N.J. Admin. Code § 17:8-1.4

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:8-1.4 - Variable annuity; general description

(a) In a variable annuity the life income is a specific fixed number of variable equity units per month. The dollar value of the variable unit varies from time to time mainly by reason of gains and losses and dividend earnings on the Variable Division's investments. These gains and losses include those resulting from sales, from changes in market value and from mortality experience.

(b) Three accounts are maintained in order to account properly for the accumulation of the contributions received, the annuity payments to be made, and the gains and losses and earnings of the investment portfolio.

1. During the years prior to retirement, contributions are converted into equity units and accumulated in the Variable Accumulation Accounts.

2. At retirement when annuity payments for a participant are to begin, the number of equity units credited to a participant's accumulation account is transferred to the Variable Benefit Account.

3. An income distribution summary is maintained to record the changes in the value of the assets in the Variable Division.

N.J. Admin. Code § 17:8-1.4