Class Plus 2 Information Folder and Contract Provisions - Empire Life

If the Class Plus Anniversary Date does not fall on a ValuationDate the most recent Valuation Date prior to the Class PlusAnniversary Date will be used for calculating the market valueof the Fund Class Units at the credit of your contract.5.7 Retirement Income PaymentsIf you have requested that your contract be registered as aRIF, the Income Tax Act requires that a minimum amount bewithdrawn every year as retirement income payments. You arenot required to receive a minimum payment for the calendaryear in which your contract is established. For each subsequentyear, the minimum retirement income payment is calculated inaccordance with the minimum payment schedule as specifiedin Section 146.3 of the Income Tax Act.The minimum retirement income payment for each calendaryear is based on the market value of your contract at thebeginning of that calendar year. To the extent possibleretirement income payments will be made in accordancewith our rules and the directions you have provided on theApplication or by subsequent notice to us.If you are 55 or older and the minimum retirement incomepayment is higher than the LWA for a calendar year,withdrawals up to the RRIF minimum amount will not beconsidered an Excess Withdrawal. If your contract is lockedinunder pension legislation and the LWA is higher thanyour maximum income amount for a calendar year, you canwithdraw up to the maximum income amount in accordancewith the applicable pension legislation.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 in a calendaryear is less than the required minimum payment for that year,we will make a payment to you, in accordance with our rules,before the end of that calendar year to meet the requiredminimum payment.If the market value of your contract is not enough to make aretirement income payment, the amount available, less anyapplicable withdrawal fees will be paid to you and your contractwill terminate. At no time will any retirement income paymentbe made which exceeds the market value of your contractimmediately before a retirement income payment is due.5.8 Excess WithdrawalsAn Excess Withdrawal occurs when the cumulative withdrawalsexceed the LWA for a calendar year. Immediately following anExcess Withdrawal an Income Base Downward Adjustment willbe processed that results in the Income Base being recalculatedto be equal to the lesser of:1) the Income Base after the withdrawal has beenprocessed; and2) the market value of the Fund Class Units at the credit ofyour contract after the withdrawal has been processed.Immediately following an Excess Withdrawal the Bonus Basewill be decreased to equal the market value of the Fund ClassUnits at the credit of your contract if the market value of theFund Class Units at the credit of your contract is less than theBonus Base, otherwise it will remain unchanged.5.9 Guaranteed Payment PhaseIf the Market Value of the Fund Class Units at the credit of yourcontract equals $0 and the Income Base or LWA has a positivevalue, your contract will not terminate but will move into theGuaranteed Payment Phase. Once in the Guaranteed PaymentPhase, the contract will continue to provide for payments up tothe LWA to you for the life of the Annuitant or, if applicable, thelife of the Joint Life.No deposits can be made during the Guaranteed Payment Phase.Withdrawals will not be made to pay the Class Plus Fee duringthe Guaranteed Payment Phase.6. MATURITY AND DEATH BENEFITS6.1 General InformationYour contract provides guarantees at Maturity and Death.On the Maturity Date, if the Maturity Benefit Guarantee ishigher than the current market value of the Fund Class Units atthe credit of your contract, we will increase the market value ofthe Fund Class Units to equal the Maturity Benefit Guarantee.On the Death Benefit Date, if the Death Benefit Guarantee ishigher than the current market value of the Fund Class Units atthe credit of your contract, we will increase the market value ofthe Fund Class Units to equal the Death Benefit Guarantee.Any increase in the market value of the Fund Class Units at thecredit of your contract as a result of a Maturity or Death BenefitGuarantee is deposited to the Money Market Fund. This depositis known as a “top up.” Any applicable top up payments arepaid from the general funds of the Company.6.2 Maturity DateIf you have selected the Single Tiered LWA Option, the MaturityDate of your contract is December 31st of the year the Annuitantnamed in the Application turns 120 years old.If you have selected the Joint Tiered LWA Option the MaturityDate of your contract is December 31st of the year the youngestof the Annuitant and the Joint Life named in the Applicationturns 120 years old.The Maturity Date of your contract cannot be changed.51