GROUP FLEXIBLE FUND RETIREMENT CONTRACT
ENDORSEMENT
Attached to and made a part of this contract
(Group Flexible Fund Retirement Contract)
by
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA
COLUMBUS, OH 43215
WHEREAS, the above-referenced group annuity contract was issued to the Owner ("the
Owner") by NATIONWIDE LIFE INSURANCE COMPANY ("the Company") and the Company
wishes to modify this contract pursuant to Article VI, Section 6.02, effective December 9,2005
NOW, THEREFORE, the Company hereby modifies the contract as follows:
1.) The term Actuarial Risk Fee is hereby deleted in its entirety from the Contract. The term
Variable Account Annual Expense Fee is hereby added to the Contract. All references
to Actuarial Risk Fee found throughout the Contract will now reference the Variable
Account Annual Expense Fee as described in Section 1.01 of this endorsement.
2.) The term Administrative Charge is hereby deleted in its entirety from the Contract. The
term Participant Account Maintenance Charge is hereby added to the Contract. All
references to Administrative Charge found throughout the Contract will now reference
the Participant Account Maintenance Charge as described in Section 1.02 of this
endorsement.
3.) The term Separate Account shall have the same meaning as Variable Account.
4.) The term Series shall have the same meaning as Sub-Account.
5.) The word "Participating" is deleted from the cover page of the Contract and replaced
with NON-PARTICIPATING.
6.) The following revisions will be made to the TABLE OF CONTENTS:
a) Section 1.01 shall read Variable Account Annual Expense Fee
b) Section 1.02 shall read Participant Account Maintenance Charge
c) Section 1.16 shall read Allocated Contract
d) Section 1.17 shall read Unallocated Contract
e) Section 1.18 shall read Initial Transfer
f) Section 2.02 shall read Participant Account Maintenance Charge
g) Section 6.09 shall read Non-Participating
7.) The following revisions will be made to Article I DEFINITIONS:
Section 1.01 Actuarial Risk Fee is hereby deleted in its entirety and replaced with the
following:
Section 1.01 VARIABLE ACCOUNT ANNUAL EXPENSE FEE.
A charge made for various risks assumed by the Company and for the administration of
the Variable Account. This charge will not exceed the rate of 0.95% annually of the
average variable account value.
APO-3681
(4/98)
Section 1.02 ADMINISTRATIVE CHARGE is hereby deleted in its entirety and replaced
with the following:
Section 1.02 PARTICIPANT ACCOUNT MAINTENANCE CHARGE
A charge the Company may assess the Participant, at the direction of the Owner, for the
administration of the Participant's Account. The annual maximum per Participant
Participant Account Maintenance Charge is $0.00.
Section 1.16 is hereby added:
Section 1.16 ALLOCATED CONTRACT
A Contract where individual accounts are maintained by the Company on behalf of each
Participant.
Section 1.17 is hereby added:
Section 1.17 UNALLOCATED CONTRACT
A Contract under which a single account is maintained by the Company on behalf of a
Plan.
Section 1.18 INITIAL TRANSFER
The initial amount transferred by the Owner from an investment product offered by a
provider other than the Company. An Initial Transfer will be the initial Purchase
Payment under a Contract.
8.) The following revisions will be made to Article II CHARGES.
Section 2.02 ADMINISTRATIVE CHARGE is hereby deleted in its entirety and replaced
with the following:
Section 2.02 PARTICIPANT ACCOUNT MAINTENANCE CHARGE
The Company will not assess a flat dollar Participant Account Maintenance Charge
unless the charge is agreed upon between the Owner and the Company. If a
Participant Account Maintenance Charge is assessed, the Company will take the charge
from each Participant Account at the beginning of each Participant Account Year for the
preceding Participant Account Year, during both the accumulation and annuity periods.
The Company will maintain individual records with respect to each Participant and will
make a charge for expenses attributable to maintaining such records. The Company
will effect such charge by canceling a number of accumulation units at the beginning of
each Participant Account Year during both the accumulation and annuity periods, equal
in value to the applicable Participant Account Maintenance Charge. If a Participant's
Account includes more than one Series, the deduction will be allocated between Series
on the basis of relative values at the time the deduction is made. For those Contracts
where the Owner has so elected, there will be no charge for transfers among Series.
If a Participant Account Maintenance Charge is assessed, the Company will assess the
Participant Account Maintenance Charge on the date (other than a Participant
Anniversary) that amounts held in respect of a Participant are fully withdrawn from the
Separate Account. In such case, the amount of the Participant Account Maintenance
Charge will be one-twelfth of the applicable Participant Account Maintenance Charge,
multiplied by the number of whole or partial calendar months which have elapsed
between the Participant Anniversary (or the Participant Effective Date during the first
Participant Account Year) and the date of full withdrawal.
For those Plans which provide the Company's Group Flexible Fund Retirement Contract
(TSP-556) and the Company's Group Fixed Fund Retirement Contract (TSP-557), the
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total of the Administration Charge under the Group Fixed Fund Retirement Contract and
Participant Account Maintenance Charge under the Group Flexible Fund Retirement
Contract assessed shall not exceed the applicable Participant Account Maintenance
Charge. Such charge will be allocated between Series of the DCVA and the deposit
fund on the basis of the relative values of the Participant's Account at the time the
deduction is made.
Section 2.06 Variable Account Annual Expense Fee is hereby added:
SECTION 2.06 VARIABLE ACCOUNT ANNUAL EXPENSE FEE
The Company shall assess a Variable Account Annual Expense Fee to cover the
administrative expenses associated with the issuance of this Contract. The fee is
computed on a daily basis and is equal to an annual rate of:
.55% annually for Funds selected by the Owner from the list of Investor
Destination Series; and
.55% annually for Funds selected by the Owner from the list of Select Spectrum
Series; and
.90% annually for Funds selected by the Owner from the list of Passage Series
of the daily net asset value of the Variable Account.
The total assets of a Plan will be evaluated at least annually, no later than December
31 sl of each calendar year, to determine the Owner's current plan asset level. When the
Owner's total plan assets has reached one of the following breakpoints, the Variable
Account Annual Expense Fee will be increased or decreased within six months following
the evaluation date. The Variable Account Annual Expense Fee will not exceed the
maximum fee, based on the Owner's total plan assets as of the evaluation date, as
stated below:
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Owner's Plan Assets
(Breakpoints )
Maximum Variable Account
Annual Expense Fee
Up to $10 million 0.95% annually
Greater than $10 million but less than or
equal to $25 million 0.90% annually
Greater than $25 million but less than or
equal to $50 million 0.80% annually
Greater than $50 million but less than or
equal to $150 million 0.70% annually
Greater than $150 0.65% annually
This fee is calculated as a percentage of assets and is deducted on each valuation date
from amounts held in the Variable Account. The maximum Variable Account Annual
Expense Fee may not be applicable to Owners which have received the credit on the
Initial Transfer amount in accordance with Section 3.01.
9.) The following revisions will be made to Article III
Section 3.01 Purchase Payments, is hereby deleted in its entirety and replaced with the
following:
Section 3.01 PURCHASE PAYMENTS
The Company shall receive purchase payments from the Owner as are made in
accordance with the requirements of the Plan. Purchase payments for each Participant
must be at least $20 per Participant per month. Payments must be no less frequent
than monthly, unless agreed to by the Company.
Under specific conditions, when authorized by state insurance law, the Company may
credit up to 0% of the Initial Transfer Amount into the Contract. This credit will
reimburse for any exit penalty associated with the other investment vehicle provider(s).
The Company will recover said credit by reducing servicing agent or broker
compensation and/or through increased Variable Account Annual Expense Fees or
increased Participant Account Maintenance Charge, not to exceed the annual maximum
per Participant charge.
10.) The following revisions will be made to Article VI:
Section 6.09 Participating, Dividends is hereby deleted in its entirety and replaced with
the following:
Section 6.09 NON-PARTICIPATING
This Contract is non-participating. It will not share in the surplus of the Company.
11.) In certain instances, this Contract may be issued as an Unallocated Contract. In the
event the Owner requests, and is issued, an Unallocated Contract all references to
Participants Accounts will mean Contract Value. The Owner will be responsible for
furnishing all information which the Company may reasonably require for the
administration of an Unallocated Contract.
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12.) All references to the Progressive Annuity Table will be deleted from the Contract and
replaced with the 1983 Table A (Male). The illustrative table of calculation of variable
payments is as follows:
Secretary
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/?f..,t L ?A.,,-~ ,
President
TABLE B
IllUSTRATIVE TABLE OF CALCULATION OF VARIABLE PAYMENTS
RETIREMENT INCOME PAYMENTS ON A LIFE INCOME WITH
10 YEARS CERTAIN UNISEX RATES
Adjusted Age 62 Adjusted Age 65
Age 62 Column 2 Age 65 Column 2
Beginning Of Column 1 Annual Premium Column 1 Annual Premium
Payment Year Purchase Rate Rate Purchase Rate Rate
1 $223.30 $52.47 $211.93 $54.95
2 218.99 53.18 207.30 55.82
3 214.60 53.92 202.57 56.73
4 210.13 54.67 197.77 57.66
5 205.60 55.43 192.89 58.60
6 201.00 56.20 187.94 59.53
7 196.34 56.97 182.94 60.41
8 191.64 57.72 177.90 61.19
9 186.89 58.41 172.86 61.83
10 182.14 59.00 167.85 62.25
11 177.39 59.80 162.91 62.94
12 172.62 60.85 158.00 63.98
13 167.79 61.90 153.07 65.01
14 162.91 62.94 148.13 66.03
15 158.00 63.98 143.19 67.06
16 153.07 65.01 138.26 68.09
17 148.13 66.03 133.36 69.14
18 143.19 67.06 128.48 70.21
19 138.26 68.09 123.64 71.30
20 133.36 69.14 118.84 72.41
21 128.48 70.21 114.10 73,52
22 123.64 71.31 109.41 74.60
23 118.84 72.41 104.79 75.64
24 114.10 73.52 100.25 76.61
25 109.41 74.60 95.81 77.51
Column 1 is the amount required to provide $1 per month to the Retired Participant.
Column 2 is the amount per $1,000 to be transferred to the General Account to provide
payments for the payment year.
Approved as to form:
CITY OF CLEARWATER, FLORIDA
By:
Attest:
~~-:fL
William B. Horne II
City Manager