..................................14
4.06 - Future Contributions..............................14
4.07 - Deferment.........................................14
4.08 - Annual Notice.....................................14
4.09 - Quarterly Notice..................................14
4.10 - Age...............................................14
4.11 - Right of Employer.................................14
No. 92 PEDB Page 2
<PAGE>
OWNER: ABC STATE DEFERRED COMPENSATION PROGRAM
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: JAN 1, 1992
CONTRACT DATE: JAN 1, 1992
RETIREMENT DATE: JAN 1, 2020
INITIAL GUARANTEED INTEREST RATE: 7.50% TO MAR 31, 1992
MINIMUM GUARANTEED INTEREST RATE: 6:00% TO DEC 31, 1992
3.00% AFTER DEC 31, 1992
BENEFICIARY: JANE DOE
FORM NUMBER: 92 PEDB
- -------------------------------------------------------------------------------
TABLE OF GUARANTEED VALUES
ISSUE AGE 38 MALE $1000 ANNUAL CONTRIBUTION
NUMBER OF YEARS GUARANTEED GUARANTEED PAID-UP MONTHLY
SINCE FIRST CONTRIBUTION CASH VALUE ANNUITY AT AGE 65*
- ------------------------ ---------- ------------------
1 976 6.62
2 1,946 16.20
3 2,944 26.67
4 3,998 36.83
5 5,064 46.70
6 6,220 56.28
7 7,362 65.58
8 8,538 74.61
9 9,841 83.38
10 11,204 91.89
11 12,628 100.16
12 14,117 108.18
13 15,673 115.97
14 17,143 123.53
15 18,658 131.18
16 20,217 138.63
17 21,824 145.90
18 23,478 152.80
19 25,213 159.69
20 26,999 166.03
24 (Age 62) 34,697 189.57
27 (Age 65) 41,098 205.49
THE TABLES ILLUSTRATE MINIMUM GUARANTEED VALUES AND ASSUME A HYPOTHETICAL $1,000
CONTRIBUTION MADE ANNUALLY ON THE FIRST OF THE MONTH FOLLOWING THE CONTRACT
DATE. THE GUARANTEED CASH VALUE TABLE REFLECTS AN ANNUAL ADMINISTRATIVE CHARGE
(SEE SECTION 2.10) AND A WITHDRAWAL CHARGE OF UP TO 6% OF THE ANNUITY ACCOUNT
VALUE (SEE SECTION 1.05). THE TABLES ASSUME THAT 100% OF ALL CONTRIBUTIONS AND
EARNINGS ARE ALLOCATED TO AND REMAIN IN THE GUARANTEED INTEREST DIVISION.
YOUR ACTUAL GUARANTEED VALUES MAY DIFFER FROM THOSE SHOWN ABOVE, DEPENDING ON
THE LEVEL AND FREQUENCY OF YOUR CONTRIBUTIONS.
THE GUARANTEED PAID-UP MONTHLY ANNUITY SHOWN ABOVE WILL BE REDUCED BY ANY CHARGE
WE MAKE FOR ANY APPLICABLE TAXES (SEE SECTION 3.04). OTHER FORMS OF ANNUITY
BENEFITS MAY BE AVAILABLE; HOWEVER, ANY ANNUITY BENEFIT CONTRACT ELECTED AS A
SETTLEMENT WILL BE SUBJECT TO A CHARGE (SEE SECTION 3.04).
*ASSUMES FIXED BENEFIT JOINT AND SURVIVOR LIFE ANNUITY (100% CONTINUATION TO
SURVIVOR) WITH JOINT ANNUITANT THE SAME AGE AS THE ANNUITANT.
No. 92 PEDB Page 3
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PART I -- DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means an individual who
participates in a Plan or, if the Plan permits, a beneficiary under the Plan, as
shown on Page 3 of this Contract and on whose behalf this Contract has been
purchased and is maintained.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the terms of the Plan.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The Term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account pursuant to Sections 2.02 and 2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.17 and 3.01) refer to monthly payments to be made under an
Annuity Benefit. You may elect to have the Annuity Benefit paid at other
intervals, such as quarterly, semi-annually, or annually, instead of monthly.
You may elect this at the time you elect the Annuity Benefit form as described
in Section 3.02; in that event, all references in this Contract to monthly
payments will be deemed to mean payments at the frequency you elect, subject to
our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less any applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where:
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Account Value over (ii) the
Free Corridor Amount defined in Section 2.09, and
(b) is the excess, if any, of (i) 8% of the total Contributions made on the
Annuitant's behalf during the current Contract Year and the nine preceding
Contract Years over (ii) the cumulative total of any prior partial
withdrawal charges made pursuant to Section 2.08.
The above statements notwithstanding, we reserve the right to modify or waive
any early withdrawal charges in order to comply with any applicable state or
local requirements. Any such modification or waiver will apply equally to all
Annuitants under a Plan subject to such a state or local requirement.
However, notwithstanding the above, if the Annuitant is age 60 or older on the
Contract Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of
the excess of the Annuity Account Value over the Free Corridor Amount.
A withdrawal charge will not apply, which means the Cash Value will equal the
Annuity Account Value upon any of the following occurrences:
(i) the Annuitant's completion of at least five Contract Years and the
Annuitant's attainment of age 59 years and 6 months, or
(ii) the Annuitant's completion of at least twelve Contract Years, or
(iii) a request is made for a refund of a Contribution in excess of the amount
that may be contributed under Section 457 of the Code within one month of
the date on which the Contribution is made, or
(iv) the Annuitant's completion of at least five Contract Years, the
Annuitant's attainment of age 55, and the receipt by us of a properly
completed settlement election form in order to apply the Annuity Account
Value to purchase an Eligible Annuity Certain, defined in Section 1.13, or
(v) the Annuitant's completion of at least three Contract Years and the
receipt by us of a properly completed settlement election form in order to
apply the Annuity Account Value to purchase a Period Certain Annuity,
defined in Section 1.17, where the certain period of such annuity is at
least ten years, or
(vi) the receipt by us of a properly completed settlement election form in
order to apply the Annuity Account Value to purchase a Period Certain
Annuity, defined in Section 1.16, where the certain period of such annuity
is at least 15 years, or
No. 92 PEDB Page 4
<PAGE>
(vii) the Annuitant dies and a death benefit is payable to the beneficiary.
The above statements notwithstanding, after the completion of a period agreed
upon by the Employer and us not to exceed five Contract Years from the date as
of which an agreement is entered into between the Employer and us ("period") and
after the completion of each successive period, any assets of the plan which are
currently invested in this Contract will be transferred as soon as
administratively practicable to a successor funding agency designated by the
Employer unless, not later than 7 days before the date on which a transfer would
otherwise occur, the Employer, in accordance with the procedures specified in
Section 9003.2 of the Regulations of the Deferred Compensation Board of the
State of New York, notifies us to renew that agreement. Such funds will be
transferred in a single sum and no early withdrawal charges, surrender charges,
market value adjustments or other fees will be applied in connection with such a
transfer. We will not be responsible for the validity of any certification made
by the Employer.
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" with respect to you means
the twelve month period beginning on (i) the Contract Date, and (ii) each
anniversary thereafter, unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made to us
pursuant to the terms of the Plan to this Contract. We are under no obligation
to accept any Contribution less than $20.00.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following divisions described in this
Contract:
(i) the Guaranteed Interest Division, and
(ii) the Investment Divisions of the Separate Account.
SECTION 1.13 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
a Period Certain Annuity issued by us which extends beyond the Annuitant's
attainment of age 59 years and 6 months and does not permit any prepayment of
the unpaid principal (that is, no withdrawal or single sum payment) prior to
your attainment of age 59 years and 6 months.
SECTION 1.14 EMPLOYER. The term "Employer" means one of the following types of
entity which is eligible to adopt, has adopted, and maintains a Plan: (i) a
State, a political subdivision of a State, or an agency or instrumentality of a
State or political subdivision of a State, or (ii) any other organization (other
than a governmental unit) exempt from tax under the Code which has adopted and
maintains a Plan for a select group of management or highly compensated
employees within the meaning of the Employee Retirement Income Security Act of
1974, as amended. The Employer is the Owner of and beneficiary under this
Contract.
SECTION 1.15 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrued on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on Page 3 of
this Contract. Section 2.03 describes the determination of the rate to apply
thereafter.
SECTION 1.16 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means a Period Certain Annuity.
SECTION 1.17 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
the payments as a single sum payment with the remainder paid in monthly annuity
payments). Any installment payments shall be made over a period which does not
exceed your remaining life expectancy.
SECTION 1.18 PLAN. The term "Plan" means a program constituting an "Eligible
Deferred Compensation Plan" meeting the requirements of Section 457(b) of the
Code and applicable Treasury Regulations which is established and maintained by
an Employer for the benefit of individuals performing services for the Employer
and their beneficiaries.
SECTION 1.19 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P.O. Box 2996, GPO, New York, New York 10116, or such
other location as we shall designate by at advance written notice to the
Employer or the Plan's trustee, as applicable.
No. 92 PEDB Page 5
<PAGE>
SECTION 1.20 RETIREMENT DATE. The term "Retirement Date" means the date on which
the Annuitant attains the retirement age as shown on Page 3 of this Contract.
Before the Retirement Date the Employer may elect to change the Retirement Date
to another Retirement Date, which may be any date after the filing of the
election (other than the 29th, 30th, or 31st day of any month). No Retirement
Date shall be earlier than the Retirement Date provided under the Plan nor shall
it be later than the date the Annuitant attains age 70 years and 6 months. Any
election for such change must be made in writing by you and shall not take
effect until received by us at the Processing Office.
SECTION 1.21 SEPARATE ACCOUNT. The term "Separate Account" means Separate
Account A which is organized as a unit investment trust, a type of investment
company. We established the Separate Account and it is maintained in accordance
with the laws of New York State. Realized and unrealized gains and losses from
the assets of the Separate Account are credited to or charged against it without
regard to our other income, gains or losses. Assets are put in the Separate
Account to support this Contract and other variable annuity contracts and
certificates. Assets may be put in the Separate Account for other purposes, but
not to support contracts or policies other than variable annuities or life
variable insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
such Trust. We reserve the right to change the designated trust or investment
company or to add designated trusts or investment companies. The Investment
Divisions available are the Stock Division, the Money Market Division, the
Balanced Division and the Aggressive Stock Division. The Guaranteed Interest
Division is not part of the Separate Account, but rather is an asset of our
General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may relay conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any other
form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to, or
remove Investment Divisions (or sub-divisions of Investment Divisions)
from the Separate Account (the term "Investment Division" in this Contract
shall then refer to any other Investment Division in which the assets, of
a class of contracts to which this Contract belongs, were placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
class of contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you and the Annuitant will be notified of
such exercise, as required by law.
No. 92 PEDB Page 6
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Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for applicable tax
charges) at a rate not to exceed 1.49% per year for each of the Stock, Money
Market and Balanced Divisions, and 1.34% per year for the Aggressive Stock
Division, for financing accounting, death benefits, mortality risk, expenses and
expense risk. The charge shall be made i accordance with Subsection (c) of the
Net Investment Factor provision in Section 1.22. The relative proportion of
these charges may be modified. This daily charge, plus the investment advisory
fee charges and direct operating expense charges of the Trust, shall not exceed
a total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract.
SECTION 1.22 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share value
reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
taking into account any amounts allocated or withdrawn for that Valuation
Period).
(c) is the daily Separate Account charge for the expenses of this Contract,
times the number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where Contributions made on the Annuitant's behalf are
invested and which is used in determining the amount in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for that Investment Division for such Valuation Period.
SECTION 1.23 SUBSTITUTED BENEFICIARY. The term "Substituted Beneficiary" refers
to the beneficiary designated under the Plan by the Annuitant to receive death
benefits payable under the Plan, where the Employer has elected, pursuant to
Section 4.04 to designate such person to receive the death benefit payable under
Section 2.11.
SECTION 1.24 TRANSACTION DATE. The term "Transaction Date" means the business
day we received a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone, as
described in Section 2.05, the Transaction Date is the business day the
telephone transaction is received.
SECTION 1.25 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
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PART II -- ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. You are to make Contributions from time to time on
such dates and in such amounts as you determine pursuant to the terms of the
Plan. Contributions will be allocated to the Divisions in accordance with the
instructions received on the applications, unless later charged.
Each Contribution received by us on the Annuitant's behalf will, before its
allocation under this Contract, be reduced by the amount of any applicable tax
charge, as determined by us.
If the Plan permits, we will accept transfers made from another eligible
deferred compensation plans meeting the requirements of Section 457 of the Code
or other funds invested under the Employer's Plan.
No. 92 PEDB Page 7
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SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to, or withdrawn or transferred from, an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be with the number of Accumulation Units determined by dividing said amount by
the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units in an Investment
Division on any date is equal to (i) the sum of any Accumulation Units that have
been allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation
Units that have been withdrawn pursuant to Sections 2.07, 2.08 or 2.10 or
transferred from the Investment Division pursuant to Section 2.05. The amount in
an Investment Division on any date is equal to the product of (i) the number of
Accumulation Units in the Investment Division on that date and (ii) the
Accumulation Unit Value for the Investment Division for the Valuation Period
which includes that date.
Participation in the Separate Account under the terms of this Contract
terminates on the earliest of (i) Election and Commencement of Annuity Benefits
pursuant to Section 3.02, (ii) receipt of due proof of the Annuitant's death or
(iii) Termination of this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 or Section 2.10 plus the amount of any interest accrued
but not allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Sections 2.07, 2.08 or 2.10 or
transferred from the Guaranteed Interest Division pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date
pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under the terms of this
Contract terminates on the earliest of (i) Election and Commencement of Annuity
Benefits pursuant to Section 3.02, (ii) receipt of due proof of the Annuitant's
death or (iii) Termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction for any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date. If your Plan permits, and you
provide us with advance written instructions to do so, we will accept allocation
instructions directly from the Annuitant.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.03, (v) upon termination of this Contract pursuant to Section 2.06 and (vi)
upon the Annuitant's death pursuant to Section 2.11.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request or through
the use of a touch tone telephone, transfer all or part of the amount you have
in a Division to one or more of the Divisions as follows: (1) amounts in the
Guaranteed Interest Division, Stock Division, Balanced Division and Aggressive
Stock Division may be transferred among such Divisions; and (2) amounts in the
Money Market Division may be transferred to other Divisions. Written
authorization for touch tone telephone initiated transfers is only required when
authorization for telephone transfers is requested. Upon advance written notice
to you, we reserve the right to discontinue the acceptance of transfer requests
through the use of a touch tone telephone. If your Plan permits, and you provide
us with advance written instructions to do so, we will accept transfer
instructions directly from the Annuitant. All transfers will be made on the
Transaction Date and will be subject to our rules in effect at the time of
transfer. With respect to the Investment Divisions, the transfer will be made at
the Accumulation Unit Value next computed after the Transaction Date. No
transfers are permitted to the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. Subject to any restrictions under the
terms of the Plan, you may elect, by written notice, to terminate this Contract.
We will determine the Cash Value under this Contract as of the Transaction Date.
If this Contract is terminated, surrendered or exchanged prior to the
Annuitant's Retirement Date, any applicable tax charges we have paid may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on terminations, unless a change in applicable law has occurred with
respect to this Contract.
Cash Value payments may be deferred by us in accordance with the provisions of
Section 4.07.
No. 92 PEDB Page 8
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Subject to the terms of the Plan, we reserve the right to pay the Annuity
Account Value under this Contact and terminate this Contract if (i) you make no
Contributions on the Annuitant's behalf during the last three completed Contract
Years, or (ii) you make a partial withdrawal that would result in the
Annuitant's Annuity Account Value falling below $500. We also reserve the right
to terminate this Contract if no Contributions have been made within 120 days
from the Contract Date shown on Page 3 of this Contract.
We will pay the Cash Value or Annuity Account Value, as applicable, directly to
you unless you give us written notice at the time of termination that you
request us to make payment to the Annuitant or another person, and that such
payment is permissible under the Plan.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions under this Contract and the Annuity Account Value
with respect to this Contract shall be zero. We will be released from any and
all liability for payments with respect to the Contributions from which the
Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any restrictions under the terms of
the Plan, you may elect by written notice to us to make a partial withdrawal
from the Divisions.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to you. The amount paid plus any withdrawal
charge applicable pursuant to Section 2.08 will be withdrawn from the amounts
you have in the Divisions. Unless instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts that you have in such Divisions.
We will pay the Cash Value or Annuity Account Value, as applicable, directly to
you unless you give us written notice at the time of the withdrawal that you
request us to make payment to the Annuitant or another person, and that such
payment is permissible under the Plan.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise you and reserve the right to pay the
Annuity Account Value to you, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE FOR PARTIAL WITHDRAWALS: There will be no charge for a
partial withdrawal if (a) the amount of partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.09 or (b) the Cash
Value is equal to the Annuity Account Value, pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount in proportion to the amount you have in
them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on the
your behalf during the current Contract Year and the nine preceding
Contract Years over (ii) the cumulative total of any prior partial
withdrawal charges made pursuant to this Section
If withdrawals are made from this Contract prior to the Annuitant's Retirement
Date, any applicable tax charges we have paid with respect to this Contract may
be deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to this Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means if the
Annuitant has completed three Contract Years or attained age 59 years and 6
months an amount equal to the excess, if any, of (i) 10% of the sum of the
Annuity Account Value on the Transaction Date over (ii) cumulative prior
withdrawals made pursuant to Section 2.07 in the current Contract Year. If the
Annuitant has not completed three Contract Years or attained age 59 years and 6
months, the Free Corridor Amount is zero.
No. 92 PEDB Page 9
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SECTION 2.10 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $25,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts you have in the
Divisions.
If the Annuity Account Value is $25,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
If the Annuity Account Value is less than $25,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.02
or (b) the date of termination of this Contract pursuant to Sections 2.06 or
2.11, we will prorate the Annual Administrative Charge applicable to the
completed portion of the current Contract Year and withdraw such amount in lieu
of the Annual Administrative Charge described in this Section for the applicable
part of that Contract Year.
SECTION 2.11 DEATH BENEFIT. Upon receipt of due proof of the Annuitant's death,
we will pay to you as beneficiary in a single sum the amount of the death
benefit. You may change the beneficiary or the payment method of the death
benefit as permitted by the Plan, pursuant to Section 4.04. The amount of the
death benefit is equal to the greater of (i) the Annuity Account Value and (ii)
the minimum death benefit. Such minimum death benefit is the sum of all
contributions made by you pursuant to Section 2.01 (before reduction for any
applicable tax charge) less any withdrawals made pursuant to Section 2.07. Any
such withdrawal will reduce the minimum death benefit (as adjusted by any
previous such withdrawal) by an amount which is in the same proportion as the
amount that was withdrawn is to the Annuity Account Value. If, in accordance
with the provisions of Section 2.01, the cash value of another annuity contract
issued by us or one of our affiliated or subsidiary life insurance companies,
which provides for a death benefit before retirement equal to the greater of the
contract cash value or an alternate amount based on premiums paid or
contributions made under the annuity contract, is transferred to this Contract,
such cash value or alternative amount as of the date of transfer will be
included in the "sum of all Contributions" in lieu of the amount of cash value
transferred for purposes of the death benefit under this Contract.
We will pay the death benefit to the beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to the
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value under this Contract shall be zero. We will be released
from any and all liability for payments with respect to the Contributions from
which the Annuity Account Value arose.
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PART III -- ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
with respect to the payee pursuant to Section 3.03.
SECTION 3.02 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of your
Retirement Date, provided the Annuitant is then living, the Annuity Account
Value shall be applied to provide the Normal Form of Annuity Benefit, unless you
elect to receive the Cash Value in a single sum, subject to our rules then in
effect and any other applicable requirements under the Code.
Notice and election forms will be provided to you not more than six months prior
to the Retirement Date. (On your prior written request we will also provide
notice and election forms directly to the Annuitant).
If you elect prior to the Annuitant's Retirement Date to terminate this Contract
pursuant to Section 2.06, an election may be made to receive an Annuity Benefit
in lieu of the Cash Value.
If your Plan permits and you provide us written instructions to do so in advance
of payment, we will make payment of the Cash Value, Annuity Benefits or partial
withdrawals directly to the Annuitant, Substituted Beneficiary or other payee
designated by you.
We will have the right to require you to furnish pertinent facts and
determinations to provide an Annuity Benefit, and will be fully protected in
relying on such information and need not inquire as to the accuracy or
completeness thereof.
No. 92 PEDB Page 10
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The applicable Annuity Benefit will be provided pursuant to Sections 3.03 and
3.04.
SECTION 3.03 AMOUNT OF ANNUITY BENEFITS. If you elect pursuant to the first or
third paragraph of Section 3.02 to have paid an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be the Cash
Value.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any applicable taxes on annuity considerations, as we determine. If we have
previously deducted charges for applicable taxes from Contributions as provided
in Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to this Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, this Contract will be governed by our
supplementary contract then in effect.
If an amount is applied to provide an Annuity Benefit the amount to be applied
will, in addition to any tax charge reduction, be reduced by an administrative
charge. The amount of such charge will be determined from time to time in
accordance with our general practices applicable on a uniform basis to all
contracts of the same type as this Contract.
After the application of an amount to provide an Annuity Benefit the Annuity
Account Value shall be zero.
The Table of Guaranteed Annuity Payments set forth the minimum amount of monthly
income that $1,000 of Annuity Account Value will provide under this Contract, as
indicated, as a Period Certain Annuity. The amounts of income provided under the
Fixed Annuity Benefit payable on the Period Certain Annuity are based on 3.5%
interest. We may change the monthly income amounts contained in the Table of
Guaranteed Annuity Payments and the basis for determining such amounts, for new
Annuitants, by at least 90 days advance notice to the Owner and by an amendment
to this Contract.
Amounts required for periods certain not shown in the Table will be calculated
by us on 3.5% interest.
SECTION 3.04 PAYMENT OF ANNUITY BENEFITS. Pursuant to Sections 457(d) and
401(a)(9) of the Code, and subject to the terms of the Plan, the entire interest
of the Annuitant will be distributed or begin to be distributed, no later than
the first day of April following the calendar year in which the Annuitant
attains 70 years and 6 months ("Required Beginning Date"). The entire interest
may be distributed, as elected pursuant to the Plan and this Contract, over (a)
the life of the Annuitant, or the lives of the Annuitant and a designated
beneficiary, or (b) a period certain not extending beyond the Annuitant's life
expectancy, or the joint and last survivor life expectancy of the Annuitant and
a designated beneficiary. Distributions must be made in periodic payments at
intervals of no longer than one year. In addition, payments must be either
nonincreasing or they may increase only as provided in Q & A F-3 of Section
1.401(a)(9)-1 of the Proposed Treasury Regulations, or any successor Regulation
thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental death
benefit requirements of Section 401 (a)(9)(G) of the Code, and applicable
Treasury Regulations, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.04, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless otherwise elected prior to the time distributions are required to begin,
those life expectancies shall be recalculated annually. Such election shall be
irrevocable and shall apply to all subsequent years. The life expectancy of a
non-spouse beneficiary may not be recalculated. Instead, life expectancy will be
calculated using the attained age of such beneficiary during the calendar year
in which the Annuitant attains age 70 years and 6 months, and payments for
subsequent years shall be calculated based on such life expectancy reduced by
one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If the Annuitant dies after distribution of the interest described in the first
paragraph of this Section has begun, the remaining portion of such interest will
continue to be distributed at least as rapidly as under the method of
distribution being used prior to the Annuitant's death.
If the Annuitant dies after distribution of the interest described in the first
paragraph of this Section begins, distribution of the entire interest shall be
completed no later than December 31 of the calendar year containing the fifth
anniversary of the Annuitant's death, except to the extent that an election is
made to receive death benefit distributions in accordance with (1) or (2) below:
(1) If the Annuitant's interest is payable to a designated beneficiary, then
the entire interest may be distributed over a period certain not greater
than the life expectancy of the designated beneficiary. Such distributions
must commence on or before December 31 of the calendar year immediately
following the calendar year of the Annuitant's death. If the designated
beneficiary is not the Annuitant's surviving spouse a Period Certain
Annuity Benefit cannot exceed 15 years, (even if life expectancy is greater
than 15 years).
No. 92 PEDB Page 11
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(2) If the designated beneficiary is the Annuitant's surviving spouse, the date
distributions that are required to begin in accordance with (1) above shall
not be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of the Annuitant's death or (B)
December 31 of the calendar year in which the Annuitant would have attained
age 70 years and 6 months.
For purposes of determining the "period certain" referred to in the immediately
preceding paragraph, life expectancy is computed by use of the expected return
multiples in Tables V and VI of Treasury Regulation Section 1.72-9. For purposes
of distributions beginning after the Annuitant's death, unless otherwise elected
by the surviving spouse by the time distributions are required to begin, life
expectancies shall be recalculated annually. Such election shall be irrevocable
by the surviving spouse and shall apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies shall be calculated using
the attained age of such beneficiary during the calendar year in which
distributions are required to begin pursuant to this Section, and payments for
any subsequent calendar year shall be calculated based on such life expectancy
reduced by one for each calendar year which has elapsed since the calendar year
life expectancy was first calculated.
Distributions under this Section are considered to have begun if distributions
are made because the Required Beginning Date was reached, or, if prior to the
Required Beginning Date, distributions irrevocably commence to an individual
over a period permitted and in an annuity form acceptable under Section
1.401(a)(9) of the Proposed Treasury Regulations or any successor Regulation
thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under this Contract was based on information that is
subsequently found to be incorrect, the benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by us will be charged against and
underpayments will be added to any payments thereafter falling due under this
Contract with respect to the payee, affecting as many such payments as are
necessary to correct the overpayment or underpayment. Our liability, with
respect to a payee, is limited to the correct information and the actual amounts
used to provide the benefits then in force with respect to the payee under this
Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under this Contract is physically or mentally incompetent to receive
such payment or is a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments (in the case of a minor, at a rate not exceeding $200 a month) to
such other person or institution, and will thereupon be fully discharged from
all liability with respect thereto.
Pursuant to Section 3.02, upon the election of a Period Certain Annuity, you (or
the Annuitant, if you have advised us in writing that it is permitted under the
terms of the Plan) may designate (with the right to change such designation) a
payee to receive any payments that may become due after the death of the person
or persons upon whose life or lives the income may depend.
Subject to the terms of the Plan, the payee may designate (with the right to
change such designation and without the concurrence of any other person) a
person or persons to receive any payments or installments payable after such
payee's death, if the absence of such a designation would result in a single sum
payment to such payee's estate in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.02.
No. 92 PEDB Page 12
<PAGE>
TABLE OF GUARANTEED ANNUITY PAYMENTS
FIXED ANNUITY BENEFIT PAYABLE ON THE
PERIOD CERTAIN ANNUITY
(Minimum Monthly Income per $1,000 of Annuity Account Value)
PERIOD CERTAIN PERIOD CERTAIN MONTHLY INCOME
(IN YEARS) MONTHLY INCOME (IN YEARS)
- ----------------------------------------------------------------------------
1 $84.65 11 $ 9.09
2 $43.06 12 $ 8.46
3 $29.19 13 $ 7.94
4 $22.27 14 $ 7.49
5 $18.12 15 $ 7.10
6 $15.35 16 $ 6.76
7 $13.38 17 $ 6.47
8 $11.90 18 $ 6.20
9 $10.75 19 $ 5.97
10 $ 9.83 20 $ 5.75
- ----------------------------------------------------------------------------
Any election, change, revocation, or designation shall be made, and will take
effect, on the Transaction Date, in the same manner as a change of beneficiary
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
- -------------------------------------------------------------------------------
PART IV -- GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the terms of this Contract alone will govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person.
This Contract is subject to the rules and regulations of the Deferred
Compensation Board of the State of New York, and said rules and regulations are
made a part thereof.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend the terms of
this Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform this Contract to reflect changes in the Code,
applicable Treasury Regulations, or in regulations or published rulings of the
Internal Revenue Service so that this Contract will continue to be an Annuity
under a qualified plan.
SECTION 4.03 NONFORFEITABILITY, NONTRANSFERABILITY AND ASSIGNMENTS. The entire
interest under this Contract is nonforfeitable except by surrender to us.
Any interest under the terms of this Contract may not be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
us.
No amount payable under the terms of this Contract may be assigned or commuted,
unless specifically provided for under the terms of this Contract, or encumbered
by the payee, and, to the extent permitted by law, no such amount will in any
way be subject to any claim against such payee.
No. 92 PEDB Page 13
<PAGE>
SECTION 4.04 BENEFICIARY. You, as beneficiary, are entitled to receive any death
benefit payable under this Contract pursuant to Section 2.11. Upon the
Annuitant's death you may, by written request to our Processing Office, at any
time up to and including provision of due proof of such death, change the
beneficiary designation for the Section 2.11 death benefit from you to the
Substitute Beneficiary.
Subject to the terms of the Plan, the Substitute Beneficiary may elect to
receive the death benefit payable under Section 2.11 in the form of an Annuity
Benefit rather than as a single sum. Any such election must meet the minimum
distribution rules of Sections 457(d) and 401(a)(9) of the Code and applicable
Treasury Regulations, as described in Section 3.05.
SECTION 4.05 DISQUALIFICATION OF PLAN OR CONTRACT. In the event that the Plan
fails to qualify as an Eligible Deferred Compensation Plan under Section 457 of
the Code and applicable Treasury Regulations, we reserve the right, upon
receiving notice of such fact, to transfer the Annuity Account Value under this
Contract to another annuity contract issued by us or one of our affiliated or
subsidiary life insurance companies on the life of the Annuitant, or to
terminate this Contract and pay to you the Annuity Account Value less a
deduction for applicable taxes, solely at our option.
In the event that this Contract fails to qualify as an Annuity as described in
Section 1.02, we will have the right, upon receiving notice of such fact, to
terminate this Contract and pay to you the Annuity Account Value less a
deduction for the appropriate part attributable to you of any income tax payable
by you which would not have been payable if you had an Annuity.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to you, we reserve the
right to limit Contributions under this Contract if required by law.
SECTION 4.07 DEFERMENT. Payment of death benefit and payment of any portion of
the Annuity Account Value (less any applicable withdrawal charge) will be made
within seven days after the Transaction Date. Payments from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payments in order to protect
persons with interests in the Investment Divisions. We can defer payment of any
portion of the Annuity Account Value in the Guaranteed Interest Division for up
to six months while the Annuitant is living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year, we will furnish
you with a notice showing the following:
(1) the amount in the Guaranteed Interest Division,
(2) the total number of Accumulation Units in the Stock Division, Balanced
Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Value,
(4) the amount in the Stock Division, Balanced Division, Aggressive Stock
Division and Money Market Division,
(5) the Cash Value, and
(6) the amount of death benefit payable with respect to the Annuitant.
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
SECTION 4.09 QUARTERLY NOTICE. At least once during each calendar quarter up to
and including the Retirement Date, we will furnish you with a notice showing the
Annuity Account Value in the Guaranteed Interest Division, Stock Division,
Aggressive Stock Division and Money Market Division.
SECTION 4.01 AGE. If the Annuitant's age has been misstated, any benefits will
be those which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
SECTION 4.11 OWNERSHIP RIGHT TO EMPLOYER. Notwithstanding any other provision of
the terms of this Contract, until amounts under this Contract are distributed or
made available to the Annuitant or the Annuitant's beneficiary in accordance
with the terms of this Contract and the terms of the Plan, this Contract remains
solely the property of the Employer subject only to claims of the Employer's
general creditors. This Section shall be construed and administered in
accordance with Section 457(b)(6) of the Code and the regulations thereunder.
No. 92 PEDB Page 14
- --------------------------------------------------------------------------------
APPLICATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
PROCESSING OFFICE: INDIVIDUAL ANNUITY CENTER, P.O. BOX 2996,
NEW YORK, NEW YORK 10116-2996
QUALIFIED VARIABLE ANNUITY CONTRACT APPLICATION FOR:
EQUITABLE'S INDIVIDUAL QUALIFIED DEFERRED VARIABLE ANNUITY
- --------------------------------------------------------------------------------
TYPE OF PURCHASE (Complete One Plan Only)
A. |_| TSA PUBLIC SCHOOL (GV-PS-I)
B. |_| TSA 501(C)(3) ORGANIZATION (GV-501-I)
C. |_| TSA University (GV-PS-U-I)
D. |_| IRA Individual (Including IRA to IRA transfers) (GV-IRA 4971)
E. |_| IRA Unit Billed (Including IRA to IRA transfers) (GV-IRA 4971)
F. |_| IRA QUALIFIED PLAN ROLLOVER-- (QP IRA) (Distribution from a Qualified
Plan) (GV-IRA 4971-71)
G. |X| EDC (Public Employee Deferred Compensation) (GV-EDC 4991)
H. |_| EDC (Tax Exempt Organization) (GV-EDC 4991-SU-080)
I. |_| SEP (Simplified Employee Pension) (GV-SEP 4981)
J. |_| SARSEP (Salary Reduction SEP) _________________________________________
K. |_| CORPORATE TRUSTEED (GV-CORP 4941-41)
L. |_| KEOGH/HR-10 TRUSTEE (GV HR-10 4911-11)
(trustee owned)
M. | | KEOGH/HR-10 (GV-HR-10 4911)
(not trustee owned) (issued to existing units only)
- --------------------------------------------------------------------------------
DO NOT COMPLETE THIS SECTION IF 1.D OR 1.F CHECKED ABOVE
2. EMPLOYER/PLAN NAME
|A|B|C|_|C|O|M|P|A|N|Y|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
3. |_| EXISTING UNIT NO. |_|_|_|_|_|_|-|_|_|_|
|_| NEW UNIT | | | | | | |-| | | |
(FOR NEW UNIT BILLED IRA, EDC, TSA, SEP, SARSEP, OR TRUSTEED PLANS. FORM
983-135B IS REQUIRED)
- --------------------------------------------------------------------------------
4. PROPOSED ANNUITANT Print name to appear on Contract.
|J|O|H|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|D|O|E|_|_|_|_|_|
FIRST MIDDLE INITIAL LAST
A. |X| MR. |_| MRS. |_| MS. |_| OTHER ____
B. Date of Birth: Year 1954 Month JANUARY Day 27
---- ------- --
C. Age at Nearest Birthday: 38 D. |X| Male |_| Female
----
E. Annuitant's Mailing Address: F. State of Residence: N.J.
----
No., St. |1|7|_|E|L|M|_|S|T|R|E|E|T|_|_|_|_|_|_|_|_|_|_|_|_|
City |A|N|Y|T|O|W|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |U|S| Zip Code |0|2|0|0|0|-|0|0|0|1|
G. Telephone Number (101) 222 - 3456 |X| Home |_| Work
H. Social Security No. (Required): |1|2|3|-|4|5|-|6|7|8|9|
I. Are you associated with or employed by a member of National
Association of Securities Dealers, Inc.(NASD)? |_| Yes |X| No
5. OWNER (Print Name) -- If Trusteed or EDC Plan Print Name of Owner, for all
other Markets Print Name of Annuitant.
JOHN DOE
-----------------------------------------------------------------------------
a. Title ____________________________________________________________________
6. RETIREMENT AGE 65
---------------------------------------------------------------
7. BENEFICIARY -- Include FULL NAME and RELATIONSHIP to Annuitant. (For Death
Benefit upon Annuitant's death before Retirement Date.) (BENEFICIARY MUST
BE THE OWNER FOR EDC PURCHASES AND FOR MOST TRUSTEED PLANS.)
ABC STATE DEFERRED COMPENSATION PROGRAM - EMPLOYER
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
8. CONTRIBUTION ALLOCATION
Guaranteed Interest Division %
-----
Stock Division %
-----
Money Market Division %
-----
Balanced Division %
-----
Aggressive Stock Division %
-----
(PERCENTAGES IN WHOLE NUMBERS) Total 100%
9. CONTRIBUTIONS (NOT REQUIRED FOR 1.F)
A. Reminder Notice (Billing) Required |_| Yes | | No
IF YES, COMPLETE B-C-D-E
B. REMINDER DATE Required for Individual IRA or otherwise must agree
with existing unit or attached 983-135B. MONTH _________ DAY __________
C. REMINDER FREQUENCY
|_| Annual |_| Semi-Annual
|_| Quarterly |_| Monthly
Available for TSA, EDC, SARSEP AND CORPORATE TRUSTEED AND UNIT BILLED IRA
ONLY:
|_| Semi-Monthly |_| Bi-Weekly
D. REMINDER AMOUNT $_________________________________
E. BILLING MONTHS TO BE EXCLUDED - TSA ONLY
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
10.EXPECTED FIRST CONTRACT YEAR
Contribution. $1000
----------------------------------------------------------------
IF AN ADVANCED BILLING AND/OR CONTRACT DATE ARE REQUESTED, COMPLETE #9B
AND #12.
- --------------------------------------------------------------------------------
(FOR PROCESSING OFFICE USE)
Unit Name ___________________________ Reminder Date ___________________________
Cert. or App# _______________________ Amendment Required_______________________
EDC Emp. Add. _______________________ Emp. Fed. ID# ___________________________
Frequency ___________________________ Contract Date ___________________________
- --------------------------------------------------------------------------------
Receipt Date Batch # Inquiry # Processor
- --------------------------------------------------------------------------------
180-1000
<PAGE>
- --------------------------------------------------------------------------------
10. Did you receive the Separate Account Prospectus? |X| Yes |_| No
Date shown on Prospectus January 1, 1992
----------------------------------------------------
Date of any supplement to Prospectus _______________________________________
11. Items (a) through (f) are to be answered by the annuitant. We are
required by the NASD to ask these questions.
(a) Name of Employer: ABC Company
------------------------------------------------------
(b) Address of Employer:
10 Main Street
---------------------------------------------------------------------------
Anytown, NJ
---------------------------------------------------------------------------
(c) Occupation Sales
-------------------------------------------------------------
(d) Assuming the contract applied for will be issued, will any existing
insurance or annuity be replaced or changed (or has it been)?
| | Yes |X| No
(e) Estimated Family Annual Income $100,000
----------------------------------------
(f) Estimated Net Worth $250,000
-----------------------------------------------------
(g) Investment Objective: |_| Income |X| Income & Growth
|_| Aggressive Growth |_| Growth |_| Safety of Principal
12. SPECIAL INSTRUCTIONS
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
13. Amount paid with this form: $1000
(If a check is submitted with this request, no advanced Contract Date is
permitted.) BACKDATING IS NOT PERMITTED.
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the certificate is not issued. The Contract Date
will be the date of receipt by Equitable of this application, properly signed
and completed, and Contribution at Equitable's Processing Office.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGREEMENT
All information and statements furnished in this application are true and
complete to the best of my knowledge and belief. I understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations.
IT IS UNDERSTOOD THAT THE ANNUITY ACCOUNT VALUE ATTRIBUTABLE TO ALLOCATIONS TO
THE INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT AND VARIABLE ANNUITY BENEFIT
PAYMENTS MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
UNDER THE PENALTIES OF PERJURY I (WE) CERTIFY THAT THE SOCIAL SECURITY NUMBER(S)
OR TAX IDENTIFICATION NUMBER(S) PROVIDED ON THIS FORM IS (ARE) TRUE, CORRECT AND
COMPLETE.
- --------------------------------------------------------------------------------
LAWS IN YOUR STATE MAY MAKE IT A CRIME TO FILL OUT AN INSURANCE OR ANNUITY
APPLICATION WITH INFORMATION YOU KNOW IS FALSE OR TO LEAVE OUT MATERIAL FACTS.
- --------------------------------------------------------------------------------
X__________________________________ Date_______ City __________ State __________
Signature of Annuitant
X__________________________________ Date_______ City __________ State __________
Signature of Authorized Individual (REQUIRED FOR EDC AND
TRUSTEED) OR OWNER
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGENT'S SECTION
Will any existing insurance or annuity be replaced or changed (or has it been),
assuming the Contract will be issued? | | Yes | | No
|_| I (we) certify that a prospectus for the Contract has been given to the
proposed Annuitant and that no written sales materials other than those approved
by Equitable have been used.
EQUI-VEST issues must adequately reflect the commission interest of all Agents
on previous contracts.
- --------------------------------------------------------------------------------
Print Agent's Name(s) Initial of Agent Agent Agency District Agent's
(Service Agent first) Last Name Number % Code Manager Code Signature
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FOR AGENCY COMPLIANCE FILE: INITIALS OF AGENCY EQS___ Date ___ District EQS ___
Date ____
- --------------------------------------------------------------------------------
(FOR ASU USE)
ASU Code and App. No. __________________________________________________________
ASU Rec'd. _____________________________________________________________________
Date to Proc. Off. ________________________________________________ Campaign |_|
Agent(s) shown above is Equity Qualified and is licensed in the state where the
request is signed. Above Agent information verified by ASM (Registered Rep)
- --------------------------------------------------------------------------------
Application reviewed by ________________________________________________________
- --------------------------------------------------------------------------------
180-1000
<PAGE>
OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28, 1992
RETIREMENT DATE: JAN 1, 2020
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O. New York,
New York 10116
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division (referred to in this Contract as
the "Investment Divisions") or to the Guaranteed Interest Division, in
accordance with Sections 2.02, 2.03, and 2.04 as directed by you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide the
Annuitant with an Annuity Benefit or a Cash Value benefit if the Annuitant
is then living, and
o TO PROVIDE the Annuitant with the other rights and benefits of this
Contract.
This is the entire Contract. In this Contract "we", "our", and "us" mean The
Equitable Life Assurance Society of the United States ("Equitable"). "You" and
"your" mean the Annuitant at the time a right is exercised by the Annuitant.
TEN DAYS TO EXAMINE CONTRACT - You may cancel this Contract by returning it to
us within ten days after receipt of it. Upon such cancellation, we will refund
any Contribution made to us under this Contract.
/s/ Molly K. Heines /s/ Richard H. Jenrette
Vice President and Secretary Chairman of the Board and
Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.22 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92 QPIA
<PAGE>
The Contract is issued in consideration of the payment to us of the
Contributions made under the terms of the Contract.
The provisions on the following pages are part of this Contract. A copy of the
application is incorporated in and made part of this Contract.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
DEFINITIONS Page
SECTION 1.01 - Annuitant.........................................4
1.02 - Annuity...........................................4
1.03 - Annuity Account Value.............................4
1.04 - Annuity Benefit...................................4
1.05 - Cash Value........................................4
1.06 - Class of Contracts................................4
1.07 - Code..............................................4
1.08 - Contract..........................................4
1.09 - Contract Date.....................................4
1.10 - Contract Year.....................................4
1.11 - Contribution......................................4
1.12 - Divisions.........................................5
1.13 - Eligible Annuity Certain..........................5
1.14 - Guaranteed Interest Rate..........................5
1.15 - Joint and Survivor Life
Annuity Form......................................5
1.16 - Life Annuity Form.................................5
1.17 - Normal Form.......................................5
1.18 - Period Certain Annuity............................5
1.19 - Processing Office.................................5
1.20 - Retirement Date...................................5
1.21 - Separate Account..................................5
1.22 - Separate Account Definitions......................6
1.23 - Transaction Date..................................6
1.24 - Trust.............................................7
ANNUITY ACCOUNT VALUE
SECTION 2.01 - Contributions.....................................7
2.02 - Separate Account Investment
Divisions.........................................7
2.03 - Guaranteed Interest Division......................7
2.04 - Allocation to Divisions...........................7
2.05 - Transfers Among Divisions.........................7
2.06 - Termination of this Contract......................8
2.07 - Partial Withdrawals...............................8
2.08 - Charges for Partial Withdrawals...................8
2.09 - Free Corridor Amount..............................8
2.10 - Annual Administrative Charge......................8
2.11 - Death Benefit.....................................9
ANNUITY BENEFITS
SECTION 3.01 - Fixed Annuity Benefit.............................9
3.02 - Variable Annuity Benefit..........................9
3.03 - Election and Commencement
of Annuity Benefits...............................9
3.04 - Amount of Annuity Benefits.......................10
3.05 - Payment of Annuity Benefits......................10
GENERAL PROVISIONS
SECTION 4.01 - Contract.........................................12
4.02 - Statutory Compliance.............................12
4.03 - Nonforfeitability
Nontransferability,
and Assignments..................................12
4.04 - Beneficiary......................................12
4.05 - Disqualification.................................13
4.06 - Future Contributions.............................13
4.07 - Deferment........................................13
4.08 - Annual Notice....................................13
4.09 - Age and Sex......................................13
No. 92 QPIA Page 2
<PAGE>
OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28, 1992
RETIREMENT DATE: JAN 1, 2020
INITIAL GUARANTEED INTEREST RATE: 7.50% TO MAR 31, 1992
MINIMUM GUARANTEED INTEREST RATE: 6.00% TO DEC 31, 1992
3.00% AFTER DEC 31, 1992
BENEFICIARY: JANE DOE
FORM NUMBER: 92QPIA
********************************************************************************
TABLE OF GUARANTEED VALUES
ISSUE AGE 38 MALE $1000 ANNUAL CONTRIBUTION
NUMBER OF YEARS GUARANTEED GUARANTEED PAID-UP MONTHLY
SINCE FIRST CONTRIBUTION CASH VALUE ANNUITY AT AGE 65
- ------------------------ ---------- -----------------
1 983 6.61
2 1,958 16.17
3 2,963 26.62
4 3,998 36.76
5 5,064 46.61
6 6,220 56.96
7 7,362 67.37
8 8,538 77.25
9 9,870 86.97
10 11,263 95.47
11 12,719 103.72
12 14,242 111.73
13 15,832 119.50
14 17,337 127.05
15 18,887 134.38
16 20,484 141.49
17 22,129 148.40
18 23,822 155.10
19 25,567 161.61
20 27,364 167.94
24 (Age 62) 35,108 191.43
27 (Age 65) 41,547 207.32
THE TABLES ILLUSTRATE MINIMUM GUARANTEED VALUES AND ASSUME A HYPOTHETICAL $1,000
CONTRIBUTION MADE ANNUALLY ON THE FIRST OF THE MONTH FOLLOWING THE CONTRACT
DATE. THE GUARANTEED CASH VALUE TABLE REFLECTS AN ANNUAL ADMINISTRATIVE CHARGE
(SEE SECTION 2.10) AND A WITHDRAWAL CHARGE OF UP TO 6% OF THE ANNUITY ACCOUNT
VALUE (SEE SECTION 1.05). THE TABLES ASSUME THAT 100% OF ALL CONTRIBUTIONS AND
EARNINGS ARE ALLOCATED TO AND REMAIN IN THE GUARANTEED INTEREST DIVISION.
YOUR ACTUAL GUARANTEED VALUES MAY DIFFER FROM THOSE SHOWN ABOVE, DEPENDING ON
THE LEVEL AND FREQUENCY OF YOUR CONTRIBUTIONS.
THE GUARANTEED PAID-UP MONTHLY ANNUITY SHOWN ABOVE WILL BE REDUCED BY ANY CHARGE
WE MAKE FOR ANY APPLICABLE TAXES (SEE SECTION 3.04). OTHER FORMS OF ANNUITY
BENEFITS MAY BE AVAILABLE; HOWEVER, ANY ANNUITY BENEFIT CONTRACT ELECTED AS A
SETTLEMENT WILL BE SUBJECT TO A CHARGE (SEE SECTION 3.04).
*ASSUMES FIXED BENEFIT JOINT AND SURVIVOR LIFE ANNUITY (100% CONTINUATION TO
SURVIVOR) WITH JOINT ANNUITANT THE SAME AGE AS THE ANNUITANT.
No. 92QPIA Page 3
<PAGE>
- --------------------------------------------------------------------------------
PART I--DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means the person who owns this
Contract as shown on page 3 and who exercised all rights under the terms of this
Contract.
SECTION 1.02 ANNUITY. The term "Annuity" means an individual retirement annuity
contract meeting the requirements of Section 408(b) of the Code.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account, pursuant to Sections 2.02 and
2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.15, 1.16, 3.01, and 3.02) refer to monthly payments to be
made under an Annuity Benefit. You may wish to have the Annuity Benefit paid at
other intervals, such as quarterly, semi-annually, or annually, instead of
monthly. You may elect this at the time you elect the Annuity Benefit form as
described in Section 3.03; in that event, all references in this Contract to
monthly payments will be deemed to mean payments at the frequency you elect,
subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less any applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the excess of (i) the sum of the Annuity Account Value over (ii) the
Free Corridor Amount defined in Section 2.09, and
(b) is the excess, if any, of (i) 8% of the total Contributions made during
the current Contract Year and the nine preceding Contract Years over (ii)
the cumulative total of any prior charges for partial withdrawals made
pursuant to Section 2.08.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
A withdrawal charge will not apply, which means the Cash Value will equal the
Annuity Account Value upon any of the following occurrences:
(i) your attainment of age 59 years and 6 months and your completion of at
least five Contract Years, or
(ii) a request is made for a refund of a contribution in excess of amounts
allowed to be contributed under Section 408 of the Code within one
month of the date on which the contribution is made, or
(iii) you die and a distribution is made to the beneficiary, or
(iv) your attainment of age 55, your completion of at least five Contract
Years and you use the amount withdrawn to purchase from us an Eligible
Annuity Certain, or
(v) your completion of at least three Contract Years and you use the amount
withdrawn to purchase from us a Period Certain Annuity of at least 10
years, or
(vi) your Annuity Account Value is applied to the election of a Life Annuity
Form or Joint and Survivor Life Annuity Form distribution option, or
(vii) your completion of at least twelve Contract Years.
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract, which requires
amounts contributed from rollovers of qualified plan distributions hereunder to
be applied to the purchase of an individual retirement annuity within the
meaning of Section 408(b) of the Code.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both an application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made in cash
or by check to us with respect to this Contract. We are under no obligation to
accept any Contribution less than $1,000.
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Such contributions must qualify as "rollover amounts" within the meaning of
Section 402(a)(5) or 403(b)(8) of the Code or "rollover contributions" from a
"conduit" individual retirement account or annuity described in Section
408(d)(3)(A)(ii) and (iii) of the Code, as the case may be.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following Divisions described in this
Contract:
(a) the Guaranteed Interest Division, and
(b) the Investment Divisions of the Separate Account.
SECTION 1.13 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us, which extends beyond
your attainment of age 59 years and 6 months and does not permit any prepayment
of the unpaid principal (that is no withdrawal or single sum payment) prior to
your attainment of age 59 years and 6 months.
SECTION 1.14 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on Page 3 of
this Contract. Section 2.03 describes the determination of the rate to apply
thereafter.
SECTION 1.15 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose life such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.16 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.17 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contact means, (i) if you have a living spouse at your Retirement Date, the
Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form with
your spouse as the contingent annuitant (with 100% of the monthly payment amount
continued to your spouse), and (ii) if you do not have a living spouse at the
Retirement Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.18 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
the payments as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 1.19 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P.O. Box 2996, GPO, New York, New York 10116, or such
other location as we shall designate by advance written notice to you.
SECTION 1.20 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain your retirement age as shown on page 3 of this Contract. Before the
Retirement Date you may elect to change the Retirement Date to another
Retirement Date, which may be any date after the filing of the election (other
than the 29th, 30th, or 31st day of any month). No Retirement Date shall be
earlier than the day you attain age 59 and 6 months nor shall be later than the
first day of April following the calendar year in which you attain age 70 and 6
months. Any election for such change must be made in writing by you and shall
not take effect until received by us at our Processing Office.
SECTION 1.21 SEPARATE ACCOUNT. The term "Separate Account" means Separate
Account A, which is organized as a unit investment trust, (a type of investment
company). We established the Separate Account and it is maintained in accordance
with the laws of New York State. Realized and unrealized gains and losses from
the assets of the Separate Account are credited to or charged against it without
regard to our other income, gains or losses. Assets are put in the Separate
Account to support this Contract and other variable annuity contracts. Assets
may be put in the Separate Account for other purposes, but not to support
contracts or policies other than variable annuities and variable life insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these Contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
the Trust. We reserve the right to change the designated Trust or to add
designated trusts or investment companies. The Investment Divisions available
are the Stock Division, the Money Market Division, the Balanced Division and the
Aggressive Stock Division. The Guaranteed Interest Division is not part of the
Separate Account rather is an asset of our General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which Equitable is open, the New York Stock Exchange
is open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
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We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments it is
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under
the Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable
law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such a committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any
other form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to,
or remove Investment Divisions (or sub-divisions of Investment
Divisions) from the Separate Account (the term "Investment Division" in
this Contract shall then refer to any other Investment Division in
which the assets of a class of Contracts to which this Contract
belongs, were placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
class of Contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for any applicable
tax charge) at a rate not to exceed 1.49% per year for each of the Stock, Money
Market and Balanced Divisions, and 1.34% per year, for the Aggressive Stock
Division, for financial accounting, death benefits, mortality risk, expenses and
expense risks. The charge shall be made in accordance with Subsection (c) of the
Net Investment Factor provision in Section 1.22. The relative proportion of
these charges may be modified. This daily charge, plus the investment advisory
fee charges and direct operating expense charges of the Trust, shall not exceed
a total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract. The maximum rate may not be altered
without your approval.
SECTION 1.22 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share
value reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period
(after taking into account any amounts allocated or withdrawn for that
Valuation Period).
(c) is the daily asset charge for the expenses of this Contract, times the
number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where your Contributions are invested and which is used in
determining the amount you have in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for that Investment Division for such Valuation Period.
ANNUITY UNIT: The term "Annuity Unit" is a unit used in determining amounts
payable from the Stock Division of the Separate Account under a Variable Annuity
Benefit as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first Contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base Rates of Net Investment Return of 5% and 3.5% a year, respectively. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods ending in
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such month.
SECTION 1.23 TRANSACTION DATE. The term "Transaction Date" means the business
day we receive a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone as
described in Section 2.05, the term "Transaction Date" means the business day
the telephone transaction is received.
SECTION 1.24 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
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PART II -- ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. Contributions under the Contract are Contributions
which qualify as "rollover amounts" within the meaning of Section 402(a)(5) or
403(b)(8) of the Code, or "rollover contributions" from a "conduit" individual
retirement account or annuity described in Section 408(d)(3)(A)(ii) and (iii) of
the Code, as the case may be.
Each Contribution received by us will, before its allocation under this
Contract, be reduced by the amount of any applicable tax charge, as determined
by us. Pursuant to Section 2.06, if no tax has been deducted or if such tax is
due at termination of this Contract, we will deduct the amount due.
Contributions will be allocated to the Divisions in accordance with the
instructions received on your application, unless later changed.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to or withdrawn or transferred from an Investment
Division, you will be credited or charged, as the case may be, with the number
of Accumulation Units determined by dividing said amount by the Accumulation
Unit Value for the appropriate Investment Division for the Valuation Period
which includes that date. The number of units you have in an Investment Division
on any date is equal to (i) the sum of any Accumulation Units that have been
allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation Units
that have been withdrawn pursuant to Sections 2.07 or 208 or transferred from
the Investment Division pursuant to Section 2.05. The amount in an Investment
Division on any date is equal to the product of (i) the number of Accumulation
Units in the Investment Division on that date and (ii) the Accumulation Unit
Value for the Investment Division for the Valuation Period which includes that
date.
Participation in the Separate Account under the terms of this Contract
terminates on the earliest of (i) your election and commencement of Annuity
Benefits pursuant to Section 3.03, (ii) receipt of due proof of your death, or
(iii) termination of this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts, that have been withdrawn from the
Guaranteed Interest Division pursuant to Sections 2.07, 208 or 2.10 or
transferred from the Guaranteed Interest Division, pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date,
pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts, we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under this Contract terminates
on the earliest of (i) your election and commencement of annuity benefits
pursuant to Section 3.03, (ii) receipt of due proof of your death or (iii)
Termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon termination of this Contract pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.11.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request, or
through the use of a touch tone telephone, transfer all or part of the amount
you have
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in a Division to one or more of the Divisions as follows: (1) amounts in the
Guaranteed Interest Division, Stock Division, Balanced Division and Aggressive
Stock Division may be transferred among such Divisions; and (2) amounts in the
Money Market Division may be transferred to other Divisions. Written
authorization for touch tone telephone initiated transfers is only required when
authorization for telephone transfers is requested. Upon advance written notice
to you, we reserve the right to discontinue the acceptance of transfer requests
through the use of a touch tone telephone. All transfers will be effective on
the Transaction Date and will be subject to our rules in effect at the time of
transfer. With respect to the Investment Division, the transfer will be made at
the Accumulation Unit Value next computed after the Transaction Date. No
transfers are permitted to the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. You may elect by written notice to
terminate this Contract. We will determine the Cash Value as of the Transaction
Date we receive your written election.
If this Contract is terminated, surrendered or exchanged prior to your
Retirement Date, any applicable tax charges we have paid may be deducted. If we
have previously deducted charges for applicable taxes from Contributions
pursuant to Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
your Contract.
The payment of such Cash Value may be deferred by us in accordance with the
provisions of Sections 4.07.
We reserve the right to pay the Annuity Account Value under the Contract and
terminate this Contract. This right may be exercised if (i) no Contributions are
made on your behalf during the last three completed Contract Years and the
Annuity Account Value is less than $500, or (ii) a partial withdrawal is made
that would result in your Annuity Account Value falling below $500. We also
reserve the right to terminate this Contract if no Contributions have been made
within 120 months of the Contract Date shown on page 3 of this Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount you have in the Divisions and the Annuity Account Value shall be
zero. We will be released from any and all liability for payments with respect
to the Contributions from which the Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. You may elect, by written notice to us, to
make a partial withdrawal from the Divisions.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to the person entitled to such payment as
designated in writing by you. The amount paid plus any withdrawal charge
applicable pursuant to Section 2.08 will be withdrawn from the amounts you have
in the Divisions. Unless we are instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise you and reserve the right to pay the
Annuity Account Value to you, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.09 or (b) the Cash Value is equal to the Annuity
Account Value, pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount, in proportion in the amount you have
in them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior partial withdrawal
charges made pursuant to this Section.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to your Contract.
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SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means (i) 10%
of the sum of the Annuity Account Value on the Transaction Date over (ii)
cumulative prior withdrawals made pursuant to Section 2.07 in the Current
Contract Year.
SECTION 2.10 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $10,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value, including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts you have in the
Divisions.
If the Annuity Account Value is less than $10,000, on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03,
or (b) the date of Termination of this Contract pursuant to Section 2.06 or
2.11, we will prorate the Annual Administrative Charge applicable to the
completed portion of the Current Contract Year and withdraw such amount in lieu
of the Annual Administrative Charge applicable to the completed portion of the
Current Contract Year and withdraw such amount in lieu of the full Annual
Administrative Charge described in this Section for the applicable part of that
Contract Year.
If the Annuity Account Value is $10,000, or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
SECTION 2.11 DEATH BENEFIT. Upon receipt of due proof of your death, we will pay
to the beneficiary designated by you to receive such payment, pursuant to
Section 4.04 of this Contract, the amount of death benefit payable with respect
to you. The amount of the death benefit is equal to the greater of (i) the
Annuity Account Value and (ii) the minimum death benefit. Such minimum death
benefit is the sum of all Contributions made pursuant to Section 2.01 (before
reduction for any applicable tax charge) less any withdrawals made pursuant to
Section 2.07. Any such withdrawal will reduce the minimum death benefit (as
adjusted by any previous such withdrawal) by an amount which is in the same
proportion as the amount that was withdrawn is to the Annuity Account Value. If,
in accordance with the provisions of Section 2.01, the cash value of another
annuity contract issued by us, or one of our affiliated or subsidiary life
insurance companies, which provides for a death benefit before retirement equal
to the greater of the contract cash value or an alternate amount based on
premiums paid or contributions made under the annuity contract, is transferred
to this Contract, such cash value or alternative amount as of the date of
transfer will be included in the "sum of all Contributions" in lieu of the
amount of cash value transferred for purposes of the death benefit under this
Contract.
We will pay the death benefit to your beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also, in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to your
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value will be zero. We will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Account Value rose.
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PART III -- ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFITS. The term "Variable Annuity Benefit"
means an Annuity Benefit under which the dollar amount of the monthly payments
with respect to a payee may increase or decrease depending on the investment
experience of the Stock Division.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of net
investment return referred to in Section 1.22 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.21, not exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounting, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under this Contract with respect to a payee is the monthly
amount provided with respect to a payee pursuant to the fifth paragraph of
Section 3.04. The amount of the fourth and each subsequent payment under a
Variable Annuity Benefit will be equal to the number of Annuity Units with
respect to such benefit, multiplied by the Average Annuity Unit Value for the
second calendar month immediately preceding the due date of the payment. The
number of Annuity Units with respect to a benefit is the number determined by
dividing the amount
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of the first monthly payment under such benefit by the Annuity Unit Value for
the Valuation Period which includes the due date of the first monthly payment.
(As described in Section 3.05, we will notify the payee how each Variable
Annuity payment is determined).
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of your
Retirement Date, provided you are then living, the Annuity Account value shall
be applied to provide the Normal Form of Annuity Benefit, unless you elect (i)
to receive the Cash Value of this Contract in a single sum or (ii) to apply the
Annuity Account Value or Cash Value, whichever is applicable pursuant to the
first paragraph of Section 3.04, to provide an Annuity Benefit on any other form
offered by us, or one of our affiliated or subsidiary life insurance companies,
as elected by you, or (iii) to take partial withdrawals in amounts and at times
as required by the Code, pursuant to Sections 2.07 and 3.05, subject to our
rules then in effect and any other applicable requirements under the Code.
We will provide notice and election forms to you not more than six months before
your Retirement Date.
If you elect to terminate this Contract prior to the Retirement Date, pursuant
to Section 2.06, an election may be made to receive an Annuity Benefit in lieu
of the Cash Value.
We will have the right to require you to furnish pertinent information to
provide an Annuity Benefit and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form, issued by us or one of our affiliated or subsidiary
life insurance companies.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect, pursuant to the first or
third paragraph of Section 3.03, to receive an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the annuity form elected involves life contingencies or
(ii) the Cash Value, if the Annuity Form elected does not involve life
contingencies.
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charge from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to your Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed annuity Payments
shown below, or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your contract will be governed by our
supplementary contract then in effect.
If an amount is applied to provide an Annuity Benefit, the amount to be applied
will, in addition to any tax charge reduction, be reduced by an administrative
charge. The amount of such charge will be determined from time to time in
accordance with our general practices applicable on a uniform basis to all
contracts of the same type as this contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract, as
indicated, on the Joint and Survivor Life Annuity Form (with 100% of the amount
of your payment continued to your spouse). The amounts of income provided under
the Fixed Annuity Benefit payable on the Life Annuity Form and Joint and
Survivor Life Annuity Form are based on 3.5% interest and the 1983 Individual
Annuity Table "a". The amount of income initially provided under the Variable
Annuity Benefit payable on the Life Annuity Form and the Joint and Survivor Life
Annuity Form are based on the 1983 Individual Annuity Table "a" and an Assumed
Base Rate of Net Investment Income Return of 3.5% or 5%, whichever applies
pursuant to Section 1.22.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us based on 3.5% interest and the 1983 Individual Annuity Table
"a" if such annuity form provides for a Fixed Annuity Benefit, and on the same
such Table and an Assumed Base Rate of Net Investment Income Return of 3.5% or
5%, whichever applies pursuant to Section 1.22 if such annuity form provides for
a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Your entire interest in this Contract
will be distributed or begin to be distributed, in accordance with Section
401(a)(9) of the Code and the applicable Treasury Regulations thereunder no
later than the first day of April following the calendar year in which you
attain age 70 and 6 months ("Required Beginning Date"). Your entire interest may
be distributed, as you elect, over (a) your life, or the lives of you and your
designated beneficiary, or (b) a period certain not extending beyond your life
expectancy, or the joint and last survivor expectancy of you and your designated
beneficiary. Distributions must be made in periodic payments at intervals of no
longer than one year. In addition, payments must be either non-increasing or
they may increase only as provided in Q & A F-3 of Section 1.401(a)(9)-1 of the
proposed Treasury Regulations, or any successor Regulation thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental death
benefit requirements of Section 401(a)(9)(G) of the Code, and applicable
Treasury Regulations, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
Notwithstanding the above paragraphs and the following
No. 92 QPIA Page 10
<PAGE>
paragraphs of this Section 3.05, while any distribution shall be subject to such
requirements of the Code and regulations, any distribution shall also be subject
to the terms of this Contract. That is, the forms of distribution shall be those
which are made available by us at the time of your election.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless you otherwise elect prior to the time distributions are required to
begin, those life expectancies shall be recalculated annually. Such election
shall be irrevocable and shall apply to all subsequent years. The life
expectancy of a non-spouse beneficiary may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such beneficiary during
the calendar year in which you attain age 70 and 6 months, and payments for
subsequent years shall be calculated based on such life expectancy reduced by
one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If you die after distribution of your interest in this Contract has begun, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to your death.
If you die before distribution of your interest begins, distribution of your
entire interest shall be completed no later than December 31 of the calendar
year containing the fifth anniversary of your death, except to the extent that
an election is made to receive death benefit distributions in accordance with
(1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then your entire
interest may be distributed over the life of or over a period certain not
greater than the life expectancy of, the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar year
immediately following the calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date that
distributions are required to begin in accordance with (1) above shall
not be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of your death or (B) December 31
of the calendar year in which you would have attained age 70 and 6
months.
For purposes of determining the "period certain" referred to in the immediately
preceding paragraph, life expectancy is computed by use of the expected return
multiples in Tables V and VI of Treasury Regulation Section 1.72-9. For purposes
of distributions beginning after your death, unless otherwise elected by the
surviving spouse by the time distributions are required to begin, life
expectancies shall be recalculated annually. Such election shall be irrevocable
by the surviving spouse and shall apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies shall be calculated using
the attained age of such beneficiary during the calendar year in which
distributions are required to begin, pursuant to this Section, and payments for
any subsequent calendar year shall be calculated based on life expectancy
reduced by one for each calendar year which has elapsed since the calendar year
life expectancy was first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date, distribution irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under this contract was based on information that is
subsequently found to be incorrect, your benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by us will be charged against and
underpayments will be added to any payments thereafter falling due under this
Contract with respect to the payee, affecting as many such payments as are
necessary to correct the overpayment or underpayment. Our liability with respect
to a payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under this
Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under this Contract is physically or mentally incompetent to receive
such payment or is a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments (in the case of a minor, at a rate not exceeding $200 a month) to
such other person or institution, and will thereupon be fully discharged from
all liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, the payee thereunder
may elect, without the concurrence of any other person, to receive the commuted
value of any remaining payments, provided no person upon whose life the income
depends is surviving.
Pursuant to Section 3.03, upon your election of an annuity form providing
payments for a period certain, you may designate (with the right to change such
designation) a payee or payees to receive any payments that may become due after
the death of the person or persons upon whose life or lives the income may
depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments
No 92 QPIA Page 11
<PAGE>
TABLES OF
GUARANTEED ANNUITY PAYMENTS
(BASED ON AGE NEAREST BIRTHDAY ON DUE DATE OF FIRST PAYMENT)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT
AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(MINIMUM MONTHLY INCOME PER $1,000 OF ANNUITY ACCOUNT VALUE)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.51 4.56 4.61 4.66 4.71 4.76 4.81 4.85 4.90 4.94 4.99
61 4.59 4.65 4.70 4.75 4.81 4.86 4.91 4.96 5.01 5.06
62 4.69 4.74 4.80 4.85 4.91 4.97 5.02 5.07 5.13
63 4.78 4.84 4.90 4.96 5.02 5.08 5.14 5.20
64 4.88 4.95 5.01 5.08 5.14 5.20 5.27
65 4.99 5.06 5.13 5.20 5.27 5.34
66 5.11 5.18 5.26 5.33 5.41
67 5.24 5.31 5.39 5.47
68 5.37 5.45 5.54
69 5.51 5.60
70 5.67
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(MINIMUM MONTHLY INCOME PER $1,000 OF ANNUITY VALUE)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED BASE
RATE OF NET INVESTMENT RETURN IS:
3.5% 5.00%
---- -----
Age Males Females Males Females
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
60 5.67 5.00 6.46 5.89
61 5.71 5.11 6.60 6.00
62 5.86 5.23 6.75 6.11
63 6.03 5.36 6.92 6.24
64 6.20 5.49 7.09 6.37
65 6.39 5.64 7.28 6.51
66 6.58 5.79 7.47 6.66
67 6.80 5.96 7.69 6.83
68 7.02 6.13 7.92 7.00
69 7.27 6.32 8.16 7.19
70 7.53 6.53 8.42 7.40
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
payable after such payee's death, if the absence of such a designation would
result in a single sum payment to such payee's estate in accordance with the
following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments. The commuted value of any such remaining payments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
We will, with respect to each payment under a Variable Annuity Benefit, notify
the payee of the number of Annuity Units and the Average Annuity Unit Value used
in determining the amount of each variable payment. Such notice will be mailed
with each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
- --------------------------------------------------------------------------------
PART IV -- GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire agreement between
the parties and the provisions of this Contract alone will govern with respect
to our rights and obligations. A copy of the application is incorporated in and
made part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by an authorized officer of Equitable. This
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend this Contract
without the consent of any other person in order to comply with applicable laws
and regulations. Such right shall include, but not be limited to, the right to
conform this Contract to reflect changes in the Code, applicable Treasury
Regulations, or published rulings of the Internal Revenue Service so that this
Contract will continue to be an Annuity under a qualified plan.
SECTION 4.03 NONFORFEITABILITY, NONTRANSFERABILITY, AND ASSIGNMENTS. Your entire
interest
No. 92 QPIA Page 12
<PAGE>
under the Contract is nonforfeitable. This Contract is nontransferable except by
surrender to us. Your interest under this Contract may not be sold, assigned,
discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under this Contract may be assigned, commuted, or encumbered
by the payee, unless otherwise permitted as described herein, and, to the extent
permitted by law, no such amount will in any way be subject to any claim against
such payee.
SECTION 4.04 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any death benefit
payable pursuant to Section 2.11. You may change such designation from time to
time during your lifetime and while this Contract is in force. Any such
designation or change will be made by written notice in a form satisfactory to
us. A change will, upon receipt at the Processing Office, take effect as of the
time the written notice was signed, whether or not you are living on the
Transaction Date, but without further liability as to any payment or other
settlement made by us before receipt of such change.
Unless otherwise specified in the designation, if you have designated two or
more persons as beneficiary, the beneficiary will be the designated person or
persons who survive you, and if more than one survive, they will share equally.
Any part of a death benefit payable pursuant to Section 2.11 for which there is
no designated beneficiary living at your death will be payable in a single sum
to your children who survive you, in equal shares, or should none survive, then
to your estate.
If you elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form annuity elected by you, with respect to the beneficiary, subject to our
rules then in effect. If at your death there is no election in effect to apply
the single sum death benefit to provide an Annuity Benefit, the beneficiary may
make such an election. Any such election must meet the minimum distribution
requirements under the Code, as described in Section 3.05.
SECTION 4.05 DISQUALIFICATION. In the event that this Contract fails to qualify
as an Annuity as described in Section 1.02, we will have the right, upon
receiving notice of such fact prior to the Retirement Date, to terminate this
Contract and pay to you the Annuity Account Value less a deduction for the
appropriate part attributable to you of any Federal income tax payable which
would not have been payable if you had an Annuity.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to you, we reserve the
right, at our sole discretion, to limit contributions under this Contract, as
required by law or if such Contributions are in excess of the maximum amounts as
permitted under the Code.
SECTION 4.07 DEFERMENT. Application of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payment in order to protect
persons with interests in the Investment Divisions. We can defer payment of any
portion of your Annuity Account Value in the Guaranteed Interest Division for up
to six months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year we will furnish you
with a notice showing the following:
(1) the amount you have in the Guaranteed Interest Division,
(2) the total number of Accumulation Units you have in the Stock Division,
Balanced Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Values,
(4) the amount you have in the Stock Division, Balanced Division,
Aggressive Stock Division and Money Market Division,
(5) the Annuity Account Value,
(6) the Cash Value, and
(7) the amount of death benefit with respect to you.
We will also furnish annual calendar year reports concerning the status of the
Annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.09 AGE AND SEX. If your age or sex has been misstated, any benefits
will be those which would have been purchased at the correct age or sex. Any
overpayments or underpayments made by us will be charged or credited with
interest at the rate of 6% per year, and such interest will be deducted from or
added to benefits falling due thereafter.
No. 92 QPIA Page 13
<PAGE>
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APPLICATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
PROCESSING OFFICE: INDIVIDUAL ANNUITY CENTER, P.O. BOX 2996,
NEW YORK, NEW YORK 10116-2996
QUALIFIED VARIABLE ANNUITY CONTRACT APPLICATION FOR:
EQUITABLE'S INDIVIDUAL QUALIFIED DEFERRED VARIABLE ANNUITY
- --------------------------------------------------------------------------------
TYPE OF PURCHASE (Complete One Plan Only)
A. |_| TSA PUBLIC SCHOOL (GV-PS-I)
B. |_| TSA 501(C)(3) ORGANIZATION (GV-501-I)
C. |_| TSA University (GV-PS-U-I)
D. |_| IRA Individual (Including IRA to IRA transfers) (GV-IRA 4971)
E. |_| IRA Unit Billed (Including IRA to IRA transfers) (GV-IRA 4971)
F. |x| IRA QUALIFIED PLAN ROLLOVER-- (QP IRA) (Distribution from a Qualified
Plan) (GV-IRA 4971-71)
G. |_| EDC (Public Employee Deferred Compensation) (GV-EDC 4991)
H. |_| EDC (Tax Exempt Organization) (GV-EDC 4991-SU-080)
I. |_| SEP (Simplified Employee Pension) (GV-SEP 4981)
J. |_| SARSEP (Salary Reduction SEP) _________________________________________
K. |_| CORPORATE TRUSTEED (GV-CORP 4941-41)
L. |_| KEOGH/HR-10 TRUSTEE (GV HR-10 4911-11)
(trustee owned)
M. |_| KEOGH/HR-10 (GV-HR-10 4911)
(not trustee owned) (issued to existing units only)
- --------------------------------------------------------------------------------
DO NOT COMPLETE THIS SECTION IF 1.D OR 1.F CHECKED ABOVE
2. EMPLOYER/PLAN NAME
|A|B|C|_|C|O|M|P|A|N|Y|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
3. |_| EXISTING UNIT NO. |_|_|_|_|_|_|-|_|_|_|
|x| NEW UNIT |0|0|0|1|2|3|-|4|5|6|
(FOR NEW UNIT BILLED IRA, EDC, TSA, SEP, SARSEP, OR TRUSTEED PLANS. FORM
983-135B IS REQUIRED)
- --------------------------------------------------------------------------------
4. PROPOSED ANNUITANT Print name to appear on Contract.
|J|O|H|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|D|O|E|_|_|_|_|_|
FIRST MIDDLE INITIAL LAST
A. |X| MR. |_| MRS. |_| MS. |_| OTHER ____
B. Date of Birth: Year 1954 Month JANUARY Day 27
---- ------- --
C. Age at Nearest Birthday: 38 D. |X| Male |_| Female
----
E. Annuitant's Mailing Address: F. State of Residence: N.J.
----
No., St. |1|7|_|E|L|M|_|S|T|R|E|E|T|_|_|_|_|_|_|_|_|_|_|_|_|
City |A|N|Y|T|O|W|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |U|S| Zip Code |0|2|0|0|0|-|0|0|0|1|
G. Telephone Number (101) 222 - 3456 |X| Home |_| Work
H. Social Security No. (Required): |1|2|3|-|4|5|-|6|7|8|9|
I. Are you associated with or employed by a member of National
Association of Securities Dealers, Inc.(NASD)? |_| Yes |X| No
5. OWNER (Print Name) -- If Trusteed or EDC Plan Print Name of Owner, for all
other Markets Print Name of Annuitant.
JOHN DOE
-----------------------------------------------------------------------------
a. Title ____________________________________________________________________
6. RETIREMENT AGE 65
---------------------------------------------------------------
7. BENEFICIARY -- Include FULL NAME and RELATIONSHIP to Annuitant. (For Death
Benefit upon Annuitant's death before Retirement Date.) (BENEFICIARY MUST
BE THE OWNER FOR EDC PURCHASES AND FOR MOST TRUSTEED PLANS.)
JANE DOE - WIFE
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8. CONTRIBUTION ALLOCATION
Guaranteed Interest Division 20%
-----
Stock Division 20%
-----
Money Market Division 20%
-----
Balanced Division 20%
-----
Aggressive Stock Division 20%
-----
(PERCENTAGES IN WHOLE NUMBERS) Total 100%
9. CONTRIBUTIONS (NOT REQUIRED FOR 1.F)
A. Reminder Notice (Billing) Required |_| Yes |X| No
IF YES, COMPLETE B-C-D-E
B. REMINDER DATE Required for Individual IRA or otherwise must agree
with existing unit or attached 983-135B. MONTH _________ DAY __________
C. REMINDER FREQUENCY
|_| Annual |_| Semi-Annual
|_| Quarterly |_| Monthly
Available for TSA, EDC, SARSEP AND CORPORATE TRUSTEED AND UNIT BILLED IRA
ONLY:
|_| Semi-Monthly |_| Bi-Weekly
D. REMINDER AMOUNT $_________________________________
E. BILLING MONTHS TO BE EXCLUDED - TSA ONLY
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
10.EXPECTED FIRST CONTRACT YEAR
Contribution. $1000
----------------------------------------------------------------
IF AN ADVANCED BILLING AND/OR CONTRACT DATE ARE REQUESTED, COMPLETE #9B
AND #12.
- --------------------------------------------------------------------------------
(FOR PROCESSING OFFICE USE)
Unit Name ___________________________ Reminder Date ___________________________
Cert. or App# _______________________ Amendment Required_______________________
EDC Emp. Add. _______________________ Emp. Fed. ID# ___________________________
Frequency ___________________________ Contract Date ___________________________
- --------------------------------------------------------------------------------
Receipt Date Batch # Inquiry # Processor
- --------------------------------------------------------------------------------
180-1000
<PAGE>
- --------------------------------------------------------------------------------
10. Did you receive the Separate Account Prospectus? |X| Yes |_| No
Date shown on Prospectus January 1, 1992
----------------------------------------------------
Date of any supplement to Prospectus _______________________________________
11. Items (a) through (f) are to be answered by the annuitant. We are
required by the NASD to ask these questions.
(a) Name of Employer: ABC Company
------------------------------------------------------
(b) Address of Employer:
10 Main Street
---------------------------------------------------------------------------
Anytown, NJ
---------------------------------------------------------------------------
(c) Occupation Sales
-------------------------------------------------------------
(d) Assuming the contract applied for will be issued, will any existing
insurance or annuity be replaced or changed (or has it been)?
| | Yes |X| No
(e) Estimated Family Annual Income $100,000
----------------------------------------
(f) Estimated Net Worth $250,000
-----------------------------------------------------
(g) Investment Objective: |_| Income |X| Income & Growth
|_| Aggressive Growth |_| Growth |_| Safety of Principal
12. SPECIAL INSTRUCTIONS
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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13. Amount paid with this form: $1000
(If a check is submitted with this request, no advanced Contract Date is
permitted.) BACKDATING IS NOT PERMITTED.
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the certificate is not issued. The Contract Date
will be the date of receipt by Equitable of this application, properly signed
and completed, and Contribution at Equitable's Processing Office.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGREEMENT
All information and statements furnished in this application are true and
complete to the best of my knowledge and belief. I understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations.
IT IS UNDERSTOOD THAT THE ANNUITY ACCOUNT VALUE ATTRIBUTABLE TO ALLOCATIONS TO
THE INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT AND VARIABLE ANNUITY BENEFIT
PAYMENTS MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
UNDER THE PENALTIES OF PERJURY I (WE) CERTIFY THAT THE SOCIAL SECURITY NUMBER(S)
OR TAX IDENTIFICATION NUMBER(S) PROVIDED ON THIS FORM IS (ARE) TRUE, CORRECT AND
COMPLETE.
- --------------------------------------------------------------------------------
LAWS IN YOUR STATE MAY MAKE IT A CRIME TO FILL OUT AN INSURANCE OR ANNUITY
APPLICATION WITH INFORMATION YOU KNOW IS FALSE OR TO LEAVE OUT MATERIAL FACTS.
- --------------------------------------------------------------------------------
X__________________________________ Date_______ City __________ State __________
Signature of Annuitant
X__________________________________ Date_______ City __________ State __________
Signature of Authorized Individual (REQUIRED FOR EDC AND
TRUSTEED) OR OWNER
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGENT'S SECTION
Will any existing insurance or annuity be replaced or changed (or has it been),
assuming the Contract will be issued? | | Yes | | No
|_| I (we) certify that a prospectus for the Contract has been given to the
proposed Annuitant and that no written sales materials other than those approved
by Equitable have been used.
EQUI-VEST issues must adequately reflect the commission interest of all Agents
on previous contracts.
- --------------------------------------------------------------------------------
Print Agent's Name(s) Initial of Agent Agent Agency District Agent's
(Service Agent first) Last Name Number % Code Manager Code Signature
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FOR AGENCY COMPLIANCE FILE: INITIALS OF AGENCY EQS___ Date ___ District EQS ___
Date ____
- --------------------------------------------------------------------------------
(FOR ASU USE)
ASU Code and App. No. __________________________________________________________
ASU Rec'd. _____________________________________________________________________
Date to Proc. Off. ________________________________________________ Campaign |_|
Agent(s) shown above is Equity Qualified and is licensed in the state where the
request is signed. Above Agent information verified by ASM (Registered Rep)
- --------------------------------------------------------------------------------
Application reviewed by ________________________________________________________
- --------------------------------------------------------------------------------
180-1000
<PAGE>
<< 92 QPIB Missing
<PAGE>
OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28, 1992
RETIREMENT DATE: JAN 1, 2020
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O. New York,
New York 10116
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division (referred to in this Contract as
the "Investment Divisions") or to the Guaranteed Interest Division, in
accordance with Sections 2.02, 2.03 and 2.04 as directed by you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide the
Annuitant with an Annuity Benefit or a Cash Value benefit if the Annuitant
is then living, and
o TO PROVIDE the Annuitant with the other rights and benefits of this
Contract.
This is the entire Contract. In this Contract "we", "our", and "us" mean The
Equitable Life Assurance Society of the United States ("Equitable"). "You" and
"your" mean the Annuitant at the time a right is exercised by the Annuitant.
TEN DAYS TO EXAMINE CONTRACT - You may cancel this Contract by returning it to
us within ten days after receipt of it. Upon such cancellation, we will refund
any Contribution made to us under this Contract.
/s/ Molly K. Heines /s/ Richard H. Jenrette
Vice President and Secretary Chairman of the Board
and Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.24 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92 SEPA
<PAGE>
The Contract is issued in consideration of the payment to us of the
Contributions made under the terms of the Contract.
The provisions on the following pages are part of this Contract. A copy of the
application is incorporated in and made part of this Contract.
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TABLE OF CONTENTS
DEFINITIONS Page
Section 1.01 - Annuitant.......................................................4
1.02 - Annuity.........................................................4
1.03 - Annuity Account Value...........................................4
1.04 - Annuity Benefit.................................................4
1.05 - Cash Value......................................................4
1.06 - Class of Contracts..............................................4
1.07 - Code............................................................4
1.08 - Contract........................................................4
1.09 - Contract Date...................................................4
1.10 - Contract Year...................................................5
1.11 - Contribution....................................................5
1.12 - Divisions.......................................................5
1.13 - Eligible Annuity Certain........................................5
1.14 - Employer........................................................5
1.15 - Guaranteed Interest Rate........................................5
1.16 - Joint and Survivor Life Annuity Form............................5
1.17 - Life Annuity Form...............................................5
1.18 - Normal Form.....................................................5
1.19 - Period Certain Annuity..........................................5
1.20 - Plan............................................................5
1.21 - Processing Office...............................................5
1.22 - Retirement Date.................................................5
1.23 - Separate Account................................................5
1.24 - Separate Account Definitions....................................6
1.25 - Transaction Date................................................7
1.26 - Trust...........................................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions...................................................7
2.02 - Separate Account Investment Divisions...........................7
2.03 - Guaranteed Interest Division....................................7
2.04 - Allocation to Divisions.........................................7
2.05 - Transfers Among Divisions.......................................7
2.06 - Termination of this Contract....................................8
2.07 - Partial Withdrawals.............................................8
2.08 - Charges for Partial Withdrawals.................................8
2.09 - Free Corridor Amount............................................8
2.10 - Annual Administrative Charge....................................8
2.11 - Death Benefit...................................................9
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit...........................................9
3.02 - Variable Annuity Benefit........................................9
3.03 - Election and Commencement of Annuity Benefits...................9
3.04 - Amount of Annuity Benefits.....................................10
3.05 - Payment of Annuity Benefits....................................10
GENERAL PROVISIONS
Section 4.01 - Contract.......................................................12
4.02 - Statutory Compliance...........................................12
4.03 - Nonforfeitability, Nontransferability, and Assignments.........12
4.04 - Beneficiary....................................................12
4.05 - Disqualification...............................................13
4.06 - Future Contributions...........................................13
4.07 - Deferment......................................................13
4.08 - Annual Notice..................................................13
4.09 - Age............................................................13
No. 92 SEPA Page 2
<PAGE>
OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28, 1992
RETIREMENT DATE: JAN 1, 2020
INITIAL GUARANTEED INTEREST RATE: 7.50% TO MAR 31, 1992
MINIMUM GUARANTEED INTEREST RATE: 6.00% TO DEC 31, 1992
3.00% AFTER DEC 31, 1992
BENEFICIARY: JANE DOE
FORM NUMBER: 92 SEPA
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TABLE OF GUARANTEED VALUES
ISSUE AGE 38 MALE $1000 ANNUAL CONTRIBUTION
NUMBER OF YEARS GUARANTEED GUARANTEED PAID-UP MONTHLY
SINCE FIRST CONTRIBUTION CASH VALUE ANNUITY AT AGE 65*
- -------------------------- ---------- ----------------------------
1 976 6.62
2 1,946 16.20
3 2,944 26.67
4 3,998 36.83
5 5,064 46.70
6 6,220 57.08
7 7,362 67.50
8 8,538 77.40
9 9,870 87.15
10 11,263 95.66
11 12,719 103.93
12 14,242 111.95
13 15,832 119.74
14 17,337 127.30
15 18,887 134.64
16 20,484 141.77
17 22,129 148.69
18 23,822 155.41
19 25,567 161.94
20 27,364 168.27
24 (Age 62) 35,108 191.82
27 (Age 65) 41,547 207.73
THE TABLES ILLUSTRATE MINIMUM GUARANTEED VALUES AND ASSUME A HYPOTHETICAL $1,000
CONTRIBUTION MADE ANNUALLY ON THE FIRST OF THE MONTH FOLLOWING THE CONTRACT
DATE. THE GUARANTEED CASH VALUE TABLE REFLECTS AN ANNUAL ADMINISTRATIVE CHARGE
(SEE SECTION 2.10) AND A WITHDRAWAL CHARGE OF UP TO 6% OF THE ANNUITY ACCOUNT
VALUE (SEE SECTION 1.05). THE TABLES ASSUME THAT 100% OF ALL CONTRIBUTIONS ARE
ALLOCATED TO AND REMAIN IN THE GUARANTEED INTEREST DIVISION.
YOUR ACTUAL GUARANTEED VALUES MAY DIFFER FROM THOSE SHOWN ABOVE, DEPENDING ON
THE LEVEL AND FREQUENCY OF YOUR CONTRIBUTIONS.
THE GUARANTEED PAID-UP MONTHLY ANNUITY SHOWN ABOVE WILL BE REDUCED BY ANY CHARGE
WE MAKE FOR ANY APPLICABLE TAXES (SEE SECTION 3.04). OTHER FORMS OF ANNUITY
BENEFITS MAY BE AVAILABLE; HOWEVER, ANY ANNUITY BENEFIT CONTRACT ELECTED AS A
SETTLEMENT WILL BE SUBJECT TO A CHARGE (SEE SECTION 3.04).
*ASSUMES FIXED BENEFIT JOINT AND SURVIVOR LIFE ANNUITY (100% CONTINUATION TO
SURVIVOR) WITH JOINT ANNUITANT THE SAME AGE AS THE ANNUITANT.
No. 92 SEPA Page 3
<PAGE>
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PART I - DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means the person who owns this
Contract as shown on Page 3 and on whose behalf this Contract has been purchased
and maintained, and who exercises all rights under the terms of this Contract.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the written program constituting a "Simplified Employee
Pension," as described in Section 408(k) of the Code, as adopted by the
Employer, which meets the requirements for qualification under Section 408(b) of
the Code.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account, pursuant to Sections 2.02 and
2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.16, 1.17, 3.01, and 3.02) refer to monthly payments to be
made under an Annuity Benefit. You may wish to have your Annuity Benefit paid at
other intervals, such as quarterly, semi-annually, or annually, instead of
monthly. You may elect this at the time you elect the Annuity Benefit form
described in Section 3.03; in that event, all references in this Contract to
monthly payments will be deemed to mean payments at the frequency you elect
subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less any applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where:
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the excess of (i) the Annuity Account Value over (ii) the Free Corridor
Amount defined in Section 2.09; and
(b) is the excess, if any, of (i) 8% of the total Contributions made during
the Current Contract Year and the nine preceding Contract Years over (ii)
the cumulative total of any prior charges for partial withdrawals made
pursuant to Section 2.08.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
A withdrawal charge will not apply, which means the Cash Value will equal the
Annuity Account Value upon any of the following occurrences:
(i) your attainment of age 59 years and 6 months and your completion of at
least five Contract Years, or
(ii) a distribution is made for a refund of a Contribution which exceeds the
amounts which hay be contributed pursuant to Section 219 and/or 408(o)
of the Code and the request for a distribution is received within one
month of the date on which such Contribution was made, or
(iii) a distribution of deferrals disallowed by reason of failure to meet the
requirements of Section 408(k)(6)(A)(ii) of the Code, including income
thereon and less any loss allowable thereto, is made no later than
April 15 following the calendar year of the Employer's notification of
such disallowance, or
(iv) a distribution of "excess contributions," as such term is defined in
Section 408(k)(6)(C)(ii) of the Code, including the income thereon and
less any loss allowable thereto, is made no later than the end of the
plan year of the Simplified Employee Pension following the plan year in
which such excess contributions were made, or
(v) a distribution of "excess deferrals" as such term is defined in Section
402(g)(2) of the Code, including income thereon and less any loss
allowable thereto, is made no later than April 15 following the year in
which such excess deferrals were made, or
(vi) your completion of at least three Contract Years and you use the amount
withdrawn to purchase from us a Period Certain Annuity of at least 10
years, or
(vii) your Annuity Account Value is applied to the election of a Life Annuity
Form and Joint and Survivor Life Annuity Form distribution option, or
(viii) your completion of at least twelve Contract Years, or
(ix) your attainment of age 55, your completion of at least five Contract
Years and you use the amount withdrawn to purchase from us an Eligible
Annuity Certain, or
(x) you die and a distribution is made to the beneficiary.
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract which is
established for the exclusive benefit of you or your beneficiary.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
No. 92 SEPA Page 4
<PAGE>
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made in cash
or by check to us on your behalf with respect to this Contract. We are under no
obligation to accept any Contribution less than $20.00
Except in the case of a rollover contribution (as permitted by Sections
402(a)(5), 402(a)(6), 402(a)(7), 403(a)(4), 403(b)(8), or 408(d)(3) of the
Code), or a Contribution made in accordance with the terms of a Simplified
Employee Pension ("SEP") as contained in Section 408(k) of the Code, no
Contributions will be accepted unless they are in cash, and the total of such
contributions shall not exceed $2,000 for any taxable year. In addition, amounts
transferred to this Contract, to an individual retirement account, or annuity
contract meeting the requirements of Section 408 of the Code are also not
subject to the $2,000 limit on contributions.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following Divisions described in this
Contract:
(a) the Guaranteed Interest Division, and
(b) the Investment Divisions of the Separate Account.
SECTION 1.13 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us, which extends beyond
your attainment of age 59 years and 6 months and does not permit any prepayment
of the unpaid principal (that is no withdrawal or single sum payment) prior to
your attainment of age 59 years and 6 months.
SECTION 1.14 EMPLOYER. The term "Employer" means the sole proprietor,
partnership or corporation that assumes in writing the obligations of the
program constituting the Simplified Employee Pension. A sole proprietor is
deemed to be his/her own Employer and a partnership is deemed to be the Employer
of each partner.
SECTION 1.15 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on Page 3 of
this Contract. Section 2.03 describes the determination of the rate to apply
thereafter.
SECTION 1.16 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.17 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.18 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means, (i) if you have a living spouse at your Retirement Date,
the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form
with your spouse as the contingent annuitant (with 100% of the monthly payment
amount continued to your spouse), and (ii) if you do not have a living spouse at
the Retirement Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.19 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
your payments as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 1.20 PLAN. The term "Plan" means a Simplified Employee Pension Plan as
described in Section 408(k) of the Code.
SECTION 1.21 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P.O. Box 2996, G.P.O., New York, New York 10116, or
such other location as we shall designate by advance written notice to you.
SECTION 1.22 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain your retirement age as shown on page 3 of this Contract. Before the
Retirement Date you may elect to change the Retirement Date to another
Retirement Date, which may be any date after the filing of the election (other
than the 29th, 30th, or 31st day of any month). No Retirement Date shall be
earlier than the date you attain age 59 years and 6 months nor shall be later
than the first day of April following the calendar year in which you attain age
70 years and 6 months. Any election for such change must be made in writing by
you and shall not take effect until received by us at our Processing Office.
SECTION 1.23 SEPARATE ACCOUNT. The term "Separate Account" means our Separate
Account A, which is organized as a unit investment trust (a type of investment
company). We established the Separate Account and it is maintained in accordance
with the laws of New York State. Realized and unrealized gains and losses from
the assets of the Separate Account are credited to or charged against it without
regard to our other income, gains or losses. Assets are put in the Separate
Account to support this Contract and other variable annuity contracts. Assets
may be put in the Separate Account for other purposes, but not to support
contracts or policies other than variable annuities and variable life insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these Contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
No. 92 SEPA Page 5
<PAGE>
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
the Trust. We reserve the right to change the designated Trust or to add
designated trusts or investment companies. The Investment Divisions available
are the Stock Division, the Money Market Division, the Balanced Division and the
Aggressive Stock Division. The Guaranteed Interest Division is not part of the
Separate Account, but rather is an asset of our General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which Equitable is open, the New York Stock Exchange
is open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments it is
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under
the Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such a committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any
other form;
(v) add Investment Divisions (or subdivisions of Investment Divisions) to,
or remove Investment Divisions (or subdivisions of Investment Divisions)
from the Separate Account (the term "Investment Division" in this
Contract shall then refer to any other Investment Division in which the
assets of a Class of Contracts to which this Contract belongs, were
placed);
(vi) combine any two or more Investment Divisions (or subdivisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for any applicable
tax charges) at a rate not to exceed 1.49% per year for each of the Stock, Money
Market and Balanced Divisions, and 1.34% per year, for the Aggressive Stock
Division, for financial accounting, death benefits, mortality risk, expenses and
expense risks. The charge shall be made in accordance with Subsection (c) of the
Net Investment Factor provision in Section 1.24. The relative proportion of
these charges may be modified. The daily charge, plus the investment advisory
fee charges and direct operating expense charges of the Trust shall not exceed a
total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract. The maximum rate may not be altered
without your approval.
SECTION 1.24 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share
value reported to us by the Trust.
b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
taking into account any amounts allocated or withdrawn for that Valuation
Period).
c) is the daily asset charge for the expenses of this Contract, times the
number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where your Contributions are invested and which is used in
determining the amount you have in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981 the date the first Contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base Rates of Net Investment Return of 5% or 3.5% a year, respectively. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be
No. 92 SEPA Page 6
<PAGE>
5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods ending in a calendar month.
SECTION 1.25 TRANSACTION DATE. The term "Transaction Date" means the business
day we receive a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone as
described in Section 2.05, the term "Transaction Date" means the business day
the telephone transaction is received.
SECTION 1.26 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
- --------------------------------------------------------------------------------
PART II - ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. Contributions under this Contract are not fixed and
may be made at any time and in any amount subject to the limits described in
Section 1.11 of this Contract. (If you make a Contribution which qualifies as a
qualified plan rollover within the meaning of Section 402(a)(5) or 403(b)(8) of
the Code, and such amount will be commingled with other Contributions under this
Contract, such rollover contributions may not be rolled over to a qualified plan
at a future date, unless otherwise provided by the Code).
Each Contribution received by us will, before its allocation under this
Contract, be reduced by the amount of any applicable tax charge, as determined
by us.
Contributions will be allocated to the Division in accordance with the
instructions received on your application, unless later charged.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to or withdrawn or transferred from an Investment
Division, you will be credited or charged, as the case may be, with the number
of Accumulation Units determined by dividing said amount by the Accumulation
Unit Value for the appropriate Investment Division for the Valuation Period
which includes that date. The number of units you have in an Investment Division
on any date is equal to (i) the sum of any Accumulation Units that have been
allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation Units
that have been withdrawn pursuant to Sections 2.07 or 2.08 or transferred from
the Investment Division pursuant to Section 2.05. The amount in an Investment
Division on any date is equal to the product of (i) the number of Accumulation
Units in the Investment Division on that date and (ii) the Accumulation Unit
Value for the Investment Division for the Valuation Period which includes that
date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) your election and commencement of Annuity Benefits pursuant to
Section 3.03, (ii) receipt of due proof of your death, or (iii) termination of
this Contract, pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Section 2.07, 2.08, or 2.10 or
transferred from the Guaranteed Interest Division, pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date,
pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts, we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under this Contract terminates
on the earliest of (i) your election and commencement of annuity benefits
pursuant to Section 3.03, (ii) receipt of due proof of your death, and (iii)
Termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon termination of this Contract pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.11.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request, or
through the use of a touch tone telephone, transfer all or part of the amount
you have in a Division to one or more of the Divisions as follows: (1) amounts
in the Guaranteed Interest Division, Stock Division, Balanced Division and
Aggressive Stock Division may be transferred among such Divisions; (2) amounts
in the Money Market Division may be trans-
No. 92 SEPA Page 7
<PAGE>
ferred to other Divisions. Written authorization for touch tone telephone
initiated transfers is only required when authorization for telephone transfers
is requested. Upon advance written notice to you, we reserve the right to
discontinue the acceptance of transfer requests through the use of a touch tone
telephone. All transfers will be effective on the Transaction Date and will be
subject to our rules in effect at the time of transfer. With respect to the
Investment Division, the transfer will be made at the Accumulation Unit Value
next computed after the Transaction Date. No transfers are permitted to the
Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. You may elect by written notice, to
terminate this Contract. We will determine the Cash Value as of the Transaction
Date.
The payment of such Cash Value to you may be deferred by us in accordance with
the provisions of Section 4.07.
If this Contract is terminated, surrendered or exchanged prior to your
Retirement Date, any applicable tax charges we have paid may be deducted. If we
have previously deducted charges for applicable taxes from Contributions
pursuant to Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
your Contract.
We reserve the right to pay the Annuity Account Value under the Contract and
terminate this Contract. This right may be exercised if (i) no Contributions are
made on your behalf during the last three completed Contract Years and the
Annuity Account Value is less than $500, or (ii) a partial withdrawal is made
that would result in your Annuity Account Value falling below $500. We also
reserve the right to terminate this Contract if no Contributions have been made
within 120 months of the Contract Date shown on Page 3 of this Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount you have in the Divisions and the Annuity Account Value shall be
zero. We will be released from any and all liability for payments with respect
to the Contributions from which the Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. You may elect, by written notice to us, to
make a partial withdrawal from the Divisions.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to the person entitled to such payment as
designated in writing by you. The amount paid plus any withdrawal charge
applicable pursuant to Section 2.08 will be withdrawn from the amounts you have
in the Divisions. Unless we are instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise you and reserve the right to pay the
Annuity Account Value to you, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.09 or (b) the Cash Value is equal to the Annuity
Account Value, pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount, in proportion to the amount you have
in them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior partial withdrawal
charges made pursuant to this Section.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to your Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means, if you
have completed three Contract Years or attained age 59 years and 6 months, an
amount equal to the excess, if any, of (i) 10% of the sum of the Annuity Account
Value on the Transaction Date over (ii) cumulative prior withdrawals made
pursuant to Section 2.07 in the current Contract Year. If you have not completed
three Contract Years or attained age 59 years and 6 months, the Free Corridor
Amount is zero.
SECTION 2.10 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $10,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the
No. 92 SEPA Page 8
<PAGE>
Annuity Account Value, including the amount of any withdrawals pursuant to
Section 2.07 during that Contract Year. The charge will be allocated among the
Divisions in proportion to the amounts that you have in the Divisions.
If the Annuity Account Value is less than $10,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03,
or (b) the date of Termination of this Contract pursuant to Section 2.06 or
2.11, we will prorate the Annual Administrative Charge applicable to the
completed portion of the Current Contract Year and withdraw such amount in lieu
of the Annual Administrative Charge applicable to the completed portion of the
Current Contract Year and withdraw such amount in lieu of the full Annual
Administrative Charge described in this Section for the applicable part of that
Contract Year.
If the Annuity Account Value is $10,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
SECTION 2.11 DEATH BENEFIT. Upon receipt of due proof of your death, we will pay
to the beneficiary designated by you to receive such payment, pursuant to
Section 4.04 of this Contract, the amount of death benefit payable. The amount
of the death benefit is equal to the greater of (i) the Annuity Account Value
and (ii) the minimum death benefit. Such minimum death benefit is the sum of all
Contributions made pursuant to Section 2.01 (before reduction for any applicable
tax charge) less any withdrawals made pursuant to Section 2.07. Any such
withdrawal will reduce the minimum Death Benefit (as adjusted by any previous
such withdrawal) by an amount which is in the same proportion as the amount that
was withdrawn is to the Annuity Account Value. If, in accordance with the
provisions of Section 2.01, the Cash Value of another annuity contract issued by
us, or one of our affiliated or subsidiary life insurance companies, which
provides for a death benefit before retirement equal to the greater of the
Contract Cash Value or an alternate amount based on premiums paid or
contributions made under the annuity contract, is transferred to this Contract,
such Cash Value or alternative amount as of the date of transfer will be
included in the sum of all Contributions in lieu of the amount of Cash Value
transferred for purposes of the death benefit under this Contract.
We will pay the death benefit to your beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also, in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to your
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value shall be zero. We will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Account Value arose.
- --------------------------------------------------------------------------------
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
with respect to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of net
investment return referred to in Section 1.24 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.23, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounting, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under this Contract with respect to a payee is the monthly
amount provided with respect to a payee pursuant to the fifth paragraph of
Section 3.04. The amount of the fourth and each subsequent payment under a
Variable Annuity Benefit will be equal to the number of Annuity Units with
respect to such benefit, multiplied by the Average Annuity Unit Value for the
second calendar month immediately preceding the due date of the payment. The
number of Annuity Units with respect to a benefit is the number determined by
dividing the amount of the first monthly payment under such benefit by the
Annuity Unit Value for the Valuation Period which includes the due date of the
first monthly payment. (As described in Section 3.05, we will notify the payee
how each Variable Annuity payment is determined).
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of your
Retirement Date, provided you are then living, the Annuity Account Value shall
be applied to provide the Normal Form of Annuity Benefit, unless you elect (i)
to receive the Cash Value of this Contract in a single sum or (ii) to apply the
Annuity Account Value or Cash Value, whichever is applicable pursuant to the
first paragraph of Section 3.04, to provide an Annuity Benefit on any other form
offered by us, or one of our affiliated or subsidiary life insurance companies,
as elected by you, or (iii) to take partial withdrawals in amounts and at times
as required by the Code and, pursuant to Sections 2.07 and 3.05, subject to our
rules then in effect and any other applicable requirements under the Code.
We will provide notice and election forms to you not more than six months before
your Retirement Date.
No. 92 SEPA Page 9
<PAGE>
If you elect to terminate this Contract, prior to the Retirement Date, pursuant
to Section 2.06, an election may be made to receive an Annuity Benefit in Lieu
of the Cash Value.
We will have the right to require you to furnish pertinent information to
provide an Annuity Benefit and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form, issued by us or one of our affiliated or subsidiary
life insurance companies.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect, pursuant to the first or
third paragraph of Section 3.03, to receive an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the annuity form elected involves life contingencies or
(ii) the Cash Value, if the Annuity Form elected does not involve life
contingencies.
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charge from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to your Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below, or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your contract will be governed by our
supplementary contract then in effect.
If an amount is applied to provide an Annuity Benefit, the amount to be applied
will, in addition to any tax charge reduction, be reduced by an administrative
charge. The amount of such charge will be determined from time to time in
accordance with our general practices applicable on a uniform basis to all
contracts of the same type as this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under this Contract, as
indicated, on the Joint and Survivor Life Annuity Form (with 100% of the amount
of your payment continued to your spouse). The amounts of income provided under
the Fixed Annuity Benefit payable on the Life Annuity form and Joint and
Survivor Life Annuity Form are based on 3.5% interest and the 1983 Individual
Annuity Table "a" adjusted to a unisex basis based on a 50-50 split of males and
females, at age zero. The amount of income initially provided under the Variable
Annuity Benefit payable on the Life Annuity Form and the Joint and Survivor Life
Annuity Form are based on a 50-50 split of males and females, at age zero and an
Assumed Base Rate of Net Investment Income Return of 3.5% or 5%, whichever
applies pursuant to Section 1.24.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us based on 3.5% interest and the 1983 Individual Annuity Table
"a" adjusted to a unisex basis based on a 50-50 split of males and females, at
age zero, if such annuity form provides for a Fixed Annuity Benefit, and on the
same such projected 1983 Basic Table "a", adjusted to a unisex basis based on a
50-50 split of males and females, at age zero and an Assumed Base Rate of Net
Investment Income Return of 3.5% or 5%, whichever applies pursuant to Section
1.24 if such annuity form provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Your entire interest in this Contract
will be distributed or begin to be distributed, in accordance with Section
401(a)(9) of the Code and the applicable Treasury Regulations thereunder no
later than the first day of April following the calendar year in which you
attain age 70 and 6 months ("Required Beginning Date"). Your entire interest may
be distributed, as you elect, over (a) your life, or the lives of you and your
designated beneficiary, or (b) a period certain not extending beyond your life
expectancy, or the joint and last survivor expectancy of you and your designated
beneficiary. Distributions must be made in periodic payments at intervals of no
longer than one year. In addition, payments must be either non-increasing or
they may increase only as provided in Q & A F-3 of Section 1.401(a)(9)-1 of the
proposed Treasury Regulations, or any successor Regulation thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental death
benefit requirements of Section 401(a)(9)(G) of the Code, and applicable
Treasury Regulations, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless you otherwise elect prior to the time distributions are required to
begin, those life expectancies shall be recalculated annually. Such election
shall be irrevocable and shall apply to all subsequent years. The life
expectancy of a non-spouse beneficiary may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such beneficiary during
the calendar year in which you attain age 70 and six months, and payments for
subsequent years shall be calculated based on such life expectancy reduced by
one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If you die after distribution of your interest in this Contract has begun, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to your death.
No.92 SEPA Page 10
<PAGE>
If you die before distribution of your interest begins, distribution of your
entire interest shall be completed no later than December 31 of the calendar
year containing the fifth anniversary of your death, except to the extent that
an election is made to receive death benefit distributions in accordance with
(1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then your entire
interest may be distributed over the life of, or over a period certain not
greater than the life expectancy of, the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar year
immediately following the calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date that
distributions are required to begin in accordance with (1) above shall not be
earlier than the later of (A) December 31 of the calendar year immediately
following the calendar year of your death or (B) December 31 of the calendar
year in which you would have attained age 70 and 6 months.
For purposes of determining the "period certain" referred to in the immediately
preceding paragraph, life expectancy is computed by use of the expected return
multiples in Table V and VI of Treasury Regulation Section 1.72-9. For purposes
of distributions beginning after your death, unless otherwise elected by the
surviving spouse by the time distributions are required to begin, life
expectancies shall be recalculated annually. Such election shall be irrevocable
by the surviving spouse and shall apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies shall be calculated using
the attained age of such beneficiary during the calendar year in which
distributions are required to begin, pursuant to this Section, and payments for
any subsequent calendar year shall be calculated based on life expectancy
reduced by one for each calendar year which has elapsed since the calendar year
life expectancy was first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date, distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under this Contract was based on information that is
subsequently found to be incorrect, your benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by us will be charged against and
underpayments will be added to any payments thereafter falling due under this
Contract with respect to the payee, affecting as many such payments as are
necessary to correct the overpayment or underpayment. Our liability with respect
to a payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under this
Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under this Contract is physically or mentally incompetent to receive
such payment or is a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments (in the case of a minor, at a rate not exceeding $200 a month) to
such other person or institution, and will thereupon be fully discharged from
all liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, the payee thereunder
may elect, without the concurrence of any other person, to receive the commuted
value of any remaining payments, provided no person upon whose life the income
depends is surviving.
Pursuant to Section 3.03, upon your election of an annuity form providing
payments for a period certain, you may designate (with the right to change such
designation) a payee or payees to receive any payments that may become due after
the death of the person or persons upon whose life or lives the income may
depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's estate in
accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments. The commuted value of any such remaining payments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
No. 92 SEPA Page 11
<PAGE>
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT
AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT AMOUNT CONTINUED TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE
ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- -----------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED BASE
RATE OF NET INVESTMENT RETURN IS
Age 3.5% 5.0%
- -----------------------------------------------------------------------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
- -----------------------------------------------------------------------
We will, with respect to each payment under a Variable Annuity Benefit, notify
the payee of the number of Annuity Units and the Average Annuity Unit Value used
in determining the amount of each variable payment. Such notice will be mailed
with each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
- --------------------------------------------------------------------------------
PART IV -- GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire agreement between
the parties and the provisions of this Contract alone govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by an authorized officer of Equitable. This
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend this Contract
without the consent of any other person in order to comply with applicable laws
and regulations. Such rights shall include, but not be limited to, the right to
conform this Contract to reflect changes in the Code, applicable Treasury
Regulations, or published rulings of the Internal Revenue Service so that this
Contract will continue to be an Annuity.
SECTION 4.03 NONFORFEITABILITY, NONTRANSFERABILITY, AND ASSIGNMENTS. Your entire
interest under the Contract is nonforfeitable. This Contract is non-transferable
except by surrender to us. Your interest under this Contract may not be sold,
assigned, discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under this Contract may be assigned, commuted, or encumbered
by the payee, unless otherwise permitted as described herein, and, to the extent
permitted by law, no such amount will in any way be subject to any claim against
such payee.
SECTION 4.04 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any Death Benefit
payable pursuant to Section 2.11. Subject to Section 3.06, you may change such
designation from time to time during your lifetime and while this Contract is in
force. Any such designation or change will be made by written notice in a form
satisfactory to us. A change will, upon receipt at the Processing Office, take
effect as of the time the written notice was signed, whether or not you are
living on the Transaction Date, but without further liability as to any payment
or other settlement made by us before receipt of such change.
Unless otherwise specified in the designation, if you have designated two or
more persons as beneficiary, the beneficiary will be the designated person or
persons who survive you, and if more than one survive, they will share equally.
No 92 SEPA Page 12
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Any part of a death benefit payable pursuant to Section 2.11 for which there is
no designated beneficiary living at your death will be payable in a single sum
to your children who survive you, in equal shares, or should none survive, then
to your estate.
If you elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity elected by you, with respect to the beneficiary, subject to our
rules then in effect. If at your death there is no election in effect to apply
the single sum death benefit to provide an Annuity Benefit, the beneficiary may
make such an election. Any such election must meet the minimum distribution
requirements under the Code, as described in Section 3.05.
SECTION 4.05 DISQUALIFICATION. In the event that this Contract fails to qualify
as an Annuity, we will have the right, upon receiving notice of such fact, to
terminate this Contract and pay to you the Annuity Account Value less a
deduction for the appropriate part attributable to you of any Federal income tax
payable which would not have been payable if you had an Annuity.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to you or the Employer,
as applicable, we reserve the right, at our sole discretion, to limit
Contributions under this Contract, as required by law or if such contributions
are in excess of the maximum amounts as permitted under the Code.
SECTION 4.07 DEFERMENT. Application of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payment in order to protect
persons with interests in the Investment Divisions. We can defer payment of any
portion of your Annuity Account Value in the Guaranteed Interest Division for up
to six months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year we will furnish you
with a notice showing the following:
(1) the amount you have in the Guaranteed Interest Division,
(2) the total number of Accumulation Units you have in the Stock Division,
Balanced Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Values,
(4) the amount you have in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division,
(5) the Annuity Account Value,
(6) the Cash Value, and
(7) the amount of death benefit payable with respect to you.
We will also furnish annual calendar year reports concerning the status of the
Annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each variable
Annuity Benefit payment, if any.
SECTION 4.09 AGE. If your age has been misstated, any benefits will be those
which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
No. 92 SEPA Page 13
<PAGE>
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APPLICATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
PROCESSING OFFICE: INDIVIDUAL ANNUITY CENTER, P.O. BOX 2996,
NEW YORK, NEW YORK 10116-2996
QUALIFIED VARIABLE ANNUITY CONTRACT APPLICATION FOR:
EQUITABLE'S INDIVIDUAL QUALIFIED DEFERRED VARIABLE ANNUITY
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TYPE OF PURCHASE (Complete One Plan Only)
A. |_| TSA PUBLIC SCHOOL (GV-PS-I)
B. |_| TSA 501(C)(3) ORGANIZATION (GV-501-I)
C. |_| TSA University (GV-PS-U-I)
D. |_| IRA Individual (Including IRA to IRA transfers) (GV-IRA 4971)
E. |_| IRA Unit Billed (Including IRA to IRA transfers) (GV-IRA 4971)
F. |_| IRA QUALIFIED PLAN ROLLOVER-- (QP IRA) (Distribution from a Qualified
Plan) (GV-IRA 4971-71)
G. |_| EDC (Public Employee Deferred Compensation) (GV-EDC 4991)
H. |_| EDC (Tax Exempt Organization) (GV-EDC 4991-SU-080)
I. |X| SEP (Simplified Employee Pension) (GV-SEP 4981)
J. |_| SARSEP (Salary Reduction SEP) _________________________________________
K. |_| CORPORATE TRUSTEED (GV-CORP 4941-41)
L. |_| KEOGH/HR-10 TRUSTEE (GV HR-10 4911-11)
(trustee owned)
M. |_| KEOGH/HR-10 (GV-HR-10 4911)
(not trustee owned) (issued to existing units only)
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DO NOT COMPLETE THIS SECTION IF 1.D OR 1.F CHECKED ABOVE
2. EMPLOYER/PLAN NAME
|A|B|C|_|C|O|M|P|A|N|Y|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
3. |_| EXISTING UNIT NO. |_|_|_|_|_|_|-|_|_|_|
|x| NEW UNIT |0|0|0|1|2|3|-|4|5|6|
(FOR NEW UNIT BILLED IRA, EDC, TSA, SEP, SARSEP, OR TRUSTEED PLANS. FORM
983-135B IS REQUIRED)
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4. PROPOSED ANNUITANT Print name to appear on Contract.
|J|O|H|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|D|O|E|_|_|_|_|_|
FIRST MIDDLE INITIAL LAST
A. |X| MR. |_| MRS. |_| MS. |_| OTHER ____
B. Date of Birth: Year 1954 Month JANUARY Day 27
---- ------- --
C. Age at Nearest Birthday: 38 D. |X| Male |_| Female
----
E. Annuitant's Mailing Address: F. State of Residence: N.J.
----
No., St. |1|7|_|E|L|M|_|S|T|R|E|E|T|_|_|_|_|_|_|_|_|_|_|_|_|
City |A|N|Y|T|O|W|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |U|S| Zip Code |0|2|0|0|0|-|0|0|0|1|
G. Telephone Number (101) 222 - 3456 |X| Home |_| Work
H. Social Security No. (Required): |1|2|3|-|4|5|-|6|7|8|9|
I. Are you associated with or employed by a member of National
Association of Securities Dealers, Inc.(NASD)? |_| Yes |X| No
5. OWNER (Print Name) -- If Trusteed or EDC Plan Print Name of Owner, for all
other Markets Print Name of Annuitant.
JOHN DOE
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a. Title ____________________________________________________________________
6. RETIREMENT AGE 65
---------------------------------------------------------------
7. BENEFICIARY -- Include FULL NAME and RELATIONSHIP to Annuitant. (For Death
Benefit upon Annuitant's death before Retirement Date.) (BENEFICIARY MUST
BE THE OWNER FOR EDC PURCHASES AND FOR MOST TRUSTEED PLANS.)
JANE DOE - WIFE
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8. CONTRIBUTION ALLOCATION
Guaranteed Interest Division 20%
-----
Stock Division 20%
-----
Money Market Division 20%
-----
Balanced Division 20%
-----
Aggressive Stock Division 20%
-----
(PERCENTAGES IN WHOLE NUMBERS) Total 100%
9. CONTRIBUTIONS (NOT REQUIRED FOR 1.F)
A. Reminder Notice (Billing) Required |_| Yes |X| No
IF YES, COMPLETE B-C-D-E
B. REMINDER DATE Required for Individual IRA or otherwise must agree
with existing unit or attached 983-135B. MONTH _________ DAY __________
C. REMINDER FREQUENCY
|_| Annual |_| Semi-Annual
|_| Quarterly |_| Monthly
Available for TSA, EDC, SARSEP AND CORPORATE TRUSTEED AND UNIT BILLED IRA
ONLY:
|_| Semi-Monthly |_| Bi-Weekly
D. REMINDER AMOUNT $_________________________________
E. BILLING MONTHS TO BE EXCLUDED - TSA ONLY
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
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10.EXPECTED FIRST CONTRACT YEAR
Contribution. $1000
----------------------------------------------------------------
IF AN ADVANCED BILLING AND/OR CONTRACT DATE ARE REQUESTED, COMPLETE #9B
AND #12.
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(FOR PROCESSING OFFICE USE)
Unit Name ___________________________ Reminder Date ___________________________
Cert. or App# _______________________ Amendment Required_______________________
EDC Emp. Add. _______________________ Emp. Fed. ID# ___________________________
Frequency ___________________________ Contract Date ___________________________
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Receipt Date Batch # Inquiry # Processor
- --------------------------------------------------------------------------------
180-1000
<PAGE>
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10. Did you receive the Separate Account Prospectus? |X| Yes |_| No
Date shown on Prospectus January 1, 1992
----------------------------------------------------
Date of any supplement to Prospectus _______________________________________
11. Items (a) through (f) are to be answered by the annuitant. We are
required by the NASD to ask these questions.
(a) Name of Employer: ABC Company
------------------------------------------------------
(b) Address of Employer:
10 Main Street
---------------------------------------------------------------------------
Anytown, NJ
---------------------------------------------------------------------------
(c) Occupation Sales
-------------------------------------------------------------
(d) Assuming the contract applied for will be issued, will any existing
insurance or annuity be replaced or changed (or has it been)?
| | Yes |X| No
(e) Estimated Family Annual Income $100,000
----------------------------------------
(f) Estimated Net Worth $250,000
-----------------------------------------------------
(g) Investment Objective: |_| Income |X| Income & Growth
|_| Aggressive Growth |_| Growth |_| Safety of Principal
12. SPECIAL INSTRUCTIONS
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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13. Amount paid with this form: $1000
(If a check is submitted with this request, no advanced Contract Date is
permitted.) BACKDATING IS NOT PERMITTED.
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the certificate is not issued. The Contract Date
will be the date of receipt by Equitable of this application, properly signed
and completed, and Contribution at Equitable's Processing Office.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGREEMENT
All information and statements furnished in this application are true and
complete to the best of my knowledge and belief. I understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations.
IT IS UNDERSTOOD THAT THE ANNUITY ACCOUNT VALUE ATTRIBUTABLE TO ALLOCATIONS TO
THE INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT AND VARIABLE ANNUITY BENEFIT
PAYMENTS MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
UNDER THE PENALTIES OF PERJURY I (WE) CERTIFY THAT THE SOCIAL SECURITY NUMBER(S)
OR TAX IDENTIFICATION NUMBER(S) PROVIDED ON THIS FORM IS (ARE) TRUE, CORRECT AND
COMPLETE.
- --------------------------------------------------------------------------------
LAWS IN YOUR STATE MAY MAKE IT A CRIME TO FILL OUT AN INSURANCE OR ANNUITY
APPLICATION WITH INFORMATION YOU KNOW IS FALSE OR TO LEAVE OUT MATERIAL FACTS.
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X__________________________________ Date_______ City __________ State __________
Signature of Annuitant
X__________________________________ Date_______ City __________ State __________
Signature of Authorized Individual (REQUIRED FOR EDC AND
TRUSTEED) OR OWNER
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGENT'S SECTION
Will any existing insurance or annuity be replaced or changed (or has it been),
assuming the Contract will be issued? | | Yes | | No
|_| I (we) certify that a prospectus for the Contract has been given to the
proposed Annuitant and that no written sales materials other than those approved
by Equitable have been used.
EQUI-VEST issues must adequately reflect the commission interest of all Agents
on previous contracts.
- --------------------------------------------------------------------------------
Print Agent's Name(s) Initial of Agent Agent Agency District Agent's
(Service Agent first) Last Name Number % Code Manager Code Signature
- --------------------------------------------------------------------------------
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- --------------------------------------------------------------------------------
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FOR AGENCY COMPLIANCE FILE: INITIALS OF AGENCY EQS___ Date ___ District EQS ___
Date ____
- --------------------------------------------------------------------------------
(FOR ASU USE)
ASU Code and App. No. __________________________________________________________
ASU Rec'd. _____________________________________________________________________
Date to Proc. Off. ________________________________________________ Campaign |_|
Agent(s) shown above is Equity Qualified and is licensed in the state where the
request is signed. Above Agent information verified by ASM (Registered Rep)
- --------------------------------------------------------------------------------
Application reviewed by ________________________________________________________
- --------------------------------------------------------------------------------
180-1000
<PAGE>
[EQUITABLE LOGO]
Owner:
Annuitant:
Contract Number:
Issue Date:
Contract Date:
Retirement Date:
- --------------------------------------------------------------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P O Box 2996, New York,
New York 10116-2996
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division (referred to in this Contract as the
"Investment Divisions") or to the Guaranteed Interest Division, in accordance
with Sections 2.02, 2.03 and 2.04 as directed by you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide the
Annuitant with an Annuity Benefit or a Cash Value benefit if the Annuitant is
then living, and
o TO PROVIDE the Annuitant with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract "we", "our", and "us" mean The
Equitable Life Assurance Society of the United States ("Equitable"). "You" and
"your" mean the Annuitant at the time a right is exercised by the Annuitant.
TEN DAYS TO EXAMINE CONTRACT -- You may cancel this Contract by returning it to
us within ten days after receipt of it. Upon such cancellation, we will refund
any Contribution made to us under this Contract, plus or minus any investment
gain or loss experienced in the Investment Divisions of the Separate Account
from the date such Contribution is allocated to such Investment Division to the
date we receive the returned Contract.
/s/Molly K. Heines /s/Joseph J. Melone
Molly K. Heines Joseph J. Melone
Vice President and Secretary Chairman of the Board and Chief
Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT 1S EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.24 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK, PLUS
THE INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92 SEPB
<PAGE>
The Contract is issued in consideration of the payment to us of the
Contributions made under the terms of the Contract.
The provisions on the following pages are part of this Contract. A copy of the
application is incorporated in and made part of this Contract.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
Section 1.01 - Annuitant.....................................................4
1.02 - Annuity.......................................................4
1.03 - Annuity Account Value.........................................4
1.04 - Annuity Benefit...............................................4
1.05 - Cash Value....................................................4
1.06 - Class of Contracts............................................4
1.07 - Code..........................................................4
1.08 - Contract .....................................................4
1.09 - Contract Date.................................................4
1.10 - Contract Year.................................................5
1.11 - Contribution..................................................5
1.12 - Divisions.....................................................5
1.13 - Eligible Annuity Certain......................................5
1.14 - Employer......................................................5
1.15 - Guaranteed Interest Rate......................................5
1.16 - Joint and Survivor Life
Annuity Form..................................................5
1.17 - Life Annuity Form.............................................5
1.18 - Normal Form...................................................5
1.19 - Period Certain Annuity........................................5
1.20 - Plan..........................................................5
1.21 - Processing Office.............................................5
1.22 - Retirement Date...............................................5
1.23 - Separate Account..............................................5
1.24 - Separate Account
Definitions...................................................6
1.25 - Transaction Date..............................................7
1.26 - Trust.........................................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions.................................................7
2.02 - Separate Account
Investment Divisions..........................................7
2.03 - Guaranteed Interest
Division......................................................7
2.04 - Allocation to Divisions.......................................7
2.05 - Transfers Among Divisions.....................................7
2.06 - Termination of this Contract..................................8
2.07 - Partial Withdrawals...........................................8
2.08 - Charges for Partial Withdrawals...............................8
2.09 - Free Corridor Amount..........................................8
2.10 - Annual Administrative Charge..................................8
2.11 - Death Benefit.................................................9
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit.........................................9
3.02 - Variable Annuity Benefit......................................9
3.03 - Election and Commencement
of Annuity Benefits...........................................9
3.04 - Amount of Annuity Benefits...................................10
3.05 - Payment of Annuity Benefits..................................10
ANNUITY BENEFITS
Section 4.01 - Contract.....................................................12
4.02 - Statutory Compliance.........................................12
4.03 - Nonforfeitability,
Nontransferability, and Assignments..........................12
4.04 - Beneficiary..................................................12
4.05 - Disqualification.............................................12
4.06 - Future Contributions.........................................12
4.07 - Deferment....................................................13
4.08 - Annual Notice................................................13
4.09 - Age..........................................................13
No. 92 SEPB Page 2
<PAGE>
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PART I -- DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means the person who owns this
Contract as shown on Page 3 and on whose behalf this Contract has been purchased
and maintained, and who exercises all rights under the terms of this Contract.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the written program constituting a "Simplified Employee
Pension," as described in Section 408(k) of the Code, as adopted by the
Employer, which meets the requirements for qualification under Section 408(b) of
the Code.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account, pursuant to Sections 2.02 and
2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by Equitable pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.16, 1.17, 3.01, and 3.02) refer to monthly payments to be
made under an Annuity Benefit. You may wish to have your Annuity Benefit paid at
other intervals, such as quarterly, semi-annually, or annually, instead of
monthly. You may elect this at the time you elect the Annuity Benefit form
described in Section 3.03; in that event, all references in this Contract to
monthly payments will be deemed to mean payments at the frequency you elect,
subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less any applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where:
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the excess of (i) the Annuity Account Value over (ii) the Free Corridor
Amount defined in Section 2.09; and
(b) is the excess, if any, of (i) 8% of the total Contributions made during the
Current Contract Year and the nine preceding Contract Years over (ii) the
cumulative total of any prior charges for partial withdrawals made pursuant
to Section 2.08.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount. A withdrawal
charge will not apply, which means the Cash Value will equal the Annuity Account
Value upon any of the following occurrences:
(i) your attainment of age 59 years and 6 months and your completion of at
least five Contract Years, or
(ii) a distribution is made for a refund of a Contribution which exceeds the
amounts which may be contributed pursuant to Section 219 and/or 408(o) of
the Code and the request for a distribution is received within one month
of the date on which such Contribution was made, or
(iii) a distribution of deferrals disallowed by reason of failure to meet the
requirements of Section 408(k)(6)(A)(ii) of the Code, including income
thereon and less any loss allowable thereto, is made no later than April
15 following the calendar year of the Employer's notification of such
disallowance, or
(iv) a distribution of "excess contributions," as such term is defined in
Section 408(k)(6)(C)(ii) of the Code, including the income thereon and
less any loss allowable thereto, is made no later than the end of the
plan year of the Simplified Employee Pension following the plan year in
which such excess contributions were made, or
(v) a distribution of "excess deferrals" as such term is defined in Section
402(g)(2) of the Code, including income thereon and less any loss
allowable thereto, is made no later than April 15 following the year in
which such excess deferrals were made, or
(vi) your completion of at least three Contract Years and you use the amount
withdrawn to purchase from us a Period Certain Annuity of at least 10
years, or
(vii) your Annuity Account Value is applied to the election of a Life Annuity
Form and Joint and Survivor Life Annuity Form distribution option, or
(viii) your completion of at least twelve Contract Years, or
(ix) your attainment of age 55, your completion of at least five Contract
Years and you use the amount withdrawn to purchase from us an Eligible
Annuity certain, or
(x) you die and a distribution is made to the beneficiary.
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract which is
established for the exclusive benefit of you or your beneficiary.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
No. 92 SEPB Page 4
<PAGE>
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made in cash
or by check to us on your behalf with respect to this Contract. We are under no
obligation to accept any Contribution less than $20.00.
Except in the case of a rollover contribution (as permitted by Sections
402(a)(5), 402(a)(6), 402(a)(7), 403(a)(4), 403(b)(8), or 408(d)(3) of the
Code), or a Contribution made in accordance with the terms of a Simplified
Employee Pension ("SEP") as contained in Section 408(k) of the Code, no
Contributions will be accepted unless they are in cash, and the total of such
contributions shall not exceed $2,000 for any taxable year. In addition, amounts
transferred to this Contract, to an individual retirement account, or annuity
contract meeting the requirements of Section 408 of the Code are also not
subject to the $2,000 limit on contributions.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following Divisions described in this
Contract:
(a) the Guaranteed Interest Division, and
(b) the Investment Divisions of the Separate Account.
SECTION 1.13 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us, which extends beyond
your attainment of age 59 years and 6 months and does not permit any prepayment
of the unpaid principal (that is no withdrawal or single sum payment) prior to
your attainment of age 59 years and 6 months.
SECTION 1.14 EMPLOYER. The term "Employer" means the sole proprietor,
partnership or corporation that assumes in writing the obligations of the
program constituting the Simplified Employee Pension. A sole proprietor is
deemed to be his/her own Employer and a partnership is deemed to be the Employer
of each partner.
SECTION 1.15 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on Page 3 of
this Contract. Section 2.03 describes the determination of the rate to apply
thereafter.
SECTION 1.16 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payment depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. The
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.17 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.18 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means, (i) if you have a living spouse at your Retirement Date,
the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form
with your spouse as the contingent annuitant (with 100% of the monthly payment
amount continued to your spouse), and (ii) if you do not have a living spouse at
the Retirement Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.19 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
your payments as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 1.20 PLAN. The term "Plan" means a Simplified Employee Pension Plan, as
described in Section 408(k) of the Code.
SECTION 1.21 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P O Box 2996, New York, New York 10116-2996, or such
other location as we shall designate by advance written notice to you.
SECTION 1.22 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain your retirement age as shown on Page 3 of this Contract. Before the
Retirement Date you may elect to change the Retirement Date to another
Retirement Date, which may be any date after the filing of the election (other
than the 29th, 30th, or 31st day of any month). No Retirement Date shall be
earlier than the date you attain age 59 years and 6 months nor shall be later
than the first day of April following the calendar year in which you attain age
70 years and 6 months. Any election for such change must be made in writing by
you and shall not take effect until received by us at our Processing Office.
SECTION 1.23 SEPARATE ACCOUNT. The term the "Separate Account" means our
Separate Account A, which is organized as a unit investment trust (a type of
investment company). We established the Separate Account and it is maintained in
accordance with the laws of New York State. Realized and unrealized gains and
losses from the assets of the Separate Account are credited to or charged
against it without regard to our other income, gains or losses. Assets are put
in the Separate Account to support this Contract and other variable annuity
contracts. Assets may be put in the Separate Account for other purposes, but not
to support contracts or policies other than variable annuities and variable life
insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these Contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
No. 92 SEPB Page 5
<PAGE>
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
the Trust. We reserve the right to change the designated Trust or to add
designated trusts or investment companies. The Investment Divisions available
are the Stock Division, the Money Market Division, the Balanced Division and the
Aggressive Stock Division. The Guaranteed Interest Division is not part of the
Separate Account, but rather is an asset of our General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which Equitable is open, the New York Stock Exchange
is open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments it is
permitted by law to make. We reserve the right to
(i) cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such a committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any other
form;
(v) add Investment Divisions (or subdivisions of Investment Divisions) to, or
remove Investment Divisions (or subdivisions of Investment Divisions) from
the Separate Account (the term "Investment Division" in this Contract
shall then refer to any other Investment Division in which the assets of a
Class of Contracts to which this Contract belongs, were placed);
(vi) combine any two or more Investment Divisions (or subdivisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law. Assets of the Investment Divisions attributable to this
Contract shall be subject to a daily charge (after any deductions to provide for
any applicable tax charges) at a rate not to exceed 1.49% per year for each of
the Stock, Money Market and Balanced Divisions, and 1.34% per year, for the
Aggressive Stock Division, for financial accounting, death benefits, mortality
risk, expenses and expense risks. The charge shall be made in accordance with
Subsection (c) of the Net Investment Factor provision in Section 1.24. The
relative proportion of these charges may be modified. The daily charge, plus the
investment advisory fee charges and direct operating expense charges of the
Trust shall not exceed a total annual rate of 1.75% of the value of the assets
of the Investment Divisions attributable to this Contract. The maximum rate may
not be altered without your approval.
SECTION 1.24 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment Division
for the Valuation Period. For this purpose, we use the share value reported
to us by the Trust.
b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
taking into account any amounts allocated or withdrawn for that Valuation
Period).
c) is the daily asset charge for the expenses of this Contract, times the
number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where your Contributions are invested and which is used in
determining the amount you have in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first Contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base Rates of Net Investment Return of 5% or 3.5% a year, respectively. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
No. 92 SEPB Page 6
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AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods ending in a calendar month.
SECTION 1.25 TRANSACTION DATE. The term "Transaction Date" means the business
day we receive a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone as
described in Section 2.05, the term "Transaction Date" means the business day
the telephone transaction is received.
SECTION 1.26 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
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PART II -- ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. Contributions under this Contract are not fixed and
may be made at any time and in any amount subject to the limits described in
Section 1.11 of this Contract. (If you make a Contribution which qualifies as a
qualified plan rollover within the meaning of Section 402(a)(5) or 403(b)(8) of
the Code, and such amount will be commingled with other Contributions under this
Contract, such rollover contributions may not be rolled over to a qualified plan
at a future date, unless otherwise provided by the Code). Each Contribution
received by us will, before its allocation under this Contract, be reduced by
the amount of any applicable tax charge, as determined by us.
Contributions will be allocated to the Division in accordance with the
instructions received on your application, unless later changed.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to or withdrawn or transferred from an Investment
Division, you will be credited or charged, as the case may be, with the number
of Accumulation Units determined by dividing said amount by the Accumulation
Unit Value for the appropriate Investment Division for the Valuation Period
which includes that date. The number of units you have in an Investment Division
on any date is equal to (i) the sum of any Accumulation Units that have been
allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation Units
that have been withdrawn pursuant to Sections 2.07 or 2.08 or transferred from
the Investment Division pursuant to Section 2.05. The amount in an Investment
Division on any date is equal to the product of (i) the number of Accumulation
Units in the Investment Division on that date and (ii) the Accumulation Unit
Value for the Investment Division for the Valuation Period which includes that
date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) your election and commencement of Annuity Benefits pursuant to
Section 3.03, (ii) receipt of due proof of your death, or (iii) termination of
this Contract, pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Section 2.07, 2.08, or 2.10 or
transferred from the Guaranteed Interest Division, pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date,
pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts, we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under this Contract terminates
on the earliest of (i) your election and commencement of annuity benefits
pursuant to Section 3.03, (ii) receipt of due proof of your death, and (iii)
termination of this Contract, pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon termination of this Contract pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.11.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request, or
through the use of a touch tone telephone, transfer all or part of the amount
you have in a Division to one or more of the Divisions as follows: (1) amounts
in the Guaranteed Interest Division, Stock Division, Balanced Division and
Aggressive Stock Division may be transferred among such Divisions; (2) amounts
in the Money Market Division may be transferred to other Divisions. Written
authorization for touch tone telephone initiated transfers is only required when
authorization for telephone transfers is requested. Upon advance written notice
to you, we reserve the right to discontinue the acceptance of transfer requests
No. 92 SEPB Page 7
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through the use of a touch tone telephone. All transfers will be effective on
the Transaction Date and will be subject to our rules in effect at the time of
transfer. With respect to the Investment Division, the transfer will be made at
the Accumulation Unit Value next computed after the Transaction Date. No
transfers are permitted to the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. You may elect by written notice, to
terminate this Contract. We will determine the Cash Value as of the Transaction
Date.
The payment of such Cash Value to you may be deferred by us in accordance with
the provisions of Section 4.07.
If this Contract is terminated, surrendered or exchanged prior to your
Retirement Date, any applicable tax charges we have paid may be deducted. If we
have previously deducted charges for applicable taxes from Contributions
pursuant to Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
your Contract.
We reserve the right to pay the Annuity Account Value under the Contract and
terminate this Contract. This right may be exercised if (i) no Contributions are
made on your behalf during the last three completed Contract Years and the
Annuity Account Value is less than $500, or (ii) a partial withdrawal is made
that would result in your Annuity Account Value falling below $500. We also
reserve the right to terminate this Contract if no Contributions have been made
within 120 days of the Contract Date shown on Page 3 of this Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount you have in the Divisions and the Annuity Account Value shall be
zero. We will be released from any and all liability for payments with respect
to the Contributions from which the Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. You may elect, by written notice to us, to
make a partial withdrawal from the Divisions.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to the person entitled to such payment as
designated in writing by you. The amount paid plus any withdrawal charge
applicable pursuant to Section 2.08 will be withdrawn from the amounts you have
in the Divisions. Unless we are instructed otherwise, the amount withdrawn
(including any withdrawal charge) will be allocated among the Divisions in
proportion to the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise you and reserve the right to pay the
Annuity Account Value to you, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.09 or (b) the Cash Value is equal to the Annuity
Account Value, pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount, in proportion to the amount you have
in them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract Years
over (ii) the cumulative total of any prior partial withdrawal charges made
pursuant to this Section.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to your Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means, if you
have completed three Contract Years or attained age 59 years and 6 months, an
amount equal to the excess, if any, of (i) 10% of the sum of the Annuity Account
Value on the Transaction Date over (ii) cumulative prior withdrawals made
pursuant to Section 2.07 in the current Contract Year. If you have not completed
three Contract Years or attained age 59 years and 6 months, the Free Corridor
Amount is zero.
SECTION 2.10 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $10,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value, including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts that you have in
the Divisions.
No. 92 SEPB Page 8
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If the Annuity Account Value is less than $10,000, on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03,
or (b) the date of Termination of this Contract pursuant to Section 2.06 or
2.11, we will prorate the Annual Administrative Charge applicable to the
completed portion of the Current Contract Year and withdraw such amount in lieu
of the full Annual Administrative Charge described in this Section for the
applicable part of that Contract Year.
If the Annuity Account Value is $10,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
SECTION 2.11 DEATH BENEFIT. Upon receipt of due proof of your death, we will pay
to the beneficiary designated by you to receive such payment, pursuant to
Section 4.04 of this Contract, the amount of death benefit payable. The amount
of the death benefit is equal to the greater of (i) the Annuity Account Value
and (ii) the minimum death benefit. Such minimum death benefit is the sum of all
Contributions made pursuant to Section 2.01 (before reduction for any applicable
tax charge) less any withdrawals made pursuant to Section 2.07. Any such
withdrawal will reduce the minimum Death Benefit (as adjusted by any previous
such withdrawal) by an amount which is in the same proportion as the amount that
was withdrawn is to the Annuity Account Value. If, in accordance with the
provisions of Section 2.01, the Cash Value of another annuity contract issued by
us, or one of our affiliated or subsidiary life insurance companies, which
provides for a death benefit before retirement equal to the greater of the
Contract Cash Value or an alternate amount based on premiums paid or
contributions made under the annuity contract, is transferred to this Contract,
such Cash Value or alternative amount as of the date of transfer will be
included in the sum of all Contributions in lieu of the amount of Cash Value
transferred for purposes of the death benefit under this Contract.
We will pay the death benefit to your beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also, in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to your
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value shall be zero. We will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Account Value arose.
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PART III -- ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
with respect to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of net
investment return referred to in Section 1.24 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.23, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounting, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under this Contract with respect to a payee is the monthly
amount provided with respect to a payee pursuant to the fifth paragraph of
Section 3.04. The amount of the fourth and each subsequent payment under a
Variable Annuity Benefit will be equal to the number of Annuity Units with
respect to such benefit, multiplied by the Average Annuity Unit Value for the
second calendar month immediately preceding the due date of the payment. The
number of Annuity Units with respect to a benefit is the number determined by
dividing the amount of the first monthly payment under such benefit by the
Annuity Unit Value for the Valuation Period which includes the due date of the
first monthly payment. (As described in Section 3.05, we will notify the payee
how each Variable Annuity payment is determined).
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of your
Retirement Date, provided you are then living, the Annuity Account Value shall
be applied to provide the Normal Form of Annuity Benefit, unless you elect (i)
to receive the Cash Value of this Contract in a single sum or (ii) to apply the
Annuity Account Value or Cash Value, whichever is applicable pursuant to the
first paragraph of Section 3.04, to provide an Annuity Benefit on any other form
offered by us, or one of our affiliated or subsidiary life insurance companies,
as elected by you, or (iii) to take partial withdrawals in amounts and at times
as required by the Code and, pursuant to Sections 2.07 and 3.05, subject to our
rules then in effect and any other applicable requirements under the Code.
We will provide notice and election forms to you not more than six months before
your Retirement Date.
If you elect to terminate this Contract, prior to the Retirement Date, pursuant
to Section 2.06, an election may be made to receive an Annuity Benefit in lieu
of the Cash Value.
No. 92 SEPB Page 9
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We will have the right to require you to furnish pertinent information to
provide an Annuity Benefit and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form, issued by us or one of our affiliated or subsidiary
life insurance companies.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect, pursuant to the first or
third paragraph of Section 3.03, to receive an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the annuity form elected involves life contingencies or
(ii) the Cash Value, if the Annuity Form elected does not involve life
contingencies.
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charge from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to your Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below, or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your contract will be governed by our
supplementary contract then in effect.
If an amount is applied to provide an Annuity Benefit, the amount to be applied
will, in addition to any tax charge reduction, be reduced by an administrative
charge. The amount of such charge will be determined from time to time in
accordance with our general practices applicable on a uniform basis to all
contracts of the same type as this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under this Contract, as
indicated, on the Joint and Survivor Life Annuity Form (with 100% of the amount
of your payment continued to your spouse). The amounts of income provided under
the Fixed Annuity Benefit payable on the Life Annuity Form and Joint and
Survivor Life Annuity Form are based on 3.5% interest and the 1983 Individual
Annuity Table "a" adjusted to a unisex basis based on a 50-50 split of males and
females, at age zero. The amount of income initially provided under the Variable
Annuity Benefit payable on the Life Annuity Form and the Joint and Survivor Life
Annuity Form are based on a 50-50 split of males and females, at age zero and an
Assumed Base Rate of Net Investment Income Return of 3.5% or 5%, whichever
applies pursuant to Section 1.24.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us based on 3.5% interest and the 1983 Individual Annuity Table
"a" adjusted to a unisex basis based on a 50-50 split of males and females, at
age zero, if such annuity form provides for a Fixed Annuity Benefit, and on the
same such projected 1983 Basic Table "a", adjusted to a unisex basis based on a
50-50 split of males and females, at age zero and an Assumed Base Rate of Net
Investment Income Return of 3.5% or 5%, whichever applies pursuant to Section
1.24 if such annuity form provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Your entire interest in this Contract
will be distributed or begin to be distributed, in accordance with Section
401(a)(9) of the Code and the applicable Treasury Regulations thereunder no
later than the first day of April following the calendar year in which you
attain age 70 years and 6 months ("Required Beginning Date"). Your entire
interest may be distributed, as you elect, over (a) your life, or the lives of
you and your designated beneficiary, or (b) a period certain not extending
beyond your life expectancy, or the joint and last survivor expectancy of you
and your designated beneficiary. Distributions must be made in periodic payments
at intervals of no longer than one year. In addition, payments must be either
non-increasing or they may increase only as provided in Q & A F-3 of Section
1.401(a)(9)-1 of the proposed Treasury Regulations, or any successor Regulation
thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental death
benefit requirements of Section 401(a)(9)(G) of the Code, and applicable
Treasury Regulations, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless you otherwise elect prior to the time distributions are required to
begin, those life expectancies shall be recalculated annually. Such election
shall be irrevocable and shall apply to all subsequent years. The life
expectancy of a non-spouse beneficiary may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such beneficiary during
the calendar year in which you attain age 70 years and 6 months, and payments
for subsequent years shall be calculated based on such life expectancy reduced
by one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If you die after distribution of your interest in this Contract has begun, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to your death.
No. 92 SEPB Page 10
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If you die before distribution of your interest begins, distribution of your
entire interest shall be completed no later than December 31 of the calendar
year containing the fifth anniversary of your death, except to the extent that
an election is made to receive death benefit distributions in accordance with
(1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then your entire
interest may be distributed over the life of, or over a period certain not
greater than the life expectancy of, the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar year
immediately following the calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date that
distributions are required to begin in accordance with (1) above shall not be
earlier than the later of (A) December 31 of the calendar year immediately
following the calendar year of your death or (B) December 31 of the calendar
year in which you would have attained age 70 years and 6 months.
For purposes of determining the "period certain" referred to in the immediately
preceding paragraph, life expectancy is computed by use of the expected return
multiples in Tables V and VI of Treasury Regulation Section 1.72-9. For purposes
of distributions beginning after your death, unless otherwise elected by the
surviving spouse by the time distributions are required to begin, life
expectancies shall be recalculated annually. Such election shall be irrevocable
by the surviving spouse and shall apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies shall be calculated using
the attained age of such beneficiary during the calendar year in which
distributions are required to begin, pursuant to this Section, and payments for
any subsequent calendar year shall be calculated based on life expectancy
reduced by one for each calendar year which has elapsed since the calendar year
life expectancy was first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date, distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under this Contract was based on information that is
subsequently found to be incorrect, your benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by us will be charged against and
underpayments will be added to any payments thereafter falling due under this
Contract with respect to the payee, affecting as many such payments as are
necessary to correct the overpayment or underpayment. Our liability with respect
to a payee is limited to the correct information and the actual amounts used to
provide the benefits then in force with respect to the payee under this
Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under this Contract is physically or mentally incompetent to receive
such payment or is a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments (in the case of a minor, at a rate not exceeding $200 a month) to
such other person or institution, and will thereupon be fully discharged from
all liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, the payee thereunder
may elect, without the concurrence of any other person, to receive the commuted
value of any remaining payments, provided no person upon whose life the income
depends is surviving.
Pursuant to Section 3.03, upon your election of an annuity form providing
payments for a period certain, you may designate (with the right to change such
designation) a payee or payees to receive any payments that may become due after
the death of the person or persons upon whose life or lives the income may
depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a person or persons to receive any payments
or installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's estate in
accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments. The commuted value of any such remaining payments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
No. 92 SEPB Page 11
<PAGE>
- --------------------------------------------------------------------------------
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT
AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT AMOUNT CONTINUED TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE
ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- ------------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED BASE
RATE OF NET INVESTMENT RETURN IS:
Age 3.5% 5.0%
- ------------------------------------------------------------------------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
- ------------------------------------------------------------------------
We will, with respect to each payment under a Variable Annuity Benefit, notify
the payee of the number of Annuity Units and the Average Annuity Unit Value used
in determining the amount of each variable payment. Such notice will be mailed
with each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
- --------------------------------------------------------------------------------
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire agreement between
the parties and the provisions of this Contract alone govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by an authorized officer of Equitable. This
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend this Contract
without the consent of any other person in order to comply with applicable laws
and regulations. Such rights shall include, but not be limited to, the right to
conform this Contract to reflect changes in the Code, applicable Treasury
Regulations, or published rulings of the Internal Revenue Service so that this
Contract will continue to be an Annuity.
SECTION 4.03 NONFORFEITABILITY, NONTRANSFERABILITY, AND ASSIGNMENTS. Your entire
interest under the Contract is nonforfeitable. This Contract is non-transferable
except by surrender to us. Your interest under this Contract may not be sold,
assigned, discounted, or pledged as collateral for a loan or as security for the
performance of an obligation or for any other purpose to any person other than
Equitable.
No amount payable under this Contract may be assigned, commuted, or encumbered
by the payee, unless otherwise permitted as described herein, and, to the extent
permitted by law, no such amount will in any way be subject to any claim against
such payee.
SECTION 4.04 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any Death Benefit
payable pursuant to Section 2.11. Subject to Section 3.06, you may change such
designation from time to time during your lifetime and while this Contract is in
force. Any such designation or change will be made by written notice in a form
satisfactory to us. A change will, upon receipt at the Processing Office, take
effect as of the time the written notice was signed, whether or not you are
living on the Transaction Date, but without further liability as to any payment
or other settlement made by us before receipt of such change.
Unless otherwise specified in the designation, if you have designated two or
more persons as beneficiary, the beneficiary will be the designated person or
persons who survive you, and if more than one survive, they will share equally.
No. 92 SEPB Page 12
<PAGE>
Any part of a death benefit payable pursuant to Section 2.11 for which there is
no designated beneficiary living at your death will be payable in a single sum
to your children who survive you, in equal shares, or should none survive, then
to your estate.
If you elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity elected by you, with respect to the beneficiary, subject to our
rules then in effect. If at your death there is no election in effect to apply
the single sum death benefit to provide an Annuity Benefit, the beneficiary may
make such an election. Any such election must meet the minimum distribution
requirements under the Code, as described in Section 3.05.
SECTION 4.05 DISQUALIFICATION. In the event that this Contract fails to qualify
as an Annuity, we will have the right, upon receiving notice of such fact, to
terminate this Contract and pay to you the Annuity Account Value less a
deduction for the appropriate part attributable to you of any Federal income tax
payable which would not have been payable if you had an Annuity.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to you or the Employer,
as applicable, we reserve the right, at our sole discretion, to limit
Contributions under this Contract, as required by law or if such contributions
are in excess of the maximum amounts as permitted under the Code.
SECTION 4.07 DEFERMENT. Application of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payment in order to protect
persons with interests in the Investment Divisions. We can defer payment of any
portion of your Annuity Account Value in the Guaranteed Interest Division for up
to six months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year we will furnish you
with a notice showing the following:
(1)the amount you have in the Guaranteed Interest Division,
(2)the total number of Accumulation Units you have in the Stock Division,
Balanced Division, Aggressive Stock Division and Money Market Division,
(3)the Accumulation Unit Values,
(4)the amount you have in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division,
(5)the Annuity Account Value,
(6)the Cash Value, and
(7)the amount of death benefit payable with respect to you.
We will also furnish annual calendar year reports concerning the status of the
Annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.09 AGE. If your age has been misstated, any benefits will be those
which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
No. 92 SEPB Page 13
<PAGE>
OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 00
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28, 1992
RETIREMENT DATE: JAN 1, 2020
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O. New York,
New York 10116
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division of the Separate Account (referred to
in this Contract as the "Investment Divisions") or to the Guaranteed Interest
Division, in accordance with Sections 2.02, 2.03 and 2.04 or in part to any
one, as directed by you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide the
Annuitant with an Annuity Benefit or a Cash Value benefit if the Annuitant is
then living, and
o TO PROVIDE the Annuitant with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract, "We", "our" and "us" mean the
Equitable Life Assurance Society of the United States. "You" and "your" mean the
Annuitant at the time a right is exercised by the Annuitant.
TEN DAYS TO EXAMINE CONTRACT--You may cancel this Contract by returning it to us
within ten days after receipt of it. Upon such cancellation, we will refund any
Contribution made to us on your behalf under this Contract.
/s/Molly K. Heines /s/Richard H. Jenrette
VICE PRESIDENT AND SECRETARY CHAIRMAN OF THE BOARD
AND CHIEF EXECUTIVE OFFICER
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.26 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE NOT TO
EXCEED THE MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR
FINANCIAL ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK,
PLUS THE INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF
THE TRUST.
No. 92 TSAA
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
DEFINITIONS Page
Section 1.00 - Agreement..........................................4
1.01 - Annuitant..........................................4
1.02 - Annuity............................................4
1.03 - Annuity Account Value..............................4
1.04 - Annuity Benefit....................................4
1.05 - Cash Value.........................................4
1.06 - Class of Contracts.................................5
1.07 - Code...............................................5
1.08 - Contract...........................................5
1.09 - Contract Date......................................5
1.10 - Contract Year......................................5
1.11 - Contribution.......................................5
1.12 - Divisions..........................................5
1.13 - Elective Deferrals.................................5
1.14 - Eligible Annuity Certain...........................5
1.15 - Employer...........................................5
1.16 - ERISA..............................................5
1.17 - Guaranteed Interest Rate...........................5
1.18 - Joint and Survivor Life Annuity Form...............5
1.19 - Life Annuity Form..................................5
1.20 - Normal Form........................................5
1.21 - Period Certain Annuity.............................5
1.22 - Plan...............................................6
1.23 - Processing Office..................................6
1.24 - Retirement Date....................................6
1.25 - Separate Account...................................6
1.26 - Separate Account Definitions.......................7
1.27 - Transaction Date...................................7
1.28 - Trust..............................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions......................................8
2.02 - Separate Account Investment Divisions..............8
2.03 - Guaranteed Interest Division.......................8
2.04 - Allocation to Divisions............................8
2.05 - Transfers Among Divisions..........................8
2.06 - Termination of this Contract.......................9
2.07 - Partial Withdrawals................................9
2.08 - Charges for Partial Withdrawals....................9
2.09 - Free Corridor Amount..............................10
2.10 - Restrictions on Distributions.....................10
2.11 - Annual Administrative Charge......................10
2.12 - Death Benefit.....................................10
2.13 - Loans.............................................11
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit.............................12
3.02 - Variable Annuity Benefit..........................12
3.03 - Election and Commencement of Annuity Benefits.....12
3.04 - Amount of Annuity Benefits........................13
3.05 - Payment of Annuity Benefits.......................13
3.06 - Special Annuity and Spousal Consent Provisions....15
GENERAL PROVISIONS
Section 4.01 - Contract..........................................16
4.02 - Statutory Compliance..............................16
4.03 - Nontransferability and Assignments................16
4.04 - Beneficiary.......................................16
4.05 - Disqualification of Plan or Contract..............17
4.06 - Future Contributions..............................17
4.07 - Deferment.........................................17
4.08 - Annual Notice.....................................17
4.09 - Age...............................................17
No. 92 TSAA Page 2
<PAGE>
OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 00
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28, 1992
RETIREMENT DATE: JAN 1, 2020
INITIAL GUARANTEED INTEREST RATE: 7.50% TO MAR 31, 1992
MINIMUM GUARANTEED INTEREST RATE: 6.00% TO DEC 31, 1992
3.00% AFTER DEC 31, 1992
BENEFICIARY: JANE DOE
FORM NUMBER: 92 TSAA
- --------------------------------------------------------------------------------
TABLE OF GUARANTEED VALUES
ISSUE AGE 38 MALE $1000 ANNUAL CONTRIBUTION
NUMBER OF YEARS GUARANTEED GUARANTEED PAID-UP MONTHLY
SINCE FIRST CONTRIBUTION CASH VALUE ANNUITY AT AGE 65*
- ------------------------ ---------- ------------------
1 977 6.63
2 1,946 16.20
3 2,944 26.67
4 3,998 36.84
5 5,064 46.70
6 6,220 56.28
7 7,362 65.59
8 8,538 74.62
9 9,841 83.38
10 11,204 91.90
11 12,629 100.16
12 14,118 108.18
13 15,673 115.97
14 17,144 123.54
15 18,658 131.18
16 20,218 138.64
17 21,824 145.90
18 23,479 152.80
19 25,213 159.70
20 27,000 166.03
24 (Age 62) 34,697 189.57
27 (Age 65) 41,098 205.49
THE TABLES ILLUSTRATE MINIMUM GUARANTEED VALUES AND ASSUME A HYPOTHETICAL $1,000
CONTRIBUTION MADE ANNUALLY ON THE FIRST OF THE MONTH FOLLOWING THE CONTRACT
DATE. THE GUARANTEED CASH VALUE TABLE REFLECTS AN ANNUAL ADMINISTRATIVE CHARGE
(SEE SECTION 2.11) AND A WITHDRAWAL CHARGE OF UP TO 6% OF THE ANNUITY ACCOUNT
VALUE (SEE SECTION 1.05). THE TABLES ASSUME THAT 100% OF ALL CONTRIBUTIONS AND
EARNINGS ARE ALLOCATED TO AND REMAIN IN THE GUARANTEED INTEREST DIVISION.
YOUR ACTUAL GUARANTEED VALUES MAY DIFFER FROM THOSE SHOWN ABOVE, DEPENDING ON
THE LEVEL AND FREQUENCY OF YOUR CONTRIBUTIONS.
THE GUARANTEED PAID-UP MONTHLY ANNUITY SHOWN ABOVE WILL BE REDUCED BY ANY CHARGE
WE MAKE FOR ANY APPLICABLE TAXES (SEE SECTION 3.04). OTHER FORMS OF ANNUITY
BENEFITS MAY BE AVAILABLE; HOWEVER, ANY ANNUITY BENEFIT CONTRACT ELECTED AS A
SETTLEMENT WILL BE SUBJECT TO A CHARGE (SEE SECTION 3.04).
*ASSUMES FIXED BENEFIT JOINT AND SURVIVOR LIFE ANNUITY (100% CONTINUATION TO
SURVIVOR)WITH JOINT ANNUITANT THE SAME AGE AS THE ANNUITANT.
No. 92 TSAA Page 3
<PAGE>
- --------------------------------------------------------------------------------
PART I--DEFINITIONS
SECTION 1.00 AGREEMENT. The term "Agreement" means an agreement described in
Treasury Regulation Section 1.403(b)-1(b)(3) between an Employer and an employee
of the Employer, in which the Employer agrees to purchase an Annuity for the
employee. If Employer contributions to purchase the Annuity result from the
employee's agreement to take a reduction in future salary or forgo a future
salary increase, such Agreement is referred to as a "Salary Reduction Agreement"
within the meaning of Sections 402(g)(3)(C) and 3121(a)(5)(D) of the Code.
SECTION 1.01 ANNUITANT. The term "Annuitant" means the owner of this Contract,
as shown on page 3 and on whose behalf this Contract has been purchased and is
maintained, and who exercises all rights under this Contract.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the terms of the Plan or Agreement, which contract meets the
requirements for qualification under Section 403(b) of the Code.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account pursuant to Sections 2.02 and 2.03,
plus any reserve or suspense account pursuant to loans under Section 2.13.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.18, 1.19, 1.20, 3.01 and 3.02) refer to monthly payments to
be made under an Annuity Benefit. You may wish to have your Annuity Benefit paid
at other intervals, such as quarterly, semi-annually, or annually, instead of
monthly. You may elect this at the time you elect the Annuity Benefit form as
described in Section 3.03; in that event, all references in this Contract to
monthly payments will be deemed to mean payments at the frequency you elect,
subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less any applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the excess of (i) the Annuity Account Value over (ii) the Free
Corridor Amount defined in Section 2.09; and
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior charges for partial
withdrawals made pursuant to Section 2.08.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
A withdrawal charge will not apply, which means the Cash Value will equal the
Annuity Account Value upon any of the following occurrences:
(i) your attainment of age 59 and 6 months, and your completion of at least
five Contract Years, or
(ii) you die and a distribution is made to your beneficiary, or
(iii) your attainment of age 55, your completion of at least five Contract
Years and the receipt by us of a properly completed settlement election
form providing for the application of the Annuity Account Value to
purchase an Eligible Annuity Certain, defined in Section 1.14, or
(iv) your completion of at least three Contract Years and the receipt by us
of a properly completed settlement election form providing for the
application of the Annuity Account Value to purchase a Period Certain
Annuity, defined in Section 1.21, where the certain period of such
annuity is at least ten years, or
(v) the receipt by us of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase
a Life Annuity distribution option, or
(vi) your attainment of age 55, your completion of at least five Contract
Years, and separation from service, or
(vii) your completion of at least twelve Contract Years.
No. 92 TSAA Page 4
<PAGE>
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same Calendar Year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, or
any corresponding provisions of prior or subsequent United States revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made to us
for you with respect to an Annuity purchased for you under the Plan. We are
under no obligation to accept any Contribution less than $20.00. Contributions
may be either Elective Deferrals or Employer Contributions pursuant to the Plan.
The Employer shall indicate to us the amount and type of each Contribution.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following Divisions described in this
Contract:
(a) the Guaranteed Interest Division, and
(b) the Investment Division of the Separate Account.
SECTION 1.13 ELECTIVE DEFERRALS. The term "Elective Deferrals" means
Contributions made pursuant to a Salary Reduction Agreement as defined in
Section 1.00.
SECTION 1.14 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us which extends beyond
your attainment of age 59 and 6 months and does not permit any prepayment of the
unpaid principal (that is, no withdrawal or single sum payment) prior to your
attainment of age 59 and 6 months.
SECTION 1.15 EMPLOYER. The term "Employer" means (i) an organization described
in Section 501(c)(3) of the Code which is exempt from Federal income tax under
Section 501(a) of the Code; or (ii) a State, political subdivision of a State,
or an agency or instrumentality of any one or more of the foregoing, in
connection with services performed by an employee for an educational
organization described in Section 170(b)(1)(A)(ii) of the Code.
SECTION 1.16 ERISA. The term ERISA means the Employee Retirement Income Security
Act as amended.
SECTION 1.17 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on page 3 of
this Contract. Section 2.03 describes the determination of the Rate to apply
thereafter.
SECTION 1.18 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.19 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us or one of our affiliated or subsidiary life insurance companies,
providing fixed monthly payments during the lifetime of the person upon whose
life such payments depend. The payments commence on the date as of which the
Life Annuity Form is purchased and terminate with the last payment due before
the death of such person.
SECTION 1.20 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means (i) if you have a living spouse at the Retirement Date, the
Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form with
such spouse as the contingent annuitant (with 100% of the monthly amount payable
to your spouse), and (ii) if you do not have a living spouse at the Retirement
Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.21 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us or one of our affiliated
or subsidiary life insurance companies, which does not permit any prepayment of
the unpaid principal (that is, you cannot elect to receive part of your payments
as a single sum payment with the remainder paid in monthly annuity payments).
No. 92 TSAA Page 5
<PAGE>
SECTION 1.22 PLAN. The term "Plan" means a program established by an Employer,
for the purchase of Annuities on behalf of employees. The Employer shall be the
"Plan Administrator" within the meaning of Section 414(g) of the Code and
applicable Treasury Regulations.
SECTION 1.23 PROCESSING OFFICE. The term "Processing Office" mean our Individual
Annuity Center, P.O. Box 2996, G.P.O., New York, New York 10116, or such other
location as we shall designate by advance written notice to the Employer, or the
Plan's Trustee, as applicable, and to you.
SECTION 1.24 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain your retirement age as shown on page 3 of this Contract. Before the
Retirement Date you may elect to change the Retirement Date to another
Retirement Date, which may be any date after the filing of the election (other
than the 29th, 30th, or 31st day of any month). The Retirement Date selected
either initially or by later change must be in accordance with the terms of the
Plan. No Retirement Date shall be later than the date of your attainment of age
70 and 6 months. Any election for such change must be made in writing by you and
shall not take effect until received by us at our Processing Office.
SECTION 1.25 SEPARATE ACCOUNT. The term "Separate Account" means Separate
Account A which is organized as a unit investment trust (a type of investment
company). We have established the Separate Account and it is maintained in
accordance with the laws of New York State. Realized and unrealized gains and
losses from the assets of the Separate Account are credited to or charged
against it without regard to our other income, gains or losses. Assets are put
in the Separate Account to support this Contract and other variable annuity
contracts. Assets may be put in the Separate Account for other purposes, but not
to support contracts or policies other than variable annuities and variable life
insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these Contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
the Trust. We reserve the right to change the designated trust or investment
company or to add designated trusts or investment companies. The Investment
Divisions available are the Stock Division, the Money Market Division, the
Balanced Division and the Aggressive Stock Division. The Guaranteed Interest
Division is not a part of the Separate Account, but rather is an asset of our
General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio of
the securities in which an Investment Division is invested to materially affect
the Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under
the Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any
other form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to,
or remove Investment Divisions (or sub-divisions of Investment
Divisions) from the Separate Account; (The term "Investment Division" in
this Contract shall then refer to any other Investment Division in which
the asset of a Class of Contracts to which this Contract belongs, were
placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
No. 92 TSAA Page 6
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If the exercise of these rights in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for any applicable
tax charges) at a rate not to exceed 1.49% per year for the Stock, Money Market
and Balanced Divisions, and 1.34% per year for the Aggressive Stock Division,
for financial accounting, death benefits, mortality risk, expenses and expense
risk. The charge shall be made in accordance with Subsection (c) of the Net
Investment Factor provision in Section 1.25. The relative proportion of these
charges may be modified. The daily charge, plus the investment advisory fee
charges and direct operating expense charges of the Trust shall not exceed a
total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract. The maximum rate may not be altered
without your approval.
SECTION 1.26 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share
value reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period
(after any amounts allocated to or withdrawn for that Valuation Period).
(c) is the daily asset charge for the expenses of this Contract, times the
number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where your Contributions are invested and which is used in
determining the amount you have in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first Contribution was put into the Stock
Division, the Annuity Account Value was $1.26 and $1.52 for contracts with
Assumed Base Rates of Net Investment Return of 5% and 3.5% a year, respectively.
The Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit
Value for the immediately preceding Valuation Period multiplied by the Adjusted
Net Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The Average Annuity Unit Value for a calendar month
is equal to the average of the Annuity Unit Values for all Valuation Periods
ending in such month.
SECTION 1.27 TRANSACTION DATE. The Transaction Date is the business day we
receive a Contribution or a written contract transaction request providing the
information we need at the Processing Office. In the case of a transfer request
initiated through the use of a touch tone telephone as described in Section
2.05, the term Transaction Date is the business day the telephone transaction is
received.
SECTION 1.28 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
NO. 92 TSAA Page 7
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PART II--ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. The Employer is to make Contributions, from time to
time on such dates and in such amounts as determined by the Employer pursuant to
the terms of the Plan or Agreement. You are to specify the amount to be
allocated to each Division.
Each Contribution received by us with respect to you will, before its allocation
under this Contract, be reduced by the amount of any applicable tax charge, as
determined by us.
Pursuant to the terms of the Plan, if applicable, you may, with our agreement,
(i) transfer to this Contract any amount held under a contract or account that
meets the requirements of Section 403(b) of the Code ("Transferred Funds"), or
(ii) roll over contributions from a contract or account that meets the
requirements of Section 403(b) of the Code, or from a conduit individual
retirement arrangement described in (i) above, as to what portion, if any, of
the amounts of the Transferred Funds which are exempt from the distribution
restrictions described in Section 2.10, and the minimum distribution rules
described in Section 3.05, we will treat all such amounts as being subject to
such restrictions. Any Transferred Funds from a contract not issued by us will,
before allocation under this Contract, be reduced by the amount of any
applicable tax charge, as determined by us.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to or withdrawn or transferred from an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing said amount by
the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units you have in an
Investment Division on any date is equal to (i) the sum of any Accumulation
Units that have been allocated pursuant to Section 2.04 minus (ii) the sum of
any Accumulation Units that have been withdrawn pursuant to Sections 2.07, 2.08
or 2.13, or transferred from the Investment Division pursuant to Section 2.05.
The amount you have in an Investment Division on any date is equal to the
product of (i) the number of Accumulation Units in the Investment Division on
that date, and (ii) the Accumulation Unit Value for the Investment Division for
the Valuation Period which includes that date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) your election and commencement of annuity benefits pursuant to
Section 3.03, (ii) receipt of due proof of your death, or (iii) termination of
this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts. The amount in the
Guaranteed Interest Division at any time is equal to the sum of all amounts that
have been allocated to the Guaranteed Interest Division pursuant to Section 2.04
or 2.13, plus the amount of any interest accrued but not allocated, less the sum
of all amounts that have been withdrawn from the Guaranteed Interest Division
pursuant to Section 2.07, 2.08 or 2.13 or transferred from the Guaranteed
Interest Division, pursuant to Section 2.05. Interest is allocated to the
Guaranteed Interest Division on a Transaction Date pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under the terms of this
Contract terminates on the earliest of (i) election and commencement of Annuity
Benefits pursuant to Section 3.03, (ii) receipt of due proof of your death, and
(iii) Termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon Termination of this Contract, pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.12.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request or through
the use of a touch tone telephone, transfer all or part of the amount you have
in a Division to one or more of the Divisions as follows: (1) amounts in the
Guaranteed Interest Division, Stock Division, Balanced Division and Aggressive
Stock Division may be transferred among such Divisions; (2) amounts in the Money
Market Division may be transferred to other Divisions. Written authorization for
touch tone telephone initiated transfers is only required when authorization for
No. 92 TSAA Page 8
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telephone transfers is requested. Upon advance written notice to you, we reserve
the right to discontinue the acceptance of transfer requests through the use of
a touch tone telephone. All transfers will be effective on the Transaction Date
and will be subject to our rules in effect at the time of transfer. With respect
to the Investment Division, the transfer will be made at the Accumulation Unit
Value next computed after the Transaction Date. No transfers are permitted to
the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. Subject to any restrictions under the
terms of the Plan, including, for Plans subject to Title I of ERISA, if
applicable, the spousal consent rules set forth in Section 3.06, you may elect,
by written notice, to terminate this Contract. In addition, termination of the
Contract is subject to the restrictions on distributions set forth in Section
2.10 of this Contract. We will determine the Cash Value as of the Transaction
Date we receive your written election.
The payment of such Cash Value to you may be deferred by us in accordance with
the provisions of Section 4.07.
Subject to the terms of the Plan, and the restrictions on distributions set
forth in Section 2.10, we reserve the right to pay the Annuity Account Value
under this Contract and terminate this Contract. This right may be exercised
only if both (i) you made no Contributions during the last three completed
Contract Years, and the Annuity Account Value is less than $500, or (ii) a
partial withdrawal is made that would result in your Annuity Account Value
falling below $500. We also reserve the right to terminate this Contract if no
Contributions have been made within 120 months of the Contract Date shown on
page 3 of this Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions and the Annuity Account Value shall be zero. We will
be released from any and all liability for payments with respect to the
Contributions from which the Annuity Account Value arose.
If this Contract is terminated, surrendered or exchanged prior to your
Retirement Date, any applicable tax charges we have paid may be deducted. If we
have previously deducted charges for applicable taxes from Contributions
pursuant to Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
your Contract.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions under
the terms of the Plan, and the restrictions on distributions set forth in
Section 2.10, you may elect, by written notice to us, to make partial withdrawal
from the Divisions. For Plans subject to Title I of ERISA, partial withdrawals
may be subject to the spousal consent rules if applicable, set forth in Section
3.06.
Following receipt of your written notice, we will pay the lesser of the Cash
Value, less any funds restricted pursuant to Section 2.13, or the amount of
partial withdrawal requested to the person entitled to receive such payment as
you designate to us in writing. The amount paid plus any withdrawal charge
applicable pursuant to Section 2.08 will be withdrawn from the amounts you have
in the Divisions. Unless instructed otherwise, the amount withdrawn (including
any withdrawal charge) will be allocated among the Divisions in proportion to
the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300,
or where the request violates the provisions of Sections 2.07 or 3.06. If a
withdrawal made under this Section would result in an Annuity Account Value of
less than $500, we will so advise you and reserve the right to pay the Annuity
Account Value to you and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.09 or (b) the Cash Value is equal to the Annuity
Account Value, pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount, in proportion to the amount you have
in them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
NO. 92 TSAA Page 9
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of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior partial withdrawal
charges made pursuant to this Section.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to your Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means if you
have completed three Contract Years or attained age 59 and 6 months an amount
equal to the excess, if any, of (i) 10% of the sum of the Annuity Account Value
on the Transaction Date over (ii) cumulative prior withdrawals made pursuant to
Section 2.07 in the current Contract Year or pursuant to the repayment of
interest or principal on a loan, in the Current Contract Year. If you have not
completed three Contract Years or attained age 59 and 6 months, the Free
Corridor Amount is zero.
SECTION 2.10 RESTRICTIONS ON DISTRIBUTIONS. Notwithstanding anything in this
Contract to the contrary, payments of Cash Value pursuant to the termination of
this Contract under Section 2.06, partial withdrawals under Section 2.07, death
benefits under Section 2.12 or Annuity Benefits under Section 3.03 may be
limited as provided in Section 403(b)(11) of the Code and in this Section, to
the extent they are attributable to Elective Deferral Contributions made to this
Contract after December 31, 1988 and earnings credited after December 31, 1998
on Elective Deferral Contributions made before and after December 31, 1988
(collectively, "Restricted Amounts").
Distributions of Restricted Amounts may not be made until you attain age 59
years and six months, separate from service, die, or become disabled (within the
meaning of Section 72(m)(7) of the Code). Distributions of Elective Deferral
Contributions made after December 31, 1988--(but not any earnings credited after
December 31, 1988 attributable to Elective Deferral Contributions made before or
after December 31, 1988) may also be made in the case of hardship (within the
meaning of Section 403(b)(11) of the Code and applicable Treasury Regulations).
If you request payment of Restricted Amounts on the grounds of disability or
hardship you must furnish to us proof of such disability or hardship as may be
required by the Plan, the Code, and applicable Treasury Regulations in a form
satisfactory to us.
SECTION 2.11 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $25,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts that you have in
the Divisions. For this purpose, any loan reserve amount is included within the
Guaranteed Interest Division. The portion of the charge attributable to the
Guaranteed Interest Division and any loan reserve account will be first
withdrawn from the Guaranteed Interest Division and then, if the amount you have
in the Guaranteed Interest Division is not sufficient, the remaining allocation
will be withdrawn from the portion of the loan reserve account that earns
interest at the Guaranteed Interest Rate.
If the Annuity Account Value is less than $25,000, on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of Termination of this Contract pursuant to Section 2.06 or
2.12, we will prorate the Annual Administrative Charge applicable to the
completed portion of the Current Contract Year and withdraw such amount in lieu
of the Annual Administrative Charge described in this Section for the applicable
part of that Contract Year.
If the Annuity Account Value is $25,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
SECTION 2.12 DEATH BENEFIT. Upon receipt of due proof of your death, we will pay
to the beneficiary designated to receive such payment, pursuant to Section 4.04
of this Contract, the amount of death benefit payable. The amount of the death
benefit is equal to the greater of (i) the Annuity Account Value less any
outstanding loan and (ii) the minimum death benefit. Such minimum death benefit
is the sum of all Contributions made pursuant to Section 2.01 (before reduction
for any applicable tax charge) less any withdrawals made pursuant to Section
2.07. Any such withdrawal will reduce the minimum death benefit (as adjusted by
any previous such withdrawal) by an amount which is in the same proportion as
the amount that was withdrawn is to the Annuity Account Value. If, in accordance
with the provisions of Section 2.01, the Cash Value of another annuity contract
issued by us, or one of our affiliated or subsidiary life insurance companies,
which provides for a death benefit before retirement is equal to the greater of
the contract Cash Value or alternate amount based on premiums paid or
Contributions made under the annuity contract, is transferred to this Contract,
such Cash Value or an alternative amount as of the date of transfer, will be
included in the "sum of all Contributions" in lieu of the amount of Cash Value
transferred for purposes of the death benefit under this Contract.
We will pay the death benefit to the beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to the
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit, for Plans
subject to Title I of ERISA.
NO. 92 TSAA Page 10
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Distributions pursuant to this Section are subject to the terms of the Plan and
the Spousal Consent Rules set forth in Section 3.06 for Plans subject to Title I
of ERISA.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value shall be zero. We will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Account Value arose.
SECTION 2.13 LOANS. Unless otherwise restricted by the Plan or the Code, you may
effect a loan under this Contract before the election and commencement of
Annuity Benefits. However, if the issuance of this Contract is pursuant to the
terms of a Plan subject to Title I of ERISA, then loans shall not be available
under this Contract. Future restrictions in the Code may require revision or
withdrawal of the loan provisions as provided below. Your Annuity Account Value
(including the loan reserve account as described below) will be the sole
security for the loan. A loan is effective on the first day of the month
following the date your loan agreement form is approved by us.
The amount of the loan may not be more than (i) 80% of the Annuity Account Value
of this Contract, if such total Annuity Account Value is greater than or equal
to $3,750 and less than $12,500, (ii) $10,000, if the Annuity Account Value is
greater than or equal to $12,500 and less than $20,000, and (iii) 50% of the
Annuity Account Value if the Annuity Account Value is greater than or equal to
$20,000, but in no event shall the loan amount exceed $50,000 less the highest
outstanding balance under this Contract during the one year period ending the
day before the effective date of the loan. The minimum loan permitted is $3,000.
For this purpose, the Annuity Account Value is taken as of the loan effective
date. Only one outstanding loan is permitted at a time under this Contract.
As a condition for granting a loan, we will require you to represent that the
loan amount requested, when aggregated with loans (principal plus interest) from
all qualified plans of your Employer, does not exceed the greater of $10,000 or
50% of the value of your nonforfeitable accrued benefits, and in no event
exceeds $50,000 less the highest outstanding balance of all loans from qualified
plans during the one year period ending on the day before the effective date of
the loan. We reserve the right to also require that you elect not to have income
tax withholding apply with respect to an interest and/or loan principal that
would otherwise be subject to withholding.
The loan term will be either (i) ten years, if you represent that the purpose of
the loan is to acquire, build or substantially rehabilitate a dwelling unit
which, within a reasonable period of time, is to be used as your principal
residence or (ii) five years. In any event, the loan term may not extend beyond,
that is, full repayment of the loan will be required upon the earlier of (i) the
election and commencement of Annuity Benefits pursuant to Section 3.03, (ii) the
date we received written notice from you to terminate this Contract pursuant to
Section 2.06, (iii) the date we pay a Death Benefit pursuant to Section 2.12,
and (iv) any date provided for such loans by Federal tax rules including
acceleration of the loan repayment in order that the operation of the loan
provisions do not adversely affect the tax treatment of this Contract.
On the loan effective date, we will transfer to a loan reserve account an amount
equal to the sum of (i) the loan amount, which will earn interest at the
effective annual rate of 4% during the loan term and (ii) 25% of the loan
amount, which will earn interest at the Guaranteed Interest Rate, as defined in
this Contract. You may specify from which Divisions these amounts are to be
transferred. In the absence of your direction, or if your directions cover only
part of the amount required to be transferred to the loan reserve account, we
will transfer the required (or additional required) amounts from each Division
in proportion to the amount that you have in such Divisions. On the first day of
the third month following the effective date of the loan and quarterly
thereafter (or first business day thereafter, if such day is not a business
day), the amount of interest earned at 4% annually during the prior quarter will
be transferred to the portion of the loan reserve account that earns interest at
the Guaranteed Interest Rate. You may not make any partial withdrawals or
transfers from the loan reserve account.
Beginning the first day of the third month of each quarter following the
effective date of the loan and quarterly on the first day of the month
thereafter, loan payments must be made to us. Such payments shall be amortized
in substantially level payments over the term of the loan and will be equal to
the sum of (a) and (b) where
(a) is the loan interest, calculated at an effective annual rate of 6%, and
(b) is a portion of the loan principal.
The loan must be repaid in part on each quarterly due date and may be repaid in
full at any time on or after the first loan anniversary and must include the
full interest due. Any payments received will first be applied to interest due,
with the balance applied towards repayment of the loan. Any partial loan
repayment will result in a transfer of the amount equal to the principal repaid
from (i) the portion of the loan reserve account that earns interest at the
effective annual rate of 4% to (ii) the Guaranteed Interest Division and may be
withdrawn, transferred or annuitized as directed in this Contract.
By each due date, if the amount of the loan payment is less than the amount due
or the loan payment is not received at our Processing Office, we will deduct and
treat as a partial withdrawal from the loan reserve account an amount equal to
the interest and principal payments due plus any applicable withdrawal charges
and any required income tax withholding, if such partial withdrawal will not be
a withdrawal of "restricted amounts" as described in Section 2.10 of this
Contract. Specifically, an amount equal to the principal payment will be
deducted from the portion of the loan reserve account which earns interest at
4%, and an amount equal to the interest payment plus any applicable withdrawal
charges and required income tax withholding will be deducted from the portion of
the loan reserve account which earns interest at the Guaranteed Interest Rate.
NO. 92 TSAA Page 11
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To the extent a loan repayment is required and a partial withdrawal cannot be
made due to the restrictions described in Section 2.10 of this Contract, a
default in a loan payment will occur. We will transfer from the loan reserve
account to a suspense account an amount equal to the interest and principal
payments due. We will deduct from the loan reserve account a default charge (as
defined in this Section) as well as any required income tax withholding. We will
treat the amount transferred to the suspense account, plus any required income
tax withholding, as a "deemed distribution," that is, such amount will be
considered to have been distributed as provided under Section 72(p) of the Code.
Specifically, an amount equal to the principal payment due will be transferred
from the portion of the loan reserve account which earns interest at 4%, and an
amount equal to the interest payment due will be transferred from the portion of
the loan reserve account which earns interest at the Guaranteed Interest Rate.
Any applicable default charge and required income tax withholding will be
deducted from the portion of the loan reserve account which earns interest at
the Guaranteed Interest Rate.
The default charge on the amount of the deemed distribution is equal to the
applicable withdrawal charges which would have applied if such amount had been
withdrawn from this Contract at such time. Amounts transferred to the suspense
account for the purpose of securing the loan and interest payment due will not
be subject to future withdrawal charges when the liability for any such
defaulted payment is satisfied by a deduction from the suspense account.
Amounts transferred to a suspense account will be held there until Federal
income tax rules permit such amounts to be deducted from the Contract to satisfy
the defaulted loan and interest payment obligation which will be no later than
the date you attain age 59 years and 6 months or notify us in writing that an
event has occurred which would permit Restricted Amounts to be distributed from
the contract under Section 2.10.
Amounts held in the suspense account will earn interest at an effective annual
rate of 3%. You will also be charged interest on your defaulted loan and
interest payment obligation at an effective annual rate of 3% until such time as
any such default payment liability can be satisfied by a deduction from the
suspense account.
The default charge on such deemed distribution is equal to the applicable
withdrawal charges for a withdrawal of an amount equal to the interest and
principal payments due plus required income tax withholding.
Upon your full repayment of the loan, any amounts remaining in the loan reserve
account will be transferred to the Guaranteed Interest Division and may be
withdrawn, transferred or annuitized as described in this Contract.
- --------------------------------------------------------------------------------
PART III--ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
with respect to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of net
investment return referred to in Section 1.26 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.25, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounting, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the terms of this Contract with respect to a payee is the
monthly amount provided pursuant to the fifth paragraph of Section 3.04. The
amount of the fourth and each subsequent payment under a Variable Annuity
Benefit will be equal to the number of Annuity Units with respect to such
benefit, multiplied by the Average Annuity Unit Value for the second calendar
month immediately preceding the due date of the payment. The number of Annuity
Units with respect to a benefit is the number determined by dividing the amount
of the first monthly payment under such benefit by the Annuity Unit Value for
the Valuation Period which includes the due date of the first monthly payment.
As described in Section 3.05, we will notify the payee how each Variable Annuity
Benefit is determined.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of your
Retirement Date, provided you are then living, the Annuity Account Value shall
be applied to provide the Normal Form of Annuity Benefit, unless you elect (i)
to receive the Cash Value in a single sum, or (ii) to apply the Annuity Account
Value, (less any outstanding loan as set forth in Section 2.13) or Cash Value,
whichever is applicable pursuant to the first paragraph in Section 3.04, to
provide an Annuity Benefit on any other annuity form offered by us, or one of
our affiliated or subsidiary life insurance companies, as elected by you, or
(iii) to take partial withdrawals in amounts and at times as required by the
Code, pursuant to Sections 2.07 and 3.05, subject to our rules then in effect
and any other applicable requirements under the Code.
NO. 92 TSAA Page 12
<PAGE>
We will provide notice and election forms to you not more than six months before
your Retirement Date.
If you elect to terminate this Contract, prior to the Retirement Date, pursuant
to Section 2.06, an election may be made to receive an Annuity Benefit in lieu
of the Cash Value.
We will have the right to require that you furnish pertinent information to
provide an Annuity Benefit, and we will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies. If the issuance of this Contract is pursuant to a Plan
subject to Title I of ERISA, the rules set forth in Section 3.06 shall apply to
your election and the commencement of annuity benefits.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect, pursuant to the first or
third paragraph of Section 3.03, to receive an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the payments under the annuity form involves life
contingencies, or (ii) the Cash Value if the Annuity Form elected does not
involve life contingencies.
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charge from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to your Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your Contract will be governed by our
supplementary contract then in effect.
The amount to be applied to provide an Annuity Benefit will, in addition to any
tax charge reduction, be reduced by an administrative charge. The amount of such
charge will be determined from time to time in accordance with our general
practices applicable on a uniform basis to all contracts of the same type as
this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated, on either the Life Annuity Form or the Joint and
Survivor Life Annuity Form (with 100% of the amount of your payment continued to
your spouse). The amount of income provided under the Fixed Annuity Benefit
payable on the Life Annuity Form and Joint and Survivor Life Annuity Form, are
based on 3.5% interest and the 1983 Individual Annuity Mortality Table "a"
adjusted to a unisex basis based on a 50-50 split of males and females, at age
zero. The amount of income initially provided under the Variable Annuity Benefit
payable on the Life Annuity Form and the Joint and Survivor Life Annuity Form
are based on a 50-50 split of males and females, at age zero and an Assumed Base
Rate of Net Investment Return of 3.5% or 5%, whichever applies pursuant to
Section 1.26.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us based on 3.5% interest and the 1983 Individual Annuity
Mortality Table "a" adjusted to a unisex basis based on a 50-50 split of males
and females, at age zero, if such annuity form provides for a Fixed Annuity
Benefit, and on the projected 1983 Basic Table "a" adjusted to a unisex basis
based on a 50-50 split of males and females, at age zero and an Assumed Base
Rate of Net Investment Income Return of 3.5% or 5%, whichever applies pursuant
to Section 1.26, if such annuity form provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Distributions attributed to
Contributions of Transferred Funds pursuant to Section 2.01 (where you have
provided to us written evidence of such balance as of December 31, 1986 must
commence no later than age 75. Such distributions will be made in the normal
Form of Annuity Benefit, unless you elect to take payments in a single sum or
another form of Annuity Benefit then offered by us.
Your entire interest in this Contract attributable to all other Contributions
made, and earnings credited hereon must be distributed, or begin to be
distributed no later than the first day of April following the calendar year in
which you attain age 70 and 6 months ("Required Beginning Date"). Your entire
interest may be distributed, as you elect, over (a) your life, or the lives of
you and your designated beneficiary, or (b) a period certain not extending
beyond your life expectancy, or the joint and last survivor expectancy of you
and your designated beneficiary. Distributions must be made in periodic payments
at intervals of no longer than one year. In addition, payments must be either
nonincreasing or they may increase only as provided in Q & A F-3 of Section
1.401(a)(9)-1 of the proposed Treasury Regulations, or any successor Regulation
thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 403(b)(10) and 401(a)(9) of the Code, including the
incidental death benefit requirements of Section 401(a)(9)(G) of the Code, and
applicable Treasury Regulations, including the minimum distribution incidental
benefit requirement of Section 1.401(a)(9)-2 of the Proposed Treasury
Regulations, or any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
NO. 92 TSAA Page 13
<PAGE>
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless you otherwise elect prior to the time distributions are required to
begin, those life expectancies shall be recalculated annually. Such election
shall be irrevocable and shall apply to all subsequent years. The life
expectancy of a non-spouse beneficiary may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such beneficiary during
the calendar year in which you attain age 70 and 6 months and payments for
subsequent years shall be calculated based on such life expectancy reduced by
one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If you die after distribution of your interest in this Contract has begun, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to your death.
If you die before distribution of your interest begins, distribution of your
entire interest shall be completed no later than December 31 of the calendar
year containing the fifth anniversary of your death, except to the extent that
an election is made to receive death benefit distributions in accordance with
(1) or (2) below:
(1) If your entire interest is payable to a designated beneficiary, then
your entire interest may be distributed over the life of, or over a
period certain not greater than the life expectancy of, the designated
beneficiary. Such distributions must commence on or before December 31
of the calendar year immediately following the calendar year of your
death.
(2) If the designated beneficiary is your surviving spouse, the date
distributions that are required to begin in accordance with (1) above
shall not be earlier than the later of (A) December 31 of the calendar
year immediately following the calendar year of your death or (B)
December 31 of the calendar year in which you would have attained age 70
and 6 months.
For purposes of determining the "period certain" referred to in the immediately
preceding paragraph, life expectancy is computed by use of the expected return
multiples in tables V and VI of Treasury Regulation Section 1.72-9. For purposes
of distributions beginning after your death, unless otherwise elected by the
surviving spouse by the time distributions are required to begin, life
expectancies shall be recalculated annually. Such election shall be irrevocable
by the surviving spouse and shall apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies shall be calculated using
the attained age of such beneficiary during the calendar year in which
distributions are required to begin pursuant to this Section, and payments for
any subsequent calendar year shall be calculated based on such life expectancy
reduced by one for each calendar year which has elapsed since the calendar year
life expectancy was first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under the terms of this Contract was based on information
that is subsequently found to be incorrect, your benefit will not be
invalidated, but an adjustment on the basis of the correct information will be
made in the amount of the benefit payments, or any amount used to provide the
benefit, or any combination thereof. Overpayments by us will be charged against
and underpayments will be added to any payments thereafter falling due under the
terms of this Contract with respect to the payee, affecting as many such
payments as are necessary to correct the overpayment or underpayment. Our
liability, with respect to a payee, is limited to the correct information and
the actual amounts used to provide the benefits then in force with respect to
the payee under this Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii) another person or an
institution is then maintaining or has custody of such payee, and (iii) no
guardian, committee, or other representative of the estate of such payee has
been appointed, we may make the payments (in the case of a minor, at a rate not
exceeding $200 a month) to such other person or institution, and will thereupon
be fully discharged from all liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Pursuant to Section 3.03, upon your election, pursuant to Section 3.03 of an
annuity form providing payments for a period certain, you may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a payee to receive any payments or
installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's estate in
accordance with the following paragraph.
No. 92 TSAA Page 14
<PAGE>
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments. The commuted value of any such remaining payments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
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TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
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</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- --------------------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT
PAYABLE ON THE LIFE ANNUITY FORM
IF ASSUMED BASE RATE OF NET
INVESTMENT RETURN IS
- --------------------------------------------------------------------------------
Age 3.5% 5%
- --------------------------------------------------------------------------------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
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We will notify the payee, with respect to each payment under a Variable Annuity
Benefit, the number of Annuity Units and the Average Annuity Unit Value used in
determining the amount of each variable payment. Such notice will be mailed with
each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS. If this Contract is
issued pursuant to a Plan subject to Title I of ERISA, then the provisions of
this Section shall supersede any contrary provisions in this Contract. If you
are married, your interest in the Contract shall be paid in the Normal Form
joint and survivor annuity, and if you are unmarried, your interest shall be
paid in the Normal Form life annuity, unless you elect otherwise as described in
this Section. If you are married and die before payment of your interest has
commenced, your interest shall be paid to your surviving spouse in the form of a
life annuity, unless at the time of your death there was a contrary election
made pursuant to this Section. The foregoing notwithstanding, your surviving
spouse may elect, before payment is to commence, to have payment made in any
form permitted under the terms of this Contract.
You may elect, at any time within the 90 consecutive day period before the first
day of the first period for which your interest is paid as an annuity or in any
other form, not to have your interest paid in the Normal Form, in which case it
shall be paid in any other form elected under the terms of this Contract. If
such interest is to be paid to your spouse upon your death, you may elect,
during the period beginning on the first day of the plan year of the Plan in
which you attain age 35 (or, if you separate from service prior to that plan
year, beginning on the date of separation) and ending with your death, for a
beneficiary other than your spouse to receive payment of the value of your
interest. In
No. 92 TSAA Page 15
<PAGE>
addition, if you will not yet attain age 35 by the end of any current plan year,
you may make a special qualified election to designate a beneficiary other than
your spouse to receive payment of the value of your interest, which special
qualified election shall be effective for the period beginning on the date of
such election and ending on the first day of the plan year in which you will
attain age 35. Amounts payable in accordance with this Section will be
automatically reinstated as of the first day of the plan year in which you
attain age 35 unless a new election designating a beneficiary other than the
spouse is made in accordance with the requirements of this Section.
Any election described in the foregoing paragraph must be consented to by your
spouse in writing before a notary or a representative of the Plan unless you can
prove that there is no spouse or that the spouse cannot be located. Also, if you
have become legally separated from your spouse or have been abandoned (within
the meaning of local law) and have a court order to such effect, spousal consent
is not required unless a qualified domestic relations order provides otherwise.
Your election must designate a specific beneficiary (including any class of
beneficiaries or any contingent beneficiaries) that may not be changed without
further consent of the spouse, unless the spouse's consent expressly permits
designation by you without further consent of the spouse. The spouse's consent
under this section shall acknowledge the effect of the election. In addition,
the spouse's consent (or the establishment that the consent of the spouse may
not be obtained) shall only be valid with respect to such spouse. Your waiver of
the Normal Form joint and survivor annuity shall not be effective unless the
election designates a form of benefit payment which may not be changed without
spousal consent (or the spouse expressly permits designations by you without any
further spousal consent). A consent that permits designations by you without any
requirement of further consent by such spouse must acknowledge that the spouse
has the right to limit consent to a specific beneficiary and a specific form of
benefit where applicable, and that the spouse voluntarily elects to relinquish
either or both of such rights. If you make an election under this Section, you
may revoke that election, without spousal consent, at any time before the first
day of the first period for which an amount is paid as an annuity or in any
other form.
The provisions requiring spousal consent in this Section shall also apply with
regard to your election to terminate this Contract or make partial withdrawals
pursuant to Sections 2.06 and 2.07, and with respect to a beneficiary
designation set forth in Section 4.04. A spouse's written consent, witnessed by
a representative of the Plan or a notary public, must be given on a form
acceptable to the Employer and us, within the 90 consecutive day period prior to
any such payment, or withdrawal, or beneficiary designation, unless you can show
that you have no spouse or that the spouse cannot be located.
If the Annuity Account Value applied to provide the spousal benefits on the date
payment is to commence is in the aggregate less than $3,500, we may choose to
make payment in a single sum rather than in the form of a Qualified Joint and
Survivor Annuity or Life Annuity as described herein. Upon any payment made
pursuant to this Section, we will be released from any and all liability for
payment with respect to the Contributions made for you.
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PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the terms of this Contract alone will govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend the terms of
this Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the terms of this Contract to reflect changes in the
Code, or applicable Treasury Regulations, or in regulations or published rulings
of the Internal Revenue Service so that this Contract will continue to be an
Annuity.
SECTION 4.03 NONTRANSFERABILITY AND ASSIGNMENTS. Your entire interest under this
Contract is nonforfeitable. No interest of yours (or of a beneficiary) under
this Contract may be transferred to any person other than us upon the surrender
of this Contract. Except as permitted under applicable law, no right or interest
of you or any other payee or beneficiary in this Contract shall be (a)
assignable; (b) subject to any lien; (c) liable for, or subject to, any
obligation or liability of any person. The preceding sentence shall not apply to
any assignment, transfer or attachment pursuant to a qualified domestic
relations order (as defined in Section 414(p) of the Code).
SECTION 4.04 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any death benefit
payable pursuant to Section 2.12. You may change such designation from time to
time during your lifetime, and while this Contract is in force. Any such
designation or change must be made by written notice in a form satisfactory to
us. A change will, upon receipt at the Processing Office, take effect as of the
time the written notice was signed, whether or not you are living on the date of
receipt, but without further liability as to any payment or other settlement
made by us before receipt of such change. Beneficiary designations are subject
to the rules of Section 3.06 if the Contract is issued pursuant to a Plan
subject to Title I of ERISA.
No. 92 TSAA Page 16
<PAGE>
Unless otherwise specified in the designation, if you have designated two or
more persons as beneficiary, the beneficiary will be the designated person or
persons who survive you, and if more than one survive, they will share equally.
Any part of a death benefit payable pursuant to Section 2.12 for which there is
no designated beneficiary living at the time of your death, will be payable in a
single sum to your children who survive you, in equal shares, or should none
survive, then to your estate.
If you elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity previously elected by you, with respect to the beneficiary,
subject to our rules then in effect. If, at your death, there is no election in
effect to apply the single sum death benefit to provide an Annuity Benefit, the
beneficiary may make such an election. Any such election must meet the minimum
distribution requirements under the Code, as described in Section 3.05.
SECTION 4.05 DISQUALIFICATION. In the event that the Plan fails to qualify as a
Plan under Section 403(b) of the Code and applicable Treasury Regulations, we
reserve the right, upon receiving notice of such fact, to transfer the Annuity
Account Value under this Contract to another annuity contract issued by us, an
affiliate subsidiary, on your life, or to terminate this Contract and pay to you
the Annuity Account Value less deduction for applicable taxes, solely at our
option.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to the Employer, we
reserve the right at our sole discretion to limit Contributions under this
Contract.
SECTION 4.07 DEFERMENT. Application of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payment in order to protect
persons with interests in the Investment Divisions. We can defer payment of any
portion of your Annuity Account Value in the Guaranteed Interest Division for up
to six months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year we will furnish you
with a notice showing the following:
(1) the amount you have in the Guaranteed Interest Division,
(2) the total number of Accumulation Units you have in the Stock Division,
Balanced Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Values,
(4) the amount you have in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division,
(5) the amount you have in the loan reserve account,
(6) the Cash Value, and
(7) the amount of death benefit payable with respect to you.
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.09 AGE. If your age has been misstated, any benefits will be those
which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
No. 92 TSAA Page 17
<PAGE>
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APPLICATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
PROCESSING OFFICE: INDIVIDUAL ANNUITY CENTER, P.O. BOX 2996,
NEW YORK, NEW YORK 10116-2996
QUALIFIED VARIABLE ANNUITY CONTRACT APPLICATION FOR:
EQUITABLE'S INDIVIDUAL QUALIFIED DEFERRED VARIABLE ANNUITY
- --------------------------------------------------------------------------------
TYPE OF PURCHASE (Complete One Plan Only)
A. |X| TSA PUBLIC SCHOOL (GV-PS-I)
B. |_| TSA 501(C)(3) ORGANIZATION (GV-501-I)
C. |_| TSA University (GV-PS-U-I)
D. |_| IRA Individual (Including IRA to IRA transfers) (GV-IRA 4971)
E. |_| IRA Unit Billed (Including IRA to IRA transfers) (GV-IRA 4971)
F. |_| IRA QUALIFIED PLAN ROLLOVER-- (QP IRA) (Distribution from a Qualified
Plan) (GV-IRA 4971-71)
G. |_| EDC (Public Employee Deferred Compensation) (GV-EDC 4991)
H. |_| EDC (Tax Exempt Organization) (GV-EDC 4991-SU-080)
I. |_| SEP (Simplified Employee Pension) (GV-SEP 4981)
J. |_| SARSEP (Salary Reduction SEP) _________________________________________
K. |_| CORPORATE TRUSTEED (GV-CORP 4941-41)
L. |_| KEOGH/HR-10 TRUSTEE (GV HR-10 4911-11)
(trustee owned)
M. |_| KEOGH/HR-10 (GV-HR-10 4911)
(not trustee owned) (issued to existing units only)
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DO NOT COMPLETE THIS SECTION IF 1.D OR 1.F CHECKED ABOVE
2. EMPLOYER/PLAN NAME
|A|B|C|_|C|O|M|P|A|N|Y|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
3. |_| EXISTING UNIT NO. |_|_|_|_|_|_|-|_|_|_|
|x| NEW UNIT |0|0|0|1|2|3|-|4|5|6|
(FOR NEW UNIT BILLED IRA, EDC, TSA, SEP, SARSEP, OR TRUSTEED PLANS. FORM
983-135B IS REQUIRED)
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4. PROPOSED ANNUITANT Print name to appear on Contract.
|J|O|H|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|D|O|E|_|_|_|_|_|
FIRST MIDDLE INITIAL LAST
A. |X| MR. |_| MRS. |_| MS. |_| OTHER ____
B. Date of Birth: Year 1954 Month JANUARY Day 27
---- ------- --
C. Age at Nearest Birthday: 38 D. |X| Male |_| Female
----
E. Annuitant's Mailing Address: F. State of Residence: N.J.
----
No., St. |1|7|_|E|L|M|_|S|T|R|E|E|T|_|_|_|_|_|_|_|_|_|_|_|_|
City |A|N|Y|T|O|W|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |U|S| Zip Code |0|2|0|0|0|-|0|0|0|1|
G. Telephone Number (101) 222 - 3456 |X| Home |_| Work
H. Social Security No. (Required): |1|2|3|-|4|5|-|6|7|8|9|
I. Are you associated with or employed by a member of National
Association of Securities Dealers, Inc.(NASD)? |_| Yes |X| No
5. OWNER (Print Name) -- If Trusteed or EDC Plan Print Name of Owner, for all
other Markets Print Name of Annuitant.
JOHN DOE
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a. Title ____________________________________________________________________
6. RETIREMENT AGE 65
---------------------------------------------------------------
7. BENEFICIARY -- Include FULL NAME and RELATIONSHIP to Annuitant. (For Death
Benefit upon Annuitant's death before Retirement Date.) (BENEFICIARY MUST
BE THE OWNER FOR EDC PURCHASES AND FOR MOST TRUSTEED PLANS.)
JANE DOE - WIFE
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8. CONTRIBUTION ALLOCATION
Guaranteed Interest Division 20%
-----
Stock Division 20%
-----
Money Market Division 20%
-----
Balanced Division 20%
-----
Aggressive Stock Division 20%
-----
(PERCENTAGES IN WHOLE NUMBERS) Total 100%
9. CONTRIBUTIONS (NOT REQUIRED FOR 1.F)
A. Reminder Notice (Billing) Required |_| Yes |X| No
IF YES, COMPLETE B-C-D-E
B. REMINDER DATE Required for Individual IRA or otherwise must agree
with existing unit or attached 983-135B. MONTH _________ DAY __________
C. REMINDER FREQUENCY
|_| Annual |_| Semi-Annual
|_| Quarterly |_| Monthly
Available for TSA, EDC, SARSEP AND CORPORATE TRUSTEED AND UNIT BILLED IRA
ONLY:
|_| Semi-Monthly |_| Bi-Weekly
D. REMINDER AMOUNT $_________________________________
E. BILLING MONTHS TO BE EXCLUDED - TSA ONLY
-----------------------------------------------------------------------------
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10.EXPECTED FIRST CONTRACT YEAR
Contribution. $1000
----------------------------------------------------------------
IF AN ADVANCED BILLING AND/OR CONTRACT DATE ARE REQUESTED, COMPLETE #9B
AND #12.
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(FOR PROCESSING OFFICE USE)
Unit Name ___________________________ Reminder Date ___________________________
Cert. or App# _______________________ Amendment Required_______________________
EDC Emp. Add. _______________________ Emp. Fed. ID# ___________________________
Frequency ___________________________ Contract Date ___________________________
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Receipt Date Batch # Inquiry # Processor
- --------------------------------------------------------------------------------
180-1000
<PAGE>
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10. Did you receive the Separate Account Prospectus? |X| Yes |_| No
Date shown on Prospectus January 1, 1992
----------------------------------------------------
Date of any supplement to Prospectus _______________________________________
11. Items (a) through (f) are to be answered by the annuitant. We are
required by the NASD to ask these questions.
(a) Name of Employer: ABC Company
------------------------------------------------------
(b) Address of Employer:
10 Main Street
---------------------------------------------------------------------------
Anytown, NJ
---------------------------------------------------------------------------
(c) Occupation Sales
-------------------------------------------------------------
(d) Assuming the contract applied for will be issued, will any existing
insurance or annuity be replaced or changed (or has it been)?
| | Yes |X| No
(e) Estimated Family Annual Income $100,000
----------------------------------------
(f) Estimated Net Worth $250,000
-----------------------------------------------------
(g) Investment Objective: |_| Income |X| Income & Growth
|_| Aggressive Growth |_| Growth |_| Safety of Principal
12. SPECIAL INSTRUCTIONS
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13. Amount paid with this form: $1000
(If a check is submitted with this request, no advanced Contract Date is
permitted.) BACKDATING IS NOT PERMITTED.
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the certificate is not issued. The Contract Date
will be the date of receipt by Equitable of this application, properly signed
and completed, and Contribution at Equitable's Processing Office.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGREEMENT
All information and statements furnished in this application are true and
complete to the best of my knowledge and belief. I understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations.
IT IS UNDERSTOOD THAT THE ANNUITY ACCOUNT VALUE ATTRIBUTABLE TO ALLOCATIONS TO
THE INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT AND VARIABLE ANNUITY BENEFIT
PAYMENTS MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
UNDER THE PENALTIES OF PERJURY I (WE) CERTIFY THAT THE SOCIAL SECURITY NUMBER(S)
OR TAX IDENTIFICATION NUMBER(S) PROVIDED ON THIS FORM IS (ARE) TRUE, CORRECT AND
COMPLETE.
- --------------------------------------------------------------------------------
LAWS IN YOUR STATE MAY MAKE IT A CRIME TO FILL OUT AN INSURANCE OR ANNUITY
APPLICATION WITH INFORMATION YOU KNOW IS FALSE OR TO LEAVE OUT MATERIAL FACTS.
- --------------------------------------------------------------------------------
X__________________________________ Date_______ City __________ State __________
Signature of Annuitant
X__________________________________ Date_______ City __________ State __________
Signature of Authorized Individual (REQUIRED FOR EDC AND
TRUSTEED) OR OWNER
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGENT'S SECTION
Will any existing insurance or annuity be replaced or changed (or has it been),
assuming the Contract will be issued? | | Yes | | No
|_| I (we) certify that a prospectus for the Contract has been given to the
proposed Annuitant and that no written sales materials other than those approved
by Equitable have been used.
EQUI-VEST issues must adequately reflect the commission interest of all Agents
on previous contracts.
- --------------------------------------------------------------------------------
Print Agent's Name(s) Initial of Agent Agent Agency District Agent's
(Service Agent first) Last Name Number % Code Manager Code Signature
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FOR AGENCY COMPLIANCE FILE: INITIALS OF AGENCY EQS___ Date ___ District EQS ___
Date ____
- --------------------------------------------------------------------------------
(FOR ASU USE)
ASU Code and App. No. __________________________________________________________
ASU Rec'd. _____________________________________________________________________
Date to Proc. Off. ________________________________________________ Campaign |_|
Agent(s) shown above is Equity Qualified and is licensed in the state where the
request is signed. Above Agent information verified by ASM (Registered Rep)
- --------------------------------------------------------------------------------
Application reviewed by ________________________________________________________
- --------------------------------------------------------------------------------
180-1000
<PAGE>
[EQUITABLE LOGO]
Owner:
Annuitant:
Contract Number:
Issue Date:
Contract Date:
Retirement Date:
- --------------------------------------------------------------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P O Box 2996,
New York, New York 10116-2996
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division of the Separate Account (referred
to in this Contract as the "Investment Divisions") or to the Guaranteed
Interest Division, in accordance with Sections 2.02, 2.03 and 2.04 or in
part to any one, as directed by you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide the
Annuitant with an Annuity Benefit or a Cash Value benefit if the Annuitant
is then living, and
o TO PROVIDE the Annuitant with the other rights and benefits of this
Contract.
This is the entire Contract. In this Contract, "we", "our" and "us" mean the
Equitable Life Assurance Society of the United States. "You" and "your" mean the
Annuitant at the time a right is exercised by the Annuitant.
TEN DAYS TO EXAMINE CONTRACT-You may cancel this Contract by returning it to us
within ten days after receipt of it. Upon such cancellation, we will refund any
Contribution made to us on your behalf under this Contract, plus or minus any
investment gain or loss experienced in the Investment Divisions of the Separate
Account from the date such Contribution is allocated to such Investment Division
to the date we receive the returned Contract.
/s/Pauline Sherman /s/Edward D. Miller
Pauline Sherman, Vice President Edward D. Miller
Secretary & Associate General Counsel President and Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.26 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE NOT TO
EXCEED THE MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR
FINANCIAL ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK,
PLUS THE INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF
THE TRUST.
No 92 TSAB
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
DEFINITIONS Page
Section 1.00 - Agreement...................................................4
1.01 - Annuitant...................................................4
1.02 - Annuity.....................................................4
1.03 - Annuity Account Value.......................................4
1.04 - Annuity Benefit.............................................4
1.05 - Cash Value..................................................4
1.06 - Class of Contracts..........................................5
1.07 - Code........................................................5
1.08 - Contract ...................................................5
1.09 - Contract Date...............................................5
1.10 - Contract Year...............................................5
1.11 - Contribution................................................5
1.12 - Divisions...................................................5
1.13 - Elective Deferrals..........................................5
1.14 - Eligible Annuity Certain....................................5
1.15 - Employer....................................................5
1.16 - ERISA.......................................................5
1.17 - Guaranteed Interest Rate....................................5
1.18 - Joint and Survivor Life Annuity Form........................5
1.19 - Life Annuity Form...........................................5
1.20 - Normal Form.................................................5
1.21 - Period Certain Annuity......................................5
1.22 - Plan........................................................6
1.23 - Processing Office...........................................6
1.24 - Retirement Date.............................................6
1.25 - Separate Account............................................6
1.26 - Separate Account Definitions................................7
1.27 - Transaction Date............................................7
1.28 - Trust.......................................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions...............................................8
2.02 - Separate Account Investment Divisions.......................8
2.03 - Guaranteed Interest Division................................8
2.04 - Allocation to Divisions.....................................8
2.05 - Transfers Among Divisions...................................8
2.06 - Termination of this Contract................................9
2.07 - Partial Withdrawals.........................................9
2.08 - Charges for Partial Withdrawals.............................9
2.09 - Free Corridor Amount.......................................10
2.10 - Restrictions on Distributions..............................10
2.11 - Annual Administrative Charge...............................10
2.12 - Death Benefit..............................................10
2.13 - Loans......................................................11
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit......................................12
3.02 - Variable Annuity Benefit...................................12
3.03 - Election and Commencement Of Annuity Benefits..............12
3.04 - Amount of Annuity Benefits.................................13
3.05 - Payment of Annuity Benefits................................13
3.06 - Special Annuity and Spousal Consent Provisions.............15
GENERAL PROVISIONS
Section 4.01 - Contract...................................................16
4.02 - Statutory Compliance.......................................16
4.03 - Nontransferability and Assignments.........................16
4.04 - Beneficiary................................................16
4.05 - Disqualification Of Plan or Contract.......................17
4.06 - Future Contributions.......................................17
4.07 - Deferment..................................................17
4.08 - Annual Notice..............................................17
4.09 - Age........................................................17
No. 92 TSAB Page 2
<PAGE>
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PART I - DEFINITIONS
SECTION 1.00 AGREEMENT. The term "Agreement" means an agreement described in
Treasury Regulation Section 1.403(b)-l(b)(3) between an Employer and an employee
of the Employer, in which the Employer agrees to purchase an Annuity for the
employee. If Employer contributions to purchase the Annuity result from the
employee's agreement to take a reduction in future salary or forgo a future
salary increase, such Agreement is referred to as a "Salary Reduction Agreement"
within the meaning of Sections 402(g)(3)(C) and 3121(a)(5)(D) of the Code.
SECTION 1.01 ANNUITANT. The term "Annuitant" means the owner of this Contract,
as shown on page 3 and on whose behalf this Contract has been purchased and is
maintained, and who exercises all rights under this Contract.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the terms of the Plan or Agreement, which contract meets the
requirements for qualification under Section 403(b) of the Code.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account pursuant to Sections 2.02 and 2.03,
plus any reserve or suspense account pursuant to loans under Section 2.13.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.18, 1.19, 1.20, 3.01 and 3.02) refer to monthly payments to
be made under an Annuity Benefit. You may wish to have your Annuity Benefit paid
at other intervals, such as quarterly, semi-annually, or annually, instead of
monthly. You may elect this at the time you elect the Annuity Benefit form as
described in Section 3.03; in that event, all references in this Contract to
monthly payments will be deemed to mean payments at the frequency you elect,
subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less any applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the excess of (i) the Annuity Account Value over (ii) the Free Corridor
Amount defined in Section 2.09; and
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior charges for partial
withdrawals made pursuant to Section 2.08.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
A withdrawal charge will not apply, which means the Cash Value will equal the
Annuity Account Value upon any of the following occurrences:
(i) your attainment of age 59 and 6 months, and your completion of at least
five Contract Years, or
(ii) you die and a distribution is made to your beneficiary, or
(iii) your attainment of age 55, your completion of at least five Contract Years
and the receipt by us of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase an
Eligible Annuity Certain, defined in Section 1.14, or
(iv) your completion of at least three Contract Years and the receipt by us of
a properly completed settlement election form providing for the
application of the Annuity Account Value to purchase a Period Certain
Annuity, defined in Section 1.21, where the certain period of such annuity
is at least ten years, or
(v) the receipt by us of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase a
Life Annuity distribution option, or
(vi) your attainment of age 55, your completion of at least five Contract
Years, and separation from service, or
(vii) your completion of at least twelve Contract Years.
No. 92 TSAB Page 4
<PAGE>
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same Calendar Year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, or
any corresponding provisions of prior or subsequent United States revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made to us
for you with respect to an Annuity purchased for you under the Plan. We are
under no obligation to accept any Contribution less than $20.00. Contributions
may be either Elective Deferrals or Employer Contributions pursuant to the Plan.
The Employer shall indicate to us the amount and type of each Contribution.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following Divisions described in this
Contract:
(a) the Guaranteed Interest Division, and
(b) the Investment Division of the Separate Account.
SECTION 1.13 ELECTIVE DEFERRALS. The term "Elective Deferrals" means
Contributions made pursuant to a Salary Reduction Agreement as defined in
Section 1.00.
SECTION 1.14 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us which extends beyond
your attainment of age 59 and 6 months and does not permit any prepayment of the
unpaid principal (that is, no withdrawal or single sum payment) prior to your
attainment of age 59 and 6 months.
SECTION 1.15 EMPLOYER. The term "Employer" means (i) an organization described
in Section 501(c)(3) of the Code which is exempt from Federal income tax under
Section 501(a) of the Code; or (ii) a State, political subdivision of a State,
or an agency or instrumentality of any one or more of the foregoing, in
connection with services performed by an employee for an educational
organization described in Section 170(b)(1)(A)(ii) of the Code.
SECTION 1.16 ERISA. The term ERISA means the Employee Retirement Income Security
Act as amended.
SECTION 1.17 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on page 3 of
this Contract. Section 2.03 describes the determination of the Rate to apply
thereafter.
SECTION 1.18 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.19 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us or one of our affiliated or subsidiary life insurance companies,
providing fixed monthly payments during the lifetime of the person upon whose
life such payments depend. The payments commence on the date as of which the
Life Annuity Form is purchased and terminate with the last payment due before
the death of such person.
SECTION 1.20 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means (i) if you have a living spouse at the Retirement Date, the
Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form with
such spouse as the contingent annuitant (with 100% of the monthly amount payable
to your spouse), and (ii) if you do not have a living spouse at the Retirement
Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.21 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us or one of our affiliated
or subsidiary life insurance companies, which does not permit any prepayment of
the unpaid principal (that is, you cannot elect to receive part of your payments
as a single sum payment with the remainder paid in monthly annuity payments).
No. 92 TSAB Page 5
<PAGE>
SECTION 1.22 PLAN. The term "Plan" means a program established by an Employer,
for the purchase of Annuities on behalf of employees. The Employer shall be the
"Plan Administrator" within the meaning of Section 414(g) of the Code and
applicable Treasury Regulations.
SECTION 1.23 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P O Box 2996, New York, New York 10116-2996, or such
other location as we shall designate by advance written notice to the Employer,
or the Plan's Trustee, as applicable, and to you.
SECTION 1.24 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain your retirement age as shown on page 3 of this Contract. Before the
Retirement Date you may elect to change the Retirement Date to another
Retirement Date, which may be any date after the filing of the election (other
than the 29th, 30th, or 31st day of any month). The Retirement Date selected
either initially or by later change must be in accordance with the terms of the
Plan. No Retirement Date shall be later than the date of your attainment of age
70 and 6 months. Any election for such change must be made in writing by you and
shall not take effect until received by us at our Processing Office.
SECTION 1.25 SEPARATE ACCOUNT. The term "Separate Account" means Separate
Account A, which is organized as a unit investment trust (a type of investment
company). We have established the Separate Account and it is maintained in
accordance with the laws of New York State. Realized and unrealized gains and
losses from the assets of the Separate Account are credited to or charged
against it without regard to our other income, gains or losses. Assets are put
in the Separate Account to support this Contract and other variable annuity
contracts. Assets may be put in the Separate Account for other purposes, but not
to support contracts or policies other than variable annuities and variable life
insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these Contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
the Trust. We reserve the right to change the designated trust or investment
company or to add designated trusts or investment companies. The Investment
Divisions available are the Stock Division, the Money Market Division, the
Balanced Division and the Aggressive Stock Division. The Guaranteed Interest
Division is not a part of the Separate Account, but rather is an asset of our
General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio of
the securities in which an investment Division is invested to materially affect
the Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any other
form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to, or
remove Investment Divisions (or sub-divisions of Investment Divisions)
from the Separate Account; (The term "Investment Division" in this
Contract shall then refer to any other Investment Division in which the
asset of a Class of Contracts to which this Contract belongs, were
placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
No. 92 TSAB Page 6
<PAGE>
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for any applicable
tax charges) at a rate not to exceed 1.49% per year for the Stock, Money Market
and Balanced Divisions, and 1.34% per year for the Aggressive Stock Division,
for financial accounting, death benefits, mortality risk, expenses and expense
risk. The charge shall be made in accordance with Subsection (c) of the Net
Investment Factor provision in Section 1.26. The relative proportion of these
charges may be modified. The daily charge, plus the investment advisory fee
charges and direct operating expense charges of the Trust shall not exceed a
total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract. The maximum rate may not be altered
without your approval.
SECTION 1.26 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share
value reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
any amounts allocated to or withdrawn for that Valuation Period).
(c) is the daily asset charge for the expenses of this Contract, times the
number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where your Contributions are invested and which is used in
determining the amount you have in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first Contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base Rates of Net Investment Return of 5% and 3.5% a year, respectively. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods ending in such month.
SECTION 1.27 TRANSACTION DATE. The Transaction Date is the business day we
receive a Contribution or a written contract transaction request providing the
information we need at the Processing Office. In the case of a transfer request
initiated through the use of a touch tone telephone as described in Section
2.05, the term Transaction Date is the business day the telephone transaction
is received.
SECTION 1.28 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
No. 92 TSAB Page 7
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PART II - ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. The Employer is to make Contributions, from time to
time on such dates and in such amounts as determined by the Employer pursuant to
the terms of the Plan or Agreement. You are to specify the amount to be
allocated to each Division.
Each contribution received by us with respect to you will, before its allocation
under this Contract, be reduced by the amount of any applicable tax charge, as
determined by us.
Pursuant to the terms of the Plan, if applicable, you may, with our agreement,
(i) transfer to this Contract any amount held under a contract or account that
meets the requirements of Section 403(b) of the Code ("Transferred Funds"), or
(ii) roll over contributions from a contract or account that meets the
requirements of Section 403(b) of the Code, or from a conduit individual
retirement arrangement described in Section 408(d)(3)(A)(iii) of the Code. If
you do not provide to us at the time of such transfer as described in (i) above,
as to what portion, if any, of the amounts of the Transferred Funds which are
exempt from the distribution restrictions described in Section 2.10, and the
minimum distribution rules described in Section 3.05, we will treat all such
amounts as being subject in such restrictions. Any Transferred Funds from a
contract not issued by us will, before allocation under this Contract, be
reduced by the amount of any applicable tax charge, as determined by us.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to or withdrawn or transferred from an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing said amount by
the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units you have in an
Investment Division on any date is equal to (i) the sum of any Accumulation
Units that have been allocated pursuant to Section 2.04 minus (ii) the sum of
any Accumulation Units that have been withdrawn pursuant to Sections 2.07, 2.08
or 2.13, or transferred from the Investment Division pursuant to Section 2.05.
The amount you have in an Investment Division on any date is equal to the
product of (i) the number of Accumulation Units in the Investment Division on
that date, and (ii) the Accumulation Unit Value for the Investment Division for
the Valuation Period which includes that date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) your election and commencement of annuity benefits pursuant to
Section 3.03, (ii) receipt of due proof of your death, or (iii) termination of
this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division as part of our general assets, which support the
guarantees of this Contract and other contracts. The amount in the Guaranteed
Interest Division at any time is equal to the sum of all amounts that have been
allocated to the Guaranteed Interest Division pursuant to Section 2.04 or 2.13,
plus the amount of any interest accrued but not allocated, less the sum of all
amounts that have been withdrawn from the Guaranteed Interest Division pursuant
to Section 2.07, 2.08 or 2.13 or transferred from the Guaranteed Interest
Division, pursuant to Section 2.05. Interest is allocated to the Guaranteed
Interest Division on a Transaction Date pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under the terms of this
Contract terminates on the earliest of (i) election and commencement of Annuity
Benefits pursuant to Section 3.03, (ii) receipt of due proof of your death, iii)
Termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon Termination of this Contract, pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.12.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request or through
the use of a touch tone telephone, transfer all or part of the amount you have
in a Division to one or more of the Divisions as follows: (1) amounts in the
Guaranteed Interest Division, Stock Division, Balanced Division and Aggressive
Stock Division may be transferred among such Divisions; (2) amounts in the Money
Market Division may be transferred to other Divisions. Written authorization for
touch tone telephone initiated transfers is only required when authorization for
telephone transfers is requested. Upon advance written notice to you, we reserve
the right to
No. 92 TSAB Page 8
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discontinue the acceptance of transfer requests through the use of a touch tone
telephone. All transfers will be effective on the Transaction Date and will be
subject to our rules in effect at the time of transfer. With respect to
Investment Division, the transfer will be made at the Accumulation Unit Value
next computed after the Transaction Date. No transfers are permitted to the
Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. Subject to any restrictions under the
terms of the Plan, including, for Plans subject to Title I of ERISA, if
applicable, the spousal consent rules set forth in Section 3.06, you may elect,
by written notice, to terminate this Contract. In addition, termination of the
Contract is subject to restrictions on distributions set forth in Section 2.10
of this Contract. We will determine the Cash Value as of the Transaction Date we
receive your written election.
The payment of such Cash Value to you may be deferred by us in accordance with
the provisions of Section 4.07.
Subject to the terms of the Plan, and the restrictions on distributions set
forth in Section 2.10, we reserve the right to pay the Annuity Account Value
under this Contract and terminate this Contract. This right may be exercised
only if both (i) you made no Contributions during the last three completed
Contract Years, and the Annuity Account Value is less than $500, or (ii) a
partial withdrawal is made that would result in your Annuity Account Value
falling below $500. We also reserve the right to terminate this Contract if no
Contributions have been made within 120 days of the Contract Date shown on page
3 of this Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions and the Annuity Account Value shall be zero. We will
be released from any and all liability for payments with respect to the
Contributions from which the Annuity Account Value arose.
If this Contract is terminated, surrendered or exchanged prior to your
Retirement Date, any applicable tax charges we have paid may be deducted. If we
have previously deducted charges for applicable taxes from Contributions
pursuant to Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
your Contract.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions under
the terms of the Plan, and the restrictions on distributions set forth in
Section 2.10, you may elect, by written notice to us, to make a partial
withdrawal from the Divisions. For Plans subject to Title I of ERISA, partial
withdrawals may be subject to the spousal consent rules if applicable, set forth
in Section 3.06.
Following receipt of your written notice, we will pay the lesser of the Cash
Value, less any funds restricted pursuant to Section 2.13, or the amount of
partial withdrawal requested to the person entitled to receive such payment as
you designate to us in writing. The amount paid plus any withdrawal charge
applicable pursuant to Section 2.08 will be withdrawn from the amounts you have
in the Divisions. Unless instructed otherwise, the amount withdrawn (including
any withdrawal charge) will be allocated among the Divisions in proportion to
the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300,
or where the request violates the provisions of Sections 2.07 or 3.06. If a
withdrawal made under this Section would result in an Annuity Account Value of
less than $500, we will so advise you and reserve the right to pay the Annuity
Account Value to you and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.09 or (b) the Cash Value is equal to the Annuity
Account Value, pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount, in proportion to the amount you have
in them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
No. 92 TSAB Page 9
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of the amount withdrawn in excess of the Free Corridor Amount (including such
charge) pursuant to (ii) of the preceding sentence.
(b) the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior partial withdrawal
charges made pursuant to this Section.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount. If
withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to your Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means if you
have completed three Contract Years or attained age 59 and 6 months an amount
equal to the excess, if any, of (i) 10% of the sum of the Annuity Account Value
on the Transaction Date over (ii) cumulative prior withdrawals made pursuant to
Section 2.07 in the current Contract Year or pursuant to the repayment of
interest or principal on a loan, in the Current Contract Year. If you have not
completed three Contract Years or attained age 59 and 6 months, the Free
Corrider Amount is zero.
SECTION 2.10 RESTRICTIONS ON DISTRIBUTIONS. Notwithstanding anything in this
Contract to the contrary, payments of Cash Value pursuant to the termination of
this Contract under Section 2.06, partial withdrawals under Section 2.07, death
benefits under Section 2.12 or Annuity Benefits under Section 3.03 may be
limited as provided in Section 403(b)(11) of the Code and in this Section, to
the extent they are attributable to Elective Deferral Contributions made to this
Contract after December 31, 1988 and earnings credited after December 31, 1988
on Elective Deferral Contributions made before and after December 31, 1988
(collectively, "Restricted Amounts").
Distributions of Restricted Amounts may not be made until you attain age 59
years and six months, separate from service, die, or become disabled (within the
meaning of Section 72(m)(7) of the Code). Distributions of Elective Deferral
Contributions made after December 31, 1988-(but not any earnings credited after
December 31, 1988 attributable to Elective Deferral Contributions made before or
after December 31, 1988) may also be made in the case of hardship (within the
meaning of Section 403(b)(ll) of the Code and applicable Treasury Regulations).
If you request payment of Restricted Amounts on the grounds of disability or
hardship you must furnish to us proof of such disability or hardship as may be
required by the Plan, the Code, and applicable Treasury Regulations in a form
satisfactory to us.
SECTION 2.11 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $25,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts that you have in
the Divisions. For this purpose, any loan reserve amount is included within the
Guaranteed Interest Division. The portion of the charge attributable to the
Guaranteed Interest Division and any loan reserve account will be first
withdrawn from the Guaranteed Interest Division and then, if the amount you have
in the Guaranteed Interest Division is not sufficient, the remaining allocation
will be withdrawn from the portion of the loan reserve account that earns
interest at the Guaranteed Interest Rate.
If the Annuity Account Value is less than $25,000, on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03,
or (b) the date of Termination of this Contract pursuant to Section or 2.12, we
will prorate the Annual Administrative Charge applicable to the completed
portion of the Current Contract Year and withdraw such amount in lieu of the
Annual Administrative Charge described in this Section for the applicable part
of that Contract Year.
If the Annuity Account Value is $25,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
SECTION 2.12 DEATH BENEFIT. Upon receipt of due proof of your death, we will pay
to the beneficiary designated to receive such payment, pursuant to Section 4.04
of this Contract, the amount of death benefit payable. The amount of the death
benefit is equal to the greater of (i) the Annuity Account Value less any
outstanding loan and (ii) the minimum death benefit. Such minimum death benefit
is the sum of all Contributions made pursuant to Section 2.01 (before reduction
for any applicable tax charge) less any withdrawals made pursuant to Section
2.07. Any such withdrawal will reduce the minimum death benefit (as adjusted by
any previous such withdrawal) by an amount which is in the same proportion as
the amount that was withdrawn is to the Annuity Account Value. If, in accordance
with the provisions of Section 2.01, the Cash Value of another annuity contract
issued by us, or one of our affiliated or subsidiary life insurance companies,
which provides for a death benefit before retirement is equal to the greater of
the contract Cash Value or alternate amount based or premiums paid or
Contributions made under the annuity contract, is transferred to this Contract,
such Cash Value a alternative amount as of the date of transfer, will be
included in the "sum of all Contributions" in lieu of the amount of Cash Value
transferred for purposes of the death benefit under this Contract.
We will pay the death benefit to the beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also, in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to the
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit, for Plans
subject to Title I of ERISA.
No. 92 TSAB Page 10
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Distributions pursuant to this Section are subject to the terms of the Plan and
the Spousal Consent Rules set forth in Section 3.06 for Plans subject to Title I
of ERISA.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value shall be zero. We will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Account Value arose.
SECTION 2.13 LOANS. Unless otherwise restricted by the Plan or the Code, you may
effect a loan under this Contract before the election and commencement of
Annuity Benefits. However, if the issuance of this Contract is pursuant to the
terms of a Plan subject to Title I of ERISA, then loans shall not be available
under this Contract. Future restrictions in the Code may require revision or
withdrawal of the loan provisions as provided below. Your Annuity Account Value
(including the loan reserve account as described below) will be the sole
security for the loan. A loan is effective on the first day of the month
following the date your loan agreement form is approved by us.
The amount of the loan may not be more than (i) 80% of the Annuity Account Value
of this Contract, if such total Annuity Account Value is greater than or equal
to $3,750 and less than $12,500, (ii) $10,000, if the Annuity Account Value is
greater than or equal to $12,500 and less than $20,000, and (iii) 50% of the
Annuity Account Value if the Annuity Account Value is greater than or equal to
$20,000, but in no event shall the loan amount exceed $50,000 less the highest
outstanding balance under this Contract during the one year period ending the
day before the effective date of the loan. The minimum loan permitted is $3,000.
For this purpose, the Annuity Account Value is taken as of the loan effective
date. Only one outstanding loan is permitted at a time under this Contract.
As a condition for granting a loan, we will require you to represent that the
loan amount requested, when aggregated with loans (principal plus interest) from
all qualified plans of your Employer, does not exceed the greater of $10,000 or
50% of the value of your nonforfeitable accrued benefits, and in no event
exceeds $50,000 less the highest outstanding balance of all loans from qualified
plans during the one year period ending on the day before the effective date of
the loan. We reserve the right to also require that you elect not to have income
tax withholding apply with respect to an interest and/or loan principal that
would otherwise be subject to withholding.
The loan term will be either (i) ten years, if you represent that the purpose of
the loan is to acquire, build or substantially rehabilitate a dwelling unit
which, within a reasonable period of time, is to be used as your principal
residence or (ii) five years. In any event, the loan term may not extend beyond,
that is, full repayment of the loan will be required upon the earlier of (i) the
election and commencement of Annuity Benefits pursuant to Section 3.03, (ii) the
date we received written notice from you to terminate this Contract pursuant to
Section 2.06, (iii) the date we pay a Death Benefit pursuant to Section 2.12,
and (iv) any date provided for such loans by Federal tax rules including
acceleration of the loan repayment in order that the operation of the loan
provisions do not adversely affect the tax treatment of this Contract.
On the loan effective date, we will transfer to a loan reserve account an amount
equal to the sum of (i) the loan amount, which will earn interest at the
effective annual rate of 4% during the loan term and (ii) 25% of the loan
amount, which will earn interest at the Guaranteed Interest Rate, as defined in
this Contract. You may specify from which Divisions these amounts are to be
transferred. In the absence of your direction, or if your directions cover only
part of the amount required to be transferred to the loan reserve account, we
will transfer the required (or additional required) amounts from each Division
in proportion to the amount that you have in such Divisions. On the first day of
the third month following the effective date of the loan and quarterly
thereafter (or first business day thereafter, if such day is not a business
day), the amount of interest earned at 4% annually during the prior quarter will
be transferred to the portion of the loan reserve account that earns interest at
the Guaranteed Interest Rate. You may not make any partial withdrawals or
transfers from the loan reserve account.
Beginning the first day of the third month of each quarter following the
effective date of the loan and quarterly on the first day of the month
thereafter, loan payments must be made to us. Such payments shall be amortized
in substantially level payments over the term of the loan and will be equal to
the sum of (a) and (b) where
(a) is the loan interest, calculated at an effective annual rate of 6%, and
(b) is a portion of the loan principal.
The loan must be repaid in part on each quarterly due date and may be repaid in
full at any time on or after the first loan anniversary and must include the
full interest due. Any payments received will first be applied to interest due,
with the balance applied towards repayment of the loan. Any partial loan
repayment will result in a transfer of the amount equal to the principal repaid
from (i) the portion of the loan reserve account that earns interest at the
effective annual rate of 4% to (ii) the Guaranteed Interest Division and may be
withdrawn, transferred or annuitized as directed in this Contract.
By each due date, if the amount of the loan payment is less than the amount due
or the loan payment is not received at our Processing Office, we will deduct and
treat as a partial withdrawal from the loan reserve account an amount equal to
the interest and principal payments due plus any applicable withdrawal charges
and any required income tax withholding, if such partial withdrawal will not be
a withdrawal of "restricted amounts" as described in Section 2.10 of this
Contract. Specifically, an amount equal to the principal payment will be
deducted from the portion of the loan reserve account which earns interest at
4%, and an amount equal to the interest payment plus any applicable withdrawal
charges and required income tax withholding will be deducted from the portion of
the loan reserve account which earns interest at the Guaranteed Interest Rate.
No. 92 TSAB Page 11
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To the extent a loan repayment is required and a partial withdrawal cannot be
made due to the restrictions described in Section 2.10 of this Contract, a
default in a loan payment will occur. We will transfer from the loan reserve
account to a suspense account an amount equal to the interest and principal
payments due. We will deduct from the loan reserve account a default charge (as
defined in this Section) as well as any required income tax withholding. We will
treat the amount transferred to the suspense account, plus any required income
tax withholding, as a "deemed distribution," that is, such amount will be
considered to have been distributed as provided under Section 72(p) of the Code.
Specifically, an amount equal to the principal payment due will be transferred
from the portion of the loan reserve account which earns interest at 4%, and an
amount equal to the interest payment due will be transferred from the portion of
the loan reserve account which earns interest at the Guaranteed Interest Rate.
Any applicable default charge and required income tax withholding will be
deducted from the portion of the loan reserve account which earns interest at
the Guaranteed Interest Rate.
The default charge on the amount of the deemed distribution is equal to the
applicable withdrawal charges which would have applied if such amount had been
withdrawn from this Contract at such time. Amounts transferred to the suspense
account for the purpose of securing the loan and interest payment due will not
be subject to future withdrawal charges when the liability for any such
defaulted payment is satisfied by a deduction from the suspense account.
Amounts transferred to a suspense account will be held there until Federal
income tax rules permit such amounts to be deducted from the Contract to satisfy
the defaulted loan and interest payment obligation which will be no later than
the date you attain age 59 years and 6 months or notify us in writing that an
event has occurred which would permit Restricted Amounts to be distributed from
the contract under Section 2.10.
Amounts held in the suspense account will earn interest at an effective annual
rate of 3%. You will also be charged interest on your defaulted loan and
interest payment obligation at an effective annual rate of 3% until such time as
any such defaulted payment liability can be satisfied by a deduction from the
suspense account.
The default charge on such deemed distribution is equal to the applicable
withdrawal charges for a withdrawal of an amount equal to the interest and
principal payments due plus required income tax withholding.
Upon your full repayment of the loan, any amounts remaining in the loan reserve
account will be transferred to the Guaranteed Interest Division and may be
withdrawn, transferred or annuitized as described in this Contract.
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PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
with respect to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of net
investment return referred to in Section 1.26 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.25, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounting, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the terms of this Contract with respect to a payee is the
monthly amount provided pursuant to the fifth paragraph of Section 3.04. The
amount of the fourth and each subsequent payment under a Variable Annuity
Benefit will be equal to the number of Annuity Units with respect to such
benefit, multiplied by the Average Annuity Unit Value for the second calendar
month immediately preceding the due date of the payment. The number of Annuity
Units with respect to a benefit is the number determined by dividing the amount
of the first monthly payment under such benefit by the Annuity Unit Value for
the Valuation Period which includes the due date of the first monthly payment.
As described in Section 3.05, we will notify the payee how each Variable Annuity
Benefit is determined.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of your
Retirement Date, provided you are then living, the Annuity Account Value shall
be applied to provide the Normal Form of Annuity Benefit, unless you elect (i)
to receive the Cash Value in a single sum, or (ii) to apply the Annuity Account
Value, (less any outstanding loan as set forth in Section 2.13) or Cash Value,
whichever is applicable pursuant to the first paragraph of Section 3.04, to
provide an Annuity Benefit on any other annuity form offered by us, or one of
our affiliated or subsidiary life insurance companies, as elected by you, or
(iii) to take partial withdrawals in amounts and at times as required by the
Code, pursuant to Sections 2.07 and 3.05, subject to our rules then in effect
and any other applicable requirements under the Code.
No. 92 TSAB Page 12
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We will provide notice and election forms to you not more than six months before
your Retirement Date.
If you elect to terminate this Contract, prior to the Retirement Date, pursuant
to Section 2.06, an election may be made to receive an Annuity Benefit in lieu
of the Cash Value.
We will have the right to require that you furnish pertinent information to
provide an Annuity Benefit, and we will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies. If the issuance of this Contract is pursuant to a Plan
subject to Title I of ERISA, the rules set forth in Section 3.06 shall apply to
your election and the commencement of annuity benefits.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect, pursuant to the first or
third paragraph of Section 3.03, to receive an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the payments under the annuity form involves life
contingencies, or (ii) the Cash Value if the Annuity Form elected does not
involve life contingencies.
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charge from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to your Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your Contract will be governed by our
supplementary contract then in effect.
The amount to be applied to provide an Annuity Benefit will, in addition to any
tax charge reduction, be reduced by an administrative charge. The amount of such
charge will be determined from time to time in accordance with our general
practices applicable on a uniform basis to all contracts of the same type as
this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated, on either the Life Annuity Form or the Joint and
Survivor Life Annuity Form (with 100% of the amount of your payment continued to
your spouse). The amount of income provided under the Fixed Annuity Benefit
payable on the Life Annuity Form and Joint and Survivor Life Annuity Form, are
based on 3.5% interest and the 1983 Individual Annuity Mortality Table "a"
adjusted to a unisex basis based on a 50-50 split of males and females, at age
zero. The amount of income initially provided under the Variable Annuity Benefit
payable on the Life Annuity Form and the Joint and Survivor Life Annuity Form
are based on a 50-50 split of males and females, at age zero and an Assumed Base
Rate of Net Investment Return of 3.5% or 5%, whichever applies pursuant to
Section 1.26.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us based on 3.5% interest and the 1983 Individual Annuity
Mortality Table "a" adjusted to a unisex basis based on a 50-50 split of males
and females, at age zero, if such annuity form provides for a Fixed Annuity
Benefit, and on the projected 1983 Basic Table "a" adjusted to a unisex basis
based on a 50-50 split of males and females, at age zero and an Assumed Base
Rate of Net Investment Income Return of 3.5% or 5%, whichever applies pursuant
to Section 1.26, if such annuity form provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Distributions attributed to
Contributions of Transferred Funds pursuant to Section 2.01 (where you have
provided to us written evidence of such balance as of December 31, 1986) must
commence no later than age 75. Such distributions will be made in the normal
Form of Annuity Benefit, unless you elect to take payments in a single sum or
another form of Annuity Benefit then offered by us.
Your entire interest in this Contract attributable to all other Contributions
made, and earnings credited thereon must be distributed, or begin to be
distributed no later than the first day of April following the calendar year in
which you attain age 70 and 6 months ("Required Beginning Date"). Your entire
interest may be distributed, as you elect, over (a) your life, or the lives of
you and your designated beneficiary, or (b) a period certain not extending
beyond your life expectancy, or the joint and last survivor expectancy of you
and your designated beneficiary. Distributions must be made in periodic payments
at intervals of no longer than one year. In addition, payments must be either
nonincreasing or they may increase only as provided in Q & A F-3 of Section
1.401(a)(9)-1 of the proposed Treasury Regulations, or any successor Regulation
thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 403(b)(10) and 401(a)(9) of the Code, including the
incidental death benefit requirements of Section 401(a)(9)(G) of the Code, and
applicable Treasury Regulations, including the minimum distribution incidental
benefit requirement of Section 1.401(a)(9)-2 of the Proposed Treasury
Regulations, or any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
No. 92 TSAB Page 13
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For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless you otherwise elect prior to the time distributions are required to
begin, those life expectancies shall be recalculated annually. Such election
shall be irrevocable and shall apply to all subsequent years. The life
expectancy of a non-spouse beneficiary may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such beneficiary during
the calendar year in which you attain age 70 and 6 months, and payments for
subsequent years shall be calculated based on such life expectancy reduced by
one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If you die after distribution of your interest in this Contract has begun, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to your death.
If you die before distribution of your interest begins, distribution of your
entire interest shall be completed no later than December 31 of the calendar
year containing the fifth anniversary of your death, except to the extent that
an election is made to receive death benefit distributions in accordance with
(1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then your entire
interest may be distributed over the life of, or over a period certain not
greater than the life expectancy of, the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar year
immediately following the calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date that
distributions are required to begin in accordance with (1) above shall not
be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of your death or (B) December 31 of
the calendar year in which you would have attained age 70 and 6 months.
For purposes of determining the "period certain" referred to in the immediately
preceding paragraph, life expectancy is computed by use of the expected return
multiples in Tables V and VI of Treasury Regulation Section 1.72-9. For purposes
of distributions beginning after your death, unless otherwise elected by the
surviving spouse by the time distributions are required to begin, life
expectancies shall be recalculated annually. Such election shall be irrevocable
by the surviving spouse and shall apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies shall be calculated using
the attained age of such beneficiary during the calendar year in which
distributions are required to begin pursuant to this Section, and payments for
any subsequent calendar year shall be calculated based on such life expectancy
reduced by one for each calendar year which has elapsed since the calendar year
life expectancy was first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under the terms of this Contract was based on information
that is subsequently found to be incorrect, your benefit will not be
invalidated, but an adjustment on the basis of the correct information will be
made in the amount of the benefit payments, or any amount used to provide the
benefit, or any combination thereof. Overpayments by us will be charged against
and underpayments will be added to any payments thereafter falling due under the
terms of this Contract with respect to the payee, affecting as many such
payments as are necessary to correct the overpayment or underpayment. Our
liability, with respect to a payee, is limited to the correct information and
the actual amounts used to provide the benefits then in force with respect to
the payee under this Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii) another person or an
institution is then maintaining or has custody of such payee, and (iii) no
guardian, committee, or other representative of the estate of such payee has
been appointed, we may make the payments (in the case of a minor, at a rate not
exceeding $200 a month) to such other person or institution, and will thereupon
be fully discharged from all liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Pursuant to Section 3.03, upon your election, pursuant to Section 3.03 of an
annuity form providing payments for a period certain, you may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a payee to receive any payments or
installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's estate in
accordance with the following paragraph.
No. 92 TSAB Page 14
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If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments. The commuted value of any such remaining payments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later. We will require
satisfactory evidence of the age of any person upon whose life an annuity form
depends.
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TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE
JOINT AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT TO CONTINUE TO SPOUSE
(Minimum Monthly Income Per $1,000 OF Annuity Account Value)
- ----------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- ----------------------------------------------------------------------------
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
- ----------------------------------------------------------------------------
ANNUITY BENEFIT PAYABLE
ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- -----------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED
BASE RATE OF NET INVESTMENT RETURN IS
Age 3.5% 5.0%
- -----------------------------------------------------------------------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
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We will notify the payee, with respect to each payment under a Variable Annuity
Benefit, the number of Annuity Units and the Average Annuity Unit Value used in
determining the amount of each variable payment. Such notice will be mailed with
each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS. If this Contract is
issued pursuant to a Plan subject to Title I of ERISA, then the provisions of
this Section shall supersede any contrary provisions in this Contract. If you
are married, your interest in the Contract shall be paid in the Normal Form
joint and survivor annuity, and if you are unmarried, your interest shall be
paid in the Normal Form life annuity, unless you elect otherwise as described in
this Section. If you are married and die before payment of your interest has
commenced, your interest shall be paid to your surviving spouse in the form of a
life annuity, unless at the time of your death there was a contrary election
made pursuant to this Section. The foregoing notwithstanding, your surviving
spouse may elect, before payment is to commence, to have payment made in any
form permitted under the terms of this Contract.
You may elect, at any time within the 90 consecutive day period before the first
day of the first period for which your interest is paid as an annuity or in any
other form, not to have your interest paid in the Normal Form, in which case it
shall be paid in any other form elected under the terms of this Contract. If
such interest is to be paid to your spouse upon your death, you may elect,
during the period beginning on the first day of the plan year of the Plan in
which you attain age 35 (or, if you separate from service prior to that plan
year, beginning on the date of separation) and ending with your death, for a
beneficiary other than your spouse to receive payment of the
No. 92 TSAB Page 15
<PAGE>
value of your interest. In addition, if you will not yet attain age 35 by the
end of any current plan year, you may make a special qualified election to
designate a beneficiary other than your spouse to receive payment of the value
of your interest, which special qualified election shall be effective for the
period beginning on the date of such election and ending on the first day of the
plan year in which you attain age 35. Amounts payable in accordance with this
Section will be automatically reinstated as of the first day of the plan year in
which you attain age 35 unless a new election designating a beneficiary other
than the spouse is made in accordance with the requirements of this Section.
Any election described in the foregoing paragraph must be consented to by your
spouse in writing before a notary or a representative of the Plan unless you can
prove that there is no spouse or that the spouse cannot be located. Also, if you
have become legally separated from your spouse or have been abandoned (within
the meaning of local law) and have a court order to such effect, spousal consent
is not required unless a qualified domestic relations order provides otherwise.
Your election must designate a specific beneficiary (including any class of
beneficiaries or any contingent beneficiaries) that may not be changed without
further consent of the spouse, unless the spouse's consent expressly permits
designation by you without further consent of the spouse. The spouse's consent
under this section shall acknowledge the effect of the election. In addition,
the spouse's consent (or the establishment that the consent of the spouse may
not be obtained) shall only be valid with respect to such spouse. Your waiver of
the Normal Form joint and survivor annuity shall not be effective unless the
election designates a form of benefit payment which may not be changed without
spousal consent (or the spouse expressly permits designations by you without any
further spousal consent). A consent that permits designations by you without any
requirement of further consent by such spouse must acknowledge that the spouse
has the right to limit consent to a specific beneficiary and a specific form of
benefit where applicable, and that the spouse voluntarily elects to relinquish
either or both of such rights. If you make an election under this Section, you
may revoke that election, without spousal consent, at any time before the first
day of the first period for which an amount is paid as an annuity or in any
other form.
The provisions requiring spousal consent in this Section shall also apply with
regard to your election to terminate this Contract or make partial withdrawals
pursuant to Sections 2.06 and 2.07, and with respect to a beneficiary
designation set forth in Section 4.04. A spouse's written consent, witnessed by
a representative of the Plan or a notary public, must be given on a form
acceptable to the Employer and us, within the 90 consecutive day period prior to
any such payment or withdrawal, or beneficiary designation, unless you can show
that you have no spouse or that the spouse cannot be located.
If the Annuity Account Value applied to provide the spousal benefits on the date
payment is to commence is in the aggregate less than $3,500, we may choose to
make payment in a single sum rather than in the form of a Qualified Joint and
Survivor Annuity or Life Annuity as described herein. Upon any payment made
pursuant to this Section, we will be released from any and all liability for
payment with respect to the Contributions made for you.
- --------------------------------------------------------------------------------
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the terms of this Contract alone will govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend the terms of
this Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the terms of this Contract to reflect changes in the
Code, or applicable Treasury Regulations, or in regulations or published rulings
of the Internal Revenue Service so that this Contract will continue to be an
Annuity.
SECTION 4.03 NONTRANSFERABILITY AND ASSIGNMENTS. Your entire interest under this
Contract is nonforfeitable. No interest of yours (or of a beneficiary) under
this Contract may be transferred to any person other than us upon the surrender
of this Contract. Except as permitted under applicable law, no right or interest
of you or any other payee or beneficiary in this Contract shall be (a)
assignable; (b) subject to any lien; or (c) liable for, or subject to, any
obligation or liability of any person. The preceding sentence shall not apply to
any assignment, transfer or attachment pursuant to a qualified domestic
relations order (as defined in Section 414(p) of the Code).
SECTION 4.04 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any death benefit
payable pursuant to Section 2.12. You may change such designation from time to
time during your lifetime, and while this Contract is in force. Any such
designation or change must be made by written notice in a form satisfactory to
us. A change will, upon receipt at the Processing Office, take effect as of the
time the written notice was signed, whether or not you are living on the date of
receipt, but without further liability as to any payment or other settlement
made by us before receipt of such change. Beneficiary designations are subject
to the rules of Section 3.06 if the Contract is issued pursuant to a Plan
subject to Title I of ERISA.
No. 92 TSAB Page 16
<PAGE>
Unless otherwise specified in the designation, if you have designated two or
more persons as beneficiary, the beneficiary will be the designated person or
persons who survive you, and if more than one survive, they will share equally.
Any part of a death benefit payable pursuant to Section 2.12 for which there is
no designated beneficiary living at the time of your death, will be payable in a
single sum to your children who survive you, in equal shares, or should none
survive, then to your estate.
If you elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity previously elected by you, with respect to the beneficiary,
subject to our rules then in effect. If, at your death, there is no election in
effect to apply the single sum death benefit to provide an Annuity Benefit, the
beneficiary may make such an election. Any such election must meet the minimum
distribution requirements under the Code, as described in Section 3.05.
SECTION 4.05 DISQUALIFICATION. In the event that the Plan fails to qualify as a
Plan under Section 403(b) of the Code and applicable Treasury Regulations, we
reserve the right, upon receiving notice of such fact, to transfer the Annuity
Account Value under this Contract to another annuity contract issued by us, an
affiliate subsidiary, on your life, or to terminate this Contract and pay to you
the Annuity Account Value less deduction for applicable taxes, solely at our
option.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to the Employer, we
reserve the right at our sole discretion to limit Contributions under this
Contract.
SECTION 4.07 DEFERMENT. Application of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payment in order to protect
persons with interests in the Investment Divisions. We can defer payment of any
portion of your Annuity Account Value in the Guaranteed Interest Division for up
to six months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year we will furnish you
with a notice showing the following:
(1) the amount you have in the Guaranteed Interest Division,
(2) the total number of Accumulation Units you have in the Stock Division,
Balanced Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Values,
(4) the amount you have in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division,
(5) the amount you have in the loan reserve account,
(6) the Cash Value, and
(7) the amount of death benefit payable with respect to you.
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.09 AGE. If your age has been misstated, any benefits will be those
which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
No. 92 TSAB Page 17
<PAGE>
OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28,1992
RETIREMENT DATE: JAN 1, 2020
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES Processing Office:
Individual Annuity Center, P.O. Box 2996, G.P.O. New York, New York 10116
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division of the Separate Account (referred to
in this Contract as the "Investment Divisions") or to the Guaranteed Interest
Division, in accordance with Sections 2,02, 2.03 and 2.04 or in part to any
one, as directed by you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide the
Annuitant with an Annuity Benefit or a Cash Value benefit if the Annuitant is
then living, and
o TO PROVIDE the Annuitant with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract "we", "our", and "us" mean The
Equitable Life Assurance Society of the United States. "You" and "your" mean the
Annuitant at the time a right is exercised by the Annuitant.
TEN DAYS TO EXAMINE CONTRACT--You may cancel this Contract by returning it to us
within ten days after receipt of it. Upon such cancellation, we will refund any
Contribution made to us on your behalf under this Contract.
/s/ Molly K. Heines /s/ Richard H. Jenrette
Vice President and Secretary Chairman of the Board and
Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.26 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE NOT TO
EXCEED THE MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR
FINANCIAL ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK,
PLUS THE INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF
THE TRUST.
No. 92 TSUA
<PAGE>
The Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
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TABLE OF CONTENTS
DEFINITIONS
Page
Section 1.00 - Agreement..........................................4
1.01 - Annuitant..........................................4
1.02 - Annuity............................................4
1.03 - Annuity Account Value..............................4
1.04 - Annuity Benefit....................................4
1.05 - Cash Value.........................................4
1.06 - Class of Contracts.................................5
1.07 - Code...............................................5
1.08 - Contract...........................................5
1.09 - Contract Date......................................5
1.10 - Contract Year......................................5
1.11 - Contribution.......................................5
1.12 - Divisions..........................................5
1.13 - Elective Deferrals.................................5
1.14 - Eligible Annuity Certain...........................5
1.15 - Employer...........................................5
1.16 - ERISA..............................................5
1.17 - Guaranteed Interest Rate...........................5
1.18 - Joint and Survivor Life
Annuity Form....................................5
1.19 - Life Annuity Form..................................5
1.20 - Normal Form........................................5
1.21 - Period Certain Annuity.............................6
1.22 - Plan...............................................6
1.23 - Processing Office..................................6
1.24 - Retirement Date....................................6
1.25 - Separate Account...................................6
1.26 - Separate Account Definitions.......................7
1.27 - Transaction Date...................................7
1.28 - Trust..............................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions......................................8
2.02 - Separate Account Investment
Divisions.......................................8
2.03 - Guaranteed Interest Division.......................8
2.04 - Allocation to Divisions............................8
2.05 - Transfers Among Divisions..........................8
2.06 - Termination of this Contract.......................9
2.07 - Partial Withdrawals................................9
2.08 - Charges for Partial Withdrawals....................9
2.09 - Free Corridor Amount..............................10
2.10 - Restrictions on Distributions.....................10
2.11 - Annual Administrative Charge......................10
2.12 - Death Benefit.....................................10
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit.............................11
3.02 - Variable Annuity Benefit..........................11
3.03 - Election and Commencement of
Annuity Benefits...............................11
3.04 - Amount of Annuity Benefits........................11
3.05 - Payment of Annuity Benefits.......................12
3.06 - Special Annuity and Spousal
Consent Provisions.............................14
GENERAL PROVISIONS
Section 4.01 - Contract..........................................15
4.02 - Statutory Compliance..............................15
4.03 - Nontransferability and
Assignments....................................15
4.04 - Beneficiary.......................................15
4.05 - Disqualification of Plan or
Contract.......................................16
4.06 - Future Contributions..............................16
4.07 - Deferment.........................................16
4.08 - Annual Notice.....................................16
4.09 - Age...............................................16
No. 92 TSUA Page 2
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OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28,1992
RETIREMENT DATE: JAN 1, 2020
INITIAL GUARANTEED INTEREST RATE: 7.50% to MAR 31, 1992
MINIMUM GUARANTEED INTEREST RATE: 6.00% TO DEC 31, 1992
3.00% AFTER DEC 31, 1992
BENEFICIARY: JANE DOE
FORM NUMBER: 92TSUA
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TABLE OF GUARANTEED VALUES
ISSUE AGE 38 MALE $1000 ANNUAL CONTRIBUTION
NUMBER OF YEARS GUARANTEED GUARANTEED PAID-UP MONTHLY
SINCE FIRST CONTRIBUTION CASH VALUE ANNUITY AT AGE 65*
------------------------ ---------- -----------------
1 977 6.63
2 1,946 16.20
3 2,944 26.67
4 3,998 36.84
5 5,064 46.70
6 6,220 56.28
7 7,362 65.59
8 8,538 74.62
9 9,841 83.38
10 11,204 91.90
11 12,629 100.16
12 14,118 108.18
13 15,673 115.97
14 17,144 123.54
15 18,658 131.18
16 20,218 138.64
17 21,824 145.90
18 23,479 152.80
19 25,213 159.70
20 27,000 166.03
24 (Age 62) 34,697 189.57
27 (Age 65) 41,098 205.49
THE TABLES ILLUSTRATE MINIMUM GUARANTEED VALUES AND ASSUME A HYPOTHETICAL $1,000
CONTRIBUTION MADE ANNUALLY ON THE FIRST OF THE MONTH FOLLOWING THE CONTRACT
DATE. THE GUARANTEED CASH VALUE TABLE REFLECTS AN ANNUAL ADMINISTRATIVE CHARGE
(SEE SECTION 2.11) AND A WITHDRAWAL CHARGE OF UP TO 6% OF THE ACCOUNT VALUE (SEE
SECTION 1.05). THE TABLES ASSUME THAT 100% OF ALL CONTRIBUTIONS AND EARNINGS ARE
ALLOCATED TO AND REMAIN IN THE GUARANTEED INTEREST DIVISION.
YOUR ACTUAL GUARANTEED VALUES MAY DIFFER FROM THOSE SHOWN ABOVE, DEPENDING ON
THE LEVEL AND FREQUENCY OF YOUR CONTRIBUTIONS.
THE GUARANTEED PAID-UP MONTHLY ANNUITY SHOWN ABOVE WILL BE REDUCED BY ANY CHARGE
WE MAKE FOR ANY APPLICABLE TAXES (SEE SECTION 3.04). OTHER FORMS OF ANNUITY
BENEFITS MAY BE AVAILABLE; HOWEVER, ANY ANNUITY BENEFIT CONTRACT ELECTED AS A
SETTLEMENT WILL BE SUBJECT TO A CHARGE (SEE SECTION 3.04).
*ASSUMES FIXED BENEFIT JOINT AND SURVIVOR LIFE ANNUITY (100% CONTINUATION TO
SURVIVOR) WITH JOINT ANNUITANT THE SAME AGE AS THE ANNUITANT.
No. 92 TSUA Page 3
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PART I--DEFINITIONS
SECTION 1.00 AGREEMENT. The term "Agreement" means an agreement described in
Treasury Regulation Section 1.403(b)-1(b)(3) between an Employer and an employee
of the Employer, in which the Employer agrees to purchase an Annuity for the
employee. If Employer contributions to purchase the Annuity result from the
employee's agreement to take a reduction in future salary or forgo a future
salary increase, such Agreement is referred to as a "Salary Reduction Agreement"
within the meaning of Sections 402(g)(3)(C) and 3121(a)(5)(D) of the Code.
SECTION 1.01 ANNUITANT. The term "Annuitant" means the owner of this Contract,
as shown on page 3 and on whose behalf this Contract has been purchased and is
maintained, and who exercises all rights under this Contract.
SECTION 1.02 ANNUITY. The Term "Annuity" means an annuity contract purchased in
accordance with the terms of the Plan or Agreement, which contract meets the
requirements for qualification under Section 403(b) of the Code.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account pursuant to Sections 2.02 and 2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.18, 1.19, 1.20, 3.01, and 3.02) refer to monthly payments
to be made under an Annuity Benefit. You may wish to have your Annuity Benefit
paid at other intervals, such as quarterly, semi-annually, or annually, instead
of monthly. You may elect this at the time you elect the Annuity Benefit form as
described in Section 3.03; in that event, all references in this Contract to
monthly payments will be deemed to mean payments at the frequency you elect,
subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less any applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the excess of (i) the Annuity Account Value over (ii) the Free Corridor
Amount defined in Section 2.09; and
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior charges for partial
withdrawals made pursuant to Section 2.08.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
A withdrawal charge will not apply, which means the Cash Value will equal the
Annuity Account Value upon any of the following occurrences:
(i) your attainment of age 59 and 6 months and your completion of at least
five Contract Years, or
(ii) you die and a distribution is made to your beneficiary, or
(iii) your attainment of age 55, your completion of at least five Contract Years
and the receipt by us of a properly completely settlement election form
providing for the application of the Annuity Account Value to purchase an
Eligible Annuity Certain, defined in Section 1.14, or
(iv) your completion of at least three Contract Years and the receipt by us of
a properly completed settlement election form providing for the
application of the Annuity Account Value to purchase a period certain
Annuity, defined in Section 1.21, where the certain period of such annuity
is at least ten years, or
(v) the receipt by us of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase a
Life Annuity distribution option, or
(vi) the attainment of age 55, your completion of at least five Contract Years,
and separation from service, or
(vii) your completion of at least twelve Contract Years.
No. 92 TSUA Page 4
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SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, or
any corresponding provisions of prior or subsequent United States revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both an application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made to us
for you with respect to an Annuity purchased for you under the Plan. We are
under no obligation to accept any Contribution less than $20.00. Contributions
may be either Elective Deferrals or Employer Contributions pursuant to the Plan.
The Employer shall indicate to us the amount and type of each Contribution.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following Divisions described in this
Contract:
(a) the Guaranteed Interest Division, and
(b) the Investment Division of the Separate Account.
SECTION 1.13 ELECTIVE DEFERRALS. The term "Elective Deferrals" means
Contributions made pursuant to a Salary Reduction Agreement as defined in
Section 1.00.
SECTION 1.14 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us which extends beyond
your attainment of age 59 and 6 months and does not permit any prepayment of the
unpaid principal (that is, no withdrawal or single sum payment) prior to your
attainment of age 59 and 6 months.
SECTION 1.15 EMPLOYER. The term "Employer" means (i) an organization described
in Section 501(c)(3) of the Code which is exempt from Federal income tax under
Section 501(a) of the Code; or (ii) a State, political subdivision of a State,
or an agency or instrumentality of any one or more of the foregoing, in
connection with services performed by an employee for an educational
organization described in Section 170(b)(1)(A)(ii) of the Code.
SECTION 1.16 ERISA. The term ERISA means the Employee Retirement Income Security
Act as amended.
SECTION 1.17 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on page 3 of
this Contract. Section 2.03 describes the determination of the Rate to apply
thereafter.
SECTION 1.18 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.19 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us or one of our affiliated or subsidiary life insurance companies,
providing fixed monthly payments during the lifetime of the person upon whose
life such payments depend. The payments commence on the date as of which the
Life Annuity Form is purchased and terminate with the last payment due before
the death of such person.
SECTION 1.20 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means (i) if you have a living spouse at the Retirement Date, the
Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form with
such spouse as the contingent annuitant (with 100% of the monthly amount payable
to your spouse), and (ii) if you do not have a living spouse at the Retirement
Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
No. 92TSUA Page 5
<PAGE>
SECTION 1.21 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us or one of our affiliated
or subsidiary live insurance companies which does not permit any prepayment of
the unpaid principal (that is, you cannot elect to receive part of your payments
as a single sum payment with the remainder paid in monthly annuity payments).
SECTION 1.22 PLAN. The term "Plan" means a program established by an Employer
for the purchase of Annuities on behalf of employees. The Employer shall be the
"Plan Administrator" within the meaning of Section 414(g) of the Code and
applicable Treasury Regulations.
SECTION 1.23 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P.O. Box 2996, G.P.O., New York, New York 10116, or
such other location as we shall designate by advance written notice to the
Employer, or the Plan's Trustee, as applicable, and to you.
SECTION 1.24 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain the retirement age as shown on page 3 of this Contract. Before the
Retirement Date you may elect to change the Retirement Date to another
Retirement Date, which may be any date after the filing of the election (other
than the 29th, 30th, or 31st day of any month), either initially or by later
change, must be in accordance with the terms of the Plan. No Retirement Date
shall be later than the date of your attainment of age 70 and 6 months. Any
election for such change must be made in writing by you and shall not take
effect until received by us at our Processing Office.
SECTION 1.25 SEPARATE ACCOUNT. The term "Separate Account" means Separate
Account A which is organized as a unit investment trust (a type of investment
company). We have established the Separate Account and it is maintained in
accordance with the laws of New York State. Realized and unrealized gains and
losses from the assets of the Separate Account are credited to or charged
against it without regard to our other income, gains or losses. Assets are put
in the Separate Account to support this Contract and other variable annuity
contracts. Assets may be put in the Separate Account for other purposes, but not
to support contracts or policies other than variable annuities and variable life
insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these Contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
the Trust. We reserve the right to change the designated trust or investment
company or to add designated trusts or investment companies. The Investment
Divisions available are the Stock Division, the Money Market Division, the
Balanced Division and the Aggressive Stock Division. The Guaranteed Interest
Division is not a party of the Separate Account, but rather is an asset of our
General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio of
the securities in which an Investment Division is invested to materially affect
the Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any other
form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to, or
remove Investment Divisions (or sub-divisions of Investment Divisions)
from the Separate Account (the term "Investment Division" in this Contract
shall then refer to any other Investment Division in which the asset of a
Class of Contracts to which this Contract belongs, were placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
No. 92TSUA Page 6
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(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for any applicable
tax charges) at a rate not to exceed 1.49% per year for the Stock, Money Market
and Balanced Divisions, and 1.34% per year for the Aggressive Stock Division,
for financial accounting, death benefits, mortality risk, expenses and expense
risk. The charge shall be made in accordance with Subsection (c) of the Net
Investment Factor provision in Section 1.25. The relative proportion of these
charges may be modified. The daily charge, plus the investment advisory fee
charges and direct operating expense charges of the Trust shall not exceed a
total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract. The maximum rate may not be altered
without your approval.
SECTION 1.26 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share value
reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
any amounts allocated to or withdrawn for that Valuation period).
(c) is the daily asset charge for the expenses of this Contract, times the
number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where your Contributions are invested and which is used in
determining the amount you have in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first Contribution was put into the Stock
Division, the Annuity Account Value was $1.26 and $1.52 for contracts with
Assumed Base Rates of Net Investment Return of 5% and 3.5% a year, respectively.
The Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit
Value for the immediately preceding Valuation Period multiplied by the Adjusted
Net Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The Average Annuity Unit Value for a calendar month
is equal to the average of the Annuity Unit Values for all Valuation Periods
ending in such month.
SECTION 1.27 TRANSACTION DATE. The Transaction Date is the business day we
receive a Contribution or a written contract transaction request providing the
information we need at the Processing Office. In the case of a transfer request
initiated through the use of a touch tone telephone as described in Section
2.05, the Transaction Date is the business day the telephone transaction is
received.
SECTION 1.28 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
No. 92 TSUA Page 7
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PART II-ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. The Employer is to make Contributions, from time to
time on such dates and in such amounts as determined by the Employer pursuant to
the terms of the Plan or Agreement. You are to specify the amount to be
allocated to each Division.
Each Contribution received by us with respect to you will, before its allocation
under this Contract, be reduced by the amount of any applicable tax charge, as
determined by us.
Pursuant to the terms of the Plan, if applicable, you may, with our agreement,
(i) transfer to this Contract any amount held under a contract or account that
meets the requirements of Section 403(b) of the Code ("Transferred Funds"), or
(ii) roll over contributions from a contract or account that meets the
requirements of Section 403(b) of the Code, or from a conduit individual
retirement arrangement described in Section 408(d)(3)(A)(iii) of the Code. If
you do not provide to us at the time of such transfer as described in (i) above,
as to what portion, if any, of the amounts of the Transferred Funds which are
exempt from the distribution restrictions described in Section 2.10, and the
minimum distribution rules described in Section 3.05, we will treat all such
amounts as being subject to such restrictions. Any Transferred Funds from a
contract not issued by us will, before allocation under this Contract, be
reduced by the amount of any applicable tax charge, as determined by us.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to or withdrawn or transferred from an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing said amount by
the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units you have in an
Investment Division on any date is equal to (i) the sum of any Accumulation
Units that have been allocated pursuant to Section 2.04 minus (ii) the sum of
any Accumulation Units that have been withdrawn pursuant to Sections 2.07, 2.08
or 2.13, or transferred from the Investment Division pursuant to Section 2.05.
The amount you have in an Investment Division on any date is equal to the
product of (i) the number of Accumulation Units in the Investment Division on
that date, and (ii) the Accumulation Unit Value for the Investment Division for
the Valuation Period which includes that date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) your election and commencement of annuity benefits pursuant to
Section 3.03, (ii) receipt of due proof of your death, or (iii) Termination of
this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts. The amount in the
Guaranteed Interest Division at any time is equal to the sum of all amounts that
have been allocated to the Guaranteed Interest Division pursuant to Section 2.04
or 2.13, plus the amount of any interest accrued but not allocated, less the sum
of all amounts that have been withdrawn from the Guaranteed Interest Division
pursuant to Section 2.07, 2.08 or 2.13 or transferred from the Guaranteed
Interest Division, pursuant to Section 2.05. Interest is allocated to the
Guaranteed Interest Division on a Transaction Date pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under the terms of this
Contract terminates on the earliest of (i) election and commencement of Annuity
Benefits pursuant to Section 3.03, (ii) receipt of due proof of your death, and
(iii) Termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon Termination of this Contract, pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.12.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request or through
the use of a touch tone telephone, transfer all of part of the amount you have
in a Division to one or more of the Divisions as follows: (i) amounts in the
Guaranteed Interest Division, Stock Division, Balanced Division and Aggressive
Stock Division may be transferred among such Divisions; (2) amounts in the Money
Market Division may be transferred to other Divisions. Written authorization for
touch tone telephone initiated transfers is only required when authorization for
telephone transfers is requested. Upon advance written notice to you, we reserve
the right to discontinue the acceptance of transfer requests through the use of
a touch tone telephone. All transfers will be effective on the Trans-
No. 92TSUA Page 8
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action Date and will be subject to our rules in effect at the time of transfer.
With respect to the Investment Division, the transfer will be made at the
Accumulation Unit Value next computed after the Transfer Date. No transfers are
permitted to the Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. Subject to any restrictions under the
terms of the Plan, including, for Plans subject to Title I of ERISA, if
applicable, the spousal consent rules set forth in Section 3.06, you may elect,
by written notice, to terminate this Contract. In addition, termination of this
Contract is subject to the restrictions on distributions set forth in Section
2.10 of this Contract. We will determine the Cash Value as of the Transaction
Date we receive your written election.
The payment of such Cash Value to you may be deferred by us in accordance with
the provisions of Section 4.07.
Subject to the terms of the Plan, and the restrictions on distributions set
forth in Section 2.10, we reserve the right to pay the Annuity Account Value
under this Contract and terminate this Contract. This right may be exercised
only if both (i) you made no Contributions during the last three completed
Contract Years, and the Annuity Account Value is less than $500, or (ii) a
partial withdrawal is made that would result in your Annuity Account Value
falling below $500. We also reserve the right to terminate this Contract if no
Contributions have been made within 120 months of the Contract Date shown on
page 3 of this Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions and the Annuity Account Value shall be zero. We will
be released from any and all liability for payments with respect to the
Contributions from which the Annuity Account Value arose.
If this Contract is terminated, surrendered or exchanged prior to your
Retirement Date, any applicable tax charges we have paid may be deducted. If we
have previously deducted charges for applicable taxes from Contributions
pursuant to Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
your Contract.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions under
the terms of the Plan, and the restrictions on distributions set forth in
Section 2.10, you may elect, by written notice to us, to make a partial
withdrawal from the Divisions. For Plans subject to Title I of ERISA, partial
withdrawals may be subject to the spousal consent rules, if applicable, set
forth in Section 3.06.
Following receipt of your written notice, we will pay the lesser of the Cash
Value, or the amount of partial withdrawal requested to the person entitled to
receive such payment as you designate to us in writing. The amount paid plus any
withdrawal charge applicable pursuant to Section 2.08 will be withdrawn from the
amounts you have in the Divisions. Unless instructed otherwise, the amount
withdrawn (including any withdrawal charge) will be allocated among the
Divisions in proportion to the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300,
or where the request violates the provisions of Sections 2.07 or 3.06. If a
withdrawal made under this Section would result in an Annuity Account Value of
less than $500, we will so advise you and reserve the right to pay the Annuity
Account Value to you and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.09 or (b) the Cash Value is equal to the Annuity
Account Value, pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount, in proportion to the amount you have
in them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
0% thereafter
of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
No. 92TSUA Page 9
<PAGE>
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the Current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior partial withdrawal
charges made pursuant to this Section.
However, notwithstanding the above, if your are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to your Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means if you
have completed three Contract Years or attained age 59 and six months an amount
equal to the excess, if any, of (i) 10% of the sum of the Annuity Account Value
on the Transaction Date over (ii) cumulative prior withdrawals made pursuant to
Section 2.07 in the current Contract Year. If you have not completed three
Contract years or attained age 59 and six months, the Free Corridor Amount is
zero.
SECTION 2.10 RESTRICTIONS ON DISTRIBUTIONS. Notwithstanding anything in this
Contract to the contrary, payments of Cash Value pursuant to the termination of
this Contract under Section 2.06, partial withdrawals under Section 2.07, death
benefits under Section 2.12, or Annuity Benefits under Section 3.03 may be
limited as provided in Section 403(b)(11) of the Code and in this Section, to
the extent they are attributable to Elective Deferral Contributions made to this
Contract after December 31, 1988 and earnings credited after December 31, 1988
on Elective Deferral Contributions made before and after December 31, 1988
(collectively, "Restricted Amounts").
Distributions of Restricted Amounts may not be made until you attain age 59
years and six months, separate from service, die, or become disabled (within the
meaning of Section 72(m)(7) of the Code). Distributions of Elective Deferral
Contributions made after December 31, 1988 - (but not any earnings credited
after December 31, 1988 attributable to Elective Deferral Contributions made
before or after December 31, 1988) may also be made in the case of hardship
(within the meaning of Section 403(b)(11) of the Code and applicable Treasury
Regulations). If you request payment of Restricted Amounts on the grounds of
disability or hardship you must furnish to us proof of such disability or
hardship as may be required by the Plan, the Code, and applicable Treasury
Regulations in a form satisfactory to us.
SECTION 2.11 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $25,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts that you have in
the Divisions.
If the Annuity Account Value is less than $25,000, on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03,
or (b) the date of Termination of this Contract pursuant to Section 2.06 or
2.12, we will prorate the Annual Administrative Charge applicable to the
completed portion of the Current Contract Year and withdraw such amount in lieu
of the Annual Administrative Charge described in this Section for the applicable
part of that Contract Year.
If the Annuity Account Value is $25,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
SECTION 2.12 DEATH BENEFIT. Upon receipt of due proof of your death , we will
pay to the beneficiary designated to receive such payment, pursuant to Section
4.04 of this Contract, the amount of death benefit payable. The amount of the
death benefit is equal to the greater of (i) the Annuity Account Value and (ii)
the minimum death benefit. Such minimum death benefit is the sum of all
Contributions made pursuant to Section 2.01 (before reduction for any applicable
tax charge) less any withdrawals made pursuant to Section 2.07. Any such
withdrawal will reduce the minimum death benefit (as adjusted by any previous
such withdrawal) by an amount which is in the same proportion as the amount that
was withdrawn is to the Annuity Account Value. If, in accordance with the
provisions of Section 2.01, the Cash Value of another Annuity Contract issued by
us, or one of our affiliated or subsidiary Life Insurance Companies, which
provides for a death benefit before retirement is equal to the greater of the
contract Cash Value or alternate amount based on premiums paid or Contributions
made under the Annuity Contract, is transferred to this Contract, such Cash
Value or an alternative amount as of the date of transfer, will be included in
the "sum of all Contributions" in lieu of the amount of Cash Value transferred
for purposes of the death benefit under this Contract.
No. 92TSUA Page 10
<PAGE>
We will pay the death benefit to the beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to the
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit, for Plans
subject to Title I of ERISA.
Distributions pursuant to this Section are subject to the terms of the Plan and
the Spousal Consent Rules set forth in Section 3.06 for Plans subject to Title I
of ERISA.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value shall be zero. We will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Account Value arose.
- -------------------------------------------------------------------------------
PART III-ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under this Contract with respect to a payee is the amount provided pursuant to
Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of net
investment return referred to in Section 1.26 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.25, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounting, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the terms of this Contract with respect to a payee is the
monthly amount provided pursuant to the fifth paragraph of Section 3.04. The
amount of the fourth and each subsequent payment under a Variable Annuity
Benefit will be equal to the number of Annuity Units with respect to such
benefit, multiplied by the Average Annuity Unit Value for the second calendar
month immediately preceding the due date of the payment. The number of Annuity
Units with respect to a benefit is the number determined by dividing the amount
of the first monthly payment under such benefit by the Annuity Unit Value for
the Valuation Period which includes the due date of the first monthly payment.
As described in Section 3.05, we will notify the payee how each Variable Annuity
Benefit is determined.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of your
Retirement Date, provided you are then living, the Annuity Account Value shall
be applied to provide the Normal Form of Annuity Benefit, unless you elect (i)
to receive the Cash Value in a single sum or (ii) to apply the Annuity Account
Value, or Cash Value, whichever is applicable pursuant to the first paragraph of
Section 3.04, to provide an Annuity Benefit on any other annuity form offered by
us, or one of our affiliated or subsidiary life insurance companies as elected
by you, or (iii) to take partial withdrawals in amounts and at times as required
by the Code, pursuant to Sections 2.07 and 3.05, subject to our rules then in
effect and any other applicable requirements under the Code.
We will provide notice and election forms to you not more than six months before
your Retirement Date.
If you elect to terminate this Contract, prior to the Retirement Date, pursuant
to Section 2.06, an election may be made to receive an Annuity Benefit in lieu
of the Cash Value, unless restricted by the Plan.
We will have the right to require that you furnish pertinent information to
provide an Annuity Benefit, and we will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies. If the issuance of this Contract is pursuant to a Plan
subject to Title I of ERISA, the rules set forth in Section 3.06 shall apply to
your election and the commencement of annuity benefits.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect, pursuant to the first or
third paragraph of Section 3.03, to receive an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the payments under the annuity form involves life
contingencies, or (ii) the Cash Value if the Annuity Form elected does not
involve life contingencies.
No. 92TSUA Page 11
<PAGE>
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charge from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to your Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below, or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your Contract will be governed by our
supplementary contract then in effect.
The amount to be applied to provide an Annuity Benefit will, in addition to any
tax charge reduction, be reduced by an administrative charge. The amount of such
charge will be determined from time to time in accordance with our general
practices applicable on a uniform basis to all contracts of the same type as
this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated, on either the Life Annuity Form or the Joint and
Survivor Life Annuity Form (with 100% of the amount of your payment continued to
your spouse). The amount of income provided under the Fixed Annuity Benefit
payable on the Life Annuity Form and Joint and Survivor Life Annuity Mortality
Form, are based on 3.5% interest and the 1983 Individual Annuity Mortality Table
"a" adjusted to a unisex basis based on a 50-50 split of males and females, at
age zero. The amount of income initially provided under the Variable Annuity
Benefit payable on the Life Annuity Form and Joint and Survivor Life Annuity
Form are based on a 50-50 split of males and females, at age zero and an Assumed
Base Rate of Net Investment Return of 3.5% or 5%, whichever applies pursuant to
Section 1.26.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us based on 3.5% interest and the 1983 Individual Annuity
Mortality Table "a" adjusted to a unisex basis based on a 50-50 split of males
and females, at age zero, if such annuity form provides for a Fixed Annuity
Benefit, and on the projected 1983 Basic Table "a" adjusted to a unisex basis
based on a 50-50 split of males and females, at age zero and an Assumed Base
Rate of Net Investment Income Return of 3.5% or 5%, whichever applies pursuant
to Section 1.26, if such annuity form provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Distributions attributed to
Contributions of Transferred Funds pursuant to Section 2.01 (where you have
provided to us written evidence of such balance as of December 31, 1986) must
commence no later than age 75. Such distributions will be made in the normal
form of Annuity Benefit, unless you elect to take payments in a single sum or
another form of Annuity Benefit then offered by us.
Your entire interest in this Contract attributable to all other Contributions
made, and earnings credited thereon must be distributed, or begin to be
distributed no later than the first day of April following the calendar year in
which you attain age 70 and 6 months ("Required Beginning Date"). Your entire
interest may be distributed, as you elect, over (a) your life, or the lives of
you and your designated beneficiary, or (b) a period certain not extending
beyond your life expectancy, or the joint and last survivor expectancy of you
and your designated beneficiary. Distributions must be made in periodic payments
at intervals of no longer than one year. In addition, payments must be either
nonincreasing or they may increase only as provided in Q & A F-3 of Section
1.401(a)(9)-1 of the proposed Treasury Regulations, or any successor Regulation
thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 403(b)(10) and 401(a)(9) of the Code, including the
incidental death benefit requirements of Section 401(a)(9)(G) of the Code, and
applicable Treasury Regulations, including the minimum distribution incidental
benefit requirement of Section 1.401(a)(9)-2 of the Proposed Treasury
Regulations, or any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9 unless
you otherwise elect prior to the time distributions are required to begin, those
life expectancies shall be recalculated annually. Such election shall be
irrevocable and shall apply to all subsequent years. The life expectancy of a
non-spouse beneficiary may not be recalculated. Instead, life expectancy will be
calculated using the attained age of such beneficiary during the calendar year
in which you attain age 70 and 6 months and payments for subsequent years shall
be calculated based on such life expectancy reduced by one for each calendar
year which has elapsed since the calendar year life expectancy was first
calculated.
If you die after distribution of your interest in this Contract has begun, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to your death.
If you die before distribution of your interest begins, distribution of your
entire interest shall be completed no later than December 31 of the calendar
year containing the fifth anniversary of your death, except to the extent that
an election is made to receive death benefit distributions in accordance with
(1) or (2) below:
No. 92TSUA Page 12
<PAGE>
(1) If your interest is payable to a designated beneficiary, then your entire
interest may be distributed over the life of, or over a period certain not
greater than the life expectancy of, the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar year
immediately following the calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date
distributions are required to begin in accordance with (1) above shall not
be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of your death or (B) December 31 of
the calendar year in which you would have attained age 70 and 6 months.
For purposes of determining the "period certain" referred to in the immediately
preceding paragraph, life expectancy is computed by use of the expected return
multiples in Tables V and VI of Treasury Regulation Section 1.72-9. For purposes
of distributions beginning after your death, unless otherwise elected by the
surviving spouse by the time distributions are required to begin, life
expectancies shall be recalculated annually. Such election shall be irrevocable
by the surviving spouse and shall apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies shall be calculated using
the attained age of such beneficiary during the calendar year in which
distributions are required to begin pursuant to this Section, and payments for
any subsequent calendar year shall be calculated based on life expectancy
reduced by one for each calendar year which has elapsed since the calendar year
life expectancy was first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under this Contract was based on information that is
subsequently found to be incorrect, your benefit will not be invalidated, but an
adjustment on the basis of the correct information will be made in the amount of
the benefit payments, or any amount used to provide the benefit, or any
combination thereof. Overpayments by us will be charged against and
underpayments will be added to any payments thereafter falling due under the
terms of this Contract with respect to the payee, affecting as many such
payments as are necessary to correct the overpayment or underpayment. Our
liability, with respect to a payee, is limited to the correct information and
the actual amounts used to provide the benefits then in force with respect to
the payee under this Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under this Contract is physically or mentally incompetent to receive
such payment or is a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments (in the case of a minor, at a rate not exceeding $200 a month) to
such other person or institution, and will thereupon be fully discharged from
all liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Pursuant to Section 3.03, upon your election, pursuant to Section 3.03 of an
annuity form providing payments for a period certain, you may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The Payee may designate (with the right to change such designation and without
the concurrence of any other person) a payee to receive any payments or
installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's estate in
accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments. The commuted value of any such remaining payments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
No. 92TSUA Page 13
<PAGE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT
AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- ---------------------------------------------------------------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1000 of Annuity Account Value)
- -------------------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED BASE
RATE OF NET INVESTMENT RETURN IS:
Age 3.5% 5.0%
- ----------- ---------- --------- ---------- ----------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
- ----------- ---------- --------- ---------- ----------
We will notify the payee, with respect to each payment under a Variable Annuity
Benefit, the number of Annuity Units and the Average Annuity Unit Value used in
determining the amount of each variable payment. Such notice will be mailed with
each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS. If this Contract is
issued pursuant to a Plan subject to Title I of ERISA, then the provisions of
this Section shall supersede any contrary provisions in this Contract. If you
are married, your interest in the Contract shall be paid in the Normal Form
joint and survivor annuity, and if you are unmarried, your interest shall be
paid in the Normal Form life annuity, unless you elect otherwise as described in
this Section. If you are married and die before payment of your interest has
commenced, your interest shall be paid to your surviving spouse in the form of a
life annuity, unless at the time of your death there was a contrary election
made pursuant to this Section. The foregoing notwithstanding, your surviving
spouse may elect, before payment is to commence, to have payment made in any
form permitted under the terms of this Contract.
You may elect, at any time within the 90 consecutive day period before the first
day of the first period for which your interest is paid as an annuity or in any
other form, not to have your interest paid in the Normal Form, in which case it
shall be paid in any other form elected under the terms of this Contract. If
such interest is to be paid to your spouse upon your death, you may elect,
during the period beginning on the first day of the plan year of the Plan in
which you attain age 35 (or, if you separate from service prior to that plan
year, beginning on the date of separation) and ending with your death, for a
beneficiary other than your spouse to receive payment of the value of your
interest. In addition, if you will not yet attain age 35 by the end of any
current plan year, you may make a special qualified election to designate a
beneficiary other than your spouse to receive payment of the value of your
interest, which special qualified election shall be effective for the period
beginning on the date of such election and ending on the first day of the plan
year in which you will attain age 35. Amounts payable in accordance with this
Section will be automatically reinstated as of the first day of the plan year in
which you attain age 35 unless a new election designating a beneficiary other
than the spouse is made in accordance with the requirements of this Section.
Any election described in the foregoing paragraph must be consented to by your
spouse in writing before a notary or a representative of the Plan unless you can
prove that there is no spouse or that the spouse cannot be located. Also, if you
have become legally separated from your spouse or have been abandoned (within
the meaning of local law) and have a court order to such effect, spousal consent
is not required unless a qualified domestic relations order provides otherwise.
Your election must designate a specific beneficiary (including any class of
beneficiaries or any contingent beneficiaries) that may not be changed without
further consent of the spouse, unless the spouse's consent expressly permits
designation by you without further consent of the spouse. The spouse's consent
under
No. 92TSUA Page 14
<PAGE>
this section shall acknowledge the effect of the election. In addition, the
spouse's consent (or establishment that the consent of the spouse may not be
obtained) shall only be valid with respect to such spouse. Your waiver of the
Normal Form joint and survivor annuity shall not be effective unless the
election designates a form of benefit payment which may not be changed without
spousal consent (or the spouse expressly permits designations by you without any
further spousal consent). A consent that permits designations by you without any
requirement of further consent by such spouse must acknowledge that the spouse
has the right to limit consent to a specific beneficiary and a specific form of
benefit where applicable, and that the spouse voluntarily elects to relinquish
either or both of such rights. If you make an election under this Section, you
may revoke that election, without spousal consent, at any time before the first
day of the first period for which an amount is paid as an annuity or in any
other form.
The provisions requiring spousal consent in this Section shall also apply with
regard to your election to terminate this Contract or make partial withdrawals
pursuant to Sections 2.06 and 2.07, and with respect to a beneficiary
designation set forth in Section 4.04. A spouse's written consent, witnessed by
a representative of the Plan or a notary public, must be given on a form
acceptable to the Employer and us, within the 90 consecutive day period prior to
any such payment or withdrawal, or beneficiary designation, unless you can show
that you have no spouse or that the spouse cannot be located.
If the Annuity Account Value applied to provide the spousal benefits on the date
payment is to commence is in the aggregate less than $3,500, we may choose to
make payment in a single sum rather than in the form of a Qualified Joint and
Survivor Annuity or Life Annuity as described herein. Upon any payment made
pursuant to this Section, we will be released from any and all liability for
payment with respect to the Contributions made for you.
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PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the terms of this Contract alone will govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor many any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend the terms of
this Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the terms of this Contract to reflect changes in the
Code, or applicable Treasury Regulations, or in regulations or published rulings
of the Internal Revenue Service so that this Contract will continue to be an
Annuity.
SECTION 4.03 NONTRANSFERABILITY AND ASSIGNMENTS. Your entire interest under this
Contract is nonforfeitable. No interest of yours (or of a beneficiary) under
this Contract may be transferred to any person other than us upon the surrender
of this Contract. Except as permitted under applicable law, no right or interest
of you or any other payee or beneficiary in this Contract shall be (a)
assignable; (b) subject to any lien; or (c) liable for, or subject to, any
obligation or liability of any person. The preceding sentence shall not apply to
any assignment, transfer or attachment pursuant to a qualified domestic
relations order (as defined in Section 414(p) of the Code).
SECTION 4.04 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any death benefit
payable pursuant to Section 2.12. You may change such designation from time to
time during your lifetime, and while this Contract is in force. Any such
designation or change must be made by written notice in a form satisfactory to
us. A change will, upon receipt at the Processing Office, take effect as of the
time the written notice was signed, whether or not you are living on the date of
receipt, but without further liability as to any payment or other settlement
made by us before receipt of such change. Beneficiary designations are subject
to the rules of Section 3.06 if the Contract is issued pursuant to a Plan
subject to Title I of ERISA.
Unless otherwise specified in the designation, if you have designated two or
more persons as beneficiary, the beneficiary will be the designated person or
persons who survive you, and if more than one survive, they will share equally.
Any part of a death benefit payable pursuant to Section 2.12 for which there is
no designated beneficiary living at the time of your death, will be payable in a
single sum to your children who survive you, in equal shares, or should none
survive, then to your estate.
No. 92TSUA Page 15
<PAGE>
If you elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity previously elected by you, with respect to the beneficiary,
subject to our rules then in effect. If, at your death, there is no election in
effect to apply the single sum death benefit to provide an Annuity Benefit, the
beneficiary may make such an election. Any such election must meet the minimum
distribution requirements under the Code, as described in Section 3.05.
SECTION 4.05 DISQUALIFICATION OF PLAN OR CONTRACT. In the event that the Plan
fails to qualify as a Plan under Section 403(b) of the Code and applicable
Treasury Regulations, we reserve the right, upon receiving notice of such fact,
to transfer the Annuity Account Value under this Contract to another annuity
contract issued by us, an affiliate subsidiary, on your life, or to terminate
this Contract and pay to you the Annuity Account Value less deduction for
applicable taxes, solely at our option.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to the Employer, we
reserve the right at our sole discretion to limit Contributions under this
Contract.
SECTION 4.07 DEFERMENT. Application of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payment in order to protect
persons with interests in the Investment Divisions. We can defer payment of any
portion of your Annuity Account Value in the Guaranteed Interest Division for up
to six months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year we will furnish you
with a notice showing the following:
(1) the amount you have in the Guaranteed Interest Division,
(2) the total number of Accumulation Units you have in the Stock Division,
Balanced Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulation Unit Values,
(4) the amount you have in the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division,
(5) the Cash Value, and
(6) the amount of death benefit payable with respect to you.
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.09 AGE. If your age has been misstated, any benefits will be those
which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
No. 92TSUA Page 16
<PAGE>
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APPLICATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
PROCESSING OFFICE: INDIVIDUAL ANNUITY CENTER, P.O. BOX 2996,
NEW YORK, NEW YORK 10116-2996
QUALIFIED VARIABLE ANNUITY CONTRACT APPLICATION FOR:
EQUITABLE'S INDIVIDUAL QUALIFIED DEFERRED VARIABLE ANNUITY
- --------------------------------------------------------------------------------
TYPE OF PURCHASE (Complete One Plan Only)
A. |_| TSA PUBLIC SCHOOL (GV-PS-I)
B. |_| TSA 501(C)(3) ORGANIZATION (GV-501-I)
C. |X| TSA University (GV-PS-U-I)
D. |_| IRA Individual (Including IRA to IRA transfers) (GV-IRA 4971)
E. |_| IRA Unit Billed (Including IRA to IRA transfers) (GV-IRA 4971)
F. |_| IRA QUALIFIED PLAN ROLLOVER-- (QP IRA) (Distribution from a Qualified
Plan) (GV-IRA 4971-71)
G. |_| EDC (Public Employee Deferred Compensation) (GV-EDC 4991)
H. |_| EDC (Tax Exempt Organization) (GV-EDC 4991-SU-080)
I. |_| SEP (Simplified Employee Pension) (GV-SEP 4981)
J. |_| SARSEP (Salary Reduction SEP) _________________________________________
K. |_| CORPORATE TRUSTEED (GV-CORP 4941-41)
L. |_| KEOGH/HR-10 TRUSTEE (GV HR-10 4911-11)
(trustee owned)
M. |_| KEOGH/HR-10 (GV-HR-10 4911)
(not trustee owned) (issued to existing units only)
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DO NOT COMPLETE THIS SECTION IF 1.D OR 1.F CHECKED ABOVE
2. EMPLOYER/PLAN NAME
|A|B|C|_|C|O|M|P|A|N|Y|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
3. |_| EXISTING UNIT NO. |_|_|_|_|_|_|-|_|_|_|
|x| NEW UNIT |0|0|0|1|2|3|-|4|5|6|
(FOR NEW UNIT BILLED IRA, EDC, TSA, SEP, SARSEP, OR TRUSTEED PLANS. FORM
983-135B IS REQUIRED)
- --------------------------------------------------------------------------------
4. PROPOSED ANNUITANT Print name to appear on Contract.
|J|O|H|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|D|O|E|_|_|_|_|_|
FIRST MIDDLE INITIAL LAST
A. |X| MR. |_| MRS. |_| MS. |_| OTHER ____
B. Date of Birth: Year 1954 Month JANUARY Day 27
---- ------- --
C. Age at Nearest Birthday: 38 D. |X| Male |_| Female
----
E. Annuitant's Mailing Address: F. State of Residence: N.J.
----
No., St. |1|7|_|E|L|M|_|S|T|R|E|E|T|_|_|_|_|_|_|_|_|_|_|_|_|
City |A|N|Y|T|O|W|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |U|S| Zip Code |0|2|0|0|0|-|0|0|0|1|
G. Telephone Number (101) 222 - 3456 |X| Home |_| Work
H. Social Security No. (Required): |1|2|3|-|4|5|-|6|7|8|9|
I. Are you associated with or employed by a member of National
Association of Securities Dealers, Inc.(NASD)? |_| Yes |X| No
5. OWNER (Print Name) -- If Trusteed or EDC Plan Print Name of Owner, for all
other Markets Print Name of Annuitant.
JOHN DOE
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a. Title ____________________________________________________________________
6. RETIREMENT AGE 65
---------------------------------------------------------------
7. BENEFICIARY -- Include FULL NAME and RELATIONSHIP to Annuitant. (For Death
Benefit upon Annuitant's death before Retirement Date.) (BENEFICIARY MUST
BE THE OWNER FOR EDC PURCHASES AND FOR MOST TRUSTEED PLANS.)
JANE DOE - WIFE
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8. CONTRIBUTION ALLOCATION
Guaranteed Interest Division 20%
-----
Stock Division 20%
-----
Money Market Division 20%
-----
Balanced Division 20%
-----
Aggressive Stock Division 20%
-----
(PERCENTAGES IN WHOLE NUMBERS) Total 100%
9. CONTRIBUTIONS (NOT REQUIRED FOR 1.F)
A. Reminder Notice (Billing) Required |_| Yes |X| No
IF YES, COMPLETE B-C-D-E
B. REMINDER DATE Required for Individual IRA or otherwise must agree
with existing unit or attached 983-135B. MONTH _________ DAY __________
C. REMINDER FREQUENCY
|_| Annual |_| Semi-Annual
|_| Quarterly |_| Monthly
Available for TSA, EDC, SARSEP AND CORPORATE TRUSTEED AND UNIT BILLED IRA
ONLY:
|_| Semi-Monthly |_| Bi-Weekly
D. REMINDER AMOUNT $_________________________________
E. BILLING MONTHS TO BE EXCLUDED - TSA ONLY
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
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10.EXPECTED FIRST CONTRACT YEAR
Contribution. $1000
----------------------------------------------------------------
IF AN ADVANCED BILLING AND/OR CONTRACT DATE ARE REQUESTED, COMPLETE #9B
AND #12.
- --------------------------------------------------------------------------------
(FOR PROCESSING OFFICE USE)
Unit Name ___________________________ Reminder Date ___________________________
Cert. or App# _______________________ Amendment Required_______________________
EDC Emp. Add. _______________________ Emp. Fed. ID# ___________________________
Frequency ___________________________ Contract Date ___________________________
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Receipt Date Batch # Inquiry # Processor
- --------------------------------------------------------------------------------
180-1000
<PAGE>
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10. Did you receive the Separate Account Prospectus? |X| Yes |_| No
Date shown on Prospectus January 1, 1992
----------------------------------------------------
Date of any supplement to Prospectus _______________________________________
11. Items (a) through (f) are to be answered by the annuitant. We are
required by the NASD to ask these questions.
(a) Name of Employer: ABC Company
------------------------------------------------------
(b) Address of Employer:
10 Main Street
---------------------------------------------------------------------------
Anytown, NJ
---------------------------------------------------------------------------
(c) Occupation Sales
-------------------------------------------------------------
(d) Assuming the contract applied for will be issued, will any existing
insurance or annuity be replaced or changed (or has it been)?
| | Yes |X| No
(e) Estimated Family Annual Income $100,000
----------------------------------------
(f) Estimated Net Worth $250,000
-----------------------------------------------------
(g) Investment Objective: |_| Income |X| Income & Growth
|_| Aggressive Growth |_| Growth |_| Safety of Principal
12. SPECIAL INSTRUCTIONS
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
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13. Amount paid with this form: $1000
(If a check is submitted with this request, no advanced Contract Date is
permitted.) BACKDATING IS NOT PERMITTED.
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the certificate is not issued. The Contract Date
will be the date of receipt by Equitable of this application, properly signed
and completed, and Contribution at Equitable's Processing Office.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGREEMENT
All information and statements furnished in this application are true and
complete to the best of my knowledge and belief. I understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations.
IT IS UNDERSTOOD THAT THE ANNUITY ACCOUNT VALUE ATTRIBUTABLE TO ALLOCATIONS TO
THE INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT AND VARIABLE ANNUITY BENEFIT
PAYMENTS MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
UNDER THE PENALTIES OF PERJURY I (WE) CERTIFY THAT THE SOCIAL SECURITY NUMBER(S)
OR TAX IDENTIFICATION NUMBER(S) PROVIDED ON THIS FORM IS (ARE) TRUE, CORRECT AND
COMPLETE.
- --------------------------------------------------------------------------------
LAWS IN YOUR STATE MAY MAKE IT A CRIME TO FILL OUT AN INSURANCE OR ANNUITY
APPLICATION WITH INFORMATION YOU KNOW IS FALSE OR TO LEAVE OUT MATERIAL FACTS.
- --------------------------------------------------------------------------------
X__________________________________ Date_______ City __________ State __________
Signature of Annuitant
X__________________________________ Date_______ City __________ State __________
Signature of Authorized Individual (REQUIRED FOR EDC AND
TRUSTEED) OR OWNER
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGENT'S SECTION
Will any existing insurance or annuity be replaced or changed (or has it been),
assuming the Contract will be issued? | | Yes | | No
|_| I (we) certify that a prospectus for the Contract has been given to the
proposed Annuitant and that no written sales materials other than those approved
by Equitable have been used.
EQUI-VEST issues must adequately reflect the commission interest of all Agents
on previous contracts.
- --------------------------------------------------------------------------------
Print Agent's Name(s) Initial of Agent Agent Agency District Agent's
(Service Agent first) Last Name Number % Code Manager Code Signature
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FOR AGENCY COMPLIANCE FILE: INITIALS OF AGENCY EQS___ Date ___ District EQS ___
Date ____
- --------------------------------------------------------------------------------
(FOR ASU USE)
ASU Code and App. No. __________________________________________________________
ASU Rec'd. _____________________________________________________________________
Date to Proc. Off. ________________________________________________ Campaign |_|
Agent(s) shown above is Equity Qualified and is licensed in the state where the
request is signed. Above Agent information verified by ASM (Registered Rep)
- --------------------------------------------------------------------------------
Application reviewed by ________________________________________________________
- --------------------------------------------------------------------------------
180-1000
<PAGE>
Owner: [THE EQUITABLE LOGO]
Annuitant:
Contract Number:
Issue Date:
Contract Date:
Retirement Date:
- --------------------------------------------------------------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OP THE UNITED STATES
Processing Office: Individual Annuity Center, P O Box 2996,
New York, New York 10116-2996
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division of the Separate Account (referred
to in this Contract as the "Investment Divisions") or to the Guaranteed
Interest Division, in accordance with Sections 2.02, 2.03 and 2.04 or in
part to any one, as directed by you, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide the
Annuitant with an Annuity Benefit or a Cash Value benefit if the Annuitant
is then living, and
o TO PROVIDE the Annuitant with the other rights and benefits of this
Contract.
This is the entire Contract. In this Contract, "we", "our" and "us" mean the
Equitable Life Assurance Society of the United States. "You" and "your" mean the
Annuitant at the time a right is exercised by the Annuitant.
TEN DAYS TO EXAMINE CONTRACT -- may cancel this Contract by returning it to us
within ten days after receipt of it. Upon such cancellation, we will refund any
Contribution made to us on your behalf under this Contract, plus or minus any
investment gain or loss experienced in the Investment Divisions of the Separate
Account from the date such Contribution is allocated to such Investment Division
to the date we receive the returned Contract.
/S/Pauline Sherman /s/Edward D. Miller
Pauline Sherman, Vice President, Edward D. Miller
Secretary & Associate General Counsel President and Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.26 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF AN ANNUAL CHARGE NOT TO
EXCEED THE MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR
FINANCIAL ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK,
PLUS THE INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF
THE TRUST.
No. 92 TSUB
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
- --------------------------------------------------------------------------------
TABLE OF CONTENTS
DEFINITIONS Page
Section 1.00 - Agreement...............................4
1.01 - Annuitant...............................4
1.02 - Annuity.................................4
1.03 - Annuity Account Value...................4
1.04 - Annuity Benefit.........................4
1.05 - Cash Value..............................4
1.06 - Class of Contracts......................5
1.07 - Code....................................5
1.08 - Contract................................5
1.09 - Contract Date...........................5
1.10 - Contract Year...........................5
1.11 - Contribution............................5
1.12 - Divisions...............................5
1.13 - Elective Deferrals......................5
1.14 - Eligible Annuity Certain................5
1.15 - Employer................................5
1.16 - ERISA...................................5
1.17 - Guaranteed Interest Rate................5
1.18 - Joint and Survivor Life
Annuity Form...........................5
1.19 - Life Annuity Form.......................5
1.20 - Normal Form.............................5
1.21 - Period Certain Annuity .................6
1.22 - Plan....................................6
1.23 - Processing Office.......................6
1.24 - Retirement Date.........................6
1.25 - Separate Account........................6
1.26 - Separate Account
Definitions............................7
1.27 - Transaction Date .......................7
1.28 - Trust ..................................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions...........................8
2.02 - Separate Account
Investment Divisions...................8
2.03 - Guaranteed Interest
Division...............................8
2.04 - Allocation to Divisions.................8
2.05 - Transfers Among Divisions...............8
2.06 - Termination of this Contract............9
2.07 - Partial Withdrawals.....................9
2.08 - Charges for Partial
Withdrawals............................9
2.09 - Free Corridor Amount...................10
2.10 - Restrictions on Distributions..........10
2.11 - Annual Administrative Charge ..........10
2.12 - Death Benefit..........................10
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit .................11
3.02 - Variable Annuity Benefit...............11
3.03 - Election and Commencement
of Annuity Benefits....................11
3.04 - Amount of Annuity Benefits.............11
3.05 - Payment of Annuity Benefits ...........12
3.06 - Special Annuity and Spousal
Consent Provisions....................14
GENERAL PROVISIONS
Section 4.01 - Contract...............................15
4.02 - Statutory Compliance...................15
4.03 - Nontransferability and
Assignments...........................15
4.04 - Beneficiary ...........................15
4.05 - Disqualification of Plan
or Contract...........................16
4.06 - Future Contributions ..................16
4.07 - Deferment .............................16
4.08 - Annual Notice..........................16
4.09 - Age....................................16
No. 92 TSUB Page 2
<PAGE>
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PART I - DEFINITIONS
SECTION 1.00 AGREEMENT. The term "Agreement" means an agreement described in
Treasury Regulation Section 1.403(b)-l(b)(3) between an Employer and an employee
of the Employer, in which the Employer agrees to purchase an Annuity for the
employee. If Employer contributions to purchase the Annuity result from the
employee's agreement to take a reduction in future salary or forgo a future
salary increase, such Agreement is referred to as a "Salary Reduction Agreement"
within the meaning of Sections 402(g)(3)(C) and 3121(a)(5)D) of the Code.
SECTION 1.01 ANNUITANT. The term "Annuitant" means the owner of this Contract,
as shown on page 3 and on whose behalf this Contract has been purchased and is
maintained, and who exercises all rights under this Contract.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the terms of the Plan or Agreement, which contract meets the
requirements for qualification under Section 403(b) of the Code.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts that you have in the Guaranteed Interest Division and the
Investment Divisions of the Separate Account pursuant to Sections 2.02 and 2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.18, 1.19, 1.20, 3.01, and 3.02) refer to monthly payments
to be made under an Annuity Benefit. You may wish to have your Annuity Benefit
paid at other intervals, such as quarterly, semi-annually, or annually, instead
of monthly. You may elect this at the time you elect the Annuity Benefit form as
described in Section 3.03; in that event, all references in this Contract to
monthly payments will be deemed to mean payments at the frequency you elect,
subject to our rules at the time of election.
SECTION 1.05 CASH VALUE. The term "Cash Value" means the Annuity Account Value
less any applicable withdrawal charge determined as follows:
The withdrawal charge equals the lesser of (a) or (b) where
(a) equals
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
O% thereafter
of the excess of (i) the Annuity Account Value over (ii) the Free Corridor
Amount defined in Section 2.09; and
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior charges for partial
withdrawals made pursuant to Section 2.08.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
A withdrawal charge will not apply, which means the Cash Value will equal the
Annuity Account Value upon any of the following occurrences:
(i) your attainment of age 59 and 6 months, and your completion of at least
five Contract Years, or
(ii) you die and a distribution is made to your beneficiary, or
(iii) your attainment of age 55, your completion of at least five Contract Years
and the receipt by us of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase an
Eligible Annuity Certain, defined in Section 1.14, or
(iv) your completion of at least three Contract Years and the receipt by us of
a properly completed settlement election form providing for the
application of the Annuity Account Value to purchase a Period Certain
Annuity, defined in Section 1.21, where the certain period of such annuity
is at least ten years, or
(v) the receipt by us of a properly completed settlement election form
providing for the application of the Annuity Account Value to purchase a
Life Annuity distribution option, or
(vi) your attainment of age 55, your completion of at least five Contract
Years, and separation from service, or
(vii) your completion of at least twelve Contract Years.
No. 92 TSUB Page 4
<PAGE>
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same Calendar Year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, or
any corresponding provisions of prior or subsequent United States revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made to us
for you with respect to an Annuity purchased for you under the Plan. We are
under no obligation to accept any Contribution less than $20.00. Contributions
may be either Elective Deferrals or Employer Contributions pursuant to the Plan.
The Employer shall indicate to us the amount and type of each Contribution.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following Divisions described in this
Contract:
(a) the Guaranteed Interest Division, and
(b) the Investment Division of the Separate Account.
SECTION 1.13 ELECTIVE DEFERRALS. The term "Elective Deferrals" means
Contributions made pursuant to a Salary Reduction Agreement as defined in
Section 1.00.
SECTION 1.14 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us which extends beyond
your attainment of age 59 and 6 months and does not permit any prepayment of the
unpaid principal (that is, no withdrawal or single sum payment) prior to your
attainment of age 59 and 6 months.
SECTION 1.15 EMPLOYER. The term "Employer" means (i) an organization described
in Section 501(c)(3) of the Code which is exempt from Federal income tax under
Section 501(a) of the Code; or (ii) a State, political subdivision of a State,
or an agency or instrumentality of any one or more of the foregoing, in
connection with services performed by an employee for an educational
organization described in Section 170(b)(l)(A)(ii) of the Code.
SECTION 1.16 ERISA. The term ERISA means the Employee Retirement Income Security
Act as amended.
SECTION 1.17 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on page 3 of
this Contract. Section 2.03 describes the determination of the Rate to apply
thereafter.
SECTION 1.18 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected by you. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment due
before the death of the survivor.
SECTION 1.19 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us or one of our affiliated or subsidiary life insurance companies,
providing fixed monthly payments during the lifetime of the person upon whose
life such payments depend. The payments commence on the date as of which the
Life Annuity Form is purchased and terminate with the last payment due before
the death of such person.
SECTION 1.20 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means (i) if you have a living spouse at the Retirement Date, the
Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form with
such spouse as the contingent annuitant (with 100% of the monthly amount payable
to your spouse), and (ii) if you do not have a living spouse at the Retirement
Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
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SECTION 1.21 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us or one of our affiliated
or subsidiary life insurance companies, which does not permit any prepayment of
the unpaid principal (that is, you cannot elect to receive part of your payments
as a single sum payment with the remainder paid in monthly annuity payments).
SECTION 1.22 PLAN. The term "Plan" means a program established by an Employer
for the purchase of Annuities on behalf of employees. The Employer shall be the
"Plan Administrator" within the meaning of Section 414(g) of the Code and
applicable Treasury Regulations.
SECTION 1.23 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P O Box 2996, New York, New York 10116-2996, or such
other location as we shall designate by advance written notice to the Employer,
or the Plan's Trustee, as applicable, and to you.
SECTION 1.24 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain the retirement age as shown on page 3 of this Contract. Before the
Retirement Date you may elect to change the Retirement Date to another
Retirement Date, which may be any date after the filing of the election (other
than the 29th, 30th, or 31st day of any month), either initially or by later
change, must be in accordance with the terms of the Plan. No Retirement Date
shall be later than the date of your attainment of age 70 and 6 months. Any
election for such change must be made in writing by you and shall not take
effect until received by us at our Processing Office.
SECTION 1.25 SEPARATE ACCOUNT. The term "Separate Account" means Separate
Account A, which is organized as a unit investment trust (a type of investment
company). We have established the Separate Account and it is maintained in
accordance with the laws of New York State. Realized and unrealized gains and
losses from the assets of the Separate Account are credited to or charged
against it without regard to our other income, gains or losses. Assets are put
in the Separate Account to support this Contract and other variable annuity
contracts. Assets may be put in the Separate Account for other purposes, but not
to support contracts or policies other than variable annuities and variable life
insurance.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these Contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
the Trust. We reserve the right to change the designated trust or investment
company or to add designated trusts or investment companies. The Investment
Divisions available are the Stock Division, the Money Market Division, the
Balanced Division and the Aggressive Stock Division. The Guaranteed Interest
Division is not a part of the Separate Account, but rather is an asset of our
General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio of
the securities in which an Investment Division is invested to materially affect
the Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to
(i) cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any other
form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to, or
remove Investment Divisions (or sub-divisions of Investment Divisions)
from the Separate Account; (The term "Investment Division" in this
Contract shall then refer to any other Investment Division in which the
asset of a Class of Contracts to which this Contract belongs, were
placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
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If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, you will be notified of such exercise, as
required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for any applicable
tax charges) at a rate not to exceed 1.49% per year for the Stock, Money Market
and Balanced Divisions, and 1.34% per year for the Aggressive Stock Division,
for financial accounting, death benefits, mortality risk, expenses and expense
risk. The charge shall be made in accordance with Subsection (c) of the Net
Investment Factor provision in Section 1.26. The relative proportion of these
charges may be modified. The daily charge, plus the investment advisory fee
charges and direct operating expense charges of the Trust shall not exceed a
total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract. The maximum rate may not be altered
without your approval.
SECTION 1.26 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD: Each business day together with any preceding consecutive
non-business days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b), minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share value
reported to us by the Trust.
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
any amounts allocated to or withdrawn for that Valuation Period).
(c) is the daily asset charge for the expenses of this Contract, times the
number of calendar days in the Valuation Period.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where your Contributions are invested and which is used in
determining the amount you have in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first Contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for contracts with Assumed
Base Rates of Net Investment Return of 5% and 3.5% a year, respectively. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods ending in such month.
SECTION 1.27 TRANSACTION DATE. The Transaction Date is the business day we
receive a Contribution or a written contract transaction request providing the
information we need at the Processing Office. In the case of a transfer request
initiated through the use of a touch tone telephone as described in Section
2.05, the term Transaction Date is the business day the telephone transaction is
received.
SECTION 1.28 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
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PART II - ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. The Employer is to make Contributions, from time to
time on such dates and in such amounts as determined by the Employer pursuant to
the terms of the Plan or Agreement. You are to specify the amount to be
allocated to each Division.
Each Contribution received by us with respect to you will, before its allocation
under this Contract, be reduced by the amount of any applicable tax charge, as
determined by us.
Pursuant to the terms of the Plan, if applicable, you may, with our agreement,
(i) transfer to this Contract any amount held under a contract or account that
meets the requirements of Section 403(b) of the Code ("Transferred Funds"), or
(ii) roll over contributions from a contract or account that meets the
requirements of Section 403(b) of the Code, or from a conduit individual
retirement arrangement described in Section 408(d)(3)(A)(iii) of the Code. If
you do not provide to us at the time of such transfer as described in (i) above,
as to what portion, if any, of the amounts of the Transferred Funds which are
exempt from the distribution restrictions described in Section 2.10, and the
minimum distribution rules described in Section 3.05, we will treat all such
amounts as being subject to such restrictions. Any Transferred Funds from a
contract not issued by us will, before allocation under this Contract, be
reduced by the amount of any applicable tax charge, as determined by us.
SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to or withdrawn or transferred from an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing said amount by
the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units you have in an
Investment Division on any date is equal to (i) the sum of any Accumulation
Units that have been allocated pursuant to Section 2.04 minus (ii) the sum of
any Accumulation Units that have been withdrawn pursuant to Sections 2.07, 2.08
or 2.13, or transferred from the Investment Division pursuant to Section 2.05.
The amount you have in an Investment Division on any date is equal to the
product of (i) the number of Accumulation Units in the Investment Division on
that date, and (ii) the Accumulation Unit Value for the Investment Division for
the Valuation Period which includes that date.
Participation in the Separate Account under this Contract terminates on the
earliest of (i) your election and commencement of annuity benefits pursuant to
Section 3.03, (ii) receipt of due proof of your death, or (iii) Termination of
this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts. The amount in the
Guaranteed Interest Division at any time is equal to the sum of all amounts that
have been allocated to the Guaranteed Interest Division pursuant to Section 2.04
or 2.13, plus the amount of any interest accrued but not allocated, less the sum
of all amounts that have been withdrawn from the Guaranteed Interest Division
pursuant to Section 2.07, 2.08 or 2.13 or transferred from the Guaranteed
Interest Division, pursuant to Section 2.05. Interest is allocated to the
Guaranteed Interest Division on a Transaction Date pursuant to Section 2.04.
We will credit the amount you have in the Guaranteed Interest Division with
interest at effective annual rates that we determine. For each Class of
Contracts we determine a yearly guaranteed interest rate that will remain in
effect throughout the next year. We guarantee that this yearly guaranteed
interest rate will never be less than 3%.
Participation in the Guaranteed Interest Division under the terms of this
Contract terminates on the earliest of (i) election and commencement of Annuity
Benefits pursuant to Section 3.03, (ii) receipt of due proof of your death, and
(iii) Termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at your sole direction as specified to us. Allocation percentages
must be in whole numbers and the sum must equal 100. The allocation is made as
of the Transaction Date on which we have received both such Contribution and
such direction. Contributions made to an Investment Division purchase
Accumulation Units in that Investment Division, using the Accumulation Unit
Value next computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon Termination of this Contract, pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.12.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. You may, upon written request or through
the use of a touch tone telephone, transfer all or part of the amount you have
in a Division to one or more of the Divisions as follows: (1) amounts in the
Guaranteed Interest Division, Stock Division, Balanced Division and Aggressive
Stock Division may be transferred among such Divisions; (2) amounts in the Money
Market Division may be transferred to other Divisions. Written authorization for
touch tone telephone initiated transfers is only required when authorization for
telephone transfers is requested. Upon advance written notice to you, we reserve
the right to
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discontinue the acceptance of transfer requests through the use of a touch tone
telephone. All transfers will be effective on the Transaction Date and will be
subject to our rules in effect at the time of transfer. With respect to the
Investment Division, the transfer will be made at the Accumulation Unit Value
next computed after the Transaction Date. No transfers are permitted to the
Money Market Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. Subject to any restrictions under the
terms of the Plan, including, for Plans subject to Title I of ERISA, if
applicable, the spousal consent rules set forth in Section 3.06, you may elect,
by written notice, to terminate this Contract. In addition, termination of this
Contract is subject to the restrictions on distributions set forth in Section
2.10 of this Contract. We will determine the Cash Value as of the Transaction
Date we receive your written election.
The payment of such Cash Value to you may be deferred by us in accordance with
the provisions of Section 4.07.
Subject to the terms of the Plan, and the restrictions on distributions set
forth in Section 2.10, we reserve the right to pay the Annuity Account Value
under this Contract and terminate this Contract. This right may be exercised
only if both (i) you made no Contributions during the last three completed
Contract Years, and the Annuity Account Value is less than $500, or (ii) a
partial withdrawal is made that would result in your Annuity Account Value
falling below $500. We also reserve the right to terminate this Contract if no
Contributions have been made within 120 days of the Contract Date shown on page
3 of this Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions and the Annuity Account Value shall be zero. We will
be released from any and all liability for payments with respect to the
Contributions from which the Annuity Account Value arose.
If this Contract is terminated, surrendered or exchanged prior to your
Retirement Date, any applicable tax charges we have paid may be deducted. If we
have previously deducted charges for applicable taxes from Contributions
pursuant to Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
your Contract.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any applicable restrictions under
the terms of the Plan, and the restrictions on distributions set forth in
Section 2.10, you may elect, by written notice to us, to make a partial
withdrawal from the Divisions. For Plans subject to Title I of ERISA, partial
withdrawals may be subject to the spousal consent rules, if applicable, set
forth in Section 3.06.
Following receipt of your written notice, we will pay the lesser of the Cash
Value, or the amount of partial withdrawal requested to the person entitled to
receive such payment as you designate to us in writing. The amount paid plus any
withdrawal charge applicable pursuant to Section 2.08 will be withdrawn from the
amounts you have in the Divisions. Unless instructed otherwise, the amount
withdrawn (including any withdrawal charge) will be allocated among the
Divisions in proportion to the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability for payments with respect to the Contributions from which the amounts
so withdrawn arose. Partial withdrawal payments may be deferred by us in
accordance with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300,
or where the request violates the provisions of Sections 2.07 or 3.06. If a
withdrawal made under this Section would result in an Annuity Account Value of
less than $500, we will so advise you and reserve the right to pay the Annuity
Account Value to you and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS.
NO WITHDRAWAL CHARGE: There will be no partial withdrawal charge if (a) the
amount of partial withdrawal requested is not greater than the Free Corridor
Amount defined in Section 2.09 or (b) the Cash Value is equal to the Annuity
Account Value, pursuant to Section 1.05.
WITHDRAWAL CHARGE: If the amount of partial withdrawal requested is greater than
the Free Corridor Amount, we will (i) first withdraw from the Divisions an
amount equal to the Free Corridor Amount, in proportion to the amount you have
in them, and (ii) then withdraw an amount equal to the excess of the amount
requested over the Free Corridor Amount, plus a partial withdrawal charge. Such
partial withdrawal charge will be equal to the lesser of (a) or (b) where:
(a) is an amount equal to
6% during Contract Years 1 through 5
5% during Contract Years 6 through 8
4% during Contract Year 9
3% during Contract Year 10
2% during Contract Year 11
1% during Contract Year 12
O% thereafter
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of the amount withdrawn in excess of the Free Corridor Amount (including
such charge) pursuant to (ii) of the preceding sentence.
(b) is the excess, if any, of (i) 8% of the total Contributions made on your
behalf during the current Contract Year and the nine preceding Contract
Years over (ii) the cumulative total of any prior partial withdrawal
charges made pursuant to this Section.
However, notwithstanding the above, if you are age 60 or older on the Contract
Date, the withdrawal charges in Contract Year 5 shall not exceed 5% of the
excess of the Annuity Account Value over the Free Corridor Amount.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to your Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount" means if you
have completed three Contract Years or attained age 59 and 6 months an amount
equal to the excess, if any, of (i) 10% of the sum of the Annuity Account Value
on the Transaction Date over (ii) cumulative prior withdrawals made pursuant to
Section 2.07 in the current Contract Year. If you have not completed three
Contract Years or attained age 59 and 6 months, the Free Corridor Amount is
zero.
SECTION 2.10 RESTRICTIONS ON DISTRIBUTIONS. Notwithstanding anything in this
Contract to the contrary, payments of Cash Value pursuant to the termination of
this Contract under Section 2.06, partial withdrawals under Section 2.07, death
benefits under Section 2.12 or Annuity Benefits under Section 3.03 may be
limited as provided in Section 403(b)(ll) of the Code and in this Section, to
the extent they are attributable to Elective Deferral Contributions made to this
Contract after December 31, 1988 and earnings credited after December 31, 1988
on Elective Deferral Contributions made before and after December 31, 1988
(collectively, "Restricted Amounts").
Distributions of Restricted Amounts may not be made until you attain age 59
years and six months, separate from service, die, or become disabled (within the
meaning of Section 72(m)(7) of the Code). Distributions of Elective Deferral
Contributions made after December 31, 1988-(but not any earnings credited after
December 31, 1988 attributable to Elective Deferral Contributions made before or
after December 31, 1988) may also be made in the case of hardship (within the
meaning of Section 403(b)(l1) of the Code and applicable Treasury Regulations).
If you request payment of Restricted Amounts on the grounds of disability or
hardship you must furnish to us proof of such disability or hardship as may be
required by the Plan, the Code, and applicable Treasury Regulations in a form
satisfactory to us.
SECTION 2.11 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annuity Account Value on that date is less than $25,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts that you have in
the Divisions.
If the Annuity Account Value is less than $25,000, on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03,
or (b) the date of Termination of this Contract pursuant to Section 2.06 or
2.12, we will prorate the Annual Administrative Charge applicable to the
completed portion of the Current Contract Year and withdraw such amount in lieu
of the Annual Administrative Charge described in this Section for the applicable
part of that Contract Year.
If the Annuity Account Value is $25,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
SECTION 2.12 DEATH BENEFIT. Upon receipt of due proof of your death, we will pay
to the beneficiary designated to receive such payment, pursuant to Section 4.04
of this Contract, the amount of death benefit payable. The amount of the death
benefit is equal to the greater of (i) the Annuity Account Value and (ii) the
minimum death benefit. Such minimum death benefit is the sum of all
Contributions made pursuant to Section 2.01 (before reduction for any applicable
tax charge) less any withdrawals made pursuant to Section 2.07. Any such
withdrawal will reduce the minimum death benefit (as adjusted by any previous
such withdrawal) by an amount which is in the same proportion as the amount that
was withdrawn is to the Annuity Account Value. If, in accordance with the
provisions of Section 2.01, the Cash Value of another Annuity Contract issued by
us, or one of our affiliated or subsidiary Life Insurance Companies, which
provides for a death benefit before retirement is equal to the greater of the
contract Cash Value or alternate amount based on premiums paid or Contributions
made under the Annuity Contract, is transferred to this Contract, such Cash
Value or an alternative amount as of the date of transfer, will be included in
the "sum of all Contributions" in lieu of the amount of Cash Value transferred
for purposes of the death benefit under this Contract.
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We will pay the death benefit to the beneficiary in the form of an Annuity
Benefit if you have made the election described in the last paragraph of Section
4.04. Also, in accordance with the last paragraph of Section 4.04, if no such
election is in effect at your death, we will pay the death benefit to the
beneficiary in a single sum, unless the beneficiary elects, before we pay the
death benefit, to apply the death benefit to an Annuity Benefit, for Plans
subject to Title I of ERISA.
Distributions pursuant to this Section are subject to the terms of the Plan and
the Spousal Consent Rules set forth in Section 3.06 for Plans subject to Title I
of ERISA.
Upon payment of the death benefit, the amount you have in the Divisions and the
Annuity Account Value shall be zero. We will be released from any and all
liability for payments with respect to the Contributions from which the Annuity
Account Value arose.
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PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments with respect to a payee are
payable in a specified dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
with respect to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of net
investment return referred to in Section 1.26 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.25, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charge. These charges include a daily charge for
financial accounting, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the terms of this Contract with respect to a payee is the
monthly amount provided pursuant to the fifth paragraph of Section 3.04. The
amount of the fourth and each subsequent payment under a Variable Annuity
Benefit will be equal to the number of Annuity Units with respect to such
benefit, multiplied by the Average Annuity Unit Value for the second calendar
month immediately preceding the due date of the payment. The number of Annuity
Units with respect to a benefit is the number determined by dividing the amount
of the first monthly payment under such benefit by the Annuity Unit Value for
the Valuation Period which includes the due date of the first monthly payment.
As described in Section 3.05, we will notify the payee how each Variable Annuity
Benefit is determined.
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. As of your
Retirement Date, provided you are then living, the Annuity Account Value shall
be applied to provide the Normal Form of Annuity Benefit, unless you elect (i)
to receive the Cash Value in a single sum, or (ii) to apply the Annuity Account
Value, or Cash Value, whichever is applicable pursuant to the first paragraph of
Section 3.04, to provide an Annuity Benefit on any other annuity form offered by
us, or one of our affiliated or subsidiary life insurance companies, as elected
by you, or (iii) to take partial withdrawals in amounts and at times as required
by the Code, pursuant to Sections 2.07 and 3.05, subject to our rules then in
effect and any other applicable requirements under the Code.
We will provide notice and election forms to you not more than six months before
your Retirement Date.
If you elect to terminate this Contract, prior to the Retirement Date, pursuant
to Section 2.06, an election may be made to receive an Annuity Benefit in lieu
of the Cash Value, unless restricted by the Plan.
We will have the right to require that you furnish pertinent information to
provide an Annuity Benefit, and we will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies. If the issuance of this Contract is pursuant to a Plan
subject to Title I of ERISA, the rules set forth in Section 3.06 shall apply to
your election and the commencement of annuity benefits.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If you elect, pursuant to the first or
third paragraph of Section 3.03, to receive an Annuity Benefit in lieu of the
Cash Value, the amount applied to provide the Annuity Benefit will be (i) the
Annuity Account Value if the payments under the annuity form involves life
contingencies, or (ii) the Cash Value if the Annuity Form elected does not
involve life contingencies.
No. 92 TSUB Page 11
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The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charge from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to your Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your Contract will be governed by our
supplementary contract then in effect.
The amount to be applied to provide an Annuity Benefit will, in addition to any
tax charge reduction, be reduced by an administrative charge. The amount of such
charge will be determined from time to time in accordance with our general
practices applicable on a uniform basis to all contracts of the same type as
this Contract.
After the application of an amount to provide an Annuity Benefit, the amounts
you have in the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated, on either the Life Annuity Form or the Joint and
Survivor Life Annuity Form (with 100% of the amount of your payment continued to
your spouse). The amount of income provided under the Fixed Annuity Benefit
payable on the Life Annuity Form and Joint and Survivor Life Annuity Mortality
Form, are based on 3.5% interest and the 1983 Individual Annuity Mortality Table
"a" adjusted to a unisex basis based on a 50-50 split of males and females, at
age zero. The amount of income initially provided under the Variable Annuity
Benefit payable on the Life Annuity Form and the Joint and Survivor Life Annuity
Form are based on a 50-50 split of males and females, at age zero and an Assumed
Base Rate of Net Investment Return of 3.5% or 5%, whichever applies pursuant to
Section 1.26.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us based on 3.5% interest and the 1983 Individual Annuity
Mortality Table "a" adjusted to a unisex basis based on a 50-50 split of males
and females, at age zero, if such annuity form provides for a Fixed Annuity
Benefit, and on the projected 1983 Basic Table "a" adjusted to a unisex basis
based on a 50-50 split of males and females, at age zero and an Assumed Base
Rate of Net Investment Income Return of 3.5% or 5%, whichever applies pursuant
to Section 1.26, if such annuity form provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Distributions attributed to
Contributions of Transferred Funds pursuant to Section 2.01 (where you have
provided to us written evidence of such balance as of December 31, 1986) must
commence no later than age 75. Such distributions will be made in the normal
form of Annuity Benefit, unless you elect to take payments in a single sum or
another form of Annuity Benefit then offered by us.
Your entire interest in this Contract attributable to all other Contributions
made, and earnings credited thereon must be distributed, or begin to be
distributed no later than the first day of April following the calendar year in
which you attain age 70 and 6 months ("Required Beginning Date"). Your entire
interest may be distributed, as you elect, over (a) your life, or the lives of
you and your designated beneficiary, or (b) a period certain not extending
beyond your life expectancy, or the joint and last survivor expectancy of you
and your designated beneficiary. Distributions must be made in periodic payments
at intervals of no longer than one year. In addition, payments must be either
nonincreasing or they may increase only as provided in Q & A F-3 of Section
1.401(a)(9)-1 of the proposed Treasury Regulations, or any successor Regulation
thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 403(b)(10) and 401(a)(9) of the Code, including the
incidental death benefit requirements of Section 401(a)(9)(G) of the Code, and
applicable Treasury Regulations, including the minimum distribution incidental
benefit requirement of Section 1.401(a)(9)-2 of the Proposed Treasury
Regulations, or any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. That is, the forms of distribution shall be those which are made
available by us at the time of your election.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9 unless
you otherwise elect prior to the time distributions are required to begin, those
life expectancies shall be recalculated annually. Such election shall be
irrevocable and shall apply to all subsequent years. The life expectancy of a
non-spouse beneficiary may not be recalculated. Instead, life expectancy will be
calculated using the attained age of such beneficiary during the calendar year
in which you attain age 70 and 6 months, and payments for subsequent years shall
be calculated based on such life expectancy reduced by one for each calendar
year which has elapsed since the calendar year life expectancy was first
calculated.
If you die after distribution of your interest in this Contract has begun, the
remaining portion of such interest will continue to be distributed at least as
rapidly as under the method of distribution being used prior to your death.
If you die before distribution of your interest begins, distribution of your
entire interest shall be completed no later than December 31 of the calendar
year containing the fifth anniversary of your death, except to the extent that
an election is made to receive death benefit distributions in accordance with
(1) or (2) below:
No. 92 TSUB Page 12
<PAGE>
(1) If your entire interest is payable to a designated beneficiary, then your
entire interest may be distributed over the life of, or over a period
certain not greater than the life expectancy of, the designated
beneficiary. Such distributions must commence on or before December 31 of
the calendar year immediately following the calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date
distributions are required to begin in accordance with (1) above shall not
be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of your death or (B) December 31
of the calendar year in which you would have attained age 70 and 6 months.
For purposes of determining the "period certain" referred to in the immediately
preceding paragraph, life expectancy is computed by use of the expected return
multiples in Tables V and VI of Treasury Regulation Section 1.72-9. For purposes
of distributions beginning after your death, unless otherwise elected by the
surviving spouse by the time distributions are required to begin, life
expectancies shall be recalculated annually. Such election shall be irrevocable
by the surviving spouse and shall apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies shall be calculated using
the attained age of such beneficiary during the calendar year in which
distributions are required to begin pursuant to this Section, and payments for
any subsequent calendar year shall be calculated based on such life expectancy
reduced by one for each calendar year which has elapsed since the calendar year
life expectancy was first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under the terms of this Contract was based on information
that is subsequently found to be incorrect, your benefit will not be
invalidated, but an adjustment on the basis of the correct information will be
made in the amount of the benefit payments, or any amount used to provide the
benefit, or any combination thereof. Overpayments by us will be charged against
and underpayments will be added to any payments thereafter falling due under the
terms of this Contract with respect to the payee, affecting as many such
payments as are necessary to correct the overpayment or underpayment. Our
liability, with respect to a payee, is limited to the correct information and
the actual amounts used to provide the benefits then in force with respect to
the payee under this Contract.
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii) another person or an
institution is then maintaining or has custody of such payee, and (iii) no
guardian, committee, or other representative of the estate of such payee has
been appointed, we may make the payments (in the case of a minor, at a rate not
exceeding $200 a month) to such other person or institution, and will thereupon
be fully discharged from all liability with respect thereto.
If a variable annuity form made available by us provides for payment for a
period certain, such as 120 or 180 months, and thereafter during the remaining
lifetime of one person, or of at least one of two persons, a payee for payments
thereunder may elect, without the concurrence of any other person, to receive
the commuted value of any remaining payments, provided no person upon whose life
the income depends is surviving.
Pursuant to Section 3.03, upon your election, pursuant to Section 3.03 of an
annuity form providing payments for a period certain, you may designate (with
the right to change such designation) a person or persons to receive any
payments that may become due after the death of the person or persons upon whose
life or lives the income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person) a payee to receive any payments or
installments payable after such payee's death, if the absence of such a
designation would result in a single sum payment to such payee's estate in
accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments. The commuted value of any such remaining payments will be
determined on the basis of compound interest at the rate utilized in the
actuarial rate basis applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
No. 92 TSUB Page 13
<PAGE>
- --------------------------------------------------------------------------------
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE
JOINT AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT TO CONTINUE TO SPOUSE
(Minimum Monthly Income Per $1,000 OF Annuity Account Value)
- ----------------------------------------------------------------------------
Age 60 61 62 63 64 65 66 67 68 69 70
- ----------------------------------------------------------------------------
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
- ----------------------------------------------------------------------------
ANNUITY BENEFIT PAYABLE
ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- -------------------------------------------------------------------
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED
BASE RATE OF NET INVESTMENT RETURN IS
Age 3.5% 5.0%
- -------------------------------------------------------------------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
- -------------------------------------------------------------------
We will notify the payee, with respect to each payment under a Variable Annuity
Benefit, the number of Annuity Units and the Average Annuity Unit Value used in
determining the amount of each variable payment. Such notice will be mailed with
each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS. if this Contract is
issued pursuant to a Plan subject to Title I of ERISA, then the provisions of
this Section shall supersede any contrary provisions in this Contract. If you
are married, your interest in the Contract shall be paid in the Normal Form
joint and survivor annuity, and if you are unmarried, your interest shall be
paid in the Normal Form life annuity, unless you elect otherwise as described in
this Section. If you are married and die before payment of your interest has
commenced, your interest shall be paid to your surviving spouse in the form of a
life annuity, unless at the time of your death there was a contrary election
made pursuant to this Section. The foregoing notwithstanding, your surviving
spouse may elect, before payment is to commence, to have payment made in any
form permitted under the terms of this Contract.
You may elect, at any time within the 90 consecutive day period before the first
day of the first period for which your interest is paid as an annuity or in any
other form, not to have your interest paid in the Normal Form, in which case it
shall be paid in any other form elected under the terms of this Contract. If
such interest is to be paid to your spouse upon your death, you may elect,
during the period beginning on the first day of the plan year of the Plan in
which you attain age 35 (or, if you separate from service prior to that plan
year, beginning on the date of separation) and ending with your death, for a
beneficiary other than your spouse to receive payment of the value of your
interest. In addition, if you will not yet attain age 35 by the end of any
current plan year, you may make a special qualified election to designate a
beneficiary other than your spouse to receive payment of the value of your
interest, which special qualified election shall be effective for the period
beginning on the date of such election and ending on the first day of the plan
year in which you will attain age 35. Amounts payable in accordance with this
Section will be automatically reinstated as of the first day of the plan year in
which you attain age 35 unless a new election designating a beneficiary other
than the spouse is made in accordance with the requirements of this Section.
Any election described in the foregoing paragraph must be consented to by your
spouse in writing before a notary or a representative of the Plan unless you can
prove that there is no spouse or that the spouse cannot be located. Also, if you
have become legally separated from your spouse or have been abandoned (within
the meaning of local law) and have a court order to such effect, spousal consent
is not required unless a qualified domestic relations order provides otherwise.
Your election must designate a specific beneficiary (including any class of
beneficiaries or any contingent beneficiaries) that may not be changed without
further consent of the spouse, unless the
No. 92 TSUB Page 14
<PAGE>
spouse's consent expressly permits designation by you without further consent of
the spouse. The spouse's consent under this section shall acknowledge the effect
of the election. In addition, the spouse's consent (or the establishment that
the consent of the spouse may not be obtained) shall only be valid with respect
to such spouse. Your waiver of the Normal Form joint and survivor annuity shall
not be effective unless the election designates a form of benefit payment which
may not be changed without spousal consent (or the spouse expressly permits
designations by you without any further spousal consent). A consent that permits
designations by you without any requirement of further consent by such spouse
must acknowledge that the spouse has the right to limit consent to a specific
beneficiary and a specific form of benefit where applicable, and that the spouse
voluntarily elects to relinquish either or both of such rights. If you make an
election under this Section, you may revoke that election, without spousal
consent, at any time before the first day of the first period for which an
amount is paid as an annuity or in any other form.
The provisions requiring spousal consent in this Section shall also apply with
regard to your election to terminate this Contract or make partial withdrawals
pursuant to Sections 2.06 and 2.07, and with respect to a beneficiary
designation set forth in Section 4.04. A spouse's written consent, witnessed by
a representative of the Plan or a notary public, must be given on a form
acceptable to the Employer and us, within the 90 consecutive day period prior to
any such payment or withdrawal, or beneficiary designation, unless you can show
that you have no spouse or that the spouse cannot be located.
If the Annuity Account Value applied to provide the spousal benefits on the date
payment is to commence is in the aggregate less than $3,500, we may choose to
make payment in a single sum rather than in the form of a Qualified Joint and
Survivor Annuity or Life Annuity as described herein. Upon any payment made
pursuant to this Section, we will be released from any and all liability for
payment with respect to the Contributions made for you.
- ----------------------------------------------------------------------------
PART IV - GENERAL PROVISIONS
SECTION 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the terms of this Contract alone will govern with respect to our
rights and obligations. A copy of the application is incorporated in and made
part of this Contract.
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between you
and us without the consent of any other person.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend the terms of
this Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform the terms of this Contract to reflect changes in the
Code, or applicable Treasury Regulations, or in regulations or published rulings
of the Internal Revenue Service so that this Contract will continue to be an
Annuity.
SECTION 4.03 NONTRANSFERABILITY AND ASSIGNMENTS. Your entire interest under this
Contract is nonforfeitable. No interest of yours (or of a beneficiary) under
this Contract may be transferred to any person other than us upon the surrender
of this Contract. Except as permitted under applicable law, no right or interest
of you or any other payee or beneficiary in this Contract shall be (a)
assignable; (b) subject to any lien; or (c) liable for, or subject to, any
obligation or liability of any person. The preceding sentence shall not apply to
any assignment, transfer or attachment pursuant to a qualified domestic
relations order (as defined in Section 414(p) of the Code).
SECTION 4.04 BENEFICIARY. As of the Contract Date, you are to provide us with an
initial designation of the beneficiary entitled to receive any death benefit
payable pursuant to Section 2.12. You may change such designation from time to
time during your lifetime, and while this Contract is in force. Any such
designation or change must be made by written notice in a form satisfactory to
us. A change will, upon receipt at the Processing Office, take effect as of the
time the written notice was signed, whether or not you are living on the date of
receipt, but without further liability as to any payment or other settlement
made by us before receipt of such change. Beneficiary designations are subject
to the rules of Section 3.06 if the Contract is issued pursuant to a Plan
subject to Title I of ERISA.
Unless otherwise specified in the designation, if you have designated two or
more persons as beneficiary, the beneficiary will be the designated person or
persons who survive you, and if more than one survive, they will share equally.
Any part of a death benefit payable pursuant to Section 2.12 for which there is
no designated beneficiary living at the time of your death, will be payable in a
single sum to your children who survive you, in equal shares, or should none
survive, then to your estate.
No. 92 TSUB Page 15
<PAGE>
If you elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity previously elected by you, with respect to the beneficiary,
subject to our rules then in effect. If, at your death, there is no election in
effect to apply the single sum death benefit to provide an Annuity Benefit, the
beneficiary may make such an election. Any such election must meet the minimum
distribution requirements under the Code, as described in Section 3.05.
SECTION 4.05 DISQUALIFICATION OF PLAN OR CONTRACT. In the event that the Plan
fails to qualify as a Plan under Section 403(b) of the Code and applicable
Treasury Regulations, we reserve the right, upon receiving notice of such fact,
to transfer the Annuity Account Value under this Contract to another annuity
contract issued by us, an affiliate subsidiary, on your life, or to terminate
this Contract and pay to you the Annuity Account Value less deduction for
applicable taxes, solely at our option.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to the Employer, we
reserve the right at our sole discretion to limit Contributions under this
Contract.
SECTION 4.07 DEFERMENT. Application of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicably because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payment in order to protect
persons with interests in the Investment Divisions. We can defer payment of any
portion of your Annuity Account Value in the Guaranteed Interest Division for up
to six months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year we will furnish
you with a notice showing the following:
(1) the amount you have in the Guaranteed Interest Division,
(2) the total number of Accumulation Units you have in the Stock Division,
Balanced Division, Aggressive Stock Division and Money Market
Division,
(3) the Accumulation Unit Values,
(4) the amount you have in the Stock Division, Balanced Division,
Aggressive Stock Division and Money Market Division,
(5) the Cash Value, and
(6) the amount of death benefit payable with respect to you.
We will also furnish annual calendar year reports concerning the status of the
annuity and any other reports required by the Code or applicable Treasury
Regulations.
After the Retirement Date, we will notify you of the number of Annuity Units and
the Average Annuity Unit Value used in determining the amount of each Variable
Annuity Benefit payment, if any.
SECTION 4.09 AGE. If your age has been misstated, any benefits will be those
which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
No. 92 TSUB Page 16
<PAGE>
OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28, 1992
RETIREMENT DATE: JAN 1, 2020
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O New York, New
York 10116
AGREES
o TO ALLOCATE the Contributions made to this Contract, after deduction of any
applicable tax charge, to the Stock Division, Balanced Division, Aggressive
Stock Division and Money Market Division of the Separate Account (referred to
in this Contract as the "Investment Divisions") or to the Guaranteed Interest
Division, in accordance with Sections 2.02, 2.03 and 2.04, as directed by the
Owner, and
o TO APPLY the Annuity Account Value at the Retirement Date to provide you with
an Annuity Benefit or a Cash Value benefit if you are then living, and
o TO PROVIDE the Owner with the other rights and benefits of this Contract.
This is the entire Contract. In this Contract, "we" "our" and "us" mean The
Equitable Life Assurance Society of the United States. "You" and "your" mean
the Annuitant.
TEN DAYS TO EXAMINE CONTRACT - The Owner may cancel this Contract by returning
it to us within ten days after receipt of it. Upon such cancellation, we will
refund any Contribution made to us under this Contract.
/s/ Molly K. Heines /s/ Richard H. Jenrette
Vice President and Secretary Chairman of the Board
and Chief Executive Officer
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN THIS CONTRACT.
THE AMOUNT OF THE ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION. SUCH VARIABLE ANNUITY BENEFIT WILL INCREASE IF THE AVERAGE DAILY
RATE OF INVESTMENT RETURN IN THE STOCK DIVISION IS EQUIVALENT TO MORE THAN 6.75%
OR 5.25% ANNUALLY AND WILL DECREASE IF IT IS EQUIVALENT TO LESS THAN 6.75% OR
5.25% ANNUALLY, DEPENDING ON WHETHER THE APPLICABLE ASSUMED BASE RATE OF NET
INVESTMENT RETURN REFERRED TO IN SECTION 1.25 IS 5% OR 3.5%, RESPECTIVELY. THE
DAILY RATE OF INVESTMENT RETURN IS BEFORE DEDUCTION OF CHARGES NOT TO EXCEED THE
MAXIMUM RATE OF 1.75%. THESE CHARGES INCLUDE A DAILY CHARGE FOR FINANCIAL
ACCOUNTING, DEATH BENEFITS, MORTALITY RISK, EXPENSES AND EXPENSE RISK, PLUS THE
INVESTMENT ADVISORY FEE CHARGES AND DIRECT OPERATING EXPENSE CHARGES OF THE
TRUST.
No. 92UTRA
<PAGE>
This Contract is issued in consideration of the payment to us of the
Contributions made under the terms of this Contract.
The provisions on the following pages are part of this Contract.
- ------------------------------------------------------------------------------
TABLE OF CONTENTS
DEFINITIONS PAGE
Section 1.01 - Annuitant.............................4
1.02 - Annuity...............................4
1.03 - Annuity Account Value.................4
1.04 - Annuity benefit.......................4
1.05 - Cash Value............................4
1.06 - Class of Contracts....................4
1.07 - Code..................................4
1.08 - Contract..............................4
1.09 - Contract Date.........................4
1.10 - Contract Year.........................4
1.11 - Contribution..........................4
1.12 - Divisions.............................4
1.13 - Eligible Annuity Certain..............5
1.14 - Employer..............................5
1.15 - Guaranteed Interest Rate..............5
1.16 - Joint and Survivor Life
Annuity Form..........................5
1.17 - Life Annuity Form.....................5
1.18 - Normal Form...........................5
1.19 - Owner.................................5
1.20 - Period Certain Annuity................5
1.21 - Plan..................................5
1.22 - Processing Office.....................5
1.23 - Retirement Date.......................5
1.24 - Separate Account......................5
1.25 - Separate Account Definitions..........6
1.26 - Transaction Date......................7
1.27 - Trust.................................7
1.28 - Trustee...............................7
1.29 - Trusteed Plan.........................7
ANNUITY ACCOUNT VALUE
Section 2.01 - Contributions.........................7
2.02 - Separate Account Investment
Divisions.............................8
2.03 - Guaranteed Interest Division..........8
2.04 - Allocation to Divisions...............8
2.05 - Transfers Among Divisions.............8
2.06 - Termination of this Contract..........8
2.07 - Partial Withdrawals...................9
2.08 - Charges for Partial Withdrawals.......9
2.09 - Free Corridor Amount..................9
2.10 - Annual Administrative Charge..........9
2.11 - Death Benefit........................10
ANNUITY BENEFITS
Section 3.01 - Fixed Annuity Benefit................10
3.02 - Variable Annuity Benefit.............10
3.03 - Election and Commencement
of Annuity Benefits..................11
3.04 - Amount of Annuity Benefits...........11
3.05 - Payment of Annuity Benefits..........11
3.06 - Special Annuity and Spousal
Consent Provisions...................14
GENERAL PROVISIONS
Section 4.01 - Contract.............................14
4.02 - Statutory Compliance.................15
4.03 - Assignments and
Nontransferability...................15
4.04 - Beneficiary..........................15
4.05 - Disqualification.....................15
4.06 - Future Contributions.................15
4.07 - Deferment............................15
4.08 - Annual Notice........................15
4.09 - Trustee's Responsibility.............16
4.10 - Age..................................16
No. 92UTRA Page 2
<PAGE>
OWNER: JOHN DOE
ANNUITANT: JOHN DOE
CONTRACT NUMBER: 00 000 000
ISSUE DATE: FEB 28, 1992
CONTRACT DATE: FEB 28, 1992
RETIREMENT DATE: JAN 1, 2020
INITIAL GUARANTEED INTEREST RATE: 7.50% TO MAR 31, 1992
MINIMUM GUARANTEED INTEREST RATE: 6.00% TO DEC 31, 1992
3.00% AFTER DEC 31, 1992
BENEFICIARY: JANE DOE
FORM NUMBER 92UTRA
********************************************************************************
TABLE OF GUARANTEED VALUES
ISSUE AGE 38 MALE $1000 ANNUAL CONTRIBUTION
NUMBER OF YEARS GUARANTEED GUARANTEED PAID-UP MONTHLY
SINCE FIRST YEAR OF CONTRIBUTION CASH VALUE ANNUITY AT AGE 65
- -------------------------------- ---------- -----------------
1 983 6.62
2 1,958 16.20
3 2,963 26.67
4 3,998 36.83
5 5,064 46.70
6 6,162 56.28
7 7,349 65.58
8 8,580 74.61
9 9,848 83.38
10 11,154 91.89
11 12,500 100.16
12 13,886 108.18
13 15,313 115.97
14 16,783 123.53
15 18,298 131.18
16 19,857 138.63
17 21,464 145.90
18 23,118 152.80
19 24,853 159.69
20 26,639 166.03
24 (Age 62) 34,697 189.57
27 (Age 65) 41,098 205.49
THE TABLES ILLUSTRATE MINIMUM GUARANTEED VALUES AND ASSUME A HYPOTHETICAL $1,000
CONTRIBUTION MADE ANNUALLY ON THE FIRST OF THE MONTH FOLLOWING THE CONTRACT
DATE. THE GUARANTEED CASH VALUE TABLE REFLECTS AN ANNUAL ADMINISTRATIVE CHARGE
(SEE SECTION 2.10) AND A WITHDRAWAL CHARGE OF UP TO 6% OF THE CONTRIBUTIONS MADE
IN THE CURRENT AND 5 PRIOR CONTRACT YEARS (SEE SECTION 1.05). THE TABLES ASSUME
THAT 100% OF ALL CONTRIBUTIONS AND EARNINGS ARE ALLOCATED TO AND REMAIN IN THE
GUARANTEED INTEREST DIVISION.
YOUR ACTUAL GUARANTEED VALUES MAY DIFFER FROM THOSE SHOWN ABOVE, DEPENDING ON
THE LEVEL AND FREQUENCY OF YOUR CONTRIBUTIONS.
THE GUARANTEED PAID-UP MONTHLY ANNUITY SHOWN ABOVE WILL BE REDUCED BY ANY CHARGE
WE MAKE FOR ANY APPLICABLE TAXES (SEE SECTION 3.04). OTHER FORMS OF ANNUITY
BENEFITS MAY BE AVAILABLE; HOWEVER, ANY ANNUITY BENEFIT CONTRACT ELECTED AS A
SETTLEMENT WILL BE SUBJECT TO A CHARGE (SEE SECTION 3.04).
* ASSUMES FIXED BENEFIT JOINT AND SURVIVOR LIFE ANNUITY (100% CONTINUATION TO
SURVIVOR) WITH JOINT ANNUITANT THE SAME AS THE ANNUITANT.
No. 92UTRA Page 3
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PART I - DEFINITIONS
SECTION 1.01 ANNUITANT. The term "Annuitant" means the individual shown on Page
3 of this Contract.
SECTION 1.02 ANNUITY. The term "Annuity" means an annuity contract purchased in
accordance with the terms of the Plan.
SECTION 1.03 ANNUITY ACCOUNT VALUE. The term "Annuity Account Value" means the
sum of the amounts in the Guaranteed Interest Division and the Investment
Divisions of the Separate Account pursuant to Sections 2.02 and 2.03.
SECTION 1.04 ANNUITY BENEFIT. The term "Annuity Benefit" means a benefit payable
by us pursuant to Section 3.04 of this Contract. Various sections of this
Contract (Sections 1.16, 1.17, 3.01 and 3.02) refer to monthly payments to be
made under an Annuity Benefit. You may wish to have your Annuity Benefit paid at
other intervals, such as quarterly, semi-annually, or annually, instead of
monthly. You may elect this at the time you elect the Annuity Benefit form as
described in Section 3.03; in that event, all references in this Contract to
monthly payments will be deemed to mean payments at the frequency you elect,
subject to our rules at the time of election.
SECTION 1.05 CASH VALUE.
The term "Cash Value" means an amount equal to the greater of (i) or (ii) where:
(i) is the Annuity Account Value less 6% of the Contributions made during the
current and five prior Contract Years, which had not been previously
withdrawn pursuant to Section 2.08.
(ii) is the sum of (a) the Free Corridor Amount as defined in Section 2.09 and
(b) 94% of the Annuity Account Value less the Free Corridor Amount.
However, if the Annuitant is age 60 years or older on the Contract Date and it
is Contract Year 5, item (ii)(b) above will be 95% of the Annuity Account Value
less the Free Corridor Amount.
NO WITHDRAWAL CHARGE: If you have attained the age of 59 years and 6 months, the
term "Cash Value" means an amount equal to the Annuity Account Value for
withdrawals due to retirement or termination of employment. Your retirement or
termination of employment must be verified by the Trustee. Such verification
should be in the form of a statement signed by the Trustee and accompanying the
request for withdrawal. The request for withdrawal must be signed by both you
and the Trustee. The withdrawal charge will be imposed if this verification is
not received at our Processing Office together with the withdrawal request.
SECTION 1.06 CLASS OF CONTRACTS. The term "Class of Contracts" refers to all
Contracts with a Contract Date in the same calendar year.
SECTION 1.07 CODE. The term "Code" means the Internal Revenue Code of 1986, as
amended, or any corresponding provisions of prior or subsequent United States
revenue laws.
SECTION 1.08 CONTRACT. The term "Contract" means this Contract.
SECTION 1.09 CONTRACT DATE. The term "Contract Date" means the date of receipt
by us of both the application for this Contract, properly signed and completed,
and a Contribution.
SECTION 1.10 CONTRACT YEAR. The term "Contract Year" means the twelve month
period beginning on (i) the Contract Date, and (ii) each anniversary thereafter,
unless otherwise agreed to in writing by us.
SECTION 1.11 CONTRIBUTION. The term "Contribution" means a payment made to us
for you with respect to an Annuity purchased for you under the Plan. We are
under no obligation to accept any Contribution less than $20.00.
SECTION 1.12 DIVISIONS. The terms "Division" or "Divisions" mean, singly or
severally as the case may be, the following divisions described in this
contract:
(i) the Guaranteed Interest Division, and
(ii) the Investment Divisions of the Separate Account.
No. 92UTRA Page 4
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SECTION 1.13 ELIGIBLE ANNUITY CERTAIN. The term "Eligible Annuity Certain" means
an annuity not involving life contingencies issued by us, which extends beyond
your attainment of age 59 years and 6 months and does not permit any prepayment
of the unpaid principal (that is, no withdrawal or single sum payment prior to
your attainment of age 59 years and 6 months).
SECTION 1.14 EMPLOYER. The term "Employer" means the unincorporated employer
adopting the Plan, or any such employer that assumes in writing the obligations
of the Plan. A sole proprietor is deemed to be his own Employer and a
partnership is deemed to be the Employer of each partner.
SECTION 1.15 GUARANTEED INTEREST RATE. The term "Guaranteed Interest Rate" means
the effective annual rate at which interest accrues on the amount in the
Guaranteed Interest Division. The initial rate to apply is shown on Page 3 of
this Contract. Section 2.03 describes determination of the rate to apply
thereafter.
SECTION 1.16 JOINT AND SURVIVOR LIFE ANNUITY FORM. The term "Joint and Survivor
Life Annuity Form" means an annuity providing monthly payments while either of
two persons upon whose lives such payments depend is living. The monthly amount
to be continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100% , as
elected by the Owner. The payments commence on the date as of which the Joint
and Survivor Life Annuity Form is purchased and terminate with the last payment
due before the death of the survivor.
SECTION 1.17 LIFE ANNUITY FORM. The term "Life Annuity Form" means an annuity
issued by us providing monthly payments during the lifetime of the person upon
whose life such payments depend. The payments commence on the date as of which
the Life Annuity Form is purchased and terminate with the last payment due
before the death of such person.
SECTION 1.18 NORMAL FORM. The term "Normal Form" of an Annuity Benefit under
this Contract means, (i) if you have a living spouse at your Retirement Date,
the Fixed Annuity Benefit payable on the Joint and Survivor Life Annuity Form
with your spouse as the contingent annuitant (with 100% of the monthly payment
continued to your spouse), and (ii) if you do not have a living spouse at your
Retirement Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
SECTION 1.19 OWNER. The Owner of this Contract is as stated on Page 3 of this
Contract. Notwithstanding any provisions in this Contract to the contrary, only
the Owner can exercise all the rights under this Contract while you are living.
The Owner does not need the consent of anyone who has only a conditional or
future interest in this Contract.
While you are living, the Owner of this Contract on your behalf may change the
Owner by written notice satisfactory to us. The change will take effect on the
date the Owner signs the notice, except it will not apply to any payment we make
or other actions we take before we receive the notice.
SECTION 1.20 PERIOD CERTAIN ANNUITY. The term "Period Certain Annuity" means an
annuity not involving life contingencies issued by us which does not permit any
prepayment of the unpaid principal (that is, you cannot elect to receive part of
your payments as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 1.21 PLAN. The term "Plan" means a defined contribution plan adopted by
the Employer that is intended to meet the requirements for qualification under
Section 401(a) of the Code.
SECTION 1.22 PROCESSING OFFICE. The term "Processing Office" means our
Individual Annuity Center, P.O. Box 2996, G.P.O., New York, New York 10116, or
such other location as we shall designate by advance written notice to the
Owner, the Employer or the Plan's Trustee, as applicable, and to you.
SECTION 1.23 RETIREMENT DATE. The term "Retirement Date" means the date on which
you attain the retirement age as shown on Page 3 of this Contract, pursuant to
the terms of the Plan. Before the Retirement Date the Owner may elect to change
the Retirement Date to another Retirement Date permitted under the Plan, which
may be any date after the filing of the election (other than the 29th, 30th or
31st day of any month). No Retirement Date shall be later than the date you
attain age 70 years and 6 months. Any election for such change must be made in
writing by the Owner and shall not take effect until received by us at our
Processing Office.
SECTION 1.24 SEPARATE ACCOUNT. The term "Separate Account" means our Separate
Account A which is organized as a unit investment trust, a type of investment
company. We have established the Separate Account and it is maintained in
accordance with the laws of New York State. Realized and unrealized gains and
losses from the assets of the Separate Account are credited to or charged
against it without regard to our other income, gains or losses. Assets are put
in the Separate Account to support this Contract and other variable annuity
contracts and certificates. Assets may be put in the Separate Account for other
purposes, but not to support contracts or policies other than variable annuities
and variable life insurance.
No. 92UTRA Page 5
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The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to these contracts will
not be chargeable with liabilities arising out of any other business we conduct.
We may transfer assets of an Investment Division in excess of the reserves and
other liabilities with respect to such Investment Division to another Investment
Division or to our General Account.
The Separate Account consists of "Investment Divisions". Each Investment
Division may invest its assets in a separate class (or series) of shares of a
designated Trust where each class (or series) represents a separate portfolio in
the Trust. We reserve the right to change the designated trust or investment
company or to add designated trusts or investment companies. The Investment
Divisions available are the Stock Division, the Money Market Division, the
Balanced Division and the Aggressive Stock Division. The Guaranteed Interest
Division is not part of the Separate Account but rather is an asset of our
General Account.
We will value the assets of each Investment Division on each business day. A
business day is any day on which we are open, the New York Stock Exchange is
open for trading and there is a sufficient degree of trading in the portfolio
securities in which an Investment Division is invested to materially affect the
Accumulation Unit Value.
We may, at our discretion, invest the assets of any Investment Division in any
investment permitted by applicable law. We may rely conclusively on the opinion
of counsel (including attorneys in our employ) as to what investments we are
permitted by law to make.
We reserve the right to:
(i) cause the registration or deregistration of the Separate Account under the
Investment Company Act of 1940, provided that such registration or
deregistration is in conformity with the requirements of applicable law;
(ii) run the Separate Account under the direction of a committee, and to
discharge such committee at any time;
(iii) restrict or eliminate any voting rights as to the Separate Account;
(iv) operate the Separate Account by making direct investments, or in any other
form;
(v) add Investment Divisions (or sub-divisions of Investment Divisions) to, or
remove Investment Divisions (or sub-divisions of Investment Divisions)
from the Separate Account (the term "Investment Division" in this Contract
shall then refer to any other Investment Division in which the assets, of
a Class of Contracts to which this Contract belongs, were placed);
(vi) combine any two or more Investment Divisions (or sub-divisions of
Investment Divisions) of the Separate Account; and
(vii) withdraw from any Investment Division and to allocate to another
Investment Division assets determined by us to be associated with the
Class of Contracts to which this Contract belongs.
If the exercise of these rights results in a material change in the underlying
investments of an Investment Division, the Owner and you will be notified of
such exercise, as required by law.
Assets of the Investment Divisions attributable to this Contract shall be
subject to a daily charge (after any deductions to provide for applicable tax
charges) at a rate not to exceed 1.49% per year for each of the Stock, Money
Market and Balanced Divisions, and 1.34% per year for the Aggressive Stock
Division, for financial accounting, death benefits, mortality risk, expenses and
expense risk. The charge shall be made in accordance with Subsection (c) of the
Net Investment Factor provision in Section 1.25. The relative proportion of
these charges may be modified. This daily charge, plus the investment advisory
fee charges and direct operating expense charges of the Trust, shall not exceed
a total annual rate of 1.75% of the value of the assets of the Investment
Divisions attributable to this Contract.
SECTION 1.25 SEPARATE ACCOUNT DEFINITIONS.
VALUATION PERIOD. Each business day together with any consecutive preceding
nonbusiness days.
NET INVESTMENT FACTOR: For this Contract, the Net Investment Factor for each
Investment Division of the Separate Account for a Valuation Period is (a)
divided by (b) minus (c), where
(a) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the Valuation Period before giving
effect to any amounts allocated to or withdrawn from the Investment
Division for the Valuation Period. For this purpose, we use the share
value reported to us by the Trust.
No. 92UTRA Page 6
<PAGE>
(b) is the value of the Investment Division's shares of the corresponding
portfolio of the Trust at the end of the preceding Valuation Period (after
any amounts allocated or withdrawn for that Valuation Period).
(c) is the daily Separate Account charge for the expenses of this Contract
times the number of calendar days in the Valuation Period.
The net asset value of the shares of a trust or investment company held by an
Investment Division shall be the value reported to us by that trust or
investment company.
The value of the assets in the Investment Divisions, referred to above, shall be
taken at their fair market value, or where there is no readily available market,
their fair value, as determined in accordance with generally accepted accounting
practices and applicable laws and regulations.
ACCUMULATION UNIT: An "Accumulation Unit" is a unit which is purchased in an
Investment Division where Contributions are invested and which is used in
determining the amount in an Investment Division.
ACCUMULATION UNIT VALUE: An "Accumulation Unit Value" is the dollar value of
each Accumulation Unit in an Investment Division on a given date.
The Accumulation Unit Value for a Valuation Period is the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the Net
Investment Factor for that Investment Division for such Valuation Period.
ANNUITY UNIT: An "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division of the Separate Account under a Variable Annuity Benefit
as defined in Section 3.02.
ANNUITY UNIT VALUE: The "Annuity Unit Value" was fixed at $1.00 on November 1,
1968. On August 27, 1981, the date the first contribution was put into the Stock
Division, the Annuity Unit Value was $1.26 and $1.52 for Contracts with Assumed
Base Rates of Net Investment Return of 5% and 3.5% a year, respectively. The
Annuity Unit Value for any subsequent Valuation Period is the Annuity Unit Value
for the immediately preceding Valuation Period multiplied by the Adjusted Net
Investment Factor for such subsequent Valuation Period. The Adjusted Net
Investment Factor for a Valuation Period is the Net Investment Factor for such
period reduced for each calendar day in such subsequent Valuation Period by the
Net Investment Factor times (i) .00013366, if the Assumed Base Rate of Net
Investment Return is 5%, and (ii) .00009425, if the Assumed Base Rate of Net
Investment Return is 3.5%. The Assumed Base Rate of Net Investment Return shall
be 5%, except in states where the rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The Average Annuity Unit Value for a calendar month
is equal to the average of the Annuity Unit Values for all Valuation Periods
ending in such month.
SECTION 1.26 TRANSACTION DATE. The term "Transaction Date" means the business
day we receive a Contribution or a written contract transaction request
providing the information we need at the Processing Office. In the case of a
transfer request initiated through the use of a touch tone telephone as
described in Section 2.05, the term Transaction Date means the business day the
telephone transaction is received.
SECTION 1.27 TRUST. The term "Trust" means the designated trust or investment
company in which Separate Account assets are invested.
SECTION 1.28 TRUSTEE. The term "Trustee" means the person or persons named as
trustee under a Trusteed Plan and such trustee's successors.
SECTION 1.29 TRUSTEED PLAN. The term "Trusteed Plan" means a plan under which
there is maintained a trust forming a part of the Plan.
- --------------------------------------------------------------------------------
PART II - ANNUITY ACCOUNT VALUE
SECTION 2.01 CONTRIBUTIONS. The Employer or the Trustee as applicable is to make
Contributions from time to time on such dates and in such amounts as determined
by the Employer or the Trustee pursuant to the terms of the Plan. Each
Contribution received by us will, before its allocation under this Contract, be
reduced by the amount of any applicable tax charge, as determined by us.
Contributions will be allocated to the Division in accordance with the
instructions received on the application unless later changed.
Pursuant to the terms of the Plan, we will accept rollover contributions and
transfers made on your behalf from a plan qualified under Section 401(a) of the
Code or from a conduit individual retirement arrangement as described in Section
408 of the Code.
No. 92UTRA Page 7
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SECTION 2.02 SEPARATE ACCOUNT INVESTMENT DIVISIONS. On any Transaction Date when
an amount is allocated to, or withdrawn or transferred from, an Investment
Division, the Annuity Account Value will be credited or charged, as the case may
be, with the number of Accumulation Units determined by dividing said amount by
the Accumulation Unit Value for the appropriate Investment Division for the
Valuation Period which includes that date. The number of units in an Investment
Division on any date is equal to (i) the sum of any Accumulation Units that have
been allocated pursuant to Section 2.04 minus (ii) the sum of any Accumulation
Units that have been withdrawn pursuant to Section 2.07 or 2.10 or transferred
from the Investment Division pursuant to Section 2.05. The amount in an
Investment Division on any date is equal to the product of (i) the number of
Accumulation Units in the Investment Division on that date, and (ii) the
Accumulation Unit Value for the Investment Division for the Valuation Period
which includes that date.
Participation in the Separate Account under the terms of this Contract
terminates on the earliest of (i) Election and Commencement of Annuity Benefits
pursuant to Section 3.03, (ii) receipt of due proof of your death, or (iii)
Termination of this Contract pursuant to Section 2.06.
SECTION 2.03 GUARANTEED INTEREST DIVISION. Any amount allocated to the
Guaranteed Interest Division becomes part of our general assets, which support
the guarantees of this Contract and other contracts.
The amount in the Guaranteed Interest Division at any time is equal to the sum
of all amounts that have been allocated to the Guaranteed Interest Division
pursuant to Section 2.04 plus the amount of any interest accrued but not
allocated, less the sum of all amounts that have been withdrawn from the
Guaranteed Interest Division pursuant to Section 2.07, 2.10 or 2.11 or
transferred from the Guaranteed Interest Division, pursuant to Section 2.05.
Interest is allocated to the Guaranteed Interest Division on a Transaction Date
pursuant to Section 2.04.
We will credit the amount in the Guaranteed Interest Division with interest at
effective annual rates that we determine. For each Class of Contracts we
determine a yearly guaranteed interest rate that will remain in effect
throughout the next year. We guarantee that this yearly guaranteed interest rate
will never be less than 3%.
Participation in the Guaranteed Interest Division under the terms of this
Contract terminates on the earliest of (i) Election and Commencement of Annuity
Benefits pursuant to Section 3.03, (ii) receipt of due proof of your death, or
(iii) Termination of this Contract pursuant to Section 2.06.
SECTION 2.04 ALLOCATION TO DIVISIONS. Each Contribution made pursuant to Section
2.01 is allocated (after deduction of any applicable tax charge) to one or more
Divisions, at the Owner's sole discretion as specified to us in writing.
Allocation percentages must be in whole numbers and the sum must equal 100. The
allocation is made as of the Transaction Date on which we have received both
such Contribution and such direction. Contributions made to an Investment
Division purchase Accumulation Units in that Investment Division, using the
Accumulation Unit Value next computed after the Transaction Date.
Interest determined at the Guaranteed Interest Rate is allocated to the
Guaranteed Interest Division (i) at the end of each Contract Year, (ii) on the
Transaction Date with respect to each transfer from the Division pursuant to
Section 2.05, (iii) on the Transaction Date with respect to each withdrawal
pursuant to Section 2.07, (iv) at the time of application of amounts in the
Guaranteed Interest Division to provide Annuity Benefits pursuant to Section
3.04, (v) upon Termination of this Contract pursuant to Section 2.06, and (vi)
upon your death pursuant to Section 2.11.
SECTION 2.05 TRANSFERS AMONG DIVISIONS. The Owner, unless the Owner transfers to
you the right to transfer all or part of the amounts in the Divisions under this
Contract, upon written request or through the use of a touch tone telephone, may
transfer all or part of the amount in a Division to one or more of the Divisions
as follows: (1) amounts in the Guaranteed Interest Division, Stock Division,
Balanced Division and Aggressive Stock Division may be transferred among such
Divisions; (2) amounts in the Money Market Division may be transferred to other
Divisions. Written authorization for touch tone telephone initiated transfers is
only required when authorization for telephone transfers is requested. Upon
advance written notice to the Owner, we reserve the right to discontinue the
acceptance of transfer requests through the use of a touch tone telephone. All
transfers will be effective on the Transaction Date and will be subject to our
rules in effect at the time of transfer. With respect to the Investment
Division, the transfer will be made at the Accumulated Unit Value next computed
after the Transaction Date. No transfers are permitted to the Money Market
Division from the other Divisions.
SECTION 2.06 TERMINATION OF THIS CONTRACT. Subject to any restrictions under the
terms of the Plan, including the spousal consent rules set forth in Section
3.06, the Owner may elect, by written notice, to terminate this Contract. We
will determine the Cash Value under this Contract as of the Transaction Date.
If this Contract is terminated, surrendered or exchanged prior to the Retirement
Date, any applicable tax charges we have paid may be deducted. If we have
previously deducted charges for applicable taxes form Contributions pursuant to
Section 2.01, we will not again deduct charges for the same taxes on
terminations, unless a change in applicable law has occurred with respect to
this Contract.
No. 92UTRA Page 8
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The payment of such Cash Value may be deferred by us in accordance with the
provisions of Section 4.07.
Subject to the terms of the Plan, we reserve the right to pay the Annuity
Account Value under this Contract and terminate this Contract if (i) no
Contributions are made on your behalf during the last three completed Contract
Years, and the Annuity Account Value is less than $500 and (ii) a partial
withdrawal is made that would result in your Annuity Account Value falling below
$500. We also reserve the right to terminate this Contract if no Contributions
have been made and at least 120 days have elapsed since the Contract Date shown
on Page 3 of this Contract.
Upon payment pursuant to this Section or the fourth paragraph of Section 2.07,
the amount in the Divisions and the Annuity Account Value shall be zero. We will
be released from any and all liability for payments with respect to the
Contributions from which the Annuity Account Value arose.
SECTION 2.07 PARTIAL WITHDRAWALS. Subject to any restrictions under the terms of
the Plan, the Owner may elect, by written notice to us, to make a partial
withdrawal form the Divisions. Partial withdrawals are subject to the spousal
consent rules set forth in Section 3.06.
On the Transaction Date, we will pay the lesser of the Cash Value or the amount
of partial withdrawal requested to the person entitled to such payment as
designated in writing by the Owner. The amount paid plus any withdrawal charge
applicable pursuant to Section 2.08 will be withdrawn from the amounts you have
in the Divisions. Unless instructed otherwise, the amount withdrawn (including
any withdrawal charge) will be allocated among the Divisions in proportion to
the amounts that you have in such Divisions.
Upon any partial withdrawal payment, we will be released from any and all
liability payments with respect to the Contributions from which the amounts so
withdrawn arose. Partial withdrawal payments may be deferred by us in accordance
with the provisions of Section 4.07.
We may decline to accept a request for a partial withdrawal of less than $300.
If a withdrawal made under this Section would result in an Annuity Account Value
of less than $500, we will so advise the Owner and you and reserve the right to
pay the Annuity Account Value to the Owner, and terminate this Contract.
SECTION 2.08 CHARGES FOR PARTIAL WITHDRAWALS. There will be no partial
withdrawal charge if the amount of the partial withdrawal requested is not
greater than the Free Corridor Amount defined in Section 2.09.
However, if the amount of partial withdrawal requested is greater than the Free
Corridor Amount, we will (i) first withdraw from such Divisions an amount equal
to the Free Corridor Amount, and (ii) then withdraw an amount equal to the
excess of the amount requested over the Free Corridor Amount, plus a partial
withdrawal charge. Such partial withdrawal charge will be calculated in the
following manner:
(a) Withdrawals of Contributions made on your behalf during the current and
five prior Contract Years will be subject to a charge of 6% of the amount
withdrawn (including such charge).
(b) Withdrawals of other amounts will not be subject to any withdrawal
charges.
For purposes of determining withdrawal charges described in this Section,
amounts withdrawn up to the Free Corridor Amount will not be considered a
withdrawal of any Contributions. Any excess withdrawals, i.e., those pursuant to
items (ii) above, shall be considered withdrawals of Contributions in the order
received, with the older Contributions first.
With respect to partial withdrawals requested by the Owner, there will be no
partial withdrawal charge if you have completed at least five Contract Years and
have attained the age of 59 years and 6 months.
If withdrawals are made from this Contract prior to the Retirement Date, any
applicable tax charges we have paid with respect to this Contract may be
deducted. If we have previously deducted charges for applicable taxes from
Contributions pursuant to Section 2.01, we will not again deduct charges for the
same taxes on withdrawals, unless a change in applicable law has occurred with
respect to this Contract.
SECTION 2.09 FREE CORRIDOR AMOUNT. The term "Free Corridor Amount", means an
amount equal to the excess, if any, of (i) 10% of the sum of the Annuity Account
Value of the Stock Division, Balanced Division, Aggressive Stock Division, Money
Market Division and the Guaranteed Interest Division on the Transaction Date
over (ii) cumulative prior withdrawals made pursuant to Section 2.07 in the
current Contract Year.
SECTION 2.10 ANNUAL ADMINISTRATIVE CHARGE. As of the last day of each Contract
Year, if the Annual Account Value on that date is less than $10,000, we will
withdraw from the Divisions an Annual Administrative Charge equal to the lesser
of $30 or 2% of the Annuity Account Value including the amount of any
withdrawals pursuant to Section 2.07 during that Contract Year. The charge will
be allocated among the Divisions in proportion to the amounts in the Divisions.
No. 92UTRA Page 9
<PAGE>
If the Annuity Account Value is less than $10,000 on (a) the date of the
application of the Annuity Account Value or Cash Value pursuant to Section 3.03
or (b) the date of Termination of this Contract pursuant to Section 2.06 or
2.11, we will prorate the Annual Administrative Charge applicable to the
completed portion of the Current Contract Year and withdraw such amount in lieu
of the full Annual Administrative Charge described in this Section for the
applicable part of that Contract Year.
If the Annuity Account Value is $10,000 or greater at the end of a Contract
Year, the Annual Administrative Charge is zero.
SECTION 2.11 DEATH BENEFIT. If the Owner reports to us, or if we otherwise
ascertain, upon receipt of due proof of your death, and subject to the terms of
the Plan, including the spousal survivor benefit rules set forth in Section 3.06
pay to the beneficiary designated to receive such payment, pursuant to Section
4.04 of this Contract, the amount of death benefit payable.
If the beneficiary under this Contract is the Trustee, the Trustee may, subject
to the terms of the Plan, change the beneficiary within 31 days after we receive
due proof of your death. The change shall be made in the same manner and subject
to the same provisions as apply to a change of beneficiary during your lifetime.
If the Trustee changes the beneficiary of this Contract after your death
according to the terms of the Plan, the Trustee may elect an Annuity Benefit on
any annuity form offered by us, subject to our rules then in effect, for the
benefit of your beneficiary. Your beneficiary may not revoke or change any
election made by the Trustee. If the Trustee does not make an election, your
beneficiary may make such election for your beneficiary's own benefit. Any
election for an Annuity Benefit must meet the minimum distribution requirements
under the Code as described in Section 3.05.
The amount of the death benefit is equal to the greater of (i) the Annuity
Account Value and (ii) the minimum death benefit. Such minimum death benefit is
the sum of all of your Contributions made pursuant to Section 2.01 (before
reduction for any applicable tax charge) less an adjustment for any withdrawals
made pursuant to Section 2.07. Any such withdrawal will reduce the minimum death
benefit (as adjusted by any previous such withdrawal) by an amount which is the
in the same proportion as the amount that was withdrawn is to the Annuity
Account Value.
Upon payment of the death benefit, the amount in the Divisions and the Annuity
Account Value shall be zero. We will be released from any and all liability for
payments with respect to the Contributions from which the Annuity Account Value
arose.
- -------------------------------------------------------------------------------
PART III - ANNUITY BENEFITS
SECTION 3.01 FIXED ANNUITY BENEFIT. The term "Fixed Annuity Benefit" means an
Annuity Benefit under which the monthly payments are payable in a specified
dollar amount.
The amount of each monthly payment under any Fixed Annuity Benefit provided
under the terms of this Contract with respect to a payee is the amount provided
with respect to the payee pursuant to Section 3.03.
SECTION 3.02 VARIABLE ANNUITY BENEFIT. The term "Variable Annuity Benefit" means
an Annuity Benefit under which the dollar amount of the monthly payments with
respect to a payee may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
Such Variable Annuity Benefit will increase if the average daily rate of
investment return in the Stock Division is equivalent to more than 6.75% or
5.25% annually and will decrease if it is equivalent to less than 6.75% or 5.25%
annually, depending on whether the applicable assumed base rate of Net
Investment Return referred to in Section 1.25 is 5% or 3.5%, respectively. The
daily rate of investment return is before deduction of charges, as described in
Section 1.24, not to exceed the maximum rate of 1.75% after any deductions to
provide for any applicable tax charges. These charges include a daily charge for
financial accounting, death benefits, mortality risk, expenses and expense risk,
plus the investment advisory fee charges and direct operating expense charges of
the Trust.
The amount of the first, second and third payments under any Variable Annuity
Benefit provided under the terms of this Contract with respect to a payee is the
monthly amount provided with respect to a payee pursuant to the fifth paragraph
of Section 3.04. The amount of the fourth and each subsequent payment under a
Variable Annuity Benefit will be equal to the number of Annuity Units with
respect to such benefit, multiplied by the Average Annuity Unit Value for the
second calendar month immediately preceding the due date of the payment. The
number of Annuity Units with respect to a benefit is the number determined by
dividing the amount of the first monthly payment by the Annuity Unit Value for
the Valuation Period which includes the due date of the first monthly payment.
(As described in Section 3.05, we will notify the payee how each Variable
Annuity Payment is determined.)
No. 92UTRA Page 10
<PAGE>
SECTION 3.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS. Subject to the terms
of the Plan including the spousal consent and survivor rules designated in
Section 3.06, as of your Retirement Date, provided you are then living, the
Annuity Account Value shall be applied to provide the Normal Form of Annuity
Benefit, unless the Owner elects (i) to receive the Cash Value in a single sum
or (ii) to apply the Annuity Account Value or Cash Value, whichever is
applicable pursuant to the first paragraph of Section 3.04, to provide an
Annuity Benefit on any other annuity form offered by us, or one of our
affiliated or subsidiary life insurance companies, or (iii) to take partial
withdrawals in amounts and at times as required by the minimum distribution
rules of Section 401(a)(9) of the Code and applicable Treasury Regulations,
pursuant to Sections 2.07 and 3.05, subject to our rules then in effect and any
other applicable requirements under the Code.
We will provide notice and election forms to the Owner not more than six months
before your Retirement Date.
If the Owner elects to terminate this Contract pursuant to Section 2.06, an
election may be made to receive an Annuity Benefit in lieu of the Cash Value.
We will have the right to require the Owner to furnish pertinent information to
provide an Annuity Benefit, and will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness thereof.
The applicable Annuity Benefit will be provided pursuant to Sections 3.04 and
3.05. We may offer annuity forms other than the Life Annuity Form or Joint and
Survivor Life Annuity Form issued by us or one of our affiliated or subsidiary
life insurance companies.
We will make payment of the Annuity Benefit, Partial Withdrawals or Cash Value
to a payee as the Owner designates in writing.
SECTION 3.04 AMOUNT OF ANNUITY BENEFITS. If, pursuant to the first or third
paragraph of Section 3.03, an election is made to have an Annuity Benefit in
lieu of the Cash Value, the amount applied to provide the Annuity Benefit paid
will be (i) the Annuity Account Value if the annuity form elected involves life
contingencies or (ii) the Cash Value if the payments under the annuity form
elected does not involve life contingencies.
The amount applied to provide an Annuity Benefit may be reduced by any
applicable tax charge on annuity considerations, as we determine. If we have
previously deducted any applicable tax charges from Contributions as provided in
Section 2.01, we will not again deduct charges for the same taxes before
application to provide an Annuity Benefit, unless a change in applicable law has
occurred with respect to this Contract. The balance shall purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments
shown below or (ii) our current individual annuity rates for payment of
proceeds, whichever rates would provide a larger benefit with respect to the
payee. Regardless of the basis used, your Contract will be governed by our
supplementary contract then in effect.
The amount to be applied to provide an Annuity Benefit will, in addition to any
tax charge reduction, be reduced by an administrative charge. The amount of such
charge will be determined from time to time in accordance with our general
practices applicable on a uniform basis to all contracts of the same type as
this Contract.
After the application of an amount to provide an Annuity Benefit the amounts in
the Divisions and the Annuity Account Value shall be zero.
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of this
Contract, as indicated, on either the Life Annuity Form or the Joint and
Survivor Life Annuity Form (with 100% of the amount of your payment continued to
your spouse). The amounts of income provided under the Fixed Annuity Benefit
payable on the Life Annuity Form is based on 3.5% interest and the 1983
Individual Annuity Mortality Table "a" adjusted to a unisex basis based on a
50-50 split of males and females. The amounts of income initially provided under
the Variable Annuity Benefit payable on the Life Annuity Form is based on a
50-50 split of males and females and an Assumed Base Rate of Net Investment
Return of 3.5% or 5%, whichever applies pursuant to Section 1.25.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us on 3.5% interest and the 1983 Individual Annuity Mortality
Table "a" adjusted to a unisex basis based on a 50-50 split of males and females
at age zero if such annuity form provides for a Fixed Annuity Benefit, and on
the projected 1983 Basic Table "a" adjusted to a unisex basis based on a 50-50
split of males and females at age zero and an Assumed Base Rate of Net
Investment Income Return of 5% or 3.5%, whichever applies pursuant to Section
1.25, if such annuity form provides for a Variable Annuity Benefit.
SECTION 3.05 PAYMENT OF ANNUITY BENEFITS. Your entire interest in this Contract
will be distributed or begin to be distributed, no later than the first day of
April following the calendar year in which you attain age 70 years and 6 months
("Required Beginning Date"). Your entire interest may be distributed, as you
elect, over (a) the life, or the lives of you and or your designated
beneficiary, or (b) a period certain not extending beyond your life expectancy,
or the joint and last survivor expectancy of you and your designated
beneficiary. Distributions
No. 92UTRA Page 11
<PAGE>
must be made in periodic payments at intervals of no longer than one year. In
addition, payments must be either nonincreasing or they may increase only as
provided in Q&A F-3 of Section 1.401(a)(9)-1 of the proposed Treasury
Regulations, or any successor Regulation thereto.
All distributions made hereunder shall be made in accordance with the
requirements of Section 401(a)(9) of the Code, including the incidental death
benefit requirements of Section 401(a)(9)(G) of the Code, and applicable
Treasury Regulations, including the minimum distribution incidental benefit
requirement of Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
Notwithstanding the above paragraphs and the following paragraphs of this
Section 3.05, while any distribution shall be subject to such requirements of
the Code and regulations, any distribution shall also be subject to the terms of
this Contract. This is, the forms of distribution shall be those which are made
available by us at the time of your election.
For purposes of determining the "period certain" referred to in the first
paragraph of this Section, life expectancy is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless you otherwise elect prior to the time distributions are required to
begin, those life expectancies shall be recalculated annually. Such election
shall be irrevocable and shall apply to all subsequent years. The life
expectancy of a non-spouse beneficiary may not be recalculated. Instead, life
expectancy will be calculated using the attained age of such beneficiary during
the calendar year in which you attain age 70 years and 6 months, and payments
for subsequent years shall be calculated based on such life expectancy reduced
by one for each calendar year which has elapsed since the calendar year life
expectancy was first calculated.
If you die after distribution of your interest described in this Contract has
begun, the remaining portion of such interest will continue to be distributed at
least as rapidly as under the method of distribution being used prior to your
death.
If you die before distribution of your interest begins, distribution of your
entire interest shall be completed no later than December 31 of the calendar
year containing the fifth anniversary of your death, except to the extent that
an election is made to receive death benefit distributions in accordance with
(1) or (2) below:
(1) If your interest is payable to a designated beneficiary, then your entire
interest may be distributed over the life of, or over a period certain not
greater than the life expectancy of, the designated beneficiary. Such
distributions must commence on or before December 31 of the calendar year
immediately following the calendar year of your death.
(2) If the designated beneficiary is your surviving spouse, the date
distributions that are required to begin in accordance with (1) above shall
not be earlier than the later of (A) December 31 of the calendar year
immediately following the calendar year of your death or (B) December 31 of
the calendar year in which you would have attained age 70 years and 6
months.
For purposes of determining the "period certain" referred to in the
immediately preceding paragraph, life expectancy is computed by use of the
expected return multiples in Tables V and VI of Treasury Regulation Section
1.72-9. For purposes of distributions beginning after your death, unless
otherwise elected by the surviving spouse by the time distributions are
required to begin, life expectancies shall be recalculated annually. Such
election shall be irrevocable by the surviving spouse and shall apply to
all subsequent years. In the case of any other designated beneficiary, life
expectancies shall be calculated using the attained age of such beneficiary
during the calendar year in which distributions are required to begin
pursuant to this Section, and payments for any subsequent calendar year
shall be calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy was
first calculated.
Distributions under this Section are considered to have begun if distributions
are made because you have reached your Required Beginning Date or if prior to
the Required Beginning Date distributions irrevocably commence to you over a
period permitted and in an annuity form acceptable under Section 1.401(a)(9)-1
of the Proposed Treasury Regulations or any successor Regulation thereto.
Evidence of each payee's survival must be furnished to us either by personal
endorsement of the check drawn for payment or by other means satisfactory to us.
If a benefit payment under the terms of this Contract was based on information
that is subsequently found to be incorrect, such benefit will not be
invalidated, but an adjustment on the basis of the correct information will be
made in the amount of the benefit payments, or any amount used to provide the
benefit, or any combination thereof. Overpayments by us will be charged against
and underpayments will be added to any payment thereafter falling due under the
terms of this Contract with respect to the payee, affecting as many such
payments as are necessary to correct the overpayment or underpayment. Our
liability, with respect to a payee, is limited to the correct information and
the actual amounts used to provide the benefits then in force with respect to
the payee under this Contract.
No. 92UTRA Page 12
<PAGE>
If we receive evidence satisfactory to us that (i) a payee entitled to receive
any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii) another person or an
institution is then maintaining or has custody of such payee, and (iii) no
guardian, committee or other representative of the estate of such payee has been
appointed, we may, unless the Plan provides to the contrary, make the payments
(in the case of a minor, at a rate not exceeding $200 a month) to such other
person or institution, and will thereupon be fully discharged from all liability
with respect thereto.
If a variable annuity form made available by us provides for a period certain,
such as 120 or 180 months, and thereafter during the remaining lifetime of one
person, or of at least one of two persons, a payee for payments thereunder may
elect, without the concurrence of any other person, to receive the commuted
value of any remaining payments, provided no person upon whose life the income
depends is surviving.
Pursuant to Section 3.03, upon election by the Owner, on your behalf and if
applicable, your spouse, of an annuity form providing payments for a period
certain, such Owner may designate (with the right to change such designation, in
accordance with the terms of the Plan) a payee to receive any payments that may
become due after the death of the person or persons upon whose life or lives the
income may depend.
The payee may designate (with the right to change such designation and without
the concurrence of any other person, unless the Plan provides to the contrary) a
person or persons to receive any payments or installments payable after such
payee's death, if the absence of such a designation would result in a single sum
payment to such payee's estate in accordance with the following paragraph.
If at the death of any payee there is no designated person living entitled to
receive any remaining payments or installments, we will pay in a single sum to
such payee's estate the commuted value of any remaining payments or
installments.
The commuted value of any such remaining payments will be determined on the
basis of compound interest at the rate utilized in the actuarial rate basis
applicable in determining the annuity amount.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, we may pay the amount to the payee in a single
sum instead of applying it under the annuity form elected pursuant to Section
3.03.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person or persons upon whose life the income
depends or the end of the certain period, whichever is later.
We will require satisfactory evidence of the age of any person upon whose life
an annuity form depends.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based On Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT
AND SURVIVOR LIFE ANNUITY FORM
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Age 60 61 62 63 64 65 66 67 68 69 70
- -----------------------------------------------------------------------------------------------------------------------
60 4.52 4.56 4.60 4.64 4.68 4.71 4.75 4.79 4.82 4.85 4.88
61 4.60 4.65 4.69 4.73 4.77 4.81 4.85 4.89 4.92 4.96
62 4.69 4.74 4.78 4.83 4.87 4.92 4.96 5.00 5.03
63 4.79 4.84 4.89 4.93 4.98 5.03 5.07 5.11
64 4.89 4.94 5.00 5.05 5.10 5.14 5.19
65 5.00 5.06 5.11 5.17 5.22 5.27
66 5.12 5.18 5.24 5.29 5.35
67 5.24 5.31 5.37 5.43
68 5.37 5.44 5.51
69 5.52 5.59
70 5.67
</TABLE>
ANNUITY BENEFIT PAYABLE
ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
---------------------------------------------
VARIABLE ANNUITY BENEFIT PAYABLE
IF ASSUMED BASE
RATE OF NET INVESTMENT RETURN IS
AGE 3.5% 5.0%
---------------------------------------------
60 5.27 6.16
61 5.39 6.28
62 5.52 6.41
63 5.66 6.55
64 5.81 6.70
65 5.97 6.86
66 6.15 7.03
67 6.33 7.21
68 6.53 7.41
69 6.74 7.62
70 6.97 7.85
No. 92UTRA Page 13
<PAGE>
We will, with respect to each payment under a Variable Annuity Benefit, notify
the payee of the number of Annuity Unites and the Average Annuity Unit Value
used in determining the amount of each variable payment. Such notice will be
mailed with each payment.
Any election, change, revocation or designation shall be made, and will take
effect on the Transaction Date, in the same manner as a change of beneficiary,
as described in Section 4.04.
If a commutation right under an Annuity Benefit is exercised, we may defer
payment in accordance with Section 4.07.
SECTION 3.06 SPECIAL ANNUITY AND SPOUSAL CONSENT PROVISIONS. If you are married,
your interest in this Contract shall be paid in the Normal Form joint and
survivor annuity, and if you are unmarried, your interest shall be paid in the
Normal Form life annuity, unless you elect otherwise as described in this
Section. If you are married and die before payment of your interest has
commenced, your interest shall be paid to your surviving spouse in the form of a
life annuity, unless at the time of your death there was a contrary election
made pursuant to this Section. The foregoing notwithstanding, your surviving
spouse may elect, before payment is to commence, to have payment made in any
form permitted under the terms of this Contract.
You may elect, at any time within the 90 consecutive day period before the first
day of the first period for which your interest is paid as an annuity or in any
other form, not to have your interest paid in the Normal Form, in which case it
shall be paid in any other form elected under the terms of this Contract. If
such interest is to be paid to your spouse upon your death, you may elect,
during the period beginning on the first day of the plan year of the Plan in
which you attain age 35 (or, if you separate from service prior to that plan
year, beginning on the date of separation) and ending with your death, for a
beneficiary other than your spouse to receive payment of the value of your
interest. In addition, if you will not yet attain age 35 by the end of any
current plan year, you may make a special qualified election to designate a
beneficiary other than your spouse to receive payment of the value of your
interest. Such special qualified election shall be effective for the period
beginning on the date of such election and ending on the first day of the plan
year in which you attain age 35. Amounts payable in accordance with this Section
will be automatically reinstated as of the first day of the plan year in which
you attain age 35 unless a new election designating a beneficiary other than the
spouse is made in accordance with the requirements of this Section.
Any election described in the foregoing paragraph must be consented to by your
spouse in writing before a notary public or a representative of the Plan, unless
you can prove that there is no spouse or that the spouse cannot be located.
Also, if you have become legally separated from your spouse or have been
abandoned (within the meaning of the local law) and have a court order to such
effect, spousal consent is not required unless a qualified domestic relations
order provides otherwise. Your election must designate a specific beneficiary
(including any class of beneficiaries or any contingent beneficiaries) that may
not be changed without further consent of the spouse, unless the spouse's
consent expressly permits designation by you without further consent of the
spouse. The spouse's consent under this Section shall acknowledge the effect of
the election. In addition, the spouse's consent (or the establishment that the
consent of the spouse may not be obtained) shall only be valid with respect to
such spouse. Your waiver of the Normal Form joint and survivor annuity shall not
be effective unless the election designates a form of benefit payment which may
not be changed without spousal consent (or the spouse expressly permits
designations by you without any further spousal consent). A consent that permits
designations by you without any requirement of further consent by such spouse
must acknowledge that the spouse has the right to limit consent to a specific
beneficiary, and a specific form of benefit where applicable, and that the
spouse voluntarily elects to relinquish either or both of such rights. If you
make an election under this Section you may revoke that election, without
spousal consent, at any time before the first day of the first period for which
an amount is paid as an annuity or in any other form.
The provision requiring spousal consent in this Section shall also apply with
regard to your election to terminate this Contract or make partial withdrawals
pursuant to Sections 2.06 and 2.07 and with respect to a beneficiary designation
set forth in Section 4.04.
If the Annuity Account Value applied to provide the spousal benefits on the date
payment is to commence is in the aggregate less than $3,500, we may choose to
make payment in a single sum rather than in the form of a Qualified Joint and
Survivor Annuity or Life Annuity as described herein. Upon any payment made
pursuant to this Section, we will be released from any and all liability for
payment with respect to the Contributions made for you.
- -------------------------------------------------------------------------------
PART IV - GENERAL PROVISIONS
Section 4.01 CONTRACT. This Contract constitutes the entire Contract between the
parties and the terms of this Contract alone will govern with respect to our
rights and obligations. A copy of the application is incorporated in and made a
part of this Contract.
No. 92UTRA Page 14
<PAGE>
This Contract may not be modified, nor may any of our rights or requirements be
waived, except in writing and by our authorized officer. The terms of this
Contract may be changed by amendment or replacement upon agreement between the
Owner and us without the consent of any other person provided that such change
does not reduce any Annuity Benefit.
SECTION 4.02 STATUTORY COMPLIANCE. We reserve the right to amend the terms of
this Contract without the consent of any other person in order to comply with
applicable laws and regulations. Such right shall include, but not be limited
to, the right to conform this Contract to reflect changes in the Code,
applicable Treasury Regulations, or regulations or published rulings of the
Internal Revenue Service so that this Contract will continue to be an Annuity
under a qualified plan.
SECTION 4.03 ASSIGNMENTS AND NONTRANSFERABILITY. No interest of yours or a
beneficiary under this Contract may be transferred to any person other than us
upon the surrender of this Contract. Except as permitted under Section
401(a)(13) of the Code, no right or interest of you or any other payee or
beneficiary in this Contract shall be (a) assignable; (b) subject to any lien;
or (c) liable for, or subject to, any obligation or liability of any person. The
preceding sentence shall not apply to any assignment, transfer or attachment
pursuant to a qualified domestic relations order, as defined in Section 414(p)
of the Code.
SECTION 4.04 BENEFICIARY. The Owner, as of the Contract Date, is to provide us
with an initial designation of your beneficiary entitled to receive any death
benefit payable with respect to you pursuant to Section 2.11. Subject to the
plan and the Spousal Consent and Survivor rules of Section 3.06, such
designation may be changed from time to time during your lifetime and while this
Contract is in force. If the Beneficiary is the Trustee, the Trustee will have
the right within 31 days of the day we receive due proof of your death and
pursuant to the provisions of the Plan, to change your beneficiary entitled to
receive the death benefits.
If the Trustee is not the beneficiary, the beneficiary will be your spouse as
provided in Section 3.06 of this Contract.
SECTION 4.05 DISQUALIFICATION. In the event that the Plan fails to qualify as a
Plan under Section 401(a) of the Code and applicable Treasury Regulations, we
reserve the right, upon receiving notice of such fact, to transfer the Annuity
Account Value under this Contract to another annuity contract issued by us on
your life, or one of our affiliated or subsidiary life insurance companies, or
to terminate this Contract and pay to the Owner the Annuity Account Value less
deduction for applicable taxes, solely at our option.
In the event that this Contract fails to qualify as an Annuity as described in
Section 1.02, we will have the right, upon receiving notice of such fact before
your Retirement Date, to terminate this Contract and pay at the direction of the
Owner the Annuity Account Value less a deduction for the appropriate part
attributable to the Owner of any Federal income tax payable which would not have
been payable if you had an Annuity.
SECTION 4.06 FUTURE CONTRIBUTIONS. Upon written notice to the Owner, we reserve
the right at our sole discretion to limit contributions to this Contract.
SECTION 4.07 DEFERMENT. Application of proceeds to a variable annuity, payment
of a death benefit and payment of any portion of your Annuity Account Value
(less any applicable withdrawal charge) will be made within seven days after the
Transaction Date. Payments or applications of proceeds from the Investment
Divisions can be deferred for any period during which (1) the New York Stock
Exchange has been closed or trading on it is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities Exchange
Commission, by order, permits us to defer payments in order to protect persons
with interests in the Investment Divisions. We can defer payments of any portion
of your Annuity Account Value in the Guaranteed Interest Division for up to six
months while you are living.
SECTION 4.08 ANNUAL NOTICE. At the end of each Contract Year, we will furnish
the Owner and you with a notice showing the following:
(1) The amount in the Guaranteed Interest Division,
(2) the total number of Accumulation Units in the Stock Division, Balanced
Division, Aggressive Stock Division and Money Market Division,
(3) the Accumulated Unit Values,
(4) the amount in the Stock Division, Balanced Division, Aggressive Stock
Division and Money Market Division,
(5) the Cash Value and
(6) the amount of the death benefit.
No. 92UTRA Page 15
<PAGE>
We will also furnish any other reports required by the Code or applicable
Treasury Regulations.
After your Retirement Date, we will notify you of the number of Annuity Units
and the Average Annuity Unit Value used in determining the amount of each
Variable Annuity Benefit payment, if any.
SECTION 4.09 TRUSTEE'S RESPONSIBILITY. The Trustee shall hold this Contract on
your behalf and your beneficiaries as an asset of the Trust, unless this
Contract is distributed to you pursuant to the terms of the Plan. The Trustee
shall be responsible for transferring all payments made under this Contract to
you and your beneficiaries in accordance with the terms of the Plan and the
applicable provisions of the Code.
We shall make no payment hereunder without written instructions from the
Trustee, and we shall be fully discharged of any liability therefor, to the
extent such payments are made to and at the direction of the Trustee.
SECTION 4.10 AGE. If your age has been misstated, any benefits will be those
which would have been purchased at the correct age. Any overpayments or
underpayments made by us will be charged or credited with interest at the rate
of 6% per year, and such interest will be deducted from or added to benefits
falling due thereafter.
No. 92UTRA Page 16
<PAGE>
- --------------------------------------------------------------------------------
APPLICATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
PROCESSING OFFICE: INDIVIDUAL ANNUITY CENTER, P.O. BOX 2996,
NEW YORK, NEW YORK 10116-2996
QUALIFIED VARIABLE ANNUITY CONTRACT APPLICATION FOR:
EQUITABLE'S INDIVIDUAL QUALIFIED DEFERRED VARIABLE ANNUITY
- --------------------------------------------------------------------------------
TYPE OF PURCHASE (Complete One Plan Only)
A. |_| TSA PUBLIC SCHOOL (GV-PS-I)
B. |_| TSA 501(C)(3) ORGANIZATION (GV-501-I)
C. |_| TSA University (GV-PS-U-I)
D. |_| IRA Individual (Including IRA to IRA transfers) (GV-IRA 4971)
E. |_| IRA Unit Billed (Including IRA to IRA transfers) (GV-IRA 4971)
F. |_| IRA QUALIFIED PLAN ROLLOVER-- (QP IRA) (Distribution from a Qualified
Plan) (GV-IRA 4971-71)
G. |_| EDC (Public Employee Deferred Compensation) (GV-EDC 4991)
H. |_| EDC (Tax Exempt Organization) (GV-EDC 4991-SU-080)
I. |X| SEP (Simplified Employee Pension) (GV-SEP 4981)
J. |_| SARSEP (Salary Reduction SEP) _________________________________________
K. |_| CORPORATE TRUSTEED (GV-CORP 4941-41)
L. |_| KEOGH/HR-10 TRUSTEE (GV HR-10 4911-11)
(trustee owned)
M. |_| KEOGH/HR-10 (GV-HR-10 4911)
(not trustee owned) (issued to existing units only)
- --------------------------------------------------------------------------------
DO NOT COMPLETE THIS SECTION IF 1.D OR 1.F CHECKED ABOVE
2. EMPLOYER/PLAN NAME
|A|B|C|_|C|O|M|P|A|N|Y|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
3. |_| EXISTING UNIT NO. |_|_|_|_|_|_|-|_|_|_|
|x| NEW UNIT |0|0|0|1|2|3|-|4|5|6|
(FOR NEW UNIT BILLED IRA, EDC, TSA, SEP, SARSEP, OR TRUSTEED PLANS. FORM
983-135B IS REQUIRED)
- --------------------------------------------------------------------------------
4. PROPOSED ANNUITANT Print name to appear on Contract.
|J|O|H|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|D|O|E|_|_|_|_|_|
FIRST MIDDLE INITIAL LAST
A. |X| MR. |_| MRS. |_| MS. |_| OTHER ____
B. Date of Birth: Year 1954 Month JANUARY Day 27
---- ------- --
C. Age at Nearest Birthday: 38 D. |X| Male |_| Female
----
E. Annuitant's Mailing Address: F. State of Residence: N.J.
----
No., St. |1|7|_|E|L|M|_|S|T|R|E|E|T|_|_|_|_|_|_|_|_|_|_|_|_|
City |A|N|Y|T|O|W|N|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |U|S| Zip Code |0|2|0|0|0|-|0|0|0|1|
G. Telephone Number (101) 222 - 3456 |X| Home |_| Work
H. Social Security No. (Required): |1|2|3|-|4|5|-|6|7|8|9|
I. Are you associated with or employed by a member of National
Association of Securities Dealers, Inc.(NASD)? |_| Yes |X| No
5. OWNER (Print Name) -- If Trusteed or EDC Plan Print Name of Owner, for all
other Markets Print Name of Annuitant.
JOHN DOE
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a. Title ____________________________________________________________________
6. RETIREMENT AGE 65
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7. BENEFICIARY -- Include FULL NAME and RELATIONSHIP to Annuitant. (For Death
Benefit upon Annuitant's death before Retirement Date.) (BENEFICIARY MUST
BE THE OWNER FOR EDC PURCHASES AND FOR MOST TRUSTEED PLANS.)
JANE DOE - WIFE
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8. CONTRIBUTION ALLOCATION
Guaranteed Interest Division 20%
-----
Stock Division 20%
-----
Money Market Division 20%
-----
Balanced Division 20%
-----
Aggressive Stock Division 20%
-----
(PERCENTAGES IN WHOLE NUMBERS) Total 100%
9. CONTRIBUTIONS (NOT REQUIRED FOR 1.F)
A. Reminder Notice (Billing) Required |_| Yes |X| No
IF YES, COMPLETE B-C-D-E
B. REMINDER DATE Required for Individual IRA or otherwise must agree
with existing unit or attached 983-135B. MONTH _________ DAY __________
C. REMINDER FREQUENCY
|_| Annual |_| Semi-Annual
|_| Quarterly |_| Monthly
Available for TSA, EDC, SARSEP AND CORPORATE TRUSTEED AND UNIT BILLED IRA
ONLY:
|_| Semi-Monthly |_| Bi-Weekly
D. REMINDER AMOUNT $_________________________________
E. BILLING MONTHS TO BE EXCLUDED - TSA ONLY
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10.EXPECTED FIRST CONTRACT YEAR
Contribution. $1000
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IF AN ADVANCED BILLING AND/OR CONTRACT DATE ARE REQUESTED, COMPLETE #9B
AND #12.
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(FOR PROCESSING OFFICE USE)
Unit Name ___________________________ Reminder Date ___________________________
Cert. or App# _______________________ Amendment Required_______________________
EDC Emp. Add. _______________________ Emp. Fed. ID# ___________________________
Frequency ___________________________ Contract Date ___________________________
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Receipt Date Batch # Inquiry # Processor
- --------------------------------------------------------------------------------
180-1000
<PAGE>
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10. Did you receive the Separate Account Prospectus? |X| Yes |_| No
Date shown on Prospectus January 1, 1992
----------------------------------------------------
Date of any supplement to Prospectus _______________________________________
11. Items (a) through (f) are to be answered by the annuitant. We are
required by the NASD to ask these questions.
(a) Name of Employer: ABC Company
------------------------------------------------------
(b) Address of Employer:
10 Main Street
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Anytown, NJ
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(c) Occupation Sales
-------------------------------------------------------------
(d) Assuming the contract applied for will be issued, will any existing
insurance or annuity be replaced or changed (or has it been)?
| | Yes |X| No
(e) Estimated Family Annual Income $100,000
----------------------------------------
(f) Estimated Net Worth $250,000
-----------------------------------------------------
(g) Investment Objective: |_| Income |X| Income & Growth
|_| Aggressive Growth |_| Growth |_| Safety of Principal
12. SPECIAL INSTRUCTIONS
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13. Amount paid with this form: $1000
(If a check is submitted with this request, no advanced Contract Date is
permitted.) BACKDATING IS NOT PERMITTED.
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the certificate is not issued. The Contract Date
will be the date of receipt by Equitable of this application, properly signed
and completed, and Contribution at Equitable's Processing Office.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGREEMENT
All information and statements furnished in this application are true and
complete to the best of my knowledge and belief. I understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations.
IT IS UNDERSTOOD THAT THE ANNUITY ACCOUNT VALUE ATTRIBUTABLE TO ALLOCATIONS TO
THE INVESTMENT DIVISIONS OF THE SEPARATE ACCOUNT AND VARIABLE ANNUITY BENEFIT
PAYMENTS MAY INCREASE OR DECREASE AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
UNDER THE PENALTIES OF PERJURY I (WE) CERTIFY THAT THE SOCIAL SECURITY NUMBER(S)
OR TAX IDENTIFICATION NUMBER(S) PROVIDED ON THIS FORM IS (ARE) TRUE, CORRECT AND
COMPLETE.
- --------------------------------------------------------------------------------
LAWS IN YOUR STATE MAY MAKE IT A CRIME TO FILL OUT AN INSURANCE OR ANNUITY
APPLICATION WITH INFORMATION YOU KNOW IS FALSE OR TO LEAVE OUT MATERIAL FACTS.
- --------------------------------------------------------------------------------
X__________________________________ Date_______ City __________ State __________
Signature of Annuitant
X__________________________________ Date_______ City __________ State __________
Signature of Authorized Individual (REQUIRED FOR EDC AND
TRUSTEED) OR OWNER
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
AGENT'S SECTION
Will any existing insurance or annuity be replaced or changed (or has it been),
assuming the Contract will be issued? | | Yes | | No
|_| I (we) certify that a prospectus for the Contract has been given to the
proposed Annuitant and that no written sales materials other than those approved
by Equitable have been used.
EQUI-VEST issues must adequately reflect the commission interest of all Agents
on previous contracts.
- --------------------------------------------------------------------------------
Print Agent's Name(s) Initial of Agent Agent Agency District Agent's
(Service Agent first) Last Name Number % Code Manager Code Signature
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FOR AGENCY COMPLIANCE FILE: INITIALS OF AGENCY EQS___ Date ___ District EQS ___
Date ____
- --------------------------------------------------------------------------------
(FOR ASU USE)
ASU Code and App. No. __________________________________________________________
ASU Rec'd. _____________________________________________________________________
Date to Proc. Off. ________________________________________________ Campaign |_|
Agent(s) shown above is Equity Qualified and is licensed in the state where the
request is signed. Above Agent information verified by ASM (Registered Rep)
- --------------------------------------------------------------------------------
Application reviewed by ________________________________________________________
- --------------------------------------------------------------------------------
180-1000
[EQUITABLE LOGO] THE EQUITABLE LIFE ASSURANCE SOCIETY OF
THE UNITED STATES
GROUP ANNUITY CONTRACT NO.: AC 0000
- -------------------------------------------------------------------------------
CONTRACT HOLDER: UNITED STATES TRUST COMPANY OF NEW YORK
REGISTER DATE: March 1, 1993
-------------
This Contract is issued in consideration of payment of the Contributions under
the terms of this Contract.
The terms of this Contract, which include the following pages, are agreed to by
the Contract Holder and The Equitable Life Assurance Society of the United
States ("Equitable").
FOR THE CONTRACT HOLDER FOR EQUITABLE
By_____________________ By /s/ Richard H. Jenrette
Chairman of the Board
Title__________________
By /s/ Joseph J. Melone
Dated__________________ President and Chief Executive
Officer
By /s/ Molly K. Heines
Vice President and Secretary
At New York, New York
By
Assistant Registrar
Date of Issue __________________
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN PART II OF THIS CONTRACT.
THE AMOUNT OF ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, DEPENDING ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION AS DESCRIBED IN SECTION 7.02 OF THIS CONTRACT.
INTEREST RATE GUARANTEE - FIXED AND VARIABLE
ANNUITY BENEFITS - NON-PARTICIPATING
No. 11993AC-C
<PAGE>
TABLE OF CONTENTS
Page
Part I - DEFINITIONS 3
Part II - DIVISIONS 5
Part III - CONTRIBUTIONS AND TRANSFERS 7
PART IV - WITHDRAWALS AND TERMINATIONS 8
Part V - DEATH BENEFITS 9
Part VI - CHARGES 11
Part VII - ANNUITY BENEFITS 12
Part VIII - GENERAL PROVISIONS 15
Appendix A-IRA
Part I - APPLICABLE TO IRA CERTIFICATES
for both periodic and rollover Contributions 20
Part II - APPLICABLE TO IRA CERTIFICATES 24
for rollover Contributions only
Appendix A - SEP 28
Applicable to SEP CERTIFICATES
Appendix B-IRA - APPLICABLE TO IRA CERTIFICATES 32
Appendix B-SEP APPLICABLE TO SEP CERTIFICATES 34
No.11993AC-C Page 2
<PAGE>
PART I - DEFINITIONS
SECTION 1.01 ACCUMULATION UNIT
"Accumulation Unit" means a unit which is purchased in an Investment Division of
the Separate Account.
SECTION 1.02 ACCUMULATION UNIT VALUE
"Accumulation Unit Value" means the dollar value of each Accumulation Unit in an
Investment Division of the Separate Account on a given date.
SECTION 1.03 ANNUITANT.
"Annuitant" means a person who has been enrolled under the Contract or any
successor annuitant. A person will become enrolled upon receipt by Equitable of
an application form made available by Equitable and completed in a manner
satisfactory to Equitable. A certificate will be issued with respect to each
Annuitant, in a form defined in Section 1.15, Section 1.16, or Section 1.20,
whichever applies to the Annuitant pursuant to the application form, setting
forth the benefits applicable to the Annuitant and the rights which the Owner
may exercise.
SECTION 1.04 ANNUITY ACCOUNT VALUE.
"Annuity Account Value" means the sum of the amounts held with respect to an
Owner or Annuitant, as set forth in the applicable certificate, in the
Guaranteed Interest Division and the Investment Divisions of the Separate
Account.
SECTION 1.05 ANNUITY BENEFIT.
"Annuity Benefit" means a benefit payable by Equitable pursuant to Part VII of
this Contract.
SECTION 1.06 BUSINESS DAY.
A "business day" is any day on which Equitable is open and the New York Stock
Exchange is open for trading.
SECTION 1.07 CASH VALUE.
"Cash Value" means an amount equal to the Annuity Account Value, less any
withdrawal charge that applies as described in Section 6.01.
SECTION 1.08 CODE.
"Code" means the Internal Revenue Code of 1986, as now or hereafter amended, or
any corresponding provisions of prior or subsequent United States revenue laws.
SECTION 1.09 CONTRACT.
"Contract" means this Contract. Attached to and part of this Contract are:
Appendix A-IRA and Appendix B-IRA applicable to Annuitants to whom an IRA
Certificate is issued; and Appendix A-SEP and Appendix B-SEP applicable to
Annuitants to whom a SEP Certificate is issued. The application form completed
for such Annuitant as described in Section 1.03 will specify the type of
Certificate issued (IRA, Non-Qualified, or SEP Certificate, defined in Section
1.15, 1.16, and 1.20, respectively) and this determines if any Appendix A and B
apply. If a Non-Qualified Certificate applies to the Annuitant, then the terms
of this Contract without any Appendix A and B will apply.
No.11993AC-C Page 3
<PAGE>
SECTION 1.10 CONTRACT DATE.
"Contract Date" means, with respect to an Annuitant, the date on which the
Annuitant is enrolled under the Contract. That is, it is the date Equitable has
received both a Contribution and the completed application form which is
supplied by Equitable.
SECTION 1.11 CONTRACT YEAR.
"Contract Year" means, with respect to an Annuitant, the twelve month period
starting on (i) the Contract Date and (ii) each anniversary of the Contract
Date, unless Equitable agrees to another period.
SECTION 1.12 CONTRIBUTION.
"Contribution" means a payment made to Equitable as described in Section 3.01.
SECTION 1.13 DIVISION.
"Division" means the Guaranteed Interest Division or an Investment Division of
the Separate Account. Each Division is described in Part II of this Contract.
SECTION 1.14 GUARANTEED INTEREST RATE.
"Guaranteed Interest Rate" means the effective annual rates at which interest
accrues on the amount in the Guaranteed Interest Division. An initial rate to
apply with respect to each new Annuitant is determined by Equitable. Section
2.01 describes the determination of the rates to apply thereafter.
SECTION 1.15 IRA CERTIFICATE.
"IRA Certificate" means a certificate issued by Equitable with respect to an
Annuitant who is enrolled under this Contract pursuant to an individual
retirement annuity program meeting the requirements of Section 408(b) of the
Code.
SECTION 1.16 NON-QUALIFIED CERTIFICATE.
"Non-Qualified Certificate" means a certificate issued by Equitable with respect
to an Annuitant who is enrolled under this Contract but not pursuant to a
"qualified plan." A qualified plan for this purpose is one which receives
favorable tax treatment under Section 401, 403 or 408, and other applicable
provisions, of the Code.
SECTION 1.17 OWNER.
"Owner" means the person who owns a certificate, as named on the certificate, or
any successor owner.
SECTION 1.18 PROCESSING OFFICE.
"Processing Office" means Equitable Individual Annuity Center, P.O. Box 2996,
New York, New York 10116, or such other location as Equitable may designate upon
advance written notice to each Owner.
SECTION 1.19 RETIREMENT DATE
"Retirement Date" means the date on which the Annuitant attains the retirement
age shown on the application form submitted for the Annuitant and on the
applicable certificate.
No.11993AC-C Page 4
<PAGE>
Before the Retirement Date the Owner may elect to change such Date to another
Retirement Date, which may be any date after the election is filed (other than
the 29th, 30th or 31st day of any month). Any election for such change must be
made in writing by the Owner and will not take effect until received and
accepted by Equitable at its Processing Office.
No Retirement Date will be later than the first of the month which follows the
date the Annuitant attains Equitable's maximum maturity age (currently age 85)
or, if later, the tenth anniversary of the Contract Date, unless changed by
Equitable to conform to any law which applies.
SECTION 1.20 SEP CERTIFICATE.
"SEP Certificate" means a certificate issued by Equitable with respect to an
Annuitant who is enrolled under this Contract in order to provide an Annuity
Benefit in accordance with a written program constituting a "Simplified Employee
Pension," as described in Section 408(k) of the Code. Such a program as adopted
by the Annuitant's employer may provide for salary reductions, whereby the
employer makes tax-deferred contributions for the Annuitant in lieu of salary,
and must meet the requirements of Section 408(b) of the Code.
SECTION 1.21 SEPARATE ACCOUNT.
"Separate Account" means Separate Account A which is organized as a unit
investment trust, a type of investment company.
SECTION 1.22 TRANSACTION DATE.
The Transaction Date is the Business Day Equitable receives at the Processing
Office a Contribution or a transaction request providing the information
Equitable needs. Transaction requests must be in a form acceptable to Equitable.
Equitable's Business Day ends at 4:00 P.M., Eastern Time.
PART II - DIVISIONS
SECTION 2.01 GUARANTEED INTEREST DIVISION.
Any amount held in the Guaranteed Interest Division, as described in Section
3.01, becomes part of Equitable's general assets, which support the guarantees
of this Contract and other contracts.
The amount in such Division at any time is equal to the sum of:
o all amounts that have been allocated or transferred to such Division,
plus
o the amount of any interest accrued but not allocated, less
o the sum of all amounts that have been withdrawn or transferred from
such Division.
Equitable will credit the amount held in the Guaranteed Interest Division with
interest at effective annual rates that Equitable sets. Each calendar year
Equitable also sets a yearly Guaranteed Interest Rate that will remain in effect
throughout the next calendar year. Equitable guarantees that this yearly rate
will never be less than 3%.
SECTION 2.02 SEPARATE ACCOUNT.
Equitable established the Separate Account and maintains it in accordance with
the laws of New York State. Realized and unrealized gains and losses from the
assets of the Separate Account are credited to or charged against it without
regard to Equitable's other income, gains or losses. Assets are put in the
Separate Account to support this Contract and other variable annuity contracts
and
No.11993AC-C Page 5
<PAGE>
certificates. Assets may be put in the Separate Account for other purposes, but
not to support contracts or policies other than variable annuities and variable
life insurance.
The Separate Account consists of "Investment Divisions." (The Guaranteed
Interest Division is not a part of Separate Account A.) Each Investment Division
may invest its assets in a separate class (or series) of shares of a designated
trust or investment company where each class (or series) represents a separate
portfolio in the designated trust or investment company.
The Investment Divisions are:
(a) "Type A" Investment Divisions:
the Stock Division;
the Balanced Division;
the Aggressive Stock Division;
the Global Division;
the Growth Investors Division; and
(b) "Type B" Investment Divisions:
the Conservative Investors Division;
the Money Market Division.
Divisions may be added or removed as described in Section 8.03.
Equitable will value the assets of each Investment Division on each Business
Day.
The assets of the Separate Account are Equitable's property. The portion of
Equitable's assets equal to the reserves and other liabilities with respect to
certificates issued under the Contract will not be chargeable with liabilities
which arise out of any other business Equitable conducts. Equitable may transfer
assets of an Investment Division in excess of the reserves and other liabilities
with respect to such Division to another Investment Division or to Equitable's
General Account.
Equitable may, at its discretion, invest the assets of any Investment Division
in any investment which applicable law permits. Equitable may rely conclusively
on the opinion of counsel (including counsel in its employ) as to what
investments Equitable may make as law permits.
SECTION 2.03 SEPARATE ACCOUNT INVESTMENT DIVISIONS.
The amount in an Investment Division with respect to an Annuitant at any time is
equal to the number of Accumulation Units in that Division with respect to the
Annuitant multiplied by the Division's Accumulation Unit Value at that time.
Amounts allocated or transferred to an Investment Division are used to purchase
Accumulation Units of that Division. Units are redeemed when amounts are
deducted, transferred or withdrawn.
The number of Accumulation Units in an Investment Division at any time is equal
to the number of Accumulation Units purchased minus the number of Units redeemed
in that Division up to that time. The number of Accumulation Units purchased or
redeemed in a transaction is equal to the dollar amount of the transaction
divided by the Division's Accumulation Unit Value for that Transaction Date.
Equitable determines Accumulation Unit Values for each Investment Division for
each Valuation Period. A Valuation Period is each Business Day together with any
consecutive preceding non-business days. For example, for each Monday which is a
Business Day, the preceding Saturday and Sunday will be included to equal a
three-day Valuation Period.
The Accumulation Unit Value of an Investment Division for any Valuation Period
is equal to the Accumulation Unit Value for that Division on the immediately
preceding Valuation Period
No.11993AC-C Page 6
<PAGE>
multiplied by the Net Investment Factor for that Division for the current
Valuation Period. The Net Investment Factor for a Valuation Period is (a)
divided by (b) minus (c), where
(a) is the value of the Investment Division's shares of the related portfolio
of the specified trust or investment company at the end of the Valuation
Period (before taking into account any amounts allocated to or withdrawn
from the Investment Division for the Valuation Period and after deduction
of investment advisory fees and direct operating expenses of the specified
trust or investment company; for this purpose, Equitable uses the share
value reported to Equitable by the specified trust or investment company);
(b) is the value of the Investment Division's shares of the related portfolio
of the specified trust or investment company at the end of the preceding
Valuation Period (taking into account any amounts allocated or withdrawn
for that Valuation Period);
(c) is the daily Separate Account charge (see Section 6.04) for the expenses of
the Contract, times the number of calendar days in the Valuation Period,
plus any charge for taxes or amounts set aside as a reserve for taxes.
PART III - CONTRIBUTIONS AND TRANSFERS
SECTION 3.01 CONTRIBUTIONS.
On the application form for coverage under this Contract the Owner chooses which
Divisions will be available under the certificate issued to the Owner (the
Guaranteed Interest Division is always available). Once this choice is made, the
Owner may only allocate Contributions to, or transfer among, these Divisions.
The Owner may add or subtract Divisions after the certificate is issued to the
Owner by sending Equitable a written request, but Equitable has the right to
decline such request.
On the application form the Owner will also choose how to allocate Contributions
among the Divisions chosen. The Owner need not allocate Contributions to each
Division chosen. The Owner may change the allocation instruction at any time by
sending Equitable the proper form. Allocation percentages must be in whole
number (no fractions) and must equal 100%.
Each Contribution is allocated (after deduction of any tax charge that applies)
in accordance with the allocation instructions in effect. Contributions made to
an Investment Division purchase Accumulation Units in that Division, using the
Accumulation Unit Value next computed after the Transaction Date.
Equitable has the right not to accept an initial Contribution of less than
$1,000 or, for payroll deductions and any subsequent Contributions, a
Contribution of less than $50. Equitable may refuse to accept any Contribution
if such Annuitant's current age at last birthday was 80 or greater.
In addition, Equitable may refuse to accept a Contribution if the total
Contributions made with respect to an Annuitant would exceed the following:
(a) $500,000, if the Annuitant's current age at last birthday is 75 or less.
(b) $250,000, if the Annuitant's current age at last birthday is 76-79.
Equitable reserves the right to further limit Contributions as described in
Section 8.03.
SECTION 3.02 TRANSFERS AMONG DIVISIONS.
The Owner may upon written request transfer all or part of the amount held with
respect to an Annuitant in a Division to one or more of the Divisions. A
transfer request must be made in a form acceptable to Equitable. All transfers
will be made on the Transaction Date and will be subject to
No.11993AC-C Page 7
<PAGE>
Equitable's rules in effect at the time of transfer. With respect to the
Investment Divisions, the transfers will be made at the Accumulation Unit Value
next computed after the Transaction Date.
If the Owner has elected any combination of Divisions that include a Type B
Investment Division described in Section 2.02 (whether or not amounts are
actually held with respect to the Annuitant in any such Division), then the
maximum amount which may be transferred in any Contract Year from the Guaranteed
Interest Division to any other Division is:
(a) 25% of the amount the Owner has in the Guaranteed Interest Division on the
last day of the prior Contract Year of, if greater,
(b) the total of all amounts transferred at the Owner's request from the
Guaranteed Interest Division to any of the other Divisions in the prior
Contract Year.
A request for a transfer of less than $300 will not be accepted, unless the
Annuity Account Value is less than $300. Equitable reserves the right, pursuant
to the terms of Section 8.03, to impose further restrictions on transfers.
PART IV WITHDRAWALS AND TERMINATION
SECTION 4.01 PARTIAL WITHDRAWALS.
The Owner may make a written request to Equitable for a partial withdrawal from
the Divisions before the Retirement Date and while the Annuitant is alive.
On the Transaction Date, Equitable will pay the amount of partial withdrawal
requested by the Owner or, if less, the Cash Value. The amount to be paid plus
any withdrawal charge applicable pursuant to Section 6.01 will be withdrawn on a
pro-rata basis from the amounts held with respect to the Annuitant in the
Divisions, unless the Owner elects to otherwise.
A request for a partial withdrawal of less and $300 will not be accepted, unless
the Annuity Account Value is less than $300. Also, if a withdrawal made under
this Section would result in an Annuity Account Value of less than $500,
Equitable will so advise the Owner and reserve the right to pay the Annuity
Account Value to the Owner, and participation under this Contract will be
terminated.
SECTION 4.02 TERMINATION OF COVERAGE UNDER THE CONTRACT.
On or before the Annuitant's Retirement Date, and while the Annuitant is alive,
the Owner may elect to terminate coverage under the Contract. Such election must
be made in writing. Equitable will determine the Cash Value to be paid as of the
Transaction Date. No withdrawal charge will be applied if the amount withdrawn
is used to provide a life annuity issued by Equitable or one of its affiliated
or subsidiary life insurance companies.
If coverage is terminated before the Retirement Date, a charge for taxes that
Equitable has paid may be deducted. If Equitable has previously deducted charges
for taxes from Contributions as described in Section 3.01, Equitable will not
again deduct charges for the same taxes on termination.
Before an Annuitant's Retirement Date, Equitable has the right to pay the Cash
Value under the Contract and terminate coverage if (i) no Contributions are made
with respect to the Annuitant during the last three completed Contract Years, or
(ii) after three Contract Years the Annuity Account Value is less than $500.
Equitable also has the right to terminate coverage under the Contract if no
Contributions have been made with respect to the Annuitant within 120 days of
the Contract Date.
No.11993AC-C Page 8
<PAGE>
PART V - DEATH BENEFITS
SECTION 5.01 DEATH BENEFIT.
Unless the Owner's surviving spouse becomes the Annuitant under Section 5.02,
upon receipt by Equitable of due proof that the Annuitant has died, Equitable
will pay a death benefit to the beneficiary named under Section 5.03.
The amount of the death benefit under this Contract is equal to (a) the Annuity
Account Value or, if more, (b) the minimum death benefit. The minimum death
benefit is the sum of all Contributions made on behalf of the Annuitant (less
any tax charge that applies), less the total of any withdrawals made pursuant to
Section 4.01.
Equitable will pay the death benefit to the beneficiary in the form of an
Annuity Benefit if the Owner has chosen the form described in the last paragraph
of Section 5.03. Also pursuant to the last paragraph of Section 5.03, if no such
choice has been made at the Annuitant's death, Equitable will pay the death
benefit to the beneficiary in a single sum.
However, the beneficiary may instead choose before Equitable pays the death
benefit to apply the death benefit to provide (i) a form of an Annuity Benefit,
(ii) any other form of benefit payment, or (iii) any combination of forms of
benefit payment. All such choices will be subject to the forms Equitable then
offers, Equitable's rules then in effect, and any requirements under the Code.
SECTION 5.02 OWNER DEATH DISTRIBUTION RULES.
Upon the death of the Owner before the Retirement Date:
(i) If the Owner is both the Owner and the Annuitant, Equitable will pay the
death benefit described in Section 5.01. If the Owner is married as of
the date of the Owner's death before the Retirement Date, and the
Owner's spouse is the named beneficiary, the spouse will be the
successor owner and Annuitant and no death benefit will be payable at
such time.
(ii) If the Owner is not the Annuitant, the named beneficiary (successor
owner) described in Section 5.03 will succeed as Owner, even if any
co-owner exists. The entire amount in the Divisions subject to any
withdrawal charges which apply must be fully paid by the fifth
anniversary of the Owner's death, or payments must begin within one year
after the Owner's death as a life annuity or installment option, for a
period of not longer than the life expectancy of the named beneficiary.
If the Owner has not elected a form of payment as described in the last
paragraph of Section 5.03, and if the beneficiary named under Section
5.03 does not elect to receive the payments required by this Section in
a form of Annuity Benefit, a series of partial withdrawals, or any
payout option acceptable under Section 72(s) of the Code and Equitable's
rules at the time, Equitable will pay the amount in the Divisions in a
single sum to the beneficiary on the fifth anniversary of the Owner's
death. Subject to Equitable's rules at the time of payment and the
completion of an application, the beneficiary may elect to apply such a
single sum payment to a new nonqualified annuity contract to be owned by
the beneficiary. However, if the named beneficiary is the Owner's
spouse, full payments of amounts under the Contract must be made no
later than five years after the spouse's death.
If payments under an Annuity Benefit had begun before the Owner's death, such
payments will continue to be made over a period not longer than the period for
under the Annuity Benefit elected.
If the Annuitant dies before the entire amount in the Divisions is paid,
Equitable will pay the death benefit as described in Section 5.01.
No.11993AC-C Page 9
<PAGE>
SECTION 5.03 BENEFICIARY - SUCCESSOR OWNER
On the application, the Owner is to provide Equitable with the name of the
beneficiary who is to receive any death benefit payable on the death of the
Annuitant. Unless the Owner directs otherwise, the person named as beneficiary
on the death of the Annuitant will also be the person who succeeds as Owner on
the Owner's death while the Annuitant is alive as described in Section 5.02. The
Owner may change any beneficiary or successor Owner from time to time during the
Annuitant's lifetime and while coverage under the Contract is in force. Any such
change must be made in writing in a form Equitable accepts. A change will, upon
receipt at the Processing Office, take effect as of the date the written form
was signed, whether or not the Owner is living on the date of receipt. Equitable
will not be liable as to any payment it may make before it receives any such
change.
On the application the Owner may name a person to be primary beneficiary on the
death of the Annuitant under Section 5.01 and another person to be a contingent
beneficiary if the primary beneficiary dies before the Annuitant. Also, if the
Owner is not the Annuitant, on the application the Owner may name a person to be
the successor Owner and to receive the amounts required to be paid under Section
5.02 (on the Owner's death before the Retirement Date while coverage under the
Contract is in force) and another person to be successor Owner, if the first
choice as successor Owner dies before the Owner.
Unless the Owner directs otherwise, if the Owner has named two or more persons
as death benefit beneficiary, the beneficiary will be the named person or
persons who survive the Annuitant. If more than one survive they will share
equally.
If the Owner is not the Annuitant and the Owner has named two or more persons to
succeed as Owner, the successor Owner will be the named person or persons who
survive the Owner, unless the Owner directs otherwise. If more than one survive
they will share equally, unless the Owner directs otherwise.
If the Owner is the Annuitant, any part of a death benefit payable as described
in Section 5.01 for which there is no named beneficiary living at the Owner's
death will be payable in a single sum to the Owner's children who survive the
Owner. The payments will be made in equal shares, or should none survive, then
to the Owner's estate.
If the Owner is not the Annuitant, and if no beneficiary named to receive the
death benefit payable as described in Section 5.01 survives the Annuitant,
Equitable will pay such death benefit in a single sum to the Owner. In the event
of the Owner's death after the Annuitant, but before Equitable pays such death
benefit, the death benefit will be payable in a single sum to the children who
survive the Owner, in equal shares, or should none survive, to the Owner's
estate.
If Owner is not the Annuitant and the Owner dies before the Retirement Date
while the Annuitant is still living, and if no person named as successor Owner
to receive the amounts required to be paid as described in Section 5.02 is
living at the Owner's death, such beneficiary will be presumed to be, in this
order, (i) the Owner's surviving spouse, (ii) the Annuitant, (iii) the children
who survive the Owner, in equal shares, or (iv) the Owner's estate.
If the Owner so chooses in writing, any amount which would otherwise be payable
to a beneficiary in a single sum may be applied to provide an Annuity Benefit,
on a form of annuity chosen by the Owner, subject to Equitable's rules then in
effect. If at the Owner's death there is no choice in effect, the beneficiary
may make such a choice.
No. 11993AC-C Page 10
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PART VI -- CHARGES
SECTION 6.01 WITHDRAWAL CHARGES.
If the amount of a withdrawal made under Section 4.01 or a termination payment
made under Section 4.02 is more than the Free Corridor Amount (defined below),
Equitable will (a) first withdraw from such Divisions an amount equal to the
Free Corridor Amount, and (b) then withdraw an amount equal to the excess of the
amount requested over the Free Corridor Amount, plus a withdrawal charge, if one
applies.
The withdrawal charge is equal to 6% of the withdrawn Contributions which have
been made on behalf of the Annuitant in the current and five prior Contract
Years.
For the purposes of this Section, amounts withdrawn up to the Free Corridor
Amount will not be deemed a withdrawal of any Contributions. Also, any excess
withdrawals (those pursuant to item (b) in the first paragraph of this Section)
will be deemed withdrawals of older Contributions first and more recent
Contributions next; that is, Contributions will be withdrawn in the order they
were made.
"Free Corridor Amount" means an amount equal to 10% of the Annuity Account Value
on the Transaction Date, minus the total of all prior withdrawals made as
described in Section 4.01 in the current Contract Year.
However, a withdrawal charge will not apply upon any of these events:
(i) the Annuitant dies and a death benefit is payable to the beneficiary, or
(ii) the receipt by Equitable of a properly completed election from providing
for the Annuity Account Value to be used to buy a life annuity as
described in Section 7.03, or
(iii) the Annuitant has qualified to receive Social Security disability benefits
as certified by the Social Security Administration, or
(iv) the Owner gives Equitable proof which Equitable accepts that the
Annuitant's life expectancy is six months or less (such proof must
include, but is not limited to, certification by a licensed physician), or
(v) the Annuitant has been confined to a nursing home for more than 90 days as
verified by a licensed physician. A nursing home for this purpose means
one which is (a) approved by Medicare as a provider of skilled nursing
care service, or (b) licensed as a skilled nursing home by the state or
territory in which it is located (it must be within the United States,
Puerto Rico, U.S. Virgin Islands, or Guam) and meets all of the following:
o its main function is to provide skilled, intermediate, or custodial
nursing care;
o it provides continuous room and board to three or more persons;
o it is supervised by a registered nurse or licensed practical nurse;
o it keeps daily medical records of each patient;
o it controls and records all medications dispensed; and
o its primary service is other than to provide housing for residents.
Moreover, the withdrawal charge will be reduced if needed in order to comply
with any state law that applies.
No.11993AC-C Page 11
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However, a charge for taxes that Equitable has paid may be deducted from amounts
withdrawn. If Equitable has previously deducted charges for taxes from
Contributions as described in Section 3.01, Equitable will not again deduct
charges for the same taxes on withdrawals.
SECTION 6.02 CHARGE ON TRANSFER TO THIRD PARTY OR EXCHANGE
If the Owner requests that Equitable make a direct transfer to a third party of
amounts under the Contract, or requests that the certificate issued to the Owner
be exchanged for another contract or certificate issued by another insurance
company, Equitable will impose both a withdrawal charge as described in Section
6.01 (if any) and a charge of $25 for any such direct transfer or exchange.
SECTION 6.03 ADMINISTRATIVE CHARGE.
As of the last Business Day of each calendar quarter, Equitable will deduct an
administrative charge from the Annuity Account Value. Such charge is equal to:
(i) for each calendar quarter during the first two Contract Years, $6.00 or,
if less, 0.50% of the Annuity Account Value plus the amount of any
withdrawals made pursuant to Section 4.01 during such quarter;
(ii) for each calendar quarter during each Contract Year after the second
Year, $6.00.
The charge will be allocated among the Divisions in proportion to the amounts
held with respect to the Annuitant in the Divisions.
SECTION 6.04 DAILY SEPARATE ACCOUNT CHARGE.
Assets of the Investment Divisions will be subject to a daily asset charge. This
daily charge is for financial accounting and for death benefits, mortality risk,
expenses and expense risk which Equitable assumes. Such charge will be applied
after any deductions to provide for taxes and will be at a rate not to exceed a
guaranteed annual rate of 1.35%. Equitable reserves the right to charge less on
a current basis. The charge will be made pursuant to item (c) of "Net Investment
Factor" as defined in Section 2.03.
PART VII - ANNUITY BENEFITS
SECTION 7.01 FIXED ANNUITY BENEFIT.
A "Fixed Annuity Benefit" is an Annuity Benefit under which the periodic
payments are paid in a stated dollar amount.
Payment under a Fixed Annuity Benefit are typically made monthly. An election
may be made by the Owner to have the Annuity Benefit paid at other intervals,
such as every three months, six months, or twelve months, instead of monthly,
subject to Equitable's rules at the time of election. This election may be made
at the time the Annuity Benefit form as described in Section 7.03 is elected; in
that event, all references in this Contract to monthly payments will, with
respect to the Annuity Benefit of such an Annuitant to whom the election
applies, be deemed to mean payments at the frequency elected.
SECTION 7.02 VARIABLE ANNUITY BENEFIT.
A "Variable Annuity Benefit" is an Annuity Benefit under which the dollar amount
of the monthly payments may increase or decrease depending on the investment
experience of the Stock Division of the Separate Account.
The following terms apply to the determination of Variable Annuity Benefit
payments:
No.11993AC-C Page 12
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ANNUITY UNIT: The "Annuity Unit" is a unit used in determining amounts payable
from the Stock Division under a Variable Annuity Benefit.
ANNUITY UNIT VALUE: The "Annuity Unit Value" on August 27, 1981, was fixed at
$1.26 and $1.52 for contracts with assumed base rates of net investment return
of 5% and 3.5% a year, respectively. For any Valuation Period after such date,
it is the Annuity Unit Value for the immediately preceding Valuation Period
multiplied by the Adjusted Net Investment Factor.
ADJUSTED NET INVESTMENT FACTOR: The "Adjusted Net Investment Factor" for a
Valuation Period is the Net Investment Factor for such Period reduced for each
calendar day in the Valuation Period by:
o .00013366 of the Net Investment Factor if the assumed base rate of net
investment return is 5% a year; or
o .00009425 of the Net Investment factor if the assumed base rate of net
investment return is 3.5% a year.
The assumed base rate of net investment return will be 5%, except in states
where such rate is not permitted by law.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods ending in such month.
A Variable Annuity Benefit will increase if the average daily rate of investment
return in the Stock Division is equivalent to more than 5% or 3.5% annually and
will decrease if it is equivalent to less than 5% or 3.5% annually. The daily
rate of investment return is after deduction of the Daily Separate Account
Charge described in Section 6.04, investment advisory fees and direct operating
expenses related to the Separate Account.
The amount of the first three monthly payments under any Variable Annuity
Benefit provided under this Contract is the amount provided with respect to a
payee pursuant to the first paragraph of the Tables of Guaranteed Annuity
Payments of this Contract. The amount of the fourth and each later monthly
payment under a Variable Annuity Benefit will be equal to the number of Annuity
Units with respect to such benefit, multiplied by the Average Annuity Unit Value
for the second calendar month immediately preceding the due date of the payment.
The number of Annuity Units with respect to a benefit is the number equal to:
(a) the amount of the first monthly payment, divided by
(b) the Annuity Unit Value for the Valuation Period which includes the due date
of the first monthly payment.
Equitable will notify the payee how each Variable Annuity Payment is determined.
SECTION 7.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS.
As of the Annuitant's Retirement Date, provided the Annuitant is then living,
the Annuity Account Value will be applied to provide the Normal Form of Annuity
Benefit (described below). However, the Owner may instead elect (i) to receive
the Cash Value in a single sum, (ii) to apply the Annuity Account Value or Cash
Value, whichever is applicable pursuant to the first paragraph of Section 7.04,
to provide an Annuity Benefit on any other form offered by Equitable or one of
Equitable's affiliated or subsidiary life insurance companies, or (iii) to apply
the Cash Value to provide any other form of benefit payment offered by
Equitable, subject to Equitable's rules then in effect. At the time an Annuity
Benefit is purchased, Equitable will issue a supplementary contract which
reflects the Annuity Benefit terms.
No.11993AC-C Page 13
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Equitable will provide notice and election forms to the Owner not more than six
months before the Retirement Date.
If the Owner chooses to terminate coverage under this Contract pursuant to
Section 4.02 before the Annuitant's Retirement Date, a choice may be made to
receive any form of benefit payment offered by Equitable, subject to Equitable's
rules then in effect and any other applicable requirements under the Code.
Equitable will have the right to require the Owner to furnish any information
Equitable needs to provide an Annuity Benefit and will be fully protected in
relying on such information and need not inquire as to the accuracy or
completeness thereof.
The following annuity forms will apply. Equitable may offer other annuity forms
as available from Equitable or from one of Equitable's affiliated or subsidiary
life insurance companies.
NORMAL FORM. The term "Normal Form" of Annuity Benefit means the Fixed
Annuity Benefit payable on the Life-Period Certain Annuity Form described
below.
LIFE ANNUITY FORM. The "Life Annuity Form" is an annuity providing monthly
payments during the lifetime of the person upon whose life such payments
depend. The payments commence on the date as of which the Life Annuity Form
is purchased and terminate with the last payment due before the death of
such person.
LIFE - PERIOD CERTAIN ANNUITY. The "Life - Period Certain Annuity" is an
annuity payable on the Life Annuity Form, but with 10 years of payments
guaranteed (10 years certain period). That is, if the Annuitant dies before
the certain period has ended, payments will continue to the beneficiary
designated to receive such payments for the balance of the certain period.
JOINT AND SURVIVOR LIFE ANNUITY FORM. The "Joint and Survivor Life Annuity
Form" is an annuity providing monthly payments while either of two persons
upon whose lives such payments depend is living. The monthly amount to be
continued when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
elected. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and terminate with the last payment
due before the death of the survivor.
PERIOD CERTAIN ANNUITY. The "Period Certain Annuity" is an annuity issued
by Equitable which does not involve life contingencies; it provides
payments only for the period specified (usually 5, 10, 15, or 20 years, but
other periods from 3 to 25 years are available from Equitable) when the
annuity is selected. It does not permit any prepayment of the unpaid
principal (that is, the Owner cannot elect to receive part of the payments
as a single sum payment with the remainder paid in monthly annuity
payments).
SECTION 7.04 AMOUNT OF ANNUITY BENEFITS.
If the Owner elects pursuant to the first or third paragraph of Section 7.03 to
have an Annuity Benefit paid in lieu of the Cash Value, the amount applied to
provide the Annuity Benefit will be (i) the Annuity Account Value if the annuity
form elected provides payments for a person's remaining lifetime) or (ii) the
Cash Value if the annuity form elected does not provide such lifetime payments.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any taxes which apply on annuity purchase payments. If Equitable has previously
deducted charges for applicable taxes from Contributions as provided in Section
3.01, Equitable will not again deduct charges for the same taxes before an
Annuity Benefit is provided. The balance will be used to purchase the Annuity
Benefit on the basis of either (i) the Table of Guaranteed Annuity Payments or
(ii) Equitable's then current individual annuity rates, whichever rates would
provide a larger benefit with respect to the
No.11993AC-C Page 14
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payee. Regardless of the basis used, the Annuity Benefit will be governed by
Equitable's supplementary contract which will be issued to the Owner.
After an Annuity Benefit is provided, the amounts held with respect to the
Annuitant in the Divisions and the Annuity Account Value will be zero.
SECTION 7.05 CONDITIONS.
Equitable has the right to ask for proof acceptable to it that the person on
whose life a benefit payment is based is alive when each payment is due.
Equitable will require proof of the age of any person on whose life an annuity
form is based.
If a benefit was based on information that is later found not to be correct,
such benefit will be adjusted on the basis of the correct information. The
adjustment will be made in the amount of the benefit payments, or any amount
used to provide the benefit, or any combination. Overpayments by Equitable will
be charged against future payments. Underpayments will be added to future
payments. Equitable's liability is limited to the correct information and the
actual amounts used to provide the benefits.
If Equitable receives proof satisfactory to it that (i) a payee entitled to
receive any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or is a minor, (ii) another person or an
institution is then maintaining or has custody of such payee, and (iii) no
guardian, committee, or other representative of the estate of such payee has
been appointed, Equitable may make the payments to such other person or
institution. In the case of a minor, the payments will not exceed $200.
Equitable will have no further liability with respect to the payments so made.
With respect to an annuity form providing payments for a period certain, the
Owner may designate (with the right to change such designation) a payee to
receive any payments that may become due after the death of the person or
persons upon whose life or lives the income may depend.
If the amount to be applied hereunder is less than $2,000, or would result in an
initial payment of less than $20, Equitable may pay the amount to the payee in a
single sum instead of applying it under the annuity form elected.
Payments under annuity forms with life contingencies terminate with the last
payment due before the death of the person upon whose life the income depends
or, if later, the end of the period certain.
PART VIII - GENERAL PROVISIONS
SECTION 8.01 CONTRACT.
This Contract constitutes the entire Contract between the parties and the
provisions of this Contract alone will govern with respect to Equitable's rights
and obligations.
This Contract may not be modified, nor may any of Equitable's rights or
requirements be waived, except in writing and by an authorized officer of
Equitable. The terms of this Contract may be changed by amendment or replacement
upon agreement between the Contract Holder and Equitable without the consent of
any other person.
The benefits and values under this Contract are not less than the minimum
benefits required by any statute of the State in which a certificate under this
Contract is delivered.
No.11993AC-C Page 15
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SECTION 8.02 STATUTORY COMPLIANCE.
Equitable reserves the right to amend this Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
will include, but not be limited to, the right to conform this Contract and any
certificate to reflect changes in the Code, applicable Treasury Regulations, or
published rulings of the Internal Revenue Service in order that each such
certificate will continue to be an "annuity" as described in Section 72, or
other Section which applies, of the Code.
SECTION 8.03 RIGHTS TO CHANGE.
Equitable reserves the following rights to change certiain terms of this
Contract:
a. upon at least 90 days' advance notice to the Contract Holder and each
Owner:
(i) to establish or change minimum and maximum amounts which may apply
to Contributions;
(ii) to establish or change restrictions on transfers among Divisions;
(iii) to change any charge described in Section 6.01, 6.02, or 6.03, such
as withdrawal charges and those related to the administrative
functions covered by such charge, at any time to reflect any change
in Equitable's expenses, subject to any law that applies; however,
no such change will result in (A) withdrawal charges which exceed
the amount shown in Section 6.01, (B) charges made under Section
6.02 which exceed $65.00 per direct transfer or exchange, or (C)
charges made under Section 6.03 which exceed $65.00 in any calendar
year;
(vi) to change at any time on and after the fifth anniversary of the
Contract Date, at intervals of not less than five years, the
actuarial basis used in the Tables of Guaranteed Annuity Payments
shown in the attached Appendix; however, no such change will apply
to (A) any Annuity Benefit provided before the change or (B)
Contributions made before such change which are applied to provide a
Fixed Annuity Benefit.
b. with respect to the Separate Account:
(i) to add Investment Divisions (or sub-divisions of Investment
Divisions) to, or to remove Investment Divisions (or sub-divisions)
from, the Separate Account, or to add other separate accounts or
investment funds;
(ii) to combine any two or more Investment Divisions or sub-divisions
thereof;
(iii) to transfer the assets Equitable determines to be the share of the
class of contracts to which this Contract belongs from any
Investment Division to another Investment Division;
(iv) to operate the Separate Account or any Investment Division as a
management investment company under the Investment Company Act of
1940;
(v) to deregister the Separate Account under the Investment Company Act
of 1940, provided that such action conforms with the requirements of
applicable law;
(vi) to restrict or eliminate any voting rights as to the Separate
Account;
(vii) to cause one or more Investment Divisions to invest some or all of
their assets in one or more other trusts or investment companies.
No.11993AC-C Page 16
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If the exercise of these rights results in a material change in the
underlying investments of an Investment Division, the Contract Holder and
each Owner will be notified of such exercise, as required by law.
SECTION 8.04 DEFERMENT.
Application of proceeds to provide a variable annuity, payment of a death
benefit under Section 5.01 or 5.02 and payment of any portion of the Annuity
Account Value (less any applicable withdrawal charge) will be made within seven
days after the Transaction Date. Payments or applications of proceeds from the
Investment Divisions can be deferred for any period during which (1) the New
York Stock Exchange is closed or trading is restricted, (2) sales of securities
or determination of the fair value of an Investment Division's assets is not
reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits Equitable to defer payment in order to
protect persons with interests in the Investment Divisions. Equitable can defer
payment or transfer of any portion of the Annuity Account Value in the
Guaranteed Interest Division for up to six months while the Owner is living.
SECTION 8.05 ANNUAL REPORTS.
At the end of each Contract Year up to and including the Retirement Date,
Equitable will furnish the Owner with a report showing the following:
(1) the dollar amount in the Guaranteed Interest Division,
(2) the total number of Accumulation Units in each Investment Division,
(3) the Accumulation Unit Value,
(4) the dollar amount in each Investment Division,
(5) the Cash Value, and
(6) the amount of the death benefit.
Also, after the Retirement Date, Equitable will notify the Owner of the number
of Annuity Units and the Average Annuity Unit Value used in determining the
amount of each Variable Annuity Benefit payment, if any. Such report will be
mailed with each payment.
SECTION 8.06 CHANGE OF OWNER
While the Annuitant is living, the Owner may name a new Owner in writing in a
form acceptable to Equitable. The change will take effect on the date the Owner
signs the written form, but it will not apply to any payment Equitable makes or
other actions Equitable takes before it receives the form.
SECTION 8.07 ASSIGNMENTS.
The entire interest of anyone covered under this Contract may not be assigned as
collateral or security for a loan. Otherwise, the Owner may assign this Contract
before the Retirement Date but Equitable will not be bound by an assignment
unless it is in writing and Equitable has received it. The Owner's rights and
those of any other persons referred to in this Contract will be subject to the
assignment. Equitable assumes no responsibility for the validity of any
assignment.
No amounts payable under this Contract to a payee other than the Owner may be
assigned, unless permitted herein, by that payee, nor will they be subject to
the claims of creditors or to legal process, except to the extent permitted by
law.
No.11993AC-C Page 17
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SECTION 8.08 AGE AND SEX.
If the age or sex of any person upon whose life an Annuity Benefit depends has
been misstated, any benefits will be those which would have been purchased at
the correct age and sex. Any overpayments or underpayments made by Equitable
will be charged or credited with interest at the rate of 6% per year, and such
interest will be deducted from or added to future payments.
SECTION 8.09 CONTRACT HOLDER'S RESPONSIBILITY.
The sole responsibility of the Contract Holder is to serve as party to this
Contract. The Contract Holder will have no responsibility for Contributions or
any payments or distributions hereunder. Equitable will deal with the Contract
Holder in accordance with the terms and conditions of the trust agreement
pursuant to which the Contract Holder agreed to act as such and in such manner
as the Contract Holder and Equitable agree, without the consent of any other
person.
No.11993AC-C Page 18
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TABLES OF GUARANTEED ANNUITY PAYMENTS
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of the
Contract on the Life Annuity Form with Ten Years Certain. The amount of income
provided under the Fixed Annuity Benefit payable on the Life Annuity Form with
Ten Years Certain is based on 3.0% interest and the 1983 Individual Annuity
Table "a" projected with modified Scale "G". The amounts of income initially
provided under the Variable Annuity Benefit payable on the Life Annuity Form
with Ten Years Certain is based on the 1983 Individual Annuity Table "a"
projected with modified Scale "G" and a modified two year age set back, and on
an Assumed Base Rate of Net Investment Return of 3.5% or 5%, whichever applies
pursuant to Section 7.02.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on the same actuarial basis.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE
LIFE ANNUITY FORM WITH TEN YEARS CERTAIN
(Minimum Monthly Income per $1,000 of Annuity Account Value)
Monthly Income Monthly Income
Age Males Females Age Males Females
--- ----- ------- --- ----- -------
60 4.68 4.22 73 6.25 5.58
61 4.77 4.29 74 6.39 5.72
62 4.87 4.37 75 6.55 5.87
63 4.97 4.46 76 6.70 6.03
64 5.08 4.54 77 6.86 6.19
65 5.19 4.64 78 7.02 6.36
66 5.31 4.73 79 7.18 6.53
67 5.43 4.84 80 7.34 6.70
68 5.56 4.95 81 7.50 6.88
69 5.69 5.06 82 7.66 7.06
70 5.82 5.18 83 7.81 7.23
71 5.96 5.31 84 7.96 7.41
72 6.10 5.44 85 8.11 7.58
No.11993AC-C Page 19
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ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM WITH TEN YEARS CERTAIN IF ASSUMED BASE RATE OF
RETURN IS:
3.5% 5.0%
Age Males Females Males Females
--- ----- ------- ----- -------
60 4.80 4.37 5.69 5.28
61 4.88 4.44 5.77 5.34
62 4.97 4.51 5.86 5.41
63 5.06 4.59 5.94 5.48
64 5.16 4.66 6.04 5.55
65 5.26 4.75 6.14 5.63
66 5.37 4.83 6.24 5.71
67 5.48 4.93 6.34 5.80
68 5.59 5.02 6.46 5.89
69 5.71 5.13 6.57 5.99
70 5.84 5.23 6.69 6.10
No.11993AC-C Page 20
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APPENDIX A-IRA
PART I: APPLICABLE TO IRA CERTIFICATES
under which both periodic Contributions and rollover
Contributions, as described in this Appendix, may be made.
The terms of this Appendix apply with respect to IRA Certificates under which
both periodic and rollover Contributions are to be made. If an IRA Certificate
applies, then it is established for the exclusive benefit of the Annuitant and
the Annuitant's beneficiaries, and the terms below change, or are added to, the
stated Sections of this Contract.
SECTION 1.17 OWNER:
The Owner of an IRA Certificate will be the Annuitant.
SECTION 1.19 RETIREMENT DATE:
Section 1.19 of this Contract defines the "Retirement Date." No initial
choice of Retirement Date may be later than age 70-1/2. Before the
Retirement Date, the Owner may change the Retirement Date to a later age
(up to age 85). In such a case the Owner must withdraw at least the minimum
distributions required under Sections 408(b) and 401(a)(9) of the Code and
Treasury Regulations that apply. See Section 7.03 of this Appendix.
SECTION 3.01 CONTRIBUTIONS:
Section 3.01 states that an initial Contribution of less than $1,000 may
not be accepted. This does not apply to IRA Certificates.
The following will also apply:
Contributions are not fixed and may be made at any time and in any amount
which is at least $50.
No Contributions will be accepted unless they are in cash. Except in the
case of a rollover contribution (as permitted by Sections 402(c),
403(a)(4), 403(b)(8), or 408(d)(3) of the Code), the total of such
Contributions will not exceed $2,000 for any taxable year. Amounts
transferred to the Contract from an individual retirement account or
annuity contract which meets the requirements of Section 408 of the Code
are not subject to the $2,000 limit.
If the Owner makes a Contribution which qualifies as an eligible retirement
plan rollover within the meaning of Section 402(c) or 403(b)(8) of the Code
and the Owner commingles such Contribution with other Contributions, the
Owner may not be able to roll over the eligible retirement plan
Contributions and earnings to another qualified plan or Code Section 403(b)
arrangement at a future date, unless the Code permits.
SECTION 4.02 TERMINATION OF COVERAGE UNDER THE CONTRACT:
In the event that an annuity bought under the Contract fails to qualify as
an annuity which meets the requirements of Section 408(b) of the Code,
Equitable will have the right, upon receipt of notice of such fact, before
the Retirement Date, to terminate coverage under the Contract. In that
case, Equitable will pay the Annuity Account Value less a deduction for the
part which applies to any Federal income tax payable by the Annuitant which
would not have been payable with respect to an annuity which meets such
requirements.
SECTION 5.01 DEATH BENEFIT:
If the Annuitant is married at the Annuitant's death before the Retirement
Date, and the Annuitant's spouse is named as death beneficiary, the
Annuitant's spouse will be treated as
No.11993AC-C Page 21
<PAGE>
the contingent annuitant (Annuitant and Owner) under the Certificate.
Payment of the death benefit is subject to Section 7.03 of this Appendix.
SECTION 5.02 OWNER DEATH DISTRIBUTION RULES:
This Section does not apply to IRA Certificates.
SECTION 5.03 BENEFICIARY - SUCCESSOR OWNER:
Section 5.03 is deleted and the following inserted in its place.
SECTION 5.03 BENEFICIARY
On the application, the Owner gives Equitable the name of the beneficiary
who is to receive any death benefit payable on the Annuitant's death. The
Owner may change the beneficiary from time to time during the Annuitant's
lifetime and while coverage under the Contract is in force. Any such change
must be made in writing in a form Equitable accepts. A change will, upon
receipt at the Processing Office, take effect as of the date the written
form is signed, whether or not the Owner is living on the date of receipt.
Equitable will not be liable as to any payments it made before it receives
any such change.
On the application the Owner may name a person to be primary beneficiary on
the Annuitant's death and another person to be contingent beneficiary if
the primary beneficiary dies before the Annuitant. Unless the Owner directs
otherwise, if the Owner has named two or more persons as beneficiary, the
beneficiary will be the named person or persons who survive the Annuitant.
If more than one survive, they will share equally.
Any part of a death benefit payable as described in Section 5.01 for which
there is no named beneficiary living at the Annuitant's death will be
payable in a single sum to the Annuitant's children who survive the
Annuitant. The payments will be made in equal shares, or should none
survive, then to the Annuitant's estate.
If the Owner so chooses in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an
Annuity Benefit, on the form of annuity chosen by the Owner, subject to
Equitable's rules then in effect. If at the Annuitant's death there is no
choice in effect, the beneficiary may make such a choice.
SECTION 6.01 WITHDRAWAL CHARGES:
Section 6.01 describes the events under which a withdrawal charge will not
apply. The event below is added:
(iv) a request is made for a refund of a Contribution in excess of amounts
allowed to be contributed under Section 219 and/or Section 408 of the
Code within one month of the date on which the Contribution is made.
SECTION 7.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS:
Section 7.03 of this Contract refers to the Normal Form of annuity which is
payable. The Normal Form that applies under an IRA Certificate, in lieu of
the form shown in said Section, is defined as follows:
The term "Normal Form" of an Annuity Benefit means, (i) if the Annuitant
has a living spouse at the Retirement Date, the Fixed Annuity Benefit
payable on the Joint and Survivor Life Annuity Form with the Annuitant's
spouse as the contingent annuitant (with 100% of the Annuitant's monthly
payment amount continued to the Annuitant's spouse), and (ii) if the
Annuitant does not have a living spouse at the Retirement Date, the Fixed
Annuity Benefit payable on the Life Annuity Form.
No.11993AC-C Page 22
<PAGE>
Also, the payment of Annuity Benefits as described in Sectin 7.03 is subject to
the terms which follow, in order to comply with Section 401(a)(9) of the Code
and the Treasury Regulations which apply:
The Annuitant's entire interest in the Certificate will be paid or begin to be
paid no later than the April 1 which follows the calendar year in which the
Annuitant attains age 70-1/2 ("Required Start Date"). The entire interest may be
paid, as the Annuitant chooses, over (a) the Annuitant's life, or the lives of
the Annuitant and the named beneficiary, or (b) a period certain which does not
extend beyond the Annuitant's "life expectancy" (defined below), or the joint
and last survivor expectancy of the Annuitant and the named beneficiary.
Payments must be made in periodic payments at intervals no longer than one year.
Also, payments must be either non-increasing or they may increase only as
provided in Regulations (Q & A F-3 of Proposed Treasury Regulation Section
1.401(a)(9)-1 or successor).
All payments made under the Certificate will be made in accordance with the
requirements of Code Section 401(a)(9), including the incidental death benefit
requirement of the Code (Section 401(a)(9)(G)) and Treasury Regulations which
apply (Proposed Treasury Regulation Section 1.401(a)(9)-2).
For purposes of the above, "life expectancy" is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless the Annuitant otherwise chooses before the time payments must begin, life
expectancies will be recalculated each year. Such choice may never be changed
and will apply to all years which follow. In the case of any named beneficiary
other than the spouse, life expectancies will be calculated using the attained
age of such beneficiary during the calendar year in which the Annuitant attains
age 70 1/2 and payments for any calendar year which follows will be calculated
based on life expectancy reduced by one for each calendar year which has passed
since the calendar year life expectancy was first calculated.
If the Annuitant dies after payment of the Annuitant's entire interest has
begun, the remainder of such interest will continue to be paid at least as
quickly as under the payment method of distribution being used before the
Annuitant's death.
If the Annuitant dies before payment of the Annuitant's entire interest begins,
payment of the Annuitant's entire interest will be completed no later than
December 31 of the calendar year in which the fifth anniversary of the
Annuitant's death occurs, except to the extent that a choice is made to receive
death benefit payments under (a) or (b) below:
(a) If the Annuitant's interest is payable to a beneficiary, then the entire
interest may be paid over the life of, or over a "period certain" not
greater than the life expectancy of, the named beneficiary. Such payments
must commence on or before December 31 of the calendar year which follows
the year of the Annuitant's death.
(b) If the named beneficiary is the Annuitant's surviving spouse, the date
that payments must begin under (a) above will not be earlier than (i)
December 31 of the calendar year which follows the year of the Annuitant's
death or, if later, (ii) December 31 of the calendar year in which the
Annuitant would have reached age 70-1/2.
For purposes of the "period certain" used in (a) above, life expectancy is
computed by use of the expected return multiples in Tables V and VI of Treasury
Regulation Section 1.72-9. For purposes of payments which begin after the
Annuitant's death, unless the surviving spouse chooses otherwise by the time
payments are required to begin, life expectancies will be recalculated each
year. Such choice may never be changed by such spouse and will apply to all
years which follow. In the case of any other named beneficiary, life
expectancies will be calculated using the attained age of such beneficiary
during the calendar year in which payments are required to begin, as described
in this Section, and payments for any subsequent calendar year will be
calculated based on life expectancy reduced by one for each calendar year which
has passed since the calendar year life expectancy was first calculated.
No.11993AC-C Page 23
<PAGE>
Payments under this Section are deemed to have begun if payments are made
because the Annuitant has reached the Required Start Date or if, before the
Required Start Date, payments commence to the Annuitant over a period
permitted and in an annuity form acceptable under proposed Treasury
Regulation 1.401(a)(9)-1 or any successor.
SECTION 8.05 ANNUAL REPORTS:
Section 8.05 lists the reports Equitable will send the Annuitant. Equitable
will also send a report as of the end of each calendar year showing the
status of the annuity and any other reports required by the Code or
Treasury Regulations.
SECTION 8.06 CHANGE OF OWNER:
The Owner may not name a new owner.
SECTION 8.07 ASSIGNMENTS:
In addition to the restrictions on assignments described in section 8.07,
the Annuitant's entire interest under the Certificate is not transferable
except by surrender to Equitable. Further, the Annuitant's interest under
the Certificate is non-forfeitable.
APPENDIX B
In lieu of the Tables of Guaranteed Annuity Payments, the attached
"Appendix B-IRA" applies.
No.11993AC-C Page 24
<PAGE>
APPENDIX A-IRA
PART II: APPLICABLE TO IRA CERTIFICATES
under which only rollover Contributions,
as described in this Appendix, may be made.
The terms of this Appendix apply with respect to IRA Certificates under which
only rollover Contributions are to be made. If an IRA Certificate applies, then
it is established for the exclusive benefit of the Annuitant and the Annuitant's
beneficiaries, and the terms below change, or are added to, the stated Sections
of this Contract.
SECTION 1.17 OWNER:
The Owner of an IRA Certificate will be the Annuitant.
SECTION 1.19 RETIREMENT DATE:
Section 1.19 of this Contract defines the "Retirement Date." No initial
choice of Retirement Date may be later than age 70-1/2. Before the
Retirement Date, the Owner may change the Retirement Date to a later age
(up to age 85). In such a case the Owner must withdraw at least the minimum
distributions required under Sections 408(b) and 401(a)(9) of the Code and
Treasury Regulations that apply. See Section 7.03 of this Appendix.
SECTION 3.01 CONTRIBUTIONS:
The following will also apply:
Equitable will only accept Contributions which qualify as "eligible
rollover amounts" within the meaning of Section 402(c) or 403(b)(8) of the
Code, or "rollover contributions" from a "conduit" individual retirement
account or annuity described in Section 408(d)(3)(A)(ii) and (iii) of the
Code, as the case may be.
If the Owner makes a Contribution which qualifies as an eligible retirement
plan rollover within the meaning of Section 402(c) or 403(b)(8) of the Code
and the Owner commingles such Contribution with other Contributions, the
Owner may not be able to roll over the eligible retirement plan
Contributions and earnings to another qualified plan or Code Section 403(b)
arrangement at a future date, unless the Code permits.
SECTION 4.02 TERMINATION OF COVERAGE UNDER THE CONTRACT:
In the event that an annuity bought under the Contract fails to qualify as
an annuity which meets the requirements of Section 408(b) of the Code,
Equitable will have the right, upon receipt of notice of such fact, before
the Retirement Date, to terminate coverage under the Contract. In that
case, Equitable will pay the Annuity Account Value less a deduction for the
part which applies to any Federal income tax payable by the Annuitant which
would not have been payable with respect to an annuity which meets such
requirements.
SECTION 5.01 DEATH BENEFIT:
If the Annuitant is married at the Annuitant's death before the Retirement
Date, and the Annuitant's spouse is named as death beneficiary, the
Annuitant's spouse will be treated as the contingent annuitant (Annuitant
and Owner) under the Certificate. Payment of the death benefit is subject
to Section 7.03 of this Appendix.
No.11993AC-C Page 25
<PAGE>
SECTION 5.02 OWNER DEATH DISTRIBUTION RULES:
This Section does not apply to IRA Certificates.
SECTION 5.03 BENEFICIARY - SUCCESSOR OWNER:
Section 5.03 is deleted and the following inserted in its place.
SECTION 5.03 BENEFICIARY
On the application, the Owner gives Equitable the name of the beneficiary
who is to receive any death benefit payable on the Annuitant's death. The
Owner may change the beneficiary from time to time during the Annuitant's
lifetime and while coverage under the Contract is in force. Any such change
must be made in writing in a form Equitable accepts. A change will, upon
receipt at the Processing Office, take effect as of the date the written
form is signed, whether or not the Owner is living on the date of receipt.
Equitable will not be liable as to any payments it made before it receives
any such change.
On the application the Owner may name a person to be primary beneficiary on
the Annuitant's death and another person to be contingent beneficiary if
the primary beneficiary dies before the Annuitant. Unless the Owner directs
otherwise, if the Owner has named two or more persons as beneficiary, the
beneficiary will be the named person or persons who survive the Annuitant.
If more than one survive, they will share equally.
Any part of a death benefit payable as described in Section 5.01 for which
there is no named beneficiary living at the Annuitant's death will be
payable in a single sum to the Annuitant's children who survive the
Annuitant. The payments will be made in equal shares, or should none
survive, then to the Annuitant's estate.
If the Owner so chooses in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an
Annuity Benefit, on the form of annuity chosen by the Owner, subject to
Equitable's rules then in effect. If at the Annuitant's death there is no
choice in effect, the beneficiary may make such a choice.
SECTION 6.01 WITHDRAWAL CHARGES:
Section 6.01 describes the events under which a withdrawal charge will not
apply. The event below is added:
(vi) a request is made for a refund of a Contribution in excess of amounts
allowed to be contributed under Section 219 and/or Section 408 of the
Code within one month of the date on which the Contribution is made.
SECTION 7.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS:
Section 7.03 of this Contract refers to the Normal Form of annuity which is
payable. The Normal Form that applies under an IRA Certificate, in lieu of
the form shown in said Section, is defined as follows:
The term "Normal Form" of an Annuity Benefit means, (i) if the Annuitant
has a living spouse at the Retirement Date, the Fixed Annuity Benefit
payable on the Joint and Survivor Life Annuity Form with the Annuitant's
spouse as the contingent annuitant (with 100% of the Annuitant's monthly
payment amount continued to the Annuitant's spouse), and (ii) if the
Annuitant does not have a living spouse at the Retirement Date, the Fixed
Annuity Benefit payable on the Life Annuity Form.
Also, the payment of Annuity Benefits as described in Section 7.03 is
subject to the terms which follow, in order to comply with Section
401(a)(9) of the Code and the Treasury Regulations which apply.
No.11993AC-C Page 26
<PAGE>
The Annuitant's entire interest in the Certificate will be paid or begin to be
paid no later than the April 1 which follows the calendar year in which the
Annuitant attains age 70-1/2 ("Required Start Date"). The entire interest may be
paid, as the Annuitant chooses, over (a) the Annuitant's life, or the lives of
the Annuitant and the named beneficiary, or (b) a period certain which does not
extend beyond the Annuitant's "life expectancy" (defined below), or the joint
and last survivor expectancy of the Annuitant and the named beneficiary.
Payments must be made in periodic payments at intervals no longer than one year.
Also, payments must be either non-increasing or they may increase only as
provided in Regulations (Q & A F-3 of Proposed Treasury Regulation Section
1.401(a)(9)-1 or successor).
All payments made under the Certificate will be made in accordance with the
requirements of Code Section 401(a)(9), including the incidental death benefit
requirement of the Code (Section 401(a)(9)(G)) and Treasury Regulations which
apply (Proposed Treasury Regulation Section 1.401(a)(9)-2).
For purposes of the above, "life expectancy" is computed by use of the expected
return multiples in Tables V and VI of Treasury Regulation Section 1.72-9.
Unless the Annuitant otherwise chooses before the time payments must begin, life
expectancies will be recalculated each year. Such choice may never be changed
and will apply to all years which follow. In the case of any named beneficiary
other than the spouse, life expectancies will be calculated using the attained
age of such beneficiary during the calendar year in which the Annuitant attains
age 70 1/2 and payments for any calendar year which follows will be calculated
based on life expectancy reduced by one for each calendar year which has passed
since the calendar year life expectancy was first calculated.
If the Annuitant dies after payment of the Annuitant's entire interest has
begun, the remainder of such interest will continue to be paid at least as
quickly as under the payment method of distribution being used before the
Annuitant's death.
If the Annuitant dies before payment of the Annuitant's entire interest begins,
payment of the Annuitant's entire interest will be completed no later than
December 31 of the calendar year in which the fifth anniversary of the
Annuitant's death occurs, except to the extent that a choice is made to receive
death benefit payments under (a) or (b) below.
(a) If the Annuitant's interest is payable to a beneficiary, then the entire
interest may be paid over the life of, or over a "period certain" not
greater than the life expectancy of, the named beneficiary. Such payments
must commence on or before December 31 of the calendar year which follows
the year of the Annuitant's death.
(b) If the named beneficiary is the Annuitant's surviving spouse, the date that
payments must begin under (a) above will not be earlier than (i) December
31 of the calendar year which follows the year of the Annuitant's death or,
if later, (ii) December 31 of the calendar year in which the Annuitant
would have reached age 70-1/2.
For purposes of the "period certain" used in (a) above, life expectancy is
computed by use of the expected return multiples in Tables V and VI of Treasury
Regulation Section 1.72-9. For purposes of payments which begin after the
Annuitant's death, unless the surviving spouse chooses otherwise by the time
payments are required to begin, life expectancies will be recalculated each
year. Such choice may never be changed by such spouse and will apply to all
years which follow. In the case of any other named beneficiary, life
expectancies will be calculated using the attained age of such beneficiary
during the calendar year in which payments are required to begin, as described
in this Section, and payments for any subsequent calendar year will be
calculated based on life expectancy reduced by one for each calendar year which
has passed since the calendar year life expectancy was first calculated.
Payments under this Section are deemed to have begun if payments are made
because the Annuitant has reached the Required Start Date or if, before the
Required Start Date, payments
No.11993AC-C Page 27
<PAGE>
commence to the Annuitant over a period permitted and in an annuity form
acceptable under proposed Treasury Regulation 1.401(a)(9)-1 or any
successor.
SECTION 8.05 ANNUAL REPORTS:
Section 8.05 lists the reports Equitable will send the Annuitant. Equitable
will also send a report as of the end of each calendar year showing the
status of the annuity and any other reports required by the Code or
Treasury Regulations.
SECTION 8.06 CHANGE OF OWNER:
The Owner may not name a new owner.
SECTION 8.07 ASSIGNMENTS:
In addition to the restrictions on assignments described in Section 8.07,
the Annuitant's entire interest under the Certificate is not transferable
except by surrender to Equitable. Further, the Annuitant's interest under
the Certificate is non-forfeitable.
APPENDIX B
In lieu of the Tables of Guaranteed Annuity Payments, the attached
"Appendix B-IRA" applies.
No.11993AC-C Page 28
<PAGE>
APPENDIX A-SEP
APPLICABLE TO SEP CERTIFICATES
The terms of this Appendix apply with respect to SEP Certificates. If a SEP
Certificate applies, then it is established for the exclusive benefit of the
Annuitant and the Annuitant's beneficiaries, and the terms below change, or are
added to, the stated Sections of this Contract.
SECTION 1.17 OWNER:
The Owner of a SEP Certificate will be the Annuitant.
SECTION 1.19 RETIREMENT DATE:
Section 1.19 of this Contract defines the "Retirement Date." No initial
choice of Retirement Date may be later than age 70-1/2. Before the
Retirement Date, the Owner may change the Retirement Date to a later age
(up to age 85). In such a case the Owner must withdraw at least the minimum
distributions required under Sections 408(b) and 401(a)(9) of the Code and
Treasury Regulations that apply. See Section 7.03 of this Appendix.
SECTION 3.01 CONTRIBUTIONS:
Section 3.01 states that an initial Contribution of less than $1,000 may
not be accepted. This does not apply to SEP Certificates.
The following will also apply:
Contributions are not fixed and may be made at any time and in any amount
of at least $50.
No contributions will be accepted unless thay are in cash. Except in the
case of a rollover contribution (as permitted by Sections 402(c),
403(a)(4), 403(b)(8), or 408(d)(3) of the Code), or a Contribution made
under the terms of a Simplified Employee Pension as contained in Section
408(k) of the Code, the total of such Contributions will not exceed $2,000
for any taxable years. Amounts transferred to the Contract from an
individual retirement account or annuity contract which meets the
requirements of Section 408 of the Code are not subject to the $2,000
limit.
If the Owner makes a Contribution which qualifies as an eligible retirement
plan rollover within the meaning of Section 402(c) or 403 (b)(8) of the
Code and the Owner commingles such Contribution with other Contributions,
the Owner may not be able to roll over the eligible retirement plan
Contributions and earnings to another qualified plan or Code Section 403(b)
arrangement at a future date, unless the Code permits.
SECTION 4.02 TERMINATION OF COVERAGE UNDER THE CONTRACT:
In the event that an annuity bought under the Contract fails to qualify as
an annuity which meets the requirements of Section 408(b) of the Code,
Equitable will have the right, upon receipt of notice of such fact, before
the Retirement Date, to terminate coverage under the Contract. In that
case, Equitable will pay the Annuity Account Value less a deduction for the
part which applies to any Federal income tax payable by the Annuitant which
would not have been payable with respect to an annuity which meets such
requirements.
SECTION 5.01 DEATH BENEFIT:
If the Annuitant is married at the Annuitant's death before the Retirement
Date, and the Annuitant's spouse is named as death beneficiary, the
Annuitant's spouse will be treated as the contingent annuitant (Annuitant
and Owner) under the Certificate. Payment of the death benefit is subject
to Section 7.03 of this Appendix.
No.11993AC-C Page 29
<PAGE>
SECTION 5.02 OWNER DEATH DISTRIBUTION RULES:
This Section does not apply to SEP Certificates.
SECTION 5.03 BENEFICIARY - SUCCESSOR OWNER:
Section 5.03 is deleted and the following inserted in its place.
SECTION 5.03 BENEFICIARY
On the application, the Owner gives Equitable the name of the beneficiary
who is to receive any death benefit payable on the Annuitant's death. The
Owner may change the beneficiary from time to time during the Annuitant's
lifetime and while coverage under the Contract is in force. Any such change
must be made in writing in a form Equitable accepts. A change will, upon
receipt at the Processing Office, take effect as of the date the written
form is signed, whether or not the Owner is living on the date of receipt.
Equitable will not be liable as to any payments it made before it receives
any such change.
On the application the Owner may name a person to be primary beneficiary on
the Annuitant's death and another person to be contingent beneficiary if
the primary beneficiary dies before the Annuitant. Unless the Owner directs
otherwise, if the Owner has named two or more persons as beneficiary, the
beneficiary will be the named person or persons who survive the Annuitant.
If more than one survive, they will share equally.
Any part of a death benefit payable as described in Section 5.01 for which
there is no named beneficiary living at the Annuitant's death will be
payable in a single sum to the Annuitant's children who survive the
Annuitant. The payments will be made in equal shares, or should none
survive, then to the Annuitant's estate.
If the Owner so chooses in writing, any amount that would otherwise be
payable to a beneficiary in a single sum may be applied to provide an
Annuity Benefit, on the form of annuity chosen by the Owner, subject to
Equitable's rules then in effect. If at the Annuitant's death there is no
choice in effect, the beneficiary may make such a choice.
SECTION 6.01 WITHDRAWAL CHARGES:
Section 6.01 describes the events under which a withdrawal charge will not
apply. The events below are added:
(vi) a request is made for a refund of a Contribution which exceeds the
amounts which may be contributed pursuant to Section 219 and/or 408
of the Code and the request for a refund is received within one
month of the date on which such Contribution was made, or
(vii) a distribution of deferrals disallowed by reason of failure to meet
the requirements of Section 408(k)(6)(A)(ii) of the Code, including
income thereon and less any loss allowable thereto, is made no later
than April 15 following the calendar year of the notification by the
Annuitant's employer of such disallowance, or
(viii) a distribution of "excess contributions," as such term is defined in
Section 408(k)(6)(C)(ii) of the Code, including the income thereon
and less any loss allowable thereto, is made no later than the end
of the plan year of the Simplified Employee Pension following the
plan year in which such excess contributions were made, or
(ix) a distribution of "excess deferrals" as such term is defined in
Section 402(g)(2) of the Code, including income thereon and less any
loss allowable thereto, is made no later than April 15 following the
year in which such excess deferrals were made.
No.11993AC-C Page 30
<PAGE>
SECTION 7.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS:
Section 7.03 of this Contract refers to the Normal Form of annuity which is
payable. The Normal Form that applies under a SEP Certificate, in lieu of
the form shown in said Section, is defined as follows:
The term "Normal Form" of an Annuity Benefit means, (i) if the Annuitant
has a living spouse at the Retirement Date, the Fixed Annuity Benefit
payable on the Joint and Survivor Life Annuity Form with the Annuitant's
spouse as the contingent annuitant (with 100% of the Annuitant's monthly
payment amount continued to the Annuitant's spouse), and (ii) if the
Annuitant does not have a living spouse at the Retirement Date, the Fixed
Annuity Benefit payable on the Life Annuity Form.
Also, the payment of Annuity Benefits as described in Section 7.03 is
subject to the terms which follow, in order to comply with Section
401(a)(9) of the Code and the Treasury Regulations which apply:
The Annuitant's entire interest in the Certificate will be paid or begin to
be paid no later than the April 1 which follows the calendar year in which
the Annuitant attains age 70-1/2 ("Required Start Date"). The entire
interest may be paid, as the Annuitant chooses, over (a) the Annuitant's
life, or the lives of the Annuitant and the named beneficiary, or (b) a
period certain which does not extend beyond the Annuitant's "life
expectancy" (defined below), or the joint and last survivor expectancy of
the Annuitant and the named beneficiary. Payments must be made in periodic
payments at intervals no longer than one year. Also, payments must be
either non-increasing or they may increase only as provided in Regulations
(Q & A F-3 of Proposed Treasury Regulation Section 1.401(a)(9)-1 or
successor).
All payments made under the Certificate will be made in accordance with the
requirements of Code Section 401(a)(9), including the incidental death
benefit requirement of the Code (Section 401(a)(9)(G)) and Treasury
Regulations which apply (Proposed Treasury Regulation Section
1.401(a)(9)-2).
For purposes of the above, "life expectancy" is computed by use of the
expected return multiples in Tables V and VI of Treasury Regulation Section
1.72-9. Unless the Annuitant otherwise chooses before the time payments
must begin, life expectancies will be recalculated each year. Such choice
may never be changed and will apply to all years which follow. In the case
of any named beneficiary other than the spouse, life expectancies will be
calculated using the attained age of such beneficiary during the calendar
year in which the Annuitant attains age 70 1/2 and payments for any
calendar year which follows will be calculated based on life expectancy
reduced by one for each calendar year which has passed since the calendar
year life expectancy was first calculated.
If the Annuitant dies after payment of the Annuitant's entire interest has
begun, the remainder of such interest will continue to be paid at least as
quickly as under the payment method of distribution being used before the
Annuitant's death.
If the Annuitant dies before payment of the Annuitant's entire interest
begins, payment of the Annuitant's entire interest will be completed no
later than December 31 of the calendar year in which the fifth anniversary
of the Annuitant's death occurs, except to the extent that a choice is made
to receive death benefit payments under (a) or (b) below.
(a) If the Annuitant's interest is payable to a beneficiary, then the
entire interest may be paid over the life of, or over a "period
certain" not greater than the life expectancy of, the named
beneficiary. Such payments must commence on or before December 31 of
the calendar year which follows the year of the Annuitant's death.
(b) If the named beneficiary is the Annuitant's surviving spouse, the date
that payments must begin under (a) above will not be earlier than (i)
December 31 of the calendar year
No. 11993AC-C Page 31
<PAGE>
which follows the year of the Annuitant's death or, if later, (ii)
December 31 of the calendar year in which the Annuitant would have
reached age 70-1/2.
For purposes of the "period certain" used in (a) above, life expectancy is
computed by use of the expected return multiples in Tables V and VI of
Treasury Regulation Section 1.72-9. For purposes of payments which begin
after the Annuitant's death, unless the surviving spouse chooses otherwise
by the time payments are required to begin, life expectancies will be
recalculated each year. Such choice may never be changed by such spouse and
will apply to all years which follow. In the case of any other named
beneficiary, life expectancies will be calculated using the attained age of
such beneficiary during the calendar year in which payments are required to
begin, as described in this Section, and payments for any subsequent
calendar year will be calculated based on life expectancy reduced by one
for each calendar year which has passed since the calendar year life
expectancy was first calculated.
Payments under this Section are deemed to have begun if payments are made
because the Annuitant has reached the Required Start Date or if, before the
Required Start Date, payments commence to the Annuitant over a period
permitted and in an annuity form acceptable under proposed Treasury
Regulation 1.401(a)(9)-1 or any successor.
SECTION 8.05 ANNUAL REPORTS:
Section 8.05 lists the reports Equitable will send the Annuitant. Equitable
will also send a report as of the end of each calendar year showing the
status of the annuity and any other reports required by the Code or
Treasury Regulations.
SECTION 8.06 CHANGE OF OWNER:
The Owner may not name a new owner.
SECTION 8.07 ASSIGNMENTS:
In addition to the restrictions on assignments described in Section 8.07,
the Annuitant's entire interest under the Certificate is not transferable
except by surrender to Equitable. Further, the Annuitant's interest under
the Certificate is non-forfeitable.
SECTION 8.08 AGE AND SEX
A misstatement of the sex of any person upon whose life an Annuity Benefit
depends does not apply, since the Annuity Benefit tables which apply, as
shown in "Appendix B-SEP", has the same values for both sexes.
APPENDIX B
In lieu of the Tables of Guaranteed Annuity Payments, the attached
"Appendix B-SEP" applies.
No.11993AC-C Page 32
<PAGE>
APPENDIX B-IRA
APPLICABLE TO IRA CERTIFICATES
TABLES OF GUARANTEED ANNUITY PAYMENTS
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract on
the Joint and Survivor Life Annuity Form (with 100% of the amount of the
Annuitant's payment continued to the Annuitant's spouse). The amounts of income
provided under the Fixed Annuity Benefit payable on the Life Annuity Form and
Joint and Survivor Life Annuity Form are based on 3.0% interest and the 1983
Individual Annuity Table "a" projected with modified Scale "G." The amount of
income initially provided under the Variable Annuity Benefit payable on the Life
Annuity Form and the Joint and Survivor Life Annuity Form are based on the 1983
Individual Annuity Table "a" projected with modified Scale "G" and a modified
two year age set back, and an Assumed Base Rate of Net Investment Income Return
of 3.5% or 5%, whichever applies pursuant to Section 7.02.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on the same actuarial basis.
<TABLE>
<CAPTION>
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM --
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
Female Ages
-----------
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 3.86 3.90 3.93 3.97 4.01 4.05 4.08 4.12 4.15 4.19 4.22
61 3.88 3.92 3.96 4.00 4.04 4.08 4.12 4.16 4.19 4.23 4.27
62 3.91 3.95 3.99 4.03 4.07 4.11 4.15 4.19 4.23 4.27 4.31
63 3.93 3.97 4.01 4.06 4.10 4.14 4.19 4.23 4.28 4.32 4.36
Male 64 3.95 3.99 4.04 4.08 4.13 4.18 4.22 4.27 4.32 4.36 4.41
Ages 65 3.97 4.02 4.06 4.11 4.16 4.21 4.26 4.31 4.35 4.40 4.45
---- 66 3.99 4.04 4.09 4.14 4.19 4.24 4.29 4.34 4.39 4.45 4.50
67 4.01 4.06 4.11 4.16 4.21 4.27 4.32 4.38 4.43 4.49 4.54
68 4.02 4.08 4.13 4.18 4.24 4.30 4.35 4.41 4.47 4.53 4.59
69 4.04 4.10 4.15 4.21 4.26 4.32 4.38 4.44 4.51 4.57 4.63
70 4.06 4.11 4.17 4.23 4.29 4.35 4.41 4.48 4.54 4.61 4.67
</TABLE>
No.11993AC-C Page 33
<PAGE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1000 of Annuity Value)
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUME BASE
RATE OF NET INVESTMENT RETURN IS:
3.5% 5.0%
---- ----
Age Males Females Males Females
--- ----- ------- ----- -------
60 4.88 4.41 5.79 5.32
61 4.97 4.48 5.88 5.39
62 5.07 4.55 5.98 5.46
63 5.17 4.63 6.08 5.54
64 5.28 4.72 6.19 5.62
65 5.40 4.81 6.31 5.71
66 5.52 4.90 6.43 5.80
67 5.66 5.00 6.56 5.90
68 5.80 5.11 6.71 6.00
69 5.95 5.22 6.86 6.11
70 6.11 5.34 7.02 6.23
No.11993AC-C Page 34
<PAGE>
APPENDIX B-SEP
APPLICABLE TO SEP CERTIFICATES
TABLES OF GUARANTEED ANNUITY PAYMENTS
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract on
the Joint and Survivor Life Annuity form (with 100% of the amount of the
Annuitant's payment continued to the Annuitant's spouse). The amounts of income
provided under the Fixed Annuity Benefit payable on the Life Annuity Form and
Joint and Survivor Life Annuity Form are based on 3.0% interest and the 1983
Individual Annuity Table "a" projected with modified Scale "G" and adjusted to a
unisex basis based on a 20%-80% split of males and females, at age 55. The
amounts of income initially provided under the Variable Annuity Benefit payable
on the Life Annuity Form and the Joint and Survivor Life Annuity Form are based
on the 1983 Individual Annuity Table "a" projected with modified Scale "G,"
adjusted with a modified two year age set back and a 20%-80% split of males and
females, at age 55 and an Assumed Base Rate of Net Investment Income Return of
3.5% or 5%, whichever applies pursuant to Section 7.02.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by Equitable on the same actuarial basis.
<TABLE>
<CAPTION>
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM --
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 3.79 3.82 3.84 3.87 3.90 3.92 3.95 3.97 4.00 4.02 4.04
61 3.85 3.87 3.90 3.93 3.96 3.99 4.02 4.04 4.07 4.09
62 3.91 3.94 3.97 4.00 4.03 4.06 4.09 4.11 4.14
63 3.97 4.00 4.04 4.07 4.10 4.13 4.16 4.19
64 4.04 4.07 4.11 4.14 4.18 4.21 4.24
65 4.11 4.15 4.19 4.22 4.26 4.29
66 4.19 4.23 4.27 4.30 4.34
67 4.27 4.31 4.35 4.39
68 4.36 4.40 4.44
69 4.45 4.50
70 4.55
</TABLE>
No.11993AC-C Page 35
<PAGE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1000 of Annuity Value)
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED BASE
RATE OF NET INVESTMENT RETURN IS:
---------------------------------
3.5% 5.0%
---- ----
AGE
---
60 4.49 5.41
61 4.57 5.48
62 4.65 5.56
63 4.73 5.64
64 4.82 5.73
65 4.91 5.82
66 5.01 5.91
67 5.12 6.02
68 5.23 6.13
69 5.35 6.24
70 5.48 6.37
No.11993AC-C Page 36
<PAGE>
(EQUITABLE LOGO)
CERTIFICATE
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
("Equitable")
Processing Office: Individual Annuity Center, P.O. Box 2995, G.P.O.
New York, New York 10116
This is the Certificate which is issued under the terms of the Contract defined
in Section 1.10. This Certificate is issued in return for the application for
coverage under the Contract and the Contributions to be made to us under the
Contract.
In this Certificate, "we", "our" and "us" mean Equitable. "You" and "your" mean
the Owner.
We will provide the benefits and other rights pursuant to the terms of the
Certificate.
TEN DAYS TO CANCEL - Not later than ten days after you receive this Certificate,
you may return it to us. We will cancel it and refund any Contribution made to
us, plus or minus any investment gain or loss which applies to the Investment
Divisions of the Separate Account from the date such Contribution was allocated
to such Division to the date of cancellation.
/s/ Joseph J. Melone /s/ Richard H. Jenrette
President and Chairman
Joseph J. Melone Chief Executive Richard H. Jenrette of the
Officer Board
/s/ Molly K. Heines
Vice President
Molly K. Heines and Secretary
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE (SEE PART II OF THIS CERTIFICATE).
THE AMOUNT OF ANNUITY BENEFIT WILL BE EQUAL TO THE SUM OF ANY FIXED ANNUITY
BENEFIT AND ANY VARIABLE ANNUITY BENEFIT. THE AMOUNT OF ANY VARIABLE ANNUITY
BENEFIT MAY INCREASE OR DECREASE, BASED ON THE INVESTMENT EXPERIENCE OF THE
STOCK DIVISION (SEE SECTION 7.02).
No. 11993AC
CPA
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES NEW YORK, NEW YORK
<PAGE>
The provisions on the following pages are part of this Certificate.
TABLE OF CONTENTS
Page
PART I - DEFINITIONS 4
PART II - DIVISIONS 6
PART III - CONTRIBUTIONS AND TRANSFERS 7
PART IV - WITHDRAWALS AND TERMINATIONS 8
PART V - DEATH BENEFITS 9
PART VI - CHARGES 11
PART VII - ANNUITY BENEFITS 12
PART VIII - GENERAL PROVISIONS 15
APPENDIX 18
No. 11993AC Page 2
<PAGE>
Owner:
Annuitant:
Certificate Number:
Issue Date:
Contract Date:
Retirement Date:
Initial Guaranteed Interest Rate:
Beneficiary:
Endorsement: [None
IRA
QPIRA
SEP]
TABLES OF GUARANTEED VALUES
Table A Table B
------- -------
Guaranteed Guaranteed Paid Up
Cash Value Monthly Annuity At Age 65
---------- -------------------------
The tables illustrate minimum guaranteed values. They assume a $1,000
Contribution made each year on the first of the month which follows the Contract
Date. Table A reflects an administrative charge (see Section 6.03) and a
withdrawal charge (see Section 6.01). The tables assume that 100% of all
Contributions and earnings are in the Guaranteed Interest Division.
Your actual values may differ from those shown above based on the level [and
frequency] of your Contributions.
The guaranteed paid-up monthly annuity shown in Table B will be reduced by any
charge we make for any taxes (see Section 7.02). Other forms of Annuity Benefits
may be available.
No. 11993AC Page 3
<PAGE>
PART I - DEFINITIONS
SECTION 1.01 ACCUMULATION UNIT
"Accumulation Unit" means a unit which is purchased in an Investment Division of
the Separate Account.
SECTION 1.02 ACCUMULATION UNIT VALUE
"Accumulation Unit Value" means the dollar value of each Accumulation Unit in an
Investment Division of the Separate Account on a given date.
SECTION 1.03 ANNUITANT.
"Annuitant" means the person shown as such on page 3 of this Certificate, and on
whose life this Certificate is based, or any successor annuitant.
SECTION 1.04 ANNUITY ACCOUNT VALUE.
"Annuity Account Value" means the sum of the amounts held for you in the
Guaranteed Interest Division and the Investment Divisions of the Separate
Account.
SECTION 1.05 ANNUITY BENEFIT.
"Annuity Benefit" means a benefit payable by us as described in Part VII of this
Certificate.
SECTION 1.06 BUSINESS DAY.
A "business day" is any day on which we are open and the New York Stock Exchange
is open for trading.
SECTION 1.07 CASH VALUE.
"Cash Value" means an amount equal to the Annuity Account Value, less any
withdrawal charge that applies as described in Section 6.01.
SECTION 1.08 CERTIFICATE.
"Certificate" means this Certificate, including any Endorsements.
SECTION 1.09 CODE.
"Code" means the Internal Revenue Code of 1986, as now or hereafter amended, or
any corresponding provisions of prior or subsequent United States revenue laws.
SECTION 1.10 CONTRACT.
"Contract" means Group Annuity Contract No. AC 0000 issued by us to United
States Trust Company of New York. This Certificate reflects the terms of the
Contract.
SECTION 1.11 CONTRACT DATE.
"Contract Date" means the date on which the Annuitant is enrolled under the
Contract. That is, it is the date we have received both a Contribution and the
completed application form which is provided by us.
No. 11993AC Page 4
<PAGE>
SECTION 1.12 CONTRACT YEAR.
"Contract Year" means the twelve month period starting on (i) the Contract Date
and (ii) each anniversary of the Contract Date, unless we agree to another
period.
SECTION 1.13 CONTRIBUTION.
"Contribution" means a payment made to us under the Contract. See Section 3.01.
SECTION 1.14 DIVISION.
"Division" means the Guaranteed Interest Division or an Investment Division of
the Separate Account. Each Division is described in Part II of this Certificate.
SECTION 1.15 GUARANTEED INTEREST RATE.
"Guaranteed Interest Rate" means the effective annual rates at which interest
accrues on the amount in the Guaranteed Interest Division. The initial rate to
apply is shown on Page 3 of this Certificate. Section 2.01 describes how the
rates are set after the initial rate.
SECTION 1.16 OWNER.
"Owner" means the person shown as such on page 3 of this Certificate or any
successor owner.
SECTION 1.17 PROCESSING OFFICE.
"Processing Office" means Equitable Individual Annuity Center, P.O. Box 2996,
New York, New York 10116, or such other location as we may designate upon
advance written notice to you.
SECTION 1.18 RETIREMENT DATE.
"Retirement Date" means the date on which the Annuitant attains the retirement
age shown on page 3 of this Certificate.
Before the Retirement Date you may choose to change such Date to another
Retirement Date. The changed Date may be any date after your choice is filed
(other than the 29th, 30th or 31st day of any month). You must do this in
writing. The change will not take effect until your written choice is received
and accepted at our Processing Office.
No Retirement Date will be later than the first of the month which follows the
date the Annuitant attains our maximum maturity age (currently age 85) or, if
later, the tenth anniversary of the Contract Date, unless changed by us to
conform to any law which applies.
SECTION 1.19 SEPARATE ACCOUNT.
"Separate Account" means Separate Account A which is organized as a unit
investment trust, a type of investment company.
SECTION 2.20 TRANSACTION DATE.
The Transaction Date is the Business Day we receive at the Processing Office a
Contribution or a transaction request (in writing or by telephone) providing the
information we need. (A request by telephone may be made subject to our
requirements for telephone transactions.) Our Business Day ends at 4:00 P.M.
Eastern Time.
No. 11993AC Page 5
<PAGE>
PART II - DIVISIONS
SECTION 2.01 GUARANTEED INTEREST DIVISION.
Any amount held in the Guaranteed Interest Division (see Section 3.01) becomes
part of our general assets, which support the guarantees of the Contract and
other contracts.
The amount in such Division at any time is equal to:
o all amounts that have been allocated or transferred to such Division, plus
o the amount of any interest accrued but not allocated, less
o the sum of all amounts that have been withdrawn or transferred from
such Division.
We will credit the amount you have in such Division with interest at effective
annual rates that we set. Each calendar year we also set a yearly Guaranteed
Interest Rate that will remain in effect through the next calendar year. We
guarantee that this yearly rate will never be less than 3%.
SECTION 2.20 SEPARATE ACCOUNT.
We established the Separate Account and maintain it in accordance with the laws
of New York State. Realized and unrealized gains and losses from the assets of
the Separate Account are credited or charged against it without regard to our
other income, gains or losses. Assets are put in the Separate Account to support
this Contract and other variable annuity contracts and certificates. Assets may
be put in the Separate Account for other purposes, but not to support contracts
or policies other than variable annuities and variable life insurance.
The Separate Account consists of "Investment Divisions." (The Guaranteed
Interest Division is not a part of Separate Account A.) Each Investment Division
may invest its assets in a separate class (or series) of shares of a specified
trust or investment company where each class (or series) represents a separate
portfolio in the specified trust or investment company.
The Investment Divisions are:
(a) "Type A" Investment Divisions:
the Stock Division;
the Balanced Division;
the Aggressive Division;
the Global Division;
the Growth Investors Division; and
(b) "Type B" Investment Divisions:
the Conservative Investors Division;
the Money Market Division;
Divisions may be added or removed as described in Section 8.03
We will value the assets of each Investment Division on each Business Day.
The assets of the Separate Account are our property. The portion of its assets
equal to the reserves and other liabilities with respect to Certificates issued
under the Contract will not be chargeable with liabilities which arise out of
any other business we conduct. We may transfer assets of an Investment Division
in excess of the reserves and other liabilities with respect to such Division to
another Investment Division or to our General Account.
No. 11993AC Page 6
<PAGE>
We may, at our discretion, invest the assets of any Investment Division in any
investment which applicable law permits. We may rely conclusively on the opinion
of counsel (including counsel in our employ) as to what investments we may make
as law permits.
SECTION 2.03 SEPARATE ACCOUNT INVESTMENT DIVISIONS.
The amount you have in an Investment Division at any time is equal to the number
of Accumulation Units you have in that Division multiplied by the Division's
Accumulation Unit Value at that time.
Amounts allocated or transferred to an Investment Division are used to purchase
Accumulation Units of that Division. Units are redeemed when amounts are
deducted, transferred or withdrawn.
The number of Accumulation Units you have in an Investment Division at any time
is equal to the number of Accumulation Units purchased minus the number of Units
redeemed in that Division up to that time. The number of Accumulation Units
purchased or redeemed in a transaction is equal to the dollar amount of the
transaction divided by the Division's Accumulation Unit Value for that
Transaction Date.
We determine Accumulation Unit Values for each Investment Division for each
Valuation Period. A Valuation Period is each Business day together with any
consecutive preceding non-business days. For example, for each Monday which is a
Business day, the preceding Saturday and Sunday will be included to equal a
three-day Valuation Period.
The Accumulation Unit Value of an Investment Division for any Valuation Period
is equal to the Accumulation Unit Value for that Division on the immediately
preceding Valuation Period multiplied by the Net Investment Factor for that
Division for the current Valuation Period. The Net Investment Factor for a
Valuation Period is (a) divided by (b) minus (c), where
(a) is the value of the Investment Division's shares of the related portfolio
of the specified trust or investment company at the end of the Valuation
Period (before taking into account any amounts allocated to or withdrawn
from the Investment Division for the Valuation Period and after deduction
of investment advisory fees and direct operating expenses of the specified
trust or investment company; for this purpose, we use the share value
reported to us by the specified trust or investment company);
(b) is the value of the Investment Division's shares of the related portfolio
of the specified trust or investment company at the end of the preceding
Valuation Period (taking into account any amounts allocated or withdrawn
for that Valuation Period);
(c) is the daily Separate Account charge (see Section 6.04) for the expenses of
the Contract, times the number of calendar days in the Valuation Period,
plus any charge for taxes or amounts set aside as a reserve for taxes.
PART III - CONTRIBUTIONS AND TRANSFERS
SECTION 3.01 CONTRIBUTIONS.
On the application form you choose which Divisions will be available under your
Certificate (the Guaranteed Interest Division is always available). Once this
choice is made, you may only allocate Contributions to, or transfer among, these
Divisions. You may add or subtract Divisions after the Certificate is issued to
you by sending us a written request, but we have the right to decline your
request.
On the application form you will also choose how to allocate your Contributions
among the Divisions you have chosen. You need not allocate Contributions to each
Division that you have chosen. You
No. 11993AC Page 7
<PAGE>
may change your allocation instruction at any time by sending us the proper
form. Allocation percentages must be in whole numbers (no fractions) and must
equal 100%.
Each Contribution is allocated (after deduction of any tax charge that applies)
in accordance with the allocation instructions in effect. Contributions made to
an Investment Division purchase Accumulation Units in that Division, using the
Accumulation Unit Value next computed after the Transaction Date.
We have the right not to accept an initial Contribution of less than [$1,000]
or, for payroll deductions and any subsequent Contributions, a Contribution of
less than [$50]. We may refuse to accept any Contribution if such Annuitant's
current age at last birthday is 80 or greater.
In addition, we may refuse to accept a Contribution if the total Contributions
would exceed:
(a) [$500,000,] if the Annuitant's current age at last birthday is 75 or less.
(b) [$250,000,] if the Annuitant's current age at last birthday is 76-79.
We have the right to further limit Contributions as described in Section 8.03.
SECTION 3.03 TRANSFERS AMONG DIVISIONS.
You may request a transfer of all or part of the amount you have in a Division
to one or more of the Divisions. A transfer request may be made in writing. It
may also be made by telephone, subject to our requirements for telephone
requests. All transfers will be made on the Transaction Date and will be subject
to our rules. With respect to the Investment Divisions, the transfers will be
made at the Accumulation Unit value next computed after the Transaction Date.
If you have chosen any combination of Divisions that include a Type B Investment
Division described in Section 2.02 (whether or not amounts have actually been
placed in any such Division), then the maximum amount which may be transferred
in any Contract Year from the Guaranteed Interest Division to any other Division
is:
(a) [25%] of the amount you have in the Guaranteed Interest Division on the
last day of the prior Contract Year or, if greater,
(b) the total of all amounts transferred at your request from the Guaranteed
Interest Division to any of the other Divisions in the prior Contract Year.
We will to accept a request for a transfer of less than [$300], unless the
Annuity Account Value is less than [$300]. We have the right to impose further
restrictions on transfers. See Section 8.03.
PART IV WITHDRAWALS AND TERMINATION
SECTION 4.01 PARTIAL WITHDRAWALS.
You may make a written request to us for a partial withdrawal from the Divisions
before the Retirement Date and while the Annuitant is alive.
On the Transaction Date, we will pay the amount requested or, if less, the Cash
Value. The amount to be paid plus any withdrawal charge that applies (see
Section 6.01) will be withdrawn on a pro-rate basis from the amounts you have in
the Divisions, unless you choose otherwise.
We will not accept a request for a partial withdrawal of less than $300, unless
the Annuity Account Value is less than $300. Also, if a withdrawal made under
this Section would result in an Annuity Account Value of less than $500, we will
so advise you and have the right to pay the Annuity Account Value to you, and
coverage under the Contract will be terminated.
No. 11993AC Page 8
<PAGE>
SECTION 4.02 TERMINATION OF COVERAGE UNDER THE CONTRACT.
On or before the Annuitant's Retirement Date, and while the Annuitant is alive,
you may choose to terminate coverage under the Contract. You must do so in
writing. We will determine the Cash Value to be paid as of the Transaction Date.
No withdrawal charge will be applied if the amount withdrawn is used to provide
a life annuity offered by us or one of our affiliated or subsidiary life
insurance companies.
If coverage is terminated before the Retirement Date, a charge for any taxes
that we have paid may be deducted. If we have previously deducted charges for
taxes from Contributions as described in Section 3.01, we will not again deduct
charges for the same taxes on termination.
Before the Retirement Date, we have the right to pay the Cash Value under the
Contract and terminate coverage if (i) no Contributions are made during the last
three completed Contract Years, or (ii) after three Contract Years the Annuity
Account Value is less than $500. We also have the right to terminate coverage
under the Contract if no Contributions have been made within 120 days of the
Contract Date shown on page 3 of this Certificate.
PART V - DEATH BENEFITS
SECTION 5.01 DEATH BENEFIT.
Unless your surviving spouse becomes the Annuitant under Section 5.02, upon
receipt of due proof of the Annuitant's death we will pay a death benefit to the
beneficiary named under Section 5.03.
The amount of the death benefit payable is equal to (a) the Annuity Account
Value or, if more, (b) the minimum death benefit. The minimum death benefit is
the sum of all Contributions made (less any tax charges that apply) and less the
total of any withdrawals made as described in Section 4.01.
We will pay the death benefit to the beneficiary in the form of an Annuity
Benefit if you have chosen the form described in the last paragraph of Section
5.03. Also pursuant to the last paragraph of Section 5.03, if no such choice has
been made at the Annuitant's death, we will pay the death benefit to the
beneficiary in a single sum.
However, the beneficiary may instead choose before we pay the death benefit to
apply the death benefit to provide (i) a form of an Annuity Benefit, (ii) any
other form of benefit payment, (iii) any combination of forms of benefit
payment. All choices will be subject to the forms we then offer, our rules then
in effect, and any requirements under the Code.
SECTION 5.02 OWNER DEATH DISTRIBUTION RULES.
Upon the death of the Owner before the Retirement Date:
(i) If you are both the Owner and the Annuitant, we will pay the death
benefit described in Section 5.01. If you are married at the date of
your death before the Retirement Date and your spouse is the named
beneficiary, your spouse will be the successor Owner and Annuitant and
no death benefit will be payable at such time.
(ii) If you are not the Annuitant, the named beneficiary (successor owner)
described in Section 5.03 will succeed as Owner, even if any co-owner
exists. The entire amount in the Divisions (subject to any withdrawal
charges which apply) must be fully paid by the fifth anniversary of your
death, or payments must begin within one year after your death as a life
annuity or installment option, for a period of not longer than the life
expectancy of the named beneficiary. If you have not chosen a form of
payment described in the last paragraph of Section 5.03, and if the
beneficiary named under Section 5.03 does not choose to receive the
payments required by this Section in a form of Annuity Benefit, a series
of
No. 11993AC Page 9
<PAGE>
partial withdrawals, or any payout option acceptable under Section 72(s)
of the Code and our rules at the time, we will pay the amount in the
Divisions in a single sum to the beneficiary on the fifth anniversary of
your death. Subject to our rules at the time of payment and the
completion of an application, the beneficiary may choose to apply such a
single sum payment to a new nonqualified annuity contract to be owned by
the beneficiary. However, if the named beneficiary is your spouse, full
payments of amounts under the Contract must be made no later than five
years after the spouse's death.
If payments under an Annuity Benefit had begun before your death, such payments
will continue to be made over a period not longer than the period provided for
under the Annuity Benefit chosen.
If the Annuitant dies before the entire amount in the Divisions is paid, we will
pay the death benefit as described in Section 5.01.
SECTION 5.03 BENEFICIARY - SUCCESSOR OWNER.
On the application, you give us the name of the beneficiary who is to receive
any death benefit payable on the death of the Annuitant. Unless you direct
otherwise, the person named as beneficiary on the death of the Annuitant will
also be the person who succeeds as Owner on your death while the Annuitant is
alive as described in Section 5.02. You may change any beneficiary or successor
Owner from time to time during the Annuitant's lifetime and while coverage under
the Contract is in force. Any such change must be made in writing in a form we
accept. A change will, upon receipt at the Processing Office, take effect as of
the date the written form was signed, whether or not you are living on the date
of receipt. We will not be liable as to any payment we may make before we
receive any such change.
On the application you may name a person to be primary beneficiary on the death
of the Annuitant under Section 5.01 and another person to be a contingent
beneficiary if the primary beneficiary dies before the Annuitant. Also, if you
are not the Annuitant, on the application you may name a person to be your
successor Owner and to receive the amounts required to be paid under Section
5.02 (on your death before the Retirement Date while coverage under the Contract
is in force) and another person to be successor Owner, if your first choice as
successor Owner dies before you.
Unless you direct otherwise, if you have named two or more persons as death
benefit beneficiary, the beneficiary will be the named person or persons who
survive the Annuitant. If more than one survive they will share equally.
If you are not the Annuitant and you name two or more persons to succeed as
Owner, the successor Owner will be the named person or persons who survive you,
unless you direct otherwise. If more than one survive they will share equally,
unless you direct otherwise.
If you are the Annuitant, any part of a death benefit payable as described in
Section 5.01 for which there is no named beneficiary living at your death will
be payable in a single sum to your children who survive you. The payments will
be made in equal shares, or should none survive then to your estate.
If you are not the Annuitant, and if no beneficiary named to receive the death
benefit payable as described in Section 5.01 survives the Annuitant, we will pay
such death benefit in a single sum to you. In the event of your death after the
Annuitant, but before we pay such death benefit, the death benefit will be
payable in a single sum to your children who survive you, in equal shares, or
should none survive, to your estate.
If you are not the Annuitant and you die before the Retirement Date while the
Annuitant is still living, and if no person is named as successor Owner to
receive the amounts required to be paid as described in Section 5.02 is living
at your death, such beneficiary will be presumed to be, in this order, (i) your
surviving spouse, (ii) the Annuitant, (iii) your children who survive you, in
equal shares, or (iv) your estate.
No. 11993AC Page 10
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If you so choose in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on a
form of annuity chosen by you, subject to our rules then in effect. If at your
death there is no choice in effect, the beneficiary may make such a choice.
PART VI -- CHARGES
SECTION 6.01 WITHDRAWAL CHARGES.
If the amount of a withdrawal made under Section 4.01 or a termination payment
made under Section 4.02 is more than the Free Corridor Amount (defined below),
we will (a) first withdraw from such Divisions an amount equal to the Free
Corridor Amount, and (b) then withdraw an amount equal to the excess of the
amount requested over the Free Corridor Amount, plus a withdrawal charge, if one
applies.
The withdrawal charge is equal to [6%] of the withdrawn Contributions which have
been made in the current and five prior Contract Years.
For the purposes of this Section, amounts withdrawn up to the Free Corridor
Amount will not be deemed a withdrawal of any Contributions. Also, any excess
withdrawals (those pursuant to item (b) in the first paragraph of this Section)
will be deemed withdrawals of older Contributions first and more recent
Contributions next: that is, Contributions will be withdrawn in the order they
were made.
"Free Corridor Amount" means an amount equal to 10% of the Annuity Account Value
on the Transaction Date, minus the total of all prior withdrawals made as
described in Section 4.01 in the current Contract Year.
However, a withdrawal charge will not apply upon any of these events:
(i) the Annuitant dies and a death benefit is payable to the beneficiary, or
(ii) the receipt by us of a properly completed election form providing for
the Annuity Account Value to be used to buy a life annuity as described
in Section 7.03, or
(iii) the Annuitant has qualified to receive Social Security disability
benefits as certified by the Social Security Administration, or
(iv) you give us proof which we accept that the Annuitant's life expectancy
is six months or less (such proof must include, but is not limited to,
certification by a licensed physician), or
(v) the Annuitant has been confined to a nursing home for more than 90 days
as verified by a licensed physician. A nursing home for this purpose
means one which is (a) approved by Medicare as a provider of skilled
nursing care service, or (b) licensed as a skilled nursing home by the
state or territory in which it is located (it must be within the United
States, Puerto Rico, U.S. Virgin Islands, or Guam) and it meets all of
the following:
o its main function is to provide skilled, intermediate, or custodial
nursing care;
o it provides continuous room and board to three or more persons;
o it is supervised by a registered nurse or a licensed practical nurse;
o it keeps daily medical records of each patient;
o it controls and records all medications dispensed; and
No 11993AC Page 11
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o its primary service is other than to provide housing for residents.
Moreover, the withdrawal charge will be reduced if needed in order to comply
with any state law that applies.
However, a charge for taxes that we have paid may be deducted from amounts
withdrawn. If we have previously deducted charges for taxes from Contributions
as described in Section 3.01, we will not again deduct charges for the same
taxes on withdrawals.
SECTION 6.02 CHARGE ON TRANSFER TO THIRD PARTY OR EXCHANGE.
If you request us to make a direct transfer to a third party of amounts under
your Certificate, or request that your Certificate be exchanged for another
contract or certificate issued by another insurance company, we deduct both a
withdrawal charge as described in Section 6.01 (if any) and a charge of [$25]
for any such direct transfer or exchange.
SECTION 6.03 ADMINISTRATIVE CHARGE.
As of the last Business Day of each calendar quarter, we will deduct an
administrative charge from the Annuity Account Value. Such charge is equal to:
(i) for each calendar quarter during the first two Contract Years, [$6.00]
or, if less, [0.50%] of the Annuity Account Value at the end of such
quarter plus the amount of any withdrawals made as described in Section
4.01 during such quarter;
(ii) for each calendar quarter during each Contract Year after the second
Year, [$6.00.]
The charge will be allocated among the Divisions pro-rata based on the amounts
that you have in the Divisions.
SECTION 6.04 DAILY SEPARATE ACCOUNT CHARGE.
Assets of the Investment Divisions will be subject to a daily asset charge. This
daily charge is for financial accounting and for death benefits, mortality risk,
expenses and expense risk which we assume. Such charge will be applied after any
deductions to provide for taxes and will be at a rate not to exceed a guaranteed
annual rate of 1.35%. We have the right to charge less on a current basis. The
charge will be made pursuant to item (c) of "Net Investment Factor" as defined
in Section 2.03.
PART VII - ANNUITY BENEFITS
SECTION 7.01 FIXED ANNUITY BENEFIT.
A "Fixed Annuity Benefit" is an Annuity Benefit under which the periodic
payments are paid in a stated dollar amount.
Payments under a Fixed Annuity Benefit are typically made monthly. You may
choose to have the Annuity Benefit paid at other intervals, such as every three
months, six months, or twelve months, instead of monthly, subject to our rules
at the time you make the choice. This choice may be made at the time the Annuity
Benefit form as described in Section 7.03 is chosen; in that event, all
references in this Certificate to monthly payments will be deemed to mean
payments at the frequency chosen.
SECTION 7.02 VARIABLE ANNUITY BENEFIT.
A "Variable Annuity Benefit" is an Annuity Benefit under which the dollar amount
of the monthly payments may go up or down based on the investment experience of
the Stock Division of the Separate Account.
No. 11993AC Page 12
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These terms apply to Variable Annuity Benefit payments:
ANNUITY UNIT: The "Annuity Unit" is a unit used to determine amounts
payable from the Stock Division under a Variable Annuity Benefit.
ANNUITY UNIT VALUE: The "Annuity Unit Value" on August 27, 1981, was fixed
at $1.26 and $1.52 for contracts with assumed base rates of net investment
return of 5% and 3.5% a year, respectively. For any Valuation Period after
such date, it is the Annuity Unit Value for the preceding Valuation Period
times the Adjusted Net Investment Factor.
ADJUSTED NET INVESTMENT FACTOR: The "Adjusted Net Investment Factor" for a
Valuation Period is the Net Investment Factor for such Period reduced for
each calendar day in the Valuation Period by:
o .00013366 of the Net Investment Factor if the assumed base rate of net
investment return is 5% a year; or
o .00009425 of the Net Investment factor if the assumed base rate of net
investment return is 3.5% a year.
The assumed base rate of net investment return will be 5%, except in
states where the laws that apply do not permit such rate.
AVERAGE ANNUITY UNIT VALUE: The "Average Annuity Unit Value" for a calendar
month is equal to the average of the Annuity Unit Values for all Valuation
Periods which end in such month.
A Variable Annuity Benefit amount will go up if the average daily rate of
investment return in the Stock Division is equivalent to more than 5% or 3.5% a
year and will go down if such rate is equivalent to less than 5% or 3.5% a year.
The daily rate of investment return is after deduction of charges described in
Section 6.04, investment advisory fees and direct operating expenses related to
the Separate Account.
The amount of the first three monthly payments under any Variable Annuity
Benefit is the amount that applies as described in the first paragraph of the
attached Appendix. The amount of the fourth and each later monthly payment will
be equal to the number of Annuity Units with respect to such benefit, times the
Average Annuity Unit Value for the second calendar month preceding the due date
of the payment. The number of Annuity Units with respect to a benefit is the
number equal to:
(a) the amount of the first monthly payment, divided by
(b) the Annuity Unit Value for the Valuation Period which includes the due date
of the first monthly payment.
We will notify the payee how each Variable Annuity Payment is determined.
SECTION 7.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS.
As of the Annuitant's Retirement Date, if the Annuitant is then living, the
Annuity Account Value will be used to provide the Normal Form of Annuity Benefit
(described below). However, you may instead choose (i) to receive the Cash Value
in a single sum, (ii) to apply the Annuity Account Value or Cash Value,
whichever applies as described in the first paragraph of Section 7.04, to
provide an Annuity Benefit or any other form offered by us or one of our
affiliated or subsidiary life insurance companies, or (iii) to apply the Cash
Value to provide any other form of benefit payment offered by us, subject to our
rules then in effect. At the time an Annuity Benefit is purchased, we will issue
a supplementary contract which reflects the Annuity Benefit terms.
We will provide notice and election forms to you not more than six months before
the Retirement Date.
No. 11993AC Page 13
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If you choose to terminate coverage under the Contract as described in Section
4.02 before the Retirement Date, a choice may be made to receive any form of
benefit payment offered by us, subject to our rules then in effect and any
requirements of the Code which apply.
We will have the right to require you to give us any information we need to
provide an Annuity Benefit. We will be fully protected in relying on such
information and need not inquire as to the accuracy or completeness of it.
The following annuity forms will apply. We may offer other annuity forms as
available from us or from one of our affiliated or subsidiary life insurance
companies.
NORMAL FORM. The term "Normal Form" of an Annuity Benefit means the Fixed
Annuity Benefit payable on the Life - Period Certain Annuity Form, defined
below.
LIFE - PERIOD CERTAIN ANNUITY. The "Life - Period Certain Annuity" is an
annuity payable on the Life Annuity Form, but with 10 years of payments
guaranteed (10 years certain period). That is, if the Annuitant dies before
the certain period has ended, payments will be paid to the beneficiary
named to receive such payments for the balance of the certain period.
JOINT AND SURVIVOR LIFE ANNUITY FORM. The "Joint and Survivor Life Annuity
Form" is an annuity which provides monthly payments while either of two
persons upon whose lives such payments depend is living. The monthly
amount to be paid when only one of the persons is living will be equal to a
percentage of the monthly amount that was paid while both were living. This
percentage may be 50% or any higher percentage up to and including 100%, as
chosen. The payments commence on the date as of which the Joint and
Survivor Life Annuity Form is purchased and end with the last payment due
before the death of the survivor.
LIFE ANNUITY FORM. The "Life Annuity Form" is an annuity which provides
monthly payments during the lifetime of the person upon whose life such
payments depend. The payments commence on the date as of which the Life
Annuity Form is purchased and end with the last payment due before the
death of such person.
PERIOD CERTAIN ANNUITY. The "Period Certain Annuity" is an annuity which
does not involve life contingencies. It provides payments only for the
period specified (usually 5, 10, 15, or 20 years, but other periods form 3
to 25 years are available from us) when the annuity is chosen. It does not
permit any prepayment of the unpaid principal (that is, you cannot elect to
receive part of the payments as a single sum payment with the rest paid in
monthly annuity payments).
SECTION 7.04 AMOUNT OF ANNUITY BENEFITS.
If you choose as described in the first or third paragraph of Section 7.03 to
have an Annuity Benefit paid in lieu of the Cash Value, the amount used to
provide the Annuity Benefit will be (i) the Annuity Account Value if the annuity
form chosen provides payments for a person's remaining lifetime or (ii) the Cash
Value if the annuity form chosen does not provide such lifetime payments.
The amount used to provide an Annuity Benefit may be reduced by a charge for any
taxes which apply on annuity purchase payments. If we have previously deducted
charges for taxes from Contributions as provided in Section 3.01, we will not
again deduct charges for the same taxes before an Annuity Benefit is provided.
The balance will be used to buy the Annuity Benefit on the basis of either (i)
the Table of Guaranteed Annuity Payments shown in the attached Appendix or (ii)
our then current individual annuity rates, whichever rates would provide a
larger benefit with respect to the payee. Regardless of the basis used, the
Benefit will be governed by our supplementary contract which will be issued to
you.
After an Annuity Benefit is provided, the amounts you have in the Divisions and
the Annuity Account Value will be zero.
No. 11993AC Page 14
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SECTION 7.05 CONDITIONS.
We have the right to ask for proof acceptable to us that the person on whose
life a benefit payment is based is alive when each payment is due. We will
require proof of the age of any person on whose life an annuity form is based.
If a benefit was based on information that is later found not to be correct,
such benefit will be adjusted on the basis of the correct information. The
adjustment will be made in the amount of the benefit payments, or any amount
used to provide the benefit, or any combination. Overpayments by us will be
charged against future payments. Underpayments will be added to future payments.
Our liability is limited to the correct information and the actual amounts used
to provide the benefits.
If we receive proof acceptable to us that (i) a payee is not physically or
mentally competent to receive such payment or is a minor, (ii) another person or
an institution has custody of such payee, and (iii) no guardian, committee, or
anyone else for the payee's estate has been appointed, we may make the payments
to such other person or institution. In the case of a minor, the payments will
not exceed $200. We will then have no further liability with respect to the
payments so made.
With respect to an annuity form providing payments for a period certain, you may
name, and later change, a payee to receive future payments that fall due after
the death of the person on whose life the payments are based.
If the amount to be applied to provide payments is less than $2,000, or would
result in an initial payment of less than $20, we may pay the amount to the
payee in a single sum instead of as payments under the annuity form chosen.
Payments under annuity forms with lifetime payments end with the last payment
due before the death of the person on whose life the payments are based or the
end of the period certain if later.
PART VIII - GENERAL
SECTION 8.01 CONTRACT.
The Contract is the entire Contract between the parties. The terms of the
Contract will govern with respect to our rights and obligations.
The Contract may not be changed, nor may any of our rights or rules be waived,
except in writing and by our authorized officer. The terms of the Contract may
be changed by amendment or replacement upon agreement between the Contract
holder and us without the consent of any other person.
The benefits and values under the Contract will not be less than the minimum
benefits required by any statute of the State in which a Certificate is
delivered.
SECTION 8.02 STATUTORY COMPLIANCE.
We have the right to change the Contract without the consent of any other person
in order to comply with laws and regulations which apply. Such right will
include, but not be limited to, the right to conform the Contract and any
Certificate to reflect changes in the Code, applicable Treasury Regulations, or
published rulings of the Internal Revenue Service in order that each Certificate
issued under the Contract will continue to be an "annuity" as described in
Section 72, or other Section which applies, of the Code.
No. 11993AC Page 15
<PAGE>
SECTION 8.03 RIGHTS TO CHANGE.
We have the following rights to change certain terms of the Contract and this
Certificate:
a. upon at least 90 advance notice to you:
(i) to establish or change minimum and maximum amounts which may apply
to Contributions;
(ii) to establish or change restrictions on transfers among Divisions;
(iii) to change any charge described in Section 6.01, 6.02 or 6.03, such
as withdrawal charges and those related to the administrative
functions covered by such charges, at any time to reflect any change
in our expenses, subject to any law that applies;
(iv) to change at any time on and after the fifth anniversary of the
Contract Date, at intervals of not less than five years, the
actuarial basis used in the Tables of Guaranteed Annuity Payments
shown in the attached Appendix (no such change will apply to any
Annuity Benefit provided before the change).
b. with respect to the Separate Account:
(i) to add Investment Divisions (or sub-divisions) to, or to remove
Divisions (or sub-divisions) from, the Separate Account, or to add
other separate accounts or investment funds;
(ii) to combine any two or more Investment Divisions or sub-divisions;
(iii) to transfer the assets we determine to be the share of the class of
contracts to which the Certificates issued under the Contract belong
from any Investment Division to another Investment Division;
(iv) to operate the Separate Account or any Investment Division as a
management investment company under the Investment Company Act of
1940 (the "Act");
(v) to deregister the Separate Account under the Act, provided that such
action conforms with the terms of any law which applies;
(vi) to restrict or eliminate any voting rights as to the Separate
Account;
(vii) to cause one or more Investment Divisions to invest some or all of
their assets in one or more other trusts or investment companies.
If the exercise of these rights results in a material change in the
underlying investments of an Investment Division, you will be notified of
such exercise, as required by law.
Any such change will be made only if we are doing so under all Certificates
issued under the Contract.
SECTION 8.04 DEFERMENT.
The use of proceeds to provide a Variable Annuity, payment of a death benefit
under Section 5.01 or 5.02 and payment of any portion of your Annuity Account
Value (less any withdrawal charge) will be made within seven days after the
Transaction Date. Payments or use of proceeds from the Investment Divisions can
be deferred for any period during which (1) the New York Stock Exchange is
closed or trading is restricted, (2) sales of securities or determination of the
fair value of an Investment Division's assets is not reasonably practicable
because of an emergency, or (3) the Securities and Exchange Commission, by
order, permits us to defer payment in order to protect persons with interests in
the Investment Divisions. We can defer payment or transfer of any portion
No. 11993AC Page 16
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of the Annuity Account Value in the Guaranteed Interest Division for up to six
months while you are living.
SECTION 8.05 ANNUAL REPORTS.
At the end of each Contract Year until the Retirement Date, we will send you a
report showing:
(1) the dollar amount in the Guaranteed Interest Division,
(2) the total number of Accumulation Units in each Investment Division,
(3) the Accumulation Unit Value,
(4) the dollar amount in each Investment Division,
(5) the Cash Value, and
(6) the amount of the death benefit.
Also, after the Retirement Date, we will notify you of the number of Annuity
Units and the Average Annuity Unit Value used to determine the amount of each
Variable Annuity Benefit payment, if any. Such report will be mailed with each
payment.
SECTION 8.06 CHANGE OF OWNER.
While the Annuitant is living, you may name a new Owner in writing in a form we
accept. The change will take effect on the date you sign the written form, but
it will not apply to any payment we make or other actions we take before we
receive the form.
SECTION 8.07 ASSIGNMENTS.
The interest of anyone covered under the Contract may not be assigned as
collateral or security for a loan. Otherwise, you may assign this Certificate
and the rights described in it before the Retirement Date. We will not be bound
by an assignment unless it is in writing and we have received it. Your rights
and those of any other persons referred to in this Certificate will be subject
to the assignment. We assume no responsibility for the validity of any
assignment.
No amounts payable to a payee other than you may be assigned, unless permitted
in this Certificate by that payee, nor will they be subject to the claims of
creditors or to legal process, except to the extent permitted by law.
SECTION 8.08 AGE AND SEX.
If the age or sex on whose life an Annuity Benefit is based has been misstated,
any benefits will be those which would have been purchased at the correct age
and sex. Any overpayments or underpayments made by us will be charged or
credited with interest at the rate which then applies. Such interest will be
deducted from or added to future payments.
No. 11993AC Page 17
<PAGE>
APPENDIX
The Tables of Guaranteed Annuity Payments set forth the minimum amount of
monthly income that $1,000 of Annuity Value will provide under the terms of the
Contract on the Life Annuity Form with Ten Years Certain. The amount of income
provided under the Fixed Annuity Benefit payable on the Life Annuity Form with
Ten Years Certain is based on 3.0% interest and the 1983 Individual Annuity
Table "a" projected with modified Scale "G". The amounts of income initially
provided under the Variable Annuity Benefit payable on the Life Annuity Form
with Ten Years Certain is based on the 1983 Individual Annuity Table "a"
projected with modified Scale "G" and a modified two year age set back, and on
an Assumed Base Rate of Net Investment Return of 3.5% or 5%, whichever applies
pursuant to Section 7.02
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us on the same actuarial basis.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE
LIFE ANNUITY FORM WITH TEN YEARS CERTAIN
(Minimum Monthly Income per $1,000 of Annuity Account Value)
Monthly Income Monthly Income
Age Males Females Age Males Females
- --- ----- ------- --- ----- -------
60 4.68 4.22 73 6.25 5.58
61 4.77 4.29 74 6.39 5.72
62 4.87 4.37 75 6.55 5.87
63 4.97 4.46 76 6.70 6.03
64 5.08 4.54 77 6.86 6.19
65 5.19 4.64 78 7.02 6.36
66 5.31 4.73 79 7.18 6.53
67 5.43 4.84 80 7.34 6.70
68 5.56 4.95 81 7.50 6.88
69 5.69 5.06 82 7.66 7.06
70 5.82 5.18 83 7.81 7.23
71 5.96 5.31 84 7.96 7.41
72 6.10 5.44 85 8.11 7.58
No. 11993AC Page 18
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ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1,000 of Annuity Account Value)
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM WITH TEN YEARS CERTAIN IF ASSUMED BASE RATE OF
RETURN IS:
3.5% 5.0%
Age Males Females Males Females
- --- ----- ------- ----- -------
60 4.80 4.37 5.69 5.28
61 4.88 4.44 5.77 5.34
62 4.97 4.51 5.86 5.41
63 5.06 4.59 5.94 5.48
64 5.16 4.66 6.04 5.55
65 5.26 4.75 6.14 5.63
66 5.37 4.83 6.24 5.71
67 5.48 4.93 6.34 5.80
68 5.59 5.02 6.46 5.89
69 5.71 5.13 6.57 5.99
70 5.84 5.23 6.69 6.10
No. 11993AC Page 19
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[THE EQUITABLE LOGO]
ENDORSEMENT
APPLICABLE TO IRA CERTIFICATES
under which both periodic Contributions and rollover Contributions,
as described in this Endorsement, may be made.
This Certificate is deemed an "IRA Certificate" if it is issued as an individual
retirement annuity contract which meets the requirements of Section 408(b) of
the Code. If this Certificate is to be so deemed, this will be specified in the
application and on page 3 of this Certificate. If so, then it is established for
the exclusive benefit of you and your beneficiaries, and the terms below change,
or are added to, the stated Sections of this Certificate.
SECTION 1.16 OWNER:
The Owner of an IRA Certificate will be the Annuitant. So both "the
Owner" and "the Annuitant" as used in this Certificate mean you.
SECTION 1.18 RETIREMENT DATE:
Section 1.18 of this Certificate defines the "Retirement Date." No
initial choice of Retirement Date may be later than age 70-1/2. Before
your Retirement Date, you may change your Retirement Date to a later age
(up to age 85). In such a case you must withdraw at least the minimum
distributions required under Sections 408(b) and 401(a) (9) of the Code
and Treasury Regulations that apply. See Section 7.03 of this
Endorsement.
SECTION 3.01 CONTRIBUTIONS:
Section 3.01 states that an initial contribution of less than[$1,000]
may not be accepted. This does not apply to IRA Certificates.
The following will also apply:
Contributions are not fixed and may be made at any time and in any
amount which is at least [$50.]
No Contributions will be accepted unless they are in cash. Except in the
case of a rollover contribution (as permitted by Sections 402(c),
403(a)(4, 403(b)(8), or 408(d)(3) of the Code), the total of such
Contributions will not exceed $2,000 for any taxable year. Amounts
transferred to the Contract from an individual retirement account or
annuity contract which meets the requirements of Section 408 of the Code
are not subject to the $2,000 limit.
If you make a Contribution which qualifies as an eligible retirement
plan rollover within the meaning of Section 402(c) or 403(b)(8) of the
Code and you commingle such Contribution with other Contributions, you
may not be able to roll over the eligible retirement plan Contributions
and earnings to another qualified plan or Code Section 403(b)
arrangement at a future date, unless the Code permits.
SECTION 4.02 TERMINATION OF COVERAGE UNDER THE CONTRACT:
In the event that an annuity bought under the contract fails to qualify
as an annuity which meets the requirements of Section 408(b) of the
Code, we will have the right, upon receipt of notice of such fact,
before the Retirement Date, to terminate coverage under the Contract. In
that case, we will pay to you the Annuity Account Value less a deduction
for the part which applies to any Federal income tax payable by you
which would not have been payable with respect to an annuity which meets
such requirements.
PF11993IRA Page 1
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SECTION 5.01 DEATH BENEFIT:
If you married at you death before the Retirement Date, and your spouse
is named as death beneficiary, you spouse will be treated as the
contingent annuitant (Annuitant and Owner) under this Certificate.
Payment of the death benefit is subject to Section 7.03 of this
Endorsement.
SECTION 5.02 OWNER DEATH DISTRIBUTION RULES:
This Section does not apply to IRA Certificates.
SECTION 5.03 BENEFICIARY - SUCCESSOR OWNER:
Section 5.03 is deleted and the following inserted in its place.
SECTION 5.03 BENEFICIARY
On the application, you give us the name of the beneficiary who is to
receive any death benefit payable on your death. You may change the
beneficiary from time to time during your lifetime and while coverage
under the Contract is in force. Any such change must be made in writing
in a form we accept. A change will, upon receipt at the Processing
Office, take effect as of the date the written form was signed, whether
or not you are living on the date of receipt. We will not be liable as
to any payment we may make before we receive any such change.
On the application you may name a person to be primary beneficiary on
your death and another person to be contingent beneficiary if the
primary beneficiary dies before you. Unless you direct otherwise, if you
have named two or more persons as beneficiary, the beneficiary will be
the named person or persons who survive you. If more than one survive,
they will share equally.
Any part of a death benefit payable as described in Section 5.01 for
which there is no named beneficiary living at your death will be payable
in a single sum to your children who survive you. The payments will be
made in equal shares, or should none survive, then to your estate.
If you so choose in writing, any amount that would otherwise be payable
to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on a form of annuity chosen by you, subject to our rules then
in effect. If at your death there is no choice in effect, the
beneficiary may make such a choice.
SECTION 6.01 WITHDRAWAL CHARGES:
Section 6.01 describes the events under which a withdrawal charge will
not apply. The event below is added:
(vi) a request is made for a refund of a Contribution in excess of
amounts allowed to be contributed under Section 219 and/or Section
408 of the Code within one month of the date on which the
Contribution is made.
SECTION 7.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS:
Section 7.03 of this Certificate refers to the Normal Form of annuity
which is payable. The Normal Form that applies under an IRA Certificate,
in lieu of the form shown in said Section, is defined as follows:
The term "Normal Form of an Annuity Benefit means, (i) if you have a
living spouse at the Retirement Date, the Fixed Annuity Benefit payable
on the Joint and Survivor Life Annuity Form with your spouse as the
contingent annuitant (with 100% of your monthly payment
PF11993IRA Page 2
<PAGE>
amount continued to your spouse), and (ii) if you do not have a living
spouse at the Retirement Date, the Fixed Annuity Benefit payable on the
Life Annuity Form.
Also, the payment of Annuity Benefits as described in Section 7.03 is
subject to the terms which follow, in order to comply with Section
401(a)(9) of the Code and the Treasury Regulations which apply:
Your entire interest in the Certificate will be paid or begin to be paid
no later than the April 1 which follows the calendar year in which you
attain age 70-1/2 ("Required Start Date"). The entire interest may be
paid, as you choose, over (a) your life, or the lives of you and the
named beneficiary, or (b) a period certain which does not extend beyond
your "life expectancy" (defined below), or the joint and last survivor
expectancy of you and the named beneficiary. Payments must be made in
periodic payments at intervals no longer than one year. Also, payments
must be either non-increasing or they may increase only as provided in
Regulations (Q&A F-3 of Proposed Treasury Regulation Section 1.401 (a)
(9)-1 or successor).
All payments made under the Certificate will be made in accordance with
the requirements of Code Section 401(a)(9), including the incidental
death benefit requirements of the Code (Section 401(a)(9)(G)) and
Treasury Regulations which apply (Proposed Treasury Regulation Section
1.401(a)(9)-2).
For purposes of the above, "life expectancy" is computed by use of the
expected return multiples in Tables V and VI of Treasury Regulation
Section 1.72-9. Unless you otherwise choose before the time payments
must begin, life expectancies will be recalculated each year. Such
choice may never be changed and will apply to all years which follow. In
the case of any named beneficiary other than the spouse, life
expectancies will be calculated using the attained age of such
beneficiary during the calendar year in which you attain age 70 1/2 and
payments for any calendar year which follows will be calculated based on
life expectancy reduced by one for each calendar year which has passed
since the calendar year life expectancy was first calculated.
If you die after payment of your entire interest has begun, the
remainder of such interest will continue to be paid at least as quickly
as under the payment method of distribution being used before your
death.
If you die before payment of your entire interest begins, payment of
your entire interest will be completed no later than December 31 of the
calendar year in which the fifth anniversary of your death occurs,
except to the extent that a choice is made to receive death benefit
payments under (a) or (b) below:
(a) If your interest is payable to a beneficiary, then the entire
interest may be paid over the life of, or over a "period certain"
not greater than the life expectancy of, the named beneficiary.
Such payments must commence on or before December 31 of the
calendar year which follows the year of your death.
(b) If the named beneficiary is your surviving spouse, the date that
payments must begin under (a) above will not be earlier than (i)
December 31 of the calendar year which follows the year of your
death or, if later, (ii) December 31 of the calendar year in
which you would have reached age 70-1/2.
For purposes of the "period certain" used in (a) above, life expectancy
is computed by use of the expected return multiples in Tables V and VI
of Treasury Regulation Section 1.72-9. For purposes of payments which
begin after your death, unless the surviving spouse chooses otherwise by
the time payments are required to begin, life expectancies will be
recalculated each year. Such choice may never be changed by such spouse
and will apply to all years which follow. In the case of any other named
beneficiary, life expectancies will be calculated using the attained age
of such beneficiary during the calendar year in which payments are
required to begin, as described in this Section, and payments for any
subsequent calendar year will be calculated based on life expectancy
reduced by one for each calendar year which has passed since the
calendar year life expectancy was first calculated.
PF11993IRA Page 3
<PAGE>
Payments under this Section are deemed to have begun if payments are
made because you have reached the Required Start Date or if, before the
Required Start Date, payments commence to you over a period permitted
and in an annuity form acceptable under proposed Treasury Regulation
1.401(a)(9)-1 or any successor.
SECTION 8.05 ANNUAL REPORTS:
Section 8.05 lists the reports we will send you. We will also send a
report as of the end of each calendar year showing the status of the
annuity and any other reports required by the Code or Treasury
Regulations.
SECTION 8.06 CHANGE OF OWNER:
You may not name a new owner.
SECTION 8.07 ASSIGNMENTS:
In addition to the restrictions on assignments described in section
8.07, your entire interest under this Certificate is not transferable
except by surrender to us. Further, your interest under this Certificate
in non-forfeitable.
APPENDIX
In lieu of the Appendix, the attached "Appendix IRA" applies.
PF11993IRA Page 4
<PAGE>
APPENDIX IRA
APPLICABLE TO IRA CERTIFICATES
The Tables of Guaranteed Annuity Payments set forth this minimum amount
of monthly income that $1,000 of Annuity Value will provide under the
Contract on the Joint and Survivor Life Annuity Form (with 100% of the
amount of your payment continued to your spouse). The amounts of income
provided under the Fixed Annuity Benefit payable on the Life Annuity
Form and Joint and Survivor Life Annuity Form are based on 3.0% interest
and the 1983 Individual Annuity Table "a" projected with modified Scale
"G." The amount of income initially provided under the Variable Annuity
Benefit payable on the Life Annuity Form and the Joint and Survivor Life
Annuity Form are based on the 1983 Individual Annuity Table "a"
projected with modified Scale "G" and a modified two year age set back,
and an Assumed Base Rate of Net Investment Income Return of 3.5% or 5%,
whichever applies pursuant to Section 7.02.
Amounts required for ages or for annuity forms not shown in the Tables
will be calculated by us on the same actuarial basis.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM --
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
Female Ages
-----------
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 3.86 3.90 3.93 3.97 4.01 4.05 4.08 4.12 4.15 4.19 4.22
61 3.88 3.92 3.96 4.00 4.04 4.08 4.12 4.16 4.19 4.23 4.27
62 3.91 3.95 3.99 4.03 4.07 4.11 4.15 4.19 4.23 4.27 4.31
63 3.93 3.97 4.01 4.06 4.10 4.14 4.19 4.23 4.28 4.32 4.36
Male 64 3.95 3.99 4.04 4.08 4.13 4.18 4.22 4.27 4.32 4.36 4.41
Ages 65 3.97 4.02 4.06 4.11 4.16 4.21 4.26 4.31 4.35 4.40 4.45
66 3.99 4.04 4.09 4.14 4.19 4.24 4.29 4.34 4.39 4.45 4.50
67 4.01 4.06 4.11 4.16 4.21 4.27 4.32 4.38 4.43 4.49 4.54
68 4.02 4.08 4.13 4.18 4.24 4.30 4.35 4.41 4.47 4.53 4.59
69 4.04 4.10 4.15 4.21 4.26 4.32 4.38 4.44 4.51 4.57 4.63
70 4.06 4.11 4.17 4.23 4.29 4.35 4.41 4.48 4.54 4.61 4.67
</TABLE>
PF11993IRA Page 5
<PAGE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1000 of Annuity Value)
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED BASE
RATE OF NET INVESTMENT RETURN IS:
3.5% 5.0%
---- ----
AGE MALES FEMALES MALES FEMALES
--- ----- ------ ----- -------
60 4.88 4.41 5.79 5.32
61 4.97 4.48 5.88 5.39
62 5.07 4.55 5.98 5.46
63 5.17 4.63 6.08 5.54
64 5.28 4.72 6.19 5.62
65 5.40 4.81 6.31 5.71
66 5.52 4.90 6.43 5.80
67 5.66 5.00 6.56 5.90
68 5.80 5.11 6.71 6.00
69 5.95 5.22 6.86 6.11
70 6.11 5.34 7.02 6.23
PF11993IRA Page 6
<PAGE>
[THE EQUITABLE LOGO]
ENDORSEMENT
APPLICABLE TO IRA CERTIFICATES
under which only rollover Contributions,
as described in this Endorsement, may be made.
This Certificate is deemed an "IRA Certificate" if it is issued as an individual
retirement annuity contract which meets the requirements of Section 408(b) of
the Code. If this Certificate is to be so deemed, this will be specified in the
application to enroll under the Contract and on page 3 of this Certificate. If
so, then it is established for the exclusive benefit of you and your
beneficiaries, and the terms below change, or are added to, the stated Sections
of this Certificate.
SECTION 1.16 OWNER:
The Owner of an IRA Certificate will be the Annuitant. So both "the Owner"
and "the Annuitant" as used in this Certificate mean you.
SECTION 1.18 RETIREMENT DATE:
Section 1.18 of this Certificate defines the "Retirement Date." No initial
choice of Retirement Date may be later than age 70-1/2. Before your
Retirement Date, you may change your Retirement Date to a later age (up to
age 85). In such case you must withdraw at least the minimum distributions
required under Sections 408(b) and 401(a)(9) of the Code and Treasury
Regulations that apply. See Section 7.03 of this Endorsement.
SECTION 3.01 CONTRIBUTIONS:
The following will also apply:
We will only accept Contributions which qualify as "eligible rollover
amounts" within the meaning of Section 402(c) or 403(b)(8) of the Code, or
"rollover contributions" from a "conduit" individual retirement account or
annuity described in Section 408(d)(3)(A)(ii) and (iii) of the Code, as the
case may be.
If you make a Contribution which qualifies as an eligible retirement plan
rollover within the meaning of Section 402(c) or 403(b)(8) of the Code and
you commingle such Contribution with other Contributions, you may not be
able to roll over the eligible retirement plan Contributions and earnings
to another qualified plan or Code Section 403(b) arrangement at a future
date, unless the Code permits.
SECTION 4.02 TERMINATION OF COVERAGE UNDER THE CONTRACT:
In the event that an annuity bought under the Contract fails to qualify as
an annuity which meets the requirements of Section 408(b) of the Code, we
will have the right, upon receipt of notice of such fact, before the
Retirement Date, to terminate coverage under the Contract. In that case, we
will pay to you the Annuity Account Value less a deduction for the part
which applies to any Federal income tax payable by you which would not have
been payable with respect to an annuity which meets such requirements.
PF 11993QPI Page 1
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<PAGE>
SECTION 5.01 DEATH BENEFIT:
If you are married at your death before the Retirement Date, and your
spouse is named as death beneficiary, your spouse will be treated as the
contingent annuitant (Annuitant and Owner) under this Certificate. Payment
of the death benefit is subject to Section 7.03 of this Endorsement.
SECTION 5.02 OWNER DEATH DISTRIBUTION RULES:
This Section does not apply to IRA Certificates.
SECTION 5.03 BENEFICIARY -- SUCCESSOR OWNER:
Section 5.03 is deleted and the following inserted in its place.
SECTION 5.03 BENEFICIARY
On the application, you give us the name of the beneficiary who is to
receive any death benefit payable on your death. You may change the
beneficiary from time to time during your lifetime and while coverage under
the Contract is in force. Any such change must be made in writing in a form
we accept. A change will, upon receipt at the Processing Office, take
effect as of the date the written form was signed, whether or not you are
living on the date of receipt. We will not be liable as to any payment we
may make before we receive any such change.
On the application you may name a person to be primary beneficiary on your
death and another person to be contingent beneficiary if the primary
beneficiary dies before you. Unless you direct otherwise, if you have named
two or more persons as beneficiary, the beneficiary will be the named
person or persons who survive you. If more than one survive, they will
share equally.
Any part of a death benefit payable as described in Section 5.01 for which
there is no named beneficiary living at your death will be payable in a
single sum to your children who survive you. The payments will be made in
equal shares, or should none survive, then to your estate.
If you so choose in writing, any amount that would otherwise be payable to
a beneficiary in a single sum may be applied to provide an Annuity Benefit,
on a form of annuity chosen by you, subject to our rules then in effect. If
at your death there is no choice in effect, the beneficiary may make such a
choice.
SECTION 6.01 WITHDRAWAL CHARGES:
Section 6.01 describes the events under which a withdrawal charge will not
apply. The event below is added:
(vi) a request is made for a refund of a Contribution in excess of
amounts allowed to be contributed under Section 219 and/or Section
408 of the Code within one month of the date on which the
Contribution is made.
SECTION 7.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS:
Section 7.03 of this Certificate refers to the Normal Form of annuity which
is payable. The Normal Form that applies under an IRA Certificate, in lieu
of the form shown in said Section, is defined as follows:
PF 11993QPI Page 2
<PAGE>
The term Normal Form of an Annuity Benefit means, (i) if you have a living
spouse at the Retirement Date, the Fixed Annuity Benefit payable on the
Joint and Survivor Life Annuity Form with your spouse as the contingent
annuitant (with 100% of your monthly payment amount continued to your
spouse), and (ii) if you do not have a living spouse at the Retirement
Date, the Fixed Annuity Benefit payable on the Life Annuity Form.
Also, the payment of Annuity Benefits as described in Section 7.03 is
subject to the terms which follow, in order to comply with Section
401(a)(9) of the Code and the Treasury Regulations which apply:
Your entire interest in the Certificate will be paid or begin to be paid no
later than the April 1 which follows the calendar year in which you attain
age 70-1/2 ("Required Start Date"). The entire interest may be paid, as you
choose, over (a) your life, or the lives of you and the named beneficiary,
or (b) a period certain which does not extend beyond your "life expectancy"
(defined below), or the joint and last survivor expectancy of you and the
named beneficiary. Payments must be made in periodic payments at intervals
no longer than one year. Also, payments must be either non-increasing or
they may increase only as provided in Regulations (Q & A F-3 of Proposed
Treasury Regulation Section 1.401(a)(9)-1 or successor).
All payments made under the Certificate will be made in accordance with the
requirements of Code Section 401(a)(9), including the incidental death
benefit requirements of the Code (Section 401(a)(9)(G)) and Treasury
Regulations which apply (Proposed Treasury Regulation Section
1.401(a)(9)-2).
For purposes of the above, "life expectancy" is computed by use of the
expected return multiples in Tables V and VI of Treasury Regulation Section
1.72-9. Unless you otherwise choose before the time payments must begin,
life expectancies will be recalculated each year. Such choice may never be
changed and will apply to all years which follow. In the case of any named
beneficiary other than the spouse, life expectancies will be calculated
using the attained age of such beneficiary during the calendar year in
which you attain age 70 1/2 and payments for any calendar year which
follows will be calculated based on life expectancy reduced by one for each
calendar year which has passed since the calendar year life expectancy was
first calculated.
If you die after payment of your entire interest has begun, the remainder
of such interest will continue to be paid at least as quickly as under the
payment method of distribution being used before your death.
If you die before payment of your entire interest begins, payment of your
entire interest will be completed no later than December 31 of the calendar
year in which the fifth anniversary of your death occurs, except to the
extent that a choice is made to receive death benefit payments under (a) or
(b) below:
(a) If your interest is payable to a beneficiary, then the entire
interest may be paid over the life of, or over a "period certain" not
greater than the life expectancy of, the named beneficiary. Such
payments must commence on or before December 31 of the calendar year
which follows the year of your death.
(b) If the named beneficiary is your surviving spouse, the date that
payments must begin under (a) above will not be earlier than (i)
December 31 of the
PF 11993QPI Page 3
<PAGE>
calendar year which follows the year of your death or, if later,
(ii) December 31 of the calendar year in which you would have
reached age 70-1/2.
For purposes of the "period certain" used in (a) above, life expectancy is
computed by use of the expected return multiples in Tables V and VI of
Treasury Regulation Section 1.72-9. For purposes of payments which begin
after your death, unless the surviving spouse chooses otherwise by the time
payments are required to begin, life expectancies will be recalculated each
year. Such choice may never be changed by such spouse and will apply to all
years which follow. In the case of any other named beneficiary, life
expectancies will be calculated using the attained age of such beneficiary
during the calendar year in which payments are required to begin, as
described in this Section, and payments for any subsequent calendar year
will be calculated based on life expectancy reduced by one for each
calendar year which has passed since the calendar year life expectancy was
first calculated.
Payments under this Section are deemed to have begun if payments are made
because you have reached the Required Start Date or if, before the Required
Start Date, payments commence to you over a period permitted and in an
annuity form acceptable under proposed Treasury Regulation 1.401(a)(9)-1 or
any successor.
SECTION 8.05 ANNUAL REPORTS:
Section 8.05 lists the reports we will send you. We will also send a report
as of the end of each calendar year showing the status of the annuity and
any other reports required by the Code or Treasury Regulations.
SECTION 8.06 CHANGE OF OWNER:
You may not name a new owner.
SECTION 8.07 ASSIGNMENTS:
In addition to the restrictions on assignments described in section 8.07,
your entire interest under this Certificate is not transferable except by
surrender to us. Further, your interest under this Certificate is
non-forfeitable.
APPENDIX
In lieu of the Appendix, the attached "Appendix IRA" applies.
PF 11993QPI Page 4
<PAGE>
APPENDIX IRA
APPLICABLE TO IRA CERTIFICATES
The Tables of Guaranteed Annuity Payments set forth this minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract on
the Joint and Survivor Life Annuity Form (with 100% of the amount of your
payment continued to your spouse). The amounts of income provided under the
Fixed Annuity Benefit payable on the Life Annuity Form and Joint and Survivor
Life Annuity Form are based on 3.0% interest and the 1983 Individual Annuity
Table "a" projected with modified Scale "G." The amount of income initially
provided under the Variable Annuity Benefit payable on the Life Annuity Form and
the Joint and Survivor Life Annuity Form are based on the 1983 Individual
Annuity Table "a" projected with modified Scale "G" and a modified two year age
set back, and an Assumed Base Rate of Net Investment Income Return of 3.5% or
5%, whichever applies pursuant to Section 7.02.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us on the same actuarial basis.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM --
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
Female Ages
-----------
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 3.86 3.90 3.93 3.97 4.01 4.05 4.08 4.12 4.15 4.19 4.22
61 3.88 3.92 3.96 4.00 4.04 4.08 4.12 4.16 4.19 4.23 4.27
62 3.91 3.95 3.99 4.03 4.07 4.11 4.15 4.19 4.23 4.27 4.31
63 3.93 3.97 4.01 4.06 4.10 4.14 4.19 4.23 4.28 4.32 4.36
Male 64 3.95 3.99 4.04 4.08 4.13 4.18 4.22 4.27 4.32 4.36 4.41
Ages 65 3.97 4.02 4.06 4.11 4.16 4.21 4.26 4.31 4.35 4.40 4.45
---- 66 3.99 4.04 4.09 4.14 4.19 4.24 4.29 4.34 4.39 4.45 4.50
67 4.01 4.06 4.11 4.16 4.21 4.27 4.32 4.38 4.43 4.49 4.54
68 4.02 4.08 4.13 4.18 4.24 4.30 4.35 4.41 4.47 4.53 4.59
69 4.04 4.10 4.15 4.21 4.26 4.32 4.38 4.44 4.51 4.57 4.63
70 4.06 4.11 4.17 4.23 4.29 4.35 4.41 4.48 4.54 4.61 4.67
</TABLE>
PF 11993QPI Page 5
<PAGE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1000 of Annuity Value)
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED BASE
RATE OF NET INVESTMENT RETURN IS:
---------------------------------
3.5% 5.0%
---- ----
AGE MALES FEMALES MALES FEMALES
--- ----- ------- ----- -------
60 4.88 4.41 5.79 5.32
61 4.97 4.48 5.88 5.39
62 5.07 4.55 5.98 5.46
63 5.17 4.63 6.08 5.54
64 5.28 4.72 6.19 5.62
65 5.40 4.81 6.31 5.71
66 5.52 4.90 6.43 5.80
67 5.66 5.00 6.56 5.90
68 5.80 5.11 6.71 6.00
69 5.95 5.22 6.86 6.11
70 6.11 5.34 7.02 6.23
PF 11993QPI Page 6
<PAGE>
[THE EQUITABLE LOGO]
ENDORSEMENT
APPLICABLE TO SEP CERTIFICATES
This Certificate is deemed a "SEP Certificate" if it is purchased under a
written program which is a "Simplified Employee Pension," as described in
Section 408(k) of the Code. Such a program as adopted by the Annuitant's
employer may provide for salary reductions, whereby the employer makes
tax-deferred contributions for the Annuitant in lieu of salary, and must meet
the requirements of Section 408(b) of the Code. If this Certificate is to be so
deemed, this will be specified in the application to enroll under the Contract
and on page 3 of this Certificate. If so, then it is established for the
exclusive benefit of you and your beneficiaries, and the terms below change, or
are added to, the stated Sections of this Certificate.
SECTION 1.16 OWNER:
The Owner of a SEP Certificate will be the Annuitant. So both "the
Owner" and "the Annuitant" as used in this Certificate mean you.
SECTION 1.18 RETIREMENT DATE:
Section 1.18 of this Certificate defines the "Retirement Date." No
initial choice of Retirement Date may be later than age 70-1/2. Before
your Retirement Date, you may change your Retirement Date to a later
age (up to age 85). In such a case you must withdraw at least the
minimum distributions required under Sections 408(b) and 401(a)(9) of
the Code and Treasury Regulations that apply. See Section 7.03 of this
Endorsement.
SECTION 3.01 CONTRIBUTIONS:
Section 3.01 states that an initial contribution of less than [$1,000]
may not be accepted. This does not apply to SEP Certificates.
The following will also apply:
Contributions are not fixed and may be made at any time and in any
amount of at least [$50.]
No Contributions will be accepted unless they are in cash. Except in
the case of a rollover contribution (as permitted by Sections 402(c),
403(a)(4), 403(b)(8), or 408(d)(3) of the Code), or a Contribution made
under the terms of a Simplified Employee Pension as contained in
Section 408(k) of the Code, the total of such Contributions will not
exceed $2,000 for any taxable year. Amounts transferred to the Contract
from an individual retirement account or annuity contract which meets
the requirements of Section 408 of the Code are not subject to the
$2,000 limit.
If you make a Contribution which qualifies as an eligible retirement
plan rollover within the meaning of Section 402(c) or 403(b)(8) of the
Code and you commingle such Contribution with other Contributions, you
may not be able to roll over the eligible retirement plan Contributions
and earnings to another qualified plan or Code Section 403(b)
arrangement at a future date, unless the Code permits.
PF11993SEP Page 1
<PAGE>
SECTION 4.02 TERMINATION OF COVERAGE UNDER THE CONTRACT:
In the event that an annuity bought under the Contract fails to qualify
as an annuity which meets the requirements of Section 408(b) of the
Code, we will have the right, upon receipt of notice of such fact,
before the Retirement Date, to terminate coverage under the Contract.
In that case, we will pay to you the Annuity Account Value less a
deduction for the part which applies to any Federal income tax payable
by you which would not have been payable with respect to an annuity
which meets such requirements.
SECTION 5.01 DEATH BENEFIT:
If you are married at your death before the Retirement Date, and your
spouse is named as death beneficiary, your spouse will be treated as
the contingent annuitant (Annuitant and Owner) under this Certificate.
Payment of the death benefit is subject to Section 7.03 of this
Endorsement.
SECTION 5.02 OWNER DEATH DISTRIBUTION RULES:
This Section does not apply to SEP Certificates.
SECTION 5.03 BENEFICIARY - SUCCESSOR OWNER:
Section 5.03 is deleted and the following inserted in its place.
SECTION 5.03 BENEFICIARY
On the application, you give us the name of the beneficiary who is to
receive any death benefit payable on your death. You may change the
beneficiary from time to time during your lifetime and while coverage
under the Contract is in force. Any such change must be made in writing
in a form we accept. A change will, upon receipt at the Processing
Office, take effect as of the date the written form was signed, whether
or not you are living on the date of receipt. We will not be liable as
to any payment we may make before we receive any such change.
On the application you may name a person to be primary beneficiary on
your death and another person to be contingent beneficiary if the
primary beneficiary dies before you. Unless you direct otherwise, if
you have named two or more persons as beneficiary, the beneficiary will
be the named person or persons who survive you. If more than one
survive, they will share equally.
Any part of a death benefit payable as described in Section 5.01 for
which there is no named beneficiary living at your death will be
payable in a single sum to your children who survive you. The payments
will be made in equal shares, or should none survive, then to your
estate.
If you so choose in writing, any amount that would otherwise be payable
to a beneficiary in a single sum may be applied to provide an Annuity
Benefit, on a form of annuity chosen by you, subject to our rules then
in effect. If at your death there is no choice in effect, the
beneficiary may make such a choice.
PF11993SEP Page 2
<PAGE>
SECTION 6.01 WITHDRAWAL CHARGES:
Section 6.01 describes the events under which a withdrawal charge will
not apply. The events below are added:
(vi) a request is made for a refund of a Contribution in excess of
amounts allowed to be contributed under Section 219 and/or
Section 408 of the Code within one month of the date on which
the Contribution is made, or
(vii) a distribution of deferrals disallowed by reason of failure
to meet the requirements of Section 408(k)(6)(A)(ii) of the
Code, including income thereon and less any loss allowable
thereto, is made no later than April 15 which follows the
calendar year of the notification by your employer of such
disallowance, or
(viii) a distribution of "excess contributions," as such term is
defined in Section 408(k)(6)(C)(ii) of the Code, including
the income thereon and less any loss allowable thereto, is
made no later than the end of the plan year of the Simplified
Employee Pension which follows the plan year in which such
excess contributions were made, or
(ix) a distribution of "excess deferrals" as such term is defined
in Section 402(g)(2) of the Code, including income thereon
and less any loss allowable thereto, is made no later than
April 15 which follows the year in which such excess
deferrals were made.
SECTION 7.03 ELECTION AND COMMENCEMENT OF ANNUITY BENEFITS:
Section 7.03 of this Certificate refers to the Normal Form of annuity
which is payable. The Normal Form that applies under a SEP Certificate,
in lieu of the form shown in said Section, is defined as follows:
The term "Normal Form" of an Annuity Benefit means, (i) if you have a
living spouse at the retirement Date, the Fixed Annuity Benefit payable
on the Joint and Survivor Life Annuity form with your spouse as the
contingent annuitant (with 100% of your monthly payment amount
continued to your spouse), and (ii) if you do not have a living spouse
at the Retirement Date, the Fixed Annuity Benefit payable on the Life
Annuity Form.
Also, the payment of Annuity Benefits as described in Section 7.03 is
subject to the terms which follow, in order to comply with Section
401(a)(9) of the Code and the Treasury Regulations which apply:
Your entire interest in the Certificate will be paid or begin to be
paid no later than the April 1 which follows the calendar year in which
you attain age 70-1/2 ("Required Start Date"). The entire interest may
be paid, as you choose, over (a) your life, or the lives of you and the
named beneficiary, or (b) a period certain which does not extend beyond
your "life expectancy" (defined below), or the joint and last survivor
expectancy of you and the named beneficiary. Payments must be made in
periodic payments at intervals no longer than one year. Also, payments
must be either non-increasing or they may increase only as provided in
Regulations (Q & A F-3 of Proposed Treasury Regulation Section 1.401
(a)(9)-1 or successor).
PF11993SEP Page 3
<PAGE>
All payments made under the Certificate will be made in accordance with
the requirements of Code Section 401(a)(9), including the incidental
death benefit requirements of the Code (Section 401(a)(9)(G)) and
Treasury Regulations which apply (Proposed Treasury Regulation Section
1.401(a)(9)-2).
For purposes of the above, life expectancy is computed by use of the
expected return multiples in Tables V and VI of Treasury Regulation
Section 1.72-9. Unless you otherwise choose before the time payments
must begin, life expectancies will be recalculated each year. Such
choice may never be changed and will apply to all years which follow.
In the case of any named beneficiary other than the spouse, life
expectancies will be calculated using the attained age of such
beneficiary during the calendar year in which you attain age 70 1/2 and
payments for any calendar year which follows will be calculated based
on life expectancy reduced by one for each calendar year which has
passed since the calendar year life expectancy was first calculated.
If you die after payment of your entire interest has begun, the
remainder of such interest will continue to be paid at least as quickly
as under the payment method of distribution being used before your
death.
If you die before payment of your entire interest begins, payment of
your entire interest will be completed no later than December 31 of the
calendar year in which the fifth anniversary of your death occurs,
except to the extent that a choice is made to receive death benefit
payments under (a) or (b) below:
(a) If your interest is payable to a beneficiary, then the entire
interest may be paid over the life of, or over a "period
certain" not greater than the life expectancy of, the named
beneficiary. Such payments must commence on or before December
31 of the calendar year which follows the year of your death.
(b) If the named beneficiary is your surviving spouse, the date
that payments must begin under (a) above will not be earlier
than (i) December 31 of the calendar year which follows the
year of your death or, if later, (ii) December 31 of the
calendar year in which you would have reached age 70-1/2.
For purposes of the "period certain" used in (a) above, life expectancy
is computed by use of the expected return multiples in Tables V and VI
of Treasury Regulation Section 1.72-9. For purposes of payments which
begin after your death, unless the surviving spouse chooses otherwise
by the time payments are required to begin, life expectancies will be
recalculated each year. Such choice may never be changed by such spouse
and will apply to all years which follow. In the case of any other
named beneficiary, life expectancies will be calculated using the
attained age of such beneficiary during the calendar year in which
payments are required to begin, as described in this Section, and
payments for any subsequent calendar year will be calculated based on
life expectancy reduced by one for each calendar year which has passed
since the calendar year life expectancy was first calculated.
Payments under this Section are deemed to have begun if payments are
made because you have reached the Required Start Date or if, before the
Required Start Date, payments commence to you over a period permitted
and in an annuity form acceptable under proposed Treasury Regulation
1.401(a)(9)-1 or any successor.
PF11993SEP Page 4
<PAGE>
SECTION 8.05 ANNUAL REPORTS:
Section 8.05 lists the reports we will send you. We will also send a
report as of the end of each calendar year showing the status of the
annuity and any other reports required by the Code or Treasury
Regulations.
SECTION 8.06 CHANGE OF OWNER:
You may not name a new owner.
SECTION 8.07 ASSIGNMENTS:
In addition to the restrictions on assignments described in section
8.07, your entire interest under this Certificate is not transferable
except by surrender to us. Further, your interest under this
Certificate is non-forefeitable.
SECTION 8.08 AGE AND SEX:
A misstatement of the sex of any person upon whose life an Annuity
Benefit depends does not apply, since the Annuity Benefit tables which
apply, as shown in the Appendix for SEP Certificates, has the same
values for both sexes.
APPENDIX
In lieu of the Appendix, the attached "Appendix SEP" applies.
PF11993SEP Page 5
<PAGE>
APPENDIX SEP
APPLICABLE TO SEP CERTIFICATES
The Tables of Guaranteed Annuity Payments set forth this minimum amount of
monthly income that $1,000 of Annuity Value will provide under the Contract on
the Joint and Survivor Life Annuity Form (with 100% of the amount of your
payment continued to your spouse). The amounts of income provided under the
Fixed Annuity Benefit payable on the Life Annuity Form and Joint and Survivor
Life Annuity Form are based on 3.0% interest and the 1983 Individual Annuity
Table "a" projected with modified Scale "G" and adjusted to a unisex basis based
on a 20%-80% split of males and females, at age 55. The amounts of income
initially provided under the Variable Annuity Benefit payable on the Life
Annuity Form and the Joint and Survivor Life Annuity Form are based on the 1983
Individual Annuity Table "a" projected with modified Scale "G", adjusted with a
modified two year age set back and a 20%-80% split of males and females, at age
55 and an Assumed Base Rate of Net Investment Income Return of 3.5% or 5%,
whichever applies pursuant to Section 7.02.
Amounts required for ages or for annuity forms not shown in the Tables will be
calculated by us on the same actuarial basis.
TABLES OF GUARANTEED ANNUITY PAYMENTS
(Based on Age Nearest Birthday on Due Date of First Payment)
FIXED ANNUITY BENEFIT PAYABLE ON THE JOINT AND
SURVIVOR LIFE ANNUITY FORM --
100% OF PAYMENT AMOUNT TO CONTINUE TO SPOUSE
(Minimum Monthly Income per $1,000 of Annuity Account Value)
<TABLE>
<CAPTION>
Age 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 3.79 3.82 3.84 3.87 3.90 3.92 3.95 3.97 4.00 4.02 4.04
61 3.85 3.87 3.90 3.93 3.96 3.99 4.02 4.04 4.07 4.09
62 3.91 3.94 3.97 4.00 4.03 4.06 4.09 4.11 4.14
63 3.97 4.00 4.04 4.07 4.10 4.13 4.16 4.19
64 4.04 4.07 4.11 4.14 4.18 4.21 4.24
65 4.11 4.15 4.19 4.22 4.26 4.29
66 4.19 4.23 4.27 4.30 4.34
67 4.27 4.31 4.35 4.39
68 4.36 4.40 4.44
69 4.45 4.50
70 4.55
</TABLE>
PF11993SEP Page 6
<PAGE>
ANNUITY BENEFIT PAYABLE ON THE LIFE ANNUITY FORM
(Minimum Monthly Income per $1000 of Annuity Value)
VARIABLE ANNUITY BENEFIT PAYABLE ON
THE LIFE ANNUITY FORM IF ASSUMED BASE
RATE OF NET INVESTMENT RETURN IS:
3.5% 5.0%
---- ----
AGE
60 4.49 5.41
61 4.57 5.48
62 4.65 5.56
63 4.73 5.64
64 4.82 5.73
65 4.91 5.82
66 5.01 5.91
67 5.12 6.02
68 5.23 6.13
69 5.35 6.24
70 5.48 6.37
PF11993SEP Page 7
GROUP ANNUITY CONTRACT NO.: [AC 0000]
-------
CONTRACT HOLDER: [UNITED STATES TRUST COMPANY OF NEW YORK]
- --------------------------------------------------------------------------------
REGISTER DATE: [September 1, 1994]
ISSUED IN: [New York]
This Contract is issued in consideration of payment of the Contributions under
the terms of this Contract.
The terms of this Contract, which include the following pages, are agreed to by
the Contract Holder and The Equitable Life Assurance Society of the United
States ("Equitable").
FOR THE CONTRACT HOLDER FOR EQUITABLE
Title By /s/ Joseph J. Melone
---------------------- ------------------------------------
Chairman and Chief Executive Officer
By By /s/ James M. Benson
---------------------- ------------------------------------
President and Chief Operating Officer
Dated By /s/ Molly K. Heines
---------------------- ------------------------------------
Vice President and Secretary
At [New York, New York] By
------------------------------------
Assistant Registrar
Date of Issue
-------------------------
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE AS DESCRIBED IN PART II OF THIS CONTRACT.
No. 1050-94IC INTEREST RATE GUARANTEE -- NON-PARTICIPATING
<PAGE>
TABLE OF CONTENTS
Page
Part I - DEFINITIONS 3
Part II - INVESTMENT OPTIONS 6
Part III - CONTRIBUTIONS AND ALLOCATIONS 10
Part IV - TRANSFERS AMONG INVESTMENT OPTIONS 11
Part V - WITHDRAWALS AND TERMINATION 12
Part VI - DEATH BENEFITS 13
Part VII - ANNUITY BENEFITS 14
Part VIII - CHARGES 17
Part IX - GENERAL PROVISIONS 20
TABLE OF GUARANTEED ANNUITY PAYMENTS 22
APPENDIX A 24
APPENDIX B 28
APPENDIX C 30
APPENDIX D 33
No. 1050-94IC Page 2
<PAGE>
PART I - DEFINITIONS
SECTION 1.01 ANNUITANT
"Annuitant" means the individual shown as such in the Certificate who has been
enrolled under the Contract according to Equitable's enrollment procedures, or
any successor annuitant. If a Certificate uses the term "Participant" to refer
to the Annuitant, then any reference in this Contract to the Annuitant will be
deemed to mean the "Participant" shown in such Certificate.
SECTION 1.02 ANNUITY ACCOUNT VALUE
"Annuity Account Value" means the sum of the amounts held with respect to a
Certificate in the Investment Options.
SECTION 1.03 ANNUITY BENEFIT
"Annuity Benefit" means a benefit payable by Equitable pursuant to Part VII of
this Contract.
SECTION 1.04 ANNUITY COMMENCEMENT DATE
"Annuity Commencement Date" means the date on which annuity payments are to
commence pursuant to Section 7.03. The Annuity Commencement Date is shown on the
Certificate and is subject to change as described in Section 7.03.
SECTION 1.05 BUSINESS DAY
A "Business Day" is any day on which Equitable is open and the New York Stock
Exchange is open for trading, or any other day specified in the Certificate.
Equitable's Business Day ends at 4:00 p.m., Eastern Time, or such other time as
Equitable designates in writing to each Owner.
SECTION 1.06 CASH VALUE
"Cash Value" means an amount equal to the Annuity Account Value, less any
charges that apply as described in Part VIII and any charges that may apply as
described in any applicable Appendix hereto.
SECTION 1.07 CERTIFICATE
"Certificate" means the certificate which will be issued by Equitable with
respect to each Annuitant, setting forth the benefits and the rights which the
Owner may exercise. The Certificate will also reflect the terms of this Contract
which may differ based on the type of Certificate issued. Some provisions of
this Contract refer to specific requirements related to certain types of
retirement programs, and the Certificate issued with respect to such types of
programs will reflect said provisions; to distinguish among Certificate versions
which may thus be issued under this Contract, the following terms are sometimes
used herein. (These terms represent the Certificate forms which may be available
as of the
No. 1050-94IC Page 3
<PAGE>
Register Date; variations of such form and other forms may be made available by
Equitable at any time on or after the Register Date.)
"IRA Certificate," which applies to a Certificate issued as an
individual retirement annuity meeting the requirements of Section
[408(b)] of the Code;
"Non-Qualified Certificate," which applies to a Certificate which is an
annuity issued other than pursuant to a qualified plan.
SECTION 1.08 CODE
"Code" means the Internal Revenue Code of [1986], as now or hereafter amended,
or any corresponding provisions of prior or subsequent United States revenue
laws.
SECTION 1.09 CONTRACT
"Contract" means this contract including each Appendix, if any, attached hereto.
SECTION 1.10 CONTRACT DATE
"Contract Date" means, with respect to a Certificate, the earlier of (a) the
date on which the Annuitant is enrolled under the Contract, according to
Equitable's enrollment procedures, and (b) the date on which the Annuitant was
enrolled under a Prior Contract, if applicable.
SECTION 1.11 CONTRACT YEAR
"Contract Year" means, with respect to a Certificate, the twelve month period
starting on (i) the Contract Date and (ii) each anniversary of the Contract
Date, unless Equitable agrees to another period.
SECTION 1.12 CONTRIBUTION
"Contribution" means a payment made to Equitable as described in Section 3.01.
SECTION 1.13 EMPLOYER
"Employer" means, if applicable, an employer defined in an Appendix hereto.
SECTION 1.14 GUARANTEED INTEREST RATE
"Guaranteed Interest Rate" means the effective annual rate(s) at which interest
accrues on amounts in the Guaranteed Interest Account as described in Section
2.01. (If a Certificate uses the term "Guaranteed Rate Account" to refer to the
Guaranteed Interest Account, then any reference in this Contract to the
Guaranteed Interest Account will be deemed to mean the "Guaranteed Rate Account"
described in such Certificate.)
No. 1050-94IC Page 4
<PAGE>
SECTION 1.15 INVESTMENT FUND
"Investment Fund" means a sub-fund of a Separate Account. An Investment Fund may
invest its assets in a separate class (or series) or shares of a specified trust
or investment company where each class (or series) represents a separate
portfolio in the specified trust or investment company.
SECTION 1.16 INVESTMENT OPTION
"Investment Option" means the Guaranteed Interest Account, a Separate Account,
or an Investment Fund of a Separate Account or each Guarantee Period in the
Guaranteed Period Account (Separate Account No. 46).
SECTION 1.17 OWNER
"Owner" means the person or entity which owns a Certificate on behalf of the
Annuitant, as named on the Certificate, or any successor owner.
SECTION 1.18 PLAN
"Plan" means, if applicable, the annuity program sponsored by the Employer of
the Annuitant and as may be defined in any Appendix hereto.
SECTION 1.19 PRIOR CONTRACT
"Prior Contract" means another contract or certificate issued by Equitable and
from which the Owner and Equitable have agreed to transfer amounts with respect
to the Annuitant to this Contract.
SECTION 1.20 PROCESSING DATE
"Processing Date" means the day(s) Equitable deducts charges from the Annuity
Account Value. The Certificate shows how often a Processing Date will occur.
SECTION 1.21 PROCESSING OFFICE
"Processing Office" means the Equitable administrative office specified in the
Certificate, or such other location as Equitable may designate upon written
notice to each Owner.
SECTION 1.22 SEPARATE ACCOUNT
"Separate Account" means any of the Separate Accounts (except Equitable's
Separate Account No. 46) described or referred to in Sections 2.02 and 2.05.
SECTION 1.23 TRANSACTION DATE
The Transaction Date is the Business Day Equitable receives at the Processing
Office a Contribution or a transaction request providing the information
Equitable needs. Transaction requests must be in a form acceptable to Equitable.
No. 1050-94IC Page 5
<PAGE>
PART II - INVESTMENT OPTIONS
SECTION 2.01 GUARANTEED INTEREST ACCOUNT
Any amount held in the Guaranteed Interest Account becomes part of Equitable's
general assets, which support the guarantees of this Contract as well as other
obligations of Equitable.
The amount in such Account at any time with respect to a Certificate is equal to
the sum of:
o all amounts that have been allocated or transferred to such Account,
plus
o the amount of any interest credited, less
o all amounts that have been withdrawn (including charges) or
transferred from such Account.
Equitable will credit the amount held in the Guaranteed Interest Account with
interest at effective annual rates that Equitable determines. Equitable will
also determine a minimum Guaranteed Interest Rate that will remain in effect
throughout a stated twelve-month period or a calendar year. The Certificate will
describe the initial Rate(s) to apply for a stated period or periods starting
with the Contract Date.
Equitable guarantees that any rate so determined after a Contract Date will
never be less than the minimum rate shown in the Certificate.
SECTION 2.02 SEPARATE ACCOUNT
Equitable has established the Separate Account(s) and maintains such Account(s)
in accordance with the laws of New York State. Income, realized and unrealized
gains and losses from the assets of the Separate Account(s) are credited to or
charged against it without regard to Equitable's other income, gains or losses.
Assets are placed in the Separate Account(s) to support this Contract and other
variable annuity contracts and certificates. Assets may be placed in the
Separate Account(s) for other purposes, but not to support contracts or policies
other than variable annuities and variable life insurance.
The Certificate sets forth the Separate Account(s) available under this
Contract. A Separate Account may be subdivided into Investment Funds.
The assets of a Separate Account are Equitable's property. The portion of such
assets equal to the reserves and other contract liabilities will not be
chargeable with liabilities which arise out of any other business Equitable
conducts. Equitable may transfer assets of a Separate Account in excess of the
reserves and other liabilities with respect to such Account to another Separate
Account or to Equitable's general account.
No. 1050-94IC Page 6
<PAGE>
Equitable may, in its discretion, invest Separate Account assets in any
investment permitted by applicable law. Equitable may rely conclusively on the
opinion of counsel (including counsel in its employ) as to what investments
Equitable may make as law permits.
SECTION 2.03 SEPARATE ACCOUNT ACCUMULATION UNITS AND UNIT VALUES
The amount in a Separate Account with respect to an Annuitant at any time is
equal to the number of Accumulation Units in that Account with respect to the
Annuitant multiplied by the Accumulation Unit Value which applies at that time.
For the purposes of this Contract, "Accumulation Unit" means a unit which is
purchased in a Separate Account, and "Accumulation Unit Value" means the dollar
value of each Accumulation Unit in a Separate Account on a given date. (If
Investment Funds apply as described in Section 2.02, then the terms of this
Section 2.03 apply separately to each Fund, unless otherwise stated.)
Amounts allocated or transferred to a Separate Account are used to purchase
Accumulation Units of that Account. Units are redeemed when amounts are
deducted, transferred or withdrawn.
The number of Accumulation Units in a Separate Account at any time is equal to
the number of Accumulation Units purchased minus the number of Units redeemed in
that Account up to that time. The number of Accumulation Units purchased or
redeemed in a transaction is equal to the dollar amount of the transaction
divided by the Account's Accumulation Unit Value for that Transaction Date.
Equitable determines Accumulation Unit Values for each Separate Account for each
Valuation Period. A "Valuation Period" is each Business Day together with any
consecutive preceding non-business days. For example, for each Monday which is a
Business Day, the preceding Saturday and Sunday will be included to equal a
three-day Valuation Period.
Unless the following paragraph applies, the Accumulation Unit Value for a
Separate Account for any Valuation Period is equal to the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the ratio of
(i) the value of the Separate Account at the close of business at the end of the
current Valuation Period, before any amounts are allocated to or withdrawn from
the Separate Account in that Period, to (ii) the value of the Separate Account
at the close of business at the end of the preceding Valuation Period, after all
allocations and withdrawals were made for that Period. For this purpose, "value
of the Separate Account" means the market value or, where there is no readily
available market, the fair value of the assets allocated to the Separate
Account, as determined in accordance with Equitable's rules, accepted accounting
practices, and applicable laws and regulations.
To the extent the Separate Account invests in Investment Funds, and the assets
of the Funds are invested in a class or series of shares of a specified trust or
investment company, then the Accumulation Unit Value of an Investment Fund for
any Valuation Period is equal to the Accumulation Unit Value for that Fund on
the immediately
No. 1050-94IC Page 7
<PAGE>
preceding Valuation Period multiplied by the Net Investment Factor of that Fund
for the current Valuation Period. The Net Investment Factor for a Valuation
Period is (a) divided by (b) minus (c), where
(a) is the value of the Investment Fund's shares of the related
portfolio of the specified trust or investment company at the
end of the Valuation Period (before taking into account any
amounts allocated to or withdrawn from the Investment Fund for
the Valuation Period and after deduction of investment
advisory fees and direct operating expenses of the specified
trust or investment company; for this purpose, Equitable uses
the share value reported to Equitable by the specified trust
or investment company);
(b) is the value of the Investment Fund's shares of the related
portfolio of the specified trust or investment company at the
end of the preceding Valuation Period (taking into account any
amounts allocated or withdrawn for that Valuation Period);
(c) is the daily Separate Account charges (see Section 8.04) for
the expenses and risks of the Contract, times the number of
calendar days in the Valuation Period, plus any charge for
taxes or amounts set aside as a reserve for taxes.
SECTION 2.04 AVAILABILITY OF INVESTMENT OPTIONS
Section 3.01 of this Contract describes the allocation of Contributions among
Investment Options pursuant to the Owner's election. Such election is subject to
the following:
(a) If the Contributions made under this Contract with respect to a
Certificate are made pursuant to the terms of a Plan, then the
availability of Investment Options may be subject to the terms of
such Plan, as reported to Equitable by the Owner.
(b) Equitable reserves the right to limit the number of Options which
an Owner may elect.
The Certificate will list which Options are available.
SECTION 2.05 CHANGES WITH RESPECT TO SEPARATE ACCOUNTS
In addition to the right reserved pursuant to subsection (b) of Section 2.04,
Equitable reserves the right, subject to compliance with applicable law,
including approval of Owners if required:
(a) to add Investment Funds (or sub-funds of Investment Funds) to, or
to remove Investment Funds (or sub-funds) from, a Separate
Account, or to add or remove Separate Accounts;
(b) to combine any two or more Investment Funds or sub-funds thereof;
No. 1050-94IC Page 8
<PAGE>
(c) to transfer the assets Equitable determines to be the share of the
class of contracts to which this Contract belongs from any
Separate Account or Investment Fund to another Separate Account or
Investment Fund;
(d) to operate the Separate Account or any Investment Fund as a
management investment company under the Investment Company Act of
1940, in which case charges and expenses that otherwise would be
assessed against an underlying Mutual Fund would be assessed
against the Separate Account;
(e) to operate the Separate Account or any Investment Fund as a unit
investment trust under the Investment Company Act of 1940;
(f) to deregister the Separate Account or any Investment Fund under
the Investment Company Act of 1940, provided that such action
conforms with the requirements of applicable law;
(g) to restrict or eliminate any voting rights as to the Separate
Account;
(h) to cause one or more Separate Accounts or Investment Funds to
invest some or all of their assets in one or more other trusts or
investment companies.
If the exercise of these rights results in a material change in the underlying
investments of a Separate Account, the Contract Holder and each Owner will be
notified of such exercise, as required by law.
A Separate Account or Investment Fund which may be added by Equitable as
described above may be one with respect to which (i) there may be periods during
which contributions are restricted pursuant to the maturity terms of such
Account, (ii) amounts therein may be automatically liquidated according to the
investment policy of the Account, and (iii) investments therein may mature.
Equitable will have the right to reallocate amounts arising from liquidation or
maturity according to the Owner's allocation instructions then in effect unless
the Owner specifies other instructions with respect to said amounts. If no such
allocation instructions have been made, the reallocation will be made to a
designated Investment Option, or to the next established Account or Fund of the
same type as described in this paragraph, if applicable, as specified in the
Certificate.
No. 1050-94IC Page 9
<PAGE>
PART III - CONTRIBUTIONS AND ALLOCATIONS
SECTION 3.01 CONTRIBUTIONS, ALLOCATIONS
Contributions will be remitted on behalf of an Annuitant from the Owner (who may
also be the Annuitant, if so stated in the Certificate.)
The Owner will elect which Investment Options will be available under the
Certificate issued to the Owner, subject to the terms of Section 2.04. Once this
election is made, the Owner may only allocate Contributions to, or transfer
among, these Options. The Owner may add or subtract Options after the
Certificate is issued by sending Equitable a written request, but Equitable has
the right to decline such request.
The Owner will also elect how to allocate Contributions among the Options
elected. If the Owner is not the Annuitant, the Owner may delegate to the
Annuitant authority to allocate Contributions. The Owner need not allocate
Contributions to each Option elected. The Owner may change the allocation
instruction at any time by sending Equitable the proper form. Allocation
percentages must be in whole numbers (no fractions) and must equal 100%.
Each Contribution is allocated (after deduction of any charges that may apply)
in accordance with the allocation instructions in effect on the Transaction
Date. Contributions made to a Separate Account purchase Accumulation Units in
that Account, using the Accumulation Unit Value for that Transaction Date.
SECTION 3.02 LIMITS ON CONTRIBUTIONS
Equitable reserves the right not to accept any Contribution which is less than
the amount shown in the Certificate. The applicable Appendix to this Contract
indicates other minimum and maximum Contribution requirements which may apply.
Equitable also reserves the right, upon advance notice to the Contract Holder
and each Owner, to
(a) change such requirements to apply to Contributions made after
the date of such change, and
(b) discontinue acceptance of Contributions under this Contract
(i) with respect to all Owners or (ii) with respect to all
Owners to whom the same type of Certificate applies (as
described in Section 1.07).
No. 1050-94IC Page 10
<PAGE>
PART IV - TRANSFERS AMONG INVESTMENT OPTIONS
SECTION 4.01 TRANSFER REQUESTS
The Owner may upon request transfer all or part of the amount held with respect
to a Certificate in an Investment Option to one or more of the other Options. A
transfer request must be made in a form acceptable to Equitable. All transfers
will be made on the Transaction Date and will be subject to the terms of Section
4.02 and to Equitable's rules in effect at the time of transfer. With respect to
a Separate Account, the transfers will be made at the Accumulation Unit Value
for that Transaction Date.
SECTION 4.02 TRANSFER RULES
The transfer rules which apply are stated in the Certificate. A transfer request
will not be accepted by Equitable if it involves less than the minimum amount,
if any, stated in the Certificate (unless the Annuity Account Value is less than
such amount). Equitable has the right to change transfer rules. Any change will
be made upon advance notice to the Contract Holder and to each Owner.
The Investment Funds may consist of funds which are classified as "Type A"
Investment Options or "Type B" Investment Options or any other type which may be
specified in the Certificate, as Equitable designates in its discretion for
purposes of the transfer rules described in the Certificate. The Certificate
will specify whether such Investment Options are designated Type A or Type B, or
another type as well as the minimum or maximum limits on transfers which apply.
No. 1050-94IC Page 11
<PAGE>
PART V - WITHDRAWALS AND TERMINATION
SECTION 5.01 WITHDRAWALS
Unless otherwise stated in the Certificate, the Owner may make a request to
Equitable, pursuant to Equitable's procedures then in effect, for a withdrawal
from the Investment Options before the Annuity Commencement Date and while the
Annuitant is alive.
On the Transaction Date, Equitable will pay the amount of the withdrawal
requested by the Owner or, if less, the Cash Value. The amount to be paid plus
any Withdrawal Charge applicable pursuant to Section 8.01 will be withdrawn on a
pro-rata basis from the amounts held with respect to the Certificate in the
Investment Options, unless the Owner elects otherwise or unless otherwise stated
in the Certificate.
A withdrawal request will not be accepted by Equitable if it involves less than
the minimum amount, if any, stated in the Certificate (unless the Annuity
Account Value is less than such amount). Further conditions or restrictions on
distributions may apply if stated in the Certificate.
SECTION 5.02 TERMINATION
The Certificate will terminate if one or more of the following events occurs,
unless otherwise specified in the Certificate:
(a) If a withdrawal made under Section 5.01 would result in an Annuity
Account Value of an amount less than the minimum amount stated in the
Certificate, Equitable will so advise the Owner and reserve the right
to pay such Value to the Owner, in which case the Certificate will be
terminated.
(b) Before an Annuitant's Annuity Commencement Date, Equitable has the
right to pay the Cash Value and terminate the Certificate if no
Contributions are made during the last three completed Contract Years
(or such other number of years stated in the Certificate and permitted
under applicable law), and the Annuity Account Value is less than the
amount described in subsection (a) above.
(c) Equitable also has the right to terminate the Certificate if no
Contributions have been made with respect to the Annuitant within 120
days of the Contract Date.
No. 1050-94IC Page 12
<PAGE>
PART VI - DEATH BENEFITS
SECTION 6.01 DEATH BENEFIT
Upon receipt by Equitable of due proof that the Annuitant has died prior to the
Annuity Commencement Date, Equitable will pay a death benefit to the beneficiary
named under Section 6.02. Payment of the death benefit is subject to the terms
of Section 6.02 and any special rules which may apply as stated in an Appendix
hereto and the Certificate.
The amount of the death benefit under this Contract will be determined by
Equitable as specified in the Certificate.
The death benefit will be paid as an Annuity Benefit or in a single sum, as
described in Section 6.02.
SECTION 6.02 BENEFICIARY
The Owner will give Equitable the name of the beneficiary who is to receive any
death benefit payable on the Annuitant's death. The Owner may change the
beneficiary from time to time during the Annuitant's lifetime and while coverage
under this Contract is in force. Any such change must be made in writing in a
form Equitable accepts. A change will, upon receipt at the Processing Office,
take effect as of the date the written form is executed, whether or not the
Owner is living on the date of receipt. Equitable will not be liable as to any
payments it made before it receives any such change.
The Owner may name one or more persons to be primary beneficiary on the
Annuitant's death and one or more persons to be successor beneficiary if the
primary beneficiary dies before the Annuitant. Unless the Owner directs
otherwise, if the Owner has named two or more persons as beneficiary, the
beneficiary will be the named person or persons who survive the Annuitant and
payments will be made to such persons in equal shares or the survivor.
Any part of a death benefit payable as described in Section 6.01 for which there
is no named beneficiary living at the Annuitant's death will be payable in a
single sum to the Annuitant's children who survive the Annuitant, in equal
shares, or should none survive or should there be none, then to the Annuitant's
estate.
If the Owner so elects in writing, any amount that would otherwise be payable to
a beneficiary in a single sum may be applied to provide an Annuity Benefit, on
the form of annuity elected by the Owner, subject to Equitable's rules then in
effect. If at the Annuitant's death there is no election in effect, the
beneficiary may make such an election. In the absence of any election by either
the Owner or the beneficiary, Equitable will pay the death benefit in a single
sum.
The naming of a beneficiary is subject to the terms of the Plan, if applicable,
including any terms requiring spousal consent.
No. 1050-94IC Page 13
<PAGE>
PART VII ANNUITY BENEFITS
SECTION 7.01 ANNUITY BENEFIT
Payments under an Annuity Benefit will be made monthly. An election may be made
by the Owner instead to have the Annuity Benefit paid at other intervals, such
as every three months, six months, or twelve months, instead of monthly, subject
to Equitable's rules at the time of election or as stated in the Certificate.
This election may be made at the time the Annuity Benefit form as described in
Section 7.02 is elected; in that event, all references in this Contract to
monthly payments will, with respect to the Annuity Benefit of such an Annuitant
to whom the election applies, be deemed to mean payments at the frequency
elected.
SECTION 7.02 ELECTION OF ANNUITY BENEFITS
As of the Annuitant's Annuity Commencement Date, provided the Annuitant is then
living, the Annuity Account Value will be applied to provide the Normal Form of
Annuity Benefit (described in Section 7.04). However, the Owner may instead
elect (i) to have the Cash Value paid in a single sum, (ii) to apply the Annuity
Account Value or Cash Value, whichever is applicable pursuant to the first
paragraph of Section 7.05 to provide an Annuity Benefit of any form offered by
Equitable or one of Equitable's subsidiary life insurance companies, or (iii) to
apply the Cash Value to provide any other form of benefit payment offered by
Equitable, subject to Equitable's rules then in effect and applicable laws and
regulations. At the time an Annuity Benefit is purchased, Equitable will issue a
supplementary contract which reflects the Annuity Benefit terms.
Equitable will provide notice and election forms to the Owner within six months
before the Annuity Commencement Date.
Equitable will have the right to require the Owner to furnish any information
Equitable needs to provide an Annuity Benefit and will be fully protected in
relying on such information and need not inquire as to the accuracy or
completeness thereof.
SECTION 7.03 COMMENCEMENT OF ANNUITY BENEFITS
Before the Annuity Commencement Date, the Owner may elect to change such Date.
The changed Date may be any date after the election is filed (other than the
29th, 30th, or 31st day of any month). Any election for such change must be made
in writing by the Owner and will not take effect until received and accepted by
Equitable at its Processing Office.
However, unless provided otherwise in any Appendix of this Contract, no Annuity
Commencement Date will be later than the first day of the month which follows
the date the Annuitant attains the "maximum maturity age" or, if later, the
tenth anniversary of the Contract Date. The current maximum maturity age is
specified in the Certificate; such age may be changed by Equitable in
conformance with applicable law.
No. 1050-94IC Page 14
<PAGE>
SECTION 7.04 ANNUITY BENEFIT FORMS
The "Normal Form" of Annuity Benefit is an Annuity Benefit payable on the
Life-Period Certain Annuity Form described below, unless another form is to
apply pursuant to the terms of the Plan, if applicable, the requirements of the
Employee Retirement Income Security Act of 1974 (ERISA), as amended, or any
other law that applies. The Certificate will specify the Normal Form which
applies. Equitable may offer other annuity forms as available from Equitable or
from one of Equitable's affiliated or subsidiary life insurance companies. Such
a form may include the Joint and Survivor Life Annuity Form providing monthly
payments while either of two persons upon whose lives such payments depend is
living. The monthly amount to be continued when only one of the persons is
living will be equal to a percentage, as elected, of the monthly amount that was
paid while both were living.
The Life-Period Certain Annuity is an annuity payable during the lifetime of the
person upon whose life the payments depend, but with 10 years of payments
guaranteed (10 years certain period). That is, if the Annuitant dies before the
certain period has ended, payments will continue to the beneficiary named to
receive such payments for the balance of the certain period.
SECTION 7.05 AMOUNT OF ANNUITY BENEFITS
If the Owner elects pursuant to Section 7.02 to have an Annuity Benefit paid in
lieu of the Cash Value, the amount applied to provide the Annuity Benefit will,
unless otherwise specified in the Certificate or required by applicable laws and
regulations, be (i) the Annuity Account Value if the annuity form elected
provides payments for a person's remaining lifetime or (ii) the Cash Value if
the annuity form elected does not provide such lifetime payments.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any taxes which apply on annuity purchase payments. If Equitable has previously
deducted charges for applicable taxes from Contributions, Equitable will not
again deduct charges for the same taxes before an Annuity Benefit is provided.
The balance will be used to purchase the Annuity Benefit on the basis of either
(i) the Tables of Guaranteed Annuity Payments or (ii) Equitable's then current
individual annuity rates, whichever rates would provide a larger benefit with
respect to the payee.
SECTION 7.06 CONDITIONS
Equitable may require proof acceptable to it that the person on whose life a
benefit payment is based is alive when each payment is due. Equitable will
require proof of the age of any person on whose life an Annuity Benefit is
based.
If a benefit was based on information that is later found not to be correct,
such benefit will be adjusted on the basis of the correct information. The
adjustment will be made in the number or amount of the benefit payments, or any
amount used to provide the benefit, or any combination. Overpayments by
Equitable will be charged against future payments. Underpayments will be added
to future payments. Equitable's liability is limited to the correct information
and the actual amounts used to provide the benefits.
No. 1050-94IC Page 15
<PAGE>
If the age (or sex, if applicable as stated in the Tables of Guaranteed Annuity
Payments) of any person upon whose life an Annuity Benefit depends has been
misstated, any benefits will be those which would have been purchased at the
correct age (or sex). Any overpayments or underpayments made by Equitable will
be charged or credited with interest at (a) the rate shown in the Certificate or
(b) the then current Guaranteed Interest Rate; Equitable will determine which
rate will apply, on a uniform and nondiscriminatory manner, for similar
Certificates. Such interest will be deducted from or added to future payments.
If Equitable receives proof satisfactory to it that (i) a payee entitled to
receive any payment under the terms of this Contract is physically or mentally
incompetent to receive such payment or a minor, (ii) another person or an
institution is then maintaining or has custody of such payee, and (iii) no
guardian, committee, or other representative of the estate of such payee has
been appointed, Equitable may make the payments to such other person or
institution. In the case of a minor, the payments will not exceed [$200] or such
other amount shown in the Certificate. Equitable will have no further liability
with respect to the payments so made.
If the amount to be applied hereunder is less than [$2,000] or would result in
an initial payment of less than [$20], Equitable may pay the amount to the payee
in a single sum instead of applying it under the annuity form elected.
SECTION 7.07 CHANGES
Equitable reserves the right, upon advance notice to the Contract Holder and
each Owner, to change at any time on and after the fifth anniversary of the
Register Date of this Contract, at intervals of not less than five years, the
actuarial basis used in the Tables of Guaranteed Annuity Payments; however, no
such change will apply to (A) any Annuity Benefit provided before the change or
(B) Contributions made before such change which are applied to provide an
Annuity Benefit.
No. 1050-94IC Page 16
<PAGE>
PART VIII - CHARGES
SECTION 8.01 WITHDRAWAL CHARGES
The amount of the Withdrawal Charge, if applicable, will be specified in the
Certificate issued with respect to the Annuitant. Equitable reserves the right
to change such Charge with respect to future Contributions, subject to any
maximum amount specified in the Certificate.
If specified in the Certificate, a "Free Corridor Amount" will apply as follows:
"Free Corridor Amount" means an amount equal to a percentage of the
Annuity Account Value, minus the total of all prior withdrawals (and
associated Withdrawal Charges) made as described in Section 5.01 in the
current Contract Year. Such percentage for this purpose will be (a)
determined by Equitable with respect to each Annuitant on a uniform and
nondiscriminatory basis and (b) specified in the Certificate; it will be
any percentage between [0% and 30%] if so provided in the Certificate.
If the amount of a withdrawal made under Part V is more than the Free
Corridor Amount (defined above), Equitable will (a) first withdraw from
the Investment Options, on the basis described in Section 5.01, an amount
equal to the Free Corridor Amount, and (b) then withdraw from the
Investment Options an amount equal to the excess of the amount requested
over the Free Corridor Amount, plus a Withdrawal Charge as specified in
the Certificate.
For purposes of this Section, amounts withdrawn up to the Free Corridor
Amount will not be deemed a withdrawal of any Contributions. Equitable
reserves the right to carry forward the Free Corridor Amount into a future
Contract Year, if not used in any Year with respect to an Annuitant, as
specified in the Certificate.
Any withdrawals in excess of the Free Corridor Amount will be deemed
withdrawals of Contributions in the reverse order in which they were made;
that is, Contributions will be withdrawn on a last-in, first-out basis.
However, Equitable reserves the right instead to deem Contributions
withdrawn on a first-in, first-out basis. If Equitable exercises this
right, it will do so with respect to Certificates for which the Contract
Date occurs after the effective date of the change, and the first-in,
first-out basis will be specified in the Certificate.
In addition, the Annuitant's years of participation under the Prior Contract, if
applicable, will be included for purposes of determining the Withdrawal Charge,
if so specified in the Certificate in accordance with Equitable's rules then in
effect.
If specified in the Certificate, Equitable reserves the right to reduce or waive
the Withdrawal Charge in such circumstances as it determines. The Certificate
issued with respect to the Annuitant will specify the circumstances, if any, by
which a waiver will apply.
No. 1050-94IC Page 17
<PAGE>
Moreover, the Withdrawal Charge will be reduced if needed in order to comply
with any applicable state or federal law.
SECTION 8.02 ADMINISTRATIVE AND OTHER CHARGES DEDUCTED FROM ANNUITY ACCOUNT
VALUE
As of each Processing Date, Equitable will deduct Administrative Charges, a
charge for the minimum guaranteed death benefit, if applicable, or other Charges
related to the administration and/or distribution of certificates under this
Contract from the Annuity Account Value. Such Charges are specified in the
Certificate.
If specified in the Certificate, the Charges will be deducted in full or
prorated for the Contract Year, or portion thereof, in which the Contract Date
occurs or in which the Annuity Account Value is withdrawn or applied to provide
an Annuity Benefit or death benefit. If so, the Charges will be deducted when
withdrawn or so applied.
The amount of any such Charge for any Contract Year will in no event exceed any
maximum amount stated in the Certificate subject to the maximum amount permitted
under any applicable law.
Equitable reserves the right to reduce or waive said Charges in such
circumstances as it determines.
SECTION 8.03 TRANSFER CHARGES
Equitable reserves the right to impose a charge with respect to any transfer
among Investment Options after the number of free transfers, as specified in the
Certificate, made on behalf of an Annuitant. The amount of such charge will be
set forth in a notice from Equitable to the Contract Holder and each Owner and
in no event will exceed any maximum amount stated in the Certificate.
SECTION 8.04 DAILY SEPARATE ACCOUNT CHARGE
Assets of the Separate Account will be subject to a daily asset charge. This
daily asset charge is for mortality risk, expenses and expense risk which
Equitable assumes, as well as for financial accounting and death benefits if
specified in the Certificate. The charge will be made pursuant to item (c) of
"Net Investment Factor" as defined in Section 2.03. Such charge will be applied
after any deductions to provide for taxes. It will be at a rate not to exceed
the maximum annual rate stated in the Certificate. Equitable reserves the right
to charge less on a current basis; the actual charge to apply will be specified
in the Certificate.
SECTION 8.05 CHANGES
In addition to the right of Equitable to reduce or waive charges as described in
this Part VIII, Equitable reserves the right, upon advance notice to the
Contract Holder and each Owner, to increase the amount of any charge stated in
the Certificate issued with respect to each Annuitant, subject to (a) any
maximum amount provided in this Part VIII and (b)
No. 1050-94IC Page 18
<PAGE>
with respect to Withdrawal Charges and Administrative or other Charges deducted
from the Annuity Account Value, the application of any increase only to
Contributions made after the date of the change.
Equitable also reserves the right, upon advance written notice to the Contract
Holder, to increase the maximum amount of any charge provided in this Part VIII
or the Certificate, only with respect to Annuitants whose Contract Date occurs
after the effective date of the increase, but not to exceed the maximum amount
then permitted by any law that applies or, with respect to the daily Separate
Account charge described in Section 8.04, by the Securities and Exchange
Commission.
No. 1050-94IC Page 19
<PAGE>
PART IX - GENERAL PROVISIONS
SECTION 9.01 CONTRACT
This Contract constitutes the entire contract between the parties and will
govern with respect to the rights and obligations of Equitable.
This Contract may not be modified, nor may any of Equitable's rights or
requirements be waived, except in writing and by an authorized officer of
Equitable. In addition to the rights of change reserved by Equitable as provided
in this Contract, the Contract may be changed by amendment or replacement
without the consent of any other person provided that such change does not
reduce any Annuity Benefit provided before such change and provided that no
rights, privileges or benefits under the Contract with respect to Contributions
made hereunder prior to the effective date of such change may be adversely
affected by an amendment to the Contract without the consent of the Contract
Holder and each Owner.
SECTION 9.02 STATUTORY COMPLIANCE
Equitable reserves the right to amend this Contract without the consent of any
other person in order to comply with applicable laws and regulations. Such right
will include, but not be limited to, the right to conform the Contract to
reflect changes in the Code, in Treasury regulations or published rulings of the
Internal Revenue Service, ERISA, and in Department of Labor regulations.
The benefits and values available under this Contract will not be less than the
minimum benefits required by any applicable state law.
SECTION 9.03 DEFERMENT
Application of proceeds to provide a payment of a death benefit under Part VI
and payment of any portion of the Annuity Account Value (less any applicable
Withdrawal Charge) will be made within seven days after the Transaction Date.
Payments or applications of proceeds from a Separate Account may be deferred for
any period during which (1) the New York Stock Exchange is closed or trading is
restricted, (2) sales of securities or determination of the fair value of the
Account's assets is not reasonably practicable because of an emergency, or (3)
the Securities and Exchange Commission, by order, permits Equitable to defer
payment in order to protect persons with interests in the Separate Account.
Equitable may defer payment or transfer of any portion of the Annuity Account
Value in the Guaranteed Interest Account for up to six months while the Owner is
living.
SECTION 9.04 REPORTS AND NOTICES
With respect to each Certificate, at least once each year until the Annuity
Commencement Date, Equitable will furnish the Owner with a report showing the
following:
(a) the dollar amount in the Guaranteed Interest Account,
No. 1050-94IC Page 20
<PAGE>
(b) the total number of Accumulation Units in each Separate Account
or Investment Fund,
(c) the Accumulation Unit Value,
(d) the dollar amount in each Separate Account or Investment Fund,
(e) the Cash Value, and
(f) the amount of the death benefit.
The terms of this Contract which require Equitable to send a report as described
above or any written notice as described in any other Section will be satisfied
by Equitable mailing any such report or notice to the Owner's last known address
as shown in Equitable's records.
All written notices sent to Equitable will not be effective until received in
good order at the Processing Office.
SECTION 9.05 ASSIGNMENTS
No amounts payable under this Contract to a payee other than the Owner may be
assigned by that payee unless permitted herein, nor will they be subject to the
claims of creditors or to legal process, except to the extent permitted by law.
The Certificate will describe any other restrictions or assignments which may
apply.
SECTION 9.06 CONTRACT HOLDER'S RESPONSIBILITY
The sole responsibility of the Contract Holder is to serve as party to the
Contract. The Contract Holder will have no responsibility for the administration
of any Plan or agreement, or for Contributions or any payments or other
distributions hereunder. Equitable will deal with the Contract Holder in
accordance with the terms and conditions of the trust agreement pursuant to
which the Contract Holder agreed to act as such and in such manner as the
Contract Holder and Equitable agree, without the consent of any other person.
SECTION 9.07 MANNER OF PAYMENT
Equitable will pay all amounts payable under this Contract by check (in United
States dollars) or, if so agreed upon by an Owner and Equitable, by wire
transfer. All amounts payable by the Owner will be paid by check payable to
Equitable (in United States dollars) or by any other method acceptable to
Equitable.
No. 1050-94IC Page 21
<PAGE>
TABLE OF GUARANTEED ANNUITY PAYMENTS
------------------------------------
[APPLICABLE TO IRA CERTIFICATES]
------------------------------
[AMOUNT OF ANNUITY BENEFIT PAYABLE MONTHLY ON THE JOINT AND SURVIVOR LIFE
ANNUITY FORM (WITH 100% OF THE AMOUNT OF THE ANNUITANT'S PAYMENT CONTINUED TO
THE ANNUITANT'S SPOUSE) PROVIDED BY AN APPLICATION OF $1,000.
FEMALE AGES
<TABLE>
<CAPTION>
AGE 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 3.39 3.42 3.46 3.49 3.52 3.55 3.58 3.61 3.64 3.67 3.70
61 3.41 3.45 3.48 3.51 3.55 3.58 3.61 3.64 3.68 3.71 3.74
62 3.43 3.47 3.50 3.54 3.57 3.61 3.64 3.68 3.71 3.74 3.78
63 3.45 3.49 3.52 3.56 3.60 3.63 3.67 3.71 3.74 3.78 3.82
MALE 64 3.47 3.51 3.54 3.58 3.62 3.66 3.70 3.74 3.78 3.82 3.86
AGES 65 3.48 3.52 3.56 3.61 3.65 3.69 3.73 3.77 3.81 3.85 3.89
66 3.50 3.54 3.58 3.63 3.67 3.71 3.76 3.80 3.84 3.89 3.93
67 3.52 3.56 3.60 3.65 3.69 3.74 3.78 3.83 3.88 3.92 3.97
68 3.53 3.57 3.62 3.67 3.71 3.76 3.81 3.86 3.91 3.96 4.00
69 3.54 3.59 3.64 3.69 3.73 3.78 3.83 3.88 3.94 3.99 4.04
70 3.56 3.60 3.65 3.70 3.75 3.81 3.86 3.91 3.96 4.02 4.07
</TABLE>
The amount of income provided under an Annuity Benefit payable on the Joint and
Survivor Life Annuity form is based on 2.5% interest and the 1983 Individual
Annuity Mortality Table "a" projected with modified Scale G.
Amounts required for ages or for annuity forms not shown in the above Table will
be calculated by Equitable on the same actuarial basis.
If a variable annuity form is available from Equitable and elected pursuant to
Section 7.02, then the amounts required will be calculated by Equitable based on
the 1983 Individual Annuity Mortality Table "a" projected with modified Scale
"G" and a modified two year age setback and on an Assumed Base Rate of Net
Investment Return of 3.5%/5.0%.]
No. 1050-94IC Page 22
<PAGE>
TABLE OF GUARANTEED ANNUITY PAYMENTS
[APPLICABLE TO NON-QUALIFIED CERTIFICATES]
[AMOUNT OF ANNUITY BENEFIT PAYABLE MONTHLY ON THE LIFE ANNUITY FORM
WITH TEN YEARS CERTAIN PROVIDED BY APPLICATION OF $1,000.
Monthly Income Monthly Income
[Ages Males Females Age Males Females
---- ----- ------- --- ----- -------
60 4.12 3.70 73 5.52 4.87
61 4.20 3.76 74 5.66 4.99
62 4.29 3.83 75 5.80 5.12
63 4.38 3.90 76 5.95 5.26
64 4.48 3.98 77 6.10 5.40
65 4.58 4.06 78 6.25 5.55
66 4.68 4.14 79 6.40 5.70
67 4.79 4.23 80 6.56 5.85
68 4.90 4.32 81 6.72 6.01
69 5.02 4.42 82 6.88 6.18
70 5.14 4.52 83 7.04 6.34
71 5.26 4.63 84 7.20 6.51
72 5.39 4.75 85 7.36 6.67
The amount of income provided under an Annuity Benefit payable on the Joint and
Survivor Life Annuity form is based on 2.5% interest and the 1983 Individual
Annuity Mortality Table "a" projected with modified Scale G, adjusted to a
unisex basis, reflecting a 20%-80% split of males and females at pivotal age 55.
Amounts required for ages not shown in the above Table or for other annuity
forms will be calculated by Equitable on the same actuarial basis.
If a variable annuity form is available from Equitable and elected pursuant to
Section 7.02, then the amounts required will be calculated by Equitable based on
the 1983 Individual Annuity Mortality Table "a" projected with modified Scale
"G" and a modified two year age setback and a 20%-80% split of males and females
at age 55 and on an Assumed Base Rate of Net Investment Return of 3.5%/5.0%.]
No. 1050-94IC Page 23
<PAGE>
APPENDIX A
----------
APPLICABLE TO IRA CERTIFICATES
1. OWNER:
The Annuitant is the Owner.
2. ANNUITY COMMENCEMENT DATE:
The Owner may not choose Annuity Commencement Date later than the
maximum maturity age specified in the Certificate. If the Owner chooses
a date later than the Annuitant's age [70 1/2], the Owner must withdraw
at least the minimum distributions required under Section [408(b)] and
[401(a)(9)] of the Code and Treasury regulations that apply. See Item 4
of this Appendix.
3. CONTRIBUTIONS:
No Contributions will be accepted unless they are in cash (or check or
other form as Equitable may require). Except in the case of a rollover
contribution (as permitted by Sections [402(c), 403(a)(4), 403(b)(8),
or 408(d)(3)] of the Code), the total of such Contributions will not
exceed [$2,000] for any taxable year. Amounts transferred to the
Contract from an individual retirement account or annuity contract
which meets the requirements of Section [408] of the Code are not
subject to the [$2,000] limit.
If the Owner makes a Contribution which qualifies as an eligible
retirement plan rollover as defined in Section [402(c) or 403(b)(8)] of
the Code and the Owner commingles such Contribution with other
Contributions, the Owner may not be able to roll over the eligible
retirement plan Contributions and earnings to another qualified plan or
Code Section [403(b)] arrangement at a future date, unless the Code
permits.
Equitable may agree, if requested, to maintain records with respect to
each source of Contributions. For example, a source may arise as
follows:
[(a) Salary Deferral Contributions: Contributions made
pursuant to an individual retirement annuity program in
accordance with the requirements of Section 408(b) of
the Code and applicable Treasury regulations;
(b) Rollover Contributions: Contributions which qualify
as eligible retirement plan rollovers within the meaning
of Section 402(c) of the Code and applicable Treasury
regulations.]
The Owner, or Employer if applicable, will determine and report each
Source to Equitable, in a form acceptable to Equitable, and will
specify as part of each withdrawal and transfer request the Source(s)
from which each individual or transfer is to be made.
No. 1050-94IC Page 24
<PAGE>
4. DEATH BENEFITS:
Under the following circumstances, the death benefit described in
Section 6.01 will not be paid at the Annuitant's death before the
Annuity Commencement Date, and the coverage under this Contract will
continue with the Annuitant's surviving spouse as Successor Annuitant
and Owner:
a. the Annuitant is married at death;
b. the person named as beneficiary under Section 6.02 is the
Annuitant's surviving spouse; and
c. the Annuitant has requested that the spouse become "Successor
Annuitant and Owner" of the Certificate if the spouse survives
the Annuitant.
5. REQUIRED DISTRIBUTIONS:
[The Annuitant's entire interest in the Certificate will be distributed
or begin to be distributed no later than the April 1 which follows the
calendar year in which the Annuitant attains age 70 1/2 ("Required
Beginning Date"). The entire interest may be distributed, as the
Annuitant elects, over (a) the Annuitant's life, or the lives of the
Annuitant and the named beneficiary, or (b) a period which does not
extend beyond the Annuitant's "life expectancy" (defined below), or the
joint and last survivor expectancy of the Annuitant and the named
beneficiary. Distributions must be made in periodic payments at
intervals no longer than one year. Also, payments must be either
non-increasing or they may increase only as provided in Regulations
(Q & A F-3 of Proposed Treasury Regulation Section 1.401(a)(9)-1 or
successor thereto).
All distributions made under the Certificate will be made in accordance
with the requirements of Code Sections [408(b) and 401(a)(9), including
the incidental death benefit requirement of the Code (Section
401(a)(9)(G)) and Treasury Regulations which apply (including minimum
distribution incidental benefit requirements of Proposed Treasury
Regulation Section 1.401(a)(9)-2) or any successor thereto.]
[For purposes of determining the "period certain" referred to in the
first paragraph of this item 5, life expectancy is computed by use of
the expected return multiples in Tables V and VI of Treasury Regulation
Section 1.72-9. Unless the Annuitant otherwise elects before the time
distributions are required to begin, life expectancies will be
recalculated annually. Such election will be irrevocable and will apply
to all subsequent years. In the case of any named beneficiary other
than the spouse, if permitted under Equitable's rules then in effect,
life expectancies may not be recalculated. Instead, life expectancy
will be calculated using the attained age of such beneficiary during
the calendar year in which the Annuitant attains age 70 1/2 and payment
for any subsequent calendar year will be calculated based on life
expectancy reduced by one for each calendar year which has elapsed
since the calendar year life expectancy was first calculated.]
No. 1050-94IC Page 25
<PAGE>
[If the Annuitant dies after distribution of the Annuitant's entire
interest has begun, the remainder of such interest will continue to be
distributed at least as rapidly as under the payment method of
distribution being used before the Annuitant's death.
If the Annuitant dies before distribution of the Annuitant's entire
interest begins, distribution of the Annuitant's entire interest will
be completed no later than December 31 of the calendar year in which
the fifth anniversary of the Annuitant's death occurs, except to the
extent that a choice is made to receive death benefit distributions
under (a) or (b) below:
(a) If the Annuitant's interest is payable to a beneficiary, then
the entire interest may be distributed over the life of, or
over a period certain not greater than the life expectancy of,
the named beneficiary. Such distributions must commence on or
before December 31 of the calendar year which follows the
calendar year of the Annuitant's death.
(b) If the named beneficiary is the Annuitant's surviving spouse,
the date that distributions must begin under (a) above will
not be earlier than the later of (i) December 31 of the
calendar year which follows the year of the Annuitant's death
or, (ii) December 31 of the calendar year in which the
Annuitant would have reached age 70 1/2.
If the designated beneficiary is the Annuitant's surviving
spouse, and a Successor Annuitant and Owner option (described
in item 4 preceding) is in effect, the distribution of the
Annuitant's interest need not be made until after the spouse's
death.
For purposes of the "period certain" used in (a) above, life expectancy
is computed by use of the expected return multiples in Tables V and VI
of Treasury Regulation Section 1.72-9. For purposes of distributions
which begin after the Annuitant's death, unless the surviving spouse
elects otherwise by the time distributions are required to begin, life
expectancies will be recalculated annually. Such election will be
irrevocable by such surviving spouse and will apply to all subsequent
years.
In the case of any other designated beneficiary, life expectancies will
be calculated using the attained age of such beneficiary during the
calendar year in which distributions are required to begin, pursuant to
this item, and payments for any subsequent calendar year will be
calculated based on such life expectancy reduced by one for each
calendar year which has elapsed since the calendar year life expectancy
was first calculated.
Distributions under this item are considered to have begun if
distributions are made because the Annuitant has reached the Required
Beginning Date or if, before the Required Beginning Date, distributions
irrevocably commence to the Annuitant over a period permitted and in an
annuity form acceptable under Proposed Treasury Regulation
1.401(a)(9)-1 or any successor thereto.]
No. 1050-94IC Page 26
<PAGE>
6. REPORTS - NOTICES:
In addition to the reports described in Section 9.04, Equitable will
send the Annuitant a report as of the end of each calendar year showing
the status of the annuity and any other reports required by the Code or
Treasury regulations.
7. ASSIGNMENTS, NONTRANSFERABILITY, NONFORFEITABILITY:
The Owner's rights may not be assigned, pledged, or otherwise
transferred except as permitted by law. The Owner may not name a new
Owner, except as described in item 4 above. The interest under the
Certificate is nonforfeitable.
8. TERMINATION:
In the event that an annuity bought under the Contract fails to qualify
as an annuity under Section [408(b)] of the Code, Equitable will have
the right, upon receipt of notice of such fact, before the Annuity
Commencement Date, to terminate the Certificate. In that case,
Equitable will pay the Annuity Account Value less a deduction for the
part which applies to any Federal income tax payable by the Annuitant
which would not have been payable with respect to an annuity which
meets the terms of the Code.
No. 1050-94IC Page 27
<PAGE>
APPENDIX B
----------
APPLICABLE TO NON-QUALIFIED CERTIFICATES
1. CONTRIBUTIONS:
Equitable has the right not to accept a Contribution less than the
amount(s) shown in the Certificate.
2. OWNER DEATH DISTRIBUTION RULES:
Upon the death of an Owner before the Annuity Commencement Date:
(a) If the Owner is both the Owner and the Annuitant,
Equitable will pay the death benefit described in
Section 6.01. Any part of a death benefit payable as
described in Section 6.01 for which there is no named
beneficiary living at the Owner's death will be
payable in a single sum to the Owner's children who
survive the Owner in equal shares, or should none
survive, then to the Owner's estate.
Under the following circumstances, the death benefit
described in Section 6.01 will not be paid at the
Owner's death before the Annuity Commencement Date,
and the coverage under the Contract will continue
with the Owner's surviving spouse as Successor
Annuitant and Owner:
(i) the Owner is married at his or her death;
(ii) the person named as the beneficiary who is
to receive any death benefit payable on the
Owner's death under Section 6.02 is the
surviving spouse; and
(iii) the Owner has additionally requested that
the spouse become "Successor Annuitant and
Owner" of the Certificate if such spouse
survives the Owner.
(b) If the Owner is not the Annuitant, the named
beneficiary (successor Owner) will succeed as Owner.
The entire amount in the Investment Options subject
to any Withdrawal Charge which applies must be fully
paid by the fifth anniversary of the Owner's death,
or payments must begin within one year after the
Owner's death as a life annuity or installment
option, for a period of not longer than the life
expectancy of the named beneficiary. If the Owner has
not elected a form of payment as described in the
next to last paragraph of Section 6.02, and if the
beneficiary named under Section 6.02 does not elect
to receive the payments required by this Section in a
form of Annuity Benefit, a series of partial
withdrawals, or any payout option acceptable under
Section [72(s)] of the Code and Equitable's rules at
the time, Equitable
No. 1050-94IC Page 28
<PAGE>
will pay the amount in the Options in a single sum to
the beneficiary on the fifth anniversary of the
Owner's death. Subject to Equitable's rules at the
time of payment and the completion of an application,
the beneficiary may elect to apply such a single sum
payment to a new non qualified annuity contract to be
owned by the beneficiary. However, if the named
beneficiary is the Owner's spouse, full payments of
amounts under this Contract must be made not later
than five years after the spouse's death.
If payments under an Annuity Benefit had begun before
the Owner's death, such payments will continue to be
made over a period not longer than the period
provided for under the Annuity Benefit elected.
If the Annuitant dies before the entire amount in the
Investment Options is paid, Equitable will pay the
death benefit as described in Section 6.01.
(c) Unless the Owner directs otherwise, the named
beneficiary will also be the person who succeeds as
Owner on the Owner's death while the Annuitant is
alive as described in Section 6.02. The Owner may
change any beneficiary or successor Owner from time
to time during the Annuitant's lifetime and while
coverage under this Contract is in force, also as
described in item (b) above.
(d) If the Owner is not the Annuitant, the Owner may name
another person to be the successor Owner and to
receive the amounts to be paid under item (b) above
and another person to be successor Owner if the first
choice as successor Owner dies before the Owner. If
the Owner has named two or more persons as successor
Owner, and more than one survive, they will share
equally unless the Owner directs otherwise. If no
person named as beneficiary to receive the death
benefit survives the Annuitant, Equitable will pay
such death benefit in a single sum to the Owner. In
the event of the Owner's death after the Annuitant,
but before Equitable pays such death benefit, the
death benefit will be payable in a single sum to the
children who survive the Owner, in equal shares, or
should none survive, to the Owner's estate.
If the Owner dies before the Annuity Commencement
Date while the Annuitant is still living, and if no
person named as successor Owner is living at the
Owner's death, the beneficiary will be presumed to
be, in this order, (i) the Owner's surviving spouse,
(ii) the Annuitant, (iii) the children who survive
the Owner, in equal shares, or (iv) the Owner's
estate.
3. ASSIGNMENTS:
Notwithstanding the terms of Section 9.05, the Owner may assign the
Certificate and the rights described therein before the Annuity
Commencement Date. Equitable will not be bound by an assignment unless
Equitable has received it and
No. 1050-94IC Page 29
<PAGE>
it is in writing. The Owner's rights and those of any other persons
referred to in the Certificate will be subject to the assignment.
Equitable assumes no responsibility for the validity of any assignment.
No. 1050-94IC Page 30
<PAGE>
APPENDIX C
----------
MARKET VALUE ADJUSTMENT PROVISIONS
The terms of this Appendix will become operative only upon advance notice from
Equitable to the Contract Holder and to each Owner affected by such terms. If
this Appendix becomes operative, the terms herein will be included in each
Certificate issued thereafter.
THE TERMS OF THIS APPENDIX CONTAIN A MARKET VALUE ADJUSTMENT ("MVA") FORMULA
WHICH MAY RESULT IN ADJUSTMENTS, POSITIVE OR NEGATIVE, IN BENEFITS. AN MVA WILL
NOT APPLY UPON TRANSFER TO A NEW GUARANTEE PERIOD OR OTHER INVESTMENT OPTION ON
THE EXPIRATION DATE OR PURSUANT TO ITEM 1 BELOW.
1. GUARANTEED PERIOD ACCOUNT
Under the terms of this Appendix, Equitable will specify one or more
Guarantee Periods in the Guaranteed Period Account. For each such
Guarantee Period, Equitable guarantees to credit an interest rate
(called the "Guaranteed Rate"). Interest will be credited daily to
amounts in the Guaranteed Period Account. The duration of each
Guarantee Period provided at any time and the Guaranteed Rate that
applies to each Period will be furnished by Equitable upon request. The
Guarantee Period(s) and the Rate for each such Period the Owner
initially elects are shown in the Certificate.
One or more Guarantee Period(s) may be elected by the Owner, according
to Equitable's rules then in effect. Contributions and transfers to be
made to the Guaranteed Period Account pursuant to Section 3.01 will be
allocated to the Guarantee Period(s) according to the Owner's election.
Contributions and transfers into the Guaranteed Period Account will
receive the Guaranteed Rate applicable to the elected Guarantee Period
as of the Business Day Equitable receives such Contribution or transfer
request at the Processing Office. The amount held with respect to a
given Guarantee Period is referred to as the Guaranteed Period Amount
which reflects Contributions and transfers made to the Guaranteed
Period Account, plus interest at the Guaranteed Rate(s), minus any
withdrawals, transfers and charges, if any, deducted from the
Guaranteed Period Account.
The last day of a Guarantee Period is the Expiration Date. Equitable
will notify the Owner at least [15 but not more 45] days before the
Expiration Date of each Period. The Owner may elect one of the
following three options effective at the Expiration Date, none of which
will result in a market value adjustment:
a) to transfer the Guaranteed Period Amount into a Guarantee
Period of any duration which Equitable then offers;
b) to transfer the Guarantee Period Amount to another
Investment Option;
No. 1050-94IC Page 31
<PAGE>
c) to make a withdrawal of the Guaranteed Period Amount (subject to
any Withdrawal Charges which apply pursuant to section 8.01).
If no such election is made on or prior to the Expiration Date, the
Guaranteed Period Amount (without any market value adjustment) will be
transferred into the Investment Option described in the Certificate.
During the 30 days following the Expiration Date, the full Guaranteed
Period Amount (less any withdrawals and transfers made or charges
deducted during that 30 day period) may be transferred into a new
Guarantee Period or other Investment Option. In no event can the Owner
elect a Guarantee Period which extends beyond the Annuity Commencement
Date.
The "Guaranteed Period Account" is Equitable's Separate Account No. 46
that Equitable uses to account for amounts allocated to Guarantee
Periods under the Contract. All amounts allocated to a Guarantee
Period, whether Contributions or transfers, become part of the
Guaranteed Period Account.
2. TRANSFERS, WITHDRAWALS, DEATH AND ANNUITY BENEFITS
If the Owner requests, other than as described in item 1 above, a
transfer to another Investment Option pursuant to Section 4.01 or a
withdrawal pursuant to Section 5.01, any such transfer or withdrawal
from a Guaranteed Period Amount will be subject to a market value
adjustment described below. For this purpose, the Annuity Account Value
in Separate Account No. 46 will be after the market value adjustment.
The market value adjustment will be in addition to any other charges
which apply pursuant to Section 8.01.
In addition, amounts applied from a Guaranteed Period Amount to provide
a death benefit pursuant to Section 6.01, an annuity pursuant to
Section 7.02 or any other annuity form offered by Equitable, will be
subject to a market value adjustment, unless otherwise specified in the
Certificate.
Payment or transfers from a Guaranteed Period Amount may be deferred
for up to six months while the Owner is living.
3. MARKET VALUE ADJUSTMENT
The market value adjustment with respect to each Guarantee Period that
applies to a Certificate Owner is determined as follows:
(a) Equitable determines the Guaranteed Period Amount that will be
payable on the Expiration Date, using the Guaranteed Rate for
such Guarantee Period.
(b) Equitable determines the period remaining in the Guarantee
Period (based on the Business Day Equitable received the Owner's
transaction request at the Processing Office) and converts it to
fractional years based on a 365 day year. For example, three
years and 12 days, becomes 3.0329.
No. 1050-94IC Page 32
<PAGE>
(c) Equitable determines the current Guaranteed Rate which applies
to new Contributions for the same class of Certificates under a
Guarantee Period with the same Expiration Date as the Owner's
Guarantee Period. Equitable adds to such current rate a
percentage which is no greater than that shown in the
Certificate.
(d) Equitable determines the present value of the Guaranteed Period
Amount payable at the Expiration Date, using the period
determined in (b) and the rate determined in (c).
(e) Equitable subtracts the current Guaranteed Period Amount from
the result in (d). The result is the Market Value Adjustment,
which may be positive or negative, applicable to such Guarantee
Period.
If Equitable is not offering a Guarantee Period to which the "current
Guaranteed Rate" would apply, Equitable will use the Rate at the
closest Expiration Date. If Equitable is no longer offering new
Guarantee Periods, Equitable will use a procedure for determining such
current Rate which will be stated in the Certificate or which Equitable
will develop and file with the insurance supervisory official of the
appropriate jurisdiction.
4. REPORTS AND NOTICES
Equitable will report the values under this Appendix with the reports
sent out as described in Section 9.04. It will include the Guaranteed
Period Amount, market value adjustment, and Annuity Account Value in
Separate Account No. 46.
No. 1050-94IC Page 33
<PAGE>
APPENDIX D
----------
APPLICABLE TO LIFE CONTINGENT ANNUITY
DESCRIBED HEREIN
The terms of this Appendix apply, notwithstanding any terms to the contrary
contained in the Contract and Certificate, if the Owner has elected the Life
Contingent Annuity described herein.
Under the terms of this Appendix, Equitable provides this Annuity Benefit in
consideration of the purchase payment(s) made. The effective date of this
Endorsement is the date Equitable receives the initial purchase payment.
Equitable pays an Annuity Benefit during the lifetime of the Annuitant(s). The
Annuity Benefit ends upon the death of the Annuitant(s). IF THE DEATH OF THE
ANNUITANT(S) OCCURS BEFORE THE FIRST ANNUITY BENEFIT PAYMENT IS DUE, EQUITABLE
WILL NOT MAKE ANY PAYMENTS NOR WILL EQUITABLE REFUND ANY PURCHASE PAYMENT. THE
TERMS HEREIN DO NOT CREATE A CASH VALUE BENEFIT.
1. ANNUITANT(S)
The Annuitant is named in the Certificate. If this Annuity Benefit is
purchased on a survivorship basis as described below, then more than one
Annuitant may be named.
2. PURCHASE PAYMENTS
Purchase payments may be made on a flexible basis; the amount, frequency
and other conditions are shown in the Certificate. Purchase payments may be
paid by check, withdrawn from the Annuity Account Value under the
Certificate or from another Equitable contract that the Owner owns. No
purchase payments may be paid after the Initial Benefit Payment Date.
Purchase payments do not create a cash value under the Certificate.
Each purchase payment (less any charges shown in the Data pages) will
provide a guaranteed amount of annuity which, when added to all other
guaranteed amounts of annuity so purchased with respect to the Annuitant,
equals the guaranteed Annuity Benefit to be provided under the terms of
this Appendix.
3. ANNUITY BENEFIT PAYMENTS
Annuity Benefit payments under the Life Contingent Annuity begin at the
Initial Benefit Payment Date stated in the Certificate and continue (a) for
the lifetime of the Annuitant or (b) if the Annuity Benefit is purchased on
a survivorship basis as elected by the Owner, for as long as at least one
of the Annuitants named in the
No. 1050-94IC Page 34
<PAGE>
Certificate is living. The Annuity Benefit form elected by the Owner at
issue will be set forth in the Certificate. The form of the Annuity Benefit
may not be changed.
Annuity Benefit payments will be made as set forth in the Certificate. They
may be made monthly, quarterly or annually. If Equitable does not receive
written notice from the Owner, the payments will be made annually.
Equitable reserves the right to change the frequency to meet its minimum
payment rules, as described in the Certificate.
4. AMOUNT OF ANNUITY BENEFIT
Guaranteed Annuity Benefit payments will be based on [4% interest and the
1983 "a" Individual Annuity Mortality table, projected with modified Scale
"G"]. The schedule in the Certificate shows the guaranteed purchase rates
for the Initial Benefit Payment Date selected. Before the Initial Benefit
Payment Date, Equitable will report annually the amount of payments to be
provided at such Date. In addition, Equitable may from time to time
increase the amount of the Annuity Benefit payments based on changes in its
expectations as to future mortality and interest. Any such increase will
be made on a uniform and non-discriminatory basis.
5. INITIAL BENEFIT PAYMENT DATE
The Owner may elect to change the Initial Benefit Payment Date subject to
conditions shown in the Certificate. The Annuity Benefit will be determined
by applying the present value of Annuity Benefits as of the prior Initial
Benefit Payment Date using the guaranteed mortality and interest (see item
4). If the Owner wishes to change such Date, the Owner must do this in
writing. The change will not take effect until written election is received
and accepted by Equitable at its Processing Office.
If this Appendix applies in connection with an IRA Certificate, the
recalculation of life expectancies as described in item 5, the third
paragraph, of Appendix A will apply in determining the required
distributions.
6. TRANSFERS/WITHDRAWALS
This Appendix provides no Annuity Account Value. No transfers or
withdrawals, described in Parts IV and V of the Certificate, will apply to
purchase payments made under this Appendix.
7. DEATH BENEFITS
Payments will continue as long as an Annuitant survives. There will be no
death benefits payable to any beneficiary under this Appendix.
No. 1050-94IC Page 35
<PAGE>
If the death of the Annuitant(s) occurs before the due date of the first
Annuity Benefit payment, Equitable will not make any payments under the
Annuity Benefit nor will Equitable refund any part of the purchase payments
paid for it.
8. ASSIGNMENT
This Annuity may not be sold, assigned, discounted or pledged as collateral
for a loan or as security for the performance of an obligation or for any
other purpose, and except as otherwise permitted by law, no sum payable
under this Annuity may be transferred, assigned or encumbered, or will in
any way be subject to any legal process to subject the same to the payment
of any claim against the person to whom any sum is payable.
9. PAYMENT
All payments by Equitable under this Annuity will be made by check (in
United States dollars) and will be payable at the Processing Office.
10. CONDITIONS
Equitable may require proof acceptable to it that the person(s) on whose
life the Annuity Benefit payment is based is alive when each payment is
due. Equitable will require proof of the age of any such person.
If the Annuity Benefit was based on information that is later found not to
be correct, such Benefit will be adjusted on the basis of the correct
information. The adjustment will be made in the amount of the Annuity
Benefit payments, or any amount used to provide the Annuity Benefit, or any
combination. Overpayments by Equitable will be charged against future
payments. Underpayments will be added to future payments. Equitable's
liability is limited to the correct information and the actual amounts used
to provide the Annuity Benefit.
If the age or sex of any person upon whose life the Annuity Benefit depends
has been misstated, the Annuity Benefit payments will be those which would
have been purchased at the correct age or sex. Any overpayments or
underpayments made by Equitable will be charged or credited with interest
at the rate shown in the Certificate; Equitable will choose which rate will
apply on a uniform basis for like Certificates. Such interest will be
deducted from or added to future payments.
11. STATUTORY COMPLIANCE
The benefits under this Appendix have been determined without regard to
other benefits provided under the Certificate. They will not be less than
the minimum benefits required by any applicable state law.
No. 1050-94IC Page 36
CERTIFICATE
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
("Equitable")
Processing Office: [Individual Annuity Center, P.O. Box XXXX, G.P.O.
New York, New York, 10016]
This is the Certificate which is issued under the terms of the Contract defined
in Section 1.09. This Certificate is issued in return for the application for
coverage under the Contract and the Contributions to be made to us under the
Contract.
In this Certificate, "we", "our" and "us" mean Equitable. "You" and "your" mean
the Owner.
We will provide the benefits and other rights pursuant to the terms of this
Certificate.
[TEN DAYS TO CANCEL - Not later than ten days after you receive this
Certificate, you may return it to us. We will cancel it and refund any
Contribution made to us.]
NEW YORK,
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<S> <C> <C>
/s/ Joseph J. Melone /s/ James M. Benson /s/ Molly K. Heines
Chairman and Chief Executive Officer President and Chief Operating Officer Vice President and Secretary
</TABLE>
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE (SEE PART II OF THIS CERTIFICATE).
No. 94ICA
[Cover Page "A"]
<PAGE>
CERTIFICATE
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
("Equitable")
Processing Office: [Individual Annuity Center, P.O. Box XXXX, G.P.O.
New York, New York, 10016]
This is the Certificate which is issued under the terms of the Contract defined
in Section 1.09. This Certificate is issued in return for the application for
coverage under the Contract and the Contributions to be made to us under the
Contract.
In this Certificate, "we", "our" and "us" mean Equitable. "You" and "your" mean
the Owner.
We will provide the benefits and other rights pursuant to the terms of this
Certificate.
[TEN DAYS TO CANCEL - Not later than ten days after you receive this
Certificate, you may return it to us. We will cancel it and refund any
Contribution made to us, plus or minus any investment gain or loss which applies
to the Investment Funds of the Separate Account from the date such Contribution
was allocated to such Fund to the date of cancellation.]
NEW YORK,
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
<TABLE>
<S> <C> <C>
/s/ Joseph J. Melone /s/ James M. Benson /s/ Molly K. Heines
Chairman and Chief Executive Officer President and Chief Operating Officer Vice President and Secretary
</TABLE>
THE PORTION OF ANNUITY ACCOUNT VALUE HELD IN THE SEPARATE ACCOUNT MAY INCREASE
OR DECREASE IN VALUE (SEE PART II OF THIS CERTIFICATE).
No. 94ICB
[Cover Page "B"]
<PAGE>
TABLE OF CONTENTS
Page
----
Part I - DEFINITIONS 3
Part II - INVESTMENT OPTIONS 6
Part III - CONTRIBUTIONS AND ALLOCATIONS 10
Part IV - TRANSFERS AMONG INVESTMENT OPTIONS 11
Part V - WITHDRAWALS AND TERMINATION 12
Part VI - DEATH BENEFITS 13
Part VII - ANNUITY BENEFITS 14
Part VIII - CHARGES 17
Part IX - GENERAL PROVISIONS 19
TABLE OF GUARANTEED ANNUITY PAYMENTS 21
DATA
No. 94ICA/B Page 2
<PAGE>
PART I - DEFINITIONS
SECTION 1.01 [ANNUITANT]
["Annuitant"] means the individual shown as such in the Data pages, or any
successor [Annuitant].
SECTION 1.02 ANNUITY ACCOUNT VALUE
"Annuity Account Value" means the sum of the amounts held for you in the
Investment Options.
SECTION 1.03 ANNUITY BENEFIT
"Annuity Benefit" means a benefit payable by us as described in Part VII.
SECTION 1.04 ANNUITY COMMENCEMENT DATE
"Annuity Commencement Date" means the date on which annuity payments are to
commence as described in Section 7.03. Such date is the date shown in the Data
pages and is subject to change as described in Section 7.03.
SECTION 1.05 BUSINESS DAY
A "Business Day" is any day on which we are open and the New York Stock Exchange
is open for trading, or any other day specified in the Data pages. Our Business
Day ends at 4:00 p.m., Eastern time, or such other time as we state in writing
to you.
SECTION 1.06 CASH VALUE
"Cash Value" means an amount equal to the Annuity Account Value, less any
charges that apply as described in Part VIII and any charges that may apply as
described in any applicable Endorsement(s).
SECTION 1.07 CERTIFICATE
"Certificate" means this certificate including the Data pages and any
endorsement(s). It is a summary of the Contract terms which affect you.
SECTION 1.08 CODE
"Code" means the Internal Revenue Code of [1986], as amended at any time, or any
corresponding provisions of prior or subsequent United States revenue laws.
SECTION 1.09 CONTRACT
"Contract" means the Group Annuity Contract named in the Data pages. A copy of
the contract is on file with us. You may ask to see it at any reasonable time.
No. 94ICA/B Page 3
<PAGE>
SECTION 1.10 CONTRACT DATE
"Contract Date" means the earlier of (a) the date on which the [Annuitant] is
enrolled under the Contract according to our enrollment procedures and (b) the
date of enrollment under a prior Contract. Such date is shown in the Data pages.
SECTION 1.11 CONTRACT YEAR
"Contract Year" means the twelve month period starting on (i) the Contract Date
and (ii) each anniversary of the Contract Date, unless we agree to another
period.
SECTION 1.12 CONTRIBUTION
"Contribution" means a payment made to us under the Contract. See Section 3.01.
SECTION 1.13 EMPLOYER
"Employer" means, if applicable, an employer as defined in an endorsement
hereto.
SECTION 1.14 GUARANTEED INTEREST RATE
"Guaranteed Interest Rate" means the effective annual rate(s) at which interest
accrues on amounts in the [Guaranteed Interest Account].
SECTION 1.15 INVESTMENT FUND
"Investment Fund" means a sub-fund of a Separate Account. An Investment Fund may
invest its assets in a separate class (or series) or shares of a specified trust
or investment company where each class (or series) represents a separate
portfolio in such trust or investment company.
SECTION 1.16 INVESTMENT OPTION
"Investment Option" means the [Guaranteed Interest Account], a Separate Account,
or an Investment Fund of a Separate Account [or each Guarantee Period in the
Guaranteed Period Account (Separate Account No. 46)].
SECTION 1.17 OWNER
"Owner" means the person or entity shown as such in the Data pages, or any
successor owner.
SECTION 1.18 PLAN
"Plan" means, if applicable, the annuity program sponsored by the Employer and
as may be defined in an endorsement hereto.
SECTION 1.19 PRIOR CONTRACT
"Prior Contract" means another contract or certificate issued by us and from
which the Owner and we have agreed to transfer amounts to this Contract.
No. 94ICA/B Page 4
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SECTION 1.20 PROCESSING DATE
"Processing Date" means the day(s) we deduct charges from the Annuity Account
Value. The Data pages show how often a Processing Date will occur.
SECTION 1.21 PROCESSING OFFICE
"Processing Office" means the Equitable administrative office shown on the cover
page of this Certificate, or such other location we may state upon written
notice to you.
SECTION 1.22 SEPARATE ACCOUNT
"Separate Account" means any of the Separate Accounts [(except our Separate
Account No. 46)] described or referred to in Sections 2.02 and 2.05.
SECTION 1.23 TRANSACTION DATE
The Transaction Date is the Business Day we receive at the Processing Office a
Contribution or a transaction request providing the information we need.
Transaction requests must be in a form acceptable to us.
No. 94ICA/B Page 5
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PART II - INVESTMENT OPTIONS
SECTION 2.01 [GUARANTEED INTEREST ACCOUNT]
Any amount held in the [Guaranteed Interest Account] becomes part of our general
assets, which support the guarantees of the Contract and other contracts.
The amount in such Account at any time is equal to:
o all amounts that have been allocated or transferred to such Account,
plus
o the amount of any interest credited, less
o all amounts that have been withdrawn (including charges) or
transferred from such Account.
We will credit the amount held in such Account with interest at effective annual
rates that we set. We will also set a minimum Guaranteed Interest Rate that will
remain in effect through a stated twelve-month period or a calendar year. The
Data pages show the initial Rate(s) to apply.
We guarantee that any rate so set after your Contract Date will never be less
than the minimum rate shown in the Data pages.
SECTION 2.02 SEPARATE ACCOUNT
We have established the Separate Account(s) and maintain such Account(s) in
accordance with the laws of New York State. Income, realized and unrealized
gains and losses from the assets of the Separate Account(s) are credited to or
charged against it without regard to our other income, gains or losses. Assets
are placed in the Separate Account(s) to support the Contract and other variable
annuity contracts and certificates. Assets may be placed in the Separate
Account(s) for other purposes, but not to support contracts or policies other
than variable annuities and variable life insurance.
The Data pages set forth the Separate Account(s). A Separate Account may be
subdivided into Investment Funds.
The assets of a Separate Account are our property. The portion of such assets
equal to the reserves and other contract liabilities will not be chargeable with
liabilities which arise out of any other business we conduct. We may transfer
assets of a Separate Account in excess of the reserves and other liabilities
with respect to such Account to another Separate Account or to our general
account.
We may, at our discretion, invest Separate Account assets in any investment
permitted by applicable law. We may rely conclusively on the opinion of counsel
(including counsel in our employ) as to what investments we may make as law
permits.
No. 94ICA/B Page 6
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SECTION 2.03 SEPARATE ACCOUNT ACCUMULATION UNITS AND UNIT VALUES
The amount you have in an Investment Fund at any time is equal to the number of
Accumulation Units you have in that Fund multiplied by the Fund's Accumulation
Unit Value at that time. "Accumulation Unit" means a unit which is purchased in
a Separate Account. "Accumulation Unit Value" means the dollar value of each
Accumulation unit in a Separate Account on a given date. (If Investment Funds
apply as described in Section 2.02, then the terms of this Section 2.03 apply
separately to each Fund, unless otherwise stated.)
Amounts allocated or transferred to a Separate Account are used to purchase
Accumulation Units of that Account. Units are redeemed when amounts are
deducted, transferred or withdrawn.
The number of Accumulation Units you have in a Separate Account at any time is
equal to the number of Accumulation Units purchased minus the number of Units
redeemed in that Account up to that time. The number of Accumulation Units
purchased or redeemed in a transaction is equal to the dollar amount of the
transaction divided by the Account's Accumulation Unit Value for that
Transaction Date.
We determine Accumulation Unit Values for each Separate Account for each
Valuation Period. A "Valuation Period" is each Business Day together with any
consecutive preceding non-business days. For example, for each Monday which is a
Business Day, the preceding Saturday and Sunday will be included to equal a
three-day Valuation Period.
Unless the following paragraph applies, the Accumulation Unit Value for a
Separate Account for any Valuation Period is equal to the Accumulation Unit
Value for the immediately preceding Valuation Period multiplied by the ratio of
values "(i) " and "(ii) ". Value "(i) " is the value of the Separate Account at
the close of business at the end of the current Valuation Period, before any
amounts are allocated to or withdrawn from the Separate Account in that Period.
Value "(ii)" is the value of the Separate Account at the close of business at
the end of the preceding Valuation Period, after all allocations and withdrawals
were made for that Period. For this purpose, "value of the Separate Account"
means the market value or, where there is no readily available market, the fair
value of the assets allocated to the Separate Account, as determined in
accordance with our rules, accepted accounting practices, and applicable laws
and regulations.
To the extent the Separate Account invests in Investment Funds, and the assets
of the Funds are invested in a class or series of shares of a specified trust or
investment company, the Accumulation Unit Value of an Investment Fund for any
Valuation Period is equal to the Accumulation Unit Value for that Fund on the
immediately preceding Valuation Period multiplied by the Net Investment Factor
for that Fund for the current Valuation Period. The Net Investment Factor for a
Valuation Period is (a) divided by (b) minus (c), where
(a) is the value of the Investment Fund's shares of the related
portfolio of the specified trust or investment company at the
end of the Valuation Period (before taking into account any
amounts allocated to or withdrawn from the Investment Fund for
the Valuation Period and after deduction of investment
advisory fees and direct operating expenses of the specified
trust or investment
No. 94ICA/B Page 7
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company; for this purpose, we use the share value reported to
us by the specified trust or investment company);
(b) is the value of the Investment Fund's shares of the related
portfolio of the specified trust or investment company at the
end of the preceding Valuation Period (taking into account any
amounts allocated or withdrawn for that Valuation Period);
(c) is the daily Separate Account charges (see Section 8.04) for
the expenses and risks of the Contract, times the number of
calendar days in the Valuation Period, plus any charge for
taxes or amounts set aside as a reserve for taxes.
SECTION 2.04 AVAILABILITY OF INVESTMENT OPTIONS
Section 3.01 describes how Contributions are allocated among Investment Options
based on your election. Your election is subject to the following:
(a) If the Contributions are made pursuant to the terms of a Plan,
then Investment Options available may be subject to the terms
of such Plan, as reported to us by the Owner.
(b) We have the right to limit the number of Options which you may
elect.
The Data pages list which Options are available as of the Contract Date.
SECTION 2.05 CHANGES WITH RESPECT TO SEPARATE ACCOUNT
In addition to the right reserved pursuant to subsection (b) of Section 2.04, we
have the right, subject to compliance with applicable law, including approval of
Certificate owners if required:
(a) to add Investment Funds (or sub-funds of Investment Funds) to,
or to remove Investment Funds (or sub-funds) from, the
Separate Account, or to add other separate accounts;
(b) to combine any two or more Investment Funds or sub-funds
thereof;
(c) to transfer the assets we determine to be the share of the
class of contracts to which the Contract belongs from any
Investment Fund to another Investment Fund;
(d) to operate the Separate Account or any Investment Fund as a
management investment company under the Investment Company Act
of 1940, in which case charges and expenses that otherwise
would be assessed against an underlying mutual fund would be
assessed against the Separate Account;
(e) to operate the Separate Account or any Investment Fund as a
unit investment trust under the Investment Company Act of
1940;
(f) to deregister the Separate Account under the Investment
Company Act of 1940, provided that such action conforms with
the requirements of applicable law;
No. 94ICA/B Page 8
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(g) to restrict or eliminate any voting rights as to the Separate
Account;
(h) to cause one or more Investment Funds to invest some or all of
their assets in one or more other trusts or investment
companies.
If the exercise of these rights results in a material change in the underlying
investment of a Separate Account, you will be notified of such exercise, as
required by law.
A Separate Account or Investment Fund which may be added by us as described
above may be one with respect to which (i) there may be periods during which
Contributions may be restricted pursuant to the maturity terms of such Account
or Fund, (ii) amounts therein may be automatically liquidated pursuant to the
investment policy of the Account, and (iii) investments therein may mature. We
will have the right to reallocate amounts arising from liquidation or maturity
according to your allocation instructions then in effect unless you specify
other instructions with respect to such amounts. If no such allocation
instructions have been made, the reallocation will be made to a designated
Investment Option, or to the next established Account or Fund of the same type
as described in this paragraph, if applicable, as specified in the Data pages.
No. 94ICA/B Page 9
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PART III - CONTRIBUTIONS AND ALLOCATIONS
SECTION 3.01 CONTRIBUTIONS, ALLOCATIONS
You elect which Investment Options will be available under the Certificate
subject to the terms of Section 2.04. Once this election is made, you may
allocate Contributions to, or transfer among, only these Options. You may add or
subtract Options by sending us a written request, but we have the right to
decline your request.
You also elect how to allocate Contributions among the Options chosen. If you
are not the Annuitant, you may delegate to the Annuitant authority to allocate
Contributions. You need not allocate Contributions to each Option you have
chosen. You may change the allocation election at any time by sending us the
proper form. Allocation percentages must be in whole numbers (no fractions) and
must equal 100%.
Each Contribution is allocated (after deduction of any charges that may apply)
in accordance with the allocation election in effect on the Transaction Date.
Contributions made to a Separate Account purchase Accumulation Units in that
Account, using the Accumulation Unit Value for that Transaction Date.
SECTION 3.02 LIMITS ON CONTRIBUTIONS
We have the right not to accept any Contribution which is less than the amount
shown in the Data pages. The Data pages indicate other minimum and maximum
Contribution requirements which may apply. We also have the right, upon advance
notice to you, to:
(a) change such requirements to apply to Contributions made after
the date of such change, and
(b) discontinue acceptance of Contributions under the Contract
with respect to all Owners or with respect to all Owners to
whom the same type of Certificate applies.
No. 94ICA/B Page 10
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PART IV - TRANSFERS AMONG INVESTMENT OPTIONS
SECTION 4.01 TRANSFER REQUESTS
You may request to transfer all or part of the amount held in an Investment
Option to one or more of the other Options. The request must be in a form we
accept. All transfers will be made on the Transaction Date. Transfers are
subject to the terms of Section 4.02 and to our rules in effect at the time of
transfer. With respect to a Separate Account, the transfers will be made at the
Accumulation Unit Value for that Transaction Date.
SECTION 4.02 TRANSFER RULES
The transfer rules which apply are described in the Data pages. A transfer
request will not be accepted if it involves less than the minimum amount, if
any, stated in the Data pages (unless the Annuity Account Value is less than
such amount). We have the right to change our transfer rules. Any change will be
made upon advance notice to you.
The Investment Funds may consist of funds which are classified as "Type A"
Investment Options or "Type B" Investment Options or any other type which may be
specified in the Data pages, as we designate in our discretion for purposes of
the transfer rules described in the Data pages. The Data pages specify whether
such Investment Options are designated Type A or Type B or another type as well
as the minimum or maximum limits on transfers which apply.
No. 94ICA/B Page 11
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PART V - WITHDRAWALS AND TERMINATION
SECTION 5.01 WITHDRAWALS
Unless otherwise stated in the Data pages, you may request, pursuant to our
procedures then in effect, a withdrawal from the Investment Options before the
Annuity Commencement Date and while the [Annuitant] is alive. The request must
be in a form we accept.
On the Transaction Date, we will pay the amount of the withdrawal requested or,
if less, the Cash Value. The amount to be paid plus any Withdrawal Charge which
applies (see Section 8.01) will be withdrawn on a pro rata basis from the
amounts held for you in the Investment Options, unless you elect otherwise and
unless otherwise stated in the Data pages.
We will not accept a withdrawal request if it involves less than the minimum
amount, if any, stated in the Data pages. Further conditions or restrictions may
apply if stated in the Data pages or in an endorsement hereto.
SECTION 5.02 TERMINATION
This Certificate will terminate if one or more of the following events occurs,
unless otherwise specified in the Data pages:
(a) If a withdrawal made under Section 5.01 would result in an Annuity
Account Value of an amount less than the minimum amount stated in the
Data pages, we will so advise you and have the right to pay you such
Value. In that case this Certificate will be terminated.
(b) Before the Annuity Commencement Date, we have the right to pay the Cash
Value and terminate this Certificate if no Contributions are made
during the last [three] completed Contract Years, and the Annuity
Account Value is less than the amount described in item (a) above.
(c) We also have the right to terminate this Certificate if no
Contributions have been made within 120 days of the Contract Date.
No. 94ICA/B Page 12
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PART VI - DEATH BENEFITS
SECTION 6.01 DEATH BENEFIT
Upon receipt of due proof that the [Annuitant] has died before the Annuity
Commencement Date, we will pay a death benefit to the beneficiary named under
Section 6.02. Payment may be subject to the terms of Section 6.02 and any
special rules which may apply as described in any endorsement hereto.
The amount of the death benefit is described in the Data pages.
The death benefit will be paid as an Annuity Benefit or in a single sum, as
described in Section 6.02.
SECTION 6.02 BENEFICIARY
You give us the name of the beneficiary who is to receive any death benefit
payable on the [Annuitant]'s death. You may change the beneficiary from time to
time during the [Annuitant]'s lifetime and while coverage under the Contract is
in force. Any such change must be made in writing in a form we accept. A change
will, upon receipt at the Processing Office, take effect as of the date the
written form is executed, whether or not you are living on the date of receipt.
We will not be liable as to any payments we made before we receive any such
change.
You may name one or more persons to be primary beneficiary on the [Annuitant]'s
death and one or more other persons to be successor beneficiary if the primary
beneficiary dies before the [Annuitant]. Unless you direct otherwise, if you
have named two or more persons as beneficiary, the beneficiary will be the named
person or persons who survive the [Annuitant] and payments will be made to such
persons in equal shares or to the survivor.
Any part of a death benefit payable as described in Section 6.01 for which there
is no named beneficiary living at the [Annuitant]'s death will be payable in a
single sum to the [Annuitant]'s surviving children. The payments will be made in
equal shares, or should none survive or should there be none, then to the
[Annuitant]'s estate.
If you so elect in writing, any amount that would otherwise be payable to a
beneficiary in a single sum may be applied to provide an Annuity Benefit, on the
form of annuity elected by you, subject to our rules then in effect. If at the
[Annuitant]'s death there is no election in effect, the beneficiary may make
such an election. In the absence of any election by either you or the
beneficiary, we will pay the death benefit in a single sum.
Any naming of a beneficiary is subject to the terms of the Plan, if one applies,
including any terms requiring spousal consent.
No. 94ICA/B Page 13
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PART VII ANNUITY BENEFITS
SECTION 7.01 ANNUITY BENEFIT
Payments under an Annuity Benefit will be made monthly. You may elect instead to
have the Annuity Benefit paid at other intervals, such as every three months,
six months, or twelve months, instead of monthly, subject to our rules at the
time of your election or as otherwise stated in the Data pages or any
endorsement hereto. This election may be made at the time the Annuity Benefit
form as described in Section 7.02 is elected. In that event, all references in
this Certificate to monthly payments will, with respect to the Annuity Benefit
to which the election applies, be deemed to mean payments at the frequency
elected.
SECTION 7.02 ELECTION OF ANNUITY BENEFITS
As of the Annuity Commencement Date, provided the [Annuitant] is then living,
the Annuity Account Value will be applied to provide the Normal Form of Annuity
Benefit (described below). However, you may instead elect (i) to have the Cash
Value paid in a single sum, (ii) to apply the Annuity Account Value or Cash
Value, whichever applies pursuant to the first paragraph of Section 7.05, to
provide an Annuity Benefit of any form offered by us or one of our subsidiary
life insurance companies , or (iii) to apply the Cash Value to provide any other
form of benefit payment we offer, subject to our rules then in effect and
applicable laws and regulations. At the time an Annuity Benefit is purchased, we
will issue a supplementary contract which reflects the Annuity Benefit terms.
We will provide notice and election forms to you not more than six months before
the Annuity Commencement Date.
We will have the right to require you to furnish any information we need to
provide an Annuity Benefit. We will be fully protected in relying on such
information and need not inquire as to its accuracy or completeness.
SECTION 7.03 COMMENCEMENT OF ANNUITY BENEFITS
Before the Annuity Commencement Date, you may elect to change such Date to any
date after your election is filed (other than the 29th, 30th, or 31st of any
month). You must do this in writing. The change will not take effect until your
written election is received and accepted by us at our Processing Office.
However, no Annuity Commencement Date will be later than the first day of the
month which follows the date the [Annuitant] attains the "maximum maturity age"
or, if later, the tenth anniversary of the Contract Date. The current maximum
maturity age is shown in the Data pages, but may be changed by us in conformance
with applicable law.
SECTION 7.04 ANNUITY BENEFIT FORMS
The "Normal Form" of Annuity Benefit is an Annuity Benefit payable on the
Life-Period Certain Annuity Form described below, unless another Form is to
apply pursuant to the terms of the Plan, if applicable, the requirements of the
Employee Retirement Income
No. 94ICA/B Page 14
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Security Act of 1974 (ERISA), as amended, or any other law that applies. The
Data pages will state the Normal Form which applies. We may offer other annuity
forms as available from us or from one of our affiliated or subsidiary life
insurance companies. Such a form may, for example, include the Joint and
Survivor Life Annuity Form which provides monthly payments while either of two
persons upon whose lives such payments depend is living. The monthly amount to
be continued when only one of the persons is living will be equal to a
percentage, as elected, of the monthly amount that was paid while both were
living.
The Life-Period Certain Annuity is an annuity payable during the lifetime of the
person upon whose life the payments depend, but with 10 years of payments
guaranteed (10 years certain period). That is, if the original payee dies before
the certain period has ended, payments will continue to the beneficiary named to
receive such payments for the balance of the certain period.
SECTION 7.05 AMOUNT OF ANNUITY BENEFITS
If you elect pursuant to Section 7.02 to have an Annuity Benefit paid in lieu of
the Cash Value, the amount applied to provide the Annuity Benefit will, unless
otherwise stated in the Data pages or required by applicable laws or
regulations, be (i) the Annuity Account Value if the annuity form elected
provides payments for a person's remaining lifetime or (ii) the Cash Value if
the annuity form elected does not provide such lifetime payments.
The amount applied to provide an Annuity Benefit may be reduced by a charge for
any taxes which apply on annuity purchase payments. If we have previously
deducted charges for taxes from Contributions, we will not again deduct charges
for the same taxes before an Annuity Benefit is provided. The balance will be
used to purchase the Annuity Benefit on the basis of either (i) the Tables of
Guaranteed Annuity Payments or (ii) our then current individual annuity rates,
whichever rates would provide a larger benefit with respect to the payee.
SECTION 7.06 CONDITIONS
We may require proof acceptable to us that the person on whose life a benefit
payment is based is alive when each payment is due. We will require proof of the
age of any such person on whose life an Annuity Benefit is based.
If a benefit was based on information that is later found not to be correct,
such benefit will be adjusted on the basis of the correct information. The
adjustment will be made in the number or amount of the benefit payments, or any
amount used to provide the benefit, or any combination. Overpayments by us will
be charged against future payments. Underpayments will be added to future
payments. Our liability is limited to the correct information and the actual
amounts used to provide the benefits.
If the age (or sex, if applicable as stated in the Tables of Guaranteed Annuity
Payments) of any person upon whose life an Annuity Benefit depends has been
misstated, any benefits will be those which would have been purchased at the
correct age (or sex). Any overpayments or underpayments made by us will be
charged or credited with interest at (a) the rate shown in the Data pages or (b)
the then current Guaranteed Interest Rate; we will choose which rate will apply
on a uniform basis for like Certificates. Such interest will be deducted from or
added to future payments.
No. 94ICA/B Page 15
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If we receive acceptable proof that (i) a payee entitled to receive any payment
under the terms of the Contract is physically or mentally incompetent to receive
such payment or a minor, (ii) another person or an institution is then
maintaining or has custody of such payee, and (iii) no guardian, committee, or
other representative of the estate of such payee has been appointed, we may make
the payments to such other person or institution. In the case of a minor, the
payments will not exceed [$200,] or such other amount as may be shown in the
Data pages. We will have no further liability with respect to the payments so
made.
If the amount to be applied hereunder is less than the minimum amount stated in
the Data pages, we may pay the amount to the payee in a single sum instead of
applying it under the annuity form elected.
SECTION 7.07 CHANGES
We have the right, upon advance notice to you, to change at any time after the
fifth anniversary of the Contract's register date and at intervals of not less
than five years, the actuarial basis used in the Tables of Guaranteed Annuity
Payments. However, no such change will apply to (a) any Annuity Benefit provided
before the change or (b) Contributions made before such change which are applied
to provide an Annuity Benefit.
No. 94ICA/B Page 16
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PART VIII - CHARGES
SECTION 8.01 WITHDRAWAL CHARGES
The amount of the Withdrawal Charge is stated in the Data pages. We have the
right to change the Charge shown in the Data pages with respect to future
Contributions, subject to any maximum stated in the Data pages. We will give you
notice of any change.
If specified in the Data pages, a "Free Corridor Amount" will apply as follows:
"Free Corridor Amount" means an amount equal to the percentage, stated in
the Data pages, of the Annuity Account Value, minus the total of all prior
withdrawals (and associated Withdrawal Charges) made as described in
Section 5.01 in the current Contract Year. We have the right to change the
Free Corridor Amount, but it will always be a percentage between [0% and
30%] if so provided in the Data pages.
If the amount of a withdrawal made under Part V is more than the Free
Corridor Amount (defined above), we will (a) first withdraw from the
Investment Options, on the basis described in Section 5.01, an amount
equal to the Free Corridor Amount, and (b) then withdraw from the
Investment Options an amount equal to the excess of the amount requested
over the Free Corridor Amount, plus a Withdrawal Charge if one applies.
For purposes of this Section, amounts withdrawn up to the Free Corridor
Amount will not be deemed a withdrawal of any Contributions. We have the
right to carry forward the Free Corridor Amount into a future Contract
Year, if not used in any Year, if so stated in the Data pages.
Any withdrawals in excess of the Free Corridor Amount will be deemed
withdrawals of Contributions in the reverse order in which they were made.
That is, Contributions will be withdrawn on a last-in, first-out basis
unless the Data pages state that a first-in, first-out basis will apply.
In addition, the [Annuitant]'s years of participation under the Prior Contract,
if applicable, will be included for purposes of determining the Withdrawal
Charge, if so specified in the Data pages in accordance with our rules then in
effect.
If specified in the Data pages we have the right to reduce or waive the
Withdrawal Charge upon such events as stated in the Data pages. Moreover, the
Withdrawal Charge will be reduced if needed in order to comply with any
applicable state or federal law.
SECTION 8.02 ADMINISTRATIVE AND OTHER CHARGES DEDUCTED FROM ANNUITY ACCOUNT
VALUE
As of each Processing Date, we will deduct Administrative Charges or other
Charges related to the administration and/or distribution of this Certificate
from the Annuity Account Value. Such Charges are shown in the Data pages.
No. 94ICA/B Page 17
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If specified in the Data pages, the Charges will be deducted in full or prorated
for the Contract Year, or portion thereof, in which the Contract Date occurs or
in which the Annuity Account Value is withdrawn or applied to provide an Annuity
Benefit or death benefit. If so, the Charges will be deducted when withdrawn or
so applied.
The amount of any such Charge will in no event exceed any maximum amount shown
in the Data pages, subject to any maximum amount permitted under any applicable
law.
We have the right to change the amount of the Charges with respect to future
Contributions. We will give you advance notice of any such change.
SECTION 8.03 TRANSFER CHARGES
We have the right to impose a charge with respect to any transfer among
Investment Options after the number of free transfers, shown in the Data pages,
made on behalf of an [Annuitant]. The amount of such charge will be set forth in
a notice from us to you and will in no event exceed any maximum amount stated in
the Data pages.
SECTION 8.04 DAILY SEPARATE ACCOUNT CHARGE
Assets of the Investment Funds will be subject to a daily asset charge. This
daily asset charge is for mortality risk, expenses and expense risk that we
assume, as well as for financial accounting and death benefits if specified in
the Data pages. The charge will be made pursuant to item (c) of "Net Investment
Factor" as defined in Section 2.03. Such charge will be applied after any
deductions to provide for taxes. It will be at a rate not to exceed the maximum
annual rate stated in the Data pages. We have the right to charge less on a
current basis; the actual charge to apply, for at least the first Contract Year,
is also stated in the Data pages.
SECTION 8.05 CHANGES
In addition to our right to reduce or waive charges as described in this Part
VIII, we have the right, upon advance notice to you, to increase the amount of
any charge stated in the Data pages, subject to (a) any maximum amount provided
in this Part VIII or the Data pages and (b) with respect to Withdrawal Charges
and Administrative or Other Charges deducted from the Annuity Account Value, the
application of any increase only to Contributions made after the date of the
change.
No. 94ICA/B Page 18
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PART IX - GENERAL PROVISIONS
SECTION 9.01 CONTRACT
The Contract is the entire contract between the parties. It will govern with
respect to our rights and obligations.
The Contract may not be changed, nor may any of our rights or rules be waived,
except in writing and by our authorized officer. In addition to the rights of
change reserved by us as provided in this Certificate, the Contract may be
changed by amendment or replacement upon agreement between the Contract Holder
and us without the consent of any other person provided that any such change
does not reduce any Annuity Benefit provided before such change and provided
that no rights, privileges or benefits under the Contract and this Certificate
with respect to Contributions made hereunder prior to the effective date of such
change may be adversely affected by an amendment without the consent of the
Contract Holder and each Certificate Owner.
SECTION 9.02 STATUTORY COMPLIANCE
We have the right to change the Contract without the consent of any other person
in order to comply with any laws and regulations that apply. Such right will
include, but not be limited to, the right to conform the Contract to reflect
changes in the Code, in Treasury regulations or published rulings of the
Internal Revenue Service, ERISA, and in Department of Labor regulations.
The benefits and values available under the Contract will not be less than the
minimum benefits required by any state law that applies.
SECTION 9.03 DEFERMENT
The use of proceeds to provide a payment of a death benefit and payment of any
portion of the Annuity Account Value (less any Withdrawal Charge that applies)
will be made within seven days after the Transaction Date. Payments or use of
proceeds from the Investment Funds can be deferred for any period during which
(1) the New York Stock Exchange is closed or trading is restricted, (2) sales of
securities or determination of the fair value of an Investment Fund's assets is
not reasonably practicable because of an emergency, or (3) the Securities and
Exchange Commission, by order, permits us to defer payment in order to protect
persons with interests in the Investment Funds. We can defer payment or transfer
of any portion of the Annuity Account Value in the [Guaranteed Interest Account]
for up to six months while you are living.
SECTION 9.04 REPORTS AND NOTICES
At least once each year until the Annuity Commencement Date, we will send you a
report showing:
(a) the dollar amount in the [Guaranteed Interest Account];
(b) the total number of Accumulation Units in each Separate Account
or Investment Fund;
No. 94ICA/B Page 19
<PAGE>
(c) the Accumulation Unit Value;
(d) the dollar amount in each Separate Account or Investment Fund;
(e) the Cash Value; and
(f) the amount of the death benefit.
The terms which require us to send you a report as described above or any
written notice as described in any other Section will be satisfied by our
mailing any such report or notice to your last known address as shown in our
records.
All written notices sent to us will not be effective until received at the
Processing Office. Your Certificate Number should be included in all
correspondence.
SECTION 9.05 ASSIGNMENTS, NONTRANSFERABILITY, NONFORFEITABILITY
No amounts payable under the Contract to a payee other than you may be assigned
by that payee unless permitted herein, nor will they be subject to the claims of
creditors or to legal process, except to the extent permitted by law. Other
restrictions may apply if stated in any endorsement hereto.
SECTION 9.06 MANNER OF PAYMENT
We will pay all amounts hereunder by check (in United States dollars) or, if so
agreed by you and us, by wire transfer. All amounts payable by you must be paid
by check payable to us (in United States dollars) or by any other method
acceptable to us.
No. 94ICA/B Page 20
<PAGE>
TABLE OF GUARANTEED ANNUITY PAYMENTS
------------------------------------
[APPLICABLE TO IRA CERTIFICATES]
--------------------------------
[AMOUNT OF ANNUITY BENEFIT PAYABLE MONTHLY ON THE JOINT AND SURVIVOR LIFE
ANNUITY FORM (WITH 100% OF THE AMOUNT OF THE ANNUITANT'S PAYMENT CONTINUED TO
THE ANNUITANT'S SPOUSE) PROVIDED BY AN APPLICATION OF $1,000.
FEMALE AGES
<TABLE>
<CAPTION>
AGE 60 61 62 63 64 65 66 67 68 69 70
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
60 3.39 3.42 3.46 3.49 3.52 3.55 3.58 3.61 3.64 3.67 3.70
61 3.41 3.45 3.48 3.51 3.55 3.58 3.61 3.64 3.68 3.71 3.74
62 3.43 3.47 3.50 3.54 3.57 3.61 3.64 3.68 3.71 3.74 3.78
63 3.45 3.49 3.52 3.56 3.60 3.63 3.67 3.71 3.74 3.78 3.82
MALE 64 3.47 3.51 3.54 3.58 3.62 3.66 3.70 3.74 3.78 3.82 3.86
AGES 65 3.48 3.52 3.56 3.61 3.65 3.69 3.73 3.77 3.81 3.85 3.89
66 3.50 3.54 3.58 3.63 3.67 3.71 3.76 3.80 3.84 3.89 3.93
67 3.52 3.56 3.60 3.65 3.69 3.74 3.78 3.83 3.88 3.92 3.97
68 3.53 3.57 3.62 3.67 3.71 3.76 3.81 3.86 3.91 3.96 4.00
69 3.54 3.59 3.64 3.69 3.73 3.78 3.83 3.88 3.94 3.99 4.04
70 3.56 3.60 3.65 3.70 3.75 3.81 3.86 3.91 3.96 4.02 4.07
</TABLE>
The amount of income provided under an Annuity Benefit payable on the Joint and
Survivor Life Annuity form is based on 2.5% interest and the 1983 Individual
Annuity Mortality Table "a" projected with modified Scale "G" .
Amounts required for ages or for annuity forms not shown in the above Table will
be calculated by us on the same actuarial basis.
If a variable annuity form is available from us and elected pursuant to Section
7.02, then the amounts required will be calculated by us based on the 1983
Individual Annuity Mortality Table "a" projected with modified Scale "G" and a
modified two year age setback and on an Assumed Base Rate of Net Investment
Return of 3.5%/5.0%.]
No. 94ICA/B Page 21
<PAGE>
TABLE OF GUARANTEED ANNUITY PAYMENTS
------------------------------------
[APPLICABLE TO NON-QUALIFIED CERTIFICATES]
------------------------------------------
[AMOUNT OF ANNUITY BENEFIT PAYABLE MONTHLY ON THE LIFE ANNUITY FORM
WITH TEN YEARS CERTAIN PROVIDED BY APPLICATION OF $1,000.
Monthly Income Monthly Income
Ages Males Females Age Males Females
---- ----- ------- --- ----- -------
60 4.12 3.70 73 5.52 4.87
61 4.20 3.76 74 5.66 4.99
62 4.29 3.83 75 5.80 5.12
63 4.38 3.90 76 5.95 5.26
64 4.48 3.98 77 6.10 5.40
65 4.58 4.06 78 6.25 5.55
66 4.68 4.14 79 6.40 5.70
67 4.79 4.23 80 6.56 5.85
68 4.90 4.32 81 6.72 6.01
69 5.02 4.42 82 6.88 6.18
70 5.14 4.52 83 7.04 6.34
71 5.26 4.63 84 7.20 6.51
72 5.39 4.75 85 7.36 6.67
The amount of income provided under an Annuity Benefit payable on the Joint and
Survivor Life Annuity form is based on 2.5% interest and the 1983 Individual
Annuity Mortality Table "a" projected with modified Scale "G", adjusted to a
unisex basis, reflecting a 20%-80% split of males and females at pivotal age 55.
Amounts required for ages not shown in the above Table or for other annuity
forms will be calculated by us on the same actuarial basis.
If a variable annuity form is available from us and elected pursuant to Section
7.02, then the amounts required will be calculated by us based on the 1983
Individual Annuity Mortality Table "a" projected with modified Scale "G" and a
modified two year age setback and a 20%-80% split of males and females at age 55
and on an Assumed Base Rate of Net Investment Return of 3.5%/5.0%.]
No. 94ICA/B Page 22
ENDORSEMENT
APPLICABLE TO IRA CERTIFICATES
As specified in the Data pages, this Certificate is an "IRA Certificate" which
is issued as an individual retirement annuity contract which meets the
requirements of Section [408(b)] of the Code. It is established for the
exclusive benefit of you and your beneficiaries, and the terms below change, or
are added to, applicable sections of this Certificate. Also, your rights
under the Contract are not forfeitable.
1. OWNER (SECTION 1.17):
You must be both the Owner and the Annuitant.
2. ANNUITY COMMENCEMENT DATE (SECTION 1.04):
You may not choose an Annuity Commencement Date later than the maximum
maturity age stated in the Data pages. If you choose a Date later than
age [70 1/2], you must withdraw at least the minimum payments required
under Sections [408(b) and 401(a)(9)] of the Code and applicable
Treasury regulations. See Section 5.01 of the Certificate and item 5
below.
3. CONTRIBUTIONS (SECTION 3.01 AND 3.02):
No Contributions will be accepted unless they are in cash (or check or
other form if we require). Except in the case of a "rollover
contribution," the total of such Contributions will not exceed [$2,000]
for any taxable year. A "rollover contribution" is one permitted by
Sections [402(c), 403(a)(4), 403(b)(8), or 408(d)(3)] of the Code.
Amounts transferred to the Contract from an individual retirement
account or annuity contract which meets the requirements of Section
[408] of the Code are not subject to the [$2,000] limit.
If you make a Contribution which is an "eligible retirement plan
rollover" as defined in Section [402(c) or 403(b)(8)] of the Code, and
you commingle such Contribution with other Contributions, you may not
be able to roll over the eligible retirement plan Contributions and
earnings to another qualified plan or Code Section [403(b)] arrangement
at a future date, unless the Code permits.
4. DEATH BENEFITS (SECTION 6.01):
Under the following circumstances, the death benefit described in
Section 6.01 of the Certificate will not be paid at your death before
the Annuity Commencement Date and the coverage under the Contract will
continue with your surviving spouse as Successor Annuitant and Owner:
a. you are married at your death;
b. the person named as death beneficiary under Section 6.02 of
the Certificate is your surviving spouse; and
No. 94ENIRAI Page 1
<PAGE>
c. you have additionally requested that your spouse become
"Successor Annuitant and Owner" of your Certificate if your
spouse survives you.
5. REQUIRED PAYMENTS:
This Certificate is subject to these "Required Payment" or "Minimum
Distribution" rules of Sections [408(b) and 401(a)(9)] of the Code and
the Treasury Regulations which apply.
MINIMUM DISTRIBUTION RULES -- REQUIRED PAYMENTS DURING YOUR LIFE --
[Your entire interest in this Certificate will be distributed or begin
to be distributed no later than the first day of April following the
calendar year in which you attain age 70 1/2 ("Required Beginning
Date"). Your entire interest may be distributed, as you elect, over (a)
your life, or the lives of you and your designated beneficiary, or (b)
a period certain not extending beyond your life expectancy, or the
joint and last survivor expectancy for you and your designated
beneficiary. Distributions must be made in periodic payments at
intervals of no longer than one year. In addition, payments must be
either non-increasing or they may increase only as provided in Q & A
F-3 of Section 1.401(a)(9)-1 of the Proposed Treasury Regulations, or
any successor Regulation thereto.
All distributions made under this Certificate must be made in
accordance with the requirements of Sections 408(b) and 401(a)(9) of
the Code, including the incidental death benefit requirements of
Section 401(a)(9)(G) of the Code, and applicable Treasury Regulations,
including the minimum distribution incidental benefit requirements of
Section 1.401(a)(9)-2 of the Proposed Treasury Regulations, or any
successor Regulation thereto.
For purposes of determining the "period certain" referred to in the
first paragraph of this Section, life expectancy is computed by use of
the expected return multiples in Tables V and VI of Treasury Regulation
Section 1.72-9. Unless you otherwise elect prior to the time
distributions are required to begin, life expectancies will be
recalculated annually. Such election will be irrevocable and will apply
to all subsequent years. The life expectancy of a non-spouse
beneficiary, if the naming of such a beneficiary is permitted by our
rules then in effect, may not be recalculated. Instead, life expectancy
will be calculated using the attained age of such beneficiary during
the calendar year in which you attain age 70 1/2, and payments of
subsequent years will be calculated based on such life expectancy
reduced by one for each calendar year which has elapsed since the
calendar year life expectancy was first calculated.
MINIMUM DISTRIBUTION RULES -- DEATH BENEFIT - If you die after
distribution of your interest in this Certificate has begun, the
remaining portion of such interest will continue to be distributed at
least as rapidly as under the method of distribution being used prior
to your death.
If you die before distribution of your interest in this Certificate
begins, distribution of your entire interest will be completed no later
than December 31 of the calendar year containing the fifth anniversary
of your death, except to the extent that an election is made to receive
death benefit distributions in accordance with (a) or (b) below:
No. 94ENIRAI Page 2
<PAGE>
(a) If your interest is payable to a designated
beneficiary, then your entire interest may be
distributed over the life of, or over a period certain
not greater than the life expectancy of, the designated
beneficiary. Such distributions must commence on or
before December 31 of the calendar year immediately
following the calendar year of your death.
(b) If the designated beneficiary is your surviving spouse,
the date that distributions are required to begin in
accordance with (a) above shall not be earlier than the
later of (1) December 31 of the calendar year
immediately following the calendar year of your death
or (2) December 31 of the calendar year in which you
would have attained age 70 1/2.
If the designated beneficiary is your surviving spouse, and a Successor
Annuitant and Owner option (described in item 4 above of this
Endorsement) is in effect, the distribution of your interest need not
be made until after your spouse's death.
For purposes of determining the "period certain" referred to in the
immediately preceding paragraph, life expectancy is computed by use of
the expected return multiples in Table V and VI of Treasury Regulation
Section 1.72-9. For purposes of distributions beginning after your
death, unless otherwise elected by the surviving spouse by the time
distributions are required to begin, life expectancies will be
recalculated annually. Such election will be irrevocable by the
surviving spouse and will apply to all subsequent years. In the case of
any other designated beneficiary, life expectancies will be calculated
using the attained age of such beneficiary during the calendar year in
which distributions are required to begin, pursuant to this item, and
payments for any subsequent calendar year will be calculated based on
such life expectancy reduced by one for each calendar year which has
elapsed since the calendar year life expectancy was first calculated.
Distributions under this item are considered to have begun if
distributions are made because you have reached your Required Beginning
Date, or if prior to the Required Beginning Date, distributions
irrevocably commence to you over a period permitted and in any annuity
form acceptable under Section 1.401(a)(9)-1 of the Proposed Treasury
Regulations or any successor Regulation thereto.]
6. REPORTS - NOTICES (SECTION 9.04):
We will send you a report as of the end of each calendar year showing
the status of the annuity and any other reports required by the Code or
Treasury Regulations.
7. ASSIGNMENTS (SECTION 9.05):
Your rights may not be assigned, pledged or transferred except as
permitted by law. You may not name a new Owner, except as described in
item 4 of this Endorsement.
8. TERMINATION OF CERTIFICATE:
If an annuity under the Contract fails to qualify as an annuity under
Section [408(b)] of the Code, we will have the right to terminate the
Certificate. We may do so, upon receipt of notice of such fact, before
the Annuity Commencement Date. In that case, we will pay the Annuity
Account Value less a deduction for the part
No. 94ENIRAI Page 3
<PAGE>
which applies to any Federal income tax payable by you which would not
have been payable with respect to an annuity which meets the terms of
the Code.
No. 94ENIRAI Page 4
<PAGE>
ENDORSEMENT
APPLICABLE TO NON-QUALIFIED
CERTIFICATES
This Endorsement applies only to the Owner of a Non-Qualified Certificate.
1. CONTRIBUTIONS (SECTION 3.01):
We have the right not to accept any Contribution which is less than the
amount(s) stated in the Data pages.
2. OWNER DEATH DISTRIBUTION RULES (SECTION 6.01):
Upon the death of you, as Owner, before the Annuity Commencement Date:
(a) If you are both the Owner and the Annuitant, we will pay the
death benefit described in Section 6.01. Any part of a death
benefit for which there is no named beneficiary living at your
death will be payable in a single sum to your children who
survive you in equal shares, or should none survive, then to
your estate.
Under the following circumstances, the death benefit described
in Section 6.01 of the Certificate will not be paid at your
death before the Annuity Commencement Date and the coverage
under the Contract will continue with your surviving spouse as
Successor Annuitant and Owner:
(i) you are married at your death;
(ii) the person named as death beneficiary under Section
6.02 of the Certificate is your surviving spouse; and
(iii) you have additionally requested that your spouse
become "Successor Annuitant and Owner" of your
Certificate if your spouse survives you.
(b) If you are not the Annuitant, the named beneficiary will
succeed as Owner. The entire amount in the Investment Options
(after any Withdrawal Charge) must be fully paid within five
years after your death, or payments must begin within one year
after your death as a life annuity or installment option for a
period of not longer than the life expectancy of the named
beneficiary. If you have not elected a form of payment as
described in Section 6.02, we will make a single sum payment
to the beneficiary on the fifth anniversary of your death.
Subject to our rules at the time of payment, the beneficiary
may elect to apply such a single sum payment to a new
non-qualified annuity contract to be owned by the beneficiary.
Instead of a single sum payment, the beneficiary may elect to
receive an Annuity Benefit or a payout option which satisfies
the terms of Section [72(s)] of the Code and our rules at the
time. However, if the named beneficiary is your spouse, full
payment of amounts
No. 94ENNQI Page 1
<PAGE>
under the Certificate must be made not later than five years
after the spouse's death.
If payments under an Annuity Benefit had begun before your
death, such payments will continue to be made pursuant to the
terms of such Benefit.
If the Annuitant dies before the entire amount under the
Certificate is paid, we will pay the death benefit as
described in Section 6.01.
(c) Unless you direct otherwise, the named beneficiary will also
be the person who succeeds as Owner on your death while the
Annuitant is alive as described in Section 6.02. You may
change any beneficiary or successor Owner from time to time
during the Annuitant's lifetime and while the Certificate is
in force, as described in item (a) above.
(d) If you are not the Annuitant, you may name another person to
be the successor Owner and to receive the amounts to be paid
under (b) above. You may also name another person to be
successor Owner if the first choice as successor Owner dies
before you. If you have so named two or more persons to
succeed as Owner and more than one survive, they will share
equally unless you direct otherwise. If no person named as
beneficiary to receive the death benefit survives the
Annuitant, we will pay the death benefit in a single sum to
you. In the event of your death after the Annuitant, but
before we pay such death benefit, the benefit will be payable
in a single sum to the children who survive you, in equal
shares, or should none survive, to your estate.
If you die before the Annuity Commencement Date while the
Annuitant is still living, and if no person named as successor
Owner is living at the Owner's death, the beneficiary will be
deemed to be, in this order, (i) your surviving spouse, (ii)
the Annuitant, (iii) the children who survive you, in equal
shares, or (iv) your estate.
3. ASSIGNMENTS (SECTION 9.05):
Notwithstanding the terms of Section 9.05, you may assign the
Certificate and the rights described therein before the Annuity
Commencement Date. We will not be bound by an assignment unless we have
received it and it is in writing. Your rights and those of any other
persons referred to in the Certificate and this Endorsement will be
subject to the assignment. We assume no responsibility for the validity
of any assignment.
No. 94ENNQI Page 2
<PAGE>
ENDORSEMENT
APPLICABLE TO MARKET VALUE ADJUSTMENT TERMS
********************************************************************************
THE TERMS OF THIS ENDORSEMENT CONTAIN A MARKET VALUE ADJUSTMENT ("MVA") FORMULA
WHICH MAY RESULT IN ADJUSTMENTS, POSITIVE OR NEGATIVE, IN BENEFITS. AN MVA WILL
NOT APPLY UPON TRANSFER TO A NEW GUARANTEE PERIOD OR OTHER INVESTMENT OPTION ON
THE EXPIRATION DATE OR PURSUANT TO ITEM 1 BELOW.
********************************************************************************
1. GUARANTEED PERIOD ACCOUNT
We will specify one or more Guarantee Periods in the Guaranteed Period
Account. For each such Guarantee Period, we guarantee to credit an
interest rate (called the Guaranteed Rate). Interest will be credited
daily to amounts in the Guaranteed Period Account. The duration of each
Guarantee Period provided at any time and the Guaranteed Rate that
applies to each Period will be furnished by us upon request. The
Guarantee Period(s) and the Rate for each such Period you initially
elect are shown in the Data pages.
You may elect one or more Guarantee Period(s), according to our rules
then in effect. Contributions and transfers to be made to the
Guaranteed Period Account as described in Section 3.01 will be
allocated to the Guarantee Period(s) according to your election.
Contributions and transfers into the Guaranteed Period Account will
receive the Guaranteed Rate applicable to the elected Guarantee Period
as of the Business Day we receive your Contribution or transfer request
at our Processing Office. The amount held with respect to a given
Guarantee Period is called the Guaranteed Period Amount which reflects
Contributions and transfers made to the Guaranteed Period Account, plus
interest at the Guaranteed Rate(s), minus any withdrawals, transfers
and charges, if any, deducted from the Guaranteed Period Account.
The last day of a Guarantee Period is the Expiration Date. We will
notify you at least [15 but not more than 45] days before the
Expiration Date of each Period. You may elect one of the following
three options effective at the Expiration Date, none of which will
result in a market value adjustment:
(a) to transfer the Guaranteed Period Amount into a Guarantee
Period of any duration which we then offer;
(b) to transfer the Guaranteed Period Amount to another
Investment Option;
(c) to make a withdrawal of the Guaranteed Period Amount
(subject to any Withdrawal Charges which apply pursuant to
Section 8.01).
No. 94ENMVAI Page 1
<PAGE>
If no election is made on or prior to the Expiration Date, the
Guaranteed Period Amount (without any market value adjustment) will be
transferred into the Investment Option described in the Data pages.
During the 30 days following the Expiration Date, the full Guaranteed
Period Amount (less any withdrawals or transfers made or charges
deducted during such 30 day period) may be transferred into a new
Guarantee Period or other Investment Option. In no event may you elect
a Guarantee Period which extends beyond the Annuity Commencement Date.
The "Guaranteed Period Account" is our Separate Account No. 46 that we
use to account for amounts allocated to Guarantee Periods under this
Certificate. All amounts allocated to a Guarantee Period, whether
Contributions or transfers, become part of the Guaranteed Period
Account.
2. TRANSFERS, WITHDRAWALS, DEATH AND ANNUITY BENEFITS
If you request, other than as described in item 1 above, a transfer to
another Investment Option as described in Section 4.01 or a withdrawal
as described in Section 5.01, any such transfer or withdrawal from a
Guaranteed Period Amount will be subject to a market value adjustment
described below. For this purpose, the Annuity Account Value in
Separate Account No. 46 will be after the market value adjustment. The
market value adjustment will be in addition to any charges which apply
as described in Section 8.01.
In addition, amounts applied from a Guaranteed Period Amount to provide
a death benefit as described in Section 6.01, an annuity as described
in Section 7.02, or any other annuity form offered by us, will be
subject to a market value adjustment, unless otherwise provided in the
Data pages.
Payment or transfers from the Guaranteed Period Account may be deferred
for up to six months while you are living.
3. MARKET VALUE ADJUSTMENT
The market value adjustment with respect to each Guarantee Period that
applies to you is determined as follows:
(a) We determine the Guaranteed Period Amount that will be payable on
the Expiration Date, using the Guaranteed Rate for such Guarantee
Period.
(b) We determine the period remaining in your Guarantee Period (based
on the Business Day we receive your transaction request at our
Processing Office or effective date for such determination) and
convert it to fractional years based on a 365 day year. For
example, three years and 12 days becomes 3.0329.
(c) We determine the current Guaranteed Rate which applies to new
Contributions, for the same class of Certificates as yours, under
a Guarantee Period with the same Expiration Date as your
Guarantee Period. We add to such current Rate a percentage which
is no greater than that shown in the Data pages.
No. 94ENMVAI Page 2
<PAGE>
(d) We determine the present value of the Guaranteed Period Amount
payable at the Expiration Date, using the period determined in
(b) and the rate determined in (c).
(e) We subtract the current Guaranteed Period Amount from the result
in (d). The result is the Market Value Adjustment, which may be
positive or negative, applicable to such Guarantee Period.
If we are not offering a Guarantee Period to which the "current
Guaranteed Rate" would apply, we will use the Rate at the closest
Expiration Date. If we are no longer offering new Guarantee Periods, we
will use a procedure for determining such current Rate that is stated
in the Data pages or which we will develop and file with insurance
supervisory officials of the appropriate jurisdiction.
4. REPORTS AND NOTICES
We will report the values under this Endorsement with the reports sent
out as described in Section 9.04. Such report will include the
Guaranteed Period Amount, market value adjustment, and Annuity Account
Value in Separate Account No. 46.
No. 94ENMVAI Page 3
DATA
PART A -- THIS PART LISTS YOUR PERSONAL DATA
- ------
OWNER: [John Doe]
[Add for Non-Qualified Certificates if Owner is not Annuitant]
Age: [45] Sex: [Male]
ANNUITANT: [Annuitant is same as Owner for IRA Certificates]
[John Doe] Age: [45] Sex: [Male]
Certificate Number: [00000]
Endorsements Attached: [IRA Certificate Endorsement]
[Non-Qualified Certificate Endorsement]
[Market Value Adjustment Terms]
CONTRACT: GROUP ANNUITY CONTRACT NO. AC [0000]
ISSUE DATE: [JANUARY 1, 1994]
CONTRACT DATE: [JANUARY 1, 1994]
ANNUITY COMMENCEMENT DATE:
THE MAXIMUM MATURITY AGE IS AGE [85] -- SEE SECTION 7.03. The Annuity
Commencement Date may not be later than the month which follows the
date the Annuitant attains the maximum maturity age.
[Add for IRA Certificates] However, if you choose a date later than age
70 1/2, you must withdraw at least the minimum payments required (see
item 2 of the Endorsement)
BENEFICIARY: [Jane Doe]
No. 94ICA/BIM Data Page 1
<PAGE>
DATA PAGES (CONT'D).
PART B -- THIS PART LISTS THE CONTRACT TERMS WHICH AFFECT THE TYPE OF
- ------ CERTIFICATE YOU HAVE.
INITIAL CONTRIBUTION RECEIVED (SEE SECTION 3.02): [$10,000]
INVESTMENT OPTIONS AVAILABLE (SEE PART II); YOUR ALLOCATION PERCENTAGE IS ALSO
SHOWN.
INVESTMENT OPTIONS ALLOCATION PERCENTAGE (SEE SECTION 3.O1)
- ------------------ ----------------------------------------
O [CONSERVATIVE INVESTORS FUND
O GROWTH INVESTORS FUND
O GROWTH AND INCOME FUND
O COMMON STOCK FUND
O GLOBAL FUND
O AGGRESSIVE STOCK
O MONEY MARKET FUND
O INTERMEDIATE GOVERNMENT SECURITIES FUND
GUARANTEED PERIOD ACCOUNT
O GUARANTEE PERIODS
EXPIRATION DATE AND GUARANTEED RATE
MAY 15, 1995 - 6.0%
MAY 15, 1996 - 7.0%
MAY 15, 1997 - 8.0%
MAY 15, 1998 - 9.0%
MAY 15, 1999 - 9.0%
MAY 15, 2000 - 9.0%
MAY 15, 2001 - 9.0%
MAY 15, 2002 - 9.0%
MAY 15, 2003 - 9.0%
MAY 15, 2004 - 9.0%]
------------------------
TOTAL: 100%
Investment Options shown are Investment Funds of our Separate Account No. 45 and
Guarantee Periods shown are in the Guaranteed Period Account. See Endorsement
for Market Value Adjustment Terms.
"Types" of Investment Options - see Section 4.02 -- are not applicable.
Guaranteed Interest Account (see Section 2.01): Not available under this
Certificate.
GUARANTEED INTEREST ACCOUNT (SEE SECTION 2.01): Not available under this
Certificate.
No. 94ICA/BIM Data Page 2
<PAGE>
DATA PAGES (CONT'D).
BUSINESS DAY (SEE SECTION 1.05): A Business Day for this Certificate will mean
any day on which the New York Stock Exchange is open for trading.
PROCESSING DATES (SEE SECTION 1.20): A Processing Date is each Contract Date
anniversary.
AVAILABILITY OF INVESTMENT OPTIONS (SEE SECTION 2.04): Section 2.04(b) will not
apply, that is, we will not limit the number of Options available.
DESIGNATED INVESTMENT OPTION (SEE THE SECOND TO LAST PARAGRAPH OF SECTION 2.05):
The designated Investment Option to which amounts will be transferred upon
maturity of amounts in Guarantee Periods is the Money Market Fund.
ALLOCATION OF CONTRIBUTIONS (SEE SECTION 3.01): If we do not receive
instructions from you, additional Contributions will be allocated only among the
Investment Funds in proportion to the Annuity Account Value in each Investment
Fund as of the Transaction Date.
CONTRIBUTION LIMITS (SEE SECTION 3.02):
[VERSION 1 - APPLICABLE TO IRA CERTIFICATES]
Initial Contribution minimum $1,500. Rollover Initial Contribution minimum
$10,000. Additional Contribution minimum $250. Total Contributions must not
exceed $2,000 for any taxable year, except for rollover Contributions.
Additional Contributions can be made until the year in which you reach age 70
1/2, except for rollover Contributions. Also, we may refuse to accept any
Contribution if the sum of all Contributions totals more than $1,500,000.
[VERSION 2 - APPLICABLE TO NON-QUALIFIED CERTIFICATES]
Initial Contribution minimum: $10,000. Additional Contribution minimum: $500,
$250 for preauthorized bank withdrawal. Additional Contributions can be made
until the Annuitant reaches age 80. Also, we may refuse to accept any
Contribution if the sum of all Contributions totals more than $1,500,000.
TRANSFER RULES (SEE SECTION 4.02): (See Data Pages, Part C)
MINIMUM TRANSFER AMOUNT (SEE SECTION 4.02): (See Data Pages, Part C)
NUMBER OF FREE TRANSFERS IN A CONTRACT YEAR (SEE SECTION 4.03): 5
ALLOCATION OF WITHDRAWALS (SEE SECTION 5.01): Unless you elect otherwise,
withdrawals plus any withdrawal charges will be withdrawn on a pro rata basis
from amounts in the Investment Funds.
No. 94ICA/BIM Data Page 3
<PAGE>
DATA PAGES (CONT'D).
MINIMUM WITHDRAWAL AMOUNT (SEE SECTION 5.01): $1,000, except for withdrawals
under the flexible payment withdrawal options where the minimum is $100.
MINIMUM AMOUNT OF ANNUITY ACCOUNT VALUE AFTER A WITHDRAWAL (SEE SECTION 5.02):
Requests for a withdrawal must be for either (a) 90% or less of the Cash Value
or (b) 100% of the Cash Value (surrender of the Certificate).
We will not exercise our rights, described in Sections 5.02(b) and 5.02(c), to
terminate the Certificate.
DEATH BENEFIT AMOUNT (SEE SECTION 6.01):
The sum of:
(1) The Annuity Account Value in the Investment Funds or, if
greater, the guaranteed minimum death benefit defined below;
and
(2) The death benefit amount provided by the Endorsement
Applicable to Market Value Adjustment Terms.
[VERSION 1 -NON NY]
Guaranteed Minimum Death Benefit
On the Contract Date, the guaranteed minimum death benefit is equal to
the portion of the initial Contribution allocated to the Investment
Funds. Thereafter(except as adjusted at the end of the sixth Contract
Year, see (1) below) it is equal to (a) the prior guaranteed minimum
death benefit,(b) plus any additional Contributions and transfers into
the Investment Funds, (c) less any transfers out of such Funds, less
any withdrawals from such Funds, (d) plus interest (see (2) below) that
is credited on each Processing Date.
(1) At the end of the sixth Contract Year, the guaranteed minimum
death benefit calculated on such date will be set at the then
guaranteed minimum death benefit determined above or, if
greater, the current Annuity Account Value in the Investment
Funds.
(2) Interest will be calculated at the applicable effective annual
guaranteed minimum death benefit interest rate (see table
below) taking into account Contributions, transfers and
withdrawals during the Contract Year, except with respect to
amounts in the Money Market Fund where the rate will be based
on the lesser of the actual rate of return and the guaranteed
minimum death benefit interest rate below.
Annuitant's Age
on Contract Date Rate
---------------- ----
up to and including 69 6%
70 through 74 3%
75 through 79 0%
No. 94ICA/BIM Data Page 4
<PAGE>
DATA PAGES (CONT'D).
[VERSION 2 - NY]
Guaranteed Minimum Death Benefit
On the Contract Date, the guaranteed minimum death benefit is equal to
the portion of the initial Contribution allocated to the Investment
Funds. Thereafter, on each Processing Date (except as adjusted at the
end of the sixth Contract Year, see (1) below), the guaranteed minimum
death benefit is reset at the greater of the prior guaranteed minimum
death benefit and the Annuity Account Value in the Investment Funds as
of such Date. In no event, however, will the guaranteed minimum death
benefit on any date be greater than (a) the initial contribution,
(b) plus any additional Contributions and transfers into the Investment
Funds, (c) less any transfers out of such Funds, less any withdrawals
from such Funds, (d) plus interest (see (2) below) that is credited on
each Processing Date.
(1) At the end of the sixth Contract Year, the guaranteed minimum
death benefit calculated on such date will be set at the then
guaranteed minimum death benefit determined above or, if
greater, the current Annuity Account Value in the Investment
Funds.
(2) Interest will be calculated at the applicable effective annual
guaranteed minimum death benefit interest rate (see table
below) taking into account Contributions, transfers and
withdrawals during the Contract Year, except with respect to
amounts in the Money Market Fund where the rate will be based
on the lesser of the actual rate of return and the guaranteed
minimum death benefit interest rate below.
Annuitant's Age
on Contract Date Rate
---------------- ----
up to and including 69 6%
70 through 74 3%
75 through 79 0%
NORMAL FORM OF ANNUITY (SEE SECTION 7.02):
Life Period Certain Annuity Form
AMOUNT OF ANNUITY BENEFIT (SEE SECTION 7.05):
The amount applied to provide the Annuity Benefit will be the Cash
Value.
MINIMUM AMOUNT TO BE APPLIED FOR AN ANNUITY (SEE SECTION 7.06):
$2,000, as well as minimum of $20 for initial monthly annuity payment.
No. 94ICA/BIM Data Page 5
<PAGE>
DATA PAGES (CONT'D).
INTEREST RATE TO BE APPLIED IN ADJUSTING FOR MISSTATEMENT OF AGE OR SEX (SEE
SECTION 7.06):
6% per year
WITHDRAWAL CHARGES (SECTION 8.01):
(a) A withdrawal charge will be imposed as a percentage of the
initial and each additional Contribution made to the extent
that a withdrawal exceeds the Free Corridor Amount as
discussed in Section 8.01 or, if the Certificate is
surrendered to receive the Cash Value. We determine the
withdrawal charge separately for each Contribution in
accordance with the table below.
Current and Maximum
Percentage of
Contract Year Contributions
------------- -------------
1 6.00%
2 5.00%
3 4.00%
4 3.00%
5 2.00%
6 1.00%
7 and later 0.00%
The applicable withdrawal charge percentage is determined by
the Contract Year in which the withdrawal is made or the
Certificate is surrendered, beginning with "Contract Year 1"
with respect to each Contribution withdrawn or surrendered.
For purposes of the table, for each Contribution, the
Contract Year in which we receive that Contribution is
"Contract Year 1."
(b) A withdrawal processing charge of the lesser of $25 and 2% of
the amount withdrawn is assessed for each withdrawal (other
than under the flexible payment withdrawal options) after the
first during a Contract Year.
Both the charges in (a) and (b) will be deducted from the Annuity
Account Value in the Investment Options from which each withdrawal is
made in proportion to the amount being withdrawn from each Investment
Option.
No. 94ICA/BIM Data Page 6
<PAGE>
DATA PAGES (CONT'D)
FREE CORRIDOR AMOUNT (SEE SECTION 8.01)
15% of Annuity Account Value at the beginning of the Contract Year,
minus any amount previously withdrawn during the Contract Year. Amounts
withdrawn up to the Free Corridor Amount will not be deemed a
withdrawal of Contributions.
Withdrawals in excess of the Free Corridor Amount will be deemed
withdrawals of Contributions in the order in which they were made (that
is, the first-in, first-out basis will apply).
The Free Corridor Amount does not apply when calculating the withdrawal
charge applicable upon a surrender.
CHARGES DEDUCTED FROM ANNUITY ACCOUNT VALUE (SEE SECTION 8.02):
(a) Distribution Fee: A distribution fee currently in an amount of
0.65% of the initial and each additional Contribution made
within the prior six years that have not been withdrawn, is
deducted on the six Processing Dates (so long as the
Certificate is in force) following receipt of each
Contribution. 0.65% is the maximum we will charge.
(b) Annual Contract Fee: An annual contract fee of $30 per
Contract Year is incurred at the beginning of each Contract
Year and deducted on each Processing Date. $30 is the maximum
amount we will charge. If total Contributions received in the
first Contract Year equal $100,000 or more, this charge will
be zero.
(c) Transfer Charge: For each transfer in excess of five free
transfers, we will currently charge $25 at the time each
transfer is processed. $25 is the maximum amount we will
charge.
We will also deduct $25 per occurrence for a direct transfer
to a third party of amounts under the Certificate or an
exchange for another contract of another issuer. $25 is the
maximum amount we will charge.
(d) Guaranteed Minimum Death Benefit Charge: For the guaranteed
minimum death benefit we will deduct on each Processing Date
an amount equal to 0.35% of the guaranteed minimum death
benefit in effect on such Processing Date. 0.35% is the
maximum we will charge.
No. 94ICA/BIM Data Page 7
<PAGE>
DATA PAGES (CONT'D)
(e) Premium Taxes: Premium taxes are generally incurred on the
Annuity Commencement Date and a charge for such premium taxes
will then be deducted from the Annuity Account Value. Some
jurisdictions impose a premium tax at the time the initial
Contribution and each additional Contribution are paid,
regardless of the Annuity Commencement Date. In those states
we will recover the tax in equal installments on each of the
six Processing Dates following receipt of each Contribution.
Unless you specify otherwise, the charges in (a), (b), (d) and (e) will be
deducted from the Investment Funds in which your Annuity Account Value is
allocated on a pro rata basis. The transfer charges in (c) will be deducted from
the Investment Options from which each transfer is made on a pro rata basis.
Also, if you surrender the Certificate or it is terminated during a Contract
Year before the next Processing Date, we will deduct any administrative charge
in (b) incurred but not deducted, and deduct any remaining unrecovered premium
tax charge in (e). Also, if a withdrawal exceeds the Free Corridor Amount, we
will recover a pro rata portion of the premium tax charge. If there is
insufficient value in the Investment Funds, all or a portion of the charges in
(a), (b) (c) (d) and (e) will be deducted from the Annuity Account Value in the
Guaranteed Period Account.
DAILY SEPARATE ACCOUNT CHARGES (SEE SECTION 8.04)
Current and Maximum Mortality Annual rate of 0.90% (equivalent to
and Expense Risk Charge: a daily rate of 0.002477%).
Current and Maximum Asset Based Annual rate of 0.10% (equivalent to
Administrative Charge: a daily rate of 0.000276%).
No. 94ICA/BIM Data Page 8
<PAGE>
DATA PAGES (CONT'D)
PART C -- THIS PART LISTS THE TERMS WHICH APPLY TO THE MARKET VALUE ADJUSTMENT
- ------ TERMS ENDORSEMENT.
ALLOCATION RESTRICTIONS: No more than 60% of any Contribution may be allocated
to the Guaranteed Period Account. You must provide specific instructions as to
how each Contribution will be allocated among the Guarantee Periods.
MARKET VALUE ADJUSTMENT ON TRANSFERS AND WITHDRAWALS (SEE ITEM 2 OF
ENDORSEMENT): The market value adjustment (positive or negative) applicable to a
withdrawal or transfer of a portion of the amount in a Guarantee Period will be
a percentage of the market value adjustment that would be applicable upon a
surrender. This percentage is determined by (i) dividing the amount of the
withdrawal or transfer from the Guarantee Period by (ii) the Annuity Account
Value in such Guarantee Period prior to the withdrawal or transfer.
Upon a withdrawal or transfer, the market value adjustment will be deducted from
or added to the Guaranteed Period Amount.
DEATH BENEFIT AMOUNT: The larger of (a) the Annuity Account Value in the
Guaranteed Period Account and (b) the sum of the Guaranteed Period Amounts in
each Guarantee Period.
DEATH BENEFIT (SEE ITEM 2 OF ENDORSEMENT): No market value adjustment will be
made to amounts applied from the Guaranteed Period Account to provide a death
benefit.
TRANSFER RULES (SEE SECTION 4.02): No transfers are permitted to or from the
Guaranteed Period Account during the first Contract Year and only one transfer
per Contract Year may be made thereafter.
MINIMUM TRANSFER AMOUNT: (SEE SECTION 4.02): The amount transferred to or from
the Guaranteed Period Account must be at Least $2,000 or, if less, the entire
Annuity Account Value may be transferred from the Guaranteed Period Account.
Similarly, the entire Annuity Account Value in the Investment Funds may be
transferred to the Guaranteed Period Account.
WITHDRAWALS (SEE SECTION 5.01): If you choose to have withdrawals allocated to
the Guaranteed Period Account, or a withdrawal is greater than the Annuity
Account Value in the Investment Funds, you must specify the Guarantee Period(s)
from which the withdrawal plus any withdrawal charge will be taken.
TRANSFERS AT EXPIRATION DATE (SEE ITEM 1 OF ENDORSEMENT): If no election is made
with respect to amounts in the Guaranteed Period Account as of the Expiration
Date, such amounts will be transferred into the Money Market Fund.
MVA FORMULA (SEE ITEM 3 OF ENDORSEMENT): The current rate percentage we use in
item (e) of the formula is 0.00%. We reserve the right to increase the rate
percentage to 0.25%.
No. 94ICA/BMVA Data Page 9
APPLICATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O.,
New York, New York 10116
FOR A VARIABLE ANNUITY CONTRACT: EQUITABLE'S NON-QUALIFIED EQUI-VEST CONTRACT
- --------------------------------------------------------------------------------
UNIT SECTION (complete only if Salary Allotment is used)
1. EMPLOYER / UNIT NAME
-------------------------------------------------------
2. |_| EXISTING UNIT NO. |_|_|_|_|_|_| - |_|_|_|
|_| NEW UNIT |_|_|_|_|_|_| - |_|_|_|
FORM 983-2357 REQUIRED
- --------------------------------------------------------------------------------
PARTICIPANT SECTION
3. PROPOSED PARTICIPANT - Print name to appear on Contract.
----------------------------------------------------------------------------
First Middle Initial Last
a. |_| Mr. |_| Mrs. |_| Miss |_| Ms. Other
---------
b. Date of Birth: Year Month Day
------- ------- --------
c. Age at Nearest Birthday:
-----------------------------
d. State of Residence:
----------------------------------
e. Participant's Mailing Address: 1. |_| Male |_| Female
No. St. |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
City |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |_|_| Zip Code |_|_|_|_|_| - |_|_|_|_|
g. Social Security Number (Required): |_|_|_| - |_|_| - |_|_|_|_|
h. Are you associated with or employed by a member of National
Association of Securities Dealers, Inc. (NASD)? |_| Yes |_| No
4. RETIREMENT AGE (maximum: 85)
------------------
5. BENEFICIARY--Include FULL NAME and RELATIONSHIP to Participant.
FOR DEATH BENEFIT UPON PARTICIPANT'S DEATH BEFORE RETIREMENT DATE, AND FOR
OWNERSHIP RIGHTS UPON DEATH OF OWNER.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
6. OWNER--ONLY IF OTHER THAN PARTICIPANT: |_| Individual |_| Executor
|_| Guardian |_| Custodian (SEE #14) |_| Trustee (For natural person)
The following owner types will incur annual tax liability
|_| Corporation |_| Partnership |_| Deferred Compensation
|_| Trustee (NOT for natural person)
Name |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
No. St. |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
City |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |_|_| Zip Code |_|_|_|_|_| - |_|_|_|_|
Relationship to Participant
---------------------------------
Owner SSN # |_|_|_| - |_|_| - |_|_|_|_|
(IF CUSTODIAN USE PARTICIPANT'S SSN #)
Are you associated with or employed by a member of National
Association of Securities Dealers, Inc. (NASD)? |_| Yes |_| No
ABOVE NAMED OWNER WILL RECEIVE ALL COMMUNICATIONS. SPECIFY ANY CO-OWNERS
IN SPECIAL INSTRUCTIONS (#13)
7. CONTRIBUTION ALLOCATION
Fixed Income Account ______%
Stock Account ______%
Money Market Account ______%
Balanced Account ______%
Aggressive Stock Account ______%
----------------------------
(PERCENTAGES IN WHOLE NUMBERS) Total 100%
8. Will any existing insurance or annuity be replaced or changed (or has it
been), assuming the contract applied for will be issued? |_| Yes |_| No
IF YES, answer the questions below:
a. Year Issued: Plan:
---------- ----------
Company:
----------------------------------------------------------------
b. Contribution Basis: (CHECK ONE ONLY):
|_| pre-August 14, 1982 |_| post-August 13, 1982
(SEPARATE APPLICATION REQUIRED FOR EACH BASIS.)
c. Net Cost: $
-------------------------------------------------------------
(NET COST ILLUSTRATION MUST BE SUBMITTED)
9. CONTRIBUTIONS (COMPLETE ONLY IF CONTRIBUTION BASIS POST-AUGUST 13, 1982 AND
FURTHER CONTRIBUTIONS ANTICIPATED)
a. Reminder Notice (Billing) Required |_| Yes |_| No
IF YES, complete B-C-D
b. Reminder Frequency:
|_| Annual |_| Semi-Annual |_| Quarterly
For Salary Allotment Only:
|_| Monthly |_| Semi-Monthly |_| Bi-Weekly
c. First Reminder Date (IF SALARY ALLOTMENT, MUST AGREE WITH EXISTING UNIT
OR ATTACHED 983-2357 FORM):
Mo. Day
------------- -------------
d. REMINDER AMOUNT $
-------------------------------------------------------
(CONTRIBUTIONS MUST BE AT LEAST $50.)
10. EXPECTED FIRST PARTICIPATION YEAR CONTRIBUTION $
----------------------------
(MUST BE AT LEAST $1,000 OR $600 IF SALARY ALLOTMENT)
FOR SALARY ALLOTMENT ONLY: IF AN ADVANCED PARTICIPATION DATE IS REQUESTED,
COMPLETE #9C AND #13.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(FOR PROCESSING OFFICE USE)
Unit Name Cert or App. #
--------------------------- ------------------------
Frequency Reminder Date
--------------------------- -------------------------
Amendment Required Participation Date
------------------ --------------------
----------------------------------------------------------------------------
Receipt Date | Batch # | Inquiry # | Processor
----------------------------------------------------------------------------
- --------------------------------------------------------------------------------
983-2356A-PA (8-87) Cat. #121442
<PAGE>
- --------------------------------------------------------------------------------
11. Did you receive the Separate Accounts Prospectus? |_| Yes |_| No
Date on Prospectus
----------------------------------------------------------
Date of any supplement to Prospectus
----------------------------------------
12. ITEMS (A) THROUGH (G) ARE TO BE ANSWERED COMPLETELY OR NOT AT ALL. If
Participant does not wish to provide information requested, check here |_|.
(Show amounts before this purchase.)
NOTE: In NJ and MD by law item (A) MUST be answered
(a) Sources of Retirement Income (other than Soc. Security)
----------------------------------------------------------------------
----------------------------------------------------------------------
(b) Debts: $
---------------------------------------------------------------
---------------------------------------------------------------
---------------------------------------------------------------
(c) (i) Savings (Checking and Savings accounts)
$
---------------------------------------------------------------
(ii) Securities: $
----------------------------------------------------
(iii) Value of home, less mortgage: $
----------------------------------
(iv) Other Assets (specify sources and amounts):
-----------------------------------------------------------------
-----------------------------------------------------------------
(d) Ages of dependents:
----------------------------------------------------
(e) Amount of Life Insurance: $
--------------------------------------------
(f) Cash available for investment or retirement:
(i) $ annually, or (ii) $ single sum
-------- --------
(g) Annual income including spouse's: $
------------------------------------
13. SPECIAL INSTRUCTIONS
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
14. CUSTODIAN DESIGNATION: (Fill in)
THE OWNER IS
------------------------------------ --------------------------
(name) (Relationship)
as custodian for
------------------------------------------------------------
(participant)
under the Uniform Gifts to Minors Act
----------------
(state)
15. Amount paid with this form: $
-----------------------------------------------
(must be at least $1,000 for other than Salary Allotment)
(If a check is submitted with this request, no advanced participation date
is permitted.) BACKDATING IS NOT PERMITTED.
- --------------------------------------------------------------------------------
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the contract is not issued; the Participation Date
of the contract will be the date of receipt by Equitable of all completed
requirements at Equitable's Processing Office. The Normal Form of annuity
benefit is a Life With 10 Years Certain Annuity. At retirement, you will be
given a choice of this form or any of several other available forms.
AGREEMENT
All information and statements furnished in this request are true and complete
to the best of my (our) knowledge and belief. I (We) understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations. Under
the penalties of perjury I (we) certify that the Social Security Number(s) or
Tax Identification Number(s) provided on this form is (are) true, correct, and
complete.
IT IS UNDERSTOOD THAT THE ACCOUNT VALUES ATTRIBUTABLE TO ALLOCATIONS TO THE
SEPARATE ACCOUNTS AND VARIABLE ANNUITY BENEFIT PAYMENTS MAY INCREASE OR DECREASE
AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
Signature of Proposed Participant X
---------------------------------------------
Date City State
------------------- ------------------------------ ------------------
Signature of Owner X
------------------------------------------------------------
(if other than the Proposed Participant)
- --------------------------------------------------------------------------------
AGENT SECTION
Will any existing insurance or annuity be replaced or changed (or has it been),
assuming the contract applied for will be issued? |_| Yes |_| No
I (we) certify that a prospectus for the contract applied for has been given to
the proposed Participant and that no written sales materials other than those
approved by The Equitable have been used.
Non-Qualifed Equi-Vest issues must adequately reflect the commission interest of
all Agents on previous certificates or contract.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Agents's Name(s) (Print) Initial of Agent Agent Agency District Agent's
(Service Agent first) Last Name Number % Code Manager Code Signature
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
FOR AGENCY COMPLIANCE FILE:
INITIALS OF AGENCY EQS Date District EQS Date
-------- -------- ------ -------------
- --------------------------------------------------------------------------------
(FOR ASU USE)
ASU Code and App. No.
-----------------------------------------------------------
ASU Rec'd.
----------------------------------------------------------------------
Date to Proc. Off.
--------------------------------------------------------------
Campaign
------------------------------------------------------------------------
Agent(s) shown above is Equity Qualified and is licensed in the state
where the request is signed.
Above Agent information verified by ASM (Registered Rep)
------------------------
- --------------------------------------------------------------------------------
983-2356A-PA (8-87) Cat. #121442
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O.,
New York, New York 10116
REQUEST FOR ENROLLMENT UNDER EQUITABLE'S NON-QUALIFIED EQUI-VEST CONTRACT
- --------------------------------------------------------------------------------
UNIT SECTION
(complete only if Salary Allotment is used)
1. EMPLOYER/UNIT NAME __________________________________________________________
2. |_| Existing Unit No.|_|_|_|_|_|_|-|_|_|_| |_| NEW UNIT |_|_|_|_|_|_|-|_|_|_|
Form 983-2357 Required
- --------------------------------------------------------------------------------
PARTICIPANT SECTION
3. PROPOSED PARTICIPANT
a. Print name to appear on Certificate.
______________________________________________________________
First Middle Initial Last
b. |_| Mr. |_| Mrs. |_| Miss |_| Ms. |_| Other ______
c. Date of Birth: Year ____________ Month __________ Day ________
d. Age at Nearest Birthday ______________________________________
e. State of Residence ___________________________________________
f. |_| Male |_| Female
g. Social Security Number |_|_|_|-|_|_|-|_|_|_|_|
h. Are you associated with or employed by a member of National
Association of Securities Dealers, Inc. (NASD)? |_| Yes |_| No
4. RETIREMENT AGE (maximum: 85) ________________
5. BENEFICIARY--Include FULL NAME and RELATIONSHIP to Participant.
(For Death Benefit upon Participant's death before Retirement
Date, and for Ownership Rights upon death of Owner)
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
6. OWNER--Specify:
Full Name and Address Relationship to Participant
_____________________________ ________________________________
_____________________________ Social Security or Tax I.D. No.
_____________________________ ________________________________
Above named Owner will receive all communications. Specify any
co-owners or secondary owners in Special Instructions (#12).
7. CONTRIBUTION ALLOCATION
(PERCENTAGES IN WHOLE NUMBERS)
Fixed Income Account _______%
Stock Account (Sep Acct A) _______%
Money Market Acct (Sep Acct E) _______%
Balanced Acct (Sep Acct J) _______%
Aggressive Stock Acct (Sep Acct K _______%
------------------
Total 100 %
8. Will any existing insurance or annuity be replaced or changed
(or has it been), assuming the certificate applied for will be
issued? |_| Yes |_| No
If yes, answer the questions below:
Contribution Basis |_| pre-August 14, 1982
(check one) |_| post-August 13, 1982
Note that a separate enrollment form must be submitted for
each basis.
_______________________________________________________________
Year Issued, Company, and Plan
_______________________________________________________________
Net Cost
(Net Cost Illustration msut be submitted.)
9. CONTRIBUTIONS (complete only if the Contribution Basis is
post-August 13, 1982 and further contributions are
anticipated)
a. Reminder Frequency
If no reminders are desired, check here: |_|
|_| Annual |_| Semi-Annual |_| Quarterly
For Salary Allotment Only:
|_| Monthly |_| Semi-Monthly |_| Bi-Weekly
b. First Reminder Date (if Salary Allotment, must agree with
existing unit or attached 983-2357
form): Mo.____________ Day____________
c. REMINDER AMOUNT $_____________
(contributions must be at least $50.)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(FOR
PROCESSING Unit Name ___________________ Cert. or App. # ____________________
OFFICE Frequency ___________________ Reminder Date ______________________
USE) Amendment Required __________ Participation Date _________________
--------------------------------------------------------------------------
Receipt Date Batch# Inquiry # Processor
--------------------------------------------------------------------------
- --------------------------------------------------------------------------------
983-2356 CAT.#115075
<PAGE>
d. EXPECTED FIRST PARTICIPATION YEAR
CONTRIBUTION $ __________________________________________
(must be at least $1,000, for Individual billing
or $600. for Salary Allotment)
For Salary Allotment only: If an advanced participation date
is requested, complete #9b and #12.
10. Did you receive the Separate Accounts Prospectus?
|_| Yes |_| No
Date on Prospectus __________________________________________
Date of any supplement to Prospectus ________________________
11. Items (a) through (g) are to be answered completely or not at all.
If Participant does not wish to provide information requested,
check here |_|. (Show amounts before this purchase.) Note: In NJ and MD
by law item (a) must be answered.
(a) Sources of Retirement Income (other than Soc. Security)
_______________________________________________________
_______________________________________________________
(b) Debts: $_______________________________________________
_______________________________________________
(c) (i) Savings (Checking and Savings accounts):
$________________________________________________
(ii) Securities: $____________________________________
(iii) Value of home, less mortgage: $__________________
(iv) Other Assets (specify sources and amounts):
_________________________________________________
_________________________________________________
(d) Ages of dependents:____________________________________
(e) Amount of Life Insurance: $____________________________
(f) Cash available for investment or retirement:
(i) $___________________________________ annually, or
(ii) $___________________________________ single sum
(g) Annual income including spouse's: $____________________
12. SPECIAL INSTRUCTIONS
___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________________________________
13. Amount paid with this form: $______________________________
(must be at least $1,000. for other than Salary Allotment)
(If a check is submitted with this request, no advanced
participation date is permitted.)
Backdating is not permitted.
- --------------------------------------------------------------------------------
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the certificate is not issued; the Participation
Date of the certificate will be the date of receipt by Equitable of all
completed requirements at Equitable's Processing Office. The Normal Form of
annuity benefit is a Life With 10 Years Certain Annuity. At retirement, you will
be given a choice of this form or any of several other available forms.
AGREEMENT
All information and statements furnished in this request are true and complete
to the best of my (our) knowledge and belief. I (We) understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations. Under
the penalties of perjury I (we) certify that the Social Security Number(s) or
Tax Identification Number(s) provided on this form is (are) true, correct, and
complete.
IT IS UNDERSTOOD THAT THE ACCOUNT VALUES ATTRIBUTABLE TO ALLOCATIONS TO THE
SEPARATE ACCOUNTS AND VARIABLE ANNUITY BENEFIT PAYMENTS MAY INCREASE OR DECREASE
AND NOT ARE GUARANTEED AS TO DOLLAR AMOUNT.
Signature of Proposed Participant Date: City State:
-----------------------------------------------
Signature of Owner (if other than the Proposed Participant)
---------------------
- --------------------------------------------------------------------------------
AGENT SECTION
Will any existing insurance or annuity be replaced or changed (or has it been),
assuming the certificate applied for will be issued? |_| Yes |_| No
I (We) certify that a prospectus for the certificate applied for has been given
to the proposed Particpant and that no written sales materials other than those
approved by The Equitable have been used.
Non-Qualified Equi-Vest issues must adequately reflect the commission interest
of all Agents on previous contracts or certificates.
___________________________________________________________________________
<TABLE>
<CAPTION>
Agent's Name(s) (Print Initial of Agent Agent Agency District Agent's
(Service Agent first) Last Name Number % Code Manager Code Signature
<S> <C> <C> <C> <C> <C> <C> <C>
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
</TABLE>
- --------------------------------------------------------------------------------
FOR AGENCY COMPLIANCE FILE: INITIALS OF AGENCY EQS__________ Date__________
District EQS_____________ Date_____________
- --------------------------------------------------------------------------------
(FOR ASU USE)
ASU Code and App. No.____________ ASU Rec'd._____________ Date to Proc. Off.____
__________________ Campaign |_|
Agent(s)shown above is Equity Qualified and is licensed in the state where the
request is signed.
Above Agent information verified by ASM (Registered Rep)__________________
- --------------------------------------------------------------------------------
983-2356 CAT.#115075
<PAGE>
APPLICATION TO THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
Processing Office: Individual Annuity Center, P.O. Box 2996, G.P.O.,
New York, New York 10116
REQUEST FOR ENROLLMENT UNDER EQUITABLE'S QUALIFIED EQUI-VEST CONTRACT
- --------------------------------------------------------------------------------
PLAN/UNIT SECTION
1. TYPE OF PURCHASE Complete One Plan Only
A. |_| TSA Public School (GV-PS 4931)
B. |_| TSA 501(c)(3) Organization (GV-501 4921)
C. |_| TSA University (GV-PS 4931-31)
D. |_| IRA Individual (GV-IRA 4971)
E. |_| IRA Unit Billed (GV-IRA 4971)
F. |_| IRA QUALIFIED PLAN ROLLOVER-Distribution from a Qualified Plan
(GV-IRA 4971-71)
G. |_| PEDC (Public Employee Deferred Compensation) )GV-PEDC 4991)
H. |_| IRC-457 (Tax Exempt Organization) (GV-PEDC 4991-SU-080)
I. |_| SEP (Simplified Employee Pension) (GV-SEP 4981)
J. |_| CORPORATE TRUSTEED (GV-Corp 4941-41)
Type of contributions |_| Required |_| Voluntary (After Tax)
K. |_| KEOGH/HR-10 TRUSTEE (GV HR-10 4911-11) (trustee owned) (9)
Type of contributions |_| Required |_| Voluntary (After Tax)
L. |_| KEOGH/HR-10 (GV - HR-10 4911) (not trustee owned) (9)
Type of contributions |_| Required |_| Voluntary (After Tax)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
DO NOT COMPLETE THIS SECTION IF BOX 1.D OR 1.F CHECKED ABOVE
2. EMPLOYER / PLAN NAME
-------------------------------------------------------
3. |_| EXISTING UNIT NO. |_|_|_|_|_|_| - |_|_|_|
|_| NEW UNIT |_|_|_|_|_|_| - |_|_|_|
(FOR NEW TRUSTEED OWNER PLAN OR TWO OR MORE LIVES FORM 983-135B REQUIRED)
================================================================================
PARTICIPANT SECTION
4. PROPOSED PARTICIPANT - Print name to appear on Certificate.
----------------------------------------------------------------------------
First Middle Initial Last
A. |_| Mr. |_| Mrs. |_| Miss |_| Ms. Other
---------
B. Date of Birth: Year Month Day
------- ------- --------
C. Age at Nearest Birthday
-----------------------------
D. |_| Male |_| Female
E. Participant's Mailing Address
No., St. |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
City |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |_|_| Zip Code |_|_|_|_|_| - |_|_|_|_|
F. State of Residence
---------------------------------------
G. Social Security No. (Required) |_|_|_| - |_|_| - |_|_|_|_|
H. Are you associated with or employed by a member of National
Association of Securities Dealers, Inc. (NASD)? |_| Yes |_| No
5. RETIREMENT AGE
------------------
6. BENEFICIARY--Include FULL NAME and RELATIONSHIP to Participant.
(BENEFICIARY MUST BE THE OWNER FOR PEDC/IRC-457 PURCHASES AND FOR MOST
TRUSTEED PLANS.)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
7. CONTRIBUTION ALLOCATION
(PERCENTAGES IN WHOLE NUMBERS)
Fixed Income Account ______%
Stock Account ______%
Money Market Account ______%
Balanced Account ______%
Aggressive Stock Account ______%
------------------
Total 100%
8. CONTRIBUTIONS (NOT REQUIRED FOR 1.F)
A. Reminder Notice (Billing) Required |_| Yes |_| No
IF YES, complete b-c-d-e
B. REMINDER DATE Required for Individual IRA or otherwise must agree with
existing unit or attached 983-135B
Month Day
------------- -------------
C. REMINDER FREQUENCY
|_| Annual |_| Semi-Annual
|_| Quarterly |_| Monthly
Available for TSA, PEDC/IRC-457 AND UNIT BILLED IRA ONLY:
|_| Semi-Monthly |_| Bi-Weekly
D. REMINDER AMOUNT $
-------------------------------------------------------
E. BILLING MONTHS TO BE EXCLUDED - TSA ONLY
------------------------------------------------------------------------
------------------------------------------------------------------------
9. EXPECTED FIRST PARTICIPATION YEAR CONTRIBUTION $
----------------------------
If an advanced billing and/ or participation date are requested, complete
#8b and #13.
================================================================================
(FOR PROCESSING OFFICE USE)
Unit Name Reminder Date
--------------------------- -------------------------
Cert or App. # Amendment Required
---------------------- ------------------
PEDC Emp. Add. Emp. Fed. ID#
---------------------- ------------------------
Frequency Participation Date
--------------------------- --------------------
----------------------------------------------------------------------------
Receipt Date | Batch # | Inquiry # | Processor
----------------------------------------------------------------------------
================================================================================
983-136D (1-87) Cat. #120764
<PAGE>
- --------------------------------------------------------------------------------
10. Did you receive the Separate Accounts Prospectus? |_| Yes |_| No
Date shown on Prospectus
----------------------------------------------------
Date of any supplement to Prospectus
----------------------------------------
11. ITEMS (A) THROUGH (G) ARE TO BE ANSWERED COMPLETELY OR NOT AT ALL. If
Annuitant does not wish to provide information requested, check here |_|.
(Show amounts before this purchase.) NOTE: In NJ and MD by law item (A) MUST
be answered.
(a) Sources of Retirement Income (other than Soc. Security)
------------------------------------------------------------------------
------------------------------------------------------------------------
(b) Debts: $
---------------------------------------------------------------
---------------------------------------------------------------
---------------------------------------------------------------
(c) (I) Savings (Checking and Savings accounts)
$
---------------------------------------------------------------
(II) Securities: $
----------------------------------------------------
(III) Value of home, less mortgage: $
----------------------------------
(IV) Other Assets (specify sources and amounts):
-----------------------------------------------------------------
-----------------------------------------------------------------
(d) Ages of dependents:
----------------------------------------------------
(e) Amount of Life Insurance: $
--------------------------------------------
(f) Cash available for investment or retirement:
(I) $ annually, or
----------------------------------------------------
(II) $ single sum
-------------------------------------------------------
(g) Annual income including spouse's: $
------------------------------------
12. Will any existing insurance or annuity be replaced or changed (or has it
been), assuming the certificate applied for will be issued? |_| Yes |_| No
13. SPECIAL INSTRUCTIONS
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
----------------------------------------------------------------------------
14. Amount paid with this form: $
-----------------------------------------------
(If a check is submitted with this request, no advanced participation date
is permitted.) BACKDATING IS NOT PERMITTED.
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the certificate is not issued; the Participation
Date of the certificate will be the date of receipt by Equitable of all
completed requirements at Equitable's Processing Office.
================================================================================
AGREEMENT
All information and statements furnished in this request are true and complete
to the best of my knowledge and belief. I understand and acknowledge that no
Agent has the authority to make or modify any contract on Equitable's behalf, or
to waive or alter any of Equitable's rights and regulations.
IT IS UNDERSTOOD THAT THE ACCOUNT VALUES ATTRIBUTABLE TO ALLOCATIONS TO THE
SEPARATE ACCOUNTS AND VARIABLE ANNUITY BENEFIT PAYMENTS MAY INCREASE OR DECREASE
AND ARE NOT GUARANTEED AS TO DOLLAR AMOUNT.
Signature of Participant X Date City State
------------------------ ------ ----- ------
Signature of Owner (REQUIRED FOR PEDC/IRC 457/HR-10 TRUSTEE/CORP. TRUSTEED)
X
-------------------------------------------------------------------------------
================================================================================
AGENT SECTION
Will any existing insurance or annuity be replaced or changed (or has it been),
assuming the certificate applied for will be issued? |_| Yes |_| No
I (we) certify that a prospectus for the certificate applied for has been given
to the proposed Annuitant and that no written sales materials other than those
approved by The Equitable have been used.
Equi-Vest issues must adequately reflect the commission interest of
all Agents on previous contracts or certificates.
- --------------------------------------------------------------------------------
Initial
(Print) of
Agents's Name(s) Last Agent Agent Agency District Agent's
(Service Agent first) Name Number % Code Manager Code Signature
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
================================================================================
FOR AGENCY COMPLIANCE FILE: INITIALS OF AGENCY EQS Date District EQS Date
--- --- -- --
================================================================================
(FOR ASU USE)
ASU Code and App. No.
-----------------------------------------------------------
ASU Rec'd.
----------------------------------------------------------------------
Date to Proc. Off. Campaign |_|
--------------------------------------------------
AGENT(S) SHOWN ABOVE IS EQUITY QUALIFIED AND IS LICENSED IN THE STATE
WHERE THE REQUEST IS SIGNED.
Above Agent information verified by ASM (Registered Rep)
- --------------------------------------------------------------------------------
Application reviewed by
--------------------------------------------------------
.===============================================================================
983-136D Cat. #120764
<PAGE>
- --------------------------------------------------------------------------------
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
APPLICATION FOR ESTABLISHMENT OF NEW QUALIFIED EQUI-VEST PLAN
- --------------------------------------------------------------------------------
1. TYPE OF QUALIFIED PLAN ESTABLISHED:
a) |_| TSA 403(b) (Public School) (3-30)
b) |_| TSA 501 (c) (3) Organization (2-20)
c) |_| TSA University (3-31)
d) |_| IRA Unit Billed (7-70)
e) |_| SEP (Simplified Employee Pension) (8-80)
f) |_| PEDC (Public Employee Deferred Compensation) (9-90)
g) |_| IRC-457 (Tax Exempt Organization) (9-90 SU 080)
h) |_| KEOGH/HR-10 TRUSTEE (1-11)
i) |_| KEOGH/HR-10 (1-10)
j) |_| CORPORATE TRUSTEED (4-41)
2. NAME OF PLAN:
|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
3. EFFECTIVE DATE OF PLAN:
Year___________ Month__________ Day___________
4. FISCAL YEAR END (FOR KEOGH, SEP, PEDC/IRC-457):
Month___________________ Day_______________
5. REMINDER NOTICE REQUIRED: |_| YES |_| NO
6. UNIT REMINDER DUE DATE:
Month___________________ Day_______________
7. REMINDER FREQUENCY:
|_| Annual (1) |_| Semi-Annual (2)
|_| Quarterly (3) |_| Monthly (4)
Available for TSA, PEDC/IRC-457 and Unit Billed IRA
only: |_| Semi-Monthly (5) |_| Bi-Weekly (7)
8. ORDER IN WHICH PARTICIPANTS TO APPEAR ON STATEMENT
REMINDER:
|_| Alphabetical (3) |_| Certificate Number (2)
9. EMPLOYER FEDERAL IDENTIFICATION NUMBER:
|_|_|-|_|_|_|_|_|_|_|
10. BILLING NAME:
|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
Plan Mailing and Billing Address: |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
No. & Street: |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
City or Town: |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State: |_|_|_|_|_|_|_|_|
Zip Code: |_|_|_|_|_|-|_|_|_|_|
11. TSA UNIVERSITY PLANS ONLY:
(A) Does the University Plan Document AUTHORIZE Participants to make
Loans: |_| Yes |_| No
(B) Maximum % of cash at maturity |_|_|_|%
(C) Surrenders, Withdrawals or Loans (if allowed) will be processed only
with employer approval at the time the request is made.
(D) Please describe any other plan restrictions on reverse of this form.
Acceptance of any other plan provisions or restrictions detailed on
the back is subject to Equitable approval.
12. PEDC/IRC-457, HR-10 TRUSTEE, AND CORPORATE TRUSTEED PLANS ONLY:
A) Should all correspondence (except Billing & Proxies) be sent to
participant? |_| Yes |_| No
B) Does Owner/Employer authorize Participants to make transfers
between accounts and change the allocation percentages for
future allocations? |_| Yes |_| No
13. ERISA INFORMATION STATEMENT SUBMITTED (Required if Box 1(C)(D)(E)(G)(H)
(I) or (J) checked): |_| Yes |_| No
14. IS EQUITABLE ADOPTION STATEMENT BEING SUBMITTED (Answer Required if Box
1(H)(I) or (J) checked): |_| Yes |_| No
- --------------------------------------------------------------------------------
UPON ESTABLISHMENT OF PLAN, THE EQUITABLE IS AUTHORIZED TO SOLICIT PROSPECTIVE
APPLICANTS FOR THE PLAN.
X_____________________________________________ Date at _____________ on __ 19 __
Signature and Title of Authorized Officer City State
or Purchaser
- --------------------------------------------------------------------------------
Key Agent (Please Print)
___________________________________________ ASU (Alpha) _______ (Numeric) ______
(First) (Middle Initial) (Last) (Code)
Agency__________________________________________________________________________
(Name) (Numeric Code)
Key Agent Signature ___________________________________________
- --------------------------------------------------------------------------------
(PROC. OFFICE USE ONLY) |_|_|_|_|_|_|_|_|_|_|_| Analyst Code |_|_|_|
- --------------------------------------------------------------------------------
983-135B (1-87) Cat. #120755
This Application Kit contains the necessary forms to successfully complete an
EQUI-VEST Deferred Variable Annuity Personal Retirement Program sale. Please
complete all required forms.
Please note: o No Application will be processed without an Agent's Report
o All checks must be made payable to: The Equitable
APPLICATION COMPLETION INSTRUCTIONS
Print neatly or type (except signatures). Do not abbreviate. Any corrections
must be initialed by the Owner. Unless otherwise indicated, complete in all
cases.
1. EQUI-VEST PROGRAM TYPE. Please elect only one program.
2. PROPOSED ANNUITANT -- Individual on whose life annuity benefits are
determined.
3. BENEFICIARY. The individual who will receive any death benefit payable
upon the death of the Annuitant.
For the NQ certificate where the Owner and the Annuitant are not the same,
the beneficiary will succeed as new Owner upon the death of the Owner
while the Annuitant is alive unless another person is named as Successor
Owner.
4. SUCCESSOR ANNUITANT AND OWNER. If the Annuitant and Owner are the same
person and designates their spouse to be the beneficiary, the
Annuitant/Owner can elect their spouse to become the Successor Annuitant
and Owner. If elected, no death benefit is payable upon the death of the
Annuitant/Owner. The surviving spouse of the Annuitant/Owner automatically
becomes the Successor Annuitant/Owner and the certificate remains in
force.
5. OWNER. Complete this section only for NQ certificates where the Owner and
Annuitant are different. For IRA and QP-IRA certificates, the Annuitant
and Owner must be the same individual. The Owner exercises all the rights
of the certificate.
6. SUCCESSOR OWNER. This is a feature which is only available for NQ
certificates and only if the Owner is other than the Annuitant. By
indicating a Successor Owner, the Owner is advising us that the
beneficiary will not succeed as Owner upon the death of the original
Owner.
7. RETIREMENT AGE. Indicate the age at which the Annuitant plans to retire.
Maximum Retirement Age is 85.
8. INVESTMENT FUND CHOICES. The Owner may elect the Maximum Choice option. If
the Owner elects Maximum Choice transfer restrictions out of the GIA will
apply even if no monies are invested in any of the Income Funds of the
Conservative Investors Fund.
9. CURRENT INVESTMENT ALLOCATION. Indicate how and in what percentage the
Owner wishes to have contributions allocated among the Investment Fund
Options. The Owner may not allocate contributions to a Fund within the
Income Funds or to the Conservative Investors Fund unless the Owner has
elected the Maximum Choice option. Also, the Owner need not allocate
contributions to every Fund with an Investment Fund elected.
10. REPLACEMENT/EXCHANGE QUESTIONS. Please answer these questions if the Owner
is establishing an EQUI-VEST certificate by replacing an existing annuity
or insurance contract.
11. PROSPECTUS REQUIREMENT. Please indicate the date of the Prospectus and any
Supplements delivered to the Owner.
12. NASD INFORMATION. These questions are required by the NASD for suitability
purposes.
13. SPECIAL INSTRUCTIONS. Please use this for any additional details regarding
beneficiary, replacement or transfer information.
14. CONTRIBUTIONS. Please indicate the amount remitted with the application
and whether or not the Owner plans on having monies automatically
contributed through the Automatic Investment Program.
If the Annuitant is establishing a QP-IRA, only Qualified Plan TSA or
conduit IRA rollover monies can be remitted to the certificate.
15. REMINDER NOTICE. Please complete if the Owner wishes to receive a
contribution Reminder Notice.
Application must be signed by both the Annuitant and Owner.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
SAMPLE FEATURE ELECTIONS
EXAMPLE A. IRA B. QP-IRA C. NQ D. NQ E. NQ
<S> <C> <C> <C> <C> <C>
ANNUITANT.................................. Husband Wife Husband Wife Husband
OWNER...................................... Husband Wife Wife Husband Husband
BENEFICIARY................................ Children Husband Son Son Wife
SUCCESSOR ANNUITANT AND OWNER.............. Not Applicable Husband Elected Not Applicable Not Applicable Not Elected
SUCCESSOR OWNER............................ Not Available Not Available Daughter Not Elected Not Available
</TABLE>
A. IRA--The Annuitant and Owner must be the same individual. Upon the
death of the husband (Annuitant and Owner),the children as
beneficiary will receive the death benefit proceeds.
B. QP-IRA--The Annuitant and Owner must be the same individual. Upon
the death of the wife (Annuitant and Owner), the husband as
beneficiary and Successor Annuitant and Owner becomes the Annuitant
and Owner. No death benefit will be paid at this time.
C. NQ--The Annuitant is the husband and the Owner is the Wife. The wife
(Owner) selects their son to be the beneficiary and their daughter
to be the Successor Owner. If the husband (Annuitant) dies prior to
the wife (Owner), the son (beneficiary) receives the death benefit.
If the wife (Owner) dies first, the daughter (Successor Owner) now
becomes the Owner of the certificate and can exercise all rights of
the certificate, such as change the beneficiary, make withdrawals,
etc.
D. NQ--The Annuitant is the wife and the Owner is the husband. The
husband, as Owner has designated the son to be the beneficiary.
The husband (Owner) dies. The son (beneficiary) will succeed as
Owner and receive the death benefit proceeds.
E. NQ--The Annuitant and Owner is the husband. The wife is the
beneficiary. The husband dies. The wife receives the death benefit
proceeds.
- --------------------------------------------------------------------------------
<PAGE>
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
P.O. Box 2996, New York, New York 10116-2996
APPLICATION FOR EQUI-VEST(R) DEFERRED VARIABLE ANNUITY PERSONAL
RETIREMENT PROGRAMS
- --------------------------------------------------------------------------------
1. EQUI-VEST PROGRAM TYPE (Check One)
a. |_| IRA (including IRA to IRA transfers)
b. |_| IRA QUALIFIED PLAN ROLLOVER (Distribution from a Qualified Plan)
c. |_| NQ (non-qualified)
- --------------------------------------------------------------------------------
2. PROPOSED ANNUITANT Print name to appear on Certificate.
a. |_| Mr. |_| Mrs. |_| Ms. |_| Other ________________
b. |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
First Middle Initial Last
c. Date of Birth: Year |_|_|_|_| Month |_|_| Day |_|_|
d. Age at Nearest Birthday: |_|_| E. |_| Male |_| Female
f. Annuitant's Mailing Address:
No., St.|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
City |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |_|_| Zip Code |_|_|_|_|_|-|_|_|_|_| G. State of Residence:|_|_|
h. Social Security No. (Required): |_|_|_|-|_|_|-|_|_|_|_|
i. Telephone Number |_|_|_|-|_|_|_|-|_|_|_|_| |_| Home |_| Work
3. BENEFICIARY of Annuitant (upon death of last Annuitant)
a. Full Name |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
b. Relationship __________________________________________________
4. SUCCESSOR ANNUITANT AND OWNER Available only if Annuitant/Owner elects
spouse to be beneficiary and to succeed as Annuitant/Owner upon death.
|_| No, I do not elect the Successor Annuitant and Owner Option.
|_| Yes, I elect the Successor Annuitant and Owner Option.
If yes, complete a and b.
a. Spouse's SSN# |_|_|_|-|_|_|-|_|_|_|_|
b. Spouse's Date of Birth: Yr. |_|_|_|_| Month |_|_| Day |_|_|
5. OWNER Complete for NQ only if Annuitant will not also be Owner. (IF IRA,
OWNER AND ANNUITANT MUST BE THE SAME.)
a. |_| Individual |_| Guardian |_| Custodian (SEE BELOW)*
|_| Trustee (For natural person)
b. Name |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
c. No., St.|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
City |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State|_|_| Zip Code |_|_|_|_|_|-|_|_|_|_|
d. Tax ID or Owner SSN # |_|_|_|-|_|_|-|_|_|_|_| (If Custodian Use
Minor's SSN#)
e. Date of Birth: Yr. |_|_|_|_| Month |_|_| Day |_|_|
f. Relationship to Annuitant _____________________________________________
|_| Uniform Gifts to Minors Act
g. *As custodian under the _____________ |_| Uniform Transfer to Minors Act
(State)
6. SUCCESSOR OWNER Complete for NQ only if Owner is not the Annuitant and
you do not want the beneficiary to succeed as Owner at Owner's death.
a. Name |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
b. No., St.|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
City |_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|_|
State |_|_| Zip Code |_|_|_|_|_|-|_|_|_|_|
c. SSN # |_|_|_|-|_|_|-|_|_|_|_| Date of Birth: Yr. |_|_|_|_|
Month |_|_| Day |_|_|
7. RETIREMENT AGE Maximum 85: _____________________
8. INVESTMENT FUND CHOICES
You can customize your program for current and future use by choosing one
of the following categories:
a. |_| Maximum Transfer Flexibility. Only those Investment Funds that
will NOT result in GIA transfer restrictions. (Funds in #9
with no asterisk).
b. |_| Maximum Choice. All available Investment Funds. (GIA transfer
restrictions will apply).
Requests to elect "Maximum Choice" after issue are subject to our rules
than in effect.
9. CURRENT INVESTMENT ALLOCATION
You can allocate your contribution below by entering percentages in whole
numbers totaling 100%. You can only allocate percentages into funds marked
with an asterisk (*) if you checked "b" in #8 above.
GUARANTEED
Guaranteed Interest Account (GIA) ________________ %
EQUITY
Balanced ________________ %
Growth & Income ________________ %
Stock ________________ %
Global ________________ %
Aggressive Stock ________________ %
INCOME
Money Market* ________________ %
Quality Bond* ________________ %
High Yield* ________________ %
ASSET ALLOCATION
Conservative Investors*________________ %
Growth Investors ________________ %
TOTAL 100
10. REPLACEMENT/EXCHANGE QUESTIONS --
Will any existing insurance or annuity be replaced or changed (or has it
been), assuming the contract applied for will be issued? |_| Yes |_| No.
If yes, answer the questions below:
A. Year Issued:_________ Plan: ___________
Company: ______________________________
Contract Number: ______________________
B. Contribution Basis: -- NQ only
|_| pre-August 14, 1982 |_| post-August 13, 1982
C. Net Cost: $_______________________________________
(Net Cost Illustration must be submitted)
- --------------------------------------------------------------------------------
180-2000 (9/93)
<PAGE>
- --------------------------------------------------------------------------------
11. PROSPECTUS REQUIREMENT
Did you receive the Prospectus for the EQUI-VEST Deferred Variable Annuity
Personal Retirement Programs? |_| Yes |_| No
Date of Prospectus ________________________________________________________
Date of any supplement to Prospectus ______________________________________
12. NASD INFORMATION
Items (a) through (f) are to be answered by the Annuitant. We are required
by the NASD to ask these questions.
(A) Name of Employer: ____________________________________________________
(B) Address of Employer:
----------------------------------------------------------------------
----------------------------------------------------------------------
(C) Occupation ___________________________________________________________
(D) Estimated Family Annual Income _______________________________________
(E) Estimated Net Worth __________________________________________________
(f) Investment Objective: |_| Income |_| Income & Growth |_| Growth
|_| Aggressive Growth |_| Safety of Principal
(G) Is Owner or Annuitant associated with or employed by a member of
National Association of Securities Dealers, Inc.(NASD)? |_| Yes |_| No
- --------------------------------------------------------------------------------
13. SPECIAL INSTRUCTIONS
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
---------------------------------------------------------------------------
- --------------------------------------------------------------------------------
14. CONTRIBUTIONS (QP-IRA is for Qualified Plan Rollovers only)
A. Amount paid with this Application: $_______________________
B. Automatic Investment Program |_| Yes (Complete Form 180-1005) |_| No
15. CONTRIBUTION REMINDER NOTICE
A. Reminder Notice (Billing) Requested |_| Yes |_| NO
B. Reminder Date: Month _________ Day _____________
C. Reminder Frequency: |_| Annual |_| Semi-Annual
|_| Quarterly |_| Monthly
D. Reminder Amount $_______________________________________________________
NOTE: Amount paid will be credited upon receipt at Equitable's Processing
Office, subject to return if the certificate is not issued; the Contract Date
will be the date of receipt by Equitable of all completed requirements at
Equitable's Processing Office.
- --------------------------------------------------------------------------------
AGREEMENT
All information and statements furnished in this application are true and
complete to the best of my knowledge and belief. I understand and acknowledge
that no Agent has the authority to make or modify any contract on Equitable's
behalf, or to waive or alter any of Equitable's rights and regulations.
It is understood that the Annuity Account Value attributable to allocations to
the investment funds of the Separate Account and Variable Annuity Benefit
payments may increase or decrease and are not guaranteed as to dollar amount.
- --------------------------------------------------------------------------------
LAWS IN YOUR STATE MAY MAKE IT A CRIME TO FILL OUT AN INSURANCE OR ANNUITY
APPLICATION WITH INFORMATION YOU KNOW IS FALSE OR TO LEAVE OUT MATERIAL
FACTS.
- --------------------------------------------------------------------------------
X__________________________________ Date_______ City __________ State __________
Signature of Proposed Annuitant
X__________________________________ Date_______ City __________ State _________
Signature of Owner (for NQ only, if owner other than Proposed Annuitant)
- --------------------------------------------------------------------------------
180-2000 (9/93)
HERBERT P. SHYER [EQUITABLE LOGO - 1987 VERSION]
EXECUTIVE VICE PRESIDENT
AND GENERAL COUNSEL
December 15, 1987
The Equitable Life Assurance
Society of the United States
787 Seventh Avenue
New York, New York 10019
Dear Sirs:
This opinion is furnished in connection with the filing by The Equitable
Life Assurance Society of the United States ("Equitable") and Separate Account A
of Equitable ("Separate Account A") under the Securities Act of 1933 and the
Investment Company Act of 1940 ("1940 Act") of amendments on Form N-4 to
Registration Statement Nos. 2-50547 and 811-1705 ("Registration Statement"),
previously filed on Form N-3. Prior to this filing, the Registration Statement's
registrant has been Separate Account E of Equitable rather than Separate Account
A, and its 1940 Act file number has been 811-2469. The change in registrant and
1940 Act file number, and the use of Form N-4, anticipate the restructuring of
Separate Accounts A, E, C, D, J, and K of Equitable ("Separate Accounts") as a
unit investment trust, in which Separate Account A will be the continuing
account. The restructuring will occur pursuant to an Agreement and Plan of
Reorganization, to be entered into on or about December 18, 1987 ("Agreement"),
by and among Equitable, each of the Separate Accounts, and The Equitable Trust.
The Registration Statement covers an indefinite number of units of
interest ("Units") in Separate Account A, including Units which will be issued
subsequent to the restructuring of the Separate Accounts. The Units are
purchased with contributions received under individual variable annuity
contracts ("Contracts"). As described in the prospectus included in the
Registration Statement ("Prospectus"), the Contracts are designed to provide
fixed and variable retirement benefits.
I have examined all such corporate records of Equitable and such other
documents and laws as I consider appropriate as a basis for the opinion
hereinafter expressed. On the basis of such examination, it is my opinion that:
1. Equitable is a corporation duly organized and validly existing under
the laws of the State of New York.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
787 Seventh Avenue, New York, NY 10019
<PAGE>
- 2 -
2. Separate Account A was duly created pursuant to the provisions of the
New York Insurance Law.
3. The assets of Separate Account A are owned by Equitable; Equitable is
not a trustee with respect thereto. Under New York law, the income, gains and
losses, whether or not realized, from assets allocated to Separate Account A
must be credited to or charged against such account, without regard to the other
income, gains or losses of Equitable. Although contractual obligations with
respect to funds of Separate Account A constitute corporate obligations of
Equitable, the specific amounts payable from accumulations in Separate Account A
in accordance with the Contracts will bepend upon the investment experience of
Separate Account A.
4. The Contracts provide that the portion of the assets of Separate
Account A equal to the reserves and other contract liabilities with respect to
Separate Account A shall not be chargeable with liabilities arising out of any
other business Equitable may conduct and that Equitable reserves the right to
transfer assets of Separate Account A in excess of such reserves and contract
liabilities to the general account of Equitable.
5. The Contracts, as proposed to be amended to reflect changes
contemplated by the Agreement (including any Units duly credited under the
Contracts), will have been duly authorized, and each of the Contracts, as thus
amended (including any such Units), will constitute a validly issued and binding
obligation of Equitable in accordance with its terms. Purchasers of the
Contracts described in the Prospectus will be subject only to the deductions,
charges and fees set forth in the Prospectus.
I hereby consent to the use of this opinion as an exhibit to the
Registration Statement.
Very truly yours,
/s/ Herbert P. Shyer
-----------------------
Herbert P. Shyer
N-4/Ex.9
3600i
JONATHAN E. GAINES
Vice President
and Associate General Counsel
[EQUITABLE LOGO] (212) 554-3169
Fax (212) 554-1266
LAW DEPARTMENT
July 16, 1992
The Equitable Life Assurance
Society of the United States
787 Seventh Avenue
New York, New York 10019
Dear Sirs:
This opinion is furnished in connection with the filing by The Equitable
Life Assurance Society of the United States ("Equitable") and Separate Account
A of Equitable ("Separate Account A") under the Securities Act of 1933 and the
Investment Company Act of 1940 of amendments on Form N-4 to Registration
Statement Nos. 2-30070 and 811-1705 ("Registration Statement"). The Registration
Statement covers an indefinite number of units of interest ("Units") in Separate
Account A.
The Units to which this opinion relates are purchased with contributions
received under individual variable annuity contracts, the form numbers of which
are listed in Appendix A attached hereto (collectively, "Contracts"). As
described in the prospectus included in the Registration Statement, the
Contracts are designed to provide fixed and variable retirement benefits.
I have examined all such corporate records of Equitable and such other
documents and laws as I consider appropriate as a basis for the opinion
hereinafter expressed. On the basis of such examination, it is my opinion that:
1. Equitable is a corporation duly organized and validly existing under
the laws of the State of New York.
2. Separate Account A was duly created pursuant to the provisions of the
New York Insurance Law.
THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE UNITED STATES
787 SEVENTH AVENUE, NEW YORK, NEW YORK 10019
<PAGE>
- 2 -
3. The assets of Separate Account A are owned by Equitable; Equitable is
not a trustee with respect thereto. Under New York law, the income, gains and
losses, whether or not realized, from assets allocated to Separate Account A
must be credited to or charged against such account, without regard to the
other income, gains or losses of Equitable.
4. The Contracts provide that the portion of the assets of Separate
Account A equal to the reserves and other contract liabilities with respect to
Separate Account A shall not be chargeable with liabilities arising out of any
other business Equitable may conduct and that Equitable reserves the right to
transfer assets of Separate Account A in excess of such reserves and contract
liabilities to the general account of Equitable.
5. The Contracts and the Units thereunder have been duly authorized, and
each of the Contracts (including the Units duly credited thereunder), when duly
issued, will constitute a validly issued and binding obligation of Equitable in
accordance with its terms.
I hereby consent to the use of this opinion as an exhibit to the
Registration Statement.
Very truly yours,
/s/ Jonathan E. Gaines
-------------------------
Jonathan E. Gaines
LMR:bw:9791j
November 3, 1993
The Equitable Life Assurance Society Jonathan E. Gaines
of the United States Vice President
787 Seventh Avenue and Associate General Counsel
New York, New York 10019 (212) 554-3169
(212) 554-1266
Dear Sirs:
This opinion is furnished in connection with the filing by The
Equitable Life Assurance Society of the United States ("Equitable") and Separate
Account A of Equitable ("Separate Account A") of a Form N-4 Registration
Statement of Equitable and Separate Account A under the Securities Act of 1993
(File No. 33-63890) and Amendment No. 39 of the Registration Statement of
Separate Account A under the Investment Company Act of 1940 included with the
same Form N-4. The Registration Statement covers an indefinite number of units
of interest ("Units") in Separate Account A.
The Units are purchased with contributions received under certificates
(the "Certificates") Equitable offers under a group variable annuity contract.
As described in the prospectus included in the Registration Statement
("Prospectus"), the Certificates are designed to provide fixed retirement
benefits.
I have examined all such corporate records of Equitable and such other
documents and laws as I consider appropriate as a basis for the opinion
hereinafter expressed. On the basis of such examination, it is my opinion that:
1. Equitable is a corporation duly organized and validly
existing under the laws of the State of New York;
2. Separate Account A was duly established pursuant to
the provisions of the New York Insurance Law;
3. The assets of Separate Account A are owned by
Equitable; Equitable is not a trustee with respect
thereto. Under New York law, the income, gains and
losses, whether or not realized, from assets allocated
to Separate Account A must be credited to or charged
against such account, without regard to the other
income, gains or losses of Equitable;
<PAGE>
4. The Certificates provide that the portion of the
assets of Separate Account A equal to the reserves and
other contract liabilities with respect to Separate
Account A shall not be chargeable with liabilities
arising out of any other business Equitable may
conduct and that Equitable reserves the right to
transfer assets of Separate Account A in excess of
such reserves and contract liabilities to the general
account of Equitable; and
5. The Certificates (including any Units credited
thereunder) have been duly authorized and constitute a
validly issued and binding obligation of Equitable in
accordance with their terms.
I hereby consent to the use of this opinion as an exhibit to the
Registration Statement.
Very truly yours
/s/ Jonathan E. Gaines
----------------------
Jonathan E. Gaines
2287
2
NOTICE CONCERNING REGULATORY RELIEF
-----------------------------------
The following regulatory relief has been granted by the Commission and
its staff to The Equitable Life Assurance Society of the United States (the
"Company") and Separate Account A of the Company, (the "Separate Account")
among other applicants, named in an Application dated December 18, 1986, File
No. 812-6572, as amended and restated on June 15, 1987 (the "Application"):
Commission Exemptive Order
Release No. IC-15908 (August 5, 1987)
SEC Docket, Vol. 38, No. 18 at 1328
(August 18, 1987)
The Application, among other things, sought relief from Sections 26(a)
(2) (C) and 27(c) (2) for the deduction of certain mortality and expense risk
charges from the Separate Account in connection with group variable annuity
contracts referred to in the Application as "EQUI-VEST Contracts". The
deductions and charges under the group variable annuity contracts filed as
Exhibit 4(d) to this Registration Statement are identical in all material
respects to the EQUI-VEST Contracts referred to in the Application.
Under these circumstances, the Company and the Separate Account intend
to rely on the relief granted pursuant to the aforesaid Commission Exemptive
Order to the extent applicable, in connection with this Registration Statement.
5395i
EQUI-VEST
The following is an example of the calculation of the Money Market Division's
yield for the seven-day period ended December 31, 1993. Yields may fluctuate
substantially from the example shown.
1. The value of one Unit in a hypothetical
account (excluding capital changes) at the
beginning of the seven-day period
(December 24, 1993) $ 25.412950
2. The value of one Unit in the same hypothetical
account (excluding capital changes) at the
end of the seven-day period
(December 31, 1993) 25.420946
3. Net change in Unit Value [(1) subtracted
from (2)] .007996
4. Adjustment to the net change in the Unit Value
to reflect the average annual administrative
expense charge .0001977
5. Adjusted net change in the Unit Value [(4)
subtracted from (3)] .007798
6. Base period return [(5) divided by (1)] .000307
7. Current yield [(6) annualized (multiplied by
365/7)] 1.60%
8. Effective Yield 1.62%
FORMULAE FOR DETERMINING "30-DAY YIELDS" FOR EQUI-VEST SERIES CONTRACTS
AS OF DECEMBER 31, 1994
Invested in One Investment Fund (Intermediate Government Securities Quality
Bond, or High Yield) of the Hudson River Trust
<TABLE>
<S> <C>
MOR[superscript: HRT][subscript: 12-31-94] = [(YTD[supercript: HRT][subscript: 12-31-94]) / (YTD[superscript:
HRT][subscript: 11-30-94])] - 1
MOR[superscript: SA][subscript: 12-31-94] = [(UV [superscript: SA][subscript: 12-31-94]) / (UV[superscript:
SA][subscript 11-30-94])] - 1
SAC[superscript: SA][subscript: 12-31-94] = 1 - [(1 + MOR[superscript: SA[subscript: 12-31-94) / (1 + MOR[superscript:
HRT][subscript: 12-31-94])][superscript: 365/(number of Days in Month Ending 12-31-94)
YIELD[superscript: SA[subscript: 12-31-94]= (YIELD[superscript: HRT][subscript: 12-31-94]) - (SAC[superscript:
SA][subscript: 12-31-94]) - (AC[superscript: SA][subscript: 12-31-94])
YIELD[superscript: MIN][subscript: 12-31-94]= MIN {(YIELD[superscript: SAEQV][subscript: 12-31-94), (YIELD[superscript:
SAPRP][subscript: 12-31-94]) }
</TABLE>
where UV[subscript: t] is the separate account unit value at time t.
YTDR[subscript: t] is the year-to-date return as of time t.
MOR[subscript: t] is the unannualized return for the month ending at
time t.
YIELD[subscript: t] is the annual yield rate based on month ending at
time t.
SAC[subscript: t] is the annual rate of separate account daily
asset-based charge for month ending at time t.
AC[subscript: t] is the average annual administrative charge as of
time t.
HRT denotes Hudson River Trust.
SA denotes either separate account, SAEQV or SAPRP, as
defined below.
SAEQV denotes the SA specific TO "EQUI-VEST" (Series 100
& 200) contracts
SAPRP denotes the SA specific to "EQUI-VEST PRP" (Series
300 & 400) contracts.
MIN denotes the lower, or worse, of the SAEQV and SAPRP
rates.
<PAGE>
<TABLE>
<CAPTION>
Intermediate Intermediate
Government Quality High Government Quality High
Securities Bond Yield Securities Bond Yield
------------ ------- ----- ---------- ---- -----
Year to date returns (unannualized): Income Yields unannualized:
---------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 10/31/94 1 -4.47% -4.83% -1.53%
2 11/30/94 2 -4.72% -4.98% -3.59% 5.400% 6.718% 9.442%
3 12/31/94 3 -4.37% -5.10% -2.79% 6.345% 6.365% 10.534%
4 1/31/95 4 1.56% 1.49% 0.98% 0.000% 0.000% 0.000%
5 2/28/95 5 3.29% 3.44% 3.96% 0.000% 0.000% 0.000%
6 3/31/95 6
7 4/30/95 7 1 1 1 1 1 1
</TABLE>
- -----------------------------
SA YIELD CALCULATIONS: 12/31/94
- -----------------------------
-------------------------------------------------------------
HUDSON RIVER TRUST EQUI-VEST EQUI-VEST PRP
-------------------------------------------------------------
<TABLE>
<CAPTION>
Intermediate Intermediate Intermediate
Government Quality High Government Quality High Government Quality High
Securities Bond Yield Securities Bond Yield Securities Bond Yield
---------- ---- ----- ---------- ---- ----- ---------- ---- -----
Year-to-date returns (unannualized):
11/30/94 -4.72% -4.98% -3.59%
12/31/94 -4.37% -5.10% -2.79%
Accumulation unit values:
<S> <C> <C> <C> <C> <C> <C>
11/30/94 97.948050 94.084989 95.194461 97.946050 94.084989 95.194461
12/31/94 98.193986 93.866039 95.882880 98.193986 93.866039 95.882880
<CAPTION>
Monthly returns (unannualized):
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/94 0.37% -0.13% 0.83% 0.25% -0.23% 0.72% 0.25% -0.23% 0.72%
Separate Account daily asset charge
(unannualized): 0.0134 0.0134 0.0134 0.0134 0.0134 0.0134
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
11/30/94
12/31/94 1.332% 1.247% 1.238% 1.332% 1.247% 1.238%
Average annual SA administrative 0.00113 0.00113 0.00113 0.00113 0.00113 0.00113
charges (in %):
12/31/94 0.113% 0.113% 0.113% 0.113% 0.113% 0.113%
<CAPTION>
Yields (annualized):
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/94 6.345% 6.365% 10.534% 4.900% 5.005% 9.183% 4.900% 5.005% 9.183%
<CAPTION>
"Worpe" Yields (EQUI-VEST vs. EQUI-VEST PRP):
<S> <C> <C> <C>
12/31/94 4.900% 5.005% 9.183%
</TABLE>
Table 2
SA Yields as of December 31, 1994
Intermediate
Government Quality High
Securities Bond Yield
------------ ------- -----
EQUI-VEST series 4.900% 5.005% 9.183%
FORMULAE FOR DETERMINING CUMULATIVE AND ANNUALIZED RATES OF RETURN
FOR EQUI-VEST THROUGH DECEMBER 31, 1993
CRR = (UV[subscript: 12-31-93]/UV[subscript: (12-31-93)-B) - 1
ARR = [(UV[subscript: 12-31-93]/UV[subscript: (12-31-93)-B]
[superscript: 1/B - 1] x 100
where: B is the total time of the investment, in years or fraction thereof.
UV[subscript: 12-31-93 is the separate account unit value at
12-31-93.
UV[subscript: (12-31-93)-B is the separate account unit value at
time B year prior to 12-31-93.
CRR is the cumulative rate of return over the
period of B years.
ARR is the annualized rate of return over the
period of B years.
<PAGE>
<TABLE>
<CAPTION>
CUMULATIVE AND ANNUALIZED RATES OF RETURN FOR EQUI-VEST AND MOMENTUM
ACCUMULATION UNIT VALUES [subscript: UV(12-31-83)-B]
Division 12/31/93 12/31/92 12/31/90 12/31/88 12/31/83 12/31/73
- -------- -------- -------- -------- -------- -------- --------
B = 1 B = 3 B = 5 B = 10 B = 20 Since Inception*
----- ----- ----- ------ ------ ----------------
<S> <C> <C> <C> <C> <C> <C> <C>
Stock 128.807492 104.627091 75.665624 67.220229 35.203215 13.930000 10.030000
Money Market 25.412953 25.014473 23.381166 20.319365 14.813059 12.879414
Balanced 28.853651 26.038399 19.401129 15.801712 10.000000
Aggressive 55.683075 48.301505 27.355194 18.092816 10.000000
Quality Bond 98.779000 99.616600
High Yield 100.037700 82.338600 60.515300 59.788900 53.471900
Growth & Income 100.782900 101.380100 101.380100
Global 100.353500 76.983600 60.890200 52.544800 55.637600
Conservative Inv. 100.548800 92.010700 74.555300 69.119900
Growth Investors 100.827100 88.663900 58.293400 51.533100
Intermediate Govt 100.470400 92.091600 79.676917
</TABLE>
CUMULATIVE RATES OF RETURN (CRR)
<TABLE>
<CAPTION>
Division B = 1 B = 3 B = 5 B = 10 B = 20 Since Inception*
- -------- ----- ----- ----- ------ ------ ----------------
<S> <C> <C> <C> <C> <C> <C>
Stock 23.11% 70.23% 91.62% 265.90% 824.68% 1184.22%
Money Market 1.59% 8.69% 25.07% 71.56% 97.31%
Balanced 10.81% 48.72% 82.60% 188.54%
Aggressive 15.28% 103.56% 207.76% 456.83%
Quality Bond -0.84%
High Yield 21.50% 65.31% 67.32% 87.08%
Growth & Income -0.59%
Global 30.36% 64.81% 90.99% 80.37%
Conservative Inv. 9.28% 34.86% 45.47%
Growth Investors 13.72% 72.96% 95.66%
Intermediate Govt 9.10% 26.10%
</TABLE>
ANNUALIZED RATES OF RETURN (ARR)
<TABLE>
<CAPTION>
Division B = 1 B = 3 B = 5 B = 10 B = 20 Since Inception*
- -------- ----- ----- ----- ------ ------ ----------------
<S> <C> <C> <C> <C> <C> <C>
Stock 23.11% 19.40% 13.89% 13.85% 11.76% 10.57%
Money Market 1.59% 2.82% 4.58% 5.55% 6.01%
Balanced 10.81% 14.15% 12.80% 11.58%
Aggressive 15.28% 26.73% 25.21% 19.44%
Quality Bond -0.84%**
High Yield 21.50% 18.24% 10.84% 9.37%
Growth & Income -0.59%**
Global 30.36% 18.12% 13.82% 9.74%
Conservative Inv. 9.28% 10.48% 9.23%
Growth Investors 13.72% 20.04% 17.12%
Intermediate Govt 9.10% 8.79%
</TABLE>
- ----------------
*Number of years since inception, or fraction thereof, where inception dates
are:
Stock 08/01/68 Quality Bond 10/01/93 Conservative Inv. 10/02/89
Money Market 05/11/82 High Yield 01/02/87 Growth Investors 10/02/89
Balanced 05/01/84 Growth & Income 10/01/93 Intermediate Govt 04/01/91
Aggressive 05/01/84 Global 08/27/87
- ----------------
**Unannualized.
<PAGE>
FORMULAE FOR DETERMINING CUMULATIVE AND ANNUALIZED RATES OF RETURN
FOR EQUI-VEST CERTIFICATES
Invested in One Investment Fund of the Hudson River Trust and
Terminated on December 31, 1993
AV[subscript: 0] = $1,000.00
AC[subscript: t] = min[$30.00,2% x AV[subscript: t]
AV[subscript: t] = (AV[subscript: t-1] - AC[subscript: t-1]) x
(UV[subscript: t]/UV[subscript: t-1])
Acct = AVsubscript: 12-31-93 - ACsubscript: 12-31-93
CV = Acct - SC
AAR = [(CV/AV[subscript: 0])[superscript:1/B] - 1] x 100
where: AV[subscript: 0] is the amount invested on the inception date.
t is the anniversary date of the EQUI-VEST certificate,
which is from 1 to B years after the date of inception
(t=0).
B is the total time of the investment, in years or
fraction thereof, from the date of inception
AC[subscript: t] is the administration charge at time t.
AV[subscript: t] is the accumulated value at time t of AV[subscript: 0]
UV[subscript: t] is the separate account unit value at time t.
Acct is the account value of the EQUI-VEST certificate
on the termination date.
CV is the cash value of the EQUI-VEST certificate on the
termination date.
SC is the applicable surrender charge for the EQUI-VEST
certificate on the termination date.
AAR is the average annual return over the period of B
years.
<PAGE>
Standardized Performance for the Period Ending December 31, 1993
Investment Fund: Stock
<TABLE>
<CAPTION>
B = One Year B = Three Years B = Five Years B = Ten Years
------------------------ ------------------------- --------------------------- -------------------------
Accum. Admin. Accum. Admin. Accum. Admin. Accum. Admin.
Date Unit Value t Value Charge t Value Charge t Value Charge t Value Charge
- ---------- ------------- ----- ----------- ------ ----- ----------- ------- ---- ------------ --------- ----- ----------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/83 35.203215 0 1,000.00
12/31/84 34.028544 1 966.63 19.33
12/31/85 45.113988 2 1,255.90 25.12
12/31/86 52.103759 3 1,421.47 28.43
12/31/87 55.302407 4 1,478.56 29.57
12/31/88 67.220229 0 1,000.00 5 1,761.25 30.00
12/31/89 83.400518 1 1,240.71 24.81 6 2,147.98 30.00
12/31/90 75.665624 0 1,000.00 2 1,103.12 22.06 7 1,921.55 30.00
12/31/91 102.761532 1 1,358.10 27.16 3 1,468.19 29.36 8 2,568.91 30.00
12/31/92 104.627091 0 1,000.00 2 1,355.10 27.10 4 1,464.95 29.30 9 2,585.00 30.00
12/31/93 128.807492 1 1,231.11 24.62 3 16,34.91 30.00 5 1,767.44 30.00 10 3,145.49 30.00
Account Value (Acct): 1,206.49 1,604.91 1,737.44 3,115.49
TSA, IRA*, SEP, EDC Plan and Participant-Owned HR-10 Plan Certificates:
Surrender Charge (SC): 72.39 80.00 80.00 80.00
Cash Value (CV): 1,134.10 1,524.91 1,657.44 3,035.49
Average Annual Return (AAR): 13.41% 15.10% 10.63% 11.74%
Trusteed and NQ Contracts:
Surrender Charge (SC): 60.00 60.00 60.00 0.00
Cash Value (CV): 1,146.49 1,544.91 1,677.44 3,115.49
Average Annual Return (AAR): 14.65% 15.60% 10.90% 12.03%
QP IRA Contracts (Individual):
Surrender Charge (SC): 65.15 80.00 80.00 80.00
Cash Value (CV): 1,141.34 1,524.91 1,657.44 3,035.49
Average Annual Return (AAR): 14.13% 15.10% 10.63% 11.74%
</TABLE>
- ---------------
* Includes QP IRA group certificates.
3/30/94
[EQV93PRF.XLW]Stock
<PAGE>
Standardized Performance for the Period Ending December 31, 1993
Investment Fund: Money Market
<TABLE>
<CAPTION>
B = One Year B = Three Years B = Five Years B = Ten Years
------------------------- ------------------------- --------------------------- --------------------------
Accum. Admin. Accum. Admin. Accum. Admin. Accum. Admin.
Date Unit Value t Value Charge t Value Charge t Value Charge t Value Charge
- ----------- ------------- ----- ----------- ------- ----- ----------- ------- ---- ------------ --------- ----- ----------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/83 14.813059 0 1,000.00
12/31/84 16.215445 1 1,094.67 21.89
12/31/85 17.308762 2 1,145.11 22.90
12/31/86 18.220373 3 1,181.31 23.63
12/31/87 19.180943 4 1,218.72 24.37
12/31/88 20.319365 0 1,000.00 5 1,265.23 25.30
12/31/89 21.887910 1 1,077.19 21.54 6 1,335.64 26.71
12/31/90 23.381166 0 1,000.00 2 1,127.67 22.55 7 1,398.23 27.96
12/31/91 24.478278 1 1,046.92 20.94 3 1,156.97 23.14 8 1,434.56 28.69
12/31/92 25.014473 0 1,000.00 2 1,048.46 20.97 4 1,158.67 23.17 9 1,436.66 28.73
12/31/93 25.412953 1 1,015.93 20.32 3 1,043.86 20.88 5 1,153.58 23.07 10 1,430.36 28.61
Account Value (Acct): 995.61 1,022.98 1,130.51 1,401.75
TSA, IRA*, SEP, EDC Plan and Participant-Owned HR-10 Plan Certificates:
Surrender Charge (SC): 59.74 61.38 61.05 37.85
Cash Value (CV): 935.87 961.60 1,069.46 1,363.90
Average Annual Return (AAR): -6.41% -1.30% 1.35% 3.15%
Trusteed and NQ Contracts:
Surrender Charge (SC): 53.76 55.24 60.00 0.00
Cash Value (CV): 941.85 967.74 1,070.51 1,401.75
Average Annual Return (AAR): -5.82% -1.09% 1.37% 3.43%
QP IRA Contracts (Individual):
Surrender Charge (SC): 53.76 55.24 61.05 37.85
Cash Value (CV): 941.85 967.74 1,069.46 1,363.90
Average Annual Return (AAR): -5.82% -1.09% 1.35% 3.15%
</TABLE>
- ---------------
* Includes QP IRA group certificates.
3/30/94
[EQV93PRF.XLW] Money Market
<PAGE>
Standardized Performance for the Period Ending December 31, 1993
Investment Fund: Balanced
<TABLE>
<CAPTION>
B = One Year B = Three Years B = Five Years
--------------------------- ---------------------------- ---------------------------
Accum. Admin. Accum. Admin. Accum. Admin.
Date Unit Value t Value Charge t Value Charge t Value Charge
- --------------- ------------- ----- ----------- --------- ----- ----------- ---------- ---- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/88 15.801712 0 1,000.00
12/31/89 19.688488 1 1,245.97 24.92
12/31/90 19.401129 0 1,000.00 2 1,203.23 24.06
12/31/91 27.165865 1 1,400.22 28.00 3 1,651.09 30.00
12/31/92 26.038399 0 1,000.00 2 1,315.27 26.31 4 1,553.81 30.00
12/31/93 28.853651 1 1,108.12 22.16 3 1,428.32 28.57 5 1,688.57 30.00
Account Value (Acct): 1,085.96 1,399.75 1,658.57
TSA, IRA*, SEP, EDC Plan and Participant-Owned HR-10 Plan Certificates:
Surrender Charge (SC): 65.16 80.00 80.00
Cash Value (CV): 1,020.80 1,319.75 1,578.57
Average Annual Return (AAR): 2.08% 9.69% 9.56%
Trusteed and NQ Contracts:
Surrender Charge (SC): 58.64 60.00 60.00
Cash Value (CV): 1,027.32 1,339.75 1,598.57
Average Annual Return (AAR): 2.73% 10.24% 9.84%
QP IRA Contracts (Individual):
Surrender Charge (SC): 58.64 75.59 80.00
Cash Value (CV): 1,027.32 1,324.16 1,578.57
Average Annual Return (AAR): 2.73% 9.81% 9.56%
</TABLE>
- ---------------
* Includes QP IRA group certificates.
3/30/94
[EQV93PRF.XLW] Balanced
<PAGE>
Standardized Performance for the Period Ending December 31, 1993
Investment Fund: Aggressive Stock
<TABLE>
<CAPTION>
B = One Year B = Three Years B = Five Years
--------------------------- ---------------------------- ---------------------------
Accum. Admin. Accum. Admin. Accum. Admin.
Date Unit Value t Value Charge t Value Charge t Value Charge
- ----------- ------------- ----- ----------- --------- ----- ----------- ---------- ---- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/88 18.092816 0 1,000.00
12/31/89 25.864365 1 1,429.54 28.59
12/31/90 27.355194 0 1,000.00 2 1,481.70 29.63
12/31/91 50.511325 1 1,846.50 30.00 3 2,681.23 30.00
12/31/92 48.301505 0 1,000.00 2 1,737.03 30.00 4 2,535.25 30.00
12/31/93 55.683075 1 1,152.82 23.06 3 1,967.90 30.00 5 2,888.10 30.00
Account Value (Acct): 1,129.76 1,937.90 2,858.10
TSA, IRA*, SEP, EDC Plan and Participant-Owned HR-10 Plan Certificates:
Surrender Charge (SC): 67.79 80.00 80.00
Cash Value (CV): 1,061.97 1,857.90 2,778.10
Average Annual Return (AAR): 6.20% 22.93% 22.67%
Trusteed and NQ Contracts:
Surrender Charge (SC): 60.00 60.00 60.00
Cash Value (CV): 1,069.76 1,877.90 2,798.10
Average Annual Return (AAR): 6.98% 23.37% 22.85%
QP IRA Contracts (Individual):
Surrender Charge (SC): 61.01 80.00 80.00
Cash Value (CV): 1,068.75 1,857.90 2,778.10
Average Annual Return (AAR): 6.88% 22.93% 22.67%
</TABLE>
- ---------------
* Includes QP IRA group certificates.
3/30/94
[EQV93PRF.XLW] Aggressive Stock
<PAGE>
Standardized Performance for the Period Ending December 31, 1993
B = Since Inception
---------------------------
<TABLE>
<CAPTION>
Investment Fund: Balanced Investment Fund: Aggressive Stock
Accum. Admin. Accum. Admin.
Date Unit Value t Value Charge Unit Value t Value Charge
- --------- -------------- ------- ----------- --------- -------------- ------ ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
5/1/84 10.000000 0.00 1,000.00 10.000000 0.00 1,000.00
4/30/85 11.322949 1.00 1,132.29 22.65 12.162050 1.00 1,216.21 24.32
4/30/86 15.169983 2.00 1,486.66 29.73 17.906847 2.00 1,754.87 30.00
4/30/87 16.439187 3.00 1,578.82 30.00 23.155393 3.00 2,230.44 30.00
4/30/88 14.685893 4.00 1,383.63 27.67 19.679475 4.00 1,870.12 30.00
4/30/89 17.015587 5.00 1,571.06 30.00 21.856608 5.00 2,043.69 30.00
4/30/90 18.601026 6.00 1,684.65 30.00 25.019351 6.00 2,305.08 30.00
4/30/91 21.148296 7.00 1,881.24 30.00 38.258256 7.00 3,478.94 30.00
4/30/92 24.898643 8.00 2,179.51 30.00 45.986648 8.00 4,145.64 30.00
4/30/93 26.386400 9.00 2,277.98 30.00 45.883488 9.00 4,106.41 30.00
12/31/93 28.853651 9.67 2,458.17 20.02 55.683075 9.67 4,947.03 20.02
Account Value (Acct): 2,438.15 4,927.01
TSA, IRA*, SEP, EDC Plan and Participant-Owned HR-10 Plan Certificates:
Surrender Charge (SC): 65.83 80.00
Cash Value (CV): 2,372.32 4,847.01
Average Annual Return (AAR): 9.35% 17.74%
Trusteed and NQ Contracts:
Surrender Charge (SC): 0.00 0.00
Cash Value (CV): 2,438.15 4,927.01
Average Annual Return (AAR): 9.66% 17.93%
QP IRA Contracts (Individual):
Surrender Charge (SC): 65.83 80.00
Cash Value (CV): 2,372.32 4,847.01
Average Annual Return (AAR): 9.35% 17.74%
</TABLE>
- ---------------
* Includes QP IRA group certificates.
4/5/94
[EQV93PRF.XLW] Since inception (RevBalAgg)
<PAGE>
Standardized Performance for the Period Ending December 31, 1993
Investment Fund: Quality Bond
Since Inception
--------------------------
Accum. Admin.
Date Unit Value t Value Charge
---- ---------- - ----- ------
12/31/88
12/31/89
12/31/90
12/31/91
10/1/93 99.616618 0 1,000.00
12/31/93 98.778977 1 991.59 7.47
Account Value (Acct): 984.12
TSA, IRA*, SEP, EDC Plan and Participant-Owned HR-10 Plan Certificates:
Surrender Charge (SC): 59.05
Cash Value (CV): 925.07
Average Annual Return (AAR): -26.85%
Trusteed and NQ Contracts:
Surrender Charge (SC): 53.14
Cash Value (CV): 930.98
Average Annual Return (AAR): -24.95%
QP IRA Contracts (Individual):
Surrender Charge (SC): 53.14
Cash Value (CV): 930.98
Average Annual Return (AAR): -24.95%
* Includes QP IRA group certificates.
4/6/94 EQUI-VEST [EQV93PRF.XLW]Quality Bond
<PAGE>
Standardized Performance for the Period Ending December 31, 1993
Investment Fund: High Yield
<TABLE>
<CAPTION>
B = One Year B = Three Years B = Five Years Since Inception
--------------------------- ------------------------- --------------------------- ---------------------------
Accum. Admin. Accum. Admin. Accum. Admin. Accum. Admin.
Date Unit Value t Value Charge t Value Charge t Value Charge t Value Charge
- -------- ------------- ----- ----------- --------- ----- ----------- ------- ---- ------------ --------- ----- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1/2/87 53.471871 0 1,000.00
12/31/87 55.225461 1 1,032.79 20.66
12/31/88 59.788945 0 1,000.00 2 1,095.78 21.92
12/31/89 62.016058 1 1,037.25 20.74 3 1,113.86 22.28
12/31/90 60.515262 0 1,000.00 2 991.91 19.84 4 1,065.17 21.30
12/31/91 74.308235 1 1,227.93 24.56 3 1,193.63 23.87 5 1,281.79 25.64
12/31/92 82.338588 0 1,000.00 2 1,333.41 26.67 4 1,296.17 25.92 6 1,391.90 27.84
12/31/93 100.037653 1 1,214.95 24.30 3 1,587.64 30.00 5 1,543.29 30.00 7 1,657.27 30.00
Account Value (Acct): 1,190.65 1,557.64 1,513.29 1,627.27
TSA, IRA*, SEP, EDC Plan and Participant-Owned HR-10 Plan Certificates:
Surrender Charge (SC): 71.44 80.00 80.00 73.23
Cash Value (CV): 1,119.21 1,477.64 1,433.29 1,554.04
Average Annual Return (AAR): 11.92% 13.90% 7.46% 6.51%
Trusteed and NQ Contracts:
Surrender Charge (SC): 60.00 60.00 60.00 0.00
Cash Value (CV): 1,130.65 1,497.64 1,453.29 1,627.27
Average Annual Return (AAR): 13.07% 14.41% 7.76% 7.21%
QP IRA Contracts (Individual):
Surrender Charge (SC): 64.30 80.00 80.00 73.23
Cash Value (CV): 1,126.35 1,477.64 1,433.29 1,554.04
Average Annual Return (AAR): 12.64% 13.90% 7.46% 6.51%
</TABLE>
* Includes QP IRA group certificates.
4/6/94 EQUI-VEST [EQV93PRF.XLW]High Yield
<PAGE>
Standardized Performance for the Period Ending December 31, 1993
Investment Fund: Growth & Income
Since Inception
-------------------------
Accum. Admin.
Date Unit Value t Value Charge
---- ---------- - ----- ------
12/31/88
12/31/89
12/31/90
12/31/91
10/1/93 101.380093 0 1,000.00
12/31/93 100.782857 1 994.11 7.47
Account Value (Acct): 986.64
TSA, IRA*, SEP, EDC Plan and Participant-Owned HR-10 Plan Certificates:
Surrender Charge (SC): 59.20
Cash Value (CV): 927.44
Average Annual Return (AAR): -26.09%
Trusteed and NQ Contracts:
Surrender Charge (SC): 53.28
Cash Value (CV): 933.36
Average Annual Return (AAR): -24.18%
QP IRA Contracts (Individual):
Surrender Charge (SC): 53.28
Cash Value (CV): 933.36
Average Annual Return (AAR): -24.18%
* Includes QP IRA group certificates.
4/6/94 [EQV93PRF.XLW]Growth & Income
<PAGE>
Standardized Performance for the Period Ending December 31, 1993
Investment Fund: Conservative Investors
<TABLE>
<CAPTION>
B = One Year B = Three Years Since Inception
--------------------------- ---------------------------- ---------------------------
Accum. Admin. Accum. Admin. Accum. Admin.
Date Unit Value t Value Charge t Value Charge t Value Charge
- --------------- ------------- ----- ----------- --------- ----- ----------- ---------- ---- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/2/89 69.119928 0 1,000.00
12/31/89 71.019416 1 1,027.48 7.39
12/31/90 74.555332 0 1,000.00 2 1,070.88 21.42
12/31/91 88.156628 1 1,182.43 23.65 3 1,240.91 24.82
12/31/92 92.010728 0 1,000.00 2 1,209.44 24.19 4 1,269.26 25.39
12/31/93 100.548785 1 1,092.79 21.86 3 1,295.24 25.90 5 1,359.30 27.19
Account Value (Acct): 1,070.93 1,269.34 1,332.11
TSA, IRA*, SEP, EDC Plan and Participant-Owned HR-10 Plan Certificates:
Surrender Charge (SC): 64.26 76.16 71.93
Cash Value (CV): 1,006.67 1,193.18 1,260.18
Average Annual Return (AAR): 0.67% 6.06% 5.60%
Trusteed and NQ Contracts:
Surrender Charge (SC): 57.83 60.00 60.00
Cash Value (CV): 1,013.10 1,209.34 1,272.11
Average Annual Return (AAR): 1.31% 6.54% 5.83%
QP IRA Contracts (Individual):
Surrender Charge (SC): 57.83 68.54 71.93
Cash Value (CV): 1,013.10 1,200.80 1,260.18
Average Annual Return (AAR): 1.31% 6.29% 5.60%
</TABLE>
* Includes QP IRA group certificates.
4/6/94 EQUI-VEST [EQV93PRF.XLW]Conservative Investors
<PAGE>
Standardized Performance for the Period Ending December 31, 1993
Investment Fund: Growth Investors
<TABLE>
<CAPTION>
B = One Year B = Three Years Since Inception
--------------------------- ---------------------------- ---------------------------
Accum. Admin. Accum. Admin. Accum. Admin.
Date Unit Value t Value Charge t Value Charge t Value Charge
- --------------- ------------- ----- ----------- --------- ----- ----------- ---------- ---- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
10/2/89 51.533137 0 1,000.00
12/31/89 53.415454 1 1,036.53 7.39
12/31/90 58.293444 0 1,000.00 2 1,123.12 22.46
12/31/91 85.642190 1 1,469.16 29.38 3 1,617.03 30.00
12/31/92 88.663930 0 1,000.00 2 1,490.57 29.81 4 1,643.03 30.00
12/31/93 100.827148 1 1,137.18 22.74 3 1,661.15 30.00 5 1,834.31 30.00
Account Value (Acct): 1,114.44 1,631.15 1,804.31
TSA, IRA*, SEP, EDC Plan and Participant-Owned HR-10 Plan Certificates:
Surrender Charge (SC): 66.87 80.00 80.00
Cash Value (CV): 1,047.57 1,551.15 1,724.31
Average Annual Return (AAR): 4.76% 15.76% 13.69%
Trusteed and NQ Contracts:
Surrender Charge (SC): 60.00 60.00 60.00
Cash Value (CV): 1,054.44 1,571.15 1,744.31
Average Annual Return (AAR): 5.44% 16.25% 14.00%
QP IRA Contracts (Individual):
Surrender Charge (SC): 60.18 80.00 80.00
Cash Value (CV): 1,054.26 1,551.15 1,724.31
Average Annual Return (AAR): 5.43% 15.76% 13.69%
</TABLE>
* Includes QP IRA group certificates.
4/6/94 EQUI-VEST [EQV93PRF.XLW]Growth Investors
<PAGE>
Standardized Performance for the Period Ending December 31, 1993
Investment Fund: Intermediate Gov't Security
<TABLE>
<CAPTION>
B = One Year Since Inception
--------------------------------- ---------------------------------
Accum. Admin. Accum. Admin.
Date Unit Value t Value Charge t Value Charge
- --------------- -------------- ---- ------------ --------- ---- ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
4/1/91 79.676917 0 1,000.00
12/31/91 88.397370 1 1,109.45 22.19
12/31/92 92.091607 0 1,000.00 2 1,132.70 22.65
12/31/93 100.470450 1 1,090.98 21.82 3 1,211.04 24.22
Account Value (Acct): 1,069.16 1,186.82
TSA, IRA*, SEP, EDC Plan and Participant-Owned HR-10 Plan Certificates:
Surrender Charge (SC): 64.15 71.21
Cash Value (CV): 1,005.01 1,115.61
Average Annual Return (AAR): 0.50% 4.06%
Trusteed and NQ Contracts:
Surrender Charge (SC): 57.73 60.00
Cash Value (CV): 1,011.43 1,126.82
Average Annual Return (AAR): 1.14% 4.43%
QP IRA Contracts (Individual):
Surrender Charge (SC): 57.73 64.09
Cash Value (CV): 1,011.43 1,122.73
Average Annual Return (AAR): 1.14% 4.30%
</TABLE>
* Includes QP IRA group certificates.
4/6/94 EQUI-VEST
[EQV93PRF.XLW]Intermediate Gov't Security
<PAGE>
Standardized Performance for the Period Ending December 31, 1993
Investment Fund: Global
<TABLE>
<CAPTION>
B = One Year B = Three Years B = Five Years Since Inception
--------------------------- -------------------------- --------------------------- -------------------------
Accum. Admin. Accum. Admin. Accum. Admin. Accum. Admin.
Date Unit Value t Value Charge t Value Charge t Value Charge t Value Charge
- --------- ------------- ----- ----------- --------- ----- ----------- -------- ---- ------------ --------- ----- ----------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
8/28/87 55.637589 0 1,000.00
12/31/87 48.032208 1 863.30 10.27
12/31/88 52.544826 0 1,000.00 2 933.18 18.66
12/31/89 65.700058 1 1,250.36 25.01 3 1,143.48 22.87
12/31/90 60.890182 0 1,000.00 2 1,135.65 22.71 4 1,038.57 20.77
12/31/91 78.431030 1 1,288.07 25.76 3 1,433.54 28.67 5 1,311.00 26.22
12/31/92 76.983608 0 1,000.00 2 1,239.02 24.78 4 1,378.94 27.58 6 1,261.07 25.22
12/31/93 100.353483 1 1,303.57 26.07 3 1,582.84 30.00 5 1,761.60 30.00 7 1,611.01 30.00
Account Value (Acct): 1,277.50 1,552.84 1,731.60 1,581.01
TSA, IRA*, SEP, EDC Plan and Participant-Owned HR-10 Plan Certificates:
Surrender Charge (SC): 76.65 80.00 80.00 71.15
Cash Value (CV): 1,200.85 1,472.84 1,651.60 1,509.86
Average Annual Return (AAR): 20.09% 13.78% 10.56% 6.71%
Trusteed and NQ Contracts:
Surrender Charge (SC): 60.00 60.00 60.00 0.00
Cash Value (CV): 1,217.50 1,492.84 1,671.60 1,581.01
Average Annual Return (AAR): 21.75% 14.29% 10.82% 7.49%
QP IRA Contracts (Individual):
Surrender Charge (SC): 68.99 80.00 80.00 71.15
Cash Value (CV): 1,208.52 1,472.84 1,651.60 1,509.86
Average Annual Return (AAR): 20.85% 13.78% 10.56% 6.71%
</TABLE>
* Includes QP IRA group certificates.
4/6/94 EQUI-VEST [EQV93PRF.XLW]Global
