-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ixb5S/YXL0Ojr+8QoPS65wbPnt+xeAfvLtNCb1UUd1RmRXxCIVAyxmwZMott/Oyg GXz40yeP1w13k31zqfW4tQ== 0000950146-97-001101.txt : 19970730 0000950146-97-001101.hdr.sgml : 19970730 ACCESSION NUMBER: 0000950146-97-001101 CONFORMED SUBMISSION TYPE: 485APOS PUBLIC DOCUMENT COUNT: 9 FILED AS OF DATE: 19970729 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: VARIABLE ANNUITY ACCT C OF AETNA LIFE INSURANCE & ANNUITY CO CENTRAL INDEX KEY: 0000103007 STANDARD INDUSTRIAL CLASSIFICATION: [] STATE OF INCORPORATION: CT FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 485APOS SEC ACT: 1933 Act SEC FILE NUMBER: 033-75964 FILM NUMBER: 97647107 FILING VALUES: FORM TYPE: 485APOS SEC ACT: 1940 Act SEC FILE NUMBER: 811-02513 FILM NUMBER: 97647108 BUSINESS ADDRESS: STREET 1: 151 FARMINGTON AVE CITY: HARTFORD STATE: CT ZIP: 06156 BUSINESS PHONE: 2032734808 MAIL ADDRESS: STREET 1: C/O AETNA LIFE & CASUALTY STREET 2: 151 FARMINGTON AVE CITY: HARTFORD STATE: CT ZIP: 06156 FORMER COMPANY: FORMER CONFORMED NAME: VARIABLE ANNUITY ACCOUNT C OF AETNA VARIABLE ANNUITY LIFE IN DATE OF NAME CHANGE: 19791108 485APOS 1 FORM N-4 As filed with the Securities and Exchange Registration No. 33-75964* Commission on July 29, 1997 Registration No. 811-2513 - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-4 - -------------------------------------------------------------------------------- Post-Effective Amendment No. 14 To REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 and Amendment to REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 - -------------------------------------------------------------------------------- Variable Annuity Account C of Aetna Life Insurance and Annuity Company Aetna Life Insurance and Annuity Company 151 Farmington Avenue, RE4A, Hartford, Connecticut 06156 Depositor's Telephone Number, including Area Code: (860) 273-4686 Julie E. Rockmore, Counsel Aetna Life Insurance and Annuity Company 151 Farmington Avenue, RE4A, Hartford, Connecticut 06156 (Name and Address of Agent for Service) - -------------------------------------------------------------------------------- It is proposed that this filing will become effective: --- 60 days after filing pursuant to paragraph (a)(2) of Rule 485 on X August 21, 1997 or as soon thereafter as practicable pursuant to --- paragraph (a)(3) of Rule 485 (Request for acceleration has been included with this filing) Pursuant to Rule 24f-2 under the Investment Company Act of 1940, Registrant has registered an indefinite number of securities under the Securities Act of 1933. Registrant filed a Rule 24f-2 Notice for the fiscal year ended December 31, 1996 on February 28, 1997. *Pursuant to Rule 429(a) under the Securities Act of 1933, Registrant has included a combined prospectus under this Registration Statement which includes all the information which would currently be required in prospectuses relating to the securities covered by the following earlier Registration Statements: 33-75958; 33-75960; and 33-75994. VARIABLE ANNUITY ACCOUNT C CROSS REFERENCE SHEET
LOCATION - PROSPECTUS DATED MAY 1, 1997 AND AS AMENDED BY SUPPLEMENT DATED AUGUST 21, 1997 FORM N-4 ITEM NO. PART A (PROSPECTUS) 1 Cover Page ...................................... Cover Page, and as amended 2 Definitions ..................................... Definitions 3 Synopsis ........................................ Prospectus Summary; Fee Table, and as amended 4 Condensed Financial Information ................. Condensed Financial Information 5 General Description of Registrant, Depositor, and Portfolio Companies ............................. The Company; Variable Annuity Account C; The Funds, and as amended 6 Deductions and Expenses ......................... Charges and Deductions; Distribution 7 General Description of Variable Annuity Contracts Purchase; Miscellaneous 8 Annuity Period .................................. Annuity Period 9 Death Benefit ................................... Death Benefit During Accumulation Period; Death Benefit Payable During the Annuity Period 10 Purchases and Contract Value .................... Purchase; Contract Valuation 11 Redemptions ..................................... Right to Cancel; Withdrawals 12 Taxes ........................................... Tax Status 13 Legal Proceedings ............................... Miscellaneous - Legal Matters and Proceedings 14 Table of Contents of the Statement of Additional Contents of the Statement of Information ..................................... Additional Information
LOCATION - STATEMENT OF ADDITIONAL FORM N-4 PART B (STATEMENT OF ADDITIONAL INFORMATION DATED ITEM NO. INFORMATION) MAY 1, 1997 15 Cover Page ............................. Cover page 16 Table of Contents ...................... Table of Contents 17 General Information and History ........ General Information and History 18 Services ............................... General Information and History; Independent Auditors 19 Purchase of Securities Being Offered Offering and Purchase of Contracts 20 Underwriters ........................... Offering and Purchase of Contracts 21 Calculation of Performance Data ........ Performance Data; Average Annual Total Return Quotations 22 Annuity Payments ....................... Annuity Payments 23 Financial Statements ................... Financial Statements
Part C (Other Information) -------------------------- Information required to be included in Part C is set forth under the appropriate item, so numbered, in Part C to this Registration Statement. Parts A and B The Prospectus and the Statement of Additional Information are incorporated into Part A and B, respectively, of this Post-Effective Amendment No. 14 by reference to Post-Effective Amendment No. 13 to the Registration Statement on Form N-4 (File No. 33-75964), as filed electronically on April 11, 1997. Supplement to Prospectus Dated May 1, 1997 Aetna Life Insurance and Annuity Company Variable Annuity Account B Variable Annuity Account C The prospectus dated May 1, 1997 is amended as follows: Cover: The following Funds, to the extent they are listed in your prospectus, will be replaced with the designated Substitute Funds after the close of business of the New York Stock Exchange on November 26, 1997:
Replaced Fund Substitute Fund Scudder Variable Life Investment Fund-- Portfolio Partners Scudder International Growth Portfolio International Portfolio Class A Shares Alger American Small Capitalization Portfolio Portfolio Partners MFS Emerging Equities Portfolio American Century VP Capital Appreciation Portfolio Partners MFS Research Growth Portfolio (Formerly TCI Growth) Neuberger & Berman AMT Growth Portfolio Portfolio Partners MFS Value Equity Portfolio Alger American Growth Portfolio Portfolio Partners T. Rowe Price Growth Equity Portfolio Janus Aspen Short-Term Bond Portfolio Aetna Variable Encore Fund (money Market) Franklin Government Securities Trust Aetna Income Shares (bond)
The following Fund, if previously available in your prospectus, will be removed from the list of Funds as of the close of business of the New York Stock Exchange on November 26, 1997, or as soon thereafter as all participants have redirected their allocations to other investment options, since it will be closed to new investments after that date (except reinvested dividends and capital gains earned on amounts already invested in the Fund through the Separate Account and loan repayments automatically deposited into the Fund pursuant to the Company's loan repayment procedures). Closed Lexington Natural Resources Trust SUBJECT TO COMPLETION OR AMENDMENT INFORMATION CONTAINED HEREIN IS SUBJECT TO COMPLETION OR AMENDMENT. A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE REGISTRATION STATEMENT BECOMES EFFECTIVE. THIS PROSPECTUS SUPPLEMENT SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF ANY OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE. The Date of this Supplement is August 21, 1997 XFUNDS-97 Fee Table--2 The table under Annual Expenses of the Funds is amended by deleting the Replaced Funds and the Closed Fund and adding the following Substitute Funds:
Investment Advisory Fees Other Expenses (after expense (after expense Total Annual reimbursement) reimbursement) Fund Expenses Portfolio Partners Scudder International Growth Portfolio .80% .20% 1.00%(1) Portfolio Partners MFS Emerging Equities Portfolio .70%(2) .13% .83%(1) Portfolio Partners MFS Research Growth Portfolio .70%(2) .15% .85%(1) Portfolio Partners MFS Value Equity Portfolio .65% .25% .90%(1) Portfolio Partners T. Rowe Price Growth Equity Portfolio .60% .15% .75%(1)
(1) The Company has agreed to reimburse the Fund for expenses and/or waive its fees so that the aggregate expenses will not exceed this amount through April 30, 1999. Without such reimbursements or waivers, Total Annual Fund Expenses are estimated to be as follows: 1.00% for the Scudder International Growth Portfolio; .87% for the MFS Emerging Equities Portfolio; .92% for the MFS Research Growth Portfolio; .90% for the MFS Value Equity Portfolio; and .79% for the T. Rowe Price Growth Equity Portfolio. (2) The advisory fee is .70% of the first $500 million in assets and .65% on the excess. Fee Table--3 The Hypothetical Illustrations (Example) in the Fee Table are amended by deleting all information with respect to the Replaced Funds and Closed Fund for periods after November 26, 1997, and adding the following:
EXAMPLE A EXAMPLE B If you withdraw the entire Account Value at If you do not withdraw the entire Account the end of the periods shown, you would pay Value, or if you annuitize at the end of the the following expenses, including any periods shown, you would pay the following applicable deferred sales charge: expenses (no deferred sales charge is reflected): 1 year 3 years 5 years 10 years 1 year 3 years 5 year 10 years ------ ------- ------- -------- ------ ------- ------ -------- Portfolio Partners Scudder International Growth Portfolio $78 $136 $197 $298 $27 $82 $140 $298 Portfolio Partners MFS Emerging Equities Portfolio $76 $131 $189 $281 $25 $77 $132 $281 Portfolio Partners MFS Research Growth Portfolio $77 $132 $189 $283 $25 $78 $133 $283 Portfolio Partners MFS Value Equity Portfolio $77 $133 $192 $288 $26 $79 $135 $288 Portfolio Partners T. Rowe Price Growth Equity Portfolio $76 $129 $185 $273 $24 $75 $128 $273
The Examples above assume that a mortality and expense risk charge of 1.25% on an annual basis, an administrative expense charge of 0.25% on an annual basis and an annual maintenance fee of $30 are assessed. Example A assumes that a deferred sales charge of 5% of the Account Value at the end of years 1, 3 and 5, and 0% at the end of year 10, is assessed. (Charges under your particular Contract may be lower. Please refer to Fee Table--1 of your Prospectus.) Prospectus, Page 1 In the Section Investment Options, the Substitute Funds will take the place of the Replaced Funds after the close of business of the New York Stock Exchange on November 26, 1997. Any amounts allocated to the Replaced Funds will automatically be allocated to the Substitute Funds after that date. Information about the Closed Fund will be deleted after November 26, 1997 or as soon thereafter as all participants have redirected their allocations to other investment options (Closing Date), since it will not be eligible for the deposit of any new payments or transfers from other Funds. The following will be added: Portfolio Partners Scudder International Growth Portfolio seeks long term growth of capital primarily through a diversified portfolio of marketable foreign equity securities. Portfolio Partners MFS Emerging Equities Portfolio seeks long term growth of capital by investing primarily in common stocks issued by companies that its subadviser believes are early in their life cycle but which have the potential to become major enterprises (emerging growth companies). Portfolio Partners MFS Research Growth Portfolio seeks long term growth of capital and future income by investing primarily in common stocks or securities convertible into common stocks issued by companies that the subadviser believes to possess better-than-average prospects for long-term growth, and, to a lesser extent, in income-producing securities including bonds and preferred stock. Portfolio Partners MFS Value Equity Portfolio seeks capital appreciation by investing primarily in common stocks. Portfolio Partners T. Rowe Price Growth Equity Portfolio seeks long term growth of capital and, secondarily, seeks to increase dividend income by investing primarily in common stocks issued by a diversified group of well-established growth companies. Aetna Life Insurance and Annuity Company serves as the investment adviser to each Portfolio. Scudder, Stevens & Clark, Inc. serves as the subadviser to the Scudder International Growth Portfolio; Massachusetts Financial Services Company serves as the subadviser to the MFS Emerging Equities, MFS Research Growth and MFS Value Equity Portfolios; and T. Rowe Price Associates, Inc. serves as the subadviser to the T. Rowe Price Growth Equity Portfolio. Prospectus--"Transfer" Section The Section in the prospectus discussing Transfers, is amended by adding the following to the Subsections on Dollar Cost Averaging (if available): Amounts being transferred into a Replaced Fund will automatically be transferred into the Substitute Fund after November 26, 1997, unless you have been dollar cost averaging between the Aetna Variable Encore Fund and the Janus Aspen Short-Term Bond Portfolio (in either direction). In that event, or if amounts are to be transferred into a Closed Fund, your Dollar Cost Averaging will automatically terminate after November 26, 1997 or, for the Closed Fund, after the Closing Date. To continue with Dollar Cost Averaging after that date, you must select Funds from the then-current list of available Funds. XFUNDS-97 VARIABLE ANNUITY ACCOUNT C PART C - OTHER INFORMATION Item 24. Financial Statements and Exhibits (a) Financial Statements: (1) Included in Part A: Condensed Financial Information (2) Included in Part B: Financial Statements of Variable Annuity Account C: - Statement of Assets and Liabilities as of December 31, 1996 - Statements of Operations and Changes in Net Assets for the years ended December 31, 1996 and 1995 - Notes to Financial Statements - Independent Auditors' Report Financial Statements of the Depositor: - Independent Auditors' Report - Consolidated Balance Sheets as of December 31, 1996 and 1995 - Consolidated Statements of Income for the years ended December 31, 1996, 1995 and 1994 - Consolidated Statements of Changes in Shareholder's Equity for the years ended December 31, 1996, 1995 and 1994 - Notes to Consolidated Financial Statements - Consolidated Statements of Cash Flows for the years ended December 31, 1996, 1995 and 1994 (b) Exhibits (1) Resolution of the Board of Directors of Aetna Life Insurance and Annuity Company establishing Variable Annuity Account C(1) (2) Not applicable (3.1) Form of Broker-Dealer Agreement(2) (3.2) Alternative Form of Wholesaling Agreement and Related Selling Agreement(2) (4.1) Form of Variable Annuity Contract (G-CDA-HF) (4.2) Form of Variable Annuity Contract (IA-CDA-IA) (4.3) Form of Variable Annuity Contract (G-CDA-HD)(3) (4.4) Form of Variable Annuity Contract (GIT-CDA-HO)(4) (4.5) Form of Variable Annuity Contract (GLIT-CDA-HO)(4) (4.6) Form of Variable Annuity Contract (GST-CDA-HO)(4) (4.7) Form of Variable Annuity Contract (I-CDA-HD)(4) (4.8) Form of Variable Annuity Contract (IA-CDA-IA(RP)) (2) (4.9) Form of Endorsements (EIGET-IC(R), EIGF-IC, and EGF-IC(SPD)) to Contract IA-CDA-IA(5) (4.10) Form of Endorsement (EGET-IC(R)) to Contract G-CDA-HD and G-CDA-HF(2) (4.11) Form of Endorsement (EIHDIASDO) to Contracts I-CDA-HD and IA-CDA-IA(6) (4.12) Form of Endorsement (EHOSDO) to Contracts GIT-CDA-HO, GLIT-CDA-HO and GST-CDA-HO(6) (4.13) Form of Endorsement (EHOTABLE97) to Contracts GIT-CDA-HO, GLIT-CDA-HO AND GST-CDA-HO(6) (4.14) Form of Endorsement (EGHDHFRPSDO97) to Contracts G-CDA-HD and G-CDA-HF(6) (4.15) Form of Endorsement (EFUND97) (5) Form of Variable Annuity Contract Application (710.00.16H) (6.1) Certification of Incorporation and By-Laws of Aetna Life Insurance and Annuity Company(7) (6.2) Amendment of Certificate of Incorporation of Aetna Life Insurance and Annuity Company(4) (7) Not applicable (8.1) Fund Participation Agreement between Aetna Life Insurance and Annuity Company and Calvert Asset Management Company (Calvert Responsibility Invested Balanced Portfolio, formerly Calvert Socially Responsible Series) dated March 13, 1989 and amended December 27, 1993(2) (8.2) Second Amendment dated January 1, 1996 to Fund Participation Agreement between Aetna Life Insurance and Annuity Company and Calvert Asset Management Company (Calvert Responsibly Invested Balanced Portfolio, formerly Calvert Socially Responsible Series) dated March 13, 1989 and amended December 27, 1993(8) (8.3) Third Amendment dated February 11, 1997 to Fund Participation Agreement between Aetna Life Insurance and Annuity Company and Calvert Asset Management Company (Calvert Responsibility Invested Balanced Portfolio, formerly Calvert Socially Responsible Series) dated March 13, 1989 and amended December 27, 1993 and January 1, 1996(9) (8.4) Fourth Amendment dated February 28,1997 to Fund Participation Agreement between Aetna Life Insurance and Annuity Company and Calvert Asset Management Company (Calvert Responsibly Invested Balanced Portfolio, formerly Calvert Socially Responsible Series) dated March 13, 1989 and amended December 27, 1993, January 1,1996, and February 11,1997 (8.5) Fund Participation Agreement between Aetna Life Insurance and Annuity Company, Variable Insurance Products Fund and Fidelity Distributors Corporation dated February 1, 1994 and amended on December 15, 1994, February 1, 1995, May 1, 1995, January 1, 1996 and March 1, 1996(4) (8.6) Fund Participation Agreement between Aetna Life Insurance and Annuity Company, Variable Insurance Products Fund II and Fidelity Distributors Corporation dated February 1, 1994 and amended on December 15, 1994, February 1. 1995, May 1, 1995, January 1, 1996 and March 1,1996(4) (8.7) Service Agreement between Aetna Life Insurance and Annuity Company and Fidelity Investments Institutional Operations Company dated as of November 1, 1995(8) (8.8) Fund Participation Agreement between Aetna Life Insurance and Annuity Company and Janus Aspen Series dated April 19, 1994 and amended March 1, 1996(2) (8.9) Fund Participation Agreement between Aetna Life Insurance and Annuity Company and Lexington Management Corporation regarding Natural Resources Trust dated December 1, 1988 and amended February 11, 1991(2) (9) Opinion and Consent of Counsel (10) Consent of Independent Auditors (11) Not applicable (12) Not applicable (13) Schedule for Computation of Performance Data(10) (14) Not applicable (15.1) Powers of Attorney(11) (15.2) Authorization for Signatures(2) (27) Financial Data Schedule 1. Incorporated by reference to Post-Effective Amendment No. 6 to Registration Statement on Form N-4 (File No. 33-75986), as filed electronically on April 22, 1996. 2. Incorporated by reference to Post-Effective Amendment No. 5 to Registration Statement on Form N-4 (File No. 33-75986), as filed electronically on April 12, 1996. 3. Incorporated by reference to Post-Effective Amendment No. 6 to Registration Statement on Form N-4 (File No. 33-75982), as filed electronically on April 22, 1996. 4. Incorporated by reference to Post-Effective Amendment No. 12 to Registration Statement on Form N-4 (File No. 33-75964), as filed electronically on February 11, 1997. 5. Incorporated by reference to Post Effective Amendment No. 8 to Registration Statement on Form N-4 (File No. 33-75964), as filed electronically on August 30, 1996. 6. Incorporated by reference to Post-Effective Amendment No. 13 to Registration Statement on Form N-4 (File No. 33-75964), as filed electronically on April 11, 1997. 7. Incorporated by reference to Post-Effective Amendment No. 1 to Registration Statement on Form S-1 (File No. 33-60477), as filed electronically on April 15, 1996. 8. Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement on Form N-4 (File No. 33-88720), as filed electronically on June 28, 1996. 9. Incorporated by reference to Post-Effective Amendment No. 4 to Registration Statement on Form N-4 (File No. 333-01107), as filed electronically on February 26, 1997. 10. Incorporated by reference to Post-Effective Amendment No. 4 to Registration Statement on Form N-4 (File No. 33-75964), filed on April 28, 1995. 11. Incorporated by reference to Post-Effective Amendment No. 8 to Registration Statement on Form S-6 (File No. 33-76004), as filed electronically on July 14, 1997. Item 25. Directors and Officers of the Depositor - ------------------------------------------------ Name and Principal Business Address* Positions and Offices with Depositor - ----------------- ------------------------------------ Daniel P. Kearney Director and President Timothy A. Holt Director, Senior Vice President and Chief Financial Officer Christopher J. Burns Director and Senior Vice President J. Scott Fox Director and Senior Vice President John Y. Kim Director and Senior Vice President Shaun P. Mathews Director and Vice President Glen Salow Director and Vice President Creed R. Terry Director and Vice President Deborah Koltenuk Vice President and Treasurer, Corporate Controller Frederick D. Kelsven Vice President and Chief Compliance Officer Kirk P. Wickman Vice President, General Counsel and Secretary * The principal business address of all directors and officers listed is 151 Farmington Avenue, Hartford, Connecticut 06156. Item 26. Persons Controlled by or Under Common Control with the Depositor or - ---------------------------------------------------------------------------- Registrant ---------- Incorporated herein by reference to Item 25 of Post-Effective Amendment No. 22 to the Registration Statement on Form N-1A (File No. 33-41694), as filed electronically on July 9, 1997. Item 27. Number of Contract Owners - ---------------------------------- As of June 30,1997, there were 615,817 individuals holding interests in variable annuity contracts funded through Variable Annuity Account C. Item 28. Indemnification - ------------------------ Reference is hereby made to Section 33-771(f) of the Connecticut General Statutes ("C.G.S.") regarding indemnification of directors and Section 33-776(4) regarding indemnification of officers, employees and agents of Connecticut corporations. These statutes provide in general that Connecticut corporations incorporated prior to January 1, 1997 shall indemnify their officers, directors, employees and agents against "liability" (defined as the obligation to pay a judgment, settlement, penalty, fine, excise tax in the case of an employee benefit plan or reasonable expenses incurred with respect to a proceeding). In the case of a proceeding by or in the right of the corporation, indemnification is limited to reasonable expenses incurred in connection with the proceeding against the corporation to which the individual was named a party. The corporation's obligation to provide such indemnification does not apply unless (1) the individual has met the standard of conduct set forth in Section 33-771; and (2) a determination is made (by majority vote of a quorum of the board of directors who were not parties to the proceeding, or if a quorum cannot be obtained, by a committee of the board selected as described in Section 33-775(b)(2); by special legal counsel selected by the board of directors or members thereof as described in Section 33-775(b)(3); by shareholders) that the individual met the standard set forth in Section 33-771; or (3) the court, upon application by the individual, determines in view of all the circumstances that such person is reasonably entitled to be indemnified. Also, unless limited by its Certificate of Incorporation, a corporation must indemnify an individual who was wholly successful on the merits or otherwise against reasonable expenses incurred by him in connection with a proceeding to which he was a party because of his relationship as director, officer, employee or agent of the corporation. The statute does specifically authorize a corporation to procure indemnification insurance on behalf of an individual who is or was a director, officer, employer or agent of the corporation. Consistent with the statute, Aetna Inc. has procured insurance from Lloyd's of London and several major United States excess insurers for its directors and officers and the directors and officers of its subsidiaries, including the Depositor. Item 29. Principal Underwriter - ------------------------------ (a) In addition to serving as the principal underwriter and depositor for the Registrant, Aetna Life Insurance and Annuity Company (Aetna) also acts as the principal underwriter and investment adviser for Aetna Series Fund, Inc. (effective August 1, 1997, Aetna will no longer be the underwriter for Aetna Series Fund, Inc.), Portfolio Partners, Inc., Aetna Variable Encore Fund, Aetna Variable Fund, Aetna Generation Portfolios, Inc., Aetna Income Shares, Aetna Investment Advisers Fund, Inc., Aetna GET Fund, and Aetna Variable Portfolios, Inc. (all management investment companies registered under the Investment Company Act of 1940 (1940 Act)). Additionally, Aetna acts as the principal underwriter and depositor for Variable Life Account B of Aetna, Variable Annuity Account B of Aetna and Variable Annuity Account G of Aetna (separate accounts of Aetna registered as unit investment trusts under the 1940 Act). Aetna is also the principal underwriter for Variable Annuity Account I of Aetna Insurance Company of America (AICA) (a separate account of AICA registered as a unit investment trust under the 1940 Act). (b) See Item 25 regarding the Depositor. (c) Compensation as of December 31, 1996:
(1) (2) (3) (4) (5) Name of Net Underwriting Compensation on Principal Discounts and Redemption or Brokerage Underwriter Commissions Annuitization Commissions Compensation* - ----------- ----------- ------------- ----------- ------------- Aetna Life Insurance $1,325,661 $96,924,599 and Annuity Company
* Compensation shown in column 5 includes deductions for mortality and expense risk guarantees and contract charges assessed to cover costs incurred in the sales and administration of the contracts issued under Variable Annuity Account C. Item 30. Location of Accounts and Records - ----------------------------------------- All accounts, books and other documents required to be maintained by Section 31(a) of the 1940 Act and the rules under it relating to the securities described in and issued under this Registration Statement are located at the home office of the Depositor as follows: Aetna Life Insurance and Annuity Company 151 Farmington Avenue Hartford, Connecticut 06156 Item 31. Management Services - ---------------------------- Not applicable Item 32. Undertakings - --------------------- Registrant hereby undertakes: (a) to file a post-effective amendment to this registration statement on Form N-4 as frequently as is necessary to ensure that the audited financial statements in the registration statement are never more than sixteen months old for as long as payments under the variable annuity contracts may be accepted; (b) to include as part of any application to purchase a contract offered by a prospectus which is part of this registration statement on Form N-4, a space that an applicant can check to request a Statement of Additional Information; and (c) to deliver any Statement of Additional Information and any financial statements required to be made available under this Form N-4 promptly upon written or oral request. (d) The Company hereby represents that it is relying upon and complies with the provisions of Paragraphs (1) through (4) of the SEC Staff's No-Action Letter dated November 22, 1988 with respect to language concerning withdrawal restrictions applicable to plans established pursuant to Section 403(b) of the Internal Revenue Code. See American Counsel of Life Insurance; SEC No-Action Letter, [1989 Transfer Binder] Fed. SEC. L. Rep. (CCH) P. 78,904 at 78,523 (November 22, 1988). (e) Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue. (f) Aetna Life Insurance and Annuity Company represents that the fees and charges deducted under the contracts covered by this registration statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the insurance company. SIGNATURES As required by the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant, Variable Annuity Account C of Aetna Life Insurance and Annuity Company, has duly caused this Post-Effective Amendment No. 14 to its Registration Statement on Form N-4 (File No. 33-75964) to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Hartford, State of Connecticut, on the 29th day of July, 1997. VARIABLE ANNUITY ACCOUNT C OF AETNA LIFE INSURANCE AND ANNUITY COMPANY (Registrant) By: AETNA LIFE INSURANCE AND ANNUITY COMPANY (Depositor) By: Daniel P. Kearney* -------------------------- Daniel P. Kearney President As required by the Securities Act of 1933, this Post-Effective Amendment No. 14 to the Registration Statement on Form N-4 (File No. 33-75964) has been signed by the following persons in the capacities and on the dates indicated.
Signature Title Date - --------- ----- ---- Daniel P. Kearney* Director and President ) - ------------------------------------ (principal executive officer) ) Daniel P. Kearney ) Timothy A. Holt* Director, Senior Vice President and ) July - ----------------------------------- Chief Financial Officer ) 29, 1997 Timothy A. Holt ) Christopher J. Burns* Director ) - ------------------------------------ Christopher J. Burns ) ) J. Scott Fox* Director ) - ------------------------------------ J. Scott Fox ) ) John Y. Kim* Director ) - ------------------------------------ John Y. Kim ) ) Shaun P. Mathews* Director ) - ------------------------------------ Shaun P. Mathews ) Glen Salow* Director ) - ------------------------------------ ) Glen Salow ) Creed R. Terry* Director ) - ------------------------------------ Creed R. Terry ) ) Deborah Koltenuk* Vice President and Treasurer, - ------------------------------------ Corporate Controller ) Deborah Koltenuk )
By: /s/ Kirk P. Wickman ------------------------------------------------------------ Kirk P. Wickman Attorney-in-Fact VARIABLE ANNUITY ACCOUNT C EXHIBIT INDEX
Exhibit No. Exhibit Page - ----------- ------- ---- 99-B.1 Resolution of the Board of Directors of Aetna Life Insurance and Annuity * Company establishing Variable Annuity Account C 99-B.3.1 Form of Broker-Dealer Agreement * 99-B.3.2 Alternative Form of Wholesaling Agreement and Related Selling Agreement * 99-B.4.1 Form of Variable Annuity Contract (G-CDA-HF) --- 99-B.4.2 Form of Variable Annuity Contract (IA-CDA-IA) --- 99-B.4.3 Form of Variable Annuity Contract (G-CDA-HD) * 99-B.4.4 Form of Variable Annuity Contracts (GIT-CDA-HO) * 99-B.4.5 Form of Variable Annuity Contract (GLIT-CDA-HO) * 99-B.4.6 Form of Variable Annuity Contract (GST-CDA-HO) * 99-B.4.7 Form of Variable Annuity Contract (I-CDA-HD) * 99-B.4.8 Form of Variable Annuity Contract (I-CDA-IA(RP)) * 99-B.4.9 Endorsements (EIGET-IC(R)), EIGF-IC, EGF-IC(SPD)) to Contract IA-CDA-IA * 99-B.4.10 Form of Endorsement (EGET-IC(R)) to Contract G-CDA-HD * and G-CDA-HF 99-B.4.11 Form of Endorsement (EIHDIASDO) to Contracts I-CDA-HD and IA-CDA-IA * 99-B.4.12 Form of Endorsement (EHOSDO) to Contracts GIT-CDA-HO, GLIT-CDA-HO and GST-CDA-HO *
*Incorporated by reference
Exhibit No. Exhibit Page - ----------- ------- ---- 99-B.4.13 Form of Endorsement (EHOTABLE97) to Contracts * GIT-CDA-HO, GLIT-CDA-HO AND GST-CDA-HO 99-B.4.14 Form of Endorsement (EGHDHFRPSDO97) to Contracts * G-CDA-HD and G-CDA-HF 99-B.4.15 Form of Endorsement (EFUND97) --- 99-B.5 Form of Variable Annuity Contract Application (710.00.16H) --- 99-B.6.1 Certification of Incorporation and By-Laws of Depositor * 99-B.6.2 Amendment of Certificate of Incorporation by Depositor * 99-B.8.1 Fund Participation Agreement between Aetna Life Insurance * and Annuity Company and Calvert Asset Management Company (Calvert Responsibility Invested Balanced Portfolio, formerly Calvert Socially Responsible Series) dated March 13, 1989 and amended December 27, 1993 99-B.8.2 Second Amendment dated January 1, 1996 to Fund Participation Agreement * between Aetna Life Insurance and Annuity Company and Calvert Asset Management Company (Calvert Responsibly Invested Balanced Portfolio, formerly Calvert Socially Responsible Series) dated March 13, 1989 and amended December 27, 1993 99-B.8.3 Third Amendment dated February 11, 1997 to Fund Participation Agreement * between Aetna Life Insurance and Annuity Company and Calvert Asset Management Company (Calvert Responsibility Invested Balanced Portfolio, formerly Calvert Socially Responsible Series) dated March 13, 1989 and amended December 27, 1993 and January 1, 1996
*Incorporated by reference _______________________________________________________________________________
Exhibit No. Exhibit Page - ----------- ------- ---- 99-B.8.4 Fourth Amendment dated February 28,1997 to Fund Participation Agreement --- between Aetna Life Insurance and Annuity Company and Calvert Asset Management Company (Calvert Responsibly Invested Balanced Portfolio, formerly Calvert Socially Responsible Series) dated March 13, 1989 and amended December 27, 1993, January 1,1996, and February 11,1997 99-B.8.5 Fund Participation Agreement between Aetna Life Insurance * and Annuity Company, Variable Insurance Products Fund and Fidelity Distributors Corporation dated February 1, 1994 and amended on December 15, 1994, February 1, 1995, May 1, 1995, January 1, 1996 and March 1, 1996 99-B.8.6 Fund Participation Agreement between Aetna Life Insurance * and Annuity Company, Variable Insurance Products Fund II and Fidelity Distributors Corporation dated February 1, 1994 and amended on December 15, 1994, February 1, 1995, May 1, 1995, January 1, 1996 and March 1,1996 99-B.8.7 Service Agreement between Aetna Life Insurance and Annuity Company and * Fidelity Investments Institutional Operations Company dated as of November 1, 1995 99-B.8.8 Fund Participation Agreement between Aetna Life Insurance and Annuity * Company and Janus Aspen Series dated April 19, 1994 and amended March 1, 1996 99-B.8.9 Fund Participation Agreement between Aetna Life Insurance and Annuity * Company and Lexington Management Corporation regarding Natural Resources Trust dated December 1, 1988 and amended February 11, 1991 99-B.9 Opinion and Consent of Counsel --- 99-B.10 Consent of Independent Auditors --- 99-B.13 Schedule for Computation of Performance Data * 99-B.15.1 Powers of Attorney * 99-B.15.2 Authorization for Signatures * 27 Financial Data Schedule ---
*Incorporated by reference EX-99.B4.1 2 Aetna Life Insurance and Annuity Company Home Office: 151 FARMINGTON AVE. HARTFORD, CONNECTICUT 06156 1-800-525-4225 Herein called Aetna Agrees to pay the benefits stated in this Contract. THE VARIABLE FEATURES OF THIS CONTRACT ARE DESCRIBED IN PARTS III AND IV. RIGHT TO CANCEL The Contract Holder may cancel this Contract within 10 days of receiving it, by returning this Contract along with a written notice to Aetna at the above address or to the agent from whom it was purchased. Within 7 days after it receives the notice of cancellation and this Contract at its Home Office, Aetna will return the entire consideration paid plus any increase or minus any decrease in the cash value of any funds allocated to the Separate Accounts. This page, the following pages, and the application make up the entire Contract. Signed at the Home Office on the Effective Date. /s/ Lucille M. Nickerson /s/ Dan Kearney Secretary President GROUP VARIABLE, FIXED, OR COMBINATION ANNUITY CONTRACT NON-PARTICIPATING ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT. TABLE OF CONTENTS I. GENERAL DEFINITIONS Page 1.01. Annuitant..............................................................4 1.02. Annuity................................................................4 1.03. Fixed Account..........................................................4 1.04. Fixed Annuity..........................................................4 1.05. Fund(s)................................................................4 1.06. General Account........................................................4 1.07. Guaranteed Accumulation Account........................................4 1.08. Participant............................................................4 1.09. Plan...................................................................4 1.10 Purchase Payments......................................................4 1.11. Separate Accounts......................................................4 1.12. Valuation Period (Period)..............................................4 1.13. Variable Annuity.......................................................4 II. GENERAL PROVISIONS 2.01. Change of Contract.....................................................5 2.02. Change of Fund(s)......................................................5 2.03. Non-Participating Contract.............................................5 2.04. Payments...............................................................6 2.05. State Laws.............................................................6 2.06. Control of Contract....................................................6 2.07. Designation of Beneficiary.............................................6 2.08. Misstatements and Adjustments..........................................6 2.09. Incontestability.......................................................6 2.10. Grace Period...........................................................6 2.11. Individual Certificates:...............................................6 III. PURCHASE PAYMENT, CURRENT VALUE AND SURRENDER PROVISIONS 3.01. Net Purchase Payment(s):...............................................7 3.02. Individual Accounts....................................................7 3.03. Guaranteed Accumulation Account (GA Account):..........................7 3.04. Guaranteed Interest Rate - Fixed Account...............................9 3.05. Experience Credits:....................................................9 3.06. Maintenance Fee........................................................9 3.07. Fund(s) Record Units - Separate Account................................9 3.08. Net Return Factor(s) - Separate Account................................9 3.09. Fund(s) Record Unit Value - Separate Account..........................10 3.10. Current Value.........................................................10 3.11. Transfer of Current Value from the Funds or GA Account................10 3.12. Transfer of Current Value from the Fixed Account......................10 3.13. Notice to the Contract Holder.........................................10 3.14 Sum Payable at Death (Before Annuity Payments Start):.................11 3.15. Surrender Value.......................................................11 3.16. Payment of Surrender Value............................................11 3.17. Reinstatement.........................................................11 2 IV. ANNUITY PROVISIONS 4.01. Choices to be Made....................................................12 4.02. Terms of Annuity Options..............................................12 4.03. Death of Annuitant/Beneficiary........................................13 4.04. Fund(s) Annuity Units - Separate Account..............................13 4.05. Fund(s) Annuity Unit Value - Separate Account.........................13 4.06. Annuity Options.......................................................14 V. SPECIAL PROVISIONS 5.01 Deferred Compensation Plan............................................22 5.02. Allocated Pension or Profit Sharing Plan..............................23 5.03. Unallocated Pension or Profit Sharing Plan............................24 5.04. Tax Deferred Annuity Plan.............................................26 5.05. Tax Deferred Annuity Plan (ERISA).....................................28 3 I. GENERAL DEFINITIONS 1.01. Annuitant - A person on whose life an Annuity has been effected under this Contract. 1.02. Annuity - Payment of an income: (a) for the life of one or two persons; (b) for a stated period; or, (c) for some combination of (a) and b). 1.03. Fixed Account - An accumulation option with a guaranteed minimum interest rate. Aetna may credit a higher rate which is not guaranteed. 1.04. Fixed Annuity - An Annuity with payments which do not vary in amount. 1.05. Fund(s) - The open-end registered management investment companies, (mutual funds) made available by Aetna under this Contract. 1.06. General Account - The Account holding the assets of Aetna, other than those assets held in the Separate Accounts. 1.07. Guaranteed Accumulation Account - An accumulation option which guarantees a stipulated rate of interest for a specified period of time. 1.08. Participant - A person who participates in the Plan named on the Specifications page of this Contract. 1.09. Plan - The Plan named on the Specifications page. The Plan is not a part of the Contract. Aetna is not bound by the terms of the Plan. 1.10 Purchase Payments - Payments made to Aetna. 1.11. Separate Accounts - Accounts set up by Aetna under the Connecticut Insurance Laws which purchase shares of the Fund(s). 1.12. Valuation Period (Period) - The period of time from the end of one business day on the New York Stock Exchange to the end of the next business day. 1.13. Variable Annuity - An Annuity with payments which vary with the net investment results of a Separate Account. 4 II. GENERAL PROVISIONS 2.01. Change of Contract: Only an authorized officer of Aetna may change the terms of this Contract. Aetna will notify the Contract Holder in writing at least 30 days before the effective date of any change. Any change will not affect the amount or terms of any Annuity which begins before the change. Any change that affects the following provisions of this Contract will not apply to any individual participating under this contract before the effective date of the change: (a) Net Purchase Payment(s); (b) Guaranteed GA Account Interest Rate; (c) Guaranteed Interest Rate - Fixed Account; (d) Net Return Factor(s) - Separate Account; (e) Current Value; (f) Surrender Value; (g) Fund(s) Annuity Unit Value - Separate Account; Any change that affects the Annuity Options and the tables for the Options can only be made: (1) No earlier than 12 months after the Effective Date of this Contract; and (2) No earlier than 12 months after the effective date of any such prior change. New Participants covered under this Contract on or after the effective date of any change will be subject to the change. If the Contract Holder does not agree to any change under this provision, no new Participants will be covered under this Contract. Aetna will continue to accept Purchase Payments for the Participants covered under this Contract before the change. This Contract may also be changed as required by federal or state law. 2.02. Change of Fund(s): Aetna, or the Separate Account may: (a) Change the Fund(s) which may be invested in by the Separate Account; and (b) Replace the shares of any Fund(s) held in the Separate Account with shares of any other Fund(s). Changes must be: (1) Approved by a majority vote of persons having an interest in the Separate Account and the Fund(s); or (2) Deemed necessary by Aetna under the Investment Company Act of 1940; or (3) Deemed necessary by Aetna to accomplish the purpose of the Separate Account. Aetna will notify the Contract Holder of any change. 2.03. Non-Participating Contract: The Contract Holder, Participants, or 5 beneficiaries will not have a right to share in the earnings of Aetna. 2.04. Payments: Aetna will make Annuity payments as and when due. Aetna will make other payments within 7 days of receipt at its Home Office of a written claim for payment which is in good order, except as provided in 3.16. 2.05. State Laws: This Contract complies with the laws of the state in which it is delivered. Any cash, death or Annuity payments are equal to or greater than the minimum required by such laws. Annuity tables for legal reserve valuation shall be as required by state law. Such tables may be different from Annuity tables used to determine Annuity payments. 2.06. Control of Contract: See Part V. 2.07. Designation of Beneficiary: See Part V. The beneficiary may be changed at any time. 2.08. Misstatements and Adjustments: If Aetna finds the age of any payee to be misstated, the correct facts will be used to adjust payments. 2.09. Incontestability: Aetna cannot cancel this Contract because of any error of fact on the application. 2.10. Grace Period:This Contract will remain in effect even if Purchase Payments are not continued. 2.11. Individual Certificates: - Aetna shall issue certificates to the Contract Holder or Participants as required by the state in which this Contract is delivered. The certificate will summarize certain provisions of the Contract. Certificates are for information only and are not a part of the Contract. 6 III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS 3.01. Net Purchase Payment(s): The actual Purchase Payment less any premium tax. As a rule, Aetna will deduct the premium tax when Annuity benefits are purchased (see Part IV). If Aetna determines that it must pay a premium tax when Purchase Payments are received or at any other time, it will deduct the tax at that time. The Net Purchase Payment(s) will be credited among: (a) the Fixed Account; (b) The Guaranteed Accumulation Account; and (c) the Fund(s) in which the Separate Account invests. Aetna must be told the percentage of the Net Purchase Payment(s) to be applied to each investment above. During any calendar year, Aetna may be told to change the investment mix four times. If additional changes are allowed, each may be subject to a fee of up to $10. 3.02. Individual Accounts: See Part V. 3.03. Guaranteed Accumulation Account (GA Account): An accumulation option which guarantees a stipulated rate of interest for a specified period of time (see (c) below). Amounts withdrawn before the end of the Guaranteed Term may be subject to a Market Value Adjustment (see (f) below). (a) Guaranteed Deposit Period (Deposit Period) - The period of time, usually a calendar month during which Net Purchase Payment(s) are accepted in the GA Account for a Guaranteed Term. (b) Guaranteed Term (Term) - A period of time, including the Deposit Period, for which interest rates are guaranteed on the Net Purchase Payment made to the GA Account. The Term may vary for each Purchase Payment and will be from approximately 1 to 5 years from the date the Deposit Period ends. (c) Guaranteed GA Account Interest Rates (Guaranteed Rates) - An interest rate will be declared at the start of a Deposit Period and guaranteed by Aetna for a Term; this interest rate will never be less than 4%. Aetna will add interest daily. Aetna may declare higher interim Guaranteed Rates for: (1) The Deposit Period and 12 months following the close of a Deposit Period; and (2) Any subsequent 12-month period until the end of the Term. The last period of the Term may be from 10-12 months. (d) Withdrawals - Amounts withdrawn from the GA Account before the end of the Term may be subject to a Market Value Adjustment (see (f) below). Withdrawals will be made from the Term with the oldest Deposit Period. During the 7 Deposit Period and the 90 days following the close of the Deposit Period, any amounts applied to the GA Account during the Deposit Period may not be withdrawn unless due to: (1) A surrender; or (2) To pay a premium for an Annuity Option. (e) Reinvestment - At least 18 days before the end of a Term, the Contract Holder will be mailed a notice of the next available Guaranteed Rates and Term. Amounts may be withdrawn from the ending Term on its final day without Market Value Adjustment. Aetna must receive written notice of such election at its Home Office at least three (3) business days before the end of the Term. Otherwise, amounts in the ending Term will be added to the new Term and will be subject to the new Guaranteed Rates. If this Contract is issued under a Tax Deferred Annuity Plan (see Specifications page), the above notice will be sent to the Participant(s). (f) Market Value Adjustment - There will be a Market Value Adjustment for a withdrawal from the GA Account before the end of a Term when due to: (1) A transfer; (2) A surrender; or (3) A payment of an Annuity premium for Annuity Option 2. The amount of the withdrawal will be adjusted to a market value amount as described below. The market value amount will be equal to the amount withdrawn multiplied by the following ratio: x --- 365 (1 + i) -------------------- x --- 365 (1 + j) -------------------- Where [bullet] i is the Deposit Period Yield; [bullet] j is the Current Yield; and [bullet] x is the number of days from the Wednesday of the week of withdrawal to the last day of the Term. The Deposit Period Yield will be determined as follows: [bullet] At the close of the last business day of each week of the Deposit Period, a yield will be computed as the average of the yields on the day of U.S. Treasury Notes which mature in the last quarter of the Term. [bullet] The Deposit Period Yield is then the average of those yields for the Deposit Period. If withdrawal is made prior to the close of the Deposit Period, it is the average of those yields on each week preceding withdrawal. The Current Yield is the average of the yields on the last business day 8 of the week preceding withdrawal on the same U.S. Treasury Notes included in the Deposit Period Yield. In the event that no U.S. Treasury Notes exist which mature in the last quarter of the Term, Aetna reserves the right to use the next available U.S. Treasury Notes that mature in a following quarter. There will be no Market Value Adjustment for withdrawals made to: [bullet] Satisfy the terms of the Sum Payable at Death provision; or [bullet] Pay a premium for Annuity Options 3 or 4. Aetna may make any change that affects the Market Value Adjustment with at least 30 days advance written notice to the Contract Holder. Any such change shall become effective for any new Term and for any present or future Participant. 3.04. Guaranteed Interest Rate - Fixed Account: On any Net Purchase Payment(s) made to the Fixed Account, Aetna will add interest daily at any annual rate no less than 4%. Aetna may add interest daily at any higher rate determined by its Board of Directors. 3.05 Experience Credits: Aetna may apply Experience Credits under this Contract. Any such Credit will be computed as decided by Aetna. 3.06. Maintenance Fee: See Part V. 3.07. Fund(s) Record Units - Separate Account: The portion of the Net Purchase Payment(s) applied to the Separate Account will determine the number of Fund(s) Record Units. This number is equal to the Net Purchase Payment applied to the Fund divided by the Record Unit Value (see 3.09) for the Valuation Period in which the Purchase Payment is received in good order. 3.08. Net Return Factor(s) - Separate Account: The Net Return Factors are used to compute all Separate Account values and payments for any Fund. The Net Return Factor for each Fund is equal to 1.0000000 plus the Net Return Rate. The Net Return Rate is equal to: (a) The value of the shares of the Fund held by the Separate Account at the end of a Valuation Period; minus (b) The value of the shares of the Fund held by the Separate Account at the start of the Valuation Period; plus or minus (c) Taxes (or reserves for taxes) on the Separate Account (if any); divided by (d) The total value of the Fund Record Units and Fund Annuity Units of the Separate Account (see 3.09 and 4.05) at the start of the Valuation Period; minus (e) A daily actuarial charge at an annual rate of 1.25% for Annuity mortality and expense risks and profit and a daily administrative charge which will not exceed .25% on an annual basis. A Net Return Rate may be more or less than 0. 9 The value of a share of the Fund is equal to the net assets of the Fund divided by the number of shares outstanding. The administrative charge may be changed annually except for amounts which have been used to purchase an Annuity. This charge will not exceed .25%. 3.09. Fund(s) Record Unit Value - Separate Account: The Fund(s) Record Unit Value is computed by multiplying the Net Return Factor for the current Valuation Period by the Fund(s) Record Unit Value for the previous Period. The dollar value of a Fund(s) Record Units, Separate Account assets, and Variable Annuity payments may go up or down due to investment gain or loss. 3.10. Current Value: The Current Value (See Part V) is equal to: (a) Any amounts in the Fixed Account, including Fixed Account interest added by Aetna; plus (b) Any amounts in the GA Account, including GA Account interest added by Aetna; plus (c) The sum of any Separate Account Record Unit value(s); plus (d) Any amount due to Experience Credits; less (e) Any Maintenance Fee(s) due. Current Value does not include amounts used to purchase an Annuity. 3.11. Transfer of Current Value from the Funds or GA Account: Before an Annuity Option is elected, all or any portion of the Current Value may be transferred from any Fund to any other Fund, to the Fixed Account, or to the GA Account's current Deposit Period. Any portion of the Current Value in the GA Account may be transferred to any Fund or to the Fixed Account. Transfers from the GA Account are subject to the Withdrawal and Market Value Adjustment provisions. (See 3.03) Four transfers of Current Value (excluding transfers from the GA Account at the end of a Guaranteed Term) can be made during a calendar year period. If additional transfers are allowed, each may be subject to a fee of up to $10. 3.12. Transfer of Current Value from the Fixed Account: 10% of the Current Value held in the Fixed Account may be transferred to any Fund(s) or to the GA Account's current Deposit Period. Such transfer will be: (a) Without charge; (b) Allowed once per calendar year; and (c) Not allowed under an Annuity Option. Aetna may, on a temporary basis, allow any larger percent to be transferred. The Current Value of the Fixed Account, as used above, is the value when the request is received at the Home Office of Aetna. 3.13. Notice to the Contract Holder: Aetna will notify the Contract Holder each year of: (a) The Value of any amounts held in: 10 (1) The Fixed Account; (2) The GA Account; and (3) The Fund(s) for the Separate Account; and (b) The number of any Fund(s) Record Units; and (c) The Fund(s) Record Unit Value(s). Such number or values will be as of a date no more than 60 days before the date of the notice. If this Contract is issued for a Tax Deferred Annuity Plan, the above notice will be sent to each Participant. 3.14. Sum Payable at Death (Before Annuity Payments Start): See Part V. 3.15. Surrender Value: See Part V. 3.16. Payment of Surrender Value: Under certain emergency conditions, Aetna may defer payment: (a) For a period of up to 6 months (unless not allowed by state law); or (b) As provided by federal law. Aetna may pay any Fixed Account Surrender Value with interest in equal payments over a period not to exceed 60 months when the amounts held in the Fixed Account under this Contract exceeds $500,000. This will apply only if the sum of the amounts surrendered within the past 12 months exceeds 20% of such Fixed Account amount. Interest, as used above, will not be more than two percentage points below any rate determined prospectively by the Board of Directors for this class of Contract. In no event, will the interest rate be less than 4%. 3.17. Reinstatement: All or a portion of the proceeds of a full surrender of this Contract may be reinvested within 30 days after the surrender if allowed by law. Any Maintenance Fee and Surrender Fee charged at the time of surrender on the amount being reinvested will be included in the reinstatement. Any Market Value Adjustment deducted from GA Account surrenders will not be included in the reinstatement. Amounts will be reinstated among the Fixed Account, GA Account, and Separate Account in the same proportion as they were at the time of surrender. Any amounts reinstated to the GA Account will be credited to the current Deposit Period. The number of Record Units reinstated will be based on the Record Unit Value(s) next computed after receipt at Aetna's Home Office of the reinstatement request and the amount to be reinvested. Any Maintenance Fee which falls due after the surrender and before the reinstatement will be deducted from the amount reinstated. Reinstatement is permitted only once. 11 IV. ANNUITY PROVISIONS 4.01. Choices to be Made: An Annuity Option may be elected by telling Aetna to pay all or any portion of the Current Value (minus any premium tax) as a premium for an Annuity under Option 2, 3, or 4 (see 4.06). The first Annuity payment must generally be made no later than the first day of the month following the Annuitant's 75th birthday. Aetna may be told to make the first Annuity payment during any prior month. When an Option is chosen, Aetna must also be told if payments are to be made other than monthly and to pay: (a) A Fixed Annuity using the General Account; (b) A Variable Annuity using any of the Fund(s) made available by Aetna for Annuity purposes; or (c) A combination of (a) and (b). If a Fixed Annuity is chosen, Aetna will add interest daily at an annual rate no less than 3.5%. Aetna may add interest daily at any higher rate. If a Variable Annuity is chosen, an Assumed Annual Net Return Rate of 5% may be chosen. If not chosen, Aetna will use an Assumed Annual Net Return Rate of 3.5%. 4.02. Terms of Annuity Options: (a) When payments start, the age of the Annuitant plus the number of years for which payments are guaranteed must not exceed 95. (b) The present value of the expected payments to the Annuitant when payments start shall be more than 50% of the present value of the total expected payments to be made; this restriction does not apply if Option 4 is chosen and the second Annuitant is the spouse of the Annuitant. (c) No choice of any Annuity Option may be made if the first payment would be less than $20 or if the total payments in a year would be less than $100. (d) If a Fixed Annuity under Option 2, 3 or 4 is chosen and a larger payment would result from applying the Surrender Value to a current Aetna single premium immediate Annuity, Aetna will make the larger payment. (e) Age, where used in the following tables, means age on the birthday closest to the date of the first payment. The Annuity rates for Options 3 and 4 are based on mortality from 1983 Table a. The Annuity rates do not differ by sex. (f) Assumed Annual Net Return Rate is the interest rate used to determine the amount of the first Annuity payment under a Variable Annuity. The Separate Account must earn this rate plus enough to cover the mortality and expense risk and administrative fee charges if future Variable Annuity payments are to remain level. 12 4.03. Death of Annuitant/Beneficiary: When an Annuitant dies under Options 2 and 3, the present value of any remaining guaranteed payments will be paid in one sum to the beneficiary, or upon election by the beneficiary, any remaining payments will continue to the beneficiary. If no beneficiary exists, the present value of any remaining guaranteed payments will be paid in one sum to the estate of the Annuitant. If a beneficiary dies while under Option 1 or while receiving Annuity payments, the present value of any remaining payments will be paid in one sum to the estate of the beneficiary. The interest rate used to determine the first payment will be used to calculate the present value. 4.04. Fund(s) Annuity Units - Separate Account: The number of Fund(s) Annuity Units is based on the amount of the first Variable Annuity payment which is equal to: (a) The portion of the Current Value (minus any premium tax) applied to pay a Variable Annuity; divided by (b) 1,000; multiplied by (c) The payment rate for the Option chosen. Such amount, or portion, of the Variable Payment will be divided by the appropriate Fund(s) Annuity Unit Value (see 4.05) on the tenth Valuation Period before the due date of the first payment to determine the number of each Fund Annuity Units. The number of each Fund Annuity Units remains fixed. Each future payment is equal to the sum of the products of each Fund Annuity Unit Value multiplied by the appropriate number of Units. The Fund Annuity Unit Value on the tenth Valuation Period prior to the due date of the payment is used. 4.05. Fund(s) Annuity Unit Value - Separate Account: For any Valuation Period, a Fund(s) Annuity Unit Value is equal to: (a) The Value for the previous Period; multiplied by (b) The Net Return Factor(s) (see 3.08) for the Period; multiplied by (c) A factor to reflect the Assumed Annual Net Return Rate. The factor for 3.5% per year is .9999058; for 5% per year it is .9998663. The dollar value of a Fund(s) Annuity Unit Values and payments may go up or down due to investment gain or loss. If Variable Annuity payments are not to decrease, Aetna must earn a gross return on the assets of the Separate Account of: [bullet] 4.75% on an annual basis plus an annual return of up to .25% needed to offset the administrative charge set at the time Annuity payments commence, if an Assumed Annual Net Return Rate of 3.5% is chosen; or [bullet] 6.25% on an annual basis plus an annual return of up to .25% needed to offset the administrative charge set at the time Annuity payments commence if an Assumed Annual Net Return Rate of 5% is chosen. Payments shall not be changed due to changes in the mortality or expense results or administrative charges. 13 4.06. Annuity Options: Option 1 - Payment of Interest on Sum Left with Aetna - This Option may be used only by the beneficiary when the Participant dies before Aetna has started paying an Annuity. A portion or all of the sum paid upon death may be held under this Option and will be held in the General Account of Aetna at interest (see 4.01). The beneficiary may later tell Aetna to: (a) Pay a portion or all of the sum held by Aetna; or (b) Apply a portion or all of the sum held by Aetna to any Annuity Option below. Option 2 - Payments for a Stated Period of Time - An Annuity will be paid for the number of years chosen. The number of years must be at least 3 and not more than 30. This Option can only be elected on a fixed basis. Option 3 - Life Income - An Annuity will be paid for the life of the Annuitant. If also chosen, Aetna will guarantee payments for 60, 120, 180, or 240 months. Option 4 - Life Income for Two Payees - An Annuity will be paid during the lives of the Annuitant and a second Annuitant. At the death of either, payments will continue to the survivor. When this Option is chosen, a choice must be made of: (a) 100% of the payment to continue to the survivor; (b) 66 2/3% of the payment to continue to the survivor; (c) 50% of the payment to continue to the survivor; or (d) Payments for a minimum of 120 months with 100% of the payment to continue to the survivor. Other Options - Aetna may make other options available as allowed by the laws of the state in which this Contract is delivered. 14 OPTION 2 PAYMENTS FOR A STATED PERIOD OF TIME AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5%; and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Years of Amount of Years of Amount of Years of Amount of Payments Payments Payments Payments Payments Payments -------- -------- -------- -------- -------- -------- 3 $29.19 13 $7.94 22 $5.39 4 22.27 14 7.49 23 5.24 5 18.12 15 7.10 24 5.09 6 15.35 16 6.76 25 4.96 7 13.38 17 6.47 26 4.84 8 11.90 18 6.20 27 4.73 9 10.75 19 5.97 28 4.63 10 9.83 20 5.75 29 4.53 11 9.09 21 5.56 30 4.45 12 8.46
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Years of Amount of Years of Amount of Years of Amount of Payments Payments Payments Payments Payments Payments -------- -------- -------- -------- -------- -------- 3 $29.80 13 $8.64 22 $6.17 4 22.89 14 8.20 23 6.02 5 18.74 15 7.82 24 5.88 6 15.99 16 7.49 25 5.76 7 14.02 17 7.20 26 5.65 8 12.56 18 6.94 27 5.54 9 11.42 19 6.71 28 5.45 10 10.51 20 6.51 29 5.36 11 9.77 21 6.33 30 5.28 12 9.16
15 OPTION 3 LIFE INCOME AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5% Payments Guaranteed for a Stated Period of Months
Age of Annuitant None 60 120 180 240 --------- ---- -- --- --- --- 50 $4.34 $4.34 $4.31 $4.27 $4.22 51 4.41 4.40 4.38 4.33 4.27 52 4.48 4.47 4.45 4.40 4.32 53 4.56 4.55 4.52 4.46 4.38 54 4.64 4.63 4.59 4.53 4.44 55 4.72 4.71 4.67 4.60 4.50 56 4.81 4.80 4.75 4.67 4.56 57 4.91 4.89 4.84 4.75 4.62 58 5.01 4.99 4.93 4.83 4.69 59 5.12 5.10 5.03 4.92 4.75 60 5.23 5.21 5.13 5.00 4.82 61 5.36 5.33 5.24 5.09 4.88 62 5.49 5.45 5.35 5.19 4.95 63 5.63 5.59 5.47 5.28 5.02 64 5.78 5.73 5.60 5.38 5.08 65 5.94 5.89 5.73 5.48 5.15 66 6.11 6.05 5.87 5.58 5.21 67 6.29 6.22 6.02 5.69 5.27 68 6.49 6.41 6.17 5.79 5.33 69 6.70 6.60 6.33 5.90 5.38 70 6.92 6.81 6.49 6.00 5.43 71 7.17 7.04 6.66 6.10 5.48 72 7.43 7.27 6.84 6.20 5.52 73 7.71 7.53 7.02 6.30 5.55 74 8.02 7.80 7.20 6.39 5.59 75 8.35 8.08 7.38 6.48 5.62
Rate for ages not shown will be provided on request and will be computed on a basis consistent with the rates in the above tables. 16 OPTION 3 LIFE INCOME AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Variable Annuity with Assumed Net Return Rate of 5.0% Payments Guaranteed for a Stated Period of Months
Age of Annuitant None 60 120 180 240 --------- ---- -- --- --- --- 50 $5.26 $5.25 $5.22 $5.17 $5.11 51 5.33 5.32 5.28 5.23 5.15 52 5.40 5.38 5.34 5.29 5.20 53 5.47 5.45 5.41 5.35 5.26 54 5.54 5.53 5.48 5.41 5.31 55 5.63 5.61 5.56 5.47 5.36 56 5.71 5.69 5.63 5.54 5.42 57 5.80 5.78 5.72 5.61 5.47 58 5.90 5.88 5.81 5.69 5.53 59 6.01 5.98 5.90 5.77 5.59 60 6.12 6.09 6.00 5.85 5.65 61 6.24 6.21 6.10 5.93 5.71 62 6.37 6.33 6.21 6.02 5.77 63 6.51 6.46 6.33 6.11 5.83 64 6.66 6.60 6.45 6.20 5.89 65 6.82 6.75 6.57 6.30 5.95 66 6.99 6.91 6.71 6.39 6.01 67 7.17 7.08 6.85 6.49 6.06 68 7.36 7.27 6.99 6.59 6.12 69 7.57 7.46 7.15 6.69 6.17 70 7.80 7.67 7.30 6.78 6.21 71 8.05 7.89 7.47 6.88 6.25 72 8.31 8.13 7.64 6.97 6.29 73 8.59 8.38 7.81 7.06 6.33 74 8.90 8.64 7.99 7.15 6.36 75 9.23 8.93 8.16 7.23 6.38
Rate for ages not shown will be provided on request and will be computed on a basis consistent with the rates in the above tables. 17 OPTION 4 LIFE INCOME FOR TWO PAYEES JOINT AND LAST SURVIVOR ANNUITY 100% TO THE SURVIVOR NO MINIMUM PERIOD AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5% Age of Second Annuitant
Age of Annuitant 45 50 55 60 65 70 75 80 85 --------- -- -- -- -- -- -- -- -- -- 45 $3.69 $3.75 $3.81 $3.84 $3.87 $3.90 $3.91 $3.92 $3.92 50 3.75 3.89 3.97 4.04 4.09 4.13 4.15 4.17 4.18 55 3.81 3.97 4.16 4.27 4.35 4.42 4.47 4.50 4.51 60 3.84 4.04 4.27 4.51 4.66 4.78 4.86 4.92 4.95 65 3.87 4.09 4.35 4.66 4.99 5.19 5.35 5.46 5.53 70 3.90 4.13 4.42 4.78 5.19 5.67 5.95 6.17 6.31 75 3.91 4.15 4.47 4.86 5.35 5.95 6.64 7.04 7.34 80 3.92 4.17 4.50 4.92 5.46 6.17 7.04 8.04 8.63 85 3.92 4.18 4.51 4.95 5.53 6.31 7.34 8.63 10.05
Rates for a Variable Annuity with Assumed Net Return Rate of 5% Age of Second Annuitant
Age of Annuitant 45 50 55 60 65 70 75 80 85 --------- -- -- -- -- -- -- -- -- -- 45 $4.63 $4.68 $4.73 $4.77 $4.80 $4.82 $4.84 $4.85 $4.86 50 4.68 4.80 4.88 4.95 5.00 5.04 5.06 5.08 5.10 55 4.73 4.88 5.04 5.15 5.24 5.30 5.35 5.39 5.41 60 4.77 4.95 5.15 5.37 5.52 5.63 5.72 5.79 5.83 65 4.80 5.00 5.24 5.52 5.83 6.04 6.20 6.31 6.39 70 4.82 5.04 5.30 5.63 6.04 6.49 6.77 6.99 7.15 75 4.84 5.06 5.35 5.72 6.20 6.77 7.45 7.86 8.16 80 4.85 5.08 5.39 5.79 6.31 6.99 7.86 8.84 9.43 85 4.86 5.10 5.41 5.83 6.39 7.15 8.16 9.43 10.86
18 OPTION 4 LIFE INCOME FOR TWO PAYEES JOINT AND LAST SURVIVOR ANNUITY 662/3% TO THE SURVIVOR NO MINIMUM PERIOD AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5% Age of Second Annuitant
Age of Annuitant 45 50 55 60 65 70 75 80 85 ------------ -- -- -- -- -- -- -- -- -- 45 $3.94 $4.05 $4.18 $4.32 $4.48 $4.66 $4.84 $5.02 $5.19 50 4.05 4.20 4.35 4.51 4.69 4.89 5.09 5.30 5.49 55 4.18 4.35 4.54 4.73 4.95 5.18 5.42 5.65 5.87 60 4.32 4.51 4.73 4.99 5.25 5.53 5.82 6.11 6.37 65 4.48 4.69 4.95 5.25 5.61 5.97 6.33 6.69 7.02 70 4.66 4.89 5.18 5.53 5.97 6.49 6.96 7.43 7.88 75 4.84 5.09 5.42 5.82 6.33 6.96 7.73 8.39 9.02 80 5.02 5.30 5.65 6.11 6.69 7.43 8.39 9.54 10.46 85 5.19 5.49 5.87 6.37 7.02 7.88 9.02 10.46 12.15
Rates for a Variable Annuity with Assumed Net Return Rate of 5% Age of Second Annuitant
Age of Annuitant 45 50 55 60 65 70 75 80 85 ------------ -- -- -- -- -- -- -- -- -- 45 $4.87 $4.99 $5.12 $5.27 $5.44 $5.64 $5.86 $6.09 $6.30 50 4.99 5.12 5.26 5.43 5.63 5.85 6.09 6.33 6.57 55 5.12 5.26 5.44 5.63 5.85 6.11 6.38 6.65 6.92 60 5.27 5.43 5.63 5.87 6.14 6.44 6.75 7.07 7.38 65 5.44 5.63 5.85 6.14 6.49 6.84 7.23 7.62 8.00 70 5.64 5.85 6.11 6.44 6.84 7.35 7.84 8.34 8.83 75 5.86 6.09 6.38 6.75 7.23 7.84 8.60 9.28 9.93 80 6.09 6.33 6.65 7.07 7.62 8.34 9.28 10.42 11.35 85 6.30 6.57 6.92 7.38 8.00 8.83 9.93 11.35 13.04
19 OPTION 4 LIFE INCOME FOR TWO PAYEES JOINT AND LAST SURVIVOR ANNUITY 50% TO THE SURVIVOR NO MINIMUM PERIOD AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5% Age of Second Annuitant
Age of Annuitant 45 50 55 60 65 70 75 80 85 ------------ -- -- -- -- -- -- -- -- -- 45 $4.07 $4.22 $4.40 $4.61 $4.87 $5.17 $5.49 $5.84 $6.18 50 4.22 4.37 4.56 4.79 5.06 5.39 5.75 6.13 6.51 55 4.40 4.56 4.76 5.00 5.31 5.66 6.06 6.49 6.91 60 4.61 4.79 5.00 5.27 5.61 6.01 6.46 6.95 7.43 65 4.87 5.06 5.31 5.61 5.99 6.44 6.96 7.54 8.11 70 5.17 5.39 5.66 6.01 6.44 6.99 7.61 8.29 9.00 75 5.49 5.75 6.06 6.46 6.96 7.61 8.43 9.29 10.17 80 5.84 6.13 6.49 6.95 7.54 8.29 9.29 10.54 11.71 85 6.18 6.51 6.91 7.43 8.11 9.00 10.17 11.71 13.57
Rates for a Variable Annuity with Assumed Net Return Rate of 5% Age of Second Annuitant
Age of Annuitant 45 50 55 60 65 70 75 80 85 ------------ -- -- -- -- -- -- -- -- -- 45 $5.01 $5.15 $5.33 $5.56 $5.83 $6.17 $6.55 $6.98 $7.49 50 5.15 5.29 5.48 5.71 6.01 6.36 6.78 7.23 7.68 55 5.33 5.48 5.66 5.91 6.23 6.61 7.05 7.54 8.05 60 5.56 5.71 5.91 6.16 6.51 6.93 7.42 7.96 8.53 65 5.83 6.01 6.23 6.51 6.87 7.34 7.89 8.51 9.16 70 6.17 6.36 6.61 6.93 7.34 7.87 8.51 9.23 10.00 75 6.55 6.78 7.05 7.42 7.89 8.51 9.33 10.20 11.14 80 6.98 7.23 7.54 7.96 8.51 9.23 10.20 11.44 12.64 85 7.40 7.68 8.05 8.53 9.16 10.00 11.14 12.64 14.51
20 OPTION 4 LIFE INCOME FOR TWO PAYEES JOINT AND LAST SURVIVOR ANNUITY 100% TO THE SURVIVOR 120 MONTHS MINIMUM PERIOD AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5% Age of Second Annuitant
Age of Annuitant 45 50 55 60 65 70 75 80 85 --------- -- -- -- -- -- -- -- -- -- 45 $3.69 $3.75 $3.80 $3.84 $3.87 $3.89 $3.91 $3.91 $3.92 50 3.75 3.89 3.97 4.04 4.09 4.13 4.15 4.16 4.17 55 3.80 3.97 4.15 4.26 4.35 4.41 4.46 4.48 4.49 60 3.84 4.04 4.26 4.50 4.65 4.76 4.84 4.89 4.91 65 3.87 4.09 4.35 4.65 4.98 5.17 5.31 5.41 5.46 70 3.89 4.13 4.41 4.76 5.17 5.62 5.87 6.05 6.15 75 3.91 4.15 4.46 4.84 5.31 5.87 6.48 6.79 6.98 80 3.91 4.16 4.48 4.89 5.41 6.05 6.79 7.50 7.83 85 3.92 4.17 4.49 4.91 5.46 6.15 6.98 7.83 8.50
Rates for a Variable Annuity with Assumed Net Return Rate of 5% Age of Second Annuitant
Age of Annuitant 45 50 55 60 65 70 75 80 85 ------------ -- -- -- -- -- -- -- -- -- 45 $4.63 $4.68 $4.73 $4.77 $4.80 $4.82 $4.84 $4.85 $4.85 50 4.68 4.80 4.88 4.94 4.99 5.03 5.06 5.07 5.08 55 4.73 4.88 5.04 5.14 5.23 5.29 5.34 5.37 5.38 60 4.77 4.94 5.14 5.37 5.51 5.62 5.70 5.75 5.78 65 4.80 4.99 5.23 5.51 5.82 6.00 6.15 6.24 6.30 70 4.82 5.03 5.29 5.62 6.00 6.44 6.68 6.86 6.96 75 4.84 5.06 5.34 5.70 6.15 6.68 7.27 7.57 7.76 80 4.85 5.07 5.37 5.75 6.24 6.86 7.57 8.26 8.58 85 4.85 5.08 5.38 5.78 6.30 6.96 7.76 8.58 9.23
21 V. SPECIAL PROVISIONS The Special Provisions section which applies to this Contract is shown on the Specifications page under Type of Plan. The other sections under Special Provisions do not apply. 5.01 Deferred Compensation Plan (a) Control of Contract: All rights in this Contract rest with the Contract Holder, who is entitled to all amounts held under this Contract. The Contract Holder, or authorized designee of the Contract Holder (as allowed by law), may make any choices allowed by this Contract with respect to Individual Accounts. Any choices made under this Contract must be in writing. Until receipt of such choices in its Home Office, Aetna may rely on any prior choices made. This Contract and any Individual Accounts are not subject to the claims of any creditors of Participants except to the extent permitted by law. (b) Designation of Beneficiary: The beneficiary shall be the Contract Holder. (c) Individual Accounts: Aetna will maintain Individual Account(s) as instructed by the Contract Holder. In addition to any Purchase Payments stated to be made under this Contract, a lump-sum Purchase Payment(s), of not less than a minimum amount stated by Aetna, may be made on behalf of one or more Participants. Aetna may maintain an Individual Account for each lump-sum payment. (d) Maintenance Fee: The Maintenance Fee (see 6.01) will be deducted from the Current Value on the anniversary of the Individual Account Effective Date and on surrender of the entire Individual Account. (e) Current Value: The Current Value as determined in 3.10 of an Individual Account at the end of a Valuation Period. (f) Sum Payable at Death (Before Annuity Payments Start): Aetna will pay the Current Value as directed by the Contract Holder if: (1) The Participant dies before Annuity payments start; and (2) The notice of death is received in good order by Aetna. The sum paid will be the Current Value on the date the notice is received at Aetna's Home Office. The amount paid from the Fixed Account will not be less than the Net Purchase Payments allocated to the Fixed Account for the Participant (less any prior transfers (see 3.12), surrenders, Maintenance Fees, or amounts used to purchase Annuity Options). The beneficiary may 22 choose to apply all or any part of the proceeds to an Annuity Option (see Part IV). (g) Surrender Value: After deduction of the Maintenance Fee (if any), Aetna will reduce the amount payable upon surrender of any portion of the Individual Account(s) by a Surrender Fee. The Surrender Fee will be in accordance with the Surrender Fee table in 6.02. The Fee on a total surrender of an Individual Account will not exceed 8.5% of the Purchase Payments made to the Account. (h) The following sections 5.02, 5.03, 5.04 and 5.05 of the Special Provisions do not apply to this Contract. 5.02. Allocated Pension or Profit Sharing Plan (a) The preceding section 5.01 of the Special Provisions does not apply to this Contract. (b) Control of Contract: All rights in this Contract rest with the Contract Holder. The Contract Holder owns all amounts held under this Contract. The Contract Holder, or authorized designee of the Contract Holder (as allowed by law), may make any choices allowed by this Contract with respect to Individual Accounts. Any choices under this Contract must be in writing. Until receipt of such choices in its Home Office, Aetna may rely on any prior choices made. This Contract and any Individual Accounts are not subject to the claims of any creditors except to the extent permitted by law. Any payment(s) made under this Contract to other than the Contract Holder must be in compliance with the provisions of the Retirement Equity Act of 1984 (Act). At the time payment is requested or an Annuity Option is elected by the Contract Holder, Aetna will require the Contract Holder to certify the payment option is elected in compliance with the Act. In the absence of such certification, payment will be made to the Contract Holder. (c) Designation of Beneficiary: The beneficiary shall be the Contract Holder. (d) Individual Accounts: If instructed by the Contract Holder, Aetna will maintain two Individual Accounts for each Participant; these will be a Participant's Individual Account for crediting employee Net Purchase Payments and a Plan Individual Account for crediting employer Net Purchase Payments. (e) Maintenance Fee: The Maintenance Fee (see 6.01) will be deducted from the Current Value on each anniversary of the Individual Account Effective Date and upon surrender of the entire Individual Account. (f) Current Value: The Current Value as determined in 3.10 of an 23 Individual Account at the end of a Valuation Period. (g) Sum Payable at Death (Before Annuity Payments Start): Aetna will pay the Current Value to the beneficiary if: (1) The Participant dies before Annuity payments start; and (2) The notice of death is received in good order by Aetna. The sum paid will be the Current Value of the Participant's Individual Account on the date when the notice is received at Aetna's Home Office. The amount paid from the Fixed Account will not be less than the Net Purchase Payments allocated to the Fixed Account under the Participant's Individual Account (less any prior transfers (see 3.12), surrenders, Maintenance Fees, or amounts used to purchase Annuity Options). The beneficiary may choose to apply all or part of the payment to an Annuity Option (see Part IV). (h) Surrender Value: After deduction of the Maintenance Fee ( if any), Aetna will reduce the amount payable upon surrender of any portion of the Individual Account(s) by a Surrender Fee. The Surrender Fee will be in accordance with the Surrender Fee table in 6.02. (i) The following Sections 5.03, 5.04 and 5.05 of the Special Provisions do not apply to this Contract. 5.03. Unallocated Pension or Profit Sharing Plan (a) The preceding Sections 5.01 and 5.02 of the Special Provisions do not apply to this Contract. (b) Control of Contract: All rights in this Contract rest with the Contract Holder. The Contract Holder owns all amounts held under this Contract. The Contract Holder, or authorized designee of the Contract Holder (as allowed by law), may make any choices allowed by this Contract. Any choices under this Contract must be in writing. Until receipt of such choices in its Home Office, Aetna may rely on any prior choices made. This Contract is not subject to the claims of any creditor except to the extent permitted by law. Any payment(s) made under this Contract to other than the Contract Holder must be in compliance with the provisions of the Retirement Equity Act of 1984 (Act). At the time payment is requested or an Annuity Option is elected by the Contract Holder, Aetna will require the Contract Holder to certify the payment option is elected in compliance with the Act. In the absence of such certification, payment will be made to the Contract Holder. 24 (c) Designation of Beneficiary: The beneficiary shall be the Contract Holder. (d) Individual Accounts: There are no Individual Accounts under this Contract. Aetna will maintain one unallocated Plan Account in the name of the Contract Holder to which Net Purchase Payment(s) will be credited. (e) Maintenance Fee: The Maintenance Fee (see 6.01) will be deducted from the Plan Account Current Value on each anniversary of the Plan Account effective date and on surrender of the entire Plan Account. (f) Current Value: The Current Value as determined in 3.10 of the Plan Account at the end of a Valuation Period. (g) Sum Payable at Death (Before Annuity Payments Start): Aetna will pay to the beneficiary any portion of the Plan Account if: (1) The Participant dies before Annuity payments start; and (2) The notice of death is received in good order by Aetna. The beneficiary may choose to apply all or any part of the payment to an Annuity Option (see Part IV). (h) Surrender Value: After deduction of the Maintenance Fee (if any), the amount paid by Aetna upon surrender of any portion of the Plan Account will be reduced by a Surrender Fee. The Surrender Fee will be in accordance with the Surrender Fee table in 6.02. (i) The following Sections 5.04 and 5.05 of the Special Provisions do not apply to this Contract. 25 5.04. Tax Deferred Annuity Plan (a) The preceding Sections 5.01, 5.02 and 5.03 of the Special Provisions do not apply to this Contract. (b) Control of Contract: This is a Contract between the Contract Holder and Aetna only to satisfy the "purchase" requirements of Section 403(b)(1) of the Internal Revenue Code of 1954, as amended. The Contract Holder has no right, title, or interest in the amounts held under the Contract either by reason of remitting Purchase Payments or applying for this Contract. Each Participant shall own all amounts held in his or her Individual Account. Each Participant may make any choices allowed by this Contract for his or her Individual Account. Choices made under this Contract must be in writing. Until receipt of such choices in its Home Office, Aetna may rely on any previous choices made. This Contract and any Individual Accounts shall not be subject to the claims of any creditors. This Contract and any Individual Accounts are nonassignable, except to Aetna in the event of a loan, and nontransferable. In the event a loan against an Individual Account is requested, however, the Current Value of the Individual Account necessary to cover the loan amount plus interest must be assigned to Aetna. (c) Designation of Beneficiary: Each Participant shall name a beneficiary. (d) Individual Accounts: Aetna will maintain an Individual Account for each Participant. In addition to any Purchase Payments stated to be made to this Contract, a lump-sum Purchase Payment(s), of not less than a minimum amount stated by Aetna, may be made on behalf of one or more Participants. Aetna may maintain an Individual Account for each lump-sum payment. (e) Maintenance Fee: The Maintenance Fee (see 6.01) will be deducted from the Current Value on each anniversary of the Individual Account Effective Date and upon surrender of the entire Individual Account. (f) Current Value: The Current Value as determined in 3.10 of a Participant's Individual Account at the end of a Valuation Period. (g) Loan Value: During the Accumulation Period, a Participant may request a loan from his or her Individual Account Value in place of a partial withdrawal by submitting a loan request form to Aetna's Home Office. A loan may not be requested within 12 months of any prior loan request. If the loan meets the requirements described below, it will not be taxable: 26 (1) The loan amount must be at least $5,000. The loan amount when added to the outstanding balance of all previous loans may not exceed the lesser of: [bullet] One-half of the Individual Account Current Value plus the outstanding balance of all previous loans under the Plan Account; or [bullet] $50,000. Loans can only be made from those Individual Account Values held in the Fund(s) and the Fixed Account. Loans may not be made against amounts held in the GA Account although such values are included in the determination of Individual Account Value. If a Participant intends to request a loan against any portion of the GA Account, that portion must be transferred to any Fund(s) or to the Fixed Account. The transferred amount will be subject to the Withdrawal and Market Value Adjustment provisions. When a loan is made, the number of Accumulation Units equal to the loan amount will be withdrawn from the Individual Account. Accumulation Units taken from an Individual Account to provide a loan do not participate in the investment experience of the related investment media. Unless instructed otherwise, the amount withdrawn will be allocated on a pro rata basis among the Fixed Account and the Fund(s). (2) Loan interest will accrue on a daily basis at the rate of 3% annually and must be paid in full each year. The interest must be paid directly to Aetna by the Participant. If interest is not paid when due, the entire loan amount plus interest will be treated as a taxable surrender under the terms of the Contract. (3) Repayment of a loan can be made at any time within 5 years from the date the loan was first made. Any unpaid portion of a loan must be repaid at the end of 5 years, upon election of an Annuity Option or upon full surrender of the Individual Account, whichever occurs first. Aetna may require all outstanding loans be paid if the Individual Account Value falls below an amount equal to 25% of total loans outstanding. Any loan and accrued interest not repaid when due will be considered a taxable surrender with 27 appropriate deferred sales charges deducted from the Individual Account Value. (h) Sum Payable at Death (Before Annuity Payments Start): The Current Value payable under the terms of this section will be reduced by the amount of the accrued interest on any outstanding loan. Aetna will pay the Current Value to the beneficiary if: (1) The Participant dies before Annuity payments start; and (2) The notice of death is received in good order by Aetna. The sum paid will be the Current Value on the date the notice is received at Aetna's Home Office. The amount paid from the Fixed Account will not be less than the Net Purchase Payment(s) allocated to the Fixed Account under the Participant's Individual Account (less any prior transfers (see 3.12), surrenders, Maintenance Fees, or amounts used to purchase Annuity Options). The beneficiary, if a spouse, may choose to apply all or any portion of the payment to an Annuity Option. If the beneficiary is not a spouse, all of the payment must either be applied only to Annuity Option 1 or 2 within one year of the Participant's death or be paid to the beneficiary within 5 years of the death of the Participant (see Part IV). If no beneficiary exists, the payment will be made to the estate of the Participant. (i) Annuity Payments to Beneficiary: In no event may any payments to the beneficiary under an Annuity Option extend beyond: (1) The life of the beneficiary; or (2) Any certain period greater than the beneficiary's life expectancy. (j) Surrender Value: After deduction of the Maintenance Fee (if any), the amount payable by Aetna upon the surrender of any portion of the Individual Account(s) shall be reduced by a Surrender Fee. The Surrender Fee will be in accordance with the Surrender Fee table in 6.02. The Fee on a total surrender of an Individual Account will not exceed 8.5% of the actual Purchase Payments made to that Account. (k) The following Section 5.05 of the Special Provisions does not apply to this Contract. 5.05. Tax Deferred Annuity Plan (ERISA) (a) The preceding Sections 5.01, 5.02, 5.03 and 5.04 of the Special Provisions do not apply to this Contract. (b) Control of Contract: This is a Contract between the Contract Holder and Aetna only to satisfy 28 the "purchase" requirements of Section 403(b)(1) of the Internal Revenue Code of 1954, as amended. The Contract Holder has no right, title, or interest in the amounts held under the Contract either by reason of remitting Purchase Payments or applying for this Contract. The Contract Holder shall notify Aetna in writing of the applicability of Title 1 of the Employee Retirement Income Security Act of 1974 as amended by subsequent law including the Retirement Equity Act of 1984 (Act) to the Plan. Aetna shall rely on the Contract Holder's determination and representation of applicability. Each Participant shall own all amounts held in his or her Individual Account. Each Participant may make any choices allowed by this Contract for his or her Individual Account. Choices made under this Contract must be in writing. Until receipt of such choices in its Home Office, Aetna may rely on any previous choices made. This Contract and any Individual Accounts shall not be subject to the claims of any creditors. This Contract and any Individual Accounts are nonassignable, except to Aetna in the event of a loan or pursuant to a "qualified domestic relations order" as set forth under the Act, and nontransferable. In the event a loan against an Individual Account is requested, however, the Current Value of the Individual Account necessary to cover the loan amount plus interest must be assigned to Aetna. (c) Designation of Beneficiary: Each Participant shall name a beneficiary. However, if the participant is married, Aetna shall disregard the named beneficiary and shall treat the current spouse as sole beneficiary if, upon the Participant's death: (1) The participant had not reached age 35; or (2) The appropriate preretirement survivor benefit waiver and spousal consent form have not been submitted to Aetna. (d) Individual Accounts: Aetna will maintain an Individual Account for each Participant. In addition to any Purchase Payments stated to be made to this Contract, a lump-sum Purchase Payment(s), of not less than a minimum amount stated by Aetna, may be made on behalf of one or more Participants. Aetna may maintain an Individual Account for each lump-sum payment. (e) Maintenance Fee: The Maintenance Fee (see 6.01) will be deducted from the Current Value on each anniversary of the Individual Account Effective Date and upon surrender of the entire Individual Account. (f) Current Value: The Current Value as determined in 3.10 29 of a Participant's Individual Account at the end of a Valuation Period. (g) Loan Value: During the Accumulation Period, a Participant may request a loan from his or her Individual Account Value in place of a partial withdrawal by submitting a loan request form accompanied by the appropriate waiver and spousal consent forms to Aetna's Home Office. A loan may not be requested within 12 months of any prior loan request. If the loan meets the requirements described below, it will not be taxable: (1) The loan amount must be at least $5,000. The loan amount when added to the outstanding balance of all previous loans may not exceed the lesser of: [bullet] One-half of the total Individual Account Current Value plus the outstanding balance of all previous loans under the Plan Account; or [bullet] $50,000. Loans can only be made from those Individual Account Values held in the Fund(s) and the Fixed Account. Loans may not be made against amounts held in the GA Account although such values are included in the determination of Individual Account Value. If a Participant intends to request a loan against any portion of the GA Account, that portion must be transferred to any Fund(s) or to the Fixed Account. The transferred amount will be subject to the Withdrawal and Market Value Adjustment provisions. When a loan is made, the number of Accumulation Units equal to the loan amount will be withdrawn from the Individual Account. Accumulation Units taken from an Individual Account to provide a loan do not participate in the investment experience of the related investment media. Unless instructed otherwise, the amount withdrawn will be allocated on a pro rata basis among the Fixed Account and the Fund(s). (2) Loan interest will accrue on a daily basis at the rate of 3% annually and must be paid in full each year. The interest must be paid directly to Aetna by the Participant. If interest is not paid when due, the entire loan amount plus interest will be treated as a taxable surrender under the terms of the Contract. (3) Repayment of a loan can be made at any time within 5 years from the date the loan was first made. Any unpaid portion of a loan must be repaid at the end of 5 years, upon election of an Annuity 30 Option or upon full surrender of the Individual Account, whichever occurs first. Aetna may require all outstanding loans be paid if the Individual Account Value falls below an amount equal to 25% of total loans outstanding. Any loan and accrued interest not repaid when due will be considered a taxable surrender with appropriate deferred sales charges deducted from the Individual Account Value. (h) Sum Payable at Death (Before Annuity Payments Start): The Current Value payable under the terms of this section will be reduced by the amount of the accrued interest on any outstanding loan. Aetna will pay the Current Value to the beneficiary if: (1) The Participant dies before Annuity payments start; and (2) The notice of death is received in good order by Aetna. The sum paid will be the Current Value on the date the notice is received at Aetna's Home Office. The amount paid from the Fixed Account will not be less than the Net Purchase Payment(s) allocated to the Fixed Account under the Participant's Individual Account (less any prior transfers (see 3.12), surrenders, Maintenance Fees, or amounts used to purchase Annuity Options). The beneficiary, if a spouse, may choose to apply all or any portion of the payment to an Annuity Option. If the beneficiary is not a spouse, all of the payments must either be applied only to Annuity Option 1 or 2 within one year of the Participant's death, or be paid to the beneficiary within 5 years of the death of the Participant. (see Part IV). If no beneficiary exists, the payment will be made to the estate of the Participant. (i) Annuity Payments to Beneficiary: In no event may any payments to the beneficiary under an Annuity Option extend beyond: (1) The life of the beneficiary; or (2) Any certain period greater than the beneficiary's life expectancy. (j) Surrender Value: After deduction of the Maintenance Fee (if any), the amount payable by Aetna upon the surrender of any portion of the Individual Account(s) shall be reduced by a Surrender Fee. The Surrender Fee will be in accordance with the Surrender Fee table in 6.02. The Fee on a total surrender of an Individual Account will not exceed 8.5% of the actual Purchase Payments made to that Account. Aetna may defer payment of the surrender value until appropriate 31 waiver and spousal consent forms are received. (k) Annuity Option: Any election of an Annuity Option other than Option 4 must be accompanied by the appropriate waiver and spousal consent forms. 32 VI. FEE SCHEDULE TAX DEFERRED ANNUITY PLAN RETIREMENT PLUS 6.01. Maintenance Fee: The Maintenance Fee will be $15 per Individual Account. However, for a Separate Individual Account maintained pursuant to a lump-sum payment, the Maintenance Fee will be $0 6.02. Surrender Fee: For each surrender from an Individual Account, the Surrender Fee will vary according to the number of Purchase Payment Cycles completed for the Individual Account being surrendered. The number and amount of Purchase Payments to be made in a year is chosen by the Participant. A Purchase Payment Cycle is completed when this number and amount of Purchase Payments have been made. The number of Purchase Payment Cycles completed may not be greater than the number of whole years since the Individual Account was established. For each surrender, the Fee will be as follows: Number of Purchase Payment Cycles Completed Surrender Fee Less than 5 5% 5 or more but less than 7 4% 7 or more but less than 9 3% 9 or 10 2% More than 10 0% For each surrender from an Individual Account maintained pursuant to a lump-sum payment, the Surrender Fee will vary according to the period of time between the Effective Date of the Individual Account and the date of surrender as follows: If Period of Time is Surrender Fee Less than 5 years 5% From 5 to 6 years 4% From 6 to 7 years 3% From 7 to 8 years 2% From 8 to 9 years 1% 9 or more years 0% No Surrender Fee is deducted from any portion of the Individual Account which is paid: 33 (a) At the death of a Participant before Annuity payments start; (b) As a premium for an Annuity for a Participant under this Contract; (c) After a Participant has reached age 59-1/2 and 9 or more Purchase Payment Cycles have been completed for the Individual Account being surrendered; (d) On and after the tenth anniversary of the Effective Date of the Individual Account; (e) When the Individual Account Current Value is $2,500 or less and no surrenders have been taken from the Individual Account within the prior 12 months. If there is more than one Individual Account under the Contract for a Participant, then this provision will only apply when the total in all of the Participant's Individual Accounts is $2,500 or less; (f) In an amount equal to or less than 10% of the current Individual Account Current Value, as part of the first partial surrender request in a calendar year to a Participant who is at least age 59-1/2 and less than age 70-1/2. The Individual Account Current Value is calculated as of the date the partial surrender request is received in good order at Aetna's Home Office. Any outstanding loans from the Participant's Individual Account are excluded when calculating its Individual Account Current Value. This provision does not apply to partial surrenders due to loan defaults made from Individual Account Current Values and does not apply to full surrender requests; or (g) On account of a Participant's separation from service. The Contract Holder must submit documentation satisfactory to Aetna to confirm that the Participant is no longer providing services to the employer. 34 VI. FEE SCHEDULE TAX DEFERRED ANNUITY PLAN RETIREMENT PLUS 6.01. Maintenance Fee: The Maintenance Fee will be $12.50 per Individual Account. However, for a Separate Individual Account maintained pursuant to a lump-sum payment, the Maintenance Fee will be $0 6.02. Surrender Fee: For each surrender from an Individual Account, the Surrender Fee will vary according to the number of Purchase Payment Cycles completed for the Individual Account being surrendered. The number and amount of Purchase Payments to be made in a year is chosen by the Participant. A Purchase Payment Cycle is completed when this number and amount of Purchase Payments have been made. The number of Purchase Payment Cycles completed may not be greater than the number of whole years since the Individual Account was established. For each surrender, the Fee will be as follows: Number of Purchase Payment Cycles Completed Surrender Fee Less than 5 5% 5 or more but less than 7 4% 7 or more but less than 9 3% 9 or 10 2% More than 10 0% For each surrender from an Individual Account maintained pursuant to a lump-sum payment, the Surrender Fee will vary according to the period of time between the Effective Date of the Individual Account and the date of surrender as follows: If Period of Time is Surrender Fee Less than 5 years 5% From 5 to 6 years 4% From 6 to 7 years 3% From 7 to 8 years 2% From 8 to 9 years 1% 9 or more years 0% No Surrender Fee is deducted from any portion of the Individual Account which is paid: 35 (a) At the death of a Participant before Annuity payments start; (b) As a premium for an Annuity for a Participant under this Contract; (c) After a Participant has reached age 59-1/2 and 9 or more Purchase Payment Cycles have been completed for the Individual Account being surrendered; (d) On and after the tenth anniversary of the Effective Date of the Individual Account; (e) When the Individual Account Current Value is $2,500 or less and no surrenders have been taken from the Individual Account within the prior 12 months. If there is more than one Individual Account under the Contract for a Participant, then this provision will only apply when the total in all of the Participant's Individual Accounts is $2,500 or less; (f) In an amount equal to or less than 10% of the current Individual Account Current Value, as part of the first partial surrender request in a calendar year to a Participant who is at least age 59-1/2 and less than age 70-1/2. The Individual Account Current Value is calculated as of the date the partial surrender request is received in good order at Aetna's Home Office. Any outstanding loans from the Participant's Individual Account are excluded when calculating its Individual Account Current Value. This provision does not apply to partial surrenders due to loan defaults made from Individual Account Current Values and does not apply to full surrender requests; or (g) On account of a Participant's separation from service. The Contract Holder must submit documentation satisfactory to Aetna to confirm that the Participant is no longer providing services to the employer. 36 VI. FEE SCHEDULE TAX DEFERRED ANNUITY PLAN RETIREMENT PLUS 6.01. Maintenance Fee: The Maintenance Fee will be $10 per Individual Account. However, for a Separate Individual Account maintained pursuant to a lump-sum payment, the Maintenance Fee will be $0 6.02. Surrender Fee: For each surrender from an Individual Account, the Surrender Fee will vary according to the number of Purchase Payment Cycles completed for the Individual Account being surrendered. The number and amount of Purchase Payments to be made in a year is chosen by the Participant. A Purchase Payment Cycle is completed when this number and amount of Purchase Payments have been made. The number of Purchase Payment Cycles completed may not be greater than the number of whole years since the Individual Account was established. For each surrender, the Fee will be as follows: Number of Purchase Payment Cycles Completed Surrender Fee Less than 5 5% 5 or more but less than 7 4% 7 or more but less than 9 3% 9 or 10 2% More than 10 0% For each surrender from an Individual Account maintained pursuant to a lump-sum payment, the Surrender Fee will vary according to the period of time between the Effective Date of the Individual Account and the date of surrender as follows: If Period of Time is Surrender Fee Less than 5 years 5% From 5 to 6 years 4% From 6 to 7 years 3% From 7 to 8 years 2% From 8 to 9 years 1% 9 or more years 0% No Surrender Fee is deducted from any portion of the Individual Account which is paid: 37 (a) At the death of a Participant before Annuity payments start; (b) As a premium for an Annuity for a Participant under this Contract; (c) After a Participant has reached age 59-1/2 and 9 or more Purchase Payment Cycles have been completed for the Individual Account being surrendered; (d) On and after the tenth anniversary of the Effective Date of the Individual Account; (e) When the Individual Account Current Value is $2,500 or less and no surrenders have been taken from the Individual Account within the prior 12 months. If there is more than one Individual Account under the Contract for a Participant, then this provision will only apply when the total in all of the Participant's Individual Accounts is $2,500 or less; (f) In an amount equal to or less than 10% of the current Individual Account Current Value, as part of the first partial surrender request in a calendar year to a Participant who is at least age 59-1/2 and less than age 70-1/2. The Individual Account Current Value is calculated as of the date the partial surrender request is received in good order at Aetna's Home Office. Any outstanding loans from the Participant's Individual Account are excluded when calculating its Individual Account Current Value. This provision does not apply to partial surrenders due to loan defaults made from Individual Account Current Values and does not apply to full surrender requests; or (g) On account of a Participant's separation from service. The Contract Holder must submit documentation satisfactory to Aetna to confirm that the Participant is no longer providing services to the employer. 38 VI. FEE SCHEDULE TAX DEFERRED ANNUITY PLAN RETIREMENT PLUS 6.01. Maintenance Fee: The Maintenance Fee will be $7.50 per Individual Account. However, for a Separate Individual Account maintained pursuant to a lump-sum payment, the Maintenance Fee will be $0 6.02. Surrender Fee: For each surrender from an Individual Account, the Surrender Fee will vary according to the number of Purchase Payment Cycles completed for the Individual Account being surrendered. The number and amount of Purchase Payments to be made in a year is chosen by the Participant. A Purchase Payment Cycle is completed when this number and amount of Purchase Payments have been made. The number of Purchase Payment Cycles completed may not be greater than the number of whole years since the Individual Account was established. For each surrender, the Fee will be as follows: Number of Purchase Payment Cycles Completed Surrender Fee Less than 5 5% 5 or more but less than 7 4% 7 or more but less than 9 3% 9 or 10 2% More than 10 0% For each surrender from an Individual Account maintained pursuant to a lump-sum payment, the Surrender Fee will vary according to the period of time between the Effective Date of the Individual Account and the date of surrender as follows: If Period of Time is Surrender Fee Less than 5 years 5% From 5 to 6 years 4% From 6 to 7 years 3% From 7 to 8 years 2% From 8 to 9 years 1% 9 or more years 0% No Surrender Fee is deducted from any portion of the Individual Account which is paid: 39 (a) At the death of a Participant before Annuity payments start; (b) As a premium for an Annuity for a Participant under this Contract; (c) After a Participant has reached age 59-1/2 and 9 or more Purchase Payment Cycles have been completed for the Individual Account being surrendered; (d) On and after the tenth anniversary of the Effective Date of the Individual Account; (e) When the Individual Account Current Value is $2,500 or less and no surrenders have been taken from the Individual Account within the prior 12 months. If there is more than one Individual Account under the Contract for a Participant, then this provision will only apply when the total in all of the Participant's Individual Accounts is $2,500 or less; (f) In an amount equal to or less than 10% of the current Individual Account Current Value, as part of the first partial surrender request in a calendar year to a Participant who is at least age 59-1/2 and less than age 70-1/2. The Individual Account Current Value is calculated as of the date the partial surrender request is received in good order at Aetna's Home Office. Any outstanding loans from the Participant's Individual Account are excluded when calculating its Individual Account Current Value. This provision does not apply to partial surrenders due to loan defaults made from Individual Account Current Values and does not apply to full surrender requests; or (g) On account of a Participant's separation from service. The Contract Holder must submit documentation satisfactory to Aetna to confirm that the Participant is no longer providing services to the employer. 40 VI. FEE SCHEDULE TAX DEFERRED ANNUITY PLAN RETIREMENT PLUS 6.01. Maintenance Fee: The Maintenance Fee will be $5 per Individual Account. However, for a Separate Individual Account maintained pursuant to a lump-sum payment, the Maintenance Fee will be $0 6.02. Surrender Fee: For each surrender from an Individual Account, the Surrender Fee will vary according to the number of Purchase Payment Cycles completed for the Individual Account being surrendered. The number and amount of Purchase Payments to be made in a year is chosen by the Participant. A Purchase Payment Cycle is completed when this number and amount of Purchase Payments have been made. The number of Purchase Payment Cycles completed may not be greater than the number of whole years since the Individual Account was established. For each surrender, the Fee will be as follows: Number of Purchase Payment Cycles Completed Surrender Fee Less than 5 5% 5 or more but less than 7 4% 7 or more but less than 9 3% 9 or 10 2% More than 10 0% For each surrender from an Individual Account maintained pursuant to a lump-sum payment, the Surrender Fee will vary according to the period of time between the Effective Date of the Individual Account and the date of surrender as follows: If Period of Time is Surrender Fee Less than 5 years 5% From 5 to 6 years 4% From 6 to 7 years 3% From 7 to 8 years 2% From 8 to 9 years 1% 9 or more years 0% No Surrender Fee is deducted from any portion of the Individual Account which is paid: 41 (a) At the death of a Participant before Annuity payments start; (b) As a premium for an Annuity for a Participant under this Contract; (c) After a Participant has reached age 59-1/2 and 9 or more Purchase Payment Cycles have been completed for the Individual Account being surrendered; (d) On and after the tenth anniversary of the Effective Date of the Individual Account; (e) When the Individual Account Current Value is $2,500 or less and no surrenders have been taken from the Individual Account within the prior 12 months. If there is more than one Individual Account under the Contract for a Participant, then this provision will only apply when the total in all of the Participant's Individual Accounts is $2,500 or less; (f) In an amount equal to or less than 10% of the current Individual Account Current Value, as part of the first partial surrender request in a calendar year to a Participant who is at least age 59-1/2 and less than age 70-1/2. The Individual Account Current Value is calculated as of the date the partial surrender request is received in good order at Aetna's Home Office. Any outstanding loans from the Participant's Individual Account are excluded when calculating its Individual Account Current Value. This provision does not apply to partial surrenders due to loan defaults made from Individual Account Current Values and does not apply to full surrender requests; or (g) On account of a Participant's separation from service. The Contract Holder must submit documentation satisfactory to Aetna to confirm that the Participant is no longer providing services to the employer. 42 VI. FEE SCHEDULE TAX DEFERRED ANNUITY PLAN RETIREMENT PLUS 6.01. Maintenance Fee: The Maintenance Fee will be $2.50 per Individual Account. However, for a Separate Individual Account maintained pursuant to a lump-sum payment, the Maintenance Fee will be $0 6.02. Surrender Fee: For each surrender from an Individual Account, the Surrender Fee will vary according to the number of Purchase Payment Cycles completed for the Individual Account being surrendered. The number and amount of Purchase Payments to be made in a year is chosen by the Participant. A Purchase Payment Cycle is completed when this number and amount of Purchase Payments have been made. The number of Purchase Payment Cycles completed may not be greater than the number of whole years since the Individual Account was established. For each surrender, the Fee will be as follows: Number of Purchase Payment Cycles Completed Surrender Fee Less than 5 5% 5 or more but less than 7 4% 7 or more but less than 9 3% 9 or 10 2% More than 10 0% For each surrender from an Individual Account maintained pursuant to a lump-sum payment, the Surrender Fee will vary according to the period of time between the Effective Date of the Individual Account and the date of surrender as follows: If Period of Time is Surrender Fee Less than 5 years 5% From 5 to 6 years 4% From 6 to 7 years 3% From 7 to 8 years 2% From 8 to 9 years 1% 9 or more years 0% No Surrender Fee is deducted from any portion of the Individual Account which is paid: 43 (a) At the death of a Participant before Annuity payments start; (b) As a premium for an Annuity for a Participant under this Contract; (c) After a Participant has reached age 59-1/2 and 9 or more Purchase Payment Cycles have been completed for the Individual Account being surrendered; (d) On and after the tenth anniversary of the Effective Date of the Individual Account; (e) When the Individual Account Current Value is $2,500 or less and no surrenders have been taken from the Individual Account within the prior 12 months. If there is more than one Individual Account under the Contract for a Participant, then this provision will only apply when the total in all of the Participant's Individual Accounts is $2,500 or less; (f) In an amount equal to or less than 10% of the current Individual Account Current Value, as part of the first partial surrender request in a calendar year to a Participant who is at least age 59-1/2 and less than age 70-1/2. The Individual Account Current Value is calculated as of the date the partial surrender request is received in good order at Aetna's Home Office. Any outstanding loans from the Participant's Individual Account are excluded when calculating its Individual Account Current Value. This provision does not apply to partial surrenders due to loan defaults made from Individual Account Current Values and does not apply to full surrender requests; or (g) On account of a Participant's separation from service. The Contract Holder must submit documentation satisfactory to Aetna to confirm that the Participant is no longer providing services to the employer. 44 VI. FEE SCHEDULE QUALIFIED PENSION/PROFIT SHARING PLAN 6.01. Maintenance Fee: The Maintenance Fee will be $15 per Individual Account. However, for a Separate Individual Account maintained pursuant to a lump-sum payment, the Maintenance Fee will be $0 6.02. Surrender Fee: For each surrender from an Individual Account, the Surrender Fee will vary according to the number of Purchase Payment Cycles completed for the Individual Account being surrendered. The number and amount of Purchase Payments to be made in a year is chosen by the Participant. A Purchase Payment Cycle is completed when this number and amount of Purchase Payments have been made. The number of Purchase Payment Cycles completed may not be greater than the number of whole years since the Individual Account was established. For each surrender, the Fee will be as follows: Number of Purchase Payment Cycles Completed Surrender Fee Less than 5 5% 5 or more but less than 7 4% 7 or more but less than 9 3% 9 or 10 2% More than 10 0% For each surrender from an Individual Account maintained pursuant to a lump-sum payment, the Surrender Fee will vary according to the period of time between the Effective Date of the Individual Account and the date of surrender as follows: If Period of Time is Surrender Fee Less than 5 years 5% From 5 to 6 years 4% From 6 to 7 years 3% From 7 to 8 years 2% From 8 to 9 years 1% 9 or more years 0% No Surrender Fee is deducted from any portion of the Individual Account which is paid: 45 (a) At the death of a Participant before Annuity payments start; (b) As a premium for an Annuity for a Participant under this Contract; (c) After a Participant has reached age 59-1/2 and 9 or more Purchase Payment Cycles have been completed for the Individual Account being surrendered; (d) On and after the tenth anniversary of the Effective Date of the Individual Account; (e) When the Individual Account Current Value is $2,500 or less and no surrenders have been taken from the Individual Account within the prior 12 months. If there is more than one Individual Account under the Contract for a Participant, then this provision will only apply when the total in all of the Participant's Individual Accounts is $2,500 or less; (f) In an amount equal to or less than 10% of the current Individual Account Current Value, as part of the first partial surrender request in a calendar year to a Participant who is at least age 59-1/2 and less than age 70-1/2. The Individual Account Current Value is calculated as of the date the partial surrender request is received in good order at Aetna's Home Office. Any outstanding loans from the Participant's Individual Account are excluded when calculating its Individual Account Current Value. This provision does not apply to partial surrenders due to loan defaults made from Individual Account Current Values and does not apply to full surrender requests; or (g) On account of a Participant's separation from service. The Contract Holder must submit documentation satisfactory to Aetna to confirm that the Participant is no longer providing services to the employer. 46 Aetna Life Insurance and Annuity Company Home Office: 151 FARMINGTON AVE. HARTFORD, CONNECTICUT 06156 1-800-525-4225 GROUP VARIABLE, FIXED, OR COMBINATION CONTRACT NON-PARTICIPATING ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT EX-99.B4.2 3 Aetna Life Insurance and Annuity Company Home Office: 151 FARMINGTON AVE. HARTFORD, CONNECTICUT 06156 1-800-525-4225 Herein called Aetna Agrees to pay the benefits stated in this Contract. THE VARIABLE FEATURES OF THIS CONTRACT ARE DESCRIBED IN PARTS III AND IV. RIGHT TO CANCEL The Contract Holder may cancel this Contract within 10 days of receiving it by returning this Contract along with a written notice to Aetna at the above address or to the agent from whom it was purchased. Within 7 days after it receives the notice of cancellation and this Contract at its Home Office, Aetna will return the entire consideration paid plus any increase or minus any decrease in the current value of any funds allocated to the Separate Account. This page, the following pages, and the application make up the entire Contract. Signed at the Home Office on the Effective Date. /s/ Susan E. Schechter /s/ Dan Kearney Secretary President INDIVIDUAL VARIABLE, FIXED, OR COMBINATION ANNUITY CONTRACT NONPARTICIPATING ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT ARE VARIABLE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT. TABLE OF CONTENTS I. GENERAL DEFINITIONS Page 1.01 Annuitant..........................................................4 1.02 Annuity............................................................4 1.03 Code...............................................................4 1.04 Contract Holder....................................................4 1.05 Fixed Account......................................................4 1.06 Fixed Annuity......................................................4 1.07 Fund(s)............................................................4 1.08 General Account....................................................4 1.09 Participant........................................................4 1.10 Plan...............................................................4 1.11 Purchase Payment(s)................................................4 1.12 Separate Account...................................................4 1.13 Valuation Period (Period)..........................................4 1.14 Variable Annuity...................................................4 II. GENERAL PROVISIONS 2.01 Change of Contract.................................................5 2.02 Change of Fund(s)..................................................5 2.03 Nonparticipating Contract..........................................5 2.04 Payments...........................................................5 2.05 State Laws.........................................................5 2.06 Control of Contract................................................5 2.07 Designation of Beneficiary.........................................5 2.08 Misstatements and Adjustments......................................5 2.09 lncontestability...................................................6 2.10 Grace Period.......................................................6 III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS 3.01 Net Purchase Payment(s)............................................7 3.02 Guaranteed Interest Rate - Fixed Account...........................7 3.03 Maintenance Fee....................................................7 3.04 Fund(s) Record Units - Separate Account............................7 3.05 Net Return Factor(s) - Separate Account............................7 3.06 Fund(s) Record Unit Value - Separate Account.......................8 3.07 Current Value......................................................8 3.08 Transfer of Current Value from the Funds...........................8 3.09 Transfer of Current Value from the Fixed Account...................8 3.10 Notice to the Contract Holder......................................8 3.11 Sum Payable at Death (Before Annuity Payments Start)...............8 3.12 Surrender Value....................................................8 3.13 Payment of Surrender Value.........................................8 3.14 Distribution Options (Estate Conservation Option (ECO) Systematic Withdrawal Option (SWO))................................9 3.15 Reinstatement......................................................9 2 IV. ANNUITY PROVISIONS 4.01 Choices to be Made................................................10 4.02 Annuity Payments to Annuitant.....................................10 4.03 Annuity Payments to Annuitant's Beneficiary.......................10 4.04 Terms of Annuity Options..........................................11 4.05 Death of Annuitant/Beneficiary....................................12 4.06 Fund(s) Annuity Units - Separate Account..........................12 4.07 Fund(s) Annuity Unit Value - Separate Account.....................12 4.08 Annuity Options...................................................13 V. SPECIAL PROVISIONS 5.01 Deferred Compensation Plan........................................22 5.02 Tax Deferred Annuity Plan.........................................24 5.03 Tax Deferred Annuity Plan (ERISA).................................31 5.04 Individual Annuity Plan...........................................39 VI. FEE SCHEDULE 6.01 Maintenance Fee...................................................41 6.02 Surrender Fee.....................................................41 6.03 Table of Minimum Values - Fixed Account...........................41 3 I. GENERAL DEFINITIONS 1.01. Annuitant: A person who receives a series of payments for life or a definite period under this Contract. This term may also apply to the Contract Holder's or Participant's beneficiary who elected an Annuity Option after the Contract Holder/Participant's death before payments begin. The Annuitant cannot be changed. 1.02. Annuity: Payment of an income: (a) For the life of one or two persons; (b) For a stated period; or (c) For some combination of (a) and (b). 1.03. Code: The Internal Revenue Code of 1986, as it may be amended from time to time. 1.04. Contract Holder: The entity to which, or person to whom this Contract is issued. 1.05. Fixed Account: An accumulation option with a guaranteed minimum interest rate. Aetna may credit a higher rate which is not guaranteed. 1.06. Fixed Annuity: An Annuity with payments which do not vary in amount. 1.07. Fund(s): The open-end registered management investment companies (mutual funds) made available by Aetna under this Contract. 1.08. General Account: The Account holding the assets of Aetna, other than those assets held in the Separate Accounts. 1.09. Participant: An eligible person taking part in a Plan. 1.10. Plan: The Plan named on the Specifications page of the Contract. The Plan is not a part of the Contract. Aetna is not bound by the terms of the Plan. 1.11. Purchase Payment(s): Payment(s) made to Aetna. 1.12. Separate Account: An account which buys and holds shares of the Fund(s). Income, gains or losses, realized or unrealized are credited or charged to the assets of this account without regard to other income, gains or losses of Aetna. Aetna owns the assets held in a separate account and is not a trustee as to such amounts. These accounts generally are not guaranteed and are held at market value. The assets of such accounts, to the extent of reserves and other contract liabilities of the account, shall not be charged with other Aetna liabilities. 1.13. Valuation Period (Period): The period as of 4:00 p.m. Eastern time on each day the New York Stock Exchange is open for business to 4:00 p.m. Eastern time of the next such business day. 1.14. Variable Annuity: An Annuity with payments which vary with the net investment results of a Separate Account. 4 II. GENERAL PROVISIONS 2.01. Change of Contract: Except as provided below, only an authorized officer of Aetna may change the terms of this Contract. Aetna will notify the Contract Holder in writing at least 30 days before the effective date of any change. Any change will not affect the amount or terms of any Annuity which begins before the change. The following provisions of this Contract will not be changed: (a) Net Purchase Payment(s) (b) Guaranteed Interest Rate - Fixed Account (c) Net Retum Factor(s) - Separate Account (d) Current Value (e) Surrender Value (f) Fund(s) Annuity Unit Value - Separate Account (g) Annuity Options (h) Fixed Annuity minimum interest rate (i) Maximum transfer, maintenance, or surrender fees. This Contract may also be changed as required by federal or state law. 2.02. Change of Fund(s): Aetna, or the Separate Account may: (a) Change the Fund(s) which may be invested in by the Separate Account; and (b) Replace the shares of any Fund(s) held in the Separate Account with shares of any other Fund(s). Changes must be: (a) Approved by a majority vote of persons having an interest in the Separate Account and the Fund(s); (b) Deemed necessary by Aetna under the Investment Company Act of 1940; or (c) Deemed necessary by Aetna to accomplish the purpose of the Separate Account. Aetna will notify the Contract Holder of any change. 2.03. Nonparticipating Contract: The Contract Holder, Annuitant, or beneficiaries will not have a right to share in the earnings of Aetna. 2.04. Payments: Aetna will make Annuity payments as and when due. Aetna will make other payments within 7 days of receipt at its Home Office of a written claim for payment which is in good order, except as provided in 3.13. 2.05. State Laws: This Contract complies with the laws of the state in which it is delivered. Any cash, death or Annuity payments are equal to or greater than the minimum required by such laws. Annuity tables for legal reserve valuation shall be as required by state law. Such tables may be different from Annuity tables used to determine Annuity payments. 2.06. Control of Contract: See Part V. 2.07. Designation of Beneficiary: See Part V. 2.08. Misstatements and Adjustments: If Aetna finds the age of any payee to be misstated, the correct facts will be used to adjust payments. 5 2.09. lncontestability: Aetna cannot cancel this Contract because of any error of fact on the application. 2.10. Grace Period: This Contract will remain in effect even if Purchase Payments are not continued. 6 III. PURCHASE PAYMENT, CURRENT VALUE, AND SURRENDER PROVISIONS 3.01. Net Purchase Payment(s): The actual Purchase Payment(s) less any premium tax. Generally, Aetna will deduct the premium tax when Annuity benefits are purchased (see Part IV). If Aetna determines that it must pay a premium tax when Purchase Payment(s) are received or at any other time, it will deduct the tax at that time. The Net Purchase Payment(s) may be credited to: (a) The Fixed Account; and (b) The Fund(s) in which the Separate Account invests. Aetna must be told the percentage of the Net Purchase Payments to be applied to each investment above. During any calendar year, Aetna may be told to change the investment mix twelve times. Should Aetna allow additional changes, each may be subject to a fee of up to $10. 3.02. Guaranteed Interest Rate - Fixed Account: On any Purchase Payment(s) made to the Fixed Account, Aetna will add interest daily at an annual rate no less than 4%. Aetna may add interest daily at any higher rate determined by its Board of Directors. 3.03. Maintenance Fee: See Part V. 3.04. Fund(s) Record Units - Separate Account: The portion of the Net Purchase Payment(s) applied to the Separate Account will determine the number of Fund(s) Record Units. This number is equal to the Net Purchase Payment applied to the Fund divided by the Fund(s) Record Unit Value (see 3.06) for the Valuation Period in which the Purchase Payment is received in good order. 3.05. Net Return Factor(s) - Separate Account: The Net Return Factors are used to compute all Separate Account Values and payments for any Fund. The Net Retum Factor for each Fund is equal to 1.0000000 plus the Net Return Rate. The Net Return Rate is equal to: (a) The value of the shares of the Fund held by the Separate Account at the end of a Valuation Period; minus (b) The value of the shares of the Fund held by the Separate Account at the start of the Valuation Period; plus or minus (c) Taxes (or reserves for taxes) on the Separate Account (if any); divided by (d) The total value of the Fund Record Units and Fund Annuity Units of the Separate Account (see 3.06 and 4.07) at the start of the Valuation Period; minus (e) A daily actuarial charge at an annual rate of 1.25% for Annuity mortality and expense risks and profit and a daily administrative charge which will not exceed 0.25% on an annual basis. A Net Return Rate may be more or less than 0. The value of a share of the Fund is equal to the net assets of the Fund divided by the number of shares outstanding. 7 The administrative charge may be changed annually except for amounts which have been used to purchase an Annuity. This charge will not exceed 0.25% 3.06 Fund(s) Record Unit Value - Separate Account: The Fund(s) Record Unit Value is computed by multiplying the Net Return Factor for the current Valuation Period by the Fund(s) Record Unit Value for the previous Period. The dollar value of the Fund(s) Record Units, Separate Account assets, and Variable Annuity payments may go up or down due to investment gain or loss. 3.07. Current Value: The Current Value of this Contract is equal to: (a) Any amounts in the Fixed Account, including Fixed Account interest added by Aetna; plus (b) The sum of any Separate Account Record Unit Value(s); less (c) Any Maintenance Fee(s) due. Current Value does not include amounts used to purchase an Annuity. 3.08. Transfer of Current Value from the Funds: Before an Annuity Option is elected, all or any portion of the Current Value may be transferred from any Fund to any other Fund or to the Fixed Account. Twelve transfers of Current Value can be made during a calendar year period. Should Aetna allow additional changes, each may be subject to a fee of up to $10. 3.09. Transfer of Current Value from the Fixed Account: 10% of the Current Value held in the Fixed Account may be transferred to any Fund(s). Such transfer will be: (a) Without charge; (b) Allowed once per calendar year; and (c) Not allowed under an Annuity Option. Aetna may, on a temporary basis, allow any larger percent to be transferred. The Current Value of the Fixed Account, as used above, is the value when the request is received at Aetna's Home Office in good order. 3.10. Notice to the Contract Holder: Before an Annuity Option is elected, Aetna will notify the Contract Holder each year of: (a) The value of any amounts held in: (1) The Fixed Account; (2) The Fund(s) for the Separate Account; (b) The number of any Fund(s) Record Units; and (c) The Fund(s) Record Unit Value(s). Such number or values will be as of a date no more than 60 days before the date of the notice. 3.11. Sum Payable at Death (Before Annuity Payments Start): See Part V. 3.12. Surrender Value: See Part V. 3.13. Payment of Surrender Value: Under certain emergency conditions, Aetna may defer payment: (a) For a period of up to 6 months (unless not allowed by state law); and (b) As provided by federal law. Aetna may pay any Fixed Account surrender value with interest in equal payments over a period not to exceed 60 8 months when the amount held in the Fixed Account under this Contract exceeds $250,000 on the day prior to the current surrender request. This will apply only if the sum of the amounts surrendered within the past 12 months and the amount of the current surrender exceeds 20% of such Fixed Account amount. Interest, as used above, will not be more than two percentage points below any rate determined prospectively by the Board of Directors for this class of Contract. In no event will the interest rate be less than 4%. 3.14. Distribution Options (Estate Conservation Option (ECO)/Systematic Withdrawal Option (SWO)): See Part V. 3.15. Reinstatement: All or a portion of the proceeds of a full surrender of this Contract may be reinvested within 30 days after the surrender if allowed by law. Any Maintenance Fee and Surrender Fee charged at the time of surrender on the amount being reinvested will be included in the reinstatement. Amounts will be reinstated among the Fixed Account and the Separate Account Fund(s) in the same proportion as they were at the time of surrender. The number of Record Units reinstated will be based on the Record Unit Value(s) next computed after receipt at Aetna's Home Office of the reinstatement request and the amount to be reinvested. Any Maintenance Fee which falls due after the surrender and before the reinstatement will be deducted from the amount reinstated. Reinstatement is permitted only once. 9 IV. ANNUITY PROVISIONS 4.01. Choices to be Made: The Contract Holder may tell Aetna to pay any portion of the Current Value (minus any premium tax) as a premium for an Annuity under Option 2, 3, or 4 (see 4.08). This election must be made in a form acceptable to Aetna within the 90 day period ending on the date payments are to begin. A Contract Holder may revoke an election at any time prior to the date the payments start. However, the spouse of a married Contract Holder, under a Contract subject to the provisions of Section 5.03, must consent to the first election and any new choice other than Option 4(e) (see 4.08). When an Option is chosen, Aetna must also be told whether payments are to be made other than monthly and to pay: (a) A Fixed Annuity using the General Account; (b) A Variable Annuity using any of the Fund(s) made available by Aetna for Annuity purposes; or (c) A combination of (a) and (b). If a Fixed Annuity is chosen, Aetna will add interest daily at an annual rate no less than 3.5%. Aetna may add interest daily at any higher rate. If a Variable Annuity is chosen, an Assumed Annual Net Return Rate of 5% may be chosen. If not chosen, Aetna will use an Assumed Annual Net Return Rate of 3.5%. 4.02. Annuity Payments to Annuitant: In no event may any payments to the Annuitant under any Annuity Option extend beyond: (a) The life of the Annuitant; (b) The lives of the Annuitant and the Annuitant's beneficiary under the Plan; (c) Any certain period greater than the Annuitant's life expectancy according to regulations under Code Section 401 (a)(9), determined as of the date payments are to begin. (Code Section 401 (a)(9) regulations are not applicable to Section 5.04, Individual Annuity Plans); or (d) A period certain greater than the life expectancies of the Annuitant and the Annuitant's beneficiary under the Plan, according to regulations under Code Section 401 (a)(9), determined as of the date payments are to begin. (Code Section 401 (a)(9) regulations are not applicable to Section 5.04, Individual Annuity Plans.) 4.03. Annuity Payments to Annuitant's Beneficiary: In no event may payments to the beneficiary under an Annuity Option extend beyond: (a) The life of the beneficiary; or (b) Any certain period greater than the beneficiary's life expectancy as determined by regulations under Code Section 401 (a)(9). (Code Section 401 (a)(9) regulations are not applicable to Section 5.04, Individual Annuity Plans.) The present value of any remaining payments due after the death of both Annuitants under a joint and survivor Annuity Option, (see 4.08), will be made to the beneficiary designated by the Contract Holder or to the Contract Holder's estate. The second Annuitant does not have the right to change the beneficiary upon the Contract Holder's death. 10 4.04. Terms of Annuity Options: (a) When payments start, the age of the Annuitant plus the number of years for which payments are guaranteed must not exceed 95. (b) The present value of the expected payments to the Annuitant when payments start shall be determined according to the Tables under IRS regulations to comply with the minimum distribution incidental death benefit rule. This restriction does not apply if Option 4 is chosen and the second Annuitant is the spouse of the Annuitant. (c) No choice of any Annuity Option may be made if the first payment would be less than $20 or if the total payments in a year would be less than $100. (d) If a Fixed Annuity under Option 2, 3 or 4 is chosen and a larger payment would result from applying the surrender value to a current Aetna single premium immediate Annuity, Aetna will make the larger payment. (e) The Annuitant's age will be reduced by one year for Annuity commencement dates occurring during the 1990's, reduced by two years for Annuity commencement dates occurring during the decade 2000- 2009, and so on. The Annuitant's adjusted age is determined based on the age as of the birthday closest to the date of the first Annuity payment. The Annuity rates for Options 3 and 4 are based on mortality from 1983 Table a. (f) Assumed Annual Net Return Rate is the interest rate used to determine the amount of the first Annuity payment under a Variable Annuity. The Separate Account must earn this rate plus enough to cover the mortality and expense risk charges and, if 11 applicable, any administrative charge if future Variable Annuity Payments are to remain level. 4.05. Death of Annuitant/Beneficiary: When an Annuitant dies under Options 2 and 3, or if both the Annuitant and survivor die under Option 4 (d), the present value of any remaining guaranteed payment will be paid in one sum to the beneficiary, or upon election by the beneficiary, any remaining payments will continue to the beneficiary. If there is no beneficiary under Option 2 and 3, the present value of any remaining payments will be paid in one sum to the estate of the Annuitant. If there is no beneficiary under Option 4(d), the present value of any remaining payments will be paid in one lump sum to the last survivor's estate. If the Annuitant dies under Option 1, the amount held plus accrued interest will be paid in one sum to the beneficiary. If there is no beneficiary, the lump sum will be paid to the Annuitant's estate. If the beneficiary dies while receiving annuity payments elected by the Annuitant, the present value of any remaining payments will be paid in one sum to the beneficiary's estate unless otherwise elected. The interest rate used to determine the first payment will be used to calculate the present value. 4.06. Fund(s) Annuity Units - Separate Account: The number of Fund(s) Annuity Units is based on the amount of the first Variable Annuity payment which is equal to: (a) The portion of the Current Value (minus any premium tax) applied to pay a Variable Annuity; divided by (b) 1,000; multiplied by (c) The payment rate for the Option chosen. Such amount, or portion of the Variable Payment will be divided by the appropriate Fund(s) Annuity Unit Value (see 4.07) on the tenth Valuation Period before the due date of the first payment to determine the number of each Fund(s) Annuity Units. The number of each Fund(s) Annuity Units remains fixed. Each future payment is equal to the sum of the products of each Fund(s) Annuity Unit Value multiplied by the appropriate number of Units. The Fund(s) Annuity Unit value on the tenth Valuation Period prior to the due date of the Payment is used. 4.07. Fund(s) Annuity Unit Value - Separate Account: For any Valuation Period, a Fund(s) Annuity Unit Value is equal to: (a) The Value for the previous Period; multiplied by (b) The Net Return Factor(s) (see 3.05) for the Period; multiplied by (c) A factor to reflect the Assumed Annual Net Return Rate. The factor for 3.5% per year is .9999058; for 5% per year it is .99998663. The dollar value of the Fund(s) Annuity Unit Values and payments may go up or down due to investment gain or loss. If Variable Annuity payments are not to decrease, Aetna must earn a gross return on the assets of the Separate Account of: [bullet] 4.75% on an annual basis plus an annual return of up to 0.25% needed to offset the administrative charge set at the time Annuity payments commence if an Assumed Annual Net Return Rate of 3.5% is chosen; or 12 [bullet] 6.25% on an annual basis plus an annual return of up to 0.25% needed to offset the administrative charge set at the time Annuity payments commence if an Assumed Annual Net Return Rate of 5% is chosen. Payments shall not be changed due to changes in the mortality or expense results or administrative charges. 4.08. Annuity Options: Option 1 - Payments of interest on Sum Left with Aetna - This Option may be used only by the beneficiary when the Annuitant dies before Aetna has started paying an Annuity. A portion or all of the sum paid upon death may be held under this Option and will be held in the General Account of Aetna at interest (see 4.01). The beneficiary may later tell Aetna to: (a) Pay a portion or all of the sum held by Aetna; or (b) Apply a portion or all of the sum held by Aetna to any Annuity Option below. If this Contract is subject to Code Section 401 (a)(9), and the beneficiary elects that the full sum paid upon death is to be held under this Option, the beneficiary, if a spouse, must elect (a) or (b) above within 5 years after the death of the Annuitant. If the beneficiary is not a spouse, the beneficiary must tell Aetna to pay the full sum within 5 years after the death of the Annuitant. Option 2 - Payments for a Stated Period of Time - An Annuity will be paid for the number of years chosen. The number of years must be at least 3 and not more than 30. If payments for this Option are made under a Variable Annuity, the present value of any remaining payments may be withdrawn at any time. If a withdrawal is requested within 3 years after the start of payments, it will be treated as a surrender (see Part V). Option 3 - Life Income - An Annuity will be paid for the life of the Annuitant. If also chosen, Aetna will guarantee payments for 60, 120, 1 80, or 240 months. Option 4 - Life Income for Two Payees An Annuity will be paid during the lives of the Annuitant and a second Annuitant. At the death of either, payments will continue to the survivor. When this Option is chosen, a choice must be made of: (a) 100% of the payment to continue to the survivor; (b) 662/3% of the payment to continue to the survivor; (c) 50% of the payment to continue to the survivor; or (d) Payments guaranteed for 120 months, with 100% of the payment to continue to the survivor. (e) 100% of the payment to continue to the survivor if the survivor is the Annuitant and 50% of the payment to continue to the survivor if the survivor is the second Annuitant. Other Options - Aetna may make other options available as allowed by the laws of the state in which this Contract is delivered. 13 OPTION 2 PAYMENTS FOR A STATED PERIOD OF TIME AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Years of Amount of Years of Amount of Years of Amount of Payments Payments Payments Payments Payments Payments -------- -------- -------- -------- -------- -------- 3 $29.19 13 $7.94 22 $5.39 4 22.27 14 7.49 23 5.24 5 18.12 15 7.10 24 5.09 6 15.35 16 6.76 25 4.96 7 13.38 17 6.47 26 4.84 8 11.90 18 6.20 27 4.73 9 10.75 19 5.97 28 4.63 10 9.83 20 5.75 29 4.53 11 9.09 21 5.56 30 4.45 12 8.46
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Years of Amount of Years of Amount of Years of Amount of Payments Payments Payments Payments Payments Payments -------- -------- -------- -------- -------- -------- 3 $29.80 13 $8.64 22 $6.17 4 22.89 14 8.20 23 6.02 5 18.74 15 7.82 24 5.88 6 15.99 16 7.49 25 5.76 7 14.02 17 7.20 26 5.65 8 12.56 18 6.94 27 5.54 9 11.42 19 6.71 28 5.45 10 10.51 20 6.51 29 5.36 11 9.77 21 6.33 30 5.28 12 9.16
14 OPTION 3 LIFE INCOME AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Payments Guaranteed for a Stated Period of Months ------------------------------------------------- None 60 120 180 240 Age of ---- -- --- --- --- Annuitant Male Female Male Female Male Female Male Female Male Female --------- ---- ------ ---- ------ ---- ------ ---- ------ ---- ------ 50 $4.56 $4.20 $4.55 $4.19 $4.51 $4.18 $4.45 $4.15 $4.36 $4.11 51 4.64 4.26 4.62 4.25 4.58 4.24 4.51 4.21 4.42 4.16 52 4.72 4.32 4.70 4.32 4.66 4.30 4.58 4.26 4.48 4.21 53 4.80 4.39 4.79 4.38 4.74 4.36 4.65 4.32 4.53 4.27 54 4.89 4.46 4.87 4.46 4.82 4.43 4.73 4.39 4.59 4.32 55 4.99 4.54 4.97 4.53 4.91 4.50 4.80 4.46 4.65 4.38 56 5.09 4.62 5.07 4.61 5.00 4.58 4.88 4.53 4.72 4.44 57 5.20 4.71 5.17 4.70 5.10 4.66 4.96 4.60 4.78 4.50 58 5.32 4.80 5.29 4.79 5.20 4.75 5.05 4.68 4.84 4.57 59 5.44 4.90 5.41 4.88 5.31 4.84 5.14 4.76 4.91 4.63 60 5.57 5.00 5.53 4.99 5.42 4.93 5.23 4.84 4.97 4.70 61 5.71 5.11 5.67 5.09 5.54 5.03 5.32 4.93 5.03 4.77 62 5.86 5.23 5.81 5.21 5.66 5.14 5.42 5.02 5.09 4.84 63 6.02 5.36 5.97 5.33 5.79 5.25 5.51 5.11 5.16 4.91 64 6.20 5.49 6.13 5.46 5.93 5.37 5.61 5.21 5.21 4.98 65 6.38 5.64 6.31 5.60 6.07 5.49 5.71 5.31 5.27 5.05 66 6.58 5.79 6.49 5.75 6.22 5.63 5.81 5.41 5.32 5.12 67 6.79 5.95 6.69 5.91 6.38 5.76 5.91 5.52 5.38 5.18 68 7.02 6.13 6.89 6.08 6.53 5.91 6.01 5.63 5.42 5.25 69 7.26 6.32 7.11 6.26 6.70 6.06 6.11 5.74 5.47 5.31 70 7.52 6.53 7.35 6.45 6.86 6.23 6.20 5.85 5.51 5.37 71 7.80 6.75 7.59 6.66 7.03 6.39 6.29 5.96 5.54 5.42 72 8.09 6.99 7.85 6.89 7.21 6.57 6.38 6.07 5.57 5.47 73 8.41 7.26 8.12 7.13 7.38 6.75 6.46 6.17 5.60 5.51 74 8.75 7.54 8.41 7.39 7.55 6.94 6.53 6.28 5.63 5.55 75 9.12 7.85 8.71 7.66 7.73 7.13 6.61 6.38 5.65 5.59
Rates are based on mortality from 1983 Table a. Rate for ages not shown will be provided on request and will be computed on a basis consistent with the rates in the above tables. 15 OPTION 3 LIFE INCOME AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Variable Annuity with Assumed Net Return Rate of 5.0%
Payments Guaranteed for a Stated Period of Months ------------------------------------------------- None 60 120 180 240 Age of ---- -- --- --- --- Annuitant Male Female Male Female Male Female Male Female Male Female --------- ---- ------ ---- ------ ---- ------ ---- ------ ---- ------ 50 $5.48 $5.12 $5.46 $5.11 $5.41 $5.09 $5.34 $5.06 $5.24 $5.01 51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.29 5.05 52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.34 5.10 53 5.71 5.30 5.69 5.29 5.62 5.26 5.53 5.22 5.40 5.15 54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.27 5.45 5.20 55 5.89 5.44 5.86 5.43 5.79 5.39 5.67 5.34 5.51 5.25 56 5.99 5.52 5.96 5.51 5.87 5.47 5.74 5.40 5.56 5.31 57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.62 5.37 58 6.21 5.69 6.17 5.67 6.06 5.62 5.90 5.54 5.68 5.42 59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.61 5.74 5.48 60 6.46 5.89 6.41 5.87 6.28 5.80 6.06 5.69 5.79 5.55 61 6.60 6.00 6.55 5.97 6.39 5.90 6.15 5.77 5.85 5.61 62 6.75 6.11 6.69 6.08 6.51 6.00 6.24 5.86 5.91 5.67 63 6.91 6.23 6.84 6.20 6.64 6.10 6.33 5.95 5.96 5.73 64 7.09 6.37 7.00 6.33 6.77 6.22 6.42 6.04 6.02 5.80 65 7.27 6.51 7.18 6.46 6.91 6.34 6.52 6.13 6.07 5.86 66 7.47 6.66 7.36 6.61 7.05 6.46 6.61 6.23 6.12 5.92 67 7.68 6.82 7.55 6.76 7.20 6.60 6.70 6.33 6.16 5.99 68 7.91 7.00 7.76 6.93 7.35 6.74 6.80 6.43 6.21 6.04 69 8.15 7.19 7.98 7.11 7.51 6.89 6.89 6.54 6.25 6.10 70 8.41 7.39 8.21 7.30 7.67 7.04 6.97 6.64 6.28 6.15 71 8.69 7.62 8.45 7.51 7.83 7.21 7.06 6.74 6.32 6.20 72 8.99 7.86 8.70 7.73 8.00 7.38 7.14 6.85 6.35 6.25 73 9.31 8.12 8.97 7.97 8.16 7.55 7.21 6.95 6.37 6.29 74 9.65 8.41 9.26 8.23 8.33 7.73 7.29 7.04 6.39 6.33 75 10.02 8.72 9.55 8.50 8.50 7.92 7.35 7.14 6.41 6.36
Rates are based on mortality from 1983 Table a. Rate for ages not shown will be provided on request and will be computed on a basis consistent with the rates in the above tables. 16 OPTION 4 LIFE INCOME FOR TWO PAYEES JOINT AND LAST SURVIVOR ANNUITY 100% TO THE SURVIVOR NO MINIMUM PERIOD AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Age of Female Annuitant ----------------------- Age of Male Annuitant 45 50 55 60 65 70 75 80 85 - -------------- -- -- -- -- -- -- -- -- -- 45 $3.69 $3.80 $3.90 $3.98 $4.05 $4.11 $4.15 $4.18 $4.20 50 3.75 3.89 4.03 4.16 4.27 4.36 4.43 4.48 4.52 55 3.81 3.97 4.16 4.34 4.51 4.66 4.78 4.86 4.92 60 3.84 4.04 4.27 4.51 4.76 4.99 5.18 5.33 5.43 65 3.87 4.09 4.35 4.66 4.99 5.34 5.66 5.92 6.11 70 3.90 4.13 4.42 4.78 5.19 5.67 6.16 6.61 6.95 75 3.91 4.15 4.47 4.86 5.35 5.95 6.64 7.33 7.95 80 3.92 4.17 4.50 4.92 5.46 6.17 7.04 8.04 9.03 85 3.92 4.18 4.51 4.95 5.53 6.31 7.34 8.63 10.05
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Age of Female Annuitant ----------------------- Age of Male Annuitant 45 50 55 60 65 70 75 80 85 --------- -- -- -- -- -- -- -- -- -- 45 $4.63 $4.72 $4.81 $4.89 $4.96 $5.02 $5.07 $5.10 $5.12 50 4.68 4.80 4.93 5.05 5.16 5.25 5.33 5.38 5.42 55 4.73 4.88 5.04 5.21 5.38 5.52 5.65 5.74 5.80 60 4.77 4.95 5.15 5.37 5.61 5.83 6.04 6.19 6.30 65 4.80 5.00 5.24 5.52 5.83 6.17 6.49 6.76 6.96 70 4.82 5.04 5.30 5.63 6.04 6.49 6.97 7.42 7.79 75 4.84 5.06 5.35 5.72 6.20 6.77 7.45 8.14 8.76 80 4.85 5.08 5.39 5.79 6.31 6.99 7.86 8.84 9.83 85 4.86 5.10 5.41 5.83 6.39 7.15 8.16 9.43 10.86
Rates are based on mortality from 1983 Table a. Rates for ages not shown will be provided on request and will be computed on a basis consistent with the rates in the above tables. 17 OPTION 4 LIFE INCOME FOR TWO PAYEES JOINT AND LAST SURVIVOR ANNUITY 662/3% TO THE SURVIVOR NO MINIMUM PERIOD AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Age of Female Annuitant ----------------------- Age of Male Annuitant 45 50 55 60 65 70 75 80 85 --------- -- -- -- -- -- -- -- -- -- 45 $3.94 $4.06 $4.20 $4.36 $4.54 $4.74 $4.96 $5.19 $5.42 50 4.05 4.20 4.36 4.55 4.76 4.99 5.24 5.51 5.78 55 4.18 4.35 4.54 4.76 5.00 5.28 5.58 5.90 6.22 60 4.32 4.51 4.73 4.99 5.29 5.63 6.00 6.40 6.79 65 4.48 4.69 4.95 5.25 5.61 6.03 6.51 7.02 7.52 70 4.66 4.89 5.18 5.53 5.97 6.49 7.10 7.77 8.45 75 4.84 5.09 5.42 5.82 6.33 6.96 7.73 8.62 9.56 80 5.02 5.30 5.65 6.11 6.69 7.43 8.39 9.54 10.82 85 5.19 5.49 5.87 6.37 7.02 7.88 9.02 10.46 12.15
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Age of Female Annuitant ----------------------- Age of Male Annuitant 45 50 55 60 65 70 75 80 85 --------- -- -- -- -- -- -- -- -- -- 45 $4.87 $4.99 $5.12 $5.28 $5.46 $5.68 $5.93 $6.21 $6.49 50 4.99 5.12 5.27 5.45 5.66 5.90 6.18 6.50 6.82 55 5.12 5.26 5.44 5.65 5.89 6.17 6.50 6.86 7.23 60 5.27 5.43 5.63 5.87 6.16 6.50 6.89 7.32 7.76 65 5.44 5.63 5.85 6.14 6.49 6.90 7.38 7.92 8.47 70 5.64 5.85 6.11 6.44 6.84 7.35 7.96 8.64 9.36 75 5.86 6.09 6.38 6.75 7.23 7.84 8.60 9.49 10.46 80 6.09 6.33 6.65 7.07 7.62 8.34 9.28 10.42 11.71 85 6.30 6.57 6.92 7.38 8.00 8.83 9.93 11.35 13.04
Rates are based on mortality from 1983 Table a. Rates for ages not shown will be provided on request and will be computed on a basis consistent with the rates in the above tables. 18 OPTION 4 LIFE INCOME FOR TWO PAYEES JOINT AND LAST SURVIVOR ANNUITY 50% TO THE SURVIVOR NO MINIMUM PERIOD AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Age of Second Annuitant ----------------------- Age of Annuitant 45 50 55 60 65 70 75 80 85 --------- -- -- -- -- -- -- -- -- -- 45 $4.07 $4.21 $4.38 $4.58 $4.83 $5.13 $5.49 $5.91 $6.35 50 4.22 4.37 4.55 4.77 5.04 5.37 5.77 6.23 6.72 55 4.40 4.56 4.76 5.00 5.29 5.66 6.10 6.62 7.18 60 4.61 4.79 5.00 5.27 5.60 6.01 6.51 7.11 7.76 65 4.87 5.06 5.31 5.61 5.99 6.46 7.04 7.74 8.52 70 5.17 5.39 5.66 6.01 6.44 6.99 7.68 8.52 9.47 75 5.49 5.75 6.06 6.46 6.96 7.61 8.43 9.45 10.64 80 5.84 6.13 6.49 6.95 7.54 8.29 9.29 10.54 12.03 85 6.18 6.51 6.91 7.43 8.11 9.00 10.17 11.71 13.57
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Age of Female Annuitant ----------------------- Age of Male Annuitant 45 50 55 60 65 70 75 80 85 --------- -- -- -- -- -- -- -- -- -- 45 $5.01 $5.14 $5.30 $5.50 $5.75 $6.08 $6.48 $6.96 $7.49 50 5.15 5.29 5.46 5.68 5.95 6.29 6.73 7.25 7.82 55 5.33 5.48 5.66 5.89 6.18 6.56 7.03 7.60 8.24 60 5.56 5.71 5.91 6.16 6.49 6.90 7.42 8.06 8.78 65 5.83 6.01 6.23 6.51 6.87 7.33 7.93 8.67 9.50 70 6.17 6.36 6.61 6.93 7.34 7.87 8.56 9.43 10.43 75 6.55 6.78 7.05 7.42 7.89 8.51 9.33 10.35 11.57 80 6.98 7.23 7.54 7.96 8.51 9.23 10.20 11.44 12.95 85 7.40 7.68 8.05 8.53 9.16 10.00 11.14 12.64 14.51
Rates are based on mortality from 1983 Table a. Rates for ages not shown will be provided on request and will be computed on a basis consistent with the rates in the above tables. 19 OPTION 4 LIFE INCOME FOR TWO PAYEES JOINT AND LAST SURVIVOR ANNUITY 100% TO THE SURVIVOR 120 MONTHS MINIMUM PERIOD AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Age of Female Annuitant ----------------------- Age of Male Annuitant 45 50 55 60 65 70 75 80 85 --------- -- -- -- -- -- -- -- -- -- 45 $3.69 $3.79 $3.89 $3.98 $4.05 $4.11 $4.15 $4.17 $4.19 50 3.75 3.89 4.03 4.16 4.27 4.36 4.42 4.47 4.49 55 3.80 3.97 4.15 4.34 4.51 4.65 4.76 4.83 4.88 60 3.84 4.04 4.26 4.50 4.75 4.97 5.16 5.29 5.36 65 3.87 4.09 4.35 4.65 4.98 5.31 5.61 5.83 5.97 70 3.89 4.13 4.41 4.76 5.17 5.62 6.07 6.43 6.67 75 3.91 4.15 4.46 4.84 5.31 5.87 6.48 7.02 7.40 80 3.91 4.16 4.48 4.89 5.41 6.05 6.79 7.50 8.04 85 3.92 4.17 4.49 4.91 5.46 6.15 6.98 7.83 8.50
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Age of Female Annuitant ----------------------- Age of Male Annuitant 45 50 55 60 65 70 75 80 85 --------- -- -- -- -- -- -- -- -- -- 45 $4.63 $4.72 $4.81 $4.89 $4.96 $5.02 $5.06 $5.09 $5.11 50 4.68 4.80 4.93 5.05 5.15 5.25 5.32 5.36 5.39 55 4.73 4.88 5.04 5.21 5.37 5.51 5.63 5.71 5.75 60 4.77 4.94 5.14 5.37 5.60 5.82 6.00 6.14 6.22 65 4.80 4.99 5.23 5.51 5.82 6.13 6.43 6.66 6.80 70 4.82 5.03 5.29 5.62 6.00 6.44 6.87 7.23 7.47 75 4.84 5.06 5.34 5.70 6.15 6.68 7.27 7.80 8.17 80 4.85 5.07 5.37 5.75 6.24 6.86 7.57 8.26 8.79 85 4.85 5.08 5.38 5.78 6.30 6.96 7.76 8.58 9.23
Rates are based on mortality from 1983 Table a. Rates for ages not shown will be provided on request and will be computed on a basis consistent with the rates in the above tables. 20 OPTION 4 LIFE INCOME FOR TWO PAYEES JOINT AND 1/2 CONTINGENT LIFE INCOME ANNUITY NO MINIMUM PERIOD AMOUNT OF FIRST MONTHLY PAYMENT FOR EACH $1,000 AFTER DEDUCTION OF ANY CHARGE FOR PREMIUM TAXES Rates for a Fixed Annuity with Guaranteed Interest Rate of 3.5% and Rates for a Variable Annuity with Assumed Net Return Rate of 3.5%
Age of Female Annuitant ----------------------- Age of Male Annuitant 45 50 55 60 65 70 75 80 85 --------- -- -- -- -- -- -- -- -- -- 45 $3.94 $4.00 $4.05 $4.10 $4.13 $4.16 $4.18 $4.20 $4.21 50 4.12 4.20 4.41 4.35 4.41 4.46 4.49 4.52 4.54 55 4.32 4.42 4.54 4.64 4.74 4.82 4.88 4.92 4.95 60 4.55 4.68 4.83 4.98 5.13 5.26 5.37 5.45 5.50 65 4.82 4.98 5.17 5.39 5.60 5.81 6.00 6.14 6.24 70 5.14 5.33 5.57 5.84 6.14 6.47 6.77 7.04 7.22 75 5.47 5.70 6.00 6.34 6.74 7.20 7.68 8.13 8.49 80 5.83 6.10 6.45 6.87 7.38 8.00 8.70 9.42 10.07 85 6.17 6.49 6.88 7.38 8.00 8.79 9.74 10.81 11.85
Rates for a Variable Annuity with Assumed Net Return Rate of 5%
Age of Female Annuitant ----------------------- Age of Male Annuitant 45 50 55 60 65 70 75 80 85 --------- -- -- -- -- -- -- -- -- -- 45 $4.88 $4.93 $4.98 $5.02 $5.06 $5.09 $5.11 $5.13 $5.14 50 5.05 5.12 5.19 5.26 5.32 5.36 5.40 5.43 5.45 55 5.25 5.34 5.43 5.53 5.62 5.70 5.77 5.81 5.84 60 5.49 5.61 5.73 5.86 6.01 6.13 6.24 6.32 6.38 65 5.78 5.93 6.09 6.28 6.47 6.67 6.86 7.01 7.11 70 6.13 6.30 6.50 6.74 7.03 7.33 7.62 7.88 8.09 75 6.53 6.72 6.98 7.28 7.66 8.08 8.55 8.98 9.35 80 6.96 7.19 7.49 7.87 8.34 8.91 9.59 10.28 10.92 85 7.39 7.66 8.01 8.46 9.04 9.77 10.67 11.70 12.74
Rates are based on mortality from 1983 Table a. Rates for ages not shown will be provided on request and will be computed on a basis consistent with the rates in the above tables. 21 V. SPECIAL PROVISIONS The Special Provisions section which applies to this Contract is shown on the Specifications page under Type of Plan. The other sections under Special Provisions do not apply. 5.01. Deferred Compensation Plan (a) Control of Contract: All rights in this Contract rest with the Contract Holder, who is entitled to all amounts held under this Contract. The Contract Holder, or authorized designee of the Contract Holder (as allowed by law), may make any choices allowed by this Contract. Any choices made under this Contract must be in writing. Until receipt of such choices in its Home Office, Aetna may rely on any prior choices made. This Contract is not subject to the claims of any creditors of the Participant except to the extent permitted by law. (b) Designation of Beneficiary: The beneficiary shall be the Contract Holder. (c) Maintenance Fee: The Maintenance Fee, if any, (see 6.01) will be deducted from the Current Value on each anniversary of the Contract effective date and upon surrender of the entire Contract. (d) Systematic Withdrawal Option (SWO): A distribution option under which a portion of the Contract's Current Value will automatically be surrendered and distributed each year. (1) Amount of Distribution: The Contract Holder may elect the payment method described below on behalf of the Participant. [bullet] Specified Amount: Payments of a designated dollar amount which must be no greater than 100% of the initial Current Value. This amount will remain constant unless a higher amount is required under the Code minimum distribution rules. Each year that the Specified Amount is in effect, Aetna will calculate the minimum required distribution under the Code and distribute this amount if it is larger than the amount elected by the Contract Holder. The life expectancy factor for this purpose will be the Participant's life expectancy at the time of the election of this option, and with each subsequent calendar year the factor will be reduced by one. The minimum required distribution will be determined by dividing the Current Value as of December 31 of the year prior to the payment year, by a life expectancy factor. The life expectancy factor is either the single life or joint life expectancy, as elected by the Contract Holder on behalf of the Participant, based on tables in Section 401(a)(9) of the Code or related regulations. If the joint life expectancy is elected, upon either the Participant's or the spouse's death, the minimum required distribution for the Specified Amount payment method will continue to be calculated in the same manner as described under Specified Amount. Payments upon the 22 Participant's death will continue in the manner described above, unless the spouse elects an alternate payment mode. Any mode elected must provide payments to be made at least as rapidly as those made prior to the Participant's death. These calculations may be changed as necessary to comply with the Code minimum distribution rules. The joint life expectancy factor can only be elected based on the joint life expectancy of the Participant and his or her spouse. (2) Minimum Initial Current Value: At its discretion, Aetna may require a Minimum Initial Current Value for election of this option. If after election of this option the Current Value is insufficient to make a scheduled SWO payment, Aetna will distribute the entire Contract balance. (3) Date of Distribution: The Contract Holder shall specify the initial distribution date on behalf of the Participant. The Specified Amount payment method must be elected when the Participant is eligible to begin receiving payments under the Plan. SWO payments will be made quarterly, semi-annually or annually. (4) Election and Revocation: SWO may be elected by the Contract Holder on behalf of the Participant by submitting a completed and signed election form to Aetna's Home Office. Once elected, this option may be revoked by the Contract Holder on behalf of the Participant by submitting a written request to Aetna at its Home Office. Any revocation will apply only to amounts not yet paid. SWO may be elected only once. (5) Reservation of Rights: Aetna reserves the right to change the terms of SWO for future elections and discontinue the availability of this option after proper notification. Aetna also reserves the right to allow payments to be made more frequently than quarterly. (e) Sum Payable at Death (Before Annuity Payments Start): Aetna will pay the Current Value as directed by the Contract Holder if: (1) The Participant dies before Annuity payments start; and (2) The notice of death is received in good order by Aetna. The sum paid will be the Current Value on the date the notice is received at Aetna's Home Office. The amount paid from the Fixed Account will not be less than the Net Purchase Payment(s) allocated to the Fixed Account plus interest (less any prior transfers (see 3.09), surrenders, Maintenance Fees, or amounts used to purchase Annuity Options). The Contract Holder may choose to apply all or any part of the proceeds to an Annuity Option (see Part IV). 23 (f) Surrender Value: After deduction of the Maintenance Fee (if any), Aetna will reduce the amount payable upon surrender of any portion of the Current Value by a Surrender Fee. The Surrender Fee will be in accordance with the Surrender Fee table in 6.02. The Fee on a total surrender of the Contract will not exceed 8.5% of the Purchase Payment(s) made to the Contract . (g) The following Sections 5.02, 5.03 and 5.04 of the Special Provisions do not apply to this Contract. 5.02. Tax Deferred Annuity Plan (a) The preceding Section 5.01 of the Special Provisions does not apply to this Contract. (b) Control of Contract: Each Contract Holder shall own all amounts held in his or her Contract. Each Contract Holder may make any choices allowed by this Contract. Choices made under this Contract must be in writing. Until receipt of such choices in its Home Office, Aetna may rely on any previous choices made. This Contract and any accounts shall not be subject to the claims of any creditors. This Contract is nonassignable, and nontransferable except to Aetna in the event of any outstanding loan plus interest, or pursuant to a "qualified domestic relations order" as set forth under the Retirement Equity Act of 1984. (c) Designation of Beneficiary: Each Contract Holder shall name a beneficiary. The beneficiary may be changed at any time. Until receipt of a written request to change the beneficiary, Aetna may rely upon the last named beneficiary. (d) Maintenance Fee: The Maintenance Fee, if any, (see 6.01) will be deducted from the Current Value on each anniversary of the Contract effective date and upon surrender of the entire Contract. (e) Loan Value: During the Accumulation Period, the Contract Holder may request a loan from his or her Current Value by submitting a loan request form to Aetna's Home Office. A loan may not be requested within 12 months from the date of any prior loan. The following conditions must also be met: (1) The minimum Current Value must be $5,000. The loan amount must be at least $3,500. The loan amount may not exceed the lesser of: [bullet] 50% of the vested Current Value reduced by the outstanding loan balance on the date on which the loan is made; or [bullet] $50,000 reduced by the highest outstanding balance of loans within the preceding 12 months ending on the day before the loan is made. However, if the Current Value is between $5,000 and $20,000, the loan amount is the lesser of: [bullet] 75% of the vested Current Value reduced by the outstanding loan balance on the date on which the loan is made; or [bullet] $10,000 reduced by the outstanding loan balance on 24 the date on which the loan is made. Loans can be made from those Contract values held in the Fund(s) and the Fixed Account. Aetna reserves the right to restrict or limit the amount that may be borrowed from any investment option at any time. However, the full value of all investment options is included in the determination of the Current Value. When a loan is made, the number of accumulation units equal to the loan amount will be withdrawn from the Current Value. Accumulation Units taken from the Current Value to provide a loan do not participate in the investment experience of the related investment options. Unless instructed otherwise, the amount withdrawn will be allocated on a pro rata basis among the Fixed Account and the Fund(s). (2) Loan interest will accrue on a daily basis at the rate of 3% annually. (3) Principal and interest on loans will be amortized over a 5 year term. However, principal and interest on loans taken for the acquisition of a Contract Holder's principal residence may be amortized over a period of 1 to 20 whole years, as elected by the Contract Holder. The projected final repayment must be no later than the end of the calendar year in which the Contract Holder attains age 70. (4) Repayment of principal and interest is required at 3 month intervals. A bill in the amount of the quarterly repayment due will be mailed to the Contract Holder in advance of the payment due date. The repayment due date will be the first business day of the third calendar month following the 7th calendar day after the loan effective date. The loan effective date will be the date Aetna receives the loan request form in good order. Payment will be due before the end of the month in which the due date falls. (5) The repayments of principal will be allocated among the same Contract investment options and in the same proportion as when the loan was initially made. (6) if a billed quarterly installment of principal and interest is not paid by the last day of the month in which it is due, a partial surrender equal to the quarterly amount of principal and interest due, and a Surrender Fee, as applicable, will be made from the Contract. (7) If a partial surrender is taken from a Contract Holder's Current Value due to nonpayment of a billed quarterly installment, the date of the surrender will be the first business day following the last day of the month in which the repayment was due. (8) If a repayment is received in excess of a billed amount, the excess will be applied towards 25 the principal portion of the outstanding loan. Payments received which are less than the billed amount will be returned to the Contract Holder. (9) Prepayment of the entire loan will be allowed. At the time of prepayment, Aetna will bill the Contract Holder for any accrued interest. Aetna will consider the loan paid when this accrued interest is paid. (10) If a Contract is surrendered or annuitized with an outstanding loan balance, the loan is cancelled and taxable. Accrued interest and any applicable Surrender Fee will be deducted from the surrender amount. If the Contract is surrendered due to the Contract Holder's death, no surrender fee will be deducted. (f) Estate Conservation Option (ECO) Distribution Option: ECO is a distribution option under which a portion of the Contract's Current Value will automatically be surrendered and distributed each year. (1) An ECO payment will be determined in the following manner: a. Payments will commence no earlier than the year in which the Contract Holder attains age 70 1/2, and will be calculated on the full Contract Current Value of the account, except as provided in b. b. If Aetna maintains separate records of the Contract Current Value as of December 31, (see below), payments made in or after the year in which the Contract Holder attains age 70 1/2, but before attaining age 75, will only be calculated on amounts contributed after December 31,1986, plus all investment earnings after that date. The method under this rule is only used upon election by the Contract Holder. It will no longer be effective if the Contract Holder submits a withdrawal request in addition to a scheduled ECO payment from the account, at which time ECO payments will then be determined under a. Aetna will maintain separate records if the Contract Holder has not requested any withdrawals from his or her account since December 31,1986. If the Contract Holder has attained age 70 1/2 prior to January 1, 1988 or is a participant in a governmental or church plan, the Contract Holder must be retired in order to qualify for the exception under (b). (2) Amount of Distribution: Each year that ECO is in effect, Aetna will calculate and distribute an amount equal to the minimum required distribution under the Code. The annual distribution will be determined by dividing the Current Value, including any current loan(s) outstanding, as of December 31 of the year prior to the payment year, by a life expectancy factor. 26 As elected by the Contract Holder, the factor is either the single life or joint life expectancy based on tables in Section 401(a)(9) of the Code or related regulations. If joint life expectancy is elected, the payments upon death will be calculated based on the survivor's life expectancy. If there is no survivor, the Current Value will be paid in a lump sum to the survivor's estate. These calculations may be changed as necessary to comply with the Code minimum distribution rules. The joint life expectancy factor can only be elected based on the joint life expectancy of the Contract Holder and his or her spouse. The spouse must be named as the beneficiary of any death benefits under the Plan while ECO is in effect. (3) Minimum Initial Current Value: At its discretion, Aetna may require a Minimum Initial Current Value for election of this option. If after election of this option, the Current Value is insufficient to make a scheduled ECO payment, Aetna will distribute the entire Contract balance. (4) Date of Distribution: Distribution will be made annually on the 15th of any month or such other date Aetna may designate or allow. The Contract Holder shall specify an initial distribution month, not earlier than the calendar year in which the Contract Holder attains age 70 1/2. (5) Election and Revocation: ECO may be elected by the Contract Holder by submitting a completed and signed election form to Aetna's Home Office. Once elected, this option may be revoked by the Contract Holder by submitting a written request to Aetna at its Home Office. Any revocation will apply only to amounts not yet paid. ECO may be elected only once. (6) Reservation of Rights: Aetna reserves the right to change the terms of ECO for future elections and discontinue the availability of this option after proper notification. Aetna also reserves the right to allow payments to be made more frequently than annually. (g) Systematic Withdrawal Option (SWO): A distribution option under which a portion of the Contract's Current Value will automatically be surrendered and distributed each year. (1) Amount of Distribution: The Contract Holder may elect one of the two payment methods described below. [bullet] Specified Amount: Payments of a designated dollar amount which must be no greater than 10% of the initial Current Value. This amount will remain constant unless a higher amount is required under the Code minimum distribution rules. Each year that the Specified Amount is in effect, Aetna will calculate the minimum required distribution under the Code 27 and distribute this amount if it is larger than the amount elected by the Contract Holder. The life expectancy factor for this purpose will be the Contract Holder's life expectancy for the initial distribution year and with each subsequent calendar year, the factor will be reduced by one. The minimum required distribution will be determined by dividing the Current Value, including any current loan(s) outstanding, as of December 31 of the year prior to the payment year, by a life expectancy factor. [bullet] Specified Period: Payments which are made over a period of time. The Period must be at least 10 years unless otherwise required by the Code minimum distribution rules. The maximum specified period will be limited by the Code minimum distribution rules. The annual amount paid each year is calculated by dividing the Current Value as of December 31 of the prior year by the number of payment years remaining. The life expectancy factor is either the single life or joint life expectancy, as elected by the Contract Holder, based on tables in the Code or related regulations. If the joint life expectancy is elected, upon either the Contract Holder's or the spouse's death, the minimum required distribution for the Specified Amount payment method will continue to be calculated in the same manner as described under Specified Amount. These calculations may be changed as necessary to comply with the Code minimum distribution rules. The joint life expectancy factor can only be elected based on the joint life expectancy of the Contract Holder and his or her spouse. The spouse must be named as the beneficiary of any death benefits under the Contract while SWO is in effect. Upon death, payments will continue in the manner described above under Specified Amount and Specified Period, unless otherwise elected by the beneficiary. Any mode elected by the beneficiary, must provide payments to be made at least as rapidly as those made prior to the Contract Holder's death. (2) Minimum Initial Current Value: At its discretion, Aetna may require a Minimum Initial Current Value for election of this option. If after election of this option the Current Value is insufficient to make a scheduled SWO payment, Aetna will distribute the entire Contract balance. (3) Date of Distribution: The Contract Holder shall specify the initial distribution date. The earliest date is the first day of the calendar year in which the Contract Holder attains age 70 1/2. SWO payments will be made annually. 28 Subsequent distributions will be made annually on the 15th of the month or such other date Aetna may designate or allow. (4) Election and Revocation: SWO may be elected by the Contract Holder by submitting a completed and signed election form to Aetna's Home Office. Once elected, this option may be revoked by the Contract Holder by submitting a written request to Aetna at its Home Office. Any revocation will apply only to amounts not yet paid. SWO may be elected only once. (5) Reservation of Rights: Aetna reserves the right to change the terms of SWO for future elections and discontinue the availability of this option after proper notification. Aetna also reserves the right to allow payments to be made more frequently than annually. (h) Sum Payable at Death (Before Annuity Payments Start): The Current Value payable under the terms of this section will be reduced by the amount of the accrued interest on any outstanding loan. Aetna will pay the Current Value to the beneficiary when: (1) The Contract Holder dies before Annuity payments start; and (2) The notice of death is received in good order by Aetna. The sum payable will be the Current Value on the date when the notice is received in good order at Aetna's Home Office. The amount paid from the Fixed Account will not be less than the Net Purchase Payment(s) allocated to the Fixed Account plus interest (less any prior transfers (see 3.09), surrenders, Maintenance Fees, or amounts used to purchase Annuity Options). The beneficiary may choose to apply any sum under an Annuity Option (see Part IV), subject to any other terms and conditions of this Contract, or to receive a lump sum. If the beneficiary is the surviving spouse, the first Annuity payment or the lump sum payment may be deferred to a date not later than December 31 of the year in which the Contract Holder would have attained age 70 1/2 or such later date as may be allowed under Federal law or regulations. If the beneficiary is not the surviving spouse, all of the Current Value must either be applied to an Annuity Option within one calendar year of the Contract Holder's death or be paid to the beneficiary within 5 calendar years of the Contract Holder's death (see Part IV). In no event may payments to any beneficiary under an Annuity Option extend beyond the life of the beneficiary or any period certain greater than the beneficiary's life expectancy. If no beneficiary exists, the payment will be made to the estate of the Contract Holder. (i) Surrender Value: After deduction of the Maintenance Fee, if any, the amount payable by Aetna upon the total surrender of a Contract with a loan(s) outstanding shall be reduced by accrued interest and if applicable, a Surrender Fee on the loan amount. 29 The Surrender Fee will be in accordance with the Surrender Fee table in 6.02. The fee on a total surrender of the Contract will not exceed 8.5% of the actual Purchase Payment(s) made to the Contract. If the Contract Holder does not request commencement of benefits as described in subsection (I), Aetna will not be responsible for compliance with the Code 401(a)(9) minimum distribution requirements and for any adverse tax consequences that may result. (j) Surrender Restrictions: Limitations apply to full and partial surrenders of the Restricted Amount from this Contract, as required by Code Section 403(b)(11). The Restricted Amount is the sum of: (1) Net Purchase Payments attributable to Contract Holder salary reduction contributions made on and after January 1, 1989; plus (2) The net increase, if any, in the Current Value of the account after December 31, 1988 attributable to investment gains and losses and credited interest. The Restricted Amount may be fully or partially surrendered only if one or more of the following conditions are met: (1) The Contract Holder has reached age 59 1/2; (2) The Contract Holder has separated from service; (3) The Contract Holder has died; (4) The Contract Holder has become disabled, within the meaning of Code Section 72(m)(7); or (5) The withdrawal is otherwise allowed by federal law, regulations or rulings. A full or partial surrender is also allowed if the Contract Holder incurs a "hardship" as that term is defined in the Code or regulations under 403(b). However, the amount available for hardship is limited to the lesser of the amount necessary to satisfy the need, or the Net Purchase Payments attributable to Contract Holder salary reduction contributions made on and after January 1, 1989. Aetna may require that the Contract Holder certify and/or provide satisfactory proof that one of these conditions has been met before a surrender request will be considered to be in good order. The Contract Holder or beneficiary must notify Aetna in writing when a lump sum payment is to be made or Annuity payments are to commence. (k) Limitation on Contributions: The Purchase Payment(s) made to the Contract in any year cannot exceed the lesser of the amount determined under the exclusion allowance of Code Section 403(b)(2) or the annual additions limitation of Code Section 415(c)(1). In addition, in no event may the Purchase Payment(s) attributable to elective deferrals as defined in Code Section 402(g) exceed $9,500 (or, such larger amount as adjusted by the Secretary of the Treasury) during any calendar year, unless the alternate limitation of Code Section 402(g)(8) applies. 30 (l) Timing of Distributions: The distribution of benefits accrued after December 31, 1986, must be made in a lump sum or must begin not later than the April 1 following the calendar year in which the Contract Holder attains age 70 1/2. The above does not apply if the Contract Holder is affiliated with a governmental entity or a church or attains age 70 1/2 before January 1, 1988. For such a Contract Holder, the distribution of benefits accrued after December 31, 1986, must be made or must begin not later than the April 1 following the calendar year in which the Contract Holder attains age 70 1/2 or retires, whichever occurs later. The required distribution described in either of the above rules must be made over the life of the Contract Holder (or the joint lives of the Contract Holder and beneficiary) or over a period not exceeding the life expectancy of the Contract Holder (or the joint life expectancies of the Contract Holder and the beneficiary). If the Contract Holder does not request commencement of benefits as described above, Aetna will not be responsible for compliance with the Code 401(a)(9) minimum distribution requirements and for any adverse tax consequences that may result. (m) The following Sections 5.03 and 5.04 of the Special Provisions does not apply to this Contract. 5.03. Tax Deferred Annuity Plan (ERISA) (a) The preceding Sections 5.01 and 5.02 of the Special Provisions do not apply to this Contract. (b) Control of Contract: This is a Contract between the Contract Holder and Aetna only to satisfy the "purchase" requirements of Code Section 403(b)(1), as amended. The Contract Holder has no right, title, or interest in the amounts held under the Contract either by reason of remitting Purchase Payments or applying for this Contract. The Contract Holder shall notify Aetna in writing of the applicability of Title 1 of the Employee Retirement Income Security Act of 1974 as amended by subsequent law including the Retirement Equity Act of 1984 (Act) to the Contract. Aetna shall rely on the Contract Holder's determination and representation of applicability. Each Participant shall own all amounts held in his or her Contract. Each Participant may make any choices allowed by this Contract. Choices made under this Contract must be in writing. Until receipt of such choice in its Home Office, Aetna may rely on any previous choices made. This Contract shall not be subject to the claims of any creditors. This Contract is nonassignable and nontransferable, except to Aetna in the event of any outstanding loan plus interest, or pursuant to a "qualified domestic relations order" as set forth under the Act. (c) Designation of Beneficiary: Each Participant shall name a beneficiary. However, if the Participant is married 31 on the date of death, Aetna shall disregard the named beneficiary and shall treat the current spouse as sole beneficiary, if: (1) The Participant had not reached age 35; or (2) The Participant had reached age 35, and the appropriate preretirement survivor benefit waiver and spousal consent form(s) has not been submitted to Aetna. Any existing or future beneficiary designations not in conformance with this provision are null and void. The designation of a beneficiary by an unmarried Participant must be accompanied by the appropriate spousal consent form. (d) Maintenance Fee: The Maintenance Fee, if any, (see 6.01) will be deducted from the Current Value on each anniversary of the Contract effective date and upon surrender of the entire Contract. (e) Loan Value: During the Accumulation Period, the Participant may request a loan from his or her Current Value by submitting a loan request form to Aetna's Home Office. If the Participant is married, his or her spouse must consent in writing and in a form acceptable to Aetna before the loan will be made. A loan will not be allowed within 12 months from the date of any prior loan. The Loan Effective Date will be the date the Home Office receives the loan request form and spousal consent, if necessary, in good order. All loans are subject to the following conditions: (1) The minimum vested Current Value must be $2,000. The loan amount must be at least $1,000. The loan amount may not exceed the lesser of: [bullet] 50% of the vested Current Value reduced by any outstanding loan balance(s) on the date on which the loan is made; or [bullet] $50,000 reduced by the highest outstanding balance(s) of loans within the preceding 12 months ending on the day before the current loan is made. (2) Loans can be made from those Contract values held in the Fund(s) and the Fixed Account. Aetna reserves the right to restrict or limit the amount that may be loaned from any investment option at any time. When a loan is made, the number of accumulation units equal to the loan amount will be withdrawn from the Current Value. The amount of the loan will be withdrawn on a pro rata basis from the Fixed Account and from each of the Fund(s). Accumulation Units taken from the Current Value to provide a loan do not participate in the investment experience of the related investment options from which they were withdrawn. (3) On the first business day of each calendar month, Aetna will determine a Loan Interest Rate. This rate will be equal to Moody's Corporate Bond Yield Average - Monthly Average 32 Corporates as published by Moody's Investors Service, Inc. for the calendar month beginning two months before the date on which the new Loan Interest Rate is effective. The Loan Interest Rate for the calendar month in which the loan is effective will apply for one year from the Loan Effective Date. Annually on the anniversary of the Loan Effective Date, the rate will be adjusted to equal the Loan Interest Rate determined for the month in which the loan anniversary occurs. (4) Principal and interest on loans must be amortized in quarterly installments over a 5 year term. If the Loan Interest Rate is adjusted, future repayments will be adjusted so that the outstanding loan balance is amortized in equal quarterly installments over the remaining term. A quarterly processing fee equal to .74% of the outstanding loan balance will be deducted from each repayment and retained by Aetna. The remainder of each repayment will be credited to the Contract. Repayment amounts credited to the Contract will be allocated among the same investment options and in the same proportions as amounts were withdrawn to make the loan. (5) A bill in the amount of the quarterly repayment due will be mailed to the Participant in advance of the repayment due date. The repayment due date will be the first business day of the third calendar month following the 7th calendar day after the loan effective date. The repayment will be in default if it is not received by Aetna at its Home Office before the end of the month in which the due date falls. (6) If a repayment is in default, an amount equal to the repayment amount and any applicable deferred sales charge will be deducted from the Contract as a deemed partial surrender. The date of the surrender will be the first business day following the last day of the month in which the repayment was due. The surrendered amount will automatically be applied to make the repayment that is in default and will thereafter be subject to (4). (7) If a repayment is received in excess of a billed amount, the excess will be applied towards the principal portion of the outstanding loan. Repayments received which are less than the billed amount will be returned to the Participant; therefore, the repayment will be in default and (6) will apply. (8) Prepayment of the entire loan will be allowed. At the time of prepayment, Aetna will bill the Participant for any accrued Loan Interest in accordance with (4). Aetna will consider the loan paid when this amount is received. (9) If a Contract is surrendered while there is an outstanding loan balance, accrued Loan Interest and any applicable Surrender Fee will be deducted from the Current Value. 33 (10) If a Contract is surrendered or annuitized with an outstanding loan balance, the loan is canceled and taxable. Accrued Loan Interest will be deducted from the Current Value and this interest then will be treated as a quarterly repayment under (4). (f) Estate Conservation Option (ECO) Distribution Option: ECO is a distribution option under which a portion of the Contract's Current Value will automatically be surrendered and distributed each year. (1) An ECO payment will be determined in the following manner: a. Payments shall commence no earlier than the year in which the Participant attains age 70 1/2, and will be calculated on the full Contract Current Value of the account, except as provided in b. b. If Aetna maintains separate records of the Contract Current Value as of December 31, (see below), payments made on or after the year in which the Participant attains age 70 1/2 but before attaining age 75, will be calculated only on amounts contributed after December 31, 1986, plus all investment earnings after that date. The method under this rule is only used upon the Participant's election and no longer will be effective if he or she submits a withdrawal request in addition to a scheduled ECO payment from the account, at which time ECO payments will then be determined under a. Aetna will maintain separate records if the Participant has not requested any withdrawals from his or her Contract since December 31, 1986. If the Participant has attained age 70 1/2 prior to January 1, 1988 or is a participant in a governmental or church plan, the Participant must be retired in order to quality for the exception under (b). (2) Amount of Distribution: Each year that ECO is in effect, Aetna will calculate and distribute an amount equal to the minimum required distribution under the Code. The annual distribution will be determined by dividing the Current Value, including any current loan(s) outstanding, as of December 31 of the year prior to the payment year, by a life expectancy factor. As elected by the Participant, the factor is either the single life or joint life expectancy based on tables in Section 401(a)(9) of the Code or related regulations. If joint life expectancy is elected, and the Participant or spouse dies, payments will be calculated based on the survivor's life expectancy. These calculations may be changed as necessary to comply with the Code minimum distribution rules. The joint life expectancy factor can only be elected based on the joint life expectancy of the Participant and his or her spouse. 34 The spouse must be named as the beneficiary of any death benefits under the Plan while ECO is in effect. (3) Minimum Initial Current Value: At its discretion, Aetna may require a Minimum Initial Current Value for election of this option. If after election of this option, the Current Value is insufficient to make a scheduled ECO payment, Aetna will distribute the entire Contract balance. (4) Date of Distribution: The Participant shall specify the initial distribution date. The earliest date is the first day of the calendar year in which the Participant attains age 70 1/2. Subsequent distributions will be made annually on the 15th of the month or such other date Aetna may designate or allow. (5) Election and Revocation: ECO may be elected by the Participant by submitting a completed and signed election form to Aetna's Home Office. The Participant also must submit the appropriate joint and survivor annuity waiver and spousal consent form(s) to Aetna at its Home Office. Once elected, this option may be revoked by the Participant by submitting a written request to Aetna at its Home Office. Any revocation will apply only to amounts not yet paid. ECO may be elected only once. (6) Reservation of Rights: Aetna reserves the right to change the terms of ECO for future elections and discontinue the availability of this option after proper notification. Aetna also reserves the right to allow payments to be made more frequently than annually. (g) Systematic Withdrawal Option (SWO): A distribution option under which a portion of the Contract's Current Value will automatically be surrendered and distributed each year. (1) Amount of Distribution: The Participant may elect one of the two payment methods described below. [bullet] Specified Amount: Payments of a designated dollar amount which must be no greater than 10% of the Initial Current Value. This amount will remain constant unless a higher amount is required under the Code minimum distribution rules. Each year that the Specified Amount is in effect, Aetna will calculate the minimum required distribution under the Code and distribute this amount if it is larger than the amount elected by the Participant. The life expectancy factor for this purpose will be the Participant's life expectancy at the time of the election of this option, and with each subsequent calendar year the factor will be reduced by one. The minimum required distribution will be determined by dividing the Current Value, including any current loan(s) outstanding, as of December 31 of the year prior to the payment year, by a life expectancy factor. 35 [bullet] Specified Period: Payments which are made over a period of time. The Period must be at least 10 years unless otherwise required by the Code minimum distribution rules. The maximum specified period will be limited by the Code minimum distribution rules. The annual amount paid each year is calculated by dividing the Current Value as of December 31 of the prior year, including any outstanding loan(s), by the number of payment years remaining. The life expectancy factor is either the single life or joint life expectancy, as elected by the Participant, based on tables in Section 401(a)(9) of the Code or related regulations. If the joint life expectancy is elected, upon either the Participant's or the spouse's death, the minimum required distribution for the Specified Amount payment method will continue to be calculated in the same manner as described under Specified Amount. Payments upon the Participant's death will continue in the manner described above, unless the spouse elects an alternate payment mode. Any mode elected must Provide payments to be made at least as rapidly as those made prior to the Participant's death. These calculations may be changed as necessary to comply with the Code minimum distribution rules. The joint life expectancy factor can only be elected based on the joint life expectancy of the Participant and his or her spouse. The spouse must be named as the beneficiary of any death benefits under the Contract while SWO is in effect. (2) Minimum Initial Current Value: At its discretion, Aetna may require a Minimum Initial Current Value for election of this option. If after election of this option the Current Value is insufficient to make a scheduled SWO payment, Aetna will distribute the entire Contract balance. (3) Date of Distribution: The Participant shall specify the initial distribution date. The earliest date is the first day of the calendar year in which the Participant attains age 70 1/2. SWO payments will be made annually. Subsequent distributions will be made annually on the 15th of the month or such other date Aetna may designate or allow. (4) Election and Revocation: SWO may be elected by the Participant by submitting a completed and signed election form to Aetna's Home Office. The Participant must also submit the appropriate joint and survivor annuity waiver and spousal consent form(s) to Aetna at its Home Office. Once elected, this option may be revoked by the Contract Holder by submitting a written request to Aetna at its Home Office. Any 36 revocation will apply only to amounts not yet paid. SWO may be elected only once. (5) Reservation of Rights: Aetna reserves the right to change the terms of SWO for future elections and discontinue the availability of this option after proper notification. Aetna also reserves the right to allow payments to be made more frequently than annually. (h) Sum Payable at Death (Before Annuity Payments Start): The Current Value payable under the terms of this section will be reduced by the amount of the accrued interest on any outstanding loan. Aetna will pay the Current Value to the beneficiary when: (1) The Participant dies before Annuity payments start; and (2) The notice of death is received in good order by Aetna. The sum payable will be the Current Value on the date when the notice is received in good order at Aetna's Home Office. The amount paid from the Fixed Account will not be less than the Net Purchase Payment(s) allocated to the Fixed Account plus interest (less any prior transfers (see 3.09), surrenders, Maintenance Fees, or amounts used to purchase Annuity Options). The beneficiary may choose to apply any sum under an Annuity Option (see Part IV), subject to any other terms and conditions of this Contract, or to receive a lump sum. If the beneficiary is the surviving spouse, the first Annuity payment or the lump sum payment may be deferred to a date not later than when the Participant would have attained age 70 1/2 or such later date as may be allowed under Federal law or regulations. If the beneficiary is not the surviving spouse, all of the Current Value must either be applied to an Annuity Option within one year of the Participant's death or be paid to the beneficiary within 5 years of the Participant's death (see Part IV). In no event may payments to any beneficiary under an Annuity option extend beyond the life of the beneficiary or any period certain greater than the beneficiary's life expectancy. if no beneficiary exists, the payment will be made to the Participant's estate. (i) Surrender Value: After deduction of the Maintenance Fee, if any, the amount payable by Aetna upon the total surrender of a Contract with a loan(s) outstanding shall be reduced by accrued interest and if applicable, a Surrender Fee on the loan amount. The Surrender Fee will be in accordance with the Surrender Fee table in 6.02. The fee on a total surrender of the Contract will not exceed 8.5% of the actual Purchase Payment(s) made to the Contract. If the Participant is married, his or her spouse must consent in writing to any request for a partial surrender. This consent must be given within the 90 day period before the partial surrender is to be made. A full surrender will be paid to a married Participant only as a Joint and 37 1/2 Contingent Life Income Annuity (see 4.08), unless the Participant's spouse consents in writing to one of the other Annuity Options or a lump sum payment. This consent must be given within the 90 day period ending on the date payment is to be made. If a lump sum payment is elected in lieu of an Annuity Option, it must be paid no later than the April 1 of the calendar year following the year in which the Participant turns age 70 1/2 or such later date as may be allowed under federal law or regulations. If the Contract Holder does not request commencement of benefits as described in subsection (1), Aetna will not be responsible for compliance with the Code 401(a)(9) minimum distribution requirements and for any adverse tax consequences that may result. At Aetna's discretion, a full surrender may be allowed without spousal consent if the Current Value is $3,500 or less. (j) Surrender Restrictions: Limitations apply to full and partial surrenders of the Restricted Amount from this Contract, as required by Code Section 403(b)(11). The Restricted Amount is the sum of: (1) Net Purchase Payments attributable to Participant salary reduction contributions made on and after January 1, 1989; plus (2) The net increase, if any, in the Current Value of the account after December 31, 1988 attributable to investment gains and losses and credited interest. The Restricted Amount may be fully or partially surrendered only if one or more of the following conditions are met: (1) The Participant has reached age 59 1/2; (2) The Participant has separated from service; (3) The Participant has died; (4) The Participant has become disabled, within the meaning of Code Section 72(m)(7); or (5) The withdrawal is otherwise allowed by federal law, regulations or rulings. A full or partial surrender is also allowed if the Contract Holder incurs a "hardship" as that term is defined in the Code or regulations under 403(b). However, the amount available for hardship is limited to the lesser of the amount necessary to satisfy the need, or the Net Purchase Payments attributable to Contract Holder salary reduction contributions made on and after January 1, 1989. Aetna may require that the Contract Holder certify and/or provide satisfactory proof that one of these conditions has been met before a surrender request will be considered to be in good order. The Contract Holder or beneficiary must notify Aetna in writing when a lump sum payment is to be made or Annuity payments are to commence . (k) Limitation on Contributions: The Purchase Payment(s) made to the account in any year cannot exceed the lesser of the amount determined under the exclusion allowance of Code Section 403(b)(2) or the annual 38 additions limitation of Code Section 415(c)(1). In addition, in no event may the Purchase Payment(s) attributable to elective deferrals as defined in Code Section 402(g) exceed $9,500 (or, such larger amount as adjusted by the Secretary of the Treasury) during any calendar year, unless the alternate limitation of Code Section 402(g)(8) applies. (l) Timing of Distributions: The distribution of benefits accrued after December 31, 1986, must be made in a lump sum or must begin not later than the April 1 following the calendar year in which the Contract Holder attains age 70 1/2. The above does not apply if the Contract Holder is affiliated with a governmental entity or a church. For such a Contract Holder, the distribution of benefits accrued after December 31, 1986, must be made or must begin not later than the April 1 of the calendar year following the calendar year in which the Contract Holder attains age 70 1/2 or retires, whichever occurs later. The required distribution described in either of the above rules must be made over the life of the Contract Holder (or the joint lives of the Contract Holder and beneficiary) or over a period not exceeding the life expectancy of the Contract Holder (or the joint life expectancies of the Contract Holder and the beneficiary). If the Contract Holder does not request commencement of benefits as described above, Aetna will not be responsible for compliance with the Code 401(a)(9) minimum distribution requirements and for any adverse tax consequences that may result. (m) The following Section 5.04 of the Special Provisions does not apply to this Contract. 5.04 Individual Annuity Plan (a) The preceding Sections 5.01, 5.02 and 5.03 of the Special Provisions do not apply to this Contract. (b) Control of Contract: All rights in this Contract rest with the Contract Holder. The Contract Holder owns all amounts held under this Contract. The Contract Holder may make any choices allowed by this Contract. Choices made under this Contract must be in writing. Until receipt of such choices at its Home Office, Aetna may rely on any previous choices made. (c) Designation of Beneficiary: The Contract Holder shall name the beneficiary. The beneficiary may be changed at any time. Until receipt of a written request to change the beneficiary, Aetna may rely upon the last named beneficiary. (d) Maintenance Fee: The Maintenance Fee, if any, (see 6.01 ) will be deducted from the Current Value on the anniversary of the Contract effective date and on surrender of the entire Contract. (e) Sum Payable at Death (Before Annuity Payments Start): Aetna will pay the Current Value to the beneficiary if: (1) The Contract Holder dies before Annuity payments start; and 39 (2) The notice of death is received in good order by Aetna. The sum paid will be the Current Value on the date the notice is received in good order at Aetna's Home Office. The amount paid from the Fixed Account will not be less than the Net Purchase Payment(s) allocated to the Fixed Account including Fixed Account interest added by Aetna (less any prior transfers, (see 3.09) surrenders, Maintenance Fees, or amounts used to purchase Annuity Options). The following choices are available to any beneficiary subject to any other terms and conditions of this Contract and this section. The beneficiary may choose to: (a) Apply any sum to an Annuity Option (see 4.08); (b) Maintain the Contract, or allocate any amount to any of the available investment options; or (c) Receive a lump sum payment. If the beneficiary is the surviving spouse, the beneficiary shall be treated as the successor Contract Holder on Aetna's records. Such successor Contract Holder may exercise all rights under the Contract. If the beneficiary is not the surviving spouse, all of the Current Value must either be applied to Annuity Options 2, 3 or 4 within one year of the Contract Holder's death, or be paid to the beneficiary within 5 years of the Contract Holder's death (see 4.08). If no beneficiary exists, payment will be made to the estate of the Contract Holder. (f) Surrender Value: After deduction of the Maintenance Fee, if any, Aetna will reduce the amount payable upon surrender of any portion of the Current Value by a Surrender Fee. The Surrender Fee will be in accordance with the Surrender Fee table in 6.02. The Fee on a total surrender of the Contract will not exceed 8.5% of the actual Purchase Payment(s) made to the Contract. 40 VI. FEE SCHEDULE DEFERRED COMPENSATION PLAN 6.01. Maintenance Fee: The Maintenance Fee will be $0. 6.02. Surrender Fee: For each surrender, the Surrender Fee will vary according to the period of time between the Effective Date of the Contract and the date of surrender. The Surrender Fee will be determined as follows: If Period of Time is Surrender Fee Less than 5 years 5% From 5 to 6 years 4% From 6 to 7 years 3% From 7 to 8 years 2% From 8 to 9 years 1% 9 or more years 0% No Surrender Fee is deducted from any portion of the Current Value which is paid: (a) At the death of the Annuitant before Annuity payments start; (b) As a premium for an Annuity under this Contract; (c) For a full surrender where the Current Value is equal to $2,500 or less and no surrenders have been taken from the Contract within the prior 12 months; or (d) Due to an election of the SWO Distribution Option. 6.03. Table of Minimum Values - Fixed Account: The values in the following Table only apply to a Purchase Payment of exactly $1,000. Values would be different for other Purchase Payment amounts, if partial surrenders are made, or if Aetna adds interest at a rate greater than the Guaranteed Interest Rate - Fixed Account (see 3.02). The Surrender Value assumes that a Purchase Payment of exactly $1,000 is credited at the Guaranteed Interest Rate at the beginning of each Contract year. The applicable Surrender Fee is deducted. 41 TABLE OF MINIMUM FIXED ACCOUNT VALUES PER $1,000 OF NET PURCHASE PAYMENTS ALLOCATED TO THE FIXED ACCOUNT
Minimum Minimum End of Minimum Current Surrender End of Minimum Current Surrender Year Value Value Year Value Value ---- ----- ----- ---- ----- ----- 1 $1,040 $ 988 16 $1,872 $1,872 2 1,082 1,028 17 1,947 1,947 3 1,125 1,069 18 2,025 2,025 4 1,170 1,111 19 2,106 2,106 5 1,217 1,156 20 2,191 2,191 6 1,265 1,168 7 1,316 1,290 25 2,665 2,665 8 1,369 1,355 9 1,423 1,423 30 3,243 3,243 10 1,480 1,480 11 1,539 1,539 35 3,946 3,946 12 1,601 1,601 13 1,665 1,665 40 4,801 4,801 14 1,731 1,731 15 1,800 1,800 45 5,841 5,841 50 7,106 7,106
42 VI. FEE SCHEDULE DEFERRED COMPENSATION PLAN 6.01. Maintenance Fee: The Maintenance Fee will be $20. 6.02. Surrender Fee: For each surrender, the Surrender Fee will vary according to the number of Purchase Payment Cycles completed. The number and amount of Purchase Payments to be made in a year is chosen by the Contract Holder. A Purchase Payment Cycle is completed when this number and amount of Purchase Payments have been made. The number of Purchase Payment Cycles completed may not be greater than the number of whole years since the Contract was issued. For each surrender, the Fee will be as follows: Number of Purchase Payment Cycles Completed Surrender Less than 5 5% 5 or more but less than 7 4% 7 or more but less than 9 3% 9 or 10 2% More than 10 0% No Surrender Fee is deducted from any portion of the Current Value which is paid: (a) At the death of the Annuitant before Annuity payments start; (b) As a premium for an Annuity under this Contract; (c) On and after the tenth anniversary of the Effective Date of the Contract; (d) For a full surrender where the Current Value is equal to $2,500 or less and no surrenders have been taken from the Contract within the prior 12 months; or (e) Due to an election of the SWO Distribution Option. 6.03. Table of Minimum Values - Fixed Account: The values in the following Table only apply to Annual Purchase Payments of exactly $1,000. Values would be different for other Purchase Payment amounts, if Purchase Payments are not made when due, if partial surrenders are made, or if Aetna adds interest at a rate greater than the Guaranteed Interest Rate - Fixed Account (see 3.02). The Surrender Value assumes that a Purchase Payment of exactly $1,000 is credited at the Guaranteed Interest Rate at the beginning of each Contract year. The Maintenance Fee and applicable Surrender Fee are deducted. 43 TABLE OF MINIMUM CONTRACT VALUES PER $1,000 OF NET PURCHASE PAYMENTS
Minimum Minimum End of Minimum Surrender End of Minimum Surrender Year Reserve Value Year Reserve Value ---- ------- ----- ---- ------- ----- 1 $1,020 $ 969 16 $22,261 $22,261 2 2,081 1,977 17 24,171 24,171 3 3,184 3,025 15 26,158 26,158 4 4,331 4,115 19 28,224 28,224 5 5,524 5,304 20 30,373 30,373 6 6,765 6,495 7 8,056 7,815 25 42,478 42,478 8 9,398 9,117 9 10,794 10,579 30 57,206 57,206 10 12,246 12,246 11 13,756 13,756 35 75,124 75,124 12 15,326 15,326 13 16,959 16,959 40 96,925 96,925 14 18,658 18,658 15 20,424 20,424 45 123,448 123,448 50 155,719 155,719
44 VI FEE SCHEDULE TAX DEFERRED ANNUITY PLAN 6.01. Maintenance Fee: The Maintenance Fee will be $0. 6.02. Surrender Fee: For each surrender, the Surrender Fee will vary according to the period of time between the Effective Date of the Contract and the date of surrender. The Surrender Fee will be determined as follows: If Period of Time is Surrender Fee Less than 5 years 5% From 5 to 6 years 4% From 6 to 7 years 3% From 7 to 8 years 2% From 8 to 9 years 1% 9 or more years 0% No Surrender Fee is deducted from any portion of the Current Value which is paid: (a) At the death of the Annuitant before Annuity payments start; (b) As a premium for an Annuity under this Contract (c) In an amount equal to or less than 10% of the Current Value, as part of the first partial surrender request in a calendar year to a Contract Holder who is at least age 59 1/2 and less than age 70 1/2. The Current Value is calculated as of the date the partial surrender request is received in good order at Aetna's Home Office. Any outstanding loans from the Contract Holder's Account are excluded when calculating the Current Value. This provision does not apply to partial surrender due to loan defaults and does not apply to full surrender requests; (d) For a full surrender where the Current Value is equal to $2,500 or less and no surrenders have been taken from the Contract within the prior 12 months; or (e) Due to an election of the ECO or SWO Distribution Options. 6.03. Table of Minimum Values - Fixed Account: The values in the following Table only apply to a Purchase Payment of exactly $1,000 credited to the Fixed Account. Values would be different for other Purchase Payment amounts, if partial surrenders are made, or if Aetna adds interest at a rate greater than the Guaranteed Interest Rate - Fixed Account (see 3.02). The Surrender Value assumes that a Purchase Payment of exactly $1,000 is credited to the Fixed Account at the Guaranteed Interest Rate at the beginning of each Contract year. The applicable Surrender Fee is deducted. 45 TABLE OF MINIMUM FIXED ACCOUNT VALUES PER $1,000 OF NET PURCHASE PAYMENTS ALLOCATED TO THE FIXED ACCOUNT
Minimum Minimum End of Minimum Current Surrender End of Minimum Current Surrender Year Value Value Year Value Value ---- ----- ----- ---- ----- ----- 1 $1,040 $ 988 16 $1,872 $1,872 2 1,082 1,028 17 1,947 1,947 3 1,125 1,069 18 2,025 2,025 4 1,170 1,111 19 2,106 2,106 5 1,217 1,168 20 2,191 2,191 6 1,265 1,227 7 1,316 1,290 25 2,665 2,665 8 1,369 1,355 9 1,423 1,423 30 3,243 3,243 10 1,480 1,480 11 1,539 1,539 35 3,946 3,946 12 1,601 1,601 13 1,665 1,665 40 4,801 4,801 14 1,731 1,731 15 1,800 1,800 45 5,841 5,841 50 7,106 7,106
46 VI. FEE SCHEDULE TAX DEFERRED ANNUITY PLAN 6.01. Maintenance Fee: The Maintenance Fee will be $20. 6.02. Surrender Fee: For each surrender, the Surrender Fee will vary according to the number of Purchase Payment Cycles completed. The number and amount of Purchase Payments to be made in a year is chosen by the Contract Holder. A Purchase Payment Cycle is completed when this number and amount of Purchase Payments have been made. The number of Purchase Payment Cycles completed may not be greater than the number of whole years since the Contract was issued. For each surrender, the Fee will be as follows: Number of Purchase Payment Cycles Completed Surrender Less than 5 5% 5 or more but less than 7 4% 7 or more but less than 9 3% 9 or 10 2% More than 10 0% No Surrender Fee is deducted from any portion of the Current Value which is paid: (a) At the death of the Contract Holder before Annuity payments start; (b) As a premium for an Annuity under this Contract; (c) After the Contract Holder has reached age 59 1/2and 9 or more Purchase Payment Cycles have been completed; (d) On and after the tenth anniversary of the Effective Date of the Contract; (e) In an amount equal to or less than 10% of the Current Value, as part of the first partial surrender request in a calendar year to a Contract Holder who is at least age 59 1/2 and less than age 70 1/2. The Current Value is calculated as of the date the partial surrender request is received in good order at Aetna's Home Office. Any outstanding loans from the Contract Holder's Account are excluded when calculating the Current Value. This provision does not apply to partial surrenders due to loan defaults and does not apply to full surrender requests; (f) For a full surrender where the Current Value is equal to $2,500 or less and no surrenders have been taken from the Contract within the prior 12 months; or (g) Due to an election of the ECO or SWO Distribution Options. 47 6.03. Table of Minimum Values - Fixed Account: The values in the following table only apply to Annual Purchase Payments of exactly $1,000 credited to the Fixed Account. Values would be different for other Purchase Payment amounts if Purchase Payments are not made when due, if partial surrenders are made, or if Aetna adds interest at a rate greater than the Guaranteed Interest Rate - Fixed Account (see 3.02). The Surrender Value assumes that a Purchase Payment of exactly $1,000 is credited to the Fixed Account at the Guaranteed Interest Rate at the beginning of each Contract year. The Maintenance Fee and applicable Surrender Fee are deducted. 48 TABLE OF MINIMUM FIXED ACCOUNT VALUES PER $1,000 OF NET PURCHASE PAYMENTS ALLOCATED TO THE FIXED ACCOUNT
Minimum Minimum End of Minimum Current Surrender End of Minimum Current Surrender Year Value Value Year Value Value ---- ----- ----- ---- ----- ----- 1 $1,020 $ 969 16 $22,261 $22,261 2 2,081 1,977 17 24,171 24,171 3 3,184 3,025 18 26,158 26,158 4 4,331 4,115 19 28,224 28,224 5 5,524 5,304 20 30,373 30,373 6 6,765 6,495 7 8,056 7,815 25 42,478 42,478 8 9,398 9,117 9 10,794 10,579 30 57,206 57,206 10 12,246 12,00l 11 13,756 13,756 35 75,124 75,124 12 15,326 15,326 13 16,959 16,959 40 96,925 96,925 14 18,658 18,658 15 20,424 20,424 45 123,448 123,448 50 155,719 155,719
49 VI. FEE SCHEDULE INDIVIDUAL ANNUITY PLAN 6.01. Maintenance Fee: The Maintenance Fee will be $0. 6.02. Surrender Fee: For each surrender, the Surrender Fee will vary according to the period of time between the Effective Date of the Contract and the date of surrender. The Surrender Fee will be determined as follows: If Period of Time is Surrender Fee Less than 5 years 5% From 5 to 6 years 4% From 6 to 7 years 3% From 7 to 8 years 2% From 8 to 9 years 1% 9 or more years 0% No Surrender Fee is deducted from any portion of the Current Value which is paid: (a) At the death of the Contract Holder before Annuity payments start; (b) As a premium for an Annuity under this Contract; (c) In an amount equal to or less than 10% of the Current Value, as part of the first partial surrender request in a calendar year. The Current Value is calculated as of the date the partial surrender request is received in good order at Aetna's Home Office. This provision does not apply to full surrender requests; or (d) For a full surrender where the Current Value is equal to $2,500 or less and no surrenders have been taken from the Contract within the prior 12 months. 6.03. Table of Minimum Values - Fixed Account: The values in the following Table only apply to a Purchase Payment of exactly $1,000 credited to the Fixed Account. Values would be different for other Purchase Payment amounts, if partial surrenders are made, or if Aetna adds interest at a rate greater than the Guaranteed Interest Rate - Fixed Account (see 3.02). The Surrender Value assumes that a Purchase Payment of exactly $1,000 is credited to the Fixed Account at the Guaranteed Interest Rate at the beginning of each Contract year. The applicable Surrender Fee is deducted. 50 TABLE OF MINIMUM FIXED ACCOUNT VALUES PER $1,000 OF NET PURCHASE PAYMENTS ALLOCATED TO THE FIXED ACCOUNT
Minimum Minimum End of Minimum Current Surrender End of Minimum Current Surrender Year Value Value Year Value Value ---- ----- ----- ---- ----- ----- 1 $1,040 $ 988 16 $1,872 $1,872 2 1,082 1,028 17 1,947 1,947 3 1,125 1,069 18 2,025 2,025 4 1,170 1,111 19 2,106 2,106 5 1,217 1,168 20 2,191 2,191 6 1,265 1,227 7 1,316 1,290 25 2,665 2,665 8 1,369 1,355 9 1,423 1,423 30 3,243 3,243 10 1,480 1,480 11 1,539 1,539 35 3,946 3,946 12 1,601 1,601 13 1,665 1,665 40 4,801 4,801 14 1,731 1,731 15 1,800 1,800 45 5,841 5,841 50 7,106 7,106
51 VI. FEE SCHEDULE INDIVIDUAL ANNUITY PLAN 6.01. Maintenance Fee: The Maintenance Fee will be $20. 6.02. Surrender Fee: For each surrender, the Surrender Fee will vary according to the number of Purchase Payment Cycles completed. The number and amount of Purchase Payments to be made in a year is chosen by the Contract Holder. A Purchase Payment Cycle is completed when this number and amount of Purchase Payments have been made. The number of Purchase Payment Cycles completed may not be greater than the number of whole years since the Contract was issued. For each surrender, the Fee will be as follows: Number of Purchase Payment Cycles Completed Surrender Fee Less than 5 5% 5 or more but less than 7 4% 7 or more but less than 9 3% 9 or 10 2% More than 10 0% No Surrender Fee is deducted from any portion of the Current Value which is paid: (a) At the death of the Contract Holder before Annuity payments start; (b) As a premium for an Annuity under this Contract; (c) On and after the tenth anniversary of the Effective Date of the Contract; (d) In an amount equal to or less than 10% of the Current Value, as part of the first partial surrender request in a calendar year. The Current Value is calculated as of the date the partial surrender request is received in good order at Aetna's Home Office. This provision does not apply to full surrender requests; or (e) For a full surrender where the Current Value is equal to $2,500 or less and no surrenders have been taken from the Contract within the prior 12 months. 6.03. Table of Minimum Values - Fixed Account: The values in the following Table only apply to Annual Purchase Payments of exactly $1,000 credited to the Fixed Account. Values would be different for other Purchase Payment amounts, if Purchase Payments are not made when due, if partial surrenders are made, or if Aetna adds interest at a rate greater than the Guaranteed Interest Rate - Fixed Account (see 3.02). The Surrender Value assumes that a Purchase Payment of exactly $1,000 is credited to the Fixed Account at the Guaranteed Interest Rate at the beginning of each Contract year. The Maintenance Fee and applicable Surrender Fee are deducted. 52 TABLE OF MINIMUM FIXED ACCOUNT VALUES PER $1,000 OF NET PURCHASE PAYMENTS ALLOCATED TO THE FIXED ACCOUNT
Minimum Minimum End of Minimum Current Surrender End of Minimum Current Surrender Year Value Value Year Value Value ---- ----- ----- ---- ----- ----- 1 $1,020 $ 969 16 $22,261 $22,261 2 2,081 1,977 17 24,171 24,171 3 3,184 3,025 18 26,158 26,158 4 4,331 4,115 19 28,224 28,224 5 5,524 5,304 20 30,373 30,373 6 6,765 6,495 7 8,056 7,815 25 42,478 42,478 8 9,398 9,117 9 10,794 10,579 30 57,206 57,206 10 12,246 12,246 11 13,756 13,756 35 75,124 75,124 12 15,326 15,326 13 16,959 16,959 40 96,925 96,925 14 18,658 18,658 15 20,424 20,424 45 123,448 123,448 50 155,719 155,719
53 AETNA LIFE INSURANCE AND ANNUITY COMPANY Home Office: 151 FARMINGTON AVE. HARTFORD, CONNECTICUT 06156 1-800-525-4225 INDIVIDUAL VARIABLE, FIXED, OR COMBINATION CONTRACT NONPARTICIPATING ALL PAYMENTS AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND ARE NOT GUARANTEED AS TO FIXED DOLLAR AMOUNT EX-99.B4.15 4 Aetna Life Insurance and Annuity Company ENDORSEMENT The Contract or Certificate, as applicable, are hereby endorsed as follows: 1. Aetna may, from time to time, make one or more additional mutual funds ("Funds") available as investment options under this Contract, or stop making available one or more Funds previously offered as investment options under this Contract. In the event that occurs, all references to "Fund(s)" or "Funding Medium" or "Funding Media" in this Contract shall be read in such a way as to be consistent with such addition or deletion of available Funds, unless specifically indicated otherwise. 2. Aetna will notify the Contract Holder or Owner when it changes the Funds available under this Contract and will provide the Contract Holder or Owner with information regarding each Fund it adds. 3. Notwithstanding any other provision of this Contract, any Fund which is first made available under this Contract on or after the effective date of this endorsement is made available subject to the following terms and conditions: As to any such Fund: (a) The following paragraphs included (if not already included, then please add) in the text of the "Specifications" page are amended to read as follows: Deductions from Basic Stipulated Payment(s) - The amount of the Net Deposits applied will be the deposit(s) received minus a deduction for the premium taxes, if any. Deductions from the Separate Account and the Funds - Once Annuity payments begin, in order that the dollar amount of the Variable Annuity payments will not decrease, Aetna must earn a gross return on the assets of the Separate Account of: (a) 4.75% on an annual basis, plus, if your contract has been so endorsed, an annual return of up to .25% needed to offset the administrative charge set at the time annuity payments commenced, if an assumed net return of 3.5% is chosen; or (b) 6.25% on an annual basis, plus, if your Contract has been so endorsed, an annual return of up to .25% needed to offset the administrative charge set at the time annuity payments commenced, if an assumed net return of 5% is chosen. The foregoing language supersedes any language on the Specifications page or in the Contract to the contrary. (b) the Net Investment Rate or Net Return Rate, as applicable, shall be determined as follows: The Net Investment Rate or Net Return Rate is equal to: (i) The value of the shares of the Fund held by the Separate Account at the end of the Valuation Period; minus (ii) The value of the shares of the Fund held by the Separate Account at the start of the Valuation Period; plus or minus (iii) taxes (or reserves for taxes) on the Separate Account (if any); divided by (iv) the total value of the Fund Record Units and Fund Annuity Units of the Separate Account at the start of the Valuation Period; minus (v) A daily actuarial charge at an annual rate not to exceed 1.25% for mortality and expense risks, which may include profit; and a daily administrative charge which will not exceed 0.25% on an annual basis. A Net Return Rate or Net Investment Rate may be more or less than 0%. The value of a share of the Fund is equal to the net assets of the Fund divided by the number of outstanding shares of the Fund. The daily administrative charge may be changed annually except for amounts that have been used to purchase an Annuity. This charge will not exceed 0.25% on an annual basis. Endorsed and made a part of this Contract or Certificate, as applicable, on the date, after any required state approval, as of which it is issued by Aetna. /s/ Dan Kearney President Aetna Life Insurance and Annuity Company EX-99.B5 5
Individual Application Aetna Life Insurance and Annuity Company For Annuity Contract 151 Farmington Ave., Hartford, CT 06156-8022 - --------------------------------------------------------------------------------------------------------------------- Customer Information Billing Group No. - --------------------------------------------------------------------------------------------------------------------- 1. Name of Annuitant (Last, First, Initial) - --------------------------------------------------------------------------------------------------------------------- Street Soc. Sec. No. - --------------------------------------------------------------------------------------------------------------------- City State ZIP Code - --------------------------------------------------------------------------------------------------------------------- 2. |_| Male |_| Female 3. Birthdate 4. Annuity Start Age - --------------------------------------------------------------------------------------------------------------------- 5. Name of Contract Holder if other than above (Last, First, Initial) - --------------------------------------------------------------------------------------------------------------------- Street - --------------------------------------------------------------------------------------------------------------------- City State ZIP Code - --------------------------------------------------------------------------------------------------------------------- Occupation of Contract Holder Annual Income - --------------------------------------------------------------------------------------------------------------------- Tax Identification No. or Soc. Sec. No. Birthdate - --------------------------------------------------------------------------------------------------------------------- 6. Name of Employer - --------------------------------------------------------------------------------------------------------------------- Street City State ZIP code - --------------------------------------------------------------------------------------------------------------------- Are you associated with a National Association of Securities Dealers Member: |_| No |_| Yes If yes, please specify. - --------------------------------------------------------------------------------------------------------------------- Account Information - --------------------------------------------------------------------------------------------------------------------- 7. Name of plan (if any) - --------------------------------------------------------------------------------------------------------------------- 8. Type of plan and section of Internal Revenue Code (if any) under which plan is to quality: |_| IRA (408(b)) |_| Deferred Compensation (457) |_| Public School (403(b)) |_| 501 (c) (3) (403(b)) |_| SEP (408(k)) |_| Other _______________ - --------------------------------------------------------------------------------------------------------------------- 9. If single payment, payout will be: |_| Deferred(1) |_| Immediate(2)|_| Single payment amount $------------- If applying for a Single Premium Immediate Annuity Contract, please also complete the Aetna Settlement Election Form. - --------------------------------------------------------------------------------------------------------------------- 10. If installment plan: Payment frequency |_| 01 |_| 02 |_| 04 |_| 12 |_| Other ________(please specify) - --------------------------------------------------------------------------------------------------------------------- Contract effective date 11. Installment payment amount $__________ 12. (Installment payments only)________________ - -------------------------------------------------------------- ------------------------------------------------------ 13. Will this contract change or replace any existing life insurance or annuity contract? |_| Yes |_| No If yes, please provide carrier name, account number, and date to be cancelled: - --------------------------------------------------------------------------------------------------------------------- 14. Special Requests _________________________________________________________________________________________ __________________________________________________________________________________________________________ - --------------------------------------------------------------------------------------------------------------------- 15. Investment Options - --------------------------------------------------------------------------------------------------------------------- Enter the percentage of payment(s) to be Aetna Variable Fund (Growth and Income) _________% allocated to each investment option. Total ------------------------------------------------- must be 100%. Fixed Account _________% ------------------------------------------------- *Within a Guaranteed Interest Account Aetna Variable Encore Fund (Money Market) _________% (GIA) or Guaranteed Accumulation Account ------------------------------------------------- (GAA) classification, Terms and Aetna Income Shares (Bond) _________% Guaranteed Interest Rates offered may ------------------------------------------------- vary with each Deposit Period. GIA is Guaranteed Short Term Amount* _________% available for IRA accounts only. GAA is ------------------------------------------------- available for IRA accounts in the state Guaranteed Long Term Amount* _________% of New York only. See the prospectus ------------------------------------------------- for further information about rules TCI Portfolios Inc., TCI Growth (Growth) _________% applicable to allocation of future ------------------------------------------------- contributions. Aetna Investment Advisers Fund, Inc. (Managed) _________% ---------------------------------------------- Other _________% ------------------------------------------------- Other _________% ------------------------------------------------- Other _________% ------------------------------------------------- TOTAL 100% ------------------------------------------------- ---------- - --------------------------------------------------------------------------------------------------------------------- (1) Defer benefit payment(s) to some future date. Home Office Use (2) Receive benefit payment(s) immediately. Accepted _______________________________________________
- --------------------------------------------------------------------------------------------------------------------- 16. Beneficiary(ies) For Deferred Compensation Plans, the Contract Holder is automatically the beneficiary - --------------------------------------------------------------------------------------------------------------------- Primary Name Relation - --------------------------------------------------------------------------------------------------------------------- Soc. Sec. No. Birthdate - --------------------------------------------------------------------------------------------------------------------- Contingent Name Relation - --------------------------------------------------------------------------------------------------------------------- Soc. Sec. No. Birthdate --------------------------------------------------------- --------------------------------------- - ---------------------------------------------------------------------------------------------------------------------
Unless otherwise requested: [bullet] Payment will be made in equal shares to the primary beneficiaries who survive the Contract Holder or Annuitant. If none survives, payment will be made in equal shares to contingent beneficiaries who survive the Contract Holder or Annuitant. [bullet] If no beneficiary survives, payment will be made to executors or administrators of the Contract Holder's or Annuitant's estate. [bullet] If a class of beneficiaries exists (i.e., "the Contract Holder's or Annuitant's children"), payment will be made in equal shares. Each person who is a member of the class and living at the time of the Contract Holder's or Annuitant's death receives payment whether or not specifically named in the beneficiary designation. - ------------------------------------------------------------------------------- 17. I understand that annuity payments and termination values (if any) provided by this contract when based on the investment experience of a separate account are variable and not guaranteed as to a fixed dollar amount. However, fixed and/or general account funds will not vary and are guaranteed as to a fixed dollar amount. The following individuals/organizations will receive compensation from this purchase: - ------------------------------------- --------------------------------------- - ------------------------------------- --------------------------------------- I have received the following prospectuses dated 1) Account C Contract Prospectus, PFS 710.00.16 |_| Please send a Statement of Additional Information for Prospectus PFS 710.00.16. 2) Aetna Variable Fund, Aetna Variable Encore Fund, Aetna Income Shares, Aetna Investment Advisers Fund, Inc., TCI Growth. |_| I consent to allow the Company to hold my application and Purchase Payment, if any, if my application cannot be accepted within five business days after receipt at the Home Office. Dated at ______________________ this ______________ day of ______________ 19__. City and State - ------------------------ --------------- ----------------------------- Witness Annuitant Contract Holder - ------------------------------------------------------------------------------- Corrections and amendments (Home Office Use Only). Errors and omissions may be corrected by the Company but no change in plan, age at issue, birthdate, classification, amount, extra benefits, change of allocation or allocation omitted may be made without written consent of the owner. (N/A in W.Va.) - ------------------------------------------------------------------------------- Producer's Note: Do you have any reason to believe any existing life insurance or annuity contracts will be modified or replaced if this contract is issued? |_| Yes |_| No ---------------------------------------------- Signature of Producer/Agent - ------------------------------------------------------------------------------- EX-99.B8.4 6 FOURTH AMENDMENT TO AGREEMENT Fourth Amendment to Agreement This Fourth Amendment, executed as of the 28th day of February, 1997 is made by and between Aetna Life Insurance and Annuity Company ("AETNA") and Calvert Asset Management Company ("CALVERT"). WHEREAS, AETNA and CALVERT are parties to an Agreement dated March 13, 1989 and amended as of December 27, 1993, January 1, 1996, and February 11, 1997 (the "Agreement"); and WHEREAS, AETNA and CALVERT now desire to modify the Agreement. NOW, THEREFORE, in consideration of the premises and the mutual covenants and provisions expressed herein, the parties agree as follows: 1. The second sentence of Paragraph 9(e) which provides: "AETNA agrees to pay its agents and employees the same compensation for participant investments made in SERIES as it does for money placed in any of the other investment options, including AETNA managed options" shall be deleted in its entirety. IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment as of the date first written above. CALVERT ASSET MANAGEMENT COMPANY, INC. Attest: By: /s/ William M. Tartikoff ------------------------------- ------------------------ Date: ----------------------- AETNA LIFE INSURANCE AND ANNUITY COMPANY Attest: /s/ M. Katherine Johnson By: /s/ Laura Estes ------------------------------- ------------------------ Date: 3/14/97 ----------------------- EX-99.B9 7 OPINION AND CONSENT OF COUNSEL 151 Farmington Avenue Hartford, CT 06156 July 29, 1997 Kirk P. Wickman General Counsel Law Division, RW4A Investments & Financial Services (860) 273-6128 Fax: (860) 273-1548 Securities and Exchange Commission 450 Fifth Street, N.W. Washington, DC 20549 Re: Aetna Life Insurance and Annuity Company and its Variable Annuity Account C Post-Effective Amendment No. 14 to Registration Statement on Form N-4 Prospectus Title: AetnaPlus - Group and Individual Deferred Variable Annuity Contracts for Tax-Deferred Annuity Plans (Section 403(b)) and Defined Contribution Plans (Section 401(a)) File Nos. 33-75964* and 811-2513 Dear Sir or Madam: The undersigned has acted as counsel to Aetna Life Insurance and Annuity Company, a Connecticut life insurance company (the "Company"). It is my understanding that the Company, as depositor, has registered an indefinite amount of securities (the "Securities") under the Securities Act of 1933 (the "Securities Act") as provided in Rule 24f-2 under the Investment Company Act of 1940 (the "Investment Company Act"). In connection with this opinion, I have reviewed the N-4 Registration Statement as amended to date and this Post-Effective Amendment No. 14. I have also examined originals or copies, certified or otherwise identified to my satisfaction, of such documents, trust records and other instruments I have deemed necessary or appropriate for the purpose of rendering this opinion. For purposes of such examination, I have assumed the genuineness of all signatures on original documents and the conformity to the original of all copies. I am admitted to practice law in Connecticut, and do not purport to be an expert on the laws of any other state. My opinion herein as to any other law is based upon a limited inquiry thereof which I have deemed appropriate under the circumstances. Based upon the foregoing, and, assuming the Securities are sold in accordance with the provisions of the prospectus, I am of the opinion that the Securities being registered will be legally issued and will represent binding obligations of the Company. I consent to the filing of this opinion as an exhibit to the Registration Statement. Sincerely, /s/ Kirk P. Wickman Kirk P. Wickman - -------- * Pursuant to Rule 429(a) under the Securities Act of 1933, the Registrant has included a combined prospectus under this Registration Statement which includes all information that would currently be required in a prospectus relating to the securities covered by the following earlier Registration Statements: 33-75958, 33-75960 and 33-75994. EX-99.B10 8 CONSENT OF INDEPENDENT AUDITORS Consent of Independent Auditors The Board of Directors of Aetna Life Insurance and Annuity Company and Contractholders of Aetna Variable Annuity Account C: We consent to the incorporation by reference into Registration Statement (No. 33-75964) on Form N-4 our reports dated February 4, 1997 and February 14, 1997. /s/ KPMG Peat Marwick LLP KPMG Peat Marwick LLP Hartford, Connecticut July 29, 1997 EX-27 9 FDS -- VARIABLE ANNUITY ACCOUNT C
6 0000103007 Variable Annuity Account C YEAR DEC-31-1996 JAN-01-1996 DEC-31-1996 7,952,811,278 8,565,202,363 0 0 0 8,565,202,363 0 0 0 0 0 0 0 0 0 0 0 0 0 8,565,202,363 712,854,599 0 0 93,446,331 619,408,268 513,568,522 18,307,901 1,151,284,691 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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