7739ANY
[2900 Westchester Avenue
Purchase, New York 10577]
ENDORSEMENT
JOINT FOR LIFE GUARANTEED MINIMUM WITHDRAWAL BENEFIT
WITH BONUS AND ANNUAL STEP-UP
Thank you for choosing Jackson National Life Insurance Company of New York®,
hereinafter referred to as "the Company" or "Jackson of New York®." This guaranteed
minimum withdrawal benefit (GMWB) is made a part of the Contract to which it is attached.
This benefit provides a minimum withdrawal benefit that guarantees, upon election, a
series of withdrawals
from the Contract equal to the Guaranteed Annual Withdrawal
Amount Percentage (GAWA%), shown on the Supplemental Contract Data Pages, of the
Guaranteed Withdrawal Balance (GWB). The GWB is established for the sole purpose of
determining the minimum withdrawal benefit and is not used in calculating cash surrender
benefit other guaranteed benefits.
Certain provisions of Your Contract are revised as described below and are in effect on
the Effective Date of this endorsement as shown on the Supplemental Contract Data
Pages. 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. The provisions of Your Contract remain in effect except where
modified by this endorsement.
PLEASE NOTE: THIS ENDORSEMENT CANNOT BE
TERMINATED INDEPENDENTLY FROM
THE CONTRACT TO WHICH IT IS ATTACHED EXCEPT AS OUTLINED IN THE DEATH
BENEFIT PROVISIONS.
OWNER(S) MAY CHANGE OWNERSHIP OF THE CONTRACT, HOWEVER THE COVERED
LIVES (AS DEFINED BY THIS ENDORSEMENT) CANNOT CHANGE.
THE COMPANY ASSUMES NO RESPONSIBILITY FOR THE VALIDITY OR TAX
CONSEQUENCES OF ANY OWNERSHIP CHANGE. IF YOU MAKE AN OWNERSHIP
CHANGE, YOU MAY HAVE TO PAY TAXES. YOU ARE ENCOURAGED TO SEEK LEGAL
AND/OR TAX ADVICE.
THE COMPANY RESERVES THE RIGHT TO INCREASE THE GMWB CHARGE IN THE
FUTURE. YOU CAN ELECT TO OPT OUT OF ANY FUTURE GMWB CHARGE INCREASE,
HOWEVER UPON SUCH ELECTION, NO SUBSEQUENT PREMIUM PAYMENTS WILL BE
ALLOWED, WHICH MAY IMPACT THE POTENTIAL VALUE AND DURATION OF THIS
BENEFIT.
THE 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.
7739ANY 2
THE FOR LIFE GUARANTEE DOES NOT BECOME EFFECTIVE UNTIL THE CONTRACT
ANNIVERSARY ON OR IMMEDIATELY FOLLOWING THE DESIGNATED LIFE'S ATTAINED
AGE 59 1/2, UNLESS THE DESIGNATED LIFE IS 59 1/2 OR OLDER ON 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.
PLEASE NOTE: PARTIAL WITHDRAWALS IN EXCESS OF THE GAWA COULD REDUCE
FUTURE BENEFITS BY MORE THAN THE DOLLAR AMOUNT OF THE WITHDRAWAL.
THE GUARANTEED WITHDRAWAL BALANCE ADJUSTMENT WILL BE APPLIED TO THE
GUARANTEED WITHDRAWAL BALANCE
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 TOTAL WITHDRAWAL OF THE CONTRACT VALUE, THE GMWB IS TERMINATED
WITHOUT VALUE. SURRENDER OF YOUR CONTRACT WITH A REDUCED OR ZERO
CONTRACT VALUE MAY NOT BE APPROPRIATE IF THE GUARANTEED WITHDRAWAL
BALANCE IS POSITIVE.
FOR INFORMATION ON HOW THIS GMWB IS CALCULATED, PLEASE SEE THE
ILLUSTRATION ON PAGE 11.
THIS ENDORSEMENT PROVIDES NO CASH OR NONFORFEITURE VALUES.
CERTAIN DEFINITIONS AS FOUND IN THE CONTRACT HAVE BEEN LISTED BELOW FOR
INFORMATIONAL PURPOSES
CONTRACT VALUE. The
Contract Value is the sum of the Separate Account Contract Value and
the Fixed Account Contract Value
INCOME DATE. The date on which Income Payments are to begin as described in the Income
Provisions.
SEPARATE ACCOUNT CONTRACT VALUE. The current value of the amounts under this
Contract allocated to the Separate Account's Investment Divisions.
The Contract is revised as follows:
1) The following language is added to the DEFINITIONS of the Contract:
The following definitions are applicable to this endorsement only. All other terms defined in the
Contract that are used in this endorsement have the same definition as in the Contract.
"BENEFIT DETERMINATION BASELINE (BDB). The value the Company uses to determine
whether the GAWA% will increase upon step-up.
7739ANY 3
BONUS PERIOD. The time period over which the Owner is eligible for a bonus, as shown on the
Supplemental Contract Data Pages.
CONTINGENT ANNUITANT. The natural person that is designated as one of the Covered Lives
on a Qualified Custodial Account Contract only. Any reference to the Annuitant does not include
any Contingent Annuitant.
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.
COVERED LIFE. The individuals covered under the For Life Guarantee. 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 Qualified Custodial Account
Contracts, the Annuitant and the spousal Contingent Annuitant named as of the Effective Date
of this endorsement will each be considered a Covered Life. On Non-Qualified Plan contracts,
the spousal Joint Owners will each be considered a Covered Life. The Covered Lives may not
be subsequently changed. In certain circumstances, the Company may permit the elimination
of a Joint Owner in the event of divorce.
DESIGNATED LIFE. The life on which the GMWB benefit is based. The Designated Life is
shown on the Supplemental Contract Data Pages. The Designated Life will be the youngest
Covered Life.
EFFECTIVE DATE. The date defined on the Supplemental Contract Data Pages.
GUARANTEED ANNUAL WITHDRAWAL AMOUNT (GAWA). The maximum guaranteed
amount the Owner is allowed to withdraw each Contract Year, subject to the RMD 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 date the GWB adjustment is applied to the GWB shown on the
Supplemental Contract Data Pages.
QUALIFIED CUSTODIAL ACCOUNT CONTRACT. A Qualified Plan contract (including Roth
IRAs) with a custodial Owner and Beneficiary.
REQUIRED MINIMUM DISTRIBUTION (RMD). For certain Qualified Plan 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. For purposes of this
endorsement, this definition excludes any withdrawal necessary to
satisfy the minimum distribution requirements of the Internal Revenue Code if the Contract is
purchased with contributions from a nontaxable transfer after the death of the owner of a qualified
contract."
7739ANY 4
2) The following language is added to the MISSTATEMENT OF AGE AND/OR SEX provision
of the GENERAL PROVISIONS of the Contract:
"If the age of any Covered Life is incorrectly stated on the Effective Date of the GMWB then, on
the date the misstatement is discovered, the GWB and GAWA will be recalculated based on the
GAWA% applicable at the correct age."
3) The following language is added to the REPORTS provision of the GENERAL PROVISIONS
of the Contract:
"For the current reporting period, if the GMWB is in effect, the Contract's annual report will
also include: any bonus amount credited to the GWB, the beginning and ending GWB, the
applicable GAWA% and the GAWA amount available for withdrawal in the following Contract
Year, and the Contract Value after the application of the GMWB Charges."
4) The following language is added to the WITHDRAWAL PROVISIONS of the Contract:
"FOR LIFE GUARANTEED MINIMUM WITHDRAWAL BENEFIT. The GMWB allows You to
take periodic partial withdrawals prior to the Income Date: 1) if the For Life Guarantee is in effect,
for the lifetime of the last surviving Covered Life, or 2) if the For Life Guarantee is not in effect,
until the earlier of Your death or the death of any Joint Owner, the death of the Annuitant on
Qualified Custodial Account Contracts, 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. Guaranteed withdrawals under the GMWB are non-
cumulative; therefore, if You do not take the GAWA
or the RMD in one year, You 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 Contract Value if the 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 after the Effective Date of this endorsement, including any
applicable charges and adjustments to such withdrawals. The total amount received under
the guarantee may be less than the GWB
at election due to the application of these charges
and adjustments.
Any withdrawal less than or equal to the greater of the GAWA or the RMD is considered a
partial withdrawal rather than a full withdrawal, even if it is greater than or equal to the Contract
Value.
A partial withdrawal in excess of the Withdrawal Value will be permitted as long as total partial
withdrawals in the Contract Year do 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 total partial withdrawals
in the Contract Year do 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.
7739ANY 5
Assessment of GMWB Charge. The GMWB Charge in effect on the Effective Date is shown on
the Supplemental Contract Data Pages.
The GMWB Charge will be deducted on a pro rata basis from the Investment Divisions of the
Separate Account at the end of each Contract Month. 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.
The Company reserves the right to increase the GMWB Charge percentage, subject to the
Maximum Guaranteed Minimum Withdrawal Benefit Charge provision found on the Supplemental
Contract Data Pages.
Guaranteed Withdrawal Balance. On the Effective Date of this endorsement, the GWB is
determined as follows and is subject to the GWB Maximum shown on the Supplemental Contract
Data Pages:
1. If the Effective Date of this endorsement is the Issue Date of the Contract, the GWB 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 GWB
equals the Contract Value on the Effective Date of this endorsement.
With each subsequent Premium payment received after the Effective Date of this endorsement,
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 GWB Maximum.
With each partial withdrawal,
the GWB is reduced.
Withdrawals in excess of the GAWA but less than or equal to the RMD are subject to favorable
withdrawal treatment, contingent upon Your acceptance of the Company's calculations of the
RMD amounts. The RMD calculations will be limited to this Contract only.
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 as 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
exceed 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.
The GWB may not be withdrawn as a lump-sum and is not payable as a death benefit.
7739ANY 6
Guaranteed Annual Withdrawal Amount. The GAWA% is the percentage upon which the
GAWA is based and is defined on the Supplemental Contract Data Pages.
The GAWA% is determined at the earlier of: 1) the date You elect to opt out of an increase to the
GMWB Charge percentage, 2) the time of the first withdrawal after the Effective Date of this
endorsement, 3) the date that the Contract Value reduces to zero, 4) the date that the GMWB
endorsement is continued by a spousal Beneficiary who is not a Covered Life, or 5) upon election
of the Joint Life Income of the GAWA Income Option. The GAWA% is based on the Designated
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 payment received after the GAWA%
is determined, the GAWA
will be recalculated to equal the GAWA prior to the Premium payment plus the lesser of:
1. the GAWA% multiplied by the subsequent Premium payment, net of any applicable premium
taxes; or
2. the GAWA% multiplied by the increase in the GWB.
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, the GAWA 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 excess withdrawal
is defined as 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
exceed
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.
At the end of each Contract Year after the GAWA has been determined, if the For Life Guarantee
is not in effect and the GWB is less than the GAWA, the GAWA is set equal to the GWB.
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 payment, 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.
With each subsequent Premium payment received after the Effective Date of this endorsement,
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. After the Effective Date of this endorsement, 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.
7739ANY 7
At the time the bonus is applied:
1. The GWB equals the GWB prior to the application of the bonus plus the bonus base multiplied
by the Bonus Percentage shown on the Supplemental Contract Data Pages, and is subject to
the GWB Maximum shown on the Supplemental Contract Data Pages.
2. If the bonus is applied after the GAWA% has been determined, 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 payment received after the Effective Date of this endorsement,
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 the Bonus
Base Maximum shown on the Supplemental Contract Data Pages.
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.
Adjustments to the Bonus Base due to partial withdrawals will continue even if You have elected
to discontinue the bonus provision to avoid charge increases.
The GWB Bonus provision is terminated on the earlier of 1) the date the Contract Value is reduced
to zero, 2) the date You elect to discontinue the GWB Bonus provision to avoid charge increases,
or 3) the date the GMWB endorsement is terminated.
Guaranteed Withdrawal Balance Adjustment. After the Effective Date of this endorsement, if
no withdrawals are taken on or prior to the GWB Adjustment Date, the GWB adjustment is applied
to the GWB on the GWB Adjustment Date.
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 the GWB Maximum shown on the Supplemental
Contract Data Pages.
The GWB adjustment is determined as follows:
On the Effective Date of this endorsement, the GWB adjustment is equal to the GWB Adjustment
Percentage
shown on the Supplemental Contract Data Pages multiplied by the GWB, subject to
the GWB Adjustment Maximum shown on the Supplemental Contract Data Pages.
With each subsequent Premium payment received after the Effective Date of this endorsement
and prior to the first Contract Anniversary following the Effective Date of this endorsement, the
GWB adjustment will be recalculated to equal the GWB adjustment prior to the Premium payment
plus the Premium payment, net of any applicable premium taxes, multiplied by the GWB
Adjustment Percentage, subject to the GWB Adjustment Maximum.
7739ANY 8
With each subsequent Premium payment received on or after the first Contract Anniversary
following the Effective Date of this endorsement, the GWB adjustment will be 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 the GWB Adjustment Maximum.
The GWB Adjustment provision is terminated on the earlier of 1) the GWB Adjustment Date, 2)
the date a partial withdrawal is made prior to the GWB Adjustment Date, 3) the date the Contract
Value is reduced to zero, 4) the date this GMWB endorsement is terminated, 5) the date this
GMWB endorsement is continued by a spousal Beneficiary who is not a Covered Life, or 6) the
date You elect to discontinue the GWB Adjustment provision to avoid charge increases.
For
Life Guarantee. While the Contract is still in effect with a Contract Value greater than zero
and before the Income Date, the For Life Guarantee becomes effective on the For Life Guarantee
Effective Date shown on the Supplemental Contract Data Pages.
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
Designated 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 in effect, You 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 in effect, You will receive annual payments of the GAWA until the
earlier of the depletion of the GWB, the death of the Owner, the death of any Joint Owner, or the
death of the Annuitant on Qualified Custodial Account Contracts. With each payment, the GWB
is reduced by the amount of the payment until the GWB is depleted. 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, You may elect to receive payments more frequently than
annually. However, the total of the payments made during the year may not exceed the annual
payment amount described above.
If the GAWA is less than the Minimum GAWA shown on the Supplemental Contract Data Pages,
the Company may, at its discretion, require the GAWA to be paid in annual intervals or pay the
present value of future GAWA payments in a lump-sum, net of any applicable taxes and
subsequently terminate the endorsement. The actuarial basis for computing the present value of
the future GAWA payments
will be the same as the Basis of Computation described in Your
Contract.
7739ANY 9
Guaranteed Withdrawal Balance Step-Up. On each Contract Anniversary following the
Effective Date of this endorsement, the GWB will automatically step up to the Contract Value if
the Contract Value is greater than the GWB.
At the time of step-up:
1. The GWB is set equal to the Contract Value, subject to the GWB Maximum shown on the
Supplemental Contract Data Pages.
2. The bonus base equals the greater of:
a. the new GWB; or
b. the bonus base prior to the step-up.
3. The BDB equals the greater of:
a. the Contract Value; or
b. the BDB prior to the step-up.
If the step-up occurs after the GAWA% has been determined, then:
1. if the 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 Designated
Life; and
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."
5) The following language is added to the DEATH BENEFIT PROVISIONS of the Contract:
"Upon Your death or the death of any Joint Owner, while the Contract is still in effect, the Contract
and GMWB terminate without value, unless the Contract is continued by the spouse.
Upon continuation of the Contract by the surviving Covered Life, the GMWB will remain in effect
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 Designated 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 Designated 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 Designated 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 an election on the continuation date, the GMWB
will be continued by the spouse, 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 provisions are null and void. If the GAWA% has not yet been
determined, it will be set at the GAWA% corresponding to the Designated Life's attained age on
the continuation date, the GAWA will be equal to the GAWA%
multiplied by the GWB and the
GAWA% will not change on future step-ups."
7739ANY 10
6) 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 in Your Contract, one of the following GMWB Income Options may be elected:
JOINT LIFE INCOME OF THE GAWA. You are 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 You elect. 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 GMWB 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 Designated Life's attained age at the time of election of this GMWB
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 in Your Contract, the following GMWB Income Option may be elected:
SPECIFIED PERIOD INCOME OF THE GAWA. You are 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 You elect. 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 terminates, 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 endorsement benefits end on the earlier of:
1. the date You elect to receive income payments under the Contract;
2. the Latest Income Date;
3. the date You take a total withdrawal;
4. the date upon which the Contract terminates because the Owner, any Joint Owner, or the
Annuitant on Qualified Custodial Account Contracts, dies, unless continued by the spouse;
5. 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 an election;
6. the date upon which You receive the single lump sum payment because the Contract Value
has fallen to zero and the GAWA is less than or equal to the Minimum GAWA shown on the
Supplemental Contract Data Pages; and
7. the date upon which all obligations for payment under this endorsement have been satisfied
after the Contract has been terminated.
Signed for the Jackson National Life
Insurance Company of New York
[President]
7739ANY 11
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 Designated 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 $200,000, Your GAWA%
is 4.50%, and Your initial GAWA is $4,500. Both examples assume that Your GAWA
exceeds Your RMD.
Example 1: Withdrawal equal to the GAWA when the Contract Value has decreased due to
negative market performance.
If You withdraw the GAWA ($4,500) and Your Contract Value is $72,000 at the time of withdrawal,
then
Your GWB becomes $95,500, which is Your prior GWB ($100,000) minus the GAWA
($4,500).
Your GAWA for the next year remains $4,500 because You did not take more than the
GAWA
($4,500).
Your bonus base remains $100,000 because You did not withdraw more than the GAWA
($4,500). 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.
Since the withdrawal was taken prior to the GWB Adjustment Date, You will no longer be
eligible for the GWB adjustment.
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 $18,000, Your GAWA of $4,500 is greater than Your RMD, Your For Life
Guarantee is effective, and Your Contract Value is $72,000 at the time of withdrawal, then
The dollar for dollar portion of the withdrawal is equal to the GAWA ($4,500). The excess
withdrawal is the amount by which the partial withdrawal exceeds the GAWA: $18,000-
$4,500 = $13,500.
The Contract Value, after reduction for the dollar for dollar portion of the withdrawal, is
$67,500. The excess withdrawal of $13,500 reduces the Contract Value by 20%
($13,500/$67,500 = 20%).
Your new GWB is $76,400, 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 - $4,500) x (1-20%) = $76,400).
Your new GAWA is $3,600, which is the GAWA prior to the withdrawal reduced by 20%.
We recalculate Your bonus base to equal the lesser of Your new GWB ($76,400) or Your
bonus base prior to the partial withdrawal ($100,000). In this case, Your new bonus base
becomes $76,400. 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.
7739ANY 12
Since the withdrawal was taken prior to the GWB Adjustment Date, You will no longer be
eligible for the GWB adjustment.
Your BDB remains $100,000 since the BDB is not adjusted for partial withdrawals.
As shown by the examples above, taking a withdrawal that exceeds the greater of the GAWA or
the RMD reduces the Guaranteed Minimum Withdrawal Benefit.
7739ANY-S
SUPPLEMENTAL CONTRACT DATA PAGES
Contract Number: [1234567890]
Benefit: Joint For Life Guaranteed Minimum Withdrawal Benefit with
Bonus and Annual Step-Up
Designated Life: [John Doe]
Designated Life
Issue Age:
[45]
Contingent Annuitant: [Jane Doe]
Contingent Annuitant Issue
Age:
[45]
Bonus Percentage: [5%] of the bonus base
Bonus Base Maximum: [$5,000,000.00]
GWB Adjustment Percentage: [200%] of the GWB
Guaranteed Withdrawal
Balance (GWB) Adjustment
Date:
The later of (a) the Contract Anniversary on or immediately
following the Designated Life's [71st] birthday,
or (b) the
[12th] Contract Anniversary following the Effective Date of
this endorsement.
GWB Adjustment Maximum: [$5,000,000.00]
GWB Maximum: [$5,000,000.00]
For Life Guarantee Effective
Date:
The later of:
1. the Contract Anniversary on or immediately following the
Designated Life's attained age [59 1/2]; or
2. the Effective Date of this endorsement.
Minimum GAWA: [$500]
7739ANY-S 2
SUPPLEMENTAL CONTRACT DATA PAGES (CONT'D)
GAWA%:
Attained Age GAWA%
[35-64 3.00%
65-74 4.00%
75-80 4.50%
81+ 5.00%]
Guaranteed Minimum Withdrawal Benefit (GMWB) Charge. The charge percentage equals
[0.0750%] of the GWB on a monthly basis and is deducted (i) at the end of each Contract Month;
and (ii) upon termination of the GMWB. This charge may increase, subject to the Maximum
Guaranteed Minimum Withdrawal Benefit Charge.
Maximum Guaranteed Minimum Withdrawal Benefit Charge. On each [5th] Contract
Anniversary following the Effective Date of this endorsement, the Company reserves the right to
increase the GMWB Charge percentage by up to [0.0100%] on a monthly basis. The Maximum
GMWB Charge percentage is [0.1500%] on a monthly
basis. If the GMWB Charge percentage is
increased, Written Notice will be provided to You [45] days prior to the Contract Anniversary on
which the GMWB Charge percentage is scheduled to increase. You may elect to opt out of the
current and any future GMWB Charge increases by forfeiting the bonus provision, automatic step-
ups, the GWB Adjustment and any other increases to the GWB and GAWA. Upon such election,
no future Premium payments will be allowed and the GAWA% will be determined with no future
recalculation. Such election is final and must be received in Good Order prior to the Contract
Anniversary on which the GMWB Charge percentage is scheduled to increase.
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 Designated 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 for any reason.
Effective Date. This endorsement is effective on the Issue Date of the Contract to which it is
attached unless otherwise stated.
Signed for the Jackson National Life
Insurance Company of New York
[President]
