Class Plus 2 Information Folder and Contract Provisions - Empire Life

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Example – calculation of the LWA (with Excess Withdrawals)Assumption: Annuitant is 60 years old as of December 31st 2013 (year of intial deposit).Date Transaction AmountIncome Base afterTransactionMarket Value ofFund Class Units*CurrentLWAMay 01-2013 Initial Deposit $100,000 $100,000 $100,000 $3,500 n/aAug 21-2013 Excess Withdrawal $10,000 $90,000 $92,000 $3,500 n/aLWA forNext YearDec 31-2013 Recalculation of LWA n/a $90,000 $93,300 $3,500 $3,150(3.5% of $90,000)*The market values quoted are hypothetical and for illustrative purposes only and should not be considered as representative of past or futureinvestment performance.6.3 Joint Tiered Lifetime Withdrawal AmountOption (“Joint Tiered LWA Option”)If you select the Joint Tiered LWA Option, the Annuitant andJoint Life must be joint owners with right of survivorship(subrogated policyholders in Quebec), in accordance withour rules.6.3.1 Calculation of the LWA for the Year ofInitial DepositOn receipt of the initial deposit, we will calculate your LWAbased on the amount of the deposit (the initial Income Base) andthe initial Joint Tiered LWA Percentage. The initial Joint TieredLWA Percentage used is based on the youngest of the Annuitantand the Joint Life’s age as of December 31st of the calendar yearin which the initial deposit is made. If the Annuitant or theJoint Life is younger than 55 as of December 31st of the currentcalendar year, the LWA is set to equal $0 and any withdrawalis considered an Excess Withdrawal (See Section 6.8 ExcessWithdrawals). If both the Annuitant and the Joint Life are 55or older as of December 31st of the current calendar year, theLWA will be calculated based on the initial Income Base andthe initial Joint Tiered LWA Percentage (as shown in the chartbelow) that corresponds to the youngest of the Annuitant andthe Joint Life’s age as of December 31st of the currentcalendar year.6.3.2 Calculation of the LWA for Subsequent YearsOn December 31st of each year we will calculate your LWA forthe following calendar year.If total withdrawals have not exceeded the LWA for the currentcalendar year, the LWA for the following calendar year is thegreater of:1) the current LWA; and2) a new LWA that is calculated based on the current IncomeBase (after all transactions have been processed) andthe Joint Tiered LWA Percentage that corresponds to theyoungest of the Annuitant and the Joint Life’s age as ofDecember 31st of the following calendar year.If total withdrawals have exceeded the LWA for the currentcalendar year, the LWA for the following calendar year willbe an amount equal to the Joint Tiered LWA Percentage ofthe current Income Base (after all transactions have beenprocessed). The Joint Tiered LWA Percentage will be determinedbased on the youngest of the Annuitant and the Joint Life’s ageas of December 31st of the following calendar year.Note that the Joint Tiered LWA Percentage will automaticallyincrease as the youngest of the Annuitant and the Joint Life’sage increases as shown in the chart below. The LWA is alwaysbased on the age of the youngest of the Annuitant and the JointLife even if that person dies while your contract is in effect.The current Joint Tiered LWA Percentages are as follows:Youngest of Annuitant or JointLife’s AgeJoint Tiered LWA Percentageless than 55 0.00%55 - 59 2.50%60 - 64 3.00%65 - 69 3.50%70 - 74 3.75%75+ 4.50%We reserve the right to change the Joint Tiered LWAPercentages. Such a change will not apply to contracts issuedprior to the date on which the change becomes effective. Ifthe new Joint Tiered LWA Percentages are higher than thosein effect when your contract was issued, we may allow you tochange to the new Joint Tiered LWA Percentages in accordancewith our rules.If total withdrawals have not exceeded the LWA for the currentcalendar year, the remainder will not be added to the LWA forthe next calendar year.9
Example – calculation of the LWA (without Excess Withdrawals)Assumption: Annuitant is 66 years old and Joint Life is 58 as of December 31st 2013 (year of initial deposit).Date Transaction AmountIncome BasebeforeTransactionBonusBase*IncomeBaseBonus*IncomeBaseafterTransactionCurrentLWAMay 01-2013 Initial Deposit $100,000 $0 $100,000 n/a $100,000 $2,500 n/aDec 31-2013Aug 21-2014Dec 31-2014Income BaseBonusSubsequentDepositIncome BaseBonus* See Section 6.5 Income Base Bonus6.4 Income BaseThe initial Income Base is set to equal the initial deposit.Example – the impact of deposits on the Income BaseDate Transaction AmountLWA forNext Yearn/a $100,000 $100,000 $5,000 $105,000 $2,500 $2,625(2.5% of$105,000)$100,000 $105,000 $200,000 n/a $205,000 $2,625 n/an/a $205,000 $200,000 $10,000 $215,000 $2,625 $6,450(3% of $215,000)Income Base BeforeTransactionDec 02-2012 Initial Deposit $80,000 $0 $80,000May-11-2013 Subsequent Deposit $30,000 $80,000 $110,000Example – the impact of withdrawals on the Income Base (not exceeding the LWA)Date Transaction AmountIncome Base BeforeTransactionDec 02-2012 Initial Deposit $200,000 $0 $200,000May 11-2013Sep 30-2013Withdrawal (not exceedingthe LWA)Withdrawal (not exceedingthe LWA)$2,000 $200,000 $198,000$1,000 $198,000 $197,000Income Base After TransactionIncome Base After TransactionThe Income Base may:1) increase by any subsequent deposits;2) increase on the last Valuation Date of each calendar yearby a notional Income Base Bonus (See Section 6.5 IncomeBase Bonus);3) increase on every third Class Plus Anniversary Date as aresult of an Income Base Reset (See Section 6.6 IncomeBase Reset);4) decrease by any withdrawals; and5) decrease additionally for Excess Withdrawals (See Section6.8 Excess Withdrawals).6.5 Income Base BonusThe contract may be eligible for notional bonuses that willincrease your Income Base each calendar year following theinitial deposit. This includes the calendar year of theinitial deposit.If there are no withdrawals during the calendar year, theIncome Base will increase by a notional Income Base Bonus.The amount of the Income Base Bonus is currently equal to 5%of the current Bonus Base. Income Base Bonuses are applied tothe Income Base on the last Valuation Date of the calendar year.10
Page 3 and 4: KEY FACTS FOR THE CLASS PLUS 2 CONT
Page 5 and 6: TABLE OF CONTENTS1. GENERAL INFORMA
Page 7 and 8: INTRODUCTIONThe Empire Life Insuran
Page 9 and 10: or, if applicable, the life of the
Page 11 and 12: certain transactions otherwise perm
Page 13 and 14: You may, by providing notice to us
Page 15: Example - calculation of the LWA (w
Page 19 and 20: 6.6 Income Base ResetCommencing on
Page 21 and 22: We will notify you that the withdra
Page 23 and 24: On the death of the Annuitant:1) a
Page 25 and 26: The fee you pay for the Maturity an
Page 27 and 28: 8.3.3 Collection of the Class Plus
Page 29 and 30: Retirement income payments that con
Page 31 and 32: 11.7 Fees and Expenses Paid by the
Page 33 and 34: 11.15.1 Portfolio FundsWe currently
Page 35 and 36: The portfolio’s curve positioning
Page 37 and 38: Principal RisksRisks of investing i
Page 39 and 40: the foreign currency, the currency
Page 41 and 42: APPENDIX TO INFORMATION FOLDER34
Page 43 and 44: Income Now - Down Market ScenarioAs
Page 45 and 46: Income Later - Down Market Scenario
Page 47 and 48: John and Mary are guaranteed an LWA
Page 49 and 50: Income Later - Down Market Scenario
Page 51 and 52: 1. GENERAL INFORMATION1.1 Definitio
Page 53 and 54: and a Senior Vice-President of Empi
Page 55 and 56: You may, by providing notice to us
Page 57 and 58: 1) the current LWA; and2) a new LWA
Page 59 and 60: 6.3 Maturity BenefitThe Maturity Be
Page 61 and 62: 6.11.1 Death Benefit GuaranteeThe D
Page 63 and 64: 8.3 Valuation Date and Fund Class U
Page 65 and 66: 2) “Spouse” or “common-law pa
Page 68:
The Empire Life Insurance Company (
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Class Plus 2 Information Folder and Contract Provisions - Empire Life

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