Post-Effective Amendment
Filing Table of Contents
Document/Exhibit Description Pages Size
1: 485BPOS Post-Effective Amendment 999± 4.22M
5: EX-99 7551 Gmib 6± 25K
2: EX-99 7587 Freedom 13± 45K
3: EX-99 7588 Joint Freedom 14± 46K
4: EX-99 7589 Freedom Db 14± 47K
6: EX-99 Application 10± 53K
10: EX-99 Kpmg Consent 1 6K
9: EX-99 Legal Opinion 1 8K
8: EX-99 Reinsurance Amendment 10 8± 56K
7: EX-99 Reinsurance Amendment 9 8 18K
EX-99 — 7588 Joint Freedom
EX-4.vvv.
7588ANY-A
JACKSON NATIONAL LIFE INSURANCE COMPANY
OF NEW YORK
A Stock Company
JOINT FOR LIFE GUARANTEED MINIMUM WITHDRAWAL BENEFIT
WITH BONUS AND ANNUAL STEP-UP ENDORSEMENT
This endorsement is made a part of the Contract to which it is attached and is
effective on the Issue Date of the Contract, unless another effective date for
this endorsement is shown below. To the extent any provisions contained in this
endorsement are contrary to or inconsistent with those of the Contract to which
it is attached, the provisions of this endorsement will control.
PLEASE NOTE: THIS ENDORSEMENT CANNOT BE TERMINATED INDEPENDENTLY FROM THE
CONTRACT TO WHICH IT IS ATTACHED.
THE GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB) CAN ONLY BE TAKEN AS A
WITHDRAWAL BENEFIT AND DOES NOT INCREASE THE CONTRACT VALUE. THIS IS AN OPTIONAL
BENEFIT AND THERE IS AN ADDITIONAL COST TO THE SEPARATE ACCOUNT CONTRACT VALUE
FOR THE BENEFIT PROVIDED.
THE FOR LIFE GUARANTEE DOES NOT BECOME EFFECTIVE UNTIL THE LATER OF THE CONTRACT
ANNIVERSARY ON OR IMMEDIATELY FOLLOWING THE YOUNGEST COVERED LIFE'S ATTAINED AGE
62 OR THE EFFECTIVE DATE OF THIS ENDORSEMENT. FOR THE FOR LIFE GUARANTEE TO TAKE
EFFECT, THE CONTRACT MUST STILL BE IN FORCE WITH A CONTRACT VALUE GREATER THAN
ZERO AND THE EFFECTIVE DATE OF THE FOR LIFE GUARANTEE MUST BE BEFORE THE INCOME
DATE. IN ADDITION, ON THE EFFECTIVE DATE OF THE FOR LIFE GUARANTEE, THE
GUARANTEED ANNUAL WITHDRAWAL AMOUNT (GAWA) IS RESET.
A PARTIAL WITHDRAWAL IN EXCESS OF THE GREATER OF THE GUARANTEED ANNUAL
WITHDRAWAL AMOUNT (GAWA) OR THE REQUIRED MINIMUM DISTRIBUTION (RMD) WILL HAVE AN
ADVERSE EFFECT ON THE BENEFITS PROVIDED BY THIS ENDORSEMENT. ANY WITHDRAWAL IN
EXCESS OF THE GREATER OF THE GAWA OR THE RMD IN ANY CONTRACT YEAR WILL DECREASE
THE GAWA.
A BONUS RATE OF 5% (7% IF THE YOUNGEST COVERED LIFE IS 59 OR OLDER AS OF THE
EFFECTIVE DATE OF THIS ENDORSEMENT) WILL BE APPLIED TO THE GUARANTEED WITHDRAWAL
BALANCE (GWB) AT THE END OF EACH CONTRACT YEAR DURING THE BONUS PERIOD ONLY IF
NO WITHDRAWALS ARE TAKEN DURING THAT CONTRACT YEAR.
THE GUARANTEED WITHDRAWAL BALANCE ADJUSTMENT WILL BE APPLIED TO THE GWB ON THE
GWB ADJUSTMENT DATE ONLY IF NO WITHDRAWALS ARE TAKEN ON OR PRIOR TO THAT DATE.
WITHDRAWALS UNDER THE GMWB ARE NOT CUMULATIVE. GUARANTEED WITHDRAWALS AVAILABLE
BUT NOT TAKEN DURING ANY GIVEN CONTRACT YEAR CANNOT BE TAKEN AS A GUARANTEED
WITHDRAWAL IN A SUBSEQUENT CONTRACT YEAR.
UPON FULL SURRENDER OF THE CONTRACT, THE GMWB IS TERMINATED WITHOUT VALUE.
SURRENDER OF YOUR CONTRACT WITH A REDUCED OR ZERO CONTRACT VALUE MAY NOT BE
APPROPRIATE IF THE GWB IS POSITIVE.
FOR INFORMATION ON HOW THIS GMWB IS CALCULATED, PLEASE SEE THE ILLUSTRATION ON
PAGE 12.
CERTAIN DEFINITIONS AS FOUND IN THE CONTRACT WHICH ARE RELEVANT TO THIS
ENDORSEMENT HAVE BEEN LISTED BELOW FOR INFORMATIONAL PURPOSES.
CONTRACT VALUE. The Contract Value equals the sum of the Separate Account
Contract Value and the Fixed Account Contract Value.
INCOME DATE. The date on which annuity payments are scheduled to begin.
SEPARATE ACCOUNT CONTRACT VALUE. The current value of the amounts allocated to
the Investment Divisions of this Contract.
WITHDRAWAL VALUE. The Contract Value, less any tax payable, minus any applicable
Withdrawal Charges, Annual Contract Maintenance Charges, and charges due under
any optional endorsement to the Contract, adjusted for any applicable Interest
Rate Adjustment.
The Contract is amended as follows:
1) The following language is added to the CONTRACT DATA PAGE of the Contract:
"Guaranteed Minimum Withdrawal Benefit (GMWB) Charge:
On a monthly basis, the charge equals [0.1050%] of the Guaranteed
Withdrawal Balance (GWB) and is deducted from the Separate Account
Contract Value (i) at the end of each Contract Month; and (ii) upon
termination of the GMWB. Upon step-up on or after the 11th Contract
Anniversary following the effective date of this endorsement, the
Company reserves the right to increase the GMWB Charge percentage,
subject to a maximum GMWB Charge percentage, on a monthly basis, of
[0.1550%].
The GMWB Charge will be discontinued upon the earlier of the
termination of this benefit or the date on which the Contract Value
equals zero."
2) The following language is added to the DEFINITIONS section of the Contract:
"BENEFIT DETERMINATION BASELINE (BDB). The value used to determine whether the
GAWA% will increase upon step-up.
BONUS PERIOD. The Bonus Period begins on the effective date of this endorsement
and will re-start at the time the bonus base is increased due to a step-up if
the step-up occurs on or before the Contract Anniversary immediately following
the youngest Covered Life's 80th birthday. The Bonus Period ends on the earlier
of (a) the 10th Contract Anniversary following the beginning of the most recent
Bonus Period, or (b) the date on which the Contract Value falls to zero as the
result of a partial withdrawal or deduction of charges.
CONTRACT MONTH. The one-month period beginning on the Issue Date or any Contract
Monthly Anniversary.
CONTRACT MONTHLY ANNIVERSARY. Each one-month anniversary of the Issue Date.
CONTRACT QUARTERLY ANNIVERSARY. Each three-month anniversary of the Issue Date.
CONTRACT YEAR. The twelve-month period beginning on the Issue Date or any
Contract Anniversary.
COVERED LIFE. On Qualified Plan contracts, the Owner and the primary spousal
Beneficiary named as of the effective date of this endorsement will each be
considered a Covered Life. On Nonqualified Plan contracts, the Joint Owners will
each be considered a Covered Life. The Covered Lives may not be subsequently
changed.
GUARANTEED ANNUAL WITHDRAWAL AMOUNT (GAWA). The maximum amount the Owner is
allowed to withdraw each Contract Year, subject to the exception stated in this
endorsement, for the guarantee to remain fully effective.
GUARANTEED ANNUAL WITHDRAWAL AMOUNT PERCENTAGE (GAWA%). The percentage upon
which the GAWA is based.
GUARANTEED WITHDRAWAL BALANCE (GWB). The value upon which the GMWB Charge and
other GMWB values are based.
GWB ADJUSTMENT DATE. The later of (a) the Contract Anniversary on or immediately
following the youngest Covered Life's 76th birthday, or (b) the 10th Contract
Anniversary following the effective date of this endorsement.
RECAPTURE CHARGE. For Contracts with a Contract Enhancement, the Recapture
Charge is assessed against certain withdrawals from the Contract Value whenever
a withdrawal is made of the Premium allocated to the Contract Value that has
received a Contract Enhancement, or upon the exercise of the Right to Examine.
REQUIRED MINIMUM DISTRIBUTION (RMD). For certain qualified contracts, the
Required Minimum Distribution is the amount defined by the Internal Revenue Code
and the implementing regulations as the minimum distribution requirement that
applies to this Contract only."
3) The following language is added to the WITHDRAWAL PROVISIONS of the
Contract:
"FOR LIFE GUARANTEED MINIMUM WITHDRAWAL BENEFIT. The GMWB allows the Owner to
make periodic partial withdrawals, prior to the Income Date, for 1) the lifetime
of the last surviving Covered Life if the For Life Guarantee is in effect or 2)
if the For Life Guarantee is not in effect, until the earlier of the death of
the Owner (or any Joint Owner) or until the GWB is depleted, regardless of the
performance of the Investment Divisions or level of the Contract Value. The
guarantee is fully effective if periodic partial withdrawals taken within any
one Contract Year do not exceed the greater of the GAWA or the RMD. Withdrawals
under the GMWB are non-cumulative; therefore if the Owner does not take the GAWA
or the RMD in one year, the Owner may not take more than the greater of the GAWA
or the RMD as a guaranteed withdrawal in subsequent years. On each Contract
Anniversary following the effective date of this endorsement, the GWB will
automatically "step up" to the highest quarterly Contract Value if the highest
quarterly Contract Value is greater than the GWB.
The withdrawals made under this endorsement are considered to be the same as any
other partial withdrawals for the purposes of calculating any other values under
the Contract or any other endorsements attached to the Contract.
For purposes of this endorsement, partial withdrawals are considered to be the
entire amount withdrawn from the Contract, including any applicable charges and
adjustments for such withdrawals. Any withdrawal less than or equal to the
greater of the GAWA or the RMD is considered a partial withdrawal, not a full
withdrawal, even if it is greater than or equal to the Contract Value.
A partial withdrawal in excess of the Withdrawal Value (if applicable) will be
permitted as long as the total partial withdrawal for the Contract Year does not
exceed the greater of the GAWA or the RMD. A partial withdrawal in excess of the
Contract Value will be permitted as long as the total partial withdrawal for the
Contract Year does not exceed the greater of the GAWA or the RMD. In this case,
the Contract Value will be set to zero and the Contract Value Reduces to Zero
provision will apply.
If the age of either Covered Life is incorrectly stated at the time of the
election of the GMWB, on the date the misstatement is discovered the GWB and
GAWA will be re-calculated based on the GAWA% applicable at the correct age.
Assessment of GMWB Charge.
The GMWB Charge is as specified above. This charge will be deducted at the end
of each Contract Month on a pro rata basis from the Investment Divisions of the
Separate Account. GMWB Charges in excess of the Separate Account Contract Value
will be waived. GMWB Charges result in a redemption of Accumulation Units. The
GMWB Charge will not affect the value of the Accumulation Units. Upon
termination of the GMWB, a pro rata GMWB Charge will be deducted from Your
Separate Account Contract Value for the period since the last monthly GMWB
Charge.
Guaranteed Withdrawal Balance.
On the effective date of this endorsement, the GWB is determined as follows and
is subject to a maximum of $5,000,000.00:
1. If elected as of the Issue Date of the Contract, the GWB equals the initial
Premium, net of any applicable premium taxes.
2. If elected after the Issue Date of the Contract, the GWB equals the
Contract Value on the effective date of this endorsement, less any
applicable Recapture Charge that would be assessed on a full withdrawal.
With each subsequent Premium received after this endorsement is effective, the
GWB will be recalculated to equal the GWB prior to the Premium payment plus the
amount of the Premium payment, net of any applicable premium taxes, subject to
the maximum shown above.
With each partial withdrawal, the GWB is reduced. If You choose to withdraw an
amount that exceeds the greater of the GAWA or the RMD during any Contract Year,
the GWB may be reduced by an amount greater than the partial withdrawal.
Partial withdrawals will affect the GWB as follows:
1. If the partial withdrawal plus all prior partial withdrawals made in the
current Contract Year is less than or equal to the greater of the GAWA or
the RMD, the GWB is equal to the greater of:
a. the GWB prior to the partial withdrawal less the partial withdrawal;
or
b. zero.
2. If the partial withdrawal plus all prior partial withdrawals made in the
current Contract Year exceeds the greater of the GAWA or the RMD, the
excess withdrawal is defined to be the lesser of the total amount of the
current partial withdrawal or the amount by which the cumulative partial
withdrawals for the current Contract Year exceeds the greater of the GAWA
or the RMD, and the GWB is equal to the greater of:
a. the GWB prior to the partial withdrawal, first reduced dollar for
dollar for any portion of the partial withdrawal not defined as an
excess withdrawal, then reduced in the same proportion that the
Contract Value is reduced for the excess withdrawal; or
b. zero.
Guaranteed Annual Withdrawal Amount.
The GAWA% is the percentage upon which the GAWA is based and is defined in the
table below:
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Attained Age GAWA%
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45-74 5%
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75-80 6%
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81+ 7%
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The GAWA% is determined at the earlier of: 1) the time of the first withdrawal,
2) the date that the Contract Value reduces to zero, 3) the date that the GMWB
endorsement is continued by a spousal Beneficiary who is not a Covered Life, or
4) upon election of the Joint Life Income of the GAWA Income Option. The GAWA%
is based on the youngest Covered Life's attained age at the time of
determination. The GAWA is equal to the GAWA% multiplied by the GWB at the time
of determination.
With each subsequent Premium received after the GAWA% is determined, the GAWA
will be recalculated to equal the GAWA prior to the Premium payment plus the
GAWA% multiplied by the subsequent Premium payment, net of any applicable
premium taxes, or the GAWA% multiplied by the increase in the GWB, if less.
Partial withdrawals will affect the GAWA as follows:
1. If the partial withdrawal plus all prior partial withdrawals made in the
current Contract Year is less than or equal to the greater of the GAWA or
the RMD and the For Life Guarantee is effective, the GAWA will be
unchanged.
2. If the partial withdrawal plus all prior partial withdrawals made in the
current Contract Year is less than or equal to the greater of the GAWA or
the RMD and the For Life Guarantee is not effective, the GAWA is the lesser
of:
a. the GAWA prior to the partial withdrawal; or
b. the GWB after the partial withdrawal.
3. If the partial withdrawal plus all prior partial withdrawals made in the
current Contract Year exceeds the greater of the GAWA or the RMD and the
For Life Guarantee is effective, the excess withdrawal is defined to be the
lesser of the total amount of the current partial withdrawal or the amount
by which the cumulative partial withdrawals for the current Contract Year
exceeds the greater of the GAWA or the RMD, and the GAWA is reduced in the
same proportion as the Contract Value is reduced for the excess withdrawal.
4. If the partial withdrawal plus all prior partial withdrawals made in the
current Contract Year exceeds the greater of the GAWA or the RMD and the
For Life Guarantee is not effective, the excess withdrawal is defined to be
the lesser of the total amount of the current partial withdrawal or the
amount by which the cumulative partial withdrawals for the current Contract
Year exceeds the greater of the GAWA or the RMD, and the GAWA is the lesser
of:
a. the GAWA prior to the partial withdrawal, reduced in the same
proportion that the Contract Value is reduced for the excess
withdrawal; or
b. the GWB after the partial withdrawal.
Benefit Determination Baseline.
On the effective date of this endorsement, the BDB is determined as follows:
1. If the effective date of this endorsement is the Issue Date of the
Contract, the BDB equals the initial Premium net of any applicable premium
taxes.
2. If the effective date of this endorsement is after the Issue Date of the
Contract, the BDB equals the Contract Value on the effective date of this
endorsement, less any applicable Recapture Charge that would be assessed on
a full withdrawal.
With each subsequent Premium received after this endorsement is effective, the
BDB will be recalculated to equal the BDB prior to the Premium payment plus the
amount of the Premium payment, net of any applicable premium taxes.
No adjustment is made to the BDB for partial withdrawals.
Guaranteed Withdrawal Balance Bonus.
A bonus will be applied to the GWB at the end of each Contract Year during the
Bonus Period if no withdrawals are taken during that Contract Year.
At the time the bonus is applied:
1. The GWB equals the GWB prior to the application of the bonus plus 5% (7% if
the youngest Covered Life is 59 or older as of the effective date of this
endorsement), of the bonus base, subject to a maximum of $5,000,000.00.
2. If the bonus is applied after the first withdrawal, the GAWA is the greater
of:
a. the GAWA% multiplied by the new GWB; or
b. the GAWA prior to the bonus.
The bonus base is determined as follows:
On the effective date of this endorsement, the bonus base is equal to the GWB.
With each subsequent Premium received after this endorsement is effective, the
bonus base will be recalculated to equal the bonus base prior to the Premium
payment plus the amount of the Premium payment, net of any applicable premium
taxes, subject to a maximum of $5,000,000.00.
Partial withdrawals will affect the bonus base as follows:
1. If the partial withdrawal plus all prior partial withdrawals made in the
current Contract Year is less than or equal to the greater of the GAWA or
the RMD, the bonus base will be unchanged.
2. If the partial withdrawal plus all prior partial withdrawals made in the
current Contract Year exceeds the greater of the GAWA or the RMD, the bonus
base is set equal to the lesser of the GWB following the partial withdrawal
or the bonus base prior to the partial withdrawal.
The GWB bonus provision is terminated on the date the GMWB endorsement is
terminated.
Guaranteed Withdrawal Balance Adjustment.
If no withdrawals are taken on or prior to the GWB Adjustment Date, the Owner is
eligible for the GWB adjustment.
At the time the GWB adjustment is applied, the GWB will be set equal to the
greater of the current GWB or the GWB adjustment, subject to a maximum of
$5,000,000.00. The Guaranteed Withdrawal Balance Bonus will not be adjusted at
the time the GWB adjustment is applied.
The GWB adjustment is determined as follows:
On the effective date of this endorsement, the GWB adjustment is equal to 200%
of the GWB, subject to a maximum of $5,000,000.00.
With each subsequent Premium received after this endorsement is effective and
prior to the first Contract Anniversary following the effective date of this
endorsement, the GWB adjustment is recalculated to equal the GWB adjustment
prior to the Premium payment plus 200% of the amount of the Premium payment, net
of any applicable premium taxes, subject to a maximum of $5,000,000.00.
With each subsequent Premium received on or after the first Contract Anniversary
following the effective date of this endorsement, the GWB adjustment is
recalculated to equal the GWB adjustment prior to the Premium payment plus the
amount of the Premium payment, net of any applicable premium taxes, subject to a
maximum of $5,000,000.00.
The GWB adjustment provision is terminated on the GWB Adjustment Date, the date
the Contract Value is reduced to zero, the date this GMWB endorsement is
terminated, or the date this GMWB endorsement is continued by a spousal
Beneficiary who is not a Covered Life.
For Life Guarantee.
While the Contract is still in force with a Contract Value greater than zero and
before the Income Date, the For Life Guarantee becomes effective on the later
of:
1. the Contract Anniversary on or immediately following the youngest Covered
Life's attained age 62; or
2. the effective date of this endorsement.
If the For Life Guarantee becomes effective after the GAWA% is determined, the
GAWA is reset to equal the GAWA% multiplied by the current GWB.
The For Life Guarantee is terminated when this GMWB endorsement is terminated or
if this GMWB endorsement is continued by a spousal Beneficiary who is not a
Covered Life.
Contract Value Reduces to Zero.
If the Contract Value is reduced to zero, all other rights under the Contract
cease, no subsequent Premium payments will be accepted, and all other
endorsements are terminated without value. The Bonus Period is terminated and no
further bonuses are applied.
If the GAWA% has not yet been determined, it will be set at the GAWA%
corresponding to the youngest Covered Life's attained age at the time the
Contract Value falls to zero and the GAWA will be equal to the GAWA% multiplied
by the GWB.
If the For Life Guarantee is effective, the Owner will receive annual payments
of the GAWA until the death of the last surviving Covered Life. Upon the death
of the last surviving Covered Life, all payments will cease. No death benefit
will apply.
If the For Life Guarantee is not effective, the Owner will receive annual
payments of the GAWA until the earlier of the depletion of the GWB or the death
of the Owner or the death of any Joint Owner if earlier. The last payment will
not exceed the remaining GWB at the time of payment. Upon the death of the Owner
or the death of any Joint Owner or the depletion of the GWB, all payments will
cease and Spousal Continuation is not available. No death benefit will apply.
Subject to the Company's approval, the Owner may elect to receive payments more
frequently than annually. However, the sum of the payments made during the year
may not exceed the annual payment amount described above.
With each payment, the GWB is reduced by the amount of the payment until the GWB
is depleted.
Guaranteed Withdrawal Balance Step-Up.
On each Contract Anniversary following the effective date of this endorsement,
the GWB will automatically step up to the highest quarterly Contract Value if
the highest quarterly Contract Value is greater than the GWB.
Upon step-up on or after the 11th Contract Anniversary following the effective
date of this endorsement, the Company reserves the right to prospectively
increase the GMWB Charge percentage, subject to the maximum GMWB Charge
percentage indicated in this endorsement. You will be notified in advance of a
GMWB Charge percentage increase and may elect to discontinue the automatic
step-ups. You may subsequently elect to reinstate the GWB step-up provision at
the then current GMWB Charge percentage. All requests will be effective on the
Contract Anniversary following receipt of the request in Good Order.
The highest quarterly Contract Value is equal to the highest of the quarterly
adjusted Contract Values from the four most recent Contract Quarterly
Anniversaries, including the Contract Anniversary upon which the step-up is
determined.
The quarterly adjusted Contract Value is equal to the Contract Value on the
Contract Quarterly Anniversary, plus any Premium paid subsequent to that
Contract Quarterly Anniversary, net of any applicable premium taxes, adjusted
for any partial withdrawals taken subsequent to that Contract Quarterly
Anniversary.
Partial withdrawals will affect the quarterly adjusted Contract Value as
follows:
1. If the partial withdrawal plus all prior partial withdrawals made in the
current Contract Year is less than or equal to the greater of the GAWA or
the RMD, the quarterly adjusted Contract Value is equal to the greater of:
a. the quarterly adjusted Contract Value prior to the partial withdrawal
less the partial withdrawal; or
b. zero.
2. If the partial withdrawal plus all prior partial withdrawals made in the
current Contract Year exceeds the greater of the GAWA or the RMD, the
excess withdrawal is defined to be the lesser of the total amount of the
current partial withdrawal or the amount by which the cumulative partial
withdrawals for the current Contract Year exceeds the greater of the GAWA
or the RMD, and the quarterly adjusted Contract Value is equal to the
greater of:
a. the quarterly adjusted Contract Value prior to the partial withdrawal,
first reduced dollar for dollar for any portion of the partial
withdrawal not defined as an excess withdrawal, then reduced in the
same proportion that the Contract Value is reduced for the excess
withdrawal; or
b. zero.
At the time of step-up:
1. The GWB is set equal to the highest quarterly Contract Value, subject to a
maximum of $5,000,000.00. 2. The bonus base will automatically step up to
the new GWB if the new GWB is greater than the bonus base. 3. The BDB
equals the greater of:
a. The highest quarterly Contract Value; or
b. The BDB prior to the step-up.
If the step-up occurs after the GAWA% is determined:
1. If the highest quarterly Contract Value is greater than the BDB prior to
the step-up and the For Life Guarantee is still in effect, the GAWA% is
re-determined based on the attained age of the youngest Covered Life.
2. The GAWA is the greater of:
a. the GAWA% (as re-determined, if applicable) multiplied by the new GWB;
or
b. the GAWA prior to the step-up."
4) The following language is added to the DEATH BENEFIT PROVISIONS of the
Contract:
"Upon the death of the Owner or the death of any Joint Owner, while the Contract
is still in force, the GMWB terminates without value, unless continued by the
spouse.
Upon continuation of the Contract by the surviving Covered Life, the GMWB will
remain in force and may not be subsequently terminated independently from the
Contract to which it is attached. The GAWA will continue to be determined in
accordance with the rules described under the Guaranteed Annual Withdrawal
Amount provision and will be based on the youngest Covered Life's attained age.
The GWB adjustment will apply in accordance with the Guaranteed Withdrawal
Balance Adjustment provision and will continue to be based on the original
youngest Covered Life's attained age. Step-ups will continue as permitted in
accordance with the rules described under the Guaranteed Withdrawal Balance
Step-Up provision. Bonuses will continue to apply in accordance with the rules
described in the Guaranteed Withdrawal Balance Bonus provision. Contract Years
and Contract Anniversaries will continue to be based on the anniversary of the
original Contract's Issue Date and the effective date of this endorsement will
continue to be the original endorsement effective date. The Bonus Period will
continue to be based on the original effective date of this endorsement or the
most recent bonus base step-up, if applicable. The latest date upon which the
Bonus Period can re-start will continue to be based on the original youngest
Covered Life's attained age.
Upon continuation of the Contract by a surviving spouse who is not a Covered
Life, the spouse may elect to terminate the GMWB on the Continuation Date and
thereafter no GMWB Charge will be assessed. If the spouse does not make such
election on the Continuation Date, the GMWB will remain in force and may not be
subsequently terminated independently from the Contract to which it is attached.
All conditions upon continuation of the GMWB (as described above) will apply
except that the For Life Guarantee and Guaranteed Withdrawal Balance Adjustment
provision are null and void. If the GAWA% has not yet been determined, it will
be set at the GAWA% corresponding to the original youngest Covered Life's
attained age on the continuation date and the GAWA will be equal to the GAWA%
multiplied by the GWB and will not change on future step-ups."
5) The following language is added to the INCOME PROVISIONS of the Contract:
"On the Latest Income Date if the For Life Guarantee is in effect, in addition
to the Income Options available under the Contract, the following Income Option
may be elected:
Joint Life Income of the GAWA. The Owner is entitled to receive payments of a
fixed dollar amount payable during the lifetime of the last surviving Covered
Life. The total annual amount payable under this option will equal the GAWA in
effect at the time of election of this option. This amount will be paid in the
frequency (not less than annually) that the Owner elects. No further annuity
payments are payable after the death of the last surviving Covered Life, and
there is no provision for a death benefit payable to the Beneficiary. Therefore,
it is possible for only one annuity payment to be made under this Income Option
if both Covered Lives die before the due date of the second payment. If the
GAWA% has not yet been determined, it will be set at the GAWA% corresponding to
the youngest Covered Life's attained age at the time of election of this Income
Option and the GAWA will be equal to the GAWA% multiplied by the GWB.
On the Latest Income Date if the For Life Guarantee is not in effect, in
addition to the Income Options available under the Contract, the following
Income Option may be elected:
Specified Period Income of the GAWA. The Owner is entitled to receive payments
of a fixed dollar amount for a stated number of years. The actual number of
years that payments will be made is determined on the calculation date by
dividing the GWB by the GAWA. Upon each payment, the GWB will be reduced by the
payment amount. The total annual amount payable under this option will equal the
GAWA in effect at the time of election of this option, but will not exceed the
remaining GWB. This amount will be paid over the determined number of years in
the frequency (not less than annually) that the Owner elects. If, at the death
of the Owner, payments have been made for less than the stated number of years,
the remaining payments will be made to the Beneficiary. This option may not be
available on certain Qualified Plans."
TERMINATION OF THE GMWB. The GMWB will terminate, a pro rata GMWB Charge will be
deducted from Your Separate Account Contract Value for the period since the last
monthly GMWB Charge, and all benefits under this endorsement will cease on the
earlier of:
1. the date the Owner elects to receive income payments under the Contract;
2. the date of a full surrender;
3. the date upon which the Contract terminates because the Owner or any Joint
Owner dies, unless continued by the spouse;
4. the Continuation Date if the surviving spouse elects to terminate the GMWB
and the spouse is permitted under the terms of this endorsement to make
such election; and
5. the date upon which all obligations for payment under this endorsement have
been satisfied after the Contract has been terminated.
Endorsement effective date (if different from Issue Date of the Contract):
SIGNED FOR THE
JACKSON NATIONAL LIFE INSURANCE COMPANY
CLARK P. MANNING
Clark P. Manning
PRESIDENT AND CHIEF EXECUTIVE OFFICER
Illustration of Withdrawal Calculations of the
Joint For Life Guaranteed Minimum Withdrawal Benefit
With Bonus and Annual Step-Up
These examples are provided to assist you in understanding how certain values
are computed for this endorsement when withdrawals are made from the Contract.
The examples only depict limited circumstances and specific factual assumptions.
The results may vary depending upon the timing or sequence of actions as well as
changes in market conditions.
The following examples assume you elect the Joint For Life GMWB With Bonus and
Annual Step-Up when you purchase your Contract, and your initial Premium payment
is $100,000. No other optional benefits are elected. The examples assume that
the youngest Covered Life is 65 years old at the time of your first withdrawal.
Under these circumstances, your initial GWB, BDB, and bonus base are equal to
$100,000, your initial GWB Adjustment is $200,0000, your GAWA% is 5%, and your
initial GAWA is $5,000.
Example 1: Withdrawal equal to the GAWA when the Contract Value has decreased
due to negative market performance.
If you withdraw the GAWA ($5,000) and your Contract Value is $80,000 at the time
of withdrawal, then
o Your GWB becomes $95,000, which is your prior GWB ($100,000) minus the
GAWA ($5,000).
o Your GAWA for the next year remains $5,000 because you did not take
more than the GAWA ($5,000).
o Your bonus base remains $100,000 because you did not withdraw more
than the GAWA ($5,000). However, since a withdrawal was taken during
the Contract Year, no bonus will be applied to the GWB at the end of
the Contract Year.
o If the withdrawal was taken prior to the GWB Adjustment Date, you will
no longer be eligible for the GWB adjustment.
o Your BDB remains $100,000 since the BDB is not adjusted for partial
withdrawals.
Example 2: Withdrawal exceeds the greater of the GAWA or the RMD when the
Contract Value has decreased due to negative market performance.
If you withdraw $20,000, your GAWA of $5,000 is greater than your RMD, your For
Life Guarantee is effective, and your Contract Value is $80,000 at the time of
withdrawal, then
o The dollar for dollar portion of the withdrawal is equal to the GAWA
($5,000). The excess withdrawal is the amount by which the partial
withdrawal exceeds the GAWA: $20,000-$5,000 = $15,000.
o The Contract Value, after reduction for the dollar for dollar portion
of the withdrawal, is $75,000. The excess withdrawal of $15,000
reduces the Contract Value by 20% ($15,000/$75,000 = 20%).
o Your new GWB is $76,000, which is your prior GWB minus the dollar for
dollar portion of the withdrawal, then reduced in the same proportion
that the Contract Value is reduced for the excess withdrawal
(($100,000 - $5,000) x (1-20%) = $76,000). o Your new GAWA is $4,000,
which is the GAWA prior to the withdrawal reduced by 20%.
o We recalculate your bonus base to equal the lesser of your new GWB
($76,000) or your bonus base prior to the partial withdrawal
($100,000). In this case, your new bonus base becomes $76,000. In
addition, since a withdrawal was taken during the Contract Year, no
bonus will be applied to the GWB at the end of the Contract Year.
o If the withdrawal was taken prior to the GWB Adjustment Date, you will
no longer be eligible for the GWB adjustment.
o Your BDB remains $100,000 since the BDB is not adjusted for partial
withdrawals.
As you can see from the examples above, taking a withdrawal that exceeds the
greater of the GAWA or the RMD reduces the Guaranteed Minimum Withdrawal
Benefit.
4 Subsequent Filings that Reference this Filing
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