Qualified Plan Rider to Annuity Contract – Kemper Investors Life Insurance Company
Summary
This agreement is a Qualified Plan Rider attached to an annuity contract issued by Kemper Investors Life Insurance Company. It outlines special rules for contracts issued as tax-sheltered annuities under Section 403(b) or under ERISA-qualified plans. The rider sets limits on contributions, distributions, and loans, and specifies non-transferability and nonforfeitability of the annuitant’s rights. It also details loan provisions, including limits, repayment terms, and consequences of default. The company is not responsible for the tax consequences of distributions. The rider takes precedence over conflicting contract terms.
EX-4.E 6 dex4e.txt FORM OF QUALIFIED PLAN RIDER Exhibit 4(e) Kemper Investors Life Insurance Company 1 Kemper Drive, Long Grove, Illinois 60049-0001 QUALIFIED PLAN RIDER As used in this Rider, "Contract" means the Contract or Certificate to which this Rider is attached. This Rider forms a part of the Contract to which it is attached. The applicable provisions of this Rider apply and take precedence over contrary provisions of the Contract: a. is issued as a Code Section 403(b) Tax Sheltered Annuity ("Tax Sheltered Annuity") to an individual; or b. is issued under a plan described in Section 401(a) or 403(b) of the Code if subject to the requirements of the Employee Retirement Income Security Act of 1974 (ERISA Plans"). SECTION 1 PROVISIONS APPLICABLE TO A TAX SHELTERED ANNUITY: A. The Owner of the Contract is the Annuitant. B. The rights of the Annuitant under the Contract are nonforfeitable. C. The Contract is not transferable and cannot be: sold; assigned; discounted; or pledged as collateral for a loan or as security for the performance of an obligation or for any other purpose to any person other than us. D. The amount that may be contributed to this Contract will be governed by the provisions of Sections 403(b), 415, and 402(g) of the Code. E. In the case of benefits that accrued under this Contract after December 31, 1986, distribution must be: a. made in accordance with the minimum distribution requirements of Section 403(b)(10) of the Code; and b. the regulations thereunder. F. Distributions attributable to salary reduction contributions received or earnings credited after December 31, 1988 may be paid only when: a. the employee attains age 59 1/2; b. separates from service; or c. dies or is disabled. Notwithstanding the foregoing, contributions, but not earnings thereon, may be distributed in the case of hardship within the meaning of Code Section 403(b)(11)(B). G. If the annuitant receives an eligible rollover distribution and elects to have the distribution paid directly to an eligible retirement plan (as defined in Section 402(c) of the Code) and specifies the eligible retirement plan to which the distribution is to be paid, then the distribution will be paid to that eligible retirement plan in a direct rollover. H. We will not be responsible for the timing, purpose or propriety of any distribution. We will not incur any liability or responsibility of any tax imposed on account of any such distribution. We are not obligated to make any distribution absent a specific written direction in accordance with the provisions of the Contract. SECTION 2. PROVISIONS APPLICABLE TO ERISA PLAN: At any time prior to annuity date, an ERISA loan may be requested. One-half of the Contract will be assigned as security for such a loan. The maximum ERISA loan amount available is the lesser of: a. $50,000 (reduced by the excess of the highest outstanding loan balance of all loans during the prior 12 month period ending on the day before the loan is made over any loan amount outstanding on the date the loan is made); or b. fifty percent of the Contract Value less Debt. The minimum ERISA loan amount available is $1,000. We may defer the granting of an ERISA loan six months from the date of our receipt of a written loan request. L-8868 Page 1 Page 2 SECTION 3. PROVISIONS APPLICABLE TO ALL LOANS A. Definitions: Contract Value is the sum of the Fixed Account Contract Value, the Loan Value, the Separate Account Contract Value, and the Guarantee Period Value. Debt is the principal of any outstanding loan plus loan interest due or accrued. Loan Value is the outstanding loan amount plus interest credited. B. When a loan is taken, an amount equal to the loan will be transferred from the Fixed Account Contract Value, the Separate Account Contract Value, and the Guarantee Period Value for the loan account. Unless you tell us otherwise, the loan will proportionately reduce the amount allocated to the Fixed Account, the Separate Account, and the Guarantee Periods. C. The amount of Debt will reduce the amount payable upon death or surrender or the amount that may be applied under an annuity option. D. While a loan is outstanding, the Loan Value will be credited with interest at a rate equal to the rate charged on Debt less a deduction not to exceed 2.5%. E. A loan may be repaid in full or in part at any time prior to the Annuity Date. F. Should the Debt equal or exceed the Contract Value, this Contract will terminate thirty-one days after we mail a notice of termination to your last known address. The Debt will be treated as a withdrawal. Notice of termination may be sent upon occurrence of an event outlined in Section 1(F). G. The Owner must sign a loan agreement in the form prescribed by us to be eligible for a loan. The interest rate and any service fees charged on a loan will be as stated in the loan agreement. The loan will also be subject to the terms of the agreement to the extent not inconsistent with this rider. H. All Debt must be repaid prior to the transfer of any amounts to another contract. I. Failure to make timely repayment of Debt will result in a taxable distribution and possible tax penalties. Signed for the Kemper Investors Life Insurance Company at its home office in Long Grove, Illinois. /s/ Debra P. Rezabek /s/ Gale K. Caruso Secretary President
