Class Plus 2 Information Folder and Contract Provisions - Empire Life

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We reserve the right to change the Income Base Bonuspercentage. Such a change will not apply to contracts issuedprior to the date on which the change becomes effective. If thenew Income Base Bonus percentage is higher than the IncomeBase Bonus percentage in effect when your contract wasissued, we may increase the Income Base Bonus percentage inaccordance with our rules.Income Base Bonuses do not affect the market value of the FundClass Units at the credit of your contract.The Bonus Base is equal to the initial deposit. The Bonus Basewill increase by the amount of any subsequent deposits.Commencing on the third Class Plus Anniversary Date and onevery third Class Plus Anniversary Date thereafter, a BonusBase Reset will automatically occur. A Bonus Base Reset mayresult in an increase to the Bonus Base. If the market value ofthe Fund Class Units at the credit of your contract is greaterthan the Bonus Base, the Bonus Base is increased to equal themarket value of the Fund Class Units at the credit of yourcontract, otherwise it will remain unchanged. If the Class PlusAnniversary Date does not fall on a Valuation Date the mostrecent Valuation Date prior to the Class Plus Anniversary Datewill be used for calculating the market value of the Fund ClassUnits at the credit of your contract.If an Excess Withdrawal occurs and the market value of theFund Class Units at the credit of your contract, determinedimmediately after the withdrawal, is less than the Bonus Base,the Bonus Base is decreased to equal the market value of theFund Class Units at the credit of your contract, otherwise it willremain unchanged.Example – Income Base BonusDate Transaction AmountBonus Baseafter TransactionIncome BaseBonusIncome BaseafterTransactionMarket Valueof Fund ClassUnits*May 01-2013 Initial Deposit $100,000 $100,000 n/a $100,000 $100,000Aug 21-2013 Subsequent Deposit $20,000 $120,000 n/a $120,000 $120,947Dec 31-2013 Income Base Bonus n/a $120,000 $6,000 (5% of$120,000)Dec 31-2014 Income Base Bonus n/a $120,000 $6,000 (5% of$120,000)Dec 31-2015 Income Base Bonus n/a $120,000 $6,000 (5% of$120,000)May 01-2016Income Base/Bonus BaseResetn/a $142,884(greater of BonusBase and MarketValue)Dec 31-2016 Income Base Bonus n/a $142,884 $7,144 (5% of$142,884)Mar 03-2017 Excess Withdrawal $20,000 $129,333 (lesserof Bonus Baseand MarketValue)Sep 20-2017 Excess Withdrawal $1,000 $129,333 (lesserof Income Baseand MarketValue)n/a $142,884(greater ofIncome Baseand MarketValue)n/an/a$126,000 $125,273$132,000 $133,100$138,000 $141,387$142,884$150,028 $148,232$129,333 (lesserof Income Baseand MarketValue)$128,333 (lesserof Income Baseand MarketValue)$129,333$130,001Dec 31-2017 No Income Base Bonus n/a $129,333 n/a $128,333 $132,987Dec 31-2018 Income Base Bonus n/a $129,333 $6,467 (5% of$129,333)$134,800 $133,671*The market values quoted are hypothetical and for illustrative purposes only and should not be considered as representative ofpast or future investment performance.11
6.6 Income Base ResetCommencing on the third Class Plus Anniversary Date andon every third Class Plus Anniversary Date thereafter, anIncome Base Reset will automatically occur that may resultin an increase to the Income Base. If the market value of theFund Class Units at the credit of your contract is greater thanthe Income Base, then the Income Base is increased to equalthe market value of the Fund Class Units at the credit of yourcontract, otherwise it will remain unchanged.If the Class Plus Anniversary Date is not a Valuation Date,then the most recent Valuation Date prior to the Class PlusAnniversary Date will be used for calculation purposes.Example – Income Base ResetDateTransactionIncome BasebeforeTransactionIncome BaseResetMarket Valueof Fund Class Units*Income BaseafterTransactionMay 01-2013 Initial Deposit $0 $100,000 $100,000Dec 31-2013 Income Base Bonus $100,000 $103,200 $105,000May 01-2014 Class Plus Anniversary Date $105,000 No $105,500 $105,000Dec 31-2014 Income Base Bonus $105,000 $111,400 $110,000May 01-2015 Class Plus Anniversary Date $110,000 No $112,800 $110,000Dec 31-2015 Income Base Bonus $110,000 $115,200 $115,000May 01-2016 Class Plus Anniversary Date $115,000 Yes $116,300 $116,300*The market values quoted are hypothetical and for illustrative purposes only and should not be considered as representative ofpast or future investment performance.6.7 Retirement Income Payment OptionsMinimumIf your contract is a RRIF, the Income Tax Act requires thata minimum amount be withdrawn every year as retirementincome payments. You are not required to receive a paymentfor the calendar year in which your contract is established.For each subsequent year, the minimum retirement incomepayment is calculated in accordance with the minimumpayment schedule as specified in Section 146.3 of the IncomeTax Act. The minimum retirement income payment for eachcalendar year is based on the market value of your contract atthe beginning of that calendar year.If the minimum retirement income payment is higher than theLWA for a calendar year, withdrawals up to the RRIF minimumamount will not be considered an Excess Withdrawal (SeeSection 6.8 Excess Withdrawals).We reserve the right to restrict the use of the spouse orcommon-law partner’s age for the purposes of determining themaximum guaranteed payment available for a calendar year.If the total of your retirement income payments and anyunscheduled withdrawals that you make in a calendar year isless than the required minimum for that year, we will makea payment to you, subject to our rules, before the end of thatcalendar year to meet the required minimum amount.MaximumIf your contract is locked-in under pension legislation theremay be a maximum income amount that can be received eachcalendar year. The maximum income amount, if applicable, isdetermined based on the pension legislation.If the LWA is higher than your LIF/LRIF maximum incomeamount for a calendar year, you will only be able to withdrawup to your LIF/LRIF maximum income amount.If the LWA is lower than your LIF/LRIF maximum incomeamount for a calendar year, you can withdraw the LWA withoutit being considered an Excess Withdrawal (See Section 6.8Excess Withdrawals).LevelYou may elect to receive any amount greater than or equal tothe minimum but less than the maximum, if applicable, forretirement income payments in any calendar year.6.7.1 Allowances made for Contracts held in aSelf-Directed RRIFA contract held in a trust arrangement that is registered asa RRIF, is administered as a non-registered contract withEmpire Life. If the Trustee of such a RRIF has notified us thatthe contract is held in a self-directed RRIF we may allow forwithdrawals up to a notional RRIF minimum amount to not beconsidered Excess Withdrawals.12
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 and 16: Example - calculation of the LWA (w
Page 17: Example - calculation of the LWA (w
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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